MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, JUNE 10, 2003

The Council of the City of San José convened in Regular Session at 9:30 a.m. in Council Chambers at City Hall.

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

Absent: Council Members - None.

Upon motion unanimously adopted, the City Council recessed to Closed Session at 9:36 a.m. in Room 600 (A) to confer with Legal Counsel to discuss existing litigation pursuant to Government Code Section 54956.9 subsection (a) to consider the case of (1) D’Arcy v. City of San José, (2) to consider the case of In Re: Hughes; and (B) to confer with Legal Counsel to discuss anticipated litigation pursuant to subsection (c) of Section 54956.9 of the Government Code in one (1) matter involving initiation of litigation; and (C) to confer with Labor Negotiator pursuant to Government Code Section 54956.9 involving City Negotiator, City Manager designee Alex Gurza, and the (1) San José Police Officers’ Association, (2) International Association of Firefighters, (3) Municipal Employees Federation, (4) Confidential Employees Organization, (5) City Association of Management Personnel, (6) Association of Maintenance Supervisory Personnel, (7) Operating Engineers, Local 3, (8) International Brotherhood of Electrical Workers, (9) Association of Building and Mechanical and Electrical Inspectors.

By unanimous consent, Council reconvened from Closed Session and recessed at 11.30 a.m. and reconvened at 1:36 p.m. in Council Chambers, City Hall.

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

Absent: Council Members - None.

Invocation

Willow Glen High School students performed two songs from the “Pajama Game”, entitled “I’ll Never Be Jealous Again”, and “Steam Heat.” (District 6)

Mayor Gonzales expressed, on behalf of the City Council, the shock of the abduction of Jennette Tamayo on Friday, June 6, 2003, and the thrill of her return to her family on Sunday evening. He expressed gratitude to the City of San José Police Department, Chief of Police William M. Lansdowne, and all the other law enforcement agencies that came together for Jennette, including the volunteers that distributed leaflets.

Pledge of Allegiance

Mayor Gonzales led the Pledge of Allegiance.

Orders of the Day

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

CEREMONIAL ITEMS

1.1 Presentation from the Silicon Valley Manufacturing Group on the Housing Trust Fund. (Silicon Valley Manufacturing Group)

Documents Filed: None.

Discussion/Action: Carl Guardino, President and CEO, and Roccie Hill, Executive Director, of Silicon Valley Manufacturing Group, gave a presentation highlighting the Housing Trust Fund Annual Report, stating two years ago the City Council made an investment of $1 million in the Housing Trust that has already leveraged for the citizens of the City of San José, a return of $6 million for affordable homes.

CONSENT CALENDAR

Upon motion by Vice Mayor Dando, seconded by Council Member Chavez and carried unanimously, the Consent Calendar was approved and the below listed actions were taken as indicated. Vote: 11-0-0-0.

2.1 Approval of City Council Minutes for:

(a) Regular meeting of October 8, 2002

Documents Filed: Minutes of the Regular Meeting of October 8, 2002.

Discussion/Action: The minutes were approved. Vote: 11-0-0-0.

(b) Joint City Council/Redevelopment Agency Board meeting of October 8, 2002

Documents Filed: Minutes of the Joint City Council/Redevelopment Agency Board meeting of October 8, 2002.

Discussion/Action: The minutes were approved. Vote: 11-0-0-0.

(c) Joint City Council/San José Financing Authority meeting of October 8, 2002

Documents Filed: Minutes of the Joint City Council/San José Financing Authority meeting of October 8, 2002.

Discussion/Action: The minutes were approved. Vote: 11-0-0-0.

2.2 Final adoption of ordinances:

(a) ORD. NO. 26901 – Amends Chapter 3.36 of Title 3 of the San José Municipal Code (Police and Fire Department Retirement Plan) to revise the procedures for medical examinations, to clarify calculations of disability retirement benefits, and to clarify calculations of survivorship benefits payable because of a service-connected death.

Documents Filed: Proof of Publication of the title of Ordinance No. 26901 executed on June 3, 2003, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26901 was adopted. Vote: 11-0-0-0.

(b) ORD. NO. 26902 – Amends Section 3.44.010 of Chapter 3.44 of Title 3 of the San José Municipal Code to clarify that cost-of-living adjustments apply to surviving spouse benefits provided under the optional settlement provisions of The Police and Fire Department Retirement Plan.

Documents Filed: Proof of Publication of the title of Ordinance No. 26902 executed on June 3, 2003, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26902 was adopted. Vote: 11-0-0-0.

(c) ORD. NO. 26903 – Amends Chapter 4.80 of Title 4 of the San José Municipal Code by repealing Part 3 relating to the Alviso Water Service Area Extension and Improvement Fund and amends Part 12 relating to the Consolidated Water Utility Fund, and amends Chapter 15.08 of Title 15 of the San José Municipal Code to add a new Part 2.5 relating to rates and charges for potable water service.

Documents Filed: (1) Memorandum from City Attorney Richard Doyle, dated June 6, 2003, recommending adoption of said ordinance. (2) Proof of Publication of the title of Ordinance No. 26903 executed on June 3, 2003, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales called for public testimony. William Garbett spoke on the issue. Ordinance No. 26903 was adopted. Vote: 10-1-0-0. Noes: Reed.

2.3 Adoption of a resolution ordering the reorganization of territory designated as Franklin No. 50, which involves the annexation to the City of San José of 16.25 gross acres of land located on the southern side of Tully Road, approximately 500 feet easterly of 10^th Street, generally bounded by the City of San José Annexations Monterey Park No. 5, Franklin 31, Franklin 4, and Franklin 17, and the detachment of the same from the Central Fire Protection, County Library Service Area, and County Sanitation 2-3, and the 16.25 acre parcel consists of a portion of one existing parcel. CEQA: Resolution No. 71359, Franklin 50. Council District 7. (Planning, Building and Code Enforcement)

(Deferred from 5/27/03 – Item 2.11)

Documents Filed: Memorandum from Director of Planning, Building and Code Enforcement Stephen M. Haase, dated May 19, 2003, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71591, entitled: “A Resolution of the Council of the City of San José Ordering the Reorganization of Certain Uninhabited Territory Designated as Franklin No. 50 Subject to Liability for General Indebtedness of the City”, was adopted. Vote: 11-0-0-0.

2.4 Adoption of a resolution authorizing the City Manager to apply for, and execute upon receipt, a series of grants with the Federal Aviation Administration (FAA), at such time or times as the grant monies are available in succeeding Federal Fiscal Years to be used to defray the cost of the Airport Acoustical Treatment (ACT) Program Category 1B expanded treatment area in an amount in excess of the City Manager’s contract authority. CEQA: Resolution Nos. 67380 and 71451, PP 03-05-156. Council District 3. (Airport)

Documents Filed: Memorandum from Director of Aviation Ralph G. Tonseth, dated May 19, 2003, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71592, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Apply for and Execute Upon Receipt a Series of Grants with the Federal Aviation Administration to Defray the Cost of the Airport Acoustical Treatment Program in an Amount in Excess of the City Manager’s Contract Authority of $100,000”, was adopted. Vote: 11-0-0-0.

2.5 Adoption of a resolution authorizing the City Attorney to negotiate and execute a third amendment to the agreement with Hanson, Bridgett, Marcus, Vlahos, Rudy LLP to provide investigation services as the Evaluator to the Ethics Board, extending the term through June 30, 2004, at no additional cost to the City.

(City Attorney's Office)

Documents Filed: Memorandum from City Attorney Richard Doyle, dated May 29, 2003, recommending adoption of said resolution.

Discussion/Action: Mayor Gonzales called for public testimony. William Garbett spoke on the issue. Resolution No. 71593, entitled: “A Resolution of the Council of the City of San José Authorizing the City Attorney to Negotiate and Execute a Third Amendment to the Agreement with Hanson, Bridgett, Marcus, Vlahos, Rudy, LLP, to Provide Investigation Services as the Evaluator to the Ethics Board to Extend the Term Through June 30, 2004”, was adopted. Vote: 11-0-0-0.

2.6 Adoption of a resolution authorizing the City Manager to:

(a) Submit an application to the Corporation for National and Community Service (CNCS) for a one-year Federal grant not to exceed $125,791, for the Senior Companion Program (SCP) with a match requirement of $83,516; and

(b) Accept grant funds and to negotiate and execute all agreements if grant is awarded provided that the $83,516 match has been appropriated by City Council in the 2003-2004 Budget.

CEQA: Not a Project. (Parks, Recreation and Neighborhood Services)

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated May 19, 2003, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71594, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Submit an Application to the Corporation for National and Community Service for a One-Year Federal Grant in an Amount Not To Exceed $125,791 for the Senior Companion Program with a Matching Requirement of $83,516; and to Accept Grant Funds and to Negotiate and Execute Documents Related to the Grant”, was adopted. Vote: 11-0-0-0.

2.7 Approval of an agreement with David J. Powers & Associates, Inc. for the preparation of an Environmental Impact Report for Phase III of the Housing Opportunity Study (HOS), in the amount of $152,000. CEQA: Not a Project. (Planning, Building and Code Enforcement)

Documents Filed: Memorandum from Director of Planning, Building and Code Enforcement Stephen M. Haase, dated May 19, 2003, recommending approval of an agreement in the amount of $152,000, with David J. Powers & Associates, Inc., for the preparation of an Environmental Impact Report for Phase II of the Housing Opportunity Study.

Discussion/Action: The agreement with David J. Powers & Associates, Inc., for the preparation of an Environmental Impact Report for Phase II of the Housing Opportunity Study, was approved and execution of the agreement was authorized. Vote: 11-0-0-0.

2.8 Report on bids and award of contract for the Paul Moore Park New Restroom Building Project to the low bidder, Beacon Construction, Inc., in the amount of $171,000, and approval of a contingency in the amount of $18,000. CEQA: Exempt, PP03-05-142. Council District 9. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated May 19, 2003, recommending award of contract, with related contingency, to the low bidder, Beacon Construction, Inc., for the Paul Moore Park New Restroom Building Project.

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

2.9 Report on bids and award of contract for the Gregory Street Bridge Project to the low bidder, JFC Construction, in the amount of $257,717, and approval of a contingency in the amount of $25,800. CEQA: Negative Declaration, PP01-02-019. Council District 6. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated May 19, 2003, recommending award of contract, with related contingency, to the low bidder, JFC Construction for the Gregory Street Bridge Project.

Discussion/Action: Council Member Yeager stated the Gregory Street Bridge will be connected to a path in the north Willow Glen area that was constructed approximately six years ago, however the path has been blocked with no access, and asked once the bridge is built, will the gate located near the storage yard be opened up, and what is the plan for the maintenance. Director of Parks, Recreation and Neighborhood Services Sara L. Hensley replied the path and the bridge will be made permanently accessible, and as development of the different trails begins, Staff has programmed in the projected cost of the maintenance with the project, which is expected to begin August 2004. Council Member Yeager asked if the gate will be permanently opened or will it close at sunset. Director Hensley replied there are no plans to close at sunset. Council Member Yeager stated in regard to the path off Lonus Court, it also travels to an industrial area, and asked what type of signage will be directing the public to other parts of the trail. Director of Transportation James R. Helmer replied the Transportation Department is working with Parks Recreational and Neighborhood Services, and partnering agencies on the trail signage program. He stated Staff is implementing a comprehensive signage program, not only from the streets leading people to trails but also from the trails informing them which streets they are approaching. The award of the contract, with related contingency, to the low bidder JFC Construction, was approved and execution of the agreement authorized. Vote: 11-0-0-0.

2.10 Report on bids and award of contract for the Department of Transportation Miscellaneous Sanitary Sewer Rehabilitation Project to the low bidder, Pacific Underground Construction, in the amount of $289,912, and approval of a contingency in the amount of $29,000. CEQA: Exempt, PP 02-09-255 and PP 03-04-122. Council Districts 3 and 4. SNI: Spartan/Keyes and Market/Almaden. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated May 19, 2003, recommending award of contract, with related contingency, to the low bidder, Pacific Underground Construction for the Department of Transportation Miscellaneous Sanitary Sewer Rehabilitation Project.

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

2.11 Approval of an agreement with Montgomery Watson Harza for consultant services including project design, preparation of construction documents, and construction support services for the San Tomas Expressway Trunk Rehabilitation Phase II Project, for the period June 24, 2003 to January 30, 2005, in a total amount not to exceed $204,830. CEQA: Exempt, PP 02-10-277. Council District 1. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated May 19, 2003, recommending approval of agreement, in a total amount not to exceed $204,830, with Montgomery Watson Harza, for the San Tomas Expressway Trunk Rehabilitation Phase II Project.

Discussion/Action: The agreement with Montgomery Watson Harza was approved and execution of the agreement was authorized. Vote: 11-0-0-0.

2.12 Approval of various actions related to the Aerial Photograph Project.

(a) Approval of the first amendment to the agreement with Triathlon, Inc. for consultant services for the Ortho-rectified Aerial Photographs Phase II Project.

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

(1) Establish an appropriation to the Department of Public Works for the Orthophoto Project in the amount of $311,000.

(2) Increase the Estimate for Earned Revenue by $311,000.

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

Documents Filed: Memorandum from Budget Director Larry Lisenbee, and Director of Public Works Katy Allen, dated May 19, 2003, recommending approval of the first amendment to the agreement with Triathlon, Inc., increasing compensation by $24,000, for the Ortho-rectified Aerial Photographs Phase II Project, and adoption of said appropriation ordinance and funding sources resolution amendments.

Discussion/Action: The first amendment to the agreement with Triathlon, Inc. was approved, and Ordinance No. 26912, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Monies in the Construction Excise Tax Fund for the Ortho Project; and Providing that this Ordinance Shall Become Effective Immediately Upon Adoption”, and Resolution No. 71595, entitled: “A Resolution of the Council of the City of San José Amending Resolution No. 71072 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2002-2003 to Adjust Revenues in the Construction Excise Tax Fund”, were adopted. Vote: 11-0-0-0.

2.13 Approval of Contract Change Order No. 19 with Graniterock Company DBA Pavex Construction Division for the Improvement District 99-218SJ (Hellyer-Piercy) Contract #1 Project, in the amount of $117,600, for a total contract amount of $16,649,037.44, and providing for an additional 14 working day time extension. Council District 2. (Public Works)

(Deferred from 6/3/03 – Item 2.8)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated May 27, 2003, recommending approval of said contract change order.

Discussion/Action: Contract Change Order No. 19 with Granite Rock Company DBA Pavex Construction Division was approved, and execution of the change order authorized. Vote: 11-0-0-0.

2.14 Adoption of a resolution authorizing the City Clerk to execute an agreement with the County of Milwaukee, Wisconsin, for the services of Douglas Jenkins to conduct a performance audit of the City Auditor’s Office for 2001-02 and 2002-03, in exchange for reimbursement of expenses of approximately $5,000 for the audit team, pursuant to the peer review guidelines of the National Association of Local Government Auditors (NALGA). (Mayor)

(Rules Committee referral 6/4/03)

Documents Filed: Memorandum from Mayor Gonzales, dated June 9, 2003, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71596, entitled: “A Resolution of the Council of the City of San José Authorizing the City Clerk to Execute an Agreement with the County of Milwaukee for the Services of Douglas Jenkins to Conduct a Biennial Performance Audit of the City Auditor’s Office for 2001-02 and 2002-03 in Exchange for Reimbursement of Expenses of Approximately $5,000 Pursuant to the Peer Review Guidelines of the National Association of Local Government Auditors (NALGA)”, was adopted. Vote: 11-0-0-0.

END OF CONSENT CALENDAR

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – May 28, 2003

Vice Mayor Dando, Chair

Documents Filed: The Rules Committee Report of May 28, 2003.

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

(b) City Council

Review June 9, 2003 Draft Agenda

The Committee recommended approval of the June 9, 2003 City Council Agenda.

(1) Review June 10, 2003 Draft Agenda

The Committee recommended approval of the June 10, 2003 City Council Agenda with one addition.

(2) Add New Items to June 3, 2003 Amended Agenda

The Committee recommended one addition to the June 3, 2003 City Council Agenda.

(3) List of Reports Outstanding. Attachment: Report from the City Manager, dated May 27, 2003, transmitting reports outstanding for June 3, 2003.

The Committee noted and filed the City Manager’s report listing three staff reports outstanding for the June 3, 2003 Council Meeting.

(c) Legislative Update

(1) State

(a) SB 916 (Perata), Toll Bridge Revenues

This item was reported at the June 3, 2003 Council meeting.

(b) Approval of staff recommendations on four State legislative bills:

AB 792 (Yee) Vehicles: Removal: Storage

ACA 9 (Levine) Local Government Taxation: Special Taxes: Voter Approval

ACA 11 (Levine) Local Government: General Obligation Bonds, Infrastructure Projects

SCA 11 (Alarcon) Local Government: Special Taxes and General Obligation Bonds; Infrastructure Projects

The Committee deferred this item to the June 4, 2003 Rules Committee meeting.

(a) Federal Lobbyist Monthly Report. Attachment: Memorandum from Director Intergovernmental Relations Betsy Shotwell, dated May 27, 2003, transmitting the Federal Lobbyist Monthly Report for April 2003.

The Committee accepted the Federal Lobbyist’s monthly report.

(d) Meeting Schedules

There were none.

(e) The Public Record. Attachment: Memoranda from City Clerk Patricia L. O’Hearn, dated May 15, 2003, and May 22, 2003, transmitting items filed on the Public Record for the period May 7-13, and May 14-20, 2003.

The Committee directed the City Clerk to respond to Item (a) on the May 22, 2003 Public Record, a letter from Marty Peterson highlighting the importance of Needs Assessments for use by Project Diversity Screening Committee members.

The Committee noted and filed the Public Record.

(f) Boards, Commissions and Committees

There were none.

(g) Council Referrals for Assignment to Administration or Council Appointee

There were none.

(h) Administrative Reviews and Approval

There were none.

(i) Oral communications

None were presented.

(j) Adjournment - The meeting was adjourned at 2:25 p.m.

Discussion/Action: Upon motion by Vice Mayor Dando, seconded by Council Member Chavez, and carried unanimously, the Rules Committee Report and actions of May 28, 2003, were accepted. Vote: 11-0-0-0.

3.4 Approval of various actions related to PG&E Franchise Fee Ordinances.

(a) Approval of an ordinance amending the franchise with PG&E for the sale of gas within the City (Ordinance No. 15879 as amended by Ordinance No. 21676) providing that in the event of an overpayment of PG&E's annual franchise fees to the City, upon approval by the City, PG&E may deduct from the next year's quarterly payments the overpayment in equal amounts, without interest.

(b) Approval of an ordinance amending the franchise with PG&E for the sale of electricity within the City (Ordinance No. 15880 as amended by Ordinance No. 21677) providing that in the event of an overpayment of PG&E's annual franchise fees to the City, upon approval by the City, PG&E may deduct from the next year's quarterly payments the overpayment in equal amounts, without interest.

(Finance)

Documents Filed: Memorandum from Director of Finance Scott P. Johnson, dated May 30, 2003, recommending approval of said ordinances.

Discussion/Action: Council Member Chavez stated the Building Strong Transportation Committee has been collaborating on the construction impact work, and asked whether Staff, as part of those discussions, have had similar discussions with PG&E. City Attorney Richard Doyle replied this is strictly an independent financial transaction to perform adjustments of the overpaid amounts. Director of Public Works Katy Allen stated there has been discussion with the utilities regarding the Construction Impact Mitigation Plan, and with the direction Staff received from the Committee last week, the results will be included in the outreach effort with the Impact Mitigation Plan. Upon motion by Council Member Williams, seconded by Construction Council Member Chavez, and carried unanimously, Ordinance No. 26913, entitled: “An Ordinance of the City of San José Amending Ordinance No. 15879 as Amended by Ordinance No. 21676, which Granted a Franchise for the Sale of Gas Within the City of San José to Pacific Gas & Electric Company, to Allow a Credit in the Event of Overpayments”, and Ordinance No. 26914, entitled: “An Ordinance of the City of San José Amending Ordinance No. 15880 as Amended by Ordinance No. 21677, Which Granted a Franchise for the Transmission and Distribution of Electricity Within the City of San José to Pacific Gas & Electric Company, to Allow a Credit in the Event of Overpayments”, were passed for publication. Vote: 11-0-0-0.

3.5 Adoption of the Statement of Policy and City Council Questions related to the selection of a new Fire Chief as described in the memo, in compliance with City Charter Section 411.1. (City Manager’s Office)

(Rules Committee referral 6/4/03)

Documents Filed: Memorandum from City Manager Del Borgsdorf, dated June 3, 2003, recommending adoption of the Statement of Policy and City Council Questions related to the selection of a new Fire Chief.

Discussion/Action: Mayor Gonzales called for public testimony. Ross Signorino spoke on this issue. Council Member Chavez asked what is the timeline for the selection of the new Fire Chief. City Manager Del Borgsdorf replied Staff has been involved in the selection process for the past six months, anticipates completion in October 2003, and will meet with the Fire Department in multiple ways prior to the recruiting so there is a full-scale opportunity for the Department rank and file to weigh in on their expectations and preferred credentials. He stated Staff has had a number of occasions to use consulting firms in the past and anticipates using a consultant for the outreach in this process, but on a limited basis, as the lead for the search process will be the City Manager’s Office, and the Employee Services Department. Upon motion by Council Member Chavez, seconded by Vice Mayor Dando, and carried unanimously, the Statement of Policy and City Council Questions related to the selection of a new Fire Chief was approved, and its execution authorized. Vote: 11-0-0-0.

3.6 Recommend adoption of a position in regard to Senate Bill 60 (Cedillo). (Cortese)

(Rules Committee referral 6/4/03)

Documents Filed: None.

Discussion/Action: Item 3.6 was referred to the Rules Committee to be put on the June 17, 2003 Council Agenda.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.3 Adoption of a resolution of the City Council:

(a) Authorizing the issuance and sale of special tax bonds for Community Facilities District #10 (Hassler - Silver Creek) in an aggregate principal amount not to exceed $15,000,000, to be sold on a competitive basis.

(b) Approving the form of and authorizing the execution of the Fiscal Agent Agreement and certain other related financing documents, and directing and authorizing certain other related actions.

(c) Approving the form and authorizing the use of the Official Statement in connection with the competitive sale of bonds, and directing and authorizing certain other related actions.

CEQA: Resolution No. 64913, PP02-11-347. Council District 8. (Finance/Public Works)

Documents Filed: None.

Discussion/Action: Item 4.3 was deferred to June 17, 2003.

4.4 PUBLIC HEARING on the designation of 128 Pierce Avenue as a landmark of special historic, architectural, cultural, aesthetic, or engineering interest or value of a historic nature. CEQA: Exempt, PP03-03-074. SNI: Market/Almaden. (Planning, Building, and Code Enforcement)

HL 03-147 – District 3

(Continued from 5/6/03 – Item 4.5 and 6/3/03 – Item 4.3)

Documents Filed: (1) Memorandum from Director of Planning, Building and Code Enforcement Stephen M. Haase, dated May 19, 2003, recommending adoption of said resolution. (2) Proof of Publication of Notice of Public Hearing, executed on April 25, 2003, submitted by the City Clerk. (3) Affidavit of Mailing, executed on June 17, submitted by the City Clerk. (4) Affidavit of Routing, executed on June 17, 2003, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing, and there was no discussion from the floor. Upon motion by Council Member Chavez, seconded by Council Member Yeager, and carried unanimously, the public hearing was closed, and Resolution No. 71597, entitled: “A Resolution of the Council of the City of San José Designating, Pursuant to the Provisions of Chapter 13.48 of Title 13 of the San José Municipal Code, the Building located at 128 Pierce Avenue, as a Landmark of Special Historical, Architectural, Cultural, Aesthetic or Engineering Interest or Value of a Historic Nature”, was adopted. Vote: 11-0-0-0.

RECREATION & CULTURAL SERVICES

5.2 Adoption of a resolution authorizing the City Manager to negotiate and execute:

(a) The first amendment to the agreement between the City and the Trustees of the California State University System on behalf of San José State University for the operation and maintenance of the new Dr. Martin Luther King, Jr. Library, in order to update the allocation of space, to specify the method of collecting and disbursing funds for payment of maintenance expenses; and

(b) A Memorandum of Agreement on Technology for the new Library, to provide for reimbursement to the University in an amount not to exceed $997,200, for the acquisition of a joint Automated Library System, and to specify cost allocation formulas for the acquisition of telephone, data, and computer systems.

CEQA: Not a Project. Council District 3. (Library)

Documents Filed: Memorandum from Library Director Jane Light, dated May 19, 2003, recommending adoption of said resolution.

Discussion/Action: Upon motion by Council Member Chavez, seconded by Council Member Yeager, and carried unanimously, Resolution No. 71598, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a First Amendment to the Operating Agreement and a Memorandum of Agreement of San José State University for the New Martin Luther King, Jr. Library”, was adopted. Vote: 11-0-0-0.

ENVIRONMENTAL & UTILITY SERVICES

7.1 PUBLIC HEARING on the Commercial Solid Waste and Recyclables Collection Franchise application of Redwood Services, Inc., DBA Redwood Debris Box Service, approval of ordinance granting the franchise, and approval of Commercial Solid Waste and Recyclables Collection Franchise agreement with Redwood Services, Inc., DBA Redwood Debris Box Service for a term from July 25, 2003 to June 30, 2004. CEQA: Negative Declaration, PP92-11-308. (Environmental Services)

Documents Filed: (1) Memorandum from Director of Environmental Services Carl W. Mosher, dated May 19, 2003, recommending approval of said ordinance. (2) Proof of Publication of Notice of Public Hearing, executed on May 27, 2003, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing, and there was no discussion from the floor. Upon motion by Council Member Chavez, seconded by Vice Mayor Dando, and carried unanimously, the public hearing was closed, and Ordinance No. 26915, entitled: “An Ordinance of the City of San José Granting a Commercial Solid Waste and Recyclables Collection Franchise to Redwood Services Inc. DBA Redwood Debris Box”, was passed for publication. Vote: 11-0-0-0.

JOINT COUNCIL/REDEVELOPMENT AGENCY

The Redevelopment Agency Board convened at 2:15 p.m. to consider Items 10.1, 10.2, and 10.3 in a Joint Session. Items 10.2 and 10.3 were heard concurrently.

10.1 Approval of various actions related to Housing Bonds.

(a) Adoption of a resolution of the Agency Board:

(1) Authorizing the issuance of Redevelopment Agency of the City of San José Merged Area Redevelopment Project Housing Set-Aside Taxable Tax Allocation Bonds, Series 2003J and Housing Set-Aside Tax Allocation Bonds, 2003K (collectively, the "Bonds") in an aggregate principal amount not to exceed $69,000,000;

(2) Approving in substantially final form the Bonds, Sixth Supplemental Agreement, Continuing Disclosure Agreement, Preliminary Official Statement and for each series a Notice of Intention to Sell, Official Notice Inviting Bids and Bid Form; authorizing the Executive Director, or her designee, to execute and, as appropriate, negotiate these documents and other related documents as necessary; and

(3) Authorizing the Executive Director and the Director of Finance to take all necessary actions in connection with the issuance of the Bonds.

(b) Adoption of a resolution of the City Council:

(1) Approving the issuance of the Bonds by the Redevelopment Agency; making a finding pursuant to Redevelopment Law that the Merged Area will benefit from the projects funded by the Bonds that are located outside of the Merged Area; and

(2) Authorizing certain City officials to take all necessary actions in connection with issuance of the Bonds.

CEQA: Not a Project. (Finance/Housing/Redevelopment Agency)

Documents Filed: (1) Memorandum from Director of Finance Scott P. Johnson, Director of Housing Leslye Corsiglia, and Redevelopment Agency Director of Finance David Baum, dated May 19, 2003, recommending adoption of said resolutions. (2) Supplemental memorandum from Director of Finance Scott P. Johnson, dated June 3, 2003, transmitting Preliminary Office Statement, and providing updated status on financing. (3) Supplemental memorandum from Director of Finance Scott P. Johnson, dated June 9, 2003, providing updated status on financing.

Discussion/Action: Mayor Gonzales called for public testimony. William Garbett spoke on the issue. Council Member Reed stated the description in the disclosure described the uncertainty caused by the State’s budget deliberation which is not finalized, and asked Staff if the State of California decides to discontinue the Redevelopment Agency, would the City have an obligation to pay off the bonds. Director of Finance Scott P. Johnson replied this financing is based on the current tax increment, the base that the Redevelopment Agency receives. He stated the State’s action is based on future growth relative to tax increment, and Staff does not see any risk associated with issuing this debt nor any risk to the City’s General Fund in regard to the Redevelopment Agency issuing this debt on behalf of the Housing Department. Council Member Reed stated in regard to how the City is planning to spend the money, there is $5.7 million as a deposit to reimburse the Housing Department for rehabilitation grants, and asked how that relates to Category I, II and III Redevelopment Agency funding. Director of Housing Leslye Corsiglia replied this action is separate from the entire issue of the Redevelopment Agency’s budget, and Staff is refunding existing debt, taking out a small amount of money for projects and paying on a line of credit. She stated the $5.7 million is to be used to repay existing loans in order to obtain tax exempt financing. Council Member Reed asked if this action affects the City’s categorization of projects. Director Corsiglia replied this is solely the Housing Department’s Rehabilitation Program, and is not funded by the Redevelopment Agency. Upon motion by Vice Mayor Dando, seconded by Council Member Chavez, and carried unanimously, Resolution No. 71599, entitled: “A Resolution of the Council of the City of San José Approving the Issuance by the Redevelopment Agency of the City of San José of Its Merged Area Redevelopment Project Housing Set-Aside Taxable Tax Allocation Bonds, Series 2003J, in an Aggregate Principal Amount Not To Exceed $52,000,000 and Its Merged Area Redevelopment Project Housing Set-Aside Tax Allocation Bonds, Series 2003K, in an Aggregate Principal Amount Not To Exceed $17,000,000”, and Redevelopment Agency Resolution No. 5405, was adopted. Vote: 11-0-0-0.

10.2 Approval of the Mayor’s June Budget Message. (Mayor)

Documents Filed: Memorandum from Mayor Gonzales, dated June 4, 2003, transmitting the Mayor’s June Budget Message for Fiscal Year 2003-2004.

Discussion/Action: Item 10.2 was heard concurrently with Item 10.3; See Item 10.3 for the discussion.

10.3 Approval of the FY 2003-2004 Operating and Capital Budgets for the City of San José and Redevelopment Agency and Schedule of Fees and Charges.

(a) Adoption of resolutions by the City Council approving:

(1) Operating Budget for Fiscal Year 2003-2004 for the City of San José.

(2) Capital Budget for Fiscal Year 2003-2004 for the City of San José.

(3) Five Year Capital Improvement Program for Fiscal Year 2004-2008 for the City of San José.

(4) Adoption of a resolution establishing the Schedule of Fees and Charges for Fiscal Year 2003-2004.

(5) Adoption of a resolution establishing fees and charges for recreational and park activities.

(6) Adoption of a resolution establishing fees and charges for Sewer and Storm Sewer Service and Use Charges.

(7) Adoption of a resolution to establish new quantity charges for potable water service effective July 1, 2003.

(b) Adoption of resolutions by the Agency Board approving:

(1) Operating Budget for Fiscal Year 2003-2004 for the Redevelopment Agency of the City of San José.

(2) Capital Budget for Fiscal Year 2003-2004 for the Redevelopment Agency of the City of San José.

(3) Five Year Capital Improvement Program for Fiscal Year 2004-2008 for the Redevelopment Agency of the City of San José.

(c) Adoption of a resolution setting a public hearing on Tuesday, August 5, 2003, at 1:30 p.m. for the Fiscal Year 2003-2004 Annual Sanitary Sewer Service and Use and Storm Sewer Service Charge Reports of the Director of Finance and direction for the City Clerk to publish notice of the time and place of the hearing. (Finance)

(City Manager’s Office/Redevelopment Agency)

Documents Filed: (1) Proposed Operating, Capital, and Five Year Capital Improvement Program Budgets for Fiscal Year 2003-2004 for the City of San José. (2) Memorandum from Redevelopment Agency Executive Director Susan Shick, dated June 10, 2003, recommending approval of the Proposed Operating, Capital, and Five Year Capital Improvement Program Budgets for Fiscal Year 2003-2004 for the Redevelopment Agency. (3) Memorandum from Director of Environmental Services Carl W. Mosher, dated May 19, 2003, recommending acceptance of report proposing no changes in Sewer Service and Use Charges, adoption of 4.5% rate increase for FY 2003-04 in Storm Sewer Service Charges, and direction to Staff to return during the FY 2004-05 budget cycle with recommendations for a Storm Sewer Service Charge rate increase in FY 2004-05, consistent with the Staff recommended maximum rate increase for that year. (4) Memorandum from Director of Finance Scott P. Johnson, dated May 29, 2003, recommending adoption of said resolution setting a public hearing for the FY 2003-04 annual Sanitary Sewer Service and Use, Storm Sewer Service Charge Reports of the Director of Finance, and direct City Clerk to publish notice of the time and place of the hearing. (5) [A] FISCAL YEAR 2002-2003 BUDGET DOCUMENTS (BD) AND DOCUMENT LOG: [1] Memorandum from Joe Guerra, Director, Mayor’s Budget and Policy Office, dated May 2, 2003, providing directions for the budget review process prior to the Mayor’s Budget Message and Council/Board’s formal adoption, June 17, 2003. [2] Memorandum from Council Member Williams, dated May 19, 2003, recommending funding to offset probable budget reductions for the FY 2003-04 in order to continue a high level of community outreach and constituent services for the residents of District Two. [3] Memorandum from Council Member Cortese, dated May 22, 2003, recommending funding to continue outreach and supportive efforts in the Evergreen Community. [4] Memorandum from Council Member Yeager, dated May 22, 2003, recommending funding to continue community outreach services, projects, events and activities that benefit the residents of District Six. [5] Memorandum from Council Member Yeager, dated May 23, 2003, recommending funding to reinstate .5 FTE Recreation Leader part time hours at the Willows Senior Center that is currently proposed for elimination. [6] Memorandum from Council Member Yeager, dated May 23, 2003, recommending funding for the staffing of the Hoover Community Center by 3 FTEs. [7] Memorandum from Council Member Yeager, dated May 23, 2003, recommending funding to cover the costs of staffing, utilities and supplies to keep all libraries currently targeted for reduced hours open six days per week. [8] Memorandum from Council Members Yeager and Chirco, dated May 23, 2003, recommending funding for the installation of a traffic signal at the intersection of Leigh and Harris, which would provide pedestrian safety for the students of Bagby School. [9] Memorandum from Council Member Yeager, dated May 23, 2003, recommending incorporating sufficient funding into the proposed FY2003-04 Airport Budget to facilitate the design and construction of the Guadalupe Creek trail segment that abuts the San José Mineta Airport. [10] Memorandum from Council Member Williams, dated May 23, 2003, recommending additional funding for the Public Arts Grants Fund which assists local performing, visual, and cultural arts groups. [11] Memorandum from Council Member Campos, dated May 22, 2003, recommending funding to continue community outreach services, special community projects, events and activities that benefit the residents of District Five. [12] Memorandum from Council Member Chirco, dated May 23, 2003, recommending carry-over funding from District Nine 2002-2003 to the District Nine 2003-2004 budget. [13] Memorandum from Council Member Reed, dated May 23, 2003, recommending funding to continue outreach efforts and provide strategic support to the residents of District 4. [14] Memorandum from Council Member Reed, dated May 23, 2003, recommending funding for preparation of a RFQ for the management of the San José Convention Center, the Center for Performing Arts, the Montgomery Theater, the Fox Theater, the Civic Auditorium and Parkside Hall. [15] Memorandum from Council Member Williams, dated May 23, 2003, recommending funding for the Edenvale/Great Oaks Neighborhood Centers. [16] Memorandum from Vice Mayor Dando, dated May 22, 2003, recommending funding for maintaining current library hours and services. [17] Memorandum from Vice Mayor Dando, dated May 21, 2003, recommending funding for the Fire Department Wellness Program. [18] Memorandum from Vice Mayor Dando, dated May 22, 2003, recommending funding for the Alamden Winery Improvement Project. [19] Memorandum from Vice Mayor Dando, dated May 23, 2003, recommending rebudget funding from the 2002-03 Council District Ten Office Budget to the 2003-2004 Council District Ten Office Budget. [20] Memorandum from Council Member Reed, dated May 23, 2003, recommending funding for the Alviso Historic Marker Funding. [21] Memorandum from Council Member Reed, dated May 23, 2003, recommending publishing some legal notices in adjudicated publications with lower rates. [22] Memorandum from Council Member Reed, dated May 23, 2003, recommending restructuring reduced work week benefit levels to allow employees who work 32-39 hours per week to get 100% benefits. [23] Memorandum from Council Members Gregory, LeZotte, and Williams, dated May 23, 2003, recommending a one time transfer of Construction and Conveyance Taxes to the General Fund. [24] Memorandum from Council Member Gregory, dated May 23, 2003, recommending rebudget funding from the FY2002-03 Council District Seven Council Office Budget to the FY2003-04 District Seven Council Office Budget. [25] Memorandum from Council Member LeZotte, dated May 23, 2003, recommending carry-over funding from the District One 2002-2003 Budget to the District One 2003-04 Budget. [26] Memorandum from Council Member LeZotte, dated May 23, 2003, recommending Special Handling Teams to expedite Planned Development permits. [27] Memorandum from Council Member LeZotte, dated May 23, 2003, recommending cutting paid marketing. [28] Memorandum from Council Member Gregory, dated May 23, 2003, recommending funding for the Barberry Lane Walkway Landscaping from Dina Lane to South King Road, Pilot Project. [29] Memorandum from Council Member Gregory, dated May 23, 2003, recommending funding for the Umbarger Road Walkway Landscaping from Tuers Road to Baysmill Court, Pilot Project. [30] Memorandum from Council Member Gregory, dated May 23, 2003, recommending funding for the infrastructure improvements on Towers Lane. [31] Memorandum from Council Member Gregory, dated May 23, 2003, recommending funding for the Hubbard School Portable Community Facility. [32] Memorandum from Council Member Williams, dated May 23, 2003, recommending funding for the Library Collaborative Directive. [33] Memorandum from Council Member Chavez, dated May 22, 2003, recommending rebudget funding from District Three FY2002-03 Budget to the District Three FY2003-04 Budget. [34] Memorandum from Council Member Chavez, dated May 23, 2003, recommending funding “Hot Spots” Pilot Program. [35] Memorandum from Council Member Chavez, dated May 23, 2003, recommending funding Couplet Conversion. [36] Memorandum from Council Members Chavez, Gregory, and Williams, dated May 23, 2003, recommending funding of the Independent Police Auditor. [37] Memorandum from Council Member Gregory, dated May 23, 2003, recommending funding for the Wildlife Center of Silicon Valley. [38] Memorandum from Council Member Gregory, dated May 23, 2003, recommending funding infrastructure improvements on South 7^th Street, Phase I. [39] Memorandum from Council Member Gregory, dated May 23, 2003, recommending funding the Senter Road

Widening Project Priorities. [B] FISCAL YEAR 2003-2004 MANAGER’S BUDGET ADDENDA (MBA) AND DOCUMENT LOG: [1] Memorandum from City Manager Del Borgsdorf, dated May 1, 2003, recommending approval of proposed changes to performance measures included in the Fiscal Year 2003-2004 Proposed Operating Budget. [2] Memorandum from Budget Director Larry Lisenbee, dated May 6, 2003, recommending dates for the Budget Study Sessions. [3] Memorandum from Budget Director Larry Lisenbee, dated May 29, 2003, transmitting 2003-2004 Proposed Operating Budget replacement pages. [4] Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated May 28, 2003, transmitting the Core Services Survey. [5] Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated May 28, 2003, reporting on the San José Future Teachers Scholarship Program, as requested during budget deliberations. [6] Memorandum from City Manager Del Borgsdorf, dated May 30, 2003, reporting on the results of the preliminary analysis of an Early Retirement Incentive Program for employees in the Federated Retirement System, as requested during budget deliberations. [7] Memorandum from Deputy City Manager Jim Holgersson, dated May 5, 2003, reporting on the implementation of Community Based Organizations (CBO), as requested during budget deliberations. [8] Memorandum from Public Outreach Manager Tom Manheim, dated May 29, 2003, reporting on the Marketing suspension, as requested during budget deliberations. [9] Memorandum from Director of Housing Leslye Corsiglia, dated May 23, 2003, responding to the questions and concerns regarding the Rental Rights and Referrals Program Fee, as requested during budget deliberations. [10] Memorandum from Director of Housing Leslye Corsiglia, dated May 30, 2003, recommending the Housing Department defer inclusion of $4 million in Redevelopment Agency SNI Rehabilitation Program funding in the FY 2003-04 Budget. [11] Memorandum from Director of Transportation James R. Helmer, dated May 30, 2003, reporting on the Street Trees Program, as requested during budget deliberations. [12] Memorandum from Director of Public Works Katy Allen, dated May 27, 2003, reporting on the Neighborhood Sewer System Projects by Council Districts, as requested during budget deliberations. [13] Memorandum from Director of Transportation James R. Helmer, and Director of Environmental Services Carl W. Mosher, dated May 23, 2003, reporting on the street sweeping parking restrictions, as requested during budget deliberations. [14] Memorandum from Economic Development Director Paul Krutko, dated May 30, 2003, recommending approval of the HP Pavilion Capital Repairs and Replacement Budget as submitted by the San José Arena Authority Board of Directors. [15] Memorandum from Customer Service Manager Dottie Disher, dated May 28, 2003, reporting on the Customer Service Call Center Audit Responses, as requested during budget deliberations. [16] Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated May 28, 2003, reporting on the phase-out and transition of Parent Education and Resource Link Services Program (PEARLS) services, as requested during budget deliberations. [17] Memorandum from Library Director Jane Light, dated May 22, 2003, reporting on the cost estimates to restore half-day service to nine library branches which otherwise are proposed for one-day service reduction, as requested during budget deliberations. [18] Memorandum from Economic Development Director Paul Krutko, dated May 23, 2003, reporting the break out of the Office of Economic Development’s (OED) sales tax generation as requested during budget deliberations. [19] Memorandum from Director of Transportation James R Helmer, dated May 28, 2003, reporting on the Transportation CSA Capital Budget Study Session on the Traffic Signal Program, as requested during budget deliberations. [20] Memorandum from Chief of Police William M. Lansdowne, dated May 29, 2003, transmitting a revision of the Proposed Budget document in reference to Secondary Employment Administrative Support. [21] Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated May 30, 2003, reporting on the City of San José’s Volunteer Program, as requested during budget deliberations. [22] Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated May 29, 2003, reporting on the City of San José’s gang intervention program effects, as requested during budget deliberations. [23] Memorandum from Deputy City Manager Edward K. Shikada, and Budget Director Larry Lisenbee, dated May 27, 2003, recommending approval of revisions to the 2003-2004 Proposed Capital Budget for the Neighborhood Security Bond Fund to establish a Project Contigency Reserve by reducing individual project budgets by 10%, and approval of revisions to the remaining years of the 2004-2008 Capital Improvement Program for the Neighborhood Security Bond Fund as outlined on the revised Source and Use Statement (Attachment A) to establish a Project Contingency Reserve in each year by reducing individual project budgets by 10%. [24] Memorandum from Acting Fire Chief Dale E. Foster, dated June 2, 2003, reporting on the Fire Station Upgrade Schedule, as requested during budget deliberations. [25] Memorandum from Director of Public Works Katy Allen, dated May 29, 2003, reporting on the Capital Projects-Outside Project Managers versus Public Works Project Management Analysis, as requested during budget deliberations. [26] Memorandum from QUEST Partnership Manager Brooke A. Myhre, dated May 29, 2003, reporting on the Competition Policy Role/Strategies for “Contracting-In”, as requested during budget deliberations. [27] Memorandum from Budget Director Larry Lisenbee, dated June 2, 2003, recommending acceptance of the City-Wide Position Vacancies Report and the Administration’s position that the elimination of funding for the remaining vacant positions (after Tier I and II budget actions) should not be used as a reduction strategy for 2003-2004. [28] Memorandum from Director of Public Works Katy Allen, dated May 27, 2003, reporting on the status of the McLaughlin Avenue and Senter Road underground utility projects, as requested during budget session of May 21, 2003. [29] Memorandum from Director of Public Works Katy Allen, dated May 27, 2003, reporting on the status of the McKee/Toyon underground utility project, as requested during budget session of May 21, 2003. [30] Memorandum from Director of Planning, Building and Code Enforcement Stephen M. Haase, and Budget Director Larry Lisenbee, dated June 2, 2003, reporting on the Neighborhood Clean Up event, as requested during budget session of May 12, 2003. [31] Memorandum from City Manager Del Borgsdorf, and Redevelopment Agency Executive Director Susan Shick, dated June 4, 2003, recommending acceptance on the work of the Downtown Marketing Collaborative in response to the direction of the Mayor’s June 2002 Budget Message including its recommendations concerning measurement and collaboration. [32] Memorandum from Director of Transportation James R. Helmer, dated May 28, 2003, reporting on the “Pedestrian and Bicycle Facilities” grant program and funding for the “Bike/Ped Program Management”, as requested during budget deliberations. [33] Memorandum from Director of Aviation Ralph G. Tonseth, dated June 4, 2003, recommending revisions to the 2003-2004 Adopted Operating Budgets in regard to the Airport Environmental Management Core Services. [34] Memorandum from Director of Planning, Building and Code Enforcement Stephen M. Haase, dated June 6, 2003, recommending amendments to the 2003-2004 Fees and Charges Report adding new fees for enhanced service options and clarification of plan check service options in the Building Division. [35] Memorandum from Budget Director Larry Lisenbee, and Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated June 3, 2003, recommending approval of the Happy Hollow Park & Zoo project, and the revisions to the 2003-2004 Proposed Capital Budget for the Parks and Recreation Bond Projects Fund to reflect the revised project schedule. [36] Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated June 3, 2003, transmitting the Health Neighborhoods Venture Fund Advisory Committee’s recommendations for use of 2003-2004 Funds. [37] Memoranda from Budget Director Larry Lisenbee, dated June 3, and June 9, 2003, recommending approval of amendments to the 2003-2004 Proposed Operating and Capital Budgets, and transmitting replacement pages to MBA #37. [38] Memorandum from Budget Director Larry Lisenbee, dated June 5, 2003, reporting on the General Fund Capital Project Tracking Log for Potential Funding Restoration, as requested during budget deliberations. [39] Memorandum from Economic Development Director Paul Krutko, dated May 23, 2003, recommending the acceptance that the City Manager’s Development Cabinet be charged with the review of any new proposed regulations. [40] Memorandum from Economic Development Director Paul Krutko, dated May 22, 2003, reporting on the Workforce Investment Act Funding for FY 2003-2004, as requested during the budget session of May 12, 2003. [41] Memorandum from Director of Public Works Katy Allen, dated June 3, 2003, reporting on the street improvements for the Civic Center, as requested during the budget session of May 22, 2003. [42] Memorandum from Director of Environmental Services Carl W. Mosher, dated May 28, 2003, reporting on the Municipal Water System Operating Budget, as requested during the budget session of May 22, 2003. [43] Memorandum from Director of Transportation James R. Helmer, dated June 4, 2003, reporting on the potential liability impact of reductions to the Sidewalk Repair Grant Program, as requested during budget deliberations. [44] Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated June 5, 2003, reporting how the Mayfair Community Center operations will be affected by the Proposed Budget and what are the services provided at the Center by the CBOs in the area, as requested during budget deliberations. [45] Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated May 29, 2003, reporting on the Strong Neighborhoods Initiative efforts during the current economic climate, as requested during budget deliberations. [46] Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated June 3, 2003, reporting detailed attendance levels at all Youth Centers throughout San José and the impact of proposed reductions, as requested during budget deliberations. [47] Memo