MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, OCTOBER 8, 2002

The Council of the City of San José convened in regular session at 9:00 a.m. in City Council Chambers at City Hall.

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

Absent: Council Members - Shirakawa, Jr. (excused).

Upon motion unanimously adopted, Council recessed at 9:05 a.m. to a Closed Session in Room 600 to confer with Legal Counsel pursuant to Government Code Section 54956.9; under Subsection (a) to discuss existing litigation in the cases of (1) City of San José V. Namimatsu, et al., (2) City of San José, et al. v. Piercy, et al., (3) Lopes, et al., v. Otis Elevator Company, et al.; to discuss anticipated litigation pursuant to Subsection (b) of Government Code Section 54956.9, in one matter involving the initiation of litigation, pursuant to Subsection (c) of Government Code 54956.9; and to conduct public employee performance evaluation pursuant to Government Code Section 54957: Title: City Attorney.

By unanimous consent, Council reconvened from the Closed Session and recessed at 10:35 a.m. and reconvened at 1:35 p.m. in the Council Chambers.

Present: Council Members - Campos, Chavez, Cortese, Dando, Diquisto, LeZotte, Reed, Shirakawa, Jr., Williams, Yeager; Gonzales.

Absent: Council Members - None.

Invocation (District 9)

Father Stout, San José Fire Department Chaplain, delivered the invocation.

Pledge of Allegiance

Mayor Gonzales led in the Pledge of Allegiance.

Orders of the Day

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

CEREMONIAL ITEMS

1.1 Presentation of a proclamation declaring October 6 - 12, 2002 as National Fire Prevention Week. (Fire)

Documents Filed: None.

Discussion/Action: Joining Mayor Gonzales at the Podium were Fire Chief Manuel P. Alarcon, and Battalion Chief Robert Piper, Program Manager-Public Education Division. Chief Alarcon accepted the proclamation declaring October 6-12, 2002 as National Fire Prevention Week, and in acknowledgment of the firefighters who valiantly gave their lives to save others in 2001, especially on September 11^th. Mayor Gonzales urged the people of San José to “Team Up For Fire Safety” by participating in fire-prevention activities at home, work, and school, and by taking the steps needed to make and keep their homes and families safe from the dangers of fires.

1.2 Presentation of a commendation to Jerry Silsdorf for participation in the Senior Games. (Dando)

(Rules Committee referral 10/2/02)

Documents Filed: None.

Discussion/Action: Council Member Dando joined Mayor Gonzales at the Podium and introduced Dave Peyton-Director of Office on Aging, and honoree Jerry Silsdorf, the individual responsible for bringing the Senior Games to the City of San José. Mayor Gonzales presented the commendation to the honoree and congratulated Jerry for his competitive spirit, enthusiasm for life, and unshakeable confidence in the benefits of athletics and active living for improving the quality of life for all older residents. Dave Peyton acknowledged the hard work and dedication of three Department of Parks, Recreation and Neighborhood Services employees who coordinated the activities of the Senior Games, which were hosted by the City of San José, and asked them to stand to be recognized.

CONSENT CALENDAR

Upon motion by Council Member Chavez, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the Consent Calendar was approved and the below listed items taken as indicated. Vote: 11-0-0-0.

2.3 Adoption of appropriation ordinance and funding sources resolution amendments in the Services for Redevelopment Capital Projects Fund (City-side Redevelopment Fund) for the Thirteenth Street Streetscape Project, the Barberry Lane Sidewalk Project, and the Replacement of Play Equipment at Washington Elementary School Project, with a net impact to the fund of $323,000. CEQA: Not a Project.

(City Manager’s Office)

Documents Filed: Memorandum from Budget Director Larry D. Lisenbee, dated September 18, 2002 recommending adoption of said appropriation ordinance and funding sources resolution amendments in the Services for Redevelopment Capital Projects Fund

Discussion/Action: William Garbett spoke on the item. Ordinance No. 26751, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 To Appropriate Moneys in the Services for Redevelopment Capital Projects Fund for the Thirteenth Street Streetscape Project, The Barberry Lane Sidewalk Project, and the Replacement of Play Equipment at Washington Elementary School Project; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, and Resolution No. 71239, entitled: “A Resolution of the Council of the City of San José Amending Resolution No. 71072 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2002-2003 to Adjust Revenues in the Services for Redevelopment Capital Projects Fund”, were adopted. Vote 11-0-0-0.

2.4 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2002-2003 #8, and authorization for the Director of General Services to execute the purchase orders. CEQA: Not a Project.

(General Services)

Documents Filed: Memorandum from Director of General Services Jose Obregon, dated September 18, 2002, recommending approval of said open purchase orders.

Discussion/Action: The award of said open purchase orders List #8 was approved and the Director of General Services authorized to execute the purchase orders. Vote: 11-0-0-0.

