MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, NOVEMBER 28, 2000

The Council of the City of San José 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, Reed, Shirakawa, Jr.; Gonzales.

Absent: Council Members - Woody (excused).

Upon motion unanimously adopted, Council recessed at 9:05 a.m. to a Closed Session in Room 600 to confer with Legal Counsel pursuant to Government Code Section 54956.9; under Subsection (a) to discuss existing litigation in the cases of: (1) Hansen v. City of San José, et al., (2) Harris, et al. v. Sierra Road Developments, et al.; to conduct public employee performance evaluation pursuant to Government Code Section 54957, for the title of City Auditor; and to confer with Labor Negotiator Pursuant to Government Code 54957.6: City Negotiator: City Manager designee Alex Gurza; Employee Organization: Municipal Employees Federation.

By unanimous consent, Council reconvened from the Closed Session and recessed at 10:50 a.m. and reconvened at 1:38 p.m. in the Council Chambers.

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

Absent: Council Members - None.

INVOCATION

Fifth Graders from Guadalupe School accompanied by Principal Alice Lopez, recited a poem entitled, Thanksgiving.

(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 Powers, and unanimously carried, the Orders of the Day and the Amended Agenda were approved. Vote: 9-0-2-0. Absent: Diaz, Woody.

CEREMONIAL ITEMS

5a Presentation of commendations to seven San José companies who have been named to the 2000 Silicon Valley Technology Fast 50, an annual ranking by Deloitte & Touché and Joint Venture Silicon Valley Network of the fastest growing technology companies in Silicon Valley. (Mayor)

Documents filed: None.

Discussion/Action: Mayor Gonzales presented commendations to seven San José companies which have been named to the 2000 Silicon Valley Technology Fast 50, as ranked annually by Deloitte and Touché and the Joint Venture Silicon Valley Network. Accepting commendations on behalf of their companies were: Michael Greenbaum, CEO, Hybrid Company; Hermant Thepar, Vice President, Datapath; Llavan Fernando, COO & CTO (Chief Technology Officer) @POS.com; Steve Melman, CFO, PDF Solutions; and James Isaacs, Concentric Network. Representatives of Calico Commerce, Inc., and PumaTech, Inc., were unable to attend and their commendations will be mailed.

5b Presentation of awards honoring San José Police Officers and citizens of San José. (Police)

Documents filed: Memorandum from Chief of Police, William M. Lansdowne, dated November 6, 2000, listing the officers who are being honored for extraordinary actions taken during emergency situations.

Discussion/Action: Mayor Gonzales was joined by Assistant Chief of Police Tom Wheatley and Police Lieutenant Dave Dibari for presentation of the following awards: Hazardous Duty Award to Officer John Jacob; William P. Poelle Lifesaving Awards to: Officers Steven Kelly, James Vinson, Brian Spears, Jose Daysog, Daniele McCollum, Jeff Profio and Dave Wilson; Simpson-Silva Citizen’s Award to Mr. Aaron McKinley Lewis and Mr. Jason Montgomery, who was unable to attend. Assistant Chief Wheatley read the circumstances under which each award recipient exhibited bravery and dedication to the safety of the community and through their courageous actions secured dangerous situations.

5c Presentation of a proclamation declaring December 1, 2000 as World AIDS Day in San José. (Equality Assurance)

(Rules Committee referral 11/22/00)

Documents filed: None.

Discussion/Action: Mayor Gonzales presented a proclamation declaring December 1, 2000 as World AIDS Day in San José to Disability Advisory Commission Members Lila Kraai and Richard Patterson. Accepting the proclamation, Lila Kraai thanked the Mayor and Council and spoke on the importance of public education about this vital health issue.

The City Council Members congratulated Council Member Diaz, as he attends his last City Council meeting prior to vacating his District 5 City Council seat to begin his tenure in Sacramento as a newly elected member to the California State Assembly, representing the 23rd District. Mayor Gonzales congratulated Council Member Diaz on his successful campaign and stated he looks forward to working with him on future issues of importance to the City of San José. San José City Council Members in turn commented on the good working relationships they have had with Council Member Diaz, thanked him for his encouragement and leadership in numerous areas, and wished him every success in his new endeavors as he represents the 23^rd Assembly District. Council Member Diaz expressed appreciation to the residents for the opportunity to serve the community, to the Council Members for the opportunity of serving with them, and thanked City Staff for their helpfulness and his Office Staff for their incomparable assistance during his years on the San José City Council. He stated he looks forward to continuing to work together on important issues that impact the State, the region, and the City of San José.

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: 11-0-0-0.

Ordinances for Final Adoption

6b(1) ORD. NO. 26229 – Amends Chapter 3.36 of Title 3 of the San José Municipal Code to increase the benefit accrual to 4% of final compensation for years of service in excess of 25 and the retirement benefits maximum to 85% of final compensation for certain members of the Police and Fire Department Retirement Plan who retire on or after February 4, 2000.

Documents filed: Proof of publication of title of Ordinance No. 26229, executed on November 21, 2000, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26229 adopted. Vote: 11-0-0-0.

6b(2) ORD. NO. 26232 – Rezones certain real property situated at the west side of Capitol Expressway, 150 feet northerly of Quimby Road. PDC 00-06-053

Documents filed: Proof of publication of title of Ordinance No. 26232, executed on November 21, 2000, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26232 adopted. Vote: 11-0-0-0.

6b(3) ORD. NO. 26233 – Rezones certain real property situated at the southeast corner of North Fourth and East Washington Streets. PDC 00-09-090

Documents filed: Proof of publication of title of Ordinance No. 26233, executed on November 21, 2000, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26233 adopted. Vote: 11-0-0-0.

6b(4) ORD. NO. 26234 - Rezones certain real property situated on the north side of Story Road, approximately 200 feet easterly of South King Road. C 00-08-073

Documents filed: Proof of publication of title of Ordinance No. 26234, executed on November 21, 2000, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26234 adopted. Vote: 11-0-0-0.

6b(5) ORD. NO. 26237 – Provides authorization to conduct and take actions with regard to the holding of an election to fill a vacancy in the office of Council Member for District 5.

Documents filed: Proof of publication of title of Ordinance No. 26237, executed on November 24, 2000, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26237 adopted. Vote: 11-0-0-0.

Contracts/Agreements

6e(1) Approval of a first amendment to the agreement with QLM Consulting, Inc., for recycling technical assistance in multi-tenant office buildings, expanding the area of service to include the Central Business District, at no additional cost to the City. (Environmental Services)

Documents filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated November 6, 2000, recommending approval of a first amendment to said agreement with QLM Consulting, Inc.

Discussion/Action: The first amendment to said agreement with QLM Consulting, Inc., was approved and its execution authorized. Vote: 11-0-0-0.

6e(2) Approval of a first amendment to the consultant agreement with Malcolm Pirnie, Inc. for the Plant Reliability and Hydraulic Capacity Study, extending the term of the agreement from December 31, 2000 to August 31, 2001, at no additional cost to the City. (Environmental Services)

Documents filed: (1) Memorandum from Director of Environmental Services, Carl W. Mosher, dated November 6, 2000, recommending approval of a first amendment to said agreement with Malcolm Pirnie, Inc. (2) Letter from the Treatment Plant Advisory Committee dated November 10, 2000, stating concurrence with the Staff recommend-ation.

Discussion/Action: The first amendment to said agreement with Malcolm Pirnie, Inc., was approved and its execution authorized. Vote: 11-0-0-0.

6e(3) Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2000-2001 #20, 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 November 6, 2000, recommending approval of said open purchase orders.

Discussion/Action: The award of open purchase orders List No. 20 was approved and the Director of General Services authorized to execute the purchase orders. Vote: 11-0-0-0.

6e(4) Authorization for the Director of General Services to execute a change order to the purchase order with Farber Specialty Vehicles (Columbus, Ohio) for one sixteen-foot step van bomb unit, in the amount of $6,359.68, for a total purchase cost of $138,632.61, including tax. (General Services)

Documents filed: Memorandum from Director of General Services, Steve S. Yoshino, dated November 6, 2000, authorizing the Director of General Services to execute a change order to said purchase order with Farber Specialty Vehicles.

Discussion/Action: The authorization for the Director of General Services to execute a change order to said purchase order with Farber Specialty Vehicles was approved and its execution authorized. Vote: 11-0-0-0.

6e(5) Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with Public Safety Consultants, Inc. for consultant services for the Computer Aided Dispatch System, for the period November 1, 2000 to October 31, 2002, at a total cost of $110,879, including tax. (Police)

Documents filed: Memorandum from Chief of Police, William M. Lansdowne, November 2, 200, recommending adoption of said resolution.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Resolution No. 70023, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement with Public Safety Consultants, Inc., to Provide Consultant Services for an Updated Computer Assisted Dispatch/Automatic Vehicle Location System for the Period November 1, 2000, to October 31, 2002, in an Amount Not to Exceed $110,879”, was adopted. Vote: 11-0-0-0.

6e(6) Approval of an agreement for consultant services with Cottong & Taniguchi for the Bernal Park Master Plan Amendment and Improvements Phase 2, for a base fee amount of $135,000, and $10,000 for additional services, for a total agreement amount not to exceed $145,000. (Public Works)

Documents filed: Memorandum from the Director of Public Works, dated November 5, 2000, recommending approval of said agreement with Cottong & Taniguchi.

Discussion/Action: The agreement for consultant services with Cottong & Taniguchi was approved and its execution authorized. Vote: 11-0-0-0.

6e(7) Report on bids and award of contract for the Chynoweth Park Tot Lot Renovation Project to the low bidder, Blossom Valley Construction, Inc., for the base bid only, in the amount of $178,800. CEQA: Exempt. (Public Works)

Documents filed: Memorandum from the Director of Public Works, dated November 5, 2000, recommending award of said contract to the low bidder, Blossom Valley Construction, Inc.

Discussion/Action: The award of said contract to the low bidder, Blossom Valley Construction, Inc., was approved and its execution authorized. Vote: 11-0-0-0.

6e(8) Approval of amendments to agreements for commercial food waste composting services with the following contractors to extend the term to December 31, 2002, at no additional cost to the City:

(a) Browning-Ferris Industries of California, Inc.

(b) Zanker Road Resource Management, Ltd.

CEQA: Exempt. (Environmental Services)

[Deferred from 11/21/00 – Item 6e(4)]

Documents filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated October 30, 2000, recommending approval of amendments to said agreements with said contractors.

Discussion/Action: The amendments to said agreements with Browning-Ferris Industries of California, Inc., and Zanker Road Resource Management, Ltd., were approved and their execution authorized. Vote: 11-0-0-0.

6e(9) Approval of a 30-year lease agreement with San José Conservation Corps for the lease of City owned property located at 2650-A Senter Road, for a monthly rent of $1 conditioned upon the Corps continued provision of community service. (Public Works)

[Deferred from 11/21/00 – Item 6e(8)]

Documents filed: Memorandum from the Director of Public Works, dated October 30, 2000, recommending approval of said agreement with San José Conservation Corps.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. The agreement with San José Conservation Corps was approved and its execution authorized. Vote: 11-0-0-0.

Routine Legislation

6f(1) Acceptance of the Library’s report on the proposed Amnesty Program. (Library)

Documents filed: Memorandum from City Librarian Jane Light, dated November 7, 2000, recommending Council accept the proposed Library Amnesty Program.

Discussion/Action: The Library Amnesty Program was approved. Vote: 11-0-0-0.

6f(2) Approval of City Auditor Gerald Silva’s travel to Tempe, Arizona, December 1, 2000, to attend the Arizona Local Government Auditors Association Conference at no cost to the City. (City Auditor)

Documents filed: None.

Discussion/Action: The travel for City Auditor Gerald Silva to attend the Arizona Local Government Auditors Association Conference was approved. Vote: 11-0-0-0.

6f(3) Adoption of a resolution declaring the results of the General Municipal Election held on November 7, 2000. (City Clerk)

(Rules Committee referral 11/22/00)

Documents filed: None.

Discussion/Action: This item was deferred to December 12, 2000.

6f(4) Adoption of a resolution amending Resolution No. 70020 which called for a Special Municipal and Run-Off Election to be held on March 6, 2001 and April 17, 2001, to request consolidation with any other election which may be held in Santa Clara County on that date. (City Clerk)

Documents filed: None.

Discussion/Action: Resolution No. 70024, entitled: “A Resolution of the Council of the City of San José Amending Resolution No. 70020 to also Request the Registrar of Voters to Consolidate the Election to Fill the Vacancy in Council District 5 with Any Other Election which may be Held on the Dates of the Special Election”, was adopted. Vote: 11-0-0-0.

COMMISSION, COMMITTEE, AND STANDING REPORTS

7b Report of the Rules Committee – November 15, 2000

Vice Mayor Fiscalini, Chair

Documents filed: Rules Committee report of November 15, 2000.

(1) Review November 28, 2000 Draft Agenda

The Committee approved the November 28, 2000 City Council agenda with two additions.

(2) Add New Items to November 21, 2000 Amended Agenda

The Committee approved one addition to the November 21, 2000 City Council agenda.

(3) Meeting Schedules

(a) Approve City Council meeting schedule – January to August 2001. Attachment: Memorandum from Deanna Santana, Assistant to the City Manager, dated November 9, 2000, requesting approval of the City Council Meeting Schedule for January through August 2001.

The Committee approved the City Council Meeting Schedule for the period January through August 7, 2001, with a recommendation to schedule agenda items in a manner that allows Council Members adequate time to review all material prior to Council meetings.

(b) Request to schedule a Study Session. Attachment: Memorandum from Deanna Santana, Assistant to the City Manager, dated November 13, 2000, requesting a Study Session be scheduled.

The Committee approved a Study Session on the San José Municipal Water System to be held November 29, 2000, 1:30-4:30 p.m., in Council Chambers. The Committee also rescheduled the starting time for Rules/Agency Rules Committee to 1:15 p.m. on November 29, 2000.

(4) The Public Record. Attachment: (1) Memorandum from City Clerk Patricia L. O’Hearn, dated November 9, 2000, listing the items transmitted to the Administration and those items filed for the Public Record for the period November 2-7, 2000.

The Committee noted and filed the Public Record.

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

There were none.

(6) Oral communications

None presented.

(7) Adjournment

The meeting was adjourned at 2:07 P.M.

Discussion/Action: Upon motion by Council Member Fiscalini, seconded by Council Member Shirakawa, Jr., and unanimously carried, the Rules Committee report and actions of November 15, 2000, were accepted. Vote: 11-0-0-0.

7c Report of the Finance and Technology Committee – November 15, 2000 Special Meeting

Council Member Woody, Chair

Documents filed: Finance and Technology Committee minutes of November 15, 2000.

(1) Update on Municipal Water Request for Proposal (RFP). Memorandum from Senior Deputy City Manager Darrell Dearborn, dated November 9, 2000, recommending the Committee: (a) Receive the presentation by City consultants HSR Engineering, Inc., and Hawkins, Delafield, and Wood regarding the structure and content of an RFP to solicit proposals to manage or lease the Municipal Water System, (b) Determine whether the RFP should solicit proposals to manage or lease the System, or both, and (c) Recommend to City Council that an RFP Team be established, including representatives of the Administration, the City Attorney’s Office and the consultants, to draft the RFP, including the basis for setting water rates during the term of agreement, and bring it back to the City Council for its review and approval, and (d) Recommend to City Council that the City retain control of the recycled water system, and (e) Recommend that the Administration prepare the required appropriation actions to provide funding for preparation of the RFP, evaluation of the responses and negotiations of the final agreement(s).

The Committee recommended approval of Item #1 of the Staff report to receive the presentation of the City’s consultant, HDR Engineering, Inc., and the law firm of Hawkins, Delafield and Wood, regarding the structure and content of an RFP to solicit proposals to manage or lease the Municipal Water System; further, a third option be included in the presentation, which is a “no project” that incorporates effectiveness/efficiency measures and potential capitalization opportunities. The presentation shall also provide for a broader discussion of water policies and the overall benefit of proceeding with an RFP should be evident by the end of the Council work session on November 29, 2000.

(2) Budget Calendar. Attachment: Memorandum from Budget Director Larry D. Lisenbee, dated November 9, 2000, recommending adoption of the proposed FY 2001-2002 Budget Calendar as presented in the attachment and explained in the memorandum.

The Committee accepted the budget calendar.

7c Report of the Finance and Technology Committee – November 15, 2000 Special Meeting (Cont’d.)

Council Member Woody, Chair

(3) Oral petitions

None presented.

(4) Adjournment

The meeting was adjourned at 11:40 A.M.

Discussion/Action: Upon motion by Council Member Woody, seconded by Council Member LeZotte, and unanimously carried, the Finance and Technology Committee report and actions of November 15, 2000, were accepted. Vote: 11-0-0-0.

LAND USE AND DEVELOPMENT

8a PUBLIC HEARING and approval of an ordinance to comprehensively rewrite and update Title 20, the Zoning Code. CEQA: Resolution No. 65459. Director of Planning, Building and Code Enforcement and Planning Commission recommend approval (6-0-1). (Planning, Building, and Code Enforcement)

(Continued from 10/17/00 – Item 15a and 11/14/00 – Item 15a))

Documents filed: (1) Supplemental memorandum from the Director of Planning, Building and Code Enforcement, James R. Derryberry, dated November 6, 2000, recommending Council take the following actions with regard to the approval of the comprehensive rewrite of Title 20, the Zoning Code: (a) Adopt a protracted effective date beyond the typical 30 days to 60 days from the date of the ordinance’s adoption, and (b) Approve a concept of a Council Initiated Rezoning Program, and to the extent there are budget implications, refer the approved program to the mid-year budget process. (2) Memorandum from Planning Commission Secretary, James R. Derryberry, dated November 6, 2000, recommending Council approve the proposed ordinance and adopt a protracted effective date for the ordinance of 90 days. (3) Notice of Public Hearing on proposed amendments to Title 20, the Zoning Code, dated August 21, 2000, and Proof of Publication executed on September 16, 2000, submitted by the City Clerk. (4) Correspondence from Kerri Lawnsby-Comey, both dated December 1, 2000, proposing updates to the City’s flag lot policy.

Discussion/Action: James R. Derryberry, Director of Planning, Building and Code Enforcement, stated the City’s zoning code has not been updated since 1929, and because of numerous amendments has become quite complex. He stated the proposed rewrite will simplify the way the code is organized and update land use provisions to reflect modern business, industry and housing development. He stated, most importantly, the changes would align the zoning districts, land use densities and categories with those of the General Plan and be compatible with the adopted design guidelines. He stated key changes involve reorganization of the code for ease of use, streamlining the permitting process, simplifying the code by reducing the number of zoning districts, and clarifying the enforcement authority of the Director of Planning by putting into Title 20 the authority that now exists in other chapters of the San José Municipal Code. Upon Council approval, he stated implementation efforts would include modification of zoning maps, publication of the new code, conducting public outreach to the original focus groups and development and business communities, and conducting Staff training. He stated Staff will come back with a Council-Initiated Rezoning Program for select areas of the City where there needs to be a better fit of the new districts with the existing General Plan. Council Member Shirakawa, Jr., asked what is being proposed in terms of garage conversions and the requirement of a Conditional Use Permit for auto body and paint shops. Director Derryberry stated the conversion of garages to living space, which has been allowed as an exception to the zoning code, has resulted in overcrowding and created such a serious problem of on-street and front lawn parking that Council adopted an ordinance to regulate those activities, and the proposed ordinance would remove the garage conversion exception. Regarding the requirement of a Conditional Use Permit for auto body and paint shops, Senior Planner Jeannie Hamilton stated the draft code would retain those activities as a permitted use in the light and heavy industrial districts, and Senior Deputy City Attorney Reneé Gurza stated in addition to the land use regulations pertaining to auto body shops, Council has given Staff a referral to adopt operating regulations and Staff from the Departments of Planning, Building and Code Enforcement, Environmental Services, and Police and Fire have been meeting with the auto body industry to develop appropriate operating regulations. Council Member Chavez expressed concerns about moving forward on the issue of allowing detached or attached duplexes in R-2 and stated she would prefer that issue be included in Strong Neighborhoods Initiative discussions, especially for areas where density and inconsistent zoning has impacted older neighborhoods. She expressed concerns about impacts from lighting and parking issues at auto sales and gas station businesses and suggested making those uses subject to conditional use permits within the newly created commercial neighborhood classification. Responding to Council Member Powers’ inquiry about how garage conversion restriction would affect the so-called “granny” or second units, Director Derryberry stated all existing garage conversions would be legal and would become non-conforming uses. He stated the garage conversion exception is being removed because of impacts to the neighborhood but does not indicate that “granny units” or second units are not appropriate at some future time and that issue is a separate matter which Staff is working on through Council Committee. Senior Planner Jeannie Hamilton stated in response to comments from Council Member Chavez and Council Member LeZotte that the draft proposes auto sales to be a permitted use in the General/Commercial and Neighbor-hood/Commercial designation and a conditional use in the Pedestrian/Commercial; however, staff can respond to the concerns expressed by making auto sales a conditional use in Neighborhood/Commercial also. City Attorney Doyle advised that a change is proposed which would authorize the Executive Director of the Redevelopment Agency to initiate zoning changes in Redevelopment Agency Project Areas. The following individuals spoke in opposition to the proposed changes: William Garbett; Elizabeth Manley, President, College Park Neighborhood Association; and Tom Comey. Vice Mayor Fiscalini requested Staff speak with Mr. Comey regarding his concerns, and moved approval of the Staff recommendation. Council Member Powers seconded the motion. Council Member Chavez requested the motion be amended to defer detached duplexes and to make auto sales and gas stations conditional uses within NC (Commercial/Neighborhood) districts. Vice Mayor Fiscalini accepted the amendment to his motion, with the direction for Staff to report back in six months to consider the detached duplex issue in conjunction with the Strong Neighborhoods Initiative Program. Council Member Dando asked if the projected update to the flag lot policy should be included and Director Derryberry recommended holding that issue in abeyance until the detached duplex issue has been decided. Mayor Gonzales expressed concerns about so-called “granny units” which are ostensibly for the purpose of housing an elder family member, but which can evolve into an additional unit and impact the neighborhood with parking and other problems. Because the City has no ability to restrict tenancy of a particular unit, he stated he looks forward to discussions on this issue in the future. Director Derryberry requested authorization to process applications that are in progress under the old ordinance. On a call for the question, the motion carried unanimously, Staff recommendations dated November 6, 2000, were approved as amended to defer the detached unit allowance in the R-2 District for report back within six months and to require conditional use permits for auto sales and gas station businesses with CN (Neighborhood Commercial) designation, Staff was directed to consider that all applications which are filed and deemed complete prior to the effective date of the ordinance—projected to be February 19, 2001—remain subject to the current Title 20; and Ordinance No. 26248, entitled: “An Ordinance of the City of San José Amending Title 20 of the San José Municipal Code in its Entirety to Comprehensively Update and Revise the Zoning Code”, was passed for publication. Vote: 11-0-0-0.

GENERAL GOVERNMENT

9a Acceptance of the follow-up report for the 2002 Recycle Plus Program, which forecasts that existing garbage rates can be maintained until FY 2005-06 with the service enhancements contained in the proposals previously approved by Council, and report on labor peace issues related to the Request for Proposals. (Environmental Services)

(Deferred from 10/31/00 – Item 9d et al., and 11/14/00 – Item 9f)

Documents filed: None.

Discussion/Action: This item was deferred to December 12, 2000.

9b (1) Adoption of a resolution amending Resolution No. 69236 establishing a Fee Schedule for Tow Services Agreements.

(2) Approval of amendments to the agreements with the tow operators to effectuate the changes in the storage rates.

(Planning, Building and Code Enforcement)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated November 20, 2000, recommending adoption of a resolution amending Resolution No. 69236 establishing a fee schedule for the Tow Services Agreement and approval of amendments to the agreements with the tow operators to effectuate the changes in the storage rates.

Discussion/Action: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers, and unanimously carried, the amendments to said agreements with the tow operators were approved and Resolution No. 70025, entitled: “Resolution of the Council of the City of San José Adopting a Fee Schedule for Tow Services Agreements”, was adopted. Vote: 11-0-0-0.

9c Adoption of appropriation ordinance and funding sources resolution amendments in the General Fund in the amount of $790,771, for Planning, Building and Code Enforcement Department to respond to increased development levels. (City Manager’s Office/Planning, Building, and Code Enforcement)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, and Budget Director Larry D. Lisenbee, dated November 15, 2000, recommending approval of appropriation ordinance and related revenue resolution amendments for the Department of Planning, Building and Code Enforcement to respond to increased development levels by the creation of sixteen new positions.

Discussion/Action: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers, and unanimously carried, Ordinance No. 26249, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26141 to Appropriate Moneys in the General Fund In the Amount of $790,771 for Planning, Building and Code Enforcement Department to Respond to Increased Development Levels; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, and Resolution No. 70026, entitled, “A Resolution of the City of San José Amending Resolution No. 69683 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2000-2001 to Adjust Revenues in the General Fund”, were adopted. Vote: 11-0-0-0.

9e Adoption of a resolution:

(1) Approving business terms for a construction loan of up to $1,510,000 and a permanent loan of up to $1,571,000 to Monte Vista Gardens Senior Housing Associates, L.P., or its affiliate, for the development of a 69-unit housing project affordable to extremely low and very low-income seniors on a 1.55-acre site located on the west side of South Capitol Avenue, north of Lombard Avenue.

(2) Increasing the conditional grant from $422,000 to $682,727 to Monte Vista Gardens Senior Housing Associates, L.P., or its affiliate.

(3) Approving business terms for a permanent loan of up to $2,392,000 to ROEM Development Corporation.

(Housing)

Documents filed: Memorandum from Director of Housing, Alex Sanchez, dated November 6, 2000, recommending adoption of said resolution.

Discussion/Action: Robert Emami, ROEM Corporation, spoke in support of the proposal. Upon motion by Council Member Diaz, seconded by Council Member Fiscalini, and unanimously carried, Resolution No. 70027, entitled: “A Resolution of the Council of the City of San José (i) Approving Business Terms for a Construction Loan of up to $1,500,000 and a Permanent Loan of up to $1,571,000 to Monte Vista Gardens Senior Housing, L.P., or its Designated partnership, for the Development of a 69-Unit Rental Housing Project Affordable to Low, Very Low, Extremely Low Income Households on a 1.55-Acre Site Located on the West Side of South Capitol Avenue, North of Lombard Avenue, (ii) Increasing the Conditional Grant from $422,000 to $682,727 to Monte Vista Gardens Housing, L.P., or its Affiliate, and (iii) Approving Business Terms for a Construction Loan of up to $2,300,000 and Permanent Loan of up to $2,392,000 to ROEM Development Corporation”, was adopted. Vote: 11-0-0-0.

9f Adoption of a resolution:

(1) Authorizing the issuance of tax-exempt multifamily housing revenue bonds in the aggregate principal amount not to exceed $3,740,000;

(2) Approving a loan of bond proceeds to Monte Vista Gardens Senior Housing, L.P., a California limited partnership created by Foundation for Affordable Housing III, Inc. and ROEM Development Corporation for financing the construction of the Monte Vista Gardens Senior Housing;

(3) Approving in substantially final form the Bonds, Indenture, Financing Agreement, Regulatory Agreement and Declaration of Restrictive Covenants and the Bond Purchase Agreement; and

(4) Authorizing the Acting Director of Finance and Director of Housing to execute and, as appropriate, to negotiate, execute, and deliver these documents and other related documents as necessary.

(Housing/Finance)

Documents filed: Memorandum from Acting Director of Finance, Mark Burton, and from Director of Housing, Alex Sanchez, dated November 6, 2000, recommending adoption of said resolution.

Discussion/Action: Upon motion by Council Member Diaz, seconded by Vice Mayor Fiscalini, and unanimously carried, Resolution No. 70028, entitled: “A Resolution of the Council of the City of San José Authorizing the Issuance of Multifamily Housing Revenue Bonds and the Loan of the Proceeds Thereof for the Financing of the Monte Vista Gardens Senior Apartments and Approving Other Related Documents and Actions”, was adopted. Vote: 11-0-0-0.

9g Adoption of a resolution:

(1) Authorizing the issuance of two series of tax-exempt multifamily housing revenue bonds in the combined aggregate principal amount not to exceed $11,020,000;

(2) Approving a loan of bond proceeds to Willow Glen Housing Partners, L.P., a California limited partnership created by Community Housing Developers, Inc., Related/Willow Glen Development Co., RCC Credit Facility, LLC, for financing the construction of the Willow Glen Senior Apartments;

(3) Approving in substantially final form the Bonds (both Series 2000A and 2000B in the combined aggregate amount not to exceed $11,020,000), Indenture of Trust, Loan Agreement and Regulatory Agreement and Declaration of Restrictive Covenants; and

(4) Authorizing the Acting Director of Finance and Director of Housing to execute and, as appropriate, to negotiate, execute, and deliver these documents and other related documents as necessary.

(5) Authorizing the City Manager to negotiate and execute an agreement with E. Wagner & Associates for financial advisory services in an amount not to exceed $55,000, for the term of September 12, 2000 to January 31, 2001.

(6) Authorizing the City Attorney to negotiate and execute an agreement with Brown & Wood for bond counsel services in an amount not to exceed $55,000, for the term of September 12, 2000 to January 31, 2001.

(Housing/Finance)

Documents filed: Memorandum from Acting Director of Finance, Mark Burton, and from Director of Housing, Alex Sanchez, dated November 6, 2000, recommending adoption of said resolution.

Discussion/Action: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers, and unanimously carried, Resolution No. 70029, entitled: “A Resolution of the Council of the City of San José Authorizing the Issuance of Multifamily Housing Revenue Bonds and the Loan of the Proceeds Thereof for the Financing of the Willow Glen Senior Apartments and Approving Other Related Documents and Actions”, was adopted. Vote: 11-0-0-0.

9h Adoption of a resolution authorizing the City Manager to execute all documents necessary to enter into a Software License and Services Agreement with Oracle, Inc. for expanded licensing and annual product support, for a total term of five (5) years, at a total cost of $2,225,576, with a total first year cost of $700,000. (General Services/Information Technology)

Documents filed: Memorandum from Director of General Services, Steve S. Yoshino, dated November 15, 2000, recommending adoption of said resolution.

Discussion/Action: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Diaz, and unanimously carried, Resolution No. 70030, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Execute All Documents Necessary for a Software License and Services Agreement with Oracle, Inc., was adopted. Vote: 11-0-0-0.

9i Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with Santa Clara County Office of Education Children Services Department (COE) in an amount not to exceed $643,000, for the development of facilities at McKinley and George Shirakawa, Sr. Elementary Schools to be operated as San José Smart Start Early Childhood Development Centers, for a term ending June 30, 2015. CEQA: Exempt. (Parks, Recreation and Neighborhood Services)

Documents filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated November 6, 2000, recommending adoption of said resolution.

Discussion/Action: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Shirakawa, Jr., and unanimously carried, Resolution No. 70031, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement with Santa Clara County Office of Education, Children Services Department for the Development of Facilities at McKinley Elementary School and George Shirakawa, Sr. Elementary School to be Operated as San José Smart Start Early Childhood Education Development Centers, in an Amount Not to Exceed $643,000, for a Term Ending June 30, 2015”, was adopted. Vote: 11-0-0-0.

9j (1) Report on bids and award of contract for the Japanese Friendship Garden Restroom (Revised) Project to the low bidder, HRB Construction, for the base bid and Add Alternates Nos. 1 and 2, in the amount of $397,400, and approval of a contingency in the amount of $39,000. CEQA: Exempt.

(2) Adoption of appropriation ordinance amendments in the City-wide Construction and Conveyance Tax Fund, increasing the appropriation for the Japanese Friendship Garden Restroom and Picnic Area Renovation Project by $467,000.

(Public Works/City Manager’s Office)

Documents filed: (1) Memorandum from the Director of Public Works, dated November 6, 2000, recommending award of said contract to the low bidder, HRB Construction. (2) Memorandum from Budget Director Larry D. Lisenbee, dated November 13, 2000, recommending approval of appropriation ordinance amendments.

Discussion/Action: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers, and unanimously carried, the award of said contract and related contingency to the low bidder, HRB Construction, was approved, and Ordinance No. 26250, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26141 to Appropriate Moneys in the City-Wide Construction and Conveyance Tax Fund in the Amount of $467,000, for the Japanese Friendship Garden Restroom and Picnic Area Renovation Project, and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, was adopted. Vote: 11-0-0-0.

JOINT CITY COUNCIL/REDEVELOPMENT AGENCY ITEMS

The Council of City of San José convened the Redevelopment Agency Board at 3:26 p.m. to consider Item 11a in a Joint Session.

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

(1) Approving the transfer of the Redevelopment Agency-owned property located at 937-943 Locust Street to the Housing Department to provide transitional housing for fire victims and others displaced through no fault of their own;

(2) Authorizing the expenditure of up to $500,000 in 20% Low and Moderate Income Housing Funds to make necessary repairs to the SRO building;

(3) Authorizing the City Manager to select a provider to own and manage the property and to negotiate the terms of occupancy; and

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

(Fire/Housing) (Deferred from 11/7/00 – Item 9c et al., and 11/21/00 – Item 11b)

Documents filed: None.

Discussion/Action: This item was deferred to December 12, 2000.

The Redevelopment Agency Board was adjourned at 3:27 p.m.

RECESS/RECONVENE

The City Council recessed at 3:30 p.m. to joint sessions with the San José Financing Authority and the San José Redevelopment Agency Board and reconvened at 3:55 p.m. in Council Chambers, City Hall.

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

Absent: Council Members - Diaz. (excused).

9d (1) Approval of the final project budget estimate for the New Civic Center Project in the amount of $240 million for the facility cost and $33 million in site acquisition and relocation costs by the Redevelopment Agency, for a total project budget of $273 million. CEQA: Resolution No. 68905.

(2) Direction to staff to continue to study the financing, construction, and operation of the 400 on-site underground parking spaces and 1250 off-site parking spaces in two parking structures; one at 4^th and St. John Streets and a second on the west side of Sixth Street between Santa Clara and St. John Streets to serve the New Civic Center, which would be financed through the Parking Fund and leased by the City.

(3) Direction to staff to pursue the Construction Management/Multiple Prime Contracts project delivery method for the New Civic Center.

(City Manager’s Office/Public Works)

Documents filed: (1) Memorandum from Senior Deputy City Manager Darrell Dearborn, dated November 21, 2000, recommending a final budget estimate for the New Civic Center Project and direction to continue studying the financing, construction and operation of two parking structures, to be financed through the Parking Fund and leased by the City, and to pursue the Construction Management/Multiple Prime Contracts project delivery method. (2) Memorandum from Mayor Gonzales, dated November 28, 2000, recommending Council approved the Staff recommendations. (3) Hard Copies of the Staff presentation made by Senior Deputy City Manager Dearborn. (4) Correspondence from Mark A. Cottrell, dated December 1, 2000, in opposition to the proposed project.

Discussion/Action: City Manager Del Borgsdorf stated today’s presentation of the New Civic Center Project will provide the final project budget estimate for Council approval and report on assignments to Staff at the September 2000 meeting, specifically to look for ways to keep building costs within original estimates. He stated construction costs have escalated while at the same time costs to the City for leased space has escalated. However, through value engineering efforts, he stated Staff has been able to keep the building within its targets and the method proposed will preserve the projection of $100 million in taxpayer savings. Gary Thompson, Project Manager and Deputy Director of Public Works, introduced Jim Crawford of Richard Meier and Associates, Rob Steinberg, Steinberg Group, and Michael O’Brien, Turner Construction, who will assist in presenting Staff’s recommendations on the final budget, location and financing, parking and project delivery. With the aid of slides, Mr. Thompson presented a financial feasibility review, escalation and market impacts, cost saving measures, project parking alternatives, and the project budget estimate. He stated relocating the Civic Offices to the downtown will provide increased efficiencies and productivity, enhanced customer service, and save taxpayer money. He compared the capital and operating costs of a new Civic Center and a renovated City Hall versus projected lease costs, reviewed market rate impacts, and stated inflation which is normally a national trend but a phenomena of the Bay Area, has been part of the project planning from the beginning and the challenge of escalating cost for materials, labor, equipment and competitive bids remain part of the estimation process as the project moves forward. He stated pursuant to Council direction in September, Staff exhaustively reviewed value engineering, project delivery methods, and space requirements to identify additional ways to save money on the project. He stated value engineering efforts, which seek to reduce construction costs while retaining value in the project by modifying the scope without reducing the basic intent of the project, began with the conceptual design and continued at the schematic level, resulting in an additional $10 million saving and a total project reduction of $50 million, and will continue to be used throughout the project to help ensure the project stays on budget. He stated Staff looked at alternative project delivery methods with the goal of saving money and time, minimizing claims, and retaining quality in the building and, of four methods reviewed, Staff believes the Construction Management/Multiple Prime (CM/MP) method is the most suitable for large projects in the public sector and should offer significant savings to the project budget. He stated the CM/MP method will allow the City to work directly with a design consultant, that a construction management firm would be brought into the process early in the design process, and various subcomponents would be bid in phase, with the construction management firm assisting in management of the contracting packages to ensure that a delay in one component does not delay the entire project. Addressing space requirements, he stated the usable square footage of the current design totals 395,000 square feet and includes space for an additional 200 employees beyond the current workforce. Regarding parking alternatives, he stated goals throughout the project have been to ensure adequate off-street parking to accommodate all of the demands for visitor and employee parking and to ensure that whatever parking facilities are built, steps are taken to minimize impacts on the direct neighborhoods. He stated Staff believes it is appropriate to build out one full level of parking beneath the complex for a total underground parking facility of 400 spaces—since any more spaces on-site would impact the foundation area by raising significant issues related to ground water for such a large site. He stated Staff believes the sites previously recommended at Sixth and at Fourth Streets are the appropriate locations for the off-site parking facilities which should be built as much as possible with underground as well as above-grade components, and Staff recommends financing those parking facilities through the Parking Authority. He stated Staff will work with the neighborhood regarding impacts of above-grade parking facilities and will explore the ability for mixed use facilities at both the off-site facilities. He explained the progression of the project estimates which were developed with limited design information, resulted in what is now termed the “base budget” of $260 million, through the conceptual design phase, prioritization of components, with value engineering review at each stage and the decision to fund parking out of the parking fund. In conclusion, he stated the recommendation is $273 million for the on-site building portion of the project, composed of land acquisition, project design, and construction costs, in addition to a parking budget of $44 million for construction and $8 million for land. Responding to questions from Council Member Woody regarding the projected employee capacity of the new facility, City Manager Borgsdorf stated the facility as proposed provides an additional 200 work spaces which, if current growth patterns continue, would place the facility at capacity at its occupancy in 2004. He stated the Administration over the next four years will review growth patterns and service provision methods to explore ways of decentralizing functions and matching efficiencies of service with other public facilities, one purpose of which would be to minimize growth in the City Hall building. In reply to questions from Council Member Dando about public review of the parking plan, Deputy Director Gary Thompson stated the new parking plan will be reviewed by the Civic Center Parking and Traffic Committee and by the Parking Advisory Committee in December, 2000. Mayor Gonzales stated the specifics of the parking plan will be resolved after the committees have had an opportunity to review the proposal. To Council Member Dando’s inquiry about the feasibility of using the Guaranteed Maximum (GM) construction method, Michael O’Brien of Turner Construction explained the CM/MP method is the closest to the GM method, which the City is precluded from using by the public procurement code. The following individuals addressed Council regarding the proposed project: William J. Garbett, Robert G. Dollar-Brown, Albert J. Ruffo, Ross Signorino, Don Gagliardi, Northside Neighborhood Association and Downtown Neighborhood Leadership Forum; Walt Phillips, and Keith Allan Watt, PAC and Horace Mann School. Vice Mayor Fiscalini moved approval of the Staff recommendation dated November 21, 2000 and Mayor Gonzales’ recommendations dated November 28, 2000. Council Member Powers seconded the motion. Council Member Chavez stated she is pleased with the addition of parking under City Hall and with the direction of providing underground parking off-site. She stated the proposed actions are a place holder for the parking spaces which are needed and the details will come back to Council after review by the Parking and Traffic and Parking Advisory Committees, that meetings have already been held with the Chairs of both committees and it is important to move forward to keep the project on track and continue working to resolve the parking issue. Council Member Woody stated she agrees with the CM/MP construction method and appreciates the work Staff has done to lower the costs and believes a quality facility that will last and meet the needs of the City should be built. However, she stated she does not support the budget proposal and disagrees with how the parking is being funded, therefore, while she support Staff’s third recommendation, she does not support the motion. Council Member Dando stressed the need to consider operating and maintenance costs for the facility, suggested child care be provided in close proximity to City Hall, and expressed concerns about budget escalations. Council Member LeZotte stated for the record that she is opposed to Recommendation No. 1 and 2 and will support Recommendation No. 3 of the Staff report. She stated she objects to the move of City Hall and to the escalating costs, and while appreciating Staff’s efforts to reduce costs, because of her concerns about removing parking costs from base budget and to financing parking through the Parking Authority, she will oppose the motion. Council Member Chuck Reed stated as a new Council Member who is not familiar with the previous reports and the project’s progression to this point, he would like to review Staff’s data on the proposed budget and lease operating costs to satisfy himself that the project is in compliance with Measure I, which he supported, and pending his review of those issues, he will not support the proposal. Mayor Gonzales stated Council has discussed the Measure I test on numerous occasions and in September 2000 when Council approved the schematic design, information available at that time indicated those cost figures met the Measure I test. He stated the New Civic Center package which includes all the costs for the project, including the cost of renovating the current building for reuse, continues to meet the Measure I test. He stated Measure I is important because when the voters approved the move of City Hall to the downtown, they understood the issue of building as opposed to leasing and the monetary benefits that would accrue. He stated with value engineering and the CM/MP construction recommended, even with escalating construction costs, Staff has accomplished the balance of trade-offs between a Civic Center that is functional, will save $100+ million over time. and which can generate community pride. Regarding the parking issue, he stated support for more parking on-site and a multiple shorter garage with mixed use potential as was suggested in the Urban Land Institute’s report. By approving this budget today, he stated Council is not approving the entire parking plan because the plan will go back through the appropriate community committees, and he looks forward to continued work on the issue as the deliberations are concluded. Mayor Gonzales expressed appreciation to Richard Meier and Associates for their efforts on designing a truly great building which will be a signature civic center for the San José area and the entire nation, and thanked the consultants from Steinberg Associates and Turner Construction for their contributions. He thanked City and Agency staff, including former Director of Public Works Ralph Qualls, Deputy Director Gary Thompson, Mark Burton, Julia Cooper and Richard Desmond from Finance; from the City Attorney’s Office, Rick Doyle and Patty Deignan and City Manager Del Borgsdorf and Senior Deputy City Manager Darrell Dearborn. On a call for the question, the motion carried, and Council approved the final budget estimate for the New Civic Center Project, as recommended in the Staff recommendation dated November 21, 2000, and as modified in the memorandum from Mayor Gonzales dated November 28, 2000, and directed Staff to proceed with the development of on-site underground parking and two off-site parking structures to be financed through the Parking Fund; and to pursue the Construction Manage-ment/Multiple Prime Contracts project delivery method. Vote: 8-3-0-0. Noes. LeZotte, Reed, Woody.

RECESS/RECONVENE

Following Item 9d, the City Council recessed at 5:46 p.m. and reconvened at 7:08 p.m. in Council Chambers, City Hall.

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

Absent: Council Members - None.

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 were granted. Vote: 11-0-0-0.

5d Presentation of a commendation to Obadiah Diaz Wright on his recognition by the San Francisco Zoo. (Chavez) (Rules Committee referral 11/22/00)

Documents filed: None.

Discussion/Action: Council Member Chavez joined Mayor Gonzales at the podium to present a commendation to Obadiah Diaz Wright on his recognition by the San Francisco Zoo, which honored Obadiah for his commitment to the preservation of the penguin in its natural habitat.

PUBLIC HEARINGS

Items 15a and 15b were considered together.

15a PUBLIC HEARING ON GENERAL PLAN AMENDMENT for the property located on the west side of Monterey Highway (State Route 82) at the southeasterly base of Tulare Hill to amend the Land Use/Transportation Diagram designation from Campus Industrial to Public/Quasi-Public on 20 gross acres. (Calpine/Bechtel Joint Venture, Owner/Developer). CEQA: Resolution to be adopted. Director of Planning, Building and Code Enforcement recommends No Change to the General Plan. Planning Commission recommends approval (5-2-0).

GP 99-2-1 - District 2

15b PUBLIC HEARING ON PLANNED DEVELOPMENT PREZONING/ REZONING of the property located on the west side of Monterey Highway (State Route 82) at the southeasterly base of Tulare Hill, from A-Agricultural Zoning District to A(PD) Planned Development Zoning District, to allow the construction of a 600 megawatt, natural gas-fired, combined cycle power plant on 20 gross acres. (Calpine/Bechtel Joint Venture, Owner/Developer). CEQA: Resolution to be adopted. Director of Planning, Building and Code Enforcement recommends denial. Planning Commission recommends approval (5-2-0).

PDC 99-08-071 - District 2

Documents filed: (1) Memorandum from Mayor Gonzales, Vice Mayor Fiscalini and Council Members Powers, Dando and Diquisto, dated November 20, 2000, recommending Council deny the requested change to the existing Campus Industrial General Plan designation and deny the proposed Prezoning/Rezoning to A(PD) Planned Development District in connection with the proposed Metcalf Energy Center located at the southeasterly base of Tulare Hill and direct the Administration to work with the Mayor’s Office to schedule a Council special session on energy needs for the region, to include review of supply and demand projections, siting options, and opportunities to develop conservation programs in San José and to initiate State legislation that would address conservation similar to what AB 939 did for landfill diversion programs. (2) Memorandum from Council Member LeZotte, dated November 28, 2000, recommending Council deny General Plan Amendment GP 99-2-1 and Planned Development Prezoning/Rezoning PDC 99-08-071 (Metcalf Energy Center) and indicate to the California Energy Commission (CEC) that overriding local land use designations by siting electrical generation facilities in close proximity to residences or businesses in San José is contrary to the major strategies, goals and policies of the General Plan of the City of San José. (3) Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated November 20, 2000, recommending no change to the existing Campus Industrial General Plan designation and denial of the proposed Prezoning/Rezoning to A(PD) Planned Development District in connection with the proposed Metcalf Energy Center located at the southeasterly base of Tulare Hill, and adoption of a resolution setting forth the conditions which should be incorporated into the certification for the Metcalf Energy Center should the CEC decide to license the plant and direct Staff to provide those conditions to the CEC for consideration. (4) Memorandum from James R. Derryberry, Secretary to the Planning Commission, dated November 16, 2000, advising the Planning Commission voted 5-2-0 (Ross and Levy opposed) to recommend Council change the General Plan land use designation to Public/Quasi-Public and approve the Planned Development Prezoning/Rezoning for the proposed Metcalf Energy Center for property located on the west of Monterey Highway (State Route 82) at the southeasterly base of Tulare Hill and that Council transmit to the CEC the zoning conditions recommended by Planning Staff; urge all conditions contained in the Final Staff Assessment be incorporated in the certification of the project, particularly the condition that recycled water be used for the power plant’s operation including its first startup; and add conditions that require the mitigation of local air quality impacts through the use of best available technology even at low load conditions, and ensure the route for the delivery of hazardous materials does not traverse neighborhoods. (5) Notice of Public Hearing of GP99-2-1 General Plan Amendment and PDC 99-08-071 Planned Development Prezoning/Rezoning, dated October 27, 2000, and Proof of Publication executed on November 5, 2000, submitted by the City Clerk. (6) Hard Copies of slide presentation used in the Staff presentation by Gary Thompson, Deputy Director of Planning, Building and Code Enforcement. (7) Facsimile Letter from the Dennis Kennedy, Mayor, City of Morgan Hill, dated November 22, 2000, expressing opposition to the siting of Calpine’s electrical generation project in Coyote Valley. (8) Petition entitled: Block Calpine Power Plant Petition, with approximately 5,750 signatories. (9) Correspondence received by fax and e-mail from approximately 555 individuals and documents submitted at the meeting from 16 speakers.

Discussion/Action: Mayor Gonzales opened the Public Hearing and stated once Chambers are full, no additional persons may enter due to fire regulations and those individuals may listen to the meeting on closed circuit television in the downstairs cafeteria. He stated those wishing to speak about the Calpine proposal should fill out a speaker’s card and each speaker will be allowed two minutes to address Council. He stated that after presentation of the Staff recommendations, Staff will respond to Council questions, after which the Public Hearing will be opened, the applicant will be given fifteen minutes to present their proposal, and public testimony will be taken. After public testimony, the applicant will be given another fifteen minutes to address the issues and/or to refute comments made by the public, Staff will respond to questions by the public, and Council discussion and action will follow. Director of Planning, Building and Code Enforcement, James R. Derryberry, stated the issue under consideration is the Calpine proposal known as the Metcalf Energy Center, which is plans for a 600 megawatt power plant on a 20 acre site in the northeast portion of Coyote Valley, in an area known commonly as the Coyote Narrows. He stated the two land use applications pending are a General Plan amendment from Campus Industrial to Public/Quasi Public and a Planned Development Prezoning/Rezoning from County Unincorporated and Agricultural to a Planned Development Zoning for the power plant use. He stated the primary question before Council is a la