The Rules Committee allowed my memo on Pension Reform to go before the City Council Tuesday, Aug. 3, to be considered as a ballot measure for San Jose voters this November. At the Rules Committee meeting, members of the public were few compared to the number of paid lobbyists that were in the audience. 

Last week in SJI I wrote about the criticality of strong leadership from our candidates running for governor to fix California’s public schools. It will not be the leaders that make the difference, but each of us who are willing to speak out and put our money where our mouth is. The assembly Democrats have a proposal that supports our children and schools, but it will not pass unless we become engaged in the debate right now.

On Tuesday, Aug. 3, the City Council will decide on five possible ballot measures that would go before San Jose voters in November. So far, the Council has budgeted money to place two items on the ballot; therefore the council must choose two of the five. However a group known as Baseball San Jose has offered to pay for the cost of putting the Downtown Baseball Stadium question on the ballot, so three ballot measure may go before voters.

My memo below will be discussed, next Wednesday, July 28 at 2pm at the Rules Committee which includes Mayor Reed, Vice-Mayor Judy Chirco, Councilmember Nancy Pyle and Councilmember Pete Constant. This is a public meeting.

Recommendation
Direct City Attorney to prepare legally binding ballot language for a ballot measure to be considered at the August 3, 2010 Council meeting for the November 2010 election allowing residents of San Jose to vote on changing the City charter by removing charter language regarding “minimum benefit” and “contributions/ cost sharing” in regards to pensions (Sections 1504 and 1505). Removing this language would allow the flexibility to negotiate a 2nd Tier pension for new employees whose hiring date is after January 1, 2011. This proposal would not change current legally vested benefits for existing employees. 

Hope your Fourth of July holiday was fantastic. On June 29, prior to the holiday the Council made the final vote for a balanced budget. More than 20 people spoke at the Council meeting and all but one advocated that the Council not outsource janitorial services but rather keep the janitorial staff employed, since they provide an incredibly valuable service. You would have thought janitorial was listed in the city charter by the speakers’ comments.

Lately, San Jose’s political rhetoric has been hotter than its weather. Here are a few samples of comments by San Jose residents that were published by the Mercury News in recent days:

“With the resulting layoffs of 230 police and fire personnel looming, their (the unions’) motto needs to be revisited. Perhaps it should be modified to read, ‘To protect and preserve union power at the expense of public safety.’”

“Public and private workers increasingly live in separate economies…public employee unions have had a stranglehold on state and local elected officials for decades.  This has to end, as the taxpayers are fed up and tapped out.”

The final-final vote for the budget is tomorrow, to enact appropriations. Much work goes on behind the scenes with our budget office. Each time a change is made it is an arduous effort to balance the books and calculate the impact on the budget.

If there is a compensation cut in a private sector, it is simply a reduction off the top of base pay — that is easy to calculate. However, when we have unique requests from labor unions that require municipal code changes or legal interpretations of the city charter, it gets complicated.

Lithium and crude oil are essential resources to bolster our global economy. Some even speculate we are in two wars because of their importance to our nation. Whatever the truth is about Afghanistan with its lithium deposits and Iraq with its oil reserves we cannot lose focus on the undeclared war of educating all children adequately. A quality education for all children must be a guaranteed fundamental right of all governments, but particularly for the wealthiest nation on the planet.

The two city council meetings held last week regarding the budget and labor negotiations demonstrated the need to make all labor negotiations public. If you are interested, you can click on this link and see for yourself the drama and trauma that took place that still does not have closure. This week’s meeting, June 22, will hopefully close this chapter.

After a week of anticipation, the Santa Clara County Registrar’s Office still does not have a definitive answer for candidate for District 1 Supervisor Teresa Alvarado. Alvarado, who’s been trailing her opponent Forrest Williams since the June 8 election by fluctuating margins, spent much of the week attending county budget hearings at 70 West Hedding. Fly was seated nearby at Wednesday afternoon’s meeting when she received an email on her Blackberry saying the gap between her and Williams had shrunk to 32 votes. “Is that the last of it?” she whispered. “What the hell?” Updated

Thirty minutes before the San Jose City Council went into closed session to decide whether to impose a 10 percent pay cut on public employees, Councilmember Pierluigi Oliverio addressed the large group of union members and other citizens gathered for the meeting.

“If you’re angry, it’s ok to be angry,” Oliverio said, “because the system is all screwed up.”

Last Tuesday, the City Council decided to delay its vote on the 10 percent wage cut for city employees, after five unions provided a counter-offer that they claimed would be the equivalent of the proposed cut.

However, after studying the offer, City Manager Debra Figone and City Attorney Richard Doyle determined that it was unacceptable. Figone recommended the city impose the cuts and implement the Mayor’s budget proposal.

The motion passed on an 8 to 3 vote, with council members Pyle, Kalra and Campos opposing. The Council deferred action on wage and benefit concessions with the five labor unions until the Council meeting of Tuesday, June 22.

It’s getting to be like a game of chicken. On Tuesday evening, City Council decided to delay its vote on the 10 percent wage cut for city employees after five unions provided a counter-offer that would be the equivalent of the proposed cut. They are now ready to study the offer, and to meet again on Thursday or Friday to decide whether to accept it.

Monday: Medical Cannabis Outreach Meeting
The first outreach meeting regarding medical cannabis collectives was held Monday night at City Hall. Even though the meeting was held late in the process, it was well attended with over 150 people. There were two main groups present: residents and collective patients. Not one person spoke against compassionate use of medical marijuana in San Jose, however, both groups agreed that the locations should be away from schools, parks, daycare centers, etc. Last October, when I initially brought this issue to the Rules Committee, I advocated that we restrict where collectives can locate and include setbacks from locations like schools, etc.

It is the City of San Jose’s process that City Manager Debra Figone puts forth a budget proposal in May. Then, after that is released, councilmembers make their budget proposals to Mayor Chuck Reed.

When the Councilmembers make written suggestions of their “budget wants,” they also need to include what funding source within the city will be affected (some written suggestions from councilmembers are done in collaboration with labor unions).

Then, the Mayor takes into consideration the City Manager’s budget proposal and the Councilmember’s suggestions, and comes up with a final budget. 

Of course, a mayor could put together their own budget without this input, but it is customary that the mayor takes other perspectives into consideration. 

As you may know, I created a budget web survey which I shared with you on May 10. The survey was open to everyone and closed yesterday afternoon. More than 1,000 people participated with more than 400 written comments. Thank you for participating

The 2009-2010 Santa Clara County Civil Grand Jury today released a 33-page report titled Cities Must Rein in Unsustainable Employee Costs that says, “Employee costs are escalating in the cities of Santa Clara County, revenues are not keeping pace with these increases and cities are cutting services.” The Grand Jury looked at rising wages, health insurance, pensions, and vacation, holiday, and sick leave and made recommendations to control costs.