CSJ-Minutes Oct. 22, 2002, Council

MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, OCTOBER 22, 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, Reed, Shirakawa, Jr., Williams, Yeager; Gonzales.

Absent: Council Members - LeZotte (excused).

Upon motion unanimously adopted, Council recessed at 9:35 a.m. to a Closed Session in Room 600 to confer with Legal Counsel pursuant to Government Code Section 54956.9; under Subsection (a) to discuss existing litigation in the cases of (1) In re Summers (2) In re Sulpizio; (3) Hells Angels Motorcycle Club 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.

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

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

Absent: Council Members - LeZotte (excused).

Invocation

Pastor Derek Engfelt, Saint Timothy’s Lutheran Church, delivered the invocation. Mayor Gonzales extended condolences to the families and victims of the sniper attacks in the Washington D.C. and Virginia areas. (District 9)

Pledge of Allegiance

Mayor Gonzales led in the Pledge of Allegiance.

Orders of the Day

Upon motion by Council Member Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the Orders of the Day and the Amended Agenda were approved, with Item 4.2 deferred to November 5, 2002. Vote: 10-0-1-0. Absent: LeZotte.

CEREMONIAL ITEMS

1.1 Presentation of the Human Rights Commission Award for Al Traugott to his wife, Roz Dean, in posthumous recognition of Al’s dedication to promoting human rights and leading the Save San José Medical Center Coalition. (Yeager)

Documents Filed: None.

Discussion/Action: As Liaison to the Human Rights Commission, Council Member Yeager joined Mayor Gonzales at the Podium and introduced Commission Chair Paul Feci, Commissioner Socorro Reyes-McCord, and honoree’s widow Roz Dean, who accepted the award in recognition of the dedication and leadership efforts to prevent the closing of San José Medical Center.

1.2 Presentation of a commendation to Kaiser Permanente, Santa Teresa and Dr. Stan Butler of San José State University for their involvement in the National Youth Sports Program (NYSP). (Campos)

(Rules Committee referral 10/16/02)

Documents Filed: None.

Discussion/Action: Joining Mayor Gonzales at the Podium, Council Member Campos introduced Dr. Stan Butler, Dr. Seham El Diwany, Sylvia Townsend, Dorothy Marcelle, Lisa Jafferies, and Andrea Liederman, who unselfishly volunteer their time and resources to support the National Youth Sports Program. Mayor Gonzales presented the commendations to the honorees, and thanked them for their leadership in and long-term commitments to providing medical services to the youth of San José.

1.3 Presentation by Mayor Gonzales and City Clerk Patricia L. O’Hearn of commendation to Rachel Thrower, as she retires from 15 years of service as the Legislative Secretary to the City Council.

Documents Filed: None.

Discussion/Action: Joining Mayor Gonzales at the Podium was City Clerk Patricia L. O’Hearn, who presented a floral arrangement to Rachel Thrower, and commended her for her exemplary work over the past 15 years as Legislative Secretary to the City Council. Mayor Gonzales thanked the honoree for her work and extended best wishes for the future on the occasion of her retirement.

CONSENT CALENDAR

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

2.1 Approval of City Council Minutes

(a) Regular meeting of April 2, 2002

(b) Joint Council/Redevelopment Agency Board meeting of April 2, 2002

(d) Joint Council/Redevelopment Agency Board meeting of April 9, 2002

(e) Regular meeting of April 16, 2002

Documents Filed: Minutes of regular meetings of April 2, April 9 and April 16, 2002, and Joint City Council/Redevelopment Agency Board meetings of April 2 and April 9, 2002.

Discussion/Action: The minutes of April 2, April 9 and April 16, 2002, were approved. Vote: 11-0-0-0. Absent: LeZotte.

2.2 Final adoption of ordinance.

(a) ORD. NO. 26744 – Amends Chapter 11.48 of Title 11 of the San José Municipal Code to add a College Park Residential Permit Parking Program.

[Deferred from 10/15/02 – Item 2.2(b)]

Documents Filed: None.

Discussion/Action: This item was deferred to November 19, 2002.

2.3 Adoption of a resolution authorizing the City Manager to negotiate and execute a first amendment to the concession agreement with SmarteCarte, Inc. to increase the percentage rent, add a fee structure for carts used in the Interim Federal Inspection Services Facility, and remove all electronic lockers, with annual revenue to the City in excess of $13,000. CEQA: Resolution No. 67380, PP 02-09-275. (Airport)

Documents Filed: Memorandum from Aviation Director Ralph G. Tonseth, dated October 2, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71263, 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 Agreement with Smartecarte, Inc. to Increase the Percentage Rent, Add a Fee Structure for Carts Used in the Interim Federal Inspection Services Facility and Provide for the Removal of All Electronic Lockers From The Norman Y. Mineta San Jose International Airport With Annual Revenue to the City in Excess of $13,000”, was adopted. Vote 10-0-1-0. Absent: LeZotte.

2.4 Adoption of amendments to the annual appropriation ordinance in the State Drug Forfeiture Fund (Fund 417) for Fiscal Year 2002-2003:

(a) Increase the Non-personal and Equipment appropriation for the Police Department in the amount of $17,900; and

(b) Decrease the Ending Fund Balance by $17,900.

CEQA: Not a Project. (City Manager's Office/Police)

Documents Filed: Memorandum from Budget Director Larry D. Lisenbee and Chief of Police William M. Lansdowne, dated October 2, 2002, recommending adoption of amendments to said annual appropriation ordinance in the State Drug Forfeiture Fund.

Discussion/Action: Ordinance No. 26760, entitled: “An Ordinance of the City of San Jose Amending Ordinance No. 26674 to Appropriate Moneys in the State Drug Forfeiture Fund; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption” was adopted. Vote 10-0-1-0. Absent: LeZotte.

2.5 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2002-2003 #9, and authorization for the Director of General Services to execute the purchase orders. CEQA: Not a Project. (General Services)

Documents Filed: Memorandum from Director of General Services, Jose Obregon, dated October 2, 2002, recommending approval of award of open purchase orders

Discussion/Action: The award of open purchase orders List 9 was approved and the Director of General Services was authorized to execute the purchase orders. Vote: 10-0-1-0. Absent: LeZotte.

2..6 Adoption of a resolution authorizing the Director of General Services to execute all documents necessary for the donation of one surplus front-end loader with an estimated value of $7,000 to El Govierno de Baja California Sur, Mexico. CEQA: Not a Project. (General Services)

Documents Filed: Memorandum from Director of General Services, Jose Obregon, dated October 2, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71264, entitled: “A Resolution of the Council of the City of San Jose Approving the Donation of One Surplus Front-End Loader to El Govierno Del Estado de Baja California Sur, Mexico”, was adopted. Vote 10-0-1-0. Absent: LeZotte.

2.7 Report on bids and award the purchase of one 16’ Crime Scene Van for the Police Department to the lowest responsive bidder, Farber Motors, Inc., dba/Farber Specialty Vehicles (Columbus, OH), at a total cost of $167,019.75, including tax and freight, and authorization for the Director of General Services to execute the purchase order for the:

(a) Immediate purchase of one unit at the bid price of $167,019.75, plus approval of a contingency in the amount of $8,500 for design and safety improvements that may arise subsequent to the publication of the bid specifications and award of the purchase; and

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

CEQA: Not a Project. (General Services/Police)

Documents Filed: Memorandum from Director of General Services, Jose Obregon, dated October 2, 2002, recommending award of said purchase to the lowest responsive bidder, Farber Motors, Inc., dba/Farber Specialty Vehicles and authorizing the Director of General Services to execute the purchase order.

Discussion/Action: The award of said purchase to the lowest responsive bidder, Farber Motors, Inc., dba/Farber Specialty Vehicles, was approved and the Director of General Services authorized to execute the purchase orders. Vote: 10-0-1-0. Absent: LeZotte.

2.8 Adoption of a resolution authorizing the City Manager to negotiate an amendment to the agreement with Community Foundation Silicon Valley for the Community Action Pride (CAP) grant program to include additional “Special Emphasis” funds not to exceed $136,000. CEQA: Not a Project.

(Parks, Recreation and Neighborhood Services)

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated October 2, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71265, entitled: “A Resolution of the Council of the City of San Jose Authorizing the City Manager to Negotiate and Execute an Amendment to the Agreement With Community Foundation Silicon Valley for The Community Action Pride (CAP) Grant Program to Include Additional “Special Emphasis” Funds Not to Exceed $136,000”, was adopted. Vote 10-0-1-0. Absent: LeZotte.

2.9 Adoption of a resolution authorizing the City Manager to negotiate and execute a continuation agreement amending the Resources for Families and Communities agreement, extending the term by nine months to end on June 30, 2003, and expending the remaining not to exceed amount of $147,000. CEQA: Not a Project. Council District 3. SNI: Washington. (Parks, Recreation and Neighborhood Services)

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated October 2, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71266, entitled: “A Resolution of the Council of the City of San Jose Authorizing The City Manager To Negotiate and Execute a Continuation Agreement With Resources for Families and Communities on Behalf of the Washington Community Neighborhood Association to Extend the Term Through June 30, 2003, at No Additional Cost to the City”, was adopted. Vote 10-0-1-0. Absent: LeZotte.

2.10 Adoption of a resolution authorizing the City Manager to submit a joint application with the San José Conservation Corps in the amount of $167,570 for services performed by the San José Conservation Corps at Alum Rock Park under the Urban Streams Restoration Program for Fiscal-Year 2002-2003, and if awarded, negotiate and execute a grant agreement with the State of California, Department of Water Resources. CEQA: Exempt, PP 02-10-290.

(Parks, Recreation and Neighborhood Services)

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated October 2, 2002, recommending adoption of said resolution authorizing the City Manager to submit a joint application with the San José Conservation Corps and, if awarded, negotiate and execute a grant agreement with the State of California, Department of Water Resources.

Discussion/Action: Council Member Reed requested an explanation of the work being done by the Conservation Corps and the remaining work to be done on the streams in Alum Rock Park. Sara Hensley, Director of Parks, Recreation and Neighborhood Services, responded that the Conservation Corps work is a separate project and has no effect on the delayed project. Council Member Reed expressed concern that federal monies have been lost because of the delay and asked if the Council should take action through the City’s Legislative staff to motivate the Army Corps of Engineers. Director Hensley responded that Staff has sent letters to the Army Corps of Engineers and has had conversations with them regarding the permits needed to go forward with the project, and that to date 10% of the funds are at risk. Mayor Gonzales requested Staff to come back to Council with a proposed strategy. Council Member Reed requested the report within a month. Resolution No. 71267, entitled: “A Resolution of the Council of the City of San Jose Authorizing the City Manager to Execute and Submit a Joint Application With The San Jose Conservation Corps to the State to the State of California, Department of Water Resources, for a Grant for Alum Rock Park in an Amount Not to Exceed $167,570, and to Execute All Related Documents”, was adopted, and Staff directed to return to Council on November 19, 2002 with information on the status on the Army Corps permitting process, and to include recommended strategy for Council consideration. Vote 10-0-1-0. Absent: LeZotte.

2.11 Adoption of a resolution authorizing the reorganization of territory designated as Evergreen No. 184, which involves the annexation to the City of San José of 40.0 gross acres of land, located along Dove Hill Road easterly of Highway 101, approximately 2,000 feet northerly of Hellyer Avenue, and the detachment of the same from the Central Fire Protection District and the Santa Clara County Library Service Area. (Planning, Building, and Code Enforcement)

Documents Filed: Memorandum from Planning, Building & Code Enforcement Depart-ment Director Stephen M. Haase, dated October 2, 2002, recommending adoption of said resolution authorizing the reorganization of territory designated as Evergreen No. 184.

Discussion/Action: Resolution No. 71268, entitled: “A Resolution of the Council of the City of San Jose Ordering the Reorganization of Certain Uninhabited Territory Designated as Evergreen No. 184 Subject to Liability for General Indebtedness of the City” was adopted. Vote 10-0-1-0. Absent: LeZotte.

2.12 Approval of an agreement with Harris Design for landscape architectural consultant services for the Story Road Mitigation Project from the date of execution to December 23, 2003, in the amount of $124,000. CEQA: Exempt, PP 02-08-216. Council District 7. SNI: Spartan/Keyes. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated October 2, 2002, recommending approval of said agreement with Harris Design.

Discussion/Action: The said agreement with Harris Design was approved and its execution authorized. Vote: 10-0-1-0. Absent: LeZotte.

2.13 (a) Adoption of a resolution authorizing the City Manager to negotiate and execute an eleventh amendment to the Scheduled Airline Terminal Building Lease with American Airlines, Inc., to provide for the reallocation of gates in connection with the opening of the new Interim Federal Inspection Services Facility, with monthly revenue to the City of $245,371.

(b) Adoption of a resolution authorizing the City Manager to negotiate and execute a Lease of Airport Premises with American Airlines, Inc., for the new Interim Federal Inspection Services Facility, with annual revenue to the City of $77,345.

CEQA: Resolution No. 67380, PP 02-09-252. (Airport)

(Deferred from 10/15/02 – Item 2.5)

Documents Filed: None.

Discussion/Action: This item was deferred to October 29, 2002.

2.14 Approval of City Attorney Richard Doyle’s travel to Washington, D.C., from November 3-4, 2002, to participate in discussions with the FAA. CEQA: Not a Project. (City Attorney)

(Rules Committee referral 10/16/02)

Documents Filed: None.

Discussion/Action: The travel request for Richard Doyle was approved. Vote: 10-0-1-0. Absent: LeZotte.

END OF CONSENT CALENDAR

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – October 9, 2002

Vice Mayor Shirakawa, Jr., Chair

Documents Filed: Rules Committee Report of October 9, 2002.

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

(b) City Council

(1) Review October 22, 2002 Draft Agenda

The Committee recommended approval of the October 22, 2002 City Council Agenda with one addition.

(b) City Council

(2) Add New Items to October 15, 2002 Amended Agenda

The Committee recommended six additions to the October 15, 2002 Council Agenda.

(1) Amendments to Council Committee Agendas

(a) Finance and Infrastructure Committee

(b) Economic Development and Environment Committee

None Filed.

(d) Meeting Schedules - None Presented.

(e) The Public Record - No Public Record Filed.

(f) Boards, Commissions and Committees - None Presented.

(g) Council Referrals for Assignment to Appropriate Committee, Administration, or Council Appointee - None Presented.

(h) Administrative Reviews and Approval

(1) Workload assessment to establish an ad hoc City Council/Santa Clara Valley Water District committee to discuss all unresolved policy issues relating to trails

This item was reported at the October 15, 2002 Council Meeting.

(2) Request from Council Member Nora Campos to use Council General funds to attend the Sister Cities Anniversary in Japan, October 23-31, 2002. Attachment: Memorandum from Council Member Nora Campos dated October 1, 2002 requesting use of Council General funds; Supple-mental memorandum from Council Member Campos dated October 4, 2002 requesting an exemption from Council Travel Policy Item 12F, which mandates use of the San José International Airport as the origin and destination point; and a memorandum from City Clerk Patricia O’Hearn dated October 2, 2002 summarizing the use of Council General Travel Budget to date.

The Committee recommended approval of the use of Council General funds by Council Member Campos as the San José delegation to attend the Sister Cities Anniversary, October 23-31, 2002 in Japan, and an exemption from Council Policy 12F.

(3) Approve City positions on November 2002 State ballot

This item was reported at the October 15, 2002 Council Meeting.

(i) Oral Communications - None Presented.

(j) Adjournment - The meeting was adjourned at 2:30 p.m.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr. seconded by Council Member Diquisto, and unanimously carried, the Rules Committee Report and actions of October 9, 2002 was accepted. Vote: 10-0-1-0. Absent: LeZotte.

3.3 Report of the Finance and Infrastructure Committee – October 9, 2002

Council Member Dando, Chair

Documents Filed: Finance and Infrastructure Committee Report of October 9, 2002.

(a) Consent Items

(1) Monthly Investment Report for August 2002. Attachment: Memorandum from Finance Department Director Scott P. Johnson, dated September 25, 2002, transmitting said report.

(2) August Monthly Report. Memorandum from City Auditor Gerald A. Silva, dated September 17, 2002, transmitting said report.

The Committee accepted the Consent Items.

(b) Monthly Financial Report for August 2002. Attachment: Memorandum from Budget Director Larry D. Lisenbee, dated October 2, 2002, transmitting said report.

The Committee accepted the Staff report.

(c) Sales and Business Tax for Quarter Ending June 30, 2002. Attachment: Memorandum from City Auditor Gerald A. Silva, dated September 18, 2002, transmitting said report.

The Committee accepted the Staff report.

(d) Audit of the Office of Equality Assurance. Attachment: Report from the Office of the City Auditor, entitled, “An Audit of the City of San José’s Office of Equality Assurance” dated September 2002.

The Committee accepted the staff report with direction [1] that the Department return to the Finance and Infrastructure Committee within three months with an evaluation of the positive and negative aspects of joining the State’s Compliance Program; [2] that the City Manager’s Office look at funding alternatives to fund the City’s current compliance program; and [3] that the Committee be notified on whether the District Attorney would be willing to assist the City with cases involving non-compliant contractors.

(e) Semi Annual Recommendation follow-up for Six Months. Attachment: Memorandum from City Auditor Gerald A. Silva, dated September 19, 2002, transmitting said report.

The Committee approved the staff report with the following requests [1] that “Recommendation #1, An Audit of the Fire Department – Hazardous Materials Storage Permit Fees” – be referred to the City Manager’s Office for review and a report to the Finance & Infrastructure Committee with the findings prior to the budget process; and [2] that “Recommendation #9, An Audit of the Property Appraisal Process of the Department of Public Works – Real Estate Division be dropped.

(f) Oral Petitions

Bill Garbett spoke on Labor Compliance and state law.

(g) Adjournment - The Committee adjourned at 4:10 p.m.

Discussion/Action: Regarding the Audit of the Office of Equality Assurance, Council Member Dando recommended a change to the Staff report: that Staff report back to Committee in two months and the full Council on December 17. Upon motion by Council Member Dando, seconded by Council Member Diquisto, and unanimously carried, the Finance and Infrastructure Committee Report and actions of October 9, 2002 were accepted with the amendment to Committee action in Item 3.3(d); namely, that Staff return to the Finance and Infrastructure Committee’s December 11, 2002 meeting (two months) with the evaluation, and to report to the full Council on December 17, 2002.

3.4 Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with:

(a) Blue Shield of California to provide Health Maintenance Organization (HMO) insurance to employees and retirees and their dependents for the period from November 1, 2002 through December 31, 2003, with authorization to negotiate renewal rates on an annual basis thereafter, with the following monthly rates through December 31, 2003:

(1) $276.81 for Employee Only.

(2) $711.05 for Employee Plus Family.

(b) PacifiCare to provide a Medicare Supplement plan for Medicare eligible retirees and their dependents for the period from January 1, 2003 through December 31, 2003, with authority to negotiate renewal rates on an annual basis thereafter, with monthly rates through December 31, 2003 not to exceed the following:

(1) $256.26 for Single Medicare Retiree.

(2) $512.52 for Medicare Retiree and Spouse.

CEQA: Not a Project. (Employee Services)

Documents Filed: Memorandum from Employee Services Acting Director Kay Winer, dated October 18, 2002, recommending adoption of said resolution authorizing the City manager to negotiate and execute an agreement with (a) Blue Shield of California and (b) PacifiCare.

Discussion/Action: Acting Director of Employee Services, Kay Winer, provided an overview of the Request for Proposal (RFP) process to replace Lifeguard with a new Health Maintenance Organization (HMO). She explained that a Benefits Review Forum reviewed the four proposals that were submitted, and recommended Blue Shield of California to provide HMO insurance to employees and retirees, and PacifiCare to provide a Medicare Supplement plan for Medicare eligible retirees. She reviewed the outreach program for employees and retirees regarding the changes in the plan. Regarding the communication and dialogue aspect, Council Member Cortese asked if Staff would be engaging in roundtable dialogue with leadership, i.e., retirees, to provide answers to their questions. Staff responded that an information packet is available and meetings will be held with the providers to respond to questions.

Council Member Dando stated she believes it is extremely important that all employee representatives be involved in the process, especially Police and Firefighters and those who do not live in the San Jose area, and expressed concern that not everyone that should have been was involved in the review process. She added that she hoped a process would be established so this does not happen again. City Manager Del Borgsdorf responded that there was no intent for oversight of any representatives or organizations, and that Staff will continue to work on the process. Council Member Dando requested a copy of Staff’s response to an October 17 letter of concern. Council Member Chavez asked what safe-guards was Staff able to include in the benefits plan. Acting Director Winer responded that financial statements from the proposers were analyzed by a Certified Public Accountant and reviewed by the Benefits Review Forum. Council Member Chavez commented that Staff should be sure that large groups are not left out of the process.

Council Member Williams commented that Staff needs to include all those affected by the change and asked if there would be a yearly review of Blue Shield. Acting Director Winer responded that there would be performance measures in place and the Benefits Staff in the Employees Service Department would continuously monitor the contract. Council Member Williams asked what is the review process for the HMO’s. Staff explained that there is a full RFP every four years on the contract, with a review at the end of each calendar year of performance standards with the provider and negotiation of rates for the next year. She added that there is an informal monitoring of the market to see what other plans are available. Council Member Williams asked if there had been another parameter in place in the existing process, could the City have detected a problem with Lifeguard. Staff responded that parameters would be added to the new contract, including financial statements that come from the Department of Managed Health Care. Joe Bass, representing the Retired Employees Association, spoke on the item. Upon motion by Council Member Diquisto, seconded by Council Member Dando, and unanimously carried, Resolution No. 71269, entitled: “A Resolution of the Council of the City of San Jose Authorizing the City Manager to Negotiate and Execute an Agreement (A) With Blue Shield of California to Provide Health Maintenance Organization (HMO) Insurance to Employees and Retirees and Their Dependents for the Period From November 1, 2002 Through December 31, 2003 With Authorization to Negotiate Renewal Rates on an Annual Basis Thereafter; and (B) With Pacificare to Provide a Medicare Supplement Plan For Medicare Eligible Retirees and Their Dependents for the Period From January 1, 2003 Through December 31, 2003, With Authority to Negotiate Renewal Rates on an Annual Basis Thereafter”, was adopted. Vote 10-0-1-0. Absent: LeZotte.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.1 Report of the Economic Development & Environment Committee – October 7, 2002

Council Member Williams, Chair

Documents Filed: Economic Development & Environment Committee Report of October 7, 2002.

(a) Recycled Product Procurement. Attachment: Memorandum from Director of General Services, Jose Obregon, dated September 24, 2002, transmitting said report.

The Committee accepted the report.

(b) Annual Report of Activities of the San José First Employment Program. Attachment: Memorandum from Director of Economic Development, Paul Krutko, dated September 20, 2002, transmitting said report.

The Committee accepted the report.

(c) Update of Land Use Policy for Wireless Communication Facilities. Attachment: Memorandum from Planning, Building and Code Enforcement Director Stephen M. Haase, dated September 20, 2002, transmitting said report.

The Committee accepted the report with the exception that the only time a 35-foot setback would occur is when a PG&E Right-of-Way exists, and that Staff cross-reference the item on the October 22, 2002 City Council Agenda.

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

(d) Street Tree Pruning and Replacement Process. Attachment: Memorandum from Acting Director of Transportation James R. Helmer, dated August 22, 2002, transmitting said report.

The Committee deferred this item to the November 4, 2002 Economic Development and Environment Committee.

(e) Oral Petitions - None Presented.

(f) Adjournment - The meeting was adjourned at 2:35 p.m.

Discussion/Action: Upon motion by Council Member Williams, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the Economic Development & Environment Committee Report and actions of October 7, 2002 accepted with Council action on Item 4.1(c) taken at Item 4.2. Vote: 7-0-3-0. Absent: Cortese, Diquisto, LeZotte.

4.2 Adoption of a resolution approving the proposed update to the City Council Land Use Policy for Wireless Communications Facilities. (Planning, Building and Code Enforcement)

[Economic Development and Environment Committee referral 10/7/02 – Item 4.1(c)]

Documents Filed: None.

Discussion/Action: This item was deferred to November 5, 2002.

4.3 PUBLIC HEARING AND APPROVAL OF AN ORDINANCE amending Title 20 of the San José Municipal Code, Chapter 20.100, Section 20.100.610, to exempt re-roof projects that meet certain criteria from the requirement of a site development permit; and, amending Chapters 20.30, Section 20.30.230, and Chapter 20.100, Section 20.100.1300 to establish substandard lot for residential uses at three thousand square feet instead of five thousand square feet. CEQA: Exempt, PP02-09-248. (Planning, Building, and Code Enforcement) Citywide

Documents Filed: (1) Memorandum from Planning Commission Secretary Stephen M. Haase, dated October 10, 2002, transmitting the Planning Commission recommendation for approval of the Staff recommendation. (2) Proofs of publication of notices of public hearing dated September 24 and September 27, 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 Council Member Dando, seconded by Council Member Williams, and unanimously carried, the public hearing was closed and Ordinance No. 26761, entitled: “An Ordinance of the City of San Jose Amending Section 20.100.610 of Chapter 20.100 of Title 20 of The San Jose Municipal Code to Exempt Re-Roof Projects Meeting Specified Criteria From the Requirement of a Site Development Permit; and Amending Section 20.30.230 of Chapter 20.30 and Section 20.100.1300 of Chapter 20.100, All of Title 20 of The San Jose Municipal Code, to Modify The Size of a Substandard Lot for Residential Uses”, was passed for publication. Vote 8-0-3-0. Absent: Cortese, Diquisto, LeZotte.

4.4 PUBLIC HEARING AND APPROVAL OF AN ORDINANCE amending Chapter 23.04, Section 23.04.020 of Title 23, the Sign Code, of the San José Municipal Code to modify the boundary of the Innovation Triangle Area by deleting reference to State Highway 237. CEQA: Exempt, PP 02-09-272.

Planning, Building, and Code Enforcement) Citywide

Documents Filed: (1) Memorandum from Planning Commission Secretary Stephen M. Haase, dated October 2, 2002, transmitting the Planning commission recommendation for approval of the Staff recommendation. (2) Proof of publication of notice of public hearing dated October 4, 2002, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing and William Garbett spoke on the item. Upon motion by Council Member Reed, seconded by Council Member Campos, and unanimously carried, the public hearing was closed and Ordinance No. 26762, entitled: “An Ordinance of the City of San Jose Amending Section 23.04.020 of Chapter 23.04 of Title 23 of The San Jose Municipal Code to Modify the Boundary of the Innovation Triangle Area”, was passed for publication. Vote 9-0-2-0. Absent: Diquisto, LeZotte.

4.5 PUBLIC HEARING on the Historical Property Contract for the Hotel Metropole, City Landmark No. HL88-46 and the Sunol Building, City Landmark No. HL02-129 located at the northwest corner of South Market and Post Streets (35 South Market St.) on 0.33 gross acre. (Florin II LTD, William B. Mitchell G.P., Owner). CEQA: Exempt. (Planning, Building, and Code Enforcement)

MA 02-003 - District 3

(Continued from 10/8/02 – Item 4.3 and 10/15/02 – Item 4.5)

Documents Filed: None.

Discussion/Action: This item was continued to November 5, 2002.

RECREATION & CULTURAL SERVICES

5.2 (a) Approval of the re-phasing of the Parks Bond funded Happy Hollow Park & Zoo from six phases extending through 2010 to two phases with project completion in 2007.

(b) Adoption of the following appropriation ordinance amendments in the Parks and Recreation Bond Projects Fund:

(1) Establish the Happy Hollow Phase 1 - Parking, Entry, and Zoo Improvements appropriation in the amount of $6,480,000.

(2) Establish the Happy Hollow Phase II - Attractions, Zoo demo (old), green buffer appropriation in an amount of $2,520,000.

(3) Reduce the Happy Hollow Phase 1 – Strategy & Interim Improvements by $6,483,000.

(4) Reduce the Happy Hollow Phase II – Amusement Area Improvements by $883,000.

(5) Reduce the Ending Fund Balance by $1,634,000.

CEQA: Exempt, PP 02-10-296. SNI: Tully/Senter, Rockspring, Spartan/Keyes, Santee. (Public Works/Parks, Recreation and Neighborhood Services/City Manager's Office)

Documents Filed: None.

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

5.3 Report on bids and award of contract for the Stonegate and Watson Parks Play Area and Restroom Renovation Project to the lowest responsive bidder, ESR Construction, Inc., in the amount of $487,454, and approval of a contingency in the amount of $39,000. Stonegate Park CEQA: Exempt, PP02-06-172. Watson Park CEQA: Exempt, PP02-06-171. Council Districts 3 and 7. Watson Park SNI: 13th Street. (Public Works)

(Deferred from 10/1/02 – Item 5.4 and 10/15/02 – Item 5.2)

Documents Filed: Memoranda from Director of Public Works Katy Allen, dated September 11, and October 17, 2002, recommending award of said contract, with related contingency, to the lowest responsive bidder, ESR Construction, Inc.

Discussion/Action: Upon motion by Council Member Chavez, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the award of said contract, with related contingency, to ESR Construction, Inc., the lowest responsive bidder, was approved and its execution authorized. Vote: 9-0-2-0. Absent: Diquisto, LeZotte.

TRANSPORTATION SERVICES

6.1 (a) Adoption of a resolution authorizing the City Manager to negotiate and execute agreements with the Santa Clara Valley Transportation Authority (VTA) to:

(1) Complete final design plans and secure Caltrans approval for improvement of the Route 101/Hellyer and the Route 101/Blossom Hill Interchanges in Edenvale, in an amount not to exceed $4,000,000.

(2) Augment the Route 101 corridor planning studies to include the proposed Route 101/Fourth/Zanker/Skyport Interchange and the Route 101/Capital/Yerba Buena Interchange and fund an amount not to exceed $600,000.

(3) Contribute toward the design and construction of the Guadalupe River Pedestrian and Bicycle Bridge at River Oaks Parkway, in an amount not to exceed $400,000.

(4) Reimburse costs for the “BART to San José Feasibility Study” in an amount not to exceed $185,000.

(b) Adoption of the following appropriation ordinance and funding sources resolution amendments in the Services for Redevelopment Capital Projects Fund (City-side Redevelopment Fund):

(1) Establish an appropriation to the Department of Transportation for the Edenvale: Highway 101 Interchange Improvements project in the amount of $4,000,000.

(2) Increase the estimate for Earned Revenue by $4,000,000.

(c) Adoption of a resolution making certain determinations regarding the related expenditure of the Redevelopment Agency funds on certain public improvements in connection with the Edenvale: Highway 101 Interchange Improvements Project, as more specifically described in the memorandum from the Redevelopment Agency, dated October 9, 2002.

CEQA: Exempt, PP02-09-262. Council Districts 2,3,4,7, and 8.

(Transportation/City Manager’s Office)

Documents Filed: Memorandum from Acting Director of Transportation James R. Helmer and Budget Director Larry D. Lisenbee, dated October 2, 2002, recommending (1) adoption of said resolution authorizing the City Manager to negotiate and execute agreements with the Santa Clara Valley Transportation Authority (VTA), (2) adoption of said Appropriation Ordinance and Funding Sources Resolution amendments in the Services for Redevelopment Capital projects Fund, (3) adoption of said resolution making certain determinations regarding the related expenditure of the Redevelopment Agency funds on certain public improvements in connection with the Edenvale: Highway 101 Interchange Improvements Project.

Discussion/Action: William Garbett spoke on the item. Council Member Chavez reminded Staff that she had included in the prior action taken on this item a request for Staff to look at integration into surrounding neighborhoods; and that to be sure as contracts are completed, the scope remains the same. Staff responded that a traffic analysis would be completed to determine the impact on the surrounding area. Council Member Chavez indicated that Staff should look at the traffic calming perspective. Council Member Williams asked if Hellyer and Blossom Hill Roads were included in the project, and if there would be access to cross Monterey Road and the railroad tracks. Staff responded that they have concept plans for this. Council Member Reed asked what happens after the study is completed. Staff explained that the study includes the Route 101 corridor through San Jose, and at the conclusion of the study, Staff will provide a report to Council with recommend strategies and priorities. Vice Mayor Shirakawa, Jr., asked how Tully and Capitol relate to the project. Staff responded that these are being incorporated into the overall Route 101 corridor study, and over the next ten years will be prioritized with all of the projects. Upon motion by Council Member Williams, seconded by Council Member Chavez, and unanimously carried, Resolution No. 71270, entitled: “A Resolution of the Council of the City of San Jose Authorizing the City Manager to Negotiate and Execute Four Agreements With The Santa Clara Valley Transportation for Multiple Joint Transportation Projects”, Ordinance No. 26763, entitled: “An Ordinance of the City of San Jose Amending Ordinance No. 26674 to Appropriate Moneys in the Services for Redevelopment Capital Projects Fund for the Edenvale: Highway 101 Interchange Improvements Project; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, Resolution No. 71271, 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 Services for Redevelopment Capital Projects Fund”, and Resolution No. 71272, entitled: “A Resolution of the Council of the City of San Jose Making Certain Determinations Regarding the Expenditure of Redevelopment Agency Funds for Certain Public Improvements in the Edenvale Redevelopment Project Area”, were adopted. Vote 10-0-1-0. Absent: LeZotte.

ENVIRONMENTAL & UTILITY SERVICES

7.1 Adoption of a resolution authorizing the City Manager to negotiate and execute a continuation agreement with the Santa Clara Valley Water District (District) for the implementation of water conservation programs 2001-2002, extending the term by an additional nine months from September 30, 2002 to June 30, 2003, retroactive, at no additional cost to either party. CEQA: Exempt, PP 02-10-281. (Environmental Services)

Documents Filed: (1) Memorandum from Director of Environmental Services, Carl W. Mosher, dated October 2, 2002, recommending adoption of said resolution authorizing the City Manager to negotiate and execute a continuation agreement with the Santa Clara Valley Water District. (2) Letter from the Treatment Plant Advisory Committee dated October 10, 2002, stating concurrence with the Staff recommendation.

Discussion/Action: Upon motion by Council Member Dando, seconded by Council Member Chavez, and unanimously carried, Resolution No. 71273, entitled: “A Resolution of the Council of the City of San Jose Authorizing the City Manager to Negotiate and Execute a Continuation Agreement With The Santa Clara Valley Water District for the Implementation of Water Conservation Programs, to Extend the Term Through June 30, 2003, at no Additional Cost to Either Party”, was adopted. Vote 10-0-1-0. Absent: LeZotte.

AVIATION SERVICES

8.1 Approval of a fifth amendment to the Scheduled Airline Operating Agreement between the City of San José and American Airlines, Inc., to add provisions regarding compliance with the City’s Airport Noise Control Program, with annual revenue to the City in excess of $4,000,000. CEQA: Resolution No. 67380, PP 02-09-276. (Airport)

(Deferred from 10/15/02 – Item 8.1)

Documents Filed: None.

Discussion/Action: This item was deferred to October 29, 2002.

8.2 Adoption of a resolution extending the moratorium on authorizations granted under Article X(B)(2) of the Airport Noise Control Program (Resolution No. 57211) to operate during the curfew hours of 11:30 p.m. to 6:30 a.m. at the Norman Y. Mineta San José International Airport, for an additional period of ninety days, pending further investigation and study of requests to operate during such period, the potential effects of such requests, and a study of alternatives for restructuring the Airport Noise Control Program. (City Attorney’s Office)

(Rules Committee referral 10/16/02)

Documents Filed: Memorandum from City Attorney Richard Doyle, dated October 17, 2002, recommending adoption of said resolution extending the moratorium on authorizations granted under Article X(B)(2) of the Airport Noise Control Program

Discussion/Action: James Chadwick spoke on the item. Upon motion by Council Member Yeager, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Resolution No. 71274, entitled: “A Resolution of the Council of the City of San Jose Extending the Moratorium on Granting Authorizations to Operate During the Curfew

Period at The Norman Y. Mineta San Jose International Airport Pursuant to Article X(B)(2) of The Airport Noise Control Program for a Period of Ninety Days”, was adopted. Vote 10-0-1-0. Absent: LeZotte.

JOINT COUNCIL/REDEVELOPMENT AGENCY

Redevelopment Agency Board convened at 2:48 p.m. to consider Item 10.1 in a Joint Session.

10.1 (a) Approval of an ordinance amending Title 14 of the San José Municipal Code to add a new Chapter 14.06 setting forth dispute avoidance and dispute resolution procedures for public works construction projects.

(b) Adoption of a resolution by the Redevelopment Agency to implement the same dispute avoidance and dispute resolution procedures for RDA construction projects, to the extent that they do not conflict with the requirements of State law applied to RDA construction projects.

CEQA: Exempt, PP 02-10-278. (City Manager’s Office/Redevelopment Agency)

(Deferred from 10/15/02 – Item 10.1)

Documents Filed: (1) Memorandum from Mayor Gonzales and Council Member Dando, dated October 21, 2002, recommending City Council approve the Administration’s recommendation to create dispute avoidance policies for all Public Works and Redevelopment Agency construction projects. (2) Memorandum from City Manager Del D. Borgsdorf and Redevelopment Agency Executive Director Susan F. Shick, dated October 2, 2002, recommending (a) approval of said ordinance amending Title 14 of the San José Municipal Code to add a new Chapter 14.06 setting forth dispute avoidance and dispute resolution procedures for public works construction projects, and (b) adoption of said resolution by the Redevelopment Agency to implement the same dispute avoidance and dispute resolution procedures for RDA construction projects. (3) Correspondence from Associated General Contractors of California dated August 5, 2002, endorsing the proposed program.

Discussion/Action: The following individuals spoke on the item: Michael Talia, Associated General Contractors of California, William Garbett, Frank Redle, Construction Employers Association, and Tara Haas, Engineering and Utility Contractors Association. Council Member Dando asked when this was going into effect and what is the timeline for developing guidelines that will be used in the policy. Director of Public Works Katy Allen explained that the policy will go into effect immediately upon approval by Council, and Staff will be trained on partnering techniques, as well as bringing in a trained facilitator on all projects. She added that by the end of the year, Staff should be fully trained. Council Member Dando moved approval of the Staff recommendation. Council Member Diquisto seconded the motion. City Attorney Doyle explained that the ordinance, if approved, would come back for a second reading and would become effective 30 days after that; and that consistent with the Director’s comments, Staff would simultaneously work on the guidelines. Council Member Reed asked how this would affect existing contract. City Attorney Doyle responded that current contracts would not be affected at all; however, there is an amendment procedure. On a call for the question, the motion carried, and Ordinance No. 26764, entitled: “An Ordinance of the City of San Jose Amending Title 14 of The San Jose Municipal Code by Adding a New Chapter 14.06 Relating to Procedures for Dispute Avoidance and Dispute Resolution for Public Works Construction Projects”, was passed for publication, and Redevelopment Agency Board Resolution No. 5359 was adopted. Vote 10-0-1-0. Absent: LeZotte.

The Redevelopment Agency Board adjourned at 2:56 P.M.

Open Forum

Marc Boyd addressed Council on indebtedness of the Redevelopment Agency, and thanked Council Member Cortese for the work accomplished on the Just Cause proposal; William Garbett spoke on a variety of issues; and Ross Signorino congratulated Council Member Dando on the success of the Domestic Violence Walk.

Adjournment

The Council of the City of San José adjourned at 3:00 p.m. in memory of Gina Farnquist, former City employee with the Parks, Recreation and Neighborhood Services Department, and wife of former Director of Personnel, Bob Farnquist; and in memory of Rose Caglia, a long-time resident of Almaden Valley.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN

CITY CLERK