MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, NOVEMBER 19, 2002

The Council of the City of San José convened in regular session at 9:30 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 9:35 a.m. to a Closed Session in Room 600 to confer with Legal Counsel pursuant to Government Code Section 54956.9; under Subsection (c) to discuss pertaining to anticipated litigation pursuant to Subsection (b) of Government Code Section 54956.9, in one matter involving the initiation of litigation; and to confer with Labor Negotiator pursuant to Government Code Section 54957.6, (1) City Negotiator: City Manager Designee Alex Gurza, Employee Organization: Police Officers Association; (2) City Negotiator: City Manager Designee Alex Gurza, Employee Organization: International Organization of Firefighters.

By unanimous consent, Council reconvened from the Closed Session and recessed at 10:55 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

Fourth and Fifth Grade students from the Guadalupe School, in the Union School District, provided a poetic recital, under the direction of Principal Alice Lopez. (District 10)

Pledge of Allegiance

Mayor Gonzales led the Pledge of Allegiance.

Orders of the Day

Upon motion by Council Member Council Member Reed, seconded by Council Member Chavez, and unanimously carried, Items 11.2 and 11.8 were continued to December 3, 2002, 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 December 1, 2002, as World AIDS Day in San José. (Parks, Recreation and Neighborhood Services/Disability Advisory Commission/LeZotte)

Documents Filed: None.

Discussion/Action: Mayor Gonzales was joined by Council Member LeZotte to proclaim December 1, 2002 as World AIDS Day in San José. Accepting the proclamation from Mayor Gonzales was Karl Vidt, Chair of the Disability Advisory Commission, who thanked the Mayor and City Council for their support.

1.2 Presentation of two plaques by the Midnight Basketball Program, the first to the Mayor and City Council and the second to PRNS and San José BEST, each for their outstanding support and contributions to Midnight Basketball Program over the past seven years. (Williams)

Documents Filed: None.

Discussion/Action: Council Members Williams and Cortese joined Mayor Gonzales to accept plaques by the Midnight Basketball Program, one to the Mayor and City Council and one to Department of Parks, Recreation and Neighborhood Services (PRNS) and the San José BEST Program. Presenting on behalf of Midnight Basketball was Jeff Herd and accepting on behalf of PRNS was Director Sara Hensley and accepting for San José BEST was Neil Ruffino.

1.3 Presentation of a commendation to the San José/Santa Clara Chapter of Midnight Basketball Program for its commitment to making a difference in the lives of the young people in our community. (Williams)

Documents Filed: None.

Discussion/Action: Joining Mayor Gonzales at the podium, Council Members Williams and Cortese presented a commendation to the San José/Santa Clara Chapter of Midnight Basketball Program to Jeff Herd, Larell Arteaga, Conique Chayrez and Sheyna Ludgood, Rohi Alternative Community Outreach. Jeff Herd accepted the commendation and Larell Arteaga presented testimony of how the program had helped her and thanked the Mayor and City Council for her support.

CONSENT CALENDAR

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

2.1 Approval of City Council Minutes for:

(a) Regular meeting of May 14, 2002

(b) Joint Council/Redevelopment Agency Board meeting of May 14, 2002

Documents Filed: Minutes of Regular City Council meeting of May 14, 2002 and Joint Council/Redevelopment Agency Board meeting of May 14, 2002.

Discussion/Action: The minutes were approved. Vote: 11-0-0-0.

2.2 (a) Final adoption of Ordinance No. 26744 amending Chapter 11.48 of Title 11 of the San José Municipal Code to add a College Park Residential Permit Parking Program.

[Deferred from 10/15/02 – Item 2.2(b) and 10/22/02 – Item 2.2(a)]

Documents Filed: (1) Memorandum from City Attorney Richard Doyle, dated November 14, 2002, transmitting a copy of the Proposed Ordinance amending Chapter 11.48 of Title 11 of the San José Municipal Code to add a College Park Residential Permit Parking Program. (2) Supplemental memorandum from Transportation Acting Director Jim Helmer, dated November 14, 2002, providing information requested by the City Council at the October 1, 2002 meeting pertaining to provisions for accommodating the parking needs of Bellarmine Preparatory College and Temple Emanu-El during special events at either of these establishments. (3) Proof of Publication of the title of Ordinance No. 26744, dated October 8, 2002, submitted by the City Clerk.

