CSJ Council Minutes Meeting Agenda, April 29, 2003

MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, APRIL 29, 2003

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

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

Absent: Council Members - None.

Upon motion unanimously adopted, the City Council recessed to Closed Session at 9:34 a.m. in Room 600 to (A) to confer with (1) Real Property Designated Representatives Carl Mosher for the City of San José and Robert Douglass for Cargill Salt, pursuant to Government Code Section 54956.8, for purchase terms including price and terms of payment of the Cargill Salt Pond property located along the Santa Clara/Alameda County line, at the confluence of Coyote Creek and Mallard Slough; (2) to confer with Real Property Designated Representatives Carl Mosher for the City of San José and Keith Slenkovich for the City of Santa Clara, pursuant to Government Code Section 54956.8, for the terms and condition for use of property for Silicon Valley Power 230 KV transmission line, located on the land of San José/Santa Clara Water Pollution Control Plant, north of Highway 237, west of Zanker Road; (B) to confer with Labor Negotiator pursuant to Government Code Section 54957.6 involving City Negotiator, City Manager Designee Alex Gurza and the San José Police Officers’ Association and International Association of Firefighters.

By unanimous consent, Council reconvened from Closed Session and recessed at 11:00 a.m. and reconvened in Regular Session at 1:33 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

Isaac Goldstein, a 1939 Holocaust survivor, gave a moving presentation in honor of Yom Ha Shoah, Holocaust Remembrance Day. (District 4)

Pledge of Allegiance

Mayor Gonzales led the Pledge of Allegiance.

Orders of the Day

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

CEREMONIAL ITEMS

1.1 Presentation of a commendation to Mr. Richard Friberg for his outstanding contributions to education and his service at the Metropolitan Education District during his 33 year career. (Yeager)

Documents Filed: None.

Discussion/Action: Mayor Gonzales and Council Member Yeager introduced Richard Friberg and his family, and Mayor Gonzales presented a commendation to Mr. Friberg on behalf of the City Council for his outstanding contributions to education in the San José community, including many unique programs, during his 33 year career.

1.2 Presentation of a commendation to the Jewish Family Service for their contributions to the community. (Reed)

(Orders of the Day)

Documents Filed: None.

Discussion/Action: Mayor Gonzales and Council Member Reed introduced Joe Sorger, Board President, and Andrea Rubin, Executive Director of the Jewish Family Services. Mayor Gonzales presented a commendation to Mr. Sorger on behalf of the City Council to the Jewish Family Services of Silicon Valley for its outstanding service to the community through the South Bay Holocaust Survivor’s Group and other community programs.

CONSENT CALENDAR

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

2.2 Final adoption of ordinances:

(a) ORD. NO. 26872 – Rezones certain real property situated at the south side of West Virginia Street, approximately 200 feet westerly of Bird Avenue. PDC 02-087

Documents Filed: Proof of Publication of the title of Ordinance No. 26872 executed on April 22, 2003, submitted by the City Clerk.

2.2 (a) ORD. NO. 26872 (Cont’d.)

Discussion/Action: Ordinance No. 26872 was adopted. Vote: 11-0-0-0.

(b) ORD. NO. 26873 – Rezones certain real property situated on the northeast corner of Rhodes Court and the Alameda. C 03-013

Documents Filed: Proof of Publication of the title of Ordinance No. 26873 executed on April 22, 2003, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26873 was adopted. Vote: 11-0-0-0.

(c) ORD. NO. 26874 - Rezones certain real property situated on the southeasterly corner of Monterey Highway and Blossom Hill Road. PDC 02-085

Documents Filed: Proof of Publication of the title of Ordinance No. 26874 executed on April 22, 2003, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26874 was adopted. Vote: 11-0-0-0.

(d) ORD. NO. 26875 - Rezones certain real property situated on the easterly side of US 101, northerly of Metcalf Road. PDC 03-012

Documents Filed: Proof of Publication of the title of Ordinance No. 26875 executed on April 22, 2003, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26875 was adopted. Vote: 11-0-0-0.

2.3 Approval of an agreement with the County of Santa Clara for the conveyance of a property located at the easterly terminus of Gleason Avenue at San Tomas Aquino Parkway to the City of San José at no cost to the City, and authorization for the Director of Public Works to execute any additional documents necessary to complete the transaction. CEQA: Exempt, PP02-02-018. Council District 1. SNI Area: Blackford. (Public Works)

(Deferred from 4/8/03 – Item 2.5)

[Rules Committee referral 4/16/03 – Item 3.2(g)(1)]

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated March 19, 2003, recommending approval of an agreement with the County of Santa Clara for the conveyance of a property located at the easterly terminus of Gleason Avenue at San Tomas Aquino Parkway to the City of San José at no cost to the City, and authorization for the Director of Public Works to execute any additional documents necessary to complete the transaction.

Discussion/Action: The agreement with the City of Santa Clara was approved and execution of the agreement was authorized. Vote: 11-0-0-0.

2.4 Acceptance of the Office of the City Auditor’s Report on Sales and Business Tax Audit Results for the Quarter Ended December 31, 2002. (City Auditor)

Documents Filed: City Auditor Gerald A. Silva, transmitting the Report from the Office of the City Auditor, Sales and Business Tax Audit Results, dated April 7, 2003.

Discussion/Action: The Sales and Business Tax Audit Results Report from the Office of the City Auditor, dated April 7, 2003, was accepted. Vote: 11-0-0-0.

2.5 Recommendation to name a park located at Sonora and Forrestal Avenues “Rosemary Gardens Park.” Council District 3. (Parks and Recreation Commission/City Clerk)

Documents Filed: Memorandum from City Clerk Patricia L. O’Hearn, dated April 18, 2003, recommending approval of a newly developed turnkey park located at the intersection of Sonora and Forrestal Avenues, “Rosemary Gardens.”

Discussion/Action: Mayor Gonzales called for public testimony. Joseph Fota spoke on the issue of naming the park “Rosemary Gardens.” The naming “Rosemary Gardens” park located at the intersection of Sonora and Forrestal Avenues, was approved. 10-0-1-0. Absent: Dando.

2.6 Adoption of the following appropriation ordinance amendments in the General Fund to:

(a) Decrease Contingence Reserve by $500,000; and

(b) Increase Senior Staff home loan appropriation by $500,000.

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

Documents Filed: Memorandum from Budget Director Larry Lisenbee, dated April 17, 2003, recommending approval of said Appropriation Ordinance amendments in the General Fund.

Discussion/Action: Ordinance No. 26878, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Monies in the General Fund for the Housing Assistance Program; and Providing that this Ordinance Shall Become Effective Immediately Upon Adoption”, was adopted. Vote: 11-0-0-0.

2.7 Report on Request for Quotation and award for the installation of 436 trunk mounted mobile computers to Mobile Man Inc., (Santa Clara, CA) for a total cost of $147,001, and authorizing the Director of General Services to execute the service order. CEQA: Not a Project. (General Services)

Documents Filed: Memorandum from Director of General Services Jose Obregon, dated April 9, 2003, recommending award for the installation of 436 trunk mounted mobile computers to Mobile Man Inc., for a total cost of $147,001, and authorizing the Director of General Services to execute the service order.

2.7 (Cont’d.)

Discussion/Action: The award of the service order to Mobile Man Inc., Santa Clara, was approved and execution of the agreement authorized. Vote: 11-0-0-0.

2.8 Adoption of a resolution authorizing the City Clerk to execute a quitclaim deed conveying 600 sq. ft. of real property situated in the Town of Los Gatos at the convergence of Camino Del Cerro and Ross Creek to the Town of Los Gatos, for no compensation. CEQA: Not a Project. (General Services)

Documents Filed: Memorandum from Director of General Services Jose Obregon, dated April 9, 2003, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71514, entitled: “A Resolution of the Council of the City of San José Authorizing the City Clerk to Execute a Quitclaim Deed to the Town of Los Gatos for Six Hundred Square Feet of Real Property Situated in the Town of Los Gatos at the Convergence of Camino Del Cerro and Ross Creek and Finding that the Benefits to the Public Interest Served by the Transfer are Equal to or Greater than the Value of the Property”, was adopted. Vote: 11-0-0-0.

2.9 Adoption of a resolution authorizing the Director of General Services to execute a third amendment to the agreement with Helen Streck dba C&H Solutions (East Palo Alto, CA), to extend the term to June 30, 2003, for the Phases II and III of the Records and Information Management (RIM) Project. CEQA: Not a Project. (General Services)

Documents Filed: Memorandum from Director of General Services Jose Obregon, dated April 15, 2003, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71515, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of General Services to Execute a Third Amendment to the Agreement with Helen Streck dba C&H Solutions for the Records and Information Project”, was adopted. Vote: 11-0-0-0.

2.10 (a) Report on Request for Proposal (RFP) and adoption of a resolution authorizing the Director of General Services to execute an agreement with the Aztec/MCE Corporation Group for a one year period, from June 2, 2003 to June 1, 2004, at a total cost not to exceed $90,000, for the maintenance oversight of the HP Pavilion, the San José Ice Center, the San José Repertory Theater, the Children's Discovery Museum, the Tech Museum of Innovation, and the Mexican Heritage Plaza, and

(b) Approval of three (3) additional one-year terms without further Council approval other than the appropriation of funding. CEQA: Not a Project.

(General Services)

Documents Filed: Memorandum from Director of General Services Jose Obregon, dated April 9, 2003, recommending adoption of said resolution, and approval of three (3) additional one-year terms without further Council approval other than the appropriation of funding.

Discussion/Action: Mayor Gonzales called for public testimony. Tom Lighthouse spoke on the issue. Resolution No. 71516, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of General Services to Negotiate and Execute an Agreement with AZTECMCE Corporation Group for Maintenance Oversight of Various Facilities,” was adopted. Vote: 11-0-0-0.

2.11 Adoption of a resolution authorizing the City Manager to negotiate and execute a grant agreement with the Cupertino School District in an amount not to exceed $318,000, for the purpose of designing and constructing athletic field improvements on the campus of Murdock Elementary School, contingent upon Council approval of the FY 2003-04 Parks and Community Facilities Capital Improvement Program, Council District 1 Parks Construction and Conveyance Fund, and direction to the City Manager to negotiate and execute the following action after the approval of the FY 2003-04 Parks and Community Facilities Capital Improvement Program. CEQA: Exempt, PP03-04-127. Council District 1. (Parks, Recreation and Neighborhood Service)

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated April 23, 2003, authorizing adoption of said resolution.

Discussion/Action: Resolution No. 71517, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Grant Agreement with the Cupertino School District to Develop Sports Fields on School District Property”, was adopted. Vote: 11-0-0-0.

2.12 Approval of two appointments to the Downtown Parking Board (Mayor)

Documents Filed: Memorandum from Mayor Gonzales, dated April 25, 2003, recommending approval of the two appointments to the Downtown Parking Board.

Discussion/Action: The appointment of John Schneider to the Downtown Parking Board, as the Downtown Business Association Representative, and Elizabeth Monley re-appointed as the At-Large Representative, was approved. Vote: 11-0-0-0.

2.13 Adoption of a resolution ordering the reorganization of territory designated as Bascom No. 37 which involves the annexation to the City of San José of 1.70 gross acres of land located at the southwest corner of Forest Avenue and Circo Avenue,and the detachment of the same from the West Valley Sanitation, County Lighting Service, Central Fire Protection, Santa Clara Valley County Water, and Area No. 01 (Library Services) County Service. CEQA: EIR Resolution 65459. Council District 6. (Planning, Building, and Code Enforcement)

Documents Filed: Memorandum from Director of Planning, Building and Code Enforcement Stephen M. Haase, dated April 9, 2003, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71518, entitled: “A Resolution of the Council of the City of San José Ordering the Reorganization of Certain Uninhabited Territory Designated as Bascom No. 37 Subject to Liability for General Indebtedness of the City”, was adopted. Vote: 11-0-0-0.

2.14 (a) Adoption of a resolution to accept the 2002-03 California Law Enforcement Equipment Program (CLEEP) Grant in the amount of $167,068, and authorizing the City Manager to execute any related documents; and

(b) Adoption of the following amendments to the Annual Appropriation Ordinance and Funding Sources Resolution in the General Fund for fiscal year 2002-03:

(1) Establish a 2002-03 CLEEP grant appropriation to the Police Department in the amount of $167,068.

(2) Increase the revenue from the State by $167,068.

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

Documents Filed: Memorandum from Budget Director Larry Lisenbee and Chief of Police William M. Lansdowne, dated April 9, 2003, recommending adoption of said resolution, and amendments to Annual Appropriation Ordinance and Funding Sources Resolution in the General Fund for fiscal year 2002-03.

Discussion/Action: Ordinance No. 26879, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Monies in the General Fund for the 2002-2003 California Law Enforcement Program (“CLEEP”) Grant; and Providing that this Ordinance Shall Become Effective Immediately Upon Adoption, and Resolution No. 71519, entitled, “A Resolution of the Council of the City of San José Accepting a Grant from the California Law Enforcement Equipment Program for the Purchase of High Technology Equipment for the Police Department in an Amount Not To Exceed $167,068 and Authorizing the City Manager to Execute all Related Documents”, and Resolution No. 71520, 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 General Fund”, were adopted. Vote: 11-0-0-0.

2.15 (a) Adoption of a resolution to accept the State of California, Office of Traffic Safety (OTS) 2003-05 DUI grant in the amount of $154,000, and authorizing the City Manager to execute the related grant agreement; and

2.15 (b) Adoption of the following amendments to the annual appropriation ordinance and the annual funding sources resolution in the General Fund (Fund 001) for fiscal year 2002-03: (Cont’d.)

(1) Establish an OTS 2003-05 DUI grant appropriation for the Police Department in the amount of $45,194; and

(2) Increase Revenue from the State by $45,194.

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

Documents Filed: Memorandum from Budget Director Larry Lisenbee, and Chief of Police William M. Lansdowne, dated April 9, 2003, recommending adoption of said resolution and amendment to the annual appropriation ordinance and annual funding sources resolution in the General Fund for fiscal year 2002-03.

Discussion/Action: Ordinance No. 26880, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Monies in the General Fund for the Office of Traffic Safety DUI Grant; and Providing that this Ordinance Shall Become Effective Immediately Upon Adoption”; Resolution No. 71521, entitled: “A Resolution of the Council of the City of San José Accepting a DUI Grant from the State of California, Office of Traffic Safety in an Amount Not to Exceed $154,000 and Authorizing the City Manager to Execute All Related Documents”, and Resolution No. 71522, 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 General Fund”, were adopted. Vote: 11-0-0-0.

2.16 Adoption of a resolution summarily vacating the 5-foot wide Public Service Easement lying on the westerly property line of 3550 Charter Park Drive. CEQA: Not a Project. Council District 7. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated April 9, 2003, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71523, entitled: “A Resolution of the Council of the City of San José Summarily Vacating a Portion of the Public Service Easement Within Assessors Parcel Number 462-19-020 (3550 Charter Park Drive) Located on the East Side of Charter Park Drive, Approximately 1100’ South of Hillsdale Avenue”, was adopted. Vote: 11-0-0-0.

2.17 Report on bids and award of contract for the River Glen Park New Restroom Building Project to the low bidder, Boulder Rock Landscape Construction, Inc., in the amount of $158,400, and approval of a contingency in the amount of $15,800. CEQA: Exempt, PP02-12-365. Council District 6. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated April 9, 2003, recommending award of contract, with related contingency, to low bidder Boulder Rock Landscape Construction, Inc.

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

2.18 (a) Report on bids and award of contract for Central Community Policing Center - Historical Renovation and Site Work Project to the low bidder, Tucker Construction, in the amount of $244,500 including the base bid and Add Alternate No. 1, and approval of a contingency in the amount of $24,500.

(b) Adoption of the following appropriation ordinance amendments in the Neighborhood Security Bond Fund:

(1) Increase the Central Community Policing Center Project by $75,000.

(2) Decrease the South San José Substation Project by $75,000.

CEQA: Exempt, HP02-023. Council District 4. (Public Works/City Manager's Office)

Documents Filed: (1) Memorandum from Director of Public Works Katy Allen, dated April 9, 2003, recommending award of contract, with related contingency, for the Central Community Policing Center, Historical Renovation and Site Work Project, to the low bidder, Tucker Construction, and adoption of appropriation ordinance amendments in the Neighborhood Security Bond Fund. (2) Supplemental memorandum from Director of Public Works Katy Allen, dated April 22, 2003, providing additional information after bids were opened.

Discussion/Action: The award of contract, with related contingency, for Central Community Policing Center, Historical Renovation and Site Work Project, to the low bidder, Tucker Construction, was approved and execution of the agreement authorized; Ordinance No. 26881, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Monies in the Neighborhood Security Bond Fund for the Central Community Policing Center Project; and Providing that this Ordinance Shall Become Effective Immediately Upon Adoption”, was adopted, and Staff was directed to include a statement in the analysis that the $75,000 loan will be repaid to the South San José Substation Project. Vote: 11-0-0-0.

2.19 Approval of the first amendment to the Master Agreement with Biggs Cardosa Associates, Inc. for structural engineering services for various projects, increasing compensation by $160,000, for a total agreement amount of $250,000, and extending the term from July 1, 2003 to June 30, 2005. CEQA: Not a project. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated April 9, 2003, recommending approval of first amendment to said Master Agreement with Biggs Cardosa Associates, Inc.

Discussion/Action: The first amendment to the Master Agreement with Biggs Cardosa Associates, Inc. was approved and execution of the agreement authorized. Vote: 11-0-0-0.

2.20 (a) Report on bids and award of contract for the Buena Vista Park Project to the lowest responsive bidder, Beacon Construction, Inc., in the amount of $179,884, and approval of a contingency in the amount of $9,000.

(b) Adoption of the following appropriation ordinance amendments in the Council District 6 Construction and Conveyance Tax Fund:

(1) Increase the appropriation for the Buena Vista Park Development Project (Appn 4469) by $93,000, from $162,000 to $255,000;

(2) Decrease the Ending Fund Balance by $93,000.

CEQA: Exempt, PP02-08-208. Council District: 6. SNI Area: Burbank/Del Monte. (Public Works/City Manager's Office)

Documents Filed: Memorandum from Director of Public Works Katy Allen, and Budget Director Larry Lisenbee, dated April 9, 2003, recommending award of contract, with related contingency, for the Buena Vista Park Project, to the lowest responsive bidder, Beacon Construction, Inc., and adoption of appropriation ordinance amendments in the Council District 6 Construction and Conveyance Tax Fund.

Discussion/Action: The award of the contract, with related contingency, for the Buena Vista Park Project, was approved and the execution of the agreement authorized; Ordinance No. 26882, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Monies in the Council District 6 Construction Tax and Property Conveyance Tax Fund for the Buena Vista Park Development Project; and Providing that this Ordinance Shall Become Effective Immediately Upon Adoption”, was adopted. Vote: 11-0-0-0.

2.21 Acceptance of the 2003 First Quarter San José Arena Authority Ticket Distribution Program Report. CEQA: Not a Project. (San José Arena Authority)

Documents Filed: Report of the 2003 First Quarter San José Arena Authority Ticket Distribution Program, dated April 9, 2003.

Discussion/Action: The Report of the 2003 First Quarter San José Arena Authority Ticket Distribution Program, was accepted. Vote: 11-0-0-0.

END OF CONSENT CALENDAR

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – April 16, 2003

Vice Mayor Dando, Chair

Documents Filed: Rules Committee Report, dated April 16, 2003.

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

3.2 Report of the Rules Committee – April 16, 2003 (Cont’d.)

Vice Mayor Dando, Chair

(b) City Council

(1) Review April 29, 2003 Draft Agenda

The Committee recommended approval of the April 29, 2003 City Council agenda with three additions.

(2) Add New Items to April 22, 2003 Amended Agenda

The Committee recommended four additions to the April 22, 2003 City Council Agenda.

(3) List of Reports Outstanding. Attachment: Report from City Manager dated April 15, 2003, transmitting reports outstanding for April 16, 2003.

The Committee noted and filed the City Manager’s report listing six staff reports outstanding for the April 22, 2003 Council meeting.

(1) State

Council Member Cortese reported that two spot bills regarding ABAG and MTC (authored by Assemblyman Salinas and Senator Torlakson) would be considered next January.

(2) Federal

Assistant City Manager Mark Linder stated that the Mayor’s trip to Washington, D.C. was successful, noting that a full report will be presented to Committee. In answer to Council Member Cortese’s request, Mr. Linder replied that staff would distribute a matrix of all legislation the City is currently tracking.

(d) Meeting Schedules

(1) Approve modifications to the 2003-2004 Budget Study Session Schedule. Attachment: Memorandum from Mayor Gonzales, dated April 15, 2003, recommending approval of revised schedule of Study Sessions.

May 12, 2003 1-5 pm 2003-2004 Budget Overview

Study Session on CSA/Appointee Review

May 14, 2003 8 am-noon Study Session on CSA/Appointee Review

May 15, 2003 8 am-noon Study Session on CSA/Appointee Review

1-5 pm Study Session on CSA/Appointee Review

May 16, 2003 8 am-noon Study Session on CSA/Appointee Review

May 19, 2003 8 am-noon Study Session on CSA/Appointee Review

May 21, 2003 8 am-noon Study Session on CSA/Appointee Review

1-5 pm Study Session on CSA/Appointee Review

May 22, 2003 8 am-noon Study Session on CSA/Appointee Review

1-5 pm Study Session on CSA/Appointee Review

May 23, 2003 1-5 pm Study Session on CSA/Appointee Review

3.2 Report of the Rules Committee – April 16, 2003 (Cont’d.)

Vice Mayor Dando, Chair

(e) The Public Record. Attachment: Memorandum from City Clerk Patricia L. O’Hearn, dated April 10, 2003, listing the items transmitted to Administration, and the items filed for the Public Record for the period March 26-April 10, 2003.

The Committee noted and filed Items (a), (b) and (d) on the Public Record and directed Administration to respond to Item (c), communication from Adams Broadwell Joseph & Cardoza.

(f) Boards, Commissions and Committees

(1) Airport Curfew Monitoring Committee. Attachment: Memorandum from City Clerk Patricia L. O’Hearn, dated April 11, 2003, recommending appointment for one community representative on the Airport Curfew Monitoring Committee.

The Committee recommended appointment of Robert Mezzetti II as a community representative on the Airport Curfew Monitoring Committee to serve an open-ended term.

(2) Recommendations from Parks and Recreation Commission on future planning of dog parks and dog areas. Attachment: Memorandum from Chairperson for Parks and Recreation Commission Patricia Eaton, dated April 8, 2003, providing a brief summary of a public meeting on the subject of dog parks, and a recommendation on the future planning of dog parks for the San José City parks.

The Committee directed the City Clerk to forward the Parks and Recreation Commission memorandum to appropriate City Departments, requesting responses to the recommendations.

(3) Recommendations from Parks and Recreation Commission for changes to the Policy on Naming City Facilities. Attachment: Memorandum from Chairperson for Parks and Recreation Commission Patricia Eaton, dated April 9, 2003, referencing park naming policy.

The Committee directed the City Clerk to send a reply to the Parks and Recreation Commission, thanking them for their letter and transmitting the following information: Recommendation #1 is consistent with current City policy; Rules Committee does not agree with Recommendation #2; and Rules Committee accepts Recommendation #3.

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

(1) Approval to acquire land for the development of a mini-park/streetscape at Gleason Avenue at San Tomas Aquino Parkway

The Committee placed this item on the April 29, 2003 Council agenda. See Item 2.3 for Council action taken.

(h) Administrative Reviews and Approval

There were none.

(i) Oral communications.

None were presented

(j) Adjournment

The meeting adjourned at 2:25 p.m.

Discussion/Action: Upon motion by Vice Mayor Dando, seconded by Council Member Chavez, and unanimously carried, the Rules Committee Report and actions of April 16, 2003, were accepted. Vote: 11-0-0-0.

3.4 Approval of a report back from the City Clerk on the methodology for performance measures and overview targets. (Mayor)

(Deferred from 3/11/03 – Item 3.4 et al., and 4/15/03 – Item 3.4)

Documents Filed: Memoranda from City Clerk Patricia L. O’Hearn, dated February 28, 2003, and April 25, 2003, recommending acceptance of the Report of the City Clerk on the Methodology for Performance Measures and Overall Targets.

Discussion/Action: City Clerk Patricia L. O’Hearn gave a staff presentation and stated in response to the Mayor’s FY 2002-2003 Budget Message, the 16 Methodologies for the Performance Measures and Overview Targets have been completed and are on file in the Quest Partnership Office of the City Manager, and that software has been identified which will enable the Standing Committee Reports to be posted more quickly and in response to both ADA requirements and time constraints. Council Member Campos asked about the results of the City Clerk’s Survey. City Clerk O’Hearn responded the survey closes this week and the results will be reported during the coming budget hearings. Upon motion by Council Member Chavez, seconded by Vice Mayor Dando, and unanimously carried, the Report of the City Clerk on the Methodology for Performance Measures and Overall Targets, was approved, with direction to the City Clerk to post all Standing Committee reports online, and report survey results during budget hearings. Vote: 11-0-0-0.

3.5 (a) Adoption of a resolution authorizing the City Manager to negotiate and execute:

(1) An agreement with Johns/Rife Group for move management services in connection with the move of City personnel from existing locations to the New Civic Center, in an amount not to exceed $634,000, and a term retroactive from November 1, 2002 to June 30, 2005.

(2) A first amendment to the agreement with M. Arthur Gensler Jr. & Associates, Inc. for facility systems management services for the New Civic Center Project, modifying the scope of services, increasing the maximum compensation by $83,500, from $87,000 to $170,500, and extending the term from June 30, 2003 to December 31, 2003.

(3) An amendment to the agreement with Anderson-Brulé Architects, Inc. for strategic operating-planning services for the New Civic Center Project, modifying the scope of services, increasing the maximum compensation by $109,300, from $99,910 to $209,210, and revising the schedule of performance to provide dates for delivery of services.

(4) A first amendment to the agreement with Apex Strategies for video taping structures for documentation purposes and other public outreach services for the New Civic Center Project, modifying the scope of services and increasing the compensation by $51,300 to $150,000.

(5) A second amendment to the agreement with Wilbur Smith Associates, Inc. for services related to the downtown civic center parking operations plan for the New Civic Center Project, extending the term from June 30, 2003 to June 30, 2005.

CEQA: Civic Plaza Redevelopment Plan EIR, Resolution No. 68905, PP98-03-072. SNI Area: University. (Public Works)

(b) It is recommended that Council take the following actions related to the renovation of the existing City Hall:

(1) Direction to the City Manager to establish a City Hall Renovation Construction Fund.

(2) Adoption of appropriation ordinance and funding sources resolution amendments with respect to the City Hall Renovation Construction Fund to:

(a) Establish a loan from the Sewage Treatment Plant Connection Fee Fund in the amount of $2,400,000.

(b) Establish a City Hall Renovation Project in the amount of $600,000.

(3) Adoption of appropriation ordinance amendments in the Sewage Treatment Connection Fee Fund to:

(a) Establish a loan to the City Hall Renovation Construction Fund in the amount of $2,400,000.

(b) Decrease the Reserve for Treatment Plant Expansion by $2,400,000.

3.5 (b) It is recommended that Council take the following actions related to the renovation of the existing City Hall. (Cont’d.)

(4) Adoption of a resolution authorizing the City Manager to negotiate and execute a continuation agreement with The Steinberg Group for architectural services in connection with the City Hall Renovation Project and modifying the scope of services, increasing the maximum compensation by $150,000 to $398,000 and extending the term from March 31, 2003 to June 30, 2005.

CEQA: Exempt, PP03-04-130. (Public Works/Finance/City Manager's Office)

Documents Filed: (1) Memorandum from Director of Public Works Katy Allen, dated April 9, 2003, recommending adoption of said resolutions, in reference to the new Civic Center Project. (2) Memorandum from Director of Public Works Katy Allen, Director of Finance Scott P. Johnson, Budget Director Larry Lisenbee, dated April 23, 2003, recommending City Manager establish a City Hall Renovation Construction Fund; adoption of appropriation ordinance and funding sources resolution amendments to the City Hall Renovation Construction Fund; adoption of appropriate ordinance amendments in the Sewer Treatment Connection Fee Fund; adoption of a resolution authorizing City Manger to negotiate and execute said continuation agreement with The Steinberg Group.

Discussion/Action: Council Member Cortese stated in the Staff memorandum, dated April 9, 2003, Item 3.5(a)(1), the term is retroactive from November 1, 2002, and asked for clarification. Director of Public Works Katy Allen stated the agreement expired November 2002, and Staff has been working with the Johns/Rife Group on the current proposal of the move management. She stated this consulting agreement coordinates and facilitates the moving of employees from City Hall, and leased spaces into the new Civic Center. Council Member Cortese asked why the Johns/Rife Group started in November 2002, and Director Allen replied there were planning activities performed prior to November 2002, and this is an agreement for the next stage of the proposal. Council Member Cortese requested a copy of the report, and Director Allen replied Staff is currently working on the plan for the facilitation of the move, but the first part of the report is available, and she would obtain copies for Council. Council Member Cortese referenced Item 3.5(b), $2.4 million being transferred from the Reserve for Treatment Plant Expansion to the City Hall Renovation Construction fund, and asked what is the term for repayment of the money, and Director Allen replied the $2.4 million will be repaid in January 2004 when the bond sells for the financing of the facility. Director of Finance Scott P. Johnson stated Staff is utilizing the $2.4 million as an interim loan through the end of January 2004, and is planning to obtain a detailed financing plan in conformance with Measure I for the renovation of City Hall.

Council Member Cortese asked what is the intended disposition of this building in regard to the planning portion, and City Manager Del Borgsdorf replied this building would be re-occupied by City Staff currently in leased facilities, but part of the assignments are encompassed by in-place agreements which involve completing the space planning for the new building, then incorporating those employees from leased facilities in this building. Council Member Cortese asked why the Steinberg Group’s contract is referred to as a continuation agreement and Director of Public Works Katy Allen replied theSteinberg Group competed during the bid process, and was selected as the consultant several years ago to do the assessment on this building, and the continuation agreement is to begin the proposal for reuse, the amount of mechanical upgrades and City reinvestment dollars.

Council Member Chavez asked what is the next step in terms of the future use of the current City Hall building, and Deputy City Manager Kay Winer replied Staff is in the preliminary stages of conceptualization, and is reviewing options of a citywide service delivery model that can be used in City owned buildings, and functional field oriented operations, such as Code Enforcement inspectors and the Traffic Management Center of the Department of Transportation. She stated the initial contract with the Steinberg Group was a master planning of the Traffic Management Center, and it was determined the City needed space to house some of its operations, Staff switched from a master planning effort to a space planning/occupancy plan for this building. Council Member Chavez asked if the Steinberg Group’s role is similar to Anderson Brulé’s role, and Assistant City Manager Mark Linder replied Staff is working with Anderson Brulé Group studying performance organization of the City in the new Civic Center. He stated that the Anderson Brulé Group accomplished the community outreach, employee and community surveys, employee focused groups, and cooperated with the other consultants. Director of Public Works Katy Allen stated the Steinberg Group’s work entails working with the departments that will be located in this building, and arranging physical spaces to meet needs and demands.

Vice Mayor Dando stated she was under the impression the Anderson Brulé contract was to ensure that community members, and employees were part of the planning process for City Hall, and Assistant City Manager Mark Linder replied the Anderson Brulé work was focused on the new Civic Center, and although the results of their work can be applied here, Staff has not planned to do an extensive community outreach at this building. Vice Mayor Dando asked if this building might be considered for other departments, such as Police, Code Enforcement and Community Based Organizations (CBO), and Deputy City Manager Kay Winer replied Staff has not discussed CBOs in the planning efforts, but plans to house City operations in this building. She stated Staff has to meet requirements, a capacity for growth in this building, and in the new Civic Center, and stated the Fire Department Administration, the Code Enforcement Inspectors, and the Traffic Management Center may be proposed. Vice Mayor Dando stated this is a major change from discussions in the past, and stated the only item that was discussed openly in a forum was the Police Department.

Mayor Gonzales stated the study will determine how many City employees can be accommodated into the new Civic Center, the best use for this building, and Staff plans to review the needs of the primary departments, the Police and Fire Departments, and stated this is a financial action to set up the funding mechanism. Director of Finance Scott P. Johnson stated the Measure I plan reviews both the new Civic Center and the existing City Hall as one project, and the definition of the financing for the project is the new Civic Center. He stated a number of Measure I assumptions reviewed were leases for various City departments, a financial study was performed, and determining which departments would be located at the new Civic Center or the existing City Hall. Vice Mayor Dando stated her interpretation was the savings of the leases off-site were to finance the new Civic Center, those individuals would relocate into the new Civic Center, and the City would assemble employees in one location, with no leased space. Council Member LeZotte asked for information of the space planning effort of the Mayor’s and Council’s offices, and Deputy City Manager Terry Roberts stated Staff is currently working on the preliminary planning, and within 30 to 60 days Council will receive the information about spaces.

Upon motion by Council Member Cortese, seconded by Council Member Chavez and unanimously carried, Ordinance No. 26883, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Monies in the City Hall Renovation Construction Fund for the City Hall Renovation Construction Project; and Providing that this Ordinance Shall Become Effective Immediately Upon Adoption”, and Ordinance No. 26884, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Monies in the Sewage Treatment Plant Connection Fee Fund to Establish a Loan to the City Hall Renovation Construction Fund; and Providing that this Ordinance Shall Become Effective Immediately Upon Adoption”, and Resolution No. 71524, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement with Johns/Rife Group, a First Amendment to the Agreement with M. Arthur Gensler Jr. & Associates, Inc., an Amendment to the Agreement with Anderson-Brulé Architects, Inc., a First Amendment to the Agreement with Apex Strategies, and a Second Amendment to the Agreement with Wilbur Smith Associates, Inc. in Connection with the New Civic Center Project”, and Resolution No. 71525, 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 City Hall Renovation Construction Fund”, and Resolution No. 71526, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Continuation Agreement with the Steinberg Group for Architectural Services in Connection with the City Hall Renovation Project”, were adopted, and Staff was directed to provide Council with a report (Item 1) of the first phase pertaining to the planning portion of the agreement with Johns/Rife Group; to report back to Council regarding the repayment of $2.4 million loan in January 2004 to the Reserve for Treatment Plant Expansion Fund. Vote: 11-0-0-0.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.3 Adoption of a resolution approving a change in the source of funding for a loan of up to $7,240,416 to ROEM Development Corporation, or its designated affiliate, from the Extremely Low-Income Housing Reserve Fund (ELI), to the 20% Low- and Moderate-Income Housing Fund, for the acquisition, construction, and permanent financing of the Cherryview Senior Apartments, a 126-unit senior rental development located at 5067 Almaden Expressway. CEQA: Negative Declaration, PDCSH-02-032. Council District 9. (Housing)

4.3 (Cont’d.)

Documents Filed: Memorandum from Director of Housing Leslye Corsiglia, dated April 9, 2003, recommending adoption of said resolution.

Discussion/Action: Upon motion by Council Member Chirco, and seconded by Vice Mayor Dando, and unanimously carried, Resolution No. 71527, entitled: “A Resolution of the Council of the City of San José: (1) Approving a Change in the Source of Funding for a Loan of up to $7,240,416 to Roem Development Corporation, or its Designated Affiliate, from the Extremely Low-Income Housing Reserve Fund to the 20% Low- and Moderate-Income Housing Fund for the Acquisition, Construction and Permanent Financing of the Cherryview Senior Apartments (The Oaks at Almaden), a 126-Unit Senior Rental Development Located at 5067 Almaden Expressway; (2) Authorizing the City Manager to Approve the Specific Business Terms of the Conditional Grant; (3) Finding that the Use of 20% Housing Funds is of Benefit to Redevelopment Project Areas in San José; and (4) Authorizing the Director of Housing to Execute All Documents Necessary to Carry out the Purposes of this Resolution”, was adopted. Vote: 11-0-0-0.

4.4 PUBLIC HEARING ON APPEAL of the Planning Director’s decision to approve a Tentative Condominium Map permit for a project located at the southeast corner of Miller and Asbury Streets on a 0.89 gross acre site in the A(PD) Planned Development Zoning District, to allow the consolidation of 6 parcels into one condominium lot for residential and commercial uses. (Green Valley Corp, Owner/Developer). CEQA: Mitigated Negative Declaration. (Planning, Building, and Code Enforcement)

PT 02-101 - District 3

Documents Filed: (1) Report of the Staff of the Department of Planning, Building and Code Enforcement, on Project File No. PT-02-101, dated April 9, 2003, recommending upholding Director of Planning’s decision. (2) Supplemental memorandum from Secretary of Planning Commission Stephen M. Haase, dated April 24, 2003, transmitting the Planning Commission recommendation for approval of the Tentative Condominium Map permit. (3) Proof of Publication of Notice of Public Hearing, executed on April 11, 2003, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the Appeal of the Planning Director’s decision to approve a Tentative Condominium Map permit for the subject Planned Development Zoning District. Christine Griffith, attorney for Boyd Properties, Jessie Hall, representing the applicant Barry Swenson Builder, spoke on the issue. Upon motion by Council Member Chavez, seconded by Vice Mayor Dando, and unanimously carried, the public hearing was closed, the recommendation of the Planning Commission was approved, and Resolution No. 71528, entitled: “A Resolution of the Council of the City of San José Granting, Subject to Conditions, a Tentative Condominium Map to Use Certain Real Property Described Herein for the Purpose of Residential and Commercial Condominium Uses”, was adopted. Vote: 11-0-0-0.

4.5 (a) Adoption of a resolution:

(1) Approving certain business terms to guide negotiation of a potential development agreement that would facilitate the expansion of eBay, Inc.'s business operation by up to two million square feet at 2211 North First Street; and

(2) Directing staff to pursue with eBay, Inc. the possibility of rezoning its current headquarters' site at 2145 Hamilton to allow for better utilization of the site in conjunction with the light rail expansion.

CEQA: Exempt, PP03-04-131. Council Districts 4&6. (Economic Development)

(b) Adoption of a resolution authorizing the City Manager to negotiate and execute the following agreements with eBay, Inc. and Novell, Inc.:

(1) An assignment of the Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions by and between the City of San José and Novell, Inc., dated December 20, 2002, to eBay for the property located on Orchard Parkway at Charcot Avenue; and, if necessary,

(2) A reimbursement agreement to reimburse the City for the costs, not to exceed $326,000, incurred if the City should need to recommence the process of preparing the necessary bond documents related to the financing of the acquisition of the property.

CEQA: Exempt, PP03-04-135.

(Attorney’s Office)

(Rules Committee referral 4/23/03)

Documents Filed: (1) Memorandum from Director of Economic Development Paul Krutko, dated April 22, 2003, recommending adoption of said resolution. (2) Memorandum from City Attorney Richard Doyle, dated April 22, 2003, recommending adoption of said resolution authorizing the City Manager to negotiate and execute said agreements with eBay, Inc., and Novell, Inc.

Discussion/Action: Mayor Gonzales stated there was an announcement last week outlining the provisions to enable eBay, one of San José’s best companies, to remain in San José. He stated the Council was notified last fall that eBay was pursuing the opportunity to expand in a local community, and the City of San José worked very expeditiously to make sure the leadership at eBay knew of every opportunity to expand in San José. Mayor Gonzales called for public testimony. Rick Freidman, representing eBay, and William Garbett spoke on the issue. Vice Mayor Dando stated other cities in the South Bay were hoping to have eBay expand in their city, and because of Mayor Gonzales’ direction, and that he went one on one with eBay executives, not only to keep eBay in San José but also encourage eBay to grow here. She stated the Mayor deserves recognition from Council and the community for his efforts, and stated that having the Hamilton Avenue headquarters of eBay in San José brings an additional asset to the community. Vice Mayor Dando moved approval of the Staff, and the City Attorney’s recommendations. Council Member Chavez seconded the motion. Council Member Reed stated concern that 6 months is not enough time to accomplish the Development and Disposition Agreement (DDA). He stated there are provisions for two extensions but asked how the DDA will be monitored and should a review hearing be set in 6 months. Director Economic Development Paul Krutko replied Council will be passing a resolution of business terms which will be the basis for the DDA once the EIR is successfully completed, and stated the team Staff has put together is indicative of a change in philosophy that will facilitate this project. On a call for the question, the motion carried unanimously, and Resolution No. 71529, entitled: “A Resolution of the Council of the City of San José Approving Certain Business Terms for the Negotiation of a Development Agreement with eBay and Directing the City’s Director of Planning, Building and Code Enforcement to Work with eBay in Pursuing a Rezoning of Certain Real Property Located Near the Corner of Hamilton and Bascom Avenues to an Appropriate Zoning District for Better Utilization of the Site”, and Resolution No. 71530, “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute Agreements with eBay, Inc. and Novell, Inc. to: (1) Assign the City’s Rights to Purchase Property from Novell to eBay; and, if Necessary, (2) Provide for Reimbursement of City by eBay and Novell for Costs of Recommencing the Bond Transaction to Purchase the Novell Property”, were adopted. Vote: 11-0-0-0.

RECREATION & CULTURAL SERVICES

5.2 (a) Adoption of a resolution to increase fees in Fiscal Year 2002-2003 at Rancho del Pueblo Golf Course as described in this staff report superseding the fees approved by Resolution No. 68996, and authorizing the City Manager to approve future fee increases at the facility and to establish discount rates for groups and promotional packages as described in the staff report; and,

(b) Adoption of a resolution authorizing the City Manager to negotiate and execute a second amendment to the Operations and Maintenance Agreement extending the submission date to September 1, 2002 for the final audit for the period of March 1, 2000 through June 30, 2001, and extending the submission date to May 30, 2003, for the final audit for the period of July 1, 2001 through June 30, 2002.

CEQA: Not a Project. Council District 5. (PRNS)

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated April 9, 2003, recommendation adoption of said resolutions.

Discussion/Action: Council Member Campos asked if the City Manager will have authority to establish discount rates for groups, and Director of Parks, Recreation and Neighborhood Services Sara L. Hensley stated her recommendation is for the City Manager to move forward with the company performing the Operation and Maintenance agreement with the City, regarding special fees for special events and activities, youth rates that come by request to the City Manager for approval. Director Hensley stated the company does an environmental scan of the current golf courses around the area that are similar, researches other golf courses, and recommends applicable rates. She stated if the company requests a special rate for weekends, youth fees, summer months or charity events, a request would be forwarded to the City Manager for approval. Council Member Campos stated when the Rancho Del Pueblo Golf Course opened there was low attendance because the public was unaware of the course, but the one benefit was the $2.00 cost, which was cheaper than any other golf course, and Director Hensley replied golf courses across the South Bay have seen a decline, and Staff will be increasing the attendance of the golf course by creating opportunities for special rates to entice the public, and also a wonderful program for disadvantaged youth. Council Member Campos stated concern if Rancho Del Pueblo is equal to all golf courses, the public will choose to frequent those courses instead of Rancho Del Pueblo, and requested Staff report back in April 2004 regarding how the increased fees are impacting attendance. Upon motion by Council Member Campos, seconded by Council Member Reed, and unanimously carried, Resolution No. 71531, entitled: “A Resolution of the Council of the City of San José Increasing Fees at Rancho Del Pueblo Golf Course in Fiscal Year 2002-2003 and Authorizing the City Manager to Approve Future Fee Increases and Establish Discount Rates for Groups and Promotional Packages”, and Resolution No. 71532, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Second Amendment to the Operations and Maintenance Agreement with San José Golf, LLC to Extend the Dates for Submitting Final Audits”, were adopted, and Staff was directed to return to Council in one year with a report on activities and impact of increased fees on attendance at the Rancho Del Pueblo Golf Course. Vote: 11-0-0-0.

5.3 Adoption of a resolution authorizing the City Manager to submit a grant application in an amount not to exceed $500,000, to the National Park Service’s Land and Water Conservation Fund Program for the acquisition of land associated with the Willow Glen Spur Trail and to return to Council to accept the funds with an identified source of funding for the City’s required dollar-for-dollar match. CEQA: Exempt, PP02-12-370. Council District 6. (Parks, Recreation and Neighborhood Services)

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated April 24, 2003, recommending adoption of said resolution.

Discussion/Action: Upon motion by Council Member Yeager, seconded by Council Member LeZotte, and unanimously carried, Resolution No. 71533, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Submit a Grant Application to the California Department of Parks and Recreation, Local Administrator of the Land and Water Conservation Fund Program, for the Acquisition of Land Associated with Willow Glen Spur Trail for a Total Project Amount of $500,000, with a $250,000 Reimbursement from the Land and Water Conservation Fund”, was adopted, and Staff’s recommendation was modified to read: (Staff) to return to Council to accept the funds with an identified source of funding for the City’s required 50% match. Vote: 11-0-0-0.

TRANSPORTATION SERVICES

6.2 Report on bids and award of contract for the FY 2002-03 Slurry Seal 2003 project to the low bidder, Graham Contractors, Inc. in the amount of $996,660, plus a 10% contingency in the amount of $99,666, for a total award amount not to exceed $1,096,326. CEQA: Exempt, PP03-04-104. (Transportation)

Documents Filed: Memorandum from Director of Transportation James R. Helmer, dated April 9, 2003, recommending award of contract, with related contingency, to the low bidder, Graham Contractors, Inc., for the FY 2002-03 Slurry Seal 2003 project.

Discussion/Action: Council Member LeZotte asked how the contract language addresses slurry seal in regard to quality control, and Director of Transportation James R. Helmer replied every contract Staff issues through private contractors have quality control provisions, and required specifications for the contractors to follow. He stated pertaining to the specifics of this contract with the slurry seal application process, it is primarily built around the notification to the community prior to the project, and emphasis is placed on traffic control during the course of the project. He stated continuous communication lines remain open for complaints, and Staff assists the contractors in terms of receiving and addressing complaints in a timely manner. He stated one of the issues to be addressed is coordination of the work with the Recycle Plus program, and in essence there are a number of components encountered through the pre-construction conferences with the contractor to acquaint them with the City’s specific quality control issues.

Council Member LeZotte asked if there is a team that inspects the work after it has been completed, and Director Helmer replied the Infrastructure Maintenance Division completes annual inspections of the roadway systems, inspects and monitors the work that has been performed, and monitors the entire City every 4 years. He stated during the course of the project, after project completion, and throughout the contractor’s guarantee period, Staff ensures the contract is met. Council Member LeZotte asked what is the contractor’s usual guarantee, and Director Helmer replied he would return to Council with the information. Council Member LeZotte moved approval of the Staff recommendation to award the contract to Graham Contractors, Inc. Council Member Chavez seconded the motion. Council Member Gregory asked how Staff determines which streets receive this treatment over the life of the contract, and Director Helmer replied the City has about 800 miles of roadway that receives this sealing process, and the desired goal is to treat those streets about one every 8 years. He stated Staff reviews all capital construction projects, utility plan work, and attempts to work around capital projects that are in the pipeline. He stated the City uses the pavement management system, a process to measure the condition of the pavement, and based upon the condition of the pavement, the level of funding, and type of work, Staff sets the program for the year. Council Member Gregory asked for a list of streets targeted for slurry seal next year in District 7, and Director Helmer replied he would provide a list to Council for this contract. Vice Mayor Dando stated the debate of slurry seal would probably persist because San José is the only city that continues to use chip seal, and stated the City uses slurry seal to provide smoother roadways in business and high concentration areas, but the neighborhoods deserve slurry seal also.

Council Member Cortese stated his preference to vote on this item after receiving the list in order to understand how the criteria is being applied on a neighborhood by neighborhood basis, and asked whether this item could be deferred one week. Director Helmer replied Staff prefers to award this project in May in order to complete as much work as possible before June 30, 2003. Mayor Gonzales stated the recommended course of action is to enable Staff to continue with the work before the end of this fiscal year, and Council Members with concerns should meet with the Director of Transportation. Council Member Cortese requested future reports be brought into the Building Better Transportation Committee. Council Member Williams asked if the contractors prepare the roadway cracks before the slurry seal is applied. Director Helmer replied last October 2002 Council approved a contract to prepare 45 miles of streets, the process has been completed, the streets are ready, and next year Staff is reviewing alternative delivery models for preparing those streets. Mayor Gonzales expressed concern regarding the restriping of roadways after a contractor has completed work, and asked Staff to address the issue at budget time. On a call for the question, the motion carried unanimously, and the award of the contract, with related contingency, to the low bidder, Graham Contractors, Inc., was approved and execution of the agreement authorized with the condition that if Council Members have issues within their districts after meeting with Director of Department of Transportation, those districts be returned to Council for resolution; and Staff was directed to report back with information on the length of time that contractor work is usually guaranteed, and to address road re-striping issues during the budget process. Vote: 11-0-0-0.

6.3 Approval of the following actions to provide pavement maintenance along Capitol Avenue:

(a) Adoption of a resolution authorizing the City Manager to negot