County of Santa ClaraCalifornia

A N N U A L R E P O R T

2 0 0 5County of Santa ClaraCounty Government Center70 West Hedding StreetSan Jose, California 95110www.sccgov.org

M I S S I O N S T A T E M E N T

The mission of the County of Santa Clara

is to build and maintain a healthy and

safe community for our residents

C O R E V AL U E S

The County of Santa Clara values...

Ethical conduct

Honesty and integrity

Respect for the individual

Fiscal responsibility

A good work ethic that demonstrates individual

responsibility, accountability and productivity

Commitment to public service, diversity and cultural awareness

Table of Contents

MESSAGE FROMTHE BOARD OF SUPERVISORS

MESSAGE FROMTHE COUNTY EXECUTIVE

COUNTY OF SANTA CLARAORGANIZATION

County Organization ChartPolicy Committees

COUNTY OUTLOOKAbout Santa Clara CountySanta Clara County At-A-GlanceEconomic GrowthAssessment RollCounty RevenuesCounty ReservesCredit Rating

CHILDREN, FAMILIES AND SENIORSSocial ServicesChild Suport Services

HEALTH AND HOSPITAL SYSTEMUnexpected Closure of San Jose Medical CenterCommunity Health IssuesInnovative Plan to Meet Mental Health NeedsImproving Medical Care for Stroke VictimsPromoting a Healthy Community

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HOUSING, LAND USE,ENVIRONMENT ANDTRANSPORTATION

Affordable HousingLand Use PoliciesHabitat ConservationGreen BusinessesCounty ParksFighting West Nile VirusCounty Roads and AirportsMeasure B Transportation Program

PUBLIC SAFETY AND JUSTICEFire DepartmentJuvenile Detention ReformJames Ranch Security IssuesAdult Probation Reaches Out to the CommunityPreparing for New ThreatsProtecting the CommunitySenior Homeowners Protected from FraudDNA Database Aids Law Enforcement

FINANCE AND GOVERNMENTCounty Workforce ChallengesEnhanced Access to Agenda OnlineUser Friendly E-governmentTop-ranked County Library SystemElectronic Voting a SuccessUpgrading County 9-1-1 ResourcesEnergy SavingsIndependent Management Audit DivisionCapital Improvements Program

FINANCIAL HIGHLIGHTS

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Donald F. GageDistrict 1

Blanca AlvaradoDistrict 2

Pete McHughDistrict 3

James T. Beall, Jr.District 4

Liz KnissDistrict 5

The County of Santa Clara Board of Supervisors began the year with a daunting task of balancing the County’s budget while facing shrinking resources and financial uncer-tainty at both the state and federal levels. However, we bit the bullet and made a number oftough decisions. At the end of the day, we approved a budget that not only includes costsaving strategies, but it also is a budget that reflects our values and priorities. It preserves thesafety net services for our community.

Counties are in the unique position of often being the service provider of last resort. Formany in our communities, we represent the lifeline that keeps a family together, or providesa safe place for children who otherwise would go hungry, abused or neglected. We providemedical services to those who are turned down elsewhere - an important task in protectingthe health of the overall community. We maintain public safety and steward the environ-ment - services that benefit the community as a whole.

We take our fiduciary responsibilities very seriously and aremindful of the legacy that we will leave our community andfuture generations who will reside in or visit Santa ClaraCounty. Nearly sixty percent of the County’s General Fundrevenue comes from the state and federal governments.Throughout the year, we have worked with our counterpartsand legislative representatives on state and national issuesthat affect county funding. We fought against the Medicaidwaiver and federal Medicaid cuts and supported the creationof a bipartisan commission to propose systematic Medicaidreforms. We spearheaded the creation of a Bay Area CountiesCaucus to work together on regional issues.

The County is a large and complex organization essential to the fabric of a healthy, vibrantcommunity. We are encouraged by the results of a recent survey of county voters, whichrevealed concern about the continuing budget cuts and broad support for County services,such as health care, emergency services, and programs for abused and neglected children.These are just a few areas of service the County provides.

The year has been filled with challenges, an absolute commitment to the residents weserve, and a number of noteworthy accomplishments. Thank you for the opportunity toshare the highlights of the County of Santa Clara’s service to the public.

Message from theBoard of Supervisors

County Districts

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Message from theCounty Executive

Peter Kutras, Jr.County Executive

During the peak of the recent recession, the County of Santa Clara was in better financial shape than many other counties in the state because the Board of Supervi-sors had the foresight to set aside reserves for “economic uncertainty.” However, becausewe have experienced the longest sustained recession in our county’s history, it still has beennecessary to make drastic budget cuts. During the past three years, the County has imple-mented expenditure reductions and revenue sources totaling $640 million. We’ve reducedthe budget by eliminating vacant positions, freezing hiring, offering early retirement toeligible employees and reducing services.

While these actions were substantial, they are not enough to correct the ongoing structuralimbalance in the county’s budget. Simply stated, a structural budget deficit means that thecurrent methods used to finance county government are inadequate to cover the cost tomaintain the current level of services.

When the local economy is strong, the county reaps the benefit of more tax revenue tosupport programs and services. When the economy is weak, the demand for county safetynet services is greater – at the same time that revenue shrinks.

Despite these challenges, our focus continues to be finding effective and creative ways todeliver much-needed services to county residents.

Chances are that on any given day, you or someone you know use or benefit from Countyprograms, services, or amenities. Whether it is County activities to control the spread ofcommunicable disease, keep our communities safe from crime, provide health insurancefor uninsured children and medical services regardless of patient insurance status, maintaincounty parks, roads and expressways, or protect seniors from abuse – all of these serviceshelp to make our communities great places to live.

The challenge ahead is to find a way to continue to finance these vital County services. Weare confident that with the Board’s continued leadership and collaboration with communityresidents, we will be able to find sustainable solutions.

On behalf of the dedicated employees of the County and our community partners, it isindeed a pleasure to present our 2005 Annual Report.

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County of Santa ClaraOrganization

CountyExecutive

Chief DeputyCounty Executive

DeputyCounty Executive

DeputyCounty Executive

DeputyCounty Executive

B O A R D O F S U P E R V I S O R S

District 1 District 2 District 3 District 4 District 5

Agriculture andEnvironmentalManagement

Assessor CountyCommunications

Clerkof the Board

CountyCounsel

CountyLibrary

Department ofCorrection

Department ofChild Support

Services

DistrictAttorney

Employee ServicesAgency

FinanceAgency

Facilities/FleetDepartment

FireDistricts

InformationServices

Probation

Parks andRecreation

Medical Examiner/Coroner

PretrialServices

ElectedSheriff

PublicDefender

Santa Clara ValleyHealth and Hospital

System

Roads andAirports

Registrarof Voters

Social ServicesAgency

ProcurementPlanning andDevelopment

Board of SupervisorsAppointment

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B O A R D O F S U P E R V I S O R SP O L I C Y C O M M I T T E E S

C O U N T Y O F S A N T A C L A R A

Finance andGovernment

Special Programsand Reserves

Clerk ofthe Board

Office of theCounty Executive

Registrarof Voters

Measure BTransportation

Program

InformationServices

CountyCounsel

Assessor

CountyLibrary

Facilities/FleetDepartment

CountyCommunications

Procurement

EmployeeServices Agency

FinanceAgency

Public Safetyand Justice

Office of theDistrict Attorney

PublicDefender

PretrialServices

Office ofthe Sheriff

Department ofCorrection

Probation

Medical ExaminerCoroner

CriminalJustice

Children, Seniorsand Families

Employment andBenefit Services

Familyand

Children’sServices

Aging and AdultServices

Social ServicesAgency Office

Child SupportServices

Health andHospital System

SB 12/SB 855Payments

Public Health

Mental Health

Children’s Shelterand

Custody HealthServices

Alcohol andDrug Services

CommunityOutreach Services

Children’s HealthInitiative

Prop 99Non-CountyHospital and

Physician Funds

ValleyHealth Plan

Santa Clara ValleyMedical Center

Housing, Land Use,Environment andTransportation

Planning andDevelopment

Agriculture andEnvironmentalManagement

EnvironmentalHealth

Vector ControlDistrict

Parks andRecreation

Roads

Airports

Santa ClaraCounty

Fire District

Los Altos CountyFire District

S. Santa ClaraCounty

Fire District

SaratogaFire District

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County Outlook

ABOUTSANTA CLARA COUNTY

Santa Clara County was named after Mission Santa Clara, which wasestablished in 1777 in honor of SaintClara of Assisi, Italy. Clara means“clear” or “bright,” an appropriatename for an area with magnificentnatural amenities and one of thehighest standards of living in thecountry. Also referred to as “SiliconValley,” the county has long beenconsidered one of the best areas inthe United States to live and work.

Santa Clara County is located at thesouthern end of the San Francisco Bay.The fertile Santa Clara Valley runs theentire length of the county from northto south, ringed by the rolling hills ofthe Diablo Range on the east, and theSanta Cruz Mountains on the west.

Today, the county is a major employ-ment center for the region, providingmore than a quarter of all jobs in theBay Area. It has one of the highestmedian family incomes in the nation,and a wide diversity of cultures,backgrounds and talents. Santa ClaraCounty continues to attract peoplefrom all over the world.

The county’s population of approxi-mately 1.7 million is the fifth largest inCalifornia, and the largest of the nineBay Area counties. There are 15 citiesin the county including Campbell,Cupertino, Gilroy, Los Altos, Los AltosHills, Los Gatos, Milpitas, MonteSereno, Morgan Hill, Mountain View,Palo Alto, San José, Santa Clara,Saratoga and Sunnyvale. Each of thecities has its distinctive character. SanJosé is the largest city in the County,with a population of nearly 944,000,and is the administrative site of CountyGovernment. A significant portion ofthe county’s 1,315 square miles isunincorporated ranch and farmland.Nearly 92 percent of the populationlives in cities.

Santa Clara County has a culture richin history, ethnic diversity - over 100languages and dialects spoken - artisticendeavors, sports venues and academicinstitutions.

In sports and recreation, San José ishome to teams for minor leaguebaseball and the San José Sharks, theonly professional ice hockey team inNorthern California. Numerous publicand private golf courses are locatedthroughout the County.

For education, the County is home tothree major universities - San José StateUniversity, Santa Clara University andStanford University - as well as excel-lent community colleges.

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SANTA CLARA COUNTYAT-A-GLANCE

County of Santa Clara –established by Charter 18502006 Budget - Total $3.6 billion,General Fund $2.1 billionFull Time Equivalent Positions – 15,031

Population*Total in County 1,759,585Living within 15 cities 1,661,112Living in unincorporated areas 98,473Largest city (San Jose) 944,857Smallest city (Monte Sereno) 3,505

Racial and Ethnic Background**White (Non Hispanic nor Latino) 44.2%Hispanic or Latino of any race 24.0%Asian 25.6%Black or African American 2.8%American Indian/Alaska Native 0.7%Native Hawaiian/ Other Pacific Islander 0.3%Some other race 12.1%Two or more races 4.7%

Registered Voters***As of September 2005 768,567

ECONOMIC GROWTH

Santa Clara County is the largest member of the Silicon Valleyeconomic region - a world leader indevelopment of new technologiesand industries. During the last threedecades, the Silicon Valley’s economyhas transitioned from being sustainedfirst by agriculture, next by manufactur-ing, then by services, followed by high

Sources* 2005 Population and Housing Estimatesfor Santa Clara County, SCC Planning Office** 2000 Census*** County Registrar of Voters

technology, and finally launching intoan economy of high-productivity andcutting-edge innovation. During thisperiod, the Valley’s economy has movedfrom employing brown- to blue- towhite- to gold-collared workers. Theregion’s major industry clusters are soft-ware, hardware, innovation services,biomedical, and electronic components.

Recent economic indicators show thatafter three years of economic downturn,the Valley’s economy is beginning toshow signs of a moderate economicrecovery. Unemployment is steadilydeclining, though it’s still higher thanthe statewide average. The level ofentrepreneurship and investments inthe innovation sector has increased.The number of fast-growth companiesand the number of patents generated inthe Valley grew for the first time in fiveyears. Productivity of the region’sworkforce rose to 2.5 times the nationalaverage. Taxable sales have startedshowing signs of positive growth, butthe County’s share of the statewidetaxable sales pool still continues toshrink, as its recovery rate is slowerthan the other major clusters of eco-nomic activity in the state.

The momentum of the economy fuelsthe County’s significant revenue sourceswhich are comprised primarily of taxes,payments from state and federal govern-ments and charges for services.

Vasona Lake County Park

City of Morgan Hill

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County Outlook

ASSESSMENT ROLL

The assessed value of property in Santa Clara County increased by$17.76 billion over last year. Themajority of the increase in the County’sassessment roll is attributed to anincrease in both new constructionand the number of residential proper-ties that have changed ownership. Incontrast, the value of commercial andindustrial properties, while stabilizing,has been relatively flat. The totalassessed value, net of institutionalexemptions (e.g., church and welfare),was $240.14 billion.

The assessment roll is the basis forproperty taxes. Property taxes, in turn,provide an essential source of revenue

to support basic public services pro-vided by schools and local govern-ments. These public institutions formthe foundation of our region’s qualityof life.

Driven by low interest rates, attractivemortgages and a recovering localeconomy, assessment increases wererecorded in all residential propertiesincluding single-family homes, condo-miniums, and multi-family apartments.At the same time, commercial proper-ties, including shopping centers,industrial properties, and research anddevelopment campuses have stabilizedfor the first time in three years. Theoffice building market, however,continues to languish.

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1996 1997 1998 1999 2000 2001 2002 2003

$260,000,000,000

$240,000,000,000

$220,000,000,000

$200,000,000,000

$160,000,000,000

$140,000,000,000

$120,000,000,000 2004 2005

Ten Year Assessment Roll Summary

$180,000,000,000

COUNTY REVENUES

The County’s largest discretionary revenue source, secured propertytaxes, grew 8.3 percent in fiscal year2005. This tax source is projected togrow 9.0 percent in fiscal year 2006and is projected to grow at a reducedrate of approximately 8.5 percent infuture years. Other economic drivenrevenue accounts grew moderately.

State budget reductions continue tonegatively impact county programsin fiscal year 2005-06.

COUNTY RESERVES

The uncertainty of the impacts of the State budget deliberations andthe Governor’s proposed initiativescontinues to cause concerns aboutfuture funding for County services.County officials have to balance theseissues when addressing the needs ofresidents. To prepare for these uncer-tainties, the County has set aside $76.6million in reserves—$72.2 million incontingency reserves and $4.4 millionin reserves for economic uncertaintyfor fiscal year 2006.

The Office of the Assessor was

recognized by the California

Association of Counties for

the Electronic Filing of

Business Property Statements

through a statewide system

that has saved companies

thousands of dollars in

printing and postage costs

The Government Finance

Officers Association awarded

a Certificate of Achievement

for Excellence in Financial

Reporting to the County for

its Comprehensive Annual

Financial Report for the fiscal

year ended June 30, 2004

This was the sixth consecutive

year the County has achieved

this prestigious awardHow Your Tax Dollars

are Spent

K-12 Public Schools - 51%

County - 17%

Cities - 12%

Redevelopment Agencies - 9%

Community Colleges - 6%

Special Districts - 5%

CREDIT RATING

For its outstanding revenue bonds and certificates of participation,the County has maintained an AArating from the Standard & Poors (S&P),and an Aa3 rating from the Moody’sInvestors Service. S&P has also main-tained the County’s general obligationbond rating to AA+. This combinationof S&P ratings is the highest rating anylarge California County has everachieved since Proposition 13 waspassed in 1978. The County’s TRANSratings are SP-1+ from Standard &Poors and MIG 1 from Moody’s. Eachrating is the highest awarded for short-term notes.

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Children, Families and Seniors

SOCIAL SERVICES

In 2005, the Social Services Agency(SSA) accomplished a major computer

conversion. CalWIN, the CalWORKsInformation Network, replaces the priorinformation systems that automateeligibility determinations, managementreporting, and some case managementfunctions for the CalWORKs, FoodStamps, Medi-Cal, General Assistanceand Foster Care programs. It is antici-pated that this conversion process willcontinue to require a substantial amountof staff time and resources in 2006, asemployees clean up discrepant casedata and become familiar with the newsystem’s functionality.

Employment and BenefitsDespite the continued sluggish econ-omy, the CalWORKs EmploymentServices program increased job place-ments by 9% compared to the previousyear, and the overall average wage atplacement increased 10%, with startingpay averaging $10.35 per hour.CalWORKs Employment Services willcontinue efforts to enhance education,employment, and training opportunitiesfor clients, as well as provide supportservices, such as transportation andchild care, in 2006.

SSA pursued over a million dollars ingrants from various foundations andagencies in 2005. The Agency contin-ued to seek funding for the countywideSafely Surrendered Baby public educa-tion campaign and was recentlyawarded funding from the LucilePackard Foundation to produce a

training video for junior and seniorhigh school students. The CaliforniaDepartment of Social Services recentlyawarded the Agency a grant for nearly$1 million to establish support servicesfor relative caregivers. Grant fundingalso has been received to supportservices for foster youth as they ap-proach the age of emancipation.Support includes innovative programsproviding transitional affordablehousing, education/employmentassistance, and assistance findingpermanent caring adults to support theyouth as they become independent.

Child WelfareIn child welfare, the County continuesto make noticeable progress in reduc-ing the number of children removedfrom their homes, and increasing thenumber of children that can be safelysupported in their home or in the homeof a relative caregiver. Removals havedeclined by almost 15% over the pastfive years, down from 1,066 in 2001to 909 in 2005. Now approximately45% of children who are removed areplaced with relative caregivers. A newFamily Finding Unit was establishedby the Department of Family andChildren’s Services (DFCS) to locatefamily members who can provide fosterchildren with emotional support, aswell as potentially act as a caregiverwhile the child is a court dependent.

The objectives of the DFCS includereducing the overrepresentation ofchildren of color upon first entry intofoster care, increasing timely responseto reports of child abuse and neglect,increasing timely contacts with child-

10

The Social Services Agency

met the Medi-Cal Performance

Standards and Food Stamp

Error Rate targets, and was

recognized by the USDA for

program integrity

The Department of Aging

and Adult Services received

the National Adult Protective

Services Association President’s

Award for its work to protect

elders from abuse

ren receiving services, reducing thenumber of foster care placements forchildren, and reducing the incidenceof children reentering foster care. Thedepartment is using team decisionmaking, parent orientation classesand family conferencing as tools toachieve these objectives.

Expansion of the SSA joint responsewith law enforcement has helped toreduce the number of children cominginto protective services. In 2005,Enhanced Joint Response (EJR) bylaw enforcement officers and socialworkers to reports of serious abuse andneglect was fully operationalized in thecities of San Jose and Santa Clara, thelocations of more than 75% of thesereports. Countywide implementation isa foreseeable accomplishment in 2006.

Two new pilot programs at theChildren’s Shelter have been success-ful in helping foster children learnnew skills in communication andresiliency, as well as ensuring thatthey receive necessary mental healthreferrals and treatment.

Protecting SeniorsThe Department of Aging and AdultServices (DAAS) continues to focus oneducation and prevention of elderfinancial abuse - one of the biggestissues facing older adults in Santa ClaraCounty. DAAS actively supportedsuccessful efforts to enact legislation inCalifornia making Financial Institutionsmandated reporters of elder/dependentadult financial abuse. Employees infinancial institutions, such as banks and

credit unions, must now report in-stances of suspected financial abuseto either law enforcement or the AdultProtective Services program for furtherinvestigation.

The Department reached out to thou-sands of older adults through the SeniorForum, sharing information on avoidingfinancial scams, as well as the 14thAnnual Adult Services Resource Fairfeaturing a variety of workshops andhealth screenings.

CHILD SUPPORT SERVICES

Although the Department of ChildSupport Services has experienced

its third year of staff reductions andincreased operation costs, it has im-proved performance in a number offederal performance measures. Childsupport collections are up 2.5 % andsupport orders have been establishedin over 80% of the Department’s cases,a marked improvement over theprevious year.

One more year of flat-line budget allo-cations is seen as a best-case scenarioas the State struggles to adopt a newallocation methodology. Looming onthe horizon is the potential for reduc-tions in federal financial participationin the child support program.

11

Health and Hospital System

UNEXPECTED CLOSUREOF SAN JOSEMEDICAL CENTER

The community was stunned in late2004, when San Jose Medical

Center announced it would close itsdoors in early 2005, a full two yearsearlier than originally planned. Theannouncement provided 90-daysnotice, little warning and little opportu-nity to prepare. The closure shiftedmany of the costs of medical care fromprivate to public dollars as the Countyhad the immediate responsibility toprovide or arrange medical services formany of the nearly 35,000 emergencyroom patients and 1,900 traumapatients previously served at hospital.

Study Examines ImpactsA study commissioned by the Countyand City of San Jose looked at theimpact of the closure on serious traumacases because San Jose Medical Centerwas one of three designated traumacenters in Santa Clara County. Itsclosure put a greater demand on theremaining two trauma centers atSanta Clara Valley Medical Centerand Stanford Hospital.

The County developed contingencyplans to meet patient needs associatedwith the closure. Valley Medical Centerreorganized its trauma, emergency, andurgent care processes to accommodatethe abrupt closure, and has experienceddouble its normal trauma volume and asurging increase of 10,000 visits to theEmergency Department.

The County allocated additional fund-ing to the hospital to ensure access toquality health care for the community.

12

Santa Clara Valley Medical

Center earned an honorable

mention by the California

Association of Public Hospitals

for reducing emergency depart-

ment utilization by patients and

improving patient flow

COMMUNITYHEALTH ISSUES

The County monitors the community for emerging public health issuesthat could impact the daily lives ofpeople in Santa Clara County. A seriesof public health issues occurred duringthe past year, affecting the communityand necessitating a public healthresponse from the County.

The continuing threat of West NileVirus required the Public HealthDepartment to partner with VectorControl to intensify its educationcampaign for residents and to imple-ment ground fogging for adultmosquitoes.

A severe shortage of the flu vaccineworldwide necessitated the County,in conjunction with the State ofCalifornia, to declare a local emer-gency due to the limited supply of theinfluenza vaccine for the 2004-2005influenza season. Healthcare providersin Santa Clara County were ordered tolimit flu vaccine shots to high-riskindividuals and to not immunizehealthy individuals.

Working in cooperation with themedical community, the Countydiscovered and identified Mycobacte-rium fortuitum furunculosis, a bacterialinfection that people were contractingafter having pedicures at nail salons.The County brought it to the attentionof the State which then conducted afull investigation.

13

Health and Hospital System

INNOVATIVE PLANTO MEETMENTAL HEALTH NEEDS

In late 2004, California voters passed Proposition 63, the Mental HealthServices Act (MHSA), to address thesevere mental health needs of under-served populations in Santa ClaraCounty. The MHSA calls for a systemof accessible, effective community-based services designed to reach thetarget population and reduce thestigma associated with mental illness.

Prop. 63 is expected to generate$700 million in revenue statewideduring its first year, and Santa ClaraCounty is expected to receive approxi-mately $13.4 million annually for thenext three years. To ensure that theseresources will be allocated where theyare most needed, the County’s MentalHealth Department collaborated forthe past year with community stake-holders and residents, using a processwhich will likely become a model forthe state.

The result is an innovative, comprehen-sive three-year mental health servicesplan. The plan identifies mental healthneeds and will seek to address dispari-ties in services to various segments ofthe population. Those populationsinclude the underserved Latino, Asianand American Indians among all ages;Latino, African American and AmericanIndian overrepresented in the criminaljustice system, or who lack housing orare in foster care; refugee, immigrantand monolingual communities; Les-bian, Gay, Bisexual, Transgender(LGBT) community; and the develop-mentally disabled. All of the groupshave greater needs and are less servedin the current system.

The County studied and evaluated theneeds of underserved populations inthe community, and learned that thosesuffering from mental health disordersare people of all ages and ethnicities,with one common factor — poverty.

The absence of resources both contrib-utes to and makes it difficult for them toattend to mental health concerns. Themost frequently noted concerns acrossall age groups are: trouble with the law,incarceration; concurrent substanceabuse; abuse, neglect, violence,trauma; sadness, depression, loneliness,isolation; poverty, homelessness,inadequate housing; failing school andjobs, meaningless activities; concurrentmedical problems; institutionalization,hospitalization; and problems withfamilies and peers.

The goal is to transform the currentmental health delivery system in thecounty into a state-of-the-art, commu-nity-based, consumer and familydriven, and recovery-oriented healthcare system for each resident in needof such services. The plan must nowbe approved by the State of CaliforniaDepartment of Mental Health.

IMPROVING MEDICALCARE FOR STROKEVICTIMS

Stroke is the third leading causeof death in the United States and

a significant cause of disability. Medi-cal evidence has shown that quickidentification and treatment cansignificantly reduce the mortalityand morbidity of stroke.

14

Above: RehabilitationCenter at Santa ClaraValley Medical Center

Left: The BinationalHealth Week kick-offcelebration included ablessing by DanzaAzteca Mictlan

The Joint Commission on Accreditationfor Healthcare Organizations (JCAHO)provides national certification forhospitals that adhere to specificguidelines for stroke care. Four hospi-tals in the County are currently certifiedincluding Good Samaritan Hospital,Kaiser Permanente Santa Clara, KaiserPermanente Santa Teresa, and StanfordUniversity Medical Center.

Santa Clara Valley Medical Center hasreceived preliminary designation as aStroke Center and is awaiting finalapproval from JCAHO.

This past year, the County adopted anapproach to improving the identifica-tion, transport and treatment of strokevictims. The County endorsed PrimaryStroke Centers as hospitals of choice;and initiated a policy that wouldredirect ambulances to Primary StrokeCare hospitals in Santa Clara County.

PROMOTING AHEALTHY COMMUNITY

Mexican immigrants use fewer key preventive health services thanU.S.-born Mexican Americans andnon-Hispanic whites. The immigrantdisadvantage is due, in large part, tomany having no regular source of care,no health insurance coverage, orneither, according to the California-Mexico Health Initiative from UCLACenter For Health Policy Research.

Binational Health WeekConnecting migrant/immigrant farmworkers with appropriate healthcareservices was a high priority in 2005.The County partnered with the Mexi-can Consulate in San Jose, to launchthe first local Binational Health Week(BHW), a series of health promotion

and education activities aimed athealth prevention for Mexican-originand other Latino migrant/immigrantworkers and their families. BinationalHealth Week activities focused oncervical and breast cancer screening,STDs/HIV, immunizations, diabetes,nutrition and exercise, health insurancecoverage, and work-related injuries.

Latinos represent about 24% of thepopulation of Santa Clara County.Mexican immigrants represent 23million nationwide, of which 50%lack health insurance. Nationwide,Mexican immigrants represent 95%of agricultural workers and 65% ofconstruction workers.

15

16

AFFORDABLE HOUSING

The need for affordable housingcontinues to be a challenge for

many areas in California. The Officeof Affordable Housing was created inJuly 2003. A special fund of $18.6million was established to leverageaffordable housing projects. In 2005,the County distributed $8 million ofthose funds to assist in the develop-ment of affordable housing, bringingthe total contribution for the last twoyears to $14.5 million. This year’sfunds helped to create 425 newhousing units for low income individu-als, families, and seniors, bringing thetotal to 1,000 new housing units and400 new shelter beds for the homeless.

The first ever point-in-time HomelessCensus and Survey identified 7,100homeless individuals, or 20,000annually. The County has adoptedKeys to Housing: A 10-Year Plan to

Housing, Land Use,Environment, and Transportation

End Homelessness in Santa ClaraCounty. The task ahead is to work withcities, the business community, andhomeless services agencies to move thechronic homeless, or street homeless,into decent permanent housing withsupportive services within 10 years.

Thirty percent of the proceeds fromthe sale of any General Fund real estateasset will be allocated to supportaffordable housing initiatives.

Construction is underway on theCorde Terra Family Housing Commu-nity, the latest activity in the County’smaster plan to revitalize the SantaClara County Fairgrounds. CordeTerra Family Housing Communitywill be comprised of 343 housingunits including 300 affordable familyapartments and 43 single-familyhomes. This project, which is thefirst phase of the Corde Terra develop-ment, is expected to be ready foroccupancy in April 2007.

Corde Terra Family Housing Community

17

LAND USE POLICIES

Land Use Policies were prominent throughout the year. At the locallevel, issues pertaining to the adminis-tration of the Williamson Act and theincorporation of urban pockets ofunincorporated land dominated publicdiscussion. At the state level, the matterof redevelopment reform and its impacton individuals, organizations andcounties was in the spotlight.

Williamson Act ContractsCounty residents owning unincorpo-rated agricultural land under theWilliamson Act are facing new poli-cies and procedures aimed at bringingland contracts into compliance withthe Land Conservation Act of 1965(Williamson Act). New County policiesthat will affect contracts for 340,307acres of unincorporated land in thecounty have been developed.

The Williamson Act creates an arrange-ment whereby private landownerscontract with counties and cities tovoluntarily restrict land to agriculturaland compatible uses. Landownersunder contract forego the possibilityof converting their property into non-agricultural uses during the term of thecontracts, in return for lower propertytaxes. The local government and stateforego a portion of their property taxrevenue in return for the planning

advantages and values implicit inretaining land in commercial agricul-tural use. The new policy changesaddress issues that resulted from manyfactors including continued subdivisionof contract parcels over the years.

Urban PocketsThe County of Santa Clara Board ofSupervisors adopted a resolution toaddress annexation of pockets ofunincorporated areas in the county.Annexation is not a new issue andhas been a part of the General Planfor more than 30 years. The resolutionadopted by the Board outlines actionsto address issues that may impedecities from taking advantage of a Stateapproved streamlined process to annexcertain unincorporated areas withintheir city boundaries.

Among the benefits of annexation areuniform development standards andthe opportunity for residents to fullyparticipate in city elections. Before anyaction is taken, the Board will notifyresidents and hold public hearings todiscuss annexation.

Redevelopment ReformRedevelopment is a tool availableto cities and counties to remedy“blighted” areas under State statute.A redevelopment agency maycreate one or more project areas whereconditions of blight exist and must

The California Department

of Pesticide Regulation

declared the County of Santa

Clara as the 2005 Integrated

Pest Management Innovator

http://ipm.sccgov.org

18

Housing, Land Use,Environment, and Transportation

adopt a redevelopment plan for eachsuch area that defines how blight willbe eliminated, what redevelopmentwill occur, and how the project willbe financed. The principal methodof financing redevelopment is through“tax increment financing.”

This method of financing establishesthe assessed value of the propertywhen the plan is developed. Theassessed value that year becomes the“base year” for tax purposes. Counties,schools, cities and special districts onlyshare in property taxes on those baseyear values. Any additional propertytaxes that come as a result of theredeveloped property are consideredtax increments and are paid directlyto the redevelopment agency.

Santa Clara County has redevelopmentagencies in 9 of our 15 cities, includingthe State’s largest agency in San Jose.Over the past ten years, these agencieshave diverted over $2 billion inproperty tax revenue from the county,schools, cities and special districts. On

Ceremonial signing of theHabitat Conservation Plan Agreement

average over the last five years, theseredevelopment agencies have receivedmore property tax revenue than theCounty. This inequity is compoundedby the fact that redevelopment agen-cies have no service delivery mandatewhile virtually every service the Countyprovides is a mandated service.

This diversion of property taxes isequivalent to “fiscal eminent domain,”an unfair and unsustainable taking ofproperty taxes needed to deliverservices to residents. This is especiallyalarming, given attempts to extend thelife of redevelopment agencies andliberalize the definition of “blight.”

The County is calling for the StateLegislature to impose a stricter defini-tion of blight, restrictions on the useof eminent domain, and the require-ment for voter approval, state oversight,litigation procedures, more notice toprospective homebuyers, and limitson the spending for City Halls.

This year the County will lead astatewide effort of counties to pushfor redevelopment reform.

HABITAT CONSERVATION

Agreement has been reached among six local agencies to develop aplan for protecting native wildlife andvegetation in most of Santa ClaraCounty’s remaining undeveloped areas,while still allowing appropriate devel-opment to occur. Over the next threeyears, a final Habitat ConservationPlan will be designed to protect nativewildlife, including the California tigersalamander and steelhead trout, rarevegetation found only on serpentinesoils, California live oaks, and wetlandsthroughout Santa Clara County. Theplanning area includes roughly 700

19

Magdalena Avenue Safe

Routes to School Project

was named Project of the

Year by the South Bay Area

Chapter of the American

Public Works Association

square miles. Large tracts of land,from the Santa Clara County/AlamedaCounty border south to the county’sboundary with San Benito County, andfrom the western edge of San Jose eastto the crest of the Diablo Range, maybe included in the plan.

GREEN BUSINESSES

The County promotes environmental conservation through its “GreenBusiness Program.” The programencourages and assists local businessesto identify and implement practices toprevent pollution, protect water quality,conserve water and energy, reducegeneration of waste, and increase recy-cling. Santa Clara County IntegratedWaste Management Division certified16 businesses. The Program’s goal is tomore than triple that number in 2006.

COUNTY PARKS

Rolling hills, lakes, creeks, and miles of hiking, biking and eques-trian trails are among the naturalamenities found in Santa Clara Countyparks. Many parks feature points oflocal historic interest. During the pastyear, the Santa Clara County Parks andRecreation Department opened nearly14 miles of trails at Coyote Lake-Harvey Bear Ranch County Park. Thetrails included a new 4.5-mile sectionof the Bay Area Ridge Trail Network,planned as a part of a 500-mile trailencircling the Bay Area.

The expansive 4,595-acre park alsofeatures a 635-acre lake and camping,picnic, fishing and boat launch oppor-tunities in the scenic Mount HamiltonRange. The County’s Park CharterFund and partnerships with theCalifornia Coastal Conservancy andthe Santa Clara Valley Water Districtfunded the project.

Work is underway with a host of Stateand Federal regulatory agencies on anaction plan to remove mining waste inAlmaden Quicksilver County Park, thelegacy of mercury mining that occurredmore than 100 years ago. The plan isthe culmination of five years of nego-tiations with the United States Fish andWildlife Service to clean up two areasin the park with the goal of protectingthe Guadalupe River watershed andarea wildlife.

Following five years of public discus-sion, the County came to agreementwith Stanford University regarding thenext steps towards completion of threeStanford Trail Alignments, as a condi-tion of the University’s General UsePermit. The agreement is conceptually

Santa Teresa County Park

20 21

Housing, Land Use,Environment, and Transportation

The County contributed more than $20million to create the Guadalupe River Park-one of the largest urban parks in the U.S.

Thousands gathered for the Grand Openingconsistent with the County’s TrailMaster Plan, which represents an effortto provide the public greater accessvia trails in a way that minimizes theimpact on the private property owners.

Stanford has agreed to contribute$12.25 million for trail construction orenhancement in various jurisdictions.In addition, the University will bear thecost of approximately $7 million toconstruct the S1-C trail on its land.Stanford will be required to: Providepublic trail easements on portions of itsland for the S1 and C1 trails; completedesign, permits and construction of theS1-C Trail and have it open for publicuse within 12 months; completedesign, environmental compliance,permits and construction contributing

up to $11.2 million for the C1 Trailwithin five years, subject to agreementswith the Town of Portola Valley and theCounty of San Mateo; complete design,environmental compliance, permitsand construction contributing up to$1.05 million for the C2 Trail withinfive years, subject to agreement withthe Town of Los Altos Hills; and ensuremaintenance, operations and publicaccess for all three trail alignments.

Since 1972, residents of Santa ClaraCounty have demonstrated a commit-ment to parks by voting to set asideapproximately 1.5 cents per $100 ofassessed valuation for parklands. In2006, the Park Charter Fund BallotMeasure will go to voters for renewal.

FIGHTINGWEST NILE VIRUS

The Vector Control District success- fully met two challenges in 2005.It mitigated the impact of West NileVirus and won support for a ballotassessment.

The District proactively launched anextensive public education and out-reach campaign in 2005 in partnershipwith the County’s Public HealthDepartment. County residents learnedhow to protect themselves, as well ashow to fight the spread of West NileVirus by eliminating standing water -perfect mosquito breeding sources.Ground fogging with Pyrethrin wasused to suppress the adult mosquitopopulation in two areas of San Jose thatshowed signs of Virus-infected mosqui-toes. The ground fogging reduced100% of the adult mosquitoes in thetarget areas.

County residents voted to supportVector Control District services bypassing an assessment ballot measure,the first in the District’s history. Theassessment will strengthen and en-hance District services, as well asprovide a stable funding source formosquito, vector and disease control.

COUNTY ROADS ANDAIRPORTS

Almost every trip starts on a county road or a city street. Counties andcities own and operate 79% of theentire road system in California - some310,000 lane miles - and Californiataxpayers have invested nearly $100billion in those roads. The Roads andAirports Department is responsible foroperating and maintaining the County’snearly 700 miles of roads, including a62-mile expressway system that is

Stanford Trail Alignments

22

Housing, Land Use,Environment, and Transportation

unique in the state. The County alsooperates three general aviation airports- Reid Hillview Airport, Palo AltoAirport and South County Airport.These airports complement the region’scommercial air carrier airports, such asSan Jose International Airport and servea variety of aeronautical purposes,including flight training.

Providing the traveling public with safeCounty roads is one of the Roads andAirports Department’s most fundamen-tal responsibilities. Key to fulfilling thatresponsibility is to ensure that the roadinfrastructure is well maintained tomeet increasing demand. This yearthe Department developed a StrategicBusiness Plan that identified thefollowing strategic directions: 1) Focuson Public Safety and Service, 2) Focuson Congestion Relief, 3) Focus onEfficiency and Effectiveness, and4) Focus on Airports.

Safer RoadsThe Roads and Airports Departmentraised the overall Pavement ConditionIndex (PCI) on the County road net-work from 64 to 73 over the last threeyears and made substantial progress onIntersection Improvements. This isconsistent with the Department’s goalof PCI of 80 on expressways and 70on all other roads. Five of six MeasureB Intersection Level-of-Service Programprojects have been completed or areunder construction. Construction alsohas been completed on the Central,Lawrence, Oregon-Page Mill, andAlmaden Expressway segments of theTraffic Operation System funded by theMeasure B Intelligent TransportationSystems Program, providing real-timevideo feeds of traffic conditions to theTraffic Operations Center.

After two years of technical analysisand collaboration with the cities andthe community, a comprehensive 30-year improvement and maintenanceplan for the eight expressways hasbeen developed. The Departmentalso has seismically retrofitted 18bridges, replaced 16 bridges, com-pleted widening/railing replacementon 11 bridges, and inspected all otherbridges; and reduced traffic signalenergy consumption by 90% byreplacing incandescent lamps withlight-emitting diodes (LEDs). Designis underway on the Almaden Express-way (Ironwood - Koch) Bicycle Im-provements Project and ExpresswayShoulder Bicycle Delineation Project.

Three Santa Clara County roadsprojects received Congressionalearmarks in the Transportation EquityAct for the 21st Century (TEA-21),totaling $7.28 million. The projectimprovements for Almaden Express-way, San Tomas Expressway, andOregon-Page Mill Expressway, areexpected to improve traffic flow andsafety in some of our most heavilycongested areas.

To combat speeding in school zonesand running red lights on Countyexpressways, eight electronic driverspeed display signs were installed inthe vicinity of four schools and 240Red Light Enforcement Indicators (Ratboxes) at the top 30 high-incidenceCounty expressway intersections. Theelectronic speed display signs indicatethe actual speed of an approachingvehicle and are effective in encourag-ing motorists to slow down in schoolzones. The Rat boxes enable police toidentify red light runners from the farside of an intersection to quickly and

23

2004 Perpetual Pavement

Award from the Asphalt

Pavement Alliance for

Central Expressway

2005 Engineering

Excellence Merit Award

from the Consulting

Engineers and Land

Surveyors of California

Vasona Light Rail Line

safely pursue, stop and cite violators.New traffic safety equipment waspurchased with a $156,320 grantprovided by the California Office ofTraffic Safety.

The County’s goal is to eventuallyequip every major intersection onCounty maintained expressways withRat boxes. More information is avail-able at www.CountyRoads.org.

County AirportsTwo significant projects undertakenby the Department were developing acomprehensive Noise CompatibilityProgram (NCP) to enhance Reid-Hillview Airport’s compatibilitywith the surrounding community andawarding the construction contractfor 100 new aircraft hangars at SouthCounty Airport, which is nearingcompletion.

MEASURE BTRANSPORTATIONPROGRAM

The Measure B TransportationProgram completed public transit

and freeway projects this year includ-ing Route 85/101 South Interchange,Route 237/880 Interchange, Palo AltoTransit Center and the Vasona Light RailLine. Light Rail service was broughtinto the City of Campbell with futureextensions planned for Los Gatos. In2006, the widening of Route 152 inSouth Santa Clara County will becompleted, as well as Route 85/101North Interchange, and the Route 17Auxiliary Lane Project from CamdenAvenue to Hamilton Avenue.

24

FIRE DEPARTMENT

The Santa Clara County Fire Depart- ment received accreditation fromthe Commission of Fire AccreditationInternational (CFAI) in recognition ofexemplary performance, following atwo-year assessment process thatappraises performance and identifiesany needed improvements. County Fireis the only accredited fire departmentin the Bay Area, one of only four inCalifornia, and 106 worldwide.

County Fire stations have been desig-nated as Safe Surrender sites fornewborns, leading the way for 100%participation of fire stations in thecounty and its 15 cities. County Firewas a member of the County’s SafeHaven Task Force created in 2004 toaddress the abandonment of unwantednewborns under the Safely SurrenderedBaby Law which allows a parent tosurrender a newborn infant within 72hours of birth, without fear of penaltiesor legal consequences.

Public Safety and Justice

Now there are 12 hospitals and 87 firestations in Santa Clara County where aparent who is unable or unwilling tocare for an infant can legally andconfidentially surrender her/his babywithin three days of birth.

JUVENILE DETENTIONREFORM

In 2002, Santa Clara County became a Juvenile Detention AlternativesInitiative (JDAI) Site with assistanceand funding from the Annie E. CaseyFoundation. The County’s JuvenileDetention Reform (JDR) is a collabora-tive effort between the ProbationDepartment, the Courts, the DistrictAttorney, and Public Defender, locallaw enforcement agencies, communitybased organizations and communityleaders to reduce the number of youthentering the juvenile justice system.

25

Improved Risk AssessmentThe Probation Department has imple-mented a Risk Assessment Instrument(RAI) to better assess the risk a youthmay pose to the community. With theuse of the RAI over the last fiscal year,the Probation Department has experi-enced a decrease in the youth referredto Juvenile Hall for violations ofprobation, a decrease in the use ofdetention overrides to detain youth atJuvenile Hall and a decrease in youthdetained at Juvenile Hall due to thelack of a parent, guardian or respon-sible relative who will take responsibi-lity for the youth.

Fewer Youth DetainedProbation saw a 3.5 percent decreasein the overall number of youth de-tained at Juvenile Hall during fiscalyears 2002 and 2005. The numberof youth of color being detained isdecreasing, however, youth of colorstill make up the largest populationof youth offenders.

Evening Reporting CenterTo further support Juvenile DetentionReform, the County will open anEvening Reporting Center for youthfuloffenders. The Evening ReportingCenter will be operated by the Proba-tion Department in conjunction witha community-based organization toprovide a variety of services for youth-ful offenders in a community-basedsetting. The overarching goal of theEvening Reporting Center is to preventyouth from failing on probation orcommitting new law violations, whichcould result in further detention. TheCenter will operate on weekdays from3 p.m. to 9 p.m. and youth and theirfamilies will be provided with a varietyof program services. The Center isscheduled to open in 2006.

The Santa Clara County

Fire Department won accredi-

tation from the Commission

of Fire Accreditation Interna-

tional (CFAI) in recognition

of exemplary performance

Countywide Juvenile Booking ProtocolThe Probation Department continuesto work in collaboratively with locallaw enforcement agencies in support ofthe Countywide Police JuvenileBooking Protocol. In November 2003,the County Police Chief’s Associationadopted and approved a CountywidePolice Juvenile Booking Protocol forJuvenile Offenders. The purpose of theProtocol is to provide guidance to theSanta Clara County law enforcementagencies in making informed decisionsregarding the incarceration of youthfuloffenders. The policy in determiningdisposition of youthful offenders, is to

26

Public Safety and Justice

balance legal mandates, communitysafety and the best interest of thejuvenile. The alternative that is leastrestrictive to the juvenile is preferred.Whenever, appropriate, communityresources will be used as an alternativeto incarceration. The Police Chief’sAssociation on an annual basis contin-ues to update and support this BookingProtocol for youthful offenders.

JAMES RANCHSECURITY ISSUES

This year, the County was chal- lenged by a high incidence ofrunaways from William F. James Ranchin Morgan Hill. Unlike Juvenile Halls,which are secure facilities where alldoors are locked and the highest levelof staffing and security are mandated,juvenile camps/ranches are minimumsecurity facilities and are designedfor short-term confinement of youthcharged with a law violation and whoare deemed to be an immediate threatto the community and/or themselves;have no parent or guardian willing orable to assume custody; are likely toflee the jurisdiction of the Court; orwho refuse to return home.

Increased SecurityDuring this past year, the ProbationDepartment has increased securityat the James Ranch facility. Two staffmembers are now solely responsiblefor security and surveillance inside thefacility. Additionally, Sheriff Deputiesare patrolling the outside perimeter ofthe James Ranch facility.

Perimeter fencing has now beeninstalled at the James Ranch in MorganHill. The fencing provides additionalperimeter security. The constructionplan called for the installation of a4,000 ft. long and 12 ft. high chain linkfence around the Ranch buildingcomplex. Fencing also surrounds aportion of the field where in-custodyyouth regularly work and play.

Community CoordinationIn addition, regular meetings of theMorgan Hill Police Chief and theProbation Chief were held to workcollaboratively in addressing therunaway issues. As a result of thiscollaboration, the Probation Depart-ment now verbally notifies law en-forcement when a youth runs away.

Enhanced Ranch ProgramIn an effort to reduce repeat offendersand improve rehabilitation of youthoffenders, a $3.2 million funding planhas been authorized to enhanceprogram services at the juvenilerehabilitation facilities. The ranchenhancements will include a smalleryouth-to-staff ratio, improved programservices, with a focus on cognitivebehavior modification counselingservices, improved living quarters andextensive aftercare transition services.One of the measurements of a success-ful rehabilitation program is a low rateof repeat offenses. Research shows ahigher success rate when youth areprovided services in smaller groups,and build positive relationships withstaff members who use a cognitivebehavior modification counselingmodel. Currently, the number of youthwho successfully complete their ranchprograms constitutes 59%. However,the County’s goal is to raise the levelof success to 90%.

County of Santa Clara Color Guard

27

The Enhanced Ranch Program is abalanced holistic approach thatstresses accountability, rehabilitation,and responsibility. It also will includean individual aftercare transition planfor each minor, developed with paren-tal input, to identify aftercare servicesneeded to facilitate successful re-unification with the family and asuccessful transition back into thecommunity. The family will be involvedthroughout the youth’s progression inthe program. There will be intensiveaftercare supervision, family counselingand home visits, as well as a 6-monthCommunity Based Aftercare Programfollowing the youth’s release home toassist the youth to successfully reinte-grate back into their communities.

ADULT PROBATIONREACHES OUT TO THECOMMUNITY

On February 15, 2005, the Adult Probation Department sponsoreda resource fair for the communityentitled, “100 Baskets of Love.” Theevent was designed to reach out toadult probationers and their familiesto provide them with a variety ofresources and information includingjob resources, counseling services andcommunity aide services. Further, asa result of several fundraising events,staff was able to provide baskets offood and clothing to those less fortu-nate. An estimated 504 probationersattended the event.

PREPARING FORNEW THREATS

National and international events during the past five years havechanged the way governments prepareand respond to disasters. Preparationfor natural disasters such as earth-quakes has been expanded and nowencompasses terrorism and pandemics.

Responding to the threat of bio-terrorism, the County now participatesin the Center for Disease Control’s(CDC) Public Health Preparednessand Response to Bioterrorism program,working to strengthen its ability torespond to bioterrorism, outbreaks ofinfectious disease or flu pandemics.

As a participant in the CDC’s pilotCities Readiness Initiative, the Countywill join twenty other cities nation-wide chosen based on population andgeographic location, in the develop-ment of plans to deliver medicinesand medical supplies within a 48-hourtime period during a large-scale publichealth emergency. This plan will buildupon the extensive work alreadydeveloped by the County’s PublicHealth Department.

The County also collaborates withregional leaders to prepare for newthreats as a part of the Urban AreaSecurity Initiative.

Officer practices bomb inspection

28

Public Safety and Justice

PROTECTING THECOMMUNITY

The Tactical Medics are a group of volunteer physicians and para-medics - with an interest in lawenforcement - trained to respondwith the Sheriff’s Emergency ResponseTeam (SERT) whenever a tacticalincident occurs.

During tactical operations, the TacticalMedical Team Leader works with theSERT Commander to advocate for thehealth and welfare of the officersincluding discussing sleep/wake cycles,hydration, nutrition, and other issuesthat may impact officers’ performanceor safety. They also provide medicalcare at the front lines of an incident;work with the Sheriff’s Hostage Negoti-ating Team; have expertise in treatingvictims exposed to chemical and bio-logical agents of terror; and providemedical care and first aid to bystanderswho have been injured or displacedby an incident.

Operation Second ChanceMore than 525 people took advantageof the Santa Clara County Sheriff’sOffice’s “Second Chance” warrantredemption program during the monthof December and over 650 misde-meanor warrants have been cleared.Felony warrants or any warrantsinvolving violence were not eligible.

Operation RoundupThe Santa Clara County Office of theSheriff, in cooperation with the SantaClara District Attorney’s CommunityProsecution Unit completed a six-month investigation into the sale ofdrugs in the Buena Vista and Burbankneighborhoods. These neighborhoodsare part of the Burbank Weed and SeedGrant, which encompasses the areawithin a one-mile radius of LutherBurbank School.

Initially, three houses and sevenapartments were served with warrants.During the searches, assorted amountsof Methamphetamine, Rock Cocaine,Marijuana more than $10,000 in cash

Santa Clara County Peace Officer Memorial Ceremony

29

were seized. Ten people were takeninto custody. One dependent adult wastaken to Emergency Protective Servicesand three juveniles were taken intoprotective custody.

During the second phase, 68 arrestswere made: 43 for drug possessionor being under the influence of drugs,three for auto theft, three for sexoffender registrant violations, threefor weapons violations and 17 fordrunk in public or alcohol salesviolations. The drugs seized includeMarijuana, Methamphetamine,Cocaine, Heroin, Ecstasy and unlaw-fully obtained prescription narcotics.

Challenges AheadThe Sheriff will encounter the followingchallenges in the year ahead: Creatinga Justice Training Center at the HoldenRanch in Morgan Hill able to providespecific academy and advance trainingfor members of the Sheriff’s Office andthe Probation Department; providingthe same level of law enforcementservice to the public with the signifi-cant budget reductions in the lastseveral years; and continuing to recruitand to retain qualified deputy sheriffs,managers and supervisors with themass exit of the “baby boomers” overthe next five years.

SENIOR HOMEOWNERSPROTECTED FROMFRAUD

Bay Area housing prices and a growing senior population havemade elderly homeowners the targetof scam artists attempting to bilk themout of retirement savings and theirhomes. The Office of the District

Attorney successfully prosecutedindividuals responsible for a nation-wide $73.6 million fraud operation,a version of one of the nation’s topten scams. Of the 1,000 victims,approximately 12 were countyresidents who lost approximately$1 million in retirement assets orhome equity.

DNA DATABASE AIDSLAW ENFORCEMENT

California voters approved the DNA Fingerprint, Unsolved Crime andInnocence Protection Act (Proposition69) in 2004. Local governments werecharged with collecting DNA samplesfrom qualified jail inmates, includingadults and juveniles convicted of anyfelony or sex offense, and adultsarrested for or charged with a felonysex offense, murder or involuntarymanslaughter. The statute authorizeslocal law enforcement laboratories toperform analyses for the state databaseand maintain local databases. SinceJuly 2005, the County Department ofCorrection has collected 3,300 DNAsamples from County jail inmates.

Since the County implemented thissystem there have been 54 DNAmatches by the Santa Clara CountyDistrict Attorney’s Crime Laboratory,positively identifying several personswho are suspects in on-going criminalinvestigations in Santa Clara County.

The California State

Association of Counties

recently awarded one of

ten statewide Challenge

Awards to the Santa Clara

County Sheriff’s Office for

its Tactical Medic Team

30

COUNTY WORKFORCECHALLENGES

The County is facing a number of challenges to continuing to providenationally recognized innovative andresponsive services. Two contributingfactors are critical workforce shortagesin health professions and the significantloss of institutional memory as a resultof an aging workforce eligible to retireduring the next five years.

As has been the case for medical insti-tutions across the country, the countyhas faced shortages in the areas ofnursing, diagnostic imaging andmedical technology. The Countycompetes with private and publichealth facilities to attract and retainthese skilled personnel. By implement-ing an immediate strategy of offeringsign-on bonuses and an educationalreimbursement program, the vacancyrate in some areas has been reducedfrom more than 50% to approximately10%. A long-term strategy imple-

Finance andGovernment Operations

mented this year is a new partnershipwith San Jose State University thatestablished an accelerated bachelor’sdegree program for student nurses.

The aging “baby boomer” populationwill affect the entire nation. Duringthe next five years, between 6,300and 7,100 County workers (nearlyhalf of the workforce) will be eligibleto retire, taking with them a substantiallevel of institutional memory andspecial skills and work knowledge.The organization is beginning to takeon the challenge of succession plan-ning. In addition, employees now havethe option to participate in an acceler-ated bachelor’s degree program withreduced tuition through a new partner-ship with National University.

The County offers employees avariety of training and wellnessopportunities to ensure employees’skills remain current, that they areknowledgeable and compliant withrelevant employment laws, and areaware of actions and practices thatpromote good health.

Full-time County Employees

1997

Empl

oyee

s

Fiscal Year1998 1999 2000 2001 2002 2003 2004 2005

17,000

16,500

16,000

15,500

15,000

14,500

14,000

13,500

31

Office of the County Counsel

has provided more than 2,000

children with appropriate

education programs and was

recognized by the California

State Association of Counties

for its Education Rights

Project/Project YEA!

To expedite hiring, employmentinformation is online atwww.sccgov.org. Applications maybe submitted by applicants via theinternet in the comfort of their homes,from public facilities like libraries orfrom onsite kiosks at the CountyGovernment Center.

ENHANCED ACCESSTO AGENDA ONLINE

Individuals interested in specific issues and policies under consider-ation by the Board of Supervisorsnow have access to all Board PolicyCommittee agendas and informationin addition to all Board meetingagendas, supporting documents andmeeting summaries already available.

The enhancements to Agenda Onlinefound on the County’s www.sccgov.orgWeb portal are part of Keyboard, a fullycomputerized agenda system devel-oped by the Clerk of the Board and theInformation Services Department.

USER FRIENDLYE-GOVERNMENT

The Information Services Depart- ment redesigned the home page ofwww.sccgov.org for easier navigationand public access to online applica-tions, forms and services. Changes tothe web portal include a new centralaccess point for eServices called “Getit Done Online,” and advanced searchcapabilities that allow users to searchfor information by asking questionsinstead of inserting key words. Now23 services are available online,including viewing and making prop-erty tax payments, making County

Office of the County

Counsel received an award

from La Raza Lawyers of

Santa Clara County for its

commitment to the Latino

community

Park reservations, adopting a pet,and finding a polling place.

TOP-RANKED COUNTYLIBRARY SYSTEM

For the fifth straight year, Santa Clara County Library system is one of thetop-ranked libraries in the countryaccording to Hennen’s AmericanPublic Library Ratings. Althoughdifficult fiscal times have led to reduc-ing branch hours by 16.8% (all ninelibraries are closed on Mondays), totalcirculation decreased by only 5%.Voters continued to show support forCounty libraries, approving a $33.66tax to replace an expiring specialassessment. The funds will restorebooks and hours that were cut in 2004.In the coming year, the Library willoffer free wireless access to patrons.

Storytime at Campbell Library

The Santa Clara County

Library received an honorable

mention for Prescribing Health

Literacy, an outreach effort

that led to more than 600

low-literacy patients using

community learning center

resources, and raised aware-

ness for physicians and health

care providers of the special

needs of patients

32

UPGRADING COUNTY9-1-1 RESOURCES

Santa Clara County Communications finalized the implementation of asix-year project to upgrade and replacethe computer-aided dispatching system,completed the construction of a state-of-the-art metal antenna tower, andinstalled a two-way radio system thatprovides critical tactical communica-tions for emergency medical servicescoordination during emergencies.

In the year ahead, County Communica-tions will upgrade its 9-1-1 telephonesystem to enable cell phone callers toreach County 9-1-1 Dispatch directlyinstead of being routed first through theCalifornia Highway Patrol.

Finance andGovernment Operations

ELECTRONIC VOTINGA SUCCESS

The Santa Clara County Registrar of Voters successfully conductedfive elections in 2005, including theNovember Special Election. Theelections were conducted using acombination of electronic voting andpaper absentee ballots. The Countyhas improved verifiability of electronicvoting. The processing of absenteeballots also has been enhancedthrough the purchase of high-volumeand high-speed mail inserting, sortingand extracting machines. The Registrarof Voters conducted extensive votersurveys to establish sample ballotlanguage preference.

Voter Verified Paper AuditIn 2006, for the first time, the Countywill use the Voter Verified Paper AuditTrail, and will be the first in the nationto offer the audit trail in five differentlanguages – English, Spanish, Vietnam-ese, Tagalog, and Chinese.

33

ENERGY SAVINGS

The County now boasts a reduction of electrical consumption by 20percent. During the height of theCalifornia energy crisis in 2001, theCounty created the Emergency EnergyTask Force to reduce the County’sconsumption of energy. Measureswere implemented to conserveenergy usage in County facilities.

The Facilities and Fleet Departmentcompleted more than 500 energy con-servation projects including: installa-tion of 6,800 task lighting motionsensors; installation of 1,459 roomlighting motion sensors; installation ofnew lighting controls systems in eightbuildings; optimization of HVAC airintake economizers to take advantageof cool outside air to reduce the needfor mechanically cooled air; installa-tion of 116 HVAC system time clocksand programmable thermostats; andinstallation of 23 cool roof systems.

Encouraged by its conservation suc-cess, the County joined the SustainableSilicon Valley Carbon Dioxide Emis-sions Reduction Project, and alsolaunched a Santa Clara County FuelCell Advancement Initiative. Theinitiative’s projects may include astationary fuel cell application and afuel cell fleet vehicle demonstration.

The County continues to achievesignificant energy conservation throughinnovations and efficiencies in facili-ties. The County’s fleet contains anumber of alternative fuel vehicles.

INDEPENDENTMANAGEMENTAUDIT DIVISION

In 1980, the Board of Supervisors established the Management AuditDivision to perform detailed analysesof County operations, to review theannual County budget and conductfinancial analyses of major financialissues before the Board. The staff ofthe Management Audit Division isindependent from County administra-tion, all departments and programs,and reports directly to the Board ofSupervisors.

During Fiscal Year 2004-05, theManagement Audit Division conductedmanagement audits of the Tax Collectorand the County Fire Department, aspecial study of the property holdingsof the Santa Clara Valley Water District,and analyses of the Fiscal Year 2005-06Recommended County Budget, FiscalYear 2005-06 Recommended SantaClara Valley Water District Budget, andthe Fiscal Year 2005-06 Governor’sProposed State Budget.

The Independent Management AuditDivision also performed a specialanalysis for the County Executive of all549 County programs and functions,known as the Mandate Study. Thisanalysis was used by the CountyExecutive and the Board of Supervisorsas a key tool to implement reductionsto the annual budget of more than$100 million, while minimizing theimpact on critical County services.

County Communications

attained certification for the

second time as a nationally

recognized Center of Excel-

lence for emergency medical

dispatching services

Keyboard, a fully computer-

ized online agenda system,

garnered a statewide 2005

Merit Award, and a Host

County Exemplary Program

Award for innovation from the

California State Association

of Counties

It also won the Award for Best

Application Facing the Public

presented by the California

County Information Services

Directors Association and the

Center for Digital Government

34

Finance andGovernment Operations

* Project is in the $470 Million Bond Program

CAPITAL IMPROVEMENTSPROGRAM INCLUDES$470 MILLION CAPITALBOND PROJECTS

To keep pace with the needs of county residents, several buildingconstruction projects are underway,including major public safety andhealth-related facility projects. Projectsare in various stages of completion,from preliminary design to completedconstruction.

When construction is completed onall of the projects, nearly one millionsquare feet of space will have beenadded. Additionally, county offices arerelocating from leased space to county-owned facilities. The goal is to generatelong-term savings by relocating Countyoffices from leased space, and free-upoperating funds from leases to use fordirect service delivery. One suchexample is the relocation of offices tothe County Center at Charcot. Thismove alone will save $4 millionannually in lease costs. Other Countyoffices will be moved into the buildingsas spaces are reconfigured and existingleases terminate.

Completed Projects• Vector Control Complex atBerger Drive - 7,694 sq. ft.• Valley Health Center atTully Road - 55,000 sq. ft.• James and Holden RanchProgram Buildings - 4,932 sq. ft.• House on the Hill - 17,000 sq. ft.

Construction Underway to beCompleted in 2006 & 2007• County Center at CharcotProbation Building* - 100,000 sq. ft.• Muriel Wright ProgramBuilding - 4,794 sq. ft.• County Center at Charcot Admini-stration Building* -100,000 sq. ft.• Juvenile Hall Phase 2 - 75,368 sq. ft.• Morgan Hill Courthouse* -86,250 sq. ft.

Construction to be Completedin 2008 & 2009• Valley Specialty Center atVMC* - 244,000 sq. ft.• Crime Lab - 90,072 sq. ft.• Valley Health Center atGilroy* - 60,000 sq. ft.• Valley Health Center atFair Oaks* - 45,500 sq. ft.• Valley Health Center atMilpitas* - 60,000 sq. ft.

County Center at Charcot Administration Building

Valley Specialty Center at VMC

35

Human Resources received the

Outstanding Contributions

Award at the NEOGOV

fourth annual users conference

for the County’s online

employment application

Left: Valley Health Center at Gilroy

Below: Valley Health Center at Tully Road

36

Financial HighlightsFiscal Year 2005

COUNTYWIDE FINANCIALS

This report presents the highlights of the significant economic and financial activity of the Santa Clara County for the fiscal year (FY) ended June30, 2005. A full report of the County’s financial activity is available in the Compre-hensive Annual Financial Report (CAFR) online at http://www.sccgov.org/cafr.

The County prepares two sets of financial statements that measure its financesdifferently. The countywide financial statements provide readers with a broadoverview of the County’s finances, in a manner similar to a private-sector business.It provides a long-term perspective of the County’s assets, liabilities, and net assets,as well as its operations. The fund statements provide a short-term perspective ofthe individual funds’ assets, liabilities, and fund balance, as well as the resourcesflowing in and out during the fiscal year.

The County of Santa Clara financial activities are governed by a number of signifi-cant financial policies in the areas of Use of Fund Balance, Contingency Reserves,Capital Project Financing, Debt Management, and Cash Management. Thesepolicies are outlined in the CAFR available online at www.sccgov.org/cafr.

Statement of Net AssetsThe Statement of Net Assets presents information on all of the County’s assets andliabilities, with the difference between the two reported as net assets. Over time,increases or decreases in net assets may serve as a useful indicator of whether theCounty’s financial position is improving or deteriorating.

The County’s assets exceeded its liabilities by $1.8 billion (net assets) for the year.

There are three components of net assets:

• $645.5 million or 36% of net assets are investment in capital assets, less relateddebt. Capital assets (land, buildings, infrastructure and equipment) are used toprovide services to citizens; consequently, these assets are not available for futurespending.

• $107.2 million or 6% are restricted net assets. These resources are subject toexternal restrictions on how they are used.

• $1.0 billion or 58% are unrestricted net assets. These resources may be used tomeet the County’s ongoing obligations to citizens and creditors.

37

Current & Other AssetsCapital Assets

Total Assets

Current & Other LiabilitiesLong-term Liabilities

Total Liabilities

Net Assets:Invested in Capital Assets,Net of Related DebtRestricted Net AssetsUnrestricted Net Assets

Total Net Assets

1,742,9211,036,445

$2,779,366

227,603876,705

$1,104,308

497,00794,294

1,083,757$1,675,058

2,059,6611,057,558

$3,117,219

229,9961,089,952

$1,319,948

645,466107,214

1,044,591$1,797,271

316,740)21,113)

$337,853)

2,393)213,247)

$215,640)

148,459)12,920)

(39,166)$122,213)

18.2%)2.0%)

12.2%)

1.1%)24.3%)19.5%)

29.9%)13.7%)(3.6%)7.3%)

Net Assets(In Thousands)

Fiscal Year2004

Fiscal Year2005

DollarChange

PercentChange

$2,000

$1,500

$1,000

$500

$0

Net Assets(In Millions)

02-03 03-04 04-05

Fiscal Year

Unrestricted Restricted Invested in capital assets, net of related debt

38

Financial HighlightsFiscal Year 2005

Statement of ActivitiesThe Statement of Activities provides information on how the County’s net assetschanged during the fiscal year, regardless of the timing of related cash flows. Thus,the statement reports revenues and expenses for some items that will only result incash flows in a future fiscal period (e.g., uncollected taxes).

The County’s total revenues increased by $176 million or 6.8%, to $2.8 billion,while its total expenses increased by $20.5 million or 0.8%, to $2.6 billion. TheCounty’s total net assets increased by $122.2 million for the year. This increase innet assets provided resources for County assets (e.g., capital items) and resources todecrease the County’s liabilities (e.g., debt obligations).

REVENUES:

Program Revenues:Charges for ServicesOperating Grants & ContributionsCapital Grants & Contributions

General Revenues:Property TaxesSales & Use TaxesOther TaxesUnrestricted Grants & ContributionsUnrestricted Investment IncomeGain on Sale of Capital AssetsOther Revenue

Total Revenues

PROGRAM EXPENSES:

General GovernmentPublic ProtectionPublic Ways & FacilitiesHealth & SanitationPublic AssistanceEducationRecreation & CultureInterest on Long-term LiabilitiesSCVMCAirportSanitation District

Total Expenses

Increase/(Decrease)in Net Assets

671,828)1,025,950)

21,246)

435,230)153,024)144,137)34,667)38,588)

-)62,282)

$2,586,952)

191,158)587,043)228,880)354,850)534,060)24,193)21,978)

6,061)664,034)

2,547)5,392)

$2,620,196)

($33,244)

720,2781,049,954

11,412

586,999158,386102,91122,49744,7148,707

57,148

$2,763,006

171,077639,554140,842334,667561,919

25,35323,2146,607

732,4533,4731,634

$2,640,793

$122,213

48,450)24,004)(9,834)

151,769)5,362)

(41,226)(12,170)

6,126)8,707)

(5,134)

$176,054)

(20,081)52,511)

(88,038)(20,183)27,859)

1,160)1,236)

546)68,419)

926)(3,758)

$20,597)

$155,457)

7.2%)2.3%)

(46.3%)

34.9%)3.5%)

(28.6%)(35.1%)15.9%)

N/A)(8.2%)

6.8%)

(10.5%)8.9%)

(38.5%)(5.7%)5.2%)4.8%)5.6%)9.0%)

10.3%)36.4%)

(69.7%)

0.8%)

Change in Net Assets(In Thousands)

Fiscal Year2004

Fiscal Year2005

DollarChange

PercentChange

39

Capital Asset ActivityThe County’s net capital assets increased by $21.1 million or 2% to $1.1 billion.The construction in progress includes $49.7 million in following new projectsstarted during the year:

• $29.7 million for constructions projects undertaken by the Facilities and FleetDepartment for Valley Specialty Center, lobby security at Downtown SuperiorCourt, continued construction and renovation of the new County Center, MorganHill Courthouse, Crime Lab, various Valley Health Centers, juveniles, jails andjustices facilities, and various small projects.

• $13.7 million in capital projects undertaken by the Roads Department for bridgeseismic retrofit and rehabilitation, pedestrian and bicycle routes improvements,signal synchronization programs, pavement management of Measure B projects,rural road capital projects, drainage improvements, and the continued comprehen-sive study and planning for the County’s expressways.

• $6.3 million in various Park projects.

Outstanding DebtThe County’s total debt obligation at June 30, 2005, was $794 million. Total long-term debt - net of $20.9 million debt service principal pay-off-increased by $175.5million or 28.4% during the current fiscal year. During the year, the County issued$193.8 million in four new bonds for various capital projects.

Lease Revenue Bonds(net of discounts anddeferred loss on refunding)Special Obligation Bonds(net of premium)Certificates of ParticipationCapital Lease Obligations

Total

464,865

145,6501,0506,795

$618,360

645,751

142,868805

4,472$793,896

180,886)

(2,782)(245)

(2,323)$175,536)

38.9%)

(1.9%)(23.3%)(34.2%)28.4%)

Outstanding Debt(In Thousands)

Fiscal Year2004

Fiscal Year2005

DollarChange

PercentChange

LandBuildings & ImprovementsInfrastructureEquipment & VehiclesLeasehold ImprovementsConstruction in Progress

Total

182,282486,922104,78074,077

1,454186,930

$1,036,445

1.0%)1.3%)

11.0%)(19.1%)

(7.2%)8.3%)2.0%)

Capital Assets(Net of Depreciation in Thousands)

Fiscal Year2004

Fiscal Year2005

PercentChange

184,111493,319116,33059,925

1,350202,523

$1,057,558

Financial HighlightsFiscal Year 2005

Program Revenues

Grants & Contributions -

Federal and State - 59.6%

Charges for Services - 40.4%

County Revenues

Program Revenues - 64.5%

General Revenues - 35.5%

Program RevenuesThe County’s program revenuesincreased by $62.6 million to $1.8billion for the year. Federal and Stategrants and contribution are thelargest source of County’s revenuesand contributed 59.6% of its totalprogram revenues. These programresources are tied to mandatedservices such as social services,public assistance, health andmental health. Charges for serviceswere 40.4% of the County’s totalprogram revenues.

General RevenuesAs stated previously, the County’sgeneral revenues support govern-ment programs by defraying costs,which those programs cannot coverfrom their own revenues. Tax rev-enues are the County’s second largestrevenue source - grants and contribu-tions being the largest. The Countyearned $848.3 million in tax rev-enues (property tax, property tax inlieu of motor vehicle license fee, andsales tax) for the current year. This isapproximately 86.4% of the generalrevenues, and 30.7% of the totalcurrent year revenues. These generalrevenues provide the County most ofits discretionary spending ability.

General Revenues

Property Tax - 59.8%

Sales Tax - 16.1%

Other Taxes - 10.5%

Other Revenues - 6.7%

Investment Earning - 4.6%

Unrestricted Grants &

Contributions - 2.3%

Total RevenuesThe County’s revenues increased by$176 million or 6.8% to $2.8 billion.The County provides various man-dated services to its residents.Revenues directly generated by orattributable to a specific governmen-tal function are called programrevenues. These include charges forservices and restrictive (programspecific) grants and contributions,both operating and capital. Generalrevenues support governmentprograms by defraying costs, whichthose programs cannot cover fromtheir own revenues. The County’sprograms generate about 64.5% of itstotal revenues. The general revenuesaccount for the remaining 35.5% ofthe total revenues.

40

General FundThe General Fund is the chiefoperating fund of the Countyand its revenues and expendituresfor the year were $1.9 billion and$1.6 billion, respectively. Whileits revenues increased by $132.9million or 7.7% for the year, itsexpenditures decreased significantlyby $87.2 million or 5.0% due todeficit solutions implemented bythe County.

Intergovernmental Revenues - 52.9%

Taxes - 34.1%

Charges for Services - 7.2%

Fines, Forfeitures & Penalties - 2.4%

Other Revenues - 2.2%

Interest & Investment Income - 0.7%

Licenses & Permits - 0.5%

General Fund Revenues

by Source

Public Assistance - 33.2%

Public Protection - 32.5%

Health & Sanitation - 19.8%

General Government - 8.3%

Public Ways & Facilities - 5.7%

Debt Service Principal

Retirement - 0.3%

Debt Service Interest &

Fiscal Charges - 0.2%

General Fund Expenditures

by Function

41