Oliverio for Supervisor 2018

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The Only Economist Worth Trusting is Named ‘Hindsight’

September 13, 2010 By Pierluigi Oliverio

Last Tuesday,  the City Council had a study session on the upcoming Redevelopment Agency (RDA) budget. RDA funds are regulated by state law and are almost entirely spent on land and construction, similar to how bond monies are restricted. We have funded some limited city services in RDA and Strong Neighborhood Initiatives (SNI) areas (not citywide), such as anti-gang programs and code enforcement. The bulk of RDA funds have gone to capital project like the HP Pavilion, numerous museums, the convention center, parking garages, hotels, Adobe and facade grants as well as industrial projects in North San Jose and Edenvale.  However, RDA also funded approximately $70 million for SNI capital projects like community centers, parks, traffic calming, etc.

The larger discussion was about how we spend or do not spend the limited RDA funds after the State of California raided the funds last year and again this year.  RDA funds are based on assessed property values in the merged RDA areas (Downtown, North San Jose, Edenvale). If those commercial and residential properties increase in value, that creates more tax increment dollars. If those values decline there is less. All 350 RDA agencies statewide are experiencing the same pain. As we know, property values have declined and may decline further depending on which economist you listen to.

San Jose RDA hires an outside economist every year to forecast future revenues for a third-party review. The economist has not always been accurate. The economist has projected higher tax revenues in years past which did not pan out. Economists do not have a crystal ball and economic conditions have not been this dire since the Depression, which makes future forecasting that much harder. We may consider a different economist next year however the current economist has already been paid so I do not see the need to spend more money and hire an additional economist. I would rather take the economist’s number, cut them in half, and budget based on conservative numbers.

The main question for me is: “When revenues are uncertain, do we budget on the lower conservative numbers or the higher optimistic numbers?” I would prefer to do a budget on the lower numbers as it is easy to spend money but harder to constrain spending. The only economist I trust is “Hindsight,” and we will only know the answer in the future.

The RDA laid off 20 percent of its staff last fiscal year and may have to do more layoffs this coming year from their current 72 employees. The RDA is the only city department that is non-union, so layoffs are done by the director and not necessarily by tenure. I believe that with limited funds, the scope of RDA should be narrowed to economic development which creates a tax base and net new employment. That may also mean refraining from issuing any new debt this year and next. Mayor Reed has suggested a mid year budget review for RDA so if revenues change, adjustments can be made.

I attended the ribbon cutting for the Brocade campus on Thursday.  The Mayor knocked the ball out of the park with his comments on how federal law, state law and local regulations hinder job creation. In addition, Mayor Reed pointed out a simple economic lesson—that this country will grow the economy through exporting, and Brocade is a testimony to that as the majority of its technology products are exported overseas.

The RDA spent $4 million to retain Brocade and the jobs in San Jose at a new campus at Highway 237 and North First Street. I believe strategic investments are good.  We cannot always predict which company will succeed, but we know these investments reap increased revenue for the city of San Jose.

Finally, here is a table from Mayor Reed’s RDA budget message last year that shows how RDA economic development is better for city tax revenues and ongoing jobs then RDA affordable housing. The chart shows the increased property tax revenues and both direct and indirect job increase.

Do you plan your household budget on your net paycheck or on expectations of increased wages and/or return on investments?

Filed Under: Chuck Reed, Politics, RDA

89 Houses, or 170-High-Paying Jobs?

September 7, 2010 By Pierluigi Oliverio

On April 18, 2006, the City Council unanimously approved the Guadalupe Mines General Plan amendment, changing the zoning from Research & Development to Residential. At that same meeting, the Council debated other industrial conversions along Old Oakland Road/Rock Avenue, and voted to convert all of the employment-land parcels that night to housing.

Now, four years later, on Aug. 31, the Council heard a proposal for housing on the Guadalupe site for 89 single family homes.  The issue for many who spoke at the meeting was that this piece of land is against a creek and the city’s Riparian Corridor policy should be adhered to.  (A riparian corridor is another term for a waterway. The purpose is to make sure that developments are not built right next to a as a creek, river, etc..)

Although the internet is great for providing maps and aerial views, I prefer going out to the sites of land-use items that are on the council agenda.  I drove through the existing neighborhood across the street from the proposed development to know more about it, and finally drove and walked the parcel.

The thing that struck me is that I saw many parked cars. I looked up and recognized the name on the building, Monolithic Power Systems (MPS). MPS is a $240 million analog semiconductor company whose global headquarters are in San Jose. I went into the lobby, introduced myself and asked for the Chief Financial Officer (CFO).  While I was waiting, I noticed people were coming in for job interviews. I later found out they had 11 open positions they were hiring for this location on top of the 160 current employees in San Jose.
I met with Richard, the CFO, and he gave me the history of the company which started in Los Gatos and then moved to San Jose. MPS ranks as one of the fastest-growing companies in Silicon Valley. The CFO told me they like the location and would really like to stay, but they understand they do not own the property. They like the location so much they offered to buy the building—and an additional vacant building, even though they did not need it to sweeten the pot.  So they put in an offer for the market price for R & D office space and a housing developer put in a bid as well, based on building houses. We know that housing trumps jobs for the cost of land. So the private property owner chose the higher bid.

The CFO understands they will have to move, so I asked what about Edenvale or North San Jose?  He responded that San Jose is not on the short list, as they have looked at properties in other cities based on where executive management lives.

Understanding the rezoning was done four years ago, I could not vote for housing knowing the city of San Jose would lose a corporate headquarters and 170 really well-paid jobs.  As a result, I voted ‘no,’ as I did not want to associate myself forcing a technology company to move out of San Jose. My colleague Councilmember Kalra also voted ‘no,’ citing concerns from the dais about the development being too close to the creek. Final vote was 8-2 in favor of housing.

PS: I highly recommend seeing the documentary The Tillman Story at the Camera Cinemas. It is the story of San Jose native Pat Tillman. It is a must- see and good on many levels. Do not wait for Netflix.

Filed Under: City Council, Housing, Politics

Slowing Speeders and Implementing AB 321

August 23, 2010 By Pierluigi Oliverio

Put aside the State’s raid of city funds for a moment and instead, lets be thankful for one of the best gifts cities have received from the state legislature…Assembly Bill 321 (AB321).

AB 321 allows cities the flexibility and discretion to lower speed limits on two-lane streets adjacent to public and private schools, which are currently posted at 25 miles per hour.  For example,  San Jose has many schools that are located in residential neighborhoods that have two lane roads with a 25mph speed.  These streets may have the speeds lowered to 20mph or 15mph by implementing AB321.  However,a school that is located on a four lane road would not be eligible, nor a school alongside a road that has a higher speed limit then 25 mph.

Once you determine which schools fit the basic criteria of AB321, a certified traffic study of the street is required per the state. The traffic study must be completed by a professional in the field. If a city does not have the skilled individual to conduct the study (due to rising pension costs) then the traffic studies do not get completed. (Half of the citywide traffic calming positions were eliminated in June). If a city does have the resources to do the traffic study then the study must show a lower speed then 25mph to qualify lowering the speed.

I think if the state legislature would eliminate that requirement, or lower the threshold, that would be ideal. Because the majority of drivers may drive 30mph in a certain school zone is not an excuse to condone higher speeds around schools.

I personally feel slowing down traffic around schools is a good thing to do for safety of kids but also for surrounding residents. A few weeks ago, I proposed a pilot program implementing AB321 on Dana Avenue. Due to the fire at Trace, the faculty, children and parents are walking back and forth across Dana to and from the temporary portable buildings across the street.  Thus, Dana is perfect opportunity to try AB321.

Some may say that speed limits do not matter unless there is enforcement. I agree that some people do not change their behavior unless they are ticketed and fined. We can say this for any law that is broken on a daily basis in the this country. However, speeding citywide cannot be enforced today with our limited police resources.

Writing speeding tickets, I have been told by the captain of the police traffic enforcement division, does not fully fund the officers, since cities in California only receive approximately 10 percent of the revenue on moving violations—the balance goes to the state and the court system.

I am of the mindset that even without 24/7 enforcement a large portion of the driving population obeys the law by driving the speed limit or stops at intersections with stop signs and traffic signals. There will always be those that are deviant but I don’t think anyone expects government to be all knowing and stop every violation or infraction without using surveillance technology as is done in other areas. Additionally, I support using technology like photo radar since we will never have enough police to monitor 2,300 miles of road or the over 900 signalized intersections in San Jose.

We need to do all we can to try and lay out the ground rules to make our schools and surrounding neighborhoods safer. It also means that we can shame those that drive recklessly and, yes, sometimes they are parents of students during the drop off pick up time—or they might be your neighbor.

When I was a kid and missed the school bus to Hoover my Dad would drop me off unsafely on Park Avenue across the street. My dad is a swell guy but he would know better today, since we have much more education regarding drop off and pick up. There really isn’t any excuse for not following the rules when it comes to driving safely; especially in our neighborhoods.

I believe after we tackle the pension problem and over time are able to increase positions eliminated by the structural deficit, we should expand lower speed limits to school areas where applicable city-wide. Regardless of council district or geography in San Jose all schools aggregate cars and thus causes concerns for neighbors.  Lower speed limits is part of the solution.

In addition, I think the lower speed limit flexibility should also be extended to neighborhood business districts like Lincoln Avenue, portions of The Alameda, Japantown, Alum Rock, etc…. Here again though, we need the state legislature to allow this flexibility. We are not asking for money just the ability to control speeding to promote commerce while being more pedestrian friendly and thus prvide a quality community experience.

Filed Under: Politics

From Last Place to First

August 16, 2010 By Pierluigi Oliverio

As most of you are most likely aware from the front page article in the San Jose Mercury News on August 12, The San Jose Municipal Rose Garden was selected as America’s Best Rose Garden. What an incredible achievement! Congratulations and thanks to all involved including the paid park maintenance city staff and the non paid volunteers.

The rebirth of the Rose Garden could not have been done by only park maintenance staff or only by volunteers. It is the combination of both that allows for this fantastic achievement. And the leadership of Beverly Rose Hopper and Terry Reilly.

Just over three years ago, I walked through the Rose Garden park with numerous concerned neighbors and saw the decline and devastation. I knew then that our City did not have the resources to pay for staff to care for the park, nor would a band-aid approach allow the park to reach its potential.  I also knew the City was behind the times with it’s volunteer policy. Instead, I proposed a pilot for outsourcing park maintenance. That caused the unions to assemble and defend the status quo.

Bringing up the topic of outsourcing allowed for the larger message to get out that this park and other parks need attention, especially with our structural budget deficit. Although outsourcing park maintenance, even as a pilot, was not approved in May 2007,  I did push for and was successful in having council support amending the City’s volunteer policy in October 2007.

I remember asking several times then-Vice Mayor Dave Cortese to accept my friendly amendments to allow more flexibility in the volunteer policy,  including a stipulation that corporations be allowed to have their employees donate time at San Jose parks on their community service days.  This change allowed 250 Google employees and 150 Recology employees to volunteer in the Rose Garden this summer, for example.

The Municipal Rose Garden is a city landmark and now a national one.  Volunteers include residents of San Jose and people from all of over the county. The volunteers are doers and not talkers, as they enjoy giving back to the larger community. I think they serve as an example of the JFK quote (with a twist): “Ask not what your city government can do for you, but what you can do for the community you call home.”

