CSJ Council Meeting Minutes, May 18, 1999

MINUTES OF THE CITY COUNCIL

SAN JOSE, CALIFORNIA

TUESDAY, MAY 18, 1999

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

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

Absent: Council Members: None.

Upon motion unanimously adopted, the City Council recessed to a Closed Session at 9:35 a.m. in Room 600 to (A) confer with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9 Subsection (a); to consider cases of City of San José vs. Hyundai America; and Sekany, et al. vs. City of San José; and (B) to confer with Legal Counsel regarding anticipated litigation and to discuss a matter pertaining to the initiation of litigation pursuant to subdivision (c) of Section 54956.9 of the Government Code.

By unanimous consent, Council reconvened from the Closed Session, recessed at 11:50 a.m., and reconvened at 1:30 p.m. in Council Chambers, City Hall.

Present: Council Members: Chavez, Dando, Diaz, Diquisto, Fiscalini, LeZotte, Matthews (arrived at 1:50 p.m.), Powers, Shirakawa, Jr., Woody; Gonzales

Absent: Council Members: None.

INVOCATION

The Reverend Lindi Ramsden, Senior Minister, First Unitarian Church of San José, delivered the invocation. (District 5)

PLEDGE OF ALLEGIANCE

Mayor Gonzales led in the Pledge of Allegiance.

ORDERS OF THE DAY

Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers and unanimously carried, the Orders of the Day and the Amended Agenda were approved. Vote: 10-0-1-0. Absent: Matthews.

CEREMONIAL ITEMS

5a Presentation of a commendation to Sam Manoucheri for his outstanding community service. (Dando)

(Rules/Agency Rules Committee referral 5/12/99)

Documents Filed: None.

Discussion/Action: Mayor Gonzales and Council Member Dando presented the commendation to 11-year old Sam Manoucheri, 5^th grader at Williams Elementary School, in recognition of his generosity during the last holiday season in providing the Santa Clara County Children’s Shelter with more than 500 gifts. Accompanied by his parents, Sam described his efforts in assisting the children of Kosovo by collecting funds for food and shelter and transporting the aide to UNICEF for distribution in Kosovo. On behalf of the City Council, Mayor Gonzales extended the City’s appreciation to Sam for his generosity and commitment to the community.

5b Presentation of a proclamation declaring May 18, 1999 as Murry Frymer Day. (Mayor)

(Rules/Agency Rules Committee referral 5/12/99)

Documents Filed: None.

Discussion/Action: Mayor Gonzales presented the proclamation to Murry Frymer in recognition of his retirement from daily journalism.

5e Presentation of a proclamation declaring the week of May 16-22, 1999 as Public Works Week. (Public Works)

(Rules/Agency Rules Committee referral 5/12/99)

Documents Filed: None.

Discussion/Action: Mayor Gonzales presented the proclamation to Director of Public Works, Ralph A. Qualls, Jr., who accepted it on behalf of the more than 1500 City employees providing public works services in five departments represented by Directors Wayne Tanda, Carl Mosher, Steve Yoshino, and Bill Potter. Ralph Qualls stated the American Public Works Association commissions a poster each year to acknowledge public works practitioners throughout the United States, Canada, and Puerto Rico for services provided the residents. He displayed and presented to Mayor Gonzales a copy of the poster depicting activities of public works throughout the Nation. The City Council joined Acting City Manager, Debra J. Figone in welcoming former Director of Information Technology and General Services, Ellis Jones, who was accompanied by a delegation of MIS professionals visiting from Romania as part of a program sponsored by US AID; and in welcoming former City Manager, Gerald Newfarmer. The guests were asked to stand and be recognized.

CONSENT CALENDAR

Upon motion by Vice Mayor Fiscalini, seconded by Council Member Diaz and unanimously carried, the Consent Calendar was approved and the below listed actions were taken as indicated. Vote: 10-0-1-0. Absent: Matthews.

Ordinances for Final Adoption

6b(1) ORD. NO. 25832 – Rezones certain real property situated at the west side of South Sixth Street, 1,020 feet southerly of East William Street. C 99-02-013

Documents Filed: Proof of publication of the title of Ordinance No. 25832 dated May 11, 1999, submitted by the City Clerk.

Discussion/Action: Ordinance No. 25832 was adopted. Vote: 10-0-1-0. Absent: Matthews.

6b(2) ORD. NO. 25833 – Rezones certain real property situated on the east side of Dove Hill Road, 240 feet southerly of Colt Way. PDC 98-12-095

Documents Filed: Proof of publication of the title of Ordinance No. 25833 dated May 11, 1999, submitted by the City Clerk.

Discussion/Action: Ordinance No. 25833 was adopted. Vote: 10-0-1-0. Absent: Matthews.

6b(3) ORD. NO. 25834 – Rezones certain real property situated at the north side of Grand Boulevard between North First Street and Archer Street. PDC 98-08-057

Documents Filed: Proof of publication of the title of Ordinance No. 25834 dated May 11, 1999, submitted by the City Clerk

Discussion/Action: Ordinance No. 25834 was adopted. Vote: 10-0-1-0. Absent: Matthews.

Public Hearings Set by Council

6c(1) Adoption of a resolution of intention to:

(a) Form Community Facilities District 5

(Silver Creek Valley – Central Area).

(b) Set the voting procedure.

(c) Set a public hearing on June 22, 1999 at 1:30 p.m.

(Public Works)

Documents Filed: None

Discussion/Action: This item was dropped.

Contracts/Agreements

6e(1) Approval of a lease of Airport premises with A. P. Enterprises, A Division of ADSD, Inc. for a term of five (5) years for the period June 1, 1999 to May 31, 2004, with projected annual revenue to the City in the amount of $2,400. (Airport)

Documents Filed: Memorandum from Director of Aviation, Ralph G. Tonseth, dated April 29, 1999, recommending Council approve said lease.

Discussion/Action: The lease of Airport premises with A. P. Enterprises was approved and execution of the lease authorized. Vote: 10-0-1-0. Absent: Matthews.

6e(2) Approval of a consultant agreement with Steven Colby for technical assistance in developing contingency plans for Y2K compliance to the Process Control System at the San José/Santa Clara Water Pollution Control Plant (WPCP), for the period June 1, 1999 to May 31, 2000, in an amount not to exceed $75,000.

(Environmental Services)

Documents Filed: None.

Discussion/Action: This item was deferred to May 25, 1999.

6e(3) Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 1998-99 # 29, and authorization for the Director of General Services to execute the purchase orders. (General Services)

Documents Filed (1) Memorandum from Director of General Services, Steve S. Yoshino, dated April 29, 1999, recommending Council approve said open purchase orders list, and authorize the Director of General Services to execute the purchase orders. (2) Letter from San José/Santa Clara Water Pollution Control Plant, Treatment Plant Advisory Committee Chairperson, Bob Livengood, dated May 14, 1999, recommending approval to award said open purchase orders list.

Discussion/Action: The award of open purchase orders List No. 29 for FY 1998-99 was approved and execution of the purchase orders authorized. Vote: 10-0-1-0. Absent: Matthews.

6e(4) Approval of award of purchase of scum troughs to U.S. Filter/Envirex at a total cost of $99,849.80, including tax, as a sole source purchase, and authorization for the Director of General Services to execute the purchase order. (General Services)

Documents Filed: (1) Memorandum from Director of General Services, Steve S. Yoshino, dated April 29, 1999, recommending Council award said purchase to U.S. Filter/Envirex, as sole source purchase pursuant to Subsection 4.12.030.D of the San José Municipal Code, and authorize the Director of General Services to execute the purchase order. (2) Letter from San José/Santa Clara Water Pollution Control Plant, Treatment Plant Advisory Committee Chairperson, Bob Livengood, dated May 14, 1999, recommending approval of said purchase.

Discussion/Action: The award of purchase to U.S. Filter/Envirex, as sole source purchase, was approved and execution of the purchase order authorized. Vote: 10-0-1-0. Absent: Matthews.

6e(5) Approval of award of purchase of non-metallic sludge collector components and stainless steel parts to U.S. Filter/Envirex, as a sole source purchase, at a total cost of $116,611.23, including tax, and authorization for the Director of General Services to execute the purchase order. (General Services)

Discussion/Action: The award of purchase to U.S. Filter/Envirex, as sole source purchase, was approved and execution of the purchase order authorized. Vote: 10-0-1-0. Absent: Matthews.

6e(6) Approval of award of purchase of two (2) Ammonia Meter Systems to FPM Analytics Inc. at a total cost of $89,847.50, including tax, as a sole source purchase, and authorization for the Director of General Services to execute the purchase order. (General Services)

Documents Filed: (1) Memorandum from Director of General Services, Steve S. Yoshino, dated May 10, 1999, correcting the project number on the Budget Reference. (2) Memorandum from Director of General Services, Steve S. Yoshino, dated April 29, 1999, recommending Council award said purchase to FPM Analytics Inc., as sole source purchase pursuant to Subsection 4.12.030.D of the San José Municipal Code, and authorize the Director of General Services to execute the purchase order. (3) Letter from San José/Santa Clara Water Pollution Control Plant, Treatment Plant Advisory Committee Chairperson, Bob Livengood, dated May 14, 1999, recommending approval of said purchase.

Discussion/Action: The award of purchase to FPM Analytics Inc., was approved and execution of the purchase order authorized. Vote: 10-0-1-0. Absent: Matthews.

6e(7) Adoption of a resolution authorizing the City Manager to negotiate and execute a first amendment to the agreement with Moore Iacofano Goltsman (MIG) for additional outreach services for the development of the Parks Strategic Plan and the preparation of a Therapeutic Services and Facility Concept Master Plan, increasing the compensation by $143,000, from $250,000 to $393,000.

(Parks, Recreation and Neighborhood Services)

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated April 29, 1999, recommending Council adopt said resolution.

Discussion/Action: Resolution No. 68860, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Amendment to the Agreement With Moore Iacofano Goltsman to Expand the Scope of Services in an Additional Amount Not to Exceed $143,000, for Total Compensation Not to Exceed $393,000”, was adopted. Vote: 10-0-1-0. Absent: Matthews.

6e(8) Approval of a continuation agreement with Fehr and Peers Associates for the preparation of the Commuter Bicycle Corridor Study, extending the term of the agreement from August 30, 1998 to December 31, 1999, at no additional cost to the City. (Public Works)

Documents Filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated April 29, 1999, recommending Council approve said continuation agreement.

Discussion/Action: William J. Garbett spoke against the proposed action. The continuation agreement with Fehr and Peers Associates was approved and its execution authorized. Vote: 10-0-1-0. Absent: Matthews.

6e(9) Approval of continuation agreements for engineering consultant services in support of the South Bay Water Recycling Project at no additional cost, with the following firms:

(a) Brian Kangas Foulk, for a time extension to June 30, 2000.

(b) Boyle Associates, for a time extension to June 30, 2000.

(c) Brown & Cadwell, for a time extension to June 30, 2000.

(d) Black & Veatch, for a time extension to June 30, 1999.

(e) Metcalf & Eddy, for a time extension to June 30, 2000.

(Public Works)

Documents Filed: (1) Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated April 29, 1999, recommending Council approve said continuation agreements. (2) Letter from San José/Santa Clara Water Pollution Control Plant, Treatment Plant Advisory Committee Chairperson, Bob Livengood, dated May 14, 1999, recommending approval of said purchase.

Discussion/Action: William J. Garbett spoke against the proposed action. The continuation agreements with Brian Kangas Foulk, Boyle Associates, Brown & Cadwell, Black & Veatch, Metcalf & Eddy were approved and execution of the agreements authorized. Vote: 10-0-1-0. Absent: Matthews.

6e(10) Approval of Contract Change Order No. 5 for a Silver Creek Linear Park Phase II Project with J. R. Clark Company, for a 120 calendar day time extension to the term of the contract, from February 15, 1999 to May 30, 1999, at no additional cost to the City. CEQA: Negative Declaration. (Public Works)

Documents Filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated April 29, 1999, recommending Council approve said contract change order.

Discussion/Action: William J. Garbett spoke against the proposed action. Contract Change Order No. 5 with J. R. Clark Company was approved and its execution authorized. Vote: 10-0-1-0. Absent: Matthews.

6e(11) Adoption of a resolution approving an agreement with Blanche Medrano, Trustee of the Medrano Living Trust dated April 23, 1990, for the purchase of a parcel of land and a Right-of-Entry to adjoining land located along McLaughlin Avenue between Appian Lane and William Street, in the amount of $15,800, and authorization for the Director of Public Works to execute the necessary documents to complete the transaction. CEQA: Negative Declaration. (Public Works)

Documents Filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated April 29, 1999, recommending Council adopt said resolution.

Discussion/Action: Resolution No. 68861, entitled: “A Resolution of the Council of the City of San José (i) Approving An Agreement With Blanche Medrano, as Trustee for the Medrano Living Trust, for the Purchase of a Parcel of Land and a Right of Entry to Adjoining Land Located Along McLaughlin Avenue Between Appian Lane and William Street in the Amount of $15,800.00; and (ii) Authorizing the Director of Public Works to Execute All Necessary Documents to Complete the Transaction”, was adopted. Vote: 10-0-1-0. Absent: Matthews.

6e(12) Adoption of a resolution approving an agreement with J. Guadalupe Robles, Jesse Robles, and Irma Robles, for the purchase of a parcel of land and a Right-of-Entry to adjoining land located along McLaughlin Avenue between Appian Lane and William Street, in the amount of $14,250, and authorization for the Director of Public Works to execute the necessary documents to complete the transaction. CEQA: Negative Declaration. (Public Works)

Documents Filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated April 29, 1999, recommending Council adopt said resolution.

Discussion/Action: Resolution No. 68862, entitled: “A Resolution of the Council of the City of San José (i) Approving An Agreement With J. Guadalupe Robles, Jess Robles and Irma Robles, for the Purchase of a Parcel of Land and a Right of Entry to Adjoining Land Located Along McLaughlin Avenue Between Appian Lane and William Street in the Amount of $14,250.00; and (ii) Authorizing the Director of Public Works to Execute All Necessary Documents to Complete the Transaction”, was adopted. Vote: 10-0-1-0. Absent: Matthews.

6e(13) Approval of a first amendment to the agreement with Minh Le for leadership development services for the Department of Streets and Traffic, increasing the compensation by $19,200, from $49,650 to $68,850, and extending the term of the agreement by six (6) months, from July 1, 1999 to December 31, 1999.

(Streets and Traffic)

Documents Filed: Memorandum from Director of Streets and Traffic, Wayne K. Tanda, dated April 29, 1999, recommending Council approve the first amendment to said agreement.

Discussion/Action: The first amendment to the development services agreement with Minh Le was approved and execution of the amendment authorized. Vote: 10-0-1-0. Absent: Matthews.

Routine Legislation

6f(1) Adoption of appropriation ordinance amendments in the Fire Construction and Conveyance Tax Fund to provide funding for the Fire Station 15 Seismic Improvements Project. (City Manager’s Office)

Documents Filed: Memorandum from Budget Director, Larry D. Lisenbee, dated April 29, 1999, recommending Council approve said appropriation ordinance amendments in the Fire Construction and Conveyance Tax Fund.

Discussion/Action: Ordinance No. 25836, entitled: “An Ordinance of the City of San José Amending Ordinance No. 25633 Which Appropriates Moneys in the Fire Construction and Conveyance Tax Fund in the Amount of $32,000, for the Fire Station 15 Seismic Improvements Project; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, was adopted. Vote: 10-0-1-0. Absent: Matthews.

6f(2) Approval of an ordinance amending Section 1.15.070 of Chapter 1.15 of Title 1 of the San José Municipal Code to extend the time in which a recipient of a citation may apply for an advance deposit hardship waiver from 10 days to 15 days after the date the citation was issued. (Finance)

Documents Filed: Memorandum from Director of Finance, John V. Guthrie, dated April 29, 1999, recommending Council adopt said ordinance.

Discussion/Action: Ordinance No. 25837, entitled: “An Ordinance of the City of San José Amending Section 1.15.070 of Chapter 1.15 of Title 1 of the San José Municipal Code to Extend the Period of Time in Which to Apply for an Advance Deposit Hardship Waiver in Connection With Requesting a Hearing to Challenge an Administrative Citation”, was passed for publication. Vote: 10-0-1-0. Absent: Matthews.

6f(3) Approval of an ordinance amending Chapter 17.12 of Title 17 of the San José Municipal Code (SJMC) to adopt the 1998 California Fire Code (CFC) with local amendments:

(a) To continue existing administrative provisions and local requirements related to fire prevention permitting, site access, storage, handling, and use of hazardous materials; and

(b) To adopt new more restrictive requirements relating to fire protection systems and equipment, including sprinklers and construction standpipes, and panic hardware for outdoor enclosures.

CEQA: Exempt. (Fire)

Documents Filed: (1) Supplemental memorandum from Acting Fire Chief William B. Staples, and Director of Planning, Building and Code Enforcement James R. Derryberry, dated May 14, 1999, clarifying the language in Item 1 on page 2 of the Fire Department’s May 6, 1999 memorandum and on page 3 of the PBCE April 29, 1999 memorandum for the adoption of the Uniform Building Codes. (2) Memorandum from Acting Fire Chief William B. Staples, dated May 6, 1999, recommending Council approve said ordinance.

Discussion/Action: Ordinance No. 25838, entitled: “An Ordinance of the City of San José Amending Chapter 17.12 of the San José Municipal Code to Adopt the 1998 California Fire Code With Amendments to Codify Existing Policies and Practices With Respect to Fire Prevention and Storage, Use and Handling of Hazardous Materials, to Require Panic Hardware on Outdoor Swimming Pool Enclosures, to Require Construction Standpipes in Buildings of Three or More Stories, to Adopt More Restrictive Requirements Than are Contained in the 1998 California Fire Code Related to Installation of Fire Extinguishing Systems and Equipment and to Make Express Findings of Fact That Such Requirements are Needed Because of Local Conditions”, was passed for publication. Vote: 10-0-1-0. Absent: Matthews.

6f(4) Approval of an ordinance to amend Title 24 of the San José Municipal Code:

(a) To adopt the 1997 editions of the Uniform Building Code (UBC), Uniform Plumbing Code (UPC), Uniform Mechanical Code (UMC), and the 1996 edition of the National Electrical Code (NEC) with two (2) local amendments as the City of San José Building, Plumbing, Mechanical, and Electrical Codes.

(b) To adopt 1997 edition of the Uniform Code for Building Conservation (UCBC) Chapter 5 with no amendment.

CEQA: Exempt. (Planning, Building and Code Enforcement)

Documents Filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated April 29, 1999, recommending Council adopt said ordinance.

Discussion/Action: Ordinance No. 25839, entitled: “An Ordinance of the City of San José Amending Title 24 of the San José Municipal Code to Adopt the 1997 Uniform Building, Plumbing and Mechanical Codes With Certain Exceptions, Modifications and Additions”, was passed for publication. Vote: 10-0-1-0. Absent: Matthews.

6f(5) Approval of an ordinance amending Section 2.08.150 of Chapter 2.08 of Title 2 of the San José Municipal Code to permit appointments to boards and commissions for a term shorter than the term established for the board or commission. (City Attorney’s Office)

[Deferred from 5/11/99 – Item 6f(4)]

Documents Filed: Memorandum from City Attorney, Joan R. Gallo, dated May 13, 1999, recommending Council approve said ordinance.

Discussion/Action: William J. Garbett spoke against the proposed action. Ordinance No. 25840, entitled: “An Ordinance of the City of San José Amending Section 2.08.150 of Chapter 2.08 of Title 2 of the San José Municipal Code to Permit Appointments to City Boards and Commissions for a Term Shorter Than the Term Established for the Board or Commission”, was passed for publication. Vote: 10-0-1-0. Absent: Matthews.

END OF CONSENT CALENDAR

Council Member Matthews entered Chambers at this point in the meeting.

COMMISSION, COMMITTEE, AND STANDING REPORTS

7b Report of the Rules/Agency Rules Committee Meeting of May 5, 1999

Documents Filed: Rules/Agency Rules Committee Report of May 5, 1999.

(1) Redevelopment Agency Agenda

(a) Review May 18, 1999 Agenda

No Redevelopment Agency meeting scheduled for May 18, 1999.

(b) Add New Items to May 11, 1999 Amended Agenda

The Committee recommended no additions to the May 11, 1999 Redevelopment Agency Agenda.

(2) City Council Agenda

(a) Review May 18, 1999 Agenda

The Committee approved the May 18, 1999 City Council Agenda.

(b) Add New Items to May 11, 1999 Amended Agenda

The Committee recommended three additions to the May 11, 1999 City Council Agenda.

(3) Meeting Schedules

(a) Request to cancel 5/26/99 Rules Committee meeting

Due to the all-day Committee of the Whole Budget Hearings scheduled for May 26, 1999, the Committee directed the City Clerk to return to the May 12, 1999 Rules Committee with a proposed time and place for a Rules-In-Lieu meeting on May 26, 1999.

(4) The Public Record. Attachment: Memorandum from City Clerk, Patricia L. O’Hearn, dated April 29, 1999, listing the items transmitted to the Administration and the items filed for the Public Record for the period April 7-27, 1999.

The Committee noted and filed the Public Record for the period April 7-27, 1999.

(5) Report back on extension of Armory Program. Attachment: Memorandum from Director of Housing, Alex Sanchez, dated May 4, 1999, recommending Council report to Rules Committee on the options, the cost of those options, and the need for continuing the use of the armories.

The Committee directed the Administration to return to May 12, 1999 Rules Committee meeting with a draft letter to Governor Davis supporting SB 644 and AB 612, with a specific request to identify the amount of money available to cities for the costs associated with shelter operations referred to in AB 612.

Discussion/Action: Council referred this report to the Economic and Community Development Committee for consideration.

(6) Legislative Report 99-02. Attachment: Memorandum from Director of Intergovernmental Relations, Betsy Shotwell, dated April 26, 1999, recommending approval of the Legislative Report 99-02 and recommended City positions for each bill.

HR 1032 (Barr) Firearms Heritage Protection Act Recommended City Position: OPPOSES 686 (Boxer) Firearms Rights, Responsibilities and Remedies Act Recommended City Position: SUPPORT.

With Council Member Shirakawa, Jr. dissenting, the Committee approved the aforementioned Legislative Report and the recommended City positions for the bills listed.

(7) Council Referrals for Assignment to Appropriate Committee, Administration, or Council Appointee. Attachment: Memorandum from Council Member Shirakawa, Jr., dated April 22, 1999, recommending the Rules Committee refer to the Administration the issue of personnel vacancies among the Parking Compliance Unit of the Streets and Traffic Department.

(a) Request to refer issue of personnel vacancies among the Parking Compliance Unit of the Streets and Traffic Department

The Committee directed the Administration to report back on this issue at the May 19, 1999 Rules Committee meeting.

(8) Oral communications

William J. Garbett spoke on various issues.

Discussion/Action: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers and unanimously carried the Rules/Agency Rules Committee Report and actions of May 5, 1999 were accepted with Item 7b(5) referred to the Economic and Community Development Committee for review. Vote: 11-0-0-0.

7d Report of the Economic and Community Development Committee Meeting of May 3, 1999

Documents Filed: Economic and Community Development Committee Report of May 3, 1999

(1) Call to Order

The meeting was called to order at 1:32 p.m.

(2) Quarterly Report on the Project Development Program. Attachment: Memorandum from Director of Housing, Alex Sanchez, dated April 26, 1999, attaching for consideration and referral to the full Council the Project Development Quarterly Report for the third quarter of the 1998-99 Fiscal Year.

The Committee accepted the quarterly reports.

(3) Quarterly Report on the Housing Rehabilitation Program. Attachment: Memorandum from Director of Housing, Alex Sanchez, dated April 26, 1999, attaching the report on activity during the third quarter of 1998-99 Fiscal Year in the Housing Rehabilitation Program.

The Committee accepted the quarterly report.

(4) Quarterly Report on the Housing and Homeless Fund. Attachment: Memorandum from Director of Housing, Alex Sanchez, dated April 23, 1999, submitting a report on new applications for housing and Homeless Funds received during the reporting period, the status of pending applications received in prior reporting periods, and an update on the progress of previously funded applications.

The Committee accepted the quarterly report.

(5) Economic Development Semi-Annual Report. Memorandum from Director of Economic Development, Leslie S. Parks, dated April 23, 1999, recommending that the Committee accept the activities report for July 1 through December 31, 1998.

The Committee accepted the report with referral of the action items to Staff for a report back at the June 7, 1999 Committee meeting.

(6) San José First Employment Program Report. Attachment: Memorandum from Director of Economic Development, Leslie S. Parks, dated April 23, 1999 recommending that the Committee accept the avtivities report for the San José First Employment Program for March 1998 through March 1999.

The Committee accepted the report.

(7) Oral petitions

The Draft August through December 1999 Committee Workplan was discussed.

(8) Adjournment

The meeting was adjourned at 3:15 p.m.

Discussion/Action: Upon motion by Council Member Diaz, seconded by Council Member Woody and unanimously carried, the Economic and Community Development Committee Report and actions of May 3, 1999 were accepted. Vote: 11-0-0-0.

GENERAL GOVERNMENT

9a Interview applicants for appointment to the Campaign Finance Review and Ethics Board for an unexpired term ending February 29, 2000. (City Clerk)

(Deferred from 5/4/99 – Item 9a)

Documents Filed: None.

Discussion/Action: This item was deferred to June 1, 1999.

9b Approval of the Administrative follow-up report on the Cardroom Operational Review conducted by the Spectrum Gaming Group. (City Manager’s Office)

Documents Filed: None.

Discussion/Action: This item was deferred to June 1, 1999.

9c PUBLIC HEARING on Commercial Solid Waste Collection Franchise applications, approval of ordinances granting the franchises, and approval of Commercial Solid Waste Collection Franchise Agreements with:

(1) AAA Express Roll-Off Disposal

(2) All Points Roll-Off

(3) All Trash Recycling

(4) Bay Counties Waste Services, Inc.

(5) BFI Waste Systems of North America, Inc.

(6) BPS Market Management, Inc. dba Recycle West

(7) Butterick Enterprises dba B & B Roll-Off Service

(8) Custom Disposal Service

(9) Diversified Recycling Services, Inc., dba San José Recycling II

(10) The Flea Market, Inc.

(11) Green Valley Disposal Co., Inc.

(12) GreenTeam of San José dba GT Waste Services

(13) GreenWaste Recovery, Inc. dba Ninety-Nine Dollar Debris Box

(14) Grifall Trucking, Inc.

(15) Hollister Disposal

(16) J.H.M. Services, Inc.

(17) Jonna Corp. dba Premier Recycle

(18) Los Altos Garbage Co. dba Stevens Creek Disposal & Recycling

(19) The Newark Group dba Recycled Fibers

(20) Number “1” Disposal

(21) Precision Roofing Inc. dba Forced Dump

(22) Panther Industries

(23) Recycling Systems

(24) Waste Management of California, Inc. dba Waste Management of Santa Clara County

(Environmental Services)

Documents Filed: (1) Memorandum from Director of Environmental Services, Carl W. Mosher, dated April 29, 1999, recommending Council approve said franchise applications and agreements and approve said ordinances granting the franchises. (2) Notice of Public Hearing on Commercial Solid Waste and Recyclables Collection Franchise, dated May 4, 1999, and Proof of publication dated May 7, 1999 submitted by the City Clerk. (3) Affidavit of Posting of the Notice of Public Hearing listing twenty-four applicants for Commercial Solid Waste and Recyclables Collection Franchise, dated May 7, 1999.

Discussion/Action: Mayor Gonzales opened the public hearing on the Commercial Solid Waste Collection Franchise applications and agreements. Cathy S. Brandhorst spoke on the proposed action. Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers and unanimously carried, the public hearing was closed and Ordinance No. 25841, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to AAA Express Roll-Off Disposal”; Ordinance No. 25842, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to All Points Roll-Off”; Ordinance No. 25843, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to All Trash Recycling”; Ordinance No. 25844, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Bay Counties Waste Services, Inc”; Ordinance No. 25845, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to BFI Waste Systems of North America, Inc.”; Ordinance No. 25846, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to BPS Market Management, Inc. dba Recycle West”; Ordinance No. 25847, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Butterick Enterprises dba B&B Roll-Off Service”; Ordinance No. 25848, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Custom Disposal Service”; Ordinance No. 25849, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Diversified Recycling Services, Inc. dba San José Recycling II”; Ordinance No. 25850, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to The Flea Market, Inc”; Ordinance No. 25851, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Green Valley Disposal Co., Inc.”; Ordinance No. 25852, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to GreenTeam of San José dba GT Waste Services”; Ordinance No. 25853, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to GreenWaste Recovery, Inc. dba #99 Debris Box”; Ordinance No. 25854, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Grifall Trucking, Inc.”; Ordinance No. 25855, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Hollister Disposal, Inc.”; Ordinance No. 25856, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to J.H.M. Services, Inc.”; Ordinance No. 25857, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Jonna Corp. dba Premier Recycle”; Ordinance No. 25858, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Los Altos Garbage Co. dba Stevens Creek Disposal & Recycling”; Ordinance No. 25859, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to The Newark Group, Inc. dba Recycled Fibers”; Ordinance No. 25860, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Number ‘1’ Disposal”; Ordinance No. 25861, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Precision Roofing, Inc. dba Forced Dump”; Ordinance No. 25862, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Panther Industries”; Ordinance No. 25863, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Recycling Systems”; Ordinance No. 25864, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Waste Management of California, Inc.”; were passed for publication. Vote: 11-0-0-0.

9d Approval of an agreement with HDR Engineering, Inc., for consultant services for the preparation of a Request for Proposal (RFP) to solicit proposals to lease or operate and manage the Municipal Water System, for the period May 18, 1999 to December 31, 2000, in an amount not to exceed $300,000.

(Environmental Services)

Documents Filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated May 3, 1999, recommending Council approve said consultant services agreement with HDR Engineering, Inc.

Discussion/Action: Director of Environmental Services, Carl W. Mosher, presented an overview of the proposal. Among the reasons for opposing the proposal, Council Members noted the absence of certain analyses of various policy issues and the $300,000 expenditure for consultant services, and suggested referral of the issue back to Staff for identification of alternative solutions and applicable timelines for completing Council direction of November 1998. William J. Garbett spoke against the proposed action. Upon motion by Council Member Powers, seconded by Council Member Dando, failed, and the Staff recommendation was not approved. Vote: 5-6-0-0 The issue was referred back to the Administration with direction to identify alternative scenarios with applicable timelines and resources for either the lease or operation and management of the Municipal Water System, and report back to Council.

9e (1) Adoption of a resolution:

(a) Authorizing the issuance of three (3) series of multifamily housing revenue bonds, consisting of two (2) tax-exempt and one taxable series, in the aggregate principal amount not to exceed $24,000,000, to be placed with qualified institutional buyers and approving a loan of the proceeds of such bonds to Helzer Associates, a California limited partnership, for financing the construction of the Helzer Courts Apartments.

(b) Approving in substantially final form the Bonds, Trust Indentures, Loan Agreements, Regulatory Agreement, and Declaration of Restrictive Covenants, Private Placement Agreement, the Private Placement Memorandum, Bond Purchase Agreement, and the Official Statement; authorizing the Directors of Finance and Housing to execute and, as appropriate, to negotiate, execute, and deliver these documents and other related documents as necessary.

(c) Approving an exception to the City’s Investment Policy to allow the proceeds of the Bonds to be invested in one (1) or more investment agreements with qualifying institution(s), as approved by the Director of Finance.

(2) Adoption of a resolution approving the Construction and Permanent Loan Terms for the City’s Loan to Helzer Associates, increasing the amount to $7,211,000, with respect to the Helzer Courts Apartment Project and authorizing the Director of Housing to execute, and as appropriate, to negotiate and deliver a loan agreement, subordination agreement, and related documents.

(Housing/Finance)

Documents Filed: (1) Supplemental memorandum from Director of Finance, John V. Guthrie, dated May 12, 1999, stating the following documents are on file in the Office of the City Clerk: Trust Indentures, Loan Agreements, Regulatory Agreement and Declaration of Restrictive Covenants, Bond Purchase Agreement, Form of Intercreditor Agreement, and Subordination Agreements. (2) Memorandum from Director of Housing Alex Sanchez, and Director of Finance John V. Guthrie, dated May 3, 1999, recommending Council adopt said resolution.

Discussion/Action: William J. Garbett spoke against the proposed action. Upon motion by Council Member Shirakawa, Jr., seconded by Council Member Matthews and unanimously carried, Resolution No. 68863, entitled: “A Resolution of the Council of the City of San José, California, Authorizing the Issuance, Sale and Delivery of Multifamily Housing Revenue Bonds in an Aggregate Principal Amount Not to Exceed $24,000,000 for the Purpose of Making a Loan to Provide Financing for a Multifamily Rental Housing Project Known as Helzer Courts Apartments, Determining and Prescribing Certain Matters Relating Thereto, and Approving and Authorizing Related Actions and the Execution and Delivery of Related Documents”; and Resolution No. 68864, entitled: “A Resolution of the Council of the City of San José Increasing the Principal Amount and Approving Business Terms for a $7,211,000.00 Construction and Permanent Loan to Helzer Associates for the Development of a 155-Unit Rental Housing Project Affordable to Very Low- and Low-Income Persons and Families, and Authorizing the Director of Housing to Negotiate and Execute All Necessary Documents Evidencing Such Loan on Behalf of the City”, were adopted. Vote: 11-0-0-0.

9f Report on bids and award of contract for the 1998-99 Street Maintenance – Measure A/B Funded Project, to the low bidder, O’Grady Paving, Inc., in the amount of $4,032,067.99. CEQA: Exempt. (Public Works)

Documents Filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated April 29, 1999, recommending Council accept the report on bids and award said contract to the low bidder, O’Grady Paving, Inc.

Discussion/Action: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Matthews and unanimously carried, the report on bids was accepted and award of contract approved and its execution authorized. Vote: 11-0-0-0.

9g Adoption of a resolution authorizing the Director of General Services to:

(1) Execute agreements for Citywide purchases of computer hardware, peripherals, and software with Sarcom, Inc., with an initial amount not to exceed $1,000,000, and with Computerland of Almaden with an initial amount not to exceed $1,500,000, for a total amount not to exceed $2,500,000 collectively, for the period of four (4) months beginning on May 20, 1999 and ending on September 19, 1999.

(2) Authorization for the Director of General Services to amend either agreement to purchase more or less from either vendor within the approved total cost.

(General Services)

(Deferred from 5/11/99 – Item 9b)

Documents Filed: Memorandum from Director of General Services, Steve S. Yoshino, dated May 10, 1999, recommending adopt said resolution.

Discussion/Action: William J. Garbett spoke against the proposed action. Given the dollar amount of the purchases, Council Member Diaz stated the contract should have been awarded to several vendors. Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers and carried, Resolution No. 68865, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of General Services to Execute Agreements With Sarcom, Inc. and Computerland of Almaden for Citywide Purchases of Computer Hardware, Peripherals and Software in An Amount Not to Exceed $2,500,000”, was adopted. Vote: 10-1-0-0. Noes: Diaz.

JOINT CITY COUNCIL/REDEVELOPMENT AGENCY BOARD ITEMS

The Redevelopment Agency Board convened at 2:15 p.m. to consider Item 11a in a joint session with the City Council.

11a Adoption of resolutions by the City Council and the Agency Board expressing support for the concepts described in the Supplement to the Dispute Resolution Memorandum (DRM) for the Construction, Operation, and Maintenance of the Guadalupe River Park Flood Control Project and approving the concept for the construction of the early implementation elements of the GRP Project.

(City Manager’s Office/Redevelopment Agency)

Documents Filed: Memorandum from Acting City Manager Debra J. Figone, and Redevelopment Agency Executive Director Frank M. Taylor, dated April 29, 1999, recommending adoption of said resolutions.

Discussion/Action: Upon motion by Council Member Powers, seconded by Council Member Diquisto and unanimously carried, Resolution No. 68866, entitled: “A Resolution of the Council of the City of San José Supporting the Concepts of the Supplement to the Guadalupe Flood Project Collaborative Agreement (Dispute Resolution Memorandum)”, and Redevelopment Agency Board Resolution No. 4694, supporting the concepts of the Memorandum, were adopted. Vote: 11-0-0-0.

The Redevelopment Agency Board adjourned at 2:16 p.m.

JOINT CITY COUNCIL/FINANCING AUTHORITY BOARD ITEMS

The San José Financing Authority Board convened at 2:17 p.m. to consider the following item in a joint session with the City Council.

2 Adoption of resolutions by the City Council and the San José Financing Authority authorizing the execution of amendments to those certain leases entered into in connection with the San José Financing Authority 1993 Revenue Bonds, Series B (Community Facilities Project), substituting the property to be leased.

Documents Filed: Memorandum from San José Financing Authority Treasurer, Director of Finance John V. Guthrie, dated May 4, 1999, recommending the City Council and the San José Financing Authority adopt said resolutions.

Discussion/Action: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Dando and unanimously carried, Resolution No. 68867, entitled: “A Resolution of the Council of the City of San José Authorizing and Directing the Execution of Amendments to Those Certain Leases Entered Into in Connection With the San José Financing Authority 1993 Revenue Bonds Series B (Community Facilities Project) Substituting the Property to be Leased”; and Resolution No. SJFA-35, entitled: “A Resolution of the San José Authorizing and Directing the Execution of Amendments to Those Certain Leases Entered Into in Connection With the San José Financing Authority 1993 Revenue Bonds Series B (Community Facilities Project) Substituting the Property to be Leased”, were adopted. Vote: 11-0-0-0.

The Financing Authority of the City of San José adjourned at 2:18 p.m.

ORAL COMMUNICATIONS

Cathy S. Brandhorst and Floyd F. Meyer addressed the City Council.

RECESS/RECONVENE

Following Oral Communications, Council recessed at 2:25 p.m. and reconvened at 7:00 p.m., Council Chambers, City Hall.

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

Absent: Council Members: None.

CEREMONIAL ITEM

5c Presentation of a commendation to Christmas in April for continued efforts to help repair and rehabilitate homes across San José and Santa Clara County. (Dando)

(Rules/Agency Rules Committee referral 5/12/99)

Documents Filed: None.

Discussion/Action: Joined by Mayor Gonzales at the Podium, Council Member Dando introduced South Bay CIA President Tim White, Vice President Carol Schultz, and Boardmember Don Ritz, and presented the commendation to the honorees, and congratulated the organization for their work in San José.

5d Presentation of a commendation to Leland High School Spirit Squad for their recent achievement of placing first at the Regional Championships and invitation to the National Championships. (Dando)

(Rules/Agency Rules Committee referral 5/12/99)

Documents Filed: None.

Discussion/Action: Mayor Gonzales and Council Member Dando presented the commendation to the Captain of the Leland High School Spirit Squad, and congratulated the team members on their achievements.

The City Council joined Mayor Gonzales in welcoming students from Willow Glen High School, who were asked to stand and be recognized.

City Clerk, Patricia L. O’Hearn, read the requests for continuances of applications and other actions as recommended. Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers and unanimously carried, the below noted continuances and other actions were granted. Vote: 11-0-0-0.

PUBLIC HEARINGS