Discussion/Action: Council Member Dando noted that the community and the school have come to a consensus as to parking in the neighborhood; however, she questioned allowing only six parking exemption days for special events at the school and temple. She asked if additional exemptions could be allowed and what is the process for getting them. Jim Helmer, Acting Director of Transportation, explained that the school and community agreed to six exemptions; and in the event additional exemptions were required, the school or temple should go back to the neighborhood association to open up dialogue again. Council Member Dando asked if the six exemptions are for both the school and temple. Acting Director Helmer responded that there would be six exemptions each for those two agencies and any other church or school that would come forward within that district. Council Member Dando stated that she believes the exemption process is cumbersome and that allowing one event per month for the school would make more sense rather than having to go through the appeal process at a later time. Acting Director Helmer explained that only a small portion of the neighborhood has been set aside for permit parking, and the agreement for six exemptions was in collaboration with the school, the temple and the neighborhood; and the permit program was designed to allow for available parking on weekends and evenings on many streets. Council Member Dando requested that Staff monitor the program for the remainder of the school year and report back to Council with an evaluation of how it worked for school and church programs, as well as for the neighborhood. Regarding pedestrian safety crossing The Alameda, she asked if Staff had look at this. Acting Director Helmer responded that a committee is working with CalTrans and three neighborhood associations to address this issue, and that in addition to enhanced crosswalks there are future plans for physical improvements. He explained that Staff did design the size of the parking permit zone to avoid the need for students to cross The Alameda, Hedding or Taylor. Council Member Yeager stated that he believes the six exemptions are adequate and that a report would be provided to the Council six months from when the program is implemented. Ordinance No. 26744 was adopted, and Staff was directed to monitor the program for the remainder of the school year, relative specifically to the school’s need for exemptions, and report back to Council with a six-month analysis of the effectiveness of the program. Vote: 11-0-0-0.

(b) Final adoption of Ordinance No. 26769, granting a Commercial Solid Waste and Recyclables Collection Franchise to A & A Recycling.

Documents Filed: Proof of Publication of the title of Ordinance No. 26769, dated November 12, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26769 was adopted. Vote: 11-0-0-0.

2.3 Report on bids and award of contract for the Columbus Park Irrigation Renovation Project to the low bidder, DB Landscape, to include the base bid and Add Alternate No. 1 in the amount of $116,300, and approval of a contingency in the amount of $12,000. CEQA: Exempt, PP02-03-034. Council District 3. (Public Works)

(Deferred from 11/5/02 – Item 2.7)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated October 16, 2002, recommending award of said contract, with related contingency, to the low bidder, DB Landscape.

Discussion/Action: Council Member Chavez stated that Columbus Park is really a regional park and she wants Council and Staff to be mindful of the use of parks to see what funding stream is used for irrigation or any other changes. She expressed concern that the money allocated for this project could have been used to leverage more open space opportunities in the neighborhood that does not have any; but now there will be limited ability to be flexible with the funds. She explained that Columbus Park used to be a neighborhood park, but the neighborhood was cleared for Federal Aviation Administration use. She asked that as Staff looks at improvements to Guadalupe Park and Gardens, they should look at incorporating Columbus Park as part of that. Sara Hensley, Director of Parks, Recreation and Neighborhood Services (PRNS), responded that Staff will look at this again, and that for future parks, will consider all types of funding. She explained that Construction and Conveyance money had been allocated for this `project for some time, and Staff had looked at the PRNS budget to see if there was any opportunity for alternative funding; however, no City-wide funds were identified. The award of said contract, with related contingency, to DB Landscape, the low bidder, was approved and its execution authorized, and Staff was directed to review alternative funding opportunities for regional parks such as Columbus Park, and consider the implications of future improvements pursuant to implementation of the Guadalupe River Park and Gardens Master Plan. Vote: 11-0-0-0.

2.4 (a) Adoption of the following appropriation ordinance and funding sources resolution amendments in the following funds:

(1) Services for Redevelopment Capital Projects fund:

(a) Establish an appropriation to the Department of Public Works for the Children’s Discovery Museum Capital Improvement Project in the amount of $14,700.

(b) Establish an appropriation to the Department of Transpor-tation for the San Pedro Square Street Tree Lighting Upgrade Project in the amount of $4,900.

(c) Increase the estimate for Earned Revenue by $19,600.

(2) Home Investment Partnership Program Fund:

(a) Establish an appropriation to the Department of Housing for the Exterior Grants for the Hensley Historic District Project in the amount of $1,000,000.

(b) Increase the estimate for Earned Revenue by $1,000,000.

(b) Adoption of a resolution making certain determinations regarding the related expenditures of Redevelopment Agency funds on certain public improvements in connection with the Children’s Discovery Museum Capital Improvement Project, as more specifically described in the memorandum from the Redevelopment Agency dated September 24, 2002.

(c) Adoption of a resolution making certain determinations regarding the related expenditures of Redevelopment Agency funds on certain public improvements in connection with the Thirteenth Street Streetscape Project, the Barberry Lane Sidewalk project, and the Replacement of Play Equipment at Washington Elementary School project, as approved by Council and more specifically described in the memoranda from the Redevelopment Agency that were attached to the October 8, 2002 Council Agenda Item 2.3.

CEQA: Exempt, PP02-10-310. Council District 3. (City Manager’s Office)

Documents Filed: Memorandum from Budget Director Larry D. Lisenbee, dated October 30, 2002, recommending (1) adoption of said Appropriation Ordinance and Funding Sources Resolution amendments in the Services for Redevelopment Capital Projects fund and the Home Investment Partnership program fund; (2) adoption of said resolution making certain determinations regarding the related expenditures of Redevelopment Agency funds on certain public improvements in connection with the Children’s Discovery Museum Capital Improvement Project; and (3) adoption of said resolution making certain determinations regarding the related expenditures of Redevelopment Agency funds on certain public improvements in connection with the thirteenth Street Streetscape project, the Barberry Lane Sidewalk project and the Replacement of Play Equipment at Washington Elementary School project.

Discussion/Action: Dennis Umphress spoke on the item. Ordinance No. 26775, 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 Children’s Discovery Museum Capital Improvement and the San Pedro Square Street Lighting Projects and to Appropriate Moneys in the Home Investment Partnership Program Fund for the Hensley Historic District Project; and Providing that this Ordinance Shall Become Effective Immediately Upon Adoption”; Resolution No. 71297, 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 Services for Redevelopment Capital Projects Fund and the Home Investment Partnership Program Fund”; Resolution No. 71298, entitled: “A Resolution of the Council of the City of San José Making Certain Determinations Regarding the Expenditure of Redevelop-ment Agency Funds for Certain Public Improvements in the Guadalupe-Auzerais Redevelopment Project Area”; and Resolution No. 71299, entitled: “A Resolution of the Council of the City of San José Making Certain Determinations Regarding the Expenditure of Redevelopment Agency Funds for Certain Public Improvements in the 13^th Street SNI, Washington SNI, and West Evergreen SNI Redevelopment Project Areas”, were adopted. Vote: 11-0-0-0.

2.5 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2002-2003 14, 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 October 30, 2002, recommending approval of said open purchase orders.

Discussion/Action: The award of open purchase orders List 14 was approved and the Director of General Services was authorized to execute the purchase orders. Vote: 11-0-0-0.

2.6 Adoption of a resolution determining that public use and necessity requires the acquisition of a portion of a certain property owned by Charles Frank Perrotta and the successors to Frank and Virginia Perrotta, Trustees of the Frank and Virginia Perrotta 1988 Family Trust, located at 33 Lewis Road, and directing the filing of eminent domain action. CEQA: Exempt, PP 02-11-322. Council District 7. Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated October 30, 2002, recommending adoption of said resolution.

Discussion/Action: This item was dropped from the agenda.

2.7 Adoption of a resolution authorizing the City Manager to accept a donation of a 1,319 square foot portion of a property at the northeast corner of King Road and Barberry Lane owned by the Santa Clara Valley Water District. CEQA: Exempt, PP 02-11-323. Council District 8. SNI: West Evergreen. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated October 30, 2002, recommending adoption of said resolution.

Discussion/Action: Resolution No. 71300, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Accept a Donation of Property to the City of San José from the Santa Clara Valley Water District”, was adopted. Vote: 11-0-0-0.

2.8 Report on bids and award of contract for the Leininger Trailer Installation Project to the low bidder, ESR Construction, in the amount of $228,100, and approval of a contingency in the amount of $11,405. CEQA: Exempt, PP02-05-097. (Public Works)

Documents Filed: Memoranda from Director of Public Works Katy Allen, dated October 30 and November 14, 2002, recommending award of said contract, with related contingency, to the low bidder, ESR Construction.

Discussion/Action: Dennis Umphress spoke on the item. The award of said contract, with related contingency, to ESR Construction, the low bidder, was approved and its execution authorized. Vote: 11-0-0-0.

2.9 Approval of a five-year property use agreement with one five-year option, with Cingular Wireless, allowing for construction, installation, maintenance, and operation of a telecommunications facility at the San José Municipal Golf Course, and the approval of a Right of Entry/Revenue Sharing agreement with Cingular Wireless and Mike Rawister Golf Shop for the equal sharing of the revenue generated by this installation between the City and Rawister Golf. CEQA: Exempt, CP02-024. Council District 4. (Public Works)

(Rules Committee referral 11/13/02)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated November 12, 2002, recommending approval of said five-year property use agreement with one five-year option, with Cingular Wireless.

Discussion/Action: Dennis Umphress and William Garbett spoke on the item. The property use agreement with Cingular Wireless and the Right of Entry/Revenue Sharing agreement with Cingular Wireless and Mike Rawister Golf Shop were approved and their execution authorized. Vote: 11-0-0-0.

END OF CONSENT CALENDAR

STRATEGIC SUPPORT SERVICES

3.1 Report of the Study Session – May 13, 2002 and May 15, 2002

Mayor Gonzales, Chair

Documents Filed: Minutes of the FY 2002-2003 Capital and 2003-2007 CIP Budget sessions of May 13, 2002 and May 15, 2002.

(a) FY 2002-2003 Capital and 2003-2007 CIP Budget session of May 13, 2002. Attachment: (1) Agenda of the City Council Study Session on Proposed 2002-03 Capital Budget for Monday, May 13, 2001. (2) Memorandum from City Manager Del D. Borgsdorf dated May 1, 2001, filed in the binder of the Proposed 2002-2003 Capital Budget and the proposed 2003-2007 Capital Improvement Program, which was distributed to the City Council. (3) Memorandum from the Planning Commission dated May 10, 2002, recommending Council adopt the proposed 2003-2007 Capital Improvement Program (CIP). (4) Hard copies of Staff presentations on City Service Areas of Aviation Services, Economic and Neighborhood Development, Public Safety, and Recreation and Cultural Services.

(b) FY 2002-2003 Capital and 2003-2007 CIP Budget session of May 15, 2002. Attachment: Hard copies of the staff slide presentations on the Transportation Services CSA for Parking and Traffic CIP, Environmental and Utility Services; and Strategic Support involving Finance and Technology.

Discussion/Action: Upon motion by Council Member Dando, seconded by Council Member Chavez, and unanimously carried, the minutes of the May 13 and May 15, 2002, Budget Study Session, were approved. Vote: 11-0-0-0.

3.2 Report of the Rules Committee – November 6, 2002

Vice Mayor Shirakawa, Jr., Chair

Documents Filed: Rules Committee Report of November 6, 2002.

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

(b) City Council

(1) Review November 19, 2002 Draft Agenda

The Committee decided to discuss a request from Council Member Reed under Rules Committee Item G in conjunction with a memo on the same subject from the Mayor and two Council Members. The Committee recommended approval of the November 19, 2002 City Council Agenda.

(2) Add New Items to November 12, 2002 Amended Agenda

The Committee recommended six additions to the November 12, 2002 Council Agenda.

(c) City Council Committees

(1) Amendments to Council Committee Agendas

(a) Finance and Infrastructure Committee

At the request of Chair Pro Tempore Dando, the Committee recommended an addition to the November 13, 2002 Finance and Infrastructure Committee agenda entitled, Presentation from the San José Fire Museum.

(b) Economic Development and Environment Committee - None filed.

(c) Education, Neighborhoods, Youth, and Seniors Committee - None filed.

(d) Meeting Schedules - There were none.

(e) The Public Record. Attachment: Memorandum from City Clerk Patricia L. O’Hearn dated October 31, 2002 listing the items transmitted to the Adminis-tration for the period October 23-29, 2002.

The Committee noted and filed the Public Record.

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

(g) Council Referrals for Assignment to Appropriate Committee, Administration, or Council Appointee. Attachment: Memorandum from Council Member Reed dated October 23, 2002 requesting addition of an item to be heard jointly the evening of November 19, 2002 by the Council and Redevelopment Agency to amend the rules for the conduct of City Council and Redevelopment Agency Board meetings to require staff reports be delivered to Council and the public by 5:00 p.m. Thursday before the matter is to be heard; and a memorandum from Mayor

3.2 Report of the Rules Committee – November 6, 2002

Vice Mayor Shirakawa, Jr., Chair

(g) Council Referrals for Assignment to Appropriate Committee, Administration, or Council Appointee. (Cont’d.)

Gonzales and Council Members Chavez and Cortese dated November 4, 2002 recommending that the Rules Committee direct the Administration, City Attorney, Redevelopment Agency, and City Clerk to develop guidelines, timelines, and procedures for the distribution of memos and reports to the City Council, Redevelopment Board, and standing committees by January 2003.

The Committee directed the Administration, City Attorney, Redevelopment Agency, and City Clerk to develop guidelines, timelines, and procedures for the distribution of memos and reports to the City Council, Redevelopment Agency, and standing committees by January 2003.

Discussion/Action: Council referred the memorandum from Council Member Reed dated November 15, 2002—requesting that a requirement for Staff reports to be delivered by the Thursday before a City Council meeting be placed on the agenda for December 3, 2002—to the Administration for review and report on December 10, 2002, with the Administration’s report on the request by Mayor Gonzales and Council Members Chavez and Cortese dated November 4, 2002, for Staff to develop guidelines, timelines, and procedures for the distribution of memos and reports to the City Council, Redevelopment Agency, and standing committees.

(h) Administrative Reviews and Approval - There were none.

(i) Oral communications - None presented.

(j) Adjournment - The meeting was adjourned at 2:10 p.m.

Discussion/Action: Council Member Dando reported that there were two memoranda to the Rules Committee discussing the guidelines, timeline and procedures for distribution of memoranda to the City Council, Redevelopment Board and the various committees – one from Mayor Gonzales and Council Members Chavez and Cortese, and one from Council Member Reed. She explained that the Rules Committee forwarded the request to the Administration for a report back to Council on December 10 with their recommendation. Council Member Reed noted that the Committee minutes reflect Staff coming back by January. Council Member Dando explained that the City Manager projected Staff would be able to complete their analysis by December 10. The following individuals spoke on the item: Richard De La Rosa, Dennis Umphress, and Lorraine Wallace. Council Member Reed asked for clarification of what Staff is intending to do on December 10. City Manager Del Borgsdorf explained that Staff will come back with an outline of what, if any, issues are involved with the process of changing dates or delivery times, as well as Staff’s recommendation. Council Member stated that he wants to be

3.2 Report of the Rules Committee – November 6, 2002

Vice Mayor Shirakawa, Jr., Chair

able to take action on December 10. Council Member Chavez commented that there are existing benchmarks, and Council needs to know the process; and whatever benchmark is changed, it also needs to be changed for committee meetings. City Manager Borgsdorf stated that on December 10, Council could review the process to decide if parts or all of the process need more time sensitivity. Council Member Cortese explained that there was a great deal of discussion at Rules Committee about having a more elaborate system, where a work product is submitted by a certain time, as various needs merit, depending on the level of scrutiny the City Council may need. He indicated that Staff needs to put together a system to remind Rules Committee to make that recommendation. Mayor Gonzales commented that the agenda process is a complicated, and his concern is balancing the guidelines for informing the public about what Council will be doing at meetings, but making sure the process does not get in the way of doing business for the people of San José. Upon motion by Council Member Dando, seconded by Council Member Chavez, and unanimously carried, Rules Committee report and actions of November 6, 2002, accepted, with Staff directed to report back on Item 3.2(g) on December 10, 2002. Vote: 11-0-0-0.

3.4 (a) (1) Appoint an ad hoc Council Committee of two or three Council Members to be tasked with meeting with a similar committee from the Santa Clara Valley Water District.

(2) Direct Administration to seek scheduling a joint meeting with a committee of Board Members from the Santa Clara Valley Water District during the month of October to discuss all policy issues relating to trails that have not been resolved by the two staffs, and come up with joint recommendations for action for the Council and the Board.

[Rules Committee referral 10/9/02 – Item 3.2(h)(1)]

(Deferred from 10/15/02 – Item 3.6 and 10/29/02 – Item 3.4)

(b) (1) Approve the report on the status of negotiations with the Santa Clara Valley Water District;

(2) Direct staff to present for approval a list of the proposed Collaborative Action Plan and Agreement (CAP) for the development and operation of joint trail-related projects at its December 3, 2002 Council meeting; and

(3) Direct staff to continue negotiations with the District to prepare a final agreement to be executed on January 22, 2003 at the annual joint meeting between the City Council and the Water District Board.

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

[Rules Committee referral 10/9/02 – Item 3.2(h)(1)]

(Deferred from 10/15/02 – Item 3.6 and 10/29/02 – Item 3.4)

Documents Filed: Memorandum from Parks, Recreation and Neighborhood Services Director Sara L. Hensley, dated November 15, 2002, recommending: (1) approval of said report on the status of negotiations with the Santa Clara Valley Water District; (2) direction to staff to present for approval a list of the proposed Collaborative Action Plan and Agreement (CAP) for the development and operation of joint trail-related projects at its December 3, 2002 Council meeting; and (3) direction to staff to continue negotiations with the District to prepare a final agreement to be executed on January 22, 2003 at the annual joint meeting between the City Council and the Water District Board.

Discussion/Action: Sara Hensley, Director of Parks, Recreation and Neighborhood Services, provided an update on the negotiations with the Water District, and indicated Staff has resolved 99.9% of the issues involved. She explained that the one final issue has been agreed upon; however, the Water District wants to take some more time to look at the issue to be sure that when there is third party funding, i.e., grants, the City has a length of time (25 years) so the community has access and use of the trail and there will not be an opportunity for someone or another project to come in and take it out. She indicated that there would be a final presentation on December 3, 2002. Upon motion by Council Member Chavez, seconded by Council Member Dando, and unanimously carried, Item 3.4(a) was dropped, Item 3.4(b) was approved, the Status Report was accepted, and Staff directed to present for approval a list of the proposed Collaborative Action Plan and Agreement (CAP) for the development and operation of joint trail-related projects at its December 3, 2002 Council meeting; and to continue negotiations with the District to prepare a final agreement to be executed on January 22, 2003 at the annual joint meeting between the City Council and the Water District Board. Vote: 11-0-0-0.

3.5 Appointment of members to the Joint Council/Water District Ad Hoc Subcommittee on Trails. (Mayor)

(Deferred from 10/15/02 – Item 3.7 and 10/29/02 – Item 3.5)

Documents Filed: None.

Discussion/Action: This item was dropped from the agenda.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.1 Report of the Economic Development & Environment Committee – November 4, 2002 Council Member Williams, Chair

Documents Filed: Economic Development & Environment Committee Report of November 4, 2002.

(a) First Quarter Redevelopment Housing Report. Attachment: Memorandum from Redevelopment Agency Executive Director Susan F. Shick, dated October 16, 2002, transmitting said report.

4.1 Report of the Economic Development & Environment Committee – November 4, 2002 (Cont’d.) Council Member Williams, Chair

(b) Annual Report on the Parkland Dedication and Park Impact Ordinances. Attachment: Memorandum from Parks, Recreation and Neighborhood Services Director Sara L. Hensley, dated October 18, 2002, transmitting said report.

(c) Quarterly Report on the Affordable Housing Production. Attachment: Memorandum from Housing Director Leslye Corsiglia, dated October 18, 2002, transmitting said report.

(d) Quarterly Status Report on Housing Production Team Action Items. Attachment: Memorandum from Housing Director Leslye Corsiglia, dated October 18, 2002, transmitting said report.

(e) Quarterly Report on Housing Rehabilitation Program. Attachment: Memorandum from Housing Director Leslye Corsiglia, dated October 17, 2002, transmitting said report.

(f) First Quarter Report on the Housing and Homeless Fund. Attachment: Memorandum from Housing Director Leslye Corsiglia, dated October 18, 2002, transmitting said report.

(g) Quarterly Report Detailing Activity in the Housing Department’s Rental Dispute Program. Attachment: Memorandum from Housing Director Leslye Corsiglia, dated October 18, 2002, transmitting said report.

(h) Workforce Investment Act Program First Quarter Report FY 2002-03. Attachment: Memorandum from Economic Development Director Paul Krutko, dated October 18, 2002, transmitting said report.

The Committee accepted Staff Reports for Items (a) through (h)

(i) Street Tree Pruning and Replacement Process

The Committee accepted deferral of Staff’s report until the December 2, 2002 meeting.

(j) Oral petitions

Phyllis Ward, Affordable Housing Network, spoke on 4.1(d) regarding granny units.

(k) Adjournment - The Committee adjourned at 3:25 p.m.

4.1 Report of the Economic Development & Environment Committee – November 4, 2002 (Cont’d.) Council Member Williams, Chair

Discussion/Action: Council Member Williams noted that as the Council looks at the target of 6,000 units of affordable housing in 2004, if the City includes rehabilitated units, the target would be exceeded. He added that the City is only allowed to use 8% of the 20% funding for senior housing, something he wanted the Council to be aware of as it looks at population distribution. Council Member Chavez recommended a Study Session be scheduled to discuss Park Dedication (PDO) Fees and the options as noted in Item 4.1(2) of the Committee Report, and that it would also be important to know how the PDO Fees can be used to leverage other funding, such as Community Development Block Grant or other State funds. Upon motion by Council Member Williams, seconded by Council Member Chavez, and unanimously carried, the Economic Development & Environment Committee report and actions of November 4, 2002, were accepted, and Staff was directed that should a Study Session be scheduled to discuss Park Dedication (PDO) Fees and options as noted in Item 4.1(2) of the Committee Report, that Staff review and report at said Study Session on how the PDO fees can be used to leverage other funding sources, such as Community Development Block Grant or other State funds. Vote: 11-0-0-0.

4.2 Adoption of a resolution approving the proposed update to the City Council Land Use Policy for Wireless Communications Facilities. CEQA: General Plan 2020 Resolution No. 65459. (Planning, Building and Code Enforcement)

[Economic Development and Environment Committee referral 10/7/02 – Item 4.1(c)]

(Deferred from 10/22/02 – Item 4.2 and 11/5/02 – Item 4.3)

Documents Filed: (1) Supplemental memorandum from Planning, Building & Code Enforcement Director Stephen M. Haase, dated October 28, 2002, transmitting the revised version of the proposed update to the Land Use Policy for Wireless Communication Facilities, and stating that the Policy document text has been revised to incorporate several of the minor text additions requested by a wireless industry representative, Crown & Castle. (2) Memorandum from Planning, Building & Code Enforcement Director Stephen M. Haase, dated October 11, 2002, transmitting the revised version of the proposed update to the Land Use Policy for Wireless Communi-cation Facilities, and stating that the Policy document text has been revised to reflect the recommendations of the Economic Development and Environmental Committee and to include minor text clarifications prepared by Planning Staff after review of the policy with the Planning Commission, and transmitting correspondence commenting on the Policy, dated October 9, 2002, from Jonathan Dohm representing Crown & Castle. (3) Memorandum from Planning Commission Secretary Stephen M. Haase, dated October 11, 2002, transmitting the Planning Commission recommendation for approval of the proposed update to the City Council Land Use Policy for Wireless Communications Facilities. (4) Memorandum from Senior Executive Analyst Nadine Nader, dated October 10, 2002, transmitting a copy of the Staff report dated September 20, 2002, by Planning, Building and Code Enforcement Director Stephen M. Haase, and presented to the Economic Development and Environmental Committee on October 7, 2002, recom-mending updates to the Land Use Policy for Wireless Communication Facilities and reporting that the Committee accepted the Staff report. (5) Correspondence from Crown & Castle, dated October 18, 2002, requesting City Council not take action on the proposed new Land Use Policy for Wireless Communications Facilities (the “Policy”) and instead refer the matter back to staff and the Planning Commission for additional discussion. (6) Correspondence from Daniel F. Reidy, attorney for Crown Castle USA, dated October 18, 2002, registering serious concerns and objections regarding the proposed Update to the City Council Land Use policy for Wireless Communications Facilities scheduled for City Council review and action on October 22, 2002.

Discussion/Action: This item was dropped from the agenda.

4.3 Adoption of a resolution:

(a) Authorizing the Director of Housing to negotiate and execute an agreement for the purchase of a 9.17-acre parcel located on the east side of Flickinger Avenue south of Hostetter Road, for $17,635,000, from the Berryessa Union School District for the development of affordable housing.

(b) Authorizing the City Manager to enter into an option agreement with SummerHill Homes for the purchase of a portion of the property for development of a for-sale housing project.

(c) Findings that the use of redevelopment funds for the purchase of the property is of benefit to the Redevelopment Project Areas in San José.

CEQA: Exempt, PP02-10-314. Council District 4. (Housing)

Documents Filed: Memorandum from Housing Director Leslye Corsiglia, dated October 30, 2002, recommending adoption of said resolution: (a) authorizing the Director of Housing to negotiate and execute an agreement for the purchase of a 9.17 acre parcel from the Berryessa Union School District, (b) authorizing the City Manager to enter into an option agreement with SummerHill Homes, and (c) findings that the use of redevelopment funds for the purchase of the property is of benefit to the Redevelopment Project Areas in San José.

Discussion/Action: This item was dropped from the agenda.

4.4 Adoption of a resolution approving a predevelopment loan of up to $2,404,750 to Cinnabar Commons, a California Limited Partnership, or an affiliated entity, for the development of the 245-unit Cinnabar Commons family rental development located at the westerly side of Stockton Avenue between Cinnabar Street and Lenzen Avenue. CEQA: Resolution No. 71174, PDCSH 01-03-038. Council District 6. (Housing)

Documents Filed: Memorandum from Housing Director Leslye Corsiglia, dated October 30, 2002, recommending adoption of said resolution approving a predevelopment loan to Cinnabar Commons for the development of the 245-unit Cinnabar Commons family rental development.

Discussion/Action: William Garbett and Dennis Umphress spoke on the item. Council Member Dando asked if Staff had a plan for relocation of existing tenants. Leslye Corsiglia, Director of Housing, responded Staff is preparing a relocation plan for existing tenants and will be following redevelopment law as far as what is required. She indicated that Staff would follow up and report back to Council. Upon motion by Council Member Yeager, seconded by Council Member Chavez, and unanimously carried, Resolution No. 71301, entitled: “A Resolution of the Council of the City of San José (i) Approving up to $2,404,750 for a Predevelopment Loan to Cinnabar Commons, L.P., or Their Affiliate Entity for the Development of a 245 Unit Rental Housing Project, and (ii) Authorizing the Director of Housing to Negotiate and Execute all Necessary Documents Evidencing such Loans on Behalf of the City”, was adopted, and Staff was directed to report back to