Municipal governments will continue to shrink as revenues will be constrained as pension costs rise. Therefore—now more then ever—residents could provide small increments of their time improving their local park, trail, traffic medians etc… Waiting on government will be taking longer then ever before.

However, residents may ask a fair question as to why cities do not do more to provide services at a lower cost.  As the Wall Street Journal reported recently, San Jose will be saving approximately $4 million a year by outsourcing janitorial. The $4 million in savings was substantial enough to garner national attention and is the trend nationally.

I am very proud to live in a city where doers start with a dead vine and do not give up.  As a result of the conviction from the Rose Garden volunteers, the City of San Jose Rose Garden is Number One!

Filed Under: Budget, Parks, Politics, Unions

Police Chief Recruitment Community Meeting

August 10, 2010 By Pierluigi Oliverio

I attended the first community meeting regarding the selection of the next San Jose Police Chief on Tuesday,  Aug. 24 at the Roosevelt Community Center.  Approximately 21 people attended. Attendees were divided into small groups to discuss five questions. I did not see any police officers however they may have been in attendance but remained anonymous.

Translation services were available in both Spanish and Vietnamese and printed material was provided in alternative languages as well. The cost for the recruiter is $26,000 to conduct the search including interviewing prospective candidates. San Jose is also paying up to $13,000 for travel expenses for all prospective candidate interviews since this is a national search.  The goal is to pick a new Police Chief by the end of 2010.

In addition stakeholder outreach will be done with specific groups including La Raza, AACI (Asian Americans for Community Involvement) and PACT (People Acting in Community Together).

We have great internal candidates for Police Chief, like Captain Gary Kirby, Deputy Chief Diane Urban and Assistant Chief Chris Moore.

Here is some feedback given from all the tables that night:

What are the most important issues that you would like the new Police Chief to address?
Transparency; oversight; importance of the Independent Police Auditor; mental health issues; acknowledge good officers; more access to police records; police rotations should be longer to promote relationships between officers and residents; Gangs; racial profiling; police brutality; work with “immigrant” community.

What experience and track record should the new Police Chief have?
Experience managing a budget and under-budget; mediation skills; understands community view and police view; long history in one geography; trilingual or at least bilingual; history of promoting diverse officers; someone who changed perception of police from negative to positive; street-cop experience; manage complex organization; experience with a multi-cultural community; success in lowering crime however some thought statistics lie and this was unfair to use crime stats; track record of firing police.

Is there anything else you would like the City to consider when selecting the new Police Chief?
Should be pro-immigrant; skilled communicator; less on results more on initiatives; know the background/did their homework on issues facing San Jose; sustainable results over a period of time; at least five years of experience running large organization; speak in simple English not bureaucratic-speak; should recruit new police officers from the immigrant community; mail residents letters with the name of their local police officers and of course a sense of humor.

What are you willing to do or contribute to help the new Police Chief?
Attend more meetings; build bridges in the community; provide a report card on how new police chief is doing; pass out information; assist with outreach; be open minded.

The four groups provided feedback that essentially requires our next police chief to walk on water.

Does this feedback match your viewpoints?

There are three community meetings left:

Monday, Aug. 30, 7-9pm
San Jose City Hall Committee Rooms

Wednesday, Sept. 1, 6-8pm
West Valley Library
1243 San Tomas Aquino Rd

Thursday, Sept. 2, 6-8pm
Eastside Union High District Office
830 North Capitol Ave

You can give your feedback to these five questions via this email:info@tbcrecruiting.com

Or fill out an online Community-Police Chief survey by clicking this link.

Finally congratulations to the Mayor and RDA for locating another company in San Jose. Baxano, a medical device company, moved from Mountain View to San Jose. The CEO mentioned that one of the reasons for selecting San Jose was the proximity to our airport plus getting all of their permits in five days.

Filed Under: Police, Politics

No Romance Without Finance

August 9, 2010 By Pierluigi Oliverio

Did you ever have a romantic relationship with someone that tested you in one way or another?  Maybe you or someone you know dated or are dating a person where at first the relationship was great. You were carefree and really enjoying yourself—but suddenly realized that some of your actions have consequences?

Perhaps you really enjoyed eating out at restaurants together, mostly at really nice places. And maybe your frequency of dining out increased from once a week to five nights a week.  You simply put it on your credit card and did not worry about it until you had to reconcile your monthly bill.  But even then maybe you justified pulling out money from savings to pay your credit card bill each month, since the other person likes you soooo much, which makes you feel really good. Maybe from time to time you get them a gift like a watch—and your significant other really likes a high-end brand.  You may stop and think about purchasing a lower-priced watch, but your sweetie says “if you really loved me, you would get me the really nice watch.“

When your savings dwindle you may have had the sobering realization that your were spending more then you were making.  At this point you might have a conversation with your lover about the new realities of what you could actually afford. Your ability to love may be unlimited, but your bank account is not.

It is no wonder most divorces are caused by conflicts over finances.

This analogy reminds me of what I have heard many times from union representatives: that if the council really respected/appreciated them, we would pay the them more, or continue paying them the current salary, benefits and pension.

This is a fair question if you have extra money. However, if the City only has so much, and even that pot of money is low, then you have to make choices.

I have said and have heard the same from my council colleagues that we respect the work of those employees that do great work for the City. However, words are cheap in comparison to tangibles like compensation.  Just like the relationship I described above,  you may want to spend more. However, you may not have the money to continue dating at the same style.

Like the City budget. If we don’t have the money we once did, we are forced to freeze or cut spending. For the individual this might be car repair, utilities and groceries. For a city that might mean cutting libraries, information technology, community centers or any other department that is important to you.  It also mean that each person in a romantic relationship or an employer relationship has free will and therefore has a choice to leave the relationship.

When it comes to money, it is important that we all learn how to adapt to changes in our lifestyle and work compensation.  I don’t say this lightly as nearly everyone is hurting in one way or another during this slow-growth and high-unemployment economy. I think my parents’ generation adapted best to difficult circumstances as their generation generally had a high savings rate and were green before it was cool, since they reused everything.

The Council made a hard decision last week, against a sea of union opposition, to put pension reform on the ballot for the voters to decide. These votes are tough as elected officials naturally would prefer to be liked—just like the person in the romantic relationship described above.

I am hopeful that you—the voter—will support new pensions for new employees as we simply cannot afford the current pension system. I made the recommendation that the group working on pension reform recommendations to the Council should be the former Three Year General Fund Structural Deficit Elimination Plan Stakeholder Group that the Council approved in 2008. Some of the group members are:  Pat Dando (Chamber of Commerce), Bob Brownstein (South Bay Labor Council), George Beattie (police union), Randy Sekany (firefighters union), Yolanda Cruz (MEF Union) and others, including a representative from the Silicon Valley Taxpayers Association. This group recommended to the Council in 2009 to raise taxes on card rooms which the Council then put on the ballot and the voters approved.

As we move into the future and we discuss new pensions for new employees, I take into consideration that some city positions, such as police or skilled chemists at the water pollution control plant, are tougher to recruit for than others. Therefore, for competitive positions, I think future compensation should be higher on salary to attract qualified candidates.

This 80’s song by Gwen Guthrie reminds me of the relationship part of the blog.  http://www.youtube.com/watch?v=XecTPWJu0wk

Filed Under: Politics

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Vicious Attack of Pierluigi Oliverio Unwarranted

Ones’ good name and reputation is a most prized possession. It is unconscionable for any person or entity to maliciously endeavor to destroy another persons reputation The lack of integrity the public special interest groups showed recently when they maliciously sought to destroy the reputation of Pierluigi Oliverio, candidate for Santa Clara County Supervisor, is […]

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Merc News condemns Unions

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Mayor Reed Supports Pierluigi

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