The City Council discussed one of the world’s most precious resources last week; water. The council had its annual meeting with the Santa Clara Valley Water District. In the past, the two organizations have had some turbulent conversations; however, at this meeting we were all on the same page about conservation and the future supply of water.

Although I was born and raised in San Jose, my visits to the East Side were not commonplace. As a kid, I was advised of general safety issues about the East Side and was warned not to go “there” at night. My father taught English to adult immigrants on the East Side for about half his teaching career, and I used to accompany him when my school was closed. I would sit in the back and meet his students from all over the world. In high school I would go to East Side high school sporting events, remembering that I needed to be careful—at least that is what I was told.

...I did not actually eat breakfast with members of the Chamber of Commerce last week, but I met with them early in the morning—which is a challenge for me since I normally go to bed at 1am. The Chamber, as many of you know, is an interest group that advocates on behalf of small and large businesses. They invited me to attend their meeting for some Q-and-A.

The Chamber, like labor unions, the Democratic Party, the Republican Party, or the League of Conservation Voters, typically endorses candidates running for political office. Endorsements carry clout with some voters, but more importantly, endorsements come with monetary donations, plus independent expenditures for political mail to voters, and volunteers to walk door-to-door on your behalf. In my Council election, the Chamber endorsed my opponent and as a result, they did four independent expenditures on his behalf in addition to donating money to his campaign.

Our County Assessor was quoted on Friday as saying the downturn in real estate values is “worse than expected,” and that more than 90,000 residential parcels will be valued at less then their purchase price. We are living through historic times, with unprecedented negative growth in real estate. That has happened in Santa Clara County only a handful of times: in 1932,1933 and1936, and again in 1978 (after Prop 13) was passed. So what does that mean, other than many depressed homeowners? Well, it means that the City of San Jose’s deficit just catapulted to $77 million.

The City Manager announced Friday that we will have an additional shortfall of $14.3M due to lower property tax revenues on top of the sales tax decline which added another $3M to the deficit. I believe we will also see a sharp fall in our TOT (hotel tax) this quarter. This means less city services starting July 1, 2009 for you. But there is more…

On Friday, March 20, I participated in a fun event called San Jose Bike Party. The “bike party” is organized by people who promote bicycling in San Jose. They pass out flyers at bike shops and use the internet to get the message out. There have been 18 “Bike Parties” so far and the 19th is coming up on April 17 at 8:45pm at the old Zorba the Greek Restaurant parking lot located at South Bascom Avenue and Stokes Avenue in District 6. The bike parties are themed events, around themes like mustaches, mardi gras, robots etc… The event has some of the flair of the Burning Man scene, plus some rockabilly style, but it also includes just regular bicycle enthusiasts.

Last week I responded to many of your questions with a term, “Meet-and-Confer.” This terminology is used in reference to discussions that city management has with unions about almost anything.

Once a labor contract is agreed upon, any thought of a change requires a meet-and-confer meeting. It could be a compensation freeze, sick time, vacation time, grievance, health care, retirement, education reimbursement, uniform allowance, time off with pay to conduct union activities, examining the possibility of using a non- union person to provide a city service, or even discussions about future employees who have not been hired yet, etc… So with the current budget deficit, if we want to have a discussion about city staff taking one day off without pay ($2.88M) to avoid layoffs, then there needs to be a closed-door meeting.

On March 12, I hosted the second annual budget meeting in my district. My goal was to inform the community about the budget process, the size of our budget, where the revenues come from and different options on trying to deal with the current deficit.

The major message from the residents that attended the meeting was that the city needs to change employee policies and compensation (including sick leave payouts and pensions) before cutting services.

On Saturday morning, I went on my 5th Homeless Encampment “sweep” with the San Jose Police Department’s Metro Unit.  The Metro Unit is in charge of monitoring creeks for encampments.  These clean-ups have taken me to Districts 3,4,6 and 7, alongside the Coyote, Guadalupe and Los Gatos Creeks. When you climb down into the creeks you forget you’re in San Jose, as all you can see is nature.

We have hundreds of people in San Jose who live in the creek areas in temporary shelters. Some structures remind me of developing world shanty towns while other camps have a complete living room set up, with power operated from car batteries.  Some encampments are small and are set up underneath street overpasses, while other encampments are massive with many people.

In 1976, San Jose city leaders emerged from a retreat at the Asilomar Conference Center and declared that their number-one priority was to fix the jobs and housing imbalance in San Jose.  Since then San Jose has provided the most affordable housing in the state of California, and tens of thousands of market-rate dwellings; however, San Jose has not shared in the job growth. So while other cities have a “jobs surplus,” San Jose still has a “jobs deficit.”

Last week, I attended a brainstorming session at City Hall.  The purpose of the gathering was for ideas to help Downtown during the recession. The group included the Downtown Association, land owners, developers, business owners, arts advocates and others. Individuals presented their ideas to the group.  One example was sponsoring an overnight camp-out in Downtown parks by the Boy Scouts and Girl Scouts. Another was closing SOFA to cars every Friday allowing for a pedestrian-oriented evening. Other ideas included a 24-hour theater festival, music festivals, murals and free parking. And another was that the city could give away free Downtown land for an architectural design contest.

I thought to myself, “What could we do during a long-term recession that costs the city zero dollars and would actually bring more revenue to the city?” My idea: allow card rooms to locate in Downtown again.

Last week at the Rules committee, there was a standing- room-only crowd to support our request to use $1.9 million to fund the citywide school crossing guard program on a temporary basis (three fiscal years) out of the $9 million the City receives from the tobacco settlement monies.

Coming before the Rules Committee on Wednesday, Feb. 11 at 2 PM in Room 118 is a memo regarding the 64 year-old crossing guard program. In a nutshell, the memo asks that the City of San Jose use $1.9 million from the $9 million tobacco settlement monies (which the City receives every fiscal year from the tobacco industry and will receive for the next 25 years) to fund the crossing guard program on a temporary basis (for three fiscal years) to ensure that the program stays intact despite our massive $65 million deficit. After three years, our economy ideally should improve and the funding for the crossing guard program can be re-evaluated

Last week, the Council spent two and half hours talking about making changes to a 1997 “competition policy.” At the prior Council meeting we spent two-plus hours talking about the same topic.  That policy is already burdensome and makes it difficult for businesses and/or non-profits to jump through all the hoops to do business with the city. I don’t own a business or manage a non-profit, so don’t ask me, ask the only two businesses that tried to utilize the policy during the past 12 years, but to no avail.

On Saturday, City Manager Debra Figone and Mayor Chuck Reed hosted 100 neighborhood residents at City Hall for a discussion and group exercise on how to balance the city’s budget and eliminate the $65 million dollar deficit.

Last week, Mayor Reed held his State of the City Address. And I think the mayor was forthright by clearing stating that the City of San Jose has a large deficit, and that cuts to services and layoffs are before us. In fact, I believe that the current $60-65 million budget deficit will worsen and grow to $70-75 million.

Last week, I attended in the Santa Clara County Cities Association. This association has a representative from every city in Santa Clara County. In my view, a good portion of the time is spent uniting all the cities to advocate state and federal policy- makers on policies or bills that help Santa Clara county cities. At this meeting, the Recycling and Waste Reduction Commission (RWRC) of Santa Clara County presented the concept of banning plastic bags.