MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, AUGUST 6, 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, Gregory, 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 Legal Counsel pursuant to Government Code Section 54956.9; under Subsection (a) to discuss existing litigation in the cases of (1) In re Carter, (2) Sutter’s Place dba Bay 101, et al. v. City of San José, et al, (3) Garden City, Inc. v. City of San José, (4) Wing and A Prayer, Inc. v. City of San José, et al; to discuss anticipated litigation pursuant to Subsection (b) of Government Code Section 54956.9, in one matter involving significant exposure to litigation, and one matter involving the initiation of litigation, pursuant to Subsection (c) of Government Code 549576.9.

By unanimous consent, Council reconvened from the Closed Session and recessed at 10:55 a.m. and reconvened at 1:36 p.m. in the Council Chambers.

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

Absent: Council Members - None.

Invocation

Pastor Tony Williams delivered the Invocation. (District 7)

Pledge of Allegiance

Mayor Gonzales led in the Pledge of Allegiance.

Orders of the Day

Upon motion by Council Member Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the Orders of the Day and the Amended Agenda were approved. Vote: 11-0-0-0.

CEREMONIAL ITEMS

1.1 Presentation of a commendation to Michael S. Edwards who has retired from the San José Search and Rescue Team. (Dando)

Documents filed: None.

Discussion/Action: Joining Mayor Gonzales at the podium was Council Member Dando to commend Michael S. Edwards for his efforts on the San Jose Search and Rescue Team. The plaque will be mailed to the recipient, as he was not present.

1.2 Presentation of a commendation recognizing the local contributors and hosts of the 2002 NCAA Men's Division I Western Regional Basketball Championship. (Mayor)

Documents filed: None.

Discussion/Action: Mayor Gonzales was joined at the podium by Council Members Cortese and LeZotte to present the commendation to San Jose Sports Authority Executive Director Dean Munro and Chair of the San Jose Sports Authority Victor Arranaga, Santa Clara University Director of Athletics Cheryl Levick, San Jose Convention and Visitor Bureau President and CEO Dan Fenton, Fairmont Hotel General Manager Cyril Isnard, Crown Plaza San Jose and Wyndam Hotel Director of Sales and Marketing Devin Kessler, Doubletree Hotel San Jose Sales Manager Todd Simmons, Hotel De Anza Director of Sales Stacy Carroll and Hilton San Jose Director of Sales Patricia Morreale.

1.3 Proclamation declaring August 6, 2002 as National Night Out. (Police)

Documents filed: None.

Discussion/Action: Mayor Gonzales was joined at the podium by Chief of Police William Lansdowne, Captain Randy Cooper and Crime Prevention Specialist Tamara Davis and proclaimed August 6, 2002 as National Night Out.

1.4 Presentation of commendation to Dianna Shuster for her commitment to theater arts and excellence as Artistic Director for the American Musical Theater of San Jose. (Yeager)

Documents filed: None.

Discussion/Action: Joining Mayor Gonzales at the podium was Council Member Yeager for the commendation to commend Dianna Shuster for her commitment to the theater and arts in San Jose.

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.

2.1 Approval of City Council Minutes for:

(a) Regular meeting of January 8, 2002

(b) Regular meeting of January 15, 2002

(c) Regular meeting of January 22, 2002

Documents filed: Minutes of Regular meetings of January 8, 15 and 22, 2002.

Discussion/Action: The minutes of January 8, 15 and 22, 2002, were approved.
Vote: 11-0-0-0.

2.2 Final adoption of ordinances:

(a) ORD. NO. 26659 – Adopts the Fifteenth Amended Century Center Redevelopment Plan, and makes certain findings.

[Deferred from 6/25/02 – Item 2.2(c)]

(This Item heard with Item 10.1)

(b) ORD. NO. 26660 – Amends the Julian-Stockton Redevelopment Plan, the Olinder Redevelopment Plan, the Century Center Redevelopment Plan, the San Antonio Plaza Redevelopment Plan, the Rincon de Los Esteros Redevelopment Plan, the Pueblo Uno Redevelopment Plan, the Edenvale Redevelopment Plan, the Guadalupe-Auzerais Redevelopment Plan, the Market Gateway Redevelopment Plan, the Alum Rock Avenue Redevelopment Plan, the East Santa Clara Street Redevelopment Plan, the Almaden Gateway Redevelopment Plan, the Story Road Redevelopment Plan, The Alameda Redevelopment Plan, the West San Carlos Street Redevelopment Plan, the Japantown Redevelopment Plan, the Monterey Corridor Redevelopment Plan, the Park Center Redevelopment Plan, the Civic Plaza Redevelopment Plan, the Neighborhood Business Clusters Redevelopment Plan, and the area added by the Fifteenth Amended Century Center Redevelopment Plan to effect the merger of said Redevelopment project areas, and makes certain findings.

[Deferred from 6/25/02 – Item 2.2(d)]

Documents Filed: See Item 10.1 for documents filed.

Discussion/Action: See Item 10.1 for Council action taken.

2.2 Final adoption of ordinances:

(c) ORD. NO. 26693 – Amends Section 3.36.020.3 of Chapter 3.36 of Title 3 of the San José Municipal Code to include incentive pay for Police anti-terrorist training in compensation and to clarify the emergency medical technician pay is included in compensation for purposes of calculation of benefits in the Police and Fire Department Retirement Plan.

Documents Filed: Proof of Publication of the Title of Ordinance No. 26693, executed on July 2, 2002, submitted by the City Clerk.

Discussion/Action: William Garbett spoke to the issue. Ordinance No. 26693 was adopted. Vote: 11-0-0-0.

(d) ORD. NO. 26700 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Arcadia Contractors, Inc. dba Arcadia Demolition Services and BWS Recycling.

Documents Filed: Proof of publication of the title of Ordinance No. 26700, executed on July 9, 2002, submitted by the City Clerk.

Discussion/Action: Ross Signorino spoke on the issue. Ordinance No. 26700 was adopted. Vote: 11-0-0-0.

2.3 Approval of a first amendment to the commercial air cargo operating agreement with United Parcel Service, Inc. extending the term of the agreement from August 1, 2002 through July 31, 2007, with an estimated annual revenue to the City of $342,055. CEQA: Resolution No. 67380. (Airport)

(Deferred from 6/18/02 – Item 2.5 and 6/25/02 – Item 2.62)

Documents Filed: (1) Memorandum from Council Members Yeager and Chavez, dated August 2, 2002, recommending Council approve the contract with United Parcel Service for air cargo operations at Norman Y. Mineta San José International Airport, as modified, which includes specific language regarding hours of operation, and Staff is directed to negotiate all air cargo commercial airline operators to include similar contractual provisions in all future agreements to keep operations within non-curfew hours of the day. (2) Memorandum from Council Members Yeager and Chavez, dated June 24, 2002, recommending Council defer approval of the contract with United Parcel Service (UPS) at the Norman Y. Mineta International Airport, and direct Staff to negotiate an agreement that includes the incorporation of specific language regarding hours of operation, contained in Attachment A thereto, and direction Staff to begin negotiations with all air cargo operators at the Airport to include similar contractual provisions in the Air Cargo Agreements to keep operations within non-curfew hours of the day. (3) Memorandum from Aviation Director Ralph G. Tonseth, dated May 28, 2002, recommending approval of a first amendment to said agreement with United Parcel Service, Inc.

Discussion/Action: Council Member Yeager moved approval of modified language for the contract with UPS as contained in a memorandum from Council Member Chavez and himself, dated August 2, 2002, which directed Staff to negotiate with all air cargo and commercial airline operators to include similar contractual provisions in all future agreements to keep operations within non-curfew hours of the day. Council Member Chavez seconded the motion. Council Member Yeager explained that when this contract came to the Council several months ago, he suggested that Staff determine if there was potential to have the language included in the contract with UPS that they would not fly within the curfew. He indicated that he is concerned about the curfew, that the City needs to be vigilant in protecting the sleep of residents in San Jose, and that he understands UPS does not have a problem with including the language in their contract. He asked Staff about including this language in other air cargo and commercial aircraft contracts and what other steps can the City take to help protect against curfew violations, and how to make sure that the Stage III hush kitted planes do not start in great numbers flying back into San Jose. Director of Aviation Ralph Tonseth responded that this was the first attempt to get this new language in a contract with an air carrier at San Jose, and UPS was very cooperative and agreed to sign this language. He indicated that Staff will continue, as contracts come up for renewal, to insert similar language; however, he stated that he does not know how the others will react with regard to the additional language. He added that there is a lot of effort around the curfew, and Staff is working very hard to preserve the quality of life for citizens of San Jose, at least as good as currently they have, but better; and that his personal goal is to have no commercial service during curfew hours. Council Member Yeager emphasized to Staff to be creative and possibly look how other airports are dealing with these issues, if there are things to put in contracts in the future. The first amendment to said agreement with United Parcel Service, Inc., was approved and its execution authorized, with the direction to Staff to include curfew information for commercial airline operator, as outlined in Council Members Yeager and Chavez’ August 2, 2002 memorandum. Vote: 11-0-0-0.

2.4 Approval of a ninth amendment to the Federal Inspection Services Facility lease agreement with Williams Scotsman to extend the lease on a month-to-month term from August 1, 2002, subject to termination by the City on 30-days notice, at a total monthly cost not to exceed $13,790, plus applicable sales tax. CEQA: Resolution No. 67380. (Airport)

Documents Filed: Memorandum from Aviation Director of Aviation Ralph Tonseth, dated July 17, 2002, recommending Council approve ninth amendment to the Federal Inspection Services Facility Lease Agreement with Williams Scotsman.

Discussion/Action: The ninth amendment to said lease agreement with Williams Scotsman was approved and its execution authorized. Vote: 11-0-0-0.

2.5 Approval of Council Member Pat Dando’s travel to Albuquerque, New Mexico, from June 27-June 30, 2002, to attend the National Association of Latino Elected & Appointed Officials (NALEO) Educational Fund Annual Conference. Funding: NALEO. (Dando)

Documents Filed: Memorandum from Council Member Dando, dated June 20, 2002, requesting approval of said travel to Albuquerque, New Mexico.

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

2.6 Adoption of a resolution authorizing the City Manager to:

(a) Restructure the Revolving Loan Fund (RLF) into a loan loss reserve program, anticipating that approximately $220,000 will be placed in a joint trust account for this purpose.

(b) Negotiate and execute a contract and develop an administrative plan for operation of the RLF after a Request for Proposal process.

(c) Amend the Administrative Plan for the Development Enhancement Special Fund in conjunction with the Fund Advisory Board.

(Economic Development)

Documents Filed: None.

Discussion/Action: This Item was deferred to August 13, 2003.

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. CEQA: Not a project. (Library)

Discussion/Action: Memorandum from Library Director Jane Light, dated July 17, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71141, entitled: “A Resolution of the Council of the City of San José Accepting Donations from the Friends of the San José Main Library for the Summer Reading Program in the Amount of $10,000”, was adopted. Vote: 11-0-0-0.

2.8 Adoption of a resolution naming three private streets located at the east side of South Winchester Boulevard approximately 400 feet south of Stevens Creek Boulevard (Santana Row). CEQA: Exempt. Council District 6. Director of Planning, Building and Code Enforcement and Planning Commission recommend approval (7-0-0). (Planning, Building and Code Enforcement)

Documents Filed: Memorandum from Director of Planning, Building and Code Enforcement Stephen M Haase, dated July 17, 2002, recommending Council approve the naming of three private streets located at the east side of South Winchester Blvd.

Discussion/Action: Resolution No. 71142, entitled: “A Resolution of the Council of the City of San José Naming Three Private Streets at the East Side of South Winchester Boulevard Approximately 400 Feet South of Stevens Creek Boulevard (Within a Development Commonly Known as “Santana Row”) to Russelia Lane, Zelkova Lane and Alyssum Lane”, was adopted. Vote: 11-0-0-0.

2.9 Report on bids and award of contract for the Phase I-Camden Community Center Multi-Service Project to the low bidder, Wattis Construction, in an amount of $233,444, and approval of a contingency in an amount of $12,000. CEQA: Negative Declaration, PP01-11-208. Council District 9. SNI: Union and Curtner. (Public Works)

Documents Filed: Memorandum from Public Works Director Katy Allen, dated July 17, 2002, recommending Council approve report on bids and award of contract to lowest bidder, Wattis Construction.

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

2.10 Approval of an agreement with A-N West, Inc., for consultant services for the Los Gatos Creek Trail Reach 4 - Lincoln/Auzerais Project, for an agreement term from date of execution to December 31, 2003, for a base fee in the amount of $259,660, and additional services in the amount of $21,000, for a total agreement amount not to exceed $280,660. CEQA: Exempt, PP02-06-176. Council District 6. SNI: Burbank/Del Monte. (Public Works)

Documents Filed: Memorandum from Public Works Director Katy Allen, dated July 17, 2002, requesting to Council approval of Los Gatos Creek Trail Consultant Agreement.

Discussion/Action: The agreement with A-N West, Inc., was approved and its execution authorized. Vote: 11-0-0-0.

2.11 Adoption of a resolution authorizing the City Manager to negotiate and execute a continuation agreement with CH2M Hill, Inc., for the Old Oakland Road Storm Drain Pump Station Project, extending the term of the agreement from June 2, 2002 to December 1, 2002, at no additional cost to the City. CEQA: Exempt, PP99-06-145. Council District 4. (Public Works)

Documents Filed: Memorandum from Public Works Director Katy Allen, dated July 17, 2002, to Council approval of Consultant Continuation Agreement with CH2M Hill, Inc., for above said project.

Discussion/Action: Council Member Cortese asked if there is any fiscal impact to the extension. Katy Allen, Director of Public Works, responded that there is no fiscal impact, that this keeps the consultant on board until the project completion which is expected the first part of September. Resolution No. 71143, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Continuation Agreement with CH2M Hill, Inc. for the Old Oakland Road Storm Drain Pump Station Project, Extending the Term of the Agreement through December 1, 2002, at No Additional Cost”, was adopted. Vote: 11-0-0-0.

2.12 Approval of Council Member Forrest Williams’ travel to Los Angeles, CA, New York, NY, and Philadelphia, PA, from July 19-22, 2002, for on-site due diligence visits. Funding: Retirement Department. (Williams)

Documents filed: Memorandum from Council Member Williams, dated July 15, 2002, requesting approval for said travel from July 19-22, 2002.

Discussion/Action: The travel for Council Member Williams from July 19-22, 2002, was approved. Vote: 11-0-0-0.

2.13 Adoption of a resolution authorizing the City Manager to extend the deadline for submission of responses to the Request for Renewal Proposal for cable franchise. (City Manager’s Office)

Documents Filed: Memorandum from Assistant City Manager Mark Linder, dated August 2, 2002, recommending Council extend the deadline for submission of responses to the Request for Renewal Proposal for cable franchise.

Discussion/Action: William Garbett spoke to the issue. Council Member Cortese moved to approve the Staff recommendation with one additional modification; to authorize the City Manager to extend the deadline for a period not to exceed thirty (30) days, and if an extension is authorized that an equivalent amount of time be taken off the City’s review period for the proposal. Mayor Gonzales expressed his concern with the process, that direction to Staff was to wrap up the process only because AT&T committed to resolving this issue in the next few weeks; but Council has made very clear their frustration with the process and has asked Staff to keep track of it and hopefully send information to Congress after this is over. He added that he believes this is a frustration that all Mayors and Councils are having in Santa Clara County and one more example of where something was reviewed as a positive, meaning deregulation, but has resulted in a monopoly, just the opposite of what was promised under deregulation. Resolution No. 71144, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Extend the Deadline for Submission of Responses to the Request for Renewal Proposal for Cable Franchise”, was adopted, and the City Manager was authorized to extend the deadline for a period not to exceed 30 days for submission of responses to the Request for Renewal Proposal and that an equivalent amount of time be taken off the City’s review period for the proposal. Vote: 11-0-0-0.

2.14 Adoption of a resolution accepting grant funding from the State of California, Dr. Paul Chaffee Zoological Program under the California Safe Neighborhood Parks, Clean Water, Clean Air and Coastal Protection Bond Act of 2000 for Happy Hollow Park and Zoo, for an amount not to exceed $270,050. Council District 7. SNI: Tully/Senter. (Parks, Recreation and Neighborhood Services)

(Rules-in-lieu referral 7/31/02)

Documents Filed: Memorandum from Acting Director of Parks, Recreation and Neighborhood Albert Balagso, dated July 30, 2002, recommending to Council adoption of above said resolution to accept grant funding from the State of California.

Discussion/Action: Resolution No. 71145, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Accept a Grant from the California Department of Parks and Recreation, Dr. Paul Chaffee Zoological Program, Under the California Safe Neighborhood Parks, Clean Water, Clean Air, and Coastal Protection Bond Act of 2000 for Happy Hollow Park and Zoo in an Amount Not to Exceed $270,050, and to Execute all Related Documents”, was adopted. Vote: 11-0-0-0.

STRATEGIC SUPPORT SERVICES

3.2 Report of Rules In Lieu – July 24, 2002

Vice Mayor Shirakawa, Jr., Chair

Documents filed: Rules Committee report of July 24, 2002.

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

(b) City Council

(1) Review August, 2002 Draft Agenda

(a) Additions

(1) Present a commendation to Michael S. Edwards who has retired from the San Jose Search and Rescue Team.

(2) Present a commendation recognizing the local contributors and hosts of the 2002 NCAA Men’s Division I Western Regional Basketball Championship.

(3) Present a commendation to Diana Shuster for her commitment to theatre arts and excellence as Artistic Director for the American Musical Theatre of San Jose.

(4) Approve Council Member Pat Danto’s travel to Albuquerque, New Mexico, from June 27-30, 2002, to attend the National Association of Latino Elected & Appointed Officials Educational Fund Annual Conference.

(5) Approve Council Member Forrest Williams’ travel to Los Angeles, CA, New York, NY, and Philadelphia, PA from July 19-22, 2002 for on-site due diligence visits for the Federated City Employees Retirement System Board of Administration.

(c) City Council Committees

(1) Amendments to Council Committee Agendas

(a) Finance and Infrastructure Committee - None filed.

(b) Economic Development and Environment Committee. Attachment: Amended draft agenda for the August 5, 2002 Economic Development and Environment Committee.

Action was taken to add the following item to the August 5, 2002 Economic Development and Environmental Committee agenda: “Quarterly Report on the Rental Dispute Program”.

(c) Education, Neighborhoods, Youth, and Seniors Committee

None were 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 - There were none.

(i) Oral communications - None were presented.

(j) Adjournment - The meeting adjourned at 2:20 p.m.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Dando, and unanimously carried, the Rules-in-Lieu Committee report and actions of July 24, 2002, were accepted. Vote: 11-0-0-0.

3.3 Report of the Finance and Infrastructure Committee – June 26, 2002

Council Member Dando, Chair

Documents filed: Finance and Infrastructure Committee report of June 26, 2002.

(a) Consent Items

(1) May Monthly Report. Attachment: Correspondence form City Auditor Gerald A. Silva, dated June 17, 2002, transmitting said report.

The Committee approved the Consent Items.

(b) Finance Department Revenue Collection Efforts. Attachment: Memorandum from Director of Finance Scott P. Johnson, dated June 14, 2002, transmitting said report.

The Committee accepted the staff report.

(c) An Audit of the City of San José’s Customer Service Call Center. Attachment: Report entitled: An Audit of the City of San José’s Customer Service Call Center, dated June 2002, from the Office of the City Auditor.

The Commitee accepted the staff report with the modifications proposed by the Administration.

(d) Additional City Auditor Revenue Enhancement Activities. Attachment: Memorandum from City Auditor Gerald A. Silva, dated May 31, 2002, transmitting said report.

.

The Committee accepted the staff report.

(e) Monthly Financial Statement for May 2002

(f) Capital Cost Report for April, May

(g) Cash Flow Projection

Items e through g reported out by the Redevelopment Agency.

(h) Oral petitions - None.

(i) Adjournment - The Committee was adjourned at 4:20 P.M.

Discussion/Action: Upon motion by Council Member Dando, seconded by Council Member Chavez, and unanimously carried, the Finance and Infrastructure Committee report and actions of were accepted. Vote: 11-0-0-0.

3.4 Adoption of a resolution establishing the FY 2002-03 property tax levy for all taxable property for general obligation bonded indebtedness. (Finance)

Documents filed: Memorandum from Director of Finance Scott P. Johnson, dated
July 24, 2002, recommending adoption of said resolution.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, Resolution No. 71146, entitled, “A Resolution of the Council of the City of San José Establishing the Fiscal Year 2002-2003 Property Tax Levy for the City’s General Obligation Bond Indebtedness”, was adopted. Vote: 11-0-0-0.

3.5 (a) Adoption of the following appropriation ordinance and funding source resolution amendments in the Low- and Moderate-Income Housing Fund:

(1) Decreasing the Extremely Low-Income Housing Reserve appropri-ation by $34,870,828.

(2) Reducing the Earned Revenue by $34,870,828.

(b) Adoption of the following appropriation ordinance and funding source resolution amendments in the HOME Investment Partnership Fund:

(1) Establishing the Extremely Low-Income Housing Reserve appropri-ation in the amount of $34,870,828.

(2) Increasing the Earned Revenue by $34,870,828.

CEQA: Not a project. (Housing/City Manager's Office)

Documents filed: Memorandum from Director of Housing Leslye Corsiglia, and Budget Director Larry D. Lisenbee, dated July 17, 2002, recommending adoption of said appropriation ordinance and related revenue resolution amendments.

Discussion/Action: Ordinance No. 26701, entitled, “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Monies in the Low and Moderate Income Housing Fund; and Providing that this Ordinance shall become Effective Immediately Upon Adoption”; Resolution No. 71147, entitled, “A Resolution of the Council of the City of San José Amending Resolution No. 71072 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2002-2003 to Adjust Revenues in the Low and Moderate Income Housing Fund”; Ordinance No. 26702, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Monies in the Home Investment Partnership Program Fund; and Providing that this Ordinance shall become Effective Immediately Upon Adoption”; and Resolution No. 71148, entitled: “A Resolution of the Council of the City of San José Amending Resolution No. 71072 Setting Forth the Estimated Sources of Funds for the Fiscal year 2002-2003 to Adjust Revenues in the Home Investment Partnership Program Fund”, were adopted. Vote: 11-0-0-0.

3.7 (a) Acceptance of the economic feasibility and analysis regarding a potential renovation and expansion of the San José Convention Center and the possible increase to the Transient Occupancy Tax as a potential source of funding. (City Manager's Office)

(b) Adoption of a resolution referring to the November 2002 ballot: "San José Jobs, Safety and Convention Center Improvement Act", to increase the TOT (hotel) tax by 4%. (Mayor)

(City Manager’s Office)

(Rules-in-lieu referral 7/31/02)

Documents filed: (1) Supplemental memorandum from Mayor Gonzales and Council Members Williams, Chavez and Cortese, dated August 6, 2002, providing supplemental information on the benefits of the proposed San José Jobs, Safety and Convention Center Improvement Act and requesting Council support on the proposed ballot measure. (2) Memorandum from Mayor Gonzales dated August 2, 2002, recommending the Council

approve placing an increase of the Transient Occupancy Tax (Hotel Tax) of 4% on the November 2002 ballot for the purpose of improving safety, security, and future expansion of the San José McEnery Convention Center. (3) Memorandum from City Manager Del D. Borgsdorf, dated July 30, 2002, recommending acceptance of the Economic Feasibility Analysis for a potential Convention Center expansion.

Discussion/Action: Deputy City Manager Kay Winer provided a presentation on updated findings of the consultant marketing and economic feasibility study for a proposed Convention Center expansion, with the possible use of an increase in the Hotel Occupancy Tax for that purpose. She stated the analysis showed the current facility is not able to handle all convention and trade show business and that the City has lost over $400 million in potential revenue. She indicated that the Council had directed Staff to update the marketing and feasibility analysis and look at the demand for expansion of the Convention Center; and in order for the Council to consider a ballot measure for an expansion, the consultant needed to again look at the proposal. Jeff Sachs, Strategic Advisory Group, provided a slide presentation reviewing the market demand for an expanded facility: industry trends, target market strategy, level of interest, market requirements, competitive position, facility program assumptions, program budget, funding plan, comparable Transit Occupancy Tax (TOT) rates, impact of TOT increases, expansion economic benefits, costs versus benefits, and next steps.

Council Member Yeager asked if the $12 billion coming in over 30 years is based on the number of conventioneers then calculated on the $261 per day that each would spend. Mr. Sachs responded that there are about 100,000 people coming in supporting about 200,000 room nights per year with the current Convention Center; for the expansion, 75% of that number is used which would be $350,000 more in an expanded Convention Center. Council Member Yeager asked what conventions aren’t the City getting, where did they go, and what is unique about San Jose in the business that would attract conventions. Dan Fenton responded that the attraction is technology related, and that San Jose is considered the best place, because of work demographics, to host shows that relate to the industry around San Jose. He stated that he believes this additional square footage will bring back shows that left because they outgrew the current facility. Council Member Yeager asked how San Jose fits into the scheme of things relative to space, number of rooms, price, and why choose San Jose over another city. Mr. Fenton responded that San Jose is rated high for hotel location and availability, airport location, and is considered a good Northern California value; and that the economic package is competitive. Regarding the additional TOT tax, Council Member Williams asked what is the back-up plan in case of a downturn in the economy, and stated that he wants to be sure there are adequate funds to cover bond payments to secure this project. Scott Johnson, Director of Finance, responded that all increases in TOT will go into a special fund to support debt service payments, and that there are very conservative mechanisms in place.

Mayor Gonzales explained that he brought this issue to Council because expanding the Convention Center will stimulate the economy, create jobs, and bring visitors to

Downtown and other parts of San Jose; this in turn provides more funds to pay for services important to the citizens of San Jose. He stated that he believes even in difficult economic times, the City needs to build on the economy, and that he doesn’t want the City to be in a situation when an upturn in the economy occurs to have to try and catch up with the marketplace. He added that he believes the existing Convention Center has served its purpose, but it is now behind for a city the size of San Jose. He stated that he hopes to see a well-run campaign on this issue that educates voters as to the benefits to jobs, the economy, and the safety of the community – the Convention Center serves as an evacuation center. He noted that the study calls for two additional hotels with the expansion of the Convention Center; however, he stated that he believes the hotels should be built when the market demands them rather than artificially stimulating the hotel marketplace.

Mayor Gonzales called for public testimony and the following individuals spoke on the issue: Harold Lowney, Plumber’s Union, Phaedra Ellis-Lamkins, South Bay Labor Council, Donald Ricker, International Alliance of Theatrical Stage Employees Local 134, John Neece, Building Trades, Cyril Isnard and R. Scott Lynch, SJCVB/ Fairmont Hotel, Michael Mulchy, Alexandra Urbanowski, and Dan Keegan, SJCVB, William Garbett, Henry Cord, SJDA, Bob Branchet, Teamsters, Jimm Eller, Dean Munro, San José Sports Authority, Michael Fox, Phil Dirickson, Chamber of Commerce, John Southwell, SJCVB/Hilton, Andrew Bales, San José Ballet, Enrique L. Fernandez, Union Local #19, Ross Signorino, Bob Knieve, Teresa Alvarado, Bob Owen, Sign and Display Union Local 560.

Vice Mayor Shirakawa, Jr., moved approval of the recommendations in Mayor Gonzales’ memorandum and information in a supplemental memorandum from Mayor Gonzales and Council Members Williams, Chavez, and Cortese. Council Member Chavez seconded the motion. Mayor Gonzales provided an overview of the memorandum which included benefits if voters approve the increase in the November election: creation of additional 1670 permanent jobs, for a total of 3900 jobs directly supported by the Convention Center; 2560 full-time construction jobs; an additional $40 million per year in salary and wages for employees, for a total 30-year combination of $4.1 billion; an additional $115 million in visitor spending a year for a 30-year total of $12 billion in spending; an additional $166 million in General Fund revenue over 30 years. He noted that when businesses prosper, that provides more revenue in the City budget to provide important services to the people in San Jose. He added that the memorandum recommends the formation of a labor management committee; the development of a project labor agreement on construction of the expanded Center; recognition of union jurisdictions for skilled labor at the Convention Center; worker retention programs; a community oriented planning process to assess the impacts and benefits similar to that used in the Civic Center project. On a call for the question, the motion carried unanimously, and the Economic Feasibility and Analysis regarding a potential renovation and expansion of the San José Convention Center and the possible increase to the Transient Occupancy Tax as a potential source of funding, were accepted, and Resolution

No. 71149, entitled: “A Resolution of the Council of the City of San José Ordering, on its Own Motion, the Submission to the Electors of the City of San José, at the General Municipal Election to be held on November 5, 2002, a Measure Entitled: San José Jobs, Safety and Convention Center Improvement Act, and a Measure Entitled: School Construction – Ramblewood Park ”, was adopted. Vote: 11-0-0-0.

3.6 Referral of possible ballot measures, if any, to the November 2002 ballot:

(a) School Construction-Ramblewood Park measure to allow the City to enter into a long term lease to place a school on a portion of Ramblewood Park. CEQA: Not a project. (City Manager’s Office)

(b) Recommendation from the Disadvantaged Business Development Commission to refer a Charter Amendment to enable an increased number of contracts to be awarded to small businesses. (Reed/Disadvantaged Business Development Commission)

(Rules in Lieu referral 7/31/02)

(This Item heard following Item 3.7)

Documents filed: (1) Memorandum from Council Member Reed, Council Liaison to the Disadvantaged Business Development Commission, dated August 6, 2002, recom-mending Council approve in concept the recommendation from the Disadvantaged Business Development Commission to establish a small and emerging business program and direct City Staff to work with the Commission to develop an outreach plan to engage business and labor organizations in the design of a program so that a Charter amendment is ready to be placed on the ballot at the General Election in March 2004, with City Staff to report back to Council within 90 days on ways to implement a small and emerging business program for contracts that are not subject to Charter Section 1217. (2) Memorandum from Assistant City Manager Mark Linder, dated August 6, 2002, recommending adoption of a resolution placing the School Construction-Ramblewood Park measure on the ballot for the election to be held November 5, 2002. (3) Memorandum from City Attorney Richard Doyle, dated August 5, 2002, advising Council on the proposed amendment to Charter Section 1217 (Subsection d). (4) Memorandum from Economic Development Director Paul Krutko, dated August 5, 2002, recommending Council consider a recommendation from the Disadvantaged Business Development Commission to (a) put a Charter amendment on the November ballot to increase small business participation in City contracts, and (b) include the intent and spirit of the Commission’s items set forth in the Commission’s proposal (version 4) attached thereto. (5) Memorandum from City Clerk, Patricia L. O’Hearn, dated August 6, 2002, providing information pertaining to the referral of ballot measures to the November 5, 2002, ballot. (6) Correspondence from Shozo Kagoshima, General Manager, Winchester House, dated August 6, 2002, commending on the proposed increase in the Transient Occupancy Tax.

Discussion/Action: Vice Mayor Shirakawa, Jr., provided background on the issue, i.e., the impact of density on school districts has resulted in the beginning of a process to site

schools, and this ballot measure proposes constructing a school on undeveloped land in an existing park. Mayor Gonzales called for public testimony and the following individuals spoke on the issue: Larry Aceves, Franklin-McKinley School District, William Garbett, and Dolores Gomez and Guadalupe Chavez, Ramblewood School Construction. Mayor Gonzales closed the public hearing. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the recommendation to place the School Construction-Ramblewood Park measure on the ballot, was approved, and the item referred to Resolution No. 71149 adopted under Item 3.7. Vote: 11-0-0-0.

Council Member Reed reviewed his memorandum, indicating that it is an effort to get a program in place to help small businesses do business with the City. He explained that the recommendation is a charter change and believes the measure should not be on the ballot until March 2004 to provide a chance to get business and labor organizations to help in the campaign. Upon motion by Council Member Reed, seconded by Council Member Dando, and unanimously carried, the recommendation from the Disadvantaged Business Development Commission to refer a Charter Amendment to enable an increased number of contracts to be awarded to small businesses was referred to the March, 2004 ballot, with direction to Staff to come back in 90 days with a plan to implement a small/emerging business program for contracts not subject to Charter Section 1217, while continuing to work in the area that requires a charter amendment. Vote: 11-0-0-0. Mayor Gonzales stated that included in the motion for Items 3.6(a) and 3.6(b) will be instructions to the City Clerk to submit one resolution to the Registrar of Voters.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.1 Report of the Economic Development & Environment Committee – June 3, 2002

Council Member Williams, Chair

(Deferred from 6/18/02 – Item 4.1 and 6/25/02 – Item 4.1)

Documents filed: Education, Neighborhoods, Youth and Seniors Committee report of June 3, 2002.

(a) Further Discussion of Group Home Ordinance and Reasonable Accommodation. Attachment: Memorandum from City Attorney Richard Doyle, dated April 30, 2002, reporting on the Group Home Ordinance and Reasonable Accommodation issue.

Discussion/Action: See Item 4.2 for council action taken.

(b) San José Permits On-Line (IDTS) System Demonstration. Attachment: Memorandum from Senior Deputy City Manager Darrell Dearborn, dated May 17, 2002, introducing Dave Bopf, Project Manager, and Scott Troyer, Building Permit Center Manager, to make a live demonstration of the San José Permits On-Line System.

(c) Street Tree Pruning and Replacement Process. Attachment: Memorandum from Director, Department of Transportation, Wayne Tanda, dated May 21, 2002, recommending approval of modifications to Section 13.28.130 of the San José Municipal Code to allow Department of Transportation approved, stated licensed, bonded and insured tree contractors to trim trees in accordance with American National Standards Institute A300, Part 1, Pruning Standards, without obtaining a pruning permit for each work locations; and recommending deferral of the August 5, 2002, Economic Development and Environment Committee meetings, consideration of the proposed requirement that prior to the sale of a property within the City, dead or missing street trees that were required as part of the development of said property be replaced, in order to provide the needed time to review alternatives to achieve the goal of replacing missing or dead street trees at properties prior to sale.

The Committee accepted Staff’s request for deferral to August 5, 2002 meeting.

(d) Monthly Status Report on Housing Production Team Action Items. Attachment: Memorandum from Director of Housing Leslye Corsiglia and, Department of Planning, Building and Code Enforcement Director Stephen M. Haase, dated May 16, 2002, transmitting said report.

The Committee accepted the staff report.

(e) Monthly Report on Affordable Housing Production. Attachment: Memorandum from Director of Housing Leslye Corsiglia, dated May 28, 2002, transmitting said report.

The Committee accepted the staff report.

(f) Five Year Homeless Plan. Attachment: Memorandum from Director of Housing Leslye Corsiglia, dated May 20, 2002, transmitting said report.

The Committee accepted the staff report.

(g) Status Report on Implementation Efforts of Green Building Policies. Attachment: Memorandum from Director of Environmental Services, Carl W. Mosher, dated May 17, 2002, transmitting said report.

The Committee accepted the staff report.

(h) Third Quarter Redevelopment Housing Report - This Item was dropped.

(i) Oral petitions

Phyllis Ward, Louise London, Burce Brunger, Greg Misakian, Allen Brown, Mike Delmonico, Douglas Lamb, Julie Arabzaden, Patricia Pollard.

(j) Adjournment - The meeting was adjourned at 4:50 p.m.

Discussion/Action: Upon motion by Council Member Williams, seconded by Council Member LeZotte, and unanimously carried, the Education, Neighborhoods, Youth and Seniors Committee report and actions of June 3, 2002, with 4.1(a) heard under Item 4.2, were accepted. Vote: 11-0-0-0.

4.2 Approval of Report on reasonable accommodation with recommendation to take the following actions:

(a) Direct that the reasonable accommodation process continue to consider the business aspects of proposed uses on a case-by-case basis focusing on the impacts of those aspects in the zoning district.

(b) Direct that the reasonable accommodation process continue to consider the appropriate number of residents for each proposed use on a case-by-case basis.

(c) Direct the Administration to discuss with Santa Clara County the possibility of setting minimum operational standards, which may include limiting the number of residents at facilities and obtain City input on facilities under contract with the County or subject to County certification.

(d) Direct the City Attorney and the Administration to draft amendments to the Zoning Code to make the changes in procedure as follows:

(1) Eliminate an initial notice that has not undergone any analysis

(2) Refine what must be included in the application.

(3) Expand the noticing requirement to 300 feet, with direction to go to a greater noticing radius (500 or 1000 feet) to ensure that a sufficient number of adjacent property owners receive notice.

(4) Request a meeting with staff to go over the application and request a meeting for neighbors to attend.

(5) Issue the proposed decision stating that there will be an informal conference on site with staff and interested neighbors to discuss what is going on.

(6) At the Director's hearing the focus should summarize the issues discussed and resolved.

(7) Director's decision becomes effective 15 days after issuance if there is no appeal filed.

(8) If on Appeal to the Planning Commission, the Planning Commission cannot come to a decision, then the Director's decision stands.

(e) Direct the Administration to thoroughly keep records of the location of all residential facilities by licensing, certification, type, number of residents, date of establishment, zoning district, Council district; and to amend the reasonable accommodation guidelines to consider other residential care and service facilities and other reasonable accommodations granted within 300 feet of a proposed facility.

(f) Direct the City Manager to appoint a central person or system as a clearinghouse of all complaints to determine whether or not they have been resolved.

[Economic Development and Environment Committee 6/3/02 – Item 4.1(a)]

(Deferred from 6/18/02 – Item 4.2)

Documents Filed: None Filed.

Discussion/Action: This Item was deferred to August 20, 2002.

4.3 (a) Report on bids and adoption of a resolution authorizing the City Manager to award the contract for the base bid for the Rincon Storm System Improvements Phase II Project to the lowest responsive bidder, Anderson Pacific Engineering Construction, Inc., in an amount of $20,646,296, and approval of a contingency in an amount of $1,733,000.

(b) Adoption of a resolution authorizing the City Manager to execute a Santa Clara Valley Water District permit allowing construction within their right-of-way.

(c) Adoption of the following amendments to the FY 2002-2003 Appropriation Ordinance and Funding Sources Resolution in the Services for Redevelopment Capital Projects Fund.

(1) Increase the appropriation to the Department of Public Works for the North San Jose Rincon Storm System Improvements -- Phase II Project by $23,138,000.

(2) Increase the estimate for Earned Revenue by $23,138,000.

(d) Adoption of a resolution making certain determinations regarding the related expenditure of the Redevelopment Agency funds on certain public improvements in connection with the North San Jose Rincon Storm System Improvements - Phase II Project, as more specifically described in the memorandum from the Redevelopment Agency, dated June 6, 2002.

CEQA: Resolution No. 60197, PP00-10-149. Council District 4. (Public Works/City Manager’s Office)

(Deferred from 6/25/02 – Item 4.11)

Documents Filed: (1) Memorandum from Public Works Director Katy Allen and Budget Director Larry D. Lisenbee, dated August 1, 2002, recommending to Council, report on bids and award of contract to the North San José Rincon Storm System Improvements for above said resolutions. (2) Memorandum from Senior Deputy City Attorney Glenn

Schwarzgach, dated June 21, 2002, attaching a bid protest pertaining to the North San José Rincon Storm System Improvements—Phase II Project, and advising that following review of the protest, the City Attorney’s Office does not believe that it raises any legal issues that would prevent the City from proceeding with the action Staff is recommending. (3) Supplemental memorandum from Nadine Nader, Senior Executive Analyst, dated June 24, 2002, transmitting information pertaining to capital budget appropriations transferred from the Redevelopment Agency to the City for the North San Jose Rincon Storm System Improvements - Phase II Project.

Discussion/Action: Mayor Gonzales opened the public hearing. William McInerney, Anderson-Pacific, spoke on the issue. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the public hearing was closed, and Resolution No. 71150, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Award a Construction Contract for the North San José Rincon Storm System Improvements – Phase II Project to the Lowest Responsive Bidder, Anderson Pacific Engineering Construction, Inc., in the Amount of $20,646,296, and Approval of a Contingency in the Amount of $1,733,000”; Resolution No. 71151, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Permit with the Santa Clara Valley Water District for the Construction of the Rincon II Pump Station”; Resolution No. 71052, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of General Services to Execute any Documents Necessary to Extend the Term of the Lease Agreement for Electronic Vehicles with Toyota Motor Sales, USA, Inc.; Ordinance No. 26703, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Monies in the Services for Redevelopment Capital Projects Fund for the North San José Rincon Storm System Improvements; and Providing that this Ordinance shall become Effective Immediately Upon Adoption”; and Resolution No. 71153, entitled: “A Resolution of the Council of the City of San José Making Certain Determinations Regarding the Expenditure of Redevelopment Agency Funds for Certain Public Improvements in the Rincon de Los Esteros Redevelopment Project Area”, were adopted. Vote: 10-0-1-0. Absent: Campos.

4.4 (a) The City Manager to negotiate and execute agreements for services in support of the Neighborhood Self Sufficiency Centers, for the period July 1, 2002 to June 30, 2003, with the following:

(1) Santa Clara County Department of Child Support Services in an amount not to exceed $170,000; and

(2) NOVA in an amount not to exceed $155,000.

(b) The City Manager to negotiate and execute an agreement for services and support of the Regional Employment Training Consortium, for a period from July 1, 2002 to June 30, 2003, with:

(1) Alameda County Workforce Investment Board in amount not to exceed $340,480;

(2) Contra Costa Workforce Investment Board in an amount not to exceed $220,160;

(3) Monterey County Workforce Investment Board in an amount not to exceed $125,440;

(4) NOVA Workforce Investment Board in an amount not to exceed$107,520;

(5) Oakland Private Industry Council in an amount not to exceed $2,723,666;

(6) Richmond Workforce Investment Board in an amount not to exceed $110,080;

(7) San Mateo County Workforce Investment Board in an amount not to exceed $273,920; and

(8) Santa Cruz County Workforce Investment Board in an amount not to exceed $261,120.

(c) The City Manager to negotiate and execute all contracts, amendments, agreements, leases, subleases, and memorandums of understanding with sub-contractors and vendors providing services to the Workforce Investment Act Program including, but not limited to novations or assignments, vendor training contracts, consultant contracts, memos of understanding with Mandatory Partners and cities whose residents receive service under the WIA program, in accordance with established City procedures and requirements, for the period from July 1, 2002 to June 30, 2003.

(d) The City Manager to negotiate and execute all grant applications, grants, and sub grant agreements for the period from July 1, 2002 to June 30, 2003.

(Economic Development)

Documents Filed: None Filed.

Discussion/Action: This Item was deferred to August 20, 2002.

4.5 PUBLIC HEARING and adoption of Resolutions designating as landmarks of special historic, architectural, cultural, aesthetic, or engineering interest or value of a historic nature of the following: (Planning, Building, and Code Enforcement)

(a) 89 Pierce Avenue. CEQA: Exempt Council District 3. SNI: Market/Almaden.

(b) 1818 The Alameda. CEQA: Exempt. Council District 6.

Director of Planning, Building and Code Enforcement and Historic Landmarks Commission recommend approval (4-0-2).

(Planning, Building, and Code Enforcement)

Documents Filed: (1) Memoranda from Secretary, Historic Landmarks Commission Stephen M. Haase, both dated July 17, 2002, recommending adopt said resolutions designations as landmarks of special historic, architectural, cultural, aesthetic, or engineering interest or value of a historic nature of the following: Historic Landmark designation of 89 Pierce Avenue, No. HL01-144, and Historic Landmark designation of 1818 The Alameda, HL02-146. (2) Proofs of Publication of Notice of Public Hearings, executed June 28, 2002, and Affidavits of Mailing and Routing, all dated September 16, 2002, submitted by the City Clerk, for proposed Historic Landmark designations HL01-144 and HL02-146.

Discussion/Action: Mayor Gonzales opened the public hearing and there was no testimony from the floor. Upon motion by Council Member Dando, seconded by Council Member Williams, and unanimously carried, Resolution No. 71154, entitled: “A Resolution of the Council of the City of San José Designating, Pursuant to the Provisions of Chapter 13.48 of Title 13 of the San José Municipal Code, 89 Pierce Avenue, as a Landmark of Special Historical, Architectural, Cultural, Aesthetic or Engineering Interest or Value of a Historic Nature”; and Resolution No. 71155, entitled: “A Resolution of the Council of the City of San José Designating, Pursuant to the Provisions of Chapter 13.48 of Title 13 of the San José Municipal Code, the Building located at 1818 The Alameda, as a Landmark of Special Historical, Architectural, Cultural, Aesthetic or Engineering Interest or Value of a Historic Nature”, were adopted. Vote: 10-0-1-0. Absent: Campos.

4.6 PUBLIC HEARING AND APPROVAL OF AN ORDINANCE amending Chapters 20.40, 20.50, and 20.200 of Title 20 of the San José Municipal Code, to modify provisions pertaining to the industrial land use regulations; to include definitions related to educational uses and indoor recreation; and, to include minor clarifications related to commercial land uses. CEQA: Exempt, PP02-07-177. Director of Planning, Building and Code Enforcement and Planning Commission recommend approval (6-0-1). (Planning, Building, and Code Enforcement)

Discussion/Action: (1) Memorandum from Planning Commission Secretary Stephen M. Haase, dated July 25, 2002, recommending to Council adopt the proposed amending title 20 of the San José Municipal Code to delete, modify and add definitions pertaining to educational uses and recreational uses. (2) Proof of Publication of Notice of Public Hearing, executed July 12, 2002, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing and there was no testimony from the floor. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, Ordinance No. 26704, entitled: “An Ordinance of the City of San José Amending Sections 20.50.100 and 20.50.110 of Chapter 20.50 and Section 20.40.100 of Chapter 20.40 and Amending and Adding Sections to Chapter 20.200 and Repealing Section 20.200.490, All of Title 20 of the San José Municipal Code, to Modify Provisions Pertaining to the Industrial Land Use Regulations; To Include Definitions Related to Educational Uses and Indoor Recreation and to Include Minor Clarifications Related to Commercial Land Uses”, was passed for publication. Vote: 10-0-1-0. Absent: Campos.

4.7 PUBLIC HEARING AND APPROVAL OF AN ORDINANCE amending Chapter 23.04 of Title 23 of the San José Municipal Code, to include provisions pertaining to the regulation of skyline signs and roof signs within the area bounded by US Highway 101, Interstates 237 and 880, and the Guadalupe River, and to include minor modifications. CEQA: Exempt, PP02-07-180. (Planning, Building, and Code Enforcement)

Documents Filed: None Filed

Discussion/Action: This Item was continued to August 20, 2002.

4.8 PUBLIC HEARING AND APPROVAL OF AN ORDINANCE amending Chapter 20.80 of Title 20 of the San José Municipal Code to modify the provisions related to massage parlors and the associated distance and separation requirements. CEQA: Exempt, PP02-07-081. Director of Planning, Building and Code Enforcement and Planning Commission recommend approval (4-2-1). (Planning, Building, and Code Enforcement)

Documents Filed: (1) Memorandum from Director, Planning, Building, and Code Enforcement Stephen M. Haase, dated July 24, 2002, recommending Council amend title 20, the zoning code, of the San José Municipal Code to modify provisions related to massage parlors. (2) Proof of Publication of Notice of Public Hearing, executed on July 12, 2002, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing. Council Member Yeager noted that in the Staff memorandum, the City is exempting day spas from location requirements for use, and asked if there was any discussion about coming up with an ordinance for day spas, as they are different from typical massage parlors. Steven Haase, Director of Planning, Building and Code Enforcement, explained that this item was brought forward as an urgent item due to business use at Santana Row and indicated that Staff can come back to Council with a more in-depth analysis of this issue. Council Member Yeager indicated that he would be interested in seeing what other cities have done, and requested the Police Chief to explain why day spas are different from traditional massage parlors. Police Chief William Lansdowne responded that the Police Department has spent an extensive amount of time looking at issues relative to massage parlors, and stated that he believes the current ordinance is very clear and has specific safeguards for people wishing to give massage-type therapy, including extensive background checks and State requirements. He added that his experience has shown that very few of the criminal violations the Police Department has enforced ever involve legitimate managed businesses. Council Member Yeager asked if the day spas would be charged the same amount as a massage business permit, and if there would be an increase in fees in the future. Chief Lansdowne responded that the permit amount is a graduated cost based on the amount of time the Police Department is involved in doing background checks and that the current fee is a fair amount so he doesn’t foresee an increase. The following individuals spoke on the issue: Paul Lurzana, Westfield Shoppingtown Valley

Fair, Linda Callon, and William Garbett. Upon motion by Vice Mayor Sh