A.M. Splash: SJ Unions File SEC Complaint Against Mayor; LAO Says Brown Budget $6.5 Billion Too Optimistic; Sacto, Kings in Stadium Deal

An attorney representing three San Jose employee unions on Monday filed a complaint with the Securities and Exchange Commission accusing Mayor Chuck Reed and the city of violating federal securities law by failing to disclose to potential bond purchasers that the city believed pension costs could or would rise to $650 million by 2015..."Either the mayor can come clean with the SEC that he misled potential investors, or he can come clean and admit he misled the public. Either way, he must be held accountable,'' said Tom Saggau, a strategist for the city's police and fire unions, and Professional and Technical Engineers Local 21.

Gov. Jerry Brown is counting on $6.5 billion too much for his proposed budget, even with Facebook's stock sale on the horizon, according to a new economic review by the state's fiscal analyst.

America's Cup organizers - facing financial risks and tight construction deadlines - have eliminated the heart of a proposed real estate deal with the city involving prime waterfront property. But both sides vowed Monday that the prestigious regatta will take place as planned in San Francisco.

The chairman of the California State University Board of Trustees was forced out Monday after Senate Republicans blocked his required reconfirmation. Herb Carter, who was appointed to the Board of Trustees in 2004 by Gov. Arnold Schwarzenegger, became vulnerable last summer after the trustees approved a $400,000 salary for a newly hired campus president, 34 percent higher than his predecessor, on the same day the cash-strapped CSU raised tuition.

Filmmaker George Lucas' plan for a huge digital production studio on the old Grady Ranch in Lucas Valley won a unanimous vote of approval from Marin County planning commissioners Monday as officials agreed the project was in line with a master plan approved more than a decade ago — and will have little impact on the environment.

Hundreds of South Bay students climbed back onto the college track Monday after San Jose State said it would stand by its promise to favor local students in admissions. Seeking to limit class sizes to contend with budget cuts, the university revealed last week it might end a tradition of easier admissions for high school graduates from Santa Clara County and community college transfers from the broader South Bay. About 1,400 applicants would have been shut out.

A San Francisco hardware store has pleaded guilty to defrauding the city's Public Utilities Commission, District Attorney George Gascón announced Monday. Cole Hardware, which runs four retail stores in the city, must pay $51,544.72 in restitution for its role in helping PUC employees buy personal items on the city's dime, Gascón said.

In what is being called the most comprehensive healthy food and beverage policy in the state -- and possibly the nation -- Santa Clara County leaders on Tuesday are prepared to approve cutting-edge nutritional standards for any drink or edible that's sold, served or offered at county facilities. That doesn't mean pizza and hamburgers will be wiped off county cafeteria menus, but, when possible, they'll be made with more healthful ingredients. And even though county vending machines are already required to contain 50 percent healthful items, any candy, potato chips or sugared sodas offered today could be replaced with such things as trail mix, baked chips and water, diet drinks and iced tea.

PG&E Co. plans to cut down thousands of trees under its high-voltage power lines across Sonoma County to help protect the local power grid from blackouts. But worried residents are pushing back, saying the new policy is overkill that threatens to brand the county with a 39-mile-long scar from The Geysers to Petaluma.

Sacramento and its sole major league sports team, the Kings, have agreed on the pieces of a $387 million arena financing puzzle that would keep the franchise in town another 30 years. Now, can they put those pieces together?