MINUTES OF THE CITY COUNCIL

SAN JOSE, CALIFORNIA

TUESDAY, JANUARY 26, 1999

The Council of the City of San Jose convened in regular session at 9:30 a.m. in City Council Chambers at City Hall.

Present: Council Members - Chavez, Dando, Diaz, Diquisto, LeZotte, Matthews, Fiscalini, Powers, Shirakawa, Jr.; Gonzales.

Absent: Council Members - Woody (excused).

Upon motion unanimously adopted, Council recessed at 9:35 a.m. to a Closed Session in Room 600 to confer with Legal Counsel pursuant to Government Code Section 54956.9; under Subsection (a) to discuss existing litigation in the cases of: (1) Preservation Action Council of San José v. City of San José, et al., (2) Bryant v. City of San José, et al., (3) Alviso Community Organization v. Maciel, et al., and (4) Huskey v. City of San José, et al.; and to discuss anticipated litigation pursuant to Subsection (b) of Government Code Section 54956.9, in three matters regarding the initiation of litigation.

By unanimous consent, Council reconvened from the Closed Session and recessed at 11:45 a.m. and reconvened at 1:35 p.m. in the Council Chambers.

Present: Council Members - Chavez, Dando, Diaz, Diquisto, LeZotte, Matthews, Fiscalini, Powers, Shirakawa, Jr., Woody; Gonzales.

Absent: Council Members - None.

INVOCATION

Pastor Denny Carr, Immanuel Presbyterian Church, delivered the Invocation.

(District 1)

PLEDGE OF ALLEGIANCE

Mayor Gonzales led the Pledge of Allegiance.

ORDERS OF THE DAY

Upon motion by Council Member Powers, seconded by Council Member Fiscalini, and unanimously carried, the Orders of the Day and the Amended Agenda were approved. Vote: 11-0-0-0.

CEREMONIAL ITEMS

5a Presentation of a commendation and award honoring the Outstanding Employee for January 1999, Randy Adams, Amusement Park Supervisor for Convention, Arts and Entertainment Department. (City Manager’s Office)

Documents filed: None.

Discussion/Action: Mayor Gonzales was joined by Acting City Manager Debra Figone and Director of Department of Conventions, Arts and Entertainment, Nancy Johnson, for presentation of a commendation and award to Randy Adams as Outstanding Employee for January 1999, in recognition of the professional excellence he has brought to his position as Amusement Park Supervisor at Happy Hollow Park. Supervisor Adams thanked the Mayor and City Council and City Manager’s Office for the recognition, and expressed appreciation to Barbara Coats, Family Camp Manager, and CAE staff for their support.

CEREMONIAL ITEMS

5b Presentation of plaques to William Wilson for 3 years service on the San José Appeals Hearing Board; to Carole Sloan for 2 years service on the CDBG Steering Committee, to Alfred Arevalo for 4 years service, to Edna Esguerra for 4 years service, and to Carol Kassab for 4 years service on the Disadvantaged Business Development Commission. (Mayor)

Documents filed: None.

Discussion/Action: Mayor Gonzales presented plaques to Alfred Arevalo, Edna Esguerra and Carol Kassab for their service on the Disadvantaged Business Development Commission, and recognized William Wilson and Carole Sloan, who were unable to be present; plaques will be mailed to the absent honorees.

CONSENT CALENDAR

William Garbett spoke in opposition to Items 6a(1)-(21). Upon motion by Council Member Fiscalini, seconded by Council Member Powers, and unanimously carried, the Consent Calendar was approved and the below listed items taken as indicated. Vote: 11-0-0-0.

Minutes for Approval

6a(1) Regular Meeting of November 3, 1998

Documents filed: Minutes of November 3, 1998.

Discussion/Action: The minutes were approved. Vote: 11-0-0-0.

6a(2) Joint City Council/Redevelopment Agency Meeting of November 5, 1998

Documents filed: Minutes of November 5, 1998.

Discussion/Action: The minutes were approved. Vote: 11-0-0-0.

6a(3) Regular Meeting of November 10 1998

Documents filed: Minutes of November 10, 1998.

Discussion/Action: The minutes were approved. Vote: 11-0-0-0.

6a(4) General Plan Meeting of November 12, 1998

Documents filed: Minutes of November 12, 1998.

Discussion/Action: The minutes were approved. Vote: 11-0-0-0.

Ordinances for Final Adoption (Ord Titles from Contracts)

6b(1) ORD. NO. 25752 – Rezones certain real property situated at the southeast corner of San Felipe Road and Fowler Road. PDC 98-03-022

Documents filed: Proof of publication of title of Ordinance No. 25752 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25752 was adopted. Vote: 11-0-0-0.

6b(2) ORD. NO. 25753 - Rezones certain real property situated at the northwest corner of Jacksol Drive and Faircrest Drive. C 98-07-050

Documents filed: Proof of publication of title of Ordinance No. 25753 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25753 was adopted. Vote: 11-0-0-0.

6b(3) ORD. NO. 25754 – Rezones certain real property situated at the east side of Nieman Boulevard, 150 feet southerly of Nieman Court. PDC 97-07-038

Documents filed: Proof of publication of title of Ordinance No. 25754 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25754 was adopted. Vote: 11-0-0-0.

6b(4) ORD. NO. 25755 – Rezones certain real property situated at the terminus of Dow Drive. CC 98-10-080

Documents filed: Proof of publication of title of Ordinance No. 25755 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25755 was adopted. Vote: 11-0-0-0.

6b(5) ORD. NO. 25756 – Rezones certain real property situated 1,000 feet northerly of the terminus of Dow Drive. CC 98-10-081

Documents filed: Proof of publication of title of Ordinance No. 25756 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25756 was adopted. Vote: 11-0-0-0.

6b(6) ORD. NO. 25757 – Rezones certain real property situated 1,500 feet northeasterly of the terminus of Dow Drive. CC 98-10-082

Documents filed: Proof of publication of title of Ordinance No. 25757 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25757 was adopted. Vote: 11-0-0-0.

6b(7) ORD. NO. 25758 – Rezones certain real property situated between North First Street, Baypointe Drive, Zanker Road, and River Oaks Parkway. PDC 97-04-027

Documents filed: Proof of publication of title of Ordinance No. 25758 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25758 was adopted. Vote: 11-0-0-0.

6b(8) ORD. NO. 25759 – Rezones certain real property situated on the northeasterly corner of Santa Teresa Boulevard and San Ignacio Avenue. C 98-08-066

Documents filed: Proof of publication of title of Ordinance No. 25759 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25759 was adopted. Vote: 11-0-0-0.

6b(9) ORD. NO. 25760 – Adopts an amendment to the Century Center Redevelopment Plan to extend the date until which debt may be incurred in the Century Center Redevelopment Project Area to January 1, 2004.

Documents filed: Proof of publication of title of Ordinance No. 25760 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25760 was adopted. Vote: 11-0-0-0.

6b(10) ORD. NO. 25761 – Adopts an amendment to the Edenvale Redevelopment Plan to extend the date until which debt may be incurred in the Edenvale Redevelopment Project Area to January 1, 2004.

Documents filed: Proof of publication of title of Ordinance No. 25761 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25761 was adopted. Vote: 11-0-0-0.

6b(11) ORD. NO. 25762 – Adopts an amendment to the Guadalupe-Auzerais Redevelopment Plan to extend the date until which debt may be incurred in the Guadalupe-Auzerais Redevelopment Project Area to January 1, 2004.

Documents filed: Proof of publication of title of Ordinance No. 25762 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25762 was adopted. Vote: 11-0-0-0.

6b(12) ORD. NO. 25763 – Adopts an amendment to the Julian-Stockton Redevelopment Plan to extend the date until which debt may be incurred in the Julian-Stockton Redevelopment Project Area to January 1, 2004.

Documents filed: Proof of publication of title of Ordinance No. 25763 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25763 was adopted. Vote: 11-0-0-0.

6b(13) ORD. NO. 25764 – Adopts an amendment to the Market Gateway Redevelopment Plan to extend the date until which debt may be incurred in the Market Gateway Redevelopment Project Area to January 1, 2004.

Documents filed: Proof of publication of title of Ordinance No. 25764 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25764 was adopted. Vote: 11-0-0-0.

6b(14) ORD. NO. 25765 – Adopts an amendment to the Olinder Redevelopment Plan to extend the date until which debt may be incurred in the Olinder Redevelopment Project Area to January 1, 2004.

Documents filed: Proof of publication of title of Ordinance No. 25765 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25765 was adopted. Vote: 11-0-0-0.

6b(15) ORD. NO. 25766 – Adopts an amendment to the Park Center Redevelopment Plan to extend the date until which debt may be incurred in the Park Center Redevelopment Project Area to January 1, 2004.

Documents filed: Proof of publication of title of Ordinance No. 25766 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25766 was adopted. Vote: 11-0-0-0.

6b(16) ORD. NO. 25767 – Adopts an amendment to the Pueblo Uno Redevelopment Plan to extend the date until which debt may be incurred in the Pueblo Uno Redevelopment Project Area to January 1, 2004.

Documents filed: Proof of publication of title of Ordinance No. 25767 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25767 was adopted. Vote: 11-0-0-0.

6b(17) ORD. NO. 25768 – Adopts an amendment to the Rincon De Los Esteros Redevelopment Plan to extend the date until which debt may be incurred in the Rincon De Los Esteros Redevelopment Project Area to January 1, 2004.

Documents filed: Proof of publication of title of Ordinance No. 25768 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25768 was adopted. Vote: 11-0-0-0.

6b(18) ORD. NO. 25769 – Adopts an amendment to the San Antonio Plaza Redevelopment Plan to extend the date until which debt may be incurred in the San Antonio Plaza Redevelopment Project Area to January 1, 2004.

Documents filed: Proof of publication of title of Ordinance No. 25769 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25769 was adopted. Vote: 11-0-0-0.

6b(19) ORD. NO. 25770 – Adopts an amendment to the Alameda Redevelopment Plan to extend the date until which debt may be incurred in the Alameda Redevelopment Project Area to December 31, 2010.

Documents filed: Proof of publication of title of Ordinance No. 25770 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25770 was adopted. Vote: 11-0-0-0.

6b(20) ORD. NO. 25771 – Adopts an amendment to the Alum Rock Avenue Redevelopment Plan to extend the date until which debt may be incurred in the Alum Rock Avenue Redevelopment Project Area to December 31, 2010.

Documents filed: Proof of publication of title of Ordinance No. 25771 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25771 was adopted. Vote: 11-0-0-0.

6b(21) ORD. NO. 25772 – Adopts an amendment to the Story Road Redevelopment Plan to extend the date until which debt may be incurred in the Story Road Redevelopment Project Area to December 31, 2010.

Documents filed: Proof of publication of title of Ordinance No. 25772 submitted by the City Clerk.

Discussion/Action: Ordinance No. 25772 was adopted. Vote: 11-0-0-0.

Public Hearings Set by Council

6c(1) Adoption of a resolution initiating proceedings and setting a public hearing on February 16, 1999 at 7:00 p.m. on the reorganization of territory designated as Monterey Park #103 for the annexation to the City of San José of 60.55 acres of land, located on the south side of Curtner Avenue, opposite Stone Avenue, and the detachment of the same from the Central Fire District, Santa Clara County Library Service District and the Santa Clara Valley County Water District. CEQA: Resolution No. 65459. (Planning, Building, and Code Enforcement)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated January 7, 1999, recommending the adoption of said resolution.

Discussion/Action: Resolution No. 68678, entitled: “Resolution of the Council of the City of San José Initiating Reorganization Proceedings for Annexation and Detachment of Certain Uninhabited Territory Designated as Monterey Park #103 and Described Herein, and Giving Notice of Hearing on the Proposed Reorganization and Written Protests”, was adopted. Vote: 11-0-0-0.

Plans and Specifications

6d(1) TRACT NO. 9134 – North side of Sinclair Freeway (Highway 280), 100 feet southerly of the terminus of Woodborough Drive – Brookwood Partners, L.P., a California Limited Partnership by: DKB Homes LLC, a California Limited Liability Company, General Partner (Developer) – 18 single family detached residential units. Adoption of resolutions approving the plans, final map, and contract for Tract No. 9134. CEQA: ND. District 3. (Public Works)

Documents filed: None.

Discussion/Action: This item was deferred to February 2, 1999.

Contracts/Agreements

6e(1) Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with Concentra Managed Care Services, Inc. for workers’ compensation cost containment utilization review services, for the period January 1, 1999 to December 31, 1999, in an amount not to exceed $125,000 with up to four (4) one (1) year options. (Finance)

[Deferred from 8/25/98 - Item 6e(11) et al., and 12/15/98 - Item 6e(1)]

Documents filed: None.

Discussion/Action: This item was dropped from the agenda.

6e(2) Adoption of a resolution authorizing the City Manager to negotiate and execute agreements with:

(a) Diversified HealthCare Services to provide workers’ compensation medical bill review services and administer the preferred provider organization (PPO) services at a cost not to exceed $300,000 for the period January 1, 1999 to December 31, 1999, with the option to renew for two (2) years, subject to Council appropriation of funds.

(b) PHM Diagnostics, Inc. to provide workers’ compensation diagnostic testing organization services at a cost not to exceed $85,000 for the period January 1, 1999 to December 31, 1999, with the option to renew for two (2) years, subject to Council appropriation of funds.

(Finance)

Documents filed: None.

Discussion/Action: This item was deferred to February 9, 1999.

6e(3) Adoption of a resolution authorizing the City Manager to submit and execute an amendment to Airport Improvement Program (AIP) Grant 27 with the Federal Aviation Administration (FAA) for the Airport Acoustical Treatment Program (ACT) in the amount of $148,330, for a total amount of $2,148,330. CEQA: Exempt. (Airport)

Documents filed: Memorandum from Director of Finance, John V. Guthrie, dated December 3, 1998, recommending adoption of said resolution.

Discussion/Action: Resolution No. 68679, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Execute an Amendment to the Grant Agreement for AIP 27 with the Federal Aviation Administration for the Airport Acoustical Treatment Program (ACT Program) to Increase the Grant by the Amount of $148,330 to a Total Grant amount of $2,148,330, and to Accept the Grant Increase”, was adopted. Vote: 11-0-0-0.

6e(4) Approval of amendments to the employment agreements with Chris Hemingway and Dawn Wright, effective January 25, 1999. (Diquisto)

Documents filed: None.

Discussion/Action: The amendments to said employment agreements with Chris Hemingway and Dawn Wright were approved and their execution authorized. Vote: ^11-0-0-0.

6e(5) Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 1998-99 #17, and authorization for the Director of General Services to execute the purchase orders. (General Services)

Documents filed: Memorandum from Lynn Macy, Acting Director of General Services, dated January 7, 1999, recommending approval of said purchase order list.

Discussion/Action: The award of open purchase orders List #17 was approved and the Director of General Services authorized to execute the purchase orders. Vote: 11-0-0-0.

6e(6) Approval of award of purchase of an Andros Mark VI-A Remote Control Vehicle (RCV-Robot) for the Office of Emergency Services to Remotec, Inc. at a total cost of $174,073.10, including tax, as a sole source purchase and authorization for the Director of General Services to execute the purchase order. (General Services)

Documents filed: Memorandum from Lynn Macy, Acting Director of General Services, dated January 7, 1999, recommending award of purchase to Remotec, Inc. as a sole source purchase and authorization for the Director of General Services to execute the purchase order.

Discussion/Action: The award of purchase to Remotec, Inc. as a sole source purchase was approved and the Director of General Services authorized to execute the purchase order. Vote: 11-0-0-0.

6e(7) Report on bids and award of purchase of three (3) full-sized four-wheel drive enclosed vehicles for the Fire Department to the lowest responsive bidder, S&C Ford, at a total cost of $103,114.89, including tax, and authorization for the Director of General Services to:

(a) Execute the purchase order for the immediate purchase of three (3) four-wheel drive enclosed vehicles.

(b) Execute the purchase order for additional vehicles pursuant to the option vehicles at the same bid price for one (1) year only after sufficient funds have been appropriated.

(General Services)

Documents filed: Memorandum from Lynn Macy, Acting Director of General Services, dated January 7, 1999, recommending award of said purchase to the lowest responsive bidder, S&C Ford.

Discussion/Action: The award of purchase to the lowest responsive bidder, S&C Ford, was approved and the Director of General Services was authorized to execute the purchase order for the immediate purchase of three (3) four-wheel drive enclosed vehicles and to execute the purchase order for additional vehicles pursuant to the option vehicles at the same price bid for one (1) year only after sufficient funds have been appropriated. Vote: 11-0-0-0.

6e(8) Approval of a fourth amendment to the operating agreement for the operation of the San José Municipal Golf Course with Mike Rawitser Golf Shop, a California Corporation, reducing the area of the golf course by approximately 11,900 square feet needed for the replacement of the Oakland Road Bridge over Coyote Creek and the widening of Oakland Road. CEQA: ND. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 7, 1999, recommending approval of a fourth amendment to said agreement with Mike Rawitser Golf Shop.

Discussion/Action: The fourth amendment to said agreement with Mike Rawitser Golf Shop was approved and its execution authorized. Vote: 11-0-0-0.

6e(9) Approval of Contract Change Order No. 4 for the Finance Department Offices Remodel Project with Eddie Torrez Construction Company, Inc. in the amount of $24,914 with a 90-day time extension. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 7, 1999, recommending approval of Contract Change Order No. 4 with Eddie Torrez Construction Company, Inc.

Discussion/Action: Contract Change Order No. 4 for the Finance Department Offices Remodel Project with Eddie Torrez Construction Company, Inc., was approved and its execution authorized. Vote: 11-0-0-0.

6e(10) Approval of an agreement with Rajappan & Meyer Consulting Engineers, Inc. for consultant services for five (5) median island projects for the period January 1999 to June 2000. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 7, 1999, recommending approval of said agreement.

Discussion/Action: This item was dropped from the agenda.

6e(11) Approval of a first amendment to the agreement with Biggs Cardosa Associates for consultant services for the Tasman Drive Bridges over Coyote Creek Project to expand the scope of the agreement, at an additional cost of $69,000, for a total agreement amount of $769,000. CEQA: Resolution No. 66985. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 7, 1999, recommending approval of a first amendment to said agreement with Biggs Cardosa Associates.

Discussion/Action: The first amendment to said agreement with Biggs Cardosa Associates was approved and its execution authorized. Vote: 11-0-0-0.

6e(12) Approval of a second amendment to the agreement with Cottong & Taniguchi Landscape Architects for consultant services for the Pueblo Uno Streetscape project in the amount of $39,700, for a total agreement amount of $216,000. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 7, 1999, recommending approval of a second amendment to said agreement with Cottong & Taniguchi Landscape Architects.

Discussion/Action: The second amendment to said agreement with Cottong & Taniguchi Landscape Architects was approved and its execution authorized. Vote: ^11-0-0-0.

6e(13) Adoption of a resolution authorizing the City Manager to execute a third amendment to the Phase I cooperation agreement with the Evergreen Specific Plan (ESP) Developers authorizing the use of a portion of the interest accrued from ESP Developers’ cash deposits in place of Letters of Credit as a guarantee for the funding of the Priority Phase I Improvements. CEQA: Resolution No. 63179. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 7, 1999, recommending adoption of said resolution.

Discussion/Action: Resolution No. 68680, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Execute a Third Amendment to the Phase I Cooperation Agreement with the Evergreen Specific Plan Developers”, was adopted. Vote: 11-0-0-0.

Routine Legislation

6f(1) Adoption of a resolution authorizing the reorganization of territory designated as Orchard No. 147, which involves the annexation to the City of San José of approximately 5.73 acres of land, located at the southeast corner of Ringwood Avenue and McKay Drive, and the detachment of the same from the Central Fire Protection District and the County Library Service Area. CEQA: Resolution No. 65459. (Planning, Building and Code Enforcement)

[Deferred from 11/10/98 – Item 6f(3)]

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated January 14, 1999, recommending adoption of said resolution.

Discussion/Action: Resolution No. 68681, entitled: “Resolution of the Council of the City of San José Ordering the Reorganization of Certain Uninhabited Territory Designated as Orchard No. 147 Subject to Liability for General Indebtedness of the City”, was adopted. Vote: 11-0-0-0.

6f(2) (a) Adoption of a resolution accepting a gift of $25,000 from Pacific Bell for Berryessa Community Center art projects.

(b) Adoption of an appropriation ordinance and funding sources resolution amendments in the Gift Trust Fund in the amount of $25,000.

(City Manager’s Office)

Documents filed: Memorandum from Budget Director Larry D. Lisenbee, dated January 21, 1999, recommending approval of said appropriation ordinance and related revenue resolution amendments.

Discussion/Action: Resolution No. 68682, entitled: “A Resolution of the Council of the City of San José Accepting a Donation of Money from Pacific Bell Video Services in the Total Amount of $25,000 for Council District 4 Projects”; Ordinance No. 25774, entitled: “An Ordinance of the City of San José Amending Ordinance No. 25633 to Appropriate Moneys in the Gift Trust Fund in the Amount of $25,000 to Accept a Donation from Pacific Bell for Berryessa Community Center Art Projects; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, and Resolution No. 68683, entitled, “A Resolution of the City of San José Amending Resolution No. 68256 Setting Forth the Estimated Sources of Funds for the Fiscal Year 1998-99 to Adjust Revenues in the Gift Trust Fund”, were adopted. Vote: 11-0-0-0.

6f(3) Adoption of appropriation ordinance and funding sources resolution amendments in the Services for Redevelopment Capital Projects Fund with a net impact to the fund of $287,350, and adoption of a resolution making certain determinations regarding the expenditure of agency funds on certain public improvements. (City Manager’s Office)

Documents filed: Memorandum from Budget Director Larry D. Lisenbee, dated January 13, 1999, recommending approval of said appropriation ordinance and related revenue resolution amendments.

Discussion/Action: Ordinance No. 25775, entitled: “An Ordinance of the City of San José Amending Ordinance No. 25633 to Appropriate Moneys in the Services for Redevelopment Capital Projects Fund with a Total Net Impact to the Fund of $287,350 for Certain Redevelopment Agency Improvements; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”; Resolution No. 68684, entitled, “A Resolution of the City of San José Amending Resolution No. 68256 Setting Forth the Estimated Sources of Funds for the Fiscal Year 1998-99 to Adjust Revenues in the Services for Redevelopment Capital Projects Fund”, and Resolution No. 68685, entitled: “A Resolution of the Council of the City of San José Making Certain Determinations Consistent with California Health and Safety Code Section 33445 with Regard to Funding by the Redevelopment Agency of the City of San José of Certain Costs Incurred by the City in Fiscal Year 1998-99 in Connection with Certain Public Improvements”, were adopted. Vote: 11-0-0-0.

6f(4) Adoption of a resolution accepting a donation of $7,000 from the Friends of Cambrian Library to purchase materials for that branch. (Library)

Documents filed: Memorandum from City Librarian Jane Light, dated January 7, 1999, recommending adoption of said resolution.

Discussion/Action: Resolution No. 68686, entitled: “A Resolution of the Council of the City of San José to Accept the Donation of $7,000 from the Friends of Cambrian Library”, was adopted. Vote: 11-0-0-0.

6f(5) Adoption of appropriation ordinance and funding sources resolution amendments in the General Fund in the amount of $120,000 for the acquisition of a Year 2000 compliant latent identification workstation for the Cal-ID Project, in the Police Department, at no cost to the City. (Police/City Manager’s Office)

Documents filed: Memorandum from Police Chief William M. Lansdowne and Budget Director Larry D. Lisenbee, dated January 7, 1999, recommending approval of said appropriation ordinance and related revenue resolution amendments.

Discussion/Action: Ordinance No. 25776, entitled: “An Ordinance of the City of San José Amending Ordinance No. 25633 to Appropriate Moneys in the General Fund in the Amount of $120,000 for the Acquisition of a Year 2000 Compliant latent Identification Workstation for the Cal-ID Project; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, and Resolution No. 68687, entitled, “A Resolution of the City of San José Amending Resolution No. 68256 Setting Forth the Estimated Sources of Funds for the Fiscal Year 1998-99 to Adjust Revenues in the General Fund”, were adopted.

6f(6) Adoption of a resolution summarily vacating a portion of the landscape easement on the northerly side of Yerba Buena Road, westerly of Nieman Boulevard. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 7, 1999, recommending adoption of said resolution.

Discussion/Action: Resolution No. 68688, entitled: “Resolution of the Council of the City of San José Summarily Vacating a Portion of the Landscape Easement Lying on a Northerly Side of Yerba Buena Road, Westerly of Neiman Boulevard”, was adopted. Vote: 11-0-0-0.

6f(7) Adoption of a resolution summarily vacating a portion of a public service easement within Tract No. 7349 on Newhall Street, 200 feet north of Campbell Avenue. CEQA: Exempt. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 7, 1999, recommending adoption of said resolution.

Discussion/Action: Resolution No. 68689, entitled: “Resolution of the Council of the City of San José Summarily Vacating that Certain Portion of the Public Service Easement of Tract Number 7349 Located on the West Side of Newhall Street, 200 Feet North of Campbell Avenue’, was adopted. Vote: 11-0-0-0.

6f(8) Adoption of a resolution accepting an Easement Deed along the east side of Zanker Road north of Cisco Way to install and maintain a water line and all necessary appurtenances thereto from the Santa Clara Valley Transit Authority and authorizing the Director of Public Works to execute the necessary documents. CEQA: Resolution No. 66985. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 7, 1999, recommending adoption of said resolution.

Discussion/Action: Resolution No. 68690, entitled: “A Resolution of the Council of the City of San José Accepting an Easement Deed for Real Property Rights from the Santa Clara County Transit Authority and Authorizing the Director of Public Works to Execute the Necessary Documents to Complete the Transaction”, was adopted. Vote: 11-0-0-0.

6f(9) Acceptance of the Fourth Quarter 1998 San José Arena Authority Ticket Distribution Program Report. (San José Arena Authority)

Documents filed: Memorandum from the San José Arena Authority, dated January 5, 1999, providing the Fourth Quarter 1998 Ticket Distribution Program Report.

Discussion/Action: The Fourth Quarter 1998 San José Arena Authority Ticket Distribution Program Report was accepted. Vote: 11-0-0-0.

6f(10) Approval of City Auditor Gerald Silva’s travel calendar for the period January 1, 1999 through June 30, 1999. (City Auditor)

(Rules Committee referral 1/20/99)

Documents filed: Correspondence from City Auditor Gerald A. Silva, dated January 14, 1999, requesting approval for said travel.

Discussion/Action: The travel for City Auditor Silva was approved. Vote: 11-0-0-0.

6f(11) Approval of Council Member Margie Matthews’ travel to Seattle, Washington, on January 28-29, 1999, to tour Benaroya Symphony Hall and meet the architectural team. Funding: Redevelopment Agency. (Matthews)

Documents filed: None.

Discussion/Action: The travel for Council Member Matthews was approved. Vote: ^11-0-0-0.

END OF CONSENT CALENDAR

COMMISSION, COMMITTEE, AND STANDING REPORTS

7a Report of the Committee of the Whole – December 7, 1998

Documents filed: (1) Committee of the Whole report dated December 7, 1998. (2) Mayor Hammer’s FY 1999-2000 Direction and Priorities Message dated November 25, 1998. (3) City Manager’s Five-Year Economic Forecast and Revenue Projections Report for FY 2002-2004, for the General Fund and the Capital Improvement Program, dated November 1998. (4) Hard copies of transparency overheads used in the presentation of the Administrations’ Five-Year Economic Forecast and Revenue Projections by Budget Director Lisenbee.

(1) Mayor Hammer’s FY 1999-2000 Budget Direction & Priorities Message

The Committee accepted Mayor Hammer’s Budget Direction and Priorities for FY 1999-2000.

Discussion/Action: Upon motion by Council Member Fiscalini, seconded by Council Member Powers, and unanimously carried, the Committee of the Whole report and actions of December 7, 1998, were accepted. Vote: 11-0-0-0.

7b Report of the Rules Committee – January 20, 1999 (Partial)

Documents filed: The partial Rules Committee report of January 20, 1999, was accepted.

(5) Approve 1999 City-Sponsorship of State Legislation

(a) School Availability. Attachments: None.

The Committee approved City sponsorship of State legislation to track the effects of Proposition 1A on schools and housing prices and directed the Administration to work with local school districts and developers and report back to Council on their findings.

(b) Rental Car Facility Fees. Attachment: Memorandum from Director of Intergovernmental Relations, Betsy Shotwell, dated January 19, 1999, recommending that the City of San José sponsor a state legislative proposal with regard to the way that rental car facility fees are charged.

The Committee approved City sponsored legislation to allow rental car companies to identify fees for consolidated rental car facilities and common use transportation projects at the San José International Airport separately from rental charges.

(c) Court Procedures with Regard to Permits for First Amendment Uses. Attachment: Memorandum from City Attorney Joan R. Gallo, dated January 13, 1999, recommending the City sponsor legislation to amend Code of Civil Procedure provisions in order to allow for expedited judicial review of the City’s decisions to deny, revoke, or suspend permits involving expressive activity protected by the First Amendment.

The Committee approved City sponsored legislation to amend Code of Civil Procedure provisions to deny, revoke or suspend permits involving expressive activity protected by the First Amendment.

Discussion/Action: Upon motion by Vice Mayor Diaz, seconded by Council Member Fiscalini, and unanimously carried, the partial Rules Committee report and actions of January 20, 1999, were accepted. Vote: 11-0-0-0.

7f Youth, Seniors, and Neighborhood Services Committee –December 14, 1998

Documents filed: Youth, Seniors, and Neighborhood Services report of December 14, 1998.

(1) Parks and Community Facilities and Programs Strategic Plan Update. Attachment: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated December 2, 1998, providing said update report.

The Committee accepted the report, requested the names of the individuals on the Advisory Committee, and information regarding procedures for noticing the Advisory Committee meetings be provided at the next Youth, Seniors and Neighborhood Services Committee meeting.

(2) Neighborhood Revitalization Strategy Update. Attachment: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, and from Director of Planning, Building and Code Enforcement, James Derryberry, dated December 7, 1998, providing said update report.

The Committee noted and filed the report.

(3) Senior Nutrition Site Expansion Proposal. Attachment: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated December 7, 1998, providing said report.

The committee accepted the report.

(4) Graffiti Restitution Update. Attachment: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated December 10, 1998, recommending acceptance of the report and referral of a one-time budget augmentation to increase the effectiveness of the Restitution Program, as described in Option 3 below, to the Mid-Year Budget Process.

The committee accepted Option 3 as stated in the report and referred the item to the Budget Process.

(5) Oral petitions

None.

(6) Adjournment

The meeting was adjourned to 2:10 p.m.

Discussion/Action: Upon motion by Council Member Shirakawa, seconded by Council Member Powers, and unanimously carried, the Youth, Seniors, and Neighborhood Services Committee report and actions of December 14, 1998, were accepted. Vote: ^11-0-0-0.

LAND USE AND DEVELOPMENT

8a PUBLIC HEARING on the designation of the Borchers Brothers Building, located at 396 N. First Street on the east side of N. First Street, 150 feet north of Basset Street, as a landmark of special historic, architectural, cultural, aesthetic, or value of a historic nature. CEQA: Exempt. (Historic Landmarks Commission)

(Continued from 11/24/98 – Item 8c)

Documents filed: None.

Discussion/Action: This item was continued to February 16, 1999.

8b PUBLIC HEARING ON CONFORMING REZONING of the property located at the southeast corner of Almaden Road and McKean Road, from A(PD) Planned Development to A(PD) Planned Development, to allow a change in setbacks to 14 single-family detached residences previously approved and adoption of an urgency ordinance and approval of an ordinance that would allow the said zoning standards to be effective immediately on 2.54 gross acres (Duc Development, Owner/Developer). CEQA: Negative Declaration. Director of Planning, Building, and Code Enforcement recommends approval. No Planning Commission action required.

PDC 98-12-106 – District 10

Documents filed: (1) Staff report dated January 8, 1999, recommending approval of said rezoning request. (2) Proof of publication of Notices of Public Hearing submitted by the City Clerk.

Discussion/Action: Upon motion by Council Member Fiscalini, seconded by Council Member Powers, and unanimously carried, Ordinance No. 25777, entitled: “Urgency Ordinance of the City of San José Rezoning Certain Real Property Situated at the Southeast Corner of Almaden Road and McKean Road”, was adopted, and Ordinance No. 25778, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated at the Southeast Corner of Almaden Road and McKean Road”, was passed for publication. Vote: 11-0-0-0.

GENERAL GOVERNMENT

9a (1) Designate the team of D. W. Sivers Company and The Hoop USA, Inc. as the successful candidate from the City’s Request for Qualifications process for the potential development and operation of an indoor court sports facility at the City-owned property located near the southwest corner of Tully Road and Kenoga Drive.

(2) Authorization for staff to enter into exclusive negotiations with the Sivers team for the purposes of preparing a design for the proposed facility and proposed business terms for Council consideration.

(City Manager’s Office)

Documents filed: None.

Discussion/Action: This item deferred to February 2, 1999.

9b Discussion of the public dance concert policy for the San José McEnery Convention Center.

(Deferred from 12/15/98 – Item 9t)

Documents filed: None.

Discussion/Action: This item deferred to February 9, 1999.

9c (1) Acceptance of the final management study report on the San José Police Department prepared by the Police Executive Research Forum (PERF).

(2) Direction to the Administration to prepare an action plan for key recommendations in the report to be reviewed during the 1999-2000 budget process and periodically thereafter.

(Police/City Manager’s Office)

(Deferred from 12/15/98 – Item 9z)

Documents filed: (1) Memorandum from City Manager V.K. Williams and Chief of Police William M. Lansdowne, dated December 8, 1998, recommending Council accept the report and direct the Administration to prepare an action plan for key recommendations in the report to be reviewed during the 1999-2000 budget process and periodically thereafter. (2) Report entitled, “Management Study of the San José Police Department, Final Report, dated November 1998, prepared by the Police Executive Research Forum.

Discussion/Action: Senior Deputy City Manager Darrell Dearborn stated the study originated as one of the major initiatives of the New Realities Task Force in 1996 and has moved through a comprehensive review of the services, organization and resources of the Police Department, undertaken by the Administration through the agreement with the Police Executive Research Forum (PERF), and through a charge to the City Auditor to review the police patrol manpower allocation, scheduling, and related aspects which pertain to the collective bargaining process. He stated the consultant and City Auditor have been in periodic discussions and the Auditor’s report is expected to be completed in the next two-three months. He stated PERF was selected through an RFP process in which the Administration and the Police Officers’ Association participated; that the project team headed by Craig Fraser undertook the extensive study effort, and in February, 1998 the high priority recommendations developed to date by the project team were presented to Council and several were incorporated into the 1998-99 budget. He stated the completed study includes two additional major elements of the study, i.e., review of 50-plus activities, consisting of benchmarking and evaluation of the department’s performance and services, and a unit-by-unit evaluation with recommendations for improvements. He introduced Mr. Craig Fraser, Principal Project Manager, Police Executive Research Forum, who presented an overview and priority recommendations of the report. Of the 50 areas reviewed using a “benchmark of best practices” approach, he stated most ranked well, with the lowest ranking going to information management, which will be addressed by the City’s new Automated Information System. He stated the highest priority is the development of a strategic approach to community policing and problem solving by creation of a strategic planning process to address goal identification and measurement criteria, quality of life enhancement through crime prevention, collaborative partnerships and community engagement, and proactive problem solving at all levels of the organization. Highlighting other high priority issues, he discussed juvenile operations, data entry streamlining, technological benefits, civilization efforts, space and equipment needs, and employee development revolving around community policing as a strategy. He stated it is evident the department is committed to providing the highest service, working with both residents and visitors in San José to help prevent crime, violence and disorder. Chief of Police William Lansdowne thanked the City Manager and City Council for commissioning the study and stated the extraordinary quality of service which has made the City of San José one of the safest city of its size in the country is due to the quality of the personnel and support from both the Council and the community. He stated he is in agreement with the recommendations to expand community policing efforts and decentralize services, address space needs, improve training, and provide enhanced technology, and noted that some recommendations may be not implementable due to union and MOU issues. He reported that redistricting will occur in March of 1999, that negotiations are in progress for a new training facility, and the AIS program which will be functional in November of 1999 will put the department in the forefront of cutting-edge technology. Police Chief Lansdowne recommended Council accept the report in its entirety and stated it is the Administration’s intent to provide to the Council for the next budget year a comprehensive recommendation to implement all of the recommendations which are possible to implement over the next two-three years. Mayor Gonzales requested a report back on any short-term improvements which could be implemented at minimal cost and time prior to installation of the AIS system. Council Member Diaz stated there is a need for community policing programs in areas of the City other than Crackdown areas and expressed concerns about the affect that six month rotations have on community policing efforts. Police Chief Lansdowne stated redistricting will facilitate enhanced community policing efforts and he would support one-year officer assignments and will raise the issue with employee representatives since officer rotation is a meet and confer issue. Council Member Fiscalini stated Police Chief Lansdowne needs more flexibility in meeting the training needs of the department and requested Staff report back with a full analysis of demands on the Police Academy pertaining to staffing, costs and facility needs. Council Member Diquisto stated that addressing the inadequacy of the training facilities should be a high priority and the City should conduct its own training facilities using City personnel, and coordinate with fire services. Council Member Dando expressed support for a City-owned and operated academy, coordinated between Police and Fire Departments, expanding community policing into neighborhoods, and recommended if a stand-alone academy is developed, that a substation in the south of the City be considered. Council Member Dando suggested quarterly reports on the apprehension of graffiti perpetrators be filed with the Council and additional funding, if needed, be referred to the budget process. Gerald A. Norve addressed the Council regarding police overtime. Mayor Gonzales requested the technology issue report back through the Finance and Technology Committee. Upon motion by Council Member Fiscalini, seconded by Council Member Powers, and unanimously carried, the report was accepted and Staff recommendations dated December 8, 1998, were approved, the Administration was directed to prepare an action plan for key recommendations in the report to be reviewed during the 1999-2000 budget process and periodically thereafter; and directed the Administration to respond to issues raised by the Mayor and Council Members and report back on: (1) the feasibility of implementing short-term information technology improvements prior to completion of the AIS, reporting to the Finance and Technology Committee; (2) Police Academy staffing and facility needs and the feasibility of a City owned and operated Academy; (3) establishing neighborhood substations; (4) recommendations in the study broken down by feasibility with an immediate, intermediate and long-term implementation timeline, and (5) quarterly reports on graffiti violator apprehensions. Vote: 11-0-0-0.

9g Acceptance of the Annual Convention and Cultural Facilities Performance Report

[Housing and Community Development Committee referral 12/7/98 – Item 7d(3)]

(Deferred from 1/19/99 – Item 9a)

Documents filed: See Item 7d(3) in the minutes of January 19, 1999, for documents filed.

Discussion/Action: Nancy Johnson, Director of the Department of Conventions, Arts and Entertainment, made the presentation of the Annual Department of Conventions, Arts and Entertainment Performance Report, with the aid of a video presentation. Upon motion by Council Member Fiscalini, seconded by Council Member Powers, and unanimously carried, the report was accepted. Vote: 11-0-0-0.

9d Adoption of a resolution authorizing the City Manager to apply for and execute upon receipt a grant with the Federal Aviation Administration (FAA) for the Airport Acoustical Treatment Program (ACT) in the amount of $1,532,490. CEQA: Resolution No. 67380. (Airport)

Documents filed: Memorandum from Aviation Director Ralph G. Tonseth, dated January 7, 1999, recommending adoption of said resolution.

Discussion/Action: Upon motion by Council Member Fiscalini, seconded by Council Member Powers, and unanimously carried, Resolution No. 68691, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Execute and Submit an Application to the Federal Aviation Administration for a Grant for the Airport Acoustical Treatment Program (ACT Program) in an Amount Not to Exceed $1,532,490, to Accept the Grant if Awarded, and to Execute All Related Documents”, was adopted. Vote: 11-0-0-0.

9e Report on bids and award of contract for the San José Family Camp Restrooms, Toulumne County to the low bidder, Restrooms Facilities Corporation, Inc., in the amount of $382,446. CEQA: Exempt. (Public Works)

Documents filed: Memoranda from Director of Public Works, Ralph A. Qualls, Jr., dated January 7 and January 21, 1998, recommending award of contract to low bidder Restrooms Facilities Corporation, Inc.

Discussion/Action Upon motion by Council Member Fiscalini, seconded by Council Member Powers, and unanimously carried, the award of contract to the low bidder, Restrooms Facilities Corporation, Inc. was approved and its execution authorized. Vote: 11-0-0-0.

9f Adoption of a resolution finding that the pavement repair of the number one (left) lane of Monterey Highway approximately 1,100 feet north of Blossom Hill Road and the expenditure of funds for the repair are of urgent necessity for the preservation of life, health, and property, waiving formal bidding requirements for the award of contract for the project, as authorized by Section 1217 of the City Charter, and ratifying the award of a contract for the Monterey Highway Road Repair Project to the Pressure Grout Company, Inc., in the amount of $302,391 and a contingency in the amount of $30,000. CEQA: Exempt. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 7, 1999, recommending adoption of said resolution.

Discussion/Action: William J. Garbett addressed the Council in opposition to the proposal. Upon motion by Council Member Fiscalini, Council Member Dando, and unanimously carried, Resolution No. 68692, entitled: “A Resolution of the Council of the City of San José Waiving the Bidding Requirements of the City Charter as Authorized by Section 1217 for the Monterey Highway Road Repair Project and Ratifying the Award of Contract to Pressure Grout Company, Inc., in the Amount of $302,391 with a Contingency of $30,000”, was adopted. Vote: 11-0-0-0.

9h (1) Approval of the appointment of Frank Fiscalini as Vice-Mayor. (Mayor)

(2) Approval of additional 1999-2000 Council Committee and liaison assignments.

(Mayor)

Documents filed: Memorandum from Mayor Gonzales, dated January 22, 1999, recommending Frank Fiscalini be appointed Vice Mayor, and the appointment of Council Member Diquisto to the Deferred Compensation Board, Council Members Chavez and Diaz to the Santa Clara County VTA Policy Advisory Board East Valley/Downtown; Environmental Services Director Carl Mosher to the Silicon Valley Pollution Prevention Center, and Council Member Shirakawa to the Santa Clara County Pollution Prevention Committee.

Discussion/Action: Upon motion by Council Member Powers, seconded by Council Member Dando, and unanimously carried, the appointment of Frank Fiscalini as Vice-Mayor and the proposed additional 1999-2000 Council Committee and Liaison assignments were approved. Vote: 11-0-0-0.

FISCAL AFFAIRS

10a PUBLIC HEARING and approval of an ordinance establishing an Underground Utility District at McKee Road and Toyon Avenue. CEQA: Exempt. (Public Works)

Documents filed:(1) Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 15, 1999, recommending approval of said ordinance. (2) Certificate of Mailing of Notice of Publication, submitted by the Department of Public Works.

Discussion/Action: Upon motion by Council Member Fiscalini, seconded by Council Member Diquisto, and unanimously carried, Ordinance No. 25779, entitled: “An Ordinance of the City of San José Establishing an underground Utility District at McKee Road and Toyon Avenue”, was passed for publication. Vote: 11-0-0-0.

JOINT CITY COUNCIL/REDEVELOPMENT AGENCY ITEMS

The Council of the City of San José convened the Redevelopment Agency Board at 3:09 p.m. to consider Item 11a in a joint session.

11a Adoption of resolutions by the City Council and Agency Board

(1) Accepting the summary of costs and the findings of the revised Summary Report and the reuse value and findings of the revised Reuse Appraisal pursuant to California Health and Safety Code 33433, for the Market Gateway Rental Project; and

(2) Approving an amendment to the Disposition and Development Agreement with Market Gateway, LLC, for the Market Gateway Rental Project located at the northwest corner of the intersection of South Market Street and Pierce Avenue, allowing for an increase in private financing to an amount approximating $6,314,000, and making other related changes.

CEQA: Resolution No. 57035. (Redevelopment Agency)

Documents filed: None.

Discussion/Action: This item was deferred to the Redevelopment Agency Board meeting of February 18, 1999.

The Council of the City of San José adjourned the Redevelopment Agency Board portion of the meeting at 3:10 p.m.

ORAL COMMUNICATIONS

(1) Nellie Lowe addressed the Council on a citation appeal issue.

(2) Ross Signorino spoke on issues relating to the relocation of City Hall.

(3) Dale Warner, Celtic Coalition of Santa Clara County, spoke on ethnic and cultural issues, and filed a statement for the public record.

The Evening Session of the City Council Meeting was canceled and the item scheduled to be heard at 7:00 p.m. was deferred as indicated.

PUBLIC HEARINGS

15a PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at The Alameda and bounded by Bush Street, Wilson Street and West San Fernando Street, from M-1 Manufacturing Zoning District to A(PD) Planned Development Zoning District, to allow up to 248 multi-family attached dwelling units and approximately 8,000 square feet of commercial uses, and approximately 0.72 acres of public parkland on 5.06 gross acres (Vitale, Owner; Avalon Bay, Developer).

PDC 98-01-012 - District 6

(Continued from 12/15/98 – Item 15g)

Documents filed: None.

Discussion/Action: This item was continued to March 2, 1999.

ADJOURNMENT

The Council of the City of San José adjourned the City Council meeting at 3:15 p.m. in memory of Christina Williams, in memory of Oakland Police Officer James Williams, Jr., and in memory of Oakland Firefighter Tracy Toomey.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK