City Council Meeting Minutes, 6-26-01

MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, JUNE 26, 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 (A) To confer with Real Property Designated Representatives pursuant to Government Code Section 54956.8: (1) Property: APN 230-46-54, 55, 58 and 60; Designated Representatives Darrell Dearborn for the City of San José and Dan Shugart for FMC Corporation; Under Negotiation: Direction will concern purchase, price and terms of payment; and (B) to confer with Legal Counsel pursuant to Government Code Section 54956.9; under Subsection (a) to discuss existing litigation in the cases of (1) In re Trubshaw; (2) Simpson v. City of San José, et al.; and (3) City of San José v. Morgan Hill Unified School District, et.al.; to discuss anticipated litigation pursuant to Sub-section (b) of Government Code Section 54956.9, in one matter involving significant exposure to litigation and one matter regarding the initiation of litigation; and to confer with Labor Negotiator Pursuant to Government Code 54957.6: (1) City Negotiator: City Manager designee: Alex Gurza; Employee Organization-Municipal Employees Federation.

By unanimous consent, Council reconvened from the Closed Session and recessed at 11:05 a.m. and reconvened at 1:38 p.m. in the Council Chambers.

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

Absent: Council Members - None.

Invocation (District 6)

Stephanie Keller and Adam Campbell from the Children’s Montgomery Theater, under the direction of the Executive Director Jennifer Sandretto Hull, performed an aria from West Side Story, singing as a duet the beautiful song entitled, “Tonight”.

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 Chavez, and unanimously carried, Item 2.47 as deferred to August 7, 2001, and the Orders of the Day and the Amended Agenda were approved. Vote: 11-0-0-0.

CEREMONIAL ITEMS

1.1 Presentation of a commendation to Gil Garcia and Wendy Teague of Garcia Teague Architecture & Interiors in recognition of their award for the design of the Biblioteca Latinoamericana. (Chavez)

Documents filed: None.

Discussion/Action: Council Member Chavez joined Mayor Gonzales at the podium for presentation of a commendation to Gil Garcia and Wendy Teague in recognition of Garcia Teague Architecture & Interiors’ receiving a design award for the Biblioteca Latinoamericana. Gil Garcia accepted the commendation and thanked the Mayor and Council Members for their vision in making the Biblioteca Latinoamericana a reality.

1.2 Presentation of a Commendation to The Community Service Area 1 Team who received the PRNS Director’s Challenge Award for their part in the opening of a new community center serving the constituents of District One. (LeZotte)

Documents filed: None.

Discussion/Action: This item was deferred to August 7, 2001.

1.3 Presentation of commendation to Director of Planning, Building and Code Enforcement, James R. Derryberry, on his retirement from City Service, and recognizing his years of service to the residents of San José.

Documents filed: None.

Discussion/Action: Mayor Ron Gonzales and City Manager Del D. Borgsdorf presented a commendation to Jim Derryberry, Director of the Department of Planning, Building and Code Enforcement, on the occasion of his retirement from City Service. The Mayor and City Manager Borgsdorf commended Director Derryberry for his many accomplishments in his years of service and for professional leadership as part of the Senior Management of the City of San Jose. Director Derryberry thanked the Mayor and City Manager for the recognition and commended the staff of the Department of Planning, Building and Code Enforcement for their exemplary commitment to public service.

1.4 Recognition of Legislative Secretary Doris Casey on her retirement in August 2001.

Documents filed: None.

Discussion/Action: Mayor Gonzales and City Clerk Patricia L. O’Hearn presented a floral bouquet to Doris Casey, Legislative Secretary, on the occasion of her coming retirement from City service in August, 2001, and commended her work both in the Office of the City Clerk and at numerous meetings of the San José City Council.

RECESS/RECONVENE

The Council of City of San José recessed at 2:00 and reconvened at 2:07 p.m. to hear Item 7.1 in a Joint Council/Redevelopment Agency session, recessed at 2:22 p.m. and reconvened at 2:23 p.m. to hear the remainder of the City Council June 26, 2001 agenda.

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

Absent: Council Members - None.

CONSENT CALENDAR

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

2.1 Final adoption of ordinances:

(a) ORD. NO. 26410 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to All Points Roll Off, Inc.

(b) ORD. NO. 26411 – Establishes an Underground Utility District at King Road, from Story Road to Marsh Street.

(c) ORD. NO. 26412 – Authorizes a one-time transfer of $442,510 from the Anti-Tobacco Master Settlement Agreement Revenue Fund’s Anti-Tobacco Category to the Education Category for Cycle 2 (2001-2002) under Ordinance No. 26140.

(d) ORD. NO. 26416 – Amends Chapter 3.36 of Title 3 of the San José Municipal Code to establish a separate Medical Benefits Account in the Police and Fire Department Retirement Fund for medical and dental benefits and to provide for reimbursement of Police and Fire retirees for certain Medicare Part B payments.

(e) ORD. NO. 26417 – Amends Chapter 3.44 of Title 3 of the San José Municipal Code to provide a flat 3% cost-of-living adjustment effective February 1, 2002, for persons retired from the Police and Fire Department Retirement Plan and for survivors of members or retirees.

(f) ORD. NO. 26419 – Amends Title 9 of the San José Municipal Code by adding a new Chapter 9.54 to restrict the discing of vegetation on certain lands.

(g) ORD. NO. 26422 – Amends Sections 14.25.520 and 14.25.530 of Chapter 14.25 of Title 14 of the San José Municipal Code and amends Sections 19.38.520 and 19.38.530 of Chapter 19.38 of Title 19 to extend both the suspension of the low income unit exemption and the voucher payment procedure from July 1, 2001 to July 1, 2004.

(h) ORD. NO. 26423 – Rezones certain real property situated on the northeasterly terminus of Skyway Drive, extending to the southwesterly corner of Senter Road and Diamond Heights Drive. PDC 00-08-065.

(i) ORD. NO. 26424 - Rezones certain real property situated at the northwest corner of Union Avenue and State Route 85. PDC 01-01-009.

(j) ORD. NO. 26425 - Rezones certain real property situated on the south side of University Avenue approximately 170 feet easterly of the Alameda. PDC 01-02-030.

(k) ORD. NO. 26426 - Rezones certain real property situated on the west side of Lone Hill Road, 350 feet northerly of Los Gatos-Almaden Road. PDC 00-08-076.

(l) ORD. NO. 26427 - Rezones certain real property situated at the easterly side of Winchester Boulevard opposite Olin and Olsen Drives. PDCSH 01-02-023.

(m) ORD. NO. 26428 - Rezones certain real property situated on both sides of McCarthy Boulevard, at the westerly terminus of Dixon Landing Road. PDC 99-09-078.

(n) ORD. NO. 26429 - Rezones certain real property situated at the north side of Berryessa Road, approximately 50 feet easterly of Mabury Road (929 Berryessa Road). PDC 00-12-124.

(o) ORD. NO. 26430 - Rezones certain real property situated on the east side of Pamela Avenue, approximately 130 feet south of McKee Road. PDC 00-09-093.

(p) ORD. NO. 26431 - Rezones certain real property situated on the southeasterly corner of Willow Street and Delmas Avenue. PDC 01-02-031.

(q) ORD. NO. 26432 - Rezones certain real property situated on the west side of South Autumn Street, approximately 90 feet north of West San Fernando Street (91 S. Autumn Street). C 01-03-033.

(r) ORD. NO. 26433 - Rezones certain real property situated on the north side of Julian Street, approximately 70 feet west of Montgomery Street. C 01-03-035

(s) ORD. NO. 26434 - Rezones certain real property situated on the east side of Monterey Road, approximately 1000 feet north of Tully Road. PDC 01-05-059.

(t) ORD. NO. 26435 - Rezones certain real property situated on the north side of Blossom Hill Road, between Santa Teresa Boulevard and Winfield Boulevard. PDC 00-09-088.

(u) ORD. NO. 26436 – Approves and adopts the ninth amended West San Carlos Street Redevelopment Plan which extends the eminent domain authority of the Agency through December 31, 2010; and making certain findings.

(v) ORD. NO. 26437 - Approves and adopts the tenth amended The Alameda Redevelopment Plan which extends the eminent domain authority of the Agency, including over residential property, through December 31, 2010; and making certain findings.

Documents filed: Proofs of publication of title of Ordinance Nos. 26410, 26411, 26412, 26416, 26417, 26419, 26422, 26423, 26424, 26425, 26426, 26427, 26428, 26429, 26430, 26431, 26432, 26433, 26434, 26435, 26436, and 26437, executed on June 19 and 22, 2001, submitted by the City Clerk.

Discussion/Action: William J. Garbett spoke in opposition to Ordinance Nos. 26435, 26436 and 26437. Ordinance Nos. 26410, 26411, 26412, 26416, 26417, 26419, 26422, 26423, 26424, 26425, 26426, 26427, 26428, 26429, 26430, 26431, 26432, 26433, 26434, 26435, 26436, and 26437 were adopted. Vote: 11-0-0-0.

2.2 Adoption of a resolution authorizing the City Manager to negotiate and execute a first amendment to the lease agreement for airport premises with United Airlines Inc. for Terminal C office space, to extend the term from August 1, 2001 to November 30, 2007, with projected annual revenue to the City in the amount of $10,000/FY00-01. CEQA: Resolution No. 67380. (Airport)

(Deferred from 6/12/01 – Item 2.6)

Documents filed: (1) Memorandum from Mayor Gonzales and Council Members Yeager and Chavez, dated June 25, 2001, recommending Council (a) Direct the City Attorney to work with all airlines who have a lease at San José International Airport in preparing an airline conformance plan that details specific measures and/or information on how they will meet the City’s aircraft curfew, including an elimination of both compliant and non-compliant violations, and to report back to Council within 90 days; (b) Direct Staff to report any conformance plans to the Airport Curfew Monitoring Committee for its input so that the Committee can make recommendations to the City Council; (c) Direct Staff to seek ways with the Federal Aviation Administration to modify the City’s current “grandfathered” curfew to establish fines and penalties for non-compliance; and (d) Direct the City Attorney to investigate the feasibility of taking action against airlines that have a pattern of curfew violations for unfair business practices. (2) Memorandum from City Attorney Richard Doyle, dated June 22, 2001, advising of legal remedies available to address airline curfew violations of the Airport Noise Control Program. (3) Memorandum from Director of Aviation, Ralph G. Tonseth, dated May 21, 2001, recommending approval of a first amendment to said lease of airport premises with United Airlines, Inc., for Terminal C Office Space.

Discussion/Action: Council approved the direction to the Administration relative to Airline Noise Mitigation measures as recommended in memorandum dated June 25, 2001, by Mayor Gonzales and Council Members Yeager and Chavez, and Resolution No. 70461, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a First Amendment to the Lease of San José International Airport Premises with United Airlines, Inc., for Terminal C Baggage Claim Office Space, with Projected Annual Revenue to the City in the Amount of $10,000”, was adopted. Vote: 11-0-0-0.

2.3 Adoption of a resolution authorizing the City Manager to award a contract for the Central Service Yard Emergency Generator Project to the low bidder, Steiny and Co., Inc., in the amount of $270,620, and approval of a contingency in the amount of $30,000. CEQA: ND. (Public Works)

(Deferred from 6/5/01 – Item 2.14)

Documents filed: None.

Discussion/Action: This item was deferred to August 7, 2001.

2.4 Adoption of a resolution authorizing the City Attorney to execute the sixth amendment to the legal services agreement with Ogden, Gibson, White, and Broocks to increase compensation by $120,000, from $565,000 to a total amount not to exceed $685,000. (Board of Administration for the Police & Fire Department Retirement Plan)

Documents filed: Memorandum from Board of Administration for the Police and Fire Department’s Retirement Plan, dated June 4, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70462, entitled: “A Resolution of the Council of the City of San José Authorizing the City Attorney to Execute the Sixth Amendment to the Legal Services Agreement with Ogden, Gibson, White & Broocks to Increase the Compensation by $120,000 for a Total Not to Exceed $685,000”, was adopted. Vote: 11-0-0-0.

2.5 Adoption of a resolution authorizing the City Attorney to negotiate and execute:

(a) A third amendment to the agreement with Gardner Family Health Network, Inc. for participation in the San José Municipal Health Services Program, to extend the term through June 30, 2005;

(b) An agreement with the County of Santa Clara for participation in the San José Municipal Health Services Program, for the period of January 1, 2000 through June 30, 2005.

(City Attorney's Office)

Documents filed: Memoranda from City Attorney Richard Doyle, dated June 14 and 21, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70463, entitled: “A Resolution of the Council of the City of San José Authorizing the City Attorney to Negotiate and Execute Provider Agreements with Gardner Family Health Network, Inc. and the County of Santa Clara for Participation in the San José Municipal Health Services Program, to Extend the Term Through June 30, 2005”, was adopted. Vote: 11-0-0-0.

2.6 Adoption of a resolution authorizing the City Attorney to negotiate and execute a third amendment to the legal services agreement with Curiale, Dellaverson, Hirschfeld, Kelly & Kraemer, extending the term through December 31, 2001, and increasing compensation by $30,000, to a total amount not to exceed $180,000. (City Attorney's Office)

Documents filed: Memorandum from City Attorney Richard Doyle, dated June 14, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70464, entitled: “A Resolution of the Council of the City of San José Authorizing the City Attorney to Negotiate and Execute a Third Amendment to the Legal Services Agreement with Curiale, Dellaverson, Hirschfeld, Kelly & Kraemer, Extending the Term Through December 31, 2001, and Increasing Compensation by $30,000, for a total not to Exceed $180,000”, was adopted. Vote: 11-0-0-0.

2.7 Approval of an agreement with John Montgomery, for the provision of services as the City’s legislative representative in Washington, D.C., for the period July 1, 2001 through June 30, 2002, in an amount not to exceed $117,267. (City Manager’s Office)

Documents filed: Memorandum from Director of Intergovernmental Relations, Betsy Shotwell, dated May 30, 2001, recommending approval of said agreement.

Discussion/Action: The agreement with John Montgomery for the provision of said services as the City’s legislative representative in Washington, D.C., was approved and its execution authorized. Vote: 11-0-0-0.

2.8 Adoption of a resolution:

(a) Permitting the installation of the SharkByte Art temporary exhibit on city sidewalks.

(b) Authorizing the City Manager to negotiate and execute an agreement with the San José Downtown Association regarding design review, liability coverage, required conditions, permits, and approvals for the exhibit.

CEQA: Exempt. Council District 3. (Conventions, Arts and Entertainment)

Documents filed: Memorandum from Nancy Johnson, Director, Conventions, Arts and Entertainment, dated June 4, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70465, entitled: “A Resolution of the Council of the City of San José Permitting the Installation of the SharkByte Art Temporary Exhibit on City Sidewalks; Authorizing the City Manager to Negotiate and Execute an Agreement with the San José Downtown Association Regarding Design Review, Liability Coverage, Required Conditions, Permits and Approvals for the Exhibit; and Granting San José Downtown Association a $20,000 Sponsorship to be used to Cover Project Expenses”, was adopted. Vote: 11-0-0-0.

2.9 Adoption of a resolution authorizing the City Manager to negotiate and execute a grant agreement with the Tech Museum of Innovation for completing miscellaneous public improvements, for a total amount not to exceed $115,000. (Conventions, Arts and Entertainment)

Documents filed: Memorandum from Nancy Johnson, Director, Conventions, Arts and Entertainment, dated June 4, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70466, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Grant Agreement with the Tech Museum of Innovation to Complete Miscellaneous Public Improvements in an Amount Not to Exceed $115,000”, was adopted. Vote: 11-0-0-0.

2.10 Approval of an agreement with the Hispanic Chamber of Commerce to provide business services for the period July 1, 2001 to June 30, 2002, in an amount not to exceed $104,000. (Economic Development)

Documents filed: Memorandum from Senior Deputy City Manager, Darrell Dearborn, dated May 29, 2001, recommending approval of said agreement with the Hispanic Chamber of Commerce.

Discussion/Action: The agreement with the Hispanic Chamber of Commerce was approved. Vote: 11-0-0-0.

2.11 Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with Economic and Social Opportunities Inc. for an amount not to exceed $1,000,000, to establish and administer a program for the period July 1, 2001 through June 30, 2002 providing:

(a) Financial assistance for energy bill payments to eligible residents of San José as defined by the California Low Income Home Energy Assistance Program guidelines;

(b) Energy efficiency education, audits, and improvements to eligible San José residents as defined by the City of San José Community Development Block Grant guidelines.

(Environmental Services)

Renumbered to Item 7.10

Documents filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated June 14, 2001, recommending adoption of said resolution.

Discussion/Action: See Item 7.10 for Council action taken.

2.12 Approval of a second amendment to the consultant agreement with EOA, Inc. to continue to perform Advanced Regulatory Analysis, extending the term of the agreement by one year, from June 30, 2001 to June 30, 2002, at no additional cost to the City. (Environmental Services)

Documents filed: (1) Memorandum from Director of Environmental Services, Carl W. Mosher, dated June 14, 2001, recommending approval of a second amendment to said agreement with EOA, Inc. (2) Letter from the Treatment Plant Advisory Committee dated June 14, 2001, stating concurrence with the Staff recommendation.

Discussion/Action: The second amendment to said agreement with EOA, Inc., was approved and its execution authorized. Vote: 11-0-0-0.

2.13 Approval of the seventh amendment to the agreement with GreenTeam of San José for Multi-Family Integrated Waste Management Services, to expand the Recycle Plus multi-family waste oil and oil filter collection pilot to a City-wide collection program, to revise the pilot program compensation for FY 2001-02 to a minimum of $5,000 per month and a total not to exceed $120,000, and to extend the term of the oil recycling program by twelve months, from July 1, 2001 to June 30, 2002. (Environmental Services)

Documents filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated June 4, 2001, recommending approval of a seventh amendment to said agreement with GreenTeam of San José.

Discussion/Action: The seventh amendment to said agreement with GreenTeam of San José was approved and its execution authorized. Vote: 11-0-0-0.

2.14 Approval of a fourth amendment to the agreement with San José State University Foundation for environmental research projects to revise the scope of work and schedule of performance, increase compensation by $45,000, from $215,000, for a total amount not to exceed $260,000, and extend the term of the agreement by four months, from March 1, 2002 to June 30, 2002. CEQA: Exempt. (Environmental Services)

Documents filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated June 4, 2001, recommending approval of a fourth amendment to said agreement with San José State University Foundation.

Discussion/Action: The fourth amendment to said agreement with San José State University Foundation was approved and its execution authorized. Vote: 11-0-0-0. (2) Letter from the Treatment Plant Advisory Committee dated June 14, 2001, stating concurrence with the Staff recommendation.

2.15 Approval of a time extension to the consultant agreement with the Regents of the University of California on behalf of the University of California Cooperative Extension, Santa Clara for research on the use of municipally generated yard waste and food waste products, extending the term by twelve months, from August 1, 2001 through August 1, 2002, with no increase in compensation. (Environmental Services)

Documents filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated June 4, 2001, recommending approval of an amendment to said agreement with the Regents of the University of California on behalf of the University of California Cooperative Extension.

Discussion/Action: The time extension to the consultant agreement with the Regents of the University of California on behalf of the University of California Cooperative Extension was approved and its execution authorized. Vote: 11-0-0-0.

2.16 Adoption of a resolution authorizing the City Manager to negotiate and execute a second amendment to the agreement with Conservation Retrofitter, Inc., DBA California Water Conservation Company, to extend each of the three program elements by one month, from June 30, 2002 to July 31, 2002, and to delay the beginning and ending dates of the small multi-family dwelling program element’s Optional Extended Services Period by the same time period of one month, to begin on August 1, 2001 and end on September 30, 2002, at no additional cost to the City. (Environmental Services)

Documents filed: (1) Memorandum from Director of Environmental Services, Carl W. Mosher, dated June 4, 2001, recommending adoption of said resolution. (2) Letter from the Treatment Plant Advisory Committee dated June 14, 2001, stating concurrence with the Staff recommendation.

Discussion/Action: Resolution No. 70467, 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 Conservation Retrofitter, Inc., DBA California Water Conservation Company for the Ultra-Low Flush Toilet Installation Retrofit Program to Extend the Time for Completion of Program Elements and to Delay the Optional Extended Services Period”, was adopted. Vote: 11-0-0-0.

2.17 Approval of a first amendment to the agency agreement with the County of Santa Clara for the countywide household hazardous waste collection program to update the Emergency Collection Plan, provide the program event schedule for FY 2001-02, and to provide greater operational detail, at no cost to the City. (Environmental Services)

Documents filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated June 4, 2001, recommending approval of a first amendment to said agreement with the County of Santa Clara County was approved and its execution authorized. Vote: 11-0-0-0.

Discussion/Action: The first amendment to said agreement with the County of Santa Clara was approved and its execution authorized. Vote: 11-0-0-0.

2.18 Approval of a first amendment to the agreement with Moore Iacofano Goltsman, Inc. to provide facilitation services for the Santa Clara Basin Watershed Management Initiative, extending the term of the agreement by one year, from June 30, 2001 to June 30, 2002, and revising the schedule of compensation, at no additional cost to the City. (Environmental Services)

Documents filed: (1) Memorandum from Director of Environmental Services, Carl W. Mosher, dated June 4, 2001, recommending approval of a first amendment to said agreement with Moore Iacofano Goltsman, Inc. (2) Letter from the Treatment Plant Advisory Committee dated June 14, 2001, stating concurrence with the Staff recommendation.

Discussion/Action: The first amendment to said agreement with Moore Iacofano Goltsman, Inc. was approved and its execution authorized. Vote: 11-0-0-0.

2.19 Adoption of a resolution authorizing the City Manager to negotiate and execute a fourth amendment to the agreement with the City of Milpitas to secure additional funding for construction of South Bay Water Recycling projects, increasing the maximum amount payable by $348,622, from $12,155,631 to a total not to exceed $12,504,253, and extending the term of the agreement by nine months, from December 31, 2002 to September 30, 2003. CEQA: Resolution No. 64667. (Environmental Services)

Discussion/Action: Resolution No. 70468, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Fourth Amendment to the Agreement with the City of Milpitas to Secure Additional Funding for Construction of South Bay Water Recycling Projects, Increasing the Maximum Amount Payable by $348,622 to a Total Amount in an Amount Not to Exceed $12,504,253, and Extending the Term of the Agreement to September 30, 2003”, was adopted. Vote: 11-0-0-0.

2.20 Approval of the third amendment to the general banking services agreement with Bank of America to extend the term of the agreement on a month-to month basis, not to exceed a period of three months at existing rates. (Finance)

Documents filed: Memorandum from Finance Director Scott P. Johnson, dated June 4, 2001, recommending approval of a third amendment to said agreement with Bank of America.

Discussion/Action: The third amendment to said agreement with Bank of America was approved and its execution authorized. Vote: 11-0-0-0.

2.21 Adoption of a resolution authorizing the City Manager to negotiate and execute the first amendment to the agreement with Fullerton & Friar, Inc. and Public Resources Advisory Group, for general financial advisory services related to the Airport Master Plan, to extend the term of the agreement from July 1, 2001 to June 30, 2002, and to increase the maximum amount of compensation from $300,000 to $610,000. (Finance/Airport)

Documents filed: Memorandum from Finance Director Scott P. Johnson, and Aviation Director Ralph Tonseth, dated May 29, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70469, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a First Amendment to the Agreement with Fullerton & Friar, Inc., and Public Resources Advisory Group for General Financial Advisory Services Related to the San José International Airport Master Plan to Extend the Term to June 30, 2002, in an Additional Amount Not to Exceed $310,000, for Total Compensation Not to Exceed $610,000”, was adopted. Vote: 11-0-0-0.

2.22 Approval of an agreement with Club One, Inc. to provide a comprehensive Wellness Program for the San José Fire Department in an amount not exceed $211,100, for the period July 1, 2001 to June 30, 2002. (Fire)

Documents filed: Memorandum from Fire Chief Manuel Alarcon, dated June 4, 2001, recommending approval of said agreement with Club One, Inc.

Discussion/Action: At Council Member LeZotte’s request, City Manager Del Borgsdorf reported that performance measures for the contract will be developed; and said agreement with Club One, Inc., was approved and its execution authorized. Vote: 11-0-0-0.

2.23 Approval of an agreement with Howard E. Michael, M.D. to serve as Medical Director of the Fire Department EMS Program for the period July 1, 2001 to June 30, 2002, in an amount not to exceed $84,304. (Fire)

Documents filed: Memorandum from Fire Chief Manuel Alarcon, dated June 4, 2001, recommending approval of said agreement with Howard E. Michael, M.D.

Discussion/Action: The agreement with Howard E. Michael, M.D., was approved and its execution authorized. Vote: 11-0-0-0.

2.24 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2000-2001 #49, 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 June 4, 2001, recommending approval of said open purchase orders.

Discussion/Action: The award of open purchase orders List No. 49 was approved and the Director of General Services authorized to execute the purchase orders. Vote: 11-0-0-0.

2.25 (a) Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2001-2002 #1, and authorization for the Director of General Services to execute the purchase orders.

(b) Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2001-2002 #2, and authorization for the Director of General Services to execute the purchase orders.

(General Services)

Documents filed: (1) Memoranda from Acting Director of General Services, Francis B. McVey, dated June 4, 2001, recommending approval of said open purchase order lists #1 and #2 for FY-2001-2001. (2) Letter from the Treatment Plant Advisory Committee dated June 14, 2001, stating concurrence with the Staff recommendation.

Discussion/Action: The award of open purchase orders List Nos. 1 and 2 were approved and the Director of General Services authorized to execute the purchase orders. Vote: 11-0-0-0.

2.26 Adoption of a resolution authorizing the Director of General Services to:

(a) Execute an agreement for the acquisition of an integrated departmental database software program for the Housing Department with Housing & Development Software, Inc., at a total cost of $141,800, including tax, installation, integration, data conversion, and training; and

(b) Execute change orders in an amount not to exceed $50,000 for unanticipated requirements which may arise during the installation and integration of the various software modules.

(General Services)

Documents filed: Memorandum from Acting Director of General Services, Fran B. McVey, dated June 4, 2001, recommending adoption of said resolution.

Discussion/Action: Bill Brown, The Mitas Group, Inc., protested the recommended award, alleging the system bid by the low bidder does not fulfill the requirements of the Request for Quotation. In response to Mayor Gonzales’ inquiry whether the system proposed by the low bidder will serve the City’s needs, given the great disparity between the costs of the bids received, and to Council Member Williams’ concerns about ensuring future needs are met, Staff indicated the proposed system will meet the City’s needs for the foreseeable future, assuming there are no external forces or unfounded mandates to the contrary. Resolution No. 70470, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of General Services to Execute an Agreement with Housing & Development Software, Inc., for an Integrated Departmental Database Software Program”, was adopted. Vote: 11-0-0-0.

2.27 Adoption of a resolution authorizing the Director of General Services to execute all documents necessary for the donation of one (1) sedan and one (1) pickup truck with a total estimated value of $3,250 to the San José Conservation Corps. (General Services)

Documents filed: Memorandum from Acting Director of General Services, Francis B. McVey, dated June 4, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70471, entitled: “A Resolution of the Council of the City of San José Approving the Donation of Two Surplus Vehicles to the San José Conservation Corps”, was adopted. Vote: 11-0-0-0.

2.28 Adoption of a resolution authorizing the Director of General Services to execute all documents necessary for the sale of one (1) fire vehicle with a total sales price of $1,500 to Fire Brigade #38, Paradise Park Masonic Club. (General Services)

Documents filed: Memorandum from Acting Director of General Services, Francis B. McVey, dated June 4, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70472, entitled: “A Resolution of the Council of the City of San José Approving the Sale of a Surplus Fire Vehicle to Fire Brigade #38, Paradise Park Masonic Club”, was adopted. Vote: 11-0-0-0.

2.29 Adoption of a resolution authorizing the Director of General Services to execute all documents necessary for the donation of one surplus Police bomb van with a total estimated value of $1,700 to the City of Mexicali, Mexico. (General Services)

Documents filed: Memorandum from Acting Director of General Services, Francis B. McVey, dated June 4, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70473, entitled: “A Resolution of the Council of the City of San José Approving the Donation of One Surplus Police Bomb Van to the City of Mexicali, Mexico”, was adopted. Vote: 11-0-0-0.

2.30 Adoption of a resolution authorizing the Director of General Services to designate Pacific, Gas and Electric Co., under the Core Rate Schedule, as the supplier for the purchase of natural gas for the Water Pollution Control Plant and the Convention, Arts & Entertainment Department. (General Services)

Documents filed: (1) Memorandum from Acting Director of General Services, Francis B. McVey, dated June 4, 2001, recommending adoption of said resolution. (2) Letter from the Treatment Plant Advisory Committee dated June 14, 2001, stating concurrence with the Staff recommendation.

Discussion/Action: Resolution No. 70474, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of General Services to Designate Pacific Gas & Electric Company as a Supplier for the Purchase of Natural Gas”, was adopted. Vote: 11-0-0-0.

2.31 Report on bids and award the purchase of one (1) mechanical broom-type street sweeping truck for the Transportation Department to the lowest responsive bidder, Ricker Machinery, at a total cost of $186,455.22, including tax, and authorization for the Director of General Services to execute the purchase order for the:

(a) Immediate purchase of one (1) unit; and

(b) Subsequent purchase of additional units at the same bid price without further Council action other than the appropriation of necessary funds.

(General Services)

Documents filed: Memorandum from Acting Director of General Services, Francis B. McVey, dated June 4, 2001, recommending award of said purchase to the lowest responsive bidder, Ricker Machinery.

Discussion/Action: The award of said purchase to the lowest responsive bidder, Ricker Machinery was approved and its execution authorized. Vote: 11-0-0-0.

2.32 Adoption of a resolution to:

(a) Amend the City Pay Plan to create job classifications for Senior Carpenter, Airport Operations Specialist, Senior and Airport Operations Specialist, Senior PT.

(b) Change job classification titles for Airport Operations Specialist II and Airport Operations Specialist II PT.

(Human Resources)

Documents filed: Memorandum from Director of Human Resources, Nona Tobin, dated June 4, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70475, entitled: “A Resolution of the Council of the City of San José Amending the City of San José Pay Plan to Create Specified Job Classifications, to Change Job Classification Titles for Current Classifications and to Delete Obsolete Job Classifications”, was adopted. Vote: 11-0-0-0.

2.33 Adoption of a resolution, amending Resolution No. 70072, to revise the City Manager’s authorization to execute an agreement (modification #1) between Pacific Bell Telephone Company and the City of San José, for 311 service, for a total cost not to exceed $137,700, for the period July 1, 2000 to January 3, 2002. (Information Technology)

Documents filed: Memorandum from Wandzia Grycz, Chief Information Officer, dated June 4, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70476, entitled: “A Resolution of the Council of the City of San José Amending Resolution No. 70072 to Revise the City Manager’s Authority to Execute a Modification to the Agreement for 311 Service with Pacific Bell”, was adopted. Vote: 11-0-0-0.

2.34 Adoption of a resolution authorizing the City Manager to submit a joint application with the San José Conservation Corps for a grant amount of $167,570 for services performed by the San José Conservation Corps at Alum Rock Park under the Urban Streams Restoration Program and if awarded, negotiate and execute a grant agreement with the State of California, Department of Water Resources, for the period July 1, 2001 to June 30, 2002. (Parks, Recreation and Neighborhood Services)

Documents filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated June 4, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70477, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Execute and Submit a Joint Application with the San José Conservation Corps to the State of California Department of Water Resources for a Grant for the Urban Streams Restoration Program for the Period of July 1, 2001 through June 30, 2002, in an Amount Not to Exceed $167,570, to Negotiate and Execute the Grant Agreement if Awarded, and to Execute All Related Documents”, was adopted. Vote: 11-0-0-0.

2.35 Adoption of a resolution authorizing the City Manager to negotiate and execute agreements for Parks, Recreation and Neighborhood Services programs consistent with the amounts budgeted for these programs in the adopted budget for Fiscal Year 2001-02, and to accept grant funds from the County for provision of mental health services and senior nutrition programs, and accept funds from the City of Milpitas for animal services in amounts consistent with budgeted amounts, and on terms and conditions determined reasonable by the City Manager. (Parks, Recreation and Neighborhood Services)

Documents filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated June 4, 2001, recommending adoption of said resolution.

Discussion/Action: City Manager Del Borgsdorf stated the Master Agreement with the Conservation Corps of San José will be completed within days and the Administration is requesting Council include that agreement as an addition to the list of agreements presented for approval. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Cortese, and unanimously carried, the verbal request of the City Manager to add to the Staff recommendation a Master Agreement for the San José Conservation Corps which is pending completion (Entitled: Master Agreement By and Between the City of San José and the San José Conservation Corps to Carry Out Community Improvement Activities,) the term of said contract to begin on July 1, 2001 and terminate on June 30, 2002), was approved, and Resolution No. 70478, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute Various Agreements and to Accept Grant Funds for Parks, Recreation and Neighborhood Services Programs Consistent with the Amounts Budgeted for these Programs in the Adopted Budget for Fiscal Year 2001-2002”, was adopted. Vote: 11-0-0-0.

2.36 Adoption of a resolution requesting grant funding in the amount of $100,000 to replicate the Plugged In Program in San José by:

(a) Approving an application to the State Department of Parks and Recreation for a grant to replicate the Plugged In Program in San José.

(b) Authorizing the City Manager to negotiate and execute all documents relating to the grant application and the associated funding agreement.

(c) Direction to the staff of the Parks, Recreation and Neighborhood Services to complete the grant application and to submit it to the State Department of Parks and Recreation.

Council District 5. (Parks, Recreation and Neighborhood Services)

Documents filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated June 13, 2001, recommending adoption of said resolution.

Discussion/Action: In response to Council Member Campos’ questions about the locations and determinate for site selection, Mark Linder, Director of Parks, Recreation and Neighborhood Services, stated an Information Memorandum will be provided to Council. Resolution No. 70479, entitled: “A Resolution of the Council of the City of San José Approving the Application for Grant Funds from the California Department of Parks and Recreation for the Plugged In Program”, was adopted. Vote: 11-0-0-0.

2.37 Adoption of a resolution authorizing the City Manager to negotiate and execute a consultant agreement, for a maximum compensation of $82,500, with the ROMA Design Group for urban design services to be included in the preparation of the East Gardner Specific Plan. (Planning, Building and Code Enforcement)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated May 10, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70480, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement with Roma Design Group for Urban Design Services for the East Gardner Specific Plan in an Amount not to Exceed $82,500”, was adopted. Vote: 11-0-0-0.

2.38 (a) Initiate and refer to the 2001 Annual Review of the General Plan, eleven land use amendments to the San Jose 2020 General Plan Land Use/Transportation Diagram to strengthen San Jose’s industrial land base.

(b) Initiate and refer to the 2001 Annual Review of the General Plan, text amendments to strengthen pedestrian and related policies as recommended by the Pedestrian Issues Task Force.

(Planning, Building and Code Enforcement)

Documents filed: Memoranda from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 7 and 18, 2001, recommending Council initiate and refer to the 2001 Annual Review of the General Plan, eleven land use amendments to the San José 2020 General Plan Land Use/Transportation Diagram and text amendments as recommended by the Pedestrian Issues Task Force.

Discussion/Action: Council Member Reed expressed concerns about protecting lands available for critical suppliers of high technology companies and moved approval of the Staff recommendation, with the following amendments: (1) Staff to include in the 2001 Annual General Plan review language that would facilitate critical suppliers and similar uses to be allowed in Industrial Park designations, Research and Development, and Campus Industrial General Plan designations; (2) Staff to analyze the impact which the staff recommendation to withdraw the overlay would have on social services which use those areas; (3) Staff to report back with an analysis of the zoning code changes which would be needed to allow light industrial users to locate in other areas. The Staff report and recommendations dated June 7 and 18, 2001, were approved, and said General Plan amendments were referred to the 2001 Annual Review of the General Plan.

2.39 Approval of a continuation to a consultant agreement with Jones & Stokes Associates increasing compensation by $5,000, to $60,000; amending the scope of services to include delivery of an electronic version of the Riparian Restoration Action Plan; amending Exhibit D, Compensation, to state that the final $6,000 of compensation is to be paid upon receipt of final product; and extending the term to September 30, 2001 with all other provisions of the agreement remaining in effect. (Planning, Building and Code Enforcement)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 8, 2001, recommending approval of a continuation to said agreement with Jones & Stokes Associates.

Discussion/Action: The continuation to said agreement with Jones & Stokes Associates was approved and its execution authorized. Vote: 11-0-0-0.

2.40 Adoption of a resolution authorizing the reorganization of territory designated as Edenvale No. 22, which involves the annexation to the City of San José of 43.7 acres of land, located at the north side of Hillsdale Avenue opposite Vistapark Drive, and the detachment of the same from the Central Fire District and the Santa Clara County Library Services Area. CEQA: Resolution No. 70194. (Planning, Building and Code Enforcement)

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

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Resolution No. 70481, entitled: “Resolution of the Council of the City of San José Ordering the Reorganization of Certain Uninhabited Territory Designated as Edenvale No. 22 Subject to Liability for General Indebtedness of the City”, was adopted. Vote: 11-0-0-0.

2.41 (a) Adoption of a resolution authorizing the City Manager to negotiate and execute a consulting agreement with the consultant team of Marcy Li Wong and Associates and Ekona Planning and Architecture for the preparation of a Future Police Services Delivery Strategies study for the period June 26, 2001 to July 31, 2002, in an amount not to exceed $250,000.

(b) Acceptance of the Workplan for the Future Police Service Delivery Strategies study.

(Police)

Documents filed: Memorandum from Chief of Police, William M. Lansdowne, dated June 7, 2001, recommending adoption of said resolution and acceptance of the Workplan for the Future Police Service Delivery Strategies Study.

Discussion/Action: In response to questions from Council Member Chavez, Police Chief Lansdowne stated that the study as currently designed would track the Department’s overall service to the City, but Staff will include in the study an analysis of the effectiveness of the City’s 311 phone number, to review distribution of resources to accommodate peak time, and to track when other non-City public safety personnel are in the area. The Workplan for the Future Police Service Delivery Strategies study was accepted, as amended by Council direction, and Resolution No. 70482, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Consultant Agreement with the Consultant Team of Marcy Li Wong & Associates and Ekona Planning and Architecture to Prepare a Future Police Services Delivery Strategies Study for the Period from the Date of Execution of the Agreement through July 31, 2002, in an Amount Not to Exceed $250,000”, was adopted. Vote: 11-0-0-0.

2.42 (a) Adoption of a resolution authorizing the City Manager to accept the Office of Criminal Justice Planning grant award in the amount of $110,000 for one year for a Domestic Violence grant, and to execute all related documents.

(b) Adoption of related appropriation ordinance and funding sources resolution amendments in the General Fund for Fiscal Year 2001-2002 in the net amount of $110,000.

(Police/City Manager’s Office)

Documents filed: Memorandum from Chief of Police, William M. Lansdowne, and Budget Director Larry D. Lisenbee, dated June 4, 2001, recommending authorizing the City Manager to accept said Office of Criminal Justice Planning grant award, and the adoption of appropriation ordinance and related revenue resolution amendments.

Discussion/Action: Resolution No. 70483, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Domestic Violence Grant from the State Office of Criminal Justice Planning in an Amount Not to Exceed $110,000, and to Execute All Related Documents”; Ordinance No. 26438, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26415 to Appropriate Moneys in the General Fund in Amount of $146,667 for Office Criminal Justice Planning (OCJP) Domestic Violence Grant; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”; and Resolution No. 70484, entitled, “A Resolution of the City of San José Amending Resolution No. 70438 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2001-2002 to Adjust Revenues in the General Fund”, were adopted. Vote: 11-0-0-0.

2.43 (a) Approval of the addition of $370,000 for communications equipment to the Police Department's Spending Plan for the Supplemental Law Enforcement Services Fund.

(b) Adoption of amendments to the annual appropriation ordinance in the Supplemental Law Enforcement Services Fund for Fiscal Year 2001-02 in the amount of $370,000.

(Police/City Manager’s Office)

Documents filed: Memorandum from Budget Director Larry D. Lisenbee and Police Chief William M. Lansdowne, dated June 4, 2001, recommending approval of $370,000 for communications equipment to the Police Department’s Spending Plan for the Supplemental Law Enforcement Services Fund, and recommending approval of said appropriation ordinance and related revenue resolution amendments.

Discussion/Action: The addition of $370,000 for the Supplemental Law Enforcement Services Fund was approved, and Ordinance No. 26439 entitled: “An Ordinance of the City of San José Amending Ordinance No. 26415 to Appropriate Moneys in the San José Police Department Supplemental Law Enforcement Services Fund in the Amount of $370,000 for Communications Equipment; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, was adopted. Vote: 11-0-0-0.

2.44 Approval of a one-year lease agreement with Kinco Mercado Real, LLC for 3,420 square feet of office space to transition control of the Animal Control Dispatch Facility from South Bay Animal Control to the City. (Public Works)

Documents filed: (1) Memorandum from Acting Director of Public Works, Rajeev Batra, dated May 29, 2001, recommending approval of said lease agreement with Kinco Mercado Real, LLC. (2) Correspondence dated June 22, 2001, from Margie, Associate Professor, Previous Dispatch and Police Reserve.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. The agreement with Kinco Mercado Real, LLC was approved and its execution authorized. Vote: 11-0-0-0.

2.45 Approval of an agreement with Yerba Buena, OPCO, LLC, Whitehall Street Real Estate Limited Partnership XIII, Whitehall Parallel Real Estate Limited Partnership XIII, DLJ Real Estate Capital Partners and Walton Evergreen Partners III, LLC for funding and investigation of the feasibility of providing public financing for the acquisition and construction of public infrastructure improvements required for the Evergreen Industrial Development. Council District 8. (Public Works)

Documents filed: None.

Discussion/Action: This item was deferred to August 7, 2001.

2.46 Approval of an amendment to the lease agreement with Luxport Properties for 6600 square feet of office space located at 800 North First Street, replacing the name of Luxport Properties to the name of its successor, 800 N. First Street, LLC and extending the term of the agreement by an additional three (3) years from 60 months to 96 months with a rental rate of $22,770 per month during the first year of the three (3) year extended term, increasing to $23,628 per month and $24,618 per month during the second and third year of the extended term respectively. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 21, 2001, recommending approval of an amendment to said agreement with Luxport Properties.

Discussion/Action: The amendment to said agreement with Luxport Properties was approved and its execution authorized. Vote: 11-0-0-0.

2.47 Adoption of a resolution approving rate schedules and standardized non-exclusive property use agreements for placement of telecommunications equipment on City and Airport Property and authorizing the City Manager to execute such use agreements in the future if they are submitted for signature without substantive amendment. CEQA: Exempt. (Public Works)

Documents filed: None.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. This item was deferred to August 7, 2001.

2.48 Approval of the first amendment to the agreement with Sugimura & Associates, Architects for architectural services for the Gardner Neighborhood Community Center & Biebrach Park Master Plan Project, increasing compensation by $139,500, from $49,500 to a total agreement amount of $189,000. Council District 3. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 4, 2001, recommending approval of a first amendment to said agreement with Sugimura & Associates, Architects.

Discussion/Action: The first amendment to said agreement with Sugimura & Associates, Architects was approved and its execution authorized. Vote: 11-0-0-0.

2.49 Report on bids and award of contract for the Scott Street Sidewalk Improvement Project to the low bidder, Bellicitti and Pelliciotti Construction, Inc., in the amount of $209,545, and approval of a contingency in the amount of $21,000. CEQA: ND. Council District 6. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 4, 2001, recommending award of said contract, with related contingency, to the low bidder, Bellicitti and Pelliciotti Construction, Inc.

Discussion/Action: The award of said contract, and related contingency, to the low bidder, Bellicitti and Pelliciotti Construction, Inc. was approved and its execution authorized. Vote: 11-0-0-0.

2.50 Report on bids and award of contract for the Traffic Signal Unit 00D Project to the low bidder, Brown & Fesler Inc., in the amount of $279,771, and approval of a contingency in the amount of $14,000. CEQA: Exempt. Council District 8. (Public Works)

Discussion/Action: The award of said contract, and related contingency, to the low bidder, Brown & Fesler Inc. was approved and its execution authorized. Vote: 11-0-0-0.

2.51 Report on bids and award of contract for the University Alleyway Improvement, a CDGB funded project, to the low bidder, Wattis Construction, Inc., in the amount of $179,070, and approval of a contingency in the amount of $18,000. CEQA: Exempt. Council District 3. (Public Works)

Discussion/Action: The award of said contract, with related contingency, to the low bidder, Wattis Construction, Inc. was approved and its execution authorized. Vote: 11-0-0-0.

2.52 Approval of Contract Change Order No. 6 with Pacific Electric Company for the Street Lights Crackdown 99 Project in the amount of $13,478, for a total contract amount of $226,626.37. CEQA: Exempt. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 4, 2001, recommending approval of Contract Change Order No. 6 with Pacific Electric Company for said project.

Discussion/Action: Contract Change Order No. 6 with Pacific Electric Company for said project was approved and its execution authorized. Vote: 11-0-0-0.

2.53 Approval to reject all bids for the Hensley Historic District, West San Carlos, and East Santa Clara Pedestrian Streetlighting Improvement Project, and authorization for the Director of Public Works to re-advertise and re-bid the project. CEQA: Exempt. Council Districts 3 and 6. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 4, 2001, recommending approval to reject all bids for the Hensley Historic District, West San Carlos, and East Santa Clara Pedestrian Streetlighting Improvement Project, and authorization for the Director of Public Works to re-advertise and re-bid the project.

Discussion/Action: The rejection of all bids and authorization for the Director of Public Works to re-advertise and re-bid said project was approved. Vote: 11-0-0-0.

2.54 Report on bids and award of contract to the low bidder for the Communications Building Re-roof Project to the low bidder, Best Roofing and Waterproofing, Inc., in the amount of $424,838, and approval of a contingency in the amount of $45,000. CEQA: Exempt. Council District 3. (Public Works)

Documents filed: Memorandum dated June 4, 2001 and supplemental memorandum dated June 21, 2001, from Acting Director of Public Works, Rajeev Batra, dated June 21, 2001, recommending award of said contract, with related contingency, to the low bidder, Best Roofing and Waterproofing, Inc.

Discussion/Action: The award of said contract, with related contingency, to the low bidder, Best Roofing and Waterproofing, Inc. was approved and its execution authorized. Vote: 11-0-0-0.

2.55 Approval of the grant of an easement to the San José Water Company for the placement of an 8 inch waterline and backflow preventor off of Senter Road near its intersection with Umbarger Road, to provide water for a fire hydrant situated on City owned property that has been leased to the San José Conservation Corps.

(Public Works)

Documents filed: None.

Discussion/Action: This item was dropped from the agenda.

2.56 Approval of the continuation agreement with OLMM Consulting Engineers for consultant services for the Seismic Upgrade of the North Wing of the Police Administration Building Project, increasing the compensation by $30,000, from $150,000 to $180,000, and extending the term of the agreement from December 31, 2000 to December 31, 2002. Council District 3. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 4, 2001, recommending approval of a continuation agreement with OLMM Consulting Engineers.

Discussion/Action: The continuation agreement with OLMM Consulting Engineers for said project was approved and its execution authorized. Vote: 11-0-0-0.

2.57 (a) Approval of a consultant agreement with HMH Inc. for post design and construction related services in an amount not to exceed $400,000, for the term extending from July 1, 2001 to December 31, 2002;

(b) Approval of a consultant agreement with Earth Tech for hazardous material testing services in an amount not to exceed $157,000, for the term extending from July 1, 2001 to July 31, 2002;

(c) Approval of a consultant agreement with Basin Research Associates for archaeological monitoring services in an amount not to exceed $72,000, for the term extending from July 1, 2001 to July 31, 2002; and

(d) Approval of a consultant agreement with Live Oak Associates for permitting, survey and monitoring services in an amount not to exceed $43,000, for the term extending from July 1, 2001 to July 31, 2002.

Council District 2. (Public Works)

Documents filed: Memorandum from City Manager, Del D. Borgsdorf, and Redevelopment Execute Director Susan Shick, dated June 19, 2001, recommending approval of said agreements.

Discussion/Action: The consultant agreements with HMH, Inc., Earth Tech, Basic Research Associates, and Live Oak Associates were approved and their execution authorized. Vote: 11-0-0-0.

2.58 Adoption of a resolution summarily vacating the Public Utility Easements that were reserved with the vacations of portions of Eighth and Mission Streets by Resolution Nos. 58046 and 56801, respectively. CEQA: ND. Council District 3. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 12, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70485, entitled: “Resolution of the Council of the City of San José Summarily Vacating Portions of the Public Utility Easement Lying Within the Vacated Portions of Eighth Street and Mission Street” was adopted. Vote: 11-0-0-0.

2.59 Approval of agreement amendments with each of the following consultants for the preparation of Project Study Reports, at no additional cost to the City:

(a) Rajappan and Meyer Consulting Engineers, Inc. for the upgrade of the Route 101 interchange at De La Cruz Boulevard, extending the term from July 1, 2001 to December 31, 2001.

(b) Brian Kangas Foulk for the upgrade of the Route 101 interchange at Tully Road, extending the term from July 1, 2001 to December 31, 2002.

(c) Parsons Transportation Group, Inc. (formerly De Leuw, Cather & Co.) for the upgrade of the Route 880 at Coleman Avenue and Route 87 interchanges, extending the term from July 1, 2001 to December 31, 2001.

Council Districts 3, 4, and 7. (Transportation)

Documents filed: Memorandum from Director of Transportation Wayne K. Tanda, dated June 4, 2001, recommending approval of said agreement amendments for Project Study Reports.

Discussion/Action: The amendments to said agreements with Rajappan and Meyer Consulting Engineers, Inc., Brian Kangas Fould, and Parsons Transportation Groups, Inc., for said Project Study Reports were approved and their execution authorized. On 2.59(a): Vote: 10-0-0-1 Disqualified: LeZotte; On 2.59(b) and 2.59(c): Vote: 11-0-0-0.

2.60 Approval of an agreement with Fehr & Peers Associates, Inc. for transportation planning support services in an amount not to exceed $250,000. (Transportation)

Documents filed: Memorandum from Director of Transportation Wayne K. Tanda, dated June 4, 2001, recommending said agreement with Fehr & Peers Associates, Inc.

Discussion/Action: The agreement with Fehr & Peers Associates, Inc. was approved and its execution authorized. Vote: 11-0-0-0.

2.61 Approval of a grant agreement with the San José Downtown Association for a Downtown Area Shuttle Program, to be provided by the Santa Clara Valley Transportation Authority, for the period July 1, 2001 to June 30, 2002, and in an amount not to exceed $135,000. Council District 3. (Transportation)

Documents filed: Memorandum from Director of Transportation Wayne K. Tanda, dated June 4, 2001, recommending approval of said grant agreement with the San José Downtown Association.

Discussion/Action: The grant agreement with San José Downtown Association for a Downtown Area Shuttle Program was approved and its execution authorized. Vote: 11-0-0-0.

2.62 Approval of City Council Minutes:

(a) Regular Meeting of April 3, 2001

(b) Regular Meeting of April 10, 2001

(d) Regular Meeting of April 17, 2001

Documents filed: City Council and Joint Council/Redevelopment minutes of April 3, April 10 and April 17, 2001.

Discussion/Action: The City Council minutes of April 3, April 10, and April 17 and of the Joint Council/Redevelopment Agency of April 10, 2001, were approved. Vote: 11-0-0-0.

2.63 Approval to reject all bids for the Brigadoon Park Renovation Project, and authorization for the Director of Public Works to re-advertise and re-bid the project. CEQA: Exempt. Council District 8. (Public Works)

(Deferred from 6/19/01 – Item 2.17)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated May 29, 2001, recommending approval to reject all bids and authorizing the Director of Department of Public Works to re-advertise and re-bid the project.

Discussion/Action: The rejection of all bids and authorization for the Director of Department of Public Works to re-advertise and re-bid the project was approved. Vote: 11-0-0-0.

2.64 Appointment of Gerald A. Silva as City Auditor for a four year term beginning July 1, 2001, and approval of an employment agreement with Gerald A. Silva to provide services as City Auditor. (Mayor)

(Rules Committee referral 6/20/01)

Documents filed: None.

Discussion/Action: The appointment of Gerald A. Silva as City Auditor for a four year term and said employment agreement with Gerald A. Silva to provide services as City Auditor was approved and their execution authorized. Vote: 11-0-0-0.

2.65 Approval of Council Member Ken Yeager’s travel to:

(a) Portland, OR, on July 18-20, 2001, to attend the 2001 N.O.I.S.E. Summer Conference and Aviation Noise Symposium. Funding: Airport.

(b) Monterey, CA, on July 25-27, 2001, to attend the League of California Cities Mayors and Council Members Executive Forum. Funding: Council General.

(Yeager) (Rules Committee referral 6/20/01)

Documents filed: None.

Discussion/Action: The travel of Council Member Yeager to Portland, OR and to Monterey, CA for said meetings was approved. Vote: 11-0-0-0.

2.66 Adoption of a resolution authorizing the City Attorney to negotiate and execute a third amendment to the legal services agreement with Rankin, Landsness, Lahde, Serverian & Stock, to increase the total amount of compensation by $8,000, to a total amount not to exceed $183,000. (City Attorney’s Office)

(Rules Committee referral 6/20/01)

Documents filed: Memorandum from City Attorney Richard Doyle, dated June 21, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70486, entitled: “A Resolution of the Council of the City of San José Authorizing the City Attorney to Negotiate and Execute a Third Amendment to the Legal Services Agreement with Rankin, Landsness, Lahde, Serverian & Stock to Increase Total Compensation by $8,000 for a Total Not to Exceed $183,000”, was adopted. Vote: 11-0-0-0.

2.67 Approval of a grant agreement with Silicon Valley Football Classic, Inc., to provide support to the Silicon Valley Football Classic Bowl Game, in the amount of $150,000. (City Manager’s Office)

(Rules Committee referral 6/20/01)

Documents filed: Memorandum from City Manager Del Borgsdorf, dated June 22, 2001, recommending approval of a grant agreement with Silicon Valley Football Classic, Inc.

Discussion/Action: The grant agreement with Silicon Valley Football Classic, Inc. was approved and its execution authorized. Vote: 11-0-0-0.

2.69 Approval of an amendment to the agreement for consultant services with Heinbuch Golf, LLC to continue providing construction management services for the Tuers-Capitol Golf Course Project, and increasing compensation by $200,000, for a total maximum compensation of $725,000. Council District 7. (Public Works)

(Rules Committee referral 6/20/01)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 19, 2001, recommending approval of an amendment to said agreement with Heinbuch Golf, LLC.

Discussion/Action: The amendment to said agreement with Heinbuch Golf, LLC was approved and its execution authorized. Vote: 11-0-0-0.

2.70 (a) Approval of the staff report in response to CR #8-22-00-7c(7) regarding: Expanded Intergovernmental Relations Services. (City Manager’s Office)

[Rules Committee referral 6/20/01 – Item g(1)]

(b) Approval of the League of California Cities proposed bylaws amendment to increase dues to implement League Grassroots Network. (City Manager’s Office)

[Rules Committee referral 6/20/01 – Item h(1)]

(c) Approval of the staff’s report and adoption of revised Council Policy 0-12, “Council Referral System.” (City Manager’s Office)

[Rules Committee referral 6/20/01 – Item h(3]

Documents filed:: Memoranda from Assistant to the City Manager Deanna Santana, dated June 21 and 25, 2001, reporting on actions taken by the Rules Committee on the referenced items.

Discussion/Action: The Staff report regarding Expanded Intergovernmental Relations Services; the League of California Cities bylaws amendment; and the Staff report and adoption of revised Council Policy 0-12, were approved. Vote: 11-0-0-0.

2.71 Authorization for the Mayor to sign and forward a letter to the United States Fish and Wildlife Service and California Department of Fish and Game, on behalf of the City of San José, expressing the City’s approval of the preparation of the Habitat Conservation Plan/Natural Communities Conservation Plan, contingent upon the City and County negotiating terms of an easement in the County’s Coyote Creek Park. (City Manager's Office) (Orders of the Day)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 25, 2001, recommending authorization for the Mayor to sign and forward said letter to the United States Fish and Wildlife Service and California Department of Fish and Game, on behalf of the City of San José.

Discussion/Action: Council Member Reed stated the latest terms put forth by the County of Santa Clara for this easement are unacceptable and recommended Council authorize Mayor Gonzales to negotiate an appropriate transaction on behalf of the City; by unanimous consent, the authorization for the Mayor to forward said letter to the United States Fish and Wildlife Service and California Department of Fish and Game, on behalf of the City of San José, was approved. Vote: 11-0-0-0.

2.72 TRACT NO. 9316 – Southeast corner of San Felipe and Delta Roads – Brookfield Madison LLC, a Delaware Corporation (Developer) – 54 single family detached residential units. Adoption of resolutions approving the plans, final map, contract, and water main extension for Tract No. 9316. CEQA: ND. Council District 8. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 19, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70487, 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. 9316”; Resolution No. 70488, entitled: “A Resolution of the Council of the City of San José Approving and Accepting Final Map of Tract No. 9316”; Resolution No. 70489, 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. 9316”; and Resolution No. 70490, entitled: “A Resolution of the Council of the City of San José Approving and Authorizing the Execution of Agreement for the Water Main Extension, Tract No. 9316”, were adopted. Vote: 10-0-0-1. Disqualified: Cortese.

2.73 Adoption of a resolution designating the Director of Planning, Building and Code Enforcement as the Certifying Officer recognized by Housing and Urban Development as having authority to certify all clearances under the National Environmental Policy Act. (Department of Planning, Building and Code Enforcement) (Orders of the Day)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 25, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70491, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of Planning, Building and Code Enforcement as the Certifying Officer Recognized by the U.S. Department of Housing and Urban Development for Implementing the National Environment Protection Act”, was adopted. Vote: 11-0-0-0.

END OF CONSENT CALENDAR

STRATEGIC SUPPORT SERVICES

3.1 Report of City Council Study Sessions – March 27 and April 17, 2001

Mayor Gonzales, Chair

Documents filed: Joint City Council/Redevelopment Agency Study Session Reports of March 27, 2001 and April 17, 2001.

(a) Joint City Council/Redevelopment Agency Study Session of March 27, 2001

(1) Greater Downtown Development Strategy Study Session. Attachment: (1) Agenda of Study Session. (2) Memorandum from Agency Executive Director Susan F. Shick, dated March 15, 2001, transmitting report entitled: Strategy 2000, San José Greater Downtown Strategy for Development and a draft of the Downtown Parking Management Plan which resulted from the Strategy 2000 and will be presented to the Downtown Parking Board in May 2001 and to the City Council and Agency in June 2001 for acceptance.

The City Council and Redevelopment Agency Board discussed the presentations and information given, referred to Staff the issues raised by the Council and Agency Board, and determined the need for a further Study Session.

(b) City Council Study Session of April 17, 2001

(1) Traffic Calming Study Session. Attachments: (a) Agenda of Study Session. (b) Memorandum from Council Member Reed, dated April 16, 2001, reporting on Traffic Calming Policy Issues and transmitting report providing the Staff Report Binder and hard copies of the slides used in the Staff presentation. (c) Binder Report entitled: Traffic Calming, City Council Study Session.

Council accepted the Staff report and directed Staff to continue to develop the City’s Traffic Calming Program and report back at regular intervals on the status of the implementation process, make recommendations on new strategies and emerging technologies, and report on staffing and funding requirements.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the Study Session reports and actions of March 27 and April 17, 2001, were accepted. Vote: 11-0-0-0.

~~Study Session reports and actions of March 27, 2001, and April 17, 2001 accepted.~~

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3.2 Report of the Rules Committee - Meeting of June 13, 2001

Vice Mayor Shirakawa, Jr., Chair

Documents filed: Rules Committee report of June 13, 2001.

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

(b) City Council

(1) Review June 26, 2001 Draft Agenda

For Item 9.1, Acceptance of the Fire Department Strategic Plan, the Committee directed the Administration to provide both the Master Plan and Strategic Plan documents to Council in a timely manner prior to the June 26^th Council meeting. The Committee approved the June 26, 2001 City Council agenda with four additions and two changes.

(2) Add New Items to June 19, 2001 Amended Agenda

The Committee requested Administration to provide Council, in a timely manner, the report for Item 7.5, Report on the San José Municipal Water System Request for Proposals. The Committee recommended eight additions to the June 19, 2001 City Council agenda.

(1) Amendments to Council Committee Agendas

(a) Finance and Infrastructure Committee. Attachment: Revised agenda for June 27, 2001.

The Committee recommended three additions to the June 27, 2001 agenda: (1) Audit of Building Division’s cash handling and refund process (Auditor); (2) Findings report on Bay 101 conditional approval of stock transfer agreement for quarter ending December 31, 2000 (Auditor); and (3) Redevelopment Agency Debt Profile (Agency).

(b) Economic Development and Environment Committee

(d) Ad Hoc Traffic Calming Advisory Committee

There were no reports filed.

(d) Meeting Schedules

The Committee recommended cancellation of the June 27, 2001 Rules Committee meeting.

(e) The Public Record – May 30 to June 5, 2001. Attachment: (1) Memorandum from City Clerk Patricia L. O’Hearn, dated May 31, 2001, listing the items transmitted to the Administration and those items filed for the Public Record for the period May 30 to June 5, 2001.

The Committee noted and filed the Public Record.

(f) Boards, Commissions and Committees

There were none.

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

(1) Report back on request to study rental and tenant housing issues

The Committee directed the Administration to prepare a draft/status report on rental and tenant housing issues for the August 7, 2001 Economic Development and Environment (EDE) Committee meeting, to be followed by a more complete report at the September EDE Committee meeting.

(h) Administrative Reviews and Approval. Attachment: Memorandum from Director of Intergovernmental Relations, Betsy Shotwell, dated May 31, 2001, recommending acceptance of the status report on City supported/initiated state legislation.

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(1) Accept Staff Report on:

-Senate Bill 106 (Sher), relating to abandoned vehicle service authority

-Assembly Bill 730 (Diaz), relating to parks and recreation and City of -San José property exchange

-Assembly Bill 1477 (Hertberg), relating to state non-emergency telephone number system

-May 2001 Legislative Bill Matrix

The Committee recommended accepting the Staff report on Senate Bill 106 and Assembly Bills 730 and 1477, and the May 2001 legislative bill matrix.

(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 June 13, 2001, were accepted. Vote: 11-0-0-0.

~~Rules Committee report and actions of June 13, 2001 accepted.~~

3.2 Report of the Rules Committee - Meeting of June 20, 2001

Vice Mayor Shirakawa, Jr., Chair

Documents filed: Rules Committee report of June 20, 2001.

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

(b) City Council

(1) Review July 3, 2001 Draft Agenda - ~~DROP~~ Dropped due to the – July recess.~~ULY RECESS~~

(2) Add New Items to June 26, 2001 Amended Agenda. Attachment: Information memorandum from Fire Chief Manual Alarcon, dated June 20, 2001, requesting deferral of the Fire Strategic Plan from the June 26, 2001, Agenda to late August or early September, 2001.

The Committee deferred Item 9.1, Acceptance of the Fire Department Strategic Plan, to a study session to be held in late August, 2001 and directed the Administration to provide Council with relevant documents two weeks prior to the study session. The Committee recommended sixteen additions to the June 26, 2001 City Council Agenda.

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~~3.2 Report of the Rules Committee - Meeting of June 20, 2001 (Cont’d.)~~

~~Vice Mayor Shirakawa, Jr., Chair~~

~~(b) City Council~~

(1) Amendments to Council Committee Agendas

(a) Finance and Infrastructure Committee. Attachment: Revised agenda for June 27, 2001.

The Committee recommended one addition to the June 27, 2001 agenda: Audio Broadcasting of Council Committee over the Web. (Information Technology)

(b) Economic Development and Environment Committee

(d) Ad Hoc Traffic Calming Advisory Committee

There were no reports filed.

(2) Approve Council Committee Workplans for the period July – December 2001

The Committee recommended approval of the Council Committee Wworkplans for the period August through December 2001 as submitted by the Mayor and Chairs of each committee.

(3) Review Council Committee distribution lists

The Committee recommended acceptance of Staff’s report on the distribution lists and requested Council Members provide Administration with contacts and/or organizations that should be added to the Council Committee distribution lists by July 27, 2001.

(d) Meeting Schedules

The Committee recommended cancellation of the August 1, 2001 Rules Committee meeting and that a Rules-in-Lieu Committee meeting be held on the same day.

(e) The Public Record – June 6 to June 12, 2001. Attachment: (1) Memorandum from City Clerk Patricia L. O’Hearn, dated June 14, 2001, listing the items transmitted to the Administration and those items filed for the Public Record for the period June 6-12, 2001.

The Committee noted and filed the Public Record.

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~~3.2 Report of the Rules Committee - Meeting of June 20, 2001 (Cont’d.)~~

~~Vice Mayor Shirakawa, Jr., Chair~~

(f) Boards, Commissions and Committees

(1) Response to CR #5-15-01-3.6: Single term limits for Boards and Commissions

The Committee noted and filed the City Clerk’s report.

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

(1) Staff report in response to CR #8-22-00-7c(7) regarding: Expanded Intergovernmental Relations Services. Attachment: Memorandum from City Manager, Del D. Borgsdorf, dated June 18, 2001, regarding proposed changes to Intergovernmental Relations’ services.

The Committee recommended acceptance of Staff’s report regarding proposed changes to current intergovernmental relations’ processes that result in a more proactive approach in handling the City’s regional, state and federal legislative priorities.

Discussion/Action: See Item 2.70(a) ~~FOR~~ for CCouncil action taken.

(h) Administrative Reviews and Approval

(1) League of California Cities proposed bylaws amendment to increase dues to implement League Grassroots Network. Attachment: Memorandum from Director of Intergovernmental Relations, Betsy Shotwell, dated June 13, 2001, regarding an amendment to the League of California Cities bylaws.

The Committee directed this item be cross-referenced on the June 26, 2001 Council agenda consent calendar and recommended that Council:

(a) Accept Staff recommendation to approve the California League of Cities (LCC) bylaws amendment which will implement a statewide Grassroots Network with intended goals to protect local control and city revenues, and

(b) Agree to the City’s share of this effort, which will mean additional dues of $13,637 for the last half of 2001. In addition, there will be an increase in League annual dues paid by the City of $30,443, from $51,950 to a total amount for 2002 of $82,393.

Discussion/Action: See Item 2.70(b) for Council action taken. ~~SEE ITEM 2.70(b) FOR COUNCIL ACTION TAKEN~~

(2) Approve City Auditor’s Workplan for 2001-2002. Attachment: City Auditor Gerald A. Silva, dated June 14, 2001, recommending approval of the Auditor’s 2001-2001 Audit Workplan.

The Committee recommended approval of the proposed City Auditor’s 2001-02 Audit Workplan and directed the City Auditor to present a finalized 2001-02 Audit Workplan to the Rules Committee in August.

(3) Approval of Staff’s report and adoption of revised Council Policy 0-12, “Council Referral System.” Attachment: Memorandum from City Manager, Del D. Borgsdorf, dated June 13, 2001, regarding revisions to the Council Referral System.”

Discussion/Action: See Item 2.70(c) for Council action taken.

SEE I~~TEM~~ ~~2.70(c) FOR COUNCIL ACTION TAKEN~~

(i) Oral communications –

None presented.

(j) Adjournment - The Committee adjourned at 2:50 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 June 20, 2001, were accepted. Vote: 11-0-0-0.

~~Rules Committee report and actions of June 20, 2001 accepted.~~

3.3 Report of the Finance and Infrastructure Committee – June 13, 2001

Council Member Dando, Chair

Documents filed: Finance and Infrastructure Committee report of June 13, 2001.

(a) Consent Items.

(1) Monthly Investment Report for April 2001 Attachment: Memorandum from Finance Director Scott P. Johnson, dated May 24, 2001, transmitting the April 2001 Investment Report.

(2) Investment Committee Minutes for May 29, 2001. Attachment: Memorandum from Finance Director Scott P. Johnson, dated June 4, 2001, transmitting the Investment Committee minutes of May 29, 2001.

The Committee approved the Consent Items.

(b) Monthly Financial Report for April 2001. Attachment: Memorandum from Budget Director Larry D. Lisenbee, dated June 7, 2001, transmitting the April 2001 Financial Report.

The Committee accepted the Staff report.

3.3 Report of the Finance and Infrastructure Committee – June 13, 2001 (Cont’d.)

Council Member Dando, Chair

(d) Proposed Changes to Investment Policy. Attachment: Memorandum from Finance Director Scott P. Johnson, dated May 30, 2001, recommending the following changes to Section II.B of the City’s Investment Policy: (1) Change references from Thompson BankWatch service and rating categories to Fitch, Inc. (2) Change references from Duff & Phelps rating service and rating categories to Fitch, Inc.

The Committee accepted the Staff report.

Discussion/Action: See Item 3.10 for Council action taken.

(e) General Airport Revenue Bonds, Series 2001A – Plan of Finance. Attachment: Memorandum from Finance Director Scott P. Johnson, dated June 4, 2001, recommending (1) Approval of a plan of finance for the issuance of not to exceed $170 million par amount of tax-exempt, fixed-rate General Airport Revenue Bonds (the “Series 2001A Bonds”) to fund costs associated with improvements to Runway 30R and Runway 30L and direction for Staff to work with the financing team to bring forward the necessary bond documents for Council approval on June 26, 2001; (2) Approval of the replacement of the existing Master Bond Resolution with the Master Trust Agreement; and (3) Authorization for use of one or more guaranteed investment agreements for the investment of bond proceeds for the Series 2001A Bonds, which would be in addition to the three projects approved by the City Council as part of the guaranteed investment agreement pilot program.

The Committee accepted the Staff report.

Discussion/Action: See Item 8.4 for Council action taken.

(f) Annual Capital Project Completion Status Report. Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 6, 2001, deferring the status report to September 26, 2001.

The Committee deferred the report to September 26, 2001.

(g) Oral petitions

Bill Garbett spoke on airport runway construction.

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(h) Adjournment - The Committee adjourned at 3:35 p.m.

3.3 Report of the Finance and Infrastructure Committee – June 13, 2001 (Cont’d.)

Council Member Dando, Chair

Discussion/Action: Upon motion by Council Member Dando, seconded by Council Member Diquisto, and unanimously carried, the Finance and Infrastructure Committee report and actions of June 13, 2001, accepted, with Item 3.3(d) heard under 3.10 and Item 3.3(e) heard under 8.4. Vote: 11-0-0-0.

~~Approval of a Memorandum of Agreement with the Municipal Employees Federation, Local 101, American Federation of State, County, and Municipal Employees.~~

3.4 Adoption of a resolution approving the terms of a Memorandum of Agreement with the Municipal Employees Federation, Local 101, American Federation of State, County, and Municipal Employees, AFL-CIO, subject to ratification, and authorizing the City Manager to execute the agreement with a term of July 1, 2001 through June 30, 2004. (City Manager’s Office)

Documents filed: Memorandum from Alex Gurza, Director of Employee Relations, dated June 26, 2001, recommending adoption of said resolution.

Discussion/Action: Upon motion by Council Member Diquisto, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Resolution No. 70492, entitled: “A Resolution of the Council of the City of San José Approving a Memorandum of Agreement Between the City of San José and the Municipal Employees Federation Local 101, AFSCME, AFL-CIO (MEF) for the Period of July 1, 2001, Through June 30, 2004, Effective June 26, 2001, Subject to Ratification by the MEF Membership”, was adopted. Vote: 11-0-0-0.

3.5 Adoption of a resolution approving the terms of a Memorandum of Agreement between the City of San José and the International Association of Firefighters, Local 230, subject to ratification, and authorizing the City Manager to execute the Agreement with a term of July 5, 2000 through June 30, 2003. (City S/R

Documents filed: Memorandum from Alex Gurza, Director of Employee Relations, dated June 26, 2001, recommending adoption of said resolution.

Discussion/Action: Upon motion by Council Member Diquisto, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Resolution No. 70493, entitled: “A Resolution of the Council of the City of San José Approving a Memorandum of Agreement Between the City of San José and the International Association of Firefighters, local 230 (IAFF) for the Period of July 5, 2000 Through June 30, 2003, Effective June 26, 2001, Subject to Ratification by the IAFF Membership”, was adopted. Vote: 11-0-0-0.

~~Adoption of a resolution to provide general increases for Management, unrepresented, and AEA employees, and authorizing the execution of agreements.~~

3.6 Adoption of a resolution to provide general increases for Management (Unit 99) and Association of Engineers and Architects (AEA), unrepresented employees, performance based increases for specified management employee groups and to authorize the City Manager to enter into and execute agreements with Association of Maintenance Supervisory Personnel (AMSP) and City Association of Management Personnel (CAMP), subject to ratification b the respective unit’s membership. (City Manager’s Office)

Documents filed: Memorandum from City Manager, Del D. Borgsdorf, dated June 21, 2001, recommending adoption of said resolution.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, Resolution No. 70494, entitled: “A Resolution of the Council of the City of San José Approving General Salary Increases for Employees in Executive Management (Unit 99), Engineers and Architects (Units 4 and 15), and Unclassified Unrepresented Employees (Units 16 and 19), in the Amount of 6% Effective June 24, 2001, 5% Effective June 23, 2002, and 5% Effective June 24, 2003; Authorizing the City Manager to Expend an Additional 1% in Each of the Second and Third Years for Benefits Enhancements or Additional Salary Adjustments; Amending the Senior Executive Performance Program (SEPP) to Provide for General Increases for Specific Employees Covered by the SEPP; Authorizing the City Manager to Enter into Agreements with the Association of Maintenance Supervisory Personnel (Unit 18) and the City Association of Management Personnel (Unit 21) Subject to Ratification by their Membership and Authorizing Performance Based Increases for Senior Staff and Management Employees”, was adopted. Vote: 11-0-0-0.

~~Approval to purchase several Citywide insurance policies.~~

3.7 (a) Approval of purchase of a Citywide property insurance policy, from Allianz Insurance Company, for the period July 1, 2001 through June 30, 2002, and in an amount not to exceed $657,500.

(b) Approval of purchase of various Citywide insurance policies, for the period July 1, 2001 to June 30, 2002, in an amount not to exceed $891,955.

(Finance)

Documents filed: Memoranda from Finance Director Scott P. Johnson, dated June 4, 2001, recommending approval of said Citywide insurance policies.

Discussion/Action: Upon motion by Council Member Diquisto, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the purchases of Citywide property insurance policies was approved. Vote: 11-0-0-0.

~~Approval of an agreement to provide sales and use tax compliance and consulting services.~~

3.8 Adoption of resolutions:

(a) Authorizing the City Manager to negotiate and execute an agreement with MBIA MuniServices Company to provide, during the period of June 26, 2001 to June 30, 2002:

(1) Sales tax revenue compliance services, compensated on a percentage basis and capped at a total amount not to exceed $400,000 for claims successfully made; and

(2) Consulting services, in an amount not to exceed $145,000, with three one-year options to extend the term at the same rate of compensation for each additional option year, and with a completion services period to end not later than June 30, 2008, in order for MBIA to resolve claims identified during the term.

(b) Designating MBIA Muni-Services Company as a representative of the City authorized to examine all sales and use tax records of the California State Board of Equalization.

(c) Authorizing the City Manager, the City Auditor, the Budget Director, and the Director of Finance, and any other officer or employee of the City designated in writing by the City Manager, to examine all sales and use tax records of the California State Board of Equalization.

(Finance)

Documents filed: Memorandum from Finance Director Scott P. Johnson, dated June 4, 2001, recommending adoption of said resolutions.

Discussion/Action: Upon motion by Council Member Diquisto, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Resolution No. 70495, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement with MBIA MuniServices Company for Sales Tax Revenue Compliance Services”; Resolution No. 70496, entitled: “A Resolution of the Council of the City of San José Authorizing the MBIA MuniServices Company to Examine All Sales and Use Tax Records of the California State Board of Equalization for Tax Collection Purposes and other Governmental Functions”; and Resolution No. 70497, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager, the Budget Director, and the Director of Finance to Examine All Sales and Use Tax Records of the California State Board of Equalization for Tax Collection Purposes and Other Governmental Functions”, were adopted. Vote: 11-0-0-0.
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~~Initiation of a General Plan Commercial Text Amendment.~~

3.9 City Council refer to the 2001 Annual Review of the General Plan, a text amendment to the River Commercial designation in Alviso to be less specific in terms of uses and more directed at the appropriate orientation of office and retail buildings to the river frontage. (Reed)

Documents filed: None.

Discussion/Action: Upon motion by Council Member Reed, seconded by Council Member Chavez, and unanimously carried, Council referred to the 2001 Annual Review of the General Plan, a text amendment to the River Commercial designation in Alviso pertaining to the appropriate orientation of office and retail buildings to the river frontage. Vote: 11-0-0-0.

3.10 Adoption of a resolution approving proposed changes to Section II.B. of the City’s Investment Policy. (Finance)

[Finance and Infrastructure Committee referral 6/13/01 – Item 3.3(d)]

Documents filed: Memorandum from Assistant to the City Manager Deanna Santana, dated June 21, 2001, stating the Finance and Infrastructure Committee on June 13, 2001, accepted the Staff report on proposed changes to the City’s Investment Policy.

Discussion/Action: Upon motion by Council Member Reed, seconded by Council Member Chavez, and unanimously carried, Resolution No. 70498, entitled: “A Resolution of the Council of the City of San José Approving the City’s Investment Policy Including Certain Revisions Thereto”, was adopted. Vote: 11-0-0-0.

~~Approval of Cesar Chavez Day as an official City holiday.~~

3.11 Approval of Cesar Chavez Day as an official City holiday. (Mayor)

(Rules Committee referral 6/20/01)

Documents filed: Memorandum from Mayor Gonzales, Vice Mayor Shirakawa, Jr. and Council Members Campos and Chavez, dated June 25, 2001, recommending Council approve Cesar Chavez Day as an official paid City holiday for eligible employees and direct the City Manager to determine when the holiday will be observed.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Cortese, and unanimously carried, Cesar Chavez Day was approved as an official City holiday. Vote: 11-0-0-0.~~3.12 Mayor’s Biennial Review of the City’s Code of Ethics.~~

~~Recommendation:~~

3.12 (a) Approval of Mayor’s Biennial Ethics Review Recommendations.

(b) Approval of an ordinance amending Chapter 2.08 of Title 2 of the San Jose Municipal Code to add a new Section 2.08.1615 designating an attorney as one of the members of the Ethics Board, reorganizing and clarifying the provisions in Title 12 of the San Jose Municipal Code by renumbering, adding, and consolidating Ethics Board provisions in Chapter 12.16, amending and reorganizing Chapter 12.06 by deleting obsolete informational provisions and provisions relating to exploratory campaigns and making other clarifying and technical changes to Chapter 12.06.

(c) Adoption of a resolution amending the Regulations and Procedures for the Ethics Board to provide for investigations to be conducted by the attorney member of the Board in the absence of a Board investigator.

(Mayor) (Rules Committee referral 6/20/01)

Documents filed: Memorandum from Mayor Ron Gonzales, dated June 22, 2001, providing the Mayor’s Biennial Ethics Review Recommendations, pursuant to requirements of the City Charter, and making recommendations pertaining to the reorganization of the City’s Ethics Board.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Referencing Item D on page 3 of the Mayor’s memorandum regarding adding an attorney to the Board, Council Member LeZotte suggested adding language to exclude any attorney who has been in the employment of someone currently running for office to avoid a conflict of interest. On advice from City Attorney Richard Doyle, Council referred the issue to the Campaign Finance Review and Ethics Board. Council Member LeZotte questioned how an attorney board member could conduct an investigation and then vote on the issue. Following inquiries from Council Member Dando about prohibiting contributions from lobbyists, and advice from the City Attorney that the City is not preempted by State law from such a prohibition, Mayor Gonzales requested the prohibition of contributions from lobbyists be referred back to the Campaign Finance Review and Ethics Board.

Upon motion by Council Member Dando, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the Mayor’s Biennial Ethics Review Recommendations dated June 22, 2001, [Item 3.12(a)] as amended to refer back to the Campaign Finance Review and Ethics Board for consideration the Mayor’s recommendations providing for investigations to be conducted by the attorney member of the Board in the absence of a Board investigator [Item 3.12(c)]; and the additional issues of prohibiting an attorney from sitting on the Board who has advised a candidate or a seated official; prohibiting an attorney who is a Board member from conducting investigations; prohibiting the acceptance of contributions from lobbyists, as defined in the City’s campaign finance ordinance, were referred back to the Ethics Board for review and recommendation; and Ordinance No. 26440, entitled: “An Ordinance of the City of San José Reorganizing and Clarifying the Ethics Provisions in Title 12 by Renumbering Chapters 12.02 and Chapter 12.04 and Consolidating the Provisions of Chapter 12.16 Relating to the Ethics Board’s Enforcement Authority with Ethics Board Provisions in Chapter 12.04 and amending and Reorganizing Chapter 12.06 by Deleting Obsolete Informational Provisions and Provisions Relating to Exploratory Campaigns and Making Other Clarifying and Technical Changes to Chapter 12.06”, was passed for publication. Vote: 11-0-0-0.

~~Initiation of General Plan Amendments pertaining to Youth Sports Fields on School District property in South Almaden Valley.~~

3.13 (a) Initiate and refer to the 2001 Annual Review, General Plan amendments associated with proposed youth sports fields on San José Unified School District Property in the South Almaden Valley Urban Reserve.

(b) Refer to the Administration a request for a funding source and proposed timeline for an Environmental Impact Report for this General Plan amendment, and report to City Council in August.

(Dando) (Rules Committee referral 6/20/01)

Documents filed: Memorandum from Council Member Dando, dated June 21, 2001, recommending the initiation of General Plan amendments associated with proposed youth sports fields and referral to the Administration a request for funding source and proposed timeline for an Environmental Impact Report for the General Plan amendment to Council in August.

Discussion/Action: Upon motion by Council Member Dando, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Council referred to the 2001 Annual Review, General Plan amendments associated with proposed sports fields on San José Unified School District Property in the South Almaden Valley Urban Reserve, and referred to the Administration the request for funding source and proposed timeline for an Environmental Impact Report for the amendment for report to the City Council in August. Vote: 11-0-0-0.

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~~Initiation of General Plan Amendment pertaining to Alviso.~~

3.14 (a) Initiate and refer to the 2001 Annual Review, General Plan amendment to change the land use designation from Private Open Space with Solid Waste Overlay to Light Industrial on property in the Alviso Planning Area, located at the westerly terminus of Dixon Landing Road, north of the Newby Island Recyclery, and immediately south of Coyote Creek, and commonly referred to as the “D” shaped parcel, and to bring it within the Urban Service Area.

(b) Direction to the City Attorney to prepare an amendment of Section 18.30.220 to allow consideration of a minor modification of the Urban Growth Boundary in the Alviso Planning Area under limited circumstances, and to bring it back for Council consideration in August.

(Reed) (Rules Committee referral 6/20/01)

Documents filed: Memorandum from Council Member Reed, dated June 18, 2001, recommending the initiation and referral to the 2001 Annual Review, General Plan amendments to change the land use designation to Light Industrial on said properties, and direction to the City Attorney to amend the Urban Growth Boundary accordingly, and report back to Council in August.

Discussion/Action: Upon motion by Council Member Reed, seconded by Council Member Chavez, and unanimously carried, Council referred to the 2001 Annual Review, a General Plan amendment to change the land use designation on property in the Alviso Planning Area to Light Industrial, and directed the City Attorney to prepare an amendment to the Urban Growth Boundary in the Alviso Planning Area for report the City Council in August. Vote: 11-0-0-0.

~~Adoption of a resolution approving benefits for eligible City employee/military reservists called to active duty.~~

3.15 Adoption of a resolution:

(a) Approving salary and benefits provided by Resolution No. 68890 for eligible City employee/military reservists called to active duty after November 27, 1999 because of the Kosovo Conflict and extending the end date for eligibility for salary and benefits to December 31, 2002.

(b) Delegating authority to the City Manager to sign agreements detailing the repayment requirements of the supplementary benefits with affected employees.

(City Manager’s Office) (Rules Committee referral 6/20/01)

Documents filed: Memorandum from Alex Gurza, Director of Employee Relations, dated June 18, 2001, recommending adoption of said resolution.

Discussion/Action: Upon motion by Council Member Williams, Vice Mayor Shirakawa, Jr., and unanimously carried, Resolution No. 70499, entitled: “A Resolution of the Council of the City of San José Approving Military Reservist Benefits for those Employees who are Called to Active Duty Because of the Kosovo Conflict”, was adopted. Vote: 11-0-0-0.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

~~Report of the Economic Development & Environment Committee~~

~~Council Member Williams, Chair~~

~~No report.~~

~~Approval of the Convention Center and other related facilities’ rate schedule.~~

4.2 Adoption of a resolution setting forth the rate schedule for the Convention Center and other related facilities and repealing Resolution No. 69792. (Conventions, Arts and Entertainment)

Documents filed: Memorandum from Nancy Johnson, Director, Conventions, Arts and Entertainment, dated June 4, 2001, recommending adoption of said resolution.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, Resolution No. 70500, entitled: “A Resolution of the Council of the City of San José Setting Forth the Rate Schedule for the Convention Center and Other Related Facilities Managed by the City’s Department of Conventions, Arts and Entertainment and Repealing Resolution No. 69792”, was adopted. Vote: 9-0-2-0. Absent: Campos, Reed.
~~4 ECONOMIC & NEIGHBORHOOD DEVELOPMENT~~

~~Public Hearings to establish Maintenance Districts 19 and 20.~~

4.3 (a) PUBLIC HEARING for the formation of Maintenance District 19 (River Oaks Area Landscaping), and at the close of the public hearing direct the City Clerk to tabulate the property owner ballots and report the results at the August 7, 2001 Council meeting.

(b) PUBLIC HEARING for the formation of Maintenance District 20 (Renaissance - North First Landscaping), and at the close of the public hearing direct the City Clerk to tabulate the property owner ballots and report the results at the August 7, 2001 Council meeting.

Council District 4. (Public Works)

Documents filed: (1) Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 4, 2001, recommending Council hold public hearings for formation of Maintenance Districts 19 and 20 and direct the City Clerk to tabulate the property owner ballots and report the results at the August 7, 2001 Council meeting. (2) Notice of Public Hearing and Proof of Publication, executed on May 25, 2001, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the Public Hearings on the formation of Maintenance Districts 19 and 20, and stated that property owners may present ballots to the City Clerk. No ballots were submitted; the Public Hearings were closed; and the City Clerk was directed to tabulate the total property owner ballots received to date for Maintenance Districts 19 and 20 and to report the results at the August 7, 2001, City Council meeting. By unanimous consent, the direction to the City Clerk was accepted. Vote: 8-0-3-0. Absent: Campos, Shirakawa, Jr., Reed.

4.4 (a) PUBLIC HEARING for the reauthorization and modification of Maintenance District 4 (Gateway Place - Airport Parkway), and at the close of the public hearing direct the City Clerk to tabulate the property owner ballots and report the results at the August 7, 2001 Council meeting.

(b) PUBLIC HEARING for the reauthorization and modification of Maintenance District 9 (Santa Teresa - Great Oaks), and at the close of the public hearing direct the City Clerk to tabulate the property owner ballots and report the results at the August 7, 2001 Council meeting.

~~(Cont’d next page~~

4 ~~ECONOMIC & NEIGHBORHOOD DEVELOPMENT~~

~~4.4 Public Hearings to modify and reauthorize Maintenance Districts 4, 9, and 11 (Cont’d.)~~

~~Recommendation:~~

(c) PUBLIC HEARING for the reauthorization and modification of Maintenance District 11 (Brokaw Road from Junction Avenue to Old Oakland Road), and at the close of the public hearing direct the City Clerk to tabulate the property owner ballots and report the results at the August 7, 2001 Council meeting.

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

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 4, 2001, recommending Council hold public hearings for the reauthorization of Maintenance Districts 4, 9 and 11 and direct the City Clerk to tabulate the property owner ballots and report the results at the August 7, 2001 Council meeting.

Discussion/Action: Mayor Gonzales opened the Public Hearings on the reauthorization and modification of Maintenance Districts 4, 9 and 11, and stated that property owners may present ballots to the City Clerk. No ballots were submitted; the Public Hearings were closed; and the City Clerk was directed to tabulate the total property owner ballots received to date for Maintenance Districts 4, 9 and 11 and to report the results at the August 7, 2001, City Council meeting. By unanimous consent, the direction to the City Clerk was accepted. Vote: 9-0-2-0. Absent: Campos, Reed.

~~Approval to expand the Housing Rehabilitation Program.~~

4.5 Adoption of a resolution to expand the Housing Rehabilitation Program to enhance the potential opportunity for private-property improvements in the Strong Neighborhoods Initiative:

(a) Revising and expanding the Housing Rehabilitation Program’s grants for repairs.

(b) Jointly implement the Housing Rehabilitation Program and the Airport’s Acoustical Treatment Program in the Guadalupe-Washington neighborhood.

(c) Authorization for City Administration to pursue the possibility of partnering the Housing Rehabilitation Program with historic restoration and other program initiatives that are identified in the Strong Neighborhoods planning process.

(Housing/Parks, Recreation and Neighborhood Services/Airport)

Documents filed: (1) Memorandum from Acting Director of Housing Leslye Corsiglia, Parks, Recreation and Neighborhood Services Director Mark Linder, as Chair, Strong Neighborhoods Initiative Steering Committee, and Aviation Director Ralph Tonseth, dated June 19, 2001, recommending adoption of said resolution expanding the Housing Rehabilitation to enhance the potential opportunity for private property improvements in the Strong Neighborhoods Initiative (SNI). (2) City Auditor Gerald A. Silva, dated June 21, 2001, providing background on the City Auditor’s 1997 audit recommendation regarding the Housing Rehabilitation Program loans and grants.

Discussion/Action: A Staff presentation was made by Acting Director of Housing, Leslye Corsiglia, and the Director of Aviation, Ralph G. Tonseth. Council Member Chavez expressed concerns that residents are not taking advantage of the ACT program and other City programs, suggested integrating the initial contact process with the Strong Neighborhoods Initiative in an easy-to-use approach, and developing a tracking system to determine the current timeline of the City’s responses to residents who are participating in City programs, and suggested tracking interdepartmental effectiveness at interacting with neighborhoods through a formal reporting system. She expressed concerns about the potential that prohibitive rent increases might follow when improvements to rental properties have been made with City assistance. Mayor Gonzales stated concerns about the dilemma of addressing structures in disrepair without displacing tenants and creating new problems as an unintended consequence of City assistance. He suggested referring this issue to the Planned Housing Rental Task Force for consideration. Council Member Chavez moved approval of the Staff recommendation with the following two additions: following two additions: (1) Direct Staff to report back with a formal reporting structure to track the effectiveness of coordinating the ACT program and similar neighborhood services for discussion by the Strong Neighborhoods Steering Committee; and (2) Direct Staff to review strategies to provide tools that allow Code violations to be pursued without creating homelessness or other undesirable outcomes; and ~~(3)~~ that Council refer to the new Rental Task Force the issue of potential of rent increases as a result of improvements to rental properties which are funded by the City’s grant/loan programs. Council Member LeZotte seconded the motion. On a call for the question, the motion carried unanimously, and Staff was directed to develop a formal reporting strategy for neighborhood services; review strategies to develop tools that allow Municipal Code violations to be pursued without creating homelessness or other undesirable outcomes; and the issue of rent increases occuring as an impact of the City providing grants or loans to property owners was referred to the new Rental Task Force; and Resolution No. 70501, entitled: “A Resolution of the Council of the City of San José to Expand the Housing Rehabilitation Program to Enhance the Potential Opportunity for Private Property Improvements in the Strong Neighborhoods Initiative by (A) Revising and Expanding the Housing Rehabilitation Program’s Grants for Repairs, (B) Jointly Implementing the Housing Rehabilitation Program and the Airport’s Acoustical Treatment in the Guadalupe-Washington Neighborhood, and (C) Authorizing the City Administration to Pursue the Possibility of Partnering the Housing Rehabilitation Program with Historic Restoration and Other Program Initiatives that are Identified in the Strong Neighborhoods Initiative Planning Process”, was adopted. Vote: 11-0-0-0.

4 ~~ECONOMIC & NEIGHBORHOOD DEVELOPMENT~~

~~Approval of various actions for the Sixth and Martha Apartments - Phase II Development.~~

4.6 (a) Adoption of a resolution authorizing the issuance of tax-exempt multifamily housing revenue bonds in the principal amount not to exceed $9.0 million and approving a loan of bond proceeds to 985 South Sixth Street Associates, L.P., a California limited partnership created by JSM Enterprises, Inc., for financing the construction of the Sixth and Martha Apartments - Phase II development including:

(1) Approving in substantial form the Bonds, Trust Indenture, Financing Agreement, Regulatory Agreement and Declaration of Restrictive Covenants, Multifamily Note, Mortgage, Assignment of Mortgage Loan, Bond Purchase Agreement, Official Statement and Remarketing Agreement; authorizing the Director of Finance and Acting Director of Housing to execute and, as appropriate, to negotiate these documents and other related documents as necessary.

(2) Approval to allow the proceeds of the Bonds and the repayment of the Mortgage Loan to be invested in one or more investment agreements with an institution(s) whose participation in the financing will not adversely affect the expected rating on the Bonds, as approved by the Director of Finance.

(Finance/Housing)

(b) Adoption of a resolution approving the following fiscal actions for 985 South Sixth Street Associates, L.P., or its affiliate, for the development of an 88-unit housing project affordable to low and very low-income families on a 2.12-acre site located on the west side of 6^th Street, northerly of Bestor Street:

(1) Business terms for a construction loan of up to $5,227,000.

(2) A permanent loan of up to $5,646,000.

Council District 3. (Housing)

Documents filed: (1) Memorandum from Acting Director of Housing, Leslye Corsiglia, dated June 4, 2001, recommending approval of business terms for a construction permanent loan to 985 South Sixth Street Associates, L.P. (2) Memoranda from Finance Director Scott P. Johnson and Acting Director of Housing, Leslye Corsiglia, dated June 4 and 19, 2001, recommending adoption of said resolutions pertaining to tax-exempt multifamily housing revenue bonds for financing the construction of the Sixth and Martha Apartments. (3) Supplemental memorandum from Finance Director Scott P. Johnson and Acting Director of Housing, Leslye Corsiglia, dated June 19, 2001, transmitting the draft Preliminary Official Statement for the Sixth and Martha and Villages Parkway Senior Multifamily Housing Projects revenue bonds.

Discussion/Action: Rich DeFebio, JSM Enterprises, Inc., stated the developer is pleased to have the opportunity to begin Phase 2 of the project and because of the way financing has been structured, the project will be able to contribute an additional $150,000 to the City to help build the park improvements on the adjacent park site. Upon motion by Council Member Chavez, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the Staff recommendation dated June 19, 2001, was accepted; Staff was directed to accept the $150,000 offered by the developer JSM Enterprises, Inc., for improvements to the adjacent park site; Resolution No. 70502, entitled: “A Resolution of the Council of the City of San José Authorizing the Issuance of Multifamily Housing Revenue Bonds and the Loan of the Proceeds Thereof for the Financing of the Sixth and Martha Family Apartments – Phase II, and Approving Other Related Documents and Actions”; and Resolution No. 70503, entitled: “A Resolution of the Council of the City of San José Approving Business Terms for a Construction Loan of $5,227,000 and Permanent Loan of $5,646,000 to 985 South Sixth Street Associates, L.P. for the Development of an 88-Unit Rental Housing Project Affordable to Low- and Very Low Income Persons and Families, and Authorizing the Director of Housing to Negotiate and Execute All Necessary Documents Evidencing Such Loan on Behalf of the City, were adopted. Vote: 11-0-0-0.

4 ~~ECONOMIC & NEIGHBORHOOD DEVELOPMENT~~

~~Approval of various actions related to the Lenzen Housing Development.~~

4.7 (a) Adoption of a resolution authorizing the issuance of two series of tax-exempt multifamily housing revenue bonds comprised of the Series 2001B Senior Bonds (the “Senior Bonds”) and the Series 2001B Subordinate Bonds (the “Subordinate Bonds”) (together the “Bonds”), in the principal amount not to exceed $9.75 million, and approving a loan of bond proceeds to Lenzen Housing, L.P., a California limited partnership created by Core Development, Inc., for financing the construction of the Lenzen Housing project including:

(1) Approving in substantially final form the Senior Bonds, Trust Indenture, Financing Agreement, Regulatory Agreement and Declaration of Restrictive Covenants, Senior Bond Purchase Agreement, and Preliminary Official Statement.

(2) Approving in substantially final form the Subordinate Bond Purchase Agreement, Subordinate Indenture, Subordinate Loan Agreement, and related Bond Purchase Agreement.

(3) Authorizing the Director of Finance and the Acting Director of Housing to execute and, as appropriate, to negotiate, execute, and deliver these documents and other related documents as necessary.

(4) Approval to allow the proceeds of the Bonds and the repayment of the Mortgage Loan to be invested in one or more investment agreements with an institution(s) whose participation in the financing will not adversely affect the expected rating of the Bonds, as approved by the Director of Finance.

(Finance/Housing)

(b) Adoption of a resolution approving business terms for:

(1) A construction loan of up to $4,161,000 to Lenzen Housing, L.P., a California Limited Partnership, or its designated partnership, for the development of an 88-unit housing project with 69 units affordable to low-income households and 18 units affordable to very low-income households that will be targeted to teachers and one unrestricted unit on a 1.61-acre site located at on the south side of Lenzen Avenue, 210 feet west of Stockton Avenue (“Project”).

(2) A permanent loan of up to $4,674,337 to Lenzen Housing, L.P. for the Project.

(3) A bridge loan of up to $3,322,000 to Lenzen Housing, L.P. during the construction and lease-up phases for construction costs of the Project.

(4) A bridge loan of up to $1,100,000 to an affiliate of Lenzen Housing, L.P. during the construction and lease-up phases for construction costs for the Project.

Council District 6. (Housing)

Documents filed: (1) Memorandum from Acting Director of Housing, Leslye Corsiglia, dated June 4, 2001, recommending approval of business terms for a construction permanent loan for development of the Lenzen Apartments. (2) Memorandum from Finance Director Scott P. Johnson and Acting Director of Housing, Leslye Corsiglia, dated June 15, 2001, recommending adoption of said resolutions pertaining to tax-exempt multifamily housing revenue bonds for financing the construction of the Lenzen Housing Project. (3) Supplemental memorandum from Finance Director Scott P. Johnson and Acting Director of Housing, Leslye Corsiglia, dated June 19, 2001, transmitting the draft Preliminary Official Statement for the Lenzen Multifamily Housing Revenue bonds.

Discussion/Action: Upon motion by Council Member Yeager, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Resolution No. 70504, entitled: “A Resolution of the Council of the City of San José Authorizing the Issuance, Sale and Delivery of Two Series of Multifamily Housing Revenue Bonds in an Aggregate Principle Amount in an Amount Not to Exceed $9,750,000 for the Purpose of Making Two Loans to Provide Financing for a Multifamily Rental Housing Project Known as Lenzen Housing Project; Determining and Prescribing Certain Matters Relating Thereto; and Approving and Authorizing Related Actions and the Execution and Delivery of Related Documents”; and Resolution No. 70505, entitled: “A Resolution of the Council of the City of San José Approving Business Terms for: (1) A Construction Loan of up to $4,161,000 to Lenzen Housing, L.P., a California Limited Partnership, or its Designated Partnership, for the Development of an 88-Unit Housing Project with 69 Units Affordable to Low-Income Households and 18 Units Affordable to Very Low-Income Households that will be Targeted to Teachers, and One Unrestricted Unit, on a 1.61 Acre Site Located on the South Side of Lenzen Avenue (“Project”); (2) A Permanent Loan of Up to $4,674,337 to Lenzen Housing, L.P. for the Project; (3) A Bridge Loan of Up to $3,322,000 to Lenzen Housing, L.P., During the Construction and Lease-Up Phases for Construction of the Project; and (4) A Bridge Loan of Up to $1,100,000 to an Affiliate of Lenzen Housing, L.P., During the Construction and Lease-Up Phases for Construction Costs of the Project”, were adopted. Vote: 11-0-0-0.

4 ~~ECONOMIC & NEIGHBORHOOD DEVELOPMENT~~

~~Approval of various actions related to the Villages Parkway Senior Apartments Development.~~

4.8 (a) Adoption of a resolution authorizing the issuance of tax-exempt multifamily housing revenue bonds in the principal amount not to exceed $6.8 million and approving a loan of bond proceeds to Villages Parkway Associates, L.P., a California limited partnership created by JSM Enterprises, Inc., for financing the construction of the Villages Parkway Senior Apartments development including:

(Finance/Housing)

(b) Adoption of a resolution approving the following actions for Villages Parkway Associates, L.P., or its affiliate, for the development of a 79-unit housing project affordable low- and very low-income seniors on a 1.96-acre site located at the northeast corner of The Villages Parkway and Ashley Way:

(1) Business terms for construction loan of up to $4,134,000.

(2) A permanent loan of up to $4,383,000.

Council District 8. (Housing)

Documents filed: (1) Memorandum from Acting Director of Housing, Leslye Corsiglia, dated June 4, 2001, recommending approval of business terms for a construction permanent loan for the Villages parkway Senior Apartments Project. (2) Memorandum from Finance Director Scott P. Johnson and Acting Director of Housing, Leslye Corsiglia, dated June 4, 2001, recommending adoption of said resolutions pertaining to the Villages Parkway Senior Apartment Project. (3) See Item 4.6 for the Supplemental memorandum from Finance Director Scott P. Johnson and Acting Director of Housing, Leslye Corsiglia, transmitting the draft Preliminary Official Statement for the Villages Parkway Senior Multifamily Housing Projects revenue bonds.

Discussion/Action: Upon motion by Council Member Cortese, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Resolution No. 70506, entitled: “A Resolution of the Council of the City of San José Authorizing the Issuance of Multifamily Housing Revenue Bonds and the Loan of the Proceeds Thereof for the Financing of the Villages Parkway Senior Apartments and Approving Other Related Documents and Actions”; and Resolution No. 70507, entitled: “A Resolution of the Council of the City of San José Approving Business Terms for a Construction Loan of $4,134,000 and Permanent Loan of $4,383,000 to Villages Parkway Associates, L.P. for the Development of a 79-Unit Rental Housing Project Affordable to Low- and Very Low Income Seniors, and Authorizing the Director of Housing to Negotiate and Execute all Necessary Documents Evidencing Such Loan on Behalf of the City”, were adopted. Vote: 11-0-0-0.
~~4 ECONOMIC & NEIGHBORHOOD DEVELOPMENT~~

~~Approval of various actions for the San José Lutheran Senior Apartments Development.~~

4.9 Adoption of a resolution authorizing the issuance of a single series of tax-exempt multifamily housing revenue bonds in a not-to-exceed principal amount of $5,000,000, and approving a loan of the proceeds to a limited partnership created by Corporation for Better Housing for financing the construction of the San José Lutheran Senior Apartments Development including:

(a) Approving, in substantially final form, the Bonds, Trust Indenture, Financing Agreement, Regulatory Agreement and Declaration of Restrictive Covenants, Multifamily Note, Mortgage, Assignment of Mortgage Loan, and Bond Purchase Contract.

(b) Authorizing the Director of Finance and the Acting Director of Housing to execute and, as appropriate, to negotiate, execute and deliver these documents and other related documents as necessary.

(c) Approval to allow the proceeds of the Bonds to be invested in one or more investment agreements with an institution(s) whose participation in the financing will not adversely affect the expected ratings on the Bonds, as approved by the Director of Finance.

Council District 6. (Finance/Housing)

Documents filed: (1) Memorandum from Finance Director Scott P. Johnson and Acting Housing Director Leslye Corsiglia, dated June 4, 2001, recommending adoption of a resolution authorizing the issuance of tax-exempt multifamily housing revenue bonds for financing the construction of the San José Lutheran Senior Apartments Development. (2) Memorandum from Finance Director Scott P. Johnson and Acting Housing Director Leslye Corsiglia, dated June 19, 2001, transmitting documents for the San José Lutheran Senior Apartments Development for Council approval.

Discussion/Action: Upon motion by Council Member Yeager, seconded by Council Member Dando, and unanimously carries, Resolution No. 70508, entitled: “A Resolution of the Council of the City of San José Authorizing the Issuance of Multifamily Housing Revenue Bonds and the Loan of the Proceeds Thereof for the Financing of the San José Lutheran Seniors Apartments and Approving Other Related Documents and Actions”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

~~Approval of an agreement with the Humane Society of Santa Clara for animal services.~~

4.10 Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement among the Humane Society of Santa Clara Valley and the cities of San José and Milpitas for animal services with San José’s share of compensation not to exceed $1,875,835, for the period July 1, 2001 through June 30, 2002. (Parks, Recreation and Neighborhood Services)

Documents filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated June 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. 70509, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement with the Humane Society of Santa Clara Valley and the City of Milpitas for the Provision of Animal Services for the Period of July 1, 2001 Through June 30, 2002, with San José’s Share of Compensation Not to Exceed $1,875,835”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

~~Approval to award the contract for Improvement District No. 99-218SJ (Hellyer-Piercy).~~

4.12 Adoption of a resolution authorizing the City Manager to award the contract for Improvement District No. 99-218 San José (Hellyer-Piercy) Contract #1 to the low bidder, Granite Rock Company dba Pavex Construction Division, in the amount of $13,433,163, and approval of a contingency in the amount of $2,015,000. CEQA: Resolution No. 69699.

Council District 2. (Public Works)

Documents filed: (1) Memorandum from Rajeev Batra, Acting Director of Public Works dated Jiune 4, 2001, recommending award of said contract and related contingency, to low bidder, Granite Rock Company. (2) Supplemental memorandum from Acting Director of Public Works Rajeev Batra, dated June 21, 2001, with additional information.

Discussion/Action: Upon motion by Council Member Diquisto, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Resolution No. 70510, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Award the Contract for Improvement District No. 99-218SJ (Hellyer-Piercy) Contract #1 to the Low Bidder, Granite Rock Company DBA Pavex Construction Division, in the Amount of $13,433,163, and Approval of a Contingency in the Amount of $2,015,000”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

~~Approval to award the contract for the Fourth Major Interceptor Phase V/VA Project.~~

4.13` Report on bids and award of contract for the Fourth Major Interceptor Phase V/VA Project to the low bidder, Mountain Cascade, Inc., in the amount of $21,687,958, and approval of a contingency in the amount of $ 2,169,000. CEQA: Resolution No. 60197. Council District 4. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 4, 2001, recommending award of said contract to the low bidder, Mountain Cascade, Inc.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member LeZotte, and unanimously carried, the award of said contract, with related contingency, to the low bidder, Mountain Cascade, Inc., was approved and its execution authorized. Vote: 10-0-1-0. Absent: Chavez.

~~Approval to award the contract for the San José Animal Care Center Project.~~

4.14 Adoption of a resolution authorizing the City Manager to determine the lowest responsive bidder and to award a contract for the site grading and utility work for the San José Animal Care Center Project to the lowest responsive bidder, in an amount not to exceed $650,000, with a ten percent contingency. CEQA: Negative Declaration. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 4, 2001, recommending adoption of said resolution.

Discussion/Action: Upon motion by Council Member LeZotte, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Resolution No. 70511, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Award a Construction Contract for the Site Grading and Utility Portion of the San José Animal Care Center Project in an Amount Not to Exceed $650,000, and Approval of a Ten Percent Contingency”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

~~Approval of award of contract for the West San Carlos Sidewalk Replacement Project.~~

4.15 (a) Report on bids and award of contract to the low bidder for the West San Carlos Sidewalk Replacement Project to the low bidder, Golden Bay Construction, Inc., to include the base bid and Add Alternate No. 1 in the amount of $446,280, and approval of a contingency in the amount of $50,000. (Public Works)

(b) Adoption of 2001-2002 appropriation ordinance and funding sources resolution amendments in the services for Redevelopment Capital Projects Fund (City-side Redevelopment fund) for the West San Carlos Street Sidewalk Replacement Project with a net impact to the fund of $500,000 and adoption of a resolution making certain determinations regarding the expenditure of agency funds on certain public improvements. (City Manager’s Office)

(Deferred from 6/19/01 – Item 4.7)

Documents filed: (1) Memoranda from Acting Director of Public Works, Rajeev Batra, dated May 29 and June 21, 2001, recommending award of said contract to the low bidder, Golden Bay Construction, Inc. (2) Memorandum from Budget Director Larry D. Lisenbee, dated June 25, 2001, recommending approval of said appropriation ordinance and related revenue resolution amendments.

Discussion/Action: Upon motion by Council Member Chavez, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the award of said contract, with related contingency, to the low bidder, Golden Bay Construction, Inc., was approved and its execution authorized; Ordinance No. 26441; entitled: “An Ordinance of the City of San José Amending Ordinance No. 26415 to Appropriate Moneys in the Services for Redevelopment Capital Projects Fund in the Amount of $500,000 for the West San Carlos Street Sidewalk Replacement Project; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”; Resolution No. 70512, entitled, “A Resolution of the City of San José Amending Resolution No. 70438 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2001-2002 to Adjust Revenues in the Redevelopment Capital Projects Fund; Resolution No. 70512.1, entitled: “Resolution of the Council of the City of San José Making Certain Determinations Regarding the Expenditure of Redevelopment Agency Funds for Certain Public Improvements in the West San Carlos Redevelopment Project Area”, was adopted. Vote: 11-0-0-0.

~~Approval of a contract for the Walnut Grove Area Site Improvements Project (Phase II).~~

4.16 Approval of award of contract for the Walnut Grove Area Site Improvements Project (Phase II) to the lowest bidder, Grade Tech Inc., in the amount of $764,900, with a 10% contingency fund in the amount of $76,500, and $11,000 for Project Permit and Testing Fees. Council District 7. (Planning, Building and Code Enforcement) - (Rules Committee referral 6/20/01)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 18, 2001, recommending approval of said contract, and related contingency, to the lowest bidder, Grade Tech Inc.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the award of said contract, and related contingency, to the lowest bidder, Grade Tech Inc., was approved and its execution authorized. Vote: 11-0-0-0.

Items 2.68, 4.11 and 4.17 were heard together.

2.68 Direction to the Administration to:

(a) Initiate, and refer to the 2001 Annual Review of the General Plan, a General Plan text amendment modifying the purpose of the Urban Reserve triggers;

(b) Direct the Administration to prepare a work plan and budget for a comprehensive update of the General Plan for the Fiscal Year 2001-02 Mid-Year Budget and FY 2002-03 Operating Budget; and

(c) Begin to consider the composition of a representative Task Force to participate in the preparation of the General Plan Update, with the intent of appointing the Task Force in FY 2001-02, to start work on a “vision” for the General Plan Update.

(Planning, Building and Code Enforcement)

(Rules Committee referral 6/20/01)

(This item heard concurrently with Items 4.11 and 4.17)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 22, 2001, recommending Council initiate, and refer to the 2001 Annual Review of the General Plan, a General Plan text amendment modifying the purpose of the Urban Reserve triggers; (2) Direct the Administration to prepare a work plan and budget for a comprehensive update of the General Plan for the Fiscal Year 2001-02 Mid-Year Budget and FY 2002-03 Operating Budget; and (3) Begin to consider the composition of a representative Task Force to participate in the preparation of the General Plan Update, with the intent of appointing the Task Force in FY 2001-02, to start work on a “vision” for the General Plan Update.

4.11 (a) Acceptance of the report regarding the status of the prerequisite conditions for the Coyote Valley and South Almaden Valley Urban Reserves (Housing Production Team Recommendation Numbers 8 and 9).

(b) Approval to initiate, and refer to the 2001 Annual Review of the General Plan, a text amendment to the San José 2020 General Plan which would:

(1) Retain an Annual Review of the General Plan for consideration of major Citywide policies and significant land use amendments with Citywide implications.

(2) Schedule two additional amendment hearings.

(3) Reserve a fourth amendment hearing opportunity for the Council to schedule as necessary (Housing Production Team Recommendation Number 6).

(Planning, Building and Code Enforcement)

(This item heard concurrently with Items 2.68 and 4.17)

Documents filed: (1) Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 7, 2001, recommending Council: accept the report regarding the status of the prerequisite conditions for the Coyote Valley and South Almaden Valley Urban Reserves (Housing Production Team Recommendation Numbers 8 and 9). (2) Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 22, 2001, recommending Council initiate and refer to the 2001 Annual Review of the General Plan, a text amendment to the San José 2020 General Plan which would (a) Retain an Annual Review of the General Plan for consideration of major Citywide policies and significant land use amendments with Citywide implications, (b) Schedule two additional amendment hearings, and (c) Reserve a fourth amendment hearing opportunity for the Council to schedule as necessary (Housing Production Team Recommendation Number 6).

4.17 Direct staff to bring forward necessary actions to:

(a) Maintain the triggers for the Central Coyote Urban Reserve, but make the planning triggers zoning triggers which would allow a Specific Plan to be developed. The Specific Plan Task Force shall be directed to include a requirement in the specific plan that would mandate 20 percent of all units be “deed restricted below market rate units.”

(b) Forward to the Rules Committee the following:

(1) Direct staff to continue a study of an inclusionary zoning ordinance.

(2) Direct staff to develop a fund to provide funds to a regional pool, matching funds put forward by any other Santa Clara County cities’ Redevelopment Agency above their 20% requirement.

(3) Direct staff to meet with stakeholders to gather input and review the positive and negative effects of a “just cause” ordinance.

(4) Direct staff to draft a policy that anytime we receive notification of a conversion of Federal affordable housing projects, that we would review the history of the project to determine if there were any other affordability restrictions placed upon the project at time of City approval to attempt to maintain the units as affordable.

(5) Authorize the Mayor to appoint a Task Force who would work for six months to develop recommendations related to a myriad of rental housing issues for the City Council’s review.

(6) Direct staff to develop a Rental Public Education and Outreach Program.

(7) Direct the City Attorney to develop an ordinance and a fee schedule to impose statutory penalties on landlords that illegally evict tenants solely to raise rent. Code enforcement and public education would be a large component of this.

(8) Authorize the Mayor to convene a community task force to look at alternative funding mechanisms for affordable housing countywide.

(9) Establish an internal task force of city departments to aggressively target and prosecute slumlords to improve housing conditions and safety in San José.

(Mayor) (Orders of the Day)

(This item heard concurrently with Items 2.68 and 4.11)

Documents filed: (1) Memorandum from Mayor Gonzales dated June 21, 2001, recommending Staff bring forward necessary actions to (a) Maintain the triggers for the Central Coyote Urban Reserve, but make the planning triggers zoning triggers which would allow a Specific Plan to be developed, with the Specific Plan Task Force directed to include a requirement in the Specific Plan that would mandate 20 percent of all units to be ‘deed restricted below market rate units’; and (b) Direct Staff to continue a study of an inclusionary zoning ordinance, develop a fund to provide funds to a regional pool, matching funds put forward by any other Santa Clara County Cities’ Redevelopment Agency above their 20 percent requirement, meet with stakeholders to gather input and review the positive and negative effects of a “just cause” ordinance, draft a policy that anytime the City receives notification of a conversion of Federal affordable housing projects, Staff would review the history of the project to determine if there were other affordability restrictions placed upon the project at the time of City approval to attempt to maintain the units as affordable, to develop a Rental Public Education and Outreach Program; and to establish an internal task force of City departments to aggressively target and prosecute slumlords to improve conditions and safety in San José; authorize the Mayor to appoint a Task Force to develop over six months recommendation related to a myriad of rental housing issues for City Council’s review; and direct the City Attorney to develop an ordinance and fee schedule to impose statutory penalties on landlords that illegally evict tenants solely to raise rents. (2) Correspondence dated June 26, 2001, from Robert and Louise Goodenough, opposing a “just cause” ordinance.

Discussion/Action: Mayor Gonzales stated recommendations in his memorandum dated June 21, 2001, are for the purpose of making San José a community where families of all income levels have better opportunities and that his recommendation to move triggers is limited to the Coyote Valley area and not to the South Almaden Reserve. He stated actions related to the Coyote Valley Area would move the triggers from planning triggers to construction triggers, with specific recommendations relating to the housing effort in the Mid-Coyote Valley Area, would establish an inclusionary zoning component for the Coyote Valley Urban Reserve, amd mandate 20% of all new housing to be set aside as affordable housing—which could yield an additional 5,000 affordable homes for San José families. He stated he recommends beginning a study to assess positive and negative impacts of creating a City-wide inclusionary zoning ordinance and a “Just Cause’ ordinance and report their findings to Council this summer. He recommended the development of penalties for landlords who evict tenants for the sole purpose of raising rents, and working to prevent conversion of Section 8 housing units to market rate units where possible to keep the existing supply of affordable housing and pursuing County-side funding for affordable housing. He recommended establishing three groups to address renters’ rights, enforcement of unsafe housing and bad landlords, a rental housing task force to study issues affecting renters, an internal Task Force of City departments to aggressively target and prosecute slum lords to improve housing conditions and safety in San José homes, a rental housing Task Force to study issues affecting renters, and a community Task Force to review alternative funding mechanisms for affordable housing Santa Clara County to do more of their fair share. He suggested creating a regional housing fund with San José’s Redevelopment Agency matching on a dollar-for-dollar basis any City’s Redevelopment Agency in Santa Clara County that contributes funds above their State mandated 20% for a regional affordable housing fund, noting that San José currently contributes approximately 30% of Redevelopment funds for housing, and recommends establishing a comprehensive public education and outreach program to ensure all renters and landlords know their rights under San José’s current rent control ordinance. Vice Mayor Shirakawa, Jr., moved approval of Mayor’s memorandum dated June 21, 2001, and Item 1 of the Staff report for Item 2.68, and to refer Item 2 of the Mayor’s memorandum directly to Staff. Council Member Chavez seconded the motion. Council Member LeZotte requested the Mayor provide a timeframe for the Specific Plan Task Force proposed in his memorandum. Council Member LeZotte suggested that at the appropriate time, prefereably during development of the Specific Plan for Coyote Valley, Staff explore the possibility of transferring development credits from Almaden to Coyote and not develop Almaden.

The following individuals addressed Council on this issue: Heide Wolf-Reid, Paul Stewart, and Rebecca Gallardo, Santa Clara Association of Realtors, Rudolf Herz, William Garbett, Kelly Crowley, Santa Clara Valley Audubon Society, Cleo Constantin, Kim Nguyen, Manager/Landlord Group, Julie Sachs, Ayshe Guraydin, Thomas Scott, San José Rental Property Owners, Kathy Thibodeaux, Tri County Apartment Association, Steve Schott, Citation Homes, Lily Tenes, PACT, Samantha Voorhees, Mary Driedger, Lorena Lopez, Gary Driedger, Jerome Ruddy, Neil Struthers, Building Trades Council, Benn Eifert, Greenbelt Alliance, Cristina Uriba, South Bay AFL-CIO Labor Council, Robert D. Goodenough, Michael Marens, Lloyd Williams, Plumbers & Fitters Union Local #393, Jane Hermann, Housing for All, John Singh, ACORN, Laurice Minton, CHAM, Ruth McKinney and Katherine Bock, Low Income Self Help Center, Marjorie Mancuse, and Craig K. Breon.

Council Member Dando stated she supports separating the South Almaden Urban Reserve from the Coyote Valley Urban Reserve because the South Almaden Reserve is isolated and there exists a sensitivity to open space and less development, whereas it has always been expected Coyote Valley would be densely developed and transit-oriented. She expressed concerns about inclusionary zoning and stated there are more creative ways of addressing affordable housing needs for the long term; however, she stated she could support the proposed study. She indicated many concerns about enacting a so-called “Just Cause” ordinance which could hinder the ability of good landlords to evict tenants who lower the standard of living in the neighborhoods by their actions. She stated the thirty-day notice provisions were necessary to being able to clean up areas under Project Crackdown. Since there has been such conflicting testimony heard today, she suggested Staff bring back quantitative cases of verified unjust evictions to assist Council in determining an appropriate response to the issue. She stated her concerns about the City’s level of service, especially in police and fire, would be better addressed after the Fire Master Plan is approved, and suggested including in the report the feasibility of adding fiscal neutrality fees. Council Member Reed stated he supports the Mayor’s recommendation not to create a “Just Cause” ordinance based on anecdotal eviction testimonies and supported an actual analysis of the issue by meeting with stakholders and gathering input before deciding on such an ordinance. He reiterated previous concerns about deterioriating levels of Police and Fire services, which should be a factor of any analysis of a Specific Plan for Coyote or any other areas. He clarified that the motion does not include recommendations 2 and 3 of Item 2.68. Council Member Cortese stated comments by property owner as well as tenant advocates acknowledge that abuses occur and expressed a commonality of interests, that he believes abuse of the 30-day notice process needs to be addressed immediately, but he has concerns about whether a “Just Cause” ordinance is the appropriate way to deal with the problem. He suggested one way of avoiding the 30-day notice procedures is for tenants to request leases rather than enter into month-to-month tenancies. Council Member Williams stressed the importance of securing accurate data on the issue of unfair eviction of tenants and encouraged the real estate industry to take the lead on rectifying these issues as the best way of solving the problem. He stated support for moving the triggers in Coyote Valley and suggested the issue of transfering construction credits from Almaden to the Coyote Reserve should be thoroughly studied in terms of impacts. Council Member Chavez suggested the importance of collecting verifiable data on evictions and at her request. Department of Parks, Recreation and Neighborhood Services Director Mark Linder stated Staff will compile reports from the Rental Disputs Program and other sources for report back to Council. In response to Council Member Chavez’s question, Acting Planning Director Joe Horwedel explained that the proposal today would initiate General Plan amendments that would allow for a Specific Plan for the Mid-Coyote Valley area to come back to Council in late fall of 2001, at which time the Specific Plan process would be instituted, which would take approximately 1-2 years to complete. Council Member Diquisto stated he would like to see more data regarding evictions and questioned whether the Tri-County Apartment Association and any tenant associations would have such data of actual cases available. He stated if the level of staffing in the Police and Fire Departments are not increased, efficiency will decrease as the City grows. Council Member Yeager stated the renter education program is needed, supported the Mayor’s direction on the “Just Cause” ordinance. Council Member Campos commented on the challenges of protecting the neighborhoods while ensuring tenants are treated justly and stated support for the educational outreach efforts. At Council Member Williams’ suggestion, Mayor Gonzales suggested referring the establishing of an anonymous hotline for renter complaints to the Renter Task Force. Mayor Gonzales thanked the audience for their comments and his colleagues on the Council for their support, and thanked Staff for their work on these vital issues of housing and growth in the City of San José. On a call for the question, the motion carried unanimously and Council approved the recommendations in Mayor Gonzales’ memorandum dated June 21, 2001, with Recommendation 2 referred directly to Staff; approved Staff recommendations dated June 7 and 22, 2001, (Item 4.11) recommending Council accept the Status report on the Urban Reserve Triggers and increasing General Plan review hearings, and approved Recommendation 1 of Staff report dated June 22, 2001 [Item 2.68(a)] recommending Council initiate and refer to the 2001 Annual Review of the General Plan a General Plan text amendment modifying the purpose of the Urban Reserve Triggers, as amended by the Mayor’s memorandum to limit the moving of the triggers to the Central Coyote Urban Reserve [Items 2.68(b)(c)]. Council gave additional direction to Staff to explore fiscal neutrality fees and data from the rental dispute program, and to refer to the proposed Rental Task Force the feasibility of establishing an anonymous hotline for renter complaints. Vote: 11-0-0-0.

RECREATION & CULTURAL SERVICES

~~Approval of a Memorandum of Understanding with the Bay Area Sports Organizing Committee.~~

5.3 Approval of a Memorandum of Understanding with the Bay Area Sports Organizing Committee regarding use of the Convention Center for the 2012 Summer Olympic Games. (Conventions, Arts and Entertainment)

Documents filed: Memorandum from Nancy Johnson, Director, Conventions, Arts and Entertainment, dated June 4, 2001, recommending approval of said Memorandum of Understanding.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the Memorandum of Understanding with the Bay Area Sports Organizing Committee regarding use of Convention Center for the 2012 Summer Olympic Games was approved and its execution authorized. Vote: 11-0-0-0.

~~Approval to fund various arts and cultural programs, projects, grants, and activities.~~

5.4 Approval of Arts Commission recommendation to:

(a) Allocate funds to the Office of Cultural Affairs for FY 2001-02 arts and cultural programs, projects, grants, and activities, in a total amount not to exceed $6,016,227; and

(b) Adopt a resolution authorizing the City Manager to negotiate and execute FY 2001-02 grant agreements as follows:

(1) Festival, Parade and Celebration Grant Agreements with 30 organizations for 38 events, in a total amount not to exceed $559,215; and

(2) Arts Grant Agreements with 58 organizations, in a total amount not to exceed $3,964,612.

(Conventions, Arts and Entertainment)

Documents filed: Memorandum from Nancy Johnson, Director, Conventions, Arts and Entertainment, dated June 4, 2001, recommending Council approve the Arts Commission recommendation, subject to approval of the FY 2001-02 Operating Budget, to allocate funds to the Office of Cultural Affairs for FY 2001-02, and adopt a resolution authorizing the City Manager to negotiate and execute certain FY 2001-02 grant agreements.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the Arts Commission recommendation funding the Office of Cultural Affairs for FY2001-02 was approved and Resolution No. 70513, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute the 2001-2002 Festival, Parade, and Celebration Grant Agreements and Arts Grant Agreements”, was adopted. Vote: 11-0-0-0.

5.5 (a) Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with Santa Clara Unified School District, in the amount of $4,017,860, to design, construct, and jointly operate a new Alviso Community Center for a period of twenty years commencing on the date of the District’s Board of Education’s final acceptance of project construction with the right to renew the term for three successive five-year terms;

(b) Accept donations in the total amount of $2,500,000 to develop the Alviso Community Center; from Cisco Systems, in the amount of $1,000,000; Legacy Partners, in the amount of $1,000,000; and Devcon Construction, Inc., in the amount of $500,000; and

(c) Adoption of the Fiscal Year 2000-01 appropriation ordinance and funding sources resolution amendments in the General Fund in the amount of $2,500,000.

CEQA: SCUSD Resolution No. 01-08, and additional CEQA resolution to be adopted. Council District 4. (Parks, Recreation and Neighborhood Services/City Manager’s Office)

Documents filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder and Budget Director Larry D. Lisenbee, dated June 4, 2001, recommending Council authorize the City Manager to negotiate said agreement with the Santa Clara Unified School District, approve the acceptance of said donations to develop the Alviso Community Center, and adopt the FY 2000-2001 appropriate ordinance and related revenue resolution amendments in the General Fund.

Discussion/Action: Council Member Reed moved Council approval of the proposed project subsequent to making the following Findings of Overriding Considerations: “The Final Environmental Impact Report for this Project identified project impacts regarding flooding and drainage as significant and unavoidable. However, approval of this Project will assist the City in meeting its goals of providing programs and services to citizens in the Alviso area of all ages and activities, ranging from preschoolers to seniors. The Project will help connect the residents of Alviso and North San José with these services, such as youth development, youth intervention and other programs developed in response to community needs. The Project also will provide Neighborhood Services to build increased capacity in this area for access to government services, thereby further enabling this community to assist itself. The need for these community services in this area is identified in the City’s Alviso Master Plan, Youth Services Master Plan and Aging Services Master Plan. Vice Mayor Shirakawa, Jr., seconded the motion. On a call for the question, the motion carried unanimously and Council made Findings of Overriding Considerations pertaining to the Alviso Community Center, approved the Staff recommendations and the acceptance of said donations from Cisco Systems, Legacy Partners, and Devcon Construction, Inc., to develop the Alviso Community Center; Resolution No. 70514, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate an Agreement with Santa Clara Unified School District for the Alviso Community Center Project in an Amount Not to Exceed $4,017,860”; Resolution No. 70514.1, entitled: “Resolution of the Council of the City of San José Making Certain Findings in Accordance with the California Environmental Quality Act Concerning Significant Effects, Mitigation Measures and Alternatives for the George Mayne Elementary School Gymnasium Alviso Community Center Project for Which an Environmental Impact Report was Prepared”; Resolution No. 70515, entitled, “A Resolution 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”; and Ordinance No. 26442, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26141 to Appropriate Moneys in the General Fund in the Amount of $2,500,000 for the New Alviso Community Center Project’ and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, were adopted. Vote: 11-0-0-0.

5.1 Report of the Education, Neighborhoods, Youth, and Seniors Committee (Partial) – June 18, 2001 - Council Member Chavez, Chair

Documents filed: Education, Neighborhoods, Youth and Seniors Committee partial report of June 18, 2001 [Item 5.1(e)].

(e) Request for direction and approval of proposed ordinance amending Chapter 17.72 of the San José Municipal Code as to the definition of blight (SJMC 17.72), minimum property maintenance standards on two-family and multi-family property, commercial and industrial property landscape requirements, and enforcement remedies, and request for direction and comments on landscape maintenance standards for single-family residential property. Attachment: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated May 11, 2001, recommending the Committee forward to the Council a recommendation that amendments to the provisions of Title 17.72 be made to address issues related to (a) The definition of blighted conditions; (b) Minimum property maintenance standards; (c) Commercial and industrial property landscape requirements; and (d) Enforcement remedies.

The Committee accepted the Staff report with the following directives to Staff: (a) Staff’s report Recommendation (Item 1) be forwarded to the full Council on June 26, 2001, and (2) a second recommendation (Item 2) be added, addressing the issue of including “single-family homes”, as well as Christmas lights, changing the language from “set back” to “front yard”, and returning to the Education, Neighborhoods, Youth and Seniors Committee on September 18, 2001, with the proposal.

Discussion/Action: See Item 5.9 for Council action taken on Item 5.1(e).

5.6 Adoption of a resolution amending the fees imposed under the Park Impact and Parkland Dedication Ordinances in order to establish a transition period for residential projects subject to Park Impact Ordinance after July 1, 2001. CEQA: Exempt. Council Districts 3 and 6. (Parks, Recreation and Neighborhood Services)

Documents filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated June 12, 2001, recommending adoption of said resolution.

Discussion/Action: Upon motion by Council Member Dando, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the Staff recommendation—with amendments recommended by Council Member Chavez, to (1) The Core should not be exempted in the next phase of the project but treated the same as the Frame; and (2) Replace $6,000 fee in Districts 3 and 6 with a graduated fee of $1500, effective for 18 months after which the fee would become equal to the rest of the zone—was approved, and Resolution No. 70516, entitled: “A Resolution of the Council of the City of San José Amending Resolution No. 68207 to Amend Fees Imposed Under the Park Impact and Parkland Dedication Ordinances to Establish a Transition Period for Residential Projects Subject to the Park Impact Ordinance After July 1, 2001”, was adopted. Vote: 11-0-0-0.

5.7 Adoption of a resolution authorizing the City to submit the four candidate sites for possible acquisition under the 20 Percent Funding Program to the Santa Clara County Open Space Authority. CEQA. Exempt. Council Districts 4 and 5. (Parks, Recreation and Neighborhood Services)

Documents filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated June 12, 2001, recommending adoption of said resolution.

Discussion/Action: Council Member Cortese inquired as to what process, if any, exists for Council to become involved in selecting acquisition sites. Park, Recreation and Neighborhood Services Director Linder stated in the past Council set policy and asked the Parks and Recreation Commission to select sites; however, he suggested as an appropriate topic for the October referral process, discussing a process whereby Council Members could submit candidates for the Commission to review and report back to the Council. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, Resolution No. 70517, entitled: “A Resolution of the Council of the City of San José Authorizing the Submission of Four Candidate Sites for Possible Acquisition Under the Santa Clara County Open Space Authority 20 Percent Funding Program”, was adopted. Vote: 11-0-0-0.

5.8 Adoption of a resolution authorizing the City Manager to negotiate and execute:

(a) An irrevocable offer of dedication of parkland from Cahill South L.L.C., for park purposes.

(b) A Parkland Agreement with Cahill South L.L.C. for Planned Development Zoning 98-03-027.

CEQA: Resolution No. 69355. Council District 6. (Parks, Recreation and Neighborhood Services)

Documents filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated June 12, 2001, recommending adoption of said resolution.

Discussion/Action: Upon motion by Council Member Yeager, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Resolution No. 70518, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate, Execute and Accept an Irrevocable Offer of Dedication of Parkland from Cahill South L.C.C. for Park Purposes”, was adopted. Vote: 11-0-0-0.

5.10 Adoption of a resolution approving the proposed renaming of the San Jose Ice Centre, Logitech Ice at San Jose. (City Manager’s Office)

(Rules Committee referral 6/20/01)

Documents filed: Memorandum from Senior Deputy City Manager, Darrell Dearborn, dated June 22, 2001, recommending adoption of said resolution.

Discussion/Action: Pete Campbell, Don Gralnek, San José Sharks, and William J. Garbett spoke on the issue. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Dando, and unanimously carried, Resolution No. 70519, entitled: “Resolution of the Council of the City of San José Approving the Renaming of the San José Ice Centre to Logitech Ice at San José”, was adopted. Vote: 11-0-0-0.

5.2 Acceptance of staff’s status report on the Neighborhood Libraries (Measure O) and Parks (Measure P) Bonds Projects. (City Manager’s Office)

Documents filed: (1) Memorandum from City Manager Del Borgsdorf, dated June 21, 2001, recommending Council adopt the Quarterly Status Report on the Parks and Recreation and Brand Library Bond Projects (Measures O & P). (2) Supplemental memorandum from Deputy City Manager for Capital Projects, Terry Roberts, dated June 25, 2001, providing amendments to Page 2 of the Staff Report on Parks and Recreation Facilities. (3) Report entitled: Status Report: Neighborhood Libraries & Parks Bond Projects. (4) Hard Copies of slide presentation made by Terry Roberts, Deputy City Manager for Capital Projects.

Discussion/Action: Terry Roberts, Deputy City Manager for Capital Projects, presented the Staff report and recommendation. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Reed, and unanimously carried, the Status Report on Neighborhood Libraries and Parks (Measures O/P) Bonds Projects was accepted. At Council Member Dando’s request, Staff was directed to coordinate projects on the Almaden Community Center and the Library to go forward as one project. Vote:11-0-0-0.

RECESS/RECONVENE

Following Oral Communications, the City Council recessed at 6:15 p.m. and reconvened at 7:07 p.m., Council Chambers, City Hall.

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

Absent: Council Members - None.

City Clerk, Patricia L. O’Hearn, stated there were no requests for continuances.

RECREATION & CULTURAL SERVICES

5.9 Approval of an ordinance amending Chapter 17.72 of the San José Municipal Code as to the definition of blight, minimum property maintenance standards for two-family and multi-family property, commercial and industrial property landscape requirements, and enforcement remedies. CEQA: Exempt. (Planning, Building and Code Enforcement) [Education, Neighborhoods, Youth and Seniors Committee referral 6/18/01 - Item 5.1(e)]

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 20, 2001, recommending Council adopt amendments to the provisions of Title 17.72.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. In response to Council questions about various issues pertaining to blight and how it would be addressed by the ordinance, Deputy Director of Code Enforcement, Steve Emslie, stated Staff will review those issues and report back through the Education, Neighborhoods, Youth and Seniors Committee in September with any recommended modifications to the ordinance. 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 on Item 5.1(e) were accepted; Staff directed to conduct outreach efforts and report back through the Education, Neighborhoods, Youth and Seniors Committee on feasibility of applying the landscape requirement to single-family residences and include the feasibility of instituting end-dates for removing holiday lights; and Ordinance No. 26443, entitled: “An Ordinance of the City of San José Amending Part 1 of Chapter 17.72 and Adding a New Part 1.5 to Chapter 17.72 to Amend the Definition of Blighted Property, to Add Minimum Standards for Maintaining Landscaping for Two-Family and Multiple-Family Dwellings, and to Make Other Clarifying Changes to the Definition of Blighted Property”, was passed for publication. Vote: 11-0-0-0.

TRANSPORTATION SERVICES

6.1 Traffic Calming Advisory Committee (Ad Hoc) – June 14, 2001

Council Member Reed, Chair

Documents filed: (1) Traffic Committee report of June 14, 2001. (2) Hard copies of slide presentations given by Staff to the Traffic Calming Advisory Committee.

(a) Report on Downtown Walkability. Attachment: Memorandum from Redevelopment Executive Director Susan F. Shick and Transportation Director Wayne Tanda, dated June 6, 2001, reporting on activities and actions to improve the walkability of the Downtown.

The Committee accepted the Staff report.

(b) Informational Status Report on One-way Couplet Streets. Attachment: Memorandum from Director of Transportation Wayne K. Tanda, dated May 31, 2001, providing a review of One-Way Couplet Streets.

The Committee accepted the Staff report.

(c) Review of NASCOP Program. Attachment: Memorandum from Director of Transportation Wayne K. Tanda, dated June 5, 2001, reviewing the NASCOP Program.

The Committee accepted the Staff report and agreed unamimously that community meetings or other public processes that demonstrate substantial support for NASCOP can be used in lieu of the petitioning process, and agreed to make 35 mph streets eligible for NASCOP if the Police Department and City engineers believe it will work.

(d) Review of Draft Traffic Calming Policy. Attachment: Memorandum from Director of Transportation Wayne K. Tanda, dated June 6, 2001, recommending the Traffic Calming Advisory Committee accept the Traffic Calming Policy and forward it to the City Council for adodption by resolution and rescinsion of the existing Traffic Calming Policy for Residential Neighborhoods.

The Committee accepted the Staff report, provided recommended changes are made; and recommended the item be cross-referenced for Council action on June 26, 2001.

Discussion/Action: See Item 6.11 for Council action taken.

(e) Oral Petitions - None.

(f) Adjournment - The Committee adjourned at 4:45 p.m.

Discussion/Action: Council Member Reed stated the Traffic Calming Ad Hoc Committee has held its last meeting. Council Member Cortese stated the Committee reached a consensus that one of the positive effects of this process was the level of community outreach done in order to implement the policy and agreed that the level of outreach be part of the presentation materials, if not part of the policy itself. Upon motion by Council Member Reed, seconded by Council Member Dando, and unanimously carried, the Traffic Calming Advisory Committee report and actions of June 14, 2001 approved, with Item 6.1(d) heard under Item 6.11, and at Council Member Dando’s request, Staff was directed to review the feasibility of dispersing the NASCOP vehicles in the four quadrants of the City and report back with a proposed plan. Vote: 11-0-0-0.

6.2 Report on bids and award of contract for the Traffic Signal Unit 00A Project to the low bidder, Brown & Fesler Inc., in the amount of $1,144,016. CEQA: Exempt. Council Districts 1, 5, 7, and 8. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 4, 2001, recommending award of said contract to the low bidder, Brown & Fesler, Inc.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the award of said contract to the low bidder, Brown & Fesler, Inc., was approved and its execution authorized. Vote: 11-0-0-0.

6.3 Report on bids and award of contract for the Traffic Signal Unit 00B Project to the low bidder, Brown & Fesler, Inc. in the amount of $996,290. CEQA: Exempt. Council Districts 5, 6 and 9. (Public Works)

Documents filed: Memoranda from Acting Director of Public Works, Rajeev Batra, dated June 4 and 19, 2001, recommending award of said contract to the low bidder, Brown & Fesler, Inc.

6.4 PUBLIC HEARING and adoption of a resolution conditionally vacating a portion of Bush Street. CEQA: Resolution No. 69355. Council District 6. (Public Works)

Documents filed: (1) Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 12, 2001, recommending Council hold a Public Hearing and adopt said resolution. (2) Proof of Publication of Resolution No. 70387 setting a public hearing to consider said vacation, executed on June 19, 2001, submitted by the City Clerk; and Affidavit of Posting of Notice of Vacation, dated June 13, 2001.

Discussion/Action: The Public Hearing was opened and there was no testimony from the floor. Upon motion by Council Member Yeager, seconded by Council Member Diquisto, and unanimously carried, the Public Hearing was closed and Resolution No. 70520, entitled: “Resolution of the Council of the City of San José to Conditionally Vacate a Portion of Bush Street”, was adopted. Vote: 11-0-0-0.

6.5 PUBLIC HEARING and adoption of a resolution vacating a portion of White Street and reserving a public service easement. CEQA: Resolution No. 69355. Council District 6. (Public Works)

Documents filed: (1) Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 12, 2001, recommending Council hold a public hearing and adopt a resolution approving said vacation and reserving a public service easement. (2) Proof of Publication of Resolution No. 70388 setting a public hearing to consider said vacation and reservation of public service easement, executed on June 19, 2001, submitted by the City Clerk; and Affidavit of Posting of Notice of Vacation, dated June 13, 2001.

Discussion/Action: The Public Hearing was opened and there was no testimony from the floor. Upon motion by Council Member Yeager, seconded by Council Member Cortese, and unanimously carried, the Public Hearing was closed and Resolution No. 70521, entitled: “Resolution of the Council of the City of San José to Vacating a Portion of White Reserve a Public Service Easement (PSE)”; was adopted. Vote: 11-0-0-0.

6.6 PUBLIC HEARING and adoption of a resolution vacating the light and air easement (building setback line) on Bascom Avenue and Elden Drive that lies within Parcel A (formerly lots 7, 8, 9, 10 and a portion of lot 6 of Tract No. 164). CEQA: ND. Council District 9. (Public Works)

Documents filed: (1) Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 19, 2001, recommending approval to vacate an easement at said location. (2) Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 4, 2001, recommending Council hold a public hearing and adopt said resolution. (3) Proof of Publication of Resolution No. 70386 setting a public hearing to consider said vacation of easement, executed on June 20, 2001, submitted by the City Clerk.

Discussion/Action: The Public Hearing was opened and there was no testimony from the floor. Upon motion by Council Member Diquisto, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the Public Hearing was closed and Resolution No. 70522, entitled: “Resolution of the Council of the City of San José to Vacating the Light and Air Easement (Building Setback Line) Adjacent to Bascom Avenue and Elden Drive”; was adopted. Vote: 11-0-0-0.

6.7 Adoption of a Parking Rate Resolution increasing parking rates at the San José McEnery Convention Center parking garage. Council District 3. (Transportation)

Documents filed: None.

Discussion/Action: This item was deferred to August 7, 2001.

6.8 Approval of an ordinance amending Section 11.96.070 of Chapter 11.96 of Title 11 of the Municipal Code to add Cape Buffalo Drive, between Berryessa Road and Commodore Drive, to the list of streets upon which commercial vehicles in excess of five (5) tons are prohibited. CEQA: Exempt. (Transportation)

Documents filed: Memorandum from Director of Transportation Wayne K. Tanda, dated June 19, 2001, recommending approval of said ordinance.

Discussion/Action: Upon motion by Council Member Reed, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Ordinance No. 26444, entitled: “An Ordinance of the City of San José Amending Chapter 11.96.070 of Chapter 11.96 of Title 11 of the San José Municipal Code to Prohibit Commercial Vehicles in Excess of 5 Tons on Cape Buffalo Drive Between Berryessa Road and Commodore Drive”, was passed for publication. Vote: 11-0-0-0.

6.9 Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement for consultant services with Kimley-Horn & Associates for an amount not to exceed $460,000 for the development of plans, specifications, and engineer's estimates and construction assistance for the Smart Intersections Program and design assistance for the new Traffic Management Center at the new Civic Center with a term ending June 30, 2003, and authorizing the Director of Transportation to extend the term for up to an additional 180 days, if necessary. CEQA: Exempt. (Transportation)

Documents filed: Memorandum from Director of Transportation Wayne K. Tanda, dated June 4, 2001, recommending adoption of said resolution.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Cortese, and unanimously carried, Staff was directed to coordinate the subject services with the Smart Parking Signage being implemented in the Downtown, at the request of Council Member Chavez, and Resolution No. 70523, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement with Kimley-Horn & Associates for the Smart Intersections Program and the New Traffic Management Center in an Amount Not to Exceed $460,000”, was adopted. Vote: 11-0-0-0.

6.10 Report on bids and award of contract for the 2000-2001 Street Resurfacing Measure A/B funded project to the low bidder, O’Grady Paving, Inc., in the amount of $10,340,849. CEQA: Exempt. (Public Works)

(Rules Committee referral 6/20/01)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 19, 2001, recommending award of said contract to the low bidder, O’Grady Paving, Inc.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the award of said contract to the low bidder, O’Grady Paving, Inc. Vote: 10-0-1-0. Absent: Campos.

6.11 Adoption of a resolution approving a new Traffic Calming Policy to replace the existing Traffic Calming Policy for residential neighborhoods, adopted by Resolution No. 69541.

[Traffic Calming Advisory Committee (Ad Hoc) referral 6/14/01 – Item 6.1(d)]

Documents filed: (1) Memorandum from Mayor Gonzales and Council Member Reed dated June 25, 2001, recommending Council approve a new Traffic Calming Policy. (2) Memorandum from Director of Transportation Wayne K. Tanda, dated June 19, 2001, recommending Council adopt a resolution approving a new Traffic Calming Policy. (3) Memorandum from Assistant to the City Manager Deanna Santana, dated June 21, 2001, reporting the Traffic Calming Advisory Committee’s acceptance of the Staff Report and referral to the full Council for action.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. At Council Member Chavez’s request, Staff was directed to review for report back to Council issues of adequate staffing and resource levels for the projected timelines, working with Council offices on the petition process, monitoring costs associated with school safety efforts, and including the goal of building strong neighborhood associations, with status reports on effectiveness of the program. Resolution No. 70524, entitled: “A Resolution of the Council of the City of San José Adopting a Revised City Council Policy Entitled ‘Traffic Calming’ to Replace the Existing Council Policy Adopted by Resolution No. 69541”, was adopted. Vote: 11-0-0-0.

ENVIRONMENTAL & UTILITY SERVICES

7.3 Approval of an agreement with ExPERT, Inc., for implementation of an Ultra-Low Flush Toilet Distribution Event Program for the period July 1, 2001 to September 10, 2002, in an amount not to exceed $1,475,000. (Environmental Services)

Documents filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated June 19, 2001, recommending approval of said agreement with ExPERT, Inc.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, said agreement with ExPERT, Inc., for said program was approved and its execution authorized. Vote: 11-0-0-0.

7.4 Approval of an agreement with ICF Associates, Inc., to provide advertising/public relations services and assist the City of San José with a smooth transition to Recycle Plus 2002, for the period July 1, 2001 through December 31, 2002, in an amount not to exceed $800,000. (Environmental Services)

Documents filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated June 7, 2001, recommending approval of said agreement with ICF Associates, Inc.

Discussion/Action: Upon motion by Council Member Dando, seconded by Council Member Chavez, and unanimously carried, said agreement with ICF Associates, Inc., was approved and its execution authorized. Vote: 11-0-0-0.

7.5 Adoption of a resolution shortening the review periods to seven days for environmental documents prepared under the California Environmental Quality Act for power plants not subject to the jurisdiction of the California Energy Resources Conservation and Development Commission that are proposed to be online by the summer of 2001. CEQA: Exempt. (Planning, Building and Code Enforcement)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 12, 2001, recommending adoption of said resolution.

Discussion/Action: The following individuals spoke on the subject: Olga Meydbray, Mike Bay, CARE, R. F. Williams, Jay Mendoza, Health & Environmental Justice Project, Annika Leet, Spartan Keyes Neighborhood, and William J. Garbett. Council Member Chavez asked for clarification on the shortened review period and Acting Director of Planning, Building and Code Enforcement Joe Horwedel explained that the change deals only with the circulation period before the environmental document and reflects the state guidelines, that the normal process of development permit and the public hearing notice will still be required. He stated a large number of the power generator units being proposed are in industrial districts without residential neighbors and in Staff’s view, the longer review period is not required. Council Member LeZotte expressed concern about reducing any type of environmental review that would allow the community an opportunity to comment on changes in their community, stated she did not see the urgency as justification for moving forward by 14 more days with only a 7-day comment period, and she does not support the motion. In response to questions by Council Member Williams, Acting Director Horwedel further clarified that Staff would continue to a complete analysis for a Negative Declaration, conducting noise and air quality analyses and addressing hazard material issues, and the proposed change would only shorten the comment period on the Negative Declaration to a circulation period of seven days rather than twenty. Council Member Yeager moved approval of the Staff recommendation. Vice Mayor Shirakawa, Jr. seconded the motion. Council Member Dando stated Council has been going in the direction of enabling more involvement of the community and this change goes in the opposition direction, and she is not in support of shortening the review period. In response to Mayor Gonzales’ question about the profile of applicants, Acting Director Horwedel described existing companies needing back up energy for their use in case of blackouts during peak time, which tend to be in industrial zoned areas, and stated Staff prohibits those generators, especially if diesel, from being used as a primary power source and City regulations prevent those generators from being utilized to obtain an interruptible power supply rate. Mayor Gonzales reminded Council that the only reason this recommendation is before Council is because several months ago Council was demanding action by Staff on issues important to the City’s economic future in an attempt to prevent off a summer crisis. He stated Staff would not propose any shortcuts that would threaten the environmental protection of neighborhoods and has only responded to Council’s request for review of processes that could be streamlined, and Staff has brought back a program that addresses a small number of generators in very specific areas in a very short period of time. If Council does not want to move in that direction and provide that opportunity to address the energy needs of those companies, he stated that is well within Council’s purview, but reiterated Staff has brought forth the proposal at Council’s direction. Council Member Williams stated he thinks the review process is needed and he will not support the reduced time period. Council Member Chavez stated in recognition of the fact that companies will need energy, suggested a mechanism whereby neighborhoods within some appropriate distance would require the longer review period, but where there are no residential areas within the determined distance, the shorter review period could be used. Acting Director Horwedel suggested using 1000 feet as the determinate and on City Attorney Richard Doyle’s advice and concurrence by the maker of the motion, Council Member Chavez amended to proposal to state that if a project is within 1000 feet of a residential area, the full 20-day review period is required and if there are no residences within 1000 feet, the 7-day review period could be used. On a call for the question, Council amended the Staff report to require that if the location of a proposed power plant is within 1000 feet of a residence, that the review period not be shortened, and Resolution No. 70525, entitled: “A Resolution of the Council of the City of San José to Exercise the Authorization Provided Under Executive Order D-26-01 of the Governor of the State of California to Shorten the Review Periods of Environmental Documents Under the California Environmental Quality Act for Certain Power Plants Proposed to be Online by Summer of 2001”, was adopted. Vote: 8-0-3-0. Noes: Dando, LeZotte, Williams.

7.6 (a) Adoption of a resolution authorizing the City Manager to negotiate and execute a cooperation agreement for Phase No. 2 of the Countywide Orthophoto Project with the City of San José, County of Santa Clara, and the Santa Clara Valley Water District, with City contributing an amount not to exceed $368,000, and authorizing the Director of Public Works to execute amendments to add Additional Partners.

(b) Adoption of a resolution authorizing the City Manager to negotiate and execute the following Phase No. 2 agreements after the cooperation agreement with the County of Santa Clara and the Santa Clara Valley Water District is fully executed and adequate funds are deposited with the City:

(1) An agreement with Triathlon, Inc. to provide orthorectified photos for a maximum amount of $983,000; and

(2) A consultant agreement with HJW GeoSpatial, Inc. to provide quality control services in an amount not to exceed $144,000.

(c) Adoption of the following appropriation ordinance and funding sources resolution amendments in the Construction Excise Tax Fund to recognize funds deposited by the County of Santa Clara and Santa Clara Valley Water District for payment of orthophoto related services:

(1) Increase the Earned Revenue Estimate by $700,000.

(2) Increase the Ortho Photo Project appropriation by $700,000.

(Public Works/City Manager’s Office)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, and Budget Director Larry D. Lisenbee, dated June 21, 2001, recommending approval of said cooperation agreement between the City of San José, County of Santa Clara, and the Santa Clara Valley Water District, adoption of said resolution authorizing the City Manager to negotiate and execute agreements with Triathlon, Inc., and HJW GeoSpatial, Inc., and adoption of the said appropriation ordinance and related revenue resolution amendments.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez,. and unanimously carried, Resolution No. 70526, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Cooperation Agreement with the County of Santa Clara and the Santa Clara Valley Water District for Phase No. 2 of the Countywide Orthophoto Project”; Resolution No. 70527, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute Phase No. 2 Agreements with Triathlon, Inc., in an Amount Not to Exceed $983,000, and HJW Geospatial, Inc., in an Amount Not to Exceed $144,000 for the Countywide Orthophoto Project”; and Ordinance No. 26445, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26415 to Appropriate Moneys in the Construction Excise Tax Fund in the Amount of $700,000 for the County-Wide Orthophoto Project; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”; and Resolution No. 70528, entitled, “A Resolution of the City of San José Amending Resolution No. 70438 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2001-2002 to Adjust Revenues in the County-Wide Orthophoto Fund”, was adopted. Vote: 11-0-0-0.

7.7 Report on bids and award of contract for the Forest - Rosa Sanitary Sewer Supplement Rehabilitation Phase III Project to the lowest responsive bidder, Gelco Services, Inc., in the amount of $1,247,088, and approval of a contingency in the amount of $125,000. CEQA: Exempt. Council District 6. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated June 4, 2001, recommending award of said contract, with related contingency, to the lowest responsive bidder, Gelco Services, Inc.

Discussion/Action: Upon motion by Council Member Yeager, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the award of said contract with related contingency to the lowest responsive bidder, Gelco Services, Inc., was approved and its execution authorized. Vote: 11-0-0-0.

7.8 (a) Direction to the City Manager to begin negotiations related to energy generation opportunities on City of San José lands and/or facilities with the following companies and return to Council in August with proposed agreements:

(1) For a conventional power plant:

(a) Calpine Corporation for a potential power generation opportunity of 90 MW at the Las Plumas site and 180-270 MW on Treatment Plant Lands.

(b) Rolls Royce Power Ventures Inc. for a potential peaking power generation opportunity of 90 MW on Treatment Plant Lands.

(2) For Renewable Energy Systems:

(a) Powerlight Corporation – For various facilities and locations as identified within the RFQ using a variety of solar PV systems: roof top, parking shade structures, and single-axis tracking systems (ground mounted) for a potential total of 7MW.

(b) Duke Solar- for Treatment Plant lands (7MW), Singleton landfill (100 kW), for a hybrid power plant combining waste heat and solar peaking service, and other sites as determined for electricity displacement with solar powered absorption chillers.

(c) Schott Applied Solar – for the Treatment Plant (2 MW-ground mount solar system), Municipal Stadium (750 kW-parking shade) and Central Yard (500kW roof mount).

(d) Global Solar – Phase I could involve the use of various solar system technologies for the Treatment Plant (400 kW to 1.2 MW), Singleton Landfill (300-400 kW), and Lake Cunningham (300-400 kW), and the Story Road Landfill (100 kW). Phase II would utilize roof mounted and parking cover mounted systems for the other sites as listed in the RFQ (West Yard, Mabury Service Yard, Market Street Parking Garage, and Compaq Sports Arena).

(e) Kyocera Solar – Installations of 100kW increments for all of the sites identified in the RFQ using solar shade structures, ground mounted tracking systems, and fixed arrays.

(b) Direction to the City Manager to discontinue activities related to land leases for transportable peaker power plants due to lack of response, availability, and related environmental issues.

(c) Direction to the City Manager to develop and release a Request for Proposal (RFP) by September 2001 for a large power plant (500+ MW) in Treatment Plant Lands and explore potential RFP partnership opportunities with Silicon Valley Power.

(Environmental Services) (Deferred from 6/19/01 – Item 7.3)

Documents filed: (1) Memorandum from Mayor Gonzales and Council Members Campos, Chavez and Reed, dated June 22, 2001, recommending Council direct the Administration to (a) Pursue further negotiations with qualified renewable regeneration companies, (b) Not proceed with the Staff recommendation to direct the City Manager to begin negotiations related to energy generation opportunities on City of San José lands and/or facilities for conventional power plants, and (c) Proceed with the following activities on the Water Pollution Control Plant property: (i) Site analysis, (ii) Community Outreach, and (iii) RFP Preparation. (2) Memorandum from Director of Environmental Services, Carl W. Mosher, Director of Planning, Building and Code Enforcement, James R. Derryberry, and Acting Director of General Services, Fran B. McVey, dated June 14, 2001, recommending Council direct the City Manager to (a) Begin negotiations related to energy generation opportunities on City of San José lands and/or facilities with specified companies and return to Council in August with proposed agreements for a conventional powers plant and for renewable energy systems; and direct the City Manager to (b) discontinue activities related to land leases for transportable peaker power plants due to lack of response, availability and related environmental issues, and (c) Develop and release an Request for Proposal by September 2001 for a large power plant on Treatment Plant Lands and explore potential RFP partnership opportunities with Silicon Valley Power. (3) Correspondence dated June 25, 2001, from Valli Shaarpe-Geisler, expressing opposition to the proposed project.

Discussion/Action: Mayor Gonzales introduced the recommendations in his memorandum, co-signed by Council Members Campos, Chavez and Reed, dated June 22, 2001, which directs Staff to review energy opportunities on City-owned land. He stated the recommendation would direct Staff to pursue further negotiations for qualified renewable energy generation companies, not to proceed with the Staff recommendation to direct the City Manager to begin negotiations related to energy generation opportunities on City-owned lands and/or facilities for conventional power plants, and to proceed with a site analysis, community outreach, and preparation of an RFP for the Water Pollution Control Plant properties. He noted the recommendations all relate to the Smart Energy Plan and, by focusing on both generation and conservation; the City organization has achieved a twelve percent reduction through conservation and, with the Metcalf facility and today’s recommendations, Council will take the lead in addressing the energy crisis. He stated the Smart Energy Plan focuses on siting criteria that calls for appropriate technology to be placed in appropriate locations though out the community. He stated the proposal provides an exciting opportunity for renewable energy and places the City of San José on the cutting edge of alternative energy sources, and the RFP for the Water Pollution Control plan provides an opportunity for unique partnerships with both private and public sector agencies. He stated any power plant built on City property must be built with technology to protect the health of residents and workers and the RFP should focus on criteria like Best Technology Available and Environmental Impact Information, must include specifications to assure that any power plant will be built and operated at the lowest pollution levels achievable, and insure extensive community outreach. He stated he is pleased with the progress to date as no city in Silicon Valley has done as much San José in addressing not just its own energy needs, but those of the region, and urged his colleagues to support his recommendations and the Staff report.

Regarding the Water Pollution Control Plant Property, Council Member Reed pointed out that previous Council direction specified that Staff should consider only sites east of Zanker Road, and moved approval of the Mayor and Council Member’s memorandum dated June 22, 2001 and of the Staff report dated June 14, 2001, as amended by the Mayor’s memorandum. Council Member Chavez seconded the motion. The following individuals spoke on the issue: William J. Garbett, Olga Meydbray, Jay Mendosa, Health & Environmental Justice Project, Annika Leet, Maria Mustomen, Lisa Jensen, University Neighborhood Coalition, Jill Wirtjes, Spartan Keyes Neighborhood Association. Council Member Dando stressed for the record that what should be addressed is the newest and cleanest technology available. On a call for the question, Council approved the Staff report dated June 14, 2001, as amended by the recommendations by Mayor Gonzales and Council Members Campos, Chavez and Reed, dated June 22, 2001, which direct the Administration to: (1) Pursue further negotiations with qualified renewable energy generation companies; (2) Not proceed with the Staff recommendation to direct the City Manager to begin negotiations related to energy generation opportunities on City of San José lands and/or facilities for conventional power plants; and (3) Proceed with the following activities on the Water Pollution Control Plant Property: Site Analysis, Community Outreach, and RFP Preparations, as specified therein. Vote: 11-0-0-0.

7.10 Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with Economic and Social Opportunities Inc. for an amount not to exceed $1,000,000, to establish and administer a program for the period July 1, 2001 through June 30, 2002 providing:

(a) Financial assistance for energy bill payments to eligible residents of San José as defined by the California Low Income Home Energy Assistance Program guidelines;

(b) Energy efficiency education, audits, and improvements to eligible San José residents as defined by the City of San José Community Development Block Grant guidelines.

(Environmental Services)

(Renumbered from Item 2.1)

Documents filed: See Item 2.11 for documents filed.

Discussion/Action: Carl Moser, Director of Environmental Services, presented the Staff recommendations. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, Resolution No. 70529, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement with Economic and Social Opportunities, Inc., to Establish and Administer a San José Home Energy Bill Assistance and Energy Efficiency Program, in an Amount Not to Exceed $1,000,000, for the Period from July 1, 2001, Through June 30, 2002”, was adopted. Vote: 11-0-0-0.

AVIATION SERVICES

8.1 Approval of the third amendment to the agreement for Airport Bus Service with the Santa Clara Valley Transportation Authority, extending the term of the agreement from July 1, 2001 to June 30, 2002, in an amount not to exceed $1,500,000. CEQA: Resolution No. 67380. (Airport)

Documents filed: Memorandum from Director of Aviation, Ralph G. Tonseth, dated May 21, 2001, recommending approval of a third amendment to said agreement with the Santa Clara Valley Transportation Authority.

Discussion/Action: Upon motion by Council Member Williams, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the third amendment to said agreement with the Santa Clara Valley Transportation Authority was approved and its execution authorized. Vote: 11-0-0-0.

8.2 Adoption of a resolution authorizing the City Manager to negotiate and execute a first amendment to the agreement with Corlett, Skaer & DeVoto Architects, Inc., for consultant services for the initial assessment and acoustical treatment design of approximately 300 dwellings in the Guadalupe/Washington area, increasing compensation by $1,400,000, from $983,500 to an amount not to exceed $2,383,500. CEQA: Resolution No. 67380. (Airport)

Documents filed: Memorandum from Director of Aviation, Ralph G. Tonseth, dated May 29, 2001, recommending adoption of said resolution.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, Resolution No. 70530, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a First Amendment to the Agreement with Corlett, Skaer & DeVoto Architects, Inc., for Consultant Services for the Initial Assessment and Acoustical Treatment Design of Approximately 300 Dwellings in the Guadalupe/Washington Area, Increasing the Compensation by $1,400,000, for a Total Not to Exceed Compensation Amount of $2,383,500”, was adopted. Vote: 10-0-1-0. Absent: Reed.

8.3 Adoption of a resolution authorizing the Director of General Services to:

(a) Execute a three (3) year agreement, with Ascom Transport Systems for maintenance services for the Airport Parking Revenue Control Equipment, for a total first year cost of $400,000, and subsequent two years with compensation adjustments based on the Consumer Price Index, not to exceed 7% per year and contingent upon Council appropriation of the funds each year;

(b) Execute two (2) two year options to renew with compensation adjustments based on the Consumer Price Index not to exceed 7% per year and contingent upon Council appropriation of the funds for each year.

CEQA: Resolution No. 67380. (Airport/General Services)

Documents filed: Memorandum from Director of Aviation, Ralph G. Tonseth, and Acting Director of General Services, Francis B. McVey, dated May 21, 2001, recommending adoption of said resolution.

Discussion/Action: Upon motion by Council Member Yeager, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Resolution No. 70531, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of General Services to (A) Execute a Three-Year Agreement with Ascom Transport Systems for Maintenance Services for the San José International Airport Parking Revenue Control System, for a Total First Year Cost of $400,000, and (B) Execute Two Two-Year Options to Renew the Agreement”, was adopted. Vote: 10-0-1-0. Absent: Reed.

8.4 (a) Adoption of a resolution by the City Council:

(1) Authorizing the issuance of tax-exempt, fixed-rate City of San José General Airport Revenue Bonds (the “Series 2001A Bonds”) in the not-to-exceed aggregate principal amount of $170 million to be sold through a negotiated sale to fund the costs associated with improvements to Runway 30R and Runway 30L at San José International Airport.

(2) Authorizing and directing the execution of certain financing documents, including the Master Trust Agreement and other related documents, authorizing the negotiation of the sale of bonds and the execution of the Bond Purchase Agreement, approving the Preliminary Official Statement, and authorizing and directing certain related actions in connection with the issuance of the Series 2001A Bonds.

(3) Authorize the Director of Finance to enter into one or more guaranteed investment agreements for the investment of bond proceeds for the Series 2001A Bonds, which would be in addition to the three projects approved by Council on September 12, 2000 as part of the guaranteed investment agreement pilot program.

(4) Authorizing the City Manager to negotiate and execute the first amendment to the agreement with Fullerton & Friar, Inc. and Public Resources Advisory Group for financial advisory services related to the issuance of the Series 2001A Bonds, to increase the compensation by $45,000, to an amount not to exceed $205,000.

(b) Adoption of a resolution by the City Council authorizing the Director of Finance to appoint Bankers Trust as successor Issuing and Paying Agent for the Airport’s Commercial Paper program adopted by the City Council on November 2, 1999.

(Finance/Airport) [Finance and Infrastructure Committee referral 6/13/01 – Item 3.3(e)]

Documents filed: (1) See Item 3.3(e) for Staff report and recommendations. (2) Supplemental memorandum from Finance Director Scott P. Johnson, dated June 20, 2001, recommending adoption of a resolution authorizing the City Manager to negotiate and execute the first amendment to the agreement with Fullerton & Friar, Inc. and Public Resources Advisory Group for financial advisory services related to the issuance of the Series 2001A Bonds, to increase the compensation by $45,000, to an amount not to exceed $205,000. (3) Supplemental memorandum from Finance Director Scott P. Johnson, and Aviation Director Ralph Tonseth, dated June 19, 2001, providing the draft Preliminary Official Statement for City of San José General Airport Revenue Bonds as described in the June 4,m 2001 Staff report.

Discussion/Action: Upon motion by Council Member Yeager, seconded by Council Member Chavez, and unanimously carried, Resolution No. 70532, entitled: “Twelfth Supplemental Resolution Approving the Form of a Master Trust Agreement and Amending and Restating Resolution No. 57794, As Previously Amended and Supplemented, in the Form of Such Master Trust Agreement; Approving the Forms of First Supplemental Agreement, Preliminary Official Statement, Bond Purchase Agreement and Continuing Disclosure Agreement, Providing for the Issuance of City of San José Airport Revenue Bonds, Series 2001A in a Principal Amount in an Amount Not to Exceed $170,000,000; Prescribing the Terms, Conditions and Form of Said Series of 2001A Bonds; and Authorizing and Approving Other Related Actions”; and Resolution No. 70533, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of Finance to Appoint Bankers Trust as the Successor Issuing and Paying Agent for the Airport’s Commercial Paper Program”, were adopted. Vote: 10-0-1-0. Absent: Reed.

8.5 Approval of the sixth amendment to the consultant agreement with PB Aviation, Inc. for the program management, construction management, design management, and runway design for the Airport Master Plan, increasing the compensation by $11,100,000, from $18,450,000 to a total agreement amount not to exceed $29,550,000, and extending the term of the agreement by one (1) year from February 1, 2003 to February 1, 2004. CEQA: Resolution No. 67380. (Public Works/Airport)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, and Aviation Director Ralph Tonseth, dated June 4, 2001, recommending approval of a sixth amendment to said agreement with PB Aviation, Inc.

Discussion/Action: Upon motion by Council Member Yeager, seconded by Council Member Chavez, and unanimously carried, the sixth amendment to said agreement with PB Aviation, Inc., was approved and its execution authorized. Vote: 10-0-1-0. Absent: Reed.

8.6 Adoption of a resolution authorizing the City Manager to negotiate and execute a first amendment to the agreement with Kimley-Horn and Associates, Inc. for design services for the Runway 30L Reconstruction Project at the San José International Airport, increasing the compensation by $1,150,000, from $3,000,000 to an amount not to exceed $4,150,000, and extending the term of the agreement from December 31, 2001 to December 31, 2002. CEQA: Resolution No. 67380. (Public Works/ Airport)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, and Aviation Director Ralph Tonseth, dated June 4, 2001, recommending adoption of said resolution.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, Resolution No. 70534, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a First Amendment to the Agreement with Kimley-Horn and Associates, Inc., for Design Services for the Runway 30L Reconstruction Project at the San José International Airport, Extending the Term Through December 31, 2002, and Increasing Compensation by $1,150,000 for a Total Amount Not to Exceed $4,150,000”, was adopted. Vote: 10-0-1-0. Absent: Reed.

PUBLIC SAFETY SERVICES

9.1 Acceptance of the Fire Department Strategic Plan for use as a foundation for current and future Fire Department service improvements and related funding decisions. (Fire) (Deferred from 6/5/01 – Item 9.1)

Documents filed: None.

Discussion/Action: This item was deferred to August 2001.

7.9 Acceptance of staff's report and direction to staff to proceed with the San José Municipal Water System Request for Proposals for the long term lease or operation of the System. (City Manager's Office)

(Deferred from 6/19/01 – Item 7.5)

Documents filed: (1) Memorandum from Mayor Gonzales and Council Members Reed, Cortese, Chavez and Campos, dated June 25, 2001, recommending Council approve the proposed Request for Proposal (RFP) for the Municipal Water System with the following revisions: (a) Include in the RFP the ability for potential bidders of the system to submit proposals that are consistent with the overall principal guidelines and include additional considerations to the requirements in the RFP as they deem appropriate; (b) Expand the language in the RFP to clearly describe the right of first refusal by City employees, within the City’s Competition Policies; and (c) Add to the information in the RFP a requirement for labor peace similar to the language utilized in the Recycle Plus! RFP. (2) Memorandum from Senior Deputy City Manager, Darrell Dearborn, dated June 13, 2001, recommending Council (1) Approve a framework and principles in the report and direct the City Manager to release an Request for Proposal (RFP) to solicit proposals to (a) Lease the Municipal Water System, or (b) Operate the System under a management contract, or both, and (2) Direct the Administration to prepare a Management Plan for continued operation of the System by employees of the Environmental Services Department. (3) Memorandum from Assistant to City Manager, Deana Santana, dated June 14, 2001, transmitting copies of previous reports pertaining to issuing an RFP for lease or management of the Municipal Water System.

Discussion/Action: Senior Deputy City Manager Darrell Dearborn gave the Staff presentation. Council Member Chavez suggested the proposal evaluation team include people from other cities with similar experience and by someone from the City’s ongoing competition policy teams, and to focus on what kinds of efficiencies could be derived from having a private company manage the system versus City employees. She moved approval of the Staff recommendation and memorandum dated June 25, 2001 by Mayor Gonzales and Council Members Reed, Cortese, Chavez and Campos, with Recommendation 3 of the memorandum to direct Staff to review the feasibility of a neutrality agreement as part of the labor peace component. Council Member Reed seconded the motion. Council Member Williams asked how the Municipal Water Company’s rates compare with other water companies and asked what the impacts would be if the City found it necessary to terminate an agreement for default, and what the next steps would be. Council Member Dando expressed concerns about having a level playing field and referenced a letter she had received from one company about long standing issues with the City and any impact those issues could have on their participation in the RFP because of the stipulation that conversations between the City and responders is precluded. Deputy Director Dearborn stated any settlement discussions over existing disputes or litigation can and should be able to proceed notwithstanding the RFP process. Council Member Dando suggested it would be important to resolve the issues before the RFP process since the uncertainties over the response from the PUC that would affect who will ultimately service the Edenvale and Coyote Valley areas and the impact that determination would have on the responders. She expressed concerns about whether private companies, which may not have audited financials, would be excluded because of that requirement of the RFP. Deputy Director Dearborn stated the RFP document invites companies to propose alternative terms where applicable and stated that clause in the RFP can be used by any proposer. Regarding the issue of settlement discussions, City Attorney Richard Doyle advised that such discussions would be seen as independent from the RFP process, that the concern about allowing discussions with a proposer is to avoid the potential for insider information or advantage over other proposers. He stated that his office has not been approached for any form of settlement discussions by either the referenced company or their attorneys, and stressed the City is willing to enter into discussions on that limited issue. William J. Garbett, Issa Ajlouny, and R.F. Williams spoke on the issue. Council Member Yeager stated he cannot support going out for an RFP on the system because he thinks it is a valuable resource the City should keep and not outsource, citing concerns that rates could go up and about the amount of money being spent on this process. Council Member LeZotte stated she has not supported outsourcing the system in the past and will not support the motion because of all the unanswered questions. Council Member Dando stated she will support the motion in spite of concerns about costs and stressed the importance of proceeding with caution and with ensuring a equal opportunity for companies to participate. On a call for the question, the motion carried, and Council approved the Staff recommendations dated June 13, 2001, and recommendations dated June 25, 2001 by Mayor Gonzales and Council Members Reed, Cortese, Chavez and Campos, with the amendment that the recommendation pertaining to labor peace include a neutrality agreement, and directed Staff to consult other cities and the City’s competition policy team as part of the assessment process, to review alternatives to requiring audited financials from responders. Vote: 9-2-0-0. Noes: Yeager, LeZotte

Closed Session Report

City Attorney Doyle disclosed the following Closed Session actions of June 26, 2001:

A. Authority to File an Appeal in Litigation:

1. Case Name: Simpson v. City of San José, et al.

Adverse party or parties: Simpson

Substance of litigation: Civil rights action for an alleged unlawful detention.

Council Vote: Ayes: Campos, Cortese, Dando, Diquisto, LeZotte, Reed, Shirakawa, Jr., Williams, Yeager; Gonzales.

Noes: None.

Absent: Chavez.

Abstain: None.

PUBLIC HEARINGS

11.1 PUBLIC HEARING and adoption of a resolution authorizing the reorganization of territory designated as Riverside No. 49, which involves the annexation to the City of San José of 10.47 acres of land, located at the westerly side of Monterey Highway, between Metcalf and Blanchard Roads, and the detachment of the same from the Central Fire Protection District and County Library Service Area. CEQA: Resolution No. 65459. (Planning, Building, and Code Enforcement)

Documents filed: (1) Memoranda from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 6 and 21, 2001, recommending Council hold a public hearing and adoption said resolution. (2) Public Hearing Notice dated June 6, 2001, and Proof of Publication, executed June 15, 2001, submitted by the City Clerk.

Discussion/Action: William J. Garbett and M. Keboyd, CARE, spoke on the issue. Council Member Williams stated that consistent with his previous position on the proposed use of the property, he is voting against the proposal. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Cortese, and unanimously carried, Resolution No. 70535, entitled: “Resolution of the Council of the City of San José Ordering the Reorganization of Certain Inhabited Territory Designated as Riverside No. 49 Subject to Liability for General Indebtedness of the City”, was adopted. Vote: 8-1-2-0. Absent: Campos, Chavez. Diquisto. Noes: Williams.

11.2 PUBLIC HEARING ON CONFORMING REZONING of the property located at the west side of Old Oakland Road, approximately 400 feet southerly of Brokaw Road (1633 Oakland Road), from HI-Heavy Industrial Zoning District to IP-Industrial Park and OS-Open Space Zoning District, to allow industrial uses and open space uses on 17.98 gross acres. (Markovitz & Fox, Owner/Developer). CEQA: Negative Declaration.

C 01-04-050 - District 4

Documents filed: (1) Staff Report by the Department of Planning, Building and Code Enforcement, dated June 4, 2001, on C-01-04-050 and recommending approval of Conforming Rezoning of said property to IP Industrial Park and OS-Open Space Zoning District on 17.98 gross acres. (2) Supplemental memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 15, 2001, transmitting a memorandum from the Santa Clara Valley Water District for inclusion in the Staff Report. (3) Supplemental memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 21, 2001, transmitting a revised written legal description and plat map that clarifies the riparian boundaries to be rezoned to OS-Open Space Zoning District. (3) Public Hearing Notice dated June 1, 2001, and Proof of Publication, executed June 8, 2001, submitted by the City Clerk.

Discussion/Action: Upon motion by Council Member Reed, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Ordinance No. 26446, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated at the West Side of Old Oakland Road Approximately 400 Feet Southerly of Brokaw Road (1633 Oakland Road)”, was passed for publication. Vote: 9-0-2-0. Absent: Campos, Chavez.

11.3 PUBLIC HEARING ON CONFORMING REZONING of the property located at the east side of N. Fifth Street, approximately 50 feet north of E. Saint James (216 N. Fifth Street), from CG General Commercial Zoning District to R-2 Residence Zoning District, to allow the use of a duplex for residential purposes on 0.13 gross acres. (Barry Nowak, Owner; San José Redevelopment Agency, Developer). CEQA: Resolution No. 65459.

C 01-06-064 - District 3

Documents filed: (1) Staff Report by the Department of Department of Planning, Building and Code Enforcement for File Number C 01-06-064 to rezone said property to R-2 Residential Zoning District on 0.13 gross acres. (2) Public Hearing Notice dated June 4, 2001, and Proof of Publication, executed June 8, 2001, submitted by the City Clerk.

Discussion/Action: Upon motion by Council Member Chavez, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, this item was dropped from the agenda. Vote: 11-0-0-0.

7.1 (a) Adoption of a resolution approving a cooperation agreement with Calpine/Bechtel in connection with the proposed Metcalf Energy Center power plant, including authority for the City Manager to approve certain construction agreements for the construction of recycled water and Municipal Water improvements.

(b) Approval of an ordinance amending Sections 15.16.830 and 15.16.840 of Chapter 15.16 of the San José Municipal Code to permit Council approval of agreements for the installment payment of Sanitary Sewer Connection Fees and Sewage Treatment Plant Connection Fees under limited circumstances.

CEQA: California Energy Commission Final Staff Assessment; Resolution No. 69957.- (City Manager's Office/City Attorney's Office)

Documents filed: (1) Memorandum from Senior Deputy City Manager, Darrell Dearborn, dated June 22, 2001, recommending Council approve a cooperation agreement with Calpine/Bechtel in connection with the proposed Metcalf Energy Center power plant, including authority for the City Manager to approve certain construction agreements for the construction of recycled water and Municipal Water improvements and approve agreements for the installment payment of Sanitary Sewer Connection Fees and Sewage Treatment Plan Connection Fees under limited circumstances. (2) Letter from Logan & Powell, L.L.P., dated June 26, 2001, protesting approval of the proposed cooperation agreement with Calpine/Bechtel in connection with the proposed Metcalf Energy Center power plant, on behalf of Great Oaks Water Company. (3) Correspondence from Rich & Sue Martinsky, dated June 25, 2001, and undated letter from Debbie Drysiak, opposing the proposed Metcalf Energy Center.

Discussion/Action: Senior Deputy City Manager Darrell Dearborn gave the Staff presentation and stated that he and Deputy City Attorney Bill Hughes, Environmental Services Director Carl Mosher and Mayor’s Budget and Public Policy Director Joe Guerra have implemented Council direction of June 5, 2001, to set out the terms and conditions of the construction of the power plant and the recycled water line to serve it. He stated the cooperation agreement before Council today generally incorporates those terms and conditions and relates the preconditions that must be satisfied before the cooperation agreement can be effective, i.e., that the California Energy Commission (CEC) must issue the permit to approve the plant, and Calpine/Bechtel must give written notification they intend to build the plant after reviewing all the conditions imposed by the CEC, and Council must approve a financing plan for construction of the recycled water pipeline and the City Manager must execute construction agreements for the facilities called for by the development. He stated the last provision relates to noise and is different in terms of its wording but implements the sense and intention of the parties to the business terms and provides that the noise standard at the project either 55 DNL at the property line of the Coyote Valley Research Park immediately to the south of the residential property abutting the project, or 55 degrees, or a stricter standard if contained in the final decision of the CEC; the more stringent of the two standards is imposed by the cooperation agreement. Pertaining to the 25% reduction in start-up, Council Member LeZotte requested an analysis of what would be best in terms of air quality, and expressed her preference that there be a 25% reduction in cold start-ups. Deputy City Attorney responded that in negotiations with the City, Calpine/Bechtel was unwilling to accept a separate 25% of hot and 25% of cold start-up and the City was unable to negotiate anything that was restrictive on the basis of the difference between hot and cold start-ups. Council Member LeZotte stated Calpine/Bechtel would not agree to her request for an oxidation catalyst, which now is required of them by the California Energy Commission. Council Member LeZotte stated the CEC is requiring that the Bay Area Air Quality Management District (BAAQMD) monitors for this plant be looked at three times a year rather than annually, and she requested requiring the City’s two monitoring stations have that same determination. Deputy City Attorney Hughes advised that the agreement states the monitors will be operated and used under the same protocol as BAAQMD uses and would include the same number of monitoring events as on the other monitoring stations, but the language does not reference CEC requirements specifically, and if Council directs, Staff can propose to Calpine/Bechtel that such language be added to the agreement. Council Member LeZotte stated since the CEC is requiring BAAQMD monitoring be done more than annually which is the norm, the other monitors should be on the same system. Council Member Dando stated there is a question as to whether the City should continue to invest above the $240 million already invested in recycled water when there may be other alternatives and since there are entities who expressed interest in building the pipeline without charge to the City, Staff should explore those possibilities.

Mayor Gonzales stated Council Member Dando raised a good point and suggested Staff hold those discussions and give others the opportunity to provide proposals. Council Member Dando stated she has been hearing about a new technology called SCONOx, which is purported to be cleaner and while there are uncertainties about the accuracy of those assertions, she thinks Staff should explore whether this is a viable consideration. The following individuals addressed Council on the issue: Issa Ajlouny, Michael Boyd, CARE, Valli Sharpe-Geisler, Don McIntosh, SVMG, David Dias, American Lung Association, Tim Alton, William Garbett, Robert F. Williams, Salvatore LaRosa, Suzanna Wong, Dmitry Balein, Elizabeth Cord, Santa Teresa Citizen Action Group, Debbie Krysiak, Justin Bradley, Silicon Valley Manufacturing Group, Jim Cuneen, Tracy Egeness, Siemens Information & Community Networks, Diana Halvorson, Arequipa Court Residents, Neil Struthers, Building Trades Council, Ken Abreu, Calpine/Bechtel, Scott Schulz, Santa Teresa Residents, Joern Maqle, Omar Chatty and Chris Elias. Vice Mayor Shirakawa, Jr., moved approval of the Staff recommendations dated June 22, 2001, and approval of the request by Council Member LeZotte to revise the monitoring schedule to comply with that of the CEC, which was verbally accepted by Ken Abreu in his comments on behalf of Calpine/Bechtel. Council Member Chavez seconded the motion. Council Member Dando inquired whether the agreement is consistent with the CEC approval as pertains to community input. Deputy City Attorney Hughes stated the CEC approval covers more but nothing in the proposed agreement is intended to lessen the CEC requirements, and where CEC conditions are more restrictive, they would be additional conditions to those in the proposed agreement. Council Member Dando asked if the City could request SCONOx if it is determined to be a viable alternative. City Attorney Doyle stated the City would be precluded from that kind of requirement by the CEC’s overriding of the City’s early decision on the Metcalf Energy Center. Council Member Dando stated it was her understanding that Calpine had agreed to use a cleaner technology such as SCONOx when available and proven to be viable and asked whether the proposal before Council would prevent the City from telling Calpine that SCONOx is a viable alternative, if it is determined that it is effective. Deputy City Attorney Hughes stated nothing before Council now would prevent the City from utilizing the provisions in the agreement that requires the City to review that option. Council Member LeZotte stated she does not support the portion of the agreement that did not address her concerns about limiting the cold start-ups, which she thinks is a critical element that would benefit the community. Council Member Williams restated his concerns about working with Calpine and the community to effect changes to the system; that initially the community opposed the location but upon the decision of the CEC approving the plant at that location, the community believes the plant should have the latest and best technology. He stated in requiring catalytic converters, the CEC is indicating Calpine is not providing the cleanest facility and needs to do more to improve or reduce emissions, and he would like to see Calpine consider the community and use the cleanest possible technology, which catalytic converters are not, for reducing emissions. He stated since the CEC gave Calpine the option of using SCONOx and the City has raised that issue, he would prefer Calpine consider SCONOx as a means of improving the emissions. He stated the noise levels and recycled water contaminating the ground water still need to be addressed. He expressed support for renewable energy alternatives and stated he will not support the motion but will work to improve the situation.

On a call for the question, the motion carried, Staff directed to revise the monitoring schedule to comply with that of the California Energy Commission and agreed to by Calpine/Bechtel; Resolution No. 70536, entitled: “A Resolution of the Council of the City of San José approving a Cooperation Agreement with Calpine/Bechtel in Connection with the Proposed Metcalf Energy Center Power Plant and Authorizing the City Manager to Negotiate and Execute Related Documents”, was adopted; and Ordinance No. 26447, entitled: “An Ordinance of the City of San José Amending Sections 15.16.830 and 15.16.840 of Chapter 15.16 of Title 15 of the San José Municipal Code to Permit Installment Payment of Sanitary Sewer Connection Fees and Sewage Treatment Plant Connection Fees Where the Applicant has entered into an Agreement with the City Which Satisfies the City that the Applicant will make a Substantial Financial Contribution to Expansion of the Recycled Water System Operated by the San José/Santa Clara Water Pollution Control Plant, and Recycled Water Produced by the Plant will be used on the Property Subject to the Connection Fees in a Volume that Exceeds the Projected Peak Wastewater Flow”, was passed for publication. Vote: 10-1-0-0. Noes. Williams.

7.2 (a) Acceptance of the recommendations for Phase 2a expansion of the South Bay Water Recycling (SBWR) system, as presented in the Summary Report entitled “South Bay Water Recycling Near-Term Development Plan.”

(b) Adoption of a resolution authorizing the City Manager to negotiate with Santa Clara Valley Water District to develop a joint funding proposal for implementation of the recommendations contained in the Summary Report.

(Environmental Services)

Documents filed: (1) Memoranda from Director of Environmental Services, Carl W. Mosher, dated June 11 and June 22, 2001, recommending Council accept the recommendations in the Summary Report, entitled: South Bay Water Recycling Near Term Development Plan; and direct the Administration to proceed with negotiations with the Santa Clara Valley Water District in connection with their Letter of Intent to fund and own the proposed recycled water pipeline to Coyote Valley. (2) Letter from the Treatment Plant Advisory Committee dated June 14, 2001, stating concurrence with the Staff recommendation. (3) Hard copies of slides of the Staff presentation given by Environmental Services Director Carl Mosher.

Discussion/Action: The Staff presentation was made by Environmental Services Director Carl Mosher. Council Member Reed stated regarding the pipeline possible expansion, that there are several reasons the City should expand and build to the south but he is not convinced the City has maximized sales in the existing systems or maximized ability to use recycled water on the Water Pollution Control Plant properties and he would like to see an analysis of those properties, preferably as part of the report to the Treatment Plant Advisory Committee and then to Council on August 14, 2001. Regarding the letter from the SV Toxics Coalition which proposes an approach for testing on the Endocrine Disrupters Research agenda, he requested Staff provide an assessment of the advisability of participating in this program on August 14, 2001. Council Member Dando reiterated her comments about exploring the option that the pipeline can be built at no cost to the City, suggested deferring action until the Auditor’s report which determined Council should not approve any expansion until further analysis is done has been reviewed. Council Member LeZotte expressed support for participating with the SV Toxic Coalition and other regulatory bodies in studies of the endocrine disrupter issue. The following individuals spoke on the subject: Ted Smith, SVTC, William J. Garbett spoke in opposition to the proposal., Walt Wadlow, Santa Clara Valley Water District, R. F. Williams, and Issa Ajlouny. Vice Mayor Shirakawa, Jr. moved approval of the Staff recommendation and Council Member LeZotte seconded the motion. Council Member Chavez suggested a review of the entire strategy regarding recycled water would be appropriate in terms of where to commit large capital investments. Council Member Dando stated she would not support the motion although she thinks Staff is going in the right direction in holding discussions with the Water District regarding expansion of the pipeline to Calpine with the expectations the Water District would pay the full costs and have control and management. She expressed concerns that expansion of the pipeline will ultimately require an additional treatment plant, and stated she looked forward to hearing the report in August 2001. Council Member Chavez stated when Staff reports back in August, she wants to hear a definitive answer regarding water testing, either that Staff has agreed to test and provides the plan, or if not, Staff provides the rationale to Council, and is interested in the report back on the issue of endocrine disrupters studies. Council Member Williams stated he is interested in assurances that the City will protect the ground water and how Staff plans to ensure the introduction of recycled water does not contaminate the ground and drinking water. On a call for the question, the motion carried, the Staff recommendation was approved, and Staff recommendations for Phase 2a expansion of the South Bay Water Recycling system, as presented in the Summary Report, was accepted; Staff was directed to provide analysis of current sales in the existing system and of recycled water use on the Water Pollution Control Plant properties to be reported to the Treatment Plant Advisory Committee and to Council August 14, 2001; to review the proposal by the Silicon Valley Toxics Coalition to do testing on the Endocrine Disrupters Research agenda and make recommendations whether the City should participate, and to review the proposal for a testing plan or provide a rationale for not conducting tests; and Resolution No. 70537, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Execute a Joint Funding Proposal with the Santa Clara Valley Water District for Implementation of the Recommendations Contained in the South Bay Water Recycling Near-Term Development Plan Summary Report”, was adopted. Vote: 10-1-0-0. Noes: Dando.

Open Forum

(1) Gregory Nichols spoke about parking irregularities.

(2) Pete Campbell spoke on traffic related issues.

(3) Omar Chatley spoke about transit related concerns in South San José.

Adjournment

The Council of the City of San José adjourned at 11:58 p.m.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK