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.

The much anticipated San Jose Rotary Club debate between Councilmembers Pete Constant and Ash Kalra did not disappoint. Both Constant and Kalra were spirited advocates for their positions: Constant defending Measure B, the pension “modification” measure; Kalra, a lawyer, presenting the views in opposition. By the end of the debate, to the disappointment of many, it was Kalra who gained the most.

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.

Never mess with Bob Kieve—that’s the lesson San Jose Councilmember Ash Kalra learned after trying to bow out of San Jose Rotary Club’s pension reform debate next week against council colleague Pete Constant. David Ginsborg, a Rotary member and the right fist of County Assessor Larry Stone, says Kalra was scared he would be branded as anti-pension reform in the debate when really he’s just anti-Mayor Reed. But others tell a different tale.

Money talks during election season, and it seems the closer a person is to San Jose’s City Hall, the louder their voice. That could be why San Jose Councilmember Pierluigi Oliverio and planning commissioner Edesa Bitbadal raised the most money in the first two and a half months of the year with more than $121K and $86K in campaign contributions, respectively. Councilmember Rose Herrera didn’t do too shabby either, hauling in almost $49K. But Kansen Chu just topped Herrera’s total and, according to his campaign disclosure forms, the money he spent suggests he might be currying votes and/or future favors with cash.

Metro Silicon Valley’s issue this week looks at possible candidates to succeed Mayor Chuck Reed when he terms out in less than two years. One possible candidate for San Jose mayor in 2014 is San Jose Councilmember Ash Kalra.—Editor

One of the best ways to raise money this election season appears to be counting Chuck Reed as an enemy. The mayor of San Jose’s apathy for labor-backers appears to have lit a fire under the fundraising efforts of union candidates.

A day before the two-year anniversary of the Citizens United v. the Federal Election Commission Supreme Court ruling, more than 200 protesters gathered Friday at St. James Park in San Jose. The rally was held in support of the Move to Amend demonstration, a proposed constitutional amendment that would reverse Citizen’s United, which paved the way for corporations and unions to spend an unlimited amount of money on political campaigns.

Four San Jose councilmembers want City Manager Debra Figone to explain how she hires and ensures diveristy in senior staff positions. Few outside searches take place for qualified candidates, and just as few minorities currently hold director-level positions. As a result, Councilmembers Kansen Chu, Ash Kalra, Nancy Pyle, Xavier Campos and Don Rocha sent a memo to the city’s Open Rules and Government Committee asking for data. They also want a discussion on hiring practices to take place at the council level.

The City Council will hold a special meeting on Wednesday to determine if the city should conduct an audit of the San Jose Redevelopment Agency’s incubator programs. As San Jose Inside first reported, a study buried for two years shows the RDA spent more than $30 million on start-up companies that often provided a poor return on investment.

Medical marijuana clinics are having a big summer in downtown San Jose, as patients in oversized jean shorts and nightgown T-shirts can be found burning on the sidewalk almost any afternoon. Complaints of people lighting up on city streets are numerous—ask downtown’s Councilmember Sam Liccardo as well as police—but medicating in public isn’t illegal as long as smokers carry a doctor-prescribed card and stay clear of public transportation hubs.

Councilmember Ash Kalra won’t serve any jail time after pleading guilty today to misdemeanor DUI, but he will take part in a jail work-detail program for five days, pay $2,000 in fines, receive alcohol counseling for 90 days and be put on probation for three years.

After asking the city’s workforce to accept 10 percent cuts in compensation to help avoid a fiscal disaster, councilmembers Kansen Chu, Xavier Campos and Nancy Pyle voted Tuesday against docking their own pay.

Before word leaked out through the usual channels that councilman Ash Kalra had been arrested and charged with a DUI early Saturday morning, Kalra and his chief of staff, Joseph Okpaku, were already in damage-control mode. They beat the CHiPs to the punch by holding a casual press conference at Kalra’s home.

Fly finds it ironic that many of the local leaders who supported last week’s City Council vote to denounce Arizona’s harsh new illegal-immigration law themselves do business in the Copper State—whether they are aware of it or not.

It turns out that Madison Nguyen, who sponsored the resolution, hosts her re-election website http://www.madisonnguyen.com with the Phoenix-based iPower Inc.