MINUTES OF THE CITY COUNCIL

SAN JOSE, CALIFORNIA TUESDAY, NOVEMBER 25, 2003

The Council of the City of San Jose convened in Regular Session at 9:31 a.m. in Council Chambers at City Hall.

Present: Council Members: Campos, Chavez, Chirco, Cortese, Dando, Gregory, LeZotte, Reed, Williams, Yeager

Absent: Council Members: Gonzales (excused).

Upon motion unanimously adopted, the City Council recessed to Closed Session at 9:34 a.m. in Room 600 to (A) confer with Labor Negotiator pursuant to Government Code Section 54957.6, involving City Negotiater – City Manager designee Alex Gurza and (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 10:42 a.m. and reconvened at 1:41 p.m. in Council Chambers, City Hall.

Present: Council Members: Campos, Chavez, Chirco, Cortese, Dando, Gregory, LeZotte, Reed, Willliams, Yeager.

Absent: Council Members: Gonzales (excused).

Invocation (District 10)

Pastor Kyle Windsor, South Valley Christian Church delivered the Invocation.

Pledge of Allegiance

Vice Mayor Dando led the Pledge of Allegiance.

Orders of the Day

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

CEREMONIAL ITEMS

1.1 Presentation of a proclamation declaring December 1, 2003, as World AIDS Day in San José. (Disability Advisory Commission)

Documents Filed: None.

Discussion/Action: Vice Mayor Dando was joined at the podium by Council Member LeZotte to present a proclamation to the Chair of the Disability Advisory Committee Carl Vitt, declaring December 1, 2003 as World AIDS Day in San José with this year’s theme: “Do You Have The Time?” Carl Vitt thanked the Mayor and Council for their acknowledgement and support towards educating the community of San José and advocating the awareness of AIDS and invited the community to attend the World AIDS Celebration on December 1, 2003 at the Neil A. Christie Living Center at 2pm.

1.2 Presentation of a commendation to La Oferta Newspaper for its 25^th anniversary and its role in preserving the history of San José. (Reed)

Documents Filed: None.

Discussion/Action: Council Member Reed joined Vice Mayor Dando at the podium to present a commendation to Frank and Mary Andrati of La Oferta Newspaper in honor of its 25^th Anniversary and its role in preserving the history of San José. Frank Andrate accepted the commendation and thanked Council Member Reed and Council for the honor of the commendation and thanked the City of San José for their continued support.

1.3 Presentation of a photograph of Felix Buelna former Alcade of San José. (Reed)

Documents Filed: None.

Discussion/Action: Council Member Reed joined Vice Mayor Dando in inviting Jose Pantoja and Pat Ellis to present a photograph of Felix Buelna, former Alcade of San José. Jose Pantoja presented a gift to Pat Ellis in honor of the Buelna Family and their contributions to the History of San José.

1.4 Presentation of a commendation to the Century Theaters for their contributions to the YMCA and Next Door, Solutions to Domestic Violence. (Dando)

(Rules Committee referral 11/19/03)

Documents Filed: None.

Discussion/Action: Vice Mayor Dando presented a commendation at the podium to Vice President of Marketing of Century Theaters Nancy Klaskie in honor of Century Theaters for their ongoing contributions to the YMCA and Next Door Solutions to Domestic

Violence and their continued business in San José. Nancy Klaskie thanked the Mayor and Council for the honor of the commendation and thanked the City of San José for their support in making Century Theaters a success.

1.5 Presentation of a commendation to Westfield Shoppingtown Oakridge and Valley Fair for its annual “Westfield Works Wonders” event where non-profit organizations receive all the proceeds and are asked to sell tickets to this holiday shopping kick-off. Last year’s Westfield Works Wonders raised over $61,000, which benefited many of our San Jose schools. (Dando, Yeager)

(Rules Committee referral 11/19/03)

Documents Filed: None.

Discussion/Action: Vice Mayor Dando was joined at the podium by Council Member Reed to present a commendation to Phillipe Saint Pierre of Westfield Shoppingtown Oakridge and Valley Fair in honor of its annual “Westfield Works Wonders” event where non-profit organizations receive all proceeds and are asked to sell tickets to this holiday shopping kickoff. Westfield Shoppingtown Oakridge and Valley Fair were acknowledged for last year’s Westfield Works Wonders where they helped raise over $61,000 to help benefit many San José schools and for raising over $100,000 at this years’ event. Phillipe Saint Pierre thanked the Mayor, Council and the Community of San José for participating in the event and making it such a success.

CONSENT CALENDAR

Upon motion by Council Member Williams, seconded by Council Member Reed, and unanimously carried, the Consent Calendar was approved and the below listed actions were taken as indicated. Vote: 10-0-1-0. Absent: Gonzales.

2.1 Approval of City Council Minutes for:

(a) Regular meeting of August 26, 2003

(b) Joint Council/Redevelopment Agency Board meeting of August 26, 2003

(d) Regular meeting of September 9, 2003

(e) Regular meeting of September 16, 2003

(f) Joint Council/Redevelopment Agency Board meeting of September 16, 2003

Documents Filed: (1) Regular meeting minutes of August 26, 2003. (2) Joint Council/Redevelopment Agency Board meeting minutes of August 26, 2003. (3) Regular meeting minutes of September 2, 2003. (4) Regular meeting minutes of September 9, 2003. (5) Regular meeting minutes of September 16, 2003. (6) Joint Council/Redevelopment Agency Board meeting minutes of September 16, 2003.

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

2.3 Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with the Santa Clara Valley Water District (District) for cost sharing associated with implementation of water conservation programs in 2003-2004, under which the City will receive an amount not to exceed $362,500 from the District, and the District will receive an amount not to exceed $446,847 from the City. CEQA: Not a Project. (Environmental Services)

(Deferred from 10/28/03 – Item 2.5 and 11/18/03 – Item 2.3)

Documents Filed: Memorandum from Director of Environmental Services Carl Mosher, dated October 6, 2003, recommending approval of said agreement. (2) Letter from the Treatment Plant Advisory Committee, dated October 9, 2003, recommending approval of Staff’s recommendations.

Discussion/Action: Resolution No. 71839, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute An Agreement with the Santa Clara Valley Water District for Implementation of Water Conservation Programs for 2003-2004”, was adopted. Vote: 10-0-1-0. Absent: Gonzales.

2.4 Adoption of the appropriation ordinance and amendments in the services for Redevelopment Capital Projects Fund (City-side Redevelopment Fund):

(a) Increase the appropriation to the Department of Transportation for the Santa Teresa Boulevard Median Island Project by $27,177;

(b) Increase the appropriation to the Public Works Department for the Rincon Pump Station by $118,000;

(d) Increase the appropriation to the Public Works Department for the Monterey Pedestrian Streetlight Design Project by $75,680;

(e) Increase the appropriation to the Public Works Department for the Center for Performing Arts Improvements Project by $35,896; and

(f) Decrease the Ending Fund Balance by $313,967.

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

Documents Filed: Memorandum from Budget Director Larry D. Lisenbee, dated November 3, 2003, recommending the adoption of said appropriation ordinance and said amendments.

Discussion/Action: Ordinance No. 27022, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26916 to Appropriate Moneys in the Service for Redevelopment Capital Projects Fund for Various Projects; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, was adopted. Vote: 10-0-1-0. Absent: Gonzales.

2.5 Adoption of a resolution approving a change to the Project & Program Arts Grant Program by reducing the maximum grant amount in the Project & Program Arts Grant Program from $30,000 to $18,000 for FY 2004-05, in order to be better aligned with the amount of funds available to support arts grants. CEQA: Not a Project. (Conventions, Arts and Entertainment)

Documents Filed: None.

Discussion/Action: This item was renumbered to Item 5.2 (b).

2.6 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2003-2004 #6, and authorization for the Director of General Services to execute the purchase orders. CEQA: See memo for CEQA designation(s). (General Services)

Documents Filed: Memorandum from Director of General Services Jose Obregon, dated November 3, 2003, recommending the approval of said award.

Discussion/Action: The award of said open purchase order for FY 2003-2004 #6 was approved and execution of the purchase orders authorized. Vote: 10-0-1-0. Absent: Gonzales.

2.7 Adoption of a resolution authorizing the Director of General Services to:

(a) Execute a one-year agreement with two, one-year options to renew with Silicon Valley Security and Patrol, Inc. for security guard services for the Department of Transportation (DOT), with a total first year compensation not to exceed $389,191;

(b) Execute a one-year agreement with two, one-year options to renew with Silicon Valley Security and Patrol, Inc. for security guard services for Parks, Recreation and Neighborhood Services Department (PRNS), with a total first year compensation not to exceed $81,689;

(c) Execute a one-year agreement with two, one-year options to renew with National Security Industries for security guard services for the General Services Department (GSD), with a total first year compensation not to exceed $105,783;

(d) Execute a one-year agreement with two, one-year options to renew with National Security Industries for security guard services for the Environmental Services Department/Water Pollution Control Plant (ESD/WPCP), with a total first year compensation not to exceed $180,940;

(e) Execute change orders to each of the four one-year agreements for a contingency amount not to exceed 10% of the first year compensation in the event that additional security hours are required due to unforeseen circumstances, without further City Council action other than the appropriation of necessary funding; and

(f) Execute each of the options to renew on all four agreements without further City Council action other than the appropriation of necessary funding.

CEQA: Not a Project. (General Services)

Documents Filed: (1) Memorandum from Director of General Services Jose Obregon, dated November 6, 2003, recommending the adoption of said resolution. (2) Letter from the Treatment Plant Advisory Committee, dated November 13, 2003, recommending approval of Staff’s recommendations.

Discussion/Action: Resolution No. 71840, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of General Services to Execute Various Agreements for Security Guard Services”, was adopted. Vote: 10-0-1-0. Absent: Gonzales.

2.8 Approval to reject the bids for the San José City Hall and Annex New Fire Alarm System Project due to non-clarity in the contractor submittals of the Schedule of Quantities, and authorization for the Director of General Services to re-advertise and re-bid the project. CEQA: Exempt, PP03-08-262. Council District 3. (General Services/Public Works)

Documents Filed: Memorandum from Director of General Services Jose Obregon and Director of Public Works Katy Allen, dated October 29, 2003, recommending approval of said rejection of bids for the San José City Hall and Annex New Fire Alarm System Project.

Discussion/Action: The said rejection of bids for the San José City Hall and Annex New Fire Alarm System Project was approved. Vote: 10-0-1-0. Absent: Gonzales.

2.9 Adoption of a resolution authorizing the City Manager to execute:

(a) An agreement between SBC California and the City of San José, for 311 services, for an annual maximum compensation of $89,400.48; and

(b) Annual extensions of the agreement without further City Council approval other than the appropriation of funding.

CEQA: Not a Project. (Information Technology)

Documents Filed: Memorandum from Chief Information Officer Wandzia Grycz, dated October 29, 2003, recommending the adoption of said resolution.

Discussion/Action: Resolution No. 71841, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Execute An Agreement With SBC California to Provide 311 Services in An Amount Not to Exceed $89,400.48”, was adopted. Vote: 10-0-1-0. Absent: Gonzales.

2.10 (a) Approval of an agreement with RBF Consulting for Preparation of an Environmental Impact Report for the Almaden Youth Sports Complex (GP10-T-02) in the amount of $294,000.

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

(1) Establish an appropriation to the Planning, Building and Code Enforcement Department for the Almaden Youth Sports Complex Environmental Impact Report Project in the amount of $194,000.

(2) Decrease the Ending Fund Balance appropriation by $194,000.

(1) Establish an appropriation to the Planning, Building and Code Enforcement Department for the Almaden Youth Sports Complex Environmental Impact Project in the amount of $100,000.

(2) Decrease the Contingency Reserve appropriation by $100,000.

CEQA: Not a Project. Council District 10. (Planning, Building and Code Enforcement/City Manager’s Office)

Documents Filed: Memorandum from Director of Planning, Building & Code Enforcement Stephen Haase and Budget Director Larry D. Lisenbee, dated November 17, 2003, recommending approval of said agreement, said appropriation ordinance amendments.

Discussion/Action: Council Member Chavez asked Staff if the strategy used is related to utilizing the contingency fund appropriations and how and who would be paid back as part of the plan that was put forward. Vice Mayor Dando stated when the community group pays back the money Council forwards to them, the General Fund should then be paid back. Council Member Chavez directed Staff to ensure $100,000 be paid back to the contingency reserve fund from the Almaden Youth Association. Ordinance No. 27023, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26916 to Appropriate Moneys in the Council District 10 Construction and Conveyance Tax Fund for the Almaden Youth Sports Complex Project; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption” and Ordinance No. 27024, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26916 to Appropriate Moneys in the General Fund for the Almaden Youth Sports Complex Project; And Providing That This Ordinance Shall Become Effective Immediately Upon Adoption” were adopted with direction for Staff to ensure $100,000 would be paid back to the Contingency Reserve Fund from the Almaden Youth Association. Vote: 10-0-1-0. Absent: Gonzales.

2.11 Report on bids and take appropriate action based on the evaluation of bids for the Noble Park Play Area Renovation Project, and approval of a five percent contingency. CEQA: Exempt, PP03-09-284. Council District 4. (Public Works/Parks, Recreation and Neighborhood Services)

Documents Filed: None.

Discussion/Action: This item was deferred to December 9, 2003.

2.12 Report on bids and award of contract for the construction of the Redmond Avenue Median Island Improvements to the low bidder, HSR, Inc., to include the base bid and Add Alternate No. 1 in the amount of $220,596, and approval of a contingency in the amount of $12,000. CEQA: Exempt, PP02-12-382. Council District 10. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated November 3, 2003, recommending the approval of said report on said bids and said contract.

Discussion/Action: The award of said contract to the low bidder, HSR, Inc was approved with related contingency. Vote: 10-0-1-0. Absent: Gonzales.

2.13 Report on bids and take appropriate action based on the evaluation of bids for the Plaza de Cesar Chavez Electrical Upgrades Project, and approval of a fifteen percent contingency. CEQA: Exempt, PP03-06-202. Council District 3. (Public Works/Parks, Recreation and Neighborhood Services)

(Deferred from 11/18/03 – Item 2.20)

Documents Filed: None.

Discussion/Action: This item was deferred to December 9, 2003.

2.14 (a) Acceptance of travel and lodging expenses from Cisco Systems to the City of San José for a City representative to attend the Cisco Public Services Summit in Stockholm, Sweden and Oslo, Norway, from December 8 to December 12, 2003 during Nobel Week 2003.

(b) Designation of Mayor Ron Gonzales to represent the City of San José and approval of Mayor Gonzales’ travel to Stockholm, Sweden and Oslo, Norway, from December 8 to December 12, 2003 to attend and speak at the Cisco Public Services Summit @ Nobel Week 2003, funded entirely by Cisco Systems, Inc.

(City Manager’s Office)

(Rules Committee referral 11/19/03)

Documents Filed: Memorandum from City Manager Del D. Borgsdorf, dated November 17, 2003, recommending the acceptance of said travel and lodging expenses and said designation.

Discussion/Action: The acceptance of said travel and lodging expenses and said designation was approved. Vote: 10-0-1-0. Absent: Gonzales.

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – November 12, 2003

Vice Mayor Dando, Chair

Documents Filed: The Report of the Rules Committee for November 12, 2003.

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

(b) City Council

(1) Review November 25, 2003 Draft Agenda

The Committee recommended approval of the November 25, 2003 City Council agenda with three additions.

(2) Add New Items to November 18, 2003 Amended Agenda

· Mayor and Council Member Requests

· City Manager Requests

· City Attorney Requests

· City Clerk Requests

The Committee recommended two additions to the November 18, 2003 City Council agenda.

(3) List of Reports Outstanding. Attachment: Report from the City Manager’s Office, dated November 10, 2003, listing five staff reports outstanding for the November 18, 2003 Council agenda.

The Committee noted and filed the City Manager’s report listing five staff reports outstanding for the November 18, 2003 Council agenda.

(1) State – There was no report.

(2) Federal – There was no report.

(d) Meeting Schedules

The Committee recommended a Rule-in-Lieu meeting to be held November 26, 2003.

(e) The Public Record. Attachment: Memorandum from City Clerk Patricia L. O’Hearn, dated November 6, 2003, transmitting items filed for the Public Record for the period October 20 – November 4, 2003.

The Committee directed the City Attorney and the City Manager to present at next weeks’ Rules Committee meeting their comments on the proposed amendments to the Comprehensive Land Use Plan which affect local airports. The Committee noted and filed the Public Record.

(f) Appointment to Boards, Commissions and Committees –There were none.

(g) Rules Committee Reviews, Recommendations and Approvals

(1) Report back on workload assessment to develop an ordinance to allow disability payments to be excluded from income taxes. Attachment: Memorandum from City Attorney Richard Doyle, dated October 21, 2003, recommending that Rules Committee review the workload assessment for the development of an ordinance that would allow disability payments to police officers and fire fighters to be excluded from taxable income.

In order to begin the analysis of the proposal regarding disability payments, the Committee directed the City Attorney to research the requirements of the Labor Code regarding payment of worker’s compensation benefits and whether the City has the authority to make payments in lieu of worker’s compensation benefits and to report their findings to Rules Committee on December 10, 2003.

(h) Oral communications –There were none presented.

(i) Adjournment

The meeting adjourned at 2:25 P.M.

Discussion/Action: Upon motion by Council Member Campos, seconded by Council Member Reed, and unanimously carried, the Rules Committee Report and Actions of November 12, 2003 were accepted. Vote: 10-0-1-0. Absent: Gonzales.

3.3 Report of the Making Government Work Better Committee – November 12, 2003

Council Member Campos, Chair

Documents Filed: The report of the Making Government Work Better Committee for November 12, 2003.

(a) Public Works/Office of Equality Assurance Performance Update. Attachment: Memorandum from Director of Public Works Katy Allen and Director of Project Management Bill Ekern, dated November 3, 2003, transmitting the Office of Equality Assurance Update Report.

The Committee accepted the Staff report.

(b) Budget Document Reorganization and Consolidation Update. Attachment: Memorandum from Budget Director Larry D. Lisenbee, dated October 31, 2003, recommending the approval of a proposed format reorganization of the Operating Budget document, as displayed in the attachments to this memorandum for use in the 2004-2005 Proposed Operating Budget process.

The Committee accepted the Staff report.

(c) City Service Area (CSA) Performance Measurements Follow-up Report. Attachment: Memorandum from Brooke A. Myhre, dated November 3, 2003, recommending the direction for the Administration to continue implementation of a process for twice-yearly reporting of City Service Area (CSA) level performance data including the following format elements: (1) A brief Executive Summary including key measurement data from each CSA with graphic information and key messages related to achievement of CSA Business Plan goals and targets; and, (2) A detail report of all CSA level performance measure data including explanatory information regarding the performance achieved.

The Committee accepted the Staff report.

(d) City Clerk One-Stop Shop follow-up report. Attachments: (1) Memorandum from City Clerk Patricia L. O’Hearn, dated October 2, 2003, recommending the acceptance of her Staff report. (2) Hardcopy survey of Laptop computers for City Council Meetings, dated September 2003. (3) Board of Supervisors for the City and County of San Francisco Full Board Agenda, dated August 19, 2003. (4) Board of Supervisors for the City and County of San Francisco Meeting Minutes, dated August 19, 2003.

The Committee accepted the Staff report.

(e) Oral petitions

None.

(f) Adjournment

The Committee was adjourned at 3:53 P.M.

Discussion/Action: Upon motion by Council Member Campos, seconded by Council Member Reed, and unanimously carried, the Making Government Work Better Committee Report and Actions of November 12, 2003 were accepted. Vote: 10-0-1-0. Absent: Gonzales.

3.4 Appointments to the following Boards and Commissions:

(a) Federated Retirement Board : 1 employee/member to a four year term ending 11/30/07.

(b) Police & Fire Retirement Board: 1 Fire Department employee/member to a four year term ending 11/30/07.

(City Clerk)

Documents Filed: (1) Supplemental memorandum from City Clerk Patricia L. O’Hearn, dated November 24, 2003, providing the nominated candidates for appointments to various boards and commissions. (2) Memorandum from City Clerk Patricia L. O’Hearn, dated November 12, 2003, recommending approval of the said appointments.

Discussion/Action: Vice Mayor Dando requested City Clerk Patricia O'Hearn to report on the results of the Council appointees for various boards and commissions. City Clerk O'Hearn stated the certification of the employee election held the day before and the ballot count taken in her office, the names within her memorandum were the proposed appointments to the Retirement Boards and to the Suggestion Award Commission and the results were as follows; for the employee representative to the Federated Board of Administration there were four candidates and the votes casted were listed in the highest vote to the lowest and she reminded the Mayor and Council that they were not obligated to appoint from the provided list and not necessarily the highest vote-getter and the results for the Fire Department Representative was a single incumbent as shown in the memorandum, and finally the results for the Employee Representative for the Suggestion Award Commission were four candidates with a total of four appointments available.

Vice Mayor Dando suggested Council review each category individually. Council Member Williams stated information had been received pertaining to some questions relating to campaigning issues and moved to defer the appointment of the Federated Employee representative to December 2, 2003, so further review of the issues can be completed. Council Member Reed seconded the motion, and unanimously carried. Vote: 10-0-1-0. Absent: Gonzales.

Council Member Williams moved approval of appointing Mark Skeen as the Fire Department Representative of the Police and Fire Board of Administration, the motion was seconded by Council Member Reed, and unanimously carried. Vote: 10-0-1-0. Absent: Gonzales.

Council Member Williams moved approval of Stephanie Menzies, Bridget A. McKay and Margaret L. Martinez (alternate) to be appointed as the Employee Representatives for the Suggestion Award Commission, seconded by Council Reed, the motions were unanimously carried. Vote: 10-0-1-0. Absent: Gonzales.

3.5 Interview Civil Service applicants and appointment of three Commissioners to fill four-year terms ending December 1, 2007. (City Clerk)

(Rules Committee referral 11/19/03)

Documents Filed: Memorandum from City Clerk Patricia L. O’Hearn, dated November 20, 2003, providing the Civil Service Commission interview applicants.

Discussion/Action: Council interviewed the applicants and on the first ballot, unanimously appointed Leon Louie, Richard Giovannetti and Sharon Hightower to fill four-year terms ending December 1, 2007 for the Civil Service Commission. Vote: 10-0-1-0. Absent: Gonzales.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.3 (a) Approval of the draft Request for Proposals (RFP) for the management and operation of the San José Convention Center and Cultural Facilities; and

(b) Approval of revised timeline for the RFP process.

CEQA: Not a Project. (City Manager’s Office)

Documents Filed: (1) Memorandum from Mayor Gonzales and Council Members Reed and Chavez, dated November 24, 2003, recommending the approval of said draft Request for Proposals and said revised timeline for the RFP process with direction contained therein. (2) Supplemental memorandum from Deputy City Manager Kay Winer, dated November 21, 2003, providing additional material for Appendix II-Wage Policies. (3) Memorandum from Deputy City Manager Kay Winer, dated November 14, 2003, recommending approval of said draft Request for Proposals and approval of said revised timeline. (4) Hardcopy draft of Request for Proposals for the San José Convention and/or Cultural Facilities Management and Operation Agreement.

Discussion/Action: Council Member Reed moved approval of a memorandum from Mayor Gonzales and Council Members Chavez and Reed, dated November 4, 2003 with the recommendations and directions contained therein. Phillip Bump spoke on the issue.

Council Member Reed expressed support of his motion and stated the reference to the 10 points in his memorandum as it relates to the cost of operation and bringing down the subsidy while increasing the occupancy in the revenue produced and serving the San Jose community and commented he would like to see higher performance for less money and the memorandum also responds to a variety of combinations of the proposal, not just the Convention and Cultural facilities and also to bring someone in with an industry perspective and someone from the City Labor Alliance to assist in the review process to enable the City to gain a broad range as to what can work and better the City. He stated the memorandum also clarifies the local policy to be a 5% credit in the evaluation and encourages people to inform Council as to what changes are needed, in regards to the Sales and Marketing department, the memorandum ensures the elimination of overlapping and support for getting better results. Council Member Chavez seconded the motion.

Council Member Chavez asked Staff to ensure the scope of service is part of the bidder’s conference or however Staff finds it to be most appropriate to enable proposers to have a clear understanding of how the current operation functions. Deputy City Manager Kay Winer stated the purpose of the pre-proposal bidder’s conference is allow the opportunity to speak with proposers and ensure they are clearly aware of the City’s existing arrangement with the conventions and visitors bureau.

City Attorney Richard Doyle referenced Item #8 pertaining potential operating subsidy and stated that any long-term operating subsidy could create a problem and produce a debt limitation issue to which the charter allows the City to budget on an annual basis, he wanted to ensure Council was aware of the long-term restrictions. Council Member Cortese asked Staff how the competition policy would be applied to the Civil Service employees within the recommendation. Deputy City Manager Winer stated that a panel comprised of someone from the industry and the Labor Alliance will administer the policy.

Council Member Williams referenced Item 6 of the report pertaining to the evaluation procedure that will evaluate how much money the City will save and asked Staff how will they determine if what has been saved by the City in this venture is worthwhile and a success. Deputy City Manager Winer stated the evaluation will be completed by requesting each proposer to provide a 5-year performa report and then compare them against the City’s 5-year past history at the facilities, thus matching up past revenues with the current.

Council Member Gregory stated he did not feel Staff was looking at the cost reduction of these facilities but rather the greater impact on San José in terms of the types of conventions, revenues and streams and he didn’t get the sense that Staff was looking at the great economic sense of it all. Deputy City Manager Winer stated when they look at revenue streams they are not looking at how much they fill up the convention centers or theaters but rather the type of activities that are being booked and what kind of revenues they generate and how many hotel rooms they utilize and overall, what they are bringing to San José, to which each of these have impacts on the income streams.

City Manager Borgsdorf stated asked for clarification on the term of “all revenues” pertaining to Item #8 of Council’s memorandum. Council Member Reed stated the terms “all” is too broad of a term but his intention was to speak to all revenues of the convention center building that goes directly to the building revenues and theater rental revenues and all that make it possible to have an operating account, so employees do not have to create an operating fund in order to begin.

Council Member Chavez asked the maker of the motion to reference out Item #8 from the memorandum and stress the importance of the greater economic impact and value of the convention center proposals. Council Member Reed agreed to stress the importance of that issue for Item #8 of his memorandum. Council Member Cortese asked for the maker of the motion to clarify if the intention of the motion is to give direction on the private oversight of civil service employees as described and to allow Staff the flexibility to consider that matter. Council Member Reed agreed with the clarification.

On a call for the motion, the draft Request for Proposal (RFP) for the management and operation of the San José Convention Center and Cultural Facilities and the revised timeline for the RFP process was approved in the form of a memorandum from Mayor Gonzales and Council Members Reed and Chavez, dated November 24, 2003, recommending the approval of the staff recommendations for the Request for Proposal for the Convention Center and Cultural Facilities with the following changes: (1) Specify that our primary objectives are decreasing our costs of operation and increasing the occupancy and revenue producing capabilities of the facilities. Include a requirement for a statement on the term sheet (RFP section 13, Part A 1) of the projected amount of money the City could save from the annual operating subsidy if the proposal is accepted. (2) Specify how proposals will be evaluated and compared to each other if submittals are made for different combinations of facilities as allowed under RFP Options (RFP section 2A), (3) Include someone from outside the City with industry experience and someone representing the City Labor Alliance on the reviewing panel (RFP section 3), (4) For this RFP, specify that the local business preference policy gives a 5 percent point credit in the evaluation of the proposals (RFP section 3), (5) Proposers are encouraged to recommend changes to any of our existing forms, rates, arrangements, policies or contracts so that innovative methods are more efficient operations can be considered. Whether or not to make changes will be decided by the Council as part of the approval of a preferred proposer (RFP section 7, Agreement Considerations, and section 9 Scope of Services, Existing Agreements), (6) Add to the Evaluation Procedure and Criteria (RFP section 15) as the first bullet point: “The amount of money the City could save from its operating subsidy.” (7) Specify that all Civil Service employees must be absorbed by the City or the proposer, but proposals may include innovative employment relationships such as leasing of existing City employees (as has been done between the City and the Redevelopment Agency and History San José). If a proposal for employee leasing covers Civil Service employees, the proposer must specify how legal issues relating to workers’ compensation and supervisory liability will be resolved (RFP section 7, Agreement Considerations), (8) Specify that the City will create an operating account and that all revenues will be deposited into the account to be used to cover the cost of operations. Additional funds will be deposited by the City, if required, as an operating subsidy. The proposals must include the amount of the proposed operating subsidy required, if any, and the schedule for deposit into the operating fund (RFP section 9, Financial Responsibilities), (9) Specify in the Scope of Services, under Sales and Marketing, that the sales and marketing function for the Convention and Visitors Bureau, merging Bureau and CAE staff to provide a more streamlined sales and marketing approach, or other options that eliminate overlapping marketing and sales functions and provide better results (RFP section 9), (10) Create a process for making existing staff available to talk to the proposers to identify and discuss the history and conditions of furniture, fixtures, and equipment so that proposers have the information necessary to prepare a Preventative Maintenance Plan (RFP section 9, Financial Responsibilities) and to summarize capital improvements that may be required (RFP section 13 A7).In regards to #7 of the memorandum, Staff directed to provide a Civil Service Model as a comparison to any models presented and pertaining to the Scope of Services, for Staff to ensure as part of the bidders’ conference that Staff give proposers a clear understanding of how current operations function. Staff directed to separate #8 from the memorandum to reference out the importance of the greater economic impact and value of the Convention Center proposals. Vote: 10-0-1-0. Absent: Gonzales.

4.4 Adoption of a resolution approving the Economic Development Strategy. CEQA: Not a Project. (Economic Development)

Documents Filed: None.

Discussion/Action: This item was deferred to December 2, 2003.

4.5 Approval of the action plan responding to concerns regarding Predatory Lending. CEQA: Not a Project. (Housing)

Documents Filed: Memorandum from Director of Housing Leslye Corsiglia, dated November 3, 2003, recommending approval of the Predatory Lending Action Plan prepared by the Housing Department.

Discussion/Action: Upon motion by Council Member Williams, seconded by Council Member Chavez, and unanimously carried, the Predatory Lending Action Plan was approved. Vote: 10-0-1-0. Absent: Gonzales.

4.6 PUBLIC HEARING ON HISTORICAL PROPERTY CONTRACT for the Twohy Building, City Landmark No. HL01-134, located at 200-210 South First Street. (CIM/Twohy LLC, Owner). CEQA: Exempt. (Planning, Building, and Code Enforcement)

MA 03-002 - District 3

Documents Filed: None.

Discussion/Action: This item was deferred to December 2, 2003.

RECREATION & CULTURAL SERVICES

5.1 Report of the All Children Achieve Committee – November 13, 2003

Council Member Yeager, Chair

Documents Filed: Report of the All Children Achieve Committee of November 13, 2003.

(a) Report on Public Safety and Truancy. Attachment: Memorandum from Acting Chief of Police Thomas R. Wheatley and Director of Parks, Recreation & Neighborhood Services Sara Hensley, dated October 31, 2003, providing an update of the collaborative efforts of the City, School Districts, Santa Clara County and its other partners in reducing truancy among San José youth; Youth related public safety information, and; Teen pregnancy information.

The Committee accepted the report.

(b) San José After School Program Transition. Attachment: Memorandum from Director of Parks, Recreation & Neighborhood Services Sara Hensley, dated October 31, 2003, providing a status report on the implementation plan of the San José After School program.

The Committee accepted the report.

(c) Report on Library’s Role in Helping Children Achieve. Attachment: Memorandum from Library Director, Jane Light, dated October 29, 2003, recommending the acceptance of the Report on Library’s Role in Helping Children Achieve. – The Committee accepted the report.

(d) Civic Center Childcare Update – Deferred to December.

(e) Oral petitions – None.

(f) Adjournment –The meeting was adjourned to 3:05 P.M.

Discussion/Action: Upon motion by Council Member Yeager, seconded by Council Member Chavez, and unanimously carried, the All Children Achieve Committee Report and Actions of November 25, 2003 were accepted. Vote: 10-0-1-0.

5.2 (a) Adoption of a resolution approving the following revisions to the Operating Grant Program:

(1) Set forth in the grant guidelines estimated ranges of reference percentages of operating revenues used in determining grant amounts in each grant category of the Operating Grant Program that reflect more realistically the recent decline in City’s Transient Occupancy Tax revenues (TOT) and the availability of funds for granting;

(2) Revise the revenue period to which the percentages mentioned above refer from a single year, the most recently completed fiscal year at the time of the grant-application deadline, to the average of revenues over the three most recently completed fiscal years at the time of the application deadline.

(3) Extend the basic method for determining recommended grant awards used in the Artist Organization (AO) and Resident Arts Organization (RAO) categories to the Professional Arts Institution (PAI) and Resident Arts Institution (RAI) categories, and retire the three-part formula presently used in the PAI and RAI categories.

(4) In the first year of implementation of these revisions, recommend grant awards in the PAI and RAI categories that are the average of the amounts proposed by the review panel without using the three-part formula and the amounts that would have resulted had the three-part formula been in use.

(5) As in the case of the AO and RAO categories, should the review panel recommend that an application in the PAI or RAI categories not be funded as a result of the evaluation, then the panel recommendation for no funding will supersede any potential grant calculations made pursuant to the foregoing criteria.

CEQA: Not a Project. (Conventions, Arts and Entertainment)

(b) Adoption of a resolution approving a change to the Project & Program Arts Grant Program by reducing the maximum grant amount in the Project & Program Arts Grant Program from $30,000 to $18,000 for FY 2004-05, in order to be better aligned with the amount of funds available to support arts grants. CEQA: Not a Project. (Conventions, Arts and Entertainment)

(Renumbered from Item 2.5.)

Documents Filed: None.

Discussion/Action: This item was deferred to December 2, 2003.

5.3 (a) Approval of an extension of the funding term for six months for the G43 Roosevelt Roller Hockey Rink Project – Parks, Recreation and Neighborhood Services.

(b) Approval of an extension of the funding term for one year for the following projects:

(1) G33 Goss Community Facility – Parks, Recreation and Neighborhood Services;

(2) G44 Cypress Senior Center – Parks, Recreation and Neighborhood Services;

(3) G46 O’Connor Park Restroom Building – Parks, Recreation and Neighborhood Services;

(4) Selma Olinder Park – Parks, Recreation and Neighborhood Services;

(5) G48 Elizabeth Street Improvement Project (Phase 1) - Department of Transportation;

(6) G51 Street lighting: Reed Street Pedestrian Corridor Extension – Department of Transportation;

(7) G54 Guadalupe – Washington Alley Reconstruction (C1 & C2) – Department of Transportation ; and

(8) K16 Therapeutic Recreation and Wellness Facility Pre-Development Project - Parks, Recreation and Neighborhood Services.

(c) Approval of an extension and continuation of the funding term, from December 31, 2001 to June 30, 2004, for the F80 East Community Resource Center Project - Society of St. Vincent De Paul, Santa Clara County Council, Fiscal Agent for East Community Resource Center.

Council Districts 1, 3, 4, 5, 6, 7, and 9. SNI: University, Five Wounds, Brookwood Terrace, East Valley/680 Communities, Burbank/Del Monte, and Washington. CEQA: Exempt, PP03-10-324. (Parks, Recreation and Neighborhood Services)

Documents Filed: Memorandum from Director of Parks, Recreation & Neighborhood Services Sara Hensley, dated November 3, 2003, recommending approval of extension of said funding terms.

Discussion/Action: Steven Wilson, Tom Fuge, Ashlee Oh, and Mini Le spoke on the issue. Council Member Yeager commented on his support for Staff;s recommendation and stated he had attended many meetings to discuss this item, today’s motion is to hold the $100,000 for the bathroom at O’Connor Park but is Council is not making the final decision on the matter.

Council Member Yeager referenced the K16 Therapeutic Recreation and Wellness Facility Pre-Development Project and asked Staff what are the long term prospects to assist in building this Wellness Center and to staff it. Director of Parks, Recreation & Neighborhood Services Sara Hensley stated the funding they’ve received allows them the opportunity to respond to disability master pan that mentions the need for some kind of facility that can be used for persons with disabilities and the community this center will affect have stressed the importance and need of this facility. She stated partnerships with organizations such as San José State University (SJSU) to build this type of facility also assists in helping their needs since they have one of the largest numbers of students with disabilities and having the university be a learning facility, they can also assist in helping staff the center and meet the community’s needs and included this step was a necessity to assist in future grant funding for the center for operating costs. Council Member LeZotte commented that the partnership between the City and SJSU was a benefit for both the City and the community of San José to ensure the facility is built accordingly to the strategic plan and stated in past discussions with Congressman Honda and Lofgren, the importance was stressed pertaining to having proof in hand of the success of such a facility and of the partnerships obtained in this venture in order for Congress to pass Bills to assist people with disabilities. Upon motion by Council Member LeZotte, seconded by Council Member Yeager, and unanimously carried, the extensions of said funding terms was approved. Vote: 10-0-1-0. Absent: Gonzales.

5.4 Report on bids and award of contract for the construction of the New Alum Rock Branch Library Project to the low bidder, West Bay Builders, Inc., to include the base bid and Add Alternates Nos. 1, 2, and 4 in the amount of $8,225,000, and approval of a contingency in the amount of $822,000. CEQA: Negative Declaration, H02-064. Council District 5. SNI: East Valley/680 Communities. (Public Works/Library)

Documents Filed: (1) Memorandum from Deputy Director of Parks, Recreation and Neighborhood Services Scott Reese, dated October 15, 2003, recommending approval of a recommendation to defer the construction of a restroom in O’Connor Park and pursue the inclusion of a restroom at Cahill Park. (2) Supplemental memorandum from Director of Public Works Katy Allen and Library Director Jane Light, dated November 17, 2003, providing additional information after bids were opened. (3) Memorandum from Director of Public Works Katy Allen and Library Director Jane Light, dated October 29, 2003, recommending approval of said report on bids and to take appropriate action based on the evaluation of bids for the Alum Rock Branch Library Project and approval of a ten percent contingency. (4) Hardcopy of the Midtown Specific Plan, dated December 1992.

Discussion/Action: The award of said contract to the low bidder, West Bay Building, Inc. was approved with related contingency. Vote: 10-0-1-0. Absent: Gonzales.

TRANSPORTATION SERVICES

6.2 Report on bids and award of contract for the King Road Widening Phase II Project to the low bidder, Grade Tech, Inc., in the amount of $892,743, and approval of a contingency in the amount of $45,000. CEQA: Mitigated Negative Declaration, PP02-11-335. Council District 4. (Public Works/Transportation)

Documents Filed: (1) Supplemental memorandum from Director of Public Works Katy Allen and Director of Transportation James R. Helmer, dated November 17, 2003, providing additional information after bids were opened. (2) Memorandum from Director of Public Works Katy Allen and Director of Transportation, James R. Helmer, dated November 3, 2003, recommending the report on bids and to take appropriation action based on the evaluation of bids for the King Road Widening Phase II Project, and approval of a five percent contingency.

Discussion/Action: The award of said contract to the low bidder, Grade Tech, Inc was approved with related contingency. Vote: 10-0-1-0. Absent: Gonzales.

ENVIRONMENTAL & UTILITY SERVICES

7.1 Report on bids and award of contract for the 60-inch RCP Interceptor Rehabilitation Phase VB Project to the low bidder, Spiniello Companies, Inc. in the amount of $5,675,180, and approval of a contingency in the amount of $600,000.

CEQA: Exempt, PP03-07-243. Council District 4. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated November 3, 2003, recommending a report on bids and award of said contract.

Discussion/Action: The award of said contract to the low bidder, Spiniello Companies, Inc. was approved with related contingency. Vote: 10-0-1-0. Absent: Gonzales.

PUBLIC SAFETY SERVICES

9.1 Approval of an ordinance amending Title 17 of the San José Municipal Code by adding a new Chapter 17.82 relating to fire safety during construction. (City Attorney's Office/Fire/Planning, Building and Code Enforcement)

(Deferred from 10/14/03 – Item 9.1 and 11/18/03 – Item 9.1)

Documents Filed: Memorandum from Council Member Cortese, dated November 25, 2003, recommending an amendment to the proposed ordinance to address projects that are in the “pipeline” or on file in order to protect against financial hardships, the ordinance shall be modified to include language that exempts/grandfathers projects that have a plan check review submitted or on file within 90 days of the second reading of the ordinance, and any application that falls under this exemption shall expire within six months if there is no new activity or submittals as is customary and shall no longer qualify for the aforementioned exemption.

Discussion/Action: Council Member Yeager stressed the importance of initiating the proposed changes into the ordinance to ensure fire safety for local schools and for Staff to return by December 9, 2003 to confirm the deadline dates. Bob Hines spoke on the issue.

Council Member Yeager moved approval of Staff’s recommendation and the amendment contained in the memorandum from Council Member Cortese, dated November 25, 2003, recommending the amendment of the proposed ordinance to address projects that are in the “pipeline” or on file in order to protect against financial hardships. The ordinance shall be modified to include language that exempts/grandfathers projects that have a plan check review submitted or on file within 90 days of the second reading of the ordinance. Any application that falls under this exemption shall expire within six months if there is no new activity or submittals as is customary and shall no longer qualify for the aforementioned exemption, including the direction to Staff to include all projects that have already been permitted and will not fall under the new requirements and for Staff to report back to Council on December 9, 2003 pertaining to any contracting projects that have contacted the City or of any construction projects Staff has been made aware that are in consideration of the “grand-fathering” process, determined upon how far along they are within the process and for Staff to begin the process based on the application date rather than the permit date proposed. The motion was seconded by Council Member Chavez. Council Member Reed asked Staff to clarify which date was to be used as the effective date to count the 90 days from. Director of Planning, Building & Code Enforcement Stephen Haase stated the effective date should be used for the application date. On a call for the question, the motion was passed unanimously, Ordinance No. 27025, entitled: “An Ordinance of the City of San José Amending Title 17 of the San José Municipal Code By Adding a New Chapter 17.82 Relating to Fire Safety During Construction”, was passed for publication. Vote: 10-0-1-0. Absent: Gonzales.

9.2 Public Hearing and approval of the Local Law Enforcement Block Grant (LLEBG) 2003-2005 Spending Plan and adoption of related appropriation actions for Fiscal Year 2003-2004. CEQA: Not a Project. (City Manager's Office/Police)

Documents Filed: None.

Discussion/Action: Upon motion by Council Member Chavez, seconded by Council Member Campos, and unanimously carried, the Public Hearing was held and the Local Law Enforcement Block Grant was approved and Ordinance No. 27026, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26916 to Appropriate Moneys in the Local Law Enforcement Services Fund for the Local Law Enforcement Block Grant; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, was adopted. Vote: 10-0-1-0. Absent: Gonzales.

JOINT COUNCIL/REDEVELOPMENT AGENCY

The Redevelopment Agency Board convened to consider Items 10.1 and 10.2 in a Joint Session at 3:52 P.M.

10.1 Approval of a report on partnering and dispute resolution efforts on construction projects. CEQA: Not a Project. (City Manager's Office/Redevelopment Agency)

Documents Filed: Memorandum from City Manager Del D. Borgsdorf and Executive Director of Redevelopment Agency Susan F. Shick, dated November 3, 2003, recommending acceptance of status report on partnering and dispute resolution efforts.

Discussion/Action: Michael Talia spoke on the issue. Council Member Chavez asked Staff to clarify on training Staff at all levels on dispute resolutions and asked Staff as to the status of the training. Director of Public Works Katy Allen stated the training is for City inspectors and project managers and they hoped to have great success with the program. Council Member Chavez requested Staff to integrate within the reports returning to Council a status report on customer satisfaction with organizations who conduct business with the City. Upon motion by Council Member Chavez, seconded by Council Member Yeager, and unanimously carried, the report on partnering and dispute resolution efforts on construction projects was approved. Vote: 10-0-1-0. Absent: Gonzales.

10.2 Adopt a Statement of Policy and General Rules to guide the City Attorney in the development of a protocol for disclosure of public records under the California Public Records Act. (Reed)

(Rules Committee referral 11/19/03)

Documents Filed: Memorandum from Council Member Reed, dated November 21, 2003, recommending the adoption of a Statement of Policy and General Rules to guide the City Attorney in the development of a protocol for disclosure of public records under the California Public Records Act that is consistent with the Statement of Policy and General Rules contained therein.

Discussion/Action: Pete Campbell and Virginia Holtz spoke on the issue. Council Member Reed stated he had requested for this item to be agendized due to the concerns with the City in regarding compliance and he had realized that in keeping compliant with the laws it can make it more difficult for people to gain access to public records and moved approval the recommendation contained within his memorandum, dated November 21, 2003, recommending the adoption of a Statement of Policy and General Rules to guide the City Attorney in the development of a protocol for disclosure of public records under the California Public Records Act that is consistent with the Statement of Policy and General Rules contained therein. Council Member Williams seconded the motion.

Council Member Chavez asked Staff to take into consideration within the new City Hall to view the importance to enable the public who are seeking public records can do so in a comfortable setting, such as a library and to ensure comfort ability is appropriate for first the City Clerk then the public. On a call for the question, the Statement of Policy and General Rules to guide the City Attorney in the development of a protocol for disclosure of public records under the California Public Records Act was adopted and direction contained in Council Member Reed’s memorandum, dated November 21, 2003 was approved. Vote: 10-0-1-0. Absent: Gonzales.

The Redevelopment Agency Board portion of the meeting adjourned at 4:16 P.M.

Closed Session Report

The case between the Redevelopment Agency Board vs. Fong was dismissed..

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:

None.

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

Tract	Location	Council District	Developer	Lots/Units	Type
9528	North of Aborn Rd., east of Mosher Dr.