CITY COUNCIL STUDY SESSION

PROPOSED 2002-2003 OPERATING BUDGET

May 23, 2002

PRESENT: Council Members Campos, Chavez, Cortese, Dando, Diquisto, LeZotte, Reed, Williams, Yeager; Gonzales

ABSENT: Shirakawa Jr. (excused)

STAFF: City Manager Del D. Borgsdorf, City Attorney Richard Doyle, Assistant City Manager Mark Linder, Senior Deputy City Manager Darrell Dearborn, Budget Director Larry D. Lisenbee, Assistant Budget Director Jennifer Maguire, Mayor’s Budget and Policy Director Joe Guerra, Mayor’s Budget and Policy Assistants Jennifer Galliart, Julie Shioshita and Meghan Horrigan, Assistant City Clerk Nancy Alford, and Legislative Secretary Rachel Thrower

Documents Filed: Hard copies of the Staff presentation on the Aviation Services CSA; hard copies of the Staff presentation on the Transportation Services CSA; hard copies of the Staff presentation of the Environmental and Utility Services CSA; hard copies of Staff presentation on Public Safety CSA; hard copies of Staff presentation on Strategic Support CSA

The meeting was called to order at 7:45 a.m. in Council Chambers, City Hall, for the purpose of reviewing the Proposed Operating Budget for Fiscal Year 2002-2003.

PROPOSED 2002-2003 OPERATING BUDGET (Continued from 5/22/02)

Recreation and Cultural Services CSA (Continued)

Convention, Arts and Entertainment

Mayor Gonzales referred to page 119 and commented that the 80% target for occupancy of City-owned facilities seemed low. He asked if this represented total users or useable hours. Staff responded that this is the number of useable hours at the CPA and Montgomery Theater only. Mayor Gonzales requested that this be clarified next year. Referring to page 124, he asked why the percentage of events billed within thirty days of cost determination is only 67%. Staff responded that there has been a growth in the number of special events being managed, as well as a concentration of events, with no increase in staff. Mayor Gonzales suggested that there be more creative staffing and improvement in the billing process.

Council Member LeZotte expressed concern with the cut in Operations and Maintenance funding for the San Jose Repertory Theater. Staff responded that the multi-year contract with the Repertory Theater calls for a reduction in funding from $400,000 to $300,000 in the 2002-03 budget. Mayor Gonzales requested that Staff provide a report back to Council on the background of the contract.

Council Member Chavez referred to page 124 and asked how the measurement was done on residents’ rating of efforts to provide adequate and a variety of outdoor special events. Staff responded that this was part of the overall City-wide resident survey, and that Office of Cultural Affairs Staff is active in implementing results of customer surveys related to special events. Council Member Chavez suggested that it would be beneficial to know where people come from for the events. Regarding events held on private and public property, she asked that information be provided on how many are held in neighborhoods versus the downtown core. Regarding the rating for event coordination, she questioned if groups are not holding events because of City charges for services. She requested a breakout of services and City charges and asked if Staff communicated with groups planning events. Staff responded that events are on a cost-recovery basis, that estimates from departments are given to groups in advance, and that they are planning workshops for groups to assist in finding ways to reduce costs associated with their events.

Council Member Reed stated that the contract with San Jose Repertory Theater has changed because of litigation and subsequent delays in operation, and that he believes discussion should go back to the Redevelopment Agency on how the settlement worked and how the proceeds should be handled to deal with damages to the Rep.

General Services

No questions.

Library

Mayor Gonzales, referring to page 367 regarding his March message, stated that Staff needs to explore opportunities for expanded or alternative services. He expressed concern that the pilot program is being conducted at only one branch. Referring to page 368, e-branch services, he indicated that he has received very positive feedback on the internet service, but has received some negative comments on follow-up at the branch libraries. He asked that Staff review this program.

Council Member Chavez, referring to page 374, asked if there is a target for the number of people the City would like to have library cards. She stated that it is important to know whether or not there is an increase in communities normally hard to serve or not accessing services. She suggested that it might be time to examine this.

Council Member Reed asked for an explanation of media materials and how much workload is spent on this type of circulation. Director Light responded that media materials include everything except books, and that the ratio of circulation is 80% books, 20% media. She added that media materials are particularly popular to people who do not read English very well, and that picture books are the biggest circulation item.

Council Member Williams, referring to page 374, asked how Staff correlates residents’ concerns with actions to improve conditions. Director Light responded that with the increase in library use, Staff’s goal at this time is to maintain current service levels.

Council Member Yeager noted that the Benefit Assessment District is expiring in 2004 and asked how Staff will proceed in going back to the public for renewal. Director Light responded that approximately 20% of the Library’s budget comes from the assessment and that the Library Commission is currently reviewing this.

Parks, Recreation and Neighborhood Services

Mayor Gonzales, referring to page 401, asked why the 1.5 FTE for the Weed and Seed Program is being continued when the program will be ending. Acting Director Balagso responded that Staff has submitted an application for continuation of the program. Mayor Gonzales, referring to page 399, asked for an explanation of the 30% increase in overtime. Acting Director Balagso responded that this was an error in the document and that there was not an increase of that size. Referring to page 424 regarding the blueprint for bridging the digital divide, Mayor Gonzales requested further information on the request for additional Staff.

Referring to pages 658 and 659, Council Member LeZotte commented that she assumed the $1 million decrease Homework Center budget was a funding shift, not a policy shift. Regarding the Wildlife Center funding, she stated that she believes this should be part of the Animal Care budget. Staff responded that the center received relocation funds; however, it does not receive operating funds.

Council Member Yeager questioned Staff’s request to eliminate the Guadalupe River Park and Gardens Parks Supervisor position when there is an increase in maintenance needs. He requested that Staff consider not filling the position rather than eliminating it.

Council Member Cortese, referring to page 416, expressed concern that the Aquatics Program budget is without a strategy plan. He asked if dialogue has occurred with the Eastside Union School District to continue funding of the swim program, and indicated that there is a need to develop a strategic plan to utilize the pools before adopting the budget.

Council Member Chavez referred to page 406, and suggested that a measurement be added about the health of the neighborhood associations with whom the City is working and stated that she believes there is a need to separate neighborhood action committees from neighborhood associations to determine which organizations rely on City staffing. Referring to page 421 regarding volunteer groups for park sites, she commented that with the decrease in maintenance, there is a need to increase community support, and she expressed concern with the overall strategy. City Manager Borgsdorf responded that there has been consideration to shift capital dollars into maintenance for one year to guarantee the quality of operation and maintenance.

Council Member Williams, referring to page 408, item 3, asked if the decreased maintenance on vehicles is consistent with the level of service needed for the increase in parks, and if this would just defer the maintenance to a later time. Staff responded that an audit has indicated the fleet was too large; therefore, it has been reduced but will not affect the level of maintenance to the remaining fleet. Council Member Williams, referring to page 418, expressed concern with the poor quality of transportation for seniors. He expressed concern that the position of Senior Director was deleted and stated that he believes this needs to be addressed.

Referring to page 417, Council Member Reed noted the decrease of funding for the new Youth Center, and discussed the need to be cautious to not repeat the situation with the Animal Control Services facility. Mayor Gonzales requested that Staff provide the square footage of the Animal Control Center’s former building vs. the new facility.

Council Member Campos, referring to page 406, requested the number of groups established and the number acquired in the past year. Referring to page 417, she asked how long the Youth Intervention Program position had been vacant. Staff responded that staffing has been provided through grant funding.

Aviation Services CSA

William Potter, Assistant Director of Aviation, presented an overview of the Airport’s Mission and Vision Statements, and Investment Strategy. He mentioned the Blue Ribbon Committee that is developing solutions and/or approaches that can be used to address security challenges, for which $4.6 million is reserved for anticipated security costs.

Mayor Gonzales suggested that the Mission Statement wording presented during the Capital Budget should be used, and that he would like to see the Blue Ribbon Task Force reflected in the budget document. Referring to page VII-22 - 23, he asked what impact the one-time reductions in customer service areas will have on the convenience of customers. Assistant Director Potter responded that with decreased use of parking facilities and shuttle services, there is need for adjustment in the contracts with these business partners.

Council Member Reed expressed concern that the Business Plan does not reflect a one-year or five-year plan.

Council Member LeZotte, referring to page 32, Environmental Services support, asked about the impact on service levels by not filling the vacant position. Assistant Director Potter responded that as revenues increase, positions will be brought back on and that the Airport is safe and in compliance.

Council Member Williams, referring to page VII-8, performance by outcome, expressed concern that strategic targets are lower than last year, and that there is a need to satisfy customer expectations.

Council Member Yeager, referring to page VII-11, regarding reduced emissions and traffic conditions, asked how much pollution comes from busses and how much comes from other vehicles. Staff explained that a new fleet of busses is coming on line in March 2003, which will reduce emissions, and that Staff will provide further information on the overall program.

Airport

Mayor Gonzales expressed concern with the reduction of positions and asked if the Airport can meet federally mandated expectations and continue to staff outreach programs. Mr. Potter responded that positions are being redeployed to meet requirements.

Council Member Yeager requested a report of what type of complaints are received on the hotline and what is done to resolve them. Referring to page 26, he asked if employees were being disbursed appropriately at Airport facilities. Assistant Director Potter responded that staffing is based on federal mandates. Regarding the Airlines Conformance Plan, Council Member Yeager asked what is being done to prevent new flights from curfew intrusions and using noisier aircraft. Assistant Director Potter responded that Staff communicates with the airlines early on to discuss noise issues.

Transportation Services CSA

Wayne Tanda, Director of Transportation Services, presented an overview of the CSA’s Vision and Trends, and indicated that the major concern of San Jose residents is traffic congestion. He reviewed the four Outcomes for the CSA – Viable Choices in Travel Modes, Convenience of Commute to Workplace, Efficient Access to Major Activity Centers, and Transportation Assets/Services that Enhance Community Livability.

Mayor Gonzales expressed concern that the CSA’s goals are going in the wrong direction and that he is disappointed with planned growth. Regarding the Business Plan on page 12, he noted that there are no established performance measurements for 2002-03, and asked that this be added. Referring to page VII-68, he asked for an explanation of “cycle time targets,” and indicated that they needed to be defined for each service area.

Council Member Williams, referring to page VII-68, stated that he believes the relationship in terms of the transportation system with other cities, the County, the State, etc., should be included.

Council Member Reed, referring to page VII-70, item 4, recommended that the terms “acceptable” and “tolerable” be consistent.

Council Member Campos asked for the timeline for replacement of the yellow school signs with the new florescent green ones. Staff responded that they are currently working proactively with neighborhoods and school districts on signing.

Council Member Diquisto asked if there was a plan to replace stop signs. Staff responded that they believed they had replaced all old signs during a three-year concentrated effort; however, if they receive a report of one that needs replacing, they will replace it.

Police

Council Member Dando, referring to page 494, asked if there was a proactive program for reduction of pedestrian injuries, particularly in higher density areas, and requested a list of the ten highest injury intersections. Police Chief William Landsdowne responded that Officers have increased the number of citations issued, particularly in school areas, and that Staff will provide the requested list of sites.

Mayor Gonzales referred to page 591 and stated that he believes there should be a measurement for the number of customers using the free parking program. Referring to page 596, he asked why the target for street inspection and repair is lower than last year. Director Tanda responded that last year, SNI neighborhoods were identified, and this year the repairs will be implemented.

Council Member Chavez, referring to page 496, asked how other programs are linked to locations of crashes and suggested that the list of ten highest crash sites include a brief history of the action taken to reduce crashes. Staff responded that they are working with the Police Department on a crash reduction plan.

Council Member Yeager questioned the success of the traffic enforcement unit in following up with speeding complaints. Staff responded that complaints have decreased and that the Police Department and Transportation Services have initiated an educational campaign to modify driving habits.

Regarding pedestrian injuries, Council Member Campos asked where the highest number occurred, and what was being done to address pedestrian patterns. Staff responded that the highest number of injuries occur in darkness involving adults, usually due to an illegal activity, and at intersections.

Council Member Cortese suggested that a brief explanation of how the speed complaint enforcement system works be made available for distribution at community meetings, and that some type of advertisement of where enforcement will take place would be beneficial to the community.

Council Member Reed requested that performance measures include successes in the decrease of traffic deaths.

Transportation

Mayor Gonzales, referring to pages 618-619, asked if there would be less enforcement from Neighborhood Automated Speed Compliance Program (NASCOP). Director Tanda responded that there will be a reallocation of resources to maintain the level of enforcement.

Council Member Dando, referring to page 593, asked if the enforcement officer for street sweeping operations could be allocated to schools during non-peak times. Staff responded that there was a pilot program started for this. Referring to page 597, Council Member Dando commented that she would like to see the goal for healthy street trees increased. Director Tanda responded that Council took action to reach the ten-year goal in about eight years and that San Jose has very healthy trees. Referring to page 619, Council Member Dando asked when Council could expect to see results of the Stop Sign Policy. Director Tanda responded that the Fourth Quarter Report will include an update on this and crosswalks.

Council Member LeZotte referred to page 619 and asked if light-duty Police Officers could operate the NASCOP equipment. Chief Landsdowne responded that this would be a union issue. Referring to page 622, Council Member LeZotte expressed concern about staffing levels for SNIs. Referring to page 626, she noted that the target for traffic signals has been lowered. Director Tanda explained that it has been difficult to fill certain specialized positions; therefore, the target percentage has been reduced.

Council Member Williams, referring to page 600, requested clarification of the funding for Neighborhood Business District clean-up. Director Tanda explained that funding will provide a higher level of cleanliness for the Business Districts, using the same standard as for the Downtown area. Council Member Williams asked if a barrier could be installed on the median strip at Roeder and Monterey to prevent pedestrians from crossing mid-street. Director Tanda responded that Staff will follow up on this request.

Council Member Chavez, referring to page 597, suggested that there should be a category for street trees incorporated into neighborhood plans.

Council Member Reed, referring to pages 594-595, noted that there appeared to be no plan to deal with diseased and dying street trees. Director Tanda explained that the trees program includes replacement as well as maintenance, and that the overall condition of trees in San Jose is good. Council Member Reed recommended changing the language to more accurately describe the program.

Environmental and Utility Services CSA

Carl Mosher, Director of Environmental Services, provided an overview of the CSA’s Vision and Mission Statements, Four Outcomes, Major Trends and Issues, and Investment Strategy. He provided a summary of CSA goals, and reviewed the Four Outcomes – Reliable Utility Infrastructure; Healthy Streams, Rivers, Marsh and Bay; “Green and Clean” Air, Land and Energy; and Safe, Reliable and Efficient Water Supply.

The Council recessed the Operating Budget Session at 12:00 noon and reconvened at 1:38 p.m.

Environmental and Utility Services CSA (Continued)

Mayor Gonzales, referring to page VII-32, stated that he believes the expansion of the recycled water program should have its own performance targets.

Council Member Reed stated that he believes the Business Plan should identify infrastructure needs and discuss the Hetch Hetchy failure possibilities within the five-year plan. Regarding the five-year strategy goal to plan and build the City’s utility infrastructure networks, on page VII-31, he noted that it only includes building and that there are no performance measures about planning. Regarding the investment strategy, he noted that there is no mention of the Alviso Master Plan, particularly drainage needs. Director Mosher responded that the Public Works Department will be providing information about the storm drain plan and Alviso, particularly, in an MBA.

Council Member LeZotte, referring to page VII-33, expressed concern that no other department in the Economic Development CSA had a performance measure with regard to greenbuilding, and stated that she believes there should be a staff position in Environmental Services dedicated to the greenbuilding policy in order to take the policy to the next step and include the private sector. She added that she believes any RDA building should include greenbuilding. City Manager Borgsdorf confirmed that there is a place in Environmental Services for this type of position.

Council Member Cortese, referring to page VII-31, discussed the transfer of fire hydrant maintenance to the Municipal Water fund, and stated that he believes this responsibility should be transferred to all three water providers at the same time.

Council Member Williams, referring to page VII-32, asked what steps are being taken to provide fishable and swimable waters. Staff responded that this is part of the County’s Urban Runoff Plan. Referring to page VII-34-A-1, he asked if conservation was the major thrust and what standard is used for recycled water. Director Mosher responded there will be a report on water quality in the future.

Council Member Diquisto questioned fire hydrant charges and who pays them. Staff responded that the information will be reported back to Council.

Council Member Campos, referring to page VII-32-A-2 regarding where water goes, questioned the low target. Director Mosher explained the City’s educational program for children and stated that there is also an educational and outreach program for industrial companies.

Environmental Services

Mayor Gonzales, referring to page 193 regarding the percentage deferred from landfill, expressed concern that the target is too conservative.

Council Member Chavez, referring to page 199, asked for an explanation of the customer base for recycled water, and stated that she would be interested in seeing the program expanded. Referring to page 205, she expressed concern with all the positions being cut and requested further information. She expressed concern that the Cool Communities Program did not appear to be linked to other programs.

Council Member Reed, referring to page 214, regarding strategic support changes, asked how the video conferencing program would be measured. Director Mosher responded that performance measures will be developed. Council Members Reed, Williams and Cortese asked several questions regarding water conservation and potable water costs, and the recycled water program. Staff indicated that they will provide clarification and further information through an MBA.

Transportation

No questions.

Public Safety CSA

Police Chief William Landsdowne provided an overview of the CSA’s Mission Statement, Investment Strategy, and Outcomes – Public feels safe anywhere, anytime (Maintain current levels of service); Residents share the Responsibility and are prepared for any emergency (Enhance outreach and preparedness); Public Safety personnel are seen as a positive part of the community (Plan for the Future and Invest in Facilities).

Council Member Reed expressed concern that there was no five-year plan in the Business Plan, and that there was not a performance outcome for Emergency Services. Referring to page VII-39, he stated that the response times have deteriorated and that a five-year plan should deal with this, and that there is no reference to a Fire master plan.

Mayor Gonzales, referring to page VII-38, suggested that there might be alternatives to overtime for training purposes. He referred to page VII-40 and requested a list of training issues and how cutbacks would impact public safety. Referring to page VII-41, measures A-1 and A-2, he asked for clarification of the objectives, and on page 42 asked about the training for defibrillators. He expressed concern that the measurement on page 43 regarding the change in residents’ behavior after attending presentations was weak, and that the number of community forum meetings seemed low. He suggested that because of interest in security and safety issues, meetings specific to public safety were a good opportunity to educate and involve the community.

Council Member Chavez suggested that there is an opportunity to increase the role of volunteers in outreach activities.

Council Member Williams, referring to page VII-41, asked about the citizen complaint process, and regarding page 43 B-2, commented that Staff needs to focus on community education.

Council Member Diquisto, referring to page 760, expressed concern with the proposed reduction of Fire Department personnel and requested further information.

Emergency Services

Mayor Gonzales expressed concern that the City has not focused enough on natural disaster preparedness, and suggested that the measurement on page 150 be rewritten to clarify the numbers for neighborhood preparedness.

Council Member Williams, referring to page 145, recommended that a survey be conducted to determine how residents feel about safety.

Council Member LeZotte requested information on defibrillator training and a list of those trained. Mayor Gonzales recommended that a list of those trained be next to each machine.

Fire

Mayor Gonzales, referring to page 256, recommended that with the reduction of the Public Information Officer, very comprehensive training be given to those who will be spokespersons for the department. Referring to page 258, he expressed concern with the goals related to arson cases.

Regarding Fire Prevention programs, Council Member Yeager suggested that Staff should determine what needs to be done to raise the target from 75%.

Independent Police Auditor

Mayor Gonzales questioned overtime for outreach activities and suggested alternative work schedules. Referring to page 329, he stated that he believes outreach should expand to other districts and asked that this be tracked, with a report back to Council.

Council Member Campos, referring to page 330, asked about the complaints that are withdrawn. Independent Police Auditor Guerrero-Daley explained the process and indicated that there is follow-up to assure that they were voluntary withdrawals.

Police

Mayor Gonzales, referring to page 471, requested that the statement regarding congestion affecting response time be reworded. Referring to page 486, Mayor Gonzales asked about the progress of the School Crossing Guard Program being transferred to Department of Transportation and commented that it should be a priority. Referring to page 487, he recommended that there be a measurement for San Jose being the safest big city in America.

Council Member Chavez, referring to page 481, asked if there was a goal for the number of Officer-initiated calls, and recommended focusing on quality-of-life crimes being integrated into this program, particularly in SNI neighborhoods. Chief Landsdowne responded that the goal is to provide each Officer with 40% free time to initiate calls and be involved in community-oriented problem solving.

Strategic Support CSA

Kay Winer, Acting Director of Employee Services, explained that there are three components of the Strategic Support CSA – Finance and Technology, Employee Services and City Facilities and Equipment. She provided an overview of the CSA City partners, the Mission Statement, the 2002-03 Proposed Investment by Outcome, and the Investment Strategy. Wandzia Grycz, Chief Information Officer, reviewed Outcome #1, Systems and Processes Facilitate Delivery of City Services – Consolidate IT Staff, management of non-personal costs, and streamlining materials management. Scott Johnson, Finance Director, reviewed the Streamlining of Financial Services. He provided an overview of Outcome #2, Customers have financial information to make informed decisions, and Outcome #3, Finance and Technology resources are protected and available.

Mayor Gonzales, referring to page VII-85, questioned the number of City employees and asked that the number be consistent. Referring to page VII-91, he asked if addition of the night shift is still warranted. CIO Grycz responded that the department is moving toward 24-7 staffing. Referring to page VII-92, Mayor Gonzales asked about the needs analysis of the Financial Management System (FMS). CIO Grycz responded that the system needs upgrading, that Staff is in the planning process, and has an opportunity to move forward with new technology.

Council Member Reed, referring to page VII-91, noted that there were no performance standards for e-government dealing with cost savings or efficiency and that they should be added.

Finance

Council Member Chavez asked for an explanation of the method used to track payments made by the City.

Mayor Gonzales, referring to page 281, asked that Police vehicles be counted separately when figuring the ratio of cars to employees.

Information Technology

Mayor Gonzales, referring to page 336, stated that having all employees on the new time reporting system should be a priority.

Council Member Williams suggested that perhaps the City should look at abandoning time reporting as some private businesses have already done.

The Council recessed the Operating Budget Study Session at 5:00 p.m. to meet again on Friday, May 24, 2002, at 7:30 a.m., Council Chambers, City Hall.

NANCY ALFORD, ASSISTANT CITY CLERK