Oliverio for Supervisor 2018

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What Would Happen if City Hall Contracted Out its Toilet Paper Delivery?

June 9, 2008 By Pierluigi

Did you know the city has a central warehouse that costs over $850,000 a year to operate?  (Yes, we do. We really shouldn’t be surprised; this is the same city that spends over $30 million on three public golf courses.) Back to the warehouse: It stocks items like toilet paper, batteries, landscaping materials and cleaning products. The $850,000 is the annual cost of the seven employees and running the warehouse, and does not include the cost of the actual inventory.

The council discussed the possibility of “exploring the idea” of contracting out the services of the warehouse last week. However, after some discussion, the council decided to defer this item until August/September to allow for additional input from the labor unions.  The city is investigating if it would be cheaper to manage the warehouse via a contracted company under its public-private competition policy from 1997.

The idea is to take advantage of what other large organizations do.  For example, many of them have “just in time” (JIT) delivery of their supply chain needs. In fact, many high-tech companies have vastly more complicated global supply chains then the City of San Jose. These companies have gone “virtual” with their manufacturing and warehousing via third party logistics providers who execute the JIT programs.

One of the benefits is not having carrying costs of the actual inventory.  By using a JIT program we would only pay for the toilet paper once it has been delivered to City Hall, instead of when it is in the warehouse collecting dust.  You should not fret about bathrooms running out of toilet paper as the chosen company will be required to have additional local inventory that is deliverable to the specific city facility within a certain amount of time.

We could redeploy the seven warehouse employees to other jobs at the corporation yard, City Hall, civilian positions in our police department, or the sewage treatment plant, for example.

Union leaders assert that the warehouse and the seven employees are strategic resources for the city in case of an emergency—two good points. However, the city is not going to actually sell the warehouse property and all city employees are asked to help out in case of an emergency, not just these seven.

The residents of San Jose want us to look at areas where the city can be more efficient and save money.  Therefore, I believe we owe it to the taxpayers to explore ways we can do so. I just hope that city staff and the labor unions will have a truly open dialogue on this topic so all issues are vetted fairly before it comes back to council later in the year.

Filed Under: Uncategorized

Disneyland Comes to Alviso

June 2, 2008 By Pierluigi

Disneyland in Alviso?  Not quite, but the comparisons are definitely there.

Several months back, I accompanied Councilmembers Chu and Liccardo on a tour of the San Jose Water Pollution Control Plant.  We rode on electric carts that were linked together like those at an amusement park.  Our tour guide spouted off words like, “sewage back-up, micro-organisms, aeration, methane gas”—much different then “Pirates of the Caribbean.”

The facility itself is quite large (2,600 acres) and old (built in 1956). The tour included the carts going from different facilities and walking down into the bowels of some of the buildings. San Jose could easily rent this space to the maker of a horror movie since these basements were eerie. Some of the rooms looked like scenes from a large naval ship, with long dark hallways and big pipes running overhead.  Down below, we were able to view wiring that is 20–40 years old; life expectancy of the wiring is only 25 years.

This facility treats over 110 million gallons of water each day to serve 1.4 million residents in eight cities.  The water that we flush from our toilets travels north to the plant where it goes through a series of phases. The finished product is clean water that flows to the bay.  Also, “recycled water” can be pumped back out to the city through “purple pipes” to manage industrial and irrigation needs. In some cities it becomes drinking water. I am leaving out a lot of detail on all the phases since this would get too wordy, and I must leave you with some mystery.

You may actually tour the plant yourself! The city offers a two-hour free tour on Saturdays. You may choose 9–11a.m. or 1:00–3:00 p.m. The remaining dates available are June 7, July 12, August 2, and September 6. Call 408.975.2551 to sign up or email carolina.camarena@sanjoseca.gov.

The San Jose Water Pollution Control Plant is an important facility.  Although many people may not realize it, the plant is an important part of San Jose government. We would quickly forget about any other city issues we discuss on this blog if in the future we were told we could not flush our toilets.

I support investing in the infrastructure so that we can continue to rely on this resource. Water will continue to be a scarce resource locally and globally; therefore, San Jose should take advantage of this unique opportunity to be in the driver’s seat with a leading-edge Water Pollution Control Plant by making capital investments today.

I encourage you to stop and have lunch in Alviso (before or after the tour) and enjoy your own “Bay Area Backroads” experience.

Filed Under: City Hall Diary

Twelve Dollars or $450,000?

May 26, 2008 By Pierluigi

Last week, the council spent 90 minutes deliberating the sale of a 0.19 acre parcel of surplus downtown property for $450,000. The current tenants, the Arab American Community Center and the Indochinese Refugee Center, are nonprofits who pay $12 a year in rent (month to month) on an expired lease. They were notified in January 2006 about the city’s plans to sell the property.

The city is selling the property “as-is” and the new buyer is paying for all closing costs. The buyer offered $85 per square foot, even though surrounding parcels are appraised at $70 per square foot, and has even offered to give the nonprofits $20,000 each to help with moving expenses.

During December 2007, when the outreach for the 2008-2009 budget started, the city polled San Jose residents and asked them a variety of questions regarding the budget. The top response from those polled was that residents wanted the city to maximize its assets, such as selling surplus land.

The math seems pretty simple to me regarding this parcel: $450,000 vs. $12. Perhaps my calculator is not working correctly, but I think $450,000 will go much farther in keeping city employees employed and providing some street maintenance than the current $12 can.

When the issue of selling surplus property first came to the council late last year, I had concerns. I wanted to make sure that we did not sell land that the city might need in the future for a firehouse or park. I also wanted to make sure that we were getting fair market value. In the end, the council voted to sell the land and the new owner has even offered to allow the nonprofits to stay until the end of they year.

The council spent a lot of time questioning if the city was being fair to the nonprofits. My answer to that is: YES, we have been very fair. Allowing nonprofits to have building space for $12 a year is very fair indeed.

However, while on the dais, I couldn’t help but think about all the other deserving nonprofits. Should the council favor certain ethnic nonprofits over ones that help troubled youth and/or seniors?  Do the residents of San Jose (those folks the city council represents) want the council to provide land at well below market value to nonprofits? Or, do the residents want to make sure the city is paid fair value for land it sells? Should the council “fill up” the Old City Hall with nonprofits and never maximize the value of the land?

Perhaps the City of San Jose should place the Old City Hall, Hayes Mansion, Rancho del Pueblo and Los Lagos golf courses on the ballot for November 2008 as an “advisory vote” which would allow ALL voters in San Jose, not just special interest groups, to provide direction for the council regarding real estate matters.

Filed Under: City Hall Diary

Pandora’s Box Was Opened Last Week

May 19, 2008 By Pierluigi

In a prior blog I wrote about the “mystery” of closed session meetings. These meetings occur every Tuesday morning and cover real estate, litigation and labor negotiations. In addition, everything covered at the meetings is confidential. Last week, the city council voted to release a revision of a closed session memo for public distribution called “Confidential Legal Advice Related to Imposition of Appropriate Conditions in Land Use Approval.” This memo was released on May 16 so it could be shared with the general public and the development community.

The issue at hand is whether or not individual council members may ask for neighborhood amenities (like architecture, trees and parking for examples) when residential developments are being approved, so they may fit better into the existing community. The problem is that items the community asks for may not be required by existing city rules; therefore, those requests may not be allowed.

The release of this memo got me thinking of other things that should be released from closed sessions.  Why stop at a memo about land use when our largest financial decisions do not see the light of day?

For example, labor negotiations are a long arduous process. In the past, the city and the unions have both pointed fingers at each other.  Perhaps if these meetings were discussed in public, then there would be no finger pointing.  In the era of sunshine, maybe we should consider making these meetings public, as is done in other parts of the country.  It would be interesting to know, for example, the full dollar amounts of costs on proposals from each side through each stage of the negotiation, prior to final agreement.

If the city was being unfair, then everyone would know. If labor was asking too much, or they had good points about cost-of-living adjustments, then we would know.  With the bankruptcy of our neighbor, Vallejo, it seems like we should shine more light on collective bargaining, or, at least, the city should provide some type of summary of the negotiations to the public at an earlier time. If allowing the public to view the negotiations in real time would harm privacy, then, perhaps, the negotiations should be taped on video and shown after the agreement has been reached.  The negotiations could be viewable on the internet or channel 26.  That way, the public would at least get to see what took place.

In the end, we on the council vote on compensation and benefit increases. However, we as a council will be long gone when the aggregate effect of past votes impacts the budget and neighborhood services. If decisions are made behind closed doors without public scrutiny, then it is easier to make unrealistic financial choices.

Making negotiations public will not take anything away from workers or make negotiations a game of “winners” and “losers.”  People need to be paid a good wage with good benefits, that’s for sure. However, these decisions are nearly 70 percent of the budget and I think that public awareness is important.

So, in my opinion, if we can release a closed session memo on land use, we should certainly consider allowing more sunshine into collective bargaining that is currently done behind closed doors.

What are your thoughts? Constructive suggestions are welcome.

Filed Under: City Hall Diary

Walk the Walk

May 12, 2008 By Pierluigi

A few weeks ago, I wrote about my biggest regret as an elected official: my support last year of the unanimous vote that converted commercial property to residential on Lincoln Ave—820 units to be exact.  Going forward, I will vote on what is best for San Jose and our future.

Last week I was put to the test. A project was before the council requesting the conversion of a prime seven-acre commercial parcel next to Santana Row to residential. Was I going to stand true to my genuine principle that converting tax-generating land is bad, or was I going to pick apart all the “exceptions” to the rule and cave in?

Santana Row generates over $2.2 million in sales tax each year.  Two million is not a number to dismiss, especially when we are suffering through budget deficits and nearby cities are filing bankruptcy. This prime seven-acre parcel has great potential for office space right next to Santana Row.  It is a prime piece of commercial real estate and clearly more centrally located then the Evergreen industrial land that was highlighted in 2007.

The employment land framework was unanimously passed by the city council in October 2007. The goal was to stop conversion of land that generates jobs/taxes for the city. On the dais I spoke of the lost opportunities of not having land available for jobs, and the loss of a revenue opportunity for the city, (sales tax, utility tax, 911 fees, etc). The city has already converted hundreds of acres of employment land. Conversion of these parcels creates two problems: the loss of commercial land and the strains on neighborhood services which end up costing the city more money.

Unfortunately, some property owners will choose to neglect their property in hopes of convincing the council that a commercial use is outdated.  This excuse will not work for me.  If commercial owners can’t take care of their property, then the city should use code enforcement resources to cite and remove blight.

The real estate agent for this parcel spoke at the meeting and said that he “only had two offers for the office use.”  Two sounds good to me. Don’t you only need one? Or, since the parcel is seven acres, perhaps the two interested parties could share?

Unfortunately (as I have seen many times before), the public speakers that night, including nearby residents, spoke in favor of the conversion. In fact, none of the activists who say they are against the conversion of land neither showed up to the meeting that night nor sent any written correspondence against this conversion.

Professional developers and knowledgeable lobbyists showcase some of the best salesmanship I have ever seen, using terms like “LEED certified” and “extraordinary benefit.”  However, I still stand by my belief that good housing projects need to be built on land that is already zoned for residential.

I made the motion to deny the applicants request of converting the land which passed. The developer is probably going to blame the city, the process and me, saying that we were, and are, not consistent. However, the only “inconsistency” would have been if we converted the land. The land has always been commercial; conversion would have been an inconsistent use of the land.  Because of the Reed Reforms, the next time conversion of land will come before the council will be in the spring of 2009, instead of every 3 months.

Over and over and over again, I hear from developers and lobbyists that vacant commercial buildings are of no use and we should convert the land the building stands on to housing.  With that said, should we then convert the empty Sobrato building downtown to housing? It is vacant, after all.

Filed Under: City Hall Diary

Socializing Under the Stars

May 5, 2008 By Pierluigi

In a prior column, I wrote about taking advantage of the great San Jose weather by having events at City Hall Plaza or at the Circle of Palms. At last week’s city council meeting, there was an item that pertained to sidewalk cafes at night. I support outside settings and made a motion at the meeting proposing to extend hours at sidewalk cafes until 2 a.m. A majority of the council supported the motion.

My background and observations of downtown led me to propose the extension. I graduated from SJSU and lived downtown for ten years. I worked in the restaurant industry as a waiter and bartender for 20 years. I worked nights at restaurants even though I had a full time job during the day after college.

Since being on the council, I have attended many meetings on downtown nightlife chaired by my council colleagues Liccardo and Williams. In addition, I spent many evenings observing downtown on foot—many times with police, and alone at other times, mixing in with the crowds (picture “Where’s Waldo?”).

I believe most of the problems downtown are not caused by patrons, but, rather, people who do not spend money in our establishments and linger around on the streets. They might be kids who should be at home out tagging property, or drug dealers who hang out at fast food restaurants. Every major city has this element, and until we have caning for graffiti or public hanging for drug dealing, it will always be around. Downtown also continues to get negative PR on days like Cinco de Mayo and Fat Tuesday, mostly because of troublemakers from out of town.

I believe sidewalk cafes, with certain restrictions, will work well and enliven the downtown. Having a partitioned area with people just standing around leads to a big fraternity party. However, having tables and chairs that restrict customers to being seated will provide a spacious and relaxed environment. I am sure bar owners would like to allow more people out on the sidewalk area, but that will not be allowed. And if owners do not follow the rules, the police will have justification to remove the privilege of the sidewalk café.

In addition, limiting the number of people outside reduces noise. Requiring food service is also a good rule. I have been to countless sidewalk cafes locally, nationally and internationally where ordering food is mandatory, and then you have the choice of “hanging out” after eating.

The police will still retain the right to close down problem venues. Having a sidewalk café is a privilege and not a right. Give the proprietors a chance. If customers violate the law by passing a drink to someone out on the sidewalk or to a minor, then they should be punished accordingly. Restaurant occupancy does not change with the sidewalk café. I believe police walking the downtown beat will have an easier time observing behavior outside on the sidewalk instead of having to enter an establishment.

This is a small but important change for a city of 989,000. Please look out for and patronize sidewalk cafes this summer.

Filed Under: Uncategorized

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Merc News condemns Unions

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