CSJ Council Meeting Agenda, Feb. 25, 2003

MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, FEBRUARY 25, 2003

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

Present: Council Members - Campos, Chavez, 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 9:35 a.m. in Room 600 to (A) to conduct public employee performance evaluation pursuant to Government Code Section 54957: Titles: Independent Police Auditor, and City Clerk; (B) to confer with Legal Counsel on anticipated litigation pursuant to Subsection (b) of Government Code Section 54956.9, in one matter regarding significant exposure to litigation, and one matter regarding the initiation of litigation pursuant to Subsection (c) of Government Code Section 54956.9; (C) to confer with Legal Counsel pursuant to Government Code Section 54956.9 under Subsection (a) to discuss existing litigation in the case of Rivera v. City of San José, et al; (D) To Confer with Labor Negotiator pursuant to Government Code Section 54957.6, City Negotiation: City Manager designee Alex Gurza, and the following Employee Organizations: (1) Police Officers Association; (2) International Association of Firefighters, Local 230; (3) Municipal Employees Federation; (4) Confidential Employees Organization; (5) Association of Building and Mechanical and Electrical Inspectors; (6) International Brotherhood of Electrical Workers; (7) Operating Engineers, #3, (8) Association of Maintenance Supervisory Personnel; (9) City Association of Management Personnel.

By unanimous consent, Council reconvened from the Closed Session and recessed at 11:00 a.m. and reconvened at 1:35 p.m. in the Council Chambers.

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

Absent: Council Members - None.

Invocation

Bernal Intermediate School Jazz Band performed songs: St. Louie Blues and Down Roberto’s Way, under the direction of Director Randall Tyler. (District 2)

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 unanimously carried, the Orders of the Day and the Amended Agenda were approved with Item 2.4 deferred to March 11, 2003. Vote: 11-0-0-0.

CEREMONIAL ITEMS

1.1 Presentation of a Black History Month Celebration resolution from the 100 Black Men of Silicon Valley, Inc. to the Mayor and Council. (Mayor)

Documents Filed: None.

Discussion/Action: Mayor Gonzales called to the podium Bill Kendricks, President and Chairman, and 11 board members of Black Men of Silicon Valley, Inc., who presented a resolution of commendation in honor of Black History Month to the Mayor and City Council for their encouragement and support of their mission of improving the quality of life for Afro-American youths and other diverse groups through the enhancement of educational, economic and health and wellness opportunities and commended the City Council of San José, California for continuing to support and enhance diversity, and the objectives, mission and values of the 100 Black Men of Silicon Valley, Inc. in recognizing the accomplishments of Council Members Williams and Gregory. Mayor Gonzales acknowledged and thanked the 100 Black Men of Silicon Valley for their recognition and accomplishments in the community such as scholarships to young Afro-American students.

1.2 Commendations to The Steinberg Group, Banducci Associates Architects, and HDR Architecture Inc., for the vision of the Valley Design Awards they received from The American Institute of Architects Santa Clara Valley Chapters. (Dando)

Documents Filed: None.

Discussion/Action: Mayor Gonzales was joined by Vice Mayor Dando for presentation of commendations to honor the local efforts of architects Roger Stewart from HDR Architecture, Inc., Ernie Yamani and Rob Steinberg from Steinberg Group, David Banducci from Banducci Associates Architects for their award recognition from the American Institute of Architects Santa Clara Valley Chapters for their efforts in creating and enhancing the quality of our communities and environment.

CONSENT CALENDAR

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

2.2 Final adoption of ordinances:

(a) ORD. NO. 26828 – Amends Section 3.28.030.11 of Chapter 3.28 of Title 3 of the San José Municipal Code to revise the cap on final compensation in the Federated City Employees Retirement System.

Documents Filed: Proof of publication of the title of Ordinance No. 26828 executed on February 18, 2003, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26828 was adopted. Vote: 11-0-0-0.

(b) ORD. NO. 26829 – Amends Chapter 3.36 of Title 3 of the San José Municipal Code to provide for the acceptance of plan-to-plan transfers from eligible deferred compensation plans to the Police and Fire Department Retirement Plan for the purpose of purchase of permissive service credit.

Documents Filed: Proof of publication of the title of Ordinance No. 26829 executed on February 18, 2003, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26829 was adopted. Vote: 11-0-0-0.

(c) ORD. NO. 26830 – Amends Chapter 3.28 of Title 3 of the San José Municipal Code to provide for the acceptance of plan-to-plan transfers from eligible deferred compensation plans to the Federated City Employees Retirement System for the purpose of purchase of permissive service credit.

Documents Filed: Proof of publication of the title of Ordinance No. 26830 executed on February 18, 2003, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26830 was adopted. Vote: 11-0-0-0.

(d) ORD. NO. 26831 – Amends Chapter 2.08 of Title 2 of the San José Municipal Code to repeal Part 25 and add a new Part 43 to reflect a change in the name of the Commission on Disadvantaged Business Development to the Small Business Development Commission.

Documents Filed: Proof of publication of the title of Ordinance No. 26831 executed on February 18, 2003, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26831 was adopted. Vote: 11-0-0-0.

2.3 Adoption of a resolution authorizing the City Manager to apply for and execute upon receipt, an amendment to the Airport Improvement Grant Agreement #03-06-0226-43 with the Federal Aviation Administration, for costs incurred by the City in connection with the Airport Acoustical Treatment Program in the amount of $100,239. CEQA: Resolution No. 67380, PP03-02-041. (Airport)

Documents Filed: Memorandum from Aviation Director Ralph G. Tonseth, dated February 5, 2003, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71418, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Apply for and Execute Upon Receipt an Amendment to the Airport Improvement Program Grant Agreement With the Federal Aviation Administration in the Amount of $100,239, and to Accept the Additional Grant Award”, was adopted. Vote: 11-0-0-0.

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

(a) Execute the third amendment to the agreement for management of the Airport Common Use Rental Car Bus System, and increase the maximum compensation of this agreement by $50,000, to cover the estimated cost associated with services for off-site compressed natural gas (CNG) fueling, and additional training for the new CNG shuttle bus fleet, scheduled to be online by March 1, 2003; and

(b) Execute the second amendment to the agreement for management of the airport shuttle bus transportation personnel and bus scheduling and increase the maximum compensation of this agreement by $120,000, to cover the estimated cost associated with services for off-site CNG fueling and additional training for the new CNG shuttle bus fleet, scheduled to be online by March 1, 2003.

CEQA: Resolution No. 67380, PP01-01-014. (Airport/General Services)

Documents Filed: Memorandum from Aviation Director Ralph G. Tonseth and General Services Director Jose Obregon, dated February 5, 2003, recommending adoption of said resolution.

Discussion/Action: This item was deferred to March 11, 2003.

2.5 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2002-2003 #24 and authorization for the Director of General Services to execute the purchase orders. CEQA: Various designations. (General Services)

Documents Filed: Memorandum from General Services Director Jose Obregon, dated February 5, 2003, recommending approval of said open purchase orders FY2002-2003 List #24, and authorization for the Director of General Services to execute the purchase orders.

Discussion/Action: The award of open purchase orders List #24 was approved and the Director of General Services was authorized to execute the purchase orders. Vote: 11-0-0-0.

2.6 Adoption of a resolution authorizing the Director of Housing to negotiate and execute:

(a) A loan of up to $250,000 to San José Conservation Corp, or an affiliated entity, for acquisition of a site located at the southeast corner of South Capital and Wilbur Avenues for the development of a moderate income single-family residence and commitment for a homebuyer second mortgage; and

(b) A commitment of up to $50,000 for a second mortgage to a qualified homebuyer.

CEQA: Exempt, PP03-01-034. Council District 5. SNI: East Valley/680. (Housing)

Documents Filed: Memorandum from Housing Director Leslye Corsiglia, dated February 5, 2003, recommending adoption of said resolution.

Discussion/Action: William J. Garbett spoke on the proposed action. Upon motion by Council Member Campos, seconded by Vice Mayor Dando, and unanimously carried, the Staff recommendation was approved, with both Council Members Gregory and LeZotte abstaining due to conflict of interest, being members of the Board of Directors for the San José Conservation Corp., and Resolution No. 71419, entitled: “A Resolution of the Council of the City of San José (i) Authorizing the Director of Housing to Negotiate and Execute a Loan of up to $250,000 to San José Conservation Corps, or an Affiliated Entity, for the Development of a Single Family Residence Affordable to a Moderate-Income Household, Located at the Southeast Corner of South Capital Avenue and Wilbur Avenue; (ii) Authorizing the Director of Housing to Negotiate and Execute a Commitment of up to $50,000 for a Second Mortgage to a Qualified Homebuyer”, was adopted. Vote: 9-0-0-2. Disqualified: Gregory, LeZotte.

2.7 Approval of the following agreements with the Alum Rock Unified School District:

(a) A 50-year ground lease for the construction and maintenance of a library on school district property located at Fischer Middle School, 1720 Hopkins Drive, at a cost of $1 per year; and

(b) An agreement requiring the City to relocate a running track at a portion of the Fischer Middle School from the portion of the Fisher Middle School campus where the library will be placed, to a portion of the campus located along Karl Street.

CEQA: Exempt, PP03-01-035. Council District 5. SNI: East Valley/680. (Library)

Documents Filed: Memorandum from Library Director Jane Light, dated February 5, 2003, recommending approval of said agreements with Alum Rock Unified School District.

Discussion/Action: Council Member Campos commented on the support of the community and their help with the location site, and support for moving forward with the opportunity to have a new state-of-the-art library, and giving an opportunity for future uses like a youth or seniors facility, and the school will get a new track field in the process, and she recommended support. Upon motion by Council Member Campos, seconded by Vice Mayor Dando, and unanimously carried, the agreements with the Alum Rock Unified School District were approved. Voted 11-0-0-0.

2.8 Adoption of a resolution authorizing the reorganization of territory designated as Monterey Park No. 104, which involves the annexation to the City of San José of approximately 85.8 acres of land, located on the south side of Curtner Avenue, approximately 700 feet easterly of Highway 87, and the detachment of the same from the relevant special districts, including Central Fire Protection District and the County Library Service Area. CEQA: Negative Declaration, PDC02-042. Council District 7. (Planning, Building and Code Enforcement)

Documents Filed: None

Discussion/Action: This Item was deferred to March 11, 2003.

2.9 Adoption of the following appropriation ordinance amendments in the Parks and Recreation Bond Projects Fund:

(a) Establish a new appropriation for Terrell Park Play Area Renovation project in an amount of $287,000;

(b) Increase the Hillview Park Play Area Renovation and Restroom appropriation by $35,000;

(d) Increase the Ending Fund Balance by $1,648,000.

CEQA: Not a Project. (Parks, Recreation and Neighborhood Services/City Manager’s Office)

(Deferred from 2/18/03 - Item 2.8)

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhoods Services Director Sara L. Hensley and Budget Director Larry D. Lisenbee, dated January 29, 2003, recommending approval of said appropriation ordinance amendments.

Discussion/Action: Council Member Yeager commented on the issue of moving projects forward more quickly, referring specifically to this portion of the Los Gatos Creek Trail which was part of the 2000 bond measure and after a grant was obtained, the project was significantly delayed due to work having to be done before the grant moneys could be used, and asked if there was a way to expedite projects in such situations by dual tracking and performing work sequentially on the project. He suggested Staff consider ways to expedite projects and asked when grants are awarded, how is Staff taking into consideration the kind of delays perceived with future projects. Parks, Recreation and Neighborhoods Services Director Sara L. Hensley replied one method is to review the funding source and determining if construction and documentation can begin simultaneously as the City acquires property. She also commented that the recently hired Trails Coordinator will begin tracking specific trail projects and working with the City’s partners internally and externally, and tracking the status of grants in a database, to calculate when acquisition of property and construction would begin. Council Member Yeager suggested the new Trails Coordinator be proactive in looking at all projects on the board and making every attempt to move projects forward as quickly as possible, and Director Hensley replied in addition to looking at other projects surrounding that area, Staff will try to maximize resources, where we are in development of a trial or any other projects and take a more holistic approach and seek multiple outcomes. Upon motion by Council Member Yeager, seconded by Vice Mayor Dando, and unanimously carried, the Staff recommendation was approved, and Ordinance No. 26840, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Moneys in the Parks and Recreation Bond Projects Fund for the Terrell Park Play Area Renovation, the Hillview Park Play Area Renovation and the Los Gatos Creek Trail Projects; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, was adopted. Vote: 11-0-0-0.

2.10 Adoption of the following appropriation ordinance and funding source resolution amendments in the General Fund:

(a) Establish a City-wide appropriation to the Department of Planning, Building and Code Enforcement for the Evergreen Land Use and Transportation Study in the total amount of $85,000.

(b) Increase earned revenue from Other Revenue by $85,000.

CEQA: Exempt, PP03-02-058. Council District 8. (Planning, Building and Code Enforcement/City Manager’s Office)

(Rules Committee referral 2/19/03)

Documents Filed: Memorandum from Planning, Building and Code Enforcement Director Stephen M. Haase and Budget Director Larry D. Lisenbee, dated February 18, 2003, recommending adoption of said appropriation ordinance and funding source resolution amendments.

Discussion/Action: Ordinance No. 26841, entitled: “An Ordinance of the City of San José Amending Ordinance 26674 to Appropriate Moneys in the General Fund for the Evergreen Land Use and Transportation Study Project; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, and. Resolution No. 71420, entitled: “A Resolution of the Council of the City of San Jose Amending Resolution No. 71072 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2002-2003 to Adjust Revenues in the General Fund”, were adopted. Vote: 11-0-0-0.

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – February 12, 2003

Vice Mayor Dando, Chair

Documents Filed: The Rules Committee Report dated February 12, 2003.

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

(b) City Council

(1) Review February 25, 2003 Draft Agenda. Attachment: Memoranda from Council Member Chuck Reed dated January 23, 2003 requesting an item placed on a joint City Council/Redevelopment Agency agenda regarding development of a protocol for disclosure of records; from City Attorney Richard Doyle dated February 10, 2003 providing an informational response to Council Member Reed’s request; and from Council Member Chuck Reed dated February 11, 2003 stating it is unnecessary to have Council discuss his issue until the Attorney’s protocol is presented to Council in June 2003.

The Committee noted and filed three memoranda concerning development of a protocol for disclosure of public records. The Committee recommended approval of the February 25, 2003 City Council Agenda.

(2) Add New Items to February 18, 2003 Amended Agenda. Attachment: Report from City Manager dated February 12, 2003 listing no reports outstanding for the February 18, 2003 Council agenda.

The Committee recommended five additions to the February 18, 2003 City Council Agenda.

(3) Staff Reports Outstanding

The Committee noted and filed the City Manager’s report listing no Staff reports outstanding for the February 18, 2003 Council Agenda.

(1) State

Acceptance of staff report on Assembly Bill 4X1 and Assembly Bill 193 and the February 5, 2003 State legislative matrix.

(2) Federal

President’s FY 2004 budget proposal – overview of impacts on local government funding, and program priorities.

The Committee deferred the Legislative Update for one week.

(d) Meeting Schedules - There were none.

(e) The Public Record. Attachment: Memorandum from City Clerk Patricia O’Hearn dated February 6, 2003 listing items on the Public Record for the period January 29-February 4, 2003.

The Committee noted and filed the Public Record.

(f) Boards, Commissions and Committees

(1) Mobile Home Advisory Commission. Attachment: Memoranda from City Clerk Patricia O’Hearn dated February 7, 2003 presenting applicants for consideration to fill the neutral and landlord positions on the Mobile Home Advisory Commission; and from Council Member Gregory dated February 7, 2003 recommending no appointment be made to fill the landlord position and requesting the City Clerk contact Manufactured Housing Educational Trust (MHET) to submit new recommendations.

The Committee recommended appointment of Vernon Swart, Jr., as the neutral representative for an unexpired term ending December 31, 2005, and deferred appointment of the landlord representative for one week.

(g) Council Referrals for Assignment to Appropriate Committee, Administration, or Council Appointee - There were none.

(h) Administrative Reviews and Approval.

(1) Report on workload assessment to adopt a policy that would prohibit the City from entering into contracts with vendors or contractors that do not provide equal benefits to domestic partner employees.

The Committee recommended deferral of this item to March 5, 2003.

(2) Interim report on proposed policy for selecting sites for City-sponsored meetings

The Committee accepted Assistant City Manager Mark Linder’s report, which stated that Staff will focus its proposed policy on organizations receiving one-half or more of their budget from the City.

(3) Requests for recommendation to donate or sell surplus equipment. Attachment: Memoranda from Jose Obregon, Director of General Services, dated February 4 and February 5, 2003 giving notice of surplus equipment for possible donation or sale; and from Council Member Nora Campos dated February 11, 2003 recommending disposition of the surplus equipment; (a) Truck tractors, bookmobile, and equipment trailer; (b) Police patrol cars and fire command vehicles.

The committee recommended the following (1) that two truck tractors, bookmobile, and equipment trailer to be donated to the Municipal of La Paz, Mexico; and (2) that the two surplus Police cars and three Fire Department vehicles be sold to the Municipal of La Paz, Mexico for $19,200, the value General Services Department has determined the equipment to be worth.

(4) Request from Council Member LeZotte to use Council General funds to attend League of California Cities Transportation Policy Committee Meeting on January 24, 2003 in Ontario, CA. Memoranda from Council Member Linda LeZotte dated February 4, 2003 requesting use of Council General funds; and from City Clerk Patricia O’Hearn dated February 7, 2003 summarizing the use of Council General Travel Budget to date.

The Committee recommended approval for use of Council General funds by Council Member LeZotte to attend the League of California Cities Transportation Policy Committee Meeting on January 24, 2003 in Ontario, California.

(i) Oral communications

Peter Campbell, resident from District 1, stated he has not yet received a reply from the City regarding his written request to place an item regarding Measure I on a future Council agenda; he also expressed concern about the “San José in Focus” program.

(j) Adjournment

The meeting adjourned at 2:30 p.m.

The Rules Committee Report and actions of February 12, 2003 accepted, with Item 3.2(h)(1) deferred to March 5, 2003 Rules Committee.

Discussion/Action: Upon motion by Vice Mayor Dando, seconded by Council Member Chavez, and unanimously carried, the Rules Committee report and actions of February 12, 2003 were accepted. Vote 11-0-0-0.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.3 Adoption of a resolution amending Council Policy 9-3 to:

(a) Rescind the current Council Policy 9-3 prohibiting the installation of community identification signs other than those of a historical nature; and

(b) Establish a replacement policy based on the proposed guidelines and criteria for allowing community identification signs and architectural/gateway monuments within the public right-of-ways outside the Greater Downtown Area.

(Planning, Building and Code Enforcement)

[Economic Development & Environment Committee referral 12/2/02 – Item 4.1(b)]

(Deferred from 12/17/03 – Item 4.6 et al., and 2/11/03 – Item 4.3)

Documents Filed: (1) Supplemental memorandum from Planning, Building and Code Enforcement Director Stephen M. Haase, dated February 12, 2003, recommending Council [1] Rescind the current Council Policy 9-3 prohibiting the installation of community identification signs other than those of a historic nature, and [2] Adopt a replacement policy based on the proposed guidelines and criteria, as amended from those set forth in the EDEC memorandum dated November 18, 2002, for allowing community identifications signs and architectural/gateway monuments within the public right-of-way outside the Greater Downtown Area. (2) Supplemental memorandum from Senior Executive Analyst Nadine Nader, dated December 10, 2002, transmitting the Staff report dated November 18, 2002, from Planning, Building and Code Enforcement Director Stephen M. Haase, as presented to the December 2, 2002 Economic, Development and Environment Committee meeting regarding Community Identification Signs, and reporting the Committee accepted the report.

Discussion/Action: Council Member LeZotte stated regarding changes made after this issue had gone to the Economic and Development and Environment Committee and had thorough review in two meetings that it was disconcerting to see that changes made by Staff are before the Council but did not come back through the Committee. She stated, while understanding the additional thought process behind the changes, it would have been helpful to have the changes redlined or otherwise noted to assist Council in determining what changes are being recommended. Regarding the policy as it appears to have been amended, she asked for clarification of Page 4 of the proposed Council Policy, Item 4(c), Community Sign Design Criteria, attached to the Supplemental Staff report dated February 12, 2002, which reads: Community Signs should serve to enhance the identification of the area in which they are proposed in a manner that facilitates traffic flow. Planning, Building and Code Enforcement Director Stephen M. Haase replied that Staff views the signs as also serving as directional signs to guide people to certain locations and benefiting the flow of traffic.

Deputy Planning Deputy Director Horwedel stated that the goal is to ensure signage does not create traffic congestion or unsafe situations, and to guide people through the community to specific locations although not intended to be a sign program for individual sites like those in the Downtown Sign Program, this policy moves back to a higher level, for instance, indicating when someone is in downtown Willow Glen. Council Member LeZotte requested clarification on Item #5 Construction and Maintenance, on page 4 of the proposed policy on the issue of who constructs and maintains the signs. Deputy Director Horwedel replied that the City would be responsible for controlling construction of the signs, and Staff did not want community groups petitioning for signs where there was not funding, and the policy allows for situations where community groups would take that responsibility as a project to raise funds, that there may be cases where the City or Redevelopment Agency wants the signs, and the policy addresses the issues of funding and long-term maintenance when deciding to put in a community identification sign, ensuring the City controls policy implementation since the City has the final responsibility for quality, type of construction, and maintenance since the signs will be in the public right-of-way. Council Member LeZotte pointed out that the policy is not clear on the need for the community to maintain the sign and Deputy Director Horwedel noted that Page 3 of the proposed policy provides procedures for citizens or groups to propose sign installation and for donation of funding for construction or maintenance services, which the City or Agency would consider in reviewing the signage request, and noted that signs correctly designed should need minimal maintenance. Council Member LeZotte reiterated her concerns that the proposed policy does not clearly reflect those procedures or the fact that communities may be expected to maintain signage. Responding to her inquiry about outreach to determine if a community wants a sign, Deputy Director Horwedel stated that prior to consideration of installation of a sign at least one community meeting should be held to explain the project to residents, businesses and property owners, including SNI Advisory Committees, using a 2,000 foot radius around the sign to ensure the community is aware of and supportive of the proposal, and the proposal is not creating a new problem for that community.

Mayor Gonzales stated he hopes the direction Staff is taking to identify neighborhoods does not divide neighborhoods instead, and asked the reasons a community’s request for signs might be denied. Director Horwedel stated the policy is intended to not create a fractionalization of the City, to recognize larger geographic areas but not at a micro level, which is not the intent and is what the policy discourages. Mayor Gonzales asked as a community sign becomes blighted who maintains the sign and Deputy Director Horwedel stated the policy looks at two different directions, one is to make sure that the sign itself is of a nature that it would reduce maintenance costs, and if a sign is damaged in an accident and the neighborhood association no longer exists and the sign would incur City costs to repair it, the policy states the City has the right at that point to remove the sign and not replace it. The Mayor asked in the event of a car running into a sign when the neighborhood group is still around if the City has to notify the group, and Deputy Director Horwedel stated Staff intends in the application process to make clear that the City would expect them to pay maintenance costs.

Commenting on Item 6b, Page 6, Review Process, Vice Mayor Dando asked about flexibility in the design, construction and installation costs since the groups raising the funds are likely to be non-profits. Deputy Director Horwedel stated that issue is a concern, and as Staff prepares to begin the program July 1 to report back to Council with options and recommendations, and stated from the City’s standpoint, while looking to the community to help with maintenance, in the long-term the City ends up owning the signs, that as City property, the City should ensure signs are constructed safely and that there is long-term maintenance. Director Haase added that the standard of review would be similar to what the City does for public improvements now, that they show they have the means and the licenses and could be bonded for the project in the event they could not perform and that would at least be the standard of review for something that is considered public infrastructure. Vice Mayor Dando stated she just wanted to see if there is an option to allow more flexibility if they meet all the criteria that you would accept of any private sector business. City Attorney Richard Doyle stated to the extent that it is a Public Work or a public project there may be limitations and to the extent it is a condition of development, there may be a more flexibility, which is something Staff can review. Vice Mayor Dando stated there is no mention in the policy of the City’s role in working with Santa Clara County when signs would be on County-controlled property, and requested Staff consider what flexibility or assistance the City can provide to neighborhood groups in those situations. Vice Mayor Dando referenced Page 6, Item 7, Removal of Signs, and stated the way the policy is worded would indicate that any community sign may be removed by or on behalf of the City without notice, and stated for the City to remove signs without any attempt to notify the group responsible is a problem and she would like some inclusion of every attempt being made to notify the group prior to removal of the sign or for Staff to work with a Council Member but to remove the sign without any cause or reason is not acceptable. Director Haase stated that is a fair concern and part of it is operational, that if there are hazards the City will remove the sign immediately and Vice Mayor Dando acknowledged that a hazard clearly has to be removed, but stressed that the policy makes no differentiation, and suggested Staff work with Council Members’ Offices and make every attempt to contact the group before removal of a sign.

Council Member Chavez stated neighborhood associations have been talking about this issue because people want a way to identify their neighborhoods, that under the old policy people were literally gating their neighborhoods and that is not the intent of this proposal. She expressed concern over use of the language around facilitating traffic flow, and stated rather than “facilitating traffic” that a more accurate word would be “circulation” and suggested that change be added to the motion. Council Member Chavez commented regarding the role and responsibility of non-profits and neighborhood groups and because eventually these signs end up being the City’s responsibility, Staff would check installation as the City does in the private sector, and Deputy Director Horwedel agreed, noting that after 5-10 years it is hard to argue that it is a neighborhood association’s responsibility to maintain the signs. Council Member Chavez suggested as part of the grant proposal for the construction, money be set aside initially for maintenance because going back to the neighborhood associations for funds is not realistic. She commented on the downtown and expressed concern about an overlap as it relates to the 2000 Strategy Plan, and stated she would like this issue further defined to ensure neighborhood desires relative to community signage are represented.

Council Member Gregory requested follow-up on the question that the Mayor asked about the criteria for determining “neighborhoods that are significant in size”. Deputy Director Horwedel replied that Staff purposely did not put in a criteria of size or number of residents and noted there is challenge in districts which are not known by descriptive names, and stated part of the process is built around working with individual Council offices because in the end, the City will own the signs. He stated Staff compiled a map when the SNI process was started of all neighborhood associations in the City, as well as the defined boundaries of neighborhoods and there is wide disparity between the smallest and the largest, and Staff will start from a conservative standpoint because we do not want too many signs, or to draw hard boundaries around small neighborhoods, but to celebrate the larger City and larger community. Council Member Cortese echoed concerns about the policy being changed after being heard by the Economic Development and Environment Committee, and stated circulating traffic or directing people to new things and City landmarks is important, encouraged staying committed to smart growth and infill strategies, and agreed with the comments Council Member Chavez made regarding circulation versus facilitation of traffic. Council Member Williams also expressed difficulties with the changes made after the Committee heard the issue, stated if there are changes that clarify or expand the intent, it would be helpful to know what they are. He suggested if possible, Staff could compile a model representative of communities already identified as neighborhoods, obtain feedback and report back in a year on how the policy is working and what problems are encountered.

Council Member Yeager stated he believes in most instances the Community Identification Sign Policy will work well, that neighborhood associations in his district are looking forward the policy being implemented and he does not see any major problems. Council Member Chavez stated in deference to the Committee, all of these suggestions should go back through the Committee, i.e., (1) to include language that attempts be made to notify neighborhood groups before removing signage; (2) to allow flexibility in construction options, such as if a neighborhood group has the capacity of a developer and meets those benchmarks used with a regular developer, they would have that option; (3) as part of the County expressway study and work the City is doing, direct communication should take place between City and County Staff immediately on policy changes; and (4) to examine the fees for maintenance as part of the final policy whether there should be money set aside. Council Member Chavez moved approval of those changes to go back through the Committee and added a request for the Committee to consider the traffic issue she raised pertaining to traffic circulation and the issue of way-finding community signs. Council Member Cortese seconded the motion. Council Member Chavez stated she did not know how to separate way-finding signs for the purpose of not making these traffic signs because the neighborhoods circulation and traffic facilitation sounded more like cars while the City has been trying to promote pedestrian activities, and stated that issue should go back to Committee and Staff could consider the appropriate language and she incorporated that issue into her motion. Council Member Cortese expressed support for the motion and asked for an additional amendment, i.e., while the issue goes back to Committee that the City Attorney’s Office or Risk Management consider the possibility of securing insurance provisions on whatever signage is built to facilitate replacement of damaged signage. Mayor Gonzales expressed gratitude that this is moving forward and stated there is only one thing worse than not having identifier signs and that is a damaged sign and supported Council Member Cortese’s request for review of an insurance option. William Garbett spoke on the item.

On call for the question, the motion carried, the Resolution was not adopted, and the issue was referred to the Rules Committee for assignment to the appropriate Council Committee for review of the various issues raised by Council Members, including: (1) adding language to the policy where sign removals are allowed to require that attempts be made to contact the neighborhood organization responsible for maintenance of the sign; (2) the creation of flexibility to allow neighborhood groups with the capacity of meeting the benchmarks required of contractors to request community signage and where applicable, the City work with the community to facilitate such signage; (3) review the feasibility of setting aside maintenance fees for signage; (4) review appropriate language to provide “way-finding” signs to assist pedestrians in navigating the City and while the issue goes back to the appropriate committee, Staff research the feasibility of securing insurance coverage for the City’s signage. Vote: 11-0-0-0.

4.4 Adoption of an appropriation ordinance and funding sources resolution amendments in the Home Investment Partnership Program Fund (445):

(a) Increase Grant revenue by $3,568,495; and

(b) Increase the Home Loan, Grant and Site Acquisition appropriation to the Housing Department by $3,568,495.

CEQA: Not a Project. Council Districts 5 and 7. (Housing/City Manager's Office)

Documents Filed: Memorandum from Housing Director Leslye Corsiglia and Budget Director Larry D. Lisenbee, dated February 5, 2003, recommending adoption of said appropriation ordinance and funding sources resolution amendments to Home Investment Partnership Program Fund (445).

Discussion/Action: Council Member Gregory asked for clarification of the actual number of units being built for the Tully Gardens and Director of Housing Leslye Corsiglia replied in the year 2000 the initial number was 157 units, the project numbers were based on preliminary design, once the project had its construction drawings and because of various design issues, the number of units was reduced and the total number of both Phase I and II remain the same at 305 units. Council Member Gregory requested that Staff provide what the final numbers of units are for the Phase II project of Tully Gardens. William Garbett spoke on this item. Upon motion by Council Member Campos, seconded by Council Member Gregory, and unanimously carried, Ordinance No. 26842, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Moneys in the Home Investment Partnership Program Fund for the Homesafe San Jose Housing Project and the Tully Gardens Single Room Occupancy, Phase II Project; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption” and Resolution No. 71421, 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 Home Investment Partnership Program Fund”, were adopted, with direction to Staff to provide actual number of units being built for the Phase II project of Tully Gardens, Vote: 11-0-0-0.

4.5 Report on bids and award of contract for the construction of the New Berryessa Branch Library Project to include the base bid and Add Alternates 1, 2, 3 and 4, to the low bidder, Dennis J. Amoroso, Inc., in the amount of $6,648,600, and approval of a contingency in the amount of $665,000. CEQA: Negative Declaration, H02-02-007. Council District 4. (Public Works)

Documents Filed: (1) Memoranda from Public Works Director Katy Allen, dated February 18 2003 and February 5, 2003, recommending award of said contract, with related contingency, to the lowest responsive bidder, Dennis J. Amoroso, and adoption of said appropriation ordinance amendment.

Discussion/Action: Mayor Gonzales stated bids came in below the engineers estimate, but he is concerned about awarding the contract to the low bidder D.J. Amoroso, which has a past history with the City of being a contractor with project compliance issues. Public Works Director Katy Allen replied that to date, the contractor is in compliance on both the current construction projects and the Animal Service Center and the Blossom Hill Library are on budget and on schedule. Mayor Gonzales asked, as parks and libraries are designed, since with every architect there are different specifications and quality of product, could Staff report back on the possibility of hiring a master architect and contractor for these kinds of projects. Council Member Reed moved approval of the Staff recommendation dated February 18, 2003. Vice Mayor Dando seconded the motion. Council Member Reed expressed excitement with the Berryessa Branch Library being the second library project to break ground under the Measure O & P Bond Program but noted that Measures O & P did not provide for full staffing and Staff will have to find a way to address that issue. Vice Mayor Dando expressed the same concerns of contractor compliance, and after closely following on a weekly basis the progress of the contractor Dennis J. Amoroso, Inc., she was pleased of the progress to date, with the project being on schedule and ahead of budget with very few change orders, and also the contractor is doing a good job of resolving neighborhood concerns.

Council Member Chavez expressed concern about awarding the project to a contractor with issues of compliance on past City projects, noted that his current projects are not yet completed, and asked how many compliance issues need to occur before the City ecomes concerned. City Attorney Doyle stated the City was in litigation with contractor D.J. Amoroso, Inc., over the construction of the Repertory Theater, and in preparation of the debarment procedure, that D.J. Amoroso entered into an agreement with the City stipulating D.J. Amoroso would not bid on any City or Redevelopment projects for a period of time as a settlement of that litigation, and since they did not bid for a period of two years, the City did not move forward with debarment. He stated the decision of going through with the debarment process should be a decision made at the director level, or Appeals Hearing Board. Given the vast amount of construction projects and challenges, Council Member Chavez suggested Staff review the feasibility of addressing contractor compliance issues through pre-qualification or other requirements to preclude recurring compliance problems with contractors. Council Member LeZotte commented on the Council’s commitment to certify green buildings and was pleased that the Berryessa Library project would be the City’s first certified “Green” building and not go over budget.

Council Member Williams asked how the City is protected if a contractor defaults, what mechanisms are in place to review contractor compliance, and whether additional requirements are made when there have been past compliance issues, and asked if the contractor had been made aware of the City’s concerns about performance. Public Works Director Allen replied that requirements are the same for all contracts and all contracts have a performance bond, and stated the City does have the ability to assess liquidated damages for lack of performance, and stated the contractor has been made aware of the concerns and Staff now has a strong working relationship with D.J. Amoroso and his firm is making good progress and tracking on schedule. Responding to his question about how progress is tracked, she stated there are daily construction inspection reports and before the contract begins, the contractor submits a work schedule of the entire project which Staff uses for tracking purposes from beginning to end, and stated most library projectsare in construction for approximately one year and three months, however, the construction contracts calls for a timeframe the contractor must perform to and any excess requires a request for time extension. On a call for the question, the motion carried unanimously, and award of contract to the low bidder, Dennis J. Amoroso, Inc., with related contingency for construction of the new Berryessa Branch Library, was approved, with direction to Staff to review the feasibility of addressing contractor compliance issues through pre-qualification or other requirements to preclude recurring compliance problems. Vote 11-0-0-0.

4.6 Review of the annual report regarding in-lieu fees collected from developers in-lieu of construction of public improvements. CEQA: Not a Project. (Public Works)

Documents Filed: (1) Supplemental memorandum from Public Works Director Katy Allen, dated February 24, 2003, submitting the Annual Development In-Lieu Fee Reports Exhibits A and B sorted by Council District. (2) Memorandum from Public Works Director Katy Allen, dated February 5, 2003, submitting the Annual Development In-Lieu Fee Report.

Discussion/Action: Council Member Gregory thanked Public Works Director Katy Allen and her Staff for sorting the in-lieu fees by districts making it easy to read the report, and, asked what fees are collected for and is it possible to shift funds from one particular type of project to another, and what happens to in-lieu fees if the project for which they are collected cannot be completed. Public Works Director Katy Allen replied it is not possible to shift the funds and not only can they not be shifted from project to project, they cannot be shifted from one type of improvement to another and in-lieu fees not used within five years are returned to the developer. Responding to Council Member Gregory’s inquiry pertaining to in-lieu undergrounding fees, and potential shortfalls, Deputy Director of Public Works Tim Borden stated the undergrounding fee program is operated differently than the remainder of the in-lieu fee program, in that the ordinance does allow money collected in one area to be spent throughout the City, so when an undergrounding fee is collected for a Master Planned length of street that is intended for undergrounding in the future, that money may be used throughout the City, although we intend to come back and underground that one street sometime in the future. The money is not used exactly the same as for median islands, traffic signal, flood control and street improvements. He stated shortfalls can be addressed by raising in-lieu fees, although when some projects cost more than the fees collected and some less, the system balances out Citywide, and the five-year program, based on the funds collected, is driven by the priorities of the Council. Mayor Gonzales stated the system always lacks funds to accomplish the program and referred to the 5 Year Plan for undergrounding utilities, which shows the distribution of projects throughout the community. Deputy Director Borden noted that 20A money, which is a different undergrounding funding source, can be used to augment 20B projects to cover shortfalls on a project-by-project basis. Council Member Gregory requested a copy of the 5-Year Plan for undergrounding and if possible to have the reports available on the Internet.

Council Member LeZotte raised a question about data from Exhibit B before and after being separated into districts and asked Staff to check a $61,000 discrepancy pertaining to District 1, and asked about references that in-lieu fees not used within 5 years would be programmed into a Master Plan. City Attorney Richard Doyle explained the distinction that undergrounding in-lieu fees and other in-lieu fees that are in Exhibit B, that the underground fees pay for the entire program of undergrounding utilities ultimately but there is not a specific commitment that it will take place within 5-years or any given period of time, it is a program City wide, as opposed to the specific mitigation fees or development fees in connection with the project which are limited and have to be spent in connection only with that project. He stated that AB1600 is a State law that allows the City to re-program those monies every 5 years, so long as there is plan to spend the monies within a certain period of time, but at some point the funds will be there and the work done and, though not a perfect system, it does work. Responding to questions from Council Member LeZotte regarding the 5-year provisions, Director Allen stated Staff would provide Council with a copy of the 5-Year Program and Council Member LeZotte also requested the criteria of how a project gets put on the 5 Year-Plan. Council Member Cortese commented that he shared the overall concern by Council

Members Gregory and LeZotte in terms of creating a true nexus between funding these projects and where improvements actually take place, and although that is a structural issue that cannot be addressed with this Staff report. Council Member Cortese questioned data in the Staff report showing traffic signals funded but not constructed almost ten years later and Deputy Director Borden replied that typically with traffic signals the issue is that they are not fully funded, when the size of the development does not necessarily require that the full signal be burdened upon that development, the City collects less than full funding depending on the size of the development and its impact to that intersection, with the rest included as a capital improvement project in the future or from another development in the area. He stated signals could be held up for other reasons, such as projected traffic studies and traffic pattern estimations, which may indicate holding the funds until those issues are resolved.

Responding to Council Member Chavez about limitations of the Mitigation Fee Act or City ordinances that govern questions around the nexus or other guidelines the City uses to make decisions, City Attorney Doyle advised that the City is limited by the State and Federal law, which limit the City’s ability with respect to specific development fees and the law is incorporated into the AB1600 Mitigation Fee Act, and specific ordinances would follow the constitutional requirements. He stated the City can only collect a fee to the extent that mitigations are required. However, he noted Staff is working on an over-all restructure of the system to be more flexible and hope to report in the spring. Council Member Chavez stated she is interested in maximum flexibility but still meeting the main goal, and when considering a Specific Plan, we are able to negotiate with the contractor because the Specific Plan demonstrates how the City wants circulation and enhancements; also she would like to see the nexus be spread out further if it is possible, depending on the type of outcome desired. City Attorney Doyle advised the City is constrained by the Constitution and the Supreme Court has been very clear on what the City can do and where the nexus has to be very well defined. Transportation Director James R. Helmer stated Staff is bringing this topic to the Building Better Transportation Committee and will initially begin discussing Smart Growth and transportation impacts at the March meeting and have it scheduled again for the May meeting.

Referring in the Staff report to Programmed and the Proposed Construction Start Dates, Council Member Williams stated there are several projects in his district, specifically traffic signals, and asked what does Programmed mean in regards to project implementation, and Deputy Director Borden replied that Programmed means that either a developer will be building the signal rather than contributing, or it is part of the Capital Improvement Program and with an anticipated start date, or it can mean it is actually within the 5-Year Budget. Council Member Williams commented on median islands not completed after many years, stressed the need to optimize available funds within the legal limitations, and stated he looks forward to being able to complete some of the projects for the community. Council Member Reed asked for clarification regarding the practice of giving unused in-lieu fees back to the developer after 5 years, and City Attorney Doyle advised that State law in AB1600 does require the money be returned; however, it allows a review after 5 years and if Council makes findings that the funds are still programmed for an identified project, the City continues to keep the money in those cases; however, if the projects are no longer viable, the money must be returned. In response to Council Member Reed’s question about funds collected from 3Com in 1998, Deputy Director Borden explained, pertaining to the fees from the Palm Project, those signals are still programmed and there are trigger mechanisms at certain points of that development that these would be more necessary than they are today. In reply to City Attorney Doyle’s statement that for purposes of State law the signals have been programmed, Council Member Reed pointed out that the spreadsheet indicates they have not, and Staff is to review that issue. Mayor Gonzales called for public comment and William Garbett spoke on the issue. Upon motion by Vice Mayor Dando, seconded by Council Member Chavez, and unanimously carried, the Annual Development In-Lieu Fee Report, dated February 24, 2003, was accepted, with direction for Staff to provide copies of the 5-year plan for underground utility projects and the criteria for placing projects into the plan, and to review the feasibility of making the Annual Development In-Lieu Fee Report Exhibits A & B available on the internet. Vote: 11-0-0-0.

TRANSPORTATION SERVICES

6.2 Approval of an agreement with the Coyote Creek Business Park limited partnership for various roadway improvements funded by Improvement District No. 99-218SJ (Hellyer/Piercy), in a total amount not to exceed $2,603,394. CEQA: Resolution No. 69699. Council District 2. (Public Works)

Documents Filed: Memorandum from Public Works Director Katy Allen, dated February 5, 2003, recommending approval of said agreement with Coyote Creek Business Park.

Discussion/Action: Upon motion by Council Member Williams seconded by Vice Mayor Dando, and unanimously carried, the agreement with the Coyote Creek Business Park limited partnership was approved and its execution authorized. Vote: 11-0-0-0.

6.3 (a) Adoption of a resolution approving the freeway agreement with the State of California, relating to the portion of Route 101 from Route 280/680 to De La Cruz/Trimble;

(b) Approval of the amendment to the Route 87 Freeway Project Right-of-Way Cooperative Agreement to convey to the State a permanent highway easement located on the north side Route 101, west of the Guadalupe River; and

(c) Approval of an ordinance amending Chapter 11.24 of the San José Municipal Code to add a portion of Channing Avenue as a one-way street.

De La Cruz/Trimble CEQA: Resolution No. 65071, PP94-1-15. Channing Avenue CEQA: Exempt, PP03-01-037. Council District 4. (Transportation)

Documents Filed: Memorandum from Transportation Director James R. Helmer, dated February 5, 2003, recommending adoption of said resolution.

Discussion/Action: Upon motion by Council Member Reed, seconded by Vice Mayor Dando, and unanimously carried, the amendment to the Route 87 Freeway Project Right-of-Way Cooperative Agreement was approved, and Resolution No. 71422, entitled: “A Resolution of the Council of the City of San José Approving Freeway Agreement Between the State of California and the City of San José Relating to That Portion of State Highway 101 From 0.3 Kilometer North of State Route 280/680 to 0.5 Kilometer North of De La Cruz Boulevard”, was adopted, and Ordinance No. 26843, entitled: “An Ordinance of the City of San José Amending Chapter 11.24 of Title 11 of the San José Municipal Code to Add a New Section to Designate a Portion of Channing Avenue as a One-Way Street”, passed for publication. Vote: 11-0-0-0.

ENVIRONMENTAL & UTILITY SERVICES

7.1 (a) Adoption of a resolution appointing District 4 Council Member Reed as the City's representative to the newly formed San Francisco Bay Area Regional Water System Financing Authority; and

(b) Adoption of a resolution setting a public hearing on April 1, 2003, at 1:30 p.m., on whether the City should join in the formation and become a member of the Bay Area Water Supply and Conservation Agency; and directing the City Clerk to publish notice of the time and place of the hearing in a newspaper of general circulation, at least two weeks prior to the date set for the hearing.

CEQA: Not a Project. Council District 4. (Environmental Services)

Documents Filed: Memorandum from Environmental Services Director Carl W. Mosher, dated February 5, 2003, recommending the appointment of Council Member Reed as the City’s representative to newly formed San Francisco Bay Area Regional Water System Financing Authority and recommending adoption of said resolution for implementation of Regional Water Supply Legislation SB 1870, AB 2058, AB 1823.

Discussion/Action: Art Jensen, General Manager of the Bay Area Water Users Association spoke in favor of the proposal. Council Member Cortese asked why logistically that 98 percent of the Hetch Hetchy water goes into the north San José area, and Environmental Services Director, Carl Mosher replied the north San José Area of the Municipal Water System (MWS) is north of Trimble and that area is served by wells in the water district and the Hetch Hetchy water system provides 98 percent of the water. Council Member LeZotte stated she was pleased at the appointment of Council Member Reed to the newly formed San Francisco Bay Area Regional Water System Financing Authority and stressed the importance of the City having a seat at the table in dealing with the City’s water future. Council Member Reed expressed concern about the City’s emergency capabilities in North San José area, and about the impacts should the Hetch Hetchy system fail, even though the City has the Municipal water supply as emergency back-up, and stressed how imperative it is for the City to participate in solving the financing problems for the Hetch Hetchy water system. Upon motion by Vice Mayor Dando, seconded by Council Member Chavez, and unanimously carried, and Resolution No. 71423, entitled: “A Resolution of the Council of the City of San José Appointing Chuck Reed, Council Member for District 4, as the City of San José Member of the San Francisco Bay Area Regional Water System Financing Agency”, and Resolution No. 71424, entitled: “A Resolution of the Council of the City of San José Fixing the Time and Place of a Public Hearing on Whether to Form, and Become a Member of, the Bay Area Water Supply and Conservation Agency, were adopted. Vote: 11-0-0-0.

7.2 Authorize the City Manager to certify and submit the Fiscal Year 2003-2004 Work Plans for Urban Runoff Management to the San Francisco Bay Regional Water Quality Control Board. CEQA: Not a Project. (Environmental Services/Planning, Building and Code Enforcement/Public Works/Transportation/General Services)

Documents Filed: Memorandum from Environmental Services Director Carl W. Mosher, Planning, Building and Code Enforcement Director Stephen J. Haase, Public Works Director Katy Allen, Transportation Director James R. Helmer, and General Services Director Jose Obregon, dated February 5, 2003, recommending authorization for the City Manager to certify and submit the Fiscal Year 2003-2004 Work Plans for Urban Runoff Management.

Discussion/Action: Upon motion by Council Member Campos, seconded by Council Member Chavez, and unanimously carried, authorization for the City Manager to certify and submit the Fiscal Year 2003-2004 Work Plans for Urban Runoff Management Plan and its execution carried, was approved. Vote: 11-0-0-0.

JOINT COUNCIL/REDEVELOPMENT AGENCY

The Redevelopment Agency Board convened at 4:10 p.m. to consider Item 10.1 in a Joint Session.

10.1 Adoption of a resolutions by the City Council and Redevelopment Agency Board authorizing a line of credit with Bank of New York to provide the Housing Department with a $50,000,000 line of credit as a replacement to the existing line of credit of $30,000,000 with Wachovia Bank, as successor to First Union National Bank, and to extend the term of the line of credit to April 1, 2005, and authorizing the City Director of Finance, the Agency Finance Director, and the Director of Housing to negotiate and execute all necessary documentation. CEQA: Not a Project. (Finance/Housing/Redevelopment Agency)

Documents Filed: Memorandum from Finance Director Scott P. Johnson, Agency Finance Director David Baum, and Housing Director Leslye Corsiglia, dated February 5, 2003, recommending adoption of said resolution.

Discussion/Action: William Garbett spoke on the item. Upon motion by Vice Mayor Dando, seconded by Council Member Chavez, and unanimously carried, Resolution No. 71425, entitled: “Resolution of the Council of the City of San José Authorizing the Negotiation and Execution of a Line of Credit Agreement With the Bank of New York to Provide a Line of Credit Secured by the 20% Housing Fund in an Amount Not to Exceed $50,000,000 and Authorizing and Approving Certain Other Actions In Connection Therewith”, and Redevelopment Agency Resolution 5393, were adopted. Vote: 11-0-0-0.

The Redevelopment Agency Board portion of the meeting adjourned at 4:12 p.m.

Open Forum

William J. Garbett addressed Council regarding status of police reserves.

Adjournment

The Council of the City of San José was adjourned in memory of Council Member Yeager’s mother, Carolyn French Yeager.

The City Council of the City of San José adjourned at 4:14 p.m.

RON GONZALES, MAYOR