2.5 Approval of award of purchase of Herman Miller modular furniture for the Police Department from the authorized dealer, Pivot Interiors (San José, CA) for a total cost of $190,105.25 including tax and delivery and authorization for the Director of General Services to execute the necessary purchase agreements. CEQA: Not a Project. (General Services)

Documents Filed: None.

Discussion/Action: This item was deferred to October 15, 2002.

2.6 Adoption of a resolution authorizing the Director of Parks, Recreation, and Neighborhood Services to negotiate and execute amendments to CDBG contracts to:

(a) Continue and extend the funding term for eighteen months from June 20, 2001 to December 31, 2002, F68 Transitional Housing Rehabilitation Project Phase II - Emergency Housing Consortium (second extension).

(b) Continue and extend the funding term for one year from June 30, 2002 to June 30, 2003, F67 New Billy DeFrank Lesbian and Gay Community Center – Billy DeFrank Lesbian and Gay Community Center (third extension).

(c) Continue and extend the funding term for one year from June 30, 2002 to June 30, 2003, F74 Alliance Acquisition and Rehabilitation Project – Alliance for Community Care (second extension).

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

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated September 18, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71240, entitled: “A resolution of the Council of the City of San José Authorizing the Director of Parks, Recreation and Neighborhood Services to Negotiate and Execute Amendments to CDBG Contracts”, was adopted. Vote: 11-0-0-0.

2.7 Approval of the application schedule, process, evaluation and rating criteria for the FY 2003-04 CDBG application cycle. CEQA: Not a Project.

(Parks, Recreation and Neighborhood Services)

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated September 18, 2002, recommending approval of the application schedule, process, evaluation and rating criteria for the 2003-04 FY CDBG application cycle.

Discussion/Action: The application schedule, process, evaluation and rating criteria for the FY 2003-04 CDBG application cycle was approved. Vote: 11-0-0-0.

2.8 Adoption of a resolution initiating proceedings and setting October 22, 2002 at 1:30 p.m. for Council consideration on the reorganization of territory designated as Evergreen No. 184 which involves the annexation to the City of San José of 40.0 gross acres, located along Dove Hill Road easterly of Highway 101 approximately 2,000 feet northerly of Hellyer Avenue and the detachment of the same from Central Fire Protection and the Santa Clara County Library Services Area. CEQA: Resolution No. 65459, Evergreen No. 184. (Planning, Building and Code Enforcement)

Documents Filed: Memorandum from Planning, Building & Code Enforcement Director Stephen M. Haase, dated September 18, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71241, entitled: “Resolution of the Council of the City of San José Initiating Reorganization Proceedings for the Annexation and Detachment of Certain Uninhabited Territory Designated as Evergreen No. 184 and Described Herein, and Setting the Date and Place for Consideration of Such Reorganization”, was adopted. Vote: 11-0-0-0.

2.9 Report on bids and award of contract for the Police Administration Building Chiller Replacement Project to the low bidder Newcomb, Inc., in the amount of $236,185, and approval of a contingency in the amount of $47,000. CEQA: Exempt, PP02-07-190. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated September 18, 2002, recommending award of said contract, with related contingency, to the low bidder, Newcomb, Inc.

Discussion/Action: Council Member Williams referred to the Analysis Section regarding the 20% contingency for equipment, and asked for an explanation of the “undocumented structural, electrical facilities.” Katy Allen, Director of Public Works, responded Staff does not have information on the chillers that were installed in 1977. The award of said contract, with related contingency, to the low bidder, Newcomb, Inc. was approved and its execution authorized, with Staff directed to prepare a report clarifying the “undocumented structural, electrical, or mechanical modifications” as contained in the “Analysis” of the September 18, 2002 staff report. Vote: 11-0-0-0.

2.10 Report on bids and approval to reject the sole bid for the Fire Station Diesel Exhaust Phase VI Project, release bidder’s bond, and authorization for the Director of Public Works to re-advertise and re-bid the project at a later date. CEQA: Exempt, PP02-07-185. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated September 18, 2002, recommending Council reject the sole bid for said project and authorizate the Director of Public Works to re-advertise and re-bid the project.

Discussion/Action: The rejection of the sole bid for the Fire Station Diesel Exhaust Phase VI Project was approved and the Director of Public Works authorized to re-advertise and re-bid the project. Vote: 11-0-0-0.

END OF CONSENT CALENDAR

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – September 25, 2002

Vice Mayor Shirakawa, Jr., Chair

Documents Filed: Rules Committee Report of September 25, 2002.

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

(b) City Council

(1) Review October 8, 2002 Draft Agenda

The Committee recommended approval of the October 8, 2002 Council Agenda.

(2) Add New Items to October 1, 2002 Amended Agenda

The Committee recommended six additions, two drops, and one (1) continuation to the October 15, 2002 Council Agenda.

(c) City Council Committees

(1) Amendments to Council Committee Agendas

(a) Finance and Infrastructure Committee. Attachment: Draft agenda for the October 9, 2002 meeting of the Finance and Infrastructure Committee.

The Committee recommended approval to add the following item to the October 9, 2002 Agenda of the Finance and Infrastructure Committee: Audit of the Office of Equality Assurance (Auditor).

(b) Economic Development and Environment Committee

After dropping the Report on Group Home and Reasonable Accommodations from the October 1, 2002 Council Agenda, the Committee referred this item to a future meeting of the Economic, Development and Environment Committee.

(c) Education, Neighborhoods, Youth, and Seniors Committee

None Filed.

(d) Meeting Schedules - None Presented.

(e) The Public Record - No Public Record Filed.

(f) Boards, Commissions and Committees - None Presented.

3.2 Report of the Rules Committee – September 25, 2002 (Cont’d.)

Vice Mayor Shirakawa, Jr., Chair

(g) Council Referrals for Assignment to Appropriate Committee, Administration, or Council Appointee - None Presented.

(h) Administrative Reviews and Approval

(1) Workload assessment on the feasibility of instituting a code enforcement case-tracking log for use by City Council. Attachment: An Information Memorandum from Director of Planning, Building and Code Enforcement Stephen Haase dated September 23, 2002 describing creation of a prototype code enforcement case-tracking system.

The Committee accepted Mr. Haase’s memorandum and directed him to return to Rules Committee on December 4, 2002 with a progress report on the project.

(2) Workload assessment to audit Airport Neighborhood Services Group. Attachment: Memorandum from City Auditor Gerald Silva dated September 20, 2002 responding to a Rules Committee referral regarding an audit of the Airport Neighborhood Services Group.

The Committee accepted City Auditor Silva’s report and directed him to conduct an audit of the Airport Neighborhood Services Group.

(3) 2002 League of California Cities Resolutions

This item was reported at the October 1, 2002 Council Meeting.

(4) Request for recommendation to donate or sell surplus equipment. Attachment: Memoranda from Jose Obregon, Director of General Services, dated September 17, 2002 giving notice to the Rules Committee that a surplus front end loader is eligible for donation or sale; and from Council Members John Diquisto and Nora Campos, dated September 17, 2002 requesting donation of the surplus front end loader to the communities of Southern Baja, Mexico.

The Committee recommended donation of a surplus front-end loader to the communities of Southern Baja, Mexico.

(i) Oral Communications - None Presented.

(j) Adjournment - The meeting was adjourned at 2:20 p.m.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the Rules Committee Report and actions of September 25, 2002 were accepted. Vote: 11-0-0-0.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.2 PUBLIC HEARING on Historical Property Contract for the Charles O. Bocks Residence, City Landmark No. HL02-141, located at the southwest corner of The Alameda and Randol Avenue (1645 The Alameda) on 0.34 gross acre. (Jim Blair, Eaglecreek Associates II, Owner). CEQA: Exempt.

(Planning, Building, and Code Enforcement)

MA 02-002 - District 6

Documents Filed: None.

Discussion/Action: This item was continued to October 15, 2002.

4.3 PUBLIC HEARING on the Historical Property Contract for the Hotel Metropole, City Landmark No. HL88-46 and the Sunol Building, City Landmark No. HL02-129 located at the northwest corner of South Market and Post Streets (35 South Market St.) on 0.33 gross acre. (Florin II LTD, William B. Mitchell G.P., Owner). CEQA: Exempt. (Planning, Building, and Code Enforcement)

MA 02-003 - District 3

Documents Filed: None.

Discussion/Action: This item was continued to October 15, 2002.

4.4 Approval of an agreement with Valentino S. Mazzurca for the purchase of property located at the easterly corner of Floyd and Locust Streets in the amount of $675,000, and authorization for the Director of Public Works to execute any additional documents necessary to complete the transaction.

CEQA: Exempt, PP01-04-088. Council District 3. SNI: Washington/Guadalupe. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated September 18, 2002, recommending approval of said agreement with Valentino S. Mazzurca, and authorization for the Director of Public Works to execute any additional documents necessary to complete the transaction.

Discussion/Action: Upon motion by Council Member Chavez, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the agreement with Valentino S. Mazzurca was approved and its execution authorized. Vote: 11-0-0-0.

4.5 Adoption of a resolution:

(a) Approving an acquisition/predevelopment loan of up to $14,983,000 to Seven Hills Properties, or an affiliated entity, for the development of the 245-unit Cinnabar Commons family rental development; and

(b) Finding that the use of 20% Housing Funds and other Agency funds for the subject project is a benefit to the Redevelopment project areas in San Jose.

CEQA: Resolution No. 71174. Council District 6.

(Housing) (Rules Committee referral 10/2/02)

Documents Filed: Memorandum from Director of Housing Leslye Corsiglia, dated October 2, 2002, recommending adoption of said resolution approving an acquisition/predevelopment loan to Seven Hills Properties for the development of the 245-unit Cinnabar Commons family rental development.

Discussion/Action: William Garbett spoke on this item. Upon motion by Council Member Yeager, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Resolution No. 71242, entitled: “A Resolution of the Council of the City of San José (i) Approving up to $14,983,000 for an Acquisition and Predevelopment Loan to Seven Hills Properties, or Their Affiliate Entity for the Development of a 245 Unit Rental Housing Project, (ii) Finding that the Use of 20% Housing Funds and other Agency Funds for the Subject Project is a Benefit to the Redevelopment Project Areas in San José and (iii) Authorizing the Director of Housing to Negotiate and Execute all Necessary Documents Evidencing Such Loans on Behalf of the City”, was adopted. Vote: 11-0-0-0.

RECREATION & CULTURAL SERVICES

5.2 Approval of an agreement with Field Paoli Architects, Inc. for consultant services including project design, preparation of construction documents and construction administration services for the new Almaden Community Center and Branch Library Project for the period October 15, 2002 to June 30, 2006, in an amount of $1,955,900. CEQA: Not a Project. Council District 10.

(Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated September 18, 2002, recommending approval of said agreement with Field Paoli Architects, Inc.

Discussion/Action: Upon motion by Council Member Dando, seconded by Council Member LeZotte, and unanimously carried, the agreement with Field Paoli Architects, Inc. was approved and its execution authorized. Vote: 11-0-0-0.

5.3 Report on bids and award of contract for the Tully Road Ball Field Development-Phase I to the low bidder, SCQ Construction, in an amount of $639,200, and approval of a contingency in an amount of $64,000. CEQA: Mitigated Negative Declaration, PP02-04-080. Council District 7.

(Public Works) (Rules Committee referral 10/2/02)

Documents Filed: Memoranda from Director of Public Works Katy Allen, dated October 2, and October 4, 2002, recommending award of said contract, with related contingency, to the low bidder, SCQ Construction.

Discussion/Action: Vice Mayor Shirakawa, Jr., expressed disappointment that only three of the fields for the planned five-field complex had been completed and asked for an explanation and plan as to when the other two fields would be built. Director Allen

explained that the project was planned in phases to accommodate use of the fields by March 1, 2002, and that there were not sufficient construction days to have all five fields built by March 2002, and that Staff is putting together a plan to have the other two fields completed by March 2004. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the award of said contract, with related contingency, to the low bidder, SCQ Construction, was approved and its execution authorized. Vote: 11-0-0-0.

ENVIRONMENTAL & UTILITY SERVICES

7.1 (a) Adoption of a resolution revising the Commercial Solid Waste Collection Franchise Fee for service performed on or after November 1, 2002, as follows:

(1) For each uncompacted cubic yard collected, increase the Franchise Fee from $2.84 to $2.98 per cubic yard.

(2) For each compacted yard, increase the Franchise Fee from $8.52 to $8.94 per cubic yard.

(3) Provide an exemption from the Franchise Fee for the first 23,400 cubic yards of un-compacted solid waste (or the equivalent of compacted solid waste) collected in any fiscal year (July 1-June 30).

(b) Adoption of a resolution amending the 2002-2003 Schedule of Fees and Charges to revise the Commercial Solid Waste Source Reduction and Recycling (AB939) Fee effective November 1, 2002, as follows:

(1) For each uncompacted cubic yard collected, decrease the fee from $1.00 to $0.86 per uncompacted cubic yard.

(2) For each compacted cubic yard collected, decrease the fee from $3.00 to $2.58 per cubic yard.

CEQA: Not a Project. (Environmental Services)

(Deferred from 9/24/02 – Item 7.1)

Documents Filed: Memoranda from Director of Environmental Services, Carl W. Mosher, dated September 4, and October 4, 2002, recommending adoption of said resolutions: (a) revising the Commercial Solid Waste Collection Franchise Fee, and (b) amending the 2002-2003 Schedule of Fees and Charges

Discussion/Action: Upon motion by Council Member Cortese, seconded by Council Member Dando, and unanimously carried, Resolution No. 71243, entitled: “Resolution of the Council of the City of San José Setting Commercial Solid Waste Collection Franchise Fees for Services Performed on or After November 1, 2002”; and Resolution 71244, entitled: “A Resolution of the Council of the City of San José Amending Section 7.010 of Resolution No. 71036 to Revise the Commercial Source Reduction and Recycling Fee”, were adopted. Vote: 11-0-0-0.

AVIATION SERVICES

8.1 Adoption of a resolution:

(a) Authorizing the Director of General Services to negotiate and execute a one-year agreement, with six one-year options to extend with AMPCO System Parking, for airport parking facilities management for the period November 8, 2002 to November 7, 2003, with a total first year compensation not to exceed $4,500,000; and

(b) Authorizing the Director of General Services to execute each of the options without further City Council action other than the appropriation of necessary funding.

CEQA: Resolution No. 67380; PP02-09-243. (General Services/Airport)

Documents Filed: Memorandum from Director of General Services Jose Obregon, and Director of Aviation Ralph G. Tonseth, dated September 18, 2002, recommending adoption of said resolution authorizing the Director of General Services to negotiate and execute a one-year agreement with six one-year options with AMPCO System Parking.

Discussion/Action: Mayor Gonzales asked if the difference in Five-Star’s and AMPCO’s bids was that AMPCO is able to meet the City’s level of needs at a lower cost. Jose Obregon, Director of General Services, responded that this was a fair assessment. Mayor Gonzales asked if the cashiers employed by Five-Star will be retained by AMPCO and, if so, will it be at the same salaries. Director Obregon responded that they would be retained; however, salaries are a business decision by AMPCO. Mayor Gonzales asked if Staff was convinced that all due diligence has been done at AMPCO regarding finance, legal or administrative abilities to carry out this contract. Director Obregon responded that there was an extensive analysis of all proposals based on set criteria. Airport Staff added that other airports were contacted where AMPCO and the other proposers operate to verify they could handle the Airport operations properly, and that Staff is comfortable with AMPCO’s proposal.

Council Member Chavez asked what are the current full-time equivalent employees working under Four-Star’s contract. Staff responded that Four-Star employees are currently providing approximately 1614 cashier hours per week. Council Member Chavez stated that she believes the City’s retention policy should be used as a guideline during the next phase of the contract, and asked if Staff is comfortable with AMPCO being able to live up to the policy. Staff responded that AMPCO is committed to meeting the City’s policy. Council Member Chavez expressed concern with the full-time equivalents element of the retention policy as it relates to cashiers, and stated that she believes in order for AMPCO to be more competitive than Five-Star on costs, some of the savings had to come from the number of people or the hours they work. She stated that it is her understanding that as part of the Request for Qualifications (RFQ) process, Staff did not give those competing for this contract the current level of full-time cashiers. Staff responded that they wanted the proposers to provide a presentation of what they believe they need to cover staffing needs of the Airport; they were provided the number of cashier positions, the number of cashier booths, and the business trends so they could determine how to best serve customers; then they were given set standards to meet. Staff explained that the Airport is looking for a customer standard that sets a specific number of minutes a customer has to wait in line and the specific amount of time for a cashier transaction, and that each company proposing has different ways to handle that task. Council Member Chavez asked what methodology is used to determine if customer standards are met. Staff responded that Airport personnel monitor transactions on a daily basis and review quarterly reports with each of the operators, parking and shuttle, to verify that they are meeting the time standards set for them. Council Member Chavez expressed concern about the City not knowing what the level of pay is for employees under the new contract, and asked if current employees who move under the new contract move with their current rate of pay. Staff responded that they will retain their current rate of pay; however, the existing contract with Five-Star and SEIU is set to expire September 30, 2002 and they are in negotiations at the current time. City Attorney Rick Doyle added that under the current retention policy, the new contractor would inherit the contract with SEIU.

Council Member Chavez asked how the timing of the Council’s vote would impact contract negotiations. City Attorney Doyle responded that the Five-Star agreement expires September 7 and AMPCO takes over September 8; Five-Star can enter into an agreement and AMPCO would have to adopt the agreement. Council Member Chavez stated that she met with employees of Five-Star and they expressed concern that they have limited customer service; she asked if the Airport had thoughts to possibly bringing these services in house. She commented that she is interested in incorporating into the process a method for AMPCO to work with their front-line employees regarding job satisfaction and customer service. Staff responded that they have met with cashiers and Five-Star management, and expect to do the same with AMPCO, to ensure that communication lines are open between them, and that policies and customer service issues are addressed regularly and quickly. Council Member Chavez recommended that the final agreement with AMPCO include a way to measure the impact of job satisfaction on customer service.

Council Member Dando noted that twelve vendors attended the pre-proposal conference and only four submitted bids, and asked if Staff had received any feedback on why the others were not interested. Staff responded that some did not have previous airport experience as required, and the current vendor decided not to submit a proposal. Council Member Dando noted that it is a one-year agreement with six one-year options, and asked why not a longer period. Staff responded that because of bond issues set up with the garage, the City is not allowed to go longer than a twelve-month period with a contractor operating that facility. Council Member Dando asked if that could be corrected. City Attorney Doyle explained that Federal tax regulations govern how much private business can occur in a facility that is financed with government bonds. Council Member Dando stated that she believes if this can be changed, it behooves the City to do so; and understands that if this service were provided in house, the City would not fall under these regulations. William Garbett and Guillermo Durgen, SEIU Local 1877, spoke on the issue. Council Member Diquisto moved approval of the Staff recommendation. Council Member Dando seconded the motion. Council Member Chavez asked if she could make an amendment to the motion, to include a mechanism for front-line Staff to monitor customer service and job satisfaction. Council Member Diquisto accepted the amendment. On a call for the question, the motion, as amended, carried unanimously and Resolution No. 71245, 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 AMPCO System Parking for Parking Facilities Management at Norman Y. Mineta San José International Airport”, was adopted, and Staff directed to ensure the terms of the agreement include a mechanism for the City to check with frontline staff regarding job satisfaction and to measure the level of customer service. Vote 11-0-0-0.

PUBLIC SAFETY SERVICES

9.1 (a) (1) Approval of the proposed additions to the 2000-02 Spending Plan for the Local Law Enforcement Block Grant (LLEBG) Fund.

(2) Adoption of the following amendments to the annual appropriation ordinance and the annual funding sources resolution in the Local Law Enforcement Services Fund (Fund 415) for fiscal year 2002-03:

(a) Increase the LLEBG 2000-02 appropriation for the Police Department in the amount of $73,168; and

(b) Increase the Earned Revenue by $73,168.

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

(b) (1) Approval of the proposed 2002-04 Spending Plan for the Local Law Enforcement Block Grant (LLEBG) Fund.

(2) Adoption of the following amendments to the annual appropriation ordinance and the annual funding sources resolution in the General Fund (Fund 001) and Local Law Enforcement Services Block Grant Fund (Fund 415) for fiscal year 2002-03:

(a) Establish the LLEBG 2002-04 appropriation in the Local Law Enforcement Services Fund for the Police Department in the amount of $1,015,000;

(b) Increase the Earned Revenue by $913,500.

(c) Transfer $101,500 from General Fund Contingency Reserve to the Local Law Enforcement Services Block Grant Fund.

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

Documents Filed: (1) Memorandum from Budget Director Larry D. Lisenbee and Chief of Police William M. Lansdowne, dated September 18, 2002, recommending approval of the proposed additions to the 2000-02 Spending Plan for the Local Law Enforcement Block Grant Fund, and adoption of said amendments to the annual appropriation ordinance and annual funding sources resolution in the Local law Enforcement Services Fund. (2) Memorandum from Budget Director Larry D. Lisenbee and Chief of Police William M. Lansdowne, dated September 18, 2002, recommending approval of the proposed 2002-04 Spending Plan for the Local Law Enforcement Block Grant, and adoption of said amendments to the annual appropriation ordinance and annual funding sources resolution in the General Fund and Local Law Enforcement Services Block Grant Fund.

Discussion/Action: Upon motion by Council Member Williams, seconded by Council Member Dando, and unanimously carried, the proposed additions to the 2000-02 Spending Plan for the Local Law Enforcement Block Grant (LLEBG) Fund; and the proposed 2002-04 Spending Plan for the Local Law Enforcement Block Grant (LLEBG) Fund, were approved; Ordinance No. 26752, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 To Appropriate Moneys in the Local Law Enforcement Block Grant Fund for Fiscal Year 2002-03; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”; Resolution No. 71246, 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 Local Law Enforcement Block Grant Fund”; Ordinance No. 26753 entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Moneys in the Local Law Enforcement Block Grant Fund for Fiscal Year 2002-03; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”; and Resolution No. 71247, 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 Local Law Enforcement Block Grant Fund”, were adopted. Vote 11-0-0-0.

6.1 Presentation on the Santa Clara Valley Transportation Authority's "Best Practices" Program for community design and transportation. CEQA: Not a Project.

(Transportation)

Documents Filed: (1) Memorandum from Acting Director of Transportation James R. Helmer, dated October 1, 2002, recommending accepting the presentation on the Santa Clara Valley Transportation Authority’s “Best Practices” program for community design and transportation. (2) Document entitled, “Design for Mobility/Best Practices for Integrating Transportation and Land Use,” by the Santa Clara Valley Transportation Authority . (3) Hard copy of overhead slides used in the Staff presentation.

Discussion/Action: Bruce Augustine, Project Manager for Santa Clara Valley Transpor-tation Authority (VTA), presented an overview of the “Best Practices” Program: Background; Approach; Map of Cores, Corridors, and Station Areas; Program Benefits and Goals; Principles; and Best Practices. In terms of VTA’s and the City’s roles and how this program can influence change in their environment, he highlighted: Influencing Change; San Jose Opportunity Areas; Photo Simulations; Implementing Change; and Next Steps. Council Member Yeager asked how applicable are these plans to existing neighborhoods, and will people be able to see the value in what VTA is proposing. Project Manager Augustine explained that the photo simulation is flexible and projects for neighborhoods would be on a case-by-case basis.

Council Member Yeager stated that it would be helpful to see how VTA will make its presentation, and that people will be interested in seeing how a new station with new development will blend with an existing neighborhood. He stated that he believes people often believe traffic projections are not really accurate and asked how these thoughts can be included in Staff presentations. Project Manager Augustine responded that, initially, there may be impacts that were not anticipated; however, as neighborhoods develop, the impacts will be mitigated or will diminish. Council Member Yeager asked if VTA had a plan for retail strategy in areas where consultants do not believe mixed use will work. Project Manager Augustine responded that there is no formula that can be applied in all areas, so the best strategy would be on a case-by-case basis. Council Member Yeager noted that plans often are not designed with pedestrians in mind, and asked if Staff will be taking this into consideration. Project Manager Augustine responded that Staff would include this in designs.

Referring to the booklet distributed by VTA, Council Member Chavez noted that quality of life, the goal and outcome, is not talked about until later in the book, and suggested that Staff may need to figure out a way to create a vision so people can feel their quality of life in neighborhoods is being improved. She expressed concern that some housing has been built close to transit without designing where people walk or ride bicycles, and asked if Staff could possibly consider retrofitting the older transit hubs to incorporate this as part of the funding. She stated that she believes cost sharing with cities should be considered so cities can provide direction in the planning process, and asked how much is in the fund to apply for planning grants. Project Manager Augustine responded that there is $1.4 million available. Regarding Assembly Bill (AB) 1937, Council Member Chavez asked why there is a need for the Legislature to change the relationship that VTA has as a developer. VTA Staff responded that legislation provides VTA the ability to do transit-oriented development around stations, and AB 1937 gives VTA the ability to buy land beyond the immediate station area under a negotiated procurement, in conjunction with a city, to allow more control over the stationary environment by having it in public ownership.

Council Member Dando commented that she believes it is important when developing specific types of housing, for example, senior housing, that consideration be given to how residents are able to get to light rail. She expressed concern that it would be difficult to convince residents in single-family neighborhoods that light rail would improve their quality of life when the rail line goes through their neighborhoods, and suggested that Staff should be proactive about these kinds of things. She stated that she believes it is important to try and connect Valley Fair and Santana Row, which are two major shopping hubs. She commented that the document is a good beginning, but VTA needs to find real projects to invest in if it is to be a successful document. Referring to the “Influencing Change” portion, Council Member LeZotte asked how Staff would use the Best Practices document to implement change. Project Manager Augustine explained that Staff will ask cities to embrace the program, and the manual would be provided to developers so Best Practices could be included in the planning process. Council Member LeZotte asked if the funding is an incentive for cities and developers to support the program. Project Manager Augustine responded that if a city does not support this program, they would not be eligible to apply for funding sources; cities that do support the program and incorporate Best Practices would compete more effectively. Council Member Cortese stated that his district has CEQA issues that would not allow the type of developments presented, and recommended rather than just getting other cities to ascribe to the Smart Growth Policy, VTA should survey them to determine if they endorse the program and when, how, and where they will begin implementing it in their communities; and how individual city decisions will have a regional impact. Council Member Williams asked what is the projected timeline for the program and what Staff believes is the greatest impediment in getting agreement from everyone. Project Manager Augustine responded that the timeline would happen incrementally; that it is a long-range vision, and education is necessary to make the program a success. Council Member Williams asked how VTA would deal with municipalities and their land use policies in achieving the program’s objectives. Project Manager Augustine responded that ultimately it will be on a city-by-city basis, and that the document discusses conflicts and barriers. Council Member Williams noted that the simulations did not include reference to Coyote Valley and stated he hopes VTA will consider extending transportation to that area for the future. Council Member Reed suggested VTA’s presentation should include where practices have worked in order to promote the plan, particularly in mixed-use areas. By unanimous consent, the presentation on the Santa Clara Valley Transportation Authority’s “Best practices” Program for community design and transportation was accepted. Vote: 11-0-0-0.

JOINT COUNCIL/REDEVELOPMENT AGENCY

The Redevelopment Agency Board was convened at 3:40 p.m. to consider Item 10.1 in a Joint Session.

10.1 Public hearing and approval of actions:

(a) Adoption of a resolution by the City Council approving the sale of city-owned property, located at 2191 Alum Rock Avenue, to Ketzal Community Development Corporation (KETZAL), accepting the 33433 Summary Report and Re-Use Valuation, and finding that the sale of the property will provide housing for low-income persons is consistent with the Implementation Plans for the San José Merged Redevelopment Project Area and that the consideration for the property is not less than the fair reuse value for the proposed use, with the covenants and conditions and development costs authorized by the Disposition and Development Agreement (DDA).

(b) Adoption of a resolution by the City Council and Agency Board approving the DDA between the City of San José, the Redevelopment Agency and KETZAL for the development of a for-sale affordable housing project to be located at the northeast corner of Alum Rock Avenue and Jose Figueres Avenue, authorizing the City Manager and the Executive Director to negotiate and execute amendments to the DDA as may be reasonably required by the Developer’s lender, and as necessary to conclude this transaction consistent with the authority granted herein, and authorizing the City Manager to convey the City owned property to KETZAL once the conditions of conveyance have been met.

CEQA: Negative Declaration, PDC 99-12-096. Council District 5. (Redevelopment Agency/City Manager's Office)

Documents Filed: (1) Memorandum from City Manager Del D. Borgsdorf and Redevelopment Agency Executive Director Susan F. Shick, dated September 18, 2002, recommending adoption of said resolutions. (2) Proof of Publication of Notice of Public Hearing dated September 23 and 30, 2002, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing and there was no testimony from the floor. Upon motion by Council Member Campos, seconded by Council Member Diquisto, and unanimously carried, Resolution No. 71248 entitled: “A Resolution of the Council of the City of San José Approving the Sale of City Owned Property, Located at 2191 Alum Rock Avenue, to Ketzal Community Development Corporation, Accepting the 33433 Summary Report and Re-Use Valuation, and Finding That the Sale of the Property Will Provide Housing for Low Income Persons, is Consistent With the Implementation Plans for the San José Merged Redevelopment Project Area and That the Consideration for the Property is Not Less Than the Fair Reuse Value for the Proposed Use, With the Covenants and Conditions and Development Costs Authorized by the Disposition and Development Agreement”, Resolution No. 71249 entitled: “A Resolution of the Council of the City of San José Approving the Disposition and Development Agreement (DDA) Between the City of San José, The Development Agency and Ketzal Community Development Corporation for the Development of a For-Sale Affordable Housing Project to be Located at the Northeast Corner of Alum Rock Avenue and Jose Figueres Avenue, Authorizing the City Manager to Negotiate and Execute Amendments to the DDA as May Be Reasonably required by the Developer’s Lender, and as Necessary to Conclude This Transaction Consistent With the Authority Granted Herein; and Authorizing the City Manager to Convey the City Owned Property to Ketzal Once the Conditions of Conveyance Have Been Met”, and Redevelopment Agency Resolution No. 5356 were adopted. Vote 11-0-0-0.

The Redevelopment Agency Board was adjourned at 3:42 p.m.

Notice of City Engineer’s Pending Decision on Final Maps

In accordance with Sec. 19.16.140d of the San Jose Municipal Code, this is notice of the City Engineer's pending decision on the following Final Maps:

Tract	Location	Council District	Developer	Lots/ Units	Type	Proposed Decision
9392	SE/c of Stevens Creek and Winchester Blvds	6	Federal Realty Investment Trust	1 lot	Condo Map	Approve
9393	SE/c of Stevens Creek and Winchester Blvds	6	Federal Realty Investment Trust	1 lot	Condo Map	Approve

IN ACCORDANCE WITH SEC. 19.16.140D OF THE SAN JOSE MUNICIPAL CODE, THIS IS NOTICE OF THE CITY ENGINEER'S RECEIPT OF THE FOLLOWING FINAL MAPS FOR REVIEW:

Tract	Location	Council District	Developer	Lots/Units	Type
9415	Silence Drive and Pleasant Knoll Drive	8	Santa Clara Development	12 units	Single Family Detached
9434	W/s Avalani Ave at west terminus of Luby Drive	5	Lam Tung Le	5 units	Single Family Detached
9446	E/s S. 3^rd St., 150 feet northerly of Keyes St.	3	Fairfield Residential LLC	176 units	Multi-Family Attached

Open Forum

Jeannette Law & Katy Chevalier addressed Council on the employment of adults with disabilities; and Gregory Colburn spoke on the loss of jobs and City revenue in San José.

Adjournment

The Council of the City of San José adjourned in memory of José Nava, brother of Jésus Nava, City Manager's Office, husband of Marie Nava, and father to José Nava Jr. and Jessica Marie Nava; in memory of Jerome Christopher Martin, husband of Sonja Martin, Office of Child Care, and father, who dedicated much of his life to mentoring youth and young adults, and promoting the importance of education; and in memory of Mr. Bill “Spiritude” Hoyt Jr. who was a loving husband, father, son and brother.

The Council of the City of San José adjourned at 3:51 p.m. to a joint meeting of the City Council/San José Financing Authority, followed by a joint meeting with the Redevelopment Agency.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN

CITY CLERK