To: HONORABLE MAYOR From: Citizen Oversight Committee

AND CITY COUNCIL for Safe Neighborhood Parks and

Recreation Bond Projects

Subject: SEE BELOW Date: 11-24-03

SUBJECT: ANNUAL REPORT ON THE SAFE NEIGHBORHOOD PARKS AND RECREATION BOND PROJECTS

RECOMMENDATION

The Parks and Recreation Commission, acting as the Citizen Oversight Committee, recommends that the Council accept and file this annual report regarding the implementation of the Safe Neighborhood Parks and Recreation Bond projects through the 2002-2003 fiscal year.

Background

In November 2000, the City of San Jose voters approved a $228 million General Obligation Bond, specifically known as the San Jose Safe Neighborhood Parks and Recreation Bond (Measure P), for the purpose of acquiring property for and constructing improvements to parks and recreation facilities throughout the City. This bond passed with over a 78 percent approval rating. Projects to be funded with the bond funds include: the renovation of 90 play areas, 28 restrooms, nine community centers, construction of a lighted softball complex and soccer complex, enhancements to Happy Hollow Park and Zoo, Kelley Park, Emma Prusch Memorial Park, the Municipal Rose Garden, Almaden Lake Park and the extension of five trails.

On April 10, 2001, the City Council designated the Parks and Recreation Commission as a Committee of the Whole, Citizen Oversight Committee (COC) to conduct the citizen’s oversight review responsibilities associated with Measure P. This effort of reviewing the implementation of the bond projects in an open forum process is the key to maintaining the public trust. The COC provides the public with opportunities to understand, review and address any significant and relevant issues related to the implementation of the Parks and Recreation Bond projects. The responsibility of the COC is to oversee that the following language on the ballot measure is carried out:

“SAN JOSE SAFE NEIGHBORHOOD PARKS AND RECREATION BOND:

To improve San Jose’s neighborhood parks’ safety and expand recreation

opportunities for children, families and seniors, by: installing lighting;

reconstructing deteriorating playgrounds and restrooms; preserving open space; constructing trails; constructing new recreational sports facilities; improving

community and senior centers; and constructing improvements to regional parks

like Happy Hollow, shall the City issue $228,030,000 in bonds, at the best rates

possible, with guaranteed annual audits, a citizen’s oversight committee, and no

money for parks administrators’ salaries.”

The COC prepares an annual report to the City Council to inform the Council and the public of the appropriateness of bond expenditures, the progress of the various projects, and the results of the annual audit. In addition, the COC serves as a source of community information about the program providing the opportunity for public input and inquiries through three scheduled public hearings conducted each year in conjunction with meetings of the Parks and Recreation Commission in February, June and October.

The October public hearing provides the COC the opportunity to consider the City’s annual audit of the Bond Program, if completed. The COC then prepares the annual report on the appropriateness of expenditures and to identify any significant and relevant issues raised by the COC or the public as well as any recommendations to the Mayor and City Council to address those concerns. A draft of the annual report is presented to the COC in November for approval. The report is then forwarded to the City Council for consideration by no later than December 31 of each year.

Project Financing and Expenditures

The City last conducted a General Obligation (GO) bond sale in 2001 totaling $40,000,000 for the second series in July 2002 totaling $46,715,000. The total bonds issued for parks projects are $86,175,000. The City expects to issue additional GO bonds under Measure P authorizations in July 2004.

Bond expenditures in FY 2002-03 totaled $17,843,424. Encumbrances totaled $17,771,271. The total expenditures and encumbrances was $35,554,695. The total actual expended in FY 2001/-02 was $9,339,112 and $224,951 in FY 2000/-01.

In September 2003, the City’s independent accounting firm completed the annual audit of all City funds for the fiscal year ended June 30, 2003. The audited financial statements, known as the Comprehensive Annual Financial Report (CAFR), include a review of the Safe Neighborhood Parks and Recreation Bond Projects Fund.

As part of the outside auditor’s review, significant issues are identified and commented upon. The Finance Department and the City’s independent outside auditors made a comprehensive presentation of the audited financial statements to the City’s Finance and Infrastructure Committee in September 2003. No significant issues were identified in the Safe Neighborhood Parks and Recreation Bond Project Fund. A copy of the report is attached.

Bond Staffing

Parks, Recreation and Neighborhood Services

The Community Facilities Development Division is evolving to assume a greater role in the planning, design and delivery of projects. The Division is comprised of five units including Administration, Financial Planning and Accounting, Comprehensive Planning, Master Planning and Strategic Planning. A new Deputy Director of Community Facilities Development has been hired to direct the Division. Landscape architectural staff from the Public Works Division has been transferred to the Division to provide services within the Parks Master Plan Unit. A Trail Program Manager was added earlier in the year to accelerate trail-related planning and development work. The Division is seeking to fill vacant planner and park manager positions to manage the community outreach and project coordination roles.

Project Status

All projects in the capital program were evaluated within the last year to assess timing and potential cost impacts associated with their commissioning as a means to respond to the financial challenges currently faced by the City and expected to continue into the near future. As a result of that analysis, there were selective recommendations to accelerate projects with minimal operational and maintenance costs and to defer those with additional significant operational and maintenance impacts. These project schedule change recommendations were then reflected in the Capital Improvement Program (CIP) budget.

The Parks Bond program in the current CIP consists of approximately 86 park projects. Of these projects, 82 are active FY 2002-03 projects, one is scheduled to start activity in FY 2003-04, three are scheduled to start in future years (FY 2005-08), and two have been rescheduled to FY 2006-07 per pending a determination of the availability of operating funds.

The bond projects completed in FY 2002-03 included:

Almaden Meadows Park Youth Lot Renovation

Alviso Park Youth and Tot Lot Renovation

Backesto Park Youth and Tot Lot Renovation and Restroom

Brigadoon Park Tot Lot Renovation

Butcher Park Youth and Tot Lot Renovation

Calabazas Park Restroom

Capitol Park Youth and Tot Lot Renovation

Cataldi Park Youth and Tot Lot Renovation

Children of the Rainbow Youth Lot Renovation

Cimarron Park Play Area Renovation

Erickson Park Play Area Renovation

Evergreen Park Play Area Renovation and Restroom

Fernish Park Play Area Renovation

Great Oaks Park Renovation

Hamann Park Youth Lot Renovation and Restroom

Hathaway Park Tot Lot Renovation and Restroom

Hillview Park Play Area and Restroom

Huerta Park Youth and Tot Lot Renovation

Los Paseos Park Youth Lot Renovation and Restroom

Meadowfair Center Play Area Renovation

Melody Park Youth Lot Renovation

Murdock Park Youth Lot Renovation

Northwood Park Youth and Tot Lot Renovation

Roy Avenue Park Play Area Renovation

Ryland Park Youth and Tot Lot Renovation and Restroom

San Tomas Park Youth and Tot Lot Renovation

San Tomas Restroom Renovation

Shady Oaks Park Play Area Renovation

Silver Leaf Park Play Area Renovation

Solari Park Play Area and Restroom

Stonegate Park Youth and Tot Lot Renovation

Thousand Oaks Park Play Area Renovation

Turtle Rock Park Play Area Renovation

Vinci Park Play Area Renovation

Vista Park Phase II Development

Watson Park Restroom and Ramp

Welch Park Restroom

Willow Street/Bramhall Park Restroom

In FY 2003-04, one project, the Roosevelt Multi-Purpose Community Center will start activity in spring 2004. The remainder of the Park Bond program consists of three future projects including the Los Gatos Trail in FY 2004-05, and the Los Alamitos/Calero Trail and Solari Multi-Purpose Community Center FY 2005-06.

A summary of the Park Bond program starts and finishes for projects indicates that 66 are scheduled for completion by June 2004, with a total of 73 projects to be completed by June 2005. Project construction start dates for sports parks at Singleton and Shady Oaks have been rescheduled to FY 2006-07 to defer the operations and maintenance impacts to the General Fund.

As of June 30, 2003, portions of three projects were on hold pending resolution of General Fund or Redevelopment Agency monies, as directed by Council on March 25, 2003. However, since the General Fund or Redevelopment Agency money only funded enhancements to the project scopes, the bond-funded portions of these projects are still proceeding. The on-hold portions of these projects were Almaden Lake Park – Senior Friendly Elements, Southside Community Center Portable and Selma Olinder Park. (Note as of November 1, 2003, the General Fund portions of these projects have been resolved and the projects are proceeding.)

Neighborhood Parks

In FY 02-03, several neighborhood projects were completed. Two (2) neighborhood park bond projects remain to be awarded: Noble Park Play Area Renovation and William Street Park Restroom. Of the 73 neighborhood park projects, 71 (97%) have been completed or are under construction. Six (6) neighborhood park projects have extended schedules.

The breakdown is as follows:

• Two (2) projects (Biebrach Park Youth Lot Renovation and Restroom, and River Glen Restroom experienced delays related to the listed sub-contractor for the award of the contract).

• One (1) project (Parma Park Master Plan) experienced delays from a protest of the CEQA clearance.

• One (1) project (Ramblewood Park Play Area Renovation and Restroom) experienced a delay in award due to an evaluation of the lowest bid contractor who has not performed adequately in the past.

• One (1) project (Silvia Cassell Park Play Area Renovation) experienced delays due to an extended community process.

• One (1) project (Mise Park Restroom) has a new extended schedule from the last report due to an unforeseen power connection problem.

• One (1) project (William Street Park Restroom) has a pending schedule as a result of its inclusion as an element of the Selma Olinder Park Master Plan build-out project. Restructuring of the funding plan for this project was delaying the construction schedule, however, that issue has been resolved and the project is pending establishment of a new schedule.

Community Centers

Currently, there are seven community center projects actively moving forward. Both the Camden Multi-Service Center and the Gardner Satellite Community Center have entered the construction phase and are on schedule for completion in early 2005. The Southside Community Center – Phase III and the Almaden Joint Facility are continuing master planning and design efforts. One (1) community center project (Morrill Community/Youth Center) has an extended schedule. This project is being delivered by the school district. Currently, construction documents for this project are at a 90% stage. The school district has confirmed the availability of funding to proceed with bid and award in November 2003. The extended schedule includes a 12-week plan review time required by the State Architect.

The Mayfair Community Center is currently within the early stages of project feasibility/scope definition and will continue the master planning phase by the end of the calendar year. Site selection has been completed for the Willows Community Center and property acquisition and project programming is proceeding.

One community center, the Roosevelt Multi-Purpose Community Center, will proceed in spring 2004.

Regional Parks

Two (2) projects, Emma Prusch Memorial Park – LeFevre House and Municipal Rose Garden have been awarded. Both projects are on schedule to be completed in FY 2003-04. The consultant is currently completing design development for the Almaden Lake Park and after City review, will proceed with construction documents. The project is scheduled to be awarded in April 2004.

The Happy Hollow Park and Zoo project re-phasing plans were completed and presented to Council in June 2003 as part of the Manager’s Budget Addendum #35. The new two-phased approach provides important project management, construction and operational advantages over the previous six-phased project plan.

Trails

Four (4) of the 5 trails are currently active within the feasibility or design stages. One (1) trail project has an extended schedule. The Guadalupe River trail is shown as schedule extended, as land acquisition requirements will be determined once the Santa Clara Valley Water District further defines its flood control project between Highway 280 and Curtner Avenue.

Sports Parks

Project start dates for construction of both sports parks at Singleton and Shady Oaks were rescheduled to FY 2006-07 to defer the operations and maintenance impacts to the General Fund. Prior to proceeding with project design alternatives for these sites, staff is currently evaluating the citywide needs based on an overall business operations plan approach. This will allow the City to determine what type and scope of regional sports park facilities are needed at these locations to serve both citywide and neighborhood needs.

Improvements to Project Monitoring and Delivery Processes

Staff is currently reviewing opportunities for improving the City’s project monitoring and delivery system. Several actions are in development and nearing implementation: establishing a more focused, results-driven project monitoring and reporting process that will give project teams better project management tools while setting high expectations for accountability and on time/on budget performance; developing a single, reliable database for all CIP projects; aligning staffing and database information to provide accurate, readily accessible project status information to the Mayor, Council and public on a daily basis; and establishing a quality annual report to the public regarding CIP accomplishments and upcoming projects.

Public Input and Results of the Public Hearing

In general, public input is incorporated into each project during the master planning, environmental and construction phases. A master plan, or master plan update, is required of each park development and renovation project. The duration and level of public participation involved in the master planning process varies with the complexity of the project but generally includes no fewer than two and as many as ten meetings to allow the residents the opportunity to understand the scope and nature of each project and provide comment and recommendations relative to the project. Following the community process each master plan is reviewed and recommended upon by the Parks and Recreation Commission and approved by the City Council in publicly noticed meetings.

More specific to the Bond Program, there were no public comments offered at the February, June or October meetings of COC. In February, the COC engaged in a general discussion with staff on the impact of the economy on bidding of projects and the design of playgrounds.

In June, the COC discussed the impacts associated with the deferral of three major park projects including the Singleton and Shady Oaks Sports Complexes and Prusch Park resulting from the Mayor’s March Budget Message. The projects had been scheduled back to June 2008 to delay operating budget impacts.

In October 2003, the COC encouraged staff to increase public awareness and outreach regarding the status of the Safe Neighborhood Parks and Recreation Bond program. Specifically, they asked that the City Council be made aware of when community and neighborhood meetings were held in conjunction with the development of each project to allow for resident participation in the development of project scope. The COC further requested that a list of bond-funded projects, sorted by Council District be made available to the COC as a reference tool. Staff will prepare a report for presentation to the COC at an upcoming meeting.

In November 2003, the COC requested information relative to the process and criteria by which decisions are rendered for selecting and prioritizing projects to be deferred or delayed. Staff indicated that decisions relative to the deferral of projects were made by the City Council based upon information associated with potential operating cost impacts provided by the Division and the City Budget Office. The three projects deferred were estimated to have significant additional operating costs that could not be absorbed within projected budgets. Staff will develop criteria to guide future project deferrals decision-making.

Additional comment was received on the draft report from the City Managers Office CIP Action Team relative to the contents of the Annual Report. Specifically, the City Manager’s Office recognized the correlation between the dates of Council review of the Citizen Oversight COC Annual Report and the CIP Quarterly Status Report that are both presented to Council in December and noted an opportunity for confusion being created in the interpretation of project schedule information that is presented in both reports.

The potential confusion emanates from the use of project schedules that look similar but are actually for different periods. The Annual Report contains project and schedule information as of June 30, 2003. The CIP Action Team Quarterly Report contains a schedule that is current to September 30, 2003. Therefore, the project schedule information that was proposed in the draft Annual Report will not be contained in the final Report.

The COC will be provided copies of future CIP Quarterly Reports as a reference to project-related activity. The reports are available on the City Website.

PUBLIC OUTREACH

The COC’s oversight process is noticed publicly using display ads placed in the San Jose Post-Record (September 19 and September 26, 2003) and the San Jose Mercury News (September 23 and September 30, 2003). Background information for this report is available to the public on the City Website at www.ci.san-jose.ca.us/pub_wrks/cip/bonds/report/index.html.

CONCLUSION

There continues to be noteworthy progress on implementation of Safe Neighborhood Parks and Recreation Bond projects since the passage of Measure P in November 2000. Fiscal Year 2002-03 was the most successful year to date in terms of the number of projects completed. The park and recreation infrastructure of the City has been significantly upgraded and brought into compliance with evolving safety and accessibility mandates and many new and improved recreational resources have been opened for public benefit. The projects remaining include a considerable number of new large-scale community-serving facilities that will appreciably add to the recreational service capacity of the San Jose park system.

The COC is very pleased with the quality and variety of safe new park and recreational resources made available for the enjoyment of the residents during in fiscal year 2003/2004 and commends the City Council and staff for their efforts in this regard.

CEQA

Not a project.

Elisa Koff-Ginsborg, Chair

Parks and Recreation Commission

Acting as the Citizen Oversight Committee for Safe Neighborhood Parks and Recreation Bond Projects

cc: Sara Hensley, PRNS