CSJ Council Agenda Meeting Minutes, June 4, 2002

MINUTES OF THE CITY COUNCIL

SAN JOSE, CALIFORNIA TUESDAY, JUNE 4, 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 Members - None.

Upon motion unanimously adopted, Council recessed at 9:35 a.m. to a Closed Session in Room 600 to confer with Real Property Designated Representatives Pursuant to Government Code Section 54956.8 for (1) Property designated as APN 015-31-063; Designated Representatives: Darrell Dearborn and Carl Mosher for the City of San José and Joan Gallo for Los Esteros Critical Energy Facility, LLC; Under Consideration: Price, terms and conditions for lease, sale and/or use agreements of all or part of parcel; to confer with Legal Counsel pursuant to Government Code Section 54956.9; Government Code Section 54956.9; to discuss anticipated litigation pursuant to Subsection (c) of Government Code Section 54956.9 in one matter regarding the initiation of litigation.

By unanimous consent, Council reconvened from the Closed Session and recessed at 10:50 a.m. and reconvened at 1:30 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)

The Reverend Roger Jones, Unitarian University Fellowship of Sunnyvale, delivered the invocation.

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 were approved. Vote: 11-0-0-0.

CEREMONIAL ITEMS

1.1 Presentation of commendations by John Diquisto and Mayor Gonzales to Lawrence Campbell and Bruce Kegg, who have donated time and money, getting the first fire steam engine in the City of San José, a 1890 Amoskeg, refurbished and donated to the San José Fire Department Muster Team. (Diquisto)

Documents filed: None.

Discussion/Action: Joining Mayor Gonzales at the Podium were Council Member Diquisto, Battalion Chief Joshua Weggeland, special guests Retired Battalion Fire Chief Lawrence Campbell, Bruce Kegg, the individual responsible for finding the steam engine in Central California, acquiring the fire apparatus and donating a significant amount of time and resources to restore the equipment. Mayor Gonzales presented the commendations to the honored guest. Chief Weggeland acknowledged the efforts of Leonard McKay, Retired Captains Dennis M. Madigan and Sam Seibert, and others who were significant participants in returning the equipment to San Jose; and invited all to attend the celebration at Fire Station #3, on Wednesday, June 5^th, honoring Chief Campbell.

City Manager, Del D. Borgsdorf, introduced newly weds Douglas Borgsdorf and bride Stacey, who are spending time on the West Coast before returning to Michigan. Mayor Gonzales asked the guests to stand and be recognized.

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: 11-0-0-0.

2.2 Final adoption of ordinances:

(a) ORD. NO. 26635 – Amends Section 19.08.440 of Chapter 19.08, repealing Section 19.12.085 of Chapter 19.12, and adds new sections to Chapter 19.40, all of Title 19 of the San José Municipal Code, to amend the lot line adjustment process and establish a lot line correction process.

Documents filed: Proof of publication of title of Ordinance No. 26635, executed May 28, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26635 was adopted. Vote: 11-0-0-0.

2.2 Final adoption of ordinances:

(b) ORD. NO. 26636 – Rezones certain real property situated at the southeast corner of Bascom Avenue and Camden Avenue. PDC 01-03-036

Documents filed: Proof of publication of title of Ordinance No. 26636, executed May 28, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26636 was adopted. Vote: 11-0-0-0.

(c) ORD. NO. 26637 – Rezones certain real property situated on the north side of Patterson Street, approximately 120 feet east of South Third Street. PDC 01-08-085

Documents filed: Proof of publication of title of Ordinance No. 26637, executed May 28, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26637 was adopted. Vote: 11-0-0-0.

(d) ORD. NO. 26638 - Rezones certain real property situated at the east side of Roberts Avenue, approximately 340 feet southeast of Story Road. PDC 01-02-010

Documents filed: Proof of publication of title of Ordinance No. 26638, executed May 28, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26638 was adopted. Vote: 11-0-0-0.

(e) ORD. NO. 26639 - Rezones certain real property situated at the east side of North First Street, approximately 250 feet southerly of Burton Avenue (1100 North First Street).

C 02-015

Documents filed: Proof of publication of title of Ordinance No. 26639, executed May 28, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26639 was adopted. Vote: 11-0-0-0.

(f) ORD. NO. 26640 – Prezones certain real property situated on the west side of South First Street, approximately 50 feet north of Martha Street. C 02-026

Documents filed: Proof of publication of title of Ordinance No. 26640, executed May 28, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26640 was adopted. Vote: 11-0-0-0.

2.3 Adoption of a resolution authorizing the City Attorney to negotiate and execute a fifth amendment to the legal services agreement with Curiale, Dellaverson, Hirschfeld, Kraemer, & Sloan, LLP, extending the term through June 30, 2003, at no additional cost to the City.

(City Attorney's Office)

Documents filed: Memorandum from City Attorney Richard Doyle, dated May 23, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70998, entitled: “A Resolution of the Council of the City of San José Authorizing the City Attorney to Negotiate and Execute a Fifth Amendment to the Legal Services Agreement with Curiale, Dellaverson, Hirschfeld, Kraemer & Sloan, LLP, Extending the Term Through June 30, 2003, at No Additional Cost to the City”, was adopted. Vote: 11-0-0-0.

2.4 Adoption of a resolution authorizing the City Attorney to negotiate and execute a third amendment to the agreement for legal services with Sonnenschein Nath & Rosenthal, to increase the amount of total compensation by $25,000, to a total amount not to exceed $225,000. (City Attorney’s Office)

Documents filed: Memorandum from City Attorney Richard Doyle, dated May 2, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70999, entitled: “A Resolution of the Council of the City of San José Authorizing the City Attorney to Negotiate and Execute an Amendment to the Legal Services Agreement with Sonnenschein Nath & Rosenthal to Increase the Amount of Total Compensation to a Total Amount Not to Exceed $225,000”, was adopted. Vote: 11-0-0-0.

2.5 Adoption of a resolution to establish parking rates, charges and fees at Norman Y. Mineta San José International Airport and repealing Resolution No. 67585. (Airport)

Documents filed: Memorandum from Aviation Director Ralph G. Tonseth, dated May 13, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71000, entitled: “A Resolution of the Council of the City of San José Establishing Parking Rates, Charges and Fees at the Norman Y. Mineta San José International Airport and Repealing Resolution No. 67585”, was adopted. Vote: 11-0-0-0.

2.6 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2001-2002 #36, and authorization for the Director of General Services to execute the purchase orders. (General Services)

Documents filed: Memorandum from Jose Obregon, Director of General Services, dated May 13, 2002, recommending approval of said open purchase orders.

Discussion/Action: The award of open purchase orders List 36 was approved and the Director of General Services was authorized to execute to the purchase orders. Vote: 11-0-0-0.

2.7 Adoption of a resolution accepting $10,000 in donations from the Friends of the San José Main Library for the Summer Reading Program. (Library)

Documents filed: Memorandum from City Librarian Jane Light, dated May 15, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71001, entitled: “A Resolution of the Council of the City of San José Accepting a Donation of $10,000 from the Friends of the San José Library to be Used for the Summer Reading Club”, was adopted. Vote: 11-0-0-0.

2.8 (a) Adoption of resolutions:

(1) Authorizing the City Manager to submit a grant application to the California State Library under the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 for the new Berryessa Branch Library; to execute all documents related to the application; to accept the grant if awarded; and

(2) Making the certification regarding funding for this project as required by the Public Library Construction and Renovation Bond Act of 2000.

(3) Authorizing the City Manager to negotiate and execute a joint use cooperative agreement with the Berryessa Union School District for shared programming within the new Berryessa Branch Library; and

CEQA: Berryessa - ND, H02-02-007.

(b) Adoption of resolutions:

(1) Authorizing the City Manager to submit a grant application to the California State Library under the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 for the new Tully Branch Library; to execute all documents related to the application; to accept the grant if awarded; and

(b) Adoption of resolutions:

(2) Making the certification regarding funding for this project as required by the Public Library Construction and Renovation Bond Act of 2000.

(3) Authorizing the City Manager to negotiate and execute a joint use cooperative agreement with the Franklin-McKinley School District for shared programming within the new Tully Branch Library.

CEQA: Tully Road – Mitigated Negative Declaration, PP 02-04-080.

Council Districts 4 and 7. SNI: Rockspring/Tully-Senter. (Library)

Documents filed: See Item 5.2 in the minutes of City Council meeting of June 11, 2002, for documents filed.

Discussion/Action: Resolution No. 71002, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Submit an Application to the California State Library Under the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 for a Grant for the New Berryessa Branch Library in Excess of the City Manager’s Contract Authority, to Execute All Documents Related to the Grant Application, to Accept the Grant if Awarded, and to Negotiate and Execute a Joint Use Cooperative Agreement with the Berryessa Union School District for Shared Programming within the New Berryessa Branch Library”, was adopted, and Items 2.8(b)(1),(2) and (3) were deferred to June 11, 2002. Vote: 11-0-0-0.

2.9 Adoption of a resolution pursuant to the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 approving application to the Santa Clara County Local Agency Formation Commission to amend the City’s Urban Service Area in 4 locations to include approximately 42 acres as noted below, and authorizing the Director of Planning, Building and Code Enforcement to provide and execute related application documents required by LAFCO:

(a) Area A: 17-acre site located at the terminus of Dixon Landing Road and west of Highway 880. CEQA: Resolution No. 70965; and

(b) Area B: 7.95-acre site located on the northeasterly side of Murillo Avenue, opposite Groesbeck Hill Drive. CEQA: Negative Declaration; and

(c) Area C: 8-acre site located approximately 1,070 feet east of Murillo Avenue and 380 feet northerly of Quimby Road. CEQA: Negative Declaration; and

(d) Area D: 9-acre site located at the northeast side of Piercy Road, approximately 400 feet westerly of Tennant Avenue. CEQA: Negative Declaration.

Director of Planning, Building and Code Enforcement recommends approval. No Planning Commission action required.

Council Districts 2, 4, and 8. (Planning, Building and Code Enforcement)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement Stephen M. Haase, dated May 14, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71003, entitled: “A Resolution of the Council of the City of San José Making Application and Request to the Local Agency Formation Commission Pursuant to the Cortese-Knox Hertzberg Local Government Reorganization Act of 2000 to Amend the City of San José Urban Service Area Boundary and Authorizing the Director of Planning, Building and Code Enforcement to Execute Any Application Materials Related to this Amendment Request”, was adopted. Vote: 11-0-0-0.

2.10 Adoption of a resolution setting a public hearing to consider the vacation of a 2,643 square foot portion of Kentucky Place on June 25, 2002 at 1:30 p.m. CEQA: Negative Declaration. Council District 5. SNI: Mayfair. (Public Works)

Documents filed: (1) Memoranda from the Director of Public Works Katy Allen, dated May 13 and 29, 2002, recommending adoption of said resolution. (2) Supplemental memorandum from Planning Commission Secretary Stephen M. Haase, dated May 28, 2002, recommending approval of the subject street vacation.

Discussion/Action: Resolution No. 71004, entitled: “A Resolution of the Council of the City of San José Setting a Public Hearing to Consider Whether a Vacate a Portion of Kentucky Place”, was adopted. Vote: 11-0-0-0

END OF CONSENT CALENDAR

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – May 22, 2002

Vice Mayor Shirakawa, Jr., Chair

Documents filed: Rules Committee report of May 22, 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 June 4, 2002 Draft Agenda

The Committee recommended approval of the June 4, 2002 City Council Agenda with two additions.

(2) Add New Items to May 28, 2002 Amended Agenda

The Committee recommended three additions to the May 28, 2002 City Council Agenda.

(b) City Council

(3) Review June 4, 2002 General Plan Hearing Agenda

The Committee recommended approval of the June 4, 2002 General Plan Hearing Agenda with one change: For Item 1.2(a) and (b), delete “Recommend Continuance to 09/03/02”.

(1) Amendments to Council Committee Agendas

(a) Finance and Infrastructure Committee

(b) Economic Development and Environment Committee

None Filed.

(d) Meeting Schedules - None Presented.

(e) The Public Record. Attachment: (1) Memorandum from City Clerk Patricia L. O’Hearn, dated May 16, 2002, transmitting the Public Record for the period May 8-14, 2002.

The Committee noted and filed the Public Record for the period May 8-14, 2002.

(f) Boards, Commissions and Committees. Attachments: (1) Memoranda from City Clerk Patricia L. O’Hearn, dated May 10, 2002, forwarding eleven lists of qualified applicants, as submitted by the Project Diversity Screening Committee; from City Clerk Patricia L. O’Hearn, dated May 10, 2002, stating there were no applicants for the Mobile Home Advisory Commission. (2) Eleven memoranda from City Attorney’s Office, dated April and May 2002, reviewing commission applicants for conflicts of interest. (3) Memoranda from Council Member Diquisto, dated May 15, 2002, recommending appointments to the Airport Commission; from Council Member Williams, dated May 22, 2002, recom-mending appointments to the Art Commission; from Council Member Yeager, dated May 22, 2002, recommending appointments to the Child Care Commission and readvertising the remaining positions; from Council Member Reed, dated May 20, 2002, recommending appointments to the CDBG Steering Committee; from Council Member LeZotte, dated May 21, 2002, recommending appointments to the Disability Advisory Commission and the Historic Landmarks Commission; from Council Member Reed, dated May 21, 2002, recommending an appointment to the Disadvantaged Business Development Commission; from Council Member Yeager, dated May 22, 2002, recommending appointments to the Library, Parks and Recreation, and the Traffic Appeals Commissions; from Council Member Dando, dated May 13, 2002, recommending appointments to the Senior Citizens Commission; from Council Member Reed, dated May 21, 2002, recommending appointments to the Airport and Disability Advisory Commissions; from Vice Mayor Shirakawa, Jr., dated May 9, 2002, recommending appointments to the CDBG Steering Committee, the Historic Landmarks, Parks and Recreation, and Senior Citizens Commissions; from Council Member Williams, dated May 22, 2002, recommending an appointment to the Library Commission.

(1) Airport Commission

The Committee recommended appointment of Catherine Tompkison-Graham and Donald Simpson to terms ending June 30, 2006.

(2) Arts Commission

The Committee recommended appointment of Jill Arnone, David Eisbach, Sharon Gustafson, Natalie Hala (Incumbent), and Eugene Sakai to terms ending June 30, 2005.

(3) Child Care Commission

The Committee recommended appointment of Anne Moses to a term ending June 30, 2006, and directed the City Clerk to readvertise the remaining vacant positions.

(4) Community Development Block Grant Steering Committee

The Committee recommended appointment of Candelario Franco (representing District 5), and Freddie Sidbury, Jr. (representing District 7), to terms ending June 30, 2006, and Maria Lopez (representing District 7), to an unexpired term ending June 30, 2004.

(5) Disability Advisory Commission

The Committee recommended appointment of Harold Cole (Incumbent), Colette Krinock, Srinivasan Mandyam, and Mary Vaneski-Hunter to terms ending June 30, 2006; and Susan Espinoza and Mary Jo Melia to unexpired terms ending June 30, 2005.

(6) Disadvantaged Business Development Commission

The Committee recommended appointment of Carolyn Shadle to an unexpired term ending December 31, 2004, and directed the City Clerk to readvertise the remaining vacant position.

(7) Historic Landmarks Commission

The Committee recommended appointment of Justine Leong to a term ending June 30, 2006, and directed the City Clerk to readvertise the remaining vacant position.

(8) Library Commission

The Committee recommended appointment of Raj Bhandt, Melinda Hoppe, and Mark Pettinger to terms ending June 30, 2006; and directed the City Clerk to readvertise the remaining vacant positions.

(9) Mobile Home Commission.

The Committee directed the City Clerk to readvertise for both the landlord and tenant positions.

(10) Parks and Recreation Commission

The Committee recommended appointment of G. M. Harding, Carol Martinez, and Cheryl Wessling to terms ending June 30, 2006; and Mary Ann Ruiz to an unexpired term ending June 30, 2005.

(11) Senior Citizens Commission

The Committee recommended appointment of John Ahern, Jr., Doreen Morgan, Fred Orillaneda (Incumbent), Correnne Sarbaugh, and Ron Schwartz to terms ending June 30, 2006.

(12) Traffic Appeals Commission

The Committee recommended appointment of Denelle Fedor and Craig Ferguson to terms ending June 30, 2006.

(g) Council Referrals for Assignment to Appropriate Committee, Administration, or Council Appointee. Attachment: Memorandum from Council Members Chavez and Cortese, dated May 21, 2002, recommending: (1) an in-depth audit of Hayes Renaissance, LP’s compliance with the provisions of its lease agreement with the City; and (2) a review of the adequacy of the City’s system to monitor and enforce all provisions of the lease agreement.

The Committee directed the City Auditor to return to Rules Committee with (1) an in-depth audit of Hayes Renaissance, LPs’ compliance with the provisions of its lease agreement with the City; and (2) a review of the adequacy of the City’s system to monitor and enforce all provisions of the lease agreement. The Committee also directed the City Auditor to return to Rules Committee on May 29, 2002 with a workload assessment to complete the audit.

(1) Changes to Project Diversity Commission Term Limits. Attachment: Memorandum from Mayor Gonzales and Council Members Dando, Diquisto and Cortese, dated May 16, 2002, regarding changes to Project Diversity Commission Term Limits.

The Committee directed the City Clerk to return to Rules Committee on June 5, 2002 with a workload assessment to change term limits for members of the City’s Commissions under Project Diversity.

(h) Administrative Reviews and Approval - None Presented.

(i) Oral Communications - None Presented.

(j) Adjournment - The meeting was adjourned at 2:40 p.m.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the Rules Committee report and actions of May 22, 2002, were accepted. Vote: 11-0-0-0.

3.3 Report of the Finance and Infrastructure Committee – May 22, 2002

Council Member Dando, Chair

Documents filed: Finance and Infrastructure Committee report of May 22, 2002.

(a) Consent Items

(1) April Monthly Report. Attachment: Memorandum from City Auditor Gerald A. Silva, dated May 15, 2002, transmitting said report.

The Committee approved the Consent Items.

(b) Revisions to the City Council’s Delegation Authority to the City Administration for Negotiating and Executing Agreements and Contracts Associated with Financing for Affordable Housing Development. Attachment: (1) Memorandum from the Director of Housing Leslye Corsiglia and from Director of Finance Scott P. Johnson, dated May 13, 2002, recommending that the Committee recommend that the City Council adopt an ordinance amending Title 2 and Title 5 of the San José Municipal Code to make certain changes to the administration of the City’s affordable housing program, as specified therein. (2) Hard copies of the overhead presentation given by City Staff to the Finance and Infrastructure Committee.

The Committee accepted the staff report.

Discussion/Action: See Item 3.5 for Council action taken.

(c) Review Multifamily Housing Revenue Bond Financing Policy. Attachment: (1) Memorandum from Director of Housing Leslye Corsiglia and from Director of Finance Scott P. Johnson, dated May 13, 2002, recommending the Committee approve the Multifamily Housing Revenue Bond Financing Policy as proposed by the Finance Department and the Housing Department, and recommend that the City Council formally adopt this policy by resolution.

The Committee accepted the staff report with the request that Staff provide a status report to the Finance & Technology Committee in one year.

Discussion/Action: See Item 3.6 for Council action taken.

(d) Guaranteed Investment Agreements Pilot Program Evaluation. Attachment: Memorandum from Director of Finance Scott P. Johnson, dated May 16, 2002, recommending the Committee recommend that the City Council adopt a resolution to revise the City Investment Policy to allow the use of investment agreements for the investment of bond proceeds.

(d) Guaranteed Investment Agreements Pilot Program Evaluation (0

The Committee accepted the staff report.

Discussion/Action: See Item 3.7 for Council action taken.

(e) Fundraising Activity for the San José State University/City of San José Joint Library. Attachment: Memorandum from City Librarian Jane Light, dated May 15, 2002, recommending the Committee accept the verbal report by Patricia Breivik, Dean of the University Library, as an update to the April 3, 2002, ENYS Committee Quarterly Report on the Joint Library Report; and stating that the Dean will report on the University’s progress on its fundraising goal of $10 million towards the development of the new King Library (the Joint Library Project).

The Committee accepted the staff report.

(f) Monthly Financial Statement for April 2002

(g) Capital Cost Report for April 2002

(h) Cash Flow Projection

(i) Bond Reserve Investment Review

Items 3.3(f)-(i) were discussed by the Redevelopment Agency Board.

(j) Oral petitions - None Presented.

(k) Adjournment - The Committee adjourned at 5:00 p.m.

Discussion/Action: Upon motion by Council Member Dando, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the Finance and Infrastructure Committee report and actions of May 22, 2002, were accepted with Items 3.3(b), 3.3(c), and 3.3(d) acted upon at Items 3.5, 3.6, and 3.7, respectively. Vote: 11-0-0-0.

3.5 Approval of an ordinance amending Chapter 5.06 of Title 5 of the San Jose Municipal Code to make changes to contract authority for development of affordable housing, providing additional authority to the City Manager, the Director of Housing, and the Director of Finance.

(Housing/Finance)

[Finance and Infrastructure Committee referral 5/22/02 – Item 3.3(b)]

Documents filed: None.

Discussion/Action: This item was deferred to June 11, 2002.

3.6 Approval of the Multifamily Housing Revenue Bond Financing Policy. (Housing/Finance)

[Finance and Infrastructure Committee referral 5/22/02 – Item 3.3(c)]

Documents filed: None.

Discussion/Action: This item was deferred to June 11, 2002.

3.7 Adoption of a resolution revising the City's Investment Policy to allow the use of investment agreements for the investment of bond proceeds. (Finance)

[Finance and Infrastructure Committee referral 5/22/02 – Item 3.3(d)]

Documents filed: (1) See Item 3.3(d) for Staff report. (2) Supplemental memorandum from Senior Executive Analyst Nadine Nader, dated May 30, 2002, reporting that following the Staff presentation to the Finance and Infrastructure Committee regarding guaranteed investment agreements pilot program evaluation, the Committee accepted the Staff report.

Discussion/Action: Upon motion by Council Member Dando, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Resolution No. 71005, 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.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.2 Adoption of resolutions related to the City of San José Limited Obligation Refunding Bonds, Reassessment District No. 02-219SJ (2002 Consolidated Refunding), Bond Series 24R:

(a) Resolution declaring preliminary intention to refund the following: Improvement District No. 85-193SJ (Blossom Hills-Coniston), Series 23W; Improvement District No. 91-207 (Senter-Burke), Series 24G; Improvement District No. 93-213SJ (Capitol-Copperfield), Series 24L; and Improvement District No. 98-216SJ (Silver Creek 1998 Refunding), Series 24P (collectively the "Prior Bonds"), and directing the Director of Public Works to prepare and file with the City Clerk a Reassessment Report.

(b) Resolution approving and confirming the report on levy of reassessments and the refunding of the Prior Bonds.

(c) Resolution authorizing the issuance of City of San José Limited Obligation Refunding Bonds, Reassessment District No. 02-219SJ, (2002 Consolidated Refunding), Bonds Series 24R (the "Refunding Bonds"); approving an Official Notice of Sale, approving an Official Statement, approving a Fiscal Agent Agreement, approving a Refunding Escrow Agreement, approving a Continuing Disclosure Agreement, and authorizing related actions with respect to the issuance and sale of the Bonds, including authorizing the Director of Finance to award the Bonds to the lowest bidder as determined through a competitive bid process.

Council District 7, 8, and 9. (Finance/Public Works)

Documents filed: (1) Memorandum from Scott P. Johnson, Director of Finance, and from Katy Allen, Director of Public Works, dated May 14, 2002, recommending Council adopt resolutions related to the City of San José Limited Obligation Refunding Bonds, Reassessment District No. 02-219SJ (2002 Consolidated Refunding), Bond Series 24R. (2) Supplemental memorandum Scott P. Johnson, Director of Finance, dated May 28, 2002, transmitting the Draft Preliminary Official Statement, for said City of San José Limited Obligation Refunding Bonds. (3) Report titled: Reassessment Report, City of San José, California; Reassessment District No. 02-219SJ, 2002 Consolidated Refunding Bond Series 24R, dated May 31, 2002.

Discussion/Action: Upon motion by Council Member Cortese, seconded by Council Member Chavez, and unanimously carried, Resolution No. 71006, entitled: “Resolution of the City Council of the City of San José Declaring its Preliminary Intention to Refund Specified Limited Obligation Bonds and Directing the Preparation of a Report Thereon”; Resolution No. 71007, entitled: “A Resolution of the Council of the City of San José Approving and Confirming the Report on the Levy of Reassessments and the Refunding of its Limited Obligation Bonds”; and Resolution No. 71008, entitled: “Resolution of the City Council of the City of San José Authorizing the Issuance of its City of San José Limited Obligation Refunding Bonds, Reassessment District No. 02-219SJ (2002 Consolidated Refunding), Series 24R; Approving an Official Notice of Sale, Approving an Official Statement, Authorizing the Execution of Said Bonds; Approving a Fiscal Agent Agreement, Approving a Refunding Escrow Agreement; Approving a Continuing

Disclosure Certificate, and Authorizing Related Actions and the Execution of Related Documents with Respect to the Issuance and Sale of the Bonds”, were adopted. Vote: 11-0-0-0.

4.3 Report on bids and award of a contract for the San José Animal Care Center - Building and Site Improvements, Revised Project, to the low bidder, Dennis J. Amoroso, Inc., for the base bid and Add Alternates Nos. 1 and 2 in the amount of $9,579,000, and approval of a contingency in the amount of $480,000. CEQA: Negative Declaration, H01-01-003. (Public Works)

Documents filed: Memoranda from Director of Public Works Katy Allen, dated May 13 and 28, 2002, reporting on bids and recommending award of said contract to the low bidder, Dennis J. Amoroso, Inc.

Discussion/Action: Mayor Gonzales inquired about actions the City took following the contractor’s work on the San José Repertory Theatre which was deemed unsatisfactory, and was debarment considered. City Attorney Doyle explained that Dennis J. Amorosa, Inc., was the contractor for the San José Repertory Theatre, a project which had numerous problems, in both design and contractor errors, that the issue went to litigation and was settled during pendency of litigation. He stated the City was in the process of moving to debar the contractor based on Staff’s opinion they were not responsible, that the City entered into stipulation with the contractor not to proceed on debarment and they agreed not to bid on any City or Agency contract for three years, as part of the settlement agreement. He stated that proceeding with debarment would have impeded reaching settlement of the litigation and the debarment itself would have become an additional issue in the litigation. Mayor Gonzales asked what type of due diligence Staff conducted regarding the performance of the contractor with other agencies during the time they were barred from bidding on San José contracts. Director of Public Works Katy Allen stated Staff has references from nineteen public projects in 198 different categories, Staff has checked references and noted that the architect on the proposed project is very good in putting together project documents and the project is straight forward whereas the Repertory was very complicated, and added that Staff will have inspectors and construction and project managers on site. Responding to questions from Vice Mayor Shirakawa, Jr., City Manager Borgsdorf stated this is the second time this project was bid and from a financial standpoint, these are lower bids than received when the project was first bid and they could be higher at a third bid. Vice Mayor Shirakawa, Jr., stated he shares similar concerns but because of the short time line and the impact of rejecting all bids, he reluctantly would support approving the contract. Deputy City Manager Kay Winer responded to Vice Mayor Shirakawa, Jr., regarding alternative facilities, that none are available at this time and the San José Humane Society is prepared to work with the City through August 2003 when Staff anticipates opening this facility. She suggested careful monitoring of the project to ensure the facility is built to specifications should produce a good product and enable the City to deliver the quality of service the community desires. Council Member LeZotte asked if the facility would meet green building specifications and Director Allen stated the facility would not be lead certified as required by buildings over 10,000 square feet because it was defined prior to development of the goal of lead certification on all public projects. Council Member Reed stated there is a high standard regarding either debarment or even elimination at the pre-qualification process and suggested that as a public agency the City may not have a choice in proceeding with this contractor because of the public/contracting bidding requirement and state law. Responding to Council Member Reed’s comments, Council Member Chavez suggested Council should hold discussions on the issue of what pre-qualification options are available to the City in future situations. Vice Mayor Shirakawa, Jr., agree Council should revisit that discussion and moved approval of the Staff recommendation. Council Member Chavez seconded the motion. Mayor Gonzales stated he was glad the project would move forward and would provide a facility to upgrade the service level for animal control service in the City of San José, and requested Staff to conduct thorough inspections and provide status reviews to Council of the program. On a call for the question, the motion carried unanimously and the award of said contract to the low bidder, Dennis J. Amoroso, Inc., was approved and its execution authorized, and Staff was directed to provide Council with periodic reports on the progress of the project. Vote: 11-0-0-0.

RECREATION & CULTURAL SERVICES

5.1 Report of the Education, Neighborhoods, Youth, and Seniors Committee – May 20, 2002 Council Member Chavez, Chair

Documents filed: Education, Neighborhoods, Youth and Seniors Committee report of May 20, 2002.

(a) Youth Commission Monthly Report. Attachment: Memorandum from Chair, San José Youth Commission Jennifer Hernandez, dated May 8, 2002, providing said report.

The Committee accepted the report and directed Staff to ensure the June Youth Commission Monthly Report contains recommendations on different ideas to stagger Commissioner appointments.

(b) Skate Park Update. Attachment: Memorandum from Acting Director of Parks, Recreation and Neighborhood Services Albert Balagso, dated May 8, 2002, responding to the Education, Neighborhoods, Youth and Seniors (ENYS) Committee’s request to reformat skatepark information to better identify timeline and proposed funding sources.

The Committee accepted the report and directed Staff to ensure (1) the June Skate Park Update includes [a] an assessment comparing costs between San José and other cities for the building of skate parks; [b] a report on the popularity of skate parks in cities that have had them for a number of years – dropping, staying the same, or increasing; (2) a meeting is scheduled with Chair Chavez to discuss additional skate parks for District 3; and (3) an agreement for a skate park is pursued with Santa Clara Valley Transportation Authority for the Tamien Light Rail Station property.

(c) Update Report from the Airport Ombudsman and Noise Monitoring Center. Attachment: Memorandum from Cathy Gaskell, Airport Ombudsman, dated May 8, 2002, providing an informational report on the Airport Ombudsman and Neighborhood Services Group, and informational updates regarding the Noise Monitoring Section, Environmental Section and the Acoustical Treatment Program.

The Committee accepted the report and directed Staff (1) to submit a report at the June 17, 2002 ENYS Committee meeting on Staff’s contacts with each of the airlines regarding curfew non-compliance, and to include in the report what the airlines are doing proactively to prevent non-compliance in the future; (2) to submit a report at the June 17, 2002 ENYS Committee meeting on the process that communicated to all tenants the reasons for the moratorium imposed by City Council, and to include reactions/questions from the tenants; (3) ensure an approval process for new routes and routes being reinstated are electronically mailed to the ENYS Committee; (4) submit a report at the June 17, 2002 ENYS

Committee meeting on flood control work relating to the Guadalupe Expressway as it interfaces with the entire Airport to H/101; (5) ensure future Quarterly Airport Ombudsman reports include (a) new flight approvals, including arrival and landing times; (b) next steps for installing air quality monitors in airport-area residential neighborhoods; (c) a timeline for determining whether the neighbor-hood wants permit parking for the short term and a timeline to work with the neighborhood once the Automated People Mover is installed; (d) number of calls, nature of calls, and the results of inquiries/complaints from the 24-hour Airport Noise Hotline; (e) under Status/Expected Completion “on going” be changed to a workplan and a trajectory for the end results; (f) “Next Steps” when due dates cross fiscal years; and (g) a workplan and a trajectory with key benchmarks for airlines leases renegotiations in 2007, including policy discussions with Council Members.

(d) San José B.E.S.T.: Cycle XI Mid-year Evaluation/Cycle XII Allocation Report. Attachment: (1) Memorandum from Acting Director of Parks, Recreation and Neighborhood Services, Albert Balagso, recommending the City Council (a) approve the San José B.E.S.T. Cycle XII Allocation Plan for 2002-2003; (b) approve the 2002-2005 Mayor’s Gang Prevention Task force Strategic Work Plan, and (c) adopt a resolution authorizing the City Manager to negotiate and execute grant agreements with the San José B.E.S.T. Eligible Service Providers, consistent with the Cycle XII Allocation Plan for a total amount not to exceed $3,955,800. (2) Report entitled: San José BEST Cycle XII Allocation Report. (3) Report entitled: BEST Cycle XI, Interim Evaluation Report, FY 2001-2002, Mayor’s Gang Prevention Task Force, dated April 30, 2002.

The Committee accepted the report and directed Staff to ensure (1) the Final Evaluation Report FY 2001-2002, BEST Cycle XI include identifying new sources of funding and graduation statistics for the last 5 years, including the amount of money that is lost to schools through truancy; and (2) attendance of Police Department personnel at the September 16, 2002 ENYS Committee meeting and a report on the 24% increase in gang-related crimes and the budgetary decision to close TABS; also include TABS statistics for the last year and a half including numbers, repeat offenders, what occurred when offenders were picked up three or more times, i.e., counseling, reasons for truancy – alcohol, drugs, boredom, home problems?

(e) Implementation of Expanded Books for Little Hands. Attachment: (1) Memorandum from City Librarian Jane Light, dated May 8, 2002, transmitting said report. (2) Hard copy of overhead presentation on the “Books for Little Hands” program given by Library Staff to the Education, Neighborhoods, Youth, and Seniors Committee.

The Committee accepted the report and directed Staff to (1) organize a workshop for childcare providers with District 10 as the host, and invite Districts 2 and 9 to participate; and (2) schedule a presentation of the “Implementation of Expanded Books for Little Hands” for the May 29, 2002 Child Care Meeting.

(f) Oral Petitions - None Presented.

(g) Adjournment - The meeting was adjourned at 4:00 p.m.

Discussion/Action: Upon motion by Council Member Chavez, seconded by Council Member LeZotte, and unanimously carried, the Education, Neighborhoods, Youth and Seniors Committee report and actions of May 20, 2002, were accepted. Vote: 11-0-0-0.

5.2 Consideration of the Parks and Recreation Commission’s recommendation to name the swimming pool complex at Bacchus Drive near Crucero Drive the “San José Recreational Swim Center.” Council District 7. (City Clerk/Parks and Recreation

Documents filed: None.

Discussion/Action: This item was deferred to June 11, 2002.

5.3 Approval of the Penitencia Creek Park Chain Reach 2 Master Plan. CEQA: Mitigated Negative Declaration, PP01-03-062. Council District 4. (Parks, Recreation and Neighborhood Services)

Documents filed: (1) Memorandum from Council Member Reed, dated June 3, 2002, recommending City Council approve the Staff recommendation for the Penitencia Creek park Chain Reach 2 Master Plan, with the following modifications and directions for phasing of work: [1] The first priority is getting a revised joint use agreement completed with the Santa Clara Valley Water District and Santa Clara County as soon as possible; [2] the second priority is removing the gates that block access to the existing trail along the creek from the east and from the west and removing fences that block access elsewhere around the percolation ponds; [3] focus time and money on making the existing trail through Reach 2 usable; and [4] move the bridge between Ponds 1 and 2 from Phase I Implementation into Phase II Implementation. (2) Memorandum from Acting Director of Parks, Recreation and Neighborhood Services Albert Balagso, dated May 13, 2002, recommending City Council approval of the Penitencia Creek Park Chain Reach 2 Master Plan. (3) Report entitled: Penitencia Creek Park Chain Reach 2 Park Master Plan Narrative Report, May 2002, prepared by the City of San José Parks, Recreation & Facilities Division, Department of Public Works, by Amphion.

Discussion/Action: Council Member Reed stated the Penitencia Creek Master Plan is over twenty five years old and it is great to be able to move to implementation. He stated his memorandum recommending how to proceed, setting priorities in a pragmatic fiscal approach, to getting as many trails in use as possible. Upon motion by Council Member Reed and seconded by Council Member Chavez, and unanimously carried, Council approved the recommendations from Council Member Reed, dated June 3, 2002, approving the Staff recommendation for approval of the Penitencia Creek Park Chain Reach 2 Master Plan with the following modifications and directions for phasing of work: (1) The first priority is getting a revised joint use agreement completed with the Santa Clara Valley Water District and Santa Clara County as soon as possible; (2) the second priority is removing the gates that block access to the existing trail along the creek from the east and from the west and removing fences that block access elsewhere around the percolation ponds; (3) focus time and money on making the existing trail through Reach 2 usable; and (4) move the bridge between Ponds 1 and 2 from Phase I Implementation into Phase II Implementation. Vote: 11-0-0-0.

TRANSPORTATION SERVICES

6.1 Approval of staff’s report on the implementation date of the Horace Mann and South University Residential Parking Permit Program. (Transportation)

(Deferred from 5/21/02 – Item 6.1 and 5/28/02 – Item 6.3)

Documents filed: Memorandum from, Director, Transportation Wayne Tanda, dated May 31, 2002, recommending Council approval of the Staff report on the implementation date of the Horace Mann and South University Residential Parking Permit Program.

Discussion/Action: Lisa Jerse, University Neighborhood Association, spoke in support of the proposal. Upon motion by Council Member Cortese, seconded by Council Member Diquisto, and unanimously carried, the Staff report on the implementation date of the Horace Mann and South University Residential Parking Permit Program was approved. Vote: 9-0-0-2. Disqualified: Chavez, Shirakawa, Jr.

AVIATION SERVICES

8.1 Approval of a second amendment and continuation agreement to Newsstand and General Merchandise Agreement and Lease with DFS Group L.P. (“DFS”), 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. CEQA: Resolution No. 67380. (Airport)

Documents filed: None.

Discussion/Action: This item was deferred to June 11, 2002.

8.2 Approval of 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 (“FIS”), 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: None.

Discussion/Action: This item was deferred to June 11, 2002.

PUBLIC SAFETY SERVICES

9.1 Report on bids, waive a minor irregularity, and award the purchase of one 1500 gallons-per-minute custom pumper apparatus, for the Fire Department, to the lowest responsive bidder, Kovatch Mobile Equipment Corporation, KME, (Nesqueshoning, PA), at a total cost of $384,030.95, including tax, and authorizing the Director of General Services to execute the purchase order for the:

(a) Immediate purchase of one 1500 gallons-per-minute pumper apparatus; and

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

(General Services)

Documents filed: Memorandum from Director of General Services Jose Obregon, dated May 13, 2002, recommending Council approve a waiver of a minor irregularity and award said purchase to lowest responsive bidder Kovatch Mobile Equipment Corpor-ation, KME, (Nesqueshoning, PA), and authorize the Director of General Services to execute the purchase order for the immediate and subsequent purchase at the same bid price without further Council action other than the appropriation of necessary funds.

Discussion/Action: Ross Signorino spoke on the issue. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the minor bid irregularity and award of said purchase to the lowest responsive bidder, Kovatch Mobile Equipment Corporation, KME, were approved and its execution authorized. Vote: 11-0-0-0.

3.4 Interview of applicants and appointments to fill four vacancies on the Planning Commission, three applicants to be appointed to four-year terms, ending June 30, 2006, and one applicant to be appointed to an unexpired term ending June 30, 2004. (City Clerk)

Documents filed: Memorandum from City Clerk Patricia L. O’Hearn, dated May 23, 2002, reporting on Planning Commission applicants selected to be interviewed by the City Council for the four open positions.

Discussion/Action: The City Council interviewed fourteen (14) applicants – Salvador Alvarez, Miriam Ayllon, Xavier Campos, Elizabeth Cord, Matt Kamkar, Scott Lefaver, Robert Levy, Helen Wang Longwell, Geri Nave, Lan Nguyen, Christopher Platten, James Spence, Wendy Teague, and James Zito, to fill four vacancies on the Planning Commission. On the first ballot, Council reappointed Incumbent Robert Levy. On the second ballot, none of the remaining candidates received the minimum number of votes to quality for appointment. On the third ballot, Council appointed Xavier Campos and James Zito, and appointed Christopher Platten to fill the unexpired term ending June 30, 2004. Vote: 10-0-0-1. Disqualified: Council Member Campos.

OPEN FORUM

Ross Signorino commented on the blight ordinance and its affect on property owners.

RECESS/RECONVENE

Following Open Forum, the City Council recessed at 6:31 p.m. and reconvened at 7:05 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 read the requests for continuances of applications and other actions as recommended. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Council Member Chavez, and unanimously carried, the below noted continuances were granted. Vote: 11-0-0-0.

4.4 Approval of:

(a) The Mayor’s recommendations regarding the Rental Housing Task Force Report.

(b) An ordinance amending Chapter 23 of Title 17 of the San José Municipal Code by: (1) adding requirements that owners of units covered by the Rental Dispute Ordinance provide the City with certain notices of eviction and information related to the tenancy; (2) limiting the ability of a property owner to pass through as rent the cost of an equity refinance except in cases of extreme hardship to landlord; (3) increasing civil penalties for owners who violate the Rental Dispute Ordinance; (4) creating a civil cause of action under the Rental Dispute Ordinance for illegally evicted tenants; and, (5) requiring property owners to disclose to potential buyers that a building is subject to rent control; and (6) creating a right for the recovery of attorneys’ fees by any prevailing party in a civil action brought under the Rental Dispute Ordinance.

(Mayor)

Documents filed: Memorandum from Mayor Gonzales and Council Member Cortese, dated May 23, 2002, recommending the City Council approve recommendations, listed in Attachment A attached thereto, based on the Mayor’s Rental Housing Task Force report, and in addition, recommending the following actions related to the City’s rental housing community: (a) Direct the Administration to create a mediation service available to landlords and tenants who wish to resolve eviction disputes voluntarily; and (b) Direct the Administration to adjust the fees charged to landlords under the rent control ordinance in order to recover the City’s costs for the additional services or enforcement that will be required as a result of the proposed amendments to the Rent Control Ordinance. (2) Correspondence from approximately 13 residents commenting on the proposed ordinance amendments. (3) Correspondence from Kathryn M. Thibodeaux, CEO, Tri-County Apartment Association, supporting the proposed ordinance amend-ments.

Discussion/Action: Mayor Gonzales presented the following schedule for speakers to address the Council, that he will designate 25 minutes for each side of this issue, i.e, the groups representing tenants’ right and groups representing property owners and landlords. He stated those who have organized the tenants will begin and may use their 25 minutes in any way desired; followed by a presentation on the Staff’s and the Mayor’s recommendations, after which the representatives of property owners and landlords represented by the Tri-County Apartment Association will present their 25 minutes of speakers, and noted he will allocated five minutes to each side for anyone not associated with either group to speak, giving each side a total of 30 minutes. Mayor Gonzales stated his memorandum, co-authored with Council Member Cortese presents recommendations for Council’s consideration, listed in Attachment A therein, based on the Mayor’s Rental Housing Task Force Report, and directing the Administration take additional actions related to the City’s rental housing community, to create a mediation service and adjust landlord fees under the rent control ordinance to cover the City’s enforcement costs, as described therein. He thanked the members of the Rental Housing Task Force, which was comprised of stakeholders representing very different constituencies, and included landlords, tenants, community leaders, real estate professionals and housing advocates and developers, for their work in finding creative and effective ways of meeting the real challenges facing San José tenants and landlords, and develop solutions that would benefit the entire rental community, and acknowledged the efforts of co-chairs John Doherty and Mark Lazzarini.

Mayor Gonzales stated rental issues have a real personal urgency to the families who are affected by high rents, unsafe conditions or the threat of eviction, and is the reason that he and Council Member Cortese made every effort to bring landlord and tenant groups together to arrive at a fair compromise that would result in safe homes, stable families and strong neighborhoods. He stated that although he and Council Member Cortese believe that a practical compromise was developed, he was disappointed to find that other interests were not willing to bend enough to make it successful at this time. For that reason, he stated he and Council Member Cortese are not bringing forward a compromise on tenant protections today, but are recommending a broad range of solutions that will benefit both property owners and tenants. He stated these recommendations will protect the stability of families, ensure safe housing, and preserve existing affordable housing and strengthen neighborhoods. He noted that keeping San José a community of which everyone can be proud requires a fine balance between tenant protections and property owners’ flexibility to run their businesses. He stated the recommendations contrast in some cases with those of the Task Force, but in most cases are identical. Mayor Gonzales called forward the tenant representatives to begin their 25-minute presentations, to be followed by five minutes for individual speakers, limited to one minute each. Faye Lampkins introduced tenant representatives: Susan Price-Jang, PACT, spoke and read a letter from Amy Dean, Executive Director South Bay Labor Council; Harry Adams, SEIU Local 715 South Bay Labor Council, and Interfaith Council of Santa Clara County, John Doherty Co-Founder of the Santa Clara Tenant Association, Lilia Valencia, ACORN, Katherine Bock, Low Income Self Help Center, Judy Chirco, Bob Brownstein, Robyn Vallejos, CHAM. Individual speakers on the tenant side: Carol Bantessa, Sharon Staegger, Fred Hirsch, Rob Malanari, Marty Pedersen, and Irene Martelle spoke for one minute each. Speakers representing landlords/property owners were: Kathy Thibodeaux, Tri-County Apartment Association (TCAA), Thomas Scott, California Apartment Association (CAA), Jim Cunneen, San José Silicon Valley Chamber of Commerce, Ed Stafford, San José Coalition for Safe Neighborhoods (SJCSN), Mike Fitzgerald, Roger Grossenbacher, SJCSN, Paul Aparri, Aysha Guraydin, SJCSN, Dave Elsbach, Amber Realty Property Management, Lucille Modavia, followed by individuals speakers for one minute each: Myron Glazier, Ken Eoff, Shelley Williams, SJCSN, Mark Lazzarini, Task Force Co-Chair.

Council Member Cortese moved approval his and the Mayor’s recommendations on the Rental Housing Task Force report. Council Member Chavez seconded the motion. Council Member Cortese thanked everyone who voiced their opinions, and those who worked on the Task Force. He stated when the Economic Development and Environment Committee met recently and were requested by a large number of people attending that the issue of eviction reform be immediately placed on the City Council agenda, the Committee choose instead to follow the Mayor’s recommendation to defer the issue to the Mayor’s Rental Housing Task Force, in the belief that people would work in good faith to resolve some of the outstanding issues. He stated that reports from the Task Force indicated the process was difficult at times but consensus was eventually reached and is reflected in the recommendation before the Council today. He stated that those representing both sides of the issue the need to work in a reasonable, moderate manner to arrive at compromises that work for both sides, and stressed that some tactics that have been used to lobby City Hall on this issue are neither appropriate nor effective, and expressed the hope that everyone can get beyond that to have true dialogue. He stated the Mayor’s Office provided the leadership and staffing to allow compromise discussions to happen and for progress in reaching a settlement. He stated he is not including in the motion any action item that resumes a process of mediation or negotiation or compromise because people cannot be forced to enter mediation or negotiations. However, he expressed the hope that people will be interested in coming together to resume dialogue on a process that would be separate from what Council is doing tonight. He stated both sides realize the impact on this issue of the market cycles in the rental market, creating situations such as tight rental markets which need to be addressed in the short term, and one way to address market fluctuations long term is to follow the leadership the Mayor has provided over the last few years, build affordable housing and encourage all small cities in the region to build their share of housing, and that both tenants and landlords need to have respect for each other.

Council Member Reed stated he supports the motion; however, has concerns about language in the draft ordinance that pertains to the notices that would be given to the City and the disclosure of potentially personal information about tenants, and requested the City Attorney review the issue of protection of the tenant privacy between now and the second reading of the ordinance. Council Member Dando expressed support for the recommendation, stated there are two issues upon which everyone agrees and that is that bad landlords need to be eliminated good tenants protected, and one of the goals of the recommendation is to collect information which can substantiate where there are bad landlords and remove them. Council Member Williams stated the negotiations have come a long way toward the goal of protecting tenants from unjust eviction and expressed concerns about not leaving loopholes that would thwart that objective. Council Member Chavez expressed an interest in how the budget process will be impacted by the process, and commended the Mayor for his progressive solutions which are inclusive of everyone’s needs. Council Member Yeager commented on the other issues which haven’t been addressed, such as making renters aware of their rights under the rent control ordinance, and expressed hope that discussions will continue to come up with a final compromise that will work for everyone. Council Member LeZotte requested Staff to report back on the mechanism which will be used in the eviction notice process and how the process will be tracked. Mayor Gonzales concluded by thanked everyone again for sustained efforts throughout the process, and thanked Council Member Cortese for his collaborative efforts in bringing the recommendation forward.

On a call for the question, the motion carried unanimously, the recommendations on the Rental Housing Task Force Report, Attachment A, as proposed in the May 23, 2002 memorandum from Mayor Gonzales and Council Member Cortesé, with the Administration directed to (1) create a mediation service available to landlords and tenants who wish to resolve eviction disputes voluntarily, and (2) to adjust the fees charged to landlords under the rent control ordinance in order to recover the City’s costs for the additional services or enforcement that will be required as a result of the proposed amendments to the Rent Control Ordinance, were approved; the City Attorney was directed to review the section regarding the notices that are given to the City and the disclosure of potential personal information related to tenants, and to report back to Council at the final adoption of the ordinance, and regarding Recommendation No. A2 of the Task Force Report, Staff was directed to identify the monitoring mechanism to be used to ensure compliance; and Ordinance No. 26649, entitled: “An Ordinance of the City of San José Amending Chapter 17.23 of Title 17 of the San José Municipal Code by: Creating a New Section 17.23.030 to Require Landlords to Provide the City with Copies of Certain Notices to Quit; Amending Section 17.23.440 and Creating a New Section 17.23.451 to Prohibit Landlords from Passing Through to Tenants in Rent Increases the Costs of Certain Equity Refinances Except in Cases of Hardship to a Landlord; Amending Section 17.23.500 and Creating a New Section 17.23.505 to Increase the Applicable Penalties Under this Ordinance to the Greater of $2500 Per Day Per Occurrence or $10,000; Creating a New Section 17.23.550 to Create a Civil Cause of Action for Tenants Who Have Been Evicted in Violation of this Ordinance; and Creating Section 17.23.560 to Require Owners to Disclose to a Potential Buyer that such Properties are Covered by this Chapter”, was passed for publication. Vote: 11-0-0-0.

5.4 Approval of the Tully-Senter Strong Neighborhoods Initiative, Neighborhood Improvement Plan as the shared vision for the revitalization of the area. CEQA: Resolution No. 65459. Director of Planning, Building and Code Enforcement and Planning Commission recommend approval (5-0-1). Council District 7. SNI: Tully-Senter. (Planning, Building and Code Enforcement)

Documents filed: (1) Memoranda from Secretary of the Planning Commission Stephen M. Haase, dated May 17 and 23, 2002, stating the Planning Commission on May 22, 2002, voted to recommend the City Council [1] Approve the Strong Neighborhoods Initiative Tully-Senter Neighborhood Improvement Plan, as a shared City/community vision for improvement of the Tulley-Senter Neighborhoods Area; [2] Authorize the Administration to direct the City Departments and Agencies to begin their respective activities, including the general oversight of the implementation of the Plan by the Department of Parks, Recreation and Neighborhood Services, and [3] Encourage the Tully-Senter Neighborhood property owners, residents and community members to dedicate their time, energy and resources to implement the recommendations of the Plan. (2) Report entitled: Tully-Senter Neighborhood Improvement, Strong Neighborhoods Initiative, May 2002. (4) Proof of publication of Notice of Hearing, executed May 19, 2002, submitted by the City Clerk.

Discussion/Action: Stephen M. Haase, Director, Department of Planning, Building and Code Enforcement, introduced Muhammed Chaundry, Co-Chair of the Tully-Senter SNI Advisory committee, who led a delegation of memb