Steve Kline is an attorney who is currently running for a City Council seat in District 6. He wrote this column for San Jose Inside.—Editor

San Jose has failed its neighborhoods and citizens by inadequately delivering the essential city services for which the taxpayers have dearly paid in tough economic times. Overall, the city has a $2.8 billion budget. The budget is comprised of multiple funds, many of which the city has created to fund special interests and projects. Then, there is the battleground called the General Fund, which is only about 33 percent of the total budget. What the council hath created, the council can change. That fund should be more important than the special interests.

Eric Swallow currently owns the city’s oldest card room, Garden City Casino, with partners Peter and Jeanine Lunardi, and they want nothing more than to shut down the aging facility and replace it with a 21st-century gambling establishment. Casino M8trix is a $50-million, 16-story highrise alongside Highway 101 near San Jose’s airport. The casino’s owners are in a standoff with San Jose Police Chief Chris Moore and some members of city staff.

I predict going forward that groups sponsoring ballot initiatives will be a constant part of the political landscape in San Jose, similar to the outside funding of planning department ordinances by third parties to move forward on regulations. The minimum wage initiative recently gathered and submitted the required signatures last week, and action will be taken at the May 22 City Council meeting. A library initiative is also in the process of gathering signatures for a November election.

In addition to discussing its top five economic priorities for the rest of the fiscal year, the City Council goes Hollywood on Tuesday—or at least brings little Hollywood home—when former American Idol contestant and San Jose native DeAndre Brackensick will receive a commendation. Other matters going before the council Tuesday include a ban on city departments purchasing expanded polystyrene, the Independent Police Auditor’s annual report and continuing to suspend certain pension payments. Now that we’ve fulfilled our agenda obligations, feel free to comment on which councilmember you would vote off this season’s cast.

UPDATE: The District Attorney’s Office is charging former MACSA CEO Olivia Soza-Mendiola and CFO Benjamin Tan with grand theft for illegally diverting more than $1 million that should have gone to employee retirement accounts. Check back later in the day for a story about the charges.—Editor

The Santa Clara County District Attorney’s Office plans to hold a press conference at 11am Thursday unveiling its findings from the investigation into the Mexican American Community Services Agency (MACSA). The announcement will come 28 months after former DA Dolores Carr was notified that MACSA, a nonprofit organization, stole $400,000 from employee pension funds from two of the schools it operated.

In a sign that the city of San Jose has no immediate plans to aggressively add to its workforce, an item on Tuesday’s City Council agenda suggests permanently eliminating 12 positions and adding a new job: Risk manager. Also on Tuesday, the city plans to accept an audit of the police department that says urgent reform is needed regarding the secondary employment of officers. Discussion on the city’s top five priorities in its Economic Strategy Workplan has been deferred to next week.

The “victory” claimed by certain union members by suing the city over the word “reform”—as in “pension reform,” known as Measure B for the June ballot measure—may have actually jeopardized a future tax increase to fund their own jobs. The removal of the wording, “essential city services including neighborhood police patrols, fire stations, libraries, community centers, streets and parks,” was included in the ruling and cannot be used as a way for the city to lure residents into supporting higher taxation.

The office of the Independent Police Auditor, led by retired judge LaDoris Cordell, conducted “unprecedented outreach” in 2011, according to its annual report released this week. As a result, the office received a 26 percent increase in the amount of complaints filed against the San Jose Police Department compared to a year prior. The IPA provided 30 recommendations, some of which were as small as prohibiting tobacco chewing to as large as overhauling Internal Affairs.

Starting May 25, it could be against the law in San Jose to smoke a cigarette while sitting in a bar’s outdoor patio, standing outside of one’s apartment door or waiting in line. On Tuesday, the City Council plans to vote on expanding restrictions on where people can smoke, and many at City Hall believe the item will pass with little resistance. According to Joseph Okpaku, Councilmember Ash Kalra’s chief of staff, the new ban would go into effect 45 days after the vote.

As we know, health care costs are escalating at double-digit rates. The continuous high costs are a burden to the self-insured, businesses and government. In San Jose, we have an unfunded health care liability of approximately $1.5 billion. The City of Stockton has been in the news for starting the process of bankruptcy under AB506, and much of their plight is due to the cost of health care benefits. San Jose should implement a incentive/mandatory wellness program in 2012 to reduce the cost of health care.

UPDATE: The California Superior Court set a hearing for Monday, April 2, to rule on competing lawsuits regarding Measure B.—Editor

Councilmember Pete Constant and Ballot Measure B’s campaign treasurer, Ben Roth, plan to file their own complaint in California Superior Court on Friday morning. Their petition claims opponents of the pension and benefits reform ballot measure used false and misleading statements in their arguments. The filing comes almost a week after labor unions filed their own lawsuit over ballot language. A judge could rule on both the unions’ lawsuit and the more recent petition ahead of the scheduled April 3 hearing.

A citizens signature drive is underway to secure a certain percentage of the budget for our libraries. This would replace the library parcel tax set to expire in 2014. If enough signatures are collected, the measure could be placed on the ballot in November. Last month, I proposed examining and collecting data for setting a certain percentage of the budget—higher than today’s percentage—for the police department. Perhaps we could combine the ideas and set a percentage of the budget for police and libraries.

In a recent civil case, a San Jose police officer was found liable for using excessive force on Danny Piña, who was misidentified as a gang member. Piña was wearing a red shirt and police stopped him for riding a bike with a missing headlamp. The jury found that the officer, Allan De La Cruz, used excessive force when he broke Piña’s nose and dislocated his shoulder. I have a 16-year-old son who had a similar experience of being misidentified by police, based on what he looks like and there being a gang presence in the neighborhood.

The City Council will finalize a decision Tuesday for a pension reform ballot measure. This is the question that will likely be put to voters on June 5: “To protect essential services: neighborhood police patrols, fire stations, libraries, community centers, streets and parks, shall the Charter be amended to reform retirement benefits of City employees and retirees by: increasing employees’ contributions; establishing a voluntary reduced pension plan for current employees and pension cost and benefit limitations for new employees; reforming disability retirements to prevent abuses; temporarily suspending retiree COLAs during emergency; and requiring voter approval for increases in future pension benefits?”

In an attempt to box in Mayor Chuck Reed on his worst-case scenario of the city’s pension crisis, a complaint was filed with the SEC on Monday on behalf of three unions. The complaint claims Reed didn’t disclose pertinent information on the pension crisis in forms filed with the SEC and misled investors who helped the city issue $435 million in bonds last year.

A four-month manhunt ended Saturday with the arrest of Steve Ruiz, who is suspected of killing fellow Hells Angels motorcycle club member Steve Tausan at a funeral during October of last year. Ruiz will reportedly be charged with homicide Wednesday.