CSJ-Minutes Oct. 29, 2002, Council

MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, OCTOBER 29, 2002

The Council of the City of San José convened in regular session at a special time of 10:15 a.m. in City Council Chambers at City Hall.

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

Absent: Council Members - Campos (excused).

Upon motion unanimously adopted, Council recessed at 10:17 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) City of San José v. Piercy, 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 to conduct public employee performance evaluation pursuant to Government Code 54957; in the titles of: City Manager, City Attorney, City Clerk, City Auditor, and Independent Police Auditor.

By unanimous consent, Council reconvened from the Closed Session and recessed at 11:55 a.m. and reconvened at 1:37 p.m. in the Council Chambers.

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

Absent: Council Members - Campos (excused).

Invocation

Dr. Ray Ellis, Senior Pastor, Willowvale Community Church, delivered the Invocation. (District 9)

Pledge of Allegiance

Mayor Gonzales led 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: Campos.

CEREMONIAL ITEMS

1.1 Presentation of a commendation to the San José Sabercats for a successful season. (Mayor)

Documents Filed: None.

Discussion/Action: Mayor Gonzales presented a commendation to the San José SaberCats for their successful season, culminating in winning the World Championship in the Arena Football League. The commendation was presented to Ramune Ambrozaitis and David Frey, Managers of the General Partner, Head Coach Darren Arbet, General Manager and Offensive Coordinator Terry Malley, Offensive/Defensive Line Coach Bill Tripp, Defensive Coordinator Michael Church, Defensive Assistant Carlton Connor, Assistant Coach Anthony Ross, Head Athletic Trainer Steve Bartlinski, Strength and Conditioning Coach Fred Stephens, and all of the San José SaberCats players. Ramune Ambrozaitis accepted on behalf of the team and thanked the Mayor and City Council for recognizing the team’s successful season.

CONSENT CALENDAR

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

2.1 Approval of City Council Minutes for:

(a) Regular meeting of April 23, 2002

Documents Filed: Minutes of Regular City Council meeting of April 23, 2002.

Discussion/Action: Referring to page 12 of the April 23, 2002 City Council minutes, Council Member LeZotte stated that she had asked for information regarding the Prusch Park Master Plan, but did not believe she had received it. The minutes of April 23, 2002 were approved, and Staff was requested to provide information previously requested on the Prusch Park Master Plan, under Item 5.4. Vote: 10-0-1-0. Absent: Campos.

2.2 Final adoption of ordinances:

(a) ORD. NO. 26754 – Amends Section 13.28.140 of Chapter 13.28 of Title 13 of the San José Municipal Code to direct the Director of the Department of Transportation to increase the notifications given to surrounding areas upon the proposed removal of any street tree.

Documents Filed: Proof of publication of the title of Ordinance No. 26754, dated October 22, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26754 was adopted. Vote: 10-0-1-0. Absent: Campos.

(b) ORD. NO. 26759 – Rezones certain real property situated on the northeastern corner of Lick Avenue and Floyd Street. PDC 02-051

Documents Filed: Proof of publication of the title of Ordinance No. 26759, dated October 22, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26759 was adopted. Vote: 10-0-1-0. Absent: Campos.

2.3 (a) Adoption of appropriation ordinance and funding sources resolution amendments in the Services for Redevelopment Capital Projects Fund (City-side Redevelopment Fund) for the Edenvale Infrastructure Improvement Project with a net impact to the fund of $995,120.

(b) Adoption of a resolution making certain determinations regarding the related expenditures of Redevelopment Agency funds on certain public improvements in connection with the Edenvale Infrastructure Improvement Project.

Council District 2. SNI: Edenvale. CEQA: Resolution No. 69699, PP 02-10-284. (City Manager’s Office)

Documents Filed: Memorandum from Budget Director Larry D. Lisenbee, dated October 7, 2002, recommending (1) adoption of said appropriation ordinance and funding sources resolution amendments in the Services for Redevelopment Capital Projects Fund and (2) adoption of said resolution making certain determinations regarding the related expenditures of Redevelopment Agency funds on certain public improvements in connection with the Edenvale Infrastructure Improvement Project

Discussion/Action: Ordinance No. 26766, entitled; “An Ordinance of the City of San Jose Amending Ordinance No. 26674 to Appropriate Moneys in the Services for Redevelop-ment Capital Projects Fund for the Edenvale Infrastructure Improvement Project; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, Resolution No. 71275, 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. 71276, 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: Campos.

2.4 Adoption of a resolution authorizing the City Manager to negotiate and execute a first amendment to the Concession Agreement with Project Horizon Inc., dba In Motion Pictures to provide rental and sale of portable digital disk (DVD) players, movies, and accessories at the Norman Y. Mineta San José International Airport, extending the term from October 21, 2002 through October 31, 2007, with a minimum annual revenue to the City of $17,000. CEQA: Resolution No. 67380, PP 02-09-267. (Airport)

Documents Filed: Memorandum from Aviation Director Ralph G. Tonseth, dated October 7, 2002, recommending adoption of said resolution authorizing the City Manager to negotiate and execute a first amendment to the Concession Agreement with Project Horizon Inc., dba In Motion Pictures

Discussion/Action: Council Member LeZotte asked what type of security there would be for the items being rented and the vendor. Director of Aviation Ralph Tonseth explained that the concession would be located on the secure side of the terminal, and all items and personnel would go through screening. Resolution No. 71277, 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 Concession Agreement With Project Horizon, Inc. DBA In Motion Pictures at the Norman Y. Mineta San Jose International Airport, Extending the Term to October 31, 2007 With a Minimum Annual Revenue to the City in the Amount of $17,000”, was adopted. Vote 10-0-1-0. Absent: Campos.

2.5 Approval of City Manager Del D. Borgsdorf’s travel to Charlotte, North Carolina, from November 15 – 17, 2002, to participate in the International City/County Management Association (ICMA) 2003 Conference Planning Committee Meeting, to discuss logistics. CEQA: Not a Project. (City Manager's Office)

Documents Filed: Memorandum from City Manager Del D. Borgsdorf, dated October 17, 2002, requesting approval to travel to Charlotte, North Carolina.

Discussion/Action: The travel request for City Manager Del D. Borgsdorf was approved.

2.6 Adoption of a resolution authorizing the City Manager to execute a project approval form pursuant to the FY 2002-03 Master Agreement between the City of San José and the San José Conservation Corps to Carry Out Community Improvement Activities (Master Agreement) in an amount not to exceed $115,000, for the period October 28, 2002 to June 30, 2003, for the stenciling of approximately 10,000 public right-of-way storm drain inlets. CEQA: Exempt, PP02-10-282. (Environmental Services)

Documents Filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated October 7, 2002, recommending adoption of said resolution authorizing the City Manager to execute a project approval form pursuant to the FY 2002-03 Master Agreement between the City of San José and the San José Conservation Corps to Carry Out Community Improvement Activities.

Discussion/Action: Resolution No. 71278, entitled; “A Resolution of the Council of the City of San Jose Authorizing the City Manager to Execute a Project Approval Form Pursuant to the FY 2002-03 Master Agreement Between the City of San Jose and the San Jose Conservation Corps in an Amount Not to Exceed $115,000 for the Period of
October 28, 2002 to June 30, 2003, for the Stenciling of Approximately 10,000 Public Right-of-Way Storm Drain Inlets”, was adopted. Vote 10-0-1-0. Absent Campos.

2.7 Acceptance of the Third Quarter 2002 San José Arena Authority Ticket Distribution Program Report. CEQA: Not a Project. (San José Arena Authority)

Documents Filed: Memorandum from San José Arena Authority Executive Director Chris Morrisey, dated October 9, 2002, transmitting said report and recommending acceptance of said report.

Discussion/Action: Council Member Cortese stated that the name “Compaq Center” needs to be changed on the Grant Forms. The Third Quarter 2002 San José Arena Authority Ticket Distribution Program Report was approved, and Staff directed to facilitate changing the name of the Arena from Compaq Center to the HP Pavillion on the Grant Forms which are currently used. Vote 10-0-1-0. Absent: Campos.

2.8 (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 and 10/22/02 – Item 2.13)

Documents Filed: None.

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

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – October 16, 2002

Vice Mayor Shirakawa, Jr., Chair

Documents Filed: Rules Committee Report of October 16, 2002.

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

(b) City Council

(1) Review October 29, 2002 Draft Agenda

The Committee recommended approval of the October 22, 2002 Council agenda with one addition and one change.

(2) Add New Items to October 22, 2002 Amended Agenda

The Committee recommended three additions to the October 22, 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

(1) Request to cancel evening Council session. Attachment: Memorandum from Nadine Nader, Senior Executive Analyst, dated October 10, 2002, recommending cancellation of an evening Council meeting.

The Committee recommended cancellation of the November 5, 2002 evening Council session due to elections held on that day.

(e) The Public Record. Attachment: Memorandum from City Clerk Patricia L. O’Hearn, dated October 17, 2002, listing the items transmitted to the Administration for the period September 25-October 8, 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 - There were none.

(h) Administrative Reviews and Approval

(1) Request from Council Member Yeager to use Council General funds to attend a San Jose Chamber of Commerce City-to-City Visit to Phoenix, AZ, October 17-19, 2002. Attachment: Memorandum from Council Member Yeager dated October 4, 2002, requesting use of Council General funds for travel; and memorandum (revised) from City Clerk Patricia L. O’Hearn dated October 10, 2002 summarizing the use of Council General Travel Budget to date.

The Committee approved Council Member Yeager’s request to use Council General funds to attend a San José Chamber of Commerce City-to-City visit to Phoenix, Arizona, October 17-19, 2002.

(2) Request from Council Member Pat Dando to use Council General funds to attend, as an invited guest speaker, the National Association for Civilian Oversight of Law Enforcement 8th Annual Conference in Cambridge, MA, from October 31-November 3, 2002. Attachment: Memorandum from Council Member Pat Dando dated October 8, 2002 requesting use of Council General funds for travel; and memorandum (revised) from City Clerk Patricia L. O’Hearn dated October 10, 2002 summarizing the use of Council General Travel Budget to date.

The Committee approved Council Member Dando’s request to use Council General funds to attend, as an invited guest speaker, the National Association for Civilian Oversight of Law Enforcement 8^th Annual Conference in Cambridge, Massachusetts, from October 31-November 3, 2002.

(i) Oral communications - None presented.

(j) Adjournment - The meeting adjourned at 2:10 p.m.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the Rules Committee report and actions of October 16, 2002, were accepted. Vote: 10-0-1-0. Absent: Campos.

3.4 (a) Appoint an ad hoc Council Committee of two or three Council Members to be tasked with meeting with a similar committee from the Santa Clara Valley Water District.

(b) Direct Administration to seek scheduling a joint meeting with a committee of Board Members from the Santa Clara Valley Water District during the month of October to discuss all policy issues relating to trails that have not been resolved by the two staffs, and come up with joint recommendations for action for the Council and the Board.

[Rules Committee referral 10/9/02 – Item 3.2(h)(1)]

(Deferred from 10/15/02 – Item 3.6)

Documents Filed: None.

Discussion/Action: Director of Parks, Recreation and Neighborhood Services Sara Hensley provided a brief update of the trail projects partnership with the Santa Clara Valley Water District, and indicated that there is agreement on all but three items – equitable contribution; standard agreement provisions; and grandfathering of those projects that are currently underway. She reported that Staff is scheduled to come back to Council on November 19, 2002, with a full agreement. Council Member Reed asked if indemnification includes liability issues. Director Hensley responded that the City and Water District have conceptually agreed on indemnification issues. Upon motion by Council Member Reed, seconded by Council Member Chavez and unanimously carried, Items 3.4 and 3.5 were deferred to November 19, 2002.

3.5 Appointment of members to the Joint Council/Water District Ad Hoc Subcommittee on Trails. (Mayor)

(Deferred from 10/15/02 – Item 3.7)

Documents Filed: None.

Discussion/Action: Upon motion by Council Member Reed, seconded by Council Member Chavez and unanimously carried, Item 3.5 was deferred to November 19, 2002.

3.6 Interview and appoint Civil Service Commissioner to an unexpired term ending December 1, 2003 and a subsequent term ending December 1, 2006. (City Clerk)

Documents Filed: (1) Memorandum from City Patricia O’Hearn, dated October 21, 2002, providing the names of the applicants to be interviewed for Civil Service Commission positions to fill an unexpired term ending December 1, 2003 and a subsequent term ending December 1, 2006. (2) Memorandum from City Attorney Richard Doyle, dated October 16, 2002, highlighting major areas of known potential conflicts that are disclosed by the applicant.

Discussion/Action: Civil Service Commissioner candidates Linda Johnson, James Crownover and David Busse made presentations to the Council, followed by questions from Council Members. On the first ballot, Council appointed David Busse to serve an unexpired term ending December 1, 2003 and a subsequent term ending December 1, 2006 as Civil Service Commissioner.

3.7 Adoption of a resolution authorizing the Director of General Services to negotiate and execute an agreement with Boise Cascade for citywide purchase of office products and supplies in an amount not to exceed $1,500,000, for the period of November 1, 2002 thru October 31, 2003. CEQA: Not a Project. (General Services)

(Rules Committee referral 10/23/02)

Documents Filed: Memorandum from Director of General Services, Jose Obregon, dated October 23, 2002, recommending adoption of said resolution authorizing the Director of General Services to negotiate and execute an agreement with Boise Cascade.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, Resolution No. 71279, entitled; “A Reso-lution of the Council of the City of San Jose Authorizing the Director of General Services to Negotiate and Execute an Agreement With Boise Cascade for Citywide Purchase of Office Products and Supplies”, was adopted. Vote 10-0-1-0. Absent: Campos.

3.8 Direct the City Manager and City Attorney to work with the Mayor to develop a State and Federal Legislative and Intergovernmental Relations Plan for discussion/action. (Cortese)

(Rules Committee referral 10/22/02)

Documents Filed: Memorandum from Council Members Cortese and Dando, dated October 24, 2002, recommending Council give direction to the City Manager and City Attorney to work with the Mayor to develop a State and Federal Legislative and Intergovernmental Relations Plan that is more proactive and provides better services by February of 2003.

Discussion/Action: Mayor Gonzales thanked Council Members Cortese and Dando for their leadership and participation with various governmental organizations in developing these recommendations. Council Member Cortese stated there was a long collaborative process, with input from the City Manager and the Mayor and their staff in compiling this attempt at recalibrating the City’s approach to advocacy in intergovernmental relations. Council Member Cortese moved approval of his memorandum dated October 24, 2002. Council Member Dando seconded the motion.

Council Member Dando stated the most important aspects of the recommendation are for Council Members to be more proactive in development legislation important to the community, and to set up a better defined and coordinated grant process to be ready to take advantage of more local, state and national grants. Council Member Chavez inquired about a timeline for having a revised process in place, and Assistant City Manager Linder stated Staff will begin work immediately and expects to meet the February 2002 deadline requested for report to Council. Commenting on the memorandum from Council Members Cortese and Dando, Council Member LeZotte stated the reference to moving San José forward in areas of transportation, housing and education, should include environmental issues, for which San José is a leader. On a call for the question, the motion carried unanimously, and the memorandum from Council Members Cortese and Dando dated October 24, 2002, recommending Council direct the City Manager and City Attorney to work with the Mayor to develop a State and Federal Legislative and Intergovernmental Relations Plan by February 2003, was approved. Vote: 10-0-1-0. Absent: Campos.

3.9 Approval of an ordinance amending Chapter 17.23 of Title 17 of the San José Municipal Code (the Rent Control Ordinance) to regulate evictions from units covered by the limitations on rent increases in Chapter 17.23 by requiring landlords to:

(a) Offer tenants the right to enter into arbitration if landlords give tenants notices of eviction of less than 90 days in slow real estate markets and 120 days in tight real estate markets;

(b) Grant the Director of Housing the right to determine tight real estate markets, subject to certain criteria;

(c) Create the required arbitration procedure for those evictions in which a landlord gives a tenant a notice of less than 90 or 120 days to set a termination date of the lease of between 60 and 120 days;

(d) Create a mediation service that could be accessed by either landlords or tenants that would require the other party to attend a mediation in the event of a notice of eviction for certain rental units not covered by the Rent Control Ordinance.

(Cortese)

(Rules Committee referral 10/22/02)

Documents Filed: Memorandum from Mayor Gonzales and Council Member Cortese, dated October 28, 2002, recommending Council (1) Approve the Rental Tenancy Protection Ordinance as described in this memorandum; (2) Direct the Administration to adjust the fees charged to landlords under the Rent Control ordinance in order to recover the City’s costs for the additional services that will be required as a result of the proposed amendments to the ordinance; and (3) Direct the Administration to adjust the fees charged to landlords (outside of rent control) by $0.50 per unit per year in order to recover the City’s costs for the additional services associated with the proposed non-binding mediation program; this fee adjustment should be monitored annually to ensure that the fee charged is not more than what is needed to cover the program.

Discussion/Action: Mayor Gonzales stated he believes rental issues have a real personal urgency for families of San Jose who have been, in the past, affected by high rents, unsafe and unhealthy living conditions, and threat of eviction. He commented that this is a victory for tenants and property owners who are trying to provide a safe living environment for tenants. Referring to page 2 of the memorandum regarding the elements of the proposal, Council Member Chavez asked Staff to expand on Item 3, pertaining to the proposed fee to landlords. Vic Pappalardo, Deputy City Attorney, explained that under arbitration, if a landlord wants to remove a tenant in the minimum time prescribed by State law, the landlord would be able to go into the arbitration process by serving the minimum notice along with an offer of arbitration to the tenant. Deputy City Attorney Pappalardo added that the arbitrator has the right to determine if the tenant is a particularly bad tenant or there is no serious hardship, the tenant can be removed in the minimum amount of time prescribed by law; however, the arbitrator can conversely decide that there is hardship to the tenant and the amount of time can be increased from 60 to 120 days. Council Member Chavez asked if testimony or statements are public documents. City Attorney Richard Doyle responded that he would assume these would be public record; however, the City could take the position of confidentiality for at least the names and addresses of those who have filed a complaint. Council Member Chavez asked what the timeframe is to determine if the program is meeting the needs of the group for which it was designed, and if Economic Development & Environment Committee (EDE) is playing a role. Council Member Cortese explained that it would be perceived to be working unless stakeholders in the process come forward; it is an opportunity for them to monitor the process. Director of Housing Leslye Corsiglia stated that Staff prepares quarterly reports to the Council through the EDE Committee, and this information will be included in the report. Council Member Chavez stated that she wants to make sure there is a balance between the needs of affordable housing and protecting the needs of tenants, along with creating vibrant, healthy neighborhoods, stated that it is critical how people are treated in rent control environments. Council Member Dando stated that she believes it is important for the Council to be proactive, and requested that Staff explain how they came up with the fee structure; and that when programs are funded, she believes that they should be funded on the backs of bad tenants or landlords. Director Corsiglia responded that the $.50 per unit fee was determined by a working group and Staff does not know yet what the program will cost.

City Attorney Doyle stated that the program should be funded by participants in the program. Council Member Dando asked when Staff expects to determine the cost of the program. Director Corsiglia responded that Staff would do an initial projection, but will have to see how many people request the service to be able to determine the actual cost. She added that Staff would report back to Council for those under rent control. Council Member Williams stated that he believed there was a fear factor in the past because of people not knowing the process, and asked if this would be accommodated through an educational element. Director Corsiglia responded that Staff provides educational information on a regular basis to tenants and landlords. City Attorney Doyle added that tenants would be notified of their rights as part of the ordinance. The following individuals spoke on the item: Paul Stewart, Santa Clara County Association of Realtors, Kathy Thibodeaux, Tri-County Apartment Association, John Doherty, Susan Price-Jang, PACT, Katherine Bock, Low-Income Self-Help Center, Bob Brownstein, Amy Dean, South Bay AFL-CIO, William Garbett, and Mark Lazzarini, Task Force.

Council Member Cortese stated that the ordinance is “hardship based,” and is intended to give tenants a more reasonable time to vacate; and added that the first year of tenancy is not covered under the ordinance, although there are voluntary mediation services available to landlords and tenants who choose to mediate differences during that first year. He explained that the ordinance allows landlords to try to evict bad tenants without cause in a legally minimal time of 60 days, and the three-day notice will always be available to a landlord. He indicated that the first part of the arbitration for rent-control units is mediation between landlord and tenant, so there may not be a need for a ruling; for non-rent control units, the City will not require the two parties to go to mediation, but if one party chooses to mediate, the other party needs to attend. He explained that every no-cause notice that goes out will say either that there is an offer to arbitrate, if it is a rent-control unit, or that there is mediation available to the tenant if they respond in a statutory amount of time established in the ordinance. Upon motion by Council Member Cortese, seconded by Council Member Chavez, and unanimously carried, Ordinance No. 26767, entitled; “An Ordinance of the City of San Jose Amending Chapter 17.23 of Title 17 of the San Jose Municipal Code to: (1) Add New Sections, 17.23.125, 17.23.126, 17.23.155 and 17.23.161 Adding New Defined Terms; (2) Renumber Section 17.23.031 of the Ordinance to Section 17.23.600 and to Make Minor Changes to Assure Consistency of Terms in that Section; (3) Add Part 6 to the Chapter Which Will Regulate Evictions From Units Covered by the Limitations on Rent Increases in this Chapter by Requiring Landlords to Offer Arbitration of the Date of Lease Termination to Tenants After Giving Such Tenants Certain Notices of Less Than Ninety or One Hundred Twenty Days, When Such Notices Would Not Otherwise be Subject to Notices to Vacate of Three Days or Less Under State Law; (4) Create a Required Arbitration Procedure for Those Evictions in Which a Landlord Gives a Tenant a Notice of Less Than Ninety or One Hundred Twenty Days, Which Procedure Will Allow an Arbitrator to Set a Termination Date of the Lease of Between Sixty and One Hundred Twenty Days Based on an Evaluation of the Hardships to Landlord and Tenant; and (5) Create a Required Mediation for Certain Rental Units First Built After the Effective Date of This Chapter”, was passed for publication, and Staff directed to: (1) Adjust the fees charged to landlords under the Rent Control Ordinance in order to recover the City’s costs for the additional services that will be required as a result of the proposed amendments to the ordinance, and (2) Adjust the fees charged to landlords (outside of rent control) by $0.50 per unit per year in order to recover the City’s costs for the additional services associated with the proposed non-binding mediation program; said adjustment should be monitored annually to ensure that the fee charged is not more than what is needed to cover the program, as described in memorandum dated October 28, 2002, by Mayor Gonzales and Council Member Cortese; and (3) Staff additionally directed to review and report back on the issue of penalizing problem landlords to fund the bulk of the program costs, and on the issue of conducting outreach to inform landlords of rental units built after 1979 of the provisions of the ordinance which apply to units not covered by the rent increase limitations. Vote 10-0-1-0. Absent: Campos.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.2 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the northeast corner of North First Street and East Gish Road, from CN Commercial Neighborhood Zoning District to PD Planned Development Zoning District, to allow a mixed use development of 3,230 square feet of ground floor commercial use and 22 multi-family attached residential units on 0.5 gross acre. (The Southland Corporation, Owner; BEC, Inc., Developer). CEQA: Negative Declaration. Director of Planning, Building, and Code Enforcement and Planning Commission recommend approval (7-0-0).

PDC 02-014 - District 3

(Continued from 6/18/02 – Item 11.13 et al., and 10/15/02 – Item 11.1)

Documents Filed: None.

Discussion/Action: This item was continued to the Evening of November 19, 2002.

4.3 Adoption of the following appropriation ordinance amendments in the Low- and Moderate-Income Housing Fund:

(a) Establish a Transfer to General Fund for Surplus Property Purchase appropriation by $13,259,000.

(b) Decrease the Loan, Grants and Acquisitions appropriation by $13,259,000.

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

Documents Filed: Memorandum from Director of General Services Jose Obregon and Director of Housing Leslye Corsiglia, dated October 7, 2002, recommending adoption of said appropriation ordinance amendments in the Low- and Moderate-Income Housing Fund.

Discussion/Action: William Garbett spoke on the item. Upon motion by Council Member Chavez, seconded by Council Member Dando, and unanimously carried, Ordinance No. 26768, entitled; “An Ordinance of the City of San Jose Amending Ordinance No. 26674 to Appropriate Moneys in the Low and Moderate Income Housing Fund; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, was adopted. Vote 9-0-2-0. Absent: Campos, Shirakawa, Jr.

4.4 PUBLIC HEARING and adoption of a resolution on the designation of The 5 Spot, located at 869 South First Street, as a landmark of special historic, architectural, cultural, aesthetic, or engineering interest or value of a historic nature. (David G. Silva, Owner). CEQA: Exempt. Director of Planning, Building and Code Enforcement and Historic Landmarks Commission recommend approval (5-0-1). (Planning, Building, and Code Enforcement)

HL 02-121 – District 3

Documents Filed: (1) Memorandum from Historic Landmarks Commission Secretary Stephen M. Haase, dated October 7, 2002, transmitting the Historic Landmarks Commission’s recommendation for adoption of a resolution designating the structure located at 869 South First Street as Historic Landmark No. HL02-121. (2) Proof of publication of Notice of Public Hearing, dated September 17, 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 Chavez, seconded by Council Member Dando, and unanimously carried, Resolution No. 71280, entitled; “A Resolution of the Council of the City of San Jose Designating, Pursuant to the Provisions of Chapter 13.48 of Title 13 of the San Jose Municipal Code, the 5 Spot, Located at 869 South First Street, as a Landmark of Special Historical, Architectural, Cultural, Aesthetic or Engineering Interest or Value of a Historic Nature”, was adopted. Vote 9-0-2-0. Absent: Campos, Shirakawa, Jr.

4.5 (a) Adoption of a resolution determining that public use and necessity require the acquisition of property located at 635 North King Road, owned by Justus Limited Partnership, Glenmorangie Limited Partnership, et al, and directing the City Attorney to file an eminent domain action to acquire this interest. CEQA: ND, PP02-03-040. Council District 3. SNI: Five Wounds/Brookwood Terrace. (Public Works)

(b) Report on bids and award of contract for the King Road Widening Phase I Project to the low bidder, Granite Rock Company dba Pavex Construction Division, in the amount of $1,567,704, and approval of a contingency in the amount of $100,000. CEQA: ND, PP02-03-040. Council District 3. SNI: Five Wounds/Brookwood Terrace. (Public Works)

Documents Filed: (1) Memorandum from Director of Public Works Katy Allen, dated October 7, 2002, recommending adoption of said resolution determining that public use and necessity require the acquisition of property located at 635 North King Road, owned by Justus Limited Partnership, Glenmorangie Limited Partnership, et al, and directing the City Attorney to file an eminent domain action to acquire this interest. (2) Memorandum from Director of Public Works Katy Allen, dated October 7, 2002, recommending award of said contract, with related contingency, to the low bidder, Granite Rock Company dba Pavex Construction Division.

Discussion/Action: Council Member Reed asked if this item would have an impact on Phase II. Katy Allen, Director of Public Works, responded that this is an independent project. Council Member Williams questioned the reason for Eminent Domain and asked for clarification as to who owns the property. Director Allen explained that Eminent Domain is necessary because the assessed valuation is about half of what the owner of the parcel wanted, and that Staff has made every effort to negotiate with the property owner. Upon motion by Council Member Chavez, seconded by Council Member Williams, and unanimously carried, Resolution No. 71281, entitled; “A Resolution of the Council of the City of San Jose Making Certain Findings and Determinations Relating to the Exercise of Power of Eminent Domain Pursuant to Article 2, Chapter 4, Title 7 of Part 3 of the California Code of Civil Procedure for the Following Project: King Road Widening Project; Phase I; Authorizing and Empowering the City Attorney to Bring an Action in Eminent Domain to Acquire Certain Property for Said Project and to Apply for an Order of Possession Before Judgment and to Prosecute Said Action to Final Judgment; and Authorizing and Empowering the Deposit of Money in the State Treasury Condemnation Fund for Possession of Said Property From the Funds Lawfully Available Therefore”, was adopted, and the award of said contract, with related contingency, to Granite Rock Company dba Pavex Construction Division, the low bidder, was approved and its execution authorized. Vote 9-0-2-0. Absent: Campos, Shirakawa, Jr.

RECREATION & CULTURAL SERVICES

5.2 Approval of a funding agreement in which the City grants $500,000 to the Alum Rock Union School District as a contribution towards the District’s project to renovate the athletic field at Pala Middle School. Council District 5. CEQA: Exempt PP02-09-268. (Parks, Recreation and Neighborhood Services)

Documents Filed: Memorandum from Parks, Recreation and Neighborhood Services Director Sara L. Hensley, dated October 7, 2002, recommending approval of said funding agreement with the Alum Rock Union School District.

Discussion/Action: Upon motion by Council Member Chavez, seconded by Council Member Dando, and unanimously carried, the funding agreement with the Alum Rock Union School District was approved and its execution authorized. Vote 9-0-2-0. Absent: Campos, Shirakawa, Jr.

5.3 Approval of a master agreement with The Planning Collaborative, Inc. for design consultant services for the Guadalupe River Trail Bond Project - Willow Street to Highway 280 from the date of execution through January 31, 2006, in an amount not to exceed $249,500. CEQA: Not a project. SNI: Washington, Gardener. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated October 7, 2002, recommending approval of said master agreement with the Planning Collaborative, Inc.

Discussion/Action: Council Member Yeager asked what timeline is involved in the scope of work. Director Allen responded that master-planning efforts would extend to approximately Spring 2004 and will include community meetings. Council Member Yeager asked how this project would be coordinated with the rest of the trail. Director Allen responded that Staff opted to work on this piece of trail and look at master planning efforts to the south, and coordinate the rest of the trail later on. Council Member Yeager asked if Staff is looking at an interim trail in the Pepitone Road area. Director Allen indicated that Staff would get back to the Council on that. Council Member Dando commented that there are several consultants working on the trail project, and asked if there had been any though to having one consultant work on the master agreement. Director Hensley responded that this is something that needs to be reviewed. Upon motion by Council Member Chavez; seconded by Council Member Yeager; and unanimously carried, the master agreement with The Planning Collaborative, Inc. was approved and its execution authorized, and Staff was directed to review feasibility of coordinating the work on various segments of the Guadalupe River Trail. Vote 9-0-2-0. Absent: Campos, Shirakawa, Jr.

TRANSPORTATION SERVICES

6.1 Adoption of a resolution establishing speed limits in the City of San José, including reestablishing the speed limit on Eden Avenue, from Moorpark Avenue to Payne Avenue, from 30 mph to 25 mph. CEQA: Exempt, PP02-10-286. Council District 1. (Transportation)

Documents Filed: Memorandum from Acting Director of Transportation James R. Helmer, dated October 7, 2002, recommending adoption of said resolution establishing speed limits in the City of San José.

Discussion/Action: Upon motion by Council Member LeZotte, seconded by Council Member Williams, and unanimously carried, Resolution No. 71282, entitled; “A Reso-lution of the Council of the City of San Jose Reestablishing Speed Limits on a Section of Eden Avenue, and Reestablishing Without Change, Speed Limits on Other Streets Within the City of San Jose, and Repealing Resolution No. 71259”, was adopted. Vote 9-0-2-0. Absent: Campos, Shirakawa, Jr.

6.2 (a) Adoption of a resolution amending the Master Parking Rate Resolution to authorize, as part of the Downtown Retail Parking Validation program, the distribution of validation books for current participating retail establish-ments at no cost for a 6-month introductory period to commence in November 2002 and end in April 2003, and an ongoing program that allows new eligible retailers in the Downtown to receive validation books at no cost for up to 6 months from their start date of operation.

(b) Adoption of a resolution authorizing the City Manager to negotiate and execute an amendment to the Marketing Agreement with the San José Downtown Association in the amount of $100,000, for a total contract amount not to exceed $200,000 to promote the usage of the expanded Downtown Retail/Restaurant Parking Validation Program and the free evening/weekend parking program.

CEQA: Not a project. Council District 3. (Transportation)

(Rules Committee referral 10/23/02)

Documents Filed: Memorandum from Acting Director of Transportation James R. Helmer, dated October 22, 2002, recommending (1) approval of a modification to the Parking Rate Resolution to provide validation books at no cost to retailers and restaurants to distribute to customer during the holidays and lasting for an introductory period of six months to encourage long-term merchant participation in the Downtown Retail/Restau-rant Parking Validation program, (2) adoption of said resolution authorizing the City Manager to negotiate and execute an amendment to the Marketing Agreement with the San José Downtown Association.

Discussion/Action: Council Member Dando asked why new businesses coming into the program would have a grace period and not those who have been part of the process for a long time. Acting Director of Transportation James Helmer explained that the City is embarking on this pilot program to encourage as many of the existing retailers in the downtown to join the retail validation program, particularly the 60% who are not currently part of the program; and beyond the next six months, the intent is for new retailers who come downtown. Council Member Dando recommended that something should be provided to those few retailers who have stayed with the parking program up to now, and that Staff should look at a lunch-hour validation program.

Council Member Chavez asked that Staff examine what it would cost for all businesses within a particular zone to have an opportunity to access the validation program. Acting Director Helmer explained that there are 200 business downtown with approximately 40% participating in the program, and Staff is conducting outreach through an open house and other means to encourage the other 60% to join the program. Council Member Williams asked if Staff had analyzed the return on investment. Acting Director Helmer responded that it is difficult to project what the cost of the program will be in terms of foregone revenues to the parking program; however, the goal of the program is to get 75%-80% of the businesses to participate and they will determine the success of the program if they increase their business. He added that Staff would work closely with the Downtown Association to determine the success of the program. Mayor Gonzales stated that he recognizes that this is lost revenue and wants to know at the end of the program if it was successful – if businesses profited and customers found parking spaces to do business.

Upon motion by Council Member Williams, seconded by Council Member Chavez, and unanimously carried, Resolution No. 71283, entitled; “A Resolution of the Council of the City of San Jose Adopting a Master Parking Rate Schedule for Municipal On and Off Street Parking Facilities and for the Downtown Validation Programs, and Repealing Resolution No. 71068, Effective October 29, 2002”, and Resolution No. 71284, 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 Existing Agreement Between the City of San Jose and the San Jose Downtown Association for Marketing Services Related to the Downtown Public Parking Program”, were adopted, and Council directed Staff to (1) Review and report back on the feasibility of structuring a lunch-hour parking validation program, and (2) Institute data collection to substantiate the program’s effectiveness in enhancing revenues for downtown businesses. Vote 9-0-2-0. Absent: Campos, Shirakawa, Jr.

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 and 10/22/02 – Item 8.1)

Documents Filed: None.

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

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
9415	Silence Drive & Pleasant Knoll Drive	8	Robinson Homes LLC	12 units	SFDR	Approve
9438	E/s Fleming Ave. at Warner Drive	5	Braddock & Logan Group II, L.P.	12 lots	SFDR	Approve

Open Forum

Ross Signorino spoke on the importance of voting as a civic responsibility.

Adjournment

The Council of the City of San José adjourned at 3:55 p.m. in memory of Hilario “Lalo” Caballero, pioneer in Spanish radio in the South Bay.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN

CITY CLERK