CITY COUNCIL STUDY SESSION

PROPOSED FY 2003-2004 OPERATING BUDGET

and

PROPOSED FY 2003-2004 CAPITAL PROGRAM

and

PROPOSED FY 2004-2008 CAPITAL IMPROVEMENT PROGRAM

May 21, 2003

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

ABSENT: None.

STAFF: City Manager Del D. Borgsdorf, City Attorney Richard Doyle, Assistant City Manager Mark Linder, Budget Director Larry D. Lisenbee, Assistant Budget Director Jennifer Maguire, Mayor’s Budget and Policy Director Joe Guerra, Redevelopment Agency Executive Director Susan Shick, Mayor’s Budget and Policy Assistant Julie Shioshita, Assistant City Clerk Nancy Alford, and Legislative Secretary Helen Moreno

Documents Filed: (1) Hard copies of the Staff presentation on the Progress Report Implementing the Current Capital Improvement Program FY 2003-2007. (2) Hard copy of Staff presentation of Aviation Services CSA an overview for the airport capital improvement program. (3) Hard copy of Staff presentation of Capital Program for Economic and Neighborhood Development City Service Area on Undergrounding Projects. (4) Hard copies of the Staff presentation of Environmental and Utility Services CSA Capital Programs for water and sewer systems. (5) Hard copies of the Staff presentation of Public Safety CSA for the Public Safety Capital Program. (6) Hard copies of the Staff presentation of Recreation and Cultural Services CSA Capital programs.

The meeting was called to order at 10:00 a.m. in Council Chambers, City Hall to continue discussion on the Proposed FY 2003-2004 Operating Budget for Aviation CSA, and to review the Proposed FY 2003-2004 Captial Budget and the Proposed FY 2004-2008 Capital Improvement Program.

PROPOSED 2003-2004 OPERATING BUDGET - Continued from May 16, 2003

Aviation Services CSA – Continued from May 16, 2003

Airport Department – Continued from May 16, 2003

Council Member Chavez referenced the Airport Acoustical Treatment Program and what neighborhood outreach and community work is being done for hard-to-serve homes, and requested Staff to re-group with the Housing Department to review strategies to meet the needs of those particular homes and to report to Council by August.

Council Member Chavez asked about the Airport’s marketing efforts and strategies and given difficult budget times, was concerned about marketing being an item difficult to keep on the table and requested Staff to review joint opportunities with the business community, the Redevelopment Agency and the Convention and Visitor’s Bureau to put money into joint funding.

Council Member Yeager requested Staff to review the possibility of adding more language

to performance measure summaries on the Airport’s goal of being a good neighbor and to review satisfaction of complaint response time by sending follow-up questionnaires asking if they received an answer or if the problem was resolved, and to include issues related to curfew violations.

PROPOSED FY 2003-2004 CAPITAL BUDGET and PROPOSED FY 2004-2008 CAPITAL IMPROVEMENT PROGRAM

City Manager Del Borgsdorf presented an introduction to the Proposed Capital Budget by a video entitled: “Decade of Investment.” Additional introductory presentations were made by Deputy City Manager Terry Roberts and Budget Director Larry D. Lisenbee.

Vice Mayor Dando referenced the slide presentation of “Progress Report Implementing the Current CIP FY2003-2007” regarding the Construrction & Conveyance tax monies being transferred into the General Fund and requested Staff to provide more information on what kind of maintenance is allowed using Construction & Conveyance funds.

Vice Mayor Dando commented on the issue of the City building new capital projects with Measure O & P funds without operation and maintenance funds and expressed concern that the City will have to operate those projects, and requested Staff take into consideration on future capital projects, and with the state of the City budget, that the City does not have the ability to operate those buildings being built.

Public Speaker Ross Signarino addressed the Council about deflation.

The Council Budget Study Session recessed at 11:23 a.m. and reconvened at 1:50 p.m.

Aviation Services CSA

Aviation Director Ralph G. Tonseth commented how the airport fits into the activities of the Office of Economic Development and some of its values to the community and introduced Economic Development Director Paul Krutko for his point of view. Economic Development Director Paul Krutko presented an overview emphasizing how important through interviews with corporate partners the airport is and how the San José Mineta International Airport is a strategic economic development resouce and a primary asset for the community.

Aviation Director Ralph G. Tonseth presented an overview of a comprehensive summary for the Airport Capital Improvement Program.

Mayor Gonzales referenced page 59 of the CIP regarding the Airport Public Art Master Plan, which complies with the 2 percent requirement of the City’s existing public art ordinance for this program and recognizing that it is special fund money, and with just 1 percent spent and $7 million left that could be used for many of the arts groups that are suffering, requested Staff to partner with the airlines on the appropriate implementation of the policy.

Council Member Yeager commented about construction projects at the airport and directed Staff to review the possibility of using airport capital dollars to build trails along the airport.

Vice Mayor Dando referenced the asbestos removal for buildings being torn down at the airport, and it being cheaper during the building demolition to remove asbestos, requested Staff to provide the decision of how Staff will remove the asbestos seeking a cheaper and safer method.

Council Member Williams commented on page 27 on CIP Source of Funds and the $53,000 that is listed for the Information Technology Staff at the airport and requested Staff to provide information as to what type of specific expense it is.

Economic and Neighborhood Development CSA

Public Works Director Katy Allen and Deputy Director Timm Borden presented the Capital Improvement Program for the Economic & Neighborhood Development CSA slide show of the program’s goals to coordinate and facilitate a variety of infrastructure improvements with private sector development; with a major objective of ensuring that residential development within San José includes the construction of public improvements necessary to maintain and improve our public amenities for the public good.

Council Member Gregory referencing page 82 of CIP Budget, Developer Assisted Projects FY 2004-08 overview of program highlights and requested Staff to provide a report back on the status of design and construction of the McLaughlin Ave/Senter Road Underground Utility for District 7, and Council Member Campos requested the same report for McKee/Toyon Road in District 5.

Environmental and Utility Services CSA

Environmental Services Director Carl W. Mosher and Public Works Director Katy Allen gave a slide presentation on the capital investment program for the water and sewer systems and the capital maintenance and major investments and highlights of the program.

Vice Mayor Dando referenced CIP page 170, the Water Pollution Control Plant and the chemicals used for water disinfection and expressed concern regarding the issue of providing security for unprotected chemicals and requested Staff to provide an assessment within 6 months of the possibility of building a chlorine producing plant on site and underground, and for Staff to review how other cities are handling the same situation after the September 11, 2001 attacks, and in the interim, for Staff to increase security in the area along with an evacuation plan for residents or businesses surrounding the plant.

Public Safety CSA

Deputy City Manager Ed Shikada presented by a slide presentation on the Public Safety Capital Improvement Program focusing on overall program management strategies. Police Chief William M. Lansdowne presented by a slide presentation of the Capital Improvement Program for the Public Safety CSA and primary partners being the Police Department, Fire Department, and the Office of Emergency Services. Acting Fire Chief Dale E. Foster presented by a slide presentation an overview of the major investments and strategies of the Fire Capital Program.

Council Member Chavez referenced the future Fire Fighting Training Center and expressed concern over the splitting of fire and police for training and she expressed concern over the idea of remote satellite facilities not coinciding with the Fire Department’s original direction or vision, and requested Staff to look for the opportunity of one training center, and to join with the Police Department where there are shared opportunties for larger facilities, and also requested Staff to provide discussion updates between police and fire in terms of future fire fighting and police training, their goals and the challenges faced with dense urban areas and high rise buildings.

Recreation and Cultural Services CSA

Library Director Jane Light, Team Leader for Recreation and Cultural Services CSA, and Assistant Director Albert Balagso representing Parks, Recreation & Neighborhood Services, along with Public Works Deputy Director Dave Clark, and Deputy Library Director Richard Desmond presented by a slide presentation a summary of the capital program for the Park and Community Facilities Development and the Library Capital Program, and the primary partners: Conventions, Arts and Entertainment, Public Works, and General Services Department which is crucial in terms of planning and maintaining facilities.

The Council recessed at 5:00 p.m. to meet again on Thursday, May 22, 2003, at 8:00 a.m. in Council Chambers, to complete the review of the Proposed 2004-2008 Capital Budget.

NANCY ALFORD, ASSISTANT CITY CLERK