CSJ Council Minutes Meeting Agenda, June 17, 2003

MINUTES OF THE CITY COUNCIL

SAN JOSE, CALIFORNIA TUESDAY, JUNE 17, 2003

The Council of the City of San Jose convened in Regular Session at 9:33 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 9:33 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 City of San José v. Sahadi Properties, Horta v. City of San José, et al.; (B) to confer with Legal Counsel regarding anticipated litigation (a) of a matter where there is significant exposure to litigation pursuant to subsection (b) of Section 54956.9 of the Government Code and (2) to discuss a matter in the initiation of litigation pursuant to subsection (c) of Section 54956.9 of the Government Code, (C) to confer with Real Property Designated Representatives pursuant to Government Code Section 54956.8, (1) Property: Lands of SJ/SC WPCP located west of Coyote Creek, between Dixon Landing Road and SR237, Assessor’s Parcel Nos. 015-31-008, 015-31-050, 015-31-063; Designated Representative: Carl Mosher for the City of San José and Tim Summers for PG&E; Under Negotiation: sale of easements, including price, and other terms and conditions of sale, (D) to confer with Labor Negotiator Pursuant to Government Code Section 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, (1) City Negotiator: City Manager designee, Alex Gurza; Unrepresented Employees: Units 99, 18 and 4.

By unanimous consent, Council reconvened from Closed Session and recessed at 10:45 a.m. and reconvened at 1:36 p.m. in Council Chambers, City Hall.

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

Absent: Council Members: None.

Invocation (District 6)

Reverend Steve Norman of Westminster Presbyterian 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 a commendation to Leo Shortino for his work and dedication to youth through the establishment of the Leo M. Shortino Family Foundation. (Chirco/Yeager)

Documents Filed: None.

Discussion/Action: Mayor Gonzales was joined at the podium by Council Members Chirco and Yeager to present a commendation to Leo Shortino for the work and dedication he has done for the youth of the City of San José, by establishing the Leo M. Shortino Family Foundation and contributing to the Kiwanis Turnaround Scholarship, which helps students from the East Side Union High School District achieve higher education. Leo Shortino thanked the Mayor, Council, and the Community of San José for the acknowledgements and commendation.

JOINT COUNCIL/REDEVELOPMENT AGENCY

The Redevelopment Agency Board convened to consider Item 10.1 in a Joint Session at 1:45 P.M.

Item 10.1 was heard concurrently with Item 3.9

10.1 Adoption of resolutions by the City Council and Agency Board pertaining to the Agency's annual budgets, CIP, and public improvements, follows:

(a) Adoption of a resolution by the Agency Board approving amendments to the FY 2002-2003 Revenue and Appropriations Resolutions to reflect various modi-fications to the FY 2002-2003 Revenues and Operating and Capital Budgets; and,

(b) Adoption by the Agency Board of the FY 2003-2004 Revenue and Appropriations Resolutions for the Operating and Capital Budgets and authorization for the Executive Director to rebudget FY 2002-2003 remaining project appropriation balances for on-going projects/programs previously approved by the Agency Board; and,

(c) Adoption of a resolution by the Agency Board making certain determinations regarding the expenditure of Agency funds to eradicate graffiti; and,

(d) Adoption of a resolution by the City Council making certain determinations regarding the expenditure of Agency funds on public improvements specified in the FY 2003-2004 Capital Budget; and,

CEQA: Resolution No. 65459, PP03-06-199. (Redevelopment Agency)

3.9 (a) Adoption of the Annual Appropriation Ordinance, including transfers and loans for Fiscal Year 2003-2004 and the Manager’s Final Budget Addendum.

(b) Adoption of the Annual Funding Sources Resolution for Fiscal Year 2003-2004 and the Manager’s Final Budget Addendum.

(c) Adoption of a resolution in compliance with Article XIIIB of the Constitution of the State of California and as modified by Proposition 111 and SB 99 electing the population and inflation factors and establishing the Fiscal Year 2003-2004 Appropriation Limit.

Renumbered from 3.5

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

Heard first on the Agenda and concurrently with Item 10.1

Documents Filed: (1) Memorandum from Redevelopment Agency Executive Director Susan F. Schick, dated June 17, 2003, recommending the adoption of said resolutions. (2) Memorandum from Budget Director Larry D. Lisenbee, dated June 3, 2003, recommending adoption of said resolution.

Discussion/Action: Ross Signorino spoke on the issue. Agency Resolution Nos. 5412, 5413, 5414, and 5415 were adopted. Upon motion by Vice Mayor Dando, seconded by Council Member Chavez, and unanimously carried, Ordinance No. 26916, entitled: “Annual Appropriation Ordinance of the City of San José for City’s Fiscal Year Beginning July 1, 2003 and Ending June 30, 2004, Appropriating and Authorizing the Expenditure of Moneys For The Operation of Each of the Offices, Departments, and Agencies of the City During Said Fiscal Year, and For Various Other Purposes and Objects for Said Fiscal Year; and Providing For Transfers From Various City Funds to Other City Funds As May Be Necessary During Said Fiscal Year”, Resolution No. 71608, entitled: “A Resolution of the Council of the City of San José Adopting the Estimated Sources of Funds for Fiscal Year 2003-2004”, and Resolution No. 71609, entitled: “A Resolution of the Council of the City of San José Electing the Population and Inflation Adjustment Factors and Establishing the 2003-2004 Appropriations Limit of the City of San José Pursuant to California Constitution Article XIIIB, and Section 7900 ET Seq. of the California Government Code”, and Resolution No. 71610, entitled: “A Resolution of the Council of City of San José Making Certain Determinations Regarding the Expenditure of Redevelopment Agency Funds on Public Improvements in the Agency’s FY 2003-2004 Capital Budget”, were adopted. Vote: 11-0-0-0.

The Redevelopment Agency Board portion of the meeting adjourned at 1:49 P.M.

CONSENT CALENDAR

2.1 Approval of City Council Minutes for:

(a) Regular meeting of October 15, 2002

(b) Joint City Council/Redevelopment Agency Board meeting of October 15, 2002

Documents Filed: (1) Regular meeting minutes of October 15, 2002. (2) Joint City Council/Redevelopment Agency Board minutes of October 15, 2002. (3) Joint City Council/San José Financing Authority meeting of October 15, 2002.

Discussion/Action: The Regular City Council, Joint City Council/Redevelopment Agency Board, and Joint City Council/San José Financing Authority meetings of October 15, 2002 were approved.

2.2 Final adoption of ordinances:

(a) ORD. NO. 26910 – Rezones certain real property situated on the east side of Cypress Avenue, 110 feet northerly of Adra Avenue to Planned Development Zoning District. PDC 03-019

Documents Filed: Proof of publication of title of Ordinance No. 26910 executed on June 10, 2003, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26910 was adopted. Vote: 11-0-0-0.

(b) ORD. NO. 26911 – Rezones certain real property situated at the north side of East Taylor Street, approximately 120 feet northeasterly of North Third Street. C 03-014

Documents Filed: Proof of publication of title of Ordinance No. 26911 executed on June 10, 2003, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26911 was adopted. Vote: 11-0-0-0.

2.3 Adoption of a resolution approving a minor amendment to the Airport Master Plan for the Norman Y. Mineta San José International Airport to:

(a) Use up to five acres of the existing vacant Airport parcel north of Hwy. 101 for interim construction staging, and

(b) Change the designated location of future airline maintenance/equipment storage facilities from a six-acre site on the northeast side of the Airport to a six-acre site at the southeast corner of the Airport.

CEQA: Resolution Nos. 67380 and 71451, PP 03-05-159. (Airport)

Documents Filed: Memorandum from Aviation Director Ralph G. Tonseth, dated May 27, 2003, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71611, entitled: “A Resolution of the Council of the City of San José Approving Minor Amendments to the Airport Master Plan to Designate Locations for Interim Construction Staging and for Airline Maintenance and Equipment Storage Facilities” was adopted. Vote: 11-0-0-0.

2.4 Approval of an ordinance amending Chapter 4.80 of Title 4 of the San José Muncipal Code to add a new part to establish a Federal Local Law Enforcement Block Grant (LLEBG) Fund for the following purposes:

(a) To collect and deposit all monies received by the City from the federal government related to the Federal Local Law Enforcement Block Grant Fund; and

(b) To ensure the Federal Local Law Enforcement Block Grant expenditures are spent within grant guidelines.

CEQA: Exempt, PP03-06-207. (City Manager’s Office)

Documents Filed: Memorandum from Budget Director Larry D. Lisenbee, dated June 4, 2003, recommending the approval of said ordinance.

Discussion/Action: Ordinance No. 26917, entitled: “An Ordinance of the City of San José Amending Chapter 4.80 of Title 4 of the San José Municipal Code to Add a New Part to Establish the Federal Local Law Enforcement Block Grant Fund”, was passed for publication. Vote: 11-0-0-0.

2.5 Approval of a first amendment to the agreement for consultant services for Advanced Regulatory Analysis for the San José/Santa Clara Pollution Control Plant with Eisenberg, Olivieri & Associates Inc. (EOA), to extend the contract by four years, from December 31, 2003 to December 31, 2007, and increase compensation by $200,000 from $99,000, for a total amount not to exceed $299,000. CEQA: Not a Project. (Environmental Services)

Documents Filed: (1) Memorandum from Director of Environmental Services, Carl Mosher, dated May 27, 2003, recommending approval of a first amendment to said agreement. (2) Letter from the Treatment Plant Advisory Committee, dated June 12, 2003, recommending approval of Staff’s recommendations.

Discussion/Action: The first amendment to said agreement with Eisenberg, Olivieri & Associates Inc. was approved. Vote: 11-0-0-0.

2.6 Approval of a first amendment to the agreement with Harris & Associates for Capital Improvement Program construction management services at the San José/Santa Clara Water Pollution Control Plant, extending the term of the agreement by 20 months, from June 30, 2003 to February 28, 2005, at no additional cost to the City. CEQA: Not a Project. (Environmental Services)

Documents Filed: (1) Memorandum from Director of Environmental Services, Carl Mosher, dated May 27, 2003, recommending approval of a first amendment to said agreement with Harris & Associates. (2) Letter from the Treatment Plant Advisory Committee, dated June 12, 2003, recommending approval of Staff’s recommendations.

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

2.7 Approval of a first amendment to the agreement with Implementation Resources, Inc. for consultant services related to Phase II of the City's Employee Services/Payroll System to provide implementation expertise on the implementation of expanding electronic time reporting and exception time reporting, and to increase compensation by $95,000, for a total cost of $175,000, and to extend the agreement term through January 31, 2004. CEQA: Not a Project. (Finance/Information Technology/Employee Services)

Documents Filed: Memorandum from Finance Director Scott Johnson, Chief Information Officer, Wandzia Grycz, and Director of Employee Services Mark Danaj, dated June 5, 2003, recommending approval of said first amendment.

Discussion/Action: Council Member Williams directed Staff to provide an informational report pertaining to the results of implementing Phase 2 of the City’s Payroll System. The first amendment to said agreement with Implementation Resources, Inc. was approved. Vote: 11-0-0-0.

2.8 (a) Approval of purchase of citywide insurance policies for the period July 1, 2003 to September 30, 2004, in an amount not to exceed $3,700,000.

(b) Adoption of a resolution authorizing the City Manager to negotiate and execute modifications to the insurance provisions of agreements with Penske and/or with ShuttlePort with respect to the Airport Shuttle buses.

CEQA: Not a project. (Finance)

Documents Filed: Memorandum from Finance Director Scott Johnson, dated June 11, 2003, recommending approval of said purchase of citywide insurance policies and adoption of said resolution.

Discussion/Action: Resolution No. 71612, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute Modifications to the Insurance Provisions of the Agreements with Penske And/Or Shuttleport with Respect to the Airport Shuttle Buses”, was adopted. Vote: 11-0-0-0.

2.9 Adoption of a resolution authorizing the City Manager to negotiate and execute the second amendments to the City of San José Master Repurchase Agreements for Banc of America Securities, LLC, First Tennessee Bank, UBS Financial Services, Inc., Union Bank of California, N.A., and Zions First National Bank to extend the terms of the agreements to June 30, 2006, to authorize the Director of Finance to further extend the terms of the agreements in additional 3-year increments, and to update the list of City staff authorized to execute transactions on behalf of the City. CEQA: Not a Project. (Finance)

Documents Filed: Memorandum from Finance Director Scott Johnson, dated May 30, 2003, recommending the adoption of said resolution.

Discussion/Action: Resolution No. 71613, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute the Second Amendments to the City of San José Master Repurchase Agreements with Banc of America Securities, LLC, First Tennessee Bank, UBS Financial Services, Inc., Union Bank of California, N.A and Zions First National Bank”, was adopted. Vote: 11-0-0-0.

2.10 Adoption of a resolution approving the City's Investment Policy, including certain revisions thereto. (Finance)

Documents Filed: Memorandum from Finance Director Scott Johnson, dated May 29, 2003, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71614, entitled: “A Resolution of the Council of the City of San José Approving the City’s Investment Policy Including Certain Revisions Thereto”, was adopted. Vote: 11-0-0-0.

2.11 Adoption of a resolution authorizing to City Manager to negotiate and execute an agreement with San José State University and Spartan Shops for operation of the Library Café. CEQA: Not a Project. (Library)

Documents Filed: Memorandum from Library Director Jane Light, dated May 27, 2003, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71615, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Lease Agreement with Spartan Shops for the Operation of the Library Café at the New Martin Luther King Jr. Library”, was adopted. Vote: 11-0-0-0.

2.12 (a) Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2002-2003 #34, and authorization for the Director of General Services to execute the purchase orders. CEQA: Exempt, PP03-04-111.

(b) Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2002-2003 #35 and authorization for the Director of General Services to execute the purchase orders. CEQA: Not a Project.

(General Services)

Documents Filed: (1) Memoranda from Director of General Services Jose Obregon, dated May 27, 2003, recommending approval of said open purchase orders list and to authorize the Director of General Services to execute the purchase orders. (2) Letter from the Treatment Plant Advisory Committee, dated June 12, 2003, recommending approval of Staff’s recommendations.

Discussion/Action: Council Member Cortese directed Staff to include within future memoranda sent to Council, information regarding the type of public outreach used to solicit quotations and bids for the projects. The approval of said purchase orders were approved and execution of the purchase were orders were authorized. Vote: 11-0-0-0.

2.13 Report on Request for Quotation for coating and rehabilitation of clarifier tanks and approval of award to the low price quote, Certified Coatings of California (Concord, CA) for a total cost of $259,000 including tax and freight, and authorize the Director of General Services to execute the service order. (General Services)

Documents Filed: (1) Memorandum from Director of General Services Jose Obregon, dated May 27, 2003, recommending said Report on Request for Quotation and approval of said award to the low price quote, Certified Coatings of California and to authorize the Director of General Services to execute the service order. (2) Letter from the Treatment Plant Advisory Committee, dated June 12, 2003, recommending approval of Staff’s recommendations.

Discussion/Action: The award of the purchase to Certified Coatings of California, the low price quote, was approved and execution of the service order was authorized. Vote: 11-0-0-0.

2.14 Approval to reject all bids for the purchase of two fire air support apparatus and authorization for the Director of General Services to re-solicit bids. CEQA: Not a Project. (General Services)

Documents Filed: Memorandum from Director of General Services Jose Obregon, dated May 27, 2003, recommending the rejection of all bids for the purchase of two fire air support apparatus and authorization for the Director of General Services to re-solicit bids.

Discussion/Action: The rejection of all bids for said purchases and the execution for the Director of General Services to re-solicit bids was authorized. Vote: 11-0-0-0.

2.15 Report on bids and award the purchase of 95 emitters and 95 switches to the lowest responsive bidder, Advanced Traffic Products, Inc. (Everett, WA), in the amount of $113,121.25, including tax, and authorization for the Director of General Services to execute the purchase order and subsequent purchase(s) of additional emitters and switches at the same bid price without further Council action other than the appropriation of necessary funds, for a maximum period of twelve months from the date of Council approval. CEQA: Not a Project. (General Services)

Documents Filed: Memorandum from Director of General Services Jose Obregon, dated May 27, 2003, recommending approval of the report on bids and award said purchase.

Discussion/Action: The award of said contract to the lowest responsive bidder, Advanced Traffic Products, Inc. was approved and the execution of the purchase order was authorized. Vote: 11-0-0-0.

2.16 Adoption of a resolution approving a conditional grant in an amount not to exceed $1,035,000 from the 20% Low- and Moderate-Income Housing Fund to the Emergency Housing Consortium, or its designated affiliate, for the construction and permanent financing of the Our House/City Year Youth Facility, located at the northeast corner of East William and South Third Streets. CEQA: Exempt, PP03-06-197. District 3. SNI: University. (Housing)

Documents Filed: Memorandum from Director of Housing, Leslye Corsiglia, dated May 27, 2003, recommending the adoption of said resolution.

Discussion/Action: Resolution No. 71616 , entitled: “A Resolution of the Council of the City of San José (I) Approving A Conditional Grant In An Amount Not to Exceed $1,035,000 to the Emergency Housing Consortium, Or Its Designated Affiliate, For the Construction and Permanent Financing of the Our House/City Year Youth Facility, Located at the Northeast Corner Of East William and South Third Streets; and (II) Finding That City Year is a Leadership Program That Can Provide Mentorship Assistance to Homeless Youth of The City Year Youth Facility”, was adopted. Vote: 11-0-0-0.

2.17 Adoption of a resolution authorizing the reorganization of territory designated as Amos No. 33, which involves the annexation to the City of San José of approximately 2.5 acres, located on the north side of Quimby Road, approximately 300 feet easterly of Mission Greens Drive, and the detachment of the same from Central Fire Protection, Santa Clara Valley County Water, and Santa Clara County Library Services. CEQA: Mitigated Negative Declaration, PDC03-010. Council District 8. (Planning, Building and Code Enforcement)

Documents Filed: Memorandum from Director of Planning, Building & Code Enforcement Stephen Haase, dated May 27, 2003, recommending the adoption of said resolution.

Discussion/Action: Resolution No. 71617, entitled: “A Resolution of the Council of the City of San José Ordering the Reorganization of Certain Uninhabited Territory Designated as Amos No. 33 Subject to Liability for General Indebtedness of the City”, was adopted. Vote: 11-0-0-0.

2.18 Adoption of a resolution approving, confirming, and adopting the City of San José Library Benefit Assessment District Annual Report for Fiscal Year 2003-2004 and levying the assessments. CEQA: Resolution No. 65459, PP03-06-204. (Public Works/Library)

Documents Filed: Memorandum from Director of Public Works Katy Allen and Library Director Jane Light, dated May 27, 2003, recommending the adoption of said resolution.

Discussion/Action: Resolution No. 71618, entitled: “A Resolution of the Council of the City of San José Approving, Confirming and Adopting the City of San José Library Benefit Assessment District Annual Report for Fiscal Year 2003-2004 and Levying the Assessments”, was adopted. Vote: 11-0-0-0.

2.19 Adoption of a resolution of intention to vacate Mill Street west of Hope Street, and setting a public hearing on August 12, 2003 at 1:30 p.m. CEQA: Exempt, PP03-02-044. Council District 4. (Public Works)

Documents Filed: (1) Supplemental memorandum from Director of Public Works Katy Allen, dated June 16, 2003, stating a change to the public hearing date provided in the initial report. (2) Memorandum from Director of Public Works Katy Allen, dated May 27, 2003, recommending the adoption of said resolution.

Discussion/Action: Resolution No. 71619, entitled: “A Resolution of the Council of the City of San José Setting a Public Hearing to Consider Whether to Vacate a Portion of Mill Street, West of Hope Street”, was adopted. Vote: 11-0-0-0.

2.20 Report on bids and award of contract for the Payne Avenue Sidewalk - Eden Avenue to Winchester Blvd. Project to the low bidder, OC Jones and Sons Incorporated, in the amount of $162,984, and approval of a contingency in the amount of $25,000. CEQA: Exempt, PP00-10-143. Council District 1. SNI: Winchester. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated May 27, 2003, recommending approval of a report on bids and award of said contract.

Discussion/Action: The award of said contract to the low bidder, OC Jones and Sons, Inc. with the related contingency was approved. Vote: 11-0-0-0.

2.21 (a) Report on bids and award of contract for the Street Light Crackdown 2003 to the low bidder, Pacific Electric Company, in the amount $137,031, and approval of a contingency in the amount of $13,700. CEQA: Exempt, PP01-02-023. Council Districts 1, 3, 5, and 7. SNI: Winchester, University, Washington/ Guadalupe, East Valley/680 Communities, and Rocksprings/Tully/Senter/Santee/ Kennedy. (Public Works)

(b) Report on bids and award of contract for the Street Lights Strong Neighborhoods 2003 Project to the low bidder, Pacific Electric Company, in the amount of $147,401, and approval of a contingency in the amount of $14,700. CEQA: Exempt, PP01-02-023. Council District 2, 3, and 7. SNI: Washington, Edenvale/Great Oaks. (Public Works)

Documents Filed: (1) Memorandum from Director of Public Works Katy Allen, dated May 27, 2003, recommending the approval of a report on bids and award of said contract for the Street Light Crackdown 2003 to the low bidder, Pacific Electric Company. (2) Memorandum from Director of Public Works Katy Allen, dated May 27, 2003, recommending the approval of a report on bids and award of said contract for the Street Lights Strong Neighborhoods 2003 Project to the low bidder, Pacific Electric Company.

Discussion/Action: Council Member Gregory asked Staff to provide a list of streetlight requests that were rejected for the Street Light Crackdown and Street Light Strong Neighborhoods 2003 projects. The award of said contracts to the low bidder, Pacific Electric Company was approved. Vote: 11-0-0-0.

2.22 Report on bids and award of contract for the Basking Ridge Park Tot Lot Development Project to the low bidder, Bellicitti & Pellicciotti, to include the base bid and Add Alternate Nos. 1 and 2, in the amount of $140,630, and approval of a contingency in the amount of $7,000. CEQA: Exempt, PP02-12-364. Council District 2. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated May 27, 2003, recommending the approval of a report on bids and award of said contract for the Basking Ridge Park Tot Lot Development Project to the low bidder, Bellicitti & Pellicciotti.

Discussion/Action: The award of said contract to the low bidder, Bellicitti & Pellicciotti with the related contingency was approved. Vote: 11-0-0-0.

2.23 Approval of the first amendment to the agreement with David L. Gates and Associates Inc. for landscape architectural consultant services for the Tully Road Multi-Use Facility Project extending the term from June 30, 2003 to September 1, 2004, increasing compensation by $88,373, for a total amount not to exceed $398,648 and expanding the scope of services. CEQA: Mitigated Negative Declaration, PP02-04-080. Council District 7. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated May 27, 2003, recommending approval of a first amendment to said agreement with David L. Gates and Associates, Inc.

Discussion/Action: The first amendment to the said agreement with David L. Gates and Associates, Inc. was approved Vote: 11-0-0-0.

2.24 Report on bids and award of contract for the Eden Avenue Traffic Management Project to the low bidder, OC Jones and Sons, in the amount of $586,750, and approval of a contingency in the amount of $30,000. CEQA: Exempt, PP03-01-019. Council District 1. SNI: Winchester. (Public Works)

Documents Filed: (1) Memorandum from Councilmember Linda J. LeZotte, dated June 13, 2003, recommending the approval of Staff’s report on Eden Avenue Traffic Calming Project and award bid at Council Meeting on June 17, 2003. (2) Supplemental memorandum from Director of Public Works Katy Allen, dated June 10, 2003, providing additional information after bids were opened. (3) Memorandum from Director of Public Works Katy Allen, dated May 27, 2003, recommending approval of a report on bids and award of said contract for the Julian Sunol Sanitary Sewer Rehabilitation Phase III Project to the lowest bidder, California Trenchless, Inc. (4) Correspondence from Cynthia Cobb stating opposition to said contract. (5) Signed petition stating the approval of Council to approve the award of contract for traffic calming on Eden Ave from 20 residents.

Discussion/Action: Mayor Gonzales opened the public hearing and Nancy Avila, Annette Drew, Sandy Bala, Jim Downey, Daniel Jo Cerrello, Richard Kabanek, Carl Shuenaker,

Rick Miller, Christina Pasetta, Mario Vazquez, Al Chamberlain, Glenn Avila, Glenda Gilliland, Lynn Melville, Nancy Healy, Dianne Rosario, Neal Brabazon, spoke on the issue. The Public Hearing was closed. Council Member LeZotte asked Staff why speed bumps were not in the Eden Avenue Traffic Management project. Director of Transportation Jim Helmer stated the speed bumps could cause delays to Fire reponse teams and public safety vehicles, when called for emergencies. The award for said contract with the low bidder, OC Jones and Sons with the related contingency was approved. Vote: 11-0-0-0.

2.25 Report on bids and award of contract for the Julian-Sunol Sanitary Sewer Rehabilitation Phase III Project to the lowest responsive bidder, California Trenchless, Inc., in the amount of $1,041,440, and approval of a contingency in the amount of $104,500. CEQA: Exempt, PP02-03-049. Council District 3. (Public Works)

Documents Filed: None.

Discussion/Action: This item was deferred to June 24, 2003.

2.26 Adoption of resolutions approving, confirming, and adopting the Annual Budget Reports for Fiscal Year 2003-04 and levying the assessments for the following City of San José Maintenance Districts: 1 (Los Paseos), 2 (Trade Zone Blvd. - Lundy Ave.), 5 (Orchard Pkwy. - Plumeria Dr.) , 8 (Zanker - Montague), 9 (Santa Teresa - Great Oaks) , 11 (Brokaw Rd. from Junction Ave. to Old Oakland Rd.), 13 (Karina - O'Nel), 15 (Silver Creek Valley), 18 (The Meadowlands), 19 (River Oaks Area Landscaping), 20 (Renaissance - North First Landscaping), 21 (Gateway Pl. - Airport Pkwy.), and 22 (Hellyer Ave. - Silver Creek Valley Rd.). CEQA: Resolution No. 65459, PP03-06-205. Council Districts 2, 3, 4, and 8. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated May 27, 2003, recommending the adoption of said resolutions.

Discussion/Action: Resolution No. 71620, entitled: “A Resolution of the Council of the City of San José Approving the Annual Budget Report for Maintenance District 1 (Los Paseos) for Fiscal Year 2003-2004 and Levying Assessments”, Resolution No. 71621, entitled: “A Resolution of the Council of the City of San José Approving the Annual Budget Report for Maintenance District 2 (Trade Zone Boulevard – Lundy Avenue) for Fiscal Year 2003-2004 and Levying Assessments”, Resolution No. 71622, entitled: “A Resolution of the Council of the City of San José Approving the Annual Budget Report for Maintenance District 5 (Orchard Parkway – Plumeria Drive) for Fiscal Year 2002-2003 and Levying Assessments”, Resolution No. 71623, entitled: “A Resolution of the Council of the City of San José Approving the Annual Budget Report for Maintenance District 8 (Zanker – Montague) for Fiscal Year 2002-2003 and Levying Assessments”, Resolution No. 71624, entitled: “A Resolution of the Council of the City of San José Approving the Annual Budget Report for Maintenance District 9 (Santa Teresa – Great Oaks) for Fiscal Year 2003-2004 and Levying Assessments”, Resolution No. 71625, entitled: “A Resolution of the Council of the City of San José Approving the Annual Budget Report for Maintenance District 11 (Brokaw Road from Junction Avenue to Old Oakland Road) for Fiscal Year 2003-2004 and Levying Assessments”, Resolution No. 71626, entitled: “A Resolution of the Council of the City of San José Approving the Annual Budget Report for Maintenance District 13 ( Karina – O’Nel) for Fiscal Year 2003-2004 and Levying Assessments”, Resolution No. 71627, entitled: “A Resolution of the Council of the City of San José Approving the Annual Budget Report for Maintenance District 15 (Silver Creek Valley) for Fiscal Year 2003-2004 and Levying Assessments”, Resolution No. 71628, entitled: “A Resolution of the Council of the City of San José Approving the Annual Budget Report for Maintenance District 18 (The Meadowlands) for Fiscal Year 2003-2004 and Levying Assessments”, Resolution No. 71629, entitled: “A Resolution of the Council of the City of San José Approving the Annual Budget Report for Maintenance District 19 (River Oaks Area Landscaping) for Fiscal Year 2003-2004 and Levying Assessments”, Resolution No. 71630, entitled: “A Resolution of the Council of the City of San José Approving the Annual Budget Report for Maintenance District 20 (Renaissance – North First Landscaping) for Fiscal Year 2003-2004 and Levying Assessments”, Resolution No. 71631, entitled: “A Resolution of the Council of the City of San José Approving the Annual Budget Report for Maintenance District 21 (Gateway Place – Airport Parkway) for Fiscal Year 2003-2004 and Levying Assessments”, and Resolution No. 71632, entitled: “A Resolution of the Council of the City of San José Approving the Annual Budget Report for Maintenance District 22 (Hellyer Avenue – Silver Creek Valley Road) for Fiscal Year 2003-2004 and Levying Assessments”, were adopted. Vote: 11-0-0-0.

2.27 Approval of an agreement with MRF Geosystems Corporation for consultant services for a Spatial Adjustment of Street Centerline, Parcel and Related GIS Layers Project in an amount not to exceed $660,000, for an agreement term from the date of execution to June 30, 2004. CEQA: Not a Project. (Public Works)

Documents Filed: (1) Supplemental memorandum from Director of Public Works Katy Allen and Chief Information Officer, Wandzia Grycz, dated June 10, 2003, providing additional information regarding the benefits of the digital adjustment of the City’s basemap. (2) Memorandum from Director of Public Works Katy Allen, dated May 27, 2003, recommending approval of said agreement with MRF Geosystems Corporation.

Discussion/Action: Council Member Williams directed Staff to provide the completion date of the GIS Layer Project contract. The said agreement with MRF Geosystems Corporation for said services was approved. Vote: 11-0-0-0.

2.28 Approval of an ordinance amending Section 3.28.030.05 of Chapter 3.28 of the San José Municipal Code to include incentive pay for Anti-Terrorist Training in the definition of Compensation for purposes of calculation of retirement benefits in the Federated City Employees’ Retirement System. CEQA: Exempt, PP03-05-173. (Retirement Services)

Documents Filed: Memorandum from Director of Retirement Services Edward F. Overton, dated May 27, 2003, recommending approval of said ordinance.

Discussion/Action: Ordinance No. 26918, An Ordinance of the City of San José Amending Section 3.28.030.05 of Chapter 3.28 of Title 3 of the San José Municipal Code to Include Anti-Terrorist Training Incentive Pay in the Definition of Compensation in the Federated City Employees Retirement System”, was passed for publication. Vote: 11-0-0-0.

2.29 Adoption of a resolution authorizing the City Manager to negotiate and execute an un-metered service agreement with the Pacific Gas and Electric Co. (PG&E) to supply power to School Radar Speed Display Signs, in an amount not to exceed $1,600 per year. CEQA: Exempt, PP02-11-327. (Transportation)

Documents Filed: Memorandum from Director of Transportation James R. Helmer, dated May 27, 2003, recommending the adoption of said resolution.

Discussion/Action: Resolution No. 71633, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Un-Metered Service Agreement with Pacific Gas and Electric Company to Supply Power to School Radar Display Signs in an Amount Not to Exceed $1,600 Per Year”, was adopted. Vote: 11-0-0-0.

2.30 Approval of an ordinance amending section 11.96.070 of Chapter 11.96 of Title 11 of the Municipal Code to add a prohibition of commercial vehicles in excess of five tons on the following streets:

(a) Fifth Street, between Hedding Street and Taylor Street.

(b) Sixth Street, between Hedding Street and Taylor Street.

CEQA: Exempt, PP03-05-184. Council District 3. (Transportation)

Documents Filed: Memorandum from Director of Transportation James R. Helmer, dated May 27, 2003, recommending approval of said ordinance.

Discussion/Action: Council Member Chavez asked Staff to return with a report back to Council pertaining to the Seventh Street, Tenth Street, and Eleventh Street truck traffic policies. Ordinance No. 26919, entitled: “An Ordinance of the City of San José Amending Section 11.96.070 of Chapter 11.96 of Title 11 of the San José Municipal Code to Add a Prohibition of Commercial Vehicles in Excess of 5 Tons on Fifth Street Between Hedding Street and Taylor Street, Sixth Street Between Hedding Street and Taylor Street, and On Mission Street, Between Fourth Street and Seventh Street”, was passed for publication. Vote: 11-0-0-0.

2.31 Adoption of a resolution to rescind Resolution No. 71447 related to the establishment of speed limits in the City of San José, and to establish the speed limits in the City of San José, including re-establishing the speed limit on Grand Boulevard, between First Street and Los Esteros Road, from 35 MPH to 30 MPH. CEQA: Exempt, PP03-05-185. Council District 4. (Transportation)

Documents Filed: Memorandum from Director of Transportation James R. Helmer, dated May 27, 2003, recommending said resolution.

Discussion/Action: Resolution No. 71634, entitled: “A Resolution of the Council of the City of San José Reestablished Speed Limits on a Section of Grand Boulevard, and Reestablishing Without Change, Speed Limits on Other Streets Within the City of San José and Repealing Resolution No. 71447”, was adopted. Vote: 11-0-0-0.

2.32 Approval of agreement as to form, for Convention Center Utility Services Agreement. (Conventions, Arts and Entertainment)

(Rules Committee referral 6/11/03)

Documents Filed: None.

Discussion/Action: This item was deferred to June 24, 2003..

2.33 Approval of an ordinance amending Chapter 4.80 of Title 4 of the San José Municipal Code by establishing a Housing Trust Fund. CEQA: Exempt, PP03-06-217. (Housing)

(Rules Committee referral 6/11/03)

Documents Filed: Memorandum from Director of Housing Leslye Corsiglia, dated June 10, 2003, approving said ordinance.

Discussion/Action: Council Member Campos requested Staff to provide the process regarding the five-member oversight committee for the housing trust and asked when they would be available. Director of Housing Leslye Corsiglia stated they would provide that information to Council once the structure to the Housing Trust Fund has been more developed, around early August. Ordinance No. 26920, entitled: “An Ordinance of the City of San José Amending Part 4.80 of Title 4 of the San José Municipal Code to Replace the Housing and Homeless Fund by Establishing the City of San José Housing Trust Fund”, was passed for publication. Vote: 11-0-0-0.

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

(a) A termination of Housing Opportunities for People With AIDS (HOPWA) and Housing Opportunities for People With AIDS Special Projects of National Significance (HOPWA SPNS) agreements with AIDS Resource, Information & Services (ARIS) pursuant to Section 15 of the contract, and;

(b) A first amendment to the agreement with Health Connections to increase the HOPWA and HOPWA SPNS awards.

CEQA: Not a Project. (Housing)

(Rules Committee referral 6/11/03)

Documents Filed: Memorandum from Director of Housing, Leslye Corsiglia, dated June 10, 2003, recommending the adoption of said resolution.

Discussion/Action: Resolution No. 71635, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of Housing to Negotiate and Execute (I) A termination of the Housing Opportunities for People with AIDS (HOPWA) and Housing Opportunities for People with AIDS Special Projects of National Significance (HOPWA SPNS) Agreements with AIDS Resources, Information & Services (ARIS) Pursuant to Section 15 of the Agreement; and (II) A First Amendment to the Agreement with Health Connections to Increase the HOPWA and HOPWA SPNS Awards”, was adopted. Vote: 11-0-0-0.

2.35 (a) Increase the project contingency budget for the Fair Swim Center by $20,000, from $465,000 to $485,000.

(b) Adoption of the following appropriation ordinance amendments in the Council District 7 Construction and Conveyance Tax Fund:

(1) Increase the appropriation for Fair Swim Center: Furnishings, Fixtures and Equipment by $107,000.

(2) Increase the appropriation for Fair Swim Center by $150,000.

(3) Decrease the Ending Fund Balance by $257,000.

CEQA: Negative Declaration, PP00-10-148. Council District 7. (Parks, Recreation and Neighborhood Services/Public Works/City Manager’s Office)

(Rules Committee referral 6/11/03)

Documents Filed: Memorandum from Director of Parks, Recreation & Neighborhood Services Sara Hensley, dated June 12, 2003, recommending said increase to the project contingency budget for the Fair Swim Center and the adoption of said appropriation ordinance amendments in the Council District 7 Construction and Conveyance Tax Fund.

Discussion/Action: Council Member Gregory expressed concern regarding the projects within his district going over budget, he asked Staff to find a way to ensure District 7’s project costs are more predictable which would allow the projects to stay within their allotted budget. Ordinance No. 26921, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Moneys in the Council District 7 Construction Tax and Property Conveyance Tax Fund for the Fair Swim Center; and Providing that this Ordinance Shall Become Effective Immediately Upon Adoption”, was adopted. Vote: 11-0-0-0.

END OF CONSENT CALENDAR

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – Meeting of June 4, 2003

Vice Mayor Dando, Chair

Documents Filed: Rules Committee Report of June 4, 2003.

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

(b) City Council

(1) Review June 17, 2003 Draft Agenda

The Committee recommended approval of the June 17, 2003 City Council agenda with six additions.

(2) Add New Items to June 10, 2003 Amended Agenda

The Committee recommended three additions to the June 10, 2003 City Council agenda.

(3) List of Reports Outstanding

There were no reports outstanding for the June 20, 2003 City Council agenda.

(1) State

(a) Approval of staff recommendations on four State legislative bills:

AB 792 (Yee) Vehicles: Removal: Storage

ACA 9 (Levine) Local Government Taxation: Special Taxes: Voter Approval

ACA 11 (Levine) Local Government: General Obligation Bonds, Infrastructure Projects

SCA 11 (Alarcon) Local Government: Special Taxes and General Obligation Bonds; Infrastructure Projects. Attachment: Memorandum from Director of Intergovernmental Relations Betsy Shotwell, dated May 21, 2003, requesting approval of staff recommendations on four State legislative bills; and a memorandum from Assistant City Manager Mark Linder, dated June 2, 2003, entitled, “State Budget Update”.

The Committee approved the staff recommendations of “Support” on each bill and directed staff to forward updated information on ACA 9 (Levine) as it becomes available prior to the June 17, 2003 Council meeting. The Committee noted and filed Assistant City Manager Linder’s report.

(2) Federal – There was no report.

(d) Meeting Schedules – There were none.

(e) The Public Record

The Committee referred Item (a), (a letter from Jerome Pierce regarding the efforts of the Christian Congregation of Jehovah’s Witnesses to hold a convention at the HP Pavillion), to the City Attorney to return to Rules Committee on June 18, 2003 with an assessment of the City’s existing policy as to what qualifies as a community event, and how the policy might affect the allocation of grant funds to religious groups. The Committee noted and filed the Public Record.

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

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

There were none.

(h) Administrative Reviews and Approval

There were none.

(i) Oral communications

None were presented.

(j) Adjournment

The meeting adjourned at 2:35 P.M.

Report of the Rules Committee – Meeting of June 11, 2003

Documents Filed: (1) Rules Committee Report of June 11, 2003. (2) Memorandum from Director of Intergovernmental Relations Betsy Shotwell and Director of Transportation, James R. Helmer, dated June 11, 2003, providing additional information on the measure to clarify the current bill language.

(1) State

(a) Recommend adoption of a position in regard to Senate Bill 60 (Cedillo), Vehicles: Social Security Account Number: Drivers Licenses: Identification Cards

(Council Referral 6/10/03 – Item 3.6)

See Item 3.8 for Council action taken

Assistant Police Chief Tom Wheatley explained the staff recommendation to take “no position” on SB 60. Carrie Sanders, Policy Director for SIREN (Services, Immigrant Rights & Education Network), spoke in support of SB 60. The Committee forwarded this item to Council with no recommendation.

Discussion/Action: Upon motion by Vice Mayor Dando, seconded by Council Member Chavez, and unanimously carried, the Rules Committee Report and Actions of June 4, 2003 and June 11, 2003 were accepted. Vote: 11-0-0-0.

3.4 Adoption of amendments to the annual appropriation ordinance and funding sources resolution for various operating and capital funds to reflect estimated FY 2002-2003 revenue receipts, expenses, and encumbrances. CEQA: Not a Project. (City Manager’s Office)

Documents Filed: None.

Discussion/Action: This item was deferred to June 24, 2003.

3.5 Adoption of a resolution taking the following actions with respect to the City's 2003-2004 “Gann Limit”:

(a) Elect the per capita income index as the inflation factor for 2003-2004 on a provisional basis, with the option to adjust the Limit, if necessary, once the assessment data is available from the County Assessor; and

(b) Elect the City population growth index as the population factor for 2003-2004; and

(c) Establish the Fiscal Year 2003-2004 Appropriation Limit at $588,298,425 in compliance with Article XIIIB of the State Constitution.

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

Documents Filed: None.

Discussion/Action: This item was dropped and renumbered to Item 3.9(c)

3.6 Adoption of a resolution by the City Council authorizing the City Manager to negotiate and execute amendments to the Line of Credit Agreement and the Third Amended and Restated Lease Agreement with Hayes Renaissance, L.P. (HRLP), extending availability and repayment of advances under the Line of Credit Agreement, and deferral of rent and repayment of deferred rent and outstanding line of credit loans, to a date not later than December 31, 2003. The proposed amendment to the Lease is subject to the approval of Comerica Bank. CEQA: Negative Declaration. (Finance/Economic Development/City Manager’s Office)

Documents Filed: None.

Discussion/Action: This item was deferred to June 24, 2003.

3.7 Recommendation of the Historic Landmarks Commission to name the Fox Theatre at 345 South First Street "California Theatre." (Historic Landmarks Commission/City Clerk)

Documents Filed: Memorandum from City Clerk Patricia L. O’Hearn, dated May 29, 2003, recommending the re-naming of the Fox Theatre at 345 South First Street to its original name, California Theatre.