MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, SEPTEMBER 10, 2002

The Council of the City of San José convened in regular session at 9:00 a.m. in City Council Chambers at City Hall.

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

Absent: Council Members - Shirakawa, Jr. (Excused).

Upon motion unanimously adopted, Council recessed at 9:05 a.m. to a Closed Session in Room 600, items to be discussed: (A) Public employee performance evaluation pursuant to Government Code Section 54957, Title: City Clerk; (B) to confer with Legal Counsel pursuant to Government Code Section 54956.9; under Subsection (a) to discuss existing litigation in the cases of (1) Wing and a Prayer v. City of San José, et al., (2) Gonzales v. City of San José, et al., and (C) confer with Legal Counsel to discuss anticipated litigation pursuant to Subsection (b) of Government Code Section 54956.9, in one matter involving one matter pertaining to the initiation of litigation.

By unanimous consent, Council reconvened from the Closed Session and recessed at 10:45 a.m. and reconvened at 1:35 p.m. in the Council Chambers.

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

Absent: Council Members - Shirakawa, Jr. (Excused).

Invocation

Reverend Ellen Grace O'Brian, along with Pattie Cortese, Michael Scott, Maheen Adeeb, Meena Corbin and Hanry Liem from the Center for Spiritual Enlightenment delivered the invocation. (District 8)

Pledge of Allegiance

Mayor Gonzales led in the Pledge of Allegiance.

Orders of the Day

Upon motion by Council Member Council Member Williams, seconded by Council Member Chavez, and unanimously carried, the Orders of the Day and the Amended Agenda were approved. Vote: 10-0-1-0. Absent: Shirakawa, Jr.

CEREMONIAL ITEMS

1.1 Presentation of a commendation to Timothy Linh Bui, the director of the Green Dragon, a story of the first exodus of the Vietnamese people to America and their lives at camp Pendleton while waiting for new homes. (Reed, Mayor)

Documents Filed: None.

Discussion/Action: Joining Mayor Gonzales at the podium was Timothy Linh Bui’s mother Mrs. Bui to accept the commendation and to read a thank you letter from her son who was unable to attend.

1.2 Presentation of a commendation to the men and women of the 23^rd Fighter Group for their service, dedication, and sacrifice in the war against terrorism. (Reed)

Documents Filed: None.

Discussion/Action: Council Member Reed joined Mayor Gonzales at the podium to introduce his daughter Captain Kim Campbell who will present the commendation to men and women of the 23^rd Fighter Group for their efforts against terrorism.

CONSENT CALENDAR

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

2.2 Final adoption of Ordinance No. 26723, granting a Commercial Solid Waste and Recyclables Collection Franchise to Mesloh Demolition and Recycling.

Documents Filed: Proof of Publication of title of Ordinance 26723 executed on September 3, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26723 as adopted. Vote: 10-0-1-0. Absent: Shirakawa, Jr.

2.3 Adoption of a resolution authorizing the City Manager to negotiate and execute a first amendment to the agreement with The Source Group, for environmental consultant services at the Norman Y. Mineta San José International Airport, increasing the maximum amount of the agreement by $180,000, from $99,000 to $ 279,000, and extending the term of the agreement from May 10, 2003 to June 30, 2003. CEQA: Resolution No. 67380, PP02-68-221. (Airport)

Documents Filed: Memorandum from Aviation Director Ralph G. Tonseth, dated
August 21, 2002, recommending approval of a first amendment to said agreement with The Source Group, for environmental consultant services at the Norman Y. Mineta San José International Airport.

Discussion/Action: Resolution No. 71200, entitled: “A Resolution of the Council of The City of San Jose Authorizing the City Manager to Negotiate and Execute a First Amendment to the Master Agreement with the Source Group, Inc. Increasing the Maximum Amount of Compensation and Extending the Term of June 30 2003”, was adopted. Vote 10-0-1-0. Absent: Shirakawa, Jr.

2.4 Approval of the third amendment to the legal services agreement with Bingham McCutchen to provide real estate legal services for the Boards, increasing the compensation by $275,000, for a total agreement amount not to exceed $800,000. CEQA: Not a Project. (Boards of Administrations for Federated City Employees’ Retirement System and Police & Fire Department Retirement Plan)

Documents Filed: Memorandum from Boards of Administration for Federated City employees’ Retirement System and Police & Fire Department Retirement Plan dated August 21, 2002, recommending approval of said third amendment to the legal services agreement with Bingham McCutchen.

Discussion/Action: The third amendment to the said agreement with Bingham McCutchen was approved and its execution authorized. Vote: 10-0-1-0. Absent: Shirakawa, Jr.

2.5 (a) Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with the Almaden Youth Association to engage qualified consultants to prepare and provide preliminary planning reports related to a proposed sports fields complex in the Almaden Valley Urban Reserve, in an amount not to exceed $50,000.

(b) Adoption of the following appropriation ordinance amendments in the Council District 10 Construction and Conveyance Tax Fund:

(1) Establish an Almaden Winery Center Conversion Project for $515,000.

(2) Decrease the Reserve: Park Acquisition and Development Project by $515,000.

(c) Adoption of the following appropriation ordinance amendments in the General Fund:

(1) Establish a McKean Road Sports Complex Project for $550,000.

(2) Decrease the Almaden Winery Center Conversion Project by $515,000.

(3) Decrease the General Fund Contingency Reserve by $35,000.

Council District 10. CEQA: Not a Project. (Parks, Recreation and Neighborhood Services/Budget Office)

Documents Filed: None.

Discussion/Action: This item was deferred to September 17, 2002, at the request of Council Member Dando.

2.6 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2002-2003 #5, and authorization for the Director of General Services to execute the purchase orders. (General Services)

Documents Filed: Memorandum from Director of General Services, Jose Obregon, dated August 21, 2002, recommending approval of said open purchase orders.

Discussion/Action: The award of open purchase orders List #5 for Fiscal Year 2002-2003 was approved and authorization for the Director of General Services to execute the purchase order. Vote: 10-0-1-0. Absent: Shirakawa, Jr.

2.7 Approval of an Operations and Maintenance Agreement between the City of San José and the Vietnamese Cultural Heritage Foundation (VCHF) for an initial term of 15 years, with up to two additional extension terms of five years each. CEQA: Resolution No. 66098. (Parks, Recreation and Neighborhood Services)

Documents Filed: (1) Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated August 21, 2002, recommending adoption of a resolution authorizing the City Manager to negotiate and execute said Operations and Maintenance Agreement between the City of San José and the Vietnamese Cultural Heritage Foundation. (2) Correspondence from the Vietnamese Cultural Heritage Foundation dated September 20, 2002, stating concurrence with the staff recom-mendation.

Discussion/Action: Council Member Williams noted that the memorandum was not clear if the agreement was for design and development or for only maintenance. Staff responded that the agreement was all encompassing. Council Member Williams stated that the subject of the memorandum should be changed to reflect that fact. The said agreement between the City of San José and the Vietnamese Cultural Heritage Foundation was approved and its execution authorized. Vote: 10-0-1-0. Absent: Shirakawa, Jr.

2.8 Adoption of a resolution to:

(a) Initiate proceedings to consider The 5 Spot as a landmark of special historic, architectural, cultural, aesthetic, or engineering interest or value of a historic nature.

(b) Set a public hearing on October 29, 2002 at 1:30 p.m.

(c) Refer the matter back to the Historic Landmarks Commission for its consideration at a public hearing, report and recommendation.

CEQA: Exempt. Council District 3. SNI: Washington. (Planning, Building and Code Enforcement)

Documents Filed: Memorandum from Historic Landmarks Commission Secretary Stephen M. Haase, dated September 4, 2002, recommending adoption of said resolution.

Discussion/Action: William Garbett spoke on the item. Resolution No. 71201, entitled: “A Resolution of the Council of The City of San Jose Initiating Proceedings on It’s Own Motion, Pursuant to the Provisions of Chapter 13.48 of Title 13 of the San Jose Municipal Code, to Designate the 5 Spot, Presently Located at 869 S. First Street, as a City Landmark of Special Historical, Architectural, Cultural, Aesthetic, or Engineering Interest or Value of a Historic Nature”, was adopted. Vote 10-0-1-0. Absent: Shirakawa, Jr.

2.9 Approval of a fourth amendment to the master agreement with Callander Associates Landscape Architecture Inc. for landscape architectural consultant services for various park and recreational projects, extending the term from September 30, 2002 to September 30, 2003, and increasing the total compensation by an additional amount not to exceed $25,000, for a total agreement amount not to exceed $310,000. CEQA: Not a Project. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated August 21, 2002, recommending approval of a fourth amendment to said master agreement with Callander Associates Landscape Architecture Inc.

Discussion/Action: The fourth amendment to the said master agreement with Callander Associates Landscape Architecture Inc. was approved and its execution authorized. Vote: 10-0-1-0. Absent: Shirakawa, Jr.

END OF CONSENT CALENDAR

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – August 28, 2002

Vice Mayor Shirakawa, Jr., Chair

Documents Filed: Rules Committee Report of August 28, 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 September 10, 2002 Draft Agenda

The Committee recommended approval of the September 10, 2002 Council agenda with two additions.

(2) Add New Items to September 3, 2002 Amended Agenda

The Committee recommended five additions and one deferral to the September 3, 2002 Council agenda.

Vice Mayor Shirakawa, Jr., Chair

(c) City Council Committees

(1) Amendments to Council Committee Agendas

(a) Finance and Infrastructure Committee. Attachment: Draft agenda for the September 11, 2002 meeting of the finance and Infrastructure Committee.

The Committee recommended an addition to the September 11, 2002 agenda entitled, “An audit of the School Age Growth and Enrichment Program of the Department of parks, Recreation and Neighborhood Services (Auditor).”

(b) Economic Development and Environment Committee - None filed.

(c) Education, Neighborhoods, Youth, and Seniors Committee None filed.

(d) Meeting Schedules - There were none.

(e) The Public Record. Attachment: Memorandum from City Clerk Patricia O’Hearn dated August 22, 2002 transmitting items filed for the Public Record for the period August 7-20, 2002.

The Committee noted and filed the Public Record.

(f) Boards, Commissions and Committees - There were none.

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

(1) Request for a review of park ranger staffing levels. Attachment: Memorandum from Council Member Pat Dando dated August 20, 2o002 requesting the City Manager include in his review of park ranger staffing levels a study on the hiring and retention of Park Rangers.

The Committee directed the City Manager to review park ranger staffing levels and to create a plan to attract and retain park rangers.

(2) Request to conduct a financial audit of the Santa Clara County Cities Association. Attachment: Memoranda from City Auditor Gerald Silva dated August 19, 2002 requesting an adjustment to the City Auditor’s workplan, based on the Santa Clara County Cities Association’s request to audit the organization for the period July 1, 2000-June 30, 2002; and from Council Member David Cortese dated August 23, 2002 requesting the audit include for the period January 1, 202-July 1, 2002 an assessment of potential City of San José assisted cost savings measures.

The Committee directed the City Auditor to conduct a financial audit of the Santa Clara County Cities Association for the period July 2, 2000 through June 30, 2002 and to make assessments of potential City of San Jose assisted cost saving measures.

(h) Administrative Reviews and Approval

(1) Workload assessment to modify the Municipal Code in regard to posting notice of tree removal

The Committee deferred this item to next week’s Rules Committee meeting.

(2) Approve request to use Council General funds by Council Member Cortese to meet with CEO of Olympic Committee in Denver, CO,
August 26-27, 2002. Attachment: Memoranda from Council Member Dave Cortese dated August 20, 2002 requesting use of Council General funds; and from City Clerk Patricia O’Hearn dated August 23, 2002 summarizing the use of Council General funds to date.

The Committee recommended approval for use of Council General funds by Council Member Cortese to meet with the CEO of Olympic Committee in Denver, CO, August 26-27, 2002.

(i) Oral communications - None were presented.

(j) Adjournment - The meeting adjourned at 2:15 P.M.

Discussion/Action: Upon motion by Council Member Dando, seconded by City Council , and unanimously carried, the Rules Committee Report and actions of August 28, 2002 were accepted. Vote: 10-0-1-0. Absent: Shirakawa, Jr.

3.4 Adoption of a resolution authorizing the City Manager to approve renaming of the Compaq Center at San José to the HP Pavilion at San José, negotiate and execute any amendments or agreements necessary to effect the name change, at no cost to the City and subject to the Manager's review and approval of any interior or exterior, signage changes. (Mayor)

(Orders of the Day)

Documents Filed: Memorandum from Mayor Gonzales dated September 6, 2002, recommending adoption of a resolution authorizing the city Manager to: (1) Approve renaming of “Compaq Center at San José” to “HP Pavilion at San José”, (2) Negotiate and execute any amendments or agreements necessary to effect the name change at no cost to the City and subject to the Manager’s review and approval of any interior or exterior signage changes.

Discussion/Action: Mayor Gonzales called for public testimony and Pete Campbell, William Garbett, Don Gralnek, Gary Fazzino spoke on the issue. Council Member LeZotte stated that she would not be supporting the name change as she had not supported the original name change. Upon motion by Council Member Williams, seconded by Council Member Dando and unanimously carried, Resolution No. 71202, entitled: “A Resolution of the Council of The City of San Jose Authorizing the City Manager to Approve the Renaming of ‘Compaq Center at San José’ to ‘HP Pavilion at San Jose,’ to Negotiate and Execute Any Agreements or Amendments Necessary to Effect the Name Change at No Cost to City and Subject to Approval of Signage Changes, and to Execute Related Documents”, was adopted. Vote 9-1-1-0. Noes: LeZotte. Absent: Shirakawa, Jr.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.2 Open the Public Hearing, for public review and comment, on the 2001-2002 Consolidated Annual Performance Evaluation Report (CAPER). CEQA: Not a Project. (Housing/Parks, Recreation and Neighborhood Services)

Documents Filed: None.

Discussion/Action: Mayor Gonzales opened a two-week public review and comment period for the City of San Jose 2001-2002 Consolidated Annual Evaluation Report (CAPER), and indicated that the Council will adopt a resolution approving the CAPER on September 24, and the Public Hearing was continued to September 24, 2002.

4.3 Approval of an ordinance to amend Title 24 of the San José Municipal Code:

(a) To adopt the 1997 edition of the Uniform Building Code (UBC) with eight local amendments, the 2000 editions of Uniform Plumbing Code (UPC), and Uniform Mechanical Code (UMC), and the 1999 edition of the National Electrical Code (NEC) with no amendment, as the City of San José Building, Plumbing, Mechanical, and Electrical Codes; and

(b) To adopt the 1997 edition of the Uniform Code for Building Conservation (UCBC) Chapter 5 and Appendix Chapters 1, 5, and 6 with no amendments.

CEQA: Exempt, PP02-08-220. (Planning, Building and Code Enforcement)

Documents Filed: (1) Memorandum from Mayor Gonzales and Council Member Yeager dated September 9, 2002, recommending: the City Manager begin a survey of other jurisdictions that can provide good examples of “best practices” during the construction sequence to find measures that can be taken to prevent fires and minimize damage. City Staff is directed to complete a preliminary report in 60 days on recommendations to increase fire safety during construction, including construction phasing and practices. Once this report is issued, staff should conduct community outreach workshops with the building industry to seek additional feedback on the proposals and hear their ideas on improving this process. Subsequently, City Staff is directed to formulate the new measures and decide on the mechanism for implementation in the City’s development review process. (2) Memorandum from Planning, Building and Code Enforcement Department Director Stephen M. Haase dated August 21, 2002, recommending approval of said ordinance to amend Title 24 of the San José Municipal Code.

Discussion/Action: Regarding a survey of other jurisdictions that can provide good examples of best practices during the construction sequence to find measures that can be taken to prevent fires and to minimize damage, Council Member Yeager asked Staff if there were particular areas to key in on and consider adding to the existing code. Stephen Haase, Director of Planning, Building and Code Enforcement, responded that there are systems that will be in place once construction is completed, and Staff will look at how they were phased in during construction to determine why that portion of the building was resistant to fire. Council Member Yeager commented that the City of Portland requires developers to come up with a fire plan, and asked if San Jose requires this. Director Haase responded that Staff would follow up with Portland to determine what their fire plan includes and see if its elements are appropriate to include in San Jose’s construction process, and added that Staff would be working closely with the Fire Department on that. Council Member Yeager asked if Staff had reviewed construction currently going on in San Jose, particularly downtown, to see if anything should be done to add more fire protection. Director Haase responded that Staff is more sensitized to the potential threats on a construction site, including maintaining the site in a safe fashion when construction is not occurring to prevent arson. He added that Staff is looking at practices as construction takes place, placement of fire extinguishers on site, and how some of the construction activities that include heat sources are being managed.

Council Member Yeager recommended that Staff consider the activation of sprinklers before the building is completed. Director Haase indicated that Staff will look at the feasibility of having this at the onset of the project; however, he expressed concern with relying solely on a system which is designed primarily to put out a fire on the contents of a building, not contain a major fire. Council Member Yeager stated that he would like more information on what is required for single-family homes and apartment. Staff responded that changes in the Building Code would no longer allow untreated wood shake roofs. The following individuals spoke on the issue: Pete Campbell and William Garbett. Council Member Diquisto asked what was the requirement for standpipes at Santana Row, as it is a three-story structure. Fire Chief Manny Alarcon responded that there are five standpipes in operation and were in service. Council Member Diquisto recommended that a basic requirement should be to install standpipes as soon as a building goes up to provide an adequate supply of water in case of a fire. He stated that he believes if standpipes are in place and construction workers on site have even a brief knowledge of what a standpipe is used for, there would be instantaneous response to a fire; then firefighters would be able to take the lines and apply to the fire. He recommended that Staff look into requiring a pre-fire plan for construction. Regarding the Santana Row fire, he stated that he believes there were not enough people to cover the fire, and that the ratio of firefighters to population in San Jose is lower than it was thirty years ago.

Council Member Williams noted that the State of California allows local municipalities to adjust the Code for their particular safety, well being, etc, and stated that while reviewing some of the recommendations for technical amendments, most are structural. He asked if there were any others that need to be more restrictive. Director Haase responded that the State Building Code provides several options or conditions under which the City can make the Code more restrictive – climactic, geological, or topical. He explained that while the City is limited in its ability to modify the Building Code based upon the State’s parameters, there are local ordinances that can be adopted to deal with the ongoing construction process which address best practices and information that was provided in the memorandum from Mayor Gonzales and Council Member Yeager. Council Member Williams asked if steel is being considered more than wood for framing. Director Haase responded that the decision to use wood versus steel is a business decision and both are acceptable under the Building Code. Council Member Williams commented that he believes Staff should look at this in terms of fire prevention. He asked for information on the circumstances where gypsum would be used.

Mayor Gonzales commented that everyone needed to focus on the fact that there were no injuries or deaths as a result of the Santana Row fire. He expressed concern with Council Member Diquisto’s recommendation to use construction workers to fight fire, as he was glad to see they escaped safely from Santana Row. Upon motion by Council Member Yeager, seconded by Council Member Chavez, and unanimously carried, the Staff recommendations were approved, with the directions to Staff in memorandum from Mayor Gonzales and Council Member Yeager, dated September 9, 2002, and Ordinance No. 26729, entitled: “An Ordinance of the City of San Jose Amending Title 24 of the San Jose Municipal Code to Adopt the 1997 Uniform Building, 2000 Plumbing and Mechanical Codes, the 1999 National Electrical Code and Portions of the 1997 Uniform Code for Building Conservation with Certain Exception, Modifications, and Additions”, was passed for publication. Vote 10-0-1-0. Absent: Shirakawa, Jr.

4.4 PUBLIC HEARING and adoption of a resolution conditionally vacating a portion of the public service easement in previously vacated King Road, south of Berryessa Road. CEQA: Negative Declaration, PP 00-12-096. Council District 4. (Public Works)

Documents Filed: (1) Memorandum from Director of Public Works Katy Allen, dated August 21, 2002, recommending conducting a public hearing and adoption of said resolution. (2) Proof of publication of Notice of Public Hearing, executed August 30, 2002, submitted by the City Clerk.

Discussion/Action: Director of Public Works Katy Allen reported that there was a stipulation on the vacation: it will not be finalized until all of the utilities currently in the easement have been relocated and an easement is secured for the existing telephone lines. Mayor Gonzales opened the Public Hearing and there was no testimony from the floor. Upon motion by Council Member Chavez, seconded by Council Member Williams, and unanimously carried, Resolution No. 71203, entitled: “A Resolution of the Council of The City of San Jose Authorizing the Vacation of a Portion of the Public Service Easement in the Previously Vacated King Road South of Berryessa Road Only After Certain Conditions Have Been Satisfied”, was adopted. Vote 11-0-0-0.

4.5 (a) Adoption of a resolution authorizing the City Manager to determine the responsibility of contractors eligible to bid for particular work, award to the lowest responsible bidder public works contracts, execute related change orders and manager contingencies for the San José Civic Center Project not to exceed the project construction budget of $192 million. CEQA: Resolution No. 68905. Council District 3. SNI: University. (Public Works)

(b) Approval of deductive Contract Change Order No. 1 for the San José Civic Center Shoring and Mass Excavation Project in the amount of $185,500, resulting from an alternative means for dewatering. CEQA: Resolution No. 68905. Council District 3. SNI: University. (Public Works)

(c) Approval of deductive Contract Change Order No. 2 for the San José Civic Center Shoring and Mass Excavation Project in the amount of $233,295, resulting from the City providing a closer disposal site for clean soil excavated from the project site. CEQA: Resolution No. 68905. Council District 3. SNI: University. (Public Works)

(d) Approval of a third amendment to the agreement with Turner Construction Company for construction management services in connection with the New Civic Center Project, revising the scope of work to provide for services through completion of the project, extending the term to April 30, 2006, revising the insurance requirements, approving an assignment of the agreement to Turner/Devcon, a joint venture of Turner Construction Company and Devcon Construction Incorporated, and increasing compen-sation by $26,389,600, for a total contract amount of $29,365,600 which includes $2,976,000 for the already completed design phase, $19.9 million for construction management services with an ‘at risk’ provision and up to $6,489,000 for City-approved construction cost savings achieved by the joint venture. The joint venture will be ‘at risk’ for up to $3.75 million if budget and schedule are not achieved. CEQA: Exempt, PP02-09-237. Council District 3. SNI: University. (Public Works)

(e) Report on bids and award of contract for the San José Civic Center Pre-Cast Concrete Piles Project to the low bidder, Foundation Constructors, Inc., in the amount of $2,398,950, and approval of a contingency in the amount of $201,050. CEQA: Negative Declaration, Resolution No. 68905. Council District 3. SNI: University. (Public Works)

(Rules Committee referral 9/4/02)

Documents Filed: Memoranda from Director of Public Works Katy Allen, dated September 6, 2002, recommending: (a) Adoption of a resolution under the San José Municipal Code Section 14.04.150.B to allow the City Manager to enter into public works contracts, related change orders and manage contingencies for the San José Civic Center Project not to exceed the project construction budget. (b) Approval of said deductive Contract Change Order No. 1 resulting from an alternative means for dewatering. (c) Adoption of said deductive Contract change Order No. 2 resulting from the City providing a closer disposal site for clean soil excavated from the project site. (d) Approval of a third amendment to said agreement with Turner Construction Company for construction management services in connection with the New Civic Center Project. (e) Award of said contract, with related contingency, to the low bidder, Foundation Constructors, Inc.

Discussion/Action: Terry Roberts, Deputy City Manager, explained that there are five items pending approval to move the Civic Center project ahead and summarized them as follows: (a) award of contracts, which include 66 individual contracts; (b) and (c) there is a $418,000 cost reduction to the project after negotiation with the contractor and this amount will go back to the contingency budget; (d) agreement with Turner/Devcon, a joint venture, to manage the project for the City, which is critical because of the multiple primes, and provides better management of the budget; (e) award of pile contract. He stated that the project is now on schedule and on budget and there will be an ongoing value effort to keep it on budget, with detailed reports to be frequently provided to the Council. Regarding Council updates, Council Member Cortese asked how often they would be received. Deputy City Manager Roberts responded that Staff would provide quarterly reports or more frequently if necessary. Council Member Dando expressed concern about delegation of authority as it relates to value engineering, as in the past there have been decisions made about value engineering that have cost the City a great deal of money. She asked who is the person in the City with responsibility to make sure that when value engineering is used it is not degrading the project with the City paying for it later. Deputy City Manager Roberts responded that his office has this responsibility but is not totally delegating value engineering, and that the City would have either approval or veto power over any value engineering efforts. Council Member Chavez expressed concern that there is already a problem with construction workers in her neighborhood and asked someone to look into the situation. She requested that there be intermittent reports provided to the Council Offices in writing about the contracts, community outreach that is occurring, and calls being received and how they are resolved. She stated that she would like meetings to continue with the Redevelopment Agency and Public Works to discuss all projects taking place. Council Member Williams expressed concern that there could be a problem with so many people working on the project, and asked how Staff ensures some type of methodology is used to keep everybody on the same page. Deputy City Manager Roberts responded that assigning contracts to Turner/Devcon forges a partnership with the contractors and the City will have a major presence to coordinate the project. Council Member Williams recom-mended tracking the project. Deputy City Manager Roberts explained that there will be a very meticulous schedule to allow tracking of the project. Council Member Reed indicated he would like an on-line status report developed so it can be checked on a daily basis and allow input from the community. Deputy City Manager Roberts explained that the web site is up and running and Staff will post updates on a regular basis. Council Member Reed asked that reports provided to the Council include tracking of costs. Council Member LeZotte expressed concern with the delegation of authority and asked what happens at the end of the project when it goes above budget, what is the extent of delegation of authority regarding value engineering, and who will make a decision whether or not to approve a bid that comes in over budget. Deputy City Manager Roberts responded that the City Manager’s office would make the decisions; however, adjustments would be made as the project progresses rather than at the completion of the project. He added that any value engineering decisions would not adversely impact the current scope of work and would come back to Council for a decision.

Upon motion by Council Member Diquisto, seconded by Council Member Dando, and unanimously carried, Resolution No. 71204, entitled: “A Resolution of the Council of The City of San Jose Authorizing the City Manager to Determine the Pool of Responsible Bidders, Award Each Construction Contract to the Lowest, Responsive Bidder, Establish a Contingency, and Execute Change Orders Up to the Amount of the Contingency, for the New Civic Center Project in an Amount Not to Exceed the Project Budget of $192 Million”, was adopted; Contract Change Order Nos. 1 and No. 2 with RGW, Inc. were approved and their execution authorized; the third amendment to the said agreement with Turner Construction Company was approved and its execution authorized; and the award of said contract, with related contingency, to the low bidder, Foundation Constructors, Inc., was approved and its execution authorized. Vote 10-0-1-0. Absent: Shirakawa, Jr.

RECREATION & CULTURAL SERVICES

5.2 Adoption of appropriation ordinance and funding sources resolution amendments in the City-wide Construction and Conveyance Tax Fund establishing the Happy Hollow Zoo/Paul Chaffee State Grant appropriation to the Parks, Recreation and Neighborhood Services Department in the amount of $270,050. CEQA: Not a Project. (City Manager’s Office)

Documents Filed: Memorandum from Budget Director Larry D. Lisenbee dated August 21, 2002, recommending adoption of said appropriation ordinance and funding sources resolution amendments in the City-Wide Construction and Conveyance Tax Fund.

Discussion/Action: Upon motion by Council Member Diquisto, seconded by Council Member Dando, and unanimously carried, Ordinance No. 26730, entitled: “An Ordinance of the City of San Jose Amending Ordinance No. 26674 to Appropriate Moneys in the Construction and Conveyance Tax Fund: City-Wide Parks to Establish an Appropriation for the Happy Hollow Zoo/Paul Chaffee State Grant: and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”; and Resolution No. 71205, entitled: “A Resolution of the Council of The City of San Jose Amending Resolution No. 71072 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2002-2003 to Adjust Revenues in the Construction and Conveyance Tax Fund: City-Wide Parks”, were adopted. Vote 10-0-1-0. Absent: Shirakawa, Jr.

AVIATION SERVICES

8.1 Adoption of a resolution authorizing the City Manager to apply for, and execute upon receipt, a grant with the Federal Aviation Administration (FAA) for the Airport Acoustical Treatment (ACT) Program Category 1B expanded treatment area, in the amount of $8,000,000. CEQA: Resolution No. 67380. (Airport)

(Rules Committee referral 9/4/02)

Documents Filed: Memorandum from Aviation Director Ralph G. Tonseth, dated
August 21, 2002, recommending adoption of said resolution authorizing the City Manager to apply for, and execute upon receipt, a grant with the Federal Aviation Administration.

Discussion/Action: Council Member Williams questioned why the date for submission of the grant application was so close to the deadline. Director of Aviation Ralph Tonseth responded that the grant money only recently became available because another airport was not able to accept the money. Upon motion by Council Member Chavez, seconded by Council Member Williams, and unanimously carried, Resolution No. 71206, entitled: “A Resolution of the Council of The City of San Jose Authorizing the City Manager to Apply for an Execute a Grant with the Federal Aviation Administration for the Airport Acoustical Treatment Program, to Accept the Grant if Awarded, and to Execute All Related Documents”, was adopted. Vote 10-0-1-0. Absent: Shirakawa.

JOINT COUNCIL/REDEVELOPMENT AGENCY

The Redevelopment Agency Board was convened to consider Item 10.1 in a Joint Session with the City Council.

10.1 (a) Adoption of a resolution by the City Council approving the sale of the project site (located at 2191 Alum Rock Avenue) to Ketzal Community Development Corporation (Ketzal), accepting the 33433 Summary Report and Re-Use Valuation, and finding that the sale of the property will provide housing for low-income persons, is consistent with the Implementation Plan for the San José Merged Redevelopment Project Area and that the consideration for the property is not less than the fair reuse value for the proposed use, with the covenants and conditions and development costs authorized by the Disposition and Development Agreement (DDA).

(b) Adoption of a resolution by the City Council and Agency Board approving the DDA between the City of San José, the Redevelopment Agency, and Ketzal for the development of a for-sale affordable housing project to be located at 2191 Alum Rock Road, and authorizing the City Manager and the Executive Director to negotiate and execute amendments to the DDA as may be reasonably required by the Developer’s lender, and authorizing the City Manager to convey the property to Ketzal once the conditions of conveyance have been met.

(Housing)

(Deferred from 9/3/02 – Item 10.1)

Documents Filed: (1) Memorandum from Director of Housing Leslye Corsiglia dated August 14, 2002, recommending adoption of a resolution approving a DDA between the City of San José and KETZAL for the development of 66 units of for-sale condominiums on .60 acres of land located at 2191 Alum Rock Avenue. (2) Proofs of publication of Public Hearing Notice, dated August 19 and August 26, 2002, submitted by the City Clerk.

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

Notice of City Engineer’s Pending Decision on Final Maps

In accordance with Sec. 19.16.140d of the San Jose Municipal Code, this is notice of the City Engineer's pending decision on the following Final Maps:

Tract	Location	Council District	Developer	Lots/ Units	Type	Proposed Decision
9229	NE corner of Aborn Road & Altamara Avenue	8	Shapell	70 lots	Single Family Detached	Approve

Open Forum

(1) Chun Lee commented on the progress of Falun Gong.

(2) Pete Campbell commented on the 23^rd Fighter Group.

Adjournment

The Council of the City of San Jose adjourned at 3:10 in memory of Dr. B. Roberto Cruz, founder of National Hispanic University.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN

CITY CLERK