MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, MARCH 7, 2000

The Council of the City of San Jose convened in Regular Session at 9:30 a. m. in Council Chambers at City Hall.

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

Absent: Council Members: Diaz.

Upon motion unanimously adopted, the City Council recessed to Closed Session at 9:40 a.m. in Room 600 to (A) confer with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9 Subsection (a) to consider cases of In re Mula; and Rosendin Electric, Inc. v. City of San José; (B) to confer with Legal Counsel regarding anticipated litigation and to discuss one matter pertaining to the initiation of litigation pursuant to subdivision (c) of Section 54956.9 of the Government Code; and (C) to confer with Labor Negotiator pursuant to Government Code Section 54957.6 involving City Negotiator, City Manager designee Alex Gurza, and the following Employee Organizations: San José Police Officers’ Association, International Association of Firefighters, International Brotherhood of Electrical Workers, and Operating Engineers, Local 3.

By unanimous consent, Council reconvened from Closed Session and recessed at 11:55 a.m. and reconvened at 1:35 p.m. in Council Chambers, City Hall.

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

Absent: Council Members: Diaz.

INVOCATION

The Reverend Mariellen Sawada, Wesley United Methodist Church, delivered the invocation. (District 3)

PLEDGE OF ALLEGIANCE

Mayor Gonzales led in the Pledge of Allegiance.

ORDERS OF THE DAY

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

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 actions were taken as indicated. Vote: 10-0-1-0. Absent: Diaz.

Minutes for Approval

6a(1) Special Meeting of January 4, 2000

Documents Filed: Minutes of the special meeting on January 4, 2000.

Discussion/Action: The Minutes were approved. Vote: 10-0-1-0. Absent: Diaz.

6a(2) Regular Meeting of January 11, 2000

Documents Filed: Minutes of the regular meeting of January 11, 2000.

Discussion/Action: The Minutes were approved. Vote: 10-0-1-0. Absent: Diaz.

6a(3) Joint City Council/Redevelopment Agency Meeting of January 11, 2000

Documents Filed: Minutes of the joint meeting on January 11, 2000.

Discussion/Action: The Minutes were approved. Vote: 10-0-1-0. Absent: Diaz.

Ordinances for Final Adoption

6b(1) ORD. NO. 26059 – Amends Section 4.76.745 of Chapter 4.76 of Title 4 of the San José Municipal Code to exempt family day care homes with fourteen (14) or fewer children from having to pay a business tax.

Documents Filed: Proof of publication of the title of Ordinance No. 26059 executed on February 29, 2000, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26059 was adopted. Vote: 10-0-1-0. Absent: Diaz.

6b(2) ORD. NO. 26063 - Amends Chapter 25.08 of Title 25 of the San José Municipal Code by adding a new Part 6 entitled “Consolidated Rental Car Facilities and Fees” to create and establish customer facilities and transportation fees; adds Sections 25.01.325 and 25.01.365 to Part 3 of Chapter 25.01 to provide relevant definitions, and amends Part 1 of Chapter 4.80 of Title 4 by adding a new Section 4.80.070 to create a customer facilities and transportation fees fund.

Documents Filed: Proof of publication of the title of Ordinance No. 26063 executed on March 3, 2000, submitted by the City Clerk.

Discussion/Action: William J. Garbett spoke against the proposed action. Ordinance No. 26063 was adopted. Vote: 10-0-1-0. Absent: Diaz.

6b(3) ORD. NO. 26064 – Rezones certain real property situated on the west side of North First Street between Sonora Avenue and Skyport Drive. PDC 99-07-060

Documents Filed: None.

Discussion/Action: This item was deferred to March 21, 2000.

Plans and Specifications

6d(1) TRACT NO. 9178 – Within the Evergreen Specific Plan Area (ESP) and more specifically located on the northeast corner of Michelangelo Drive and Souteridge Lane – Shapell Industries, Inc., a Delaware Corporation qualified to do business in the State of California (Developer) – 35 single family detached residential units. Approval of a parkland agreement and adoption of resolutions approving the plans, final map, contract, and water main extension for Tract No. 9178. CEQA: Resolution No. 63179. District 8. (Public Works)

Documents Filed: Memorandum from Director of Public Works, Ralph A. Qualls Jr., dated February 29, 2000, recommending Council approve the parkland agreement and adopt said resolutions for Tract No. 9178.

Discussion/Action: The parkland agreement Shapell Industries, Inc., was approved and its execution authorized; Resolution No. 69425, entitled: “A Resolution of the Council of the City of San José Fixing Official Curb Grades and Position of Curbs, and Adopting Plans For Tract No. 9178”; Resolution No. 69426, entitled: “A Resolution of the Council of the City of San José Approving and Accepting Final Map of Tract No. 9178”; Resolution No. 69427, entitled: “A Resolution of the Council of the City of San José Approving and Authorizing the Execution of Contract and Approving Bonds for the Improvement of Tract No. 9178”; and Resolution No. 69428 entitled: “A Resolution of the Council of the City of San José Approving and Authorizing the Execution of Agreement for the Water Main Extension, Tract No. 9178”, were adopted. Vote: 10-0-1-0. Absent: Diaz.

Contracts/Agreements

6e(1) Adoption of a resolution authorizing the City Manager to negotiate and execute an amendment to the agreement between the City and Santa Clara County to extend the provision of First-Responder Services by the City through September 30, 2000, and authorizing the City Manager to exercise an option to further extend the agreement through December 31, 2000. (City Manager’s Office)

[Deferred from 2/22/00 – Item 6e(2)]

Documents Filed: (1) Supplemental memorandum from City Manager, Del Borgsdorf, dated March 3, 2000, amending the fiscal considerations contained in the February 17, 2000 memorandum co-authored by Acting Fire Chief William Staples. (2) Memorandum from City Manager, Del Borgsdorf, dated February 17, 2000, recommending Council adopt said resolution.

Discussion/Action: Resolution No. 69429, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute An Amendment to the Agreement With the County of Santa Clara for Advanced Life Support Paramedic First Responder Services, to Extend the Term Through September 30, 2000, With An Option to Further Extend the Agreement Through December 31, 2000”, was adopted. Vote: 10-0-1-0. Absent: Diaz.

6e(2) Approval of a contract with Montoya Productions to produce the 2000 Performing Arts Series in the Montgomery Theater, from date of execution to December 31, 2000, in an amount not to exceed $90,000. (Conventions, Arts and Entertainment)

Documents Filed: Memorandum from Director of Conventions, Arts and Entertainment, Nancy Johnson, dated February 14, 2000, recommending Council approve said contract.

Discussion/Action: The contract with Montoya productions was approved and its execution authorized. Vote: 10-0-1-0. Absent: Diaz.

6e(3) Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 1999-2000 #26, 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 February 14, 2000, recommending Council approve said open purchase orders list, and authorize the Director of General Services to execute the purchase orders.

Discussion/Action: The award of open purchase orders List No. 26 for FY 1999-2000 was approved and execution of the purchase orders authorized. Vote: 10-0-1-0. Absent: Diaz.

6e(4) Award of purchase as an idle act of two (2) used 225KW generators to Peterson Power Systems, Inc., at a total cost not to exceed $118,501.28 including tax, for the Department of General Services, and authorization for the Director of General Services to execute the purchase order. (General Services)

Documents Filed: Memorandum from Director of General Services, Steve S. Yoshino, dated February 14, 2000, recommending Council award said purchase to Peterson Systems, Inc., as an idle act pursuant to Section 4.12.004 of the San José Municipal Code, and authorize the Director of General Services to execute the purchase order.

Discussion/Action: The purchase was approved and execution of the purchase order authorized. Vote: 10-0-1-0. Absent: Diaz.

6e(5) Approval of an option to purchase one (1) additional survey van from S & C Ford at the same bid unit price, for a total cost of $41,568.00, including tax, for the Department of Streets and Traffic’s graffiti abatement efforts, and authorization for the Director of General Services to execute the purchase order for the immediate purchase of one (1) survey van. (General Services)

Documents Filed: Memorandum from Director of General Services, Steve S. Yoshino, dated February 14, 2000, recommending Council approve said option and authorize the Director of General Services to execute the purchase order.

Discussion/Action: The option to purchase from S & C Ford was approved and execution of the purchase order authorized. Vote: 10-0-1-0. Absent: Diaz.

6e(6) Report on bids and approval to reject all bids for San José Museum of Art HVAC Improvements, release bidder’s bonds, and authorization for the Director of Public Works to re-advertise and re-bid the project at a later date. CEQA: Exempt. (Public Works)

Documents Filed: Memorandum from Director of Public Works, Ralph A. Qualls Jr., dated February 14, 2000, recommending Council accept the bid report and Staff recommendation to reject all bids and authorize the Director of Public Works to readvertise and rebid the project at a later date.

Discussion/Action: The report on bids was accepted and the recommendation to reject all bids and release the bidder’s bond and authorize the Director of Public Works to readvertise and rebid the project at a later date, were approved. Vote: 10-0-1-0. Absent: Diaz.

6e(7) Report on bids and award of contract for the Fire Station No. 15 Seismic Upgrade Project to the low bidder, Kal Construction, Inc., for $69,500, and approval of a contingency in the amount of $20,000. (Public Works)

Documents Filed: Memorandum from Director of Public Works, Ralph A. Qualls Jr., dated February 14, 2000, recommending Council accept the bid report and award said contract to the low bidder, Kal Construction, Inc.

Discussion/Action: The bid report was accepted and award of contract to Kal Construction, Inc., the low bidder, was approved and execution of the contract authorized. Vote: 10-0-1-0. Absent: Diaz.

6e(8) (a) Approval of a lease agreement with Cornerstone Properties for 8,781 rentable square feet of office space at 4 North 2^nd Street intended for the Office of Equality Assurance, Department of Public Works’ Architectural Engineering and Design Section, and the Department of Streets and Traffic, at a cost of $25,025.85 per month the first year, $26,026.89 per month the second year, $27,067.96 per month the third year, $28,150.68 per month the fourth year, and $29,276.71 per month the fifth year. (Public Works)

(b) Adoption of appropriation ordinance amendments in the General Fund to provide funding for the movement of the Office of Equality Assurance to leased office space at 4 North Second Street. (City Manager’s Office)

Documents Filed: (1) Memorandum from Director of Public Works, Ralph A. Qualls Jr., dated March 1, 2000, recommending Council approve said lease agreement. (2) Memorandum from Budget Director, Larry D. Lisenbee, dated February 29, 2000, recommending Council adopt said appropriation ordinance amendments in the General Fund.

Discussion/Action: The lease agreement with Cornerstone Properties was approved and execution of the agreement authorized; and Ordinance No. 26065, entitled: “An Ordinance of the City of San José Amending Ordinance No. 25916 Which Appropriates Moneys in the General Fund in the Amount of $143,000 for the Movement of the Office of Equality Assurance to Leased Office Space at 4 North Second Street; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, was adopted. Vote: 10-0-1-0. Absent: Diaz.

6e(9) Adoption of a resolution authorizing the City Manager to negotiate and execute a fifth amendment to the agreement with R.V.Goebel Family, Inc. (RVG) for Airport shuttle bus services, to increase the compensation by $200,000, from $2,500,000 to $2,700,000. CEQA: Resolution No. 67380. (Airport)

(Rules Committee referral 3/1/00)

Documents Filed: Memorandum from Director of Aviation, Ralph G. Tonseth, dated February 29, 2000, noting the reason for the addendum and recommending Council approve the fifth amendment to the agreement with R.V. Goebel Family, Inc.

Discussion/Action: Resolution No. 69430, “A Resolution of the Council of the City of San José authorizing the City Manager to Negotiate and Execute a Fifth Amendment to the Agreement With R.V. Goebel Family, Inc., for Shuttle Bus Services at the San José International Airport”, was adopted. Vote: 10-0-1-0. Absent: Diaz.

Routine Legislation

6f(1) Approval of an ordinance amending Chapter 14.27 Of Title 14 of the San José Municipal Code relating to Community Facilities Districts to conform the district formation and amendment procedures to other City financing district procedures. (City Attorney’s Office)

Documents Filed: Memorandum from City Attorney, J. Richard Doyle, dated February 25, 2000, recommending Council adopt said ordinance.

Discussion/Action: Ordinance No. 26066, entitled: “An Ordinance of the City of San José Amending Chapter 14.27 of Title 14 of the San José Municipal Code Relating to Community Facilities District Financing Procedure”, was passed for publication. Vote: 10-0-1-0. Absent: Diaz.

6f(2) Approval of a Memorandum of Understanding (MOU) with the County of Santa Clara for the transition to and implementation of the Workforce Investment Act (WIA) Program, effective March 7, 2000 to July 1, 2001. (Economic Development)

Documents Filed: (1) Supplemental memorandum from Director of Economic Development, Leslie S. Parks, dated March 3, 2000, clarifying the reason for the addendum to the Memorandum of Understanding. (2) Memorandum from Director of Economic Development, Leslie S. Parks, dated February 22, 2000, recommending Council approve said memorandum of understanding.

Discussion/Action: The Memorandum of Understanding with the County of Santa Clara was approved and its execution authorized. Vote: 10-0-1-0. Absent: Diaz.

6f(3) Adoption of a resolution authorizing the reorganization of territory designated as Berryessa No. 66, which involves the annexation to the City of San José of 4.11 acres of land, located on the west side of North King Road, at the terminus of Commodore Drive, and the detachment of the same from the Central Fire Protection District and the County Service Area No. 1 (Library Services). CEQA: Resolution No. 65459. District 4. (Planning, Building, and Code Enforcement)

Documents Filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated February 23, 2000, stating that before approving the reorganization proposal, the City Council is required to make the following findings: [a] That the unincorporated territory is within the City’s Urban Service Area as adopted by the Local Agency Formation Commission (LAFCO); [b] That the County Surveyor has determined the boundaries of the proposal to be definite and certain and in compliance with the LAFCO Annexation Policies; [c] That the proposal does not split lines of assessment or ownership; [d] That the proposal does not create islands or areas in which it would be difficult to provide municipal services; [e] That the proposal is consistent with the City’s adopted General Plan; [f] That the territory is contiguous to existing City limits; and [g] That the City has complied with all conditions imposed by LAFCO for inclusion of the territory in the City’s Urban Service Area.

Discussion/Action: Resolution No. 69431, entitled: “Resolution of the Council of the City of San José Ordering the Reorganization of Certain Uninhabited Territory Designated as Berryessa No. 66 Subject to Liability for General Indebtedness of the City”, was adopted. Vote: 10-0-1-0. Absent: Diaz.

6f(4) Adoption of a resolution accepting photo equipment from the Institute for the Advancement of Criminal Justice (IACJ), valued at approximately $16,600, for the Police Department’s investigation of crimes involving women victims of sexual assault and domestic violence. (Police)

Documents Filed: Memorandum from Chief of Police William M. Lansdowne, dated February 16, 2000, recommending Council adopt said resolution.

Discussion/Action: Resolution No. 69432, entitled: “A Resolution of the Council of the City of San José Accepting a Gift of Photo Equipment From the Institute for the Advancement of Criminal Justice Valued at Approximately $16,600 to be Used by the Police Department in the Investigation of Crimes Involving Women Victims of Sexual Assault and Domestic Violence”, was adopted. Vote: 10-0-1-0. Absent: Diaz.

6f(5) Approval of an ordinance amending Section 14.04.415 of Chapter 14.04 of Title 14 of the San José Municipal Code to:

(a) Authorize the Director of Public Works to issue construction contract change orders for Public Works contracts for Airport Master Plan Projects exceeding $75,000, subject to the following limitations:

(1) Individual change orders in an amount not to exceed 1% of the contract award amount, or $75,000, whichever is greater.

(2) The aggregate of all such change orders for a single contract shall not exceed the contingency amount approved by the Council.

(3) The Director shall provide a report to the Council within 60 days of the date of execution of any change order approved by the Director under this authorization, which describes the scope, dollar value, and reason for the change order.

(b) Authorize the Director of Public Works to issue change orders for all Public Works contracts in an original amount up to and including $75,000, provided that the aggregate of all such change orders for a single contract shall not exceed $7,500.

(Public Works)

Documents Filed: Memorandum from Director of Public Works, Ralph A. Qualls Jr., dated February 14, 2000, recommending Council adopt said ordinance.

Discussion/Action: Ordinance No. 26067, entitled: “An Ordinance of the City of San José Amending Section 14.04.415 of Chapter 14.04 of Title 14 of the San José Municipal Code to Specify the Change Order Authority of the Director of Public Works With Respect to Airport Master Plan Projects and to Increase the Director’s Change Order Authority for Other Public Works Projects”, was passed for publication. Vote: 10-0-1-0. Absent: Diaz.

6f(6) Approval of an ordinance amending Chapter 11.48 of Title 11 of the San José Municipal Code to modify the Arena Permit Parking Area, the University Permit Parking Area and the Civic Center Permit Parking Area to include the following:

(a) Remove the south side of Younger Street (N. First Street to N. Second Street) from the Civic Center Permit Parking Zone.

(b) Add the 1100 block of North Second Street (Burton to Younger) to the existing Civic Center Permit Parking Zone.

(c) Add the 500 block of Margaret Street (S. Twelfth Street to S. Eleventh Street) to the University Permit Parking Zone.

(d) Add the north side of Park Avenue (Delmas to S. Autumn Street) to the Arena Permit Parking Zone (Parkside Neighborhood).

(e) Add the west side of N. Montgomery Street from a point 103 feet north of Julian Street to a point 163 feet north of Julian Street to the Arena Permit Parking Zone (Autumn/Montgomery Neighborhood).

CEQA: Exempt. (Streets and Traffic)

Documents Filed: Memorandum from Director of Streets and Traffic, Wayne K. Tanda, dated February 14, 2000, recommending Council adopt said ordinance.

Discussion/Action: Ordinance No. 26068, entitled: “An Ordinance of the City of San José Amending Sections 11.48.100, 11.48.120, and 11.48.140 of Chapter 11.48 of Title 11 of the San José Municipal Code to Modify the Arena Permit Parking Area, the University Permit Parking Area and the Civic Center Permit Parking Area”, was passed for publication. Vote: 10-0-1-0. Absent: Diaz.

6f(7) Appointment of Lupe Zuniga to the Project Diversity Screening Committee and designation of existing Committee Member Noemi Baiza as Chair of the Committee. (Mayor)

[Deferred from 2/15/00 – Item 6f(14) et al., and 2/29/00 – Item 6f(6)]

Documents Filed: Memorandum from Mayor Gonzales, dated March 6, 2000, recommending appointments to Project Diversity Screening Committee.

Discussion/Action: The appointment of Lupe Zuniga, Member, and designation of existing Committee Member Noemi Baiza, Chair, to the Project Diversity Screening Committee were approved. Vote: 10-0-1-0. Absent: Diaz.

6f(8) Approval of Council Member Margie Matthews’ travel to Washington, D.C., March 10-16, 2000, to attend the American Public Transit Association (APTA) conference. Funding: Santa Clara Valley Transportation Authority (VTA). (Matthews)

(Rules Committee referral 3/1/00)

Documents Filed: None.

Discussion/Action: The travel for Council Member Matthews to attend the APTA Conference was approved. Vote: 10-0-1-0. Absent: Diaz.

6f(9) Adoption of appropriation ordinance amendments in the Council District 10 Construction and Conveyance Tax Fund to establish a school improvement grant appropriation in the amount of $50,000 for Baseball Field Safety Improvements at Steinbeck Middle School. (City Manager’s Office)

(Rules Committee referral 3/1/00)

Documents Filed: Memorandum from Budget Director, Larry D. Lisenbee, dated February 29, 2000, recommending Council adopt said appropriation ordinance amendments in the Construction and Conveyance Tax Fund for Council District 10.

Discussion/Action: Ordinance No. 26069, entitled: “An Ordinance of the City of San José Amending Ordinance No. 25916 Which Appropriates Moneys in the Council District #10 Construction and Conveyance Tax Fund in the Amount of $50,000, for Baseball Field Safety Improvements at Steinbeck Middle School; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, was adopted. Vote: 10-0-1-0. Absent: Diaz.

END OF CONSENT CALENDAR

COMMISSION, COMMITTEE, AND STANDING REPORTS

7b Report of the Rules Committee – February 23, 2000

Documents Filed: Rules Committee Report of February 23, 2000.

(1) Review March 7, 2000 Draft Agenda

The Committee approved the March 7, 2000 City Council Agenda.

(2) Add New Items to February 29, 2000 Amended Agenda

The Committee recommended seven additions to the February 29, 2000 City Council Agenda.

(3) Meeting Schedules

No Meeting Schedule Items Submitted.

(4) The Public Record. Attachment: Memorandum from City Clerk, Patricia L. O’Hearn, dated February 17, 2000, listing the items transmitted to the Administration and the items filed for the Public Record for the period February 9-15, 2000.

The Committee noted and filed the Public Record.

(5) Request to use Council General Funds to attend the National League of Cities Congressional City Conference 2000 March 9-15, 2000. Attachments: (1) Memorandum from Council Member Woody, dated February 16, 2000, requesting authorization for travel out of state. (2) Memorandum from Council Member Woody, dated Memorandum from City Clerk, Patricia L. O’Hearn, dated February 16, 2000, complying with City Council Policy 9-5 requirement when requests to use Council General Funds are considered by the Rules Committee.

The Committee approved the use of Council General Travel Funds for Council Member Woody’s travel to Washington, D.C. to attend the National League of Cities Congressional City Conference March 9-15, 2000.

(6) Council Referrals for Assignment to Appropriate Committee, Administration, or Council Appointee. Attachment: Letter from City Auditor, Gerald A. Silva, dated February 17, 2000, responding to Council direction for a review of the Redevelopment Agency’s Accounts Payable process.

(a) Report back on the availability of staff and resources to conduct a review of the Redevelopment Agency’s accounts payable process

The Committee directed the City Auditor to conduct a review of the Redevelopment Agency’s Accounts Payable process.

(7) Oral communications

None Presented.

(8) Adjournment

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

Discussion/Action: Upon motion by Vice Mayor Fiscalini, seconded by Council Member Chavez and unanimously carried, the Rules Committee Report and actions of February 23, 2000 were accepted. Vote: 10-0-1-0. Absent: Diaz.

7c Report of the Finance and Technology Committee – February 23, 2000

Documents Filed: Finance and Technology Committee Report of February 23, 2000.

(1) Call to Order

The Committee approved the modified order of items to be acted upon.

(2) Budget Review

(3) Monthly Financial Statement for January 2000

(4) Capital Cost Report

(5) Cash Flow Projection

Items 7c(2) through 7c(5) were referred to Redevelopment Agency Board for appropriate action.

(6) Report New Realities 30 day Control of Workers Compensation Medical Pilot. Attachment: Memorandum from Director of Human Resources Nona Tobin, and Director of Finance John V. Guthrie, dated February 14, 2000, providing a report on the Worker’s Compensation Pilot Project.

The Committee recommended acceptance of the Staff report and directed Staff to return in 2001 with an annual report.

(7) Semi-Annual Police Staffing Report. Attachment: Memorandum from Chief of Police William M. Lansdowne, dated February 17, 2000, recommending acceptance of the Police Department Sworn Recruitment and Training Program Report for the first half of fiscal year 1999-2000.

The Committee recommended acceptance of the Staff report.

(8) Capital Projects Program Status Report

(9) Recommendations on Enhanced Park Construction Project Delivery

Items 7c(8) and 7c(9) were removed from the Report by the City Council and considered separately. (See later entry for Council action taken.)

(10) January Monthly Report. Letter from City Auditor, Gerald A. Silva, dated February 17, 2000, transmitting a written report of the Office of the City Auditor’s activities for the month of January 15, 2000 through February 15, 2000 and schedule of audit costs for January, 2000.

The Committee recommended acceptance of the Staff report.

(11) Oral petitions

None Presented.

(12) 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 February 23, 2000 were accepted with Items 7c(2) through 7c(5) referred to the Redevelopment Agency Board for appropriate action and Items 7c(8) and 7c(9) removed from the Report and considered separately. Vote: 10-0-1-0. Absent: Diaz.

7c Report of the Finance and Technology Committee – February 23, 2000

(8) Capital Projects Program Status Report

(9) Recommendations on Enhanced Park Construction Project Delivery.

Documents Filed (1) Memorandum from Director of Public Works, Ralph A. Qualls Jr., dated February 7, 2000, recommending the Finance Committee accept the Capital Project Program Status Report and recommend its acceptance by the City Council. (2) Memorandum from Director of Public Works Ralph A. Qualls Jr., Director of Conventions, Arts and Entertainment Nancy Johnson, and Director of Parks, Recreation and Neighborhood Services Mark Linder, dated February 7, 2000, recommending acceptance of the report and approval of items recommended for Council action.

Discussion/Action: The Committee recommended acceptance of the status reports and referred them to the Council Budget Session for appropriate action. Director of Public Works Ralph A. Qualls Jr., Director of Conventions, Arts and Entertainment Nancy Johnson, and Director of Parks, Recreation and Neighborhood Services Mark Linder provided Council with a comprehensive overview of the report and the recommendations for a new Parks Design and Construction Division, including an inventory of active and completed construction parks projects and an explanation of the Capital project schedules and milestones that measure their progress from start to finish. With respect to Parks Construction and available resources, the Directors of the three Departments, using overhead transparencies, discussed in detail the Problem Statement, Problem Evolution, and Problem Solutions affecting the timely delivery of parks construction projects. The Directors discussed the current status disclosing 252 capital projects out of 350 are either on schedule or are underway; however, the annual capital projects workload has been steadily increasing, and project staffing has not kept pace, particularly in the Parks projects area. The Directors stated that CAE, PRNS, and PW Staffs, since June of 1999, have worked as a team to implement several short-term responses to project delivery dilemma, including the addition of staff resources, and initiating process improvements to expedite the scoping, planning, design and construction of the Parks Project Program. They agreed that an urgent, dramatic and focussed organizational change is required and that a Parks Design and Construction Unit should be established with the exclusive Core Service to be the delivery of Parks projects. They stated the unit would be managed as an interdepartmental team, led by senior staff from all three Departments, and function as a new and separate Division in the Public Works Department. With regard to Schedule and Outcomes, the Directors stated projects in the FY 2000-2001 capital budget approved in June 2000 will be scoped and/or defined by October 2000; that the new interdepartmental staff, subject to budget actions, will be in place for addressing new and future workloads by October 2000 for full implementation of the scoped projects in that year and future years; that the backlog projects from prior years, barring unforeseen conditions, will be awarded for construction by the end of December 2000; and that backlog from the current year’s projects will be awarded for construction by June of 2001. The Directors stated the situation and its impacts, while substantial and urgently in need of attention, is solvable and that Staff recommends acceptance of the Staff report and that Council (1) refer the implementing actions for funding of Master Consultant Agreements for Parks Planning, Design and Preliminary Engineering as well as proposals for additional staff in the PRNS, CAE and PW Departments to the FY 2000-2001 Budget process; (2) refer to the Budget Process the establishment of a New Parks Design and Construction Division for the exclusive support of the delivery of Parks Construction projects in the Public Works Department; and (3) refer the development of Master Consultant Agreements to the Director of Public Works and the City Attorney for implementation. Ross Signorino spoke in favor of parks construction. Upon motion by Council Member Woody, seconded by Council Member LeZotte and unanimously carried, the Finance and Technology Committee recommendation and the Capital Projects Program Status Reports were accepted and the recommendations on Enhanced Park Construction Project Delivery was approved. Vote: 10-0-1-0. Absent: Diaz.

LAND USE AND DEVELOPMENT

8a PUBLIC HEARING and adoption of a resolution authorizing the reorganization of territory designated as McKee No. 117, which involves the annexation of 0.75 acre of land to the City of San José, located on the northwest corner of Kirk Avenue and Madeline Drive, and the detachment of the same from the Central Fire Protection District, County Library Services Area No. 1, and the County Lighting Services. CEQA: Exempt. (Planning, Building and Code Enforcement)

(Continued from 1/18/00 – Item 8b and 2/22/00 Item 8a)

Documents Filed: None.

Discussion/Action: This item was continued to April 4, 2000.

GENERAL GOVERNMENT

9a (1) Adoption of a resolution authorizing MBIA-MuniServices Company to have access to State Board of Equalization Sales and Use Tax Records, and

(2) Approval of a consultant agreement with MBIA-MuniServices Company for various auditing services through June 30, 2001, in an amount not to exceed $1,683,333.

(Finance)

(Deferred from 1/18/00 – Item 9g et al., and 2/22/00 – Item 9a)

Documents Filed: Memorandum from Director of Finance, John V. Guthrie, dated January 12, 2000, noting the reason for the addendum and recommending Council adopt said resolution.

Discussion/Action: This item was dropped.

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)

(Deferred from 2/8/00 – Item 9b)

Documents Filed: (1) Memorandum from Director of Retirement Services, Edward F. Overton, for the Board of Administration of the Federated City Employees Retirement System, dated January 19, 2000, recommending Council adopt said resolution. (2) Memorandum from City Manager, Del Borgsdorf, dated March 6, 2000, recommending Council adopt said resolution and request the Board develop policy guidelines on future distributions. (3) Letters from Deborah A. Powell, Spokesperson for City Labor Alliance, dated March 3, 2000, and from Joseph Bass, President, San José Retired Employees’ Association, dated March 6, 2000, each requesting approval of the recommendation regarding the distribution of SRBR funds.

Discussion/Action: As Council Liaison to the Federated Employees Retirement Board, Council Member LeZotte stated the Board’s recommendation would provide distributions from the Supplemental Retiree Benefit Reserve (SRBR) over the next three years. She stated the current year’s distribution is 30%, with 12.5% paid out in each of the next two years, and that the amount to be distributed to each person would be based on a formula that takes into consideration both the length of City service and the number of years in retirement. She stated the Board recognizes and reaffirms that the funds can be distributed only to retirees. Gary Hinze addressed Council on the proposal. Upon motion by Council Member LeZotte, seconded by Vice Mayor Fiscalini and unanimously carried, Resolution No. 69433, entitled: “Resolution of the Council of the City of San José Approving a Distribution of Moneys in the Supplemental Retiree Benefit Reserve of the Federated City Employees Retirement Fund”, was adopted. Vote: 10-0-1-0. Absent: Diaz.

9c Adoption of a resolution in connection with delivery of a new credit facility and remarketing of the Variable Rate Demand Multifamily Housing Revenue Bonds (Almaden Lake Village Apartments) Series 1997A (the “1997A Bonds”), and authorizing the issuance of Variable Rate Demand Multifamily Housing Revenue Refunding Bonds (Almaden Lake Village Apartments) Series 2000A (the “2000A Bonds”), including:

(1) Approving in substantially final form an Amended and Restated Trust Indenture, Amended and Restated Regulatory Agreement, Financing Agreement, Assignment and Intercreditor Agreement, Remarketing Agreement, Official Statement and Bond Purchase Agreement; and authorizing the Director of Finance and Housing to execute and, as appropriate, to negotiate and deliver these documents and other related documents.

(2) Authorizing the appointment of Banc One Capital Markets, Inc. as Underwriter for the 2000A Bonds and Remarketing Agent for the 1997A and the 2000A Bonds.

(Finance/Housing)

Documents Filed: None.

Discussion/Action: This item was deferred to March 21, 2000.

9d Report on bids and award of contract for the 1998-99 federally funded Street Resurfacing Project to the low bidder, O’Grady Paving, Inc., in the amount of $1,190,501.05. CEQA: Exempt. (Public Works)

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

9e Adoption of a resolution authorizing the City Manager to apply for a California Law Enforcement Technology Equipment Purchase (CLETEP) Program in an amount not to exceed $468,640, to accept the grant if awarded, and to execute all related documents. (Police)

(Rules Committee referral 3/1/00)

Documents Filed: Memorandum from Chief of Police William M. Lansdowne, dated February 14, 2000, recommending Council adopt said resolution.

Discussion/Action: William J. Garbett spoke against the proposed action. Upon motion by Council Member Diquisto, seconded by Council Member Shirakawa Jr. and unanimously carried, Resolution No. 69434, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Apply For a California Law Enforcement Technology Equipment Purchase Program Grant in an Amount Not to Exceed $468,640, to Accept the Grant if Awarded, and to Execute All Related Documents”, was adopted. Vote: 10-0-1-0. Absent: Diaz.

9f Approval of an agreement for consultant services with A-N West, Inc., for the design of North San José Rincon De Los Esteros Storm Drain Improvements Phase II for the period February, 2000 to September, 2003, in an amount not to exceed $2,020,000. (Public Works)

(Deferred from 2/29/00 – Item 9d)

Documents Filed: Memorandum from Director of Public Works, Ralph A. Qualls Jr., dated February 9, 2000, recommending Council approve said consultant services agreement.

Discussion/Action: Upon motion by Council Member Matthews, seconded by Vice Mayor Fiscalini and unanimously carried, the consultant services agreement with A-N West, Inc., was approved and execution of the agreement authorized. Vote: 10-0-1-0. Absent: Diaz.

ORAL COMMUNICATIONS

Ross Signorino presented to the City Council a video of “The Movie Palace”, narrated by Gene Kelly, to be forwarded to the Dr. Martin Luther King, Jr Main Library for retention.

PUBLIC HEARINGS

15a PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the east side of Cypress Avenue, 40 feet northerly of Olsen Drive, from R-1:B-8 Residence Zoning District to A(PD) Planned Development Zoning District, to allow one single-family detached and two single-family attached residential units on 0.37 gross acre. (Daryoush Marhamat, Owner/Developer). CEQA: Incomplete.

PDC 98-09-069 – District 1

(Continued from 3/2/99 – Item 15d et al., and 1/18/00 – Item 15b)

Documents Filed: None.