MINUTES OF THE CITY COUNCIL

MINUTES OF THE CITY COUNCIL

SAN JOSE, CALIFORNIA TUESDAY, FEBRUARY 8, 2000

The Council of the City of San Jose convened in regular session at 1:32 p.m. in City Council Chambers at City Hall, pursuant to the cancellation of the regularly scheduled Closed Session.

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

Absent: Council Members - None.

INVOCATION

From the Cryy Out Christian Fellowship Music Ministry, the group “Godfellaz”, consisting of Galley Monina, Alberto Perez, Tim Rios, Junior Perez and Mando Rios, under the direction of Youth Pastor Joey Herrera, performed two numbers: Soon, Yes Very Soon and You Are My Everything.

(District 2)

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: 11-0-0-0.

CEREMONIAL ITEMS

5a Presentation to the City of San José by the American Society of Landscape Architects for the Medallion Award for the Plaza de Cesar Chavez. (Conventions, Arts and Entertainment)

Documents filed: Memorandum from Nancy Johnson, Director, Conventions, Arts and Entertainment, dated January 19, 2000, recommending Council accept the Medallion Award presented by the American Society of Landscape Architects for Plaza de Cesar Chavez.

Discussion/Action: Mayor Gonzales was joined by Conventions, Arts and Entertainment Director Nancy Johnson to accept the Medallion Award for the Plaza de Cesar Chavez; presenting the award on behalf of the American Society of Landscape Architects (ASLA) were Mike Scheele, Director of Monterey Bay Section of ASLA and Marney Griffin, South Bay Director of ASLA. Mayor Gonzales accepted on behalf of the City Council 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. 26033 – Amends 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.

Documents filed: Proof of publication of title of Ordinance No. 26033, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26033 was adopted. Vote: 11-0-0-0.

6b(2) ORD. NO. 26034 – Amends 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 amends various Sections to make corresponding technical changes.

Documents filed: Proof of publication of title of Ordinance No. 26034, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26034 was adopted. Vote: 11-0-0-0.

6b(3) ORD. NO. 26035 – Amends 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 repeals Section 4.76.346.

Documents filed: Proof of publication of title of Ordinance No. 26035, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26035 was adopted. Vote: 11-0-0-0.

Public Hearings Set by Council

6c(1) Adoption of:

(a) A resolution preliminarily approving the Engineer’s Report for Maintenance District 15 (Silver Creek), Zone G (Southeast - Central Area); setting a public meeting on March 21, 2000 at 7:00 p.m., a public hearing on March 28, 2000 at 1:30 p.m. and a property owner ballot on March 28, 2000, to consider the proposed zone and assessments, and; directing notice of said meeting, hearing and ballot to be mailed to the property owners in proposed Zone G.

(b) A resolution preliminarily approving the Engineer’s Report for Maintenance District 15 (Silver Creek), Zone F (Northerly Neiman Boulevard); setting a public meeting on March 28, 2000 at 1:30 p.m., a public hearing on April 4, 2000 at 7:00 p.m. and a property owner ballot on April 4, 2000, to consider the proposed zone and assessments, and; directing notice of said meeting, hearing and ballot to be mailed to the property owners in proposed Zone F.

(c) A resolution preliminarily approving the Engineer’s Report for Maintenance District 15 (Silver Creek), Zone H (Central Area); setting a public meeting on April 4, 2000 at 7:00 p.m., a public hearing on April 11, 2000 at 1:30 p.m. and a property owner ballot on April 11, 2000, to consider the proposed zone and assessments, and; directing notice of said meeting, hearing and ballot to be mailed to the property owners in proposed Zone H.

(Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 24, 2000, recommending adoption of said resolutions.

Discussion/Action: Resolution No. 69356, entitled: “A Resolution of the Council of the City of San José Preliminarily Approving the Engineer’s Report for Zone G (Southeast - Central Area) of Maintenance District 15 (Silver Creek) and Taking Certain Other Actions Preliminary to the Approval of Such Zone Pursuant to the Provisions of Proposition 218; Resolution No. 69357, entitled: “A Resolution of the Council of the City of San José Preliminarily Approving the Engineer’s Report for Zone F (Northerly Neiman Boulevard) of Maintenance District 15 (Silver Creek) and Taking Certain Other Actions Preliminary to the Approval of Such Zone Pursuant to the Provisions of Proposition 218”, and Resolution No. 69358, entitled: “A Resolution of the Council of the City of San José Preliminarily Approving the Engineer’s Report for Zone H (Central Area) of Maintenance District 15 (Silver Creek) and Taking Certain Other Actions Preliminary to the Approval of Such Zone Pursuant to the Provisions of Proposition 218”, were adopted. Vote: 11-0-0-0.

Contracts/Agreements

6e(1) Adoption of a resolution granting conditional consent to an assignment of the fixed based operator ground lease at the San José International Airport from ARIS Helicopters Ltd. (ARIS) to Aris Leasing Inc. CEQA: Resolution No. 67380. (Airport)

Documents filed: Memorandum from Aviation Director Ralph G. Tonseth, dated January 19, 2000, recommending adoption of said resolution.

Discussion/Action: Resolution No. 69359, entitled: “A Resolution of the Council of the City of San José Granting Conditional Consent to the Assignment of Lease Agreement Between Aris Helicopter Ltd. To Aris Leasing, Inc. for Parcels W-3, W-3A, W-3B and W-3C at the San José International Airport”, was adopted. Vote: 11-0-0-0.

6e(2) Approval of a master agreement with the San José Conservation Corps, Inc. (SJCC) to carry out community improvement activities for the period February 10, 2000 to June 30, 2001. (City Manager’s Office)

Documents filed: Memorandum from Jennifer A. Maguire, Assistant to the City Manager, dated January 19, 2000, recommending approval of said agreement.

Discussion/Action: The master agreement with the San José Conservation Corps, 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 1999-2000 # 23, 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 19, 2000, recommending approval of said open purchase orders.

Discussion/Action: The award of open purchase orders List No. 23 was approved and the Director of General Services authorized to execute the purchase orders. Vote: 11-0-0-0.

6e(4) Approval of a grant agreement between the City of San José and Resources for Families and Communities (RFC) on behalf of the Washington Community Neighborhoods Association for implementation of the Washington Neighborhood Revitalization Plan in an amount not to exceed $220,000, for the period October 1, 1999 to September 30, 2002. (Parks, Recreation & Neighborhood Services)

Documents filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated January 19, 2000, recommending approval of said agreement with Resources for Families and Communities.

Discussion/Action: The grant agreement between the City of San José and Resources for Families and Communities (RFC) on behalf of the Washington Community Neighborhoods Association was approved and its execution authorized. Vote: 11-0-0-0.

6e(5) Approval of a second amendment to the consultant agreement with Tanaka Design Group to increase the compensation by $77,000, for a total of $121,000, expand the scope of services to perform design, prepare bid documents, and provide construction management services for the second phase of the Comprehensive Santee Neighborhood Improvements, namely the Walnut Grove Driveway and Parking Area Reconstruction Project, and extend the term of the consultant agreement to June 30, 2001. (Planning, Building & Code Enforcement)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated January 19, 2000, recommending approval of said agreement with Tanaka Design Group.

Discussion/Action: The second amendment to said agreement with Tanaka Design Group was approved and its execution authorized. Vote: 11-0-0-0.

6e(6) Approval of Contract Change Order (CCO) No. 7 to Blossom Valley Construction Company, in the amount of $35,000, and a 30-calendar day time extension for the Corporation Yard Non-Point Source Project, from November 28, 1999 to December 28, 1999. CEQA: Exempt. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 19, 2000, recommending approval of Contract Change Order No. 7.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Contract Change Order No. 7 to the contract with Blossom Valley Construction Company for said project was approved and its execution authorized. Vote: 11-0-0-0.

6e(7) Approval of an agreement with San José Water Company for utility relocation services for the San José International Airport Runway 30R Extension Project in an amount not to exceed $230,126. CEQA: Resolution No. 67380. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 26, 2000, recommending approval of said agreement with San José Water Company.

Discussion/Action: The agreement with San José Water Company was approved and its execution authorized. Vote: 11-0-0-0.

6e(8) Adoption of a resolution declaring five (5) parcels of City-owned land (vacated excess right-of-way of Dove Hill Road), located southerly and easterly of Colt Way, surplus to the needs of the City, and approving agreements for their sale to Ryland Homes, the adjoining property owner, in the amount of $125,000, and all other documents necessary to complete the transaction. CEQA: Exempt. (Public Works)

(Rules Committee referral 2/2/00)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 31, 2000, recommending adoption of said resolution.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Resolution No. 69360, entitled: “A Resolution of the Council of the City of San José Declaring Certain City-Owned Property Surplus and Approving an Agreement to Sell Such Property to the Adjacent Property Owners, Ryland Homes, for a Sum of No Less than $125,000”, was adopted. Vote: 11-0-0-0.

Routine Legislation

6f(1) Adoption of a resolution authorizing the City Manager to accept the New Life Clinics Trust Foundation’s service grant of $108,000 to implement employee workshops for weight loss, stress relief, and smoking cessation, and authorizing the City Manager to take any action necessary to accept the grant. (Human Resources)

Documents filed: None.

Discussion/Action: This item was deferred to February 15, 2000.

6f(2) Adoption of a resolution accepting a grant deed from Cargill Incorporated conveying title to a parcel of land located within the median strip of Zanker Road between Highway 237 and Tasman Drive, and authorizing the Director of Public Works to execute the deed acceptance on behalf of the City. CEQA: Exempt. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 19, 2000, recommending adoption of said resolution.

Discussion/Action: Resolution No. 69361, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of Public works to Execute a Deed of Acceptance to a Grant Deed from Cargill, Inc., for a Parcel of Land Located Within the Median Strip of Zanker Road Between Highway 237 and Tasman Drive”, was adopted. Vote: 11-0-0-0.

END OF CONSENT CALENDAR

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

COMMISSION, COMMITTEE, AND STANDING REPORTS

7b Report of the Rules Committee – January 26, 2000

Vice Mayor Fiscalini, Chair

Documents filed: Rules Committee report of January 26, 2000.

(1) Review February 8, 2000 Draft Agenda

The Committee approved the February 8, 2000 City Council Agenda.

(2) Add New Items to February 1, 2000 Amended Agenda

The Committee recommended four additions and two deferrals to the February 1, 2000 City Council agenda.

(3) Meeting Schedules

There were none.

(4) The Public Record

There was no Public Record.

(5) Boards and Commissions

(a) Project Diversity Screening Committee. Attachment: (1) Memorandum from City Clerk Patricia L. O’Hearn, dated January 11, 2000, requesting appointments to the Project Diversity Screening Committee. (2) Memorandum from Council Member Dando, dated January 18, 2000, recommending appointment of Van Thi Le. (3) Memorandum from Council Member Woody, dated January 24, 2000, recommending appointment of Van Thi Le and Monica Roscoe.

The Committee recommended appointment of Van Thi Le (Incumbent) and Monica Roscoe to the Project Diversity Screening Committee and continued this item to next week’s Rules Committee meeting.

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

(a) Refer to the Administration a request to develop implementation and funding plans for a citywide Vial of L.I.F.E. Program. Attachment: Memorandum from Council Members Woody and Dando, dated January 18, 2000, recommending a City-wide Vial of L.I.F.E. Program.

The Committee referred the request to develop implementation and funding plans for a Vial of L.I.F.E. Program to the Administration for a report back to the Rules Committee in two weeks regarding an assessment of the time and resources involved to complete the request.

(7) Oral communications

There were none.

(8) Adjournment

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

Discussion/Action: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers, and unanimously carried, the Rules Committee report and actions of January 26, 2000, were accepted. Vote: 10-0-1-0. Absent: Dando.

7c Report of the Finance and Technology Committee – January 26, 2000

Council Member Woody, Chair

Documents filed: Finance and Technology Committee minutes of January 26, 2000.

(1) Monthly Financial Statement for December 1999

(2) Capital Cost Report – December

(3) Cash Flow Projection

Discussion/Action: Items 1-3 were heard by the Redevelopment Agency.

(4) Comparison of Other California Cities’ Programs in Employee Wellness, Safety, and Workers’ Compensation. Attachment: Memorandum from Finance Director Guthrie and Human Resources Director Tobin, dated January 18, 2000, providing said report.

The Committee accepted the Staff report with the direction that the Finance and Technology Committee’s comments be given to the Health and Safety Executive Leadership Council and that Staff provide a timeline and updates to the Finance Committee.

(5) Y2K Debriefing. Attachment: Memorandum from Director of Information Technology, Ken E. Phillips, dated January 19, 2000, providing a Year 2000 Project Update on the Rollover of the Millennium.

The Committee accepted the report.

(6) Sales and Business Tax Quarterly Ending September 30, 1999. Attachment: Letter from City Auditor Silva, dated January 19, 2000, providing said report.

The Committee accepted the report.

(7) December Monthly Report. Attachment: Letter from City Auditor Silva, dated January 19, 2000, providing said report.

The Committee accepted the report.

(8) The City’s Single Audit Report for Federal Compliance for FY 1998-99. Attachment: (1) Memorandum from Director of Finance, John V. Guthrie, dated November 2, 1999, presenting the City’s Single Audit Report for Federal Compliance for FY 1998-99. (2) Reports entitled: Independent Auditors’ Single Audit Report for Year Ended June 30, 1999 prepared for the City of San José by KPMG Peat Marwick LLP.

The Committee accepted the report.

(9) Client Communication Letter/Key Observations and Recommendations FY 98-99. Attachment: Report entitled: Client Communication – Key Observa-tions and Recommendations, June 30, 1999; prepared for the City of San José by KPMG Peat Marwick LLP.

The Committee accepted the Staff report and requested the findings be implemented.

(10) Fire Department Master Plan Timetable. Attachment: Memorandum from Acting Fire Chief William B. Staples, dated January 18, 2000, providing a status report and completion schedule for the Fire Master Plan (Strategic Plan).

The Committee accepted the Staff report with the understanding that the City Manager’s Office would work with the Committee to develop a reporting process for Fire Department concerns.

(11) Workplan for January – June 2000. Attachment: Draft Finance & Technology Committee Workplan for January – June 2000.

The Committee agreed that the Committee Chair would work with Committee Staff to rearrange the Workplan.

(12) Oral petitions

Ross Signorino spoke on the City’s program for mental wellness.

(13) Adjournment

The meeting was adjourned at 12:05 p.m.

Discussion/Action: Upon motion by Council Member Woody, seconded by Council Member Shirakawa, Jr. and unanimously carried, the Finance and Technology Committee report and actions of January 26, 2000, were accepted, with Items 1-3 heard by the Redevelopment Agency. Vote: 10-0-1-0. Absent: Dando.

7e Report of the Transportation and Environment Committee – January 27, 2000

Council Member Powers, Chair

Documents filed: Transportation and Environment Committee report of January 27, 2000.

(1) Consent Calendar

There were no consent calendar items.

(2) Report on the Implementation of General Aviation Master Plan Development. Attachment: Memorandum from Aviation Director Ralph G. Tonseth, dated January 18, 2000, recommending the Director of Aviation be authorized to commence negotiations with existing Fixed Based Operators at the San José International Airport for the layout and configuration of the General Aviation development program as shown in the approved Airport Master Plan.

The Committee recommended the Director of Aviation be authorized to commence negotiations with existing Fixed Based Operators (FBO) at the San José International Airport for the layout and configuration of the General Aviation (GA) development program as shown in the approved Airport Master Plan, as well as terms and conditions for new lease agreements to develop and occupy the area designated for GA in the Master Plan.

(3) Report and Approval of an Agreement for Proposed Airport Funds for MTC Study between the City of San José and MTC. Attachment: Memorandum from Aviation Director Ralph G. Tonseth, dated January 13, 2000, recommending acceptance of the Airport proposal to contribute funds, in cooperation with the San Francisco International and Oakland International airports, to the Metropolitan Transportation Commission for an update to the Regional Airport System Plan.

The Committee recommended acceptance of the Airport proposal to contribute funds, in cooperation with San Francisco International and Oakland International Airports, to the Metropolitan Transportation Commission for an update to the Regional Airport System Plan, in an amount not to exceed $106,750.

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

(4) ACT Program Quarterly Report #7. Attachment: Memorandum from Aviation Director Ralph G. Tonseth, dated January 13, 2000, recommending acceptance of the Airport Acoustical Treatment Program Quarterly Report No. 7 and forward to the City Council on February 8, 2000 with comments and recommendations.

The Committee recommended acceptance of the Airport Acoustical Treatment (ACT) Program Quarterly Report No. 7 and that the report and recommendations be forwarded to the City Council for the meeting of February 8, 2000; Council Member Chavez requested discussion on the outreach efforts.

(5) Oral petitions

None presented.

(6) Adjournment

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

Discussion/Action: Upon motion by Council Member Powers, seconded by Council Member Shirakawa, Jr. and unanimously carried, the Transportation and Environment Committee report and actions of January 27, 2000, were accepted, with Item 7e(3) heard by Council under Item No. 9h. Vote: 10-0-1-0. Absent: Dando.

GENERAL GOVERNMENT

9a 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 and 1/25/00 – Item 9b)

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

Discussion/Action: Upon motion by Council Member Diaz, seconded by Council Member Chavez, and unanimously carried, Resolution No. 69362, entitled: “A Resolution of the Council of the City of San José (i) Authorizing the Director of Housing to Negotiate and Execute an Option Agreement with Concern for the Poor for the Sale of Property for a Transitional Housing Project Affordable to Very Low-Income Families at the Southwest Corner of Las Plumas and Nipper Avenues and; (ii) Authorizing the City Manager or His Designee to Negotiate and Execute All Necessary Documents to Carry Out the Purposes of this Resolution on Behalf of the City”, was adopted. Vote: 10-0-1-0. Absent: Dando.

9b Adoption of a resolution authorizing distribution, to retirees and survivors, of moneys in the Supplemental Retiree Benefit Reserve of the Federated City Employees Retirement Fund, with a distribution of 30% of the fund balance (approximately $6.6 million) in 2000, 12-1/2% in 2001, and 12-1/2% in 2002. (Board of Administration of the Federated City Employees Retirement System)

Documents filed: None.

Discussion/Action: This item was deferred to March 7, 2000.

9c Adoption of a resolution authorizing the Director of General Services to execute an agreement with ACS Image Solutions for the Conversion of Building and Fire Plans to digital format for a total cost not to exceed $1,438,382.70, including tax, for the term February 8, 2000 to February 7, 2002. (Planning, Building and Code Enforcement/General Services)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated January 27, 2000, recommending adoption of said resolution.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Upon motion by Council Member Powers, seconded by Vice Mayor Fiscalini, and unanimously carried, Resolution No. 69363, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of General Services to Execute an Agreement with ACS Image Solutions for the Conversion of Building and Fire Plans to Digital Format”, was adopted. Vote: 10-0-1-0. Absent: Dando.

9d Adoption of a resolution:

(1) Approving business terms for a permanent loan of up to $3,225,600 to Piedmont and Sierra Associates L.P., or its designated partnership, for the development of a 96-unit housing project affordable to low and very low-income seniors on a 1.76-acre site located at the southeast corner of Piedmont and Sierra Roads.

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

(Housing)

Documents filed: Memorandum from Director of Housing, Alex Sanchez, dated January 19, 2000, recommending adoption of said resolution.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Upon motion by Council Member Matthews, seconded by Council Member Diaz, and unanimously carried, Resolution No. 69364, entitled: “A Resolution of the Council of the City of San José (i) Approving the Business Terms for a Permanent Loan of up to $3,225,600 to Piedmont and Sierra L.P. for the Development of a 96-Unit Rental Housing Project Affordable to Very Low and Low Income Persons and Families, and (ii) Authorizing the Director of Housing to Negotiate and Execute All Necessary Documents to Carry Out the Purposes of this Resolution on Behalf of the City”, was adopted. Vote: 10-0-1-0. Absent: Dando.

9e Approval of a consultant agreement with Walker Parking Consultants for design services for the San José International Airport Consolidated Rental Car Garage and associated projects in the amount of $12,225,000, and for a term through February 1, 2005. (Public Works/Airport)

Documents filed: None.

Discussion/Action: This item was deferred to February 22, 2000.

9f Report on bids and award of contract for the CDBG: Minor Street Reconstruction Phase IV Project to the low bidder, Blossom Valley Construction, Inc., in the amount of $787,513, and approval of a contingency in the amount of $78,000. CEQA: Exempt. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 19, 2000, recommending award of said contract to the low bidder, Blossom Valley Construction, Inc.

Discussion/Action: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers, and unanimously carried, the award of said contract to the low bidder, Blossom Valley Construction, Inc., was approved and its execution authorized. Vote: 10-0-1-0. Absent: Dando.

9g Report on bids and award of contract for the Julian Street Improvement-Route 101 to 24^th Street Project to the low bidder, O’Grady Paving, Inc., in the amount of $401,296, and approval of a contingency in the amount of $40,000. CEQA: Exempt. (Public Works)

Documents filed: Memorandum from Director of Public Works, Ralph A. Qualls, Jr., dated January 19, 2000, recommending award of said contract to the low bidder, O’Grady Paving, Inc.

Discussion/Action: Upon motion by Council Member Powers, seconded by Vice Mayor Fiscalini, and unanimously carried, the award of said contract to the low bidder, O’Grady Paving, Inc., was approved and its execution authorized. Vote: 10-0-1-0. Absent: Dando.

9h Adoption of a resolution authorizing the Director of Aviation to negotiate and execute a Letter of Agreement with MTC for use of airport funds for MTC Study.

[Transportation and Environment Committee referral – 7e(3)]

Documents filed: See Item 7e(3) for documents filed.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. In response to Mr. Garbett’s comments about the appropriate use of funds, Council Member Powers stated the MTC study is a regional capacity study for the three regional airports, San Francisco, Oakland and San José International Airports. Upon motion by Council Member Powers, seconded by Vice Mayor Fiscalini, and unanimously carried, Resolution No. 69365, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of Aviation to Execute a Letter of Agreement with the Metropolitan Transportation Commission for a Study and Authorizing the Airport to Contribute to the Update of the Regional Airport System Plan”, was adopted. Vote: 10-0-1-0. Absent: Dando.

Council Member Dando returned to the Council Chambers during discussion of Item 9i.

9i Discussion and determination of the City’s position on March 2000 state ballot Proposition 21 (Juvenile Crime).

[Continued from 1/25/00 – Item 7b(5), Rules Committee meeting of 1/19/00 and 2/1/00 – Item 9c)

Documents filed: (1) See Item 7b(5) from January 25, 2000 for documents filed. (2) Memorandum from Director of Intergovernmental Relations, Betsy Shotwell, dated January 28, 2000, recommending the City take “No Position” on Proposition No. 21.

Discussion/Action: Mayor Gonzales stated Council heard this issue at a public hearing on February 1, 2000, but deferred action to this date at the request of a Council Member who was absent last week. He stated the Rules Committee recommended a “No Position” on Proposition 21 and members of the Youth Commission testified on February 1, 2000 in strong opposition to Proposition 21. Addressing the Council were Terry Gregory, who spoke in opposition, and Mark Buller, Santa Clara County Assistant District Attorney, spoke in support of Proposition 21. Vice Mayor Fiscalini stated he opposes using the initiative process for such a complex issue and he believes youth crime could be addressed better through education, early identification, and appropriate remediation and prevention, by which changes can be effected to help young people make better choices for themselves. He moved Council take an “OPPOSE” position on Proposition 21. Council Member Shirakawa, Jr. seconded the motion. Council Member Matthews expressed support for the motion and for the recommendation of the Youth Commission and stated she favors looking for ways to give youth a second chance and Proposition 21 would send a wrong message to youth, parents and others. Council Member Woody expressed the concern that the Proposition would expand the “3 Strikes and You’re Out” law and go beyond the increased punishment for gang-related crimes. She stated she believes there are better ways to address the problems and she strongly is opposed to the initiative. Council Member Diaz stated he supports the motion and commended the Youth Commission for their involvement and recommendation. Council Member Powers stated there are other ways to achieve the same goals for certain youth than those offered in the initiative and she supports the motion. Council Member Chavez read a letter from Aminah Jahi, President of the San José Chapter of the NAACP and Rick Callender, Political Action Chair and Board Member, urging Council oppose Proposition 21. Council Member Chavez stated two components of the measure are extremely thoughtful, one allowing for deferred judgment that clears a youth’s record following probation, and the second dealing with registering sex offenders. She stated she does not like the blanket approach taken by the proposition which experience with the “3 Strikes” law show does not work, and that she supports the motion to oppose. Mayor Gonzales stated this is a issue about which he feels very strongly and about which he and his colleagues obviously differ. He stated he supports the Proposition because it treats serious crimes seriously and will provide a very specific tool for law enforcement to use in specific cases and will not have widespread impact at increasing the number of inmates and state prisons. He stated he disagrees that “3 Strikes” has not worked, that he thinks “3 Strikes” with other factors have resulted in a decrease in crime throughout the community. He stated the initiative is focused on the worst offenders, the worst role models for youth, and their removal from the neighborhoods will create safer environments for youth, families and the neighborhoods. He stated the Santa Clara County District Attorney, who is recognized throughout the country as a fair and effective prosecutor, has taken a position on the measure, and has shown through his experience with “3 Strikes” when to use the tools given to him and he trusts his judgment and the system to work as it has to improve the neighborhoods. He stated crime statistics show that if young people can get to specific points in their lives without committing those kinds of crimes, they can be kept out of the system, and that is the message he wants sent to the youth. He commended the Youth Commission for their efforts on this issue and pointed out their research may have overlooked the testimonies of crime victim. Regarding costs, he stated that enforcement and education are not mutually exclusive and that both can be accomplished and stated he supports investing in education and working hard to make neighborhoods safe. On a call for the question, the motion to adopt a City position of “Oppose” on State Proposition No. 21, was approved. Vote: 8-3-0-0. Noes: Dando, Diquisto, Gonzales.

FISCAL AFFAIRS

Items 10a, 10b, and 10c were heard together.

10a (1) Approval of the 1999-2000 Mid-Year Operating Budget Review.

(2) Adoption of related appropriation ordinance and funding sources resolution amendments for the 1999-2000 Mid-Year Operating Budget Review.

(City Manager’s Office)

Items 10a, 10b, and 10c were heard together.

10b (1) Approval of the 1999-2000 Mid-Year Capital Budget Review.

(2) Adoption of related appropriation ordinance and funding sources resolution amendments for the 1999-2000 Mid-Year Capital Budget Review.

(3) Adoption of a related resolution making certain determinations regarding the expenditure of Redevelopment Agency funds on certain public improvements.

(City Manager’s Office)

10c (1) Approval of the 2001-2005 Five-Year Economic Forecast and Revenue Projections.

(City Manager’s Office)

Documents filed: (1) Memorandum from Mayor Gonzales, dated February 4, 2000, recommending Council: (a) Approve the City Manager’s proposed Mid-Year Budget; (b) Direct the City Manager to work with the Mayor’s Budget Office to develop a policy precluding the use of surplus funds on ongoing expenditures unless those expenditures can be accommodated in future years of the five-year forecast; and (c) Approve an augmentation of $25,000 to the Office of Economic Development to hire consultants (such as the United Way or the Non Profit Development Center – Compasspoint) with technical expertise who would give assistance to the small Chambers of Commerce in performance measurement, non-profit administration, fund and Board development. (2) Memorandum from Budget Director Larry D. Lisenbee, dated February 8, 2000, submitting a replacement of the memorandum on page 61 of the 1999-2000 Mid-Year Capital Budget Review (Section IV, Attachment II), to provide additional details regarding the expenditure of Redevelopment Agency funds on certain public improvements. (3) Mid-Year Operating Budget Review for FY 1999-2000, prepared by the Office of the City Manager, January 2000. (4) Mid-Year Capital Budget Review for FY 1999-2000, prepared by the Office of the City Manager, February 2000. (5) Five-Year Economic Forecast and Revenue Projections for FY 2001-2005, prepared by the Office of the City Manager, January 2000. (6) Hard copies of the video presentation made by Budget Director Larry Lisenbee.

Discussion/Action: Budget Director Larry Lisenbee made a Staff presentation on the 1999-2000 Mid-Year Operating Budget Review, 1999-2000 Mid-Year Capital Budget Review, and the 2001-2005 Five-Year Economic Forecast and Revenue Projections. Responding to Council questions on the Operating Budget, Director Lisenbee stated the Senior Link program mentioned by Council Member Woody has ongoing funding. Council Member Dando expressed concerns about the delays encountered in the sidewalk repair program and recommended reviewing ways of decreasing the delays in sidewalk repairs, including conducting aggressive outreach to expand the list of available contractors for those projects. Council Member Matthews suggested the Conservation Corps in a pre-apprentice type program as a possible supplementation to the sidewalk repair program. Questions from Council Member Dando about additional funding for senior services was referred by Mayor Gonzales to the budget process. Following on comments by Council Member Powers, Mayor Gonzales stated the interior painting of the Southside Center should be completed as part of the renovation project. Council Member Diquisto requested consideration be given to maintenance funding for the award-winning aquatic program at the Camden Lifetime center and to the overtime and staffing needs in the Fire Department. Regarding the capital budget, Council Member Chavez suggested information on revitalization timelines be included whenever possible. Responding to Council Matthews about the funding reserved for EPA inspections of the site of the Alviso Ring Levee which was removed four years ago, Mayor Gonzales suggested Staff consult with EPA about completing the inspections and reallocating the funds, which could be used for other flood protections measures. Council Member Matthews suggested the amount allocated to each district for Conservation Corps projects be doubled to $12,000. Council Member Dando expressed concerns about the circulation problems at Almaden Lake and requested, if the project being proposed is inadequate, that additional funds for a major remediation project be included in the annual budget. Mayor Gonzales thanked the City Manager and Budget Staff for putting together the mid-year review following the guidelines which put the City in a strong position for the coming year’s budget. Upon motion by Vice Mayor Fiscalini, seconded by Council Member Powers, and unanimously carried, the City Manager’s recommendations for the 1999-2000 Operating and Capital Budgets and the 2001-2005 Five-Year Economic Forecast and Revenue Projections, including acceptance of the recommendations in Mayor Gonzales’ memorandum dated February 4, 2000, were approved; Ordinance No. 26044, entitled: “An Ordinance of the City of San José Amending Ordinance No. 25916 to Appropriate Moneys in Various Operating Funds; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”; Resolution No. 69366, entitled: “A Resolution of the Council of the City of San José Amending Resolution No. 68980 Setting Forth the Estimated Sources of Funds for the Fiscal Year 1999-2000 to Adjust Revenues in Various Operating Funds”; Ordinance No. 26045, entitled: “An Ordinance of the City of San José Amending Ordinance No. 25916 to Appropriate Moneys in Various Capital Budget Funds; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”; Resolution No. 69367, entitled: “A Resolution of the Council of the City of San José Amending Resolution No. 68980 Setting Forth the Estimated Sources of Funds for the Fiscal Year 1999-2000 to Adjust Revenues in Various Capital Budget Funds”; and Resolution No. 69368, entitled: “A Resolution of the Council of the City of San José Making Certain Determinations Consistent with California Health and Safety Code Section 33445 with Regard to Funding by the Redevelopment Agency of the City of San José of Certain Fees or Costs Incurred by the City of San José in Fiscal Year 1999-2000 in Connection with Certain Public Improvements”, were adopted. Vote: 11-0-0-0.

ORAL COMMUNICATIONS

(1) Don Wilde requested help in setting up a neighborhood organization; Council Member Powers’ office to assist him.

(2) Ross Signorino spoke about recycling issues.

ADJOURNMENT

The Council of the City of San José adjourned at 3:16 p.m. to a Joint City Council/Redevelopment agency meeting immediately following the Council meeting.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK