Council Meeting Minutes, 5-8-01

MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, MAY 8, 2001

The Council of the City of San José convened in regular session at 9:30 a.m. in City Council Chambers at City Hall.

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

Absent: Council Members - Chavez (excused).

Upon motion unanimously adopted, Council recessed at 9:35 a.m. to a Closed Session in Room 600 to confer with Legal Counsel pursuant to Government Code Section 54956.9; under Subsection (a) to discuss existing litigation in the cases of (1) City of San José v. Sebastian; and (2) Asmelash v. City of San José; to discuss anticipated litigation pursuant to Subsection (b) of Government Code Section 54956.9, in one matter involving the initiation of litigation; to conduct public employee performance evaluation pursuant to Government Code Section 54957 for the title of Independent Police Auditor; and confer with Labor Negotiator Pursuant to Government Code 54957.6: City Negotiator: City Manager designee Alex Gurza; Employee Organization: Operating Engineers, Local 3.

By unanimous consent, Council reconvened from the Closed Session and recessed at 11:20 a.m. and reconvened at 1:37 p.m. in the Council Chambers.

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

Absent: Council Members - Chavez (excused).

Invocation (District 5)

Pastor Matt Munoz, Mount Pleasant Christian Center, delivered the Invocation.

Pledge of Allegiance

Mayor Gonzales led 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 and the Amended Agenda were approved. Vote: 10-0-1-0. Absent: Chavez.

CEREMONIAL ITEMS

1.1 Presentation of proclamations to History Museum of San José, Connie Young Yu, and Chinese Historical and Cultural Project for their efforts of preserving and sharing San José Chinese-American cultural heritage, and receipt of copies of Chinatown San José, USA by Connie Young Yu by the City Council. (History Museum of San José)

Documents filed: None.

Discussion/Action: Mayor Gonzales was joined at the podium by David Crosson, President and CEO of History Museum of San José for presentation of proclamations to Connie Young Yu, author of Chinatown San José USA, and Chinese Historical and Cultural Project members, Lillian Gong-Guy and Gerrye Wong, founders, and Nicol Lea, current president, for their work in preserving the cultural heritage of the San José Chinese-American community.

1.2 Presentation of a Distinguished School Award to Rolling Hills Middle School will be accepted by Principal, Nancy Atkinson and Campbell Union School District Superintendent, Johanna Vandermolen. (LeZotte)

Documents filed: None.

Discussion/Action: Joining Mayor Gonzales at the podium was Council Member Linda LeZotte, for presentation of a Distinguished School Award to Rolling Hills Middle School. The award was accepted by Principal Nancy Atkinson and Johanna Vandermolen, Superintendent of the Campbell Union School District

1.3 Presentation of awards by CalFest, the Professional Festivals and Events Association of California and Nevada, to the City of San José Holiday Parade. (Parks, Recreation and Neighborhood Services)

Documents filed: None.

Discussion/Action: This item was deferred to June 5, 2001.

1.4 Presentation of a commendation to Mr. Robert Porcari for his courage and heroic acts in trying to prevent a homicide in-progress on September 13, 1997, by calling the San Jose emergency call center, even at immediate risk to his own safety. (Yeager) (Rules Committee referral 5/2/01)

Documents filed: None.

Discussion/Action: Mayor Gonzales was joined by Council Members Ken Yeager and Dave Cortese for presentation of a commendation to Robert Porcari for heroic actions in efforts to prevent a homicide in progress in September of 1997.

CONSENT CALENDAR

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

2.1 Approval of City Council Minutes for:

(a) Convocation – State of the City meeting of February 17, 2000

(b) Convocation – State of the City meeting of February 1, 2001

(d) Regular meeting of February 13, 2001

(e) Joint City Council/Redevelopment Agency/Financing Authority meeting of February 13, 2001

(City Clerk’s Office)

Documents filed: The Minutes of the State of the City meetings of February 17, 2000, and February 1, 2001; City Council minutes of February 6, and 13, 2001, and Joint Council/Redevelopment/Financing Authority minutes of February 13, 2001.

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

2.2 Final adoption of ordinance:

(a) ORD. NO. 26352 –- Rezones certain real property situated at the southeast corner of East Julian and North 13^th Streets. C 01-03-047

Documents filed: Proof of publication of title of Ordinance No. 26352, executed May 1, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26352 was adopted. Vote: 10-0-1-0. Absent: Chavez.

2.3 Approval of the sixth amendment to Operating Agreement and Terminal Building Lease with Compania Mexicana de Aviacion, S. A. de C.V. (Mexicana Airlines) extending the term from February 1, 2002 through November 30, 2007, and adding approximately 201 square feet of operations space, with projected annual revenue to the City of $242,000. CEQA: Resolution No. 67380. (Airport)

Documents filed: None.

Discussion/Action: Council Member Yeager stated he is concerned about the number of curfew violations by Mexicana Airlines, and Mexicana has not signed a written agreement to comply with the City’s curfew ordinance as requested of all airlines based at San José International Airport. He requested the issue be deferred and Staff directed to report to Council on what Mexicana has done to improve performance relative to the curfew violations. Upon motion by Council Member Yeager, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, this item was deferred to May 22, 2001. Vote: 10-0-1-0. Absent: Chavez.

2.4 (a) Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with Shannon Associates for senior executive staff recruitment, in an amount not to exceed $120,000.

(b) Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with Oldani Group, Inc. for senior executive staff recruitment, in an amount not to exceed $120,000.

(City Manager’s Office)

Documents filed: Memoranda from City Manager, Del D. Borgsdorf, both dated April 18, 2001, recommending adoption of said resolutions.

Discussion/Action: Resolution No. 70328, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement with Shannon Associates for Senior Staff Recruitment in an Amount Not to Exceed $120,000”; and Resolution No. 70329, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement with Oldani Group, Inc., for Senior Staff Recruitment in an Amount Not to Exceed $120,000”, were adopted. Vote: 10-0-1-0. Absent: Chavez.

2.5 Authorization for the City Manager to travel to attend the Partners for Livable Communities Creative Cities: Power for the New Economy and Board of Trustees Meetings Conference in Washington, D.C. from May 23 through May 24, 2001. (City Manager’s Office)

Documents filed: Memorandum from City Manager, Del D. Borgsdorf, dated April 24, 2001, requesting authorization for said travel to Washington, D.C.

Discussion/Action: The travel for City Manager, Del D. Borgsdorf from May 23-24, 2001 to Washington, D.C. was approved. Vote: 10-0-1-0. Absent: Chavez.

2.6 Acceptance of the 2001 Public Art Workplan First Quarter Report. (Conventions, Arts and Entertainment)

Documents filed: Memorandum from Nancy Johnson, Director, Conventions, Arts and Entertainment, dated April 18, 2001, transmitting said report.

Discussion/Action: The 2001 Public Art Workplan First Quarter Report was accepted. Vote: 10-0-1-0. Absent: Chavez.

2.7 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2000-2001 #41, and authorization for the Director of General Services to execute the purchase orders. (General Services)

Documents filed: Memorandum from Acting Director of General Services, Francis B. McVey, dated April 18, 2001, recommending approval of said open purchase orders.

Discussion/Action: The award of open purchase orders List No. 41 was approved and the Acting Director of General Services authorized to execute the purchase orders. Vote: 10-0-1-0. Absent: Chavez.

2.8 Approval of the option to purchase additional Police training weapons and ammunition from L. C. Action Police Supply, for a total cost of $33,203, including tax, and authorization for the Director of General Services to execute the purchase order. (General Services)

Documents filed: Memorandum from Acting Director of General Services, Francis B. McVey, dated April 18, 2001, recommending approval of said option to purchase additional Police training weapons and ammunition.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. The option to purchase additional training weapons and ammunition from L. C. Action Police Supply was approved. Vote: 10-0-1-0. Absent: Chavez.

2.9 Adoption of a resolution accepting donations from the San José Public Library Foundation, in an amount not to exceed $199,000, for the period July 1, 2001 to June 30, 2002. (Library)

Documents filed: Memorandum from City Librarian Jane Light, dated April 18, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70330, entitled: “A Resolution of the Council of the City of San José Authorizing Acceptance of Donations from the San José Public Library Foundation in an Amount Not to Exceed $199,000 for the Period of July 1, 2001 through June 30, 2002’, was adopted. Vote: 10-0-1-0. Absent: Chavez.

2.10 Adoption of a resolution authorizing the reorganization of territory designated as Alum Rock No. 14, which involves the annexation to the City of San José of 0.51 acre of land, located on the north side of Alum Rock Avenue, approximately 150 feet easterly of Pala Avenue, and detachment of the same from the Central Fire Protection District, County Library Services Area No. 1, and County Lighting Services. CEQA: Exempt. Council District 5. (Planning, Building and Code Enforcement)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated April 19, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70331, entitled: “Resolution of the Council of the City of San José Ordering the Reorganization of Certain Uninhabited Territory Designated as Alum Rock No. 14 Subject to Liability for General Indebtedness of the City”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

2.11 Adoption of a resolution authorizing the reorganization of territory designated as McKee No. 117 (an approved annexation), which involves 0.75 acre of land, located at the northwest corner of Kirk Avenue and Madeline Drive, and detachment of the same from the County Lighting District, and reaffirms the approval of the reorganization of this territory as set forth in Resolution No. 69238, adopted by the City Council on December 7, 1999. CEQA: Exempt. Council District 5. (Planning, Building and Code Enforcement)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated April 19, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70332, entitled: “Resolution of the Council of the City of San José Ordering the Reorganization of Certain Uninhabited Territory Designated as McKee No. 117 Subject to Liability for General Indebtedness of the City”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

2.12 Adoption of amendments to the annual appropriation ordinance and funding sources resolution in the General Fund for expenses related to P.O.S.T.-reimbursed Training Programs, in the amount of $36,398. (Police/City Manager’s Office)

Documents filed: Memorandum from Chief of Police, William M. Lansdowne and Budget Director Larry D. Lisenbee, dated April 18, 2001, recommending adoption of said resolution.

Discussion/Action: Ordinance No. 26358, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26141 to Appropriate Moneys in the General Fund in the Amount of $36,398 for Expenses Related to P.O.S.T.-Reimbursed Training Programs; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, and Resolution No. 70333, 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: 10-0-1-0. Absent: Chavez.

2.13 Adoption of a resolution of intention to vacate a portion of Skyway Drive north of Houndshaven Way and setting a public hearing on June 5, 2001 at 1:30 p.m. CEQA: Resolution No. 65245. Council District 2. (Public Works)

Documents filed: None.

Discussion/Action: This item was deferred to May 15, 2001.

2.14 Approval of a five-year property use agreement, with one five-year option, with Sprint PCS, allowing for the construction, installation, maintenance, and operation of telecommunications facilities at 1661 and 2077 Airport Boulevard, at an annual base rent of $60,000 plus $55 per square foot per year for floor and shelf space, with yearly increases in base and square foot charges at the greater of 4% or the rise in the Consumer Price Index. CEQA: Exempt. Council District 3. (Public Works)

Documents filed: None.

Discussion/Action: This item was deferred to May 15, 2001.

2.15 Report on bids and award of contract for the Willow Street Sanitary Pump Station and Force Main (MRP 97-6) Project to the low bidder, Reggie Hughley Excavating, Inc., in the amount of $284,915, and approval of a contingency in the amount of $28,500. CEQA: Exempt. Council District 6. (Public Works)

Documents filed: Memoranda from Acting Director of Public Works, Rajeev Batra, dated April 18 and May 1, 2001, recommending award of said contract to the low bidder, Reggie Hughley Excavating, Inc.

Discussion/Action: The award of said contract and related contingency to the low bidder, Reggie Hughley Excavating, Inc. were approved. Vote: 10-0-1-0. Absent: Chavez.

2.16 Approval of Contract Change Order No. 11 with RGW Construction, Inc., for the construction of Silicon Valley Boulevard Bridge Phase II Project, in the amount of $56,013.23, for a total contract amount of $2,029,073.96, and no change in the contract term. CEQA: Resolution No. 65660. Council District 2. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated April 18, 2001, recommending approval of Contract Change Order No. 11 with RGW Construction, Inc.

Discussion/Action: Contract Change Order No. 11 with RGW Construction, Inc. was approved and its execution authorized. Vote: 10-0-1-0. Absent: Chavez.

2.17 Report on bids and award of contract for the West Virginia Street Alley Improvement, a CDBG funded project, to the low bidder, Grade Tech Inc., in the amount of $135,940, and approval of a contingency in the amount of $14,000. CEQA: Exempt. Council District 3. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated April 18, 2001, recommending award of said contract to the low bidder, Grade Tech Inc.

Discussion/Action The award of said contract and related contingency to low bidder, Grade Tech Inc. was approved and its execution authorized. Vote: 10-0-1-0. Absent: Chavez.

2.18 Adoption of a resolution approving an exception to the City Street Light Policy #4-2 to allow the use of high-pressure sodium (HPS) lighting for the Hensley Historic District Pedestrian Streetlight Project within the boundaries of North Second, East Empire, North Sixth, and East Julian Streets. CEQA: Exempt. Council District 3. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated May 2, 2001, recommending adoption of said resolution.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Council Member LeZotte expressed concern about granting an exception to the Street Lighting Policy for the Hensley Historic District which is not downtown. However, she stated she could support moving ahead with the bid process contingent upon Staff securing written concurrence from Lick Observatory, but should Lick object, the issue would come back for Council’s decision. Upon motion by Council Member LeZotte, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Council approved the exception to the City Street Lighting Policy #4-2, contin-gent upon written concurrence from Lick Observatory and Resolution No. 70334, entitled: “A Resolution of the Council of the City of San José Approving an Exception to City Street Light Policy #4-2 to Allow the Use of High-Pressure Sodium Lighting for the Hensley Historic District Pedestrian Street Light Project Within the Boundaries of North Second, East Empire, North Sixth, and East Julian Streets”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

2.19 Approval of an agreement with Sound Technology Consultants, Inc., for consultant services including design engineering and construction support for the San José McEnery Convention Center Sound System Renovation Project, for the period April 2, 2001 to September 30, 2003, in the amount of $184,000. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated April 18, 2001, recommending approval of said agreement with Sound Technology Consultants, Inc.

Discussion/Action: The agreement with Sound Technology Consultants, Inc. was approved and its execution authorized. Vote: 10-0-1-0. Absent: Chavez.

2.20 Acceptance of the First Quarter 2001 San José Arena Authority Ticket Distribution Program Report. (San José Arena Authority)

Documents filed: Memorandum from San José Arena Authority, dated April 18, 2001, transmitting the First Quarter 2001 San José Arena Authority Ticket Distribution Program Report.

Discussion/Action: The First Quarter 2001 San José Arena Authority Ticket Distribution Program Report was accepted. Vote: 10-0-1-0. Absent: Chavez.

2.21 TRACT NO. 9276 - North side of Tradewinds Drive, approximately 620 feet east of Snell Avenue - Tradewinds Associates, LLC; A California Limited Liability Company (Developer) - one lot Condominium Map, containing 24 units, single-family attached residential units. Adoption of a resolution approving the final map for Tract No. 9276. CEQA: Negative Declaration. Council District 2. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated April 18, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70335, entitled: “A Resolution of the Council of the City of San José Approving and Accepting the Final Map of Tract No. 9276”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

END OF CONSENT CALENDAR

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – April 25, 2001

Vice Mayor Shirakawa, Jr., Chair

Documents filed: Rules Committee report of April 25, 2001.

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

(b) City Council

(1) Review May 8, 2001 Draft Agenda

The Committee approved the May 8, 2001 Redevelopment Agency Agenda.

(2) Add New Items to May 1, 2001 Amended Agenda

The Committee recommended five additions to the May 1, 2001 City Council Agenda.

(1) Amendments to Council Committee Agendas

(a) Finance and Infrastructure Committee

None filed.

(b) Economic Development and Environment Committee

None filed.

The Committee referred an item from the City Attorney to the May 21, 2001 Education, Neighborhoods, Youth and Seniors Com-mittee meeting regarding “amending the Municipal Code definition of blighted property to add inadequately maintained landscaping for two-family and multiple-family dwellings and to make other clarifying changes and updates to the definition of blighted property.”

(d) Ad Hoc Traffic Calming Advisory Committee

None filed.

(d) Meeting Schedules. Attachment: Memorandum from Assistant to the City Manager Deanna Santana, dated April 24, 2001, requesting a General Plan Hearing.

The Committee recommended approval for a General Plan Hearing on May 15, 2001 at 7:00 p.m. to hear a proposed amendment for a 2.7-acre site located at the southeast corner of Fruitvale Avenue and Southwest Expressway.

(e) The Public Record. Attachment: (1) Memorandum from City Clerk Patricia L. O’Hearn, dated April 17, 2001, listing the items transmitted to the Administration and those items filed for the Public Record for the period April 11-17, 2001.

The Committee noted and filed the Public Record.

(f) Boards, Commissions and Committees

None filed.

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

None filed.

(h) Administrative Reviews and Approval

None presented.

(i) Oral communications

None presented.

(j) Adjournment

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

Discussion/Action: Upon motion by Council Member Yeager, seconded by Council Member Reed, and unanimously carried, the Rules Committee report and actions of April 25, 2001, were accepted. Vote: 10-0-1-0. Absent: Chavez.

3.3 Report of the Finance and Infrastructure Committee – April 25, 2001

Council Member Dando, Chair

Documents filed: Finance and Infrastructure Committee report of April 25, 2001.

(a) Monthly Financial Statement for March 2001

(b) Capital Cost Report for March 2001

(d) Tax Increment Forecast

Items (a) through (d) heard by the Redevelopment Agency.

(e) March Monthly Report. Attachment: Letter from City Auditor Gerald A. Silva, dated April 18, 2001, transmitting the March Activity Report for the Office of City Auditor.

The Committee accepted the Staff report with the direction that Staff attempt to adjust the Budget Hearing and Finance & Infrastructure Committee schedules to accommodate the timeline for the Watershed Protection Division-Source Control Audit.

(f) An Audit of the City of San José Fire Department Overtime Expenditures. Attachment: Report entitled, An Audit of the City of San José Fire Department’s Overtime Expenditures, dated April 2001.

The Committee accepted the Staff report.

(g) Financing Schedule for Issuance of General Obligation Bonds for Parks and Libraries. Attachment: Memorandum from Finance Director Scott P. Johnson, dated April 16, 2001, recommending approval of the Plan of Finance for issuance of Series 2001 General Obligations bonds for parks and libraries and authorize a guaranteed investment agreement for Series 2001 GO Bonds.

The Committee accepted the Staff report.

(h) Oral petitions

None presented.

(i) Adjournment

The meeting was adjourned at 5:00 p.m.

Discussion/Action: Upon motion by Council Member Dando, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the Finance and Infrastructure Committee report and actions of April 25, 2001 were accepted. Vote: 10-0-1-0. Absent: Chavez.

3.5 Agenda Number not used.

3.6 Adoption of a resolution approving the terms of a Memorandum of Agreement between the City of San José and the International Union of Operating Engineers, Local No. 3, subject to ratification and authorizing the City Manager to execute the agreement with a term of May 3, 2001 through April 16, 2004. (City Manager’s Office)

(Orders of the Day)

Documents filed: Memorandum from Alex Gurza, Director of Employee Relations, dated May 4, 2001, recommending adoption of said resolution.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Dando, and unanimously carried, Resolution No. 70336, entitled: “A Resolution of the Council of the City of San José Approving a Memorandum of Agreement with the International Union of Operating Engineers, Local No. 3 (OE#3) Subject to Ratification by the OE#3 Membership”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.2 (a) Approval of the 2001-2002 Federal Consolidated Annual Action Plan, as amended.

(b) Authorization for the Director of Housing to submit the approved document with the required certifications and other related documents to the US Department of Housing and Urban Development no later than May 15, 2001.

(c) Approval of the Community Development Block Grant Steering Committee’s recommendation on funding in the Contractual Community Services and Community Development Improvement categories of the CDBG program as outlined in the Consolidated Plan.

(d) Approval of staff's recommendation for the allocation of funds for the Housing Opportunities for People with AIDS (HOPWA) Program, the HOME Program, and the Emergency Shelter Grant (ESG) Program.

(e) Authorization for the Director of Housing to execute all documents on behalf of the City for the HOME, ESG, and HOPWA Programs; and

(f) Authorization for the Director of Parks, Recreation and Neighborhood Services to execute all documents on behalf of the City for the CDBG Program.

(Housing/Parks, Recreation and Neighborhood Services)

Documents filed: (1) Memorandum from Acting Director of Housing, Leslye Corsiglia, and Mark Linder, Director of Parks, Recreation and Neighborhood Services, dated April 18, 2001, recommending approval of the 2001-2002 Consolidated Annual Action Plan, as amended; authorizing the Director of Housing to submit the approved document with the required certifications and other related documents to the US Department of Housing and Urban Development (HUD) no later than the deadline of May 15, 2001; and making recommendations pertaining to the Community Development Block Grant, the Housing Opportunities for People with Aids (HOPWA), the HOME, and the Shelter Grant (ESG) Programs. (2) Memorandum from Mayor Gonzales, Vice-Mayor Shirakawa, Jr., and Council Members Campos, Cortese and Reed, dated May 8, 2001, recommending Council direct the City Manager and Redevelopment Agency to create an Extremely Low-Income (ELI) Housing Reserve Fund equal to 30% of next year’s anticipated affordable housing expenditures, with annual review by Council to determine future allocations. (3) Correspondence from the Council of Churches of Santa Clara County, dated May 7, 2001; from Service Workers Local 7l5, dated May 4, 2001; Service Workers 535, dated April 27, 2001; from the Amalgamated Transit Union Local 265, dated April 26, 2001, and from the San José Housing Advisory Commission, dated April 30, 2001, expressing support for the creation of an Extremely Low Income category for affordable housing funds.

Discussion/Action: Mayor Gonzales stated the housing crisis affects the City of San José and entire region and the concerns voiced at many public hearings are based on the common theme of helping as many San José families as possible find affordable homes. While not an easy challenge, he stated the City has and will continue to pursue broad-based responses, balanced for families of all income levels. He stated San José is already doing more than any city in the region, using Redevelopment Agency funds, aided by federal and state funding, in partnership with the private sector. Rather than shifting funds from the very low income category (VLI) to an extremely low income level (ELI), he believes San José must maintain its current commitment to build 6,000 new affordable homes by 2004, increasing the ELI allocation from $13 million to $26 million, and meet its obligation to serve those in the greatest need by allocating an additional $24.9 million of Redevelopment Agency funds to create a reserve fund for extremely low income housing opportunities equal to 30% of next year’s anticipated affordable housing expenditures. He stated under current policy the 30% housing fund has been allocated 60% very low income, 25% low income, and 15% moderate income, and this proposal would reallocate the funds to 30% extremely low income, 30% very low income, 25% low income, and 15% moderate income levels. He recommended a one-year expenditure to be reviewed annually, with the City aggressively recruiting developers and non-profit organizations to create homes in this income bracket. To accomplish the goal, he stated all participants will need to work to identify and support affordable housing projects throughout the City. Council Member Williams stated as the Chair of the Economic Development & Environment Committee, he is aware of the need for housing and for meeting the current goal to create 6,000 new units by 2004, and does not want anything to interfere with meeting that goal. He stressed the importance of delivering on commitments the City makes and streamlining the process in order to encourage developers to partner with the City on these goals.

Mayor Gonzales opened the public hearing and the following individuals spoke on this issue: Phyllis Ward, Affordable Housing Network, Betty Feldheym, Interfaith Council on Religion, Race, Economic and Social Justice, Darline Krause, Grace Baptist Church, Richard Hobbs, Immigrant Action Network, William J. Garbett, Blair Thedinger, Santa Clara Community Action Program, Kari Johnson, San José City College; Cindy Jordan, Valerit Vallejas, Debbie Aguilar, Sandy Perry, all with CHAM; Robert Lee Hames, Yolanda Engiles, Community Homeless Alliance Ministry, Katherine Bock and Francella Stevens, Low Income Self Help Center, Connie Hunter, Council of Churches of Santa Clara County, Annabel Ibanez, SBLC, Lynn Rose, Candy Castro and John Eller from ACORN, Kristie Kesel, Housing for Independent People, Inc., and Jane L. Hermann, SEIU Local 715 Retirees,

Vice Mayor Shirakawa, Jr. thanked those involved in the process and in recognition of the importance of locating appropriate sites for low income housing, suggested each Council Member identify two sites in their district, that the process begin with those districts which currently have no low income housing, and moved approval of Recommendations 1-6 in the Staff memorandum dated April 18, 2001, and approval of recommendations dated May 8, 2001, by Mayor Gonzales, Vice Mayor Shirakawa, Jr., and Council Members Campos, Cortese and Reed. Council Member Diquisto seconded the motion. Council Member LeZotte stated she is disappointed in Staff’s response, that to expand the City’s rental assistance program would be too costly, and reiterated her request that Staff explore what other programs are available and report back with recommendations and a timeline. Council Member Cortese stated the needs are greater than San José alone can address and efforts at the County, State and Federal government levels are needed, and expressed concerns about housing needs among public employees, and suggested review of the City’s role in the issue of public employee housing in future Consolidated Plan discussions. On a call for the question, Council approved Staff recommendations dated April 18, 2001, and the recom-mendations dated 5/8/01 from Mayor Gonzales, Vice Mayor Shirakawa, Jr., and Council Members Campos, Cortese and Reed. Staff was directed to review the housing issues of rental assistance, unjust evictions, and ways of addressing impediments to fair housing, and review the feasibility of additional housing assistance programs for public employees. Vote: 10-0-1-0. Absent: Chavez.

4.3 Approval of an ordinance to regulate window tinting for businesses whose primary activity involves the service of non-alcoholic beverages for on-site consumption. (Planning, Building, and Code Enforcement/Police)

(Rules Committee referral 5/2/01)

Documents filed: (1) Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, and Chief of Police William M. Lansdowne, dated April 30, 2001, recommending approval of said ordinance. (2) Memorandum from Mayor Gonzales, Vice Mayor Shirakawa, Jr., and Council Member Campos, dated May 1, 2001, recommending Council adopt said ordinance.

Discussion/Action: Steve Emslie, Deputy director for Code Enforcement, presented the Staff recommendation to approve an ordinance to ensure tinted windows meet visibility requirements for businesses whose primary activity involves the service of non-alcoholic beverages, and to address tinting that prevents security or threatens officer safety. He stated the recommendation follows health and safety concerns expressed by police officers, community members and Council offices, and was approved by the CAFÉ Task Force, a multi-departmental group comprised of the Offices of the Mayor, Council, City Manager and City Attorney, as well as Police, Fire, Finance, and Department of Planning, Building and Code Enforcement. He stated the ordinance would not apply to restaurants and bona fide eating establishments, nor to any other commercial or retail business. Council Member Williams stated the ordinance will produce a measurable result and requested Staff report back with data on its effectiveness. Vice Mayor Shirakawa, Jr. stated the ordinance will address serious crime problems in his district. He stated there is no intention to affect legitimate businesses but it will be a good tool to address those businesses which are not legitimate, and moved approval of the Staff recommendation. The following individuals spoke in support of this proposal: Buu Thai, Catholic Charities, Huey Nguyen, California Youth Outreach, and Brandon Nguyen. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Dando, and unanimously carried, Staff was directed to report back on the ordinance’s effectiveness in accomplishing the established goals, and Ordinance No. 26359, entitled: “An Ordinance of the City of San José Amending Title 6 of the San José Municipal Code to Add a New Chapter to Regulate Tinted Windows at Beverage Service Businesses”, was passed for publication. Vote: 10-0-1-0. Absent: Chavez.

4.4 Approval of the following actions to establish Proposed Maintenance District 19 (River Oaks Area Landscaping), and Proposed Maintenance District 20 (Renaissance - North First Landscaping):

(a) Adoption of resolutions preliminarily approving the Engineer’s Reports.

(b) Set public meetings to be held on June 19, 2001 at 7:00 p.m.

(d) Direct that the ballots and notices of said meetings and hearings be mailed to the property owners in the proposed districts.

Council District 4. (Public Works)

(Rules Committee referral 5/2/01)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated May 1, 2001, recommending said actions to establish the proposed Maintenance Districts 19 and 20.

Discussion/Action: Council Member Reed noted both proposed Maintenance District 19 and 20 are located in Council District 4 and asked Staff to notify Council of the time and locations of community meetings. Upon motion by Council Member Reed, seconded by Council Member Williams, and unanimously carried, Resolution No. 70337, entitled: “A Resolution of the Council of the City of San José Preliminarily Approving the Engineer’s Report for the Proposed New Maintenance District 19 (River Oaks Area Landscaping) and Taking Certain Other Actions Preliminary to the Approval of Such Maintenance District Pursuant to the Provisions of Proposition 218”; and Resolution No. 70338, entitled: “A Resolution of the Council of the City of San José Preliminarily Approving the Engineer’s Report for the Proposed New Maintenance District 20 (Renaissance-North First Landscaping) and Taking Certain Other Actions Preliminary to the Approval of Such New Maintenance District Pursuant to the Provisions of Proposition 218”, were adopted. Vote: 9-0-2-0. Absent: Campos, Chavez.

4.5 Approval of the following actions to modify and reauthorize Maintenance District 4 (Gateway Place - Airport Parkway), Maintenance District 9 (Santa Teresa - Great Oaks), and Maintenance District 11 (Brokaw Road from Junction to Old Oakland):

(a) Adoption of resolutions preliminarily approving the Engineer’s Reports.

(b) Set public meetings to be held on June 19, 2001 at 7:00 p.m.

(d) Direct that the ballots and notices of said meetings and hearings be mailed to the property owners in the proposed districts.

Council Districts 2, 3, and 4. (Public Works)

(Rules Committee referral 5/2/01)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated May 1, 2001, recommending Council take certain actions to modify and reauthorize Maintenance Districts 4, 9 and 11.

Discussion/Action: Upon motion by Council Member Williams, seconded by Council Member Diquisto, and unanimously carried, Staff directed to notify Council of the time and locations of community meetings, and Resolution No. 70339, entitled: “A Resolution of the Council of the City of San José Preliminarily Approving the Engineer’s Report for Maintenance District 4 (Gateway Place-Airport Parkway) and Taking Certain Other Actions Preliminary to the Modification and Reauthorization of Such Maintenance District”; Resolution No. 70340, entitled: “A Resolution of the Council of the City of San José Preliminarily Approving the Engineer’s Report for Maintenance District 9 (Santa Teresa-Great Oaks) and Taking Certain Other Actions Preliminary to the Modification and Reauthorization of Such Maintenance District”; and Resolution No. 70341, entitled: “A Resolution of the Council of the City of San José Preliminarily Approving the Engineer’s Report for Maintenance District 11 (Brokaw Road from Junction to Old Oakland) and Taking Certain Other Actions Preliminary to the Modification and Reauthorization of Such Maintenance District”, were adopted. Vote: 10-0-1-0. Absent: Chavez.

4.6 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. (Cortese, 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

(Continued from 4/3/01 – Item 11.7 and 4/17/01 – Item 11.4)

Documents filed: None.

Discussion/Action: This item was continued to the Evening Agenda of May 15, 2001.

TRANSPORTATION SERVICES

6.1 Traffic Calming Advisory Committee (Ad Hoc) – April 26, 2001

Council Member Reed, Chair

Documents filed: (1) Traffic Calming Advisory Committee report of April 26, 2001. (2) Memorandum from Council Member Reed, dated May 4, 2001, submitting Crosswalk Installation Guidelines recommended by the Traffic Calming Advisory Committee for installation of marked crosswalks and specially enhanced crosswalks for a one-year trial period.

(a) Report on Potential Speed Enforcement Legislation. Attachment: Memorandum from Director of Transportation Wayne K. Tanda, dated April 19, 2001, stating there will be an oral report and presentation on this item.

The Committee accepted the Staff report and recommended moving forward with legislative change.

(b) Report on Pedestrian Design Standards. Attachment: Memorandum from Director of Transportation Wayne K. Tanda, dated April 17, 2001, transmitting said report and recommending its acceptance.

The Committee accepted the Staff report.

(c) Update on Crosswalk Guidelines. Attachment: Memorandum from Director of Transportation Wayne K. Tanda, dated April 18, 2001, stating there will be an oral report on this item and transmitting the draft revised crosswalk guidelines which were forwarded to the Bicycle/Pedestrian Advisory Committee for review on April 23, 2001.

The Committee agreed to a one-year trial period for the guidelines, provided the Committee’s recommended changes are made, and recommended forwarding the guidelines to Council.

(d) Update on Bike Lane Installation Guidelines. Attachment: Memorandum from Director of Transportation Wayne K. Tanda, dated April 18, 2001, stating there will be an oral report on this item.

The Committee accepted the Staff report.

(e) Review of Work Plan Progress. Attachment: (1) Memorandum from Director of Transportation Wayne K. Tanda, dated April 18, 2001, stating there will be an oral report on this item. (2) Hard copies of the Staff presentation on NASCOP Update and Potential Speed Enforcement Legislation.

The Committee approved the report and agreed to the following modifications:

(1) Cancel the May 24 meeting and move agenda item to May 10

(2) Discuss Draft Traffic Calming policy at June 14 meeting

(3) ADD review of NASCOP policy to June 14 agenda

(f) Oral petitions

None.

(g) Adjournment

The Committee adjourned at 4:05 p.m.

Discussion/Action: Upon motion by Council Member Reed, seconded by Council Member Diquisto, and unanimously carried, the Traffic Calming Advisory Committee report and actions of April 26, 2001, with the changes to the Crosswalk Guidelines recommended by the Traffic Calming Advisory Committee, were accepted; and the memorandum dated May 4, 2001, from Council Member Reed with the revised Crosswalk Guidelines, was approved, and Staff was directed to bring the guidelines to Council, through the Bicycle Pedestrian Advisory Council, in one year. Vote: 10-0-1-0. Absent: Chavez.

ENVIRONMENTAL & UTILITY SERVICES

7.1 PUBLIC HEARINGS on approval of ordinances granting Commercial Solid Waste and Recyclables Collection Franchises and approval of Commercial Solid Waste and Recyclables Collection Franchise Agreements with:

(a) AAA Express Roll-Off

(b) Butterick Enterprises, Inc. dba B&B Roll-Off Service

(d) Custom Disposal Service

(e) Diversified Recycling Services, Inc. dba San Jose Recycling II

(f) E.M.S., L.L.C.

(g) Green Valley Disposal Company, Inc.

(h) Green Waste Recovery, Inc.

(i) Green Waste Recovery, Inc. dba $99 Debris Box

(j) Grifall Trucking. Inc.

(k) Green Team of San Jose dba GT Waste Services

(l) JHM Services, Inc.

(m) Jonna Corporation dba Premier Recycle

(n) Julie Coleman Enterprises, Inc. dba Pacific Rim Recycling

(o) Phillip A. Ingram dba Coast Dumpster Service

(p) Los Altos Garbage Company dba Stevens Creek Disposal & Recycling

(q) Mission Trails Waste Systems dba Recycle West

(r) Number “1” Disposal

(s) Panther Industries

(t) Newark Group, Inc. dba Recycled Fibers

(u) Recycling Systems

(w) The Flea Market, Inc.

(x) USA Waste of California dba Hollister Disposal, a subsidiary of Waste Management.

(y) Waste Management of California, Inc. dba Waste Management of Santa Clara County

(v) Smurfit-Stone Container Corporation dba Smurfit-Stone Recycling

CEQA: Negative Declaration. (Environmental Services)

Documents filed: (1) Memorandum from Director of Environmental Services, Carl W. Mosher, dated April 18, 2001, recommending approval of ordinances granting said Commercial Solid Waste and Recyclables Collection Franchises and approval of said Commercial Solid Waste and Recyclables Collections Agreements. (2) Notice of Public Hearing and Proof of Publication, executed on April 27, 2001, submitted by the City Clerk. (3) Affidavit of Publishing, dated April 27, 2001, submitted by the City Clerk.

Discussion/Action: Upon motion by Council Member Cortese, seconded by Council Member Diquisto, and unanimously carried, Ordinance No. 26360, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to AAA Express Roll-Off Disposal”; Ordinance No. 26361, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Butterick Enterprises, Inc.”; Ordinance No. 26362, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Browning-Ferris Industries”; Ordinance No. 26363, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Custom Disposal Service”; Ordinance No. 26364, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Diversified Recycling Services, Inc. dba San José Recycling II”; Ordinance No. 26365, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to E.M.S., L.L.C”; Ordinance No. 26366, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Green Valley Disposal Co. Inc.”; Ordinance No. 26367, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Green Waste Recovery, Inc.”; Ordinance No. 26368, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Green Waste Recovery, Inc., dba $99 Debris Box Service”; Ordinance No. 26369, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Grifall Trucking., Inc.”; Ordinance No. 26370, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to GreenTeam of San José, dba GT Waste Services”; Ordinance No. 26371, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to JHM Services, Inc.”; Ordinance No. 26372, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Jonna Corporation, dba Premier Recycle”; Ordinance No. 26373, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Julie Coleman Enterprises, Inc., dba Pacific Rim Recycling”; Ordinance No. 26374, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Phillip A. Ingram, dba Cost Dumpster Service”; Ordinance No. 26375, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Los Altos Garbage Company, dba Stevens Creek Disposal and Recycling”; Ordinance No. 26376, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Mission Trail Waste Systems, Inc., dba Recycle West”; Ordinance No. 26377, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Number “1” Disposal”; Ordinance No. 26378, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Panther Industries”; Ordinance No. 26379, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Newark Group”; Ordinance No. 26380, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Recycling Systems”; Ordinance No. 26381, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to The Flea Market”; Ordinance No. 26382, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Waste Management, Inc., dba Hollister Disposal”; Ordinance No. 26383, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Waste Management of Santa Clara County”, were passed for publication, and Item 7.1(v) for Smurfit-Stone Container Corporation, dba Smurfit-Stone Recycling was deferred to May 29, 2001. Vote: 10-0-1-0. Absent: Chavez.

7.2 Adoption of a resolution authorizing the Director of General Services to execute the following agreements for reduction of energy (electrical) consumption:

(a) A Participation Agreement with Global Energy Partners LLC; and

(b) A Demand Relief Agreement with Infotility.

(General Services)

Documents filed: None.

Discussion/Action: This item was dropped from the Agenda. Staff was directed to forward an information memo regarding the reasons this item was dropped from the agenda.

AVIATION SERVICES

8.1 Approval of report on staff’s intent to issue Request for Proposals for Taxicab Services at San José International Airport. (Airport)

Documents filed: None.

Discussion/Action: This item was deferred to May 15, 2001.

8.2 Approval of a first amendment to the agreement with M. Arthur Gensler, Jr. & Associates for master architectural services, increasing compensation by $5.0 million, from $4.5 million to $9.5 million. CEQA: Resolution No. 67380. (Airport)

Documents filed: Memorandum from Director of Aviation, Ralph G. Tonseth, dated April 16, 2001, recommending approval of a first amendment to said agreement.

Discussion/Action: Upon motion by Council Member Diquisto, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the first amendment to said agreement with M. Arthur Gensler, Jr. & Associates was approved and its execution authorized. Vote: 10-0-1-0. Absent: Chavez.

3.4 (a) Approval of Council Salary Setting Commission Report for the period July 1, 2001 through June 30, 2003. (City Clerk)

(b) Approval of an ordinance setting Mayor and Council Member salaries. (City Attorney’s Office)

(This Item heard immediately following Item 8.2)

Documents filed: (1) Correspondence from the James E. Crownover, Chair, Council Salary Setting Commission, dated April 11, 2001, submitting the report of the 2001 Salary Setting Commission, pursuant to City Charter Section 407, and recommending (1) An increase to the Mayor’s salary of 5.26% for the period July 1, 2001 through June 30, 2002 for a salary of $100,000 and a 5% increase for the period July 1, 2002 through June 30, 2003 for a salary of $105,000; (2) An increase for each City Council Member of 9.31% for the period July 1, 2001 through June 30, 2002 for a salary of $70,000 and an increase of 7.14% for the period July 1, 2002 through June 30, 2003 for a salary of $75,000; (3) No change to retirement, medical, dental and life insurance benefits; and (4) Increasing deductions for unexcused absences of Council Members from $100 to $250 per incidence, with absences due to authorized City business, personal illness or illness or death of a close family member constituting an excused absence, and recommending an enforceable avenue of accountability be established. (2) Memorandum from City Attorney Richard Doyle, dated May 3, 2001, advising options available to Council with regard to the Commission’s recommendations.

Discussion/Action: Vice Mayor Shirakawa, Jr. stated support for all the Salary Setting Commission’s recommendations with the exception of the two salary increases over two years for the City Council. Although he appreciates the Commission’s finding that the cost of living is high in the area and Council deserves an increase, and he believes Council Members are underpaid for the job they do. However, he stated he is not comfortable with creating the perception of Council granting to itself an increase larger than the 6% increases which have been given to most of the bargaining units for City employees, but would be supportive of a 6% increase for the Council. Council Member Reed moved approval of the four recommendations of the Salary Setting Commission. Expressing support for the Salary Setting Commission’s recommendations, he stated the Commission’s finding that Council’s existing salary is the median salary for the County indicates one-half of residents would have to take a pay cut in order to serve on the Council, that increasing the salaries would make it possible for more people to have the opportunity to serve in these positions. Council Member Yeager stated Council should be paid more and City employees work hard, are under paid and also deserve more. However, he does not support giving Council more than the 6% which is being given to employees, although he could support a 6% increase. Council Member Diquisto stated he accepts the recommendation of the Commission, that there are expenses connected to serving on the Council, and he will support the motion, although he believes the Mayor should receive more. Council Member Williams stated Council and Mayor salaries should be competitive, that the Mayor should receive more than recommended, and he could support the recommendations but would also support a 6% increase. Council. Vice Mayor Shirakawa, Jr. pointed out that the increases proposed by the Commission are recommendations only, not mandatory amounts. Council Member LeZotte stated it is important to be competitive, that the ability of people to serve is directly affected by the salary being offered, and she supports the motion. Council Member Cortese stated the use of an independent commission to review the issue and make recommendations is a good process, and he was prepared to accept whatever their recommendation would be, and he would support the motion. Council Member Campos stated the Mayor should receive more than recommended, that having an independent commission to make determinations on what is appropriate is a good process, and she supports the motion. Council Member Dando stated it is important to attract candidates to the job, although she would prefer retirement or health benefit augmentation rather than a salary increase. City Attorney Richard Doyle clarified that Council has the option of approving the increase amount recommended by the Commission or a lesser amount. Mayor Gonzales stated this is a difficult position for both he and the Council, that he thinks the Council base salaries are too low, that they are worth more than they paid. However, he stated the increase should be comparable to the salary increases being given to employees. Recognizing the importance of attracting candidates for elected office, he stated the same applies to competing for City employees. At Mayor Gonzales’ request, Council Member Reed amended his motion to vote separately on the four recommendations of the Salary Setting Commission dated April 11, 2001. Upon motion by Council Member Reed, seconded by Council Member Diquisto, Recommendation No. 1 pertaining to the proposed salary increase for the position of Mayor was unanimously approved; Recommendations No. 3 and 4 pertaining to Mayor and Council benefits and to deductions for missed meetings, were approved, with the issue of establishing a system for charging Council Members for unexcused absences referred to the Rules Committee. Vote: 10-0-1-0. Absent: Chavez. Upon motion by Council Member Reed, seconded by Council Member Diquisto, and carried, Recommendation No. 2 pertaining to Council Member salaries was approved, and Ordinance No. 26384, entitled: “An Ordinance of the City of San José Adopting Salaries for the Mayor and Council Members Recommended by the Council Salary Setting Commission Pursuant to City Charter Section 407”, was passed for publication. Vote: 6-4-1-0. Noes: Gonzales, Shirakawa, Jr., Williams and Yeager on the recommended increase for Council Members. Absent: Chavez.

7.3 Adoption of a resolution to reaffirm the City’s commitment to the preservation of the Coyote Valley greenbelt. (Mayor)

Documents filed: None.

Discussion/Action: This item was deferred to May 15, 2001.

RECESS/RECONVENE

The City Council recessed at 4:45 p.m. to a Redevelopment Agency Board Meeting, and reconvened at 4:50 p.m., Council Chambers, City Hall, to hear Item 7.4 on the City Council Agenda.

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

Absent: Council Members - Chavez (excused).

7.4 (a) Approve the listing of preferred sites for energy generation that would be included in the Request for Qualifications.

(b) Direct the City Manager to release two Requests for Qualifications; one related to renewable energy resources and the second to stationary peaker plants and conventional fuels.

(c) Authorize the City Manager to negotiate land lease agreements with energy companies to construct and operate transportable peaking power plants for the summer of 2001. To accomplish this, institute a limited suspension of City Council Policy Number 6-16 "Uses of Public Property" only as it applies to the installation of transportable peaking power plants for the summer of 2001 to be identified in the future.

(Environmental Services)

(Rules Committee referral 5/2/01) (This item heard last on the agenda)

Documents filed: Memorandum from Director of Environmental Services, Carl W. Mosher, and James R. Derryberry, Director of Planning, Building and Code Enforcement, dated May 4, 2001, recommending actions pertaining to preferred sites for energy generations for inclusion in RFQs related to renewable energy resources and to stationary peaker plants and conventional fuels, and authorizing the City Manager to negotiate land lease agreements to construct and operate transportable peaking power plants for the summer of 2001, by instituting a limited suspension of Council Policy Number 6-16 for said purpose.

Discussion/Action: Director of Environmental Services, Carl W. Mosher, using PowerPoint overviews, stated there is an energy crisis, regardless of how it evolved, and key elements of opportunities for additional generation are conservation and load management, additional power generation, and coordination of information. He stated Mayor Gonzales has taken the lead on the energy crisis, from the Smart Energy Plan introduced in the State of the City address and approved by Council, to Co-Chairing two Energy Summits with Mayors and regional representatives, spurring the region’s municipalities into action. He stated Staff will provide options for additional energy generation, appropriate locations for power plants, creative partnerships, and clean “green” power generation, all elements of the Mayor’s Smart Energy Plan. Regarding legislative analyses, he stated Staff will provide an informational memorandum on emerging issues, and reports on the summit and energy conference are in the report. He stated steps the Administration has taken include an Energy Task Force, comprised of Jim Derryberry, Kent Edens, Laurel Prevetti, Fran McVey, Carl Mosher, Joni Pattillo and Mary Tucker, which reviews weekly the potential sitings of power plants, and an Energy Facility Task Force, Co-Chaired by Fran McVey and Carl Mosher meet monthly with City facility operators to review activities related to energy conservation. In addition, Staff has met with representatives of the Sacramento Utility District and with Steve Larson, Executive Director of the California Energy Commission. Mary Tucker, Supervising Environmental Specialist, stated the types of energy generation and delivery systems reviewed were renewables, peaker power plants—both transportable and stationary, convention/fossil fuel energy generation, and other generation opportunities are provided by small-scale stationary applications of electric generating technologies, consisting of diesel engines, fuel cells, small and “micro” gas turbines, solar photovoltaic, and wind turbines, and voltage and transmission line data.

Director Derryberry reviewed the Initial List of Candidate Energy Generation Sites on City-Owned Property and a Refined List which identifies sites with the greatest potential based on available space, proximity to natural gas and electrical grids/substations, existing uses/zoning, and surrounding land uses. Stating all sites have some potential for renewable energy because of low impact on surrounding properties and a few have multiple potential, he presented a matrix matching sites to categories of power plants, emphasized that generation potentials are estimates only, pending the receipt of market/economic data from the RFQ, and added that the order of magnitude for renewable energy generation in all the sites is in the range of 5-10 megawatts. Reviewing promising sites, he stated the Central Yard could accommodate a transportable peaking and a solar electric plant; Las Plumas is a candidate for both a transportable and a stationary peaking plant and a solar electric. He stated the Treatment Plant has potential for a base load plant; however, Staff is reviewing the City’s needs and the possibility of a joint effort with the City of Santa Clara and, with concerns about implications to the nearby US Dataport Project, this facility will have a separate RFQ to determine interest and feasibility of a power plant on this site. Joni Pattillo, Chief Deputy Director, Business Services, described the key objective of the two types of RFQs, i.e., stationary peaking/conventional fuel, and renewable energy, as maximizing energy generation and cost effectiveness while minimizing neighborhood impacts, as well as elements in the Smart Energy Plan, and that even an aggressive RFQ timeline could not meet the immediate energy crisis this summer. Therefore, Staff recommends a separate process for the transportable peaking power plants in order to be in place by summer 2001, highlights of the process being lease agreements of 6 months-3 years minimal space requirement, adding power during peak usage in support of Stage 2 and 3 emergencies, reducing prospects of rolling blackouts and improving system reliability. She reviewed the timeline and noted if approved today, notification of the RFQ can be put on the website of the California Energy Commission to gather interest.

Addressing entitlement issues pertaining to guidelines of Council Policy Number 6-16 for private uses on public land, Director Derryberry stated each category has different permitting requirements depending on the use, that virtually all non-City uses on non-public land would require a use permit, that in the case of the Story Road Landfill which is zoned residential, a General Plan amendment and rezoning would be required, and most of the renewable applications because of very low impact, would be processed with a site permit. Regarding streamlining potential, he stated the only way a transportable plant could occur this summer is to suspend the particular language of Policy 6-16 that would apply to this specific use, that a CEQA consultant is assisting facilitation of an environmental review and a negative declaration will be sought wherever possible. He stated changes to the zoning code would be required, that an urgency ordinance would address the location of energy facilities on private land, and options include standby generation. Director Mosher stated on-going and future energy activities by Staff include aggressive energy conservation at City facilities, linkage to proposed “green building” guidelines, educational outreach, potential for Solar Buying Clubs, job training partnerships, and energy policy development. He stated the recommendation is for direction to release the RFQs and authorization for the City Manager to negotiate the land lease agreements so the transportable peaking plans can be in place by summer if the opportunity presents itself.

Mayor Gonzales thanked the Administration for their expertise and efforts on the energy strategies. He stated this is a serious issue with which few cities have experience, and because of the nature of the crisis, Council needs to act quickly to protect the residents and economic environment of the City. Vice Mayor Shirakawa, Jr. moved approval of the Staff recommendations. Council Member Reed seconded the motion, and requested that the RFQ for the base load plant to be located on the Water Treatment Plant property specify that locations be either on the treatment plant proper, or on the east side of Zanker Road and not on the side near the town of Alviso. Council Member LeZotte suggested locating peaker plants close to the end user whenever possible, reviewing the use of portable generators in public facilities, identifying sites appropriate for larger energy generation plants. She expressed concern about the use of diesel generators without catalytic converters and suggested the issue of diesel be addressed in the RFQ, and suggested inclusion of PG&E rebate grants in the City’s education program. Mayor Gonzales stated the City should not consider using diesel generation. Responding to a request from Council Member Campos, Director Mosher stated additional information on the environmental impact of peaker plants will be provided by an informational memorandum. Council Member Cortese asked if the RFQ would address the issue of outreach through focus groups or other methods. Mayor Gonzales suggested the issue be referred to Staff for determination of the appropriate approach in order to not delay the process. Deputy Director Joni Pattillo stated that issue can be included in the RFQ as one of the elements to be addressed during the negotiation period. Council Member Williams raised the need for the City to provide leadership in the area of energy conservation via education and public outreach efforts. William J. Garbett spoke in opposition to the proposal. On a call for the question, the Staff recommendations dated May 4, 2001, were approved, and Staff directed to take into consideration the issues raised by Council Members, including ensuring the generation plant proposed for the Treatment Plant be located away from Alviso, and including in the RFQ issues geared to avoiding diesel and ensuring public outreach, review the availability of PG&E rebate grants, and providing Council with information on the environmental impacts of peaker plants. Vote: 10-0-1-0. Absent: Chavez.

Adjournment

The Council of the City of San José adjourned at 5:45 p.m.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK