MINUTES OF THE CITY COUNCIL

SAN JOSE, CALIFORNIA TUESDAY, NOVEMBER 23, 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, Fiscalini, LeZotte, Matthews, 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 Guadalupe Solid Waste Disposal v. City of San José; to discuss anticipated litigation pursuant to Subsection (b) of Government Code Section 54956.9, in one matter regarding the initiation of litigation.

By unanimous consent, Council reconvened from the Closed Session and recessed at 10:50 a.m. and reconvened at 1:30 p.m. in the Council Chambers.

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

Absent: Council Members - Woody (excused).

INVOCATION

Reverend Julianne Stokstad, Almaden Valley United Church of Christ, delivered the Invocation. (District 10)

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, Items 9b and 9f were deferred to December 7, 1999, and the Orders of the Day and the Amended Agenda were approved. Vote: 10-0-1-0. Absent: Woody.

CEREMONIAL ITEMS

5a Presentation of a proclamation declaring December 1, 1999 as World AIDS Day in the City of San José. (Mayor)

Documents filed: None.

Discussion/Action: Mayor Gonzales presented a proclamation declaring December 1, 1999 as World AIDS Day to Jay Anne Benton, Chair of the Disability Advisory Commission and Commission Members Sandra Gouveia and Lila Kraai. The proclamation was accepted by Lila Kraai, who read a statement on behalf of the Commission.

CONSENT CALENDAR

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

Minutes for Approval

6a(1) Regular Meeting of October 5, 1999

Documents filed: Minutes of October 5, 1999.

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

6a(2) Joint City Council/Redevelopment Agency Meeting of October 5, 1999

Documents filed: Minutes of October 5, 1999.

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

Ordinances for Final Adoption

6b(1) ORD. NO. 25982 – Adds a new Title 16 entitled Gaming Control to the San José Municipal Code and renumbers and amends Chapter 6.22 of Title 6 to include this Chapter in Title 16.

Documents filed: This item renumbered to Item 9g.

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

Public Hearings Set by Council

6c(1) Adoption of a resolution initiating proceedings on an ordinance amending Chapters 20.04, 20.28, and 20.32 of Title 20 of the San José Municipal Code relating to “incidental uses associated with restaurants and bars” by inserting Section 20.04.165 defining “Drinking Establishment”, inserting Section 20.04.196 defining “Entertainment Establishment”, amending Section 20.04.482 “Public Eating Establishment”, and amending the use regulations in Sections 20.28.250, 260, 400, 410, 560, 570, and 20.32.1030 related to drinking and entertainment establishments in the Commercial and Manufacturing Districts and setting a public hearing on January 18, 2000 at 7:00 p.m., and referring the ordinance to the Planning Commission for its recommendations and comments. (Planning, Building and Code Enforcement)

Documents filed: None.

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

6c(2) Adoption of a resolution of intention to vacate a 10-foot portion of Jacksol Drive at the northeast corner of Faircrest Drive and setting a public hearing on December 14, 1999 at 1:30 p.m. CEQA: ND. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated November 3, 1999, recommending adoption of said resolution.

Discussion/Action: Resolution No. 69222, entitled: “Resolution of the Council of the City of San José Approving a Certain Map Showing that Portion of Jacksol Drive this Council Proposes to Vacate Subject to the Reservation of a Public Service Easement, Directing the City Clerk to File the Map in the Office of the City Clerk; Describing Said Street to be Vacated and Easement to be Reserved; Setting a Public Hearing; and Directing Notice Thereof to be Posted”, was adopted. Vote: 10-0-1-0. Absent: Woody.

Plans and Specifications

6d(1) TRACT NO. 9221 - Southeast corner Little Orchard Street & Stauffer Blvd. -Jury Development Co., Inc. (Developer) - 5 industrial lots. Adoption of resolutions approving the plans, final map and contract for Tract No. 9221. CEQA: Resolution No. 65657. District 7. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated November 16, 1999, recommending adoption of said resolution.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Resolution Nos. 69223, entitled: “A Resolution of the Council of the City of San José Fixing Official Curb Grades and Position of Curbs, and Adopting Plans for Tract No. 9221”; Resolution No. 69224, entitled: “A Resolution of the Council of the City of San José Approving and Authorizing the Execution of Contract and Approving Bonds for the Improvement of Tract No. 9221”; and Resolution No. 69225, entitled: “A Resolution of the Council of the City of San José Approving and Accepting Final Map of Tract No. 9221”, were adopted. Vote: 10-0-1-0. Absent: Woody.

Contracts/Agreements

6e(1) Adoption of a resolution authorizing the City Attorney to negotiate and execute an amendment to the legal services agreement with Rankin, Landsness, Lahde, Serverian & Stock, to extend the term of the agreement through December 31, 2000, and to increase the total amount of compensation by $70,000, to a total amount not to exceed $90,000. (City Attorney’s Office)

Documents filed: Memoranda from City Attorney Joan R. Gallo, dated November 3 and 22, 1999, recommending adoption of said resolution.

Discussion/Action: Resolution No. 69226, entitled: “A Resolution of the Council of the City of San José Authorizing the City Attorney to Negotiate and Execute an Agreement to the Legal Services Agreement with Rankin, Landsness, Lahde, Serverian & Stock in an Additional Amount Not to Exceed $70,000 for a Total Not to Exceed $90,000 and to Extend the Term Through December 31, 2000”, was adopted. Vote: 10-0-1-0. Absent: Woody.

6e(2) Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with artists Kristin Jones and Andrew Ginzel to design a work of art for the Second and San Fernando Street Garage in an amount not to exceed $53,000. (Conventions, Arts and Entertainment)

Documents filed: Memorandum from Nancy Johnson, Director, Conventions, Arts and Entertainment, dated November 3, 1999, recommending adoption of said resolution.

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

6e(3) Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 1999-2000 #17, 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. 17 was approved and the Director of General Services authorized to execute the purchase orders. Vote: 10-0-1-0. Absent: Woody.

6e(4) Approval to reject all bids for three (3) 56,000-pound cabs and chassis with dump bodies for the Streets and Traffic Department and authorization for the Director of General Services to re-solicit bids. (General Services)

Documents filed: Memorandum from Director of General Services, Steve S. Yoshino, dated November 3, 1999, recommending the rejection of all bids and authorization for the Director of General Services to resolicit bids.

Discussion/Action: The rejection of all bids was approved and the Director of General Services authorized to resolicit bids for said purchase. Vote: 10-0-1-0. Absent: Woody.

6e(5) Report on bids and award of purchase of one (1) sixteen-foot step van bomb unit for the Police Department to the low bidder, Farber Specialty Vehicles, at a total cost of $132,272.93, including tax, and authorization for the Director of General Services to execute the purchase order for:

(a) The immediate purchase of one (1) sixteen-foot step van bomb unit.

(b) Additional sixteen-foot step van bomb units pursuant to the option sixteen-foot step van bomb units at the same bid price, for one (1) year, without further Council action other than the appropriation of necessary funds.

(General Services)

Documents filed: Memorandum from Director of General Services, Steve S. Yoshino, dated November 3, 1999, recommending award of said purchase to the low bidder, Farber Specialty Vehicles.

Discussion/Action: The award of said purchase to the low bidder, Farber Specialty Vehicles, was approved and its execution authorized. Vote: 10-0-1-0. Absent: Woody.

6e(6) Report on bids and award of purchase of two (2) 28,000-pound cabs and chassis with chipper bodies for the Streets and Traffic Department to the lowest responsive bidder, Mission Valley Ford, at a total cost of $141,538.06, including tax, and authorization for the Director of General Services to execute the purchase order for:

(a) The immediate purchase of two (2) 28,000-pound cabs and chassis with chipper bodies.

(b) Additional 28,000-pound cabs and chassis with chipper bodies pursuant to the option 28,000 pound cabs and chassis with chipper bodies at the same bid price, for one (1) year, without further Council action other than the appropriation of necessary funds.

(General Services)

Documents filed: Memorandum from Director of General Services, Steve S. Yoshino, dated November 3, 1999, recommending award of said purchase to the lowest responsive bidder, Mission Valley Ford.

Discussion/Action: The award of said purchase to the lowest responsive bidder, Mission Valley Ford was approved and its execution authorized. Vote: 10-0-1-0. Absent: Woody.

6e(7) Approval of a sublease agreement with Barry Swenson and Molly Swenson, dba 777 ASSOCIATES for 1,478 of usable square feet of office space for Human Resources-Payroll System, identified as 777 North First Street, Suite 620, at a cost of $3,261.60 per month during the first year, $3,399.40 per month the second year, and $3,547.20 per month the third year. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated November 4, 1999, recommending approval of said agreement with Barry Swenson and Molly Swenson, dba 777 ASSOCIATES.

Discussion/Action: The agreement with Barry Swenson and Molly Swenson, dba 777 ASSOCIATES, was approved and its execution authorized. Vote: 10-0-1-0. Absent: Woody.

6e(8) Approval of an agreement for legal services with Sonnenschein, Nath & Rosenthal to provide legal advice on environmental issues related to the San José International Airport for fiscal year 1999-2000, in an amount not to exceed $120,000. (City Attorney’s Office)

(Rules Committee referral 11/17/99)

Documents filed: Memorandum from City Attorney Joan R. Gallo, dated November 15, 1999, recommending approval of said agreement with Sonnenschein, Nath & Rosenthal.

Discussion/Action: The agreement with Sonnenschein, Nath & Rosenthal was approved and its execution authorized. Vote: 10-0-1-0. Absent: Woody.

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)

[Deferred from 11/9/99 – Item 6f(1)]

Documents filed: None.

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

6f(2) Adoption of a resolution accepting a grant award in the amount of $144,702 for an Office of Criminal Justice Planning (OCJP) “Anti-Drug Abuse” (ADA) Grant, and adoption of proposed appropriation ordinance and funding sources resolution amendments in the General Fund to increase the Police Department’s Personal Services and Non-personal Services related to the grant. (Police/City Manager’s Office)

Documents filed: Memorandum from Chief of Police, William M. Lansdowne, and Budget Director Larry D. Lisenbee, dated November 3, 1999, recommending adoption of a resolution accepting said grant award and adoption of said appropriation ordinance and related revenue resolution amendments.

Discussion/Action: Resolution No. 69227, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Accept a Grant from the Office of Criminal Justice Planning in an Amount Not to Exceed $144,702 to be Used for the Anti-Drug Abuse Grant Program and to Execute All Related Documents”; Resolution No. 69228, entitled, “A Resolution of the City of San José Amending Resolution No. 68980 Setting Forth the Estimated Sources of Funds for the Fiscal Year 1999-2000 to Adjust Revenues in the General Fund”, and Ordinance No. 25986, entitled: “An Ordinance of the City of San José Amending Ordinance No. 25916 to Appropriate Moneys in the General Fund to the Police Department in the Amount of $144,702 to Accept an ‘Anti-Drug Abuse’ Grant from the State of California; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, were adopted. Vote: 10-0-1-0. Absent: Woody.

6f(3) Adoption of a resolution authorizing the City Manager to execute a Quitclaim Deed from the City of San José to the Redevelopment Agency of the City of San José for approximately 908 square feet of real property located along West San Carlos Street, southwesterly of the corner of Market and West San Carlos Streets. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated November 4, 1999, recommending adoption of said resolution.

Discussion/Action: Resolution No. 69229, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute on Behalf of the City a Quitclaim Deed for Approximately 908 Square Feet of City Property Located on the Southwesterly Corner of Market and San Carlos Streets”, was adopted. Vote: 10-0-1-0. Absent: Woody.

6f(4) Adoption of a resolution approving Mayor Gonzales’ travel to Washington, D.C., September 28-October 3, 1999, for City business. Funding: Officeholder Account. (Mayor)

(Rules Committee referral 11/17/99)

Documents filed: Memorandum from Mayor Gonzales dated November 23, 1999, recommending adoption of said resolution.

Discussion/Action: Resolution No. 69230, entitled: “A Resolution of the Council of the City of San José Approving Travel by Mayor Gonzales to Washington D.C. on September 28 to October 3, 1999 to Meet with Elected and Federal Administration Officials”, was adopted. Vote: 10-0-1-0. Absent: Woody.

6f(5) Adoption of a resolution approving Mayor Gonzales’ travel to Los Angeles, CA, December 1, 1999, for the National League of Cities. Funding: Officeholder Account. (Mayor)

(Rules Committee referral 11/17/99)

Documents filed: Memorandum from Mayor Gonzales dated November 23, 1999, recommending adoption of said resolution.

Discussion/Action: Resolution No. 69231, entitled: “A Resolution of the Council of the City of San José Approving Travel by Mayor Gonzales to Los Angeles on December 1, 1999 to Represent the City of San José at the 1999 National League of Cities Congress of Cities and Exposition”, was adopted. Vote: 10-0-1-0. Absent: Woody.

6f(6) Approval of an ordinance amending Chapter 2.08 of Title 2 of the San José Municipal Code by adding a new Section 2.08.2020 to set forth rules relating to Civil Service Commission vacancies and a new Section 2.08.2030 to address absences of Civil Service Commissioners and removal of Commissioners from office. (City Attorney’s Office)

(Rules Committee referral 11/17/99)

Documents filed: Memorandum from City Attorney Joan R. Gallo, dated November 17, 1999, recommending approval of said ordinance.

Discussion/Action: Ordinance No. 25987, entitled: “An Ordinance of the City of San José Amending Chapter 2.08 of Title 2 of the San José Municipal Code by Adding a New Section 2.08.2020 to Set Forth Rules Relating to Civil Service Commission Vacancies Before Expiration of a Term of Office, and Adding a New Section 2.08.2030 to Address Absences from Commission Meetings and Hearings and Removal of Commissioners from Office”, was passed for publication. Vote: 10-0-1-0. Absent: Woody.

END OF CONSENT CALENDAR

COMMISSION, COMMITTEE, AND STANDING REPORTS

7b Report of the Rules Committee – November 10, 1999

Vice Mayor Fiscalini, Chair

Documents filed: Rules Committee report of November 10, 1999.

(1) Review November 23, 1999 Draft Agenda

The Committee approved the November 23, 1999 City Council agenda with two additions.

(2) Add New Items to November 16, 1999 Amended Agenda

The Committee recommended five additions to the November 16, 1999 City Council agenda.

(3) Meeting Schedules. Attachment: (1) Memorandum from Council Liaison Santana, dated November 3, 1999, requesting approval of a General Plan hearing on December 7, 1999. (2) Memorandum from Mayor Gonzales, dated November 10, 1999, recommending the 2000-01 Budget Committee of the Whole meetings.

The Committee recommended approval of a General Plan Hearing on December 7, 1999 before the City Council evening session to consider amendment GP98-10-1 located on Harry Road; and the Committee recommended the following schedule for Committee of the Whole Departmental/Appointee Review meetings for the proposed 2000-2001 City and Redevelopment Agency budgets.

May 11, 2000 8:30 am-noon COW--City Capital Budget

May 15, 2000 8:30 am-noon COW--Redevelopment Agency

1:30-4:30 P.M. COW--Dept/Appointee Review

May 17, 2000 1:30-4:30 P.M. COW--Dept/Appointee Review

May 18, 2000 8:30 am-noon COW--Dept/Appointee Review

1:30-4:30 P.M.

May 22, 2000 8:30 am-noon COW--Dept/Appointee Review

1:30-4:30 P.M.

(4) The Public Record. Attachment: Memorandum from City Clerk Patricia L. O’Hearn, dated November 4, 1999, listing the items transmitted to the Administration and those items filed for the Public Record for the period October 27-November 2, 1999.

The Committee noted and filed the Public Record.

(5) Report back on request to amend the Sign Ordinance allowing A-Frame signs to be used in The Alameda and Willow Glen Neighborhood Business Districts.

The Committee deferred this item to the November 17, 1999 Rules Committee meeting.

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

None.

(7) Oral communications

None.

(8) Adjournment

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

Discussion/Action: Upon motion by Council Member Fiscalini, seconded by Council Member Powers, and unanimously carried, the Rules Committee report and actions of November 10, 1999, were accepted. Vote: 10-0-1-0. Absent: Woody.

7c Report of the Finance and Technology Committee – November 10, 1999

Council Member Woody, Chair

(1) FY 1998-99 Compliance Audit Report

(2) Amended Annual Report of Financial Transactions of Community Redevelop-ment Agencies FY 1997-98

(3) The City’s Single Audit report for Federal compliance for FY 1998-99

(4) An Audit of Code Enforcement General Code Compliance Program

(5) An Audit of the Building Code Compliance Program

(6) Unfunded Projects Report

(7) Monthly Investment Report for September 1999

(8) Monthly Financial Report for September 1999

(9) Oral petitions

(10) Adjournment

Documents filed: None.

Discussion/Action: The meeting was canceled.

7f Education, Neighborhoods, Youth, and Seniors Committee – November 15, 1999

Council Member Shirakawa, Jr., Chair

Documents filed: Education, Neighborhoods, Youth and Seniors Committee report of November 15, 1999.

(1) Parks Lighting Report. Attachment: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated November 2, 1999, providing informational data.

The Committee accepted the informational report.

(2) Homework Center Evaluation. Attachment: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated November 3, 1999, recommending Council (a) Accept Homework Centers Tier 1 Evaluation Report and its recommendations, and authorize Parks, Recreation and Neighbor-hood Services to develop and implement a plan of program improvement based on those recommendations; (b) Approve in concept the expenditure by Parks, Recreation and Neighborhood Services of the portion of the additional 1999-2000 $1 million allocation for Homework Centers Program (FY99-00) which was not awarded by the Council ($111,395) for the support of Homework Centers designated as Literacy Education Arts Recreation Nurtures Students (LEARNS) grant participating programs; and (c) Approve the use of Homework Centers Program funds available following close out of carryover funds and the FY98-99 grants, up to but not to exceed $19,000, for completion of Tier II of the evaluation and authorize the City Manager to negotiate and execute an amendment of the agreement with Rene Dahl, the evaluator, in a total amount not to exceed $59,000.

The Committee recommended approval of Staff recommendation No. 2 and referred back to Staff recommendation Nos. 1 and 3 for further clarification.

(3) Benefit Assessment District Review Committee Report. Attachment: Memo-randum from the San José Library Commission, dated November 1, 1999, transmitting a Review of FY98-99 Library Benefit Assessment District Expenditures.

The Committee recommended approval of the report.

(4) Oral Report on the Status of the Joint Library Design Issues. Attachment: Memorandum from Nancy Johnson, Director, Conventions, Arts and Entertain-ment, dated November 3, 1999, stating an oral report will be given by the Library, Redevelopment Agency and Office of Cultural Affairs Staff on the Joint Library Design.

The Committee accepted the oral report.

(5) Oral Petitions

None.

(6) Adjournment

The meeting was adjourned at 3:36 p.m.

Discussion/Action: Upon motion by Council Member Shirakawa, Jr., seconded by Council Member Diaz, and unanimously carried, the Education, Neighborhoods, Youth and Seniors Committee report and actions of November 15, 1999, were accepted. Vote: 10-0-1-0. Absent: Woody.

LAND USE AND DEVELOPMENT

8a 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)

(Deferred from 11/9/99 – Item 8b

Documents filed: None.

Discussion/Action: This item was deferred to December 7, 1999.

GENERAL GOVERNMENT

9a Report on bids and award of contract for the Walnut Woods Area Site Improvements Project to the low bidder, Trinet Construction Incorporated, in the amount of $744,000 and a contingency in the amount of $35,000. CEQA: ND. (Planning, Building and Code Enforcement)

(Deferred from 10/26/99 – Item 9e et al., and 11/9/99 – Item 9e)

Documents filed: None.

Discussion/Action: This item was deferred to December 7, 1999.

9b Appointments to the following Boards and Commissions:

(1) Federated Retirement Board to fill one employee/member vacancy for a term ending November 30, 2003.

(2) Police and Fire Retirement Board to fill one Fire Department employee/member vacancy for a term ending November 30, 2003.

(3) Suggestion Award Commission to fill 2 employee vacancies and one employee alternate for terms ending November 30, 2001.

(City Clerk)

Documents filed: None.

Discussion/Action: This item was deferred to December 7, 1999, at the request of Vice Mayor Fiscalini.

9c Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with RSA to provide consulting services for Phase IA and Phase II of the Human Resources/Payroll Project for the period October 25, 1999 to June 30, 2000, in an amount not to exceed $470,000. (Human Resources)

Documents filed: Memorandum from Director of Human Resources, Nona Tobin, dated November 12, 1999, recommending adoption of said resolution.

Discussion/Action: Resolution No. 69233, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement with RSA for Technical Consulting Services to Implement Phase IA and Phase II of the Human Resources/Payroll Project”, was adopted. Vote: 10-0-1-0. Absent: Woody.

9d Adoption of a resolution updating the private development standards contained in the North Coyote Valley Campus Industrial Area Master Development Plan. CEQA: ND. (Planning, Building and Code Enforcement)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated November 3, 1999, recommending adoption of said resolution.

Discussion/Action: James Derryberry, Director of Planning, Building and Code Enforcement, stated the proposed revisions to the North Coyote Valley Campus Industrial Area Master Plan would implement General Plan changes and provide detailed development standards to enable Staff to pursue review of the Cisco Systems’ planned development rezoning plans. He stated Staff is working with all existing property owners in the North Coyote Valley Campus Industrial Area. In response to an inquiry from Mayor Gonzales, Director Derryberry stated Council’s amendment of the General Plan to parcel sizes requires modification of other development standards to make them consistent with good planning principles and the reduced parcel sizes. Responding to Council Member Matthews regarding building heights, he stated the guidelines refer to height that is established in the General Plan, that the changes would allow for taller buildings, and the concentration of development on smaller footprints would permit the reservation of more area for landscaping and open space. Council Member Powers expressed concerns that more private than public open space is being created and suggested standards be reviewed for pedestrian-friendly features and principles around which sustainable living communities can be built. Council Member Dando stated this is the last large development area for the City’s tax base and having a master or specific plan is preferable to developing one site at a time. She stated such a plan would allow for incorporation of pedestrian sensitive features and balance building height with public and private open space, and she suggested taking a long term view with superior planning for the area. Council Member Matthews stated the Master Plan should be reviewed and interpreted by one of the Council committees, and issues of good accessibility to the light rail and parking should be included in the guidelines. Director Derryberry stated that issue is not included currently but is one of the primary objectives in locating buildings as close as possible to the future rail line and at the site providing accessibility to Caltrain. Vice Mayor Fiscalini stated he supports the creation of a Specific Plan because it provides more direct guidance and clarity on what the City wants in its development. William J. Garbett spoke in opposition to the proposal. Upon motion by Council Member Powers, seconded by Vice Mayor Fiscalini, and unanimously carried, Resolution No. 69234, entitled: “A Resolution of the Council of the City of San José Adopting the Updated Private Development Standards Contained in the North Coyote Valley Campus Industrial Area Master Development Plan” was adopted, and Staff was directed to report on the issues raised concerning pedestrian and public transit accessibility when the issue returns in Spring 2000. Vote: 10-0-1-0. Absent: Woody.

9e (1) Approval of the Police Department's 1999-2000 Spending Plan for the Supplemental Law Enforcement Services Fund; and

(2) Adoption of related appropriation ordinance and funding sources resolution amendments in the Supplemental Law Enforcement Services Fund in the total amount of $2,018,745.

(Police/City Manager’s Office)

Documents filed: Memorandum from Budget Director Larry D. Lisenbee, and Chief of Police William M. Lansdowne, dated November 3, 1999, recommending approval of the Police Department’s 1999-00 Spending Plan and Related Non-Personal Appropri-ation and Reserve Increases for the Supplemental Law Enforcement Services Fund (Fund 414) and approval of said appropriation ordinance and related revenue resolution amendments.

Discussion/Action: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Dando, and unanimously carried, the Police Department’s 1999-2000 Spending Plan for the Supplemental law Enforcement Services Fund was approved; Ordinance No. 25988, entitled: “An Ordinance of the City of San José Amending Ordinance No. 25916 to Appropriate Moneys in the Supplemental Law Enforcement Services Fund in the Amount of $2,018,745 for the Police Department’s 1999-2000 Spending Plan; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, and Resolution No. 69235, entitled: “A Resolution of the Council of the City of San José Amending Resolution No. 68980 Setting Forth the Estimated Sources of Funds for the Fiscal Year 1999-2000 to Adjust Revenues in the Supplemental law Enforcement Services Fund”, were adopted. Vote: 10-0-1-0. Absent: Woody.

9f Adoption of a resolution:

(1) Authorizing a transfer of funds in the amount of $4,550,000 from the 20% Housing Fund, with $2,250,000 being deposited in the General Fund and the balance being deposited in the Service Yards Construction and Conveyance Tax Fund to make the Roberts Street site available for affordable housing development.

(2) Authorizing the Director of Housing to issue a Request for Proposals to housing developers for the development of the City-owned property at the northeast corner of Roberts Street and Vintage Way with approximately 100 units of senior rental housing and 36 single-family detached for-sale units.

(3) Finding that the use of the 20% Housing Fund for the transfer of the City’s Roberts Street site to the Department of Housing is a benefit to the City’s Redevelopment Project Areas.

(Public Works/Housing)

Documents filed: None.

Discussion/Action: This item was deferred to December 7, 1999, at the request of Council Member Shirakawa, Jr.

9g Discussion of extension of time hearing procedure and final adoption of Ordinance No. 25982, which adds a new Title 16 entitled Gaming Control to the San José Municipal Code and renumbers and amends Chapter 6.22 of Title 6 to include this Chapter in Title 16. (City Attorney’s Office)

Documents filed: (1) Memorandum from Mayor Gonzales and Council Members LeZotte and Matthews, dated November 23, 1999, recommending Council approve the City Attorney’s “Gaming Control Regulatory Ordinance: Extension of Time Procedure” proposal and instruct the City Manager to make available existing and planned job placement and training programs to eligible cardroom employees who might be displaced as a result of changes to the City’s cardroom ordinance, in order to identify new jobs that are comparable in nature, wages, and benefits to the ones cardroom employees have at the cardrooms, and to identify training programs that will help displaced employees for positions that are different in nature, but are the same or better in wages and benefits, if similar jobs are not available, said placement and training to be done in the most expedient time possible. (2) Memorandum from City Attorney Joan R. Gallo, dated November 16, 1999, recommending Council adopt the Gaming Control Regulatory Ordinance with the Extension of Time Hearing Procedure. (3) Correspondence from McManis, Faulkner & Morgan, dated November 22 and 23, 1999, representing Bay 101, opposing adoption of the proposed ordinance. (4) Correspondence from Berliner Cohen on behalf of Garden City and Eli Reinhardt, dated November 22, 1999, objecting to the proposed extension of time procedure. (5) Proof of Publication of title of Ordinance 25982, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales stated the memorandum he issued with Council Members LeZotte and Matthews makes recommendations pertaining to job placement and training programs and recommends an effective date of August 31, 2001 rather than August 1, 2001. City Attorney Joan Gallo advised the ordinance needs to be adopted today in order to be timely from the perspective of the State. Michael Reedy, Michael Reedy, McManis, Faulkner & Morgan, representing Bay 101, stated the procedure for the extension of time that is outlined does not change the fact that this ordinance will result in a “regulatory taking”, that sufficient evidence has been presented to show the Ordinance will be the financial ruin of the card clubs and he believes the City will be held liable, and an analysis of the financial impact should have been conducted by the City. He stated for the City to change the conditions under which the permits and licenses were issued and the card clubs have operated in an effort to turn the clubs into recreational enterprises will result in the loss of hundreds of jobs and tens of millions of dollars. William Garbett spoke in opposition to the proposed ordinance. Council Member Matthews moved approval of recommendations in the memorandum dated November 23, 1999, issued jointly with the Mayor and Council Member LeZotte. Council Member LeZotte seconded the motion. Vice Mayor Fiscalini stated his concern that the ordinance would dictate how a business should reduce its costs to meet the mandates placed upon it, how to manage personnel, and how the restrictions would impact the ability of the card clubs to recoup investments. He stated he is concerned about due process and the “taking” issue and would have preferred having more information about the impact to the businesses and what liability could be incurred by the City, and for those reasons, will not support the motion. At the request of Council Member Chavez, City Attorney Gallo explained the card clubs will have until April 2, 2001 to make application for an extension, the date necessary to allow the hearing process to occur. She advised the ordinance states that if reasons which are not the fault of the card clubs prevent the hearing from being completed, the date would extend so the hearing, if one is applied for, could occur in the period between April 2 and August 31, 2001. At that time, she stated the hearing officer will review all information provided by the City and make a decision about granting an extension, which could be an extension of the effective date or of implementation of other aspects of the ordinance, depending upon the facts presented to the hearing officer. She stated the two grounds provided to the hearing officer for granting an extension are the consideration of whether the card club has continued to pay the same wages and benefits to the employees and has tried to reduce staff through attrition, and the hearing officer will apply the economic test or an employee test, and if a card club has reduced its employees through attrition but if the continuation either of the 24 hour operation or some additional betting would prevent the club from having to lay off people, the hearing officer will take those factors into consideration in making the decision. She stated the economic test would include consideration as to whether the clubs have recouped their investments; however, its purpose is to provide time for the program to be worked in naturally and if additional time is needed the extension procedure would be available. Council Member Chavez stated she could support the second recommendation of the memorandum. However, she stated concerns about how the process relative to the attrition plans would affect the employees of the clubs. She stated the ordinance permits the hearing officer to consider whether cost saving measures have been taken by the card clubs, excluding from those cost savings measures affecting the wages and benefits of employees, or layoffs, and they cannot put forward as their effort to reduce their costs any of those employee-related type savings. She stated when the number of employees affected are too few to justify an indefinite extension, the Mayor and Council Members’ recommendations for training and other programs would apply and the card clubs would be expected to provide severance and other benefits. Council Member Diaz stated concerns about having adequate protections for the workforce and how implementation of the changes could impact the workforce and while he could support the job placement training programs being recommended, he will not support the proposed ordinance. Council Member Powers stated she has concerns about the availability of replacement jobs and benefits and supports the job training component, but will not support the proposed ordinance. Mayor Gonzales pointed out that the job training program recommendation serves no purpose without the ordinance. Council Member Matthews stated the primary issue for her is whether the card clubs are good for the City and since she thinks they are not, the issue of the future of the employees is something that can be handled in other ways and would not prevent her from taking an action she thinks is best for the City. Mayor Gonzales stated this is an issue of great importance to him, that he believes gambling and the card rooms are not a positive addition to the City and the Council should take these steps to reduce the negative impact of gambling on neighborhoods and the people of San José. He stated the issue was debated in a process that was fair and based on good public policy and recognized due diligence and due process. He stated Council recognized the impact the ordinance would have on employees of the card clubs and as a result, instructed the City Attorney to factor into the process policies to protect the interests of the workers and he and Council Members LeZotte and Matthews have recommended a fair process that will impact positively any workers who lose their jobs at the card rooms. On a call for the question, the motion carried, and Council approved the recommendation by Mayor Gonzales and Council Members LeZotte and Matthews’ memorandum dated November 23, 1999 to (1) Approve the City Attorney’s proposed “Gaming Control Regulatory Ordinance: Extension of Time Procedure”, with the effective date amended to August 31, 2001; and (2) Instruct the City Manager to make available existing and planned job placement and training programs to eligible employees, who might be displaced as a result of changes to the City’s cardroom ordinance, in order to (a) identify new jobs that are comparable in nature, wages, and benefits to the ones cardroom employees have at the cardrooms; and (b) Identify training programs that will help prepare displaced employees for positions that are different in nature, but are the same, or better in wages and benefits, if similar jobs are not available; and placement and training for displaced employees should be done in the most expedient time possible; and 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 adopted. Vote: 6-4-1-0. Noes: Chavez, Diaz, Fiscalini, Powers. Absent: Woody.

9i 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 et al., and 11/16/99 – Item 9e)

Documents filed: None.

Discussion/Action: This item was deferred to December 7, 1999.

FISCAL AFFAIRS

10a (1) (a) Approval of the first amendments to the agreements for Tow Services between the City of San José and the following tow companies:

(1) Matos Auto Towing & Transport. (Zone One).

(2) City Tow, Inc. (Zone Two).

(3) Century Tow (Zone Three).

(4) Motor Body Company, Inc. (Zone Four).

(5) Courtesy Tow (Zone Five).

(6) Delta Towing, Inc. (Zone Six).

(b) Incorporating the City Auditor’s recommendations as identified in the Towing Service Agreements Audit (98-03) into the first amendment to the agreement.

(c) Incorporating minor changes to the boundaries between zones three and six and between zones four and six, to provide that primary storage facilities are located in the towing contractor zone.

(2) Adoption of a resolution that revises the fee schedule for tow services agreements with the following changes:

(a) Increase in the basic tow charge from $85 to $90.

(b) Increase in the rate charged for “special tows” from $180 per hour to: $200 per hour for vehicles which are required to be recovered by Class “B”, medium duty tow-trucks; $200 per hour for all vehicles which weigh over six thousand (6000) pounds empty; and $300 per hour for all vehicles in which weight or complex recovery requires the use of a Class “C” or “D” three axle heavy duty tow truck.

(3) Direction to staff to report to Council the results of a consultant study’s recommendations by March 2000 regarding the frequency of future rate increases, as well as other factors that may be considered.

(Planning, Building and Code Enforcement)

(Deferred from 11/2/99 – Item 10b and 11/16/99 – Item 10a)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated October 14, 1999, recommending approval of the first amendments to said agreements for tow services, incorporating the City Auditor’s recommendations as identified in the Towing Service Amendment Audit (98-03) and incorporating minor changes to the boundaries between zones three and six and between zones four and six; adoption of a resolution to revise the fee schedule for tow services agreements with certain changes; and direction for Staff to report to Council the results of the consultant’s study recommendations regarding the frequency of future rate increases, as well as other factors that may be considered.

Discussion/Action: Council Member Powers stated the tow truck operators have been requesting an increase in their storage rates and if the results of the consultant’s study in April indicates that an increase in storage rates is warranted, the contract can be amended at that time. William J. Garbett spoke in opposition to the proposal. Upon motion by Council Member Powers, seconded by Council Member Shirakawa, Jr., and unanimously carried, the first amendments to said agreements with Matos Auto Towing & Transport, City Tow, Inc., Century Tow, Motor Body Company, Inc., Courtesy Tow, and Delta Towing, Inc. were approved; Resolution No. 69236, entitled: “Resolution of the Council of the City of San José Adopting a Fee Schedule for Tow Services Agreements”, was adopted, and Staff was directed to report to Council the results of the consultant’s study recommendations by March 2000 regarding the frequency of future rate increases, as well as other factors that may be considered. Vote: 10-0-1-0. Absent: Woody.

10b Approval of a one-time maximum gated event fee increase from $10 to $15 per person, in advance or at the gate, for outdoor special events on non-park public property that are held on December 31, 1999. (Conventions, Arts and Entertainment)

(Rules Committee referral 10/17/99)

Documents filed: Memorandum from Nancy Johnson, Director, Conventions, Arts and Entertainment, dated November 16, 1999, recommending approval of a one-time maximum gated event fee increase for certain special events to be held on December 31, 1999.

Discussion/Action: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers, and unanimously carried, the one-time maximum gated event fee increase from $10 to $15 per person, in advance or at the gate, for outdoor special events on non-park public property to be held on December 31, 1999 was approved. Vote: 10-0-1-0. Absent: Woody.

9h Interview remaining applicant for appointment to fill two vacancies on the Civil Service Commission for four-year terms ending December 1, 2003. (City Clerk)

(Continued from 11/16/99 – Item 9a)

Documents filed: See Item 9a on November 16, 1999 for documents filed.

Discussion/Action: On the first ballot, the Council appointed Richard Giovannetti and Leon Louie to fill two vacancies on the Civil Service Commission for four-year terms ending December 1, 2003.

ORAL COMMUNICATIONS

William Garbett spoke on environmental issues.

ADJOURNMENT

The Council of the City of San José adjourned at 2:54 p.m.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK