MINUTES OF THE CITY COUNCIL

SAN JOSE, CALIFORNIA TUESDAY, NOVEMBER 9, 1999

The Council of the City of San Jose convened in regular session at 9:00 a.m. in City Council Chambers at City Hall.

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

Absent: Council Members - Matthews (excused); Shirakawa (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 City of San José v. Fox, et al.; and to confer with Labor Negotiator Pursuant to Government Code 54957.6: (1) City Negotiator: City Manager designee Alex Gurza; Employee Organizations: San José Police Officers’ Association and International Association of Firefighters; and (2) City Negotiator: City Manager designee Alex Gurza; Employee Organization: City Association of Management Personnel.

By unanimous consent, Council reconvened from the Closed Session and recessed at 10:55 a.m. and reconvened at 1: 36 p.m. in the Council Chambers.

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

Absent: Council Members - None.

INVOCATION

The Gunderson High School Dance Troupe performed a dance routine under the direction of their leader, Jennifer Middleton. (District 10)

PLEDGE OF ALLEGIANCE

Mayor Gonzales led the Pledge of Allegiance.

ORDERS OF THE DAY

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

CEREMONIAL ITEMS

5a Presentation of a commendation to San José Fire Dispatcher Heather Villarica for her assistance, via phone, in delivering a child born to a District 10 resident on November 1, 1999. (Dando)

(Rules Committee referral 11/3/99)

Documents filed: None.

Discussion/Action: Mayor Gonzales was joined by Council Member Dando for presentation of a commendation to San José Fire Dispatcher Heather Villarica for her outstanding service to a resident of District 10. Captain Tom Scully commended her contribution to the well-being of the community.

5b Presentation of a proclamation declaring the week of November 8-12, 1999 as Winter Weather Preparedness Week. (Emergency Services)

(Rules Committee referral 11/3/99

Documents filed: Memorandum from Emergency Services Director, Frances E. Winslow, dated November 1, 1999, reporting on the Winter Storm Preparedness Week.

Discussion/Action: Mayor Gonzales was joined by Dr. Frances Winslow in proclaiming the week of November 8-12, 1999 as Winter Weather Preparedness Week. Dr. Winslow, Director of the Office of Emergency Services, introduced Intern Dan Goodrich and commended his work on the program and on the exhibit in the lobby, and invited the audience to visit the exhibit which provides information on how to be prepared.

CONSENT CALENDAR

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

Minutes for Approval

6a(1) Regular Meeting of September 21, 1999

Documents filed: Minutes of September 21, 1999.

Discussion/Action: The minutes were approved. Vote: 10-0-1-0. Absent: Powers.

Ordinances for Final Adoption

6b(1) ORD. NO. 25978 – Amends Sections 2.08.2510, 2.08.2520, and 2.08.2540 of Chapter 2.08 of Title 2 of the San José Municipal Code to reduce the number of members on the Commission on Disadvantaged Business Development.

Documents filed: Proof of publication of title of Ordinance No. 25978, submitted by the City Clerk.

Discussion/Action: Ordinance No. 25978 adopted. Vote: 10-0-1-0. Absent: Powers.

Contracts/Agreements

6e(1) Approval of the first amendment to the consultant agreement with David J. Powers & Associates, Inc. for environmental analysis of Airport projects, increasing compensation by $45,000, from $50,000 to $95,000. (Airport)

Documents filed: Memorandum from Aviation Director Ralph G. Tonseth, dated October 21, 1999, recommending approval of a first amendment to said agreement with David J. Powers & Associates, Inc.

Discussion/Action: The amendment to said agreement with David J. Powers & Associates, Inc., was approved and its execution authorized. Vote: 10-0-1-0. Absent: Powers.

6e(2) Adoption of a resolution approving salary and benefits for Executive Management (Unit 99), Engineers and Architects (Units 4 and 15), and unclassified unrepresented employees (Units 16 and 19), and authorizing the City Manager to enter into an agreement with the Association of Maintenance Supervisory personnel (Unit 18). (City Manager’s Office)

Documents filed: Memorandum from City Manager, Del D. Borgsdorf, dated November 4, 1999, recommending adoption of said resolution.

Discussion/Action: Resolution No. 69202, entitled: “A Resolution of the Council of the City of San José Approving a 5.0% Wage Increase Effective June 27, 1999 and a 3.25% Wage Increase Effective June 25, 2000 for Management Units 4 (Registered Engineers and Architects), 15 (Unregistered Engineers and Architects), 19 (Association of Maintenance Supervisory Personnel) and 99 (Executive Management, Excluding Senior Executive Management), and Unrepresented, Unclassified Employees in unit 16 and Unit 19; and Approving Benefits for Employees in Designated Units”, was adopted. Vote: 10-0-1-0. Absent: Powers.

6e(3) Approval of a grant agreement for Resource Area for Teachers (RAFT) in the amount of $150,000, for operating and capital budget expenses. (Environmental Services Department)

Documents filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated October 21, 1999, recommending approval of said agreement.

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

6e(4) Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 1999-2000 #15, and authorization for the Director of General Services to execute the purchase orders. (General Services)

Documents filed: Memorandum from Director of General Services, Steve S. Yoshino, dated August 26, 1999, recommending approval of said open purchase orders.

Discussion/Action: The award of open purchase orders List No. 15 was approved and the Director of General Services authorized to execute the purchase orders. Vote:

10-0-1-0. Absent: Powers.

6e(5) Adoption of a resolution authorizing the Director of General Services to execute a fifth amendment to the agreement with Acme Building Maintenance Company for custodial services at City facilities, extending the term of the agreement from July 11, 1999 through January 10, 2000, and increasing compensation by $196,000, from $1,207,000 to $1,403,000. (General Services)

Documents filed: Memorandum from Director of General Services, Steve S. Yoshino, dated October 21, 1999, recommending adoption of said resolution.

Discussion/Action: Resolution No. 69203, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of General Services to Execute a Fifth Amendment to the Agreement with Acme Building Maintenance Company for Janitorial Services”, was adopted. Vote: 10-0-1-0. Absent: Powers.

6e(6) Acceptance of the Community Development Block Grant (CDBG) Monitoring Report for the 1998-99 Program Year. (Parks, Recreation and Neighborhood Development).

[This item renumbered to 9g].

Documents filed: See Item 9g for documents filed.

Discussion/Action: See Item 9g for Council action taken.

6e(7) Approval of a continuation agreement with Ruth & Going, Inc. for engineering consultant services for the Trimble Road Bridge Widening Project, extending the term of the agreement from July 1, 1999 to December 31, 2001, and increasing compensation by $110,000, from $350,000 to $460,000. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated October 21, 1999, recommending approval of said agreement with Ruth & Going, Inc.

Discussion/Action: The agreement with Ruth & Going, Inc., was approved and its execution authorized. Vote: 10-0-1-0. Absent: Powers.

6e(8) Approval of an agreement for consultant services with DKS Associates for an Advanced Parking Information System Feasibility Plan in the amount of $141,300, for the period November 15, 1999 to November 14, 2000. (Streets and Traffic)

Documents filed: Memorandum from Director of Streets and Traffic, Wayne K. Tanda, dated October 27, 1999, recommending approval of said agreement with DKS Associates.

Discussion/Action: The agreement with DKS Associates was approved and its execution authorized. Vote: 10-0-1-0. Absent: Powers.

6e(9) Approval of an agreement for consultant services with Kennedy/Jenks Consultants to provide utility system design services for the Happy Hollow Park & Zoo Infrastructure Improvements Phase 1 Project for a term from the retroactive date of July 15, 1999 through January 15, 2001, for a base fee amount of $289,000, and additional services in the amount of $40,000, for a total agreement amount not to exceed $329,800. (Public Works)

[Deferred from 10/19/99 – Item 6e(8) and 11/2/99 – Item 6e(1)]

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated October 21, 1999, recommending approval of said agreement with Kennedy/Jenks Consultants.

Discussion/Action: The agreement with Kennedy/Jenks Consultants was approved and its execution authorized. Vote: 10-0-1-0. Absent: Powers.

Routine Legislation

6f(1) Adoption of an appropriation ordinance and revenue resolution amendments in the Civic Center Relocation Fund and Sanitary Sewer Fund to provide a short-term loan for the Civic Center Relocation Project. (City Manager’s Office)

Documents filed: None.

Discussion/Action: This item was deferred to November 23, 1999

6f(2) Adoption of a resolution summarily vacating public service easements located at 2875 The Villages Parkway, east of San Felipe Road, within Parcels 1 and 2. CEQA: Exempt. (Public Works

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated October 21, 1999, recommending adoption of said resolution.

Discussion/Action: Resolution No. 69204, entitled: “Resolution of the Council of the City of San José Summarily Vacating the Twenty Foot Easement for Storm Sewer, Sanitary Sewer, Water Line and Fire Alarm Lines Lying Within Parcel 1 and Parcel 2 as Shown on That Certain Parcel Map Recorded June 11, 1999 in Book 716 at Pages 41 and 42 Located at 2875 The Villages Parkway”, was adopted. Vote: 10-0-1-0. Absent: Powers.

6f(3) Appointment of members to the Downtown Parking Board. (Mayor)

(Rules Committee referral 11/3/99)

Documents filed: Memorandum from Mayor Gonzales, dated November 3, 1999, recommending Council make the following appointments to the Downtown parking Board: Janis Patricia Gemignani, as the San José Downtown Association resident representative, and James Huelskamp as the parking facility owner representative.

Discussion/Action: Council appointed Janis Patricia Gemignani, as the Downtown resident representative, and James Huelskamp, as a parking facility owner representative.

END OF CONSENT CALENDAR

COMMISSION, COMMITTEE, AND STANDING REPORTS

7a Report of the Committee of the Whole – September 21, 1999

Documents filed: Committee of the Whole report of September 21, 1999.

(1) Internet/Telecommunications Issues. Attachment: (1) Memorandum from Director of Economic Development, Leslie S. Parks, dated September 13, 1999, reporting on the purpose of the Internet/Telecommunication update report. (2) Committee of the Whole Agenda for September 21, 1999. (3) Report from the League of California Cities, entitled: A Fair Deal for Internet Sales is a Fair Deal for Communities. (4) Report from Joint Venture: Silicon Valley Network entitled: Joint Venture’s Internet Cluster Analysis. (5) Hard copies of the Internet/Telecommunications slide presentation by the Office of Economic Development.

The Committee accepted the report.

Discussion/Action: The Committee of the Whole report and actions of September 21, 1999 were accepted. Vote: 11-0-0-0.

7b Report of the Rules Committee – October 27, 1999

Documents filed: Rules Committee report of October 27, 1999.

(1) Review November 9, 1999 Draft Agenda

The Committee approved the November 9, 1999 City Council agenda with two additions and one change.

(2) Add New Items to November 2, 1999 Amended Agenda

The Committee recommended three additions and two deferrals to the November 2, 1999 City Council agenda.

(3) Meeting Schedules

There were none.

(4) The Public Record. Attachment: (1) Memorandum from City Clerk Patricia L. O’Hearn, dated October 21, 1999, listing the items transmitted to the Administration and those items filed for the Public Record for the period October 13-19, 1999.

The Committee noted and filed the Public Record.

(5) Report back on traffic signal at Camden and Ewer/Lencar. Attachment: Memorandum from Council Member Diquisto, dated October 21, 1999, requesting a 30-day deferral of the traffic signal issue.

The Committee recommended a deferral to November 24, 1999 of the report on the traffic signal at Camden and Ewer/Lencar to allow Staff time to hold additional meetings with the residents.

(6) Council Referrals for Assignment to Appropriate Committee, Administration, or Council Appointee

(a) Request to amend the Sign Ordinance allowing A-Frame signs to be used in The Alameda and Willow Glen Neighborhood Business Districts

The Committee referred this item to the Administration for a report back to the Rules Committee in two weeks regarding an assessment of the time and resources involved to complete the request.

(7) Oral communications

None presented.

(8) Adjournment

The meeting was adjourned at 2:07 p.m.

Discussion/Action: Upon motion by Council Member Fiscalini, seconded by Council Member Diaz, and unanimously carried, the Rules Committee report and actions of October 27, 1999, were accepted. Vote: 11-0-0-0.

7c Report of the Finance and Technology Committee – October 27, 1999

Documents filed: Finance and Technology Committee minutes of October 27, 1999

(1) Monthly Financial Statements for September 1999

(2) Capital Cost Report for September 1999

(3) Cash Flow Projection

Items 1-3 were heard by the Redevelopment Agency

(4) City/Redevelopment Agency Budget Calendar 2000-2001. Attachment: Memorandum from Budget Director Lisenbee and David Baum, Agency Finance/Budget Director, dated October 19, 1999, recommending adoption of the 2000-2001 Budget Calendar as presented in the report.

The Committee accepted the report.

(5) September Monthly Report. Attachment: Correspondence from City Auditor Gerald A. Silva, dated October 20, 1999, transmitting the September 1999 Report of Activities of the City Auditor’s Office.

The Committee accepted the report.

(6) Quarterly Report for Sales and Business Tax Audit Results. Attachment: Correspondence from City Auditor Gerald A. Silva, dated October 15, 1999, transmitting the Sales and Business Tax Audit Report for Quarter Ended June 30, 1999.

The Committee accepted the report.

(7) Annual Debt Report. Attachment: Memorandum from Director of Finance, John V. Guthrie, dated October 21, 1999, transmitting the eighth Annual Debt Report for FY 1998-99.

The Committee accepted the report with the direction that the next report include a section on other future financing needs and a project priority status report.

(8) Airport Commercial Paper Program.

This item heard by Council on November 2, 1999.

(9) Fiber Optic Conduit System Leases. Attachment: Memorandum from Pamela Jacobs, Assistant to the City Manager, dated October 18, 1999, transmitting the informational status report on fiber optic conduit system leases.

The Committee noted and filed the information report.

(10) Police Staffing Report. Attachment: Memorandum from Chief of Police, William M. Lansdowne, dated September 29, 1999, transmitting the Police Staffing Report for the period of January through June 1999.

The Committee accepted the report with the direction that Staff present the next report at the February 9, 2000 Finance and Technology Committee meeting.

(11) Amendments to Finance & Technology Committee meeting schedule

The Committee decided to begin the Finance Committee on November 10 at 8:00 a.m. rather than 9:00 a.m. to accommodate the addition of two items to the agenda.

(12) Oral petitions

None presented.

(13) Adjournment

The meeting was adjourned at 12:15 p.m.

Discussion/Action: Upon motion by Council Member Woody, seconded by Council Member Fiscalini and unanimously carried, the Finance and Technology Committee report and actions of October 27, 1999 were accepted. Vote: 11-0-0-0.

LAND USE AND DEVELOPMENT

8a Adoption of a resolution approving a development waiver to allow for a greater maximum floor area, number of stories, and height to accommodate an 18-story (approximately 285 feet high), 400,000 square foot office building with a 1,074 space parking garage on a 1.26 acre site in a C-3 Zoning District. (Sobrato Development Companies)

(Redevelopment Agency)

(Deferred from 10/19/99 – Item 8a)

Documents filed: None.

Discussion/Action: This item was continued to December 14, 1999.

8b Adoption of a resolution approving a development waiver to allow for a greater maximum floor area (FAR), number of stories and height to accommodate a 25-story, 494-room full service hotel (Marriott/Hotel East) on a 0.94 acre site in a C-3 Zoning District. CEQA: Resolution No. 68839. (Redevelopment Agency)

Documents filed: None.

Discussion/Action: William Garbett spoke in opposition to the proposal. Council Member Chavez questioned whether the issue of the height and bulk waiver should go back to the Urban Design Review Board (UDRB) before coming to Council because at a previous UDRB hearing concerns were raised about the project. At Mayor Gonzales’ request, a presentation was made on behalf of the applicant by Robert Wilson, Hornberger Worstell, Inc., Project Director for the San José Marriott Hotel. He stated the issues raised by the UDRB had been addressed with Redevelopment Agency staff, that issues regarding the height of the building were raised during the Planning Commission hearing and the applicant is prepared to provide additional materials for Council’s review. He stated the building is 25 stories above grade level with a two-story penthouse and the height of the building is similar to other downtown buildings such as the Fairmont and the Adobe building and similar to other buildings currently before the Planning Commission. Mayor Gonzales suggested that since some Council Members have questions regarding the proposal, the issue be deferred for two weeks to enable the Redevelopment Agency to address specific questions Council Members may have and to provide recommendations to the Council. By unanimous consent, this item was deferred to November 23, 1999. Vote: 11-0-0-0.

8c PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the west side of Gold Street, approximately 320 feet northerly of State Highway 237, from A(PD) Planned Development Zoning District to A(PD) Planned Development Zoning District, to allow the addition of a hotel use to the approved research and development and retail uses on approximately 20 gross acres. (Legacy Partners, Owner/Developer) CEQA: Resolution No. 67684. Director of Planning, Building, and Code Enforcement recommends approval. Planning Commission recommends approval (6-0-0).

PDC 99-07-061 - District 4

(Continued from 11/2/99 – Item 15d)

Documents filed: (1) Memorandum from the Planning Commission, dated October 14, 1999, recommending approval of the subject zoning. (2) Declaration of Mailing of Notice of Hearing on PDC99-07-061, submitted by the Planning Director. (3) Proof of Publication of Notice of Hearing, submitted by the City Clerk.

Discussion/Action: Upon motion by Council Member Matthews, seconded by Council Member Diaz, Ordinance No. 25981, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated on Both Sides of Gold Street, Northerly of Route 237”, was passed for publication. Vote: 11-0-0-0.

GENERAL GOVERNMENT

9a Direction to the Administration to continue development of the Request for Proposal (RFP) for the 2002 Recycle Plus Program. (Environmental Services)

(Deferred from 10/26/99 – Item 9b)

Documents filed: None.

Discussion/Action: This item was deferred to November 16, 1999.

9b (1) Approval of an ordinance adding a new Title 16 entitled Gaming Control to the San José Municipal Code . (City Attorney’s Office/Police)

(2) Acceptance of the annual Police Department Review of the Impact of Gambling on Crime in San José. (Police)

Documents filed: (1) Memorandum from Mayor Gonzales and Council Members LeZotte, Matthews, and Woody, dated November 14, 1999, recommending approval of the ordinance proposed by Staff, with changes to reduce the negative impacts of the cardroom gambling on the community, improve the effectiveness of the City’s long-term ability to monitor and enforce requirements for cardroom operations, and develop responsible gaming programs: (a) Eliminate “backline betting” and cap betting squares at eight per cardroom player; (b) Close cardroom gambling operations between the hours of 2 a.m. and 6 a.m.; (c) Develop programs for compulsive gambling prevention and treatment funded by fees charged to the cardrooms; and (d) Limit the number of “funded proposition players” to one per table, and require licensing of funded proposition players and funding organizations. (2) Memorandum from City Attorney Joan R. Gallo, dated November 8, 1999, reporting on State Requirements for Local Cardroom Ordinances. (3) Memorandum from Chief of Police, William M. Lansdowne, dated November 2, 1999, submitting the Annual Cardroom Report on the Impact of Gambling on Crime in San José. (4) Petition from approximately 1,025 signatories in opposition to the proposed ordinance changes. (5) Correspondence from approximately 275 individuals with comments on the proposed ordinance.

Discussion/Action: City Attorney Joan R. Gallo advised that State law requires the City to have in effect by the end of the year an ordinance addressing cardroom licensing. She stated the areas which must be covered are the hours of operation, patron security and safety, cardroom locations, waging limits and the number of gaming tables but the law does not dictate how to address these issues. She stated that in response to a Council referral in June 1999 to draft the ordinance, her office has met with cardroom representatives in an effort to improve the language where there were questions and to remove ambiguities. She stated she and Police Chief Lansdowne are recommending in addition to the Council’s referral that funded proposition players be limited to one per table and both the funded proposition player and those who fund them be licensed by the City. She stated issues which were referred by Council pertain to betting limits, hours of operation, and establishing a prevention and treatment program for compulsive gamblers which are addressed in her memorandum. She stated when Council in 1991-1992 authorized adding “California” games to the list of approved games which may be played at San José cardrooms, there was no discussion of how the games were to be played and the issues of backline betting and betting square limits were not discussed by Council. She stated Staff is proposing a prohibition on backline betting and limiting the number of betting squares per player to eight. Commenting on the prevention and treatment program referral, she stated it is possible to fund such a program from a fee which is directly related to the problem caused by the cardrooms and that no specific program or fee is recommended at this time but the issue could be referred to the new gaming administrator. Regarding hours of operation, she stated Staff is recommending a 2 a.m. to 6 a.m. closing and any changes to the hours should be subject to a hearing process. She suggested Staff rework the hearing process, include any betting limits decided upon today, and bring back a hearing process at the second reading of the ordinance in two weeks. Police Chief Bill Lansdowne made a Staff presentation on the proposed ordinance. He stated limiting the hours of operation would change cardroom atmospheres to that of recreational gaming, deter hardcore professional gamblers, address the issue of compulsive gaming for individuals, and would be in the best interests of the City. He explained the Department’s support for restricting backline betting, limiting betting squares, and licensing proposition players as a means of discouraging illegal activities. Chief Lansdowne presented the Police Department’s Annual Report on the Impact of Gambling on Crime in San José. The following individuals spoke on the proposed ordinance: Enrique Fernandez, H.E.R.E., Local 19; Amy B. Dean, South Bay AFL-CIO; and the following individuals from Bay 101: Vanessa Huyih, Laura Powers, Melecia R. Pascua, Vicki Robinson, Fred Abram, Dave Weener, Elaine Brown, Far Mofidian, Andrew Glazer, Hoang Tran, Ken Hoag, Joe Hoang, Anthony Tran, Carol King, Robert Knudsen, Elizabeth L. Tongson, Steve Numoto, Noi, Roy Scialaban, Mary H. Trinh, Raymond Rossi, Ross Signorino, Gordon Jones, Rich Weinstein, Paul Chadband, Lan Nguyen, Vivo; Michael Reedy, Ronald Werner, Jackie Rose, Richard Nguyen, Michael Wilson, Thun Upshur, Snow-Layer, Les Schaff, Que Hi Le; Quang Truong YC; Rev. Thick Giac Luong, Phap Duyen Temple; Phuong Nguyen, Chyrlee Morimoto, Bob Shaw, Julie Lynch, Joe Federowski, Hoa Phan, Ivana Lopez, Liem H. Nguyen, Lucy Moran, Local Union 19; Lisa Jensen, Sang Johnson, Tanya Imondi, Thuan Nguyen, Vietnamese Chamber of Commerce; Vso Isn Tran, Vietnamese Catholic Organization of Northern California; and from Garden City: Frank Ubhaus, Stan Berliner, Gregory Colburn, and Scott Shoemaker. Mayor Gonzales stated the issue is the social impact of gambling and its impact on San José and with this proposal, he would ask Council to take reasonable steps to reduce gambling’s negative impacts on individuals, families and neighborhoods. He stated the National Gaming Impact Study Commission just released the first national study of its kind, which confirmed the widespread social cost of gambling in America, and found that the rapid spread of gambling across the country in the past decade has increased crime, shattered families and eroded neighborhoods, conclusions that are disturbing to any community. He stated Chief Lansdowne has provided input about the social cost of gambling in San José and his recommendations provide the foundation of what is proposed to protect the people. He stated the memorandum he issued jointly with Council Members LeZotte, Matthews, and Woody asks Council to approve recommendations reducing the hours of gaming operations by closing cardrooms from 2 a.m. to 6 a.m. every day, limiting backline betting that allows gambling by people who are not sitting at the card tables; and for the first time, capping the number of betting squares a player can play at eight; licensing professional players who use other people’s money and limiting them to one per table; and developing a public outreach program to support prevention and treatment for compulsive gamblers, to be funded by appropriate charges to the cardrooms. He stated the recommendation includes a transition period before the measures take effect in August of 2001 to allow time for the impact of the regulations to be known, and direction to the City Attorney to recommend refinements in the due process hearing procedure at the second reading of the ordinance in two weeks. Council Member Woody moved approval of the proposal and acceptance of the Police Chief’s report. Council Member LeZotte seconded the motion. Council Member Woody expressed support for the motion and stated the regulations are reasonable and fair while addressing the social costs borne by the City. Council Member Diaz stated he supports the proposed changes with the transition period. Council Member Matthews stated she supports the motion, consistent with her position against establishing or expanding cardrooms because of the associated criminal activity. In response to questions by Council Member Chavez, City Attorney Gallo stated she would bring back to Council a procedure which would provide a process before a hearing officer who would determine whether there was a financial need to extend the August 2001 effective date. She stated that if a cardroom is in an economic position that meets certain legal standards, an extension could be granted. Council Member LeZotte stated she supports the motion because the social costs of gambling far outweigh the tax revenue benefit to the City. She stated the delayed effective date violates the spirit of the ordinance as it was proposed and could be a mechanism to increase the number of tables, which she does not support. She stated she would prefer the provisions go into effect immediately; however, she will support the transition period which will help to alleviate concerns expressed about lost jobs by giving cardrooms an opportunity to work to avoid laying off cardroom employees. Vice Mayor Fiscalini stated he has philosophical reservations about legislatively attempting to control the behavior and choices of people and he is committed to the concept of individual responsibility. He expressed concerns about employees losing jobs should alternatives not be available, he questions the effectiveness of the proposed changes, and for those reasons he will not support the ordinance, but does support establishing a local problem to help compulsive gamblers. Council Member Powers stated she agrees with efforts to control crime and with establishing programs to help compulsive gamblers who want help and supports limiting proposition players to one per table. However, because of concerns about creating more illegal games and moving the problems outside of the cardrooms, stated she will not support the proposed hours of operation and betting limits. On a call for the question, the recommendations from Mayor Gonzales and Council Members LeZotte, Matthews, and Woody, dated November 14, 1999, were approved, Ordinance No. 25982, entitled: “An Ordinance of the City of San José Adding a New Title 16 Entitled Gaming Control to the San José Municipal Code and Renumbering and Amending Chapter 6.22 of Title 6 to Include this Chapter in Title 16”, was passed for publication, and the annual Police Department Review of the Impact of Gambling on Crime in San José was approved. Vote: 8-3-0-0. Noes: Chavez, Fiscalini, Powers.

9d Adoption of a resolution:

(1) Establishing a program to acquire blighted properties in order to rehabilitate or construct housing affordable to low and moderate-income households.

(2) Authorizing the Director of Housing to negotiate and execute a loan up to $2,000,000 from the California Housing Finance Agency; and

(3) Authorizing the Director of Housing to negotiate and execute all necessary documents evidencing such loan.

(Housing)

Documents filed: Memorandum from Director of Housing, Alex Sanchez, dated October 22, 1999, recommending adoption of said resolution.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers, and unanimously carried, Resolution No. 69205, entitled: “A Resolution of the Council of the City of San José: (1) Establishing a Program to Acquire Blighted Properties to Develop into Affordable Housing; (2) Authorizing the Director of Housing to Negotiate and Execute a $2 Million Loan from CHFA; and (3) Authorizing the Director of Housing to Negotiate and Execute Necessary Documents”, was adopted. Vote: 10-0-1-0. Absent: Matthews.

9e Report on bids and award of contract for the Walnut Woods Area Site Improvements Project to the lowest responsive bidder. (Planning, Building and Code Enforcement)

(Deferred from 10/26/99 – Item 9e and 11/2/99 – Item 9e)

Documents filed: None.

Discussion/Action: This item was deferred to November 23, 1999.

9f Adoption of a resolution:

(1) Approving business terms for an acquisition/predevelopment loan of up to $7,200,000 to ROEM Development Corporation, or its designated partnership, for the development of a 144-unit housing project affordable to very low-income and market-rate households on a 4.97-acre site located on the west side of South Capitol Avenue, north of Lombard Avenue.

(2) Authorizing the Director of Housing to negotiate and execute all necessary documents on behalf of the City.

(3) Finding that the use of 20% Housing Funds for the project is of benefit to the Redevelopment Project Areas in San José.

(Housing)

(Rules Committee referral 11/3/99)

Documents filed: Memorandum from Director of Housing, Alex Sanchez, dated November 2, 1999, recommending adoption of said resolution.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Upon motion by Council Member Dando, seconded by Council Member Powers, and unanimously carried, Resolution No. 69206, entitled: “A Resolution of the Council of the City of San José (i) Approving Business Terms for an Acquisition/Predevelopment Loan of Up to $7,200,000.00 to Roem Development Corporation, or its Designated partnership, for the Development of a 144-Unit Housing Project Affordable to Very Low-Income and Market-Rate Households on a 4.97-Acre Site Located on the West Side of South Capitol Avenue, North of Lombard Avenue; (ii) Authorizing the Director of Housing to Negotiate and Execute All Necessary Documents on Behalf of the City, and (iii) Finding that the use of 20% Housing Funds for the Subject Project is a Benefit to the Redevelopment Project Areas in San José”, was adopted. Vote: 11-0-0-0.

9g Acceptance of the Community Development Block Grant (CDBG) Monitoring Report for the 1998-99 Program Year. (Parks, Recreation and Neighborhood Development).

[This item renumbered from Item 6e(6)]

Documents filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated October 21, 1999, recommending acceptance of the Fourth Quarter Community Development Block Grant Monitoring Report and recommendations.

Discussion/Action: Upon motion by Council Member Shirakawa, Jr., seconded by Council Member Powers, and unanimously carried, the Fourth Quarter Community Block Grant Monitoring Report and Recommendations for the 1998-99 Program Year were accepted. Vote: 11-0-0-0.

9h Authorization for the Mayor and Council to request the University of California Board of Regents at their November meeting to defer for six months action on the sale of the University of California Agricultural Extension properties (BAREC site) at 90 Winchester Boulevard in Santa Clara, and adjacent to San Jose, to allow the cities of San Jose and Santa Clara to work cooperatively with the state to address future plans for the site. (Fiscalini)

(Orders of the Day 4a)

Documents filed: Memorandum from Vice Mayor Fiscalini and Council Member LeZotte, dated November 8, 1999, authorizing a request that the University of California Board of Regents defer action for six months on the sale of the University of California Area Research and Extension Center to allow the cities of San José and Santa Clara to work cooperatively with the State to address future plans for the site.

Discussion/Action: The authorization for said letter to be sent to the University of California Board of Regents requesting deferral for six months of any action on the sale of the University of California Area Research and Extension Center was approved. Vote: 10-0-1-0. Absent: Diaz.

9c Interview applicants to fill four vacancies on the San José Appeals Hearing Board; (2) four-year terms ending 12/31/2003, (1) unexpired term ending 12/31/2001, and (1) unexpired term ending 12/31/2000. (City Clerk)

Documents filed: Memorandum from City Clerk, Patricia L. O’Hearn, dated November 3, 1999, recommending Council interview seven applicants to the San José Appeals Hearing Board to fill four positions.

Discussion/Action: Council interviewed the seven applicants for the San José Appeals Hearing Board and on the first ballot appointed Willie Adams (Incumbent) and Joseph Gadano to full terms ending December 31, 2003; Keith McDavit to an unexpired term ending December 31, 2001, and Guy Newgren to an unexpired term ending December 31, 2000. Vote: 11-0-0-0.

ORAL COMMUNICATIONS

The following individuals from Coalition for Better Community spoke in opposition to the siting of a crematorium in District 4: Joe Choy, Ping Yue, David Chu, Carmen Chung, Sue Wang.

ADJOURNMENT

The Council of the City of San José adjourned at 6:30 p.m. in memory of Mayor Joe Serna, Jr., of Sacramento.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK