CSJ Council Minutes Meeting Agenda, May 27, 2003

MINUTES OF THE CITY COUNCIL

SAN JOSE, CALIFORNIA TUESDAY, MAY 27, 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 9:34 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 De La Rosa v. City of San José, et al.; to discuss anticipated litigation pursuant to Subsection (b) of Government Code Section 54956.9, in one matter involving significant exposure to litigation; and to confer with Labor Negotiator Pursuant to Government Code 54957.6: (1) City Negotiator: City Manager designee Alex Gurza; San José Police Officers’ Association/ (2) City Negotiator: City Manager designee Alex Gurza; International Association of Firefighters; (3) City Negotiator: City Manager designee Alex Gurza; Municipal Employees Federation; (4) City Negotiator: City Manager designee Alex Gurza; Confidential Employees Organization; (5) City Negotiator: City Manager designee Alex Gurza; City Association of Management Personnel; (6) City Negotiator: City Manager designee Alex Gurza; Association of Maintenance Supervisory Personnel; (7) City Negotiator: City Manager designee Alex Gurza; Operating Engineers, Local 3; (8) City Negotiator: City Manager designee Alex Gurza; International Brotherhood of Electrical Workers; (9) City Negotiator: City Manager designee Alex Gurza; Association of Building and Mechanical and Electrical Inspectors.

By unanimous consent, Council reconvened from Closed Session and recessed at 10:50 a.m. and reconvened 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 (District 5)

Pastor Antonio Cano of the San José Central Seventh Day Adventist Church delivered the Invocation.

Pledge of Allegiance

Mayor Gonzales led the Pledge of Allegiance.

Orders of the Day

Item 10.1 was considered in a Joint City Council/Redevelopment Agency Board session.

CEREMONIAL ITEMS

1.1 Presentation of commendations to Mexican Heritage Plaza, the English Department of Santa Clara University, and Heyday Books. (Campos)

(Deferred from 5/13/03 – Item 1.5)

Documents Filed: None.

Discussion/Action: Mayor Gonzales and Council Member Campos presented commendations to Juana Gevarra and Maria De La Rosa from the Mexican Heritage Plaza, Francisco Jimenez from the Santa Clara University English Department, and Heyday Books for their supportive efforts towards encouraging literacy in San José. Vice Chair of the Board of Directors for the Mexican Heritage Plaza Juana Gevarra thanked the Mayor and Council for their acknowledgements and support.

1.2 Presentation of plaque to Elbert Reed for 4 years 9 months service on the Campaign Finance Review and Ethics Board. (Mayor)

Documents Filed: None.

Discussion/Action: Mayor Gonzales presented a plaque to Elbert Reed for his 4 years and 9 months of service on the Campaign Finance Review and Ethics Board. Elbert Reed thanked the Mayor and Council for their support and commendations for his service.

1.3 Presentation of a plaque to the City of San José from the American Lung Association commemorating 5 years of compliance to Assembly Bill 13, “No Smoking in Bar and Restaurant Initiative” and for earning a “Gold Status” level of compliance. (City Manager’s Office)

(Deferred from 5/20/03 – Item 1.6)

Documents Filed: None.

Discussion/Action: Mayor Gonzales accepted a plaque given to the City of San José from the American Lung Association in commemoration of a 5 year compliance to the Assembly Bill 13, “No Smoking in Bar and Restaurant Initiative” and for earning a “Gold Status” level of compliance. Mayor Gonzales accepted the plaque and thanked the American Lung Association for the honorary achievement.

1.4 Presentation of an award to Tom Manheim, Public Outreach Manager, from the California Association of Public Information Officials (CAPIO) for receipt of the Paul B. Clark Award, a lifetime achievement award that recognizes outstanding contributions in the field of public information. (City Manager’s Office)

(Rules in Lieu referral 5/21/03)

Documents Filed: None.

Discussion/Action: Mayor Gonzales was joined at the podium by President of the California Association of Public Information Officials (CAPIO) to present the Paul B. Clark Award to Tom Manheim in recognition of his outstanding contributions within the field of public information. Tom Manheim thanked the Mayor, Council, and CAPIO for the award.

1.5 Presentation of a proclamation recognizing this year’s San José Greek Festival. (Yeager)

(Rules in Lieu referral 5/21/03)

Documents Filed: None.

Discussion/Action: Mayor Gonzales and Council Member Yeager presented a proclamation to St. Nicholas Greek Orthodox Church in recognition of this year’s San José Greek Festival.

CONSENT CALENDAR

2.2 Final adoption of ordinances:

(a) ORD. NO. 26895- Amends Section 4.46.050 of Chapter 4.46 and Section 4.47.040 of Chapter 4.47 of Title 4 and repeals Section 24.02.470 of Chapter 24.02 of Title 24 of the San José Municipal Code to make nonsubstantive revisions to the provisions regarding the rate of tax.

Documents Filed: Notice of Proof of publication of title of Ordinance No. 26895, executed on May 23, 2003, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26895 was adopted. Vote: 11-0-0-0.

2.3 (a) Approval of an ordinance amending Chapter 3.36 of Title 3 of the San José Municipal Code (Police and Fire Department Retirement Plan) to update the medical examination procedures for disability retirement applications, to clarify the calculation of disability retirement allowances, and to clarify the calculation of survivorship benefits payable because of a service-connected death. CEQA: Exempt, PP03-05-152. (Boards of Administration for the Police & Fire Department Retirement Plan)

(b) Approval of an ordinance amending Section 3.44.010 of Chapter 3.44 of Title 3 of the San José Municipal Code to clarify that cost-of-living adjustments apply to surviving spouse benefits provided under the optional settlement provisions of the Police and Fire Department Retirement Plan. CEQA: Exempt, PP03-05-153. (Boards of Administration for the Police & Fire Department Retirement Plan)

Documents Filed: (1) Memoranda from Boards of Administration for the Police and Fire Department Retirement Plan, dated May 7, 2003, recommending the approval of said ordinance amending Chapter 3.36 of Title 3 of the San José Municipal Code and recommending approval of said ordinance amending Section 3.44.010 of Chapter 3.44 of Title 3.

Discussion/Action: Ordinance No. 26901, entitled: “An Ordinance of the City of San José Amending Chapter 3.36 of Title 3 of the San José Municipal Code (Police and Fire Department Retirement Plan) to Revise the Procedures for Medical Examinations, to Clarify Calculations of Disability Retirement Benefits, and to Clarify Calculations of Survivorship Benefits Payable Because of a Service-Connected Death”, and Ordinance No. 26902, entitled: ”An Ordinance of the City of San José Amending Section 3.44.010 of Chapter 3.44 of Title 3 of the San José Municipal Code to Clarify That Cost-of-Living Adjustments Apply to Surviving Spouse Benefits Provided Under the Optional Settlement Provisions of the Police and Fire Department Retirement Plan”, were passed for publication. Vote: 11-0-0-0.

2.4 Approval of an ordinance amending Chapter 4.80 of Title 4 of the San José Municipal Code by repealing Part 3 relating to the Alviso Water Service Area Extension and Improvement Fund and amending Part 12 relating to the Consolidated Water Utility Fund, and amending Chapter 15.08 of Title 15 of the of the San José Municipal Code to add a new Part 2.5 relating to rates and charges for potable water service. (City Attorney’s Office)

Documents Filed: (1) Supplemental memorandum from City Attorney Richard Doyle, dated May 23, 2003, correcting non-substantive errors in the proposed ordinance. (2) Memorandum from City Attorney Richard Doyle, dated May 22, 2003, recommending approval of said ordinance.

Discussion/Action: Ordinance No. 26903, entitled: “An Ordinance of the City of San José Amending Chapter 4.80 of Title 4 of the San José Municipal Code by Repealing Part 3 Relating to the Alviso Water Service Area Extension and Improvement Fund and Amending Part 12 Relating to the Consolidated Water Utility Fund, and Amending Chapter 15.08 of Title 15 of the San José Municipal Code to Add a New Part 2.5 Relating to Rates and Charges for Potable Water Service“ was passed for publication with direction for Staff to clarify the ordinance before returning for final adoption: to clarify the number of capital reserve funds, the operational financial audit requirement, staffing ratios, a requirement stating debt service be paid prior to general fund transfers, in-lieu fees, and the goal stating municipal water rates remain below the average rates paid by the residential water customers. Vote: 10-1-2-0. Noes: Reed, Absent: Campos, Chavez.

2.5 Recommendation to name a park at Winfield Boulevard and Chynoweth Avenue “Cilker Park.” Council District 10. CEQA: Not a Project. (Parks and Recreation Commission/City Clerk)

Documents Filed: (1) Memorandum from City Clerk Patricia L. O’Hearn, dated May 27, 2003, recommending the naming of said park to “Cilker Park”. (2) Memorandum from Vice Mayor Pat Dando, dated May 23, 2003, recommending Council name said park to William H. Cilker Park and direction for Staff to work with the Council District 10 Offices to procure a plaque to be placed in the park stating the significance of the name.

Discussion/Action: Dave Sandretto, David Noel, and Greg West spoke on the issue. Vice Mayor Dando commented after recent discussions in community meetings with her consituents it was decided by the community to name the newly developed park after William H. Cilker. who began the Cilker family legacy in San Jose which spans their instrumental work with the community through their family’s activism and philanthropic efforts. Vote: 11-0-0-0.

2.6 (a) Preliminary approval of the report as filed by the Willow Glen Business Improvement District Advisory Board, or as modified by Council; and adoption of a resolution of intention to levy the annual assessment for 2003-2004, and set June 17, 2003 at 1:30 p.m. as the date and time for the public hearing on the levy of the proposed assessments. CEQA: Exempt, PP 03-05-165. Council District 6. (Economic Development)

(b) Preliminary approval of the report as filed by the Japantown Business Improvement District Advisory Board, or as modified by Council; and adoption of a resolution of intention to levy the annual assessment for 2003-04, and set June 17, 2003 at 1:30 p.m. as the date and time for the public hearing on the levy of the proposed assessments. CEQA: Exempt, PP 03-05-165. Council District 3. SNI: 13^th Street. (Economic Development)

Documents Filed: (1) Memoranda from Director of Economic Development Paul Krutko, dated May 7, 2003, recommending preliminary approval of 2003-2004 Budget Report and adoption of said resolution and recommending preliminary approval of 2003-2004 Budget Report and adoption of said resolution of intention to levy 2003-2004 annual assessments.

Discussion/Action: Resolution No. 71566, entitled: “A Resolution of the Council of the City of San José Declaring It’s Intent to Levy the Assessment for Fiscal Year 2003-2004 in the Willow Glen Business Improvement District Pursuant to the Parking and Business Improvement Area Law of 1989; and Setting a Date and Time for the Public Hearing” and Resolution No. 71567, entitled: ”A Resolution of the Council of the City of San José Declaring It’s Intent to Levy Assessments for Fiscal Year 2003-2004 in the Japantown Business Improvement Area Law of 1989; and Setting the Date and Time for the Public Hearing”, were adopted. Vote: 11-0-0-0.

2.7 Approval of the draft Request for Proposals that integrates Customer Service and Hauler Contract Management for Recycle Plus and the Municipal Water System for the Utility Billing System. CEQA: Not a Project. (Environmental Services/Finance/Information Technology) (Council referral 5/13/03 – Item 7.3)

Documents Filed: (1) Memorandum from Director of Environmental Services Carl Mosher, Finance Director Scott Johnson, and Chief Information Officer Wandzia Grycz, dated May 16, 2003, recommending approval of the Request for Proposal for the Utility Billing System. (2) Draft copy of Request for Proposal for An Integrated CIS and Hauler Management System (CUSP Phase One), dated July 31, 2003.

Discussion/Action: William Garbett spoke on the issue. Council Member Cortese asked Staff if proponents would be allowed to submit alternates to proposals as noted in the Request for Proposal (RFP). Director of Environmental Services Carl Mosher stated a proposer could submit a proposal with an alternative or an alternate proposal. Council Member Cortese stated Council Member Chavez previously requested for the ability of people to make payments for the Healthy Neighborhood Venture Fund recipients and it was not included in Staff's memorandum but was included in the RFP, he asked if the request will be added. Director Mosher stated the issue of bill calculations was discussed in the RFP and it referred to the multiple services billing system and would include the Recycle Plus, Municipal Water System programs with the potential addition of the Storm Sewer and Sewer Service programs as well, and future plans include incorporating new language to the RFP to allow the addition of new programs to the billing system and they would add a sentence to Page 17 of the current RFP clarifying their system.

Council Member Williams referred to Page 19 of the RFP regarding requirements reliability and asked Staff if the proposer will be supplying that service and would it include hardware as well. Chief Information Officer Wandzia Grycz stated the proposer will be supplying the City solutions to meet the reliability and availability requirements and would ensure the system be available to the City's customers and operating departments and those services would apply to the hardware. Council Member Williams asked Staff how were the performance criteria parameters decided upon for the new services. Chief Information Officer Wandzia Grycz stated the criteria was determined upon what was needed for the proposed system for operating departments regarding turnaround time and the current and future needs of the City.

Council Member Chavez asked Staff to clarify the reasoning for adding additional parameters to the RFP. Finance Director Scott Johnson stated the additional parameters would clarify to vendors that particular functions would be required by the City to enable choosing the vendor. Mayor Gonzales stated the cost of adding on additional parameter requirements are unknown and may be an issue with the proposals. Director Mosher stated if the proposed additional language is incorporated into the RFP, the proposers are aware of those changes and Staff will return to Council to clarify how it was utilized and present to Council the costs associated with those changes. Council Member Chavez asked Staff if the storm and sewer fees were included in the services billing. Director Mosher stated the residential storm sewers and sewer services are billed on the county taxes, the portion of the commercial industrial sewer services and the storm sewer services are billed through the Finance departments and through individual accounts.

Council Member Chavez asked Staff what would be the downside of placing the storm sewers in place in regards to growth measures. Director Johnson stated the City wanted the scope of the project to mirror the services they currently provide and they will need to work with the County in that transition if the City chooses to take over the billing for services. Council Member Chavez asked Staff if the City currently pays the County to provide billing services and how much is charged. Director Johnson stated the County billing fee was renegotiated and significantly reduced. Upon motion by Council Member Chavez, seconded by Council Member Cortese, and unanimously carried, the draft Request for Proposals that integrates Customer Service and Hauler Contract Management for Recycle Plus and the Municipal Water System for the Utility Billing System was approved. Vote: 11-0-0-0.

2.8 Adoption of a resolution:

(a) Declaring two 4,367 square foot parcels of City-owned land, located on the southwesterly side of 6^th Street, between Martha Street and Bestor Street, surplus to the needs of the City; and

(b) Approving an agreement for the parcel adjacent to APN 472-14-065 to 901 South Sixth Street Associates, L.P. for $5,500; and

(c) Approving an agreement for the parcel adjacent to APN 472-14-066 to 985 South Sixth Street Associates, L. P., for $5,500.

CEQA: Negative Declaration, PDC98-10-078. Council District 3. SNI: Spartan/Keyes. (General Services)

Documents Filed: Memorandum from Director of General Services Jose Obregon, dated May 7, 2003, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71568, entitled: “A Resolution of the Council of the City of San José Declaring City-Owned Property, Located on the Southwesterly Side of 6^th Street Between Martha Street and Bestor Street Surplus to the Needs of the City; and Approving a Purchase and Sale Agreement for That Portion of the Property Adjacent to Assessor’s Parcel Number 472-14-066 to 985 South Sixth Street Associates and a Purchase and Sale Agreement for That Portion of the Property Adjacent to Assessor’s Parcel Number 472-14-065 to 901 South Sixth Street Associates”, were adopted. Vote: 11-0-0-0.

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

(a) Negotiate and execute a software and hardware maintenance and support agreement with Sun Microsystems (Santa Clara) in a first year amount not to exceed $143,705.84; and

(b) Execute four one-year options to renew for a total of five years without further Council action other than the appropriation of funds.

CEQA: Not a Project. (General Services)

Documents Filed: Memorandum from Director of General Services Jose Obregon, dated May 7, 2003, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71569, 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 Sun Microsystems (Santa Clara) for Software and Hardware Maintenance and Support”, was adopted. Vote: 11-0-0-0.

2.10 Adoption of a resolution accepting donations from the San José Public Library Foundation in an amount not to exceed $200,000 for a period beginning July 1, 2003 and ending June 30, 2004. CEQA: Not a Project. (Library)

Documents Filed: Memorandum from Library Director Jane Light, dated May 7, 2003, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71570, entitled: “A Resolution of the Council of the City of San José Authorizing Acceptance of Donations from the San José Public Library Foundation in An Amount Not to Exceed $200,000 for the Period of July 1, 2003 Through June 30, 2004, “ was adopted. Vote: 11-0-0-0.

2.11 Adoption of a resolution authorizing the detachment from special District County Sanitation 2-3 of 16.25 acres of land, located on the south side of Tully Road approximately 500 feet easterly of 10^th Street, and generally bounded by the City of San José Annexations Monterey Park No. 5, Franklin 31, Franklin 4, and Franklin 17. CEQA: Resolution No. 71359. Council District 7. (Planning, Building and Code Enforcement)

Documents Filed: None.

Discussion/Action: This item was deferred to June 10, 2003.

2.12 Approval of the amended Memorandum of Understanding with local law enforcement agencies to provide access to the California Identification (CAL-ID) System. CEQA: Not a Project. (Police)

Documents Filed: Memorandum from Chief of Police, William M. Lansdowne, dated May 7, 2003, recommending approval of the said Memorandum of Understanding.

Discussion/Action: William Garbett spoke on the issue. The amended Memorandum of Understanding with local law enforcement agencies to provide access to the California Identification System was approved. Vote: 11-0-0-0.

2.13 Report on bids and award of contract for the Plata Arroyo Park Play Area Renovation Project to the low bidder, Beacon Construction, Inc., to include the base bid and Add Alternate Nos. 1, 2, 3, & 4 in the amount of $173,013, and approval of a contingency in the amount of $9,000. CEQA: Exempt, PP03-02-042. Council District 5. SNI: Gateway East. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated May 7, 2003, recommending approval of said report and award of said contract for the Plata Arroyo Park Play Area Renovation Project to the low bidder, Beacon Construction, Inc.

Discussion/Action: The report on bids was accepted and award of contract to Beacon Construction, Inc., the low bidder and the contingency amount of $9,000 were approved, and execution of the contract authorized. Vote: 11-0-0-0.

2.14 (a) Increase contingency budget authorization by $51,000, from $66,000 to $117,000.

(b) Adoption of the following appropriation ordinance amendments in the Park Yards Fund:

(1) Increase the Kelley Park Service Yard Renovation Project by $107,000.

(2) Decrease the Ending Fund Balance by $107,000.

(c) Adoption of a resolution authorizing the City Manager to negotiate and execute a continuation agreement with Garcia Teague Architecture + Interiors for the Kelley Park Service Yard Project, to expand the scope of services, increase the compensation by an amount not to exceed $26,000, and extend the term of the agreement from April 30, 2003 to November 30, 2003.

CEQA: Mitigated Negative Declaration, PP01-10-186. Council District 7. (Public Works/City Manager's Office)

(Deferred from 5/20/03 – Item 2.12

Documents Filed: Memorandum from Director of Public Works Katy Allen and Budget Director Larry D. Lisenbee, dated May 13, 2003, recommending said increase to contingency budget, adoption of said appropriation ordinance amendments, and adoption of said resolution.

Discussion/Action: Ordinance No. 26904, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Moneys in the Construction Tax and Property Conveyance Tax Fund for the Kelley Park Service Yard Renovation Project; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption” and Resolution No. 71571, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Continuation Agreement with Garcia + Teague Architecture and Interiors for the Kelley Park Service Yard Project, Expanding the Scope of Services, Increasing Compensation and Extending the Term”, were adopted. Vote: 11-0-0-0.

2.15 Adoption of a resolution authorizing the City Manager to negotiate and execute the first amendment to the agreement with HVS International for consultant services related to the Hayes Mansion Conference Center, to extend the term until June 30, 2004, and to increase the compensation in an amount not to exceed $174,000, for a total compensation not to exceed $286,500. CEQA: Not a Project. Council District 2. (Finance)

(Rules in Lieu referral 5/21/03)

Documents Filed: Memorandum from Finance Director Scott Johnson, dated May 16, 2003, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71572, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a First Amendment to the Agreement with HVS International for Consultant Agreement with HVS International for Consultant Services Related to the Hayes Mansion Conference Center, to Amend the Scope of Services, Extend the Term Until June 30, 2004 and to Increase the Compensation for a Total Amount Not to Exceed $286,500”, was adopted and execution of the first amendment to said agreement was authorized. Vote: 11-0-0-0.

2.16 Adoption of a resolution authorizing the City Manager to submit grant applications to the Santa Clara Valley Water District for the following projects:

(a) Willow Glen Spur (grant request = $300,000).

(b) Selma Olinder/Coyote Creek Trail (grant request = $250,000).

(d) City-wide Trail Enhancements (grant request = $450,000).

(e) Dobern Bridge (grant request = $250,000).

CEQA: Resolution No. 65459, PP03-05-175. Council Districts 3, 4, 5, 6, 7, and 10. SNI: East Valley/680, Spartan/Keyes, Tully Senter, University, Five Wounds/Brookwood Terrace. (Parks, Recreation and Neighborhood Services) (Rules in Lieu referral 5/21/03)

Documents Filed: Memoranda from Director of Parks, Recreation & Neighborhood Services Sara Hensley, dated May 20 and 22, 2003, requesting an addendum to secure the authorization to submit grant applications prior to the filing deadline to recommend adoption of said resolution.

Discussion/Action: Vice Mayor Dando directed Staff to change the name from Guadalupe River Trail to Guadalupe Creek Trail on the grant applications. Director of Parks, Recreation & Neighborhood Services Sara Hensley stated the focus of this project has been on linking the segments of the proposed trail between Capital Expressway and Yerba Buena and the trail is still in the design phase and Staff has been seeking funding opportunities to help complete the project and lessen illegal dumping which has become a problem with the neglected areas along the proposed trail. Council Member Gregory asked what parts of the proposed trail were they speaking of and what changes were they making. Director Hensley stated they are trying to gain access to two primary issues, such as illegal dumping at Yerba Buena where they are proposing the addition of fences to that area and to improve access points from Bandybrook and Yerba Buena areas to provide better access to the community and finally, to address security concerns for the trail by adding emergency call boxes. Upon motion by Vice Mayor Dando, seconded by Council Member Yeager, and unanimously carried, Resolution No. 71573, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Submit Grant Applications to the Santa Clara Valley Water District’s Trails, Parks and Open Space Grant Program for the Willow Glen Spur Selma Olinder/Coyote Creek Trail, Coyote Creek (Capitol Expressway to Yerba Buena Road), Various City-Wide Trail Enhancements and the Dobern Bridge Projects”, was adopted with direction for Staff to change the name from Guadalupe River Trail to Guadalupe Creek Trail on the grant applications. Vote: 11-0-0-0.

STRATEGIC SUPPORT SERVICES

3.1 Report of the Study Session - September 26, 2002

Mayor Gonzales, Chair

Documents Filed: Report of the Study Session dated September 26, 2002.

(a) Silicon Valley Rapid Transit Corridor

Tunneling BART to San José. Attachment: Hard copies of the Santa Clara Valley Transportation Authority (VTA) staff presentation on the BART Extension to Milpitas, San José and Santa Clara.

Discussion/Action: Upon action by Council Member Cortese, seconded by Council Member Chavez, and unanimously carried, the Report and actions of the City Council Study Session of September 26, 2002 were accepted. Vote: 11-0-0-0.

3.2 Report of the Rules Committee – May 14, 2003

Vice Mayor Dando, Chair

Documents Filed: The Rules Committee Report of May 14, 2003.

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

(b) City Council

(1) Review May 27, 2003 Draft Agenda

The Committee recommended approval of the May 27, 2003 City Council agenda with five additions.

(2) Add New Items to May 20, 2003 Amended Agenda

The Committee recommended five additions to the May 20, 2003 City Council agenda.

(3) List of Reports Outstanding. Attachment: Report from City Manager, dated May 14, 2003 listing three staff reports outstanding for the May 20, 2003 Council agenda.

The Committee noted and filed the City Manager’s report listing three staff reports outstanding for the May 20, 2003 Council meeting.

(1) State –There was no report.

(2) Federal – There was no report.

(d) Meeting Schedules

There were none.

(e) The Public Record. Attachment: Memorandum from City Clerk Patricia L. O’Hearn, dated May 8, 2003 transmitting items received for the Public Record for the Period April 30 – May 6, 2003.

Regarding Item (a), Member Cortese, liason to the Housing Advisory Commission (HAC), stated he would contact Mr. Sam Peng from the Santa Clara County Housing Action Coalition and suggest Mr. Peng coordinate with the City’s HAC to address City Council in August during the Open Forum portion of the agenda. The Committee noted and filed the Public Record.

(f) Boards, Commissions and Committees

(1) Police and Fire Retirement Board. Attachment: Memorandum from Secretary to the Police and Fire Retirement Board Ed Overton , dated
May 1, 2003, submitting a request from the Board to revise the definition of “surviving child”.

Request from Police and Fire Retirement Board to consider revising the definition of “surviving child” to include children born to retires, or who were adopted after the person retired. (Deferred from 5/7/03)

The Committee directed the City Manager and City Attorney to submit a detailed response to the Police and Fire Retirement Board indicating, with specificity, the full force and effect of their request in relation to the collective bargaining process. The Committee also directed Mr. Overton to place this issue on the June 5^th Police and Fire Retirement Board agenda.

Items F2 through F11: Attachment: Memoranda from City Clerk Patricia L. O’Hearn, dated May 6, 2003 forwarding ten lists of commission applicants, as submitted by the Project Diversity Committee; nine memoranda from the City Attorney’s Office dated March and April 2003 reviewing commission applicants for conflict of interest; from Council Member Williams dated May 14, 2003 recommending appointments to the Arts Commission; from Council Member Yeager, dated May 9 and 13, 2003 recommending appointments to the Community Development Block Grant Steering Committee, the Library Commission, the Parks and Recreation Commission, and the Traffic Appeals Commission; from Council Member Chirco, dated May 13, 2003 recommending appointments to the Early Care and Education Commission, and the Human Rights Commission; from Council Member LeZotte, dated May 14, 2003 recommending appointments to the Senior Citizens Commission; and from Council Member Reed, dated May 12, 2003 recommending appointments to the Small Business Development Commission.

The Committee directed the City Clerk to conduct a blind drawing for those commissions with more than one vacancy and varying term ending dates, with the results of the draw noted in the Rules Committee report. The Committee recommended the following appointments:

(2) Arts Commission

The Committee recommended appointment of Maxwell Crumley (Incumbent), Ben Miyaji (Incumbent), Jess Moreles, and Ruth Turnstall-Grant to terms ending June 30, 2006.

(3) CDBG Steering Committee

The Committee recommended appointment of Lisa Jensen (Incumbent), Rodolfo Nasol (Incumbent), and Steven Sosnowski (Incumbent) to terms ending June 30, 2006.

(4) Early Care and Education Commission

The Committee recommended appointment of Thomas Paramo, Hyacinth Stephens and Kathleen Swineford to unexpired terms ending June 30, 2004; and Jemima Munoz to an unexpired term ending June 30, 2005.

(5) Human Rights Commission

The Committee recommended appointment of Tahir Anwar to an unexpired term ending December 31, 2005.

(6) Library Commission

The Committee recommended appointment of Lyn Green to an unexpired term ending June 30, 2005; and Cong Do to a term ending June 30, 2006.

(f) Boards, Commissions and Committees

(7) Mobile Home Advisory Commission

The Committee directed the City Clerk to readvertise in August for the neutral representative.

(8) Parks and Recreation Commission

The Committee recommended appointment of Mark Swineford to an unexpired term ending June 30, 2004; and directed the City Clerk to readvertise in August for the remaining vacant position.

(9) Senior Citizens Commission

The Committee recommended appointment of Surendra Amin to an unexpired term ending June 30, 2004; and Marilous Cristina to an unexpired term ending June 30, 2005.

(10) Small Business Development Commission

The Committee recommended appointment of Jason Loia to an unexpired term ending December 31, 2003 and the subsequent three-year term ending December 31, 2006; and Daisy Chu to an unexpired term ending December 31, 2005.

(11) Traffic Appeals Commission

The Committee recommended appointment of Matthew Hall to an term ending June 30, 2006.

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

There were none.

(h) Administrative Reviews and Approval. Attachment: Memorandum from City Auditor Gerald Silva, dated May 8, 2003 recommending removal of the City Clerk’s Office audit from the City Auditor’s 2002-2003 workplan.

(1) Request from City Auditor to remove an audit of the City Clerk’s Office from the City Auditor’s 2002-2003 workplan

The Committee recommended approval to remove an audit of the City Clerk’s Office from the City Auditor’s 2002-03 workplan.

(i) Oral communications

None were presented.

(j) Adjournment

The meeting adjourned at 2:35 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 May 14, 2003 were accepted. Vote: 11-0-0-0.

3.3 Report of the Making Government Work Better Committee – May 14, 2003

Council Member Campos, Chair

Documents Filed: The Making Government Work Better Committee Report of May 14, 2003.

(a) Results of the Contract Streamlining Ordinance. Attachment: Memorandum from Acting Director of Employee Services, Kay Winer, dated May 5, 2003, submitting the results of the contract streamlining ordinance.

The Committee accepted the staff report with the request that staff bring a progress report back in 6 months that includes an analysis of any further changes proposed to the ordinance.

(b) City Clerk One-Stop shop

This item deferred to June 11, 2003.

This item was deferred to June 11, 2003.

(d) Review the scope of supervision for City Departments and Council Appointees. Attachment: Memorandum from QUEST Partnership Manager Brooke Myhre, dated May 5, 2003, recommending the Committee accept the report and forward to City Council.

The Committee accepted the Staff report with only two Committee Members present.

(e) Audit follow-up on Prevailing and Living Wage. Attachment: Memorandum from City Attorney Richard Doyle and Director of Equality Assurance, Nina S. Grayson, dated May 5, 2003, recommending the adoption of a resolution providing all City contracts containing prevailing wage and living wage requirements include as remedies for a breach of these requirements provisions giving the City the right to conduct an audit, collect liquidated damages and withhold compensation.

The Committee accepted the Staff recommendation and requested that the item be cross-referenced as a Joint City/Redevelopment Agency item.

SEE ITEM 10.1 FOR COUNCIL ACTION TAKEN

(f) Follow-up on Memorandum on Internal Controls (role clarification: City/WIA Board oversight roles). Attachment: Memorandum from Director of Economic Development, Paul Krutko, dated May 7, 2003, recommending the Committee approve the report of the Office of Economic Development describing the respective roles of the City and the Workforce Investment Act Board regarding oversight of the WIA program.

The Committee recommended that this item be carried over to the June 11, 2003 Making Government Work Better Committee.

(g) Santa Clara County Cities Association Audit Report. Attachment: Santa Clara County Cities Association Audited Financial Statements for the Years Ended
June 30, 2001 and 2002.

The Committee accepted the staff report.

(h) Oral petitions

None.

(i) Adjournment

The Committee was adjourned at 4:20 P.M.

Discussion/Action: Upon motion by Council Member Reed, seconded by Council Member LeZotte, and unanimously carried, the Making Government Work Better Committee Report and actions of May 14, 2003 were accepted. Vote: 11-0-0-0.

3.4 Interview applicants to the Campaign Finance Review and Ethics Board for two four-year terms ending March 1, 2007. (City Clerk)

Documents Filed: (1) Memorandum from Mayor Ron Gonzales, dated May 23, 2003, recommending the City Clerk reopen the recruitment for applicants to fill the remaining vacancies on the Campaign Finance Review and Ethics Board because of the insufficient number of finalists for City Council interviews and to have this item return to Council on August 12, 2003. (2) Memorandum from City Clerk Patricia L. O’Hearn, dated May 15, 2003, recommending the interview of Charles R. Blackmoore and Tom Mertens as applicants for the Campaign Finance Review and Ethics Board for appointments to two four-year terms ending March 1, 2007.

Discussion/Action: Council Member Chavez moved approval of Mayor Gonzales’ memorandum, dated May 23, 2003, recommending a direction to the City Clerk to reopen the recruitment for applicants to fill the remaining vacancies on the Campaign Finance Review and Ethics Board because of the insufficient number of finalists for City Council interviews and to have this item return to Council on August 12, 2003. Council Member Yeager seconded the motion. Council Member Yeager asked Staff how past advertisement for Board applicants were conducted. City Clerk Patricia L. O’Hearn stated there were two new applicants, one an incumbent, she stated the recruitment package submitted to Council contained the names of the original group from which Council appointed three to the remaining applicants still eligible for interviews.

Council Member Yeager asked the Mayor to clarify why the existing two candidates would not meet Campaign Finance Review and Ethics Board specifications. Mayor Gonzales stated his memorandum speaks to the reasoning and clarified the issue of meeting specifications was not the issue at hand, but rather, he felt the Campaign Finance Review and Ethics Board is an important body that has a great deal of influence on how elections are run in the City and Council needs to ensure they do the best they can in recruitment and stated the City’s need to advertise broadly to ensure the best people get appointed to the board. Council Member Yeager asked Staff if they followed the same process for recruitment. City Clerk O’Hearn stated they used the same process and there was a great deal of local coverage as to board activities which may or may not have peaked the community’s interest.

Vice Mayor Dando stated she could not understand why the City Clerk would need to readvertise for more applicants considering the existing applicants were sufficient. Mayor Gonzales stated the importance of not choosing to interview the candidates who were not chosen in the previous round of interviews, he stated he realized these applicants did receive votes in the previous interviews but were not enough to be appointed and this round of interviews could be different in that it would be dependent upon a pool of applicants. He commented the Campaign Finance Review and Ethics Board was important enough to not interview only two applicants merely because they ranked high in the previous interviews. Council Member Williams expressed concern regarding the message that could possibly be given to existing applicants, such as the incumbent interested in serving on the board again and suggested the importance of creating a policy that states a certain number of applicants would be required prior to vote in order to not pinpoint particular applicants as not being worthy of consideration.

Upon motion by Council Member Chavez, seconded by Council Member Yeager, the recommendation to defer the interview of applicants to the Campaign Finance Review and Ethics Board was approved with addition of the Mayor’s recommendation directing the City Clerk to reopen the recruitment for applicants to fill the remaining vacancies on the Campaign Finance Review and Ethics Board because of the insufficient number of finalists for City Council interviews. Vote: 8-3-0-0. Noes: LeZotte, Yeager, Williams.

3.5 (a) Report on RFP for Cellular Phone Service and approval to reject all proposals.

(b) Adoption of a resolution authorizing the Director of General Services to:

(1) Execute any necessary documentation to make purchases under the pricing terms and conditions obtained under the Western States Contracting Alliance (WSCA) Agreement for the purchase of wireless service and equipment from AT&T Wireless, Verizon, Nextel and/or Sprint, in a cumulative amount not to exceed $1,100,000 for the period July 1, 2003 through June 30, 2004; and

(2) Make further purchases for three additional one-year terms under the same contracting provisions, without further Council action other than the appropriation of funds.

CEQA: Not a Project. (General Services/Information Technology)

Documents Filed: Memorandum from Chief Information Officer Wandzia Grycz and Director of General Services Jose Obregon, dated May 7, 2003, recommending acceptance of the report on RFP for Cellular Phone Service and approval to reject all proposals and adoption of said resolution.

Discussion/Action: William Garbett and Ross Signorino spoke on the issue. Upon motion by Council Member Chavez, seconded by Vice Mayor Dando, Resolution No. 71574, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of General Services to Execute the Western States Contracting Alliance (“WSCA”) Agreement for Wireless Communications Service and Equipment”, was adopted. Vote: 9-0-2-0. Absent: Chirco, Gregory.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.3 Preliminary approval of the report as filed by the Downtown Business Improvement District Advisory Board or as modified by Council, and adoption of a resolution of intention to levy increased annual assessments for 2003-04 in the Downtown Business Improvement District at the June 17, 2003 at 1:30 p.m. public hearing. CEQA: Exempt, PP 03-05-165. Council District 3. SNI: St. James Square; University; Josefa/Auzerais; Burbank/Del Monte. (Economic Development)

Documents Filed: Memorandum from Director of Economic Development Paul Krutko, dated May 7, 2003, recommending preliminary approval of said report and adoption of said resolution.

Discussion/Action: Adjanna Schneider and Gail Chandler spoke on the issue. Council Member Chavez and Council Member Reed thanked the Downtown Business Association for their community outreach and involvement with keeping Downtown San José a thriving business. Upon motion by Council Member Chavez, seconded by Vice Mayor Dando, Resolution No. 71575, entitled: “A Resolution of the Council of the City of San José Declaring It’s Intent to Levy Assessments for Fiscal Year 2003-2004 in the Downtown Business Improvement District Pursuant to the Parking and Business Improvement Area Law of 1989”, was adopted. Vote 10-0-1-0. Absent: Chirco.

4.4 Public Hearing and adoption of a resolution:

(a) Approving a Disposition and Development Agreement (DDA) between the City of San José and the San José Conservation Corps, or an affiliated entity, for the development of single-family homes on the following sites in the City of San José:

(1) S/s of Meredith Avenue, between Lincoln Avenue and Coolidge Avenue-1 unit.

(2) Blossom Hill Avenue opposite the terminus of Croydon Avenue - 8 units.

(b) Finding that the use of 20% Low- and Moderate-Income Housing Funds for the sites is of benefit to the Redevelopment Project Areas in San José.

CEQA: Meredith, Exempt, SP02-081; Blossom Hill, Exempt, PP03-05-167. Districts 6 and 9. (Housing)

Documents Filed: (1) Memorandum from Director of Housing Leslye Corsiglia, dated May 7, 2003, recommending a Public Hearing and adoption of said resolution. (2) Notice of Proof of publication of a Public Hearing, executed on May 12 and May 19, 2003, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the Public Hearing, there were no speakers from the floor. The Public Hearing was closed. Upon motion by Council Member Yeager, seconded by Council Member Chavez, and unanimously carried, Resolution No. 71576, entitled: “A Resolution of the Council of the City of San José (I) Approving a Disposition and Development Agreement Between the City of San José and San José Conservation Corps, or Its Designated Affiliate, for the Development of Single Family

Homes on City-Owned Property Located At (1) Meredith Avenue, Between Lincoln Avenue and Coolidge Avenue and (2) Blossom Hill Avenue Opposite the Terminus of Croydon Avenue Opposite the Terminus of Croydon Avenue and (II) Finding That the Use of 20% Housing Funds for Development of the Subject Property Is a Benefit to the City’s Redevelopment Areas and Other Findings”, was adopted. Vote: 10-0-1-0. Absent: Chirco.

4.5 (a) Adoption of a resolution approving a conditional grant of up to $1,275,000 to Eden Housing Inc., or its designated affiliate, for the development of the Eden Palms Special Needs Apartments, a 15-unit rental development affordable to extremely low-income individuals with developmental disabilities, located at 5350 Monterey Road.

(b) Adoption of the following appropriation ordinance and funding sources resolution amendments in the HOME Investment Partnership Program Fund (Fund 445) to:

(1) Increase the HOME Loans and Grants appropriation to the Housing Department by $1,275,000.

(2) Increase Grant Revenue by $1,275,000.

CEQA: Mitigated Negative Declaration, PDC03-002. Council District 2. SNI: Edenvale/Great Oaks. (Housing/City Manager’s Office)

Documents Filed: Memorandum from Director of Housing Leslye Corsiglia, dated May 7, 2003, recommending adoption of said resolution, appropriation ordinance and funding source resolution amendments.

Discussion/Action: Upon motion by Council Member Williams, seconded by Vice Mayor Dando, and unanimously carried, Ordinance No. 26905, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Moneys in the Home Investment Partnership Program Fund for the Eden Palms Special Needs Apartment Project; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, Resolution No. 71577, entitled: “A Resolution of the Council of the City of San José (i) Approving a Conditional Grant Of Up to $1,275,000 For An Acquisition and Predevelopment Loan to Eden Housing, Inc., or It’s Assignee, for the Development of a Fifteen Unit Housing Project Affordable to Extremely Low Income Persons and Families, and (ii) Authorizing the Director of Housing to Negotiate and Execute All Necessary Documents Evidencing Such Loan on Behalf of the City”, and Resolution No. 71578, entitled: “A Resolution of the Council of the City of San José Amending Resolution No. 71072 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2002-2003 to Adjust Revenues in the Home Investment Partnership Program Fund”, were adopted. Vote: 9-0-2-0. Absent: Chirco, Reed.

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

(a) Establish an appropriation to the Department of Public Works for the Hellyer Piercy Improvement District and Great Oaks-Route 85 CFD #6 Project, in the amount of $565,300.

(b) Increase the estimate for Earned Revenue by $565,300.

CEQA: Resolution No. 69699, PP 02-10-284. Council District 2. SNI: Edenvale. (Public Works/City Manager's Office)

Documents Filed: Memorandum from Director of Public Works Katy Allen and Budget Director Larry D. Lisenbee, dated May 20, 2003, replacing Memorandum dated May 7, 2003 providing additional Staff information. (2) Memorandum from Director of Public Works Katy Allen and Budget Director Larry D. Lisenbee, dated May 7, 2003, recommending adoption of said appropriation ordinance and said funding sources resolution amendments in the Construction Excise Tax Fund.

Discussion/Action: Council Member Williams asked Staff to provide a listing of projects that would utilize the CFD project funding. Upon motion by Council Member Williams, seconded by Dando, and unanimously carried, Ordinance No. 26906, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Moneys in the Construction Excise Tax Fund for the Hellyer Piercy Improvement District and Great Oaks-Route 85 CFD #6 Project: and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption” and Resolution No. 71579, entitled: “A Resolution of the Council of the City of San José Amending Resolution No. 71072 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2002-2003 to Adjust Revenues in the Construction Excise Tax Fund”, were adopted. Vote: 9-0-2-0. Absent: Chirco, Reed.

RECREATION & CULTURAL SERVICES

5.2 Report on bids and award of contract for the construction of the New Tully Branch Library Project to the lowest responsive bidder, Ralph Larsen and Sons, Inc., to include the base bid and Add Alternate No. 1 in the amount of $7,513,000, and approval of a contingency in the amount of $751,000. CEQA: Negative Declaration, PP02-04-080. Council District 7. (Public Works)

(Deferred from 5/20/03 – Item 5.2)

Documents Filed: (1) Memorandum from City Attorney Richard Doyle, dated May 23, 2003, recommending awarding the contract for construction of Tully Branch Library project to the lowest responsive bidder, Ralph Larsen and Sons, Inc.

Discussion/Action: Council Member Gregory asked what experience does the City have working with Ralph Larsen and Sons, Inc. Director of Public Works Katy Allen stated the current project would be the first time working with Ralph Larsen and Sons, Inc. but they were highly recommended for the project. Council Member Gregory asked Staff how will the appropriation moneys and cost implications be mitigated. Library Deputy Director Richard Desmond stated the project funding would be spread over seven fiscal years. Council Member Gregory stated the importance of the library project to his district and the serious need for a library facility in his community. Upon motion by Council Member Gregory, seconded by Council Member LeZotte, the bid report was accepted and the contract was awarded to Ralph Larsen and Sons, Inc. was authorized approving said contingency. Vote: 10-0-1-0. Absent: Chirco.

5.3 Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with the Morgan Hill Unified School District for the design and construction of a multi-purpose facility on the campus of Los Paseos Elementary School, including a 16-space parking lot and access improvements on the Los Paseos Park site in an amount not to exceed $1,000,000, subject to the future appropriation of funds to be paid to the City of San José under the Cooperation Agreement by and between the City and Calpine/Bechtel executed on June 26, 2001. CEQA: Exempt, PP03-05-166. Council District 2. (Parks, Recreation and Neighborhood Services)

(Rules in Lieu referral 5/21/03)

Documents Filed: Memorandum from Director of Parks, Recreation & Neighborhood Services Sara Hensley, dated May 22, 2003, requesting an addendum to facilitate the submission of a $1,000,000 grant application by the Morgan Hill Unified School District to the State of California for the construction and operation of a community facility and related access improvements by adopting said resolution.

Discussion/Action: William Garbett, Joanne Yinger, and Carolyn McKennan spoke on the issue. Council Member Williams stated the project is an effort to provide recreational opportunities to the South San José areas through funding from the CalPine Fund to be used for Parks, Recreation and Open Space acquisition in the Santa Teresa and South San José area and stated the City wanted to take advantage of leveraging the dollars to allow his district to help the local schools as well as the community. Upon motion by Council Member Williams, seconded by Vice Mayor Dando, and unanimously carried, Resolution No. 71580, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreeement with the Morgan Hill Unified School District for the Design and Construction of a Multi-Purpose Facility on the Campus of Los Paseos Elementary School and Including a 16-Space Parking Lot and Access Improvements On the Los Paseos Park Site in An Amount Not to Exceed $1,000,000, Subject to the Future Appropriation of Funds To Be Paid To the City of San José Under the Cooperation Agreement By and Between the City and Calpine/Bechtel Executed on June 26, 2001“was adopted. Vote: 9-0-2-0. Absent: Chirco, Gonzales.

ENVIRONMENTAL & UTILITY SERVICES

7.1 (a) Conduct a public hearing on proposed Fiscal Year 2003-04 Recycle Plus (RP) rate increases;

(b) Adopt a resolution revising RP rates for services beginning July 1, 2003, and increasing single family and multi-family rates by 9%, as shown in the attached charts;

(c) Adopt a resolution revising the Commercial Solid Waste Collection Franchise Fee for services performed on or after July 1, 2003, as follows:

(1) For each uncompacted cubic yard collected, increase the Franchise Fee from $2.98 to $3.24 per cubic yard.

(2) For each compacted cubic yard, increase the Franchise Fee from $8.94 to $9.72 per cubic yard.

(3) Provide an exemption from the Franchise Fee for the first 21,600 cubic yards of un-compacted solid waste (or the equivalent of compacted solid waste) collected in any fiscal year (July 1-June 30).

(d) Adopt a resolution amending the Schedule of Fees and Charges to revise the Commercial Solid Waste Source Reduction and Recycling (AB939) Fee effective July 1, 2003, as follows:

(1) For each uncompacted cubic yard collected, decrease the fee from $0.86 to $0.60 per uncompacted cubic yard.

(2) For each compacted cubic yard collected, decrease the fee from $2.58 to $1.80 per cubic yard.

CEQA: Not a Project. (Environmental Services)

Documents Filed: (1) Memorandum from Director of Environmental Services Carl Mosher, dated May 7, 2003, recommending said Public Hearing and adoption of said resolutions to revise Recycle Plus (RP) rates, revise the Commercial Solid Waste Collection Franchise Fee, and revise the Commercial Solid Waste Source Reduction and Recycling Fee. (2) Notice of Proof of Publication of Notice of Public Hearing, executed on May 16, 2003, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the Public Hearing. Ross Signorino, William Garbett, and Mike Zoldak spoke on the issue. The Public Hearing was closed. Council Member LeZotte asked Staff what was the cost per curb mile for streetsweeping and how did it compare to other cities. Director of Environmental Services Carl Mosher stated he would provide Council with that information. LeZotte asked Staff to clarify the issue of fee funding shifts and how it would impact the General Fund. Director Mosher stated the fees work in combination leaving the complete burden for the AB939 fee and the franchise fee at $3.84, and Staff is working to shift the franchise fee to be made available for use in the General Fund. Council Member LeZotte asked where the Recycle Plus fee increase money will go and will the shift of that money come from the commercial side of funds. Director Mosher stated by raising the Recycle Plus rates to become more cost recovery, the other revenues in that fund do not need to be used to pay for the fund activities and the Recycle Plus program would pay for it’s share more closely which would allow the franchise fee to be shifted for use in the General Fund.