CSJ Council Regular Meeting Agenda, March 25, 2003

MINUTES OF THE CITY COUNCIL

SAN JOSE, CALIFORNIA TUESDAY, MARCH 25, 2003

The Council of the City of San Jose convened in Regular Session at 9:32 a.m. in Council Chambers at City Hall.

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

Absent: Council Members: None.

Upon motion unanimously adopted, the City Council recessed to Closed Session at 9:32 a.m. in Room 600 to (A) confer with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9 Subsection (a) to consider cases of In re Parker, et al.; (B) to confer with Legal Counsel regarding anticipated litigation (a) of a matter where there is significant exposure to litigation pursuant to subsection (b) of Section 54956.9 of the Government Code and (2) to discuss one matter in the initiation of litigation pursuant to subsection (c) of Section 54956.9 of the Government Code.

By unanimous consent, Council reconvened from Closed Session and recessed at 10:43 a.m. and reconvened at 1:37 p.m. in Council Chambers, City Hall.

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

Absent: Council Members: None.

Invocation (District 3)

Father John Pedigo of St. Julie’s Church delivered a prayer for peace and support for the soldiers in Iraq and their safe return home.

Pledge of Allegiance

Mayor Gonzales led the Pledge of Allegiance.

Orders of the Day

Item 2.11 was deferred to April 1, 2003 and Items 10.1 and 10.2 were considered in a joint City Council/Redevelopment Agency Board session.

CEREMONIAL ITEMS

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 actions taken as indicated. Vote: 11-0-0-0.

2.1 Approval of City Council Minutes for:

(a) Regular meeting of June 18, 2002

(b) Joint City Council/Redevelopment Agency Board meeting of June 18, 2002.

Documents Filed: Regular Minutes and Joint City Council/Redevelopment Agency Board Minutes of June 18, 2002.

Discussion/Action: The Regular and Joint City Council/Redevelopment Agency Board Minutes of June 18, 2002 were approved. Vote: 11-0-0-0.

2.3 (a) Adoption of the following appropriation ordinance and funding sources resolution amendments in the Services for Redevelopment Capital Projects Fund (City-side Redevelopment Fund):

(1) Establishing an appropriation to the Department of Transportation for the Story Road Median Island Project in the amount of $22,300.

(2) Increasing the appropriation to the Department of Public Works for the Underground Streetlight System on Oak & Edwards Streets Project in the amount of $41,335.

(3) Increasing the appropriation to the Department of Public Works for the King and Story Road Improvements Project in the amount of $65,563.

(4) Increasing the estimate for Earned Revenue by $129,198.

(b) Adoption of a resolution making certain determinations regarding the related expenditures of Redevelopment Agency funds on certain public improvements in connection with Story Road Median Island Project, as more specifically described in the memorandum from the Redevelopment Agency, dated October 28, 2002.

CEQA: Not a Project. Council Districts 3 and 5. (City Manager's Office)

Documents Filed: Memorandum from Budget Director Larry D. Lisenbee, dated March 5, 2003, recommending (a) adoption of said appropriation ordinance and funding sources resolution amendments in the Services for Redevelopment Capital Projects Fund; (b) adoption of said resolution making certain determinations regarding the related expenditures of Redevelopment Agency funds on certain public improvements in connection with Story Road Median Island project.

Discussion/Action: Ordinance No. 26858, entitled “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Moneys in the Services for Redevelopment Capital Projects Fund for the Story Road Median Island Project, the Underground Streetlight System on Oak and Edwards Streets Project and the King and Story Road Improvements Project; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, and Resolution No. 71456, 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 Services for Redevelopment Capital Projects Fund”, and Resolution 71457, entitled, “A Resolution of the Council of the City of San José Making Certain

Determinations Regarding the Expenditure of Redevelopment Agency Funds for Certain Public Improvements in the Story Road Business District Redevelopment Project Area”, were adopted. Vote: 11-0-0-0.

2.4 Approval of Independent Police Auditor Teresa Guerrero-Daley’s travel to Omaha, Nebraska, from March 26-28, 2003, to attend the First National Police Auditor’s Conference. Funding: Police Professional Initiative at the University of Nebraska at Omaha. (Independent Police Auditor)

Documents Filed: Memorandum from Independent Police Auditor Teresa Guerrero-Daley, dated March 7, 2003, requesting approval to travel to Omaha, Nebraska.

Discussion/Action: The Independent Police Auditor’s travel to Omaha, Nebraska from March 26 – 28, 2003 was approved. Vote: 11-0-0-0.

2.5 Approval of the second amendment to the general banking services agreement with Union Bank of California, authorizing the Director of Finance to enter into supplemental agreements for new banking services provided that the cost of such new services does not cause the compensation to exceed the maximum compensation permitted under the agreement, and the terms and conditions of the original agreement govern all supplemental agreements for new services. CEQA: Not a Project. (Finance)

Documents Filed: Memorandum from Director of Finance Scott P. Johnson, dated March 5, 2003, recommending approval of the second amendment to said general banking services agreement with Union Bank of California to authorize the Director of Finance to enter into supplemental agreements for new banking services.

Discussion/Action: The second amendment to said agreement with Union Bank of California was approved and the Director of Finance authorized to execute the authorization of said agreement. Vote: 11-0-0-0.

2.6 Adoption of a resolution:

(a) Authorizing the City Manager to submit a grant application to the California State Library under the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 for the new Rosegarden Branch Library; to execute all documents related to the application; to accept the grants if awarded;

(b) Making the certification regarding funding for the project as required by the Public Library Construction and Renovation Bond Act of 2000;

(c) Authorizing the City Manager to negotiate and execute a joint use cooperative agreement with the San José Unified School District for shared programming within the new Rosegarden Branch Library; and

(d) Authorizing the City Manager to negotiate and execute an amendment to or a new ground lease, at $1 per year for the library located at the corner of Dana and Naglee Streets.

(e) Authorizing the City Manager to exercise the option to renew the ground lease on the school district property for 49 years from July 17, 2008.

CEQA: Exempt, H02-065. Council District 6. (Library)

Documents Filed: Memoranda from Library Director Jane Light, dated March 5, 2003, recommending adoption of said resolution.

Discussion/Action: Ross Signorino spoke on the issue. Resolution No. 71458, entitled “A Resolution of the Council of the City of San José Authorizing the City Manager to Submit an Application to the California State Library Under the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 for a Grant for the Rosegarden Branch Library, to Execute All Documents Related to the Grant Application to Accept the Grant if Awarded; to Negotiate and Execute a Joint Use Cooperative Agreement with the San José Unified School District for Shared Programming with the Rosegarden Branch Library, and to Exercise the Option to Renew the Ground Lease”, was adopted. Vote: 11-0-0-0.

2.7 (a) Approve the appointment to the San José Beautiful Steering Committee of Debbie Andrews, Magdalene Fraser, Carol Grady, Carol Kassab, JR Orlando, Sam Peng, Jose Posadas, and Josh Russell;

(b) Reappoint currently active Steering Committee members Ben Andrews, Jim Ekblom, Diane Gard, and Ann Smith; and

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

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated March 5, 2003, recommending approval of said appointments and reappointments to the San José Beautiful Steering Committee, and acknowledgement of the volunteer efforts of outgoing Steering Committee members Cathy Keil and Nancy Cardinet.

Discussion/Action: The appointments of Debbie Andrews, Magdalene Fraser, Carol Grady, Carol Kassab, JR Orlando, Sam Peng, Jose Posadas and Josh Russell, and the reappointments of Ben Andrews, Jim Ekblom, Diane Gard, and Ann Smith to the San José Beautiful Steering Committee, and the acknowledgements of Cathy Keil and Nancy Cardinet for their volunteer efforts as outgoing committee members, were approved. Vote: 11-0-0-0.

2.8 (a) Approving the 2002 Summer Aquatics Report and the Capital Maintenance Plan; and

(b) Adoption of a resolution establishing the Aquatics Fee Schedule for the 2003 Summer Program and repealing Resolution No. 70864.

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

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated March 5, 2003, recommending approval of the 2002 Summer Aquatics Report and the Capital Maintenance Plan, and adoption of said resolution establishing the Aquatics Fee Schedule for the 2003 summer program and repealing Resolution No. 70864.

Discussion/Action: Resolution No. 71459, entitled “A Resolution of the Council of the City of San José Setting Fees for Participation in Recreational Swimming at City-Sponsored Swim Programs Approving a Change in the Aquatics Fee Schedule to Allow Adjustments Based on Attendance and Repealing Resolution No. 70864”, was adopted. Vote: 11-0-0-0.

2.9 Adoption of a resolution authorizing the City Manager to apply for and accept, if awarded, a $1,000,000 River Protection and Parkway Grant from the State of California Department of Parks and Recreation and authorizing the City Manager to negotiate and execute all documents relating to the Proposition 12 grant funding agreement. CEQA: Not a Project. Council District 3. (Parks, Recreation and Neighborhood Services)

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated March 5, 2003, recommending adoption of said resolution authorizing the City Manager to apply for and accept said grant and authorizing the City Manager to negotiate and execute all documents relating to the Proposition 12 grant funding agreement.

Discussion/Action: Resolution No. 71460, entitled “A Resolution of the Council of the City of San José Authorizing the City Manager to Execute and Submit an Application to the California Department of Parks and Recreation for a Grant from the River Protection and Parkway Grant Program for the Development of and Various Improvements to a Portion of the Guadalupe Garden Adjacent to the Guadalupe River Park Trail System in an Amount Not to Exceed $1,000,000, to Accept the Grant If Awarded, and To Execute All Related Documents”, was adopted. Vote: 11-0-0-0.

2.10 Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with the County of Santa Clara for data processing services and related connection services for the Records Indexing System (RIS), for an agreement term July 1, 2002 through June 30, 2003, and for a total agreement amount of $180,000. CEQA: Not a Project. (Police)

Documents Filed: Memorandum from Chief of Police, William M. Lansdowne, dated March 6, 2003, recommending adoption of said resolution authorizing the City manager to execute said agreement with the County of Santa Clara.

Discussion/Action: William Garbett spoke on the issue. Resolution No. 71461, entitled “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement with the County of Santa Clara for Data Processing Services for the Records Indexing System in an Amount Not to Exceed $180,000”, was adopted. Vote: 11-0-0-0.

2.11 Adoption of a resolution authorizing the Director of Public Works to negotiate and execute (1) a purchase and sale agreement in the amount of $27,200 with Edwards-Holmgren, a California general partnership, for the purchase of a strip of property located at 5801 Cottle Road, for the Edenvale Area Intersections Project, Cottle Road, and; (2) any additional documents necessary to complete the transaction. CEQA: Exempt, PP03-02-073. Council District 2. (Public Works)

Documents Filed: None.

Discussion/Action: This item was deferred to April 1, 2003.

2.12 Adoption of a resolution of intention to vacate a portion of the west side of Sixth Street and reserve a public service easement and setting a public hearing on April 15, 2003 at 1:30 p.m. CEQA: Negative Declaration, PDC98-10-078. Council District 3. SNI: Spartan/Keyes. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated March 5, 2003, recommending adoption of said resolution and setting a public hearing.

Discussion/Action: Resolution No. 71462, entitled “A Resolution of the Council of the City of San José Setting a Public Hearing to Consider Whether to Vacate a Portion of Sixth Street and Reserving a Portion for a Public Service Easement (PSE), Between Martha and Bestor Streets”, was adopted. Vote: 11-0-0-0.

2.13 Approval of the first amendment to the agreement for consultant services with Kimley-Horn and Associates for the design of the Silicon Valley Intelligent Transportation Systems (SV-ITS) Fremont-Milpitas Project, to extend the agreement term through September 30, 2003. CEQA: Not a Project. (Transportation)

Documents Filed: Memorandum from Director of Transportation James R. Helmer, dated March 5, 2003, recommending approval of the first amendment to said agreement for consultant services with Kimley-Horn and Associates.

Discussion/Action: The first amendment with said agreement was approved. Vote: 11-0-0-0.

2.14 Adoption of a resolution declaring the results of the Special Municipal Election held on March 4, 2003. (City Clerk)

(Rules Committee referral 3/19/03)

Documents Filed: Memorandum from City Clerk Patricia L. O’Hearn, dated March 19, 2003, recommending adoption of said resolution.

Discussion/Action: William Garbett spoke on the issue. Resolution No. 71463, entitled, “A Resolution of the Council of the City of San José Reciting That a Special Municipal Election was Held in the City of San José on Tuesday, March 4, 2003, Finding and Declaring That the Registrar of Voters of the County of Santa Clara Has

Canvassed the Returns of the Election, and Confirming the Results of the Canvass; Stating the Whole Number of Votes Cast in the City, and Stating the Measure Voted On, The Number of Votes Given at Each Precinct for the Measure and Determining That a Majority and a Required Number of the Qualified Voters Voted in Favor of Measure A, the Airport Security and Traffic Relief Act”, was adopted. Vote: 11-0-0-0.

2.15 Adoption of a resolution authorizing:

(a) The Director of General Services to execute a second amendment to the agreement to acquire and install a departmental database system with Housing & Development Software, LLC, to modify the scope of services, to extend the term to September 6, 2003, and to increase the total compensation by the previously approved contingency amount of $50,000, for a total maximum compensation not to exceed $191,800.

(b) The Director of General Services to execute maintenance renewals for the ongoing software maintenance of the system with annual increases not to exceed 10% as stated in the original contract, without further Council action other than the appropriation of funding.

(Housing/General Services)

(Rules Committee referral 3/19/03)

Documents Filed: None.

Discussion/Action: This item was deferred to April 1, 2003.

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – March 12, 2003

Vice Mayor Dando, Chair

Documents Filed: None.

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

(b) City Council

(1) Review March 25, 2003 Draft Agenda

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

(3) Staff Reports Outstanding

(1) State

(2) Federal

(d) Meeting Schedules

(e) The Public Record

(f) Boards, Commissions and Committees

(g) Council Referrals for Assignment to Appropriate Committee, Administration, or Council Appointee

(h) Administrative Reviews and Approval

(i) Oral communications

(j) Adjournment

Discussion/Action: This item was deferred to April 1, 2003.

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

Council Member Campos, Chair

Documents Filed: None.

(a) Report on Park Ranger Staffing

(b) Report on CSA Performance Measurements

(d) Memorandum on Internal Controls

(e) Audit follow-up on Prevailing and Living Wage

(f) Call Center Handling of Service Requests Audit Report

(g) Santa Clara County Cities Association Audit Report

(h) Airport Neighborhood Services Group Audit Report

(i) Fire Paramedics Staffing and Costs

(j) Oral petitions

(k) Adjournment

Discussion/Action: This item was deferred to April 1, 2003.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

RECREATION & CULTURAL SERVICES

TRANSPORTATION SERVICES

ENVIRONMENTAL & UTILITY SERVICES

AVIATION SERVICES

PUBLIC SAFETY SERVICES

JOINT COUNCIL/REDEVELOPMENT AGENCY

Redevelopment Agency Board convened at 2:02 P.M. to consider Items 10.1 and 10.2 in a Joint Session.

Items 10.1 and 10.2 were heard together

10.1 (a) Continued discussion on CIP project priorities and funding.

(b) Acceptance of this staff report on the proposed plan to implement the approved Budget Strategy related to capital projects, which recommends the following:

(1) Proceed with 132 General Fund projects budgeted at $52.8 million.

(2) Decrease funding for ten General Fund projects by $3.859 million and increase the Reserve for the 2003-2004 Deficit by the same amount.

(3) Place $10.3 million in General Fund projects on hold pending further evaluation of the budget process.

(1) Decrease the Acceleration Park Bond Site Acquisitions appropriation by $2,000,000.

(2) Decrease the Historic Homes Renovations appropriation by $1,000,000.

(3) Decrease the Open Space – Greenbelt appropriation by $200,000.

(4) Decrease the Minor Building Improvements appropriation by $249,000.

(5) Decrease the Minor Restroom Repairs appropriation by $200,000.

(6) Decrease the Demolition (460 Park Ave) appropriation by $96,000.

(7) Decrease the Park Facilities Improvements appropriation by $58,000.

(8) Decrease the Civic Center Relocation Costs appropriation by $32,000.

(9) Decrease the Picnic Area Renovation appropriation by $17,000.

(10) Decrease the Park Bldg Repair/Renovation appropriation by $7,000.

(11) Increase the Reserve for the 2003-2004 Deficit by $3,859,000.

(d) Acceptance of staff recommendations to proceed with funding of certain affordable housing projects:

(1) Proceed with funding for those projects that have completed construction and require only permanent financing, and those that are under construction.

(2) Proceed with funding for those projects where land has been acquired using City funds, where significant outside funding has been committed, and where Council action is anticipated within the next 30 days.

(3) Accept prioritization of projects on hold pending available funding.

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

(Referred from 3/4/03 – Item 10.1)

10.2 Public Hearing and adoption of the FY 2003-2004 Mayor’s March Budget Message. CEQA: Not a Project. (Mayor)

Documents Filed: (1) Memorandum from Mayor Gonzales, dated March 19, 2003, recommending the City Manager and Executive Director of the Redevelopment Agency be directed to submit balanced budgets to the City Council guided by the policy direction outlined. (2) Memorandum from Deputy City Manager Terry Roberts, Budget Director Larry D. Lisenbee, and Director of Housing Leslie Corsiglia, dated March 20, 2003, recommending acceptance of said staff report. (3) Hard copy of overhead slides used in the Staff presentation, entitled, “2003-2004 Forecast”, dated March 25, 2003. (4) Electronic mail correspondence from residents regarding the proposed budget cutbacks.

Discussion/Action: The Mayor opened the Public Hearing. Mayor Gonzales presented an overview of his budget message and the expectations and impacts of this year’s state deficit on the City of San José. He stated the budget situation is very serious and the projected deficit is estimated to have impacts on City services. He recommended building upon the budget strategy currently being used, which would include providing vital services to our communities, continuing to build stronger neighborhoods, balance the City’s employees, and to seek ways of reducing services and projects with the least amount of impact on the community. Mayor Gonzales commented the importance of protecting the CBOs that provide basic services and not cut their funding any more than the average cut made from City departments, unless it is found that the service can be better provided by City staff. He stated further discussion was needed in seeking a more stable funding stream from the General Fund for Arts organizations. As the budget affects the Healthy Neighborhood Venture Fund (HNVF), Mayor Gonzales stated the City must focus on City core services, keep true to policy objectives of health, education, seniors, and anti-tobacco programs throughout the budget process. Budget Director Larry D. Lisenbee delivered a presentation on the budget deficit proposed by the state budget and presented an overview of the impacts the budget cuts will have on future budget balances. Deputy City Manager for Capital Projects Terry Roberts presented an overview on the budget strategy to help reduce or defer general fund capital expenditures. Director of Housing Leslye Corsiglia delivered a presentation on the status of housing expenditures in the budget. Public speakers Jerry Baker, George Berhitor, James C. Bettini, Ben Miyaji, Tha-Vu Nguyen, William Garbett, Jean K. Cecil, William O’ Connell, Rosylin Dean, Connie Martinez, Margo Sidner, Spanky Harlan, Olivia Mendiola, Mary Beth Lacy, Jose Montes De Oca, Carol Baker, Dean Saign, Efrain Correa, Patricia Gardner, Anagha Patil, Aurora Cepeda, Jennifer Hulbert, Enrique Arreola, Terry Applegate, Doug Metz, Manny De La Paz, Naireesa Merchant, Emanuel Mendoza, Kitzia Tello, Helen Yuen, Alma Dorali, Herman Vasquez, Nasca, Wes Mukoyama, Steve Saperstein, Gregory Nichols, Carunthia Archie, Diane Saign, Marina Blanca, Bob Hennessy, Dorsey Moore, Akemi Flynn, Robb Hermanson, J. Manuel Herrera, Socorro McCord, Elisa Marina Alvarado, Gabriel Armas, Randall King, Noemi Almaraz, Deborah Rappaport, Michael Avila, David Fenton, Dan Keegan, Cathy Kimball, Jennifer Hull, Alexandra Urbanowski, Donald Fadden, David Ciossan, Gary L. Montrezza, Elaine Curran, Ross Signorino, and Michael Dritchamp spoke on the issues.

Mayor Gonzales expressed his gratitude to the CBOs who attended and spoke in regards to their organizations and their work with the community. He assured the community and public speakers, the budget cuts would be fair and looked at individually by Council. Council Member Dando moved for approval of the recommendations, seconded by Council Member Chavez. Council Member Dando stated the Council discussion was only a portion of the budgetary process and a large part of the discussion is hearing the public speak and aid in their decision making, the motion to approve the recommendations is contingent upon any friendly amendments given by Council and Staff. Council Member Reed requested a friendly amendment be included within the recommendation, that funding cuts for CBOs should not be any larger than City department budgetary cuts and that any savings from TOT funds be used to reduce cuts to CBOs, using half for arts CBOs and the other half in reserve for arts organizations and the Conventions and Visitors Bureau. Council Member Chavez requested that Staff provide Council with the budget as early as possible for cuts to be considered with the entire budget and that all budget documents denote how departments incorporate SNI programs into their decision-making process. She asked Staff to determine how the City’s Workers Compensation reserves compare to industry standards and to determine the level of debt owed by the Redevelopment Agency to the City, and requested Staff determine under what circumstances might the competition policy be used to effect savings and to establish guidelines for ending fund balances and determine whether there could be a one year amnesty for fines other than business taxes and if the General Fund reserve percentage rate needs to be reviewed. She requested Staff provide Council with an estimate as to when vacancy rates will come forward and the difference between the traditional vacancy rates and the current rates, and if the strategy is being used judiciously. She asked Staff to determine where the Redevelopment Agency finds funding to pay for staffing and where the positions can be found, including whether or not the positions should increase due to the possible move to the Planning Department and asked Staff to ensure that RDA is not delinked from the opportunity to fund those positions and asked Staff to determine if using impact fees would be appropriate to fund future large projects.

Council Member Chavez referred to Page 2 of Attachment 2 of the Capital Improvement Projects and asked Staff as to why Strong Neighborhoods Initiative (SNI) was not part of the criteria in determining funding approval. Deputy City Manager for Capital Projects Terry Roberts stated they would add SNI to the criteria. Council Member Chavez asked Staff to include SNI as part of the criteria for evaluating all projects and asked Staff to determine what projects are within SNI areas and what criteria is used to determine the 80% of leverage funding and she expressed her concerns about how much funds are actually being leveraged. Director Roberts responded due to the budget deficit proposed, the general fund leverage needed to be the largest portion possible. She requested Staff determine whether the 5 year CIP forecast anticipates the possibility of deficits in all years and for Staff to provide an assessment of potential revenue funding sources for projects and/or operation and maintenance funding and parkland dedication fees to which the Agency contributes be refunded to the housing project in question. Council Member Chavez asked Staff to take into consideration, the use of a contractual partnership with the City of San José and the Redevelopment Agency and for Staff to hire grant writers to seek further federal funding. She requested Staff explore joint purchase opportunities with regional agencies to leverage City procurement funds and ensure the children’s nutrition programs be included with senior nutrition programs funded by the Healthy Neighborhoods Venture Funds (HNVF). She asked how much RDA money is available for the Street Smart Childcare Initiative. Director of Parks, Recreation & Neighborhood Services Sara Hensley stated there was $88,000 available from RDA, the funding for the project had started out with $10 Million from Hewlett Packard, but the majority of that money has already been allocated to different entities and Smart Start centers. Council Member Chavez asked Staff to get an accounting of the Hewlett Packard money and for Staff to consider possible reductions in administrative expenditures to focus resources on direct service delivery. She stated her approval of putting money aside from TOT funds to aid funding for public art programming and to ensure the 2% minimum budget is set aside for art funding. Council Member Chavez requested Staff provide information on funding available for rehab projects and to explore means of ensuring that RDA funds are available for neighborhoods and public facilities.

Vice Mayor Dando referenced Page 1 of the General Projects that states the recommendations to place projects on hold, she asked Staff to reconsider placing the Almaden Winery Center conversion project on hold due to the community not having a community center for a number of years. Vice Mayor Dando requested Staff provide a status update on all housing projects in partnership with VTA that have been placed on hold or frozen. Director of Housing Leslye Corsiglia stated the list pertains to projects lacking funding and the City will continue to work with VTA and housing services to ensure the project is ready as soon as funding is available. Vice Mayor Dando thanked Staff for their assistance on this project and helping to keep it an active project and requested City Administration to participate in the competition for funds as cuts are made to balance the General Fund, she asked Staff to compete as other organizations do for City funds, in order to sponsor their programs. She commented that e-Government services are a vital source for library services to implement and suggested Staff utilize the services to assist in handling the cut in staffing. She asked Staff to develop a criteria for Council to use in evaluating the overall budget impacts.

Council Member Campos asked Staff when will information be available concerning gutter and curb repair per district. Director of Transportation Jim Helmer stated expenditures are disbursed by need per district and evaluated on the worst upheaval problems, drainage issues, and community complaints and the information is not broken down by district but rather by need. She commented to Staff regarding communities seeking alternative funding to fund needed projects in their communities and asked that upon the community groups who secure their funding, how will the City streamline the money for those projects. City Manager Del D. Borgsdorf stated the issue will go to the Planning, Building and Code Enforcement Department to determine the criteria and how to administer the special handling of the neighborhood generated projects. Council Member Campos requested Staff to provide a list of projects that are under construction and/or starting construction soon with funding allocated and that the City Manager responds to the call center audits in his Budget Message on May 1, 2003.

Council Member Cortese requested of Staff a breakdown of which general fund projects made the funding list since the 2002 Mayor’s budget message and a list of dollar figures per Council district and the status of whether it had been completed or not. He asked Staff to develop a means of funding for traffic calming projects in SNI areas. Council Member Cortese referred to page 18 of the Mayor’s budget message regarding seeking other opportunities to find programs that use non-general funding sources, such as the taxi study which could be funded by Airport services or the San José Medical Center study which could be funded by RDA instead of the City. He asked that Staff add ending funds balances to all future listings of capital projects removed for tracking purposes and to define the criteria to leverage initial operating and maintenance funding for capital projects. He expressed his concerns regarding fee increases for adult sport programs and the outcome if fees will be used to sustain the field maintenance, he stated if fields weren’t improved there would be no income from the fee increases and the City will lose participants for the sports programs. Council Member Cortese asked the City Attorney provide a Closed Session Report on how Council Appointee cuts may affect ongoing litigation and for Staff to continue exploring a more tailored approach to dealing with CBOs and arts groups.

Council Member Gregory expressed concern regarding projects listed within his district as completed or ready for completion and have yet to reach that status and asked Staff to clarify the prioritization process of these projects. City Manager Borgsdorf stated the listing was to show the magnitude of projects completed or in the process of completion, he clarified that all projects not completed by June 30, 2003 will be treated as carry-over projects to the next budget cycle. Council Member Gregory expressed his concern regarding the hold status of the Towers Lane and Bellevue Park projects within his district stated the original costs to fund the projects were underestimated and asked if these projects were going to be completed or not. Redevelopment Agency Director Susan Schick stated the design for the Bellevue Park project is complete, the cost of land acquisition for the project is still outstanding and upon completion the building and overall project will require additional funding. Council Member Gregory stated the Towers Lane project was his number one priority in terms of projects and commented the overall budget lacked the definition of community need, thus not allowing Council the ability to address the needs of their districts and stated he would like to see some clarification identifying the clear needs of the communities.

Council Member LeZotte expressed concern regarding specific criteria used for funding projects, she asked Staff to identify the prioritization process of each applicant. Director Roberts stated the set of criteria was worded in a general manner to allow further Council discussion and submit the determined criteria for Council approval. Council Member LeZotte suggested RDA use the same or similar set of criteria once approved. She asked Staff for a confirmation of the Eden traffic calming project funding. Director Roberts stated the traffic calming project was 95% complete with $600,000 from the Traffic Calming budget and $300,000 from RDA and that alternate funding options would be discussed in case RDA funding is not available. Council Member LeZotte commented the lack of funding was not acceptable in regards to RDA and requested a guarantee from RDA for the $300,000 of projected funding. Director Schick stated she could not give a commitment to the $300,000 funding that RDA has sequestered the capital balance to do Priority One projects only and subject to what the state has slated to happen, she informed Council she was unable to assure anyone about the funds at this point. Council Member LeZotte asked Staff to include the funding status for the Blackford Teen and Pool Center within the Budget for District 1 and to reprioritize the San Tomas Expressway sidewalk project from year five to next year. She asked Staff provide an informational memo as part of the Budget Process to evaluate establishing “sunset” provisions for the budget cuts pertaining to Staff salary freezes, and cuts to CBOs, Healthy Neighborhood Venture Funds, business amnesty program, fee increase and decreases, the streamlining process concerning any shift in capital improvement funding to the General Fund. She asked Staff to provide a breakdown of the Redevelopment Agency prior to the May budget process for all funding sources, base budget and expenditures, including debt services and ending fund balances and for Staff to determine whether the budget’s Tiers 1, 2, and 3 followed the four policy priorities as listed on Page 14 of the Mayor’s memorandum. Council Member LeZotte requested Staff provide to Council an informational analysis of whether the City’s online purchases were in small or large amounts to estimate the trade-off of sales tax of the purchases.

Council Member Williams commented regarding the listing of projects currently on hold by RDA and inquired about the school district portables in the Edenvale/Great Oaks communities and why they were not on hold. Director Hensley stated the neighborhood revitalization dollars placed prior to the SNI effort were still available and active, but only a portion of what is needed to complete the project, the other portion is RDA money and currently on hold. Council Member Williams asked Staff to return to Council with a status update on the project. He asked Staff for a progress update on the incubation project in the Edenvale area. Director Schick stated the design layout is in completion and in preparation to go to bid. Council Member Williams requested Staff ensure money is provided for maintenance of the City’s collection of artwork and for a status update on the taxi issue regarding funding issues. City Manager Borgsdorf stated a consulting analysis of the taxi industry was proposed and it will return to Council during the budget process.

Council Member Chirco asked that Staff attempt to minimize the impact of budget cuts on after-school programs, including Homework Centers.

Council Member Yeager requested a status update on cap grants. Director Hensley stated the cap grants are funding mechanisms that need to be reviewed further as budget issues are addressed, she stated Staff will return to Council with a recommendation as to how to distribute grant funds with some better standards that will be in line with the City Auditor’s recommendations. Council Member Yeager asked regarding the City’s current after-school program for an update as to when the evaluation would be complete. Deputy City Manager Jim Holgersson stated the dialogue and discussion of the evaluation will be presented to the All Children Achieve committee in April, in addition, he stated the City Manager’s May budget proposal also may include an after-school program recommendation that deals with many types of programs, which will also be available in April. On a call for the question, the Public Hearing was closed, the motion was carried unanimously, Ordinance No. 26859, entitled “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Moneys in the General Fund for Various Projects; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, was adopted. Vote: 11-0-0-0.

Redevelopment Agency Board portion of the meeting adjourned at 8:31 P.M.

Open Forum—

Ross Signorino spoke on defining City Council Committees and small business issues and Gregory Nichols spoke on parking regulations.

Adjournment

The Council of the City of San José adjourned in memory of Evelyn Sanders Cox, a longtime San José resident, devoted children’s advocate, exemplary community volunteer, and leader in the African-American community and in memory of James Boccardo, long-time San José resident, prominent attorney, and generous contributor to our community; also in memory of Danita Spurling, sister to Don Burrus, Mayor's office.

The Council of the City of San José adjourned at 8:35 P.M.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK

RegCncl/EW 3-25-03