MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, NOVEMBER 12, 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 (c) to discuss anticipated litigation pursuant in one matter involving the initiation of litigation.

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

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

Absent: Council Members - LeZotte (excused).

Invocation (District 10)

The Allen School Chorus, comprised of 4^th and 5^th graders, presented a Holiday Medley consisting of Jingle Bell Rock and a song entitled Now, under the direction of Director Dawn Mauer.

Pledge of Allegiance

Mayor Gonzales led the Pledge Of Allegiance.

Orders of the Day

Upon motion by Council Member Dando, seconded by Council Member Chavez, and unanimously carried, the Orders of the Day and the Amended Agenda were approved. Vote: 9-0-2-0. Absent: LeZotte, Shirakawa, Jr.

CEREMONIAL ITEMS

1.1 Proclamation declaring the week of November 17-23, 2002, as National Hunger and Homelessness Awareness Week. (Mayor)

Documents Filed: None.

Discussion/Action: Council received testimony from Regina Salazar, Scott Wagers, Adrienne Lawton, and Wendy Wunsch, all representing C.H.A.M. Mayor Gonzales stated next week’s agenda will carry recommendations for grants from the Mayor’s Homeless Families and Children’s Initiative Fund totaling $300,000. Mayor Gonzales presented a proclamation declaring the week of November 17-23, 2002 as National Hunger and Homelessness Awareness Week to the Director of Housing Leslye Corsiglia, who thanked the City’s partners and service providers, the advocates who work with the City, and City Staff for their commitment to the needs of homeless families.

1.2 Presentation of a commendation to the members of the Revolving Loan Fund Administration Board for their service and commitment to the economic vitality of the City of San José. (Cortese)

(Rules Committee referral 11/6/02)

Documents Filed: None.

Discussion/Action: Council Member Cortese joined Mayor Gonzales at the podium and was joined by Economic Development Director Paul Krutko for the presentation of a commendation to members of the Revolving Loan Fund Administration Board: Joe Wilson, Steve Grork, David Herrera, Jr., Balbir Dhillon, and retired Board Member Allan (Bob) Saxe, in recognition of their commitment to community service and to residents of the City of San José.

1.3 Presentation of a commendation to Allan (Bob) Saxe for his years of service and dedication to the City of San José and the County of Santa Clara. (Cortese)

(Rules Committee referral 11/6/02)

Documents Filed: None.

Discussion/Action: Mayor Gonzales was joined by Council Member Cortese for presentation of a commendation to Allan (Bob) Saxe for his years of service to the City of San José and the County of Santa Clara, serving on numerous boards and commissions and acknowledged his tremendous contribution to the community.

1.4 Presentation of gifts to the City of San José by Council Member Nora Campos on behalf of the delegates and representatives she met during her Sister Cities visit to Okayama and Tainan. (Campos)

(Rules Committee referral 11/6/02)

Documents Filed: None.

Discussion/Action: Joining Mayor Gonzales at the podium, Council Member Campos invited to the podium representatives of San José’s Sister Cities of Okayama, Japan and Tainan, Taiwan, which she visited. Delegation members included May Wong Novak, Vice President, San José-Okayama Sister City Committee, Peter Hu, Vice-President, San José Tainan Sister City Committee, Maurice Hsueh, San José-Tainan Sister City Committee, Sui Hwu, San José - Tainan Sister City Committee, Rudy Navarro, City of San José employee, and Rosa Campos, retired teacher. May Novak presented gifts from the City of Okayama and Peter Hu presented gifts from the City of Tainan; Mayor Gonzales accepted the gifts on behalf of the City of San José.

1.5 Presentation of awards for the Library’s 2002 Teen Read Week Art Contest. (Library) - (Rules Committee referral 11/6/02)

Documents Filed: None.

Discussion/Action: Mayor Gonzales was joined by City Librarian Jane Light for presentation of awards to the following winners in the Library’s 2002 Teen Read Week Art Contest: From the Middle School Division – First Place: Hien Khanh Huynh, 7^th grade, District 6; Second Place: Rebecca Spitzer, 8^th grade, District 9; Third Place: Phil Opamuratawongse, 6^th grade, District 1; and Honorable Mention: Luis Flores, 8^th grade, District 4. From the High School Division – First Place: Nancy Thai, 11^th grade, District 8; Second Place: Nick Lee, 11^th grade, District 10; Third Place: Lan Jun Wang, 12^th grade, Sunnyvale; Honorable Mentions: Christine Spitzer, 10^th grade, District 9 and Michael A. Amato, 12^th grade, District 6. Librarian Light commended the honorees for their creativity in presenting original art illustrating their favorite book and being selected out of 160 entries for awards.

CONSENT CALENDAR

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

2.1 Approval of City Council Minutes for:

(a) Regular meeting of May 7, 2002

(b) General Plan Hearing of May 7, 2002

(c) Joint City Council/Redevelopment Agency Board meeting of May 7, 2002

Documents Filed: Minutes of Regular City Council meeting of May 7, 2002, General Plan Hearing minutes of May 7, 2002, and Joint City Council/Redevelopment Agency Board meeting of May 7, 2002.

Discussion/Action: The minutes were approved. Vote: 10-0-1-0. Absent: LeZotte.

2.2 Final adoption of ordinances:

(a) ORD. NO. 26767 - Amends Chapter 17.23 of Title 17 of the San José 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) renumbers Section 17.23.031 of the ordinance to Section 17.23.600 and makes minor changes to assure consistency of terms in that Section; (3) adds 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) creates 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) creates a required mediation for certain rental units first built after the effective date of this Chapter.

Documents Filed: Proof of publication of the title of Ordinance No. 26767, executed on November 5, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26767 was adopted. Vote: 10-0-1-0. Absent: LeZotte.

2.3 Approval of an ordinance amending Section 4.24.015 of Chapter 4.24 of Title 4 of the San José Municipal Code to grant $100,000 settlement authority in workers’ compensation cases to the City Attorney. (City Attorney’s Office)

Documents Filed: Memorandum from City Attorney Richard Doyle, dated October 31, 2002, recommending approval of said ordinance amending Section 4.24.015 of Chapter 4.24 of Title 4 of the San José Municipal Code.

Discussion/Action: Ordinance No. 26770, entitled: “An Ordinance of the City of San José Amending Section 4.24.015 of Chapter 4.24 of Title 4 of the San Jose Municipal Code to Increase Settlement Authority of the City Attorney for Compromise and Release and Stipulated Awards in Workers’ Compensation Cases and to provide for Reports to the City Council on an Annual Basis”, was passed for publication. Vote: 10-0-1-0. Absent: LeZotte.

2.4 Adoption of appropriation ordinance and funding sources resolution amendments in the General Fund increasing the Library Grants appropriation for the Library Department by $265,070. CEQA: Not a Project. (City Manager’s Office)

Documents Filed: Memorandum from Budget Director Larry D. Lisenbee, dated October 23, 2002, recommending adoption of said Appropriation Ordinance and Funding Sources Resolution amendments in the General Fund.

Discussion/Action: Ordinance No. 26771, entitled: “An Ordinance of the City of San Jose Amending Ordinance No. 26674 to Appropriate Moneys in the General Fund for Library Grants; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, and Resolution No. 71289, entitled: “A Resolution of the City of San Jose Amending Resolution No. 71072 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2002-03 to Adjust Revenues in the General Fund”, were adopted. Vote
10-0-1-0. Absent: LeZotte.

2.5 Adoption of a resolution certifying that:

(a) The City of San José’s Revolving Loan Fund (RLF) Plan is consistent with, and supportive of the area’s current economic adjustment strategy, and

(b) The RLF is being operated in accordance with the policies and procedures contained in the RLF plan, and the loan portfolio meets the standards contained therein, except as noted in the report.

CEQA: Not a Project. (Economic Development)

Documents Filed: Memorandum from Economic Development Director Paul Krutko, dated October 23, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71290, entitled: “A Resolution of the Council of the City of San José Certifying that (1) The City’s Revolving Loan Fund is Consistent with and Supportive of the Area’s Current Economic Adjustment Strategy and (2) That the Revolving Loan Fund is Being Operated in Accordance with Certain Policies and Procedures Except as Noted in the Report” was adopted. Vote: 10-0-1-0. Absent: LeZotte.

2.6 Approval of a continuation to the Foreign Trade Zone Agreement with San José Distribution Services, extending the term to February 18, 2004, and amending the fee schedule. CEQA: Not a Project. (Economic Development)

Documents Filed: Memorandum from Economic Development Director Paul Krutko, dated October 23, 2002, recommending approval of a continuation agreement to said Foreign Trade Zone agreement with San José Distribution Services.

Discussion/Action: The continuation agreement to the Foreign Trade Zone Agreement with San José Distribution Services extending the term and amending the fee schedule was approved and its execution authorized. Vote: 10-0-1-0. Absent: LeZotte.

2.7 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2002-2003 12, 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 23, 2002, recommending approval of award of said open purchase orders.

Discussion/Action: The award of open purchase orders List 12 was approved and the Director of General Services was authorized to execute the purchase orders. Vote:
10-0-1-0. Absent: LeZotte.

2.8 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2002-2003 13, and authorization for the Director of General Services to execute the purchase orders. CEQA: Resolution No. 67380, PP02-09-254. (General Services)

Documents Filed: Memorandum from Director of General Services, Jose Obregon, dated October 23, 2002, recommending approval of award of said open purchase orders.

Discussion/Action: The award of open purchase orders List 13 was approved and the Director of General Services was authorized to execute the purchase orders. Vote:
10-0-1-0. Absent: LeZotte.

2.9 Approval of a Pacific Gas and Electric Service and Extension agreement for the Rincon Storm System Improvements Phase II Project, in the amount of $141,733.27. CEQA: Resolution No. 60197, PP00-10-149. Council District 4. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated October 23, 2002, recommending approval of said Pacific Gas and Electric Service and Extension agreement.

Discussion/Action: The Pacific Gas and Electric Service and Extension agreement for the Rincon Storm System Improvements Phase II Project was approved and its execution authorized. Vote: 10-0-1-0. Absent: LeZotte.

2.10 Approval of one proposed City Event, as provided in the San José Management Agreement, for use of the HP Pavilion on November 13, 2002, for San José Sports Hall of Fame Induction Ceremony and one proposed Community Event on November 18, 2002, for a Recognition Banquet. CEQA: Not a Project. (San José Arena Authority)

Documents Filed: Memorandum from San José Arena Authority Executive Director Chris Morrisey, dated November 5, 2002, recommending that one proposed City Event date and one proposed Community Event date, as provided in the Amended and Restated management Agreement, be approved for use at Compaq Center at San José.

Discussion/Action: The proposed City Event for November 13, 2002 and the proposed Community Event for November 18, 2002, were approved. Vote: 10-0-1-0. Absent: LeZotte.

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – October 30, 2002

Vice Mayor Shirakawa, Jr., Chair

Documents Filed: Rules Committee Report of October 30, 2002.

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

(b) City Council

(1) Review November 12, 2002 Draft Agenda

The Committee recommended approval of the November 12, 2002 Council agenda.

(2) Add New Items to November 5, 2002 Amended Agenda

The Committee recommended one addition to the November 5, 2002 agenda.

(c) City Council Committees

(1) Amendments to Council Committee Agendas

(a) Finance and Infrastructure Committee - None filed.

(b) Economic Development and Environment Committee

At the request of Member Forrest Williams, the Committee recommended an addition to the December 2, 2002 EDE Committee meeting entitled, “Report back on signs in residential areas.”

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

None filed.

(d) Meeting Schedules - There were none.

(e) The Public Record. Attachment: Memorandum from City Clerk Patricia L. O’Hearn dated October 24, 2002 listing the items transmitted to the Administration for the period October 16-22, 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) Report back on request to reconsider Item 8.1 from the October 8, 2002 Council agenda, “Approval of an agreement for airport parking facilities management”. Attachment: Memorandum from City Attorney Richard Doyle dated October 30, 2002 responding to the Rules Committee request to address issues raised by Five Star Parking concerning the referenced RFP.

The Committee accepted City Attorney Doyle’s memorandum, with direction to Staff as follows:

· Ensure that Ampco and City Staff understand the concerns expressed today by the Rules Committee.

· Obtain a written commitment from Ampco that they will honor the Collective Bargaining Agreement (CBA) that expired 9/30/02 until they complete their own negotiations and a new CBA is in place.

· Request that Ampco provide its retention policy for parking employees at the Airport.

(i) Oral communications

Peter Campbell, a resident of District 1, commented on expansion of The Hayes Mansion Conference Center.

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

Rules Committee report and actions of October 30, 2002, accepted.

Discussion/Action: Upon motion by Council Member Dando, seconded by Council Member Chavez, and unanimously carried, the Rules Committee report and actions of October 30, 2002, were accepted. Vote: 10-0-1-0. Absent: LeZotte.

3.4 Adoption of a resolution amending the Fiscal Policy E.1. in the Capital Improvement Program to the following: “The amount set aside for contingencies shall correspond with public agency or industry standards, or a percentage of the total contract amount as otherwise determined by the City Council.” (Public Works) (Deferred from 11/5/02 – Item 3.4)

Documents Filed: None.

Discussion/Action: This item was deferred to December 3, 2002.

3.5 Approval of Mayor Ron Gonzales’ travel to:

(a) Phoenix, Arizona, on October 17-18, 2002, for a City-to-City Leadership Visit.

(b) Colorado Springs, Colorado, on November 1-3, 2002, for BASOC – SF 2012 Delegation.

Funding: Mayor’s Office. CEQA: Not a Project. (Mayor)

(Rules Committee referral 11/6/02)

Documents Filed: None.

Discussion/Action: Upon motion by Council Member Chavez, seconded by Council Member Dando, and unanimously carried, the travel request for Mayor Gonzales’ travel to Phoenix, Arizona, and Colorado Springs, Colorado. was approved. Vote: 10-0-1-0. Absent: LeZotte.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.2 Adoption of a resolution:

(a) Approving conditional grants up to $3,200,000 of Supplemental Redevelopment Agency Extremely Low Income (ELI) funding to JSM Enterprises, or its designated partnership, to allow a reduction in rent for the Miranda Villa Apartments located at 2094 Forest Avenue, the Le Mirador Apartments located at 1191 Coleman Road, the Sienna Apartments located at 1496 Almaden Road, and the Verandas Apartments located at 1868 N. Capitol Avenue, and;

(b) Amending existing business terms for the repayment of the loans to allow the projects to maintain financial stability, and extension of the term of the affordability restrictions.

CEQA: Not a Project. Council Districts 4, 6, 7, and 10. (Housing)

Documents Filed: Memorandum from Housing Director Leslye Corsiglia, dated October 23, 2002, recommending adoption of said resolution (a) approving conditional grants to JSM Enterprises, and (b) amending existing business terms for the repayment of the loans; and extension of the term of the affordability restrictions.

Discussion/Action: Upon motion by Council Member Dando, seconded by Council Member Chavez, and unanimously carried, Resolution No. 71291, entitled: “A Resolu-tion of the Council of the City of San José (i) Approving Conditional Grants in a Total Amount of up to $3,200,000 to Allow Reduction in Rents for the Miranda Villa Apartments, Le Mirador Apartments and the Verandas Apartments, (ii) Approving Amendments to Business Terms of the Loans and Extension of the Term of Restrictions for Those Projects and (iii) Authorizing the Director of Housing to Negotiate and Execute all Necessary Documents on Behalf of the City”, was adopted. Vote: 10-0-1-0. Absent: LeZotte.

4.3 PUBLIC HEARING ON CONFORMING REZONING of the property located at the west side of Aiello Drive, approximately 350 feet northerly of Lewis Road, from IP Industrial Park Zoning District to LI Light Industrial Zoning District, to allow industrial uses on 0.49 gross acre. (Robert & Sharon Bothman, Owner). CEQA: General Plan 2020 Resolution No. 65459. Director of Planning, Building and Code Enforcement recommends approval. No Planning Commission action required

C 02-074 - District 7 (Continued from 11/5/02 – Item 11.8)

Documents Filed: (1) Report of the Staff of the Planning, Building & Code Enforcement Department on Project file No. C02-074 dated October 16, 2002, recommending approval of the subject Conforming Rezoning. (2) Proof of publication of public hearing notice, dated October 22, 2002, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing and there was no discussion from the floor. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Dando, and unanimously carried, the public hearing was closed, and Ordinance No. 26772, entitled: “An Ordinance of the City of San José Rezoning Certain Real Property Situated on the West Side of Aiello Drive Approximately 350 Feet Northerly of Lewis Road”, was passed for publication. Vote: 10-0-1-0. Absent: LeZotte.

4.4 (a) Approval to undertake the proceedings necessary to establish Community Facilities District No. 9 (Bailey/Highway 101) by taking the following actions:

(1) Adoption of a resolution of intention to establish Community Facilities District No. 9 (Bailey/Highway101), and setting a public hearing on December 17, 2002 at 1:30 p.m., regarding formation of the District.

(2) Adoption of a resolution:

(a) Of intention to incur bonded indebtedness for Community Facilities District No. 9 (Bailey/Highway 101); and

(b) To authorize the City Attorney to negotiate and execute an amendment to an agreement with Jones Hall in an amount not to exceed $135,000, for bond counsel and disclosure counsel services.

(3) Adoption of a resolution authorizing the City Manager to negotiate and execute any amendments to existing agreements regarding implementation of the Bailey Extension Project and any new agreements, as may be appropriate and necessary to implement the proposal set forth in the memorandum, provided that any such amendments and new agreements shall be consistent with such proposal.

CEQA: Resolution No. 68705. Council District 2. SNI: 13^th Street, Five Wounds/Tully/Senter. (City Manager’s Office)

(b) (1) Adoption of the following appropriation ordinance and funding sources resolution amendments in the Construction Excise Tax Fund:

(a) Decrease the Bailey Avenue Improvements Project by $44,966,000.

(b) Decrease the estimate for Earned Revenue by $44,966,000.

(2) Adoption of the following appropriation ordinance amendments in the Building and Structure Construction Tax Fund:

(a) Establish an appropriation to the Department of Transportation for the VTA: Bailey/101 Improvements Project in the amount of $4,050,000.

(b) Establish a Reserve for the VTA: Bailey/101 Improvements Project in the amount of $950,000.

(c) Decrease the Oakland Road: Route 101 to Hedding Project by $202,000.

(d) Decrease the Story Road: Senter to McLaughlin Project by $600,000.

(e) Decrease the Ending Fund Balance by $4,198,000.

CEQA: Resolution No. 68705. Council District 2. SNI: 13^th Street, Five Wounds/Tully/Senter. (City Manager’s Office)

(Rules Committee referral 11/6/02)

Documents Filed: (1) Memorandum from Senior Deputy City Manager Darrell Dearborn, dated November 7, 2002, recommending approval to undertake the proceedings necessary to establish Community Facilities District No. 9 by taking the following actions: [1] Adoption of said resolution of intention to establish Community Facilities District No. 9, and to set a public hearing regarding formation of the District; [2] Adoption of said resolution: (a) of intention to incur bonded indebtedness for Community Facilities District No. 9 and to (b) authorize the City Attorney to negotiate and execute an amendment to an agreement with Jones Hall for bond counsel and disclosure counsel services; and [3] Adoption of said resolution authorizing the City Manager to negotiate and execute any amendments to existing agreements regarding implementation of the Bailey Extension Project and any new agreements, as may be appropriate and necessary to implement the proposal set forth in the memorandum, provided that any such amendments and new agreements shall be consistent with such proposal. (2) Memorandum from Budget Director Larry D. Lisenbee, dated November 7, 2002, recommending [1] Adoption of said Appropriation Ordinance and Funding Sources Resolution amendments in the Construction Excise Tax Fund; and [2] Adoption of said Appropriation Ordinance amendments in the Building and Structure Construction Tax Fund.

Discussion/Action: Senior Deputy City Manager Darrell Dearborn explained that there is a requested change in the budget action – the Oakland Road project will not be delayed and the $220,000 identified for this project would come from the ending fund balance in the Capital Improvement Fund. Council Member Chavez asked what the implications are of the cooperation agreement between Valley Transportation Authority (VTA) and Coyote Valley Research Park (CVRP), what happens to the agreement, and what were the elements of the first agreement. Senior Deputy City Manager Dearborn explained that the cooperation agreement between the City and CVRP would be changed so that the scope of this project, which was originally $45 million for Bailey/101, would be reduced to $300,065,000, and VTA will assume project management responsibilities. He indicated that instead of bringing $22.5 million to this project, as CVRP was obligated to do for the full project, it will be bringing $2 million in cash, actually brought in the form of land and mitigations it will pay for as required for the project; plus it will contribute another approximately $1.5 million in bond proceeds for the CFD being formed. He stated that in addition to the Community Facilities District (CFD) obligation, it would pay off advances of up to $5 million the City is making on behalf of CVRP toward early construction costs of the project. He explained that when development occurs on this land, the first building permit will trigger the repayment by CVRP of any amounts in total the City would have advanced by that time; the project estimates currently call that amount at approximately $4.1 million. He added that, in fact, the City would also advance moneys for overruns.

Council Member Chavez stated that she assumed the genesis for this is not to lose the $18 million of State money. She asked if the amount agreed to in terms of paring down the scope of the project was done in corroboration with CVRP. Senior Deputy City Manager Dearborn responded that Staff did corroborate with CVRP and that they are responsible for the balance of $6.5 million. He explained that the scope of the project is dependent on their capacity to fund it, and that CVRP decided they can fund the two pieces of the project based on the amount of development CVRP can attract and permit in Coyote Valley. Council Member Chavez asked how does the agreement now on the table create construction for the second phase. Senior Deputy City Manager responded that there is a $50 million increments of construction that is as yet unfunded and there is no time set for build-out; however, there is no City or VTA funding responsibility for this. Council Member Chavez expressed concern that three out of the four areas Staff looked at are in Strong Neighborhood Initiative (SNI) areas, and that the City took action in the SNI areas without communicating with the neighborhoods. Senior Deputy City Manager Dearborn responded that Staff has been trying to finalize the financing package but should have had conversations with Council Offices and appropriate neighborhoods earlier about the individual projects proposed to be rescheduled.

Council Member Reed asked if the impending Habitat Conservation Plan, or the efforts to get one, have any impacts on this project. Stephan Haase, Director of Planning, Building and Code Enforcement, responded that the City should be able to move forward, and Staff has had discussions with the agencies over the Habitat Conservation Plan; but this will be treated as a specific project and Staff will be considering these permits related to just this action rather than the larger development that Coyote Valley represents. Council Member Williams asked what is included in the $4 million the City is going to advance. Sr. Deputy City Manager Dearborn responded that the money is being made available by rescheduling of projects as described in the Staff report. Regarding the $1,515,000 for a special tax bond, Council Member Williams asked if it would be issued when there is actual development or will it be brought forward immediately. Sr. Deputy City Manager Dearborn explained that the schedule calls for the issuance of bonds of the Community Facilities District at the end of January 2003, and the $1,515,000 is part of a joint issue that totals between $13 million and $14 million. He added that the balance would be used to pay off assessment district bonds that already exist on this property. Council Member Dando stated that she does not have difficulty with delaying the $3.7 million for the Winfield Bridge, but she would like to recommend that the $200,000 for pre-development funding be set aside for the pedestrian bridge over Almaden Expressway. She indicated that if there were a designed project, there would possibly be grant funding to pay for the project. Sr. Deputy City Manager Dearborn responded that funds now shown in the 2003-2004 Capital Improvement Budget would be retained and redirected for the pedestrian bridge over Almaden Expressway. Council Member Campos stated that she believes it is very important when changes are made to projects that plenty of time should be provided to inform the community. Mayor Gonzales emphasized the importance of involving residents to keep them informed of changes.

Upon motion by Council Member Williams, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Council accepted the following revision to the Staff report dated November 7, 2002: i.e., the Oakland Road project will not be delayed and the $220,000 identified for this project would come from the ending fund balance in the Capital Improvement Fund; Council directed Staff to (1) provide adequate time for notification of project changes or delays which impact Council Districts or SNI areas to enable the neighborhoods to be informed and kept apprised of the latest proposals affecting their areas; and (2) to ensure that the $200,000 funding for pre-development funds in the 2003-04 Capital Improvement Budget be set aside for the pedestrian bridge over Almaden Expressway; Resolution No. 71292, entitled: “A Resolution of the City of San Jose of Intention to Establish Community Facilities District No. 9 (Bailey/Highway 101) and to Authorize the Levy of Special Taxes, Setting a Public Hearing Regarding Formation of the District, and Authorizing Other Related Actions”; Resolution No. 71293, entitled: “A Resolution of the City of San Jose of Intention to Incur Bonded Indebtedness for Community Facilities District No. 9 (Bailey/Highway 101), and Authorizing Other Related Actions”; Resolution No. 71294, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute any Agreements or Amendments to Agreements Required to Implement the Revised Bailey Extension Project”; Ordinance No. 26773, entitled: “An Ordinance of the City of San Jose Amending Ordinance No. 26674 to Appropriate Moneys in the Construction Excise Tax Fund Related to the Bailey Avenue Improvements Project; and Providing That This Ordinance Shall Become Effective Immediately upon Adoption”; Resolution No. 71295, entitled: “A Resolution of the City of San Jose Amending Resolution No. 71072 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2002-03 to Adjust Revenues in the Construction Excise Tax Fund”; and Ordinance No. 26774, entitled: “An Ordinance of the City of San Jose Amending Ordinance No. 26674 to Appropriate Moneys in the Building and Structure Construction Tax Fund; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, were adopted. Vote 10-0-1-0. Absent: LeZotte.

AVIATION SERVICES

8.1 Adoption of a resolution authorizing the City Manager to:

(a) Negotiate and execute an agreement with Corlett, Skaer and DeVoto Architects Inc. (CSDA) for consultant services related to the acoustical treatment of 500 homes as part of the City’s expanded Acoustical Treatment (ACT) Program, for the period November 18, 2002 to December 31, 2005, in an amount not to exceed $4,015,481; and

(b) Exercise an option to add consultant services for the acoustical treatment of up to 400 additional homes in the expanded ACT Program area, in an additional amount not to exceed $3,314,585, and subject to appropriation of funding for the additional consultant services.

CEQA: Resolution No. 67380, PP 02-11-317. Council District 3. SNI: Washington. (Airport)

Documents Filed: Memorandum from Aviation Director Ralph G. Tonseth, dated October 23, 2002, recommending adoption of said resolution authorizing the City Manager to (a) negotiate and execute said agreement with Corlett, Skaer and DeVoto Architects Inc.; and (b) exercise an option to add consultant services for the acoustical treatment of up to 400 additional homes in the expanded ACT Program area and subject to appropriation of funding for the additional consultant services.

Discussion/Action: Mark Boyd spoke on the item. Upon motion by Council Member Chavez, seconded by Council Member Dando, and unanimously carried, Resolution No. 71296, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement With Corlett, Skaer and Devoto Architects, Inc. for Consultant Services for the Expanded Acoustical Treatment Program for the Treatment of Five Hundred Homes for the Period November 18, 2002 to December 31, 2005, in an Amount not to Exceed $4,015,481 with an Option to add Consultant Services for the Treatment of Four Hundred Additional Homes in an Amount not to Exceed $3,314,585, Subject to Appropriation of Funding”, was adopted. Vote: 10-0-1-0. Absent: LeZotte.

Closed Session Report

City Attorney Doyle disclosed the following Closed Session actions of November 12, 2002:

A. Authority to Enter Litigation Case as Amicus Curiae:

1. Case Name: Barden

Substance of litigation: Action brought against the City of Sacramento alleging that the City was violating the Americans with Disabilities Act by failing to adequately maintain City sidewalks.

Council Vote: Ayes: Campos, Chavez, Cortese, Dando, Diquisto, Shirakawa, Jr., Reed, Yeager, Williams; Gonzales.

Noes: None.

Absent: LeZotte.

Abstain: None.

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
9164	S/o Hellyer Avenue	8	William Lyon Homes	60 lots 40 lots	SFDR SFAR (duets)	Approve
9437	SW/c of Camden Ave. and Vista Loop Rd.	9	Mashom Real Estate Investment LLC	5 units	SFDR	Approve
9456	S/s of Foxworthy Avenue at Rubino Drive	9	Summer Hill Homes	83 units	detached townhomes	Approve
9457	348 Cypress Ave – 400 feet south of Stevens Creek Blvd	1	Grayson Hanson	3 units	SFDR	Approve

OPEN FORUM

Brian Karek spoke on zoning and growth issues; Ross Signorino spoke on development issues pertaining to Santana Row; Rich De La Rosa, from the Tropicana Merchants Association, requested the issues pertaining to the Tropicana Shopping Center be heard in evening sessions, and submitted a document to Council on referenced issue.

Adjournment

The Council of the City of San José adjourned at 3:43 p.m.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN

CITY CLERK