CSJ 4-3-01 City Council Meeting Minutes

MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, APRIL 3, 2001

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: Campos, Chavez, Cortesé, Dando, Diquisto, LeZotte, Reed, Shirakawa Jr., Williams, Yeager; Gonzales

Absent: Council Members: None.

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 anticipated litigation of a matter where there is significant exposure to litigation pursuant to subsection (b) of Section 54956.9 of the Government Code; and (B) to confer with Labor Negotiator pursuant to Government Code Section 54957.6 involving City Negotiator City Manager designee Alex Gurza and the Operating Engineers Local 3 Employee Organization.

By unanimous consent, Council reconvened from Closed Session and recessed at 11:00 a.m. and reconvened at 1:35 p.m. in Council Chambers, City Hall.

Present: Council Members: Campos, Chavez, Cortesé, Dando, Diquisto, LeZotte, Reed, Shirakawa Jr., Williams, Yeager; Gonzales

Absent: Council Members: None.

INVOCATION

Associate Pastor Dave Sefton, Jubilee Christian Center, delivered the invocation. (District 4)

PLEDGE OF ALLEGIANCE

Mayor Gonzales led in the Pledge of Allegiance.

ORDERS OF THE DAY

Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Dando and unanimously carried, the Orders of the Day, continuing Item 11.7 to April 17, 2001, and the Amended Agenda were approved. Vote: 11-0-0-0.

Mayor Gonzales and the City Council joined Council Member Williams in welcoming Mrs. Lanier and her 3^rd Grade Class from St. Stephens School, who attended the Council meeting accompanied by parents, teachers and school administrators. The guests were asked to stand to be recognized.

CEREMONIAL ITEMS

1.1 Presentation of a commendation to James T. Harper in honor of his retirement. (Mayor)

(Rules Committee referral 3/28/01)

Documents Filed: None.

Discussion/Action: Joining Mayor Gonzales at the Podium were Council Member Dando and honoree James Harper who was presented the commendation in recognition of his contributions to the City of San José.

1.2 Presentation of a proclamation to announce the City of San José Energy Fair, April 8, 2001. (Mayor)

(Orders of the Day)

Documents Filed: None.

Discussion/Action: Joining Mayor Gonzales at the Podium were Director of Environmental Services Carl W. Mosher, and Environmental Program Manager Mary Tucker who invited the public to attend the City of San José Energy Fair at ComPaq Center – Concourse Area (Formerly San José Arena), on Sunday, April 8, 2001, 10:00 a.m. to 5:00 p.m., where more than 20 vendors are scheduled to showcase their energy saving products and share ideas on using solar energy and financing strategies for retrofitting residential structures.

CONSENT CALENDAR

Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez and unanimously carried, the Consent Calendar was approved and the below listed actions were taken as indicated. Vote: 11-0-0-0.

2.1 (a) Approval of minutes for Regular meeting of December 12, 2000

Documents Filed: Minutes of the regular meeting of December 12, 2000.

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

(b) Approval of minutes for the Joint City Council/Redevelopment Agency Board meeting of December 12, 2000.

Documents Filed: Minutes of the joint Council/Board meeting of December 12, 2000.

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

(c) Approval of minutes for the Regular meeting of December 19, 2000

Documents Filed: Minutes of the regular meeting of December 19, 2000.

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

(d) Approval of minutes for the Joint City Council/San Jose Financing Authority meeting of December 19, 2000

Documents Filed: Minutes of the joint Council/Authority meeting of December 19, 2000.

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

(e) Approval of minutes for the Joint City Council/Redevelopment Agency Board meeting of December 19, 2000

Documents Filed: Minutes of the joint Council/Board meeting of December 19, 2000.

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

2.2 (a) Final adoption of Ordinance No. 26325 – Amends Chapter 20.90 of Title 20 of the San José Municipal Code by adding a new Part 8 to establish the Alum Rock Village Parking Management Zone.

Documents Filed: Proof of publication of the title of Ordinance No. 26325 executed on March 27, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26325 was adopted. Vote: 11-0-0-0.

(b) Final adoption of Ordinance No. 26327 – Rezones certain real property situated at the southeast corner of Hedding Street and Park Avenue.

PDC 00-10-107

Documents Filed: Proof of publication of the title of Ordinance No. 26327 executed on March 27, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26327 was adopted. Vote: 11-0-0-0.

(c) Final adoption of Ordinance No. 26328 - Rezones certain real property situated on the south side of Berryessa Road between 16^th and 17^th Streets. PDC 00-09-092

Documents Filed: Proof of publication of the title of Ordinance No. 26328 executed on March 27, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26328 was adopted. Vote: 11-0-0-0.

(d) Final adoption of Ordinance No. 26329 - Rezones certain real property situated on the northwest corner of West Alma Avenue and Sherman Street. PDC 00-12-122

Documents Filed: Proof of publication of the title of Ordinance No. 26329 executed on March 27, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26329 was adopted. Vote: 11-0-0-0.

(e) Final adoption of Ordinance No. 26330 - Rezones certain real property situated approximately 600 feet southerly of Umbarger Road between Monterey Road and Aiello Drive.

PDC 00-06-051

Documents Filed: Proof of publication of the title of Ordinance No. 26330 executed on March 27, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26330 was adopted. Vote: 11-0-0-0.

(f) Final adoption of Ordinance No. 26331 - Rezones certain real property situated on the northerly side of Piercy Road, approximately 350 feet easterly of the intersection of Silver Creek Valley Road and Hellyer Avenue.

PDC 00-08-077

Documents Filed: Proof of publication of the title of Ordinance No. 26331 executed on March 27, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26331 was adopted. Vote: 11-0-0-0.

(g) Final adoption of Ordinance No. 26332 - Rezones certain real property situated on the west side of Winchester Boulevard approximately 150 feet northerly of Neal Avenue.

PDC 00-12-123

Documents Filed: Proof of publication of the title of Ordinance No. 26332 executed on March 27, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26332 was adopted. Vote: 11-0-0-0.

(h) Final adoption of Ordinance No. 26333 - Rezones certain real property situated at the southeast corner of East Hedding and North 8^th Streets.

PDC 00-10-101

Documents Filed: Proof of publication of the title of Ordinance No. 26333 executed on March 27, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26333 was adopted. Vote: 11-0-0-0.

(i) Final adoption of Ordinance No. 26334 - Prezones certain real property situated in the public right-of-way located on the north side of Curtner Avenue, approximately 540 feet easterly of Salerno Drive, to the intersection of Curtner Avenue and Salerno Drive.

CC 1-02-018

Documents Filed: Proof of publication of the title of Ordinance No. 26334 executed on March 27, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26334 was adopted. Vote: 11-0-0-0.

2.3 (a) Adoption of a resolution accepting a grant award from the State’s “California Law Enforcement Equipment Program.”

(b) Adoption of an appropriation ordinance and funding sources resolution amendments to establish an appropriation in the amount of $419,268 to the Police Department.

(City Manager’s Office/Police)

Documents Filed: Memorandum from Chief of Police William M. Lansdowne, and Budget Director Larry D. Lisenbee, dated March 14, 2001, recommending Council adopt said resolution and appropriation ordinance and funding sources resolution amendments.

Discussion/Action: Resolution No. 70242, entitled: “A Resolution of the Council of the City of San José Accepting a Grant From the California Law Enforcement Equipment Program for the Purchase of High Technology Equipment for the Police Department in an Amount Not to Exceed $419,268”; Ordinance No. 26339, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26141 to Appropriate Moneys in the General Fund in the Amount of $419,268 for the California Law Enforcement Equipment Program (CLEEP); and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”; and Resolution No. 70243, entitled: “A Resolution of the Council of the City of San José Amending Resolution No. 69683 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2000-2001 to Adjust Revenues in the General Fund”, were adopted. Vote: 11-0-0-0.

2.4 Authorization for the City Manager to travel to attend the ICMA Best Practices 2001 Conference in Newport, Rhode Island from April 25 through April 29, 2001. (City Manager’s Office)

Documents Filed: Memorandum from City Manager, Del D. Borgsdorf, dated March 21, 2001, recommending Council approve said travel request.

Discussion/Action: The City Manager’s request to travel was approved. Vote: 11-0-0-0.

2.5 Approval of an agreement with Lewis deSoto to design a work of art for the Animal Shelter in an amount not to exceed $27,300. Council District 7.

(Conventions, Arts and Entertainment)

Documents Filed: Director of Conventions, Arts and Entertainment, Nancy Johnson, dated March 15, 2001, recommending Council adopt a resolution authorizing the City Manager to negotiate and execute an agreement with said artist.

Discussion/Action: The agreement with Lewis deSoto was approved and execution of the agreement authorized. Vote: 11-0-0-0.

2.6 Adoption of a resolution authorizing the City Manager to submit a grant application to the California Energy Commission-Renewable Energy Consumer Education Program in the amount of $125,650, to conduct a program that provides renewable energy educational materials and workshops for City Departments and their customers for the period June 1, 2001 through June 30, 2002, to accept the grant if awarded, and to execute all related documents.

(Environmental Services)

Documents Filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated March 14, 2001, recommending Council adopt said resolution.

Discussion/Action: Resolution No. 70244, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Submit a Grant Application to the California Energy Commission’s Renewable Energy Consumer Education Program, in an Amount Not to Exceed $125,650 for the Period June 1, 2001 Through June 30, 2002 to Accept the Grant if Awarded and to Execute All Related Documents”, was adopted. Vote: 11-0-0-0.

2.7 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2000-2001 #36, 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 March 14, 2001, 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. 36 for Fiscal Year 2000-2001 was approved and execution of the purchase orders authorized. Vote: 11-0-0-0.

2.8 Reject all bids for the purchase of a portable X-ray system for the Police Department’s Bomb Unit.

(General Services)

Documents Filed: Memorandum from Director of General Services, Steve S. Yoshino, dated March 14, 2001, recommending Council reject all bids for the purchase of said system.

Discussion/Action: The recommendation to reject all bids for the purchase of the X-ray system was approved and no new bid solicitation issued. Vote: 11-0-0-0.

2.9 Adoption of a resolution authorizing the City Manager to execute three contracts with the Commission on Peace Officer Standards and Training related to components of the previously approved POST-reimbursed training program for peace officers in Santa Clara County, for a contract term from July 1, 2000 to June 30, 2001, in an amount of $280,168. (Police)

Documents Filed: Memorandum from Chief of Police William M. Lansdowne, dated March 14, 2001, recommending Council adopt said resolution.

Discussion/Action: Resolution No. 70245, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Execute Three Agreements With the California Commission on Peace Officer Standards and Training Relating to the Training of Peace Officers in Santa Clara County That is Reimbursable by P.O.S.T. in a Total Amount Not to Exceed $280,168 For the Period of July 1, 2000 to June 30, 2001”, was adopted. Vote: 11-0-0-0.

2.10 Adoption of a resolution of intention to conditionally vacate a portion of Fontanoso Avenue immediately east of Hellyer Avenue; to reserve a public service easement (PSE); and setting a public hearing on May 1, 2001 at 1:30 p.m. CEQA: Resolution No. 70021. Council District 2. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated March 14, 2001, recommending Council adopt said resolution.

Discussion/Action: Resolution No. 70246, entitled: “A Resolution of the Council of the City of San José Setting a Public Hearing to Consider Whether to Conditionally Vacate a Portion of Fontanoso Avenue Immediately East of Hellyer Avenue, and Reserving a Public Service Easement”, was adopted. Vote: 11-0-0-0.

2.11 Approval of a continuation agreement for consultant services with Denise Duffy & Associates, Inc. for the preparation of environmental impact reporting services for the Tuers-Capitol Golf Course Project, extending the term through June 30, 2003, with no change to the total agreement amount of $287,177. Council District 7. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated March 14, 2001, recommending Council approve said agreement.

Discussion/Action: The continuation agreement for consultant services with Denise Duffy & Associates, Inc., was approved and execution of the agreement authorized. Vote: 11-0-0-0.

2.12 Approval of an agreement with Dillon Design Associates for consultant services for the O’Connor (Midtown) Park Project, from the date of execution of the agreement to February 28, 2003, in the amount of $66,000, and additional services in the amount of $6,000, for a total agreement amount of $72,000. CEQA: Negative Declaration. Council District 6. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated March 14, 2001, recommending Council approve said agreement.

Discussion/Action: The consultant services agreement with Dillon Design Associates was approved and execution of the agreement authorized. Vote: 11-0-0-0.

2.13 Approval of a five-year lease agreement with Wen Y. Huang for 12,600 square feet of office space on the ground floor of a building located at 1671 The Alameda for the Police Department’s Community Service Division at a rental rate of $51,660 per month for the first year of the lease with annual increases to $63,000 per month for the final year of the lease term. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated March 14, 2001, recommending Council approve said agreement.

Discussion/Action: The five-year lease agreement with Wen Y. Huang was approved and execution of the agreement authorized. Vote: 11-0-0-0.

2.14 Final adoption of Ordinance No. 26326 – Amends Section 20.40.100 of Chapter 20.40 of Title 20 of the San José Municipal Code to amend Table 20.90 to add additional use regulations on a portion of the properties within the Downtown Core regarding ground floor street frontage space and to add Section 20.200.295 to Chapter 20.200 to further clarify the additional ground floor use regulations.

Documents Filed: Proof of publication of the title of Ordinance No. 26326 executed on March 27, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26326 was adopted. Vote: 11-0-0-0.

2.15 Approval of a request from Design Space Modular Buildings, Inc. to substitute VHT Plumbing in place of Northstar Plumbing, as subcontractor to perform the plumbing work for the Police Athletic League Modular Building Project at no cost to the City. CEQA: Exempt. Council District 5. (Public Works)

(Rules Committee referral 3/28/01)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated March 27, 2001, noting the reason for addendum and recommending approval of the request to substitute subcontractors.

Discussion/Action: The request to replace VHT Plumbing with Northstar Plumbing, as subcontractor to perform the plumbing work for the Police Athletic League Modular Building Project was approved. Vote: 11-0-0-0.

2.16 Approval of an agreement with the beals group, inc. for consultant services for the Cahalan and Playa del Rey Parks Renovation and Houge Park Renovation Projects, from the date of execution of the agreement to May 31, 2002, in the amount of $172,130, and additional services in the amount of $20,000, for a total agreement amount of $192,130. Council Districts 9 and 10. (Public Works)

(Rules Committee referral 3/28/01)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated March 20, 2001, noting the reason for addendum and recommending approval of said agreement with the beals group, inc.

Discussion/Action: The consultant services agreement with the beals group, inc. was approved and execution of the agreement authorized. Vote: 11-0-0-0.

2.17 TRACT NO. 9285 – Southwest corner of Sierra Road and Piedmont Road – Summerhill Piedmont LLC, A California Limited Liability Company, Owner by: Summerhill Homes LLC, A California Limited Liability Company, its manager (Developer) – 25 single family detached residential units. Approval of a parkland agreement and adoption of resolutions approving the plans, final map, and contract for Tract No. 9285. CEQA: ND. Council District 4. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated March 27, 2001, recommending Council approve the parkland agreement and adopt said resolutions.

Discussion/Action: The parkland agreement with Summerhill Piedmont LLC, was approved and execution of the agreement authorized; and Resolution No. 70247, 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. 9285”; Resolution No. 70248, entitled: “A Resolution of the Council of the City of San José Approving and Accepting Final Map of Tract No. 9285”; and Resolution No. 70249, 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. 9285”, were approved. Vote: 11-0-0-0.

2.18 Approval of the designation of the Project Diversity Screening Committee chair. (Mayor)

(Rules Committee referral 3/28/01)

Documents Filed: Memorandum from Mayor Gonzales, dated April 2, 2001, recommending Council designate Lupe Zuniga as Chair of the Project Diversity Screening Committee.

Discussion/Action: The appointment of Lupe Zuniga to serve as Chair of the Project Diversity Steering Committee was approved. Vote: 11-0-0-0.

2.19 Approval of an ordinance adding a new Chapter 1.19 of Title 1 of the San José Municipal Code to include general provisions related to bonds and amending and restating Chapter 4.38 of Title 4 relating to the powers and procedures for the issuance of Airport Revenue Bonds. CEQA: Exempt. (City Attorney’s Office)

(Rules Committee referral 3/28/01)

Documents Filed: Memorandum from City Attorney, J. Richard Doyle dated March 29, 2001, recommending Council adopt said ordinance.

Discussion/Action: Ordinance No. 26340, entitled: “An Ordinance of the City of San José Adding a New Chapter 1.19 to Title 1 of the San José Municipal Code to Include General Provisions Related to Bonds and Amending and Restating Chapter 4.38 Entitled ‘City of San José Airport Revenue Bond Law’ Relating to Powers and Procedures to Issue Revenue Bonds for the Purpose of Financing the City’s Airport”, was passed for publication. Vote: 11-0-0-0.

END OF CONSENT CALENDAR

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – March 21, 2001

Documents Filed: Rules Committee Report of March 21, 2001.

(a) Redevelopment Agency items reported out at Redevelopment Agency meeting

The Committee forwarded all items to Redevelopment Agency Board.

(b) City Council

(1) Review April 3, 2001 Draft Agenda

The Committee approved the April 3, 2001 Amended Agenda.

(2) Add New Items to March 27, 2001 Amended Agenda

The Committee recommended four additions to the March 27, 2001 City Council Agenda.

(1) Amendments to Council Committee Agendas

(a) Finance and Infrastructure Committee

(b) Economic Development and Environment Committee

(d) Ad Hoc Traffic Calming Advisory Committee

None Presented.

(d) Meeting Schedules. Attachment: Memorandum from Assistant to the City Manager, Deanna J. Santana, dated March 20, 2001, recommending approval of the proposed date for a Strong Neighborhoods Initiative Study Session.

(1) Request to schedule a Strong Neighborhoods Initiative Study Session on April 26, 2001, from 8:00 – 12:00 p.m. in the Council Chambers.

The Committee recommended approval for a Strong Neighborhoods Initiative Study Session on April 26, 2001, 8:00 a.m. to 12:00 Noon in Council Chambers.

(e) The Public Record

None Presented.

(f) Boards, Commissions and Committees

None Presented.

(g) Council Referrals for Assignment to Appropriate Committee, Administration, or Council Appointee. Attachments: (1) Memorandum from City Manager, Del D. Borgsdorf, dated March 8, 2001, recommending acceptance of the status report on the 2001 Council Referral Schedule and direction to the Administration to revise Council Policy 0-12 to reflect the current Council Referral process. (2) Memorandum from City Manager, Del D. Borgsdorf, dated March 14, 2001, noting the reason for the supplemental memorandum and providing current information on the 2001 Council Referral Schedule.

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

(1) Accept status report on the 2001 Council Referral Schedule and direct Administration to revise Council Policy 0-12 to reflect the current Council Referral process.

The Committee recommended acceptance of the status report on the 2001 Council Referral Schedule to include two changes:

· Council Referral No. 12-14-99-8(c-d) – Change due date to April 2001

· Council Referral No. 12-12-00-9i – Include a report on the length of time for City to process checks.

The Committee made the following suggestions to streamline/facilitate the Council Referral process, i.e., that (a) Council Member clearly state their referrals and follow-up with a written request; (b) the Administration commit to a date on which an Administrative Workload Assessment report will be returned to the Rules Committee; (c) due dates to Rules Committee be closely tracked; (d) requests for information, not referrals, be electronically mailed to the City Manager; (e) the Administration centralize duplicate tracking systems for referrals or requests for information; (f) the preparation of ordinances as part of a referral be tracked with the referral; (g) the Administration complete Workload Assessment on “high priority” items first and, if time allows, proceed to lower priority items; (h) the Rules Committee review referrals on a regular basis, e.g., quarterly or semi-annually; and (i) the revised draft Council Policy 0-12 be reviewed by Rules Committee prior to Council review.

(2) Request to refer a review of the City’s enforcement of Mitigation Monitoring Plans to the April 2, 2001 Economic Development and Environment Committee meeting for study and discussion. Attachment: Memorandum from Council Member Reed, dated March 8, 2001, recommending the Rules Committee add a review of the City’s enforcement of Mitigation Monitoring Plan to the April 2, 2001 Economic Development & Environment Committee Agenda for study and discussion by Committee.

The Committee recommended an oral review of the City of San José’s enforcement of Mitigation Monitoring Plan be added to the April 2, 2001 Economic Development & Environment Committee Agenda, followed by a written report at the May 7, 2001 Committee meeting.

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

(3) Direct the City Auditor to conduct a review of the repayment terms and conditions of the Redevelopment Agency’s development agreements. Attachment: Memorandum from City Auditor, Gerald A. Silva, dated March 7, 2001, recommending the Rules Committee direct the City Auditor to conduct a review of the repayment terms and conditions of the Redevelopment Agency’s development agreements.

The Committee recommended the City Auditor be directed to conduct a review of the repayment terms and conditions of the Redevelopment Agency’s development agreements.

(h) Administrative Reviews and Approval

None Presented.

(i) Oral communications

None Presented.

(j) Adjournment

The meeting was adjourned at 2:40 p.m.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez and unanimously carried, the Rules Committee Report and actions of March 21, 2001 were accepted. Vote: 11-0-0-0.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.3 Public Hearing and adoption of a resolution designating the Montgomery Hotel as a Historic Landmark (HL00-120).

(Historic Landmarks Commission)

Documents Filed: (1) Memorandum from Historic Landmarks Commission Secretary James R. Derryberry, dated March 14, 2001, stating the Historic Landmarks Commission recommends the City Council adopt said resolution. (2) Notice of Public Hearings on the proposed designation of the Montgomery Hotel as an historic landmark in the City of San José, dated February 15, 2001, and Proofs of Publication in the San José Post – Record executed on February 23, 2001, and in the San José Mercury News dated February 25, 2001, both submitted by the City Clerk. (3) Affidavits of Routing and Mailing of Resolution No. 70250 designating The Montgomery Hotel as a City landmark, both dated April 11, 2001, and both submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the historic landmarks designation of the subject property. There was no discussion from the Floor. Upon motion by Council Member Williams, seconded by Council Member Chavez and unanimously carried, the public hearing was closed and Resolution No. 70250, entitled: “Resolution of the Council of the City of San José Designating, Pursuant to the Provisions of Chapter 13.48 of Title 13 of the San José Municipal Code, The Montgomery Hotel as a Landmark of Special Historical, Architectural, Cultural, Aesthetic or Engineering Interest or Value of a Historic Nature”, was adopted. Vote: 11-0-0-0.

4.5 (a) Close the public hearing on the proposed formation of Community Facilities District No. 5 (North Coyote Valley).

(b) Adoption of a resolution directing the recordation of Notice of Abandonment of the process for Community Facilities District No. 5 (North Coyote Valley).

(c) Adoption of a Resolution of Intention to establish Community Facilities District No. 5A (North Coyote Valley Facilities), and set the public hearing on this matter for May 1, 2001 at 1:30 p.m.

(d) Adoption of a Resolution of Intention to establish Community Facilities District No. 5B (North Coyote Valley Services), and set the public hearing on this matter for May 1, 2001 at 1:30 p.m.

(e) Adoption of a resolution authorizing the City Manager to negotiate and execute the second amendment to the agreement with E. Wagner & Associates for financial consulting services, increasing compensation by $5,000, from $70,000 to $75,000, and extending the term of the agreement from June 30, 2001 to September 30, 2001.

(f) Adoption of a resolution authorizing the City Manager to negotiate and execute the second amendment to the agreement with Berryman & Henigar for tax consultant services, increasing compensation by $40,000, from $84,500 to $124,500, and extending the term of the agreement from June 30, 2001 to September 30, 2001.

(g) Adoption of a resolution authorizing the City Attorney to negotiate and execute the second amendment to the agreement with Jones Hall for special counsel services, increasing compensation by $20,000, from $90,000 to $110,000, and extending the term of the agreement from June 30, 2001 to September 30, 2001.

CEQA: Resolution No. 69957. (Public Works)

(Continued from 11/7/00 – Item 10a et al., and 3/27/01 – Item 4.5)

Documents Filed: (1) Memorandum from Senior Deputy City Manager, Darrell Dearborn, dated April 3, 2001, noting the reason for supplemental memorandum concerning North Coyote Valley Community Facilities District (CFD) Nos. 5A and 5B. (2) Memorandum from Senior Deputy City Manager, Darrell Dearborn, dated March 27, 2001, noting the reason for replacement memorandum concerning North Coyote Valley Campus Industrial Area and recommending Council take appropriate action on the proposed formation of CFD No. 5. (3) Memorandum from Senior Deputy City Manager, Darrell Dearborn, dated February 26, 2001, noting the reason for replacement memorandum concerning North Coyote Valley Campus Industrial Area and the CFD boundaries and the Phase II Flood Detention Area, and recommending Council take appropriate action on the proposed formation of CFD Nos. 5A and 5B. (4) Memorandum from Acting Director of Public Works Rajeev Batra, dated October 18, 2000, recommending Council take actions related to the proposed formation of Community Facilities District No. 5. (5) Notice of Public Hearing regarding establishment of Community Facilities District No. 5 (North Coyote Valley), dated October 24, 2000, and Proof of Publication of the Notice of Public Hearing regarding the establishment of City of San José CFD No. 5, executed on October 27, 2000, submitted by the City Clerk.(6) Affidavit of Posting of the Notice of Public Hearing on the establishment of CFD No. 5, dated October 27, 2000, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales stated the public hearing on the North Coyote Valley Community Facilities District No. 5 was opened November 7, 2000, with no public testimony presented; after which, the Public Hearing was continued with direction to Staff to consider any changes and modifications to the documents. Consistent with a previous position on North Coyote Valley projects, Council Member Dando entered a disqualification from discussion and decision on the subject Community Facilities District, predicated on family investments. William J. Garbett spoke against the proposed action. Upon motion by Council Member Williams, seconded by Council Member Yeager and carried, City Staff recommendation to close the public hearing on the proposed formation of Community Facilities District No. 5 (North Coyote Valley), was approved; and Resolution No. 70251, entitled: “A Resolution of the Council of the City of San José Directing Recording of Notice of Abandonment – Community Facilities District No. 5 (North Coyote Valley)”; Resolution No. 70252, entitled: “A Resolution of the Council of the City of San José of Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes – Community Facilities District No. 5A (North Coyote Valley Facilities)”; Resolution No. 70253, entitled: “A Resolution of the Council of the City of San José of Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes – Community Facilities District No. 5B (North Coyote Valley Services)”; Resolution No. 70254, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Second Amendment to the Agreement With E. Wagner & Associates for Financial Consulting Services to Extend the Term Through September 30, 2001 and to Increase Compensation by $5,000 for a Total Amount Not to Exceed $75,000”; Resolution No. 70255, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Second Amendment to the Agreement With Berryman & Henigar for Tax Consultant Services to Extend the Term Through September 30, 2001 and to Increase Compensation by $40,000 for a Total Amount Not to Exceed $124,500”; and Resolution No. 70256, entitled: “A Resolution of the Council of the City of San José Authorizing the City Attorney to Negotiate and Execute a Second Amendment to the Agreement With Jones Hall for Special Counsel Services to Extend the Term Through September 30, 2001 and to Increase Compensation by $20,000 for a Total Amount Not to Exceed $110,000”, were adopted. Vote: 10-0-0-1. Disqualified: Dando.

RECREATION & CULTURAL SERVICES

5.1 Report of the Education, Neighborhoods, Youth, and Seniors Committee – March 19, 2001

Documents Filed: Education, Neighborhoods, Youth, and Seniors Committee report of March 19, 2001.

(a) Youth Commission Monthly Report. Memorandum from San José Youth Commission Chairperson Jennifer Leung, dated March 7, 2001, submitting the monthly report on the Youth Commission activities for the month of February 2001.

The Committee accepted the Staff report with direction to bring a skateboarding report/timeline before Committee at the April 16, 2001 meeting.

(b) Quarterly Update City/SJSU Joint Library Project

The Committee deferred this item to April 16, 2001 meeting.

(c) Homework Center Tier 2 Evaluation Report. Attachment: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated March 7, 2001, recommending acceptance of the summary and recommendations of the Homework Centers Program Tier II evaluation as a basis for ongoing program improvements.

The Committee accepted the Staff report with the following direction to be used:

· A standard tool is used for evaluation.

· Random visits by Council Offices, as well as City Staff

· A full report to Council that includes the actual survey

· Focus more on grades when developing evaluation.

· Look at age and location targets

· Look at who is providing services

(d) Oral petitions

None Presented.

(e) Adjournment

The meeting was adjourned at 2:45 p.m.

Discussion/Action: Upon motion by Council Member Chavez, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, the Education, Neighborhoods, Youth, and Seniors Committee Report and actions of March 19, 2001 were accepted. Vote: 11-0-0-0.

5.2 (a) Acceptance of the second quarter report summarizing the status of Community Development Block Grant (CDBG) projects, recommending corrective actions, and acknowledging the return of funds to the CDBG reserve.

(b) Extension of the funding term for six months, from December 31, 2000 to June 30, 2001, for the following projects:

(1) G10, Minor Street Reconstruction & Infrastructure Improvements – Department of Public Works.

(2) G27, McKinley Community Facilities Improvement – Department of Parks, Recreation and Neighborhood Services.

(c) Extension of the funding term for one year, from December 31, 2000 to December 31, 2001, for the following project:

(1) F72, HomeSafe – Charities Housing Development Corporation.

(Parks, Recreation and Neighborhood Services)

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated March 14, 2001, recommending Council approve the actions regarding the Community Development Block Grant (CDBG) Second Quarter Monitoring Report for the 2000-2001 Program Year.

Discussion/Action: Upon motion by Council Member Williams, seconded by Council Member Reed and unanimously carried, the Second Quarter Report on the status of CDBG projects was accepted with recommended corrective actions approved, and the six-month extension of the funding term for projects G10 and G27 and the one-year extension for project F72 were approved. Vote: 11-0-0-0.

TRANSPORTATION SERVICES

6.1 Traffic Calming Advisory Committee (Ad Hoc) – March 22, 2001

Documents Filed: Traffic Calming Advisory Committee report of March 22, 2001.

(a) Review of Traffic Signals Installation Policy. Attachment: Memorandum from Director of Streets and Traffic, Wayne K. Tanda, dated March 13, 2001, recommending acceptance of the report on Council Policy 2-2 Criteria For Installation of Traffic Signals.

The Committee accepted the staff report.

(b) Review of Stop Sign Installation Policy. Attachment: Memorandum from Director of Streets and Traffic, Wayne K. Tanda, dated March 15, 2001, recommending the Traffic Calming Advisory Committee review and provide feedback on the revised copy of the Council Policy 8-1, Criteria For the Installation of Stop Signs.

The Committee accepted the staff report and cross-referenced this item for Council action on April 3, 2001.

Discussion/Action: See Item 6.3 for Council action taken.

(c) Report on School Access Enhancement Study. Attachment: Memorandum from Director of Streets and Traffic, Wayne K. Tanda, dated March 15, 2001, recommending acceptance of the report on San José’s School Access Enhancement Program.

The Committee accepted the staff report.

(d) Report on Crossing Guard Allocation Policy. Attachment: Memorandum from Director of Streets and Traffic, Wayne K. Tanda, dated March 14, 2001, stating the San José Police Department will provide the Committee with a verbal presentation on the Policy.

The Committee accepted the staff report.

(e) Oral petitions

None Presented.

(f) Adjournment

The Committee adjourned at 4:00 p.m.

Discussion/Action: Upon motion by Council Member Reed, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, the Traffic Calming Advisory Committee Report and actions of March 22, 2001 were accepted with Item 6.1(b) acted upon at Item 6.3. Vote: 11-0-0-0.

6.2 (a) Report on bids and award of contract for the Street Lights-Monterey Pedestrian Project to the low bidder. CEQA: Exempt. Council District: 3. (Public Works)

(b) Adoption of an appropriation ordinance and funding sources resolution amendments in the Services for Redevelopment Capital Projects Fund (City-side Redevelopment Fund) for the Monterey Pedestrian Street Lights Project with a net impacts to the fund of $496,000. (City Manager’s Office)

Documents Filed: (1) Memorandum from Acting Director of Public Works Rajeev Batra, dated March 14, 2001, recommending Council accept the bid report and award said contract to the low bidder. (2) Memorandum from Budget Director, Larry D. Lisenbee, dated March 14, 2001, recommending Council adopt the appropriation ordinance and funding sources resolution amendments in the Services for Redevelopment Capital Projects Fund (City-side Redevelopment Fund).

Discussion/Action: This Item was dropped.

Council Member Campos left Chambers at this time in the meeting.

6.3 Adoption of a resolution amending Council Policy 8-1, Criteria for the Installation of Stop Signs. (Department of Transportation)

[Education, Neighborhoods, Youth and Seniors Committee referral 3/22/01 – Item 6.1(b)]

Documents Filed: Memorandum from Assistant to the City Manager, Deanna J. Santana, dated March 28, 2001, attaching for reference a copy of the staff report on the revisions to Council Policy 8-1.

Discussion/Action: Given Council discussion and the number of unknown factors involved in the implementation of the new policy, Council Member Reed stated the Traffic Calming Committee did review the policy, and took no definitive action because the report was submitted as an informational item. He stated the Traffic Engineers should be allowed an opportunity to apply the appropriate tools, assess the effectiveness of the Program, and report back to Council in six months. Upon motion by Council Member Chavez, seconded by Council Member Dando and unanimously carried, Resolution No. 70257, entitled: “A Resolution of the Council of the City of San José Adopting a Revised City Council Policy Entitled ‘Criteria For the Installation of Stop Signs’ ”, was adopted and the Administration directed to submit a status report to Council in six months. Vote: 10-0-1-0. Absent: Campos.

ENVIRONMENTAL & UTILITY SERVICES

7.1 Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with Planergy Services, Inc., to provide up to 8.5 Megawatts (MW) of electrical load reduction at the San Jose/Santa Clara Water Pollution Control Plant for the period June 1, 2001 to September 30, 2001, in return for payment to the City of between $600,000 to $1,000,000. (Environmental Services)

Documents Filed: (1) Memorandum from Director of Environmental Services, Carl W. Mosher, dated March 14, 2001, recommending Council adopt said resolution. (2) Supplemental report from San José/Santa Clara Water Pollution Control Plant, Treatment Plant Advisory Committee Chairperson, Rodney Diridon, Jr., dated April 12, 2001, recommending adoption of a resolution regarding the agreement with Planergy Services, Inc.

Discussion/Action: Upon motion by Council Member Williams, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, Resolution No. 70258, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement With Planergy Services, Inc., to Provide Up to 8.5 MegaWatts of Electrical Load Reduction at the San José/Santa Clara Water Pollution Control Plant for the Period June 1, 2001 to September 30, 2001 in Return For an Estimated Payment in an Amount Between $600,000 and $1,000,000”, was adopted. Vote: 10-0-1-0. Absent: Campos.

7.2 (a) Adoption of a resolution approving a new Master Parking Rate Schedule incorporating free parking for non-polluting vehicles at City municipal off-street parking facilities and on-street parking meters on a two-year pilot basis.

(b) Adoption of a resolution amending the Schedule of Fees for the Use of Parks and Recreational Facilities incorporating free parking for non-polluting vehicles at City regional parks on a two-year pilot basis.

(c) Direct staff to develop an ordinance that prohibits parking of non-electric vehicles in spaces reserved for electric vehicles.

(d) Direct staff to develop guidelines to support the use of Neighborhood Electric Vehicles.

(e) Direct staff to explore opportunities to expand the Alternative Fuel Vehicle Program to increase the City’s fleet of non-polluting vehicles where feasible.

(f) Direct staff to review the Bay Area Air Quality Management District model ordinance for Zero Emission Vehicles/Clean Air Vehicles and to develop a Clean Air Program that incorporates aspects of the ordinance that are appropriate for the City of San José.

(Streets and Traffic)

(Deferred from 3/27/01 – Item 7.3)

Documents Filed: None.

Discussion/Action: This item was deferred to April 17, 2001.

AVIATION SERVICES

8.1 Award the sole source purchase of a Mark 20A Instrument Landing System for the Airport Department to Airsys ATM, Inc., at a total cost of $724,284, including tax, and authorize the Director of General Services to execute the purchase order. CEQA: Resolution No. 67380. (General Services)

Documents Filed: Memorandum from Director of General Services, Steve S. Yoshino, dated March 14, 2001, recommending Council award said purchase to Airsys ATM, Inc., as a sole source purchase, pursuant to Section 4.12.020.D of the San José Municipal Code, and authorize the Director of General Services to execute the purchase order.

Discussion/Action: William J. Garbett spoke against the proposed action. Upon motion by Council Member Diquisto, seconded by Council Member Reed and unanimously carried, the award of the sole source purchase to Airsys ATM, Inc. was approved and execution of the purchase authorized. Vote: 10-0-1-0. Absent: Campos.

OPEN FORUM

William J. Garbett spoke on accessibility to public records.

RECESS/RECONVENE

Following Open Forum, Council recessed at 2:50 p.m. and reconvened at 7:08 p.m., Council Chambers, City Hall.

Present: Council Members: Campos, Chavez, Cortesé, Dando, Diquisto, LeZotte, Reed, Shirakawa Jr., Williams, Yeager; Gonzales

Absent: Council Members: None.

City Clerk, Patricia L. O’Hearn, read the requests for continuances of applications and other actions as recommended. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Dando and unanimously carried, the below noted continuances and other actions were granted. Vote: 11-0-0-0.

PUBLIC HEARINGS

11.1 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the easterly terminus of Skyway Drive, from (A) PD Planned Development Zoning District and R-1:B-6 Residence District to (A) PD Planned Development Zoning District, to allow: (1) secondary access to Diamond Heights Drive; (2) an increase in the maximum number of students from 1200 to 1400; (3) hard court and parking uses on areas previously designated for open space, and (4) deletion of the requirement to implement a busing program; and (5) combination of the previously approved portions of an existing high school and church campus under one Planned Development Zoning District on 52.68 gross acres. (Valley Christian Schools and South Valley Christian Church, Owner/Developer). CEQA: Negative Declaration.

PDC 00-08-065 - District 2

(Continued from 12/12/00 – Item 15k et al., and 3/20/01 – Item 11.3)

Documents Filed: None.

Discussion/Action: This item was continued to April 17, 2001.

11.2 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the northeast corner of Auzerais and Race Streets (1135 Auzerais Street), from M-1 Manufacturing Zoning District to (A) PD Planned Development Zoning District, to allow for the relocation of a billboard on 2.86 gross acres. (Chester C. Lehmann, Owner/Developer). CEQA: Exempt.

PDC 00-08-082 - District 6

(Continued from 12/12/00 – Item 15n et al., and 3/20/01 – Item 11.4)

Documents Filed: None.

Discussion/Action: This item was continued to April 17, 2001.

11.7 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located on the east side of North First Street, 250 feet southerly of Burton Avenue, from CN Neighborhood Commercial Zoning District to A(PD) Planned Development Zoning District, to allow a reduction in parking requirements for existing restaurant uses on 0.36 gross acres. (Cortesé, Owner; Tafreshi, Developer). CEQA: Negative Declaration. Director of Planning, Building and Code Enforcement and Planning Commission recommend approval (7-0-0).

PDC 01-02-013 - District 3

Documents Filed: None.

Discussion/Action: This item was continued to April 17, 2001.

11.3 PUBLIC HEARING ON CONFORMING PREZONING of the property located at the east side of North Bascom Avenue, approximately 100 feet northerly of Olive Avenue (104 North Bascom Avenue), from County to CP Commercial Pedestrian Zoning District, to allow commercial uses on 0.13 gross acres. (Kyo Phu, Owner/Developer). CEQA: Exempt. Director of Planning Building and Code Enforcement recommends approval. No Planning Commission action required.

C 00-09-098 - District 6

(Continued from 3/20/01 – Item 11.12)

Documents Filed: (1) Department of Planning, Building and Code Enforcement Staff Report on Project File Number C00-09-098, dated March 21, 2001, recommending approval of the proposed conforming prezoning. (2) Public Hearing Notice to consider a change in Zoning for C00-09-098, dated February 9, 2001, and Proof of Publication executed on February 23, 2001, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the conforming prezoning of the subject property. There was no discussion from the Floor. Upon motion by Council Member Yeager, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, the public hearing was closed and Ordinance No. 26341, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated at the East Side of North Bascom Avenue Approximately 100 Feet Northerly of Olive Avenue”, was passed for publication. Vote: 11-0-0-0.

11.6 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the southeast corner of East Taylor and North 7^th Streets, from HI Heavy Industrial Zoning District to A(PD) Planned Development Zoning District, to allow up to 95 attached dwelling units, 50,000 square feet of office space and 8,000 square feet of retail space on 1.9 gross acres. (Milton Fox Corp., Owner; Picerne Development, Developer). CEQA: Negative Declaration. Director of Planning, Building and Code Enforcement and Planning Commission recommend approval (7-0-0).

PDC 00-11-121 - District 3

Documents Filed: (1) Memorandum from Council Member Chavez, dated April 3, 2001, recommending Council approve the proposed rezoning with certain conditions. (2) Memorandum from Planning Commission Secretary James R. Derryberry, dated March 19, 2001, stating the Planning Commission voted 7-0 to recommend that the City Council adopt an ordinance approving the subject site as proposed by the applicant. (3) Public Hearing Notice to consider a change in Zoning for PDC 00-11-121, dated February 21, 2001, and Proof of Publication executed on March 2, 2001, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the planned development rezoning of the subject property. Referencing her April 3, 2001 memorandum on PDC 00-11-121, Council Member Chavez recommended Council approve the rezoning with the conditions contained therein. Upon motion by Council Member Chavez, seconded by Council Member Dando and unanimously carried, the public hearing was closed; the Planning Commission recommendation approved; Ordinance No. 26342, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated at the Southeast Corner of East Taylor and North Seventh Streets”, was passed for publication with the proposed addition that Staff initiate development of a parking management district for the Japantown Business District, and that the Developer contribute a maximum amount determined through negotiations between the Public Works Department and the Developer for costs associated with traffic improvements necessary because of the project, i.e., traffic signals and/or traffic calming elements. Vote: 11-0-0-0.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.4 (a) Approval of the East Dobern/Capitol-Goss Neighborhood Revitalization Plan.

(b) Direction to the City Manager to authorize the Departments with implementation responsibilities to begin their respective activities, including the general oversight of the implementation of the Plan by the Department of Parks, Recreation and Neighborhood Services.

(c) Approval of the proposed expenditure of the $600,000 of Neighborhood Revitalization Strategy funds, which were allocated to the East Dobern and Capitol-Goss neighborhoods in Fiscal Year 2000-2001, as indicated in Plan.

(d) Urge the property owners, residents, and community members of the East Dobern and Capitol-Goss neighborhoods to dedicate their time, energy, and resources to implement the recommendations of the Plan, recognizing that the successful revitalization of their neighborhoods will ultimately depend on community commitment and investment.

Council District 5. (Planning, Building, and Code Enforcement)

Documents Filed: (1) Memorandum from Council Member Campos, dated April 2, 2001, recommending Council approve the Neighborhood Revitalization Plan. (2) Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated March 16, 2001, recommending Council approve the Revitalization Plan and related actions. (3) Document entitled “East Dobern/Capitol-Goss Neighborhood Revitalization Plan – Draft”, prepared by the Department of Planning, Building and Code Enforcement, dated March 2001.

Discussion/Action: City Senior Planner Michael Brilliot introduced the proposed Revitalization Plan as the collaborative effort of the East Dobern/Capitol-Goss Neighborhood Advisory Committee and City Staff, and the valuable assistance of neighborhood participants. He introduced Juanita Guttierez, Dobern/Capitol Association, who presented an overview of the proposed Plan; and Everardo Ramirez, Vice President, Capitol Park-Goss Community Association; Ezequiel Nevarez, President, Capitol Park-Goss Community Association, and Olga Ruiz, East Dobern Community Association, who spoke in favor of the Plan. Upon motion by Council Member Campos, seconded by Council Member Diquisto and unanimously carried, the East Dobern/Capitol Goss Neighborhood Revitalization Plan that proposes the expenditure of $600,000 of Neighborhood Revitalization Strategy (NRS) funds, which were allocated to these neighborhoods in Fiscal Year 2000-2001, was approved. Vote: 11-0-0-0.

4.2 Public Hearing opening the 30 day review for the 2001-2002 Draft Consolidated Plan Annual Action Plan, including FY 2001-2002 proposed recommendations for the Community Development Block Grant (CDBG) Program, the HOME Program, the Housing Opportunities for People with AIDS (HOPWA) Program, and the Emergency Shelter Grant (ESG) Program.

(Housing/Parks, Recreation and Neighborhood Services)

Documents Filed: (1) Memorandum from Council Member Reed, dated March 30, 2001, submitting supplemental information on the funding recommendations proposed for the Community Development Block Grant (CDBG) Program. (2) Memorandum from Director of Housing Alex Sanchez, and Director of Parks, Recreation and Neighborhood Services Mark Linder, dated April 3, 2001, recommending Council open, for public review and comment, the hearing on the 2001-2002 Draft Consolidated Plan Annual Action Plan, and attaching a Draft of the “2001-2002 Consolidated Annual Action Plan”, prepared by the Department of Housing. (3) Correspondence from individuals and organizations expressing their opinion regarding the Draft 2001-2002 San José Consolidated Action Plan.

Discussion/Action: Mayor Gonzales opened the public hearing on the review of the Consolidated Plan. He stated tonight’s meeting is the first in a series of public hearings on the Annual Consolidated Plan, as required by the federal government for cities receiving federal funds through the Community Development Block Grant Program, and is held for the purpose of public comment. He stated the final public hearing is scheduled for May 1, 2001, at which time the City Council will consider all input received to date and adopt the final draft according to recommended modifications; after which the Plan must be submitted to the federal government by May 15, 2001. He stressed the importance of the City of San José continuing to focus on accomplishing the goal of building 6,000 new affordable homes – not housing units – for low income households by 2004, or building fewer homes that serve fewer families who are among extremely low income households – the trade-offs are severe for the City to contemplate. He stated the City Council has allocated an additional $24.9 million of Redevelopment Agency funds to assist ELI families with the possibility of an additional $10 million appropriated in FY 2001-2002 Budget. He urged the Director of Housing Alex Sanchez to bring back to Council a clear and concise analysis of the benefits and tradeoffs of the housing decisions made by the City Council and the impact of those decisions on the end product.

Director of Housing, Alex Sanchez, defined the Consolidated Plan as (1) a strategy for addressing housing and community development needs of the City’s community-at-large; (2) a federally required document and application for funding, which results in approximately $20 million to the City of San José; (3) a federally funded application to the Federal Department of Housing and Urban Development (HUD); and (4) an instrument which the federal government uses to evaluate the City’s performance. He stated the Plan components include housing and homeless needs, housing market analysis, a five-year strategic plan, an action plan, and a number of formal certifications required by HUD.

Deputy Director of Parks, Recreation and Neighborhood Services Margaret Cohen outlined the recommendations for CDBG funding, an allocation of approximately $16 million of entitlement and program income, which is part of a multi-year plan that includes two years of recommendations for service projects and three years for capital improvement projects. She stated the recommendation is the work of a citizen committee – Community Development Block Grant Steering Committee – which met over a period of four months, reviewed 105 proposals requesting in excess of $20 million in each of three years, and reviewed an evaluation prepared by the City Administration. She stated the Steering Committee endorsed the City Administration’s recommendation with one conditional approval: That the funding of services for Domestic Violence Survivors sponsored by Project WATCH be approved pending submission of additional documentation. She stated the City has received the documentation; therefore, the recommendation of the Steering Committee and City Administration is in agreement. She stated the Steering Committee made one additional recommendation that did not involve CDBG funds: That the City Council should identify other sources of funding for the City-owned building located at 6^th and Julian Streets, which currently houses a community program; because of CDBG funding restrictions, the Steering Committee was prohibited from recommending funding for the facility.

Approximately 30 individuals presented testimony on the Draft 2001-2001 Action Plan, including the following: Representing Santa Clara County Affordable Housing Network were Saul Wachter, Billie Wachter, Ron Johnson, and Phyllis Ward; representing Boys and Girls Club were Hilaria Bauer, Associate Principal Overfelt High School, Chris Tandy, Mary Corona, Kim Mesa, Aaron Stenson, Cassie Hunter, and Barbara Stewart; Darlene E. Krause, representing Grace Baptist Church; Anabel Ibanez, representing the South Bay AFL-CIO Labor Council; Betty Feldheym of Interfaith Council on Religion, Race, Economic and Social Justice; Gertrude Welch of The Council of Churches; representing Community Homeless Alliance Ministry (CHAM) were Cindy Jordan, Carrie Reyes, Eva Sandoval, Christy Wong, Alex Hernandez, Sandy Perry, James Clerk, Yolanda Engiles, and Dorothy Scott; representing A.C.O.R.N. were Yvonne Vasquez and Ezekiel Aguilar; Jonathan Keim of Local 393; Katherine Bock representing Low-Income Self-Help Center; and concerned citizens Katy Dawson and Mikeal O’Toole. Mayor Gonzales expressed appreciation to those individuals who have submitted their comments for Council consideration, and affirmed the City’s commitment to strive to meet the goal of 6,000 new homes; therefore, Staff should be diligent in bringing back a comprehensive analysis of the benefits and tradeoffs of these decisions and detail how these decisions will impact the outcome.

As CDBG Steering Committee Chair, Council Member Reed reviewed the supplemental information contained in his memorandum of March 30, 2001 regarding the 2001-2002 Draft Consolidated Plan Annual Action Plan and the community outreach process. He stated the Steering Committee discussed project ratings that were developed using Council adopted criteria and reviewed the Administration’s funding recommendations, some of which warranted additional explanations, such as requiring a condition on the $33,000 grant for a project sponsored by Women And Their Children’s Housing (WATCH) Program, reallocating $21,500 of the proposed funding to MACSA’s Youth Opportunities Unlimited Project, and recommending alternative funding sources for rehabilitation of City-owned property currently leased to the African American Community Services Agency (AACSA).

Referencing the Mayor’s request for a concise analysis, Council Member Chavez asked Staff to provide in one document the responses to the Mayor’s questions contained in memoranda discussing housing issues, and to include in the report information pertaining to the following: (1) Identify the amount of money in each category required to attain to the goal of 6,000 homes, within budget, and still move forward with the ELI category. (2) Explain in a comprehensive form how the 20% Fund is currently allocated among the categories spanning the remainder of the five-year period. (3) Provide additional information on the 55% funds already allocated to projects, by category, which have been identified by the Housing Department. (3) Identify in the Mayor’s Budget the $10 million dedicated to housing as referenced during the Staff presentation, and any additional resources that may impact individual unit cost. (4) Provide Council with information on the feasibility of developing a comprehensive housing plan and overriding housing strategy, outside of the ConPlan. (5) When the report is presented to Council in May 2001, include definitive information that validates the Housing Department as a lead agency for housing in the City of San José.

Council Member LeZotte stated each funding cycle should contain established targets to achieve or exceed, rather than reducing the number of housing units constructed, and that such a policy decision should be made by the City Council. Reflecting on the content of public testimony within the last several years and individuals’ needs for housing assistance, she suggested consideration be given to expanding the Rental Assistance Program to incorporate financial assistance provisions for individuals faced with eviction or exorbitant rent increases. Council Member Williams asked Staff to provide Council with data that would maximize the yield of the housing product for the City’s investment. Council Member Cortesé suggested the creation of a comprehensive housing plan that extends over the next five years, without the use of other funding sources in the General Plan to fund projects. He asked Staff to review in the context of the Five-Year Plan the requirements that would allow the City to achieve the 30% goal over the life of the Five-Year ConPlan; commit to the ELI category, and decide the roles of the City and the Redevelopment Agency in supplying housing during the next five years for ELI households.

Summarizing Council discussion for responses, Director of Housing Alex Sanchez stated Staff will submit a report to Council on or before May 1, 2001 that will include the following: (1) A breakdown of the percentage of funding already allocated to projects and the amount in each of the categories identified in the Housing Plan. (2) Explanation of how affordable housing funds are currently allocated among categories over the remainder of the five-year period. (3) Identifying the amount of money necessary in each category to reach the 6.036 units, and still provide ELI units. (4) Identifying in the Mayor’s Budget the $10 million committed to housing issues and identifying additional funding sources that may impact unit costs. (5) Projecting when results of current studies identified in the ConPlan or an integrated housing plan will be finalized and presented to the City Council. (6) Consideration of a comprehensive workplan for the Housing Department as a lead agency for housing. (7) Identifying advances from 20% funds and Federal HOME funds that have been used to provide additional support to ELI units. (8) Upon reviewing the City’s Rental Assistance Program, develop recommendations on how the City can expand the program to address current rental market activities, e.g., unjust evictions. (9) Determining how the City can reduce the cost of unit construction while increasing the number of units, thereby meeting the needs of ELI households.

Upon motion by Council Member Reed, seconded by Council Member Chavez and unanimously carried, the Administration to distribute to Council on or before May 1, 2001, integrated into one document, comprehensible analyses of the benefits and tradeoffs resulting from Council decision on the proposed Plan, including: (1) Housing types and cost by category to achieve the 6,036 units and the resources necessary to accomplish the goal and continue to move forward with the VLI category. (2) Comprehensive explanation of how the 20% is currently allocated among categories over the remainder of the five- year period. (3) Breakdown of the percentage of funding already allocated to projects and the amount in each of the categories identified in the Housing Plan. (4) Identify in the Mayor’s Budget the $10 million committed to housing issues, and identify additional funding sources that may impact unit costs. (5) At what time will results of current studies identified in the ConPlan or an integrated housing plan be finalized and presented to Council. (6) Consideration of a comprehensive workplan for the Housing Department as a lead agency for housing. (7) Identify advances from 20% funds and Federal Home funds that have been used to provide additional support to ELI units. (8) Review the City’s rental assistance program and develop recommendations on how the City can expand the program to address current rental market activities, e.g., unjust evictions. (9) Compile data on how the City can reduce the cost of unit construction while increasing the number of units, thereby meeting the needs of ELI households. (10) Results of an appraisal of the 30% goal in the context of the 5-year ConPlan. Mayor Gonzales admonished the housing advocates to deliver to other jurisdictions in the region similar messages for the development of affordable housing for ELI, VLI, moderate, and low-income households, and the Public Hearing was continued to May 8, 2001 for final action by the City Council.

PUBLIC HEARING

Items 11.4 and 11.5 heard together.

11.4 PUBLIC HEARING ON THE APPEAL OF THE DRAFT ENVIRONMENTAL IMPACT REPORT for a Planned Development Prezoning and Rezoning, to allow development of up to 2.227 million gross square feet of low intensity industrial uses consisting of communications facilities in warehouse style buildings, a Central Reliability Energy Center (CREC), landscaping, and an access driveway on 174.4 acres bordered by State Route 237 to the south, Coyote Creek and its adjacent flood control channel to the east, Water Pollution Control Plant (WPCP) buffer land and sludge ponds to the north, and WPCP buffer land and Zanker Road to the west. (Cilker, Lin & Hom, Owner; USDataport, Developer). Director of Planning, Building, and Code Enforcement and Planning Commission recommend approval (5-2-0).

PDC 00-06-048 - District 4

11.5 PUBLIC HEARING ON PLANNED DEVELOPMENT PREZONING AND REZONING of the property located on the north side of State Route 237, between Zanker Road and Coyote Creek, on a 174.4 gross acre site in the LI Light Industrial and A20 (County) Zoning Districts, to allow the development of up to 2.227 million gross square feet of low intensity industrial uses consisting of communications facilities in warehouse style buildings, a Central Reliability Energy Center (CREC), landscaping, and an access driveway. (Cilker, Lin & Hom, Owner; USDataport, Developer). CEQA: Resolution No. 70259. Director of Planning, Building and Code Enforcement and Planning Commission recommend approval (4-3-0).

PDCSH 00-06-048 - District 4

(Continued from 3/20/01 – Item 11.13)

Documents Filed: (1) Memorandum from Mayor Gonzales and Council Member Reed, dated April 2, 2001, recommending Council approve the US DataPort project as proposed, but with the conditions outlined in this memorandum. (2) Memorandum from Council Member LeZotte, dated April 2, 2001, recommending Council deny the US DataPort project for the reasons stated therein. (3) Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated March 23, 2001, recommending Council uphold the Planning Commission’s certification of the US DataPort Project Final Environmental Impact Report as completed in compliance with the California Environmental Quality Act (CEQA). (4) Transmittal memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated March 9, 2001, submitting for Council review the report on final responses to the development application as back-up documentation to PDCSH 00-06-048. (5) Memorandum from Planning Commission Secretary James R. Derryberry, dated March 23, 2001, stating the Planning Commission voted 4-3-0 to recommend that the City Council adopt an ordinance approving the subject planned development rezoning revised to reflect Open Space Alternative in the Environmental Impact Report with several additional conditions. (6) Public Hearing Notice to consider a change in Zoning for (a) PDC 00-06-048, Draft Environmental Impact Report, and (b) PDCSH 00-06-0487, Planned Development Prezoning and Rezoning, dated February 22, 2001, and Proof of Publication executed on March 2, 2001, submitted by the City Clerk. (7) Correspondence from US DataPort, dated April 3, 2001, supporting the recommendations of Mayor Gonzales and Council Member Reed, and disagreeing with conclusions contained in memorandum from Council Member LeZotte; from Santa Clara Valley Audubon Society, dated April 3, 2001, conveying concerns/recommendations regarding the proposed US DataPort facility project in Alviso; from Santa Clara & San Benito Counties Building & Construction Trades Council, dated March 30, 2001, supporting the US DataPort project on behalf of trade membership; and electronic mail from concerned citizens expressing their opinions regarding the US DataPort project.

Discussion/Action: Mayor Gonzales opened the public hearings on the appeal of the Draft Environmental Impact Report for the planned development prezoning and rezoning and the planned development prezoning and rezoning of the subject property. Director of Planning, Building and Code Enforcement, James R. Derryberry, presented a comprehensive overview of the actions related to the developments, starting with the Planning Commission’s certification of the Final EIR, and detailing mitigation measures that address the negative impacts of the project. He stated the primary issues that were the subject of the appeal received from the Santa Clara Valley Audubon Society involved air quality impacts and the use of biodiesel fuel for the proposed DataPort development and the loss of burrowing owl habitat. He stated the Planning Commission was advised at a public hearing on March 14, 2001 that the project would be conditioned at the PD Permit stage to use only low sulfur fuel with the installation of appropriate traps for the diesel generators to reduce the impacts to air quality, and that at each phase of construction the applicant will pursue the use of alternative power-generating technologies available. Because the project will have significant unavoidable impacts, he stated the City Council is required to adopt a statement of overriding considerations as part of the Resolution of EIR findings explaining how the benefits of the project outweigh the impacts. Predicated on extensive review and analysis of the project and the impacts, he recommended Council certify the Final EIR as complete and in compliance with the California Environmental Quality Act (CEQA).

With regard to the rezoning, he stated the proposed project is located within an area designated for light industrial use, and is consistent with the General Plan and the Alviso Master Plan. Her stated Planning Staff and Planning Commission recommend approval with specific conditions. Grant Sedgewick, President and CEO of USDataPort spoke in support of the proposal and its positive affect on the San José economy. The following individuals spoke in support of the proposal: Cheryl Jackson, Carpenters Local 405; Larry Gates, Santa Clara Valley Contractors Association; Amy B. Dean, CEO, South Bay AFL-CIO Labor Council; Jonathan Keim, Plumbers Local 393; Richard P. Santos; Shawn Santos; Vern Santos; Josue Garcia, Roofers Union Local #95; Tom Sorley, Rosendin Electric; Lurdes Rivera-Murphy; Jeff Hoffman, Cornish & Carey; Jill O’Bryan; Richard Yates, ACCO – Union Contractor; and Lindsay Fowler. The following individuals spoke in opposition to the proposed development: Lilyann Brannon; Kathy Girvan; Bryan Stephenson; Craig K. Breon, Executive Director, and Jennifer Peritz, Santa Clara Valley Audubon Society; and William J. Garbett. Speaking to various aspects of the issues were Michael Stanley-Jones, representing the Silicon Valley Toxics Coalition; Ken Hoag, Operating Engineers Local #3; Lloyd Williams, Plumbers Fitters Union #393; and John Beall.

Noting opposition to the project, Council Member LeZotte stated the power plant and diesel generators would be an environmental disaster to the residents of Alviso, which Council did not visit upon the residents adjacent to Coyote Valley in denying Metcalf. She stated the project continues to evolve from its initial proposal; therefore, the EIR is inadequate. With emphasis on a preference for a better project, she recommended Council deny the US DataPort project for the following reasons: (1) That the City cannot make the necessary findings to support the “overriding considerations” necessary to certify the Environmental Impact Report. (2) The Environmental Impact Report has not analyzed the project that will be built. (3) The granting of entitlements to this project would permit 84-89 diesel generators to operate 50 hours per year at this site without staff resources to enforce the permit. (4) The EIR failed to address the cumulative effects of separate projects that are cumulatively considerable and presents issues of environmental justice and the responsible user of technology. (5) The project does not set aside 30.11 percent of the total gross project area for open space and Burrowing Owl Habitat. (6) The City is subsidizing the use of recycled water by not requiring the project to desalinate the effluent water from the project.

Council Member Reed recommended Council approve the US DataPort project as proposed, but with conditions related to (1) energy and environment, (2) back-up power, (3) open space and burrowing owl habitat, (4) recycled water, (5) noise, (6) lights, (7) community contributions, (8) Coyote Creek enhancements, (9) employment limitation on “buffer lands”, (10) entrance road, and (11) development agreement. Based on the entire record of the proceedings, he recommended Council uphold the certification of the Environmental Impact Report as complete and in conformance with CEQA, approve the project, and adopt the following statement of overriding considerations: “The EIR identified that projects impacts to open space, agricultural land, traffic, air quality, noise, visual and aesthetic quality, vegetation and wildlife, geology, hazardous materials, utilities and service systems and cumulative impacts to agricultural land, burrowing owl habitat, regional air quality, agricultural and ruderal habitats, visual resources, utilities and service systems, all as significant and unavoidable. This project has eliminated or substantially lessened all significant impacts on the environment where feasible and the remaining significant unavoidable impacts of the project are acceptable in light of the substantial benefits of the project. The project will generate substantial revenues to the City and promote economic development in the area ranging from construction to high-tech jobs through a division of reliable and stable Internet campus. The project will invest in public streets and provide bicycle and pedestrian linkage to the Bay Trail, consistent with planned trails along Bay Trail and Coyote Creek to Logus Creek Trail. The project also will incorporate post-construction treatment control measures consistent with the City’s Runoff Management Policy. The project conforms to the City’s adopted General Plan and furthers a sustainable City and balanced community by developing land already designated for industrial uses. The project also conforms to the Alviso Master Plan, the City’s Wireless Communications Facilities Polices, and the City’s Recurring Corridor Policies study. As planned, the project will also provide some environmental benefits, will protect wildlife using Coyote Creek by improving approximately 35 acres of open space for wet lands, use recycled water in its cooling towers for landscaping, and will maintain a 100-foot riparian corridor setback. The project also provides for mitigation measures to protect the burrowing owls’ nesting rafters, bat species and aquatic habitat in Coyote Creek, and also conforms to the City’s Green Building Guidelines. Finally, the project is a low-intensity industrial use that complies with the Santa Clara County Congestion Management Plan, and meets the Bay Area Air Quality Management District Standards for local air quality by adopting the best available control technology. All of these benefits outweigh the significant and unavoidable environmental risks and impacts of the project identified in the EIR”. Upon motion by Council Member Reed, seconded by Vice Mayor Shirakawa, Jr. and carried, the public hearings were closed, the appeal of the Draft Environmental Impact Report was denied, the Planning Commission recommendations approved, and Resolution No. 70259, entitled: “A Resolution of the Council of the City of San José Making Certain Findings Concerning Mitigation Measures, Adopting a Mitigation Monitoring and Reporting Program, Making Findings Concerning Alternatives and Adopting a Statement of Overriding Considerations in Accordance With the California Environmental Quality Act for the U.S. Data Port Project for Which an Environmental Impact Report Has Been Prepared”, was adopted; and Ordinance No. 26343, entitled: “Ordinance of the City of San José Prezoning and Rezoning Certain Real Property Situated on the North Side of State Route 237, Between Zanker Road and Coyote Creek”, was passed for publication. Vote: 10-1-0-0. Noes: LeZotte.

OPEN FORUM

(1) Lilyann Brannon submitted for the public record a letter requesting that Council place on a future agenda for consideration the expansion of West Valley Branch Library.

(2) Art Maurice and Bryan Stephenson spoke on various issues.

(3) William J. Garbett spoke on the missing EIR for Item 11.4.

Mayor Gonzales presented to Mr. Garbett a copy of the Environmental Impact Report.

ADJOURNMENT

The Council of the City of San José adjourned at 11:30 p.m.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK