CSJ Council Agenda Meeting Minutes, April 9, 2003

MINUTES OF THE CITY COUNCIL

SAN JOSE, CALIFORNIA TUESDAY, APRIL 9, 2002

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, Chavez, Cortese, Dando, Diquisto, LeZotte, Reed, Shirakawa, Jr., Williams, Yeager; Gonzales.

Absent: Council Member - LeZotte (excused).

Upon motion unanimously adopted, Council recessed at 9:35 a.m. to a Closed Session in Room 600 to confer with Legal Counsel pursuant to Government Code Section 54956.9; under Subsection (a) to discuss existing litigation in the cases of (1) In Re: Strysko; (2) In Re: Lima; (3) Schwatka v. City of San José, et al.; (4) Ruffo, et al. v. City of San José, et al.

By unanimous consent, Council reconvened from the Closed Session and recessed at 10:20 a.m. and reconvened at 1:35 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

Chun Lee gave a presentation about Falun Gong, the practice of truth, compassion and tolerance in your daily life, and delivered the invocation. (District 4)

Pledge of Allegiance

Mayor Gonzales led in the Pledge of Allegiance.

ORDERS OF THE DAY

Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez and unanimously carried, the Orders of the Day and the Amended Agenda were approved with Item 4.3 to be continued to April 16, 2002. Vote: 11-0-0-0.

Council Member Reed left Chambers at this time.

CONSENT CALENDAR

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

2.1 Approval of City Council Minutes for:

(a) Regular meeting of October 9, 2001

Documents filed: Minutes of October 9, 2001.

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

2.2 Final adoption of ordinances:

(a) ORD. NO. 26594 - Amends Section 20.100.450 of Chapter 20.100 of Title 20 of the San José Municipal Code to clarify the restrictions on hours of construction within 500 feet of a residential unit.

Documents filed: Proof of publication of title of Ordinance No. 26594, executed April 2, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26594 was adopted. Vote: 10-0-1-0. Absent: Reed.

(b) ORD. NO. 26595 – Amends Chapter 13.32 of Title 13 of the San José Municipal Code regarding tree removal controls to streamline the tree removal process, including an administrative process for the removal of dead trees, and to include additional definitions to further clarify the provisions of this Chapter.

Documents filed: Proof of publication of title of Ordinance No. 26595, executed April 2, 2002, submitted by the City Clerk.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Ordinance No. 26595 was adopted. Vote: 10-0-1-0. Absent: Reed.

2.3 Approval of a first amendment to the concession agreement with American Express to provide automated teller machine services at Norman Y. Mineta San José International Airport, for a five-year term not to extend beyond April 30, 2007, with annual revenue to the City of $15,600. CEQA: Resolution No. 67380. (Airport)

Documents filed: Memorandum from Director of Aviation Ralph G. Tonseth, dated March 20, 2002, recommending approval of a first amendment to said agreement with American Express.

Discussion/Action: The first amendment to said agreement with American Express was approved and its execution authorized. Vote: 10-0-1-0.

2.4 Adoption of a resolution:

(a) Authorizing the City Manager to negotiate and execute a first amendment to the agreement with Carter & Burgess Inc. for consultant services to implement the Airport Integrated Mapping System (AIMS) Program for the Norman Y. Mineta San José International Airport, adding additional services necessary to implement the AIMS Program, increasing compensation by $80,000, from $80,000 to $160,000, extending the term from April 30, 2002 to January 31, 2003, and

(b) Authorizing the City Manager to execute up to three one-year options to extend the term beyond January 31, 2003, for a total amount not to exceed $610,000, and subject to annual appropriation of funding for the next year’s contract expense.

(Airport)

Documents filed: Memorandum from Director of Aviation Ralph G. Tonseth, dated March 20, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70909, 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 Consulting Agreement with Carter & Burgess, Inc. to Add Services for the Airport Integrated Mapping System for the Norman Y. Mineta San José International Airport, Extend the Term to January 31, 2003 and Authorizing the City Manager to Execute and Up to Three One Year Options to Extend the Term Beyond January 31, 2003 for a Total Amount Not to Exceed $610,000”, was adopted. Vote: 10-0-1-0.

2.5 This item was removed from the Consent Calendar and considered separately.

2.6 Adoption of a resolution authorizing the City Manager to:

(a) Exercise a one year renewal of software maintenance on the City of San José’s Human Resource/Payroll System with PeopleSoft, Inc. for the period of April 17, 2002 through April 16, 2003, for a total cost, including tax, of $221,666.03; and

(b) Exercise up to four one-year options to renew the maintenance agreement, without further Council action other than the appropriation of funding each year.

(Information Technology)

Documents filed: Memorandum from Chief Information Officer, Wandzia Grycz, dated March 20, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70910, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to exercise a One-Year Renewal of Software Maintenance with Peoplesoft, Inc. for the Human Resource/Payroll System, and to Exercise Up to Four One-Year Options to Renew the Software Maintenance Agreement”, was adopted. Vote: 10-0-1-0. Absent: Reed.

2.7 Adoption of a resolution authorizing the City Manager to apply to the United States Department of Justice for Weed and Seed Program funding for the Washington neighborhood in an amount not to exceed $300,000, for the period October 1, 2002 through September 30, 2003, to accept the grant if awarded, and to execute all related documents. Council District 3. SNI: Washington. (Parks, Recreation and Neighborhood Services)

Documents filed: Memorandum from Acting Director of Parks, Recreation and Neighborhood Services, Albert Balagso, dated March 20, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70911, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Execute and Submit an Application to the United States Department of Justice for a Grant for the Weed and Seed Program for the Washington Neighborhood in an Amount Not to Exceed $300,000 for the Period of October 1, 2002 Through September 30, 2003, to Accept the Grant if Awarded, and to Execute All Related Documents”, was adopted. Vote: 10-0-1-0. Absent: Reed.

2.8 Adoption of a resolution:

(a) Approving the submittal of a grant application to the Valley Transportation Authority, the administrator of the Clean Air Program Manager Fund for the Bay Area Air Quality Management District, for $165,000 to partially fund construction of a trail segment of the Coyote Creek Trail from Montague Expressway to Tasman Road; and

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

CEQA: Exempt, PP98-01-002. Council District 4. (Parks, Recreation and Neighborhood Services)

Documents filed: Memorandum from Acting Director of Parks, Recreation and Neighborhood Services, Albert Balagso, dated March 20, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70912, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Execute and Submit an Application to the Santa Clara Valley Transportation Authority, the Administrator on Behalf of the Bay Area Air Quality Management District, for the Transportation Fund for Clean Air Program Manager Grants, for Grant Funds for the Coyote Creek Trail in an Amount Not to Exceed $165,500, to Accept the Grant if Awarded, and to Execute All Related Documents”, was adopted. Vote: 10-0-1-0. Absent: Reed.

2.9 Approval of Contract Change Order No. 2 for the Heating, Ventilation & Air Conditioning Fire Stations 2, 14, and 16 with FARR-GIL, Inc., dba, Golden State Builders, for additional construction work in the amount of $37,144, increasing the amount of the construction contract from $197,188, to a total of $234,332. CEQA: Exempt, PP01-07-134. (Public Works)

Documents filed: Memorandum from Director of Public Works Katy Allen, dated
March 20, 2002, recommending approval of Contract Change Order No. 2.

Discussion/Action: Contract Change Order No. 2 to said contract with FARR-GIL, Inc., dba, Golden State Builders was approved and its execution authorized. Vote: 10-0-1-0. Absent: Reed.

2.10 Report on bids and award of contract for the Street Lights Crackdown 2002 Project to the low bidder, Pacific Electric Company, in the amount of $121,941, and approval of a contingency in the amount of $12,000. CEQA: Exempt, PP01-02-023. SNI: Winchester, University, Five Wounds/Brookwood Terrace, East Valley/680 Communities and Rocksprings/Tully/Senter/Santee/Kennedy. (Public Works)

Documents filed: Memorandum from Director of Public Works Katy Allen, dated
March 20, 2002, recommending award of said contract to the low bidder, Pacific Electric Company.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. The award of said contract to the low bidder, Pacific Electric Company was approved and its execution authorized. Vote: 10-0-1-0. Absent: Reed.

2.11 Approval of Council Member Cindy Chavez’ prior travel to Portland, Oregon, on February 8, 2002, to meet with transportation representatives and see the transit rail system. Funding: Santa Clara Valley Transportation Agency. (Chavez)

(Rules Committee referral 4/3/02)

Documents filed: None.

Discussion/Action: The travel of Council Member Chavez on February 8, 2002, to Portland, Oregon, was approved. Vote: 10-0-1-0. Absent: Reed.

2.12 Adoption of a resolution authorizing the City Manager to negotiate and execute a Cooperative Agreement with the Transportation Security Administration (TSA) to partially reimburse Airport funded Police Department costs for three explosive detection canine teams for a total of $120,000 per year at the Norman Y. Mineta San José International Airport, for a period of five (5) years from the date of execution. (Airport) (Rules Committee referral 4/3/02)

Documents filed: Memorandum from Director of Aviation Ralph G. Tonseth, dated
April 3, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70913, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Cooperative Agreement with the Transportation Security Administration to Partially Reimburse Airport Funded Police Department Costs for Three Explosive Detection Canine Teams”, was adopted. Vote: 10-0-1-0. Absent: Reed.

END OF CONSENT CALENDAR

2.5 Adoption of a resolution authorizing the City Manager to negotiate and execute a third amendment to the Airport Food and Beverage Concession Agreement with Host International (“Host”), Inc., to:

(a) Reimburse Host for the cost of constructing certain improvements to correct unanticipated structural defects and to bring several of the concession spaces into compliance with the fire requirements of the Uniform Building Code, increasing the already-approved total reimbursement of $250,000 for concession improvements constructed by Host by $139,400, for a total not to exceed reimbursement amount of $389,400; and

(b) Add two new concession locations to the agreement, which will serve the upcoming Interim Federal Inspection Service Facility, with expected additional annual revenue to the City of $60,000; and

(c) Authorize reimbursement to Host for utility stub-outs and “vanilla shell” construction for the new FIS locations, in an amount not to exceed $230,000; and

(d) Temporarily modify the rent structure for one of the new FIS locations by authorizing an initial rent of 8% of gross revenues per month, to increase to 12% of gross revenues once Host’s total gross revenues in Terminal A achieve a threshold of $11,500,000 in any 12-month period.

CEQA: Resolution No. 67380. (Airport)

Documents filed: Memorandum from Director of Aviation Ralph G. Tonseth, dated March 20, 2002, recommending adoption of said resolution.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Council Member Chavez removed this item from the Consent Calendar to allow the Administration an opportunity to clarify the inclusion of labor peace and neutrality provisions in the contract and how that could be negotiated. In terms of the specific issue of Labor Peace requirement, City Attorney Rick Doyle stated the City requires Labor Peace as a provision in an RFP, when it is issued; however, in this case, Staff could negotiate that provision as part of an agreement, at Council’s direction. He stated that Neutrality Agreement is a way to accomplish labor peace; however, the City cannot require the vendor to enter into that agreement. Upon motion by Council Member Chavez, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Council approved the various actions related to the Airport Food and Beverage Concession Agreement. Council Member LeZotte gave direction to staff to (1) negotiate an agreement with provisions in the contract for Labor Peace so Council may assess whether it meets the needs of the City and (2) return to Council with the specific recycling program in progress at the Airport and what the program is for the entire Airport. Resolution No. 70914, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Third Amendment to the Airport Food and Beverage Concession Agreement with Host International, Inc.”, was adopted. Vote: 10-0-1-0. Absent: Reed.

Council Member Reed returned to Chambers at this time.

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – March 27, 2002

Documents filed: Revised Rules Committee report of March 27, 2002.

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

The Redevelopment Agency items to be reported out at Redevelopment Agency Board meeting

(b) City Council

(1) Review April 9, 2002 Draft Agenda

The Committee approved the April 9, 2002 City Council agenda with one deletion.

(2) Add New Items to April 2, 2002 Amended Agenda

The Committee directed the Administration to provide a history of the City’s association with WIA, background information and brochures related to the Homeland Security Conference, and recommended the one addition to the April 2, 2002 City Council agenda.

(1) Amendments to Council Committee Agendas

(a) Finance and Infrastructure Committee

(b) Economic Development and Environment Committee

None Filed.

(d) Meeting Schedules:

There were none.

(e) The Public Record:

There was no Public Record filed.

(f) Boards, Commissions and Committees:

There were none.

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

There were none.

(h) Administrative Reviews and Approval

(1) Proposed work plan for conducting an analysis of alternative scenarios of the Civic Center. Attachment: Memorandum from City Manager Del D. Borgsdorf, dated March 21, 2002, recommending Council direct the Administration to Proceed with an analysis of the Civic Center alternative scenarios, based on (1) the Criteria identified in Mayor Ron Gonzales’ memo, co-signed by Council Members Chavez and David Cortese, submitted at the March 13, 2002 Rules Committee meeting; and (2) the timeline and parameters included in the work plan proposed in this memo, which proposes that the analysis be presented for the Council’s review at its May 7, 2002 meeting.

The Committee recommended that the Council direct the Administration to Proceed with an analysis of the Civic Center alternative scenarios, based on:

· The Criteria identified in Mayor Ron Gonzales’ memo, co-signed by Council Members Chavez and David Cortese, submitted at the March 13, 2002 Rules Committee meeting; and

· The timeline and parameters included in the work plan proposed in this memo, which proposes that the analysis be presented for the Council’s review at its May 7, 2002 meeting.

(2) Approve letter to congressional delegation regarding impact of the “Aviation & Transportation & Security Act” on airport security screeners. Attachment: (1) Memorandum from Betsy Shotwell, Director of Intergovernmental Relations, dated March 20, 2002, recommending the Rules Committee accept the Staff Report on HR 3959 (Lofgren, Honda), the Military Standards for Airport Security Screeners Act, which would seek to require that an individual who is a legal immigrant and eligible to serve in the U.S. Armed Forces must also be eligible to work as an airport screener (Attachment A); and in addition, HR 3959 would amend the

Immigration and Nationality Act to permit naturalization through active-duty military service during Operation Enduring Freedom. (2) Supplemental memorandum from Betsy Shotwell, Director of Intergovernmental Relations, dated March 20, 2002, recommending the Rules Committee approve the attached draft correspondence to the City’s Congressional Delegation concerning the impacts of the “Aviation & Transportation & Security Act” on the Airport Security Screeners at the Norman Y. Mineta San José International Airport (Attachment C to the Committee Report).

The Committee: (1) recommended approval of the draft letter to the City’s Congressional delegation concerning the impacts of the “Aviation and Transportation and Security Act” on the airport security screeners at the Norman Y. Mineta San Jose International Airport, indicating the letter should come from the Mayor on behalf of the entire Council; and (2) accepted the staff report on HR 3959 (Lofgren, Honda), “Military Standards for Airport Security Screeners Act.”

(i) Oral communications

Ross Signorino commented on the cost of the new Civic Center, reevaluating Parking Lot E as a potential City Hall site, and the cost of renovating and adding on to the present City Hall. Pete Campbell stated that last week he had requested a letter be placed on the Public Record and noted his request had not been honored.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr. seconded by Council Member Chavez, and unanimously carried, the Rules Committee report and actions of March 27, 2002, were accepted with the correction to add the Committee action on Item 3.2(h) (2) to the Committee Report, inadvertently omitted. Vote: 11-0-0-0.

Council Member Diquisto left chambers at this time.

3.3 Report of the Finance and Infrastructure Committee – March 27, 2002

Documents filed: Finance and Infrastructure Committee report of March 27, 2002.

(a) Consent Items

(1) Monthly Investment Report for January 2002. Attachment: Memorandum from Scott P. Johnson, Director of Finance, dated February 26, 2002, transmitting the January 2002 Investment Report.

The Committee approved the Consent Items.

(b) Sales and Business Tax for Quarter ending December 31, 2001. Attachment: City Auditor Gerald A. Silva, dated March 5, 2002, transmitting the Sales and Business Tax Audit Results for the Quarter ended December 31, 2001.

The Committee accepted the staff report.

(c) February Monthly Report. Attachment: City Auditor Gerald A. Silva, dated March 5, 2002, transmitting the Report of Activities and Findings of the City Auditor’s Office for February 15 through March 15, 2002.

The Committee accepted the staff report.

(d) Audit of the San José Arena Management Corporation’s Compliance with the San José Arena Management Agreement. Attachment: City Auditor’s Report entitled, An Audit of San José Arena Management Corporation’s Compliance with the San José Arena Management Agreement, dated March 2002.

The Committee accepted the staff report.

(e) Monthly Financial Statement for January 2002

(f) Capital Cost Report for January 2002

(g) Cash Flow Projection

Redevelopment Agency items to be reported out at Redevelopment Agency Board meeting

(h) Oral petitions

Ross Signorino spoke on business license requirement in the City of San Jose.

(i) Adjournment

The Committee was adjourned at 3:20 P.M.

Discussion/Action: Upon motion by Council Member Dando seconded by Vice Mayor Shirakawa Jr., and unanimously carried, the Finance and Infrastructure Committee report and actions of March 27, 2002, were accepted. Vote: 10-0-1-0. Absent: Diquisto.

3.4 Approval of a first amendment to the agreement between the City of San José and California Municipal Technologies, Inc. for continued development, customization, and support of the state-mandated Job Training Automation System, increasing compensation by $400,000, from $50,000 to $450,000. (Economic Development)

Documents filed: Memorandum from Director of Economic Development Paul Krutko, dated March 20, 2002, recommending approval of the amendment to said agreement between the City of San José and California Municipal Technologies, Inc.

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

3.5 (a) Approval of a first amendment to the agreement between the City of San José and the Center For Employment & Training, Inc. to provide additional case management and training services to laid-off workers, increasing compensation by $1,000,000, from $50,000 to $1,050,000. (Economic Development)

(b) Approval of a first amendment to the agreement between the City of San José and the Center For Training & Careers, Inc. to provide additional case management and training services to laid-off workers, increasing compensation by $1,004,000, from $75,000 to $1,079,000. (Economic Development)

(c) Approval of a first amendment to the agreement between the City of San José and the Institute For Business Performance - San Jose Evergreen Community College District to provide additional case management and training services to laid-off workers, increasing compensation by $1,977,852.32, from $968,434 to $2,946,286.32. (Economic Development)

(d) Approval of a first amendment to the agreement between the City of San José and the Occupational Training Institute - Foothill De Anza Community College District to provide additional case management and training services to laid-off workers, increasing compensation by $600,334, from $676,224 to $1,276,558. (Economic Development)

Documents filed: Memorandum from Director of Economic Development Paul Krutko, both dated March 20, 2002, recommending approval of amendments to said agreements between the City of San José and the Center for Employment & Training, Inc., and the Center for Training & Careers, Inc.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez and unanimously carried, the first amendments to agreements between the City of San José and the Center for Employment & Training, Inc.; the Center for Training & Careers, Inc.; Items (a) and (b) were dropped from the agenda, and Items (c) and (d) for approval of first amendments to agreements between the City of San José and the Institute for Business Performance - San Jose Evergreen Community College District, and between the City of San José and the Occupational Training Institute - Foothill De Anza Community College District were deferred to April 16, 2002. Vote: 10-0-1-0. Absent: DiQuisto.

Council Member DiQuisto returned to Chambers at this time.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.2 Report on bids and award of contract for the Nightingale/Redbird Storm Drain Improvement Project to the low bidder, Sanco Pipelines, Inc., in the amount of $1,222,605, and approval of a contingency in the amount of $120,000. CEQA: Negative Declaration, PP01-04-071. Council District 6. (Public Works)

Documents filed: Memorandum from Director of Public Works Katy Allen, dated
March 20, 2002, recommending award of said contract, with related contingency, to the low bidder, Sanco Pipelines, Inc.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. 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 low bidder, Sanco Pipelines, Inc., was approved. Council Member Williams gave direction to staff to return to Council concerning the insufficient funding in the Storm Drainage Capital Improvement Program (CIP) for the second phase of construction and requested staff return to Council with an answer. Vote: 11-0-0-0.

4.3 (a) Hold a Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing for the issuance of up to $8,000,000 in tax-exempt multifamily housing revenue bonds for the Hacienda Villa Creek Senior Apartments (“Project”) consisting of up to 92 units, affordable to very-low income senior households, on a 2.02 acre site located at the northerly termini of East Court and West Court, north of East Julian Street.

(b) Adoption of resolutions:

(c)

(1) Approving a funding commitment for a construction and permanent loan of up to $4,286,522 during the construction phase, and up to $3,197,499 during the permanent phase, to Roem Development Corporation, or an affiliated entity (“Developer”), for the development of the Hacienda Villa Creek Apartments affordable to very-low income senior households on a 2.02 acre site located at the northerly termini of East Court and West Court, north of East Julian Street.

(2) (a) Expressing its intent to issue up to $8,000,000 in tax-exempt multifamily housing revenue bonds to finance the construction of the development.

(b) Authorizing the Director of Housing to file an application with California Debt Allocation Committee (CDLAC) for an allocation of up to $8,000,000 in private activity bonds for the Project.

(c) Authorizing the Director of Housing to negotiate and execute a Deposit and Escrow Agreement with Roem Development Corporation, or an affiliated entity, for the CDLAC application for the Hacienda Villa Creek Apartments Development.

Council District 3. SNI: Five Wounds/Brookwood Terrace. (Housing/Finance)

(Continued from 4/2/02 – Item 4.5)

Documents filed: None.

Discussion/Action: This item was continued to April 16, 2002.

4.4 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the terminus of East and West Courts, from A(PD) Planned Development Zoning District to A(PD) Planned Development Zoning District, to allow 92 multi-family attached senior housing units on 2.02 gross acres. (ROEM Development, Owner/Developer). CEQA: Negative Declaration. Director of Planning, Building and Code Enforcement and Planning Commission recommend approval (6-0-1) with the following conditions:

(a) A supplementary shuttle service for residents who do not drive.

(b) Emergency vehicle access easement through the project parking lot to allow a connection between East Court and West Court.

(d) Pedestrian access easement through the site to provide a connection to the future

Lower Silver Creek Trail.

PDCSH 01-10-097 - District 3

(Continued from 4/2/02 – Item 11.4)

Documents filed: (1) Memorandum from Council Member Chavez, dated April 9, 2002, recommending Council adopt the Planning Commission and Staff recommendation with conditions contained therein. (2) Memorandum from Secretary of the Planning Commission Joseph Horwedel, dated March 28, 2002, reporting the Planning Commission recommendation to adopt an ordinance rezoning the subject property PDCSH 01-10-097, with conditions contained therein. (3) Supplemental memorandum from Acting Director of Planning, Building and Code Enforcement Joseph Horwedel, dated March 21, 2002, transmitting the Staff report on PDCSH01-10-097 and recommending approval of the proposed rezoning with conditions as specified therein. (4) Memorandum from Acting Director of Planning, Building and Code Enforcement Joseph Horwedel, dated March 21, 2002, transmitting exhibits pertaining to the review of the subject project. (5) Proof of publication of Notice of Public Hearing on PDCSH01-10-097, executed March 15, 2002, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the planned development and rezoning of the subject property. Robert Emami, Roem Corporation, spoke in support of the proposed project. Referencing her April 9, 2002 memorandum, Council Member Chavez recommended approval of the Planning Commission and staff recommendation with the conditions to (a) Reduce the total number of units by 12 for a total of 80 units; (b) Provide approximately 10,000 square feet of open space available to the public and designed in conjunction with the neighborhood (design must emphasize connectivity to nearby residences); (c) Provide adequate set-backs from Silver Creek for the future development of a creek trail; (d) Require the provision of shuttle van service to the residences of the facility (e) Require 1-to-1 ratio of parking spaces to staff, visitor spaces and residents with cars; (f) Require a public easement through the driveway to connect East and West Courts; (g) Require a developer contribution of $50,000 towards traffic calming mitigation in the neighborhood. Upon motion by Council Member Chavez, seconded by Council Member Williams, and unanimously carried, the public hearing was closed, the Planning Commission recommendation approved with conditions and Ordinance No. 26602, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated at the Northerly Terminus of East Court and West Court”, was passed for publication. Vote: 11-0-0-0.

TRANSPORTATION SERVICES

6.1 Report on bids and award of contract for the Traffic Signal Unit 01A Project to the low bidder, Prism Engineering, Inc., in the amount of $747,532.81, and approval of a contingency in the amount of $112,000, including improvements at Concourse Drive and Lundy Avenue, Galahad Avenue and Story Road, Julian Street and Nineteenth Street, and San Pedro Street and Santa Clara Street. CEQA: Exempt, PP00-10-155, PP01-11-193. Council Districts 3, 4, and 5. SNI: East Valley/680 Communities, 13^th Street, St. James Square. (Public Works)

Documents filed: Memorandum from Director of Public Works Katy Allen, dated
March 20, 2002, recommending award of said contract, with related contingency, to the low bidder, Prism Engineering, Inc.

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

6.2 Adoption of a resolution:

(a) Approving a list of recommended pedestrian and bicycle projects to be submitted to the Valley Transportation Authority for FY 2002-03 under the State Transportation Development Act, Article 3 grant funding program in the amount of $564,835.

(b) Authorizing the City Manager to negotiate and execute the necessary grant funding agreements.

CEQA: Exempt, PP02-01-011. (Transportation)

Documents filed: Memorandum from Director of Transportation Wayne Tanda, dated March 20, 2002, recommending adoption of said resolution.

Discussion/Action: Council Members Dando and LeZotte suggested staff follow up to all the Council Members what the current inventory is of projects, and provide information on the various grant programs that fund the bicycle and transportation facilities along with the eligibility criteria, the time lines and some of the prioritization factors prior to action being taken. Upon motion by Council Member Yeager, seconded by Council Member LeZotte, and unanimously carried, Resolution No. 70915, entitled: “A Resolution of the Council of the City of San José Approving the List of Proposed Projects for Fiscal Year 2002-2003 Transportation Development Act, Article 3 (TDA 3) Grant Funding, and Authorizing the City Manager to Negotiate and Execute the Necessary Grant Agreements”, was adopted. Council Member Yeager gave staff

direction to put the Candidate Optional Projects ahead of projects on the list for review in 2003. In addition Council Member Cortese spoke to the motion to evenly disburse the grant opportunities by Council district through out the city. Council Member LeZotte requested as a follow up to send an information memo to Council providing the current inventory of projects, and information on the various grant programs that fund bicycle and transportation facilities along with the eligibility criteria, the time lines, and provide a list of possible projects to Council six months prior to the year 2003 grants. Vote: 11-0-0-0.

Council Member DiQuisto left Council Chambers at this time.

6.3 Adoption of a resolution:

(a) Accepting staff’s report responding to Council’s questions from the February 12, 2002 City Council meeting seeking additional information on the Traffic Calming public education and awareness campaign; and

(b) Authorizing the City Manager to negotiate and execute an agreement with Liquid Agency, Inc. to:

(1) Develop and assist in implementing public education and awareness services from the date of execution to May 15, 2003, as part of the City’s Traffic Calming Program, in an amount not to exceed $316,000; and

(2) Provide media purchasing for public education and awareness services from the date of execution to May 15, 2003, as part of the City’s Traffic Calming Program, in an amount not to exceed $529,394.

CEQA: Exempt. (Transportation)

(Deferred from 4/2/02 – Item 6.1)

Documents filed: Memorandum from Director of Transportation Wayne Tanda, dated March 29, 2002, recommending Council accept the report responding to Council’s questions from the February 19, 2002, City Council meeting, and adopt a resolution authorizing the City Manager to negotiate and execute said agreement with Liquid Agency, Inc.

Discussion/Action: Upon motion by Council Member Williams, seconded by Council Member Chavez, and unanimously carried, Resolution No. 70916, entitled: “A Resolution of the Council of the City of San José Accepting Staff’s Report Responding to Council’s Questions Raised at the February 12, 2002 City Council Meeting and Authorizing the City Manager to Negotiate and Execute Agreements with Liquid

Agency, Inc. as Part of the City’s Traffic Calming Program to Provide (1) Public Education and Awareness Services in an Amount Not to Exceed $316,000; and (2) Media Purchasing for Public Education and Awareness Services in an amount not to exceed $529,394”, was adopted. Vote: 10-0-1-0. Absent: Diquisto.

Council Member DiQuisto returned to Chambers at this time.

AVIATION SERVICES

8.1 Adoption of a resolution authorizing the City Manager to:

(a) Negotiate and execute a Second Amended and Restated Newsstand and General Merchandise Agreement and Lease between the City of San José and DFS Group L.P., continuing and extending the term of the Agreement from November 1, 2000 to October 31, 2007, with minimum annual guaranteed concession revenues to the City of $1,200,000, and making certain adjustments to the concession fee and operational provisions of the Agreement; and

(b) Exercise up to three one-year options to extend the term of the Concession Agreement on the same terms and conditions to October 31, 2010.

CEQA: Resolution No. 67380. (Airport)

Documents filed: Memorandum from Director of Aviation Ralph G. Tonseth, dated March 20, 2002, recommending adoption of said resolution.

Discussion/Action: Ron Lind, UFLW 428 and Phaedra Ellis-Lamkins, South Bay Labor Council addressed Council on the proposal. Council Member Chavez requested staff move Section A contained in the March 20, 2002 memorandum from Ralph Tonseth to ensure the inclusion of Labor Peace in the Second Amended and Restated Agreement and Lease with DFS Group L.P., and for the agreement to come back to Council with further exploration of the opportunity for opting out if in the first 5 years the airport needs that flexibility in the last year of the agreement. Council Member LeZotte concurred with the recommendation to eliminate Item (b) of Ralph Tonseth’s memorandum stating the last portion of the six years Council members will be out of office. Council Member Reed disagreed with the three one-year options. Upon motion by Council Member Yeager, seconded by Council Member Cortese, and carried, Resolution No. 70917, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Second Amendment and Continuation Agreement Between the City of San José and DFS Group, LP., Extending the Term to October 31, 2007, with Minimum Annual Guaranteed Concession Revenues to the City of $1,200,000, with Three (3) One Year Options to Extend to October 31, 2010”, was adopted. Vote: 10-1-0-0. Noes: Reed.

Open Forum

Elza Theodule commented on various societal issues.

Adjournment

The Council of the City of San Jose adjourned at 4:10 P.M. in memory of Jacinto S. Siquig, long-time Filipino community leader.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN

CITY CLERK