After hearing several requests from residents urging the council to consider placing new projects on the 2001­06 plan, the council directed Public Works Director John Cherbone and staff to reprioritize the 17 items on the list in the order of most to least urgent. The council also directed staff to consider possible ramifications of freezing certain projects until additional funding becomes available.

One of the three items discussed at the Dec. 17 meeting—a subject that has come up in previous meetings—was the condition of the Book-Go-Round building on Oak Street off Saratoga­Los Gatos Road.

Phylis Ballingall, who spoke on behalf of the Heritage Preservation Commission, said that the condition of the building is "an embarrassment" and should be properly addressed with due diligence.

The interior of the building is currently damaged due to a leaky roof, which has become a greater problem over time, especially with the winter season. In addition, the storage room, which Cherbone said the city spent $14,000 to repair in 2002, is suffering from dry rot and termites.

Library Commissioner Marcia Manzo said that the cost to repair the building, which Cherbone estimated to be $35,000, is small compared to the cost of other items on the list. She said that the council should consider the fact that the Book-Go-Round has been a valuable asset to the community.

In her speech, she pointed out that the Book-Go-Round "generates approximately $100,000 a year" from book sales and fundraising efforts.

"This is a phenomenal amount of money," Manzo said.

Other members in the audience, including Jim Kardac, a resident on La Paloma Avenue, were vying to get traffic signals and other safety devices on Highway 9 and Oak Place included in the Capital Improvement Plan.

Kardach, co-president of the Village Green Neighborhood Association, said that he "would like to see anything added to the proposed site that would make it safer" for pedestrians to cross the street. He also stated that the issue has been long overdue.

(Waiting for name), the other president of the association, urged the council to take action as soon as possible, considering that it has been a concern among several neighbors for several years.

"I would hate to see something go wrong in that area in the future," he said.

According to Cherbone, it may be difficult to get permission from Caltrans to install a traffic signal, which can cost up to $145,000, because the intersection does not meet the traffic requirement of having 100 or more pedestrians every four hours or 190 pedestrians within an hour. However, having received advice from a traffic engineer, Cherbone said that there are other ways to address the issue, from painting cross-hatched crosswalks to adding warning signs and installing raised concrete bulb-outs, which would cost approximately $50,000.

The third new item that was discussed briefly was storm-drain improvements on Chester Avenue and Vasona Creek. Due to occasional flooding in that area, staff recommended that a new storm drain be installed. A new drain would cost approximately $178,000.

To fund all three projects, the city would need to put forth $358,000, which is money that, if available, must be used wisely. The cost to repair or improve all of the items on the current list is $1,340,589.

According to Vice Mayor Kathleen King, the city may have to work on a smaller budget, which currently stands at $8.7 million, depending on what will happen financially on the state level and on final decisions regarding VLF funds. Council members are also dealing with several issues currently on the Capital Improvement Plan, from maintenance and repairs to the Civic Theater and the North Campus facility to safety improvements on Aloha Street and Quito Road.

At the meeting, Councilman Nick Streit said that he is "all for putting the proposed items on the CIP list," but pointed out the grim reality of the city's financial state.

"We lost $1.3 million in VLF money. The approximate $6 million [in the budget] is the only money we have," Streit said. "We don't have a huge surplus."

In addition, Streit said that the city is already $500,000 in the hole.

"We have to be cautious," he said. "If we don't find the money, we're going to be in deep trouble."

Streit also brought up the scenario that if the city spends money on addressing all of the public safety issues on the list, funding for sheriff's officers and firefighters may be jeopardized.

King suggested that the council should seek advice from the public safety commission to determine the order of priority of each item involving public safety.

The city will be continuing its discussion about which items on the list to freeze and other possible funding measures at its next meeting on Jan. 7.