MINUTES OF THE CITY COUNCIL

MINUTES OF THE CITY COUNCIL

SAN JOSE, CALIFORNIA TUESDAY, JANUARY 25, 2000

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, Powers, Shirakawa, Jr., Woody; Gonzales.

Absent: Council Members - Matthews (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 BB&K Fremont Developers v. City of San José, et al.; and to confer with Labor Negotiator Pursuant to Government Code 54957.6: City Negotiator: City Manager designee Alex Gurza; Employee organizations: San José Police Officers’ Association and Inter-national Association of Firefighters.

By unanimous consent, Council reconvened from the Closed Session and recessed at 10:45 a.m. and reconvened at 1:34 p.m. in the Council Chambers.

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

Absent: Council Members - Matthews (excused).

INVOCATION

Lynbrook Jazz Express performed a musical reflection on cool summer rain and sang a rendition of Waltz for Debbie.

(District 1)

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: 10-0-1-0. Absent: Matthews.

CEREMONIAL ITEMS

5a Presentation of plaques to Robert Bailey, Jr. and José Hernandez, both for 4 years service on the Advisory Commission on Rents; to Thelma Thompson for 3 years and 7 months service on the Housing Advisory Commission; to Robert Varich for 6 years 4 months service on the San José Appeals Hearing Board; to Roberta Glass for 2 years 5 months service on the Senior Citizens Commission; to Travis Casper for 2 years service on the Disability Advisory Commission; and to Mike Knefaty for 1 year 1 month service, Susan Page for 4 years service, Merylee Shelton for 4 years service, and to G. Richard White for 1 year 8 months service, all on the Human Rights Commission. (Mayor)

Documents filed: None.

Discussion/Action: Mayor Gonzales presented plaques to José Hernandez, Thelma Thompson, Robert Varich and Mike Knefaty for their respective years of service on City of San José Commissions; plaques will be sent to Robert Bailey, Jr., Roberta Glass, Travis Casper, Merylee Shelton and G. Richard White, who were unable to be present.

5b Presentation of a commendation to Artie Lashbrook who was instrumental in getting the month of September proclaimed as Prostate Cancer Awareness Month in San José. (Fiscalini)

(Rules Committee referral 1/19/00)

Documents filed: None.

Discussion/Action: Mayor Gonzales was joined by Vice Mayor Fiscalini for presentation of a commendation to Artie Lashbrook for raising awareness of prostate cancer by his efforts in initiating Prostate Cancer Awareness Month in San José, observed in September 1999.

CONSENT CALENDAR

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

Minutes for Approval

6a(1) Regular Meeting of November 16, 1999

Documents filed: Minutes of November 16, 1999.

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

6a(2) General Plan Meeting of November 18, 1999

Documents filed: Minutes of November 18, 1999.

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

6a(3) Regular Meeting of November 23, 1999

Documents filed: Minutes of November 23, 1999.

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

6a(4) Industrial Development Authority Board meeting of November 23, 1999

Documents filed: Minutes of November 23, 1999.

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

6a(5) Joint City Council/Redevelopment Agency Meeting of November 23, 1999

Documents filed: Minutes of November 23, 1999.

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

Contracts/Agreements

6e(1) Approval of a continuation agreement to extend the Non-Exclusive Installation and Service Agreement with Metricom, Inc., dated January 24, 1995, as amended, in order to extend its terms for 60 days, retroactive one (1) day to January 24, 2000. (Public Works)

[Deferred from 1/11/00 – Item 6e(7)]

Documents filed: Memoranda from Director of Public Works, Ralph A. Qualls, Jr., dated December 14, 1999 and January 12, 2000, recommending approval of said agreement.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. The agreement with Metricom, Inc., was approved and its execution authorized. Vote: 10-0-1-0. Absent: Matthews.

6e(2) Approval of the second amendment to the agreement with Ross Financial, to serve the Housing Department as general financial advisor, increasing compensation to an amount not to exceed $160,000, and extending the term to June 30, 2000, for general financial advisory services for multi-family housing bonds. (Finance)

Documents filed: Memorandum from Director of Finance, John V. Guthrie, dated January 5, 2000, recommending approval of a second amendment to said agreement with Ross Financial.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. The second amendment to said agreement with Ross Financial was approved and its execution authorized. Vote: 10-0-1-0. Absent: Matthews.

6e(3) Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 1999-2000 # 21, 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 January 5, 2000, recommending approval of said open purchase orders.

Discussion/Action: The award of open purchase orders List No. 21 was approved and the Director of General Services authorized to execute the purchase orders. Vote: 10-0-1-0. Absent: Matthews.

6e(4) Approval of a consultant agreement with Biggs Cardosa and Associates, Inc., in an amount not to exceed $80,000, for bidding support and construction monitoring for the Foxworthy Avenue Bridge at Guadalupe River Project. CEQA: Resolution No. 60197. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 6, 2000, recommending approval of said agreement with Biggs Cardosa and Associates, Inc.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. The agreement with Biggs Cardosa and Associates, Inc., was approved and its execution authorized. Vote: 10-0-1-0. Absent: Matthews.

6e(5) Approval of a Consent to Assignment and Assumption Agreement for Physical Fitness Program Services from Professional Club Management, Inc. to Club One, Inc. to provide a physical fitness training and wellness program for Police Department employees. (Police)

(Rules Committee referral 1/19/00)

Documents filed: Memorandum from Chief of Police, William M. Lansdowne, dated January 19, 2000, recommending approval of consent to assignment and assumption agreement for Physical Fitness Program Services from Professional Club Management, Inc. to Club One, Inc.

Discussion/Action: The Consent to Assignment and Assumption Agreement for Physical Fitness Program Services from Professional Club Management, Inc. to Club One, Inc. was approved and its execution authorized. Vote: 10-0-1-0. Absent: Matthews.

Routine Legislation

6f(1) Approval of an ordinance amending Section 2.08.130 and Part 12 of Chapter 2.08 of the San José Municipal Code to increase the membership of the Police and Fire Retirement Board to seven (7) members and to provide for removal of members, only for cause. (City Manager’s Office)

Documents filed: Memorandum from Acting Employee Relations Manager, Alex Gurza, dated January 19, 2000, recommending approval of said ordinance.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Council Member Diquisto stated Mr. Garbett’s comments pertain to the Federated Retirement Board. Ordinance No. 26033, entitled: “An Ordinance of the City of San José Amending Section 2.08.130 and Part 12 of Chapter 2.08 of Title 2 of the San José Municipal Code to Provide that the Council Shall Remove Members of the Board of Administration for the Police and Fire Department Retirement Plan Only for Cause and to Increase the Membership of the Board of Administration for the Police and Fire Department Retirement Plan from Five to Seven”, was passed for publication. Vote: 10-0-1-0. Absent: Matthews.

6f(2) Adoption of a resolution certifying that:

(a) The City of San José’s Revolving Loan Fund (RLF) Plan is consistent with and supportive of the area’s economic adjustment strategy.

(b) The RLF is being operated in accordance with the policies and procedures contained in the RLF Plan, and the loan portfolio meets the standards contained therein.

(c) The continued use of Economic Development Administration (EDA) Fund to support the Revolving Loan Fund is approved as required by the Economic Development Administration’s Annual Certification process.

(Economic Development)

Documents filed: Memorandum from the Director of Economic Development, Leslie S. Parks, dated January 5, 2000, recommending adoption of said resolution.

Discussion/Action: Resolution No. 69344, entitled: “A Resolution of the Council of the City of San José Certifying that (1) The City’s Revolving Loan Fund is Consistent with and Supportive of the Area’s Current Economic Adjustment Strategy and (2) That the Revolving Loan Fund is Being Operated in Accordance with Certain Policies and Procedure and (3) Approving the Use of the Economic Development Administration Funds to Support the Revolving Loan Fund”, was adopted. Vote: 10-0-1-0. Absent: Matthews.

6f(3) Approval of appointment of the new Board Members to the Revolving Loan Fund Administration Board:

(a) David Herrera, Vice President of Lending for Provident Credit Union.

(b) William F. Oaks, Certified Financial Planner to the Loan Advisory Board.

(Economic Development)

Documents filed: Memorandum from the Director of Economic Development, Leslie S. Parks, dated January 5, 2000, recommending two appointments to the Revolving Loan Fund Administrative Board.

Discussion/Action: David Herrera, Vice President of Lending for Provident Credit Union, and William F. Oaks, Certified Financial Planner to the Loan Advisory Board, were appointed to the Revolving Loan Fund Administration Board. Vote: 10-0-1-0. Absent: Matthews.

6f(4) Approval of appointment of the Board of Directors of the Silicon Valley Pollution Prevention Center: (a) Governmental Representative: Peter Cipolla, General Manager for the Santa Clara Valley Transportation Authority, for a term ending December 2002; (b) Business/Industrial Representative: Robin Brack, Environmental Health and Safety Officer for San José Mercury News for a term ending December 2002. (Environmental Services)

Documents filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated January 5, 2000, recommending appointments to the Board of Directors of the Silicon Valley Pollution Prevention Center.

Discussion/Action: The following appointments to the Board of Directors of the Silicon Valley Pollution Prevention Center were approved: Peter Cipolla, General Manager for the Santa Clara Valley Transportation Authority, was appointed as the Governmental Representative for a term ending December 2002; and Robin Brack, Environmental Health and Safety Officer for San José Mercury News, was appointed as the Business/Industrial Representative for a term ending December 2002. Vote: 10-0-1-0. Absent: Matthews.

6f(5) Acceptance of the Fourth Quarter 1999 San José Arena Authority Distribution Program Report. (San José Arena Authority)

Documents filed: Memorandum from the San José Arena Authority, dated January 4, 2000, presenting the Fourth Quarter 1999 San José Arena Authority Distribution Program Report.

Discussion/Action: The Fourth Quarter 1999 San José Arena Authority Distribution Program Report was accepted. Vote: 10-0-1-0. Absent: Matthews.

6f(6) Waiver of certain provisions of the Revolving Door Ordinance to allow former City Attorney Joan Gallo to provide consulting legal services to the City. (Mayor)

(Rules Committee referral 1/19/00)

Documents filed: Memorandum from Mayor Gonzales, dated January 18, 2000, recommending Council approve the waiver of certain provisions of the Recycling Door Ordinance.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. The waiver of certain provisions of the Revolving Door Ordinance to allow former City Attorney Joan Gallo to provide consulting legal services to the City was approved. Vote: 10-0-1-0. Absent: Matthews.

6f(7) Adoption of a resolution authorizing the acceptance and deposit of the City’s portion of the tobacco litigation settlement proceeds. (City Attorney’s Office)

(Rules Committee referral 1/19/00)

Documents filed: Memorandum from City Attorney Joan R. Gallo, dated January 20, 2000, recommending the adoption of said resolution.

Discussion/Action: Resolution No. 69345, entitled: “A Resolution of the Council of the City of San José Authorizing the Withdrawal and Acceptance of Tobacco Settlement Monies Pursuant to the Memorandum of Understanding”, was adopted. Vote: 10-0-1-0. Absent: Matthews.

END OF CONSENT CALENDAR

COMMISSION, COMMITTEE, AND STANDING REPORTS

7b Report of the Rules Committee – Meeting of January 12, 2000

Documents filed: Rules Committee report of January 12, 2000.

(1) Review January 25, 2000 Draft Agenda

The Committee approved the January 25, 2000 City Council agenda with one change.

(2) Add New Items to January 18, 2000 Amended Agenda

The Committee recommended seven additions to the January 18, 2000 City Council agenda.

(3) Meeting Schedules

(a) Request to schedule a General Plan Hearing on February 1, 2000 to consider the proposed Greenline/Urban Growth Boundary and related General Plan amendments

The Committee recommended approval of a General Plan Hearing for consideration of the proposed Greenline/Urban Growth Boundary and related General Plan amendments to be held on Tuesday, February 1, 2000 at 7:00 p.m.

(4) The Public Record. Attachment: Memorandum from City Clerk Patricia L. O’Hearn, dated January 6, 2000, listing the items transmitted to the Administration and those items filed for the Public Record for the period December 29, 1999-January 4, 2000.

The Committee noted and filed the Public Record.

(5) Boards and Commissions

(a) Deferred Compensation Advisory Committee. Attachment: Memorandum from Director of Human Resources, Nona Tobin, dated January 3, 2000, recommending reappointment of two incumbents to the Deferred Compensation Advisory Committee.

The Committee recommended reappointment of Darren Wallace, general employee representative, and Susan Bradford-Moore, management employees’ representative, to the Deferred Compensation Advisory Committee for terms ending March 1, 2002.

(6) Request to use Council General funds to attend League of California Cities Committee meetings, January 2000. Attachment: (1) Memoranda from Council Members Dando and Powers, dated December 1999, requesting use of Council General Funds; (2) Memorandum from City Clerk, Patricia L. O’Hearn, dated January 5, 2000, summarizing the use of Council General Travel Budget to date.

The Committee recommended approval for the use of Council General Travel Budget funds by Council Member Pat Dando to attend the League of California Cities Transportation, Communications and Public Works Policy Committee Meeting, January 5-6, 2000 in Los Angeles, California, and by Council Member Charlotte Powers to attend the League of California Cities Housing, Community and Economic Development Policy Meeting on January 7, 2000 in Los Angeles, California.

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

There were none.

(8) Oral communications

None presented.

(9) 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 January 12, 2000 were accepted. Vote: 9-0-2-0. Absent: Dando, Matthews.

7b Report of the Rules Committee - Meeting of January 19, 2000 (Partial)

Documents filed: Partial Rules Committee report of January 19, 2000.

(5) Approve City positions on March 2000 State ballot propositions. Attachment: (1) Memoranda from Intergovernmental Relations Director, Betsy Shotwell, dated January 13 and 19, 2000, recommending City positions for each of the statewide ballot propositions set for the March 2000 Primary Election. (2) Memorandum from the Parks & Recreation Commission, dated January 14, 2000, recommending Council endorse Proposition No. 12. (3) Correspondence dated January 26, 2000, from Pegasus Radical Art Parade, expressing opposition to Propositions 21 and 22.

The Committee accepted the Staff-recommended City positions for the statewide ballot propositions set for the March 2000 Primary Election with the following exceptions: On Propositions 1A, 22 and 29: Change the recommended City position from Oppose to No Position.

Discussion/Action: Intergovernmental Relations Director Betsy Shotwell made a brief presentation on the City positions recommended by Staff and by the Rules Committee. The Council removed Proposition Nos. 1A, 29, 18, 20, 21, 22 and 23 from the list for Council discussion and took the following actions:

Proposition Nos. 1A and Prop 29: Mayor Gonzales stated he is opposed to this initiative because of his well-known position opposing gambling, that these propositions raise local control issues, and Council should take a strong position on gambling in California. Motion by Vice Mayor Fiscalini and seconded by Council Member Powers to approve the Staff recommendation of “Oppose” on Proposition Nos. 1A and 29 failed. Vote: 5-4-2-0. Noes: Chavez, Powers, Shirakawa, Woody. Absent: Dando, Matthews.

Proposition No. 18: Mayor Gonzales stated the act of “lying in wait” where the victim is kidnapped or murdered should be included as a special circumstance making the perpetrator eligible for the death penalty. He recommended the City take a position of Support. Upon motion by Vice Mayor Fiscalini, seconded by Council Member Shirakawa, Jr. and carried, Council approved the Staff recommendation of “Support” on Proposition 18. Vote: 8-1-2-0. Noes: Woody. Absent; Dando, Matthews.

Proposition No. 20: Mayor Gonzales stated Council should take a position of “Oppose” on this initiative because of the implications of state mandates on the schools. Upon motion by Council Member LeZotte, seconded by Council Member Powers, and carried, the Staff recommendation of “Oppose” was approved. Vote: 6-2-2-0. Noes; Diaz, Fiscalini. Absent: Dando, Matthews.

Proposition No. 21: Council Member Shirakawa, Jr. stated the Youth Commission requested this issue be deferred to an evening meeting in order for the members to provide input and Council Member LeZotte stated she would be absent on February 1 but would like to vote on this issue. Upon motion by Council Member Shirakawa, Jr., seconded by Council Member LeZotte, and unanimously carried, Council deferred discussion of Proposition No. 21 to the evening meeting of February 1, 2000 with Council action deferred to February 8, 2000. Vote: 9-0-2-0. Absent: Dando, Matthews.

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

Reconsideration of Proposition Nos. 1A and 29: Council Member Dando requested reconsideration of Proposition Nos. 1A and 29. Upon motion by Vice Mayor Fiscalini, seconded Council Member Dando, and unanimously carried, Council approved reconsideration of Proposition Nos. 1A and 29. Vote: 10-0-1-0. Absent: Matthews. Upon motion by Vice Mayor Fiscalini, seconded by Council Member Dando, and carried, Council approved the Staff recommendation for a City position of “Oppose” on Propositions 1A and 29. Vote: 6-4-1-0. Noes: Chavez, Powers, Shirakawa, Woody. Absent: Matthews.

Proposition No. 22: Council received testimony in opposition to Proposition No. 22 from Wiggsy Sivertsen, BAYMEC; Reverend Lindi Ramsden, First Unitarian Church of San José; Leslie Hamilton, Californians for Fairness; and Luther Jackson, San José Newspaper Guild. Council Member Chavez stated this proposition is an effort to use the initiative process to divide and separate people, and moved to adopt an “Oppose” position. Council Member Diaz seconded the motion. Council Member Woody stated she could support taking No Position but would not support a position of “Oppose” to the initiative. Council Member Dando stated she will not support the motion. On a call for the question, the motion carried, and the Council approved a City position of “Oppose” on Proposition No. 22. Vote: 8-2-1-0. Noes: Dando, Woody. Absent: Matthews.

Proposition No. 23: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers, and unanimously carried, Council approved a position of “Oppose” to Proposition No. 23. Vote: 10-0-1-0. Absent: Matthews.

Upon motion by Council Member Fiscalini, seconded by Council Member Powers, and unanimously carried, City-positions on Proposition Nos. 1A, 29, 20, 22 and 23 were adopted as indicated above, Proposition No. 21 was deferred to the evening meeting of February 1, 2000 for discussion and to February 8, 2000 for Council deliberation; and the Partial Rules Committee report and the recommendations for City positions on the remaining propositions were accepted. Vote: 9-0-2-0. Absent: Dando, Matthews.

7c Report of the Finance and Technology Committee – January 12, 2000

Documents filed: Finance and Technology Committee minutes of January 12, 2000.

(1) Monthly Investment Report for November 1999. Attachment: (1) Memorandum from Director of Finance, John V. Guthrie, dated January 5, 2000, updating a portion of the Investment Report’s Executive Summary. (2) November 1999 Investment Report.

The Committee accepted the report.

(2) Monthly Financial Report for November 1999. Attachment: Memorandum from Budget Director Larry D. Lisenbee, dated January 4, 2000, submitting the November 1999 Financial report.

The Committee accepted the report.

(3) November Monthly Report. Attachment: City Auditor Gerald A. Silva, dated January 10, 2000, submitting the November 1999 Activity Report.

The Committee accepted the report.

(4) External Quality Control Review of the Office of the City Auditor. Attachment: Memorandum from City Auditor Gerald A. Silva, dated November 19, 1999, submitting said report.

The Committee noted and filed the report.

(5) City Auditor’s Office – Activities and Accomplishments for July 1997-June 1999. Attachment: City Auditor’s Activities and Accomplishments for Period of July 1997 through June 1999.

The Committee accepted the report.

(6) Report on Pilot Program for 100% Business Tax Hardship Refund Program. Attachment: Memorandum from Director of Finance, John V. Guthrie, dated January 5, 2000, recommending the adoption of an ordinance permanently implementing a program that would grant a full refund of the business tax to any “single-person business” whose gross receipts from the business were at or below the defined poverty level during the income tax reporting year immediately preceding the calendar year in which the business tax is paid, provided that the business tax was paid on time.

The Committee accepted the report and recommended Council approve the Amendment to Business Tax Ordinance (Hardship Rates).

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

(7) Oral petitions

William Garbett spoke on the future growth of the City of San José.

(8) Adjournment

The meeting was adjourned at 10:10 a.m.

Discussion/Action: Upon motion by Council Member Woody, seconded by Council Member Powers, and unanimously carried, the Finance and Technology Committee report and actions of January 12, 2000, were accepted, with Item 7c(6) heard under Item 9f. Vote: 10-0-1-0. Absent: Matthews.

7d Report of the Economic and Community Development Committee – January 10, 2000

Documents filed: Economic and Community Development Committee report of January 10, 2000.

(1) Quarterly Report on the Project Development Program. Attachment: Memorandum from Director of Housing, Alex Sanchez, dated November 22, 1999, submitting the Housing Project Development Program report for the first quarter of FY 1999-00.

The Committee accepted the report.

(2) Quarterly Report on the Housing Rehabilitation Program. Attachment: Memorandum from Director of Housing, Alex Sanchez, dated October 27, 1999, submitting the Housing Rehabilitation Program Report for the first quarter of FY 1999-00.

The Committee accepted the report.

(3) Quarterly Report on the Housing and Homeless Fund. Attachment: Memorandum from Director of Housing, Alex Sanchez, dated October 22, 1999, submitting the Housing and Homeless Fund Report for the first quarter of FY 1999-00.

The Committee accepted the report.

(4) Review of Planning and Building Fee/Tax Payment Policies. Attachment: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated December 16, 1999, recommending the Committee defer consideration of Alternative Payment Methods pending completion of a fee analysis to be undertaken by the Department of Planning, Building and Code Enforcement early in 2000.

The Committee accepted the report and approved the recommendation that the Committee defer consideration of alternative payment methods pending the completion of a fee analysis to be undertaken in early 2000.

(5) Homeless Status Report. Attachment: Memorandum from Director of Housing, Alex Sanchez, dated December 2, 1999, submitting the Status Report and Homeless Services Plan for FY 1999-2000.

The Committee accepted the report.

(6) Overview of Housing Development. Attachment: (1) Memorandum from Lynn Macy, Deputy City Manager, dated January 3, 2000, stating the Director of Housing will make an oral presentation to the Committee. (2) Memoranda from Housing Director Sanchez, dated September-December, 1999, providing information on the Housing Department’s Production Plan and Projects.

The Committee accepted the oral report.

(7) Replacement Housing Plans for Redevelopment Projects. Attachment: Replacement Housing Plan, Downtown Redevelopment Projects, Redevelopment Agency, dated December 1999.

The Committee discussed the Draft Replacement Housing Plan and directed Agency Staff to bring this item forward to the Agency Board as a separate agenda item that included the Committee’s discussion and recommendation on the issue.

Discussion/Action: See the January 25, 2000 Redevelopment Agency report, Item 7b, for action taken by the Agency Board.

(8) Oral petitions

Phyllis Ward, Affordable Housing Network, commented on the Draft Replacement Housing Plan.

(9) Adjournment

The meeting was adjourned at 3:35 p.m.

Discussion/Action: Upon motion by Council Member Diaz, seconded by Vice Mayor Fiscalini, and unanimously carried, the Economic and Community Development Committee report and actions of January 10, 2000, were accepted, with Item 7d(7) referred to the Redevelopment Agency. Vote: 10-0-1-0. Absent: Matthews.

7e Report of the Transportation and Environment Committee – January 13, 2000

Documents filed: Transportation and Environment Committee report of January 13, 2000.

(1) Consent Calendar

None presented.

(2) Discussion and approval of the Transportation and Environment Committee Draft Workplan for January through June 2000. Attachment: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 6, 2000, recommending approval of the Committee’s Workplan for the period January through June 2000.

The Committee approved the Workplan, with revisions as noted in the Committee report.

(3) Oral petitions

None presented.

(4) Adjournment

The meeting was adjourned at 3:10 p.m.

Discussion/Action: Upon motion by Council Member Powers, seconded by Vice Mayor Fiscalini, and unanimously carried, the Transportation and Environment Committee report and actions of January 13, 2000, were accepted. Vote: 10-0-1-0. Absent: Matthews.

GENERAL GOVERNMENT

9b Adoption of a resolution:

(1) Authorizing the City Manager to negotiate and execute an option agreement with Concern for the Poor, or its assignee, for the purchase of approximately two (2) acres of the City-owned Las Plumas Warehouse site located at the southeast corner of Las Plumas Avenue and Nipper Avenue.

(2) Authorizing the City Manager to negotiate and execute all documents evidencing such option on behalf of the City.

(Housing)

(Deferred from 12/14/99 – Item 9i)

Documents filed: None.

Discussion/Action: This item deferred to February 8, 2000.

9c Adoption of a resolution:

(1) Authorizing a transfer of funds in the amount of $5,700,000 from the 20% Housing Fund, with $2,945,000 being deposited in the General Fund and the balance being deposited in the Service Yards Construction and Conveyance Tax Fund.

(2) Authorizing the Director of Housing to issue a Request for Qualifications to housing developers for the development disposition of the entire site.

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

(Public Works/Housing)

(Deferred from 11/23/99 – Item 9f et al., and 1/11/99 – Item 9b)

Documents filed: (1) Memoranda from Director of Public Works, Ralph A. Qualls, Jr., and Director of Housing, Alex Sanchez, dated November 10, 1999 and January 24, 2000, recommending adoption of said resolution. (2) Supplemental memorandum from Director of Housing, Alex Sanchez, dated November 19, 1999, providing clarification to language in the “Legal Issues” section of the report.

Discussion/Action: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Shirakawa, Jr., and unanimously carried, Resolution No. 69346, entitled: “A Resolution of the Council of the City of San José (1) Authorizing the Transfer of Funds in the Amount of $5,700,000 from the 20% Housing Fund, with $2,610,000 Being Deposited into the General Fund and the Balance Being Deposited into the Service Yards Construction and Conveyance Tax Fund in Order to Develop Affordable Housing on the Roberts Avenue Property; (2) Authorizing the Director of Housing to Issue an RFP to Housing Developers to Develop an Affordable Housing Project on the Property; and (3) Finding that the Use of 20% Housing Funds for the Roberts Avenue Housing Project is a Benefit to the Redevelopment Project Areas in San José”, was adopted. Vote: 10-0-1-0. Absent: Matthews.

9d Approval of the approach and budget resources in order to:

(1) Prepare a Housing Opportunities Study with special focus on Transit-Oriented Development Corridors.

(2) To update the Housing Element of the San José 2020 General Plan.

(3) To conduct associated traffic studies; to prepare required environmental assessments.

(4) To refer funding needs for the first year to the Housing Opportunities Study and the Housing Element update to the mid-year budget review process.

(Planning, Building and Code Enforcement)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated January 7, 2000, recommending approval of the approach and budget resources pertaining to the Housing Opportunities Study, the Housing Element of the San José 2020 General Plan, and associated traffic studies.

Discussion/Action: Director Derryberry made a Staff presentation. Mayor Gonzales asked Staff to report back on how San José’s General Plan designations for ranges above 8 dwelling units per acre compare with those of surrounding cities. Council Member Powers reported on discussions at Association of Bay Area Governments (ABAG) meetings pertaining to projections of housing needs in the Bay Area and on local and regional implications. Council Member Diaz stated regional planning and cooperation is needed to address the housing issues in the South Bay and recommended incorporating a plan for outreach to other cities. Director Derryberry stated the City’s housing initiative in the early 1990s enabled San José to develop significant housing units, both affordable and market along the Guadalupe Corridor, and a number of successful mixed use projects, and those actions and policies provide examples to other communities. He stated Staff is working closely with ABAG to outreach to other communities in Santa Clara County. Council Member Diaz recommended doing more outreach and regional planning with other cities, along with implementation strategies for promoting very high density first time ownership along the transit corridors. Upon motion by Vice Mayor Fiscalini, seconded by Council Member Diaz, and unanimously carried, the Staff recommendations dated January 7, 2000 presenting an approach and budget resources to prepare a Housing Opportunities Study focusing on Transit-Oriented Development Corridors, to update the Housing Element of the San José 2020 General Plan, to conduct associated traffic studies and prepare required environmental assessments, and to refer funding needs to the mid-year budget review process, was approved, and the issues of units per acre comparative data, regional outreach, planning, and implementation were referred to Staff. Vote: 10-0-1-0. Absent: Matthews.

9e (1) Approval of an ordinance amending Chapter 2.04 of Title 2 of the San José Municipal Code to add a new Part 31 to establish a Department of Retirement Services, and making other corresponding technical changes.

(2) Adoption of a resolution to establish the class of Director of Retirement Services within the “C” range of the Senior Executive Performance Program (SEPP) (72G-81B).

(City Manager’s Office) (Rules Committee referral 1/19/00)

Documents filed: Memorandum from City Manager, Del D. Borgsdorf, dated January 19, 2000, recommending approval of said ordinance and adoption of said resolution.

Discussion/Action: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Dando and unanimously carried, Ordinance No. 26034, entitled: “An Ordinance of the City of San José Amending Chapter 2.04 of Title 2 of the San José Municipal Code by Adding a New Part 31 to Establish the Department of Retirement Services and Amending Sections 2.08.360 and 2.08.030 and 3.32.040 of Chapter 3.32, and Section 3.36.340 of Chapter 3.36 of the San José Municipal Code to Make Corresponding Technical Changes”, was passed for publication, and Resolution No. 69347, entitled: “A Resolution of the Council of the City of San José Amending Salary Resolutions 51870 and 51872 and the City of San José Pay Plan to Create the Class of Director of Retirement Services (U) (7501) Within the “C” Range of the Senior Executive Performance Program (SEPP)”, was adopted. Vote: 10-0-1-0. Absent: Matthews.

9f Approval of an ordinance amending Section 4.76.345 of Chapter 4.76 of Title 4 of the San José Municipal Code to permanently implement program that would grant a full refund of the business tax to any single-person business whose gross receipts from the business were at or below the defined poverty level during the income tax reporting year immediately preceding the calendar year in which the business tax is paid, provided that the business tax was paid on time.

[Finance and Technology Committee referral 1/12/00 – Item 7c(6)]

Documents filed: (1) See 7c(6) for Staff memorandum and recommendations. (2) Memorandum from Senior Executive Assistant to the City Manager, Deanna J. Santana, dated January 21, 2000, stating the Finance and Technology Committee accepted the Staff report on the Pilot Program for 100% Business Tax Hardship Refund Program and recommended Council approve the Amendment to Business Tax Ordinance (Hardship Rates).

Discussion/Action: Upon motion by Council Member Dando, seconded by Council Member Woody, and unanimously carried, Ordinance No. 26035, entitled: “An Ordinance of the City of San José Amending Section 4.76.345 of Chapter 4.76 of Title 4 of the San José Municipal Code to Refund a Timely Business Tax Payment to Any Sole Proprietorship with Gross Receipts Not Exceeding the Federal Poverty Level During the Immediately Preceding Income Tax Year and Repealing Section 4.76.346”, was passed for publication. Vote: 10-0-1-0. Absent: Matthews.

9g (1) Adoption of resolutions authorizing the City of San José and MBIA- MuniServices Company to have access to State Board of Equalization Sales and Use Tax Records, and

(2) Adoption of a resolution authorizing the City Manager to negotiate and execute a consultant agreement with MBIA-MuniServices Company for various auditing services through June 30, 2000 in an amount not to exceed $500,000.

(Finance) (Deferred from 1/18/00 – Item 9g)

Documents filed: None.

Discussion/Action: This item was deferred to February 1, 2000.

ORAL COMMUNICATIONS

John Messina spoke on issues related to the proposed Calpine power plant.

RECESS/RECONVENE

Council recessed at 2:37 p.m. for a Joint City Council/Redevelopment Agency meeting and reconvened the City Council meeting at 3:20 p.m. to hear Item 9a.

9a Approval of the policy directions related to the Request for Proposals (RFP) for the Recycle Plus Program. (Environmental Services)

(Deferred from 10/26/99 – Item 9b et al., and 12/14/99 – Item 9t)

(Continued from 1/11/00 – Item 9a)

Documents filed: (1) Memorandum from Mayor Gonzales dated January 24, 2000, recommending Council support the Staff recommendation with the following exceptions: (a) Include Neighborhood Clean-up Program in the single family garbage and recycling service group; (b) Review of the Local Preference Policy at a later date to establish a new and legally defensible policy; (c) Providing a contract length of eleven years, consisting of an initial five-year contract, with eligibility for two three-year extensions based on meeting or exceeding performance measures. (2) Memoranda from Director of Environmental Services, Carl W. Mosher, dated January 21 and 24, 2000. (3) Recycle Plus RFP Update dated January 25, 2000, providing a summary of the Staff recommendations for the RFP for garbage and recycling services that will be released in the Spring. (4) Hard copies of the transparency presentation by Director Mosher.

Discussion/Action: Mayor Gonzales stated any Council comments on policy direction related to the RFP should be stated this date so the complete RFP will be the next item to come to Council. Director of Environmental Services, Carl W. Mosher presented the Staff report with the aid of overhead transparencies. He stated the guidelines being recommended are intended to improve upon an already good system through simplification of the program for the customers, the haulers and the City. Referencing the Recycle Plus RFP Update dated March 25, 2000 which summarizes the Staff recommendations contained in the reports, he recapped the recommendation to increase the number of bins for neighborhood clean up programs and to promote the program more vigorously, but not to establish a clean-up day for the entire city. He stated in response to Council’s discussion of January 11, 2000, the Staff recommendation for bidding the neighborhood clean-up bin program as a separate RFP is revised to recommend including the service with the single-family service contract. Pertaining to labor issues, he stated Staff recommends using the City’s Local Preference Policy as it exists with no modification; recommended using the results of the prevailing wage study conducted by Equality Assurance last fall, as updated, based on contract information currently available. He stated that based on discussions with Teamsters representatives, a change is being recommended in the language relating to worker retention which would require an employee who had passed the 120 day probation period to be offered a job when a new contractor is selected, and the provision would be applicable to all workers employed by the previous contractor rather than singling out garbage drivers and recycle drivers as previously recommended. He stated the provision for labor peace being recommended is for evaluation of proposals based on the assurances of the contractor’s commitment to labor peace and information provided on how they would protect against labor discord during the period of the contract. Director Mosher stated Staff recommends a revised compensation structure which would retain the base rate per household, replace the incentive payment based on the tonnage recycled with an annual incentive payment based on meeting certain standards of the percentage of materials recycled, and eliminating the monitoring of the recyclables marketed and the revenues the hauler receives from the salvage value of recyclables. Since salvage revenues are retained by the hauler, eliminating the monitoring costs would simplify the revenue structure and eliminating the restriction that only San José material be allowed in the recycling facility would permit greater use by the contractor of the facility, which could affect the way the proposal is prepared. Regarding the length of the term of the contract, he stated the Mayor’s recommendation for a term of five years with two automatic renewals of three years each for a total of eleven years is consistent with Staff’s recommendation of approximately ten-years to allow for efficient amortization of equipment and facilitate a long-term relationship with the hauler. He stated because of low usage, Staff recommends the current option for small commercial establishments to subscribe under the residential program be terminated and the approximately 200 commercial customers in that program be transitioned into the franchised industrial hauler program. Council Member Powers stated concern that moving the neighborhood clean-up contract to the single-family hauler could mean districts would have two haulers to deal with for neighborhood clean-up programs and requested that issue be reviewed. Vice Mayor Fiscalini stated he supports the Mayor’s recommendation that the issue of local preference be reviewed, and the language revised to indicate the City would be divided into no more than two service districts. Council Member Shirakawa, Jr. stated his concerns about not knowing the cost of the optional container for yard waste which might be prohibitively high. Council Member Powers expressed concern about the inconvenience of having more than one hauler servicing a district as a result of including neighborhood cleanups with the single family service contract. Vice Mayor Fiscalini stated he concurs with the Mayor’s recommendations to review the local preference policy to develop a broader opportunity for local businesses and the proposed eleven year contract period, and recommended the language state the City would be divided into no more than two service districts. Council Member Diaz stated he would prefer to see an option for community clean-ups under the multi-family contract, that he supports the local preference policy and eleven year term in the Mayor’ recommendations. Council Member Dando stated yard waste containers will be a option only if they are affordable and expressed support for the Mayor’s local preference policy and eleven year contract recommendations. Council Member Chavez questioned whether the single and multi-family programs needed changing if they were working well and stated she is interested in the RFP language establishing the criteria pertaining to the labor peace issue. William Garbett, Robert Morales--Teamsters Union, Ross Signorino, and John Messina commented on the issue. Vice Mayor Fiscalini moved approval of the Staff recommendation with the exception of the items included in Mayor Gonzales’ memorandum dated January 25, 2000, and inclusion of the comments made today that relate to clarification of language and other ideas that are specific to the preparation of the RFP. Council Member Diquisto seconded the motion. Director Carl Mosher stated when the RFP is completed, Staff will provide a synopsis for Council’s review and make the entire document available upon request. The motion carried unanimously, and the Staff recommendations dated January 21, 24 and 25, 2000 for policy directions related to the Request for Proposals (RFP) for the Recycle Plus Program, as revised by Mayor Gonzales’ memorandum dated January 25, 2000, were approved, and issues pertaining to the RFP raised by Council were referred to Staff. Vote: 10-0-1-0. Absent: Matthews.

ADJOURNMENT

The Council of the City of San José adjourned the meeting at 4:15 p.m., to meet again in a joint session with the Redevelopment Agency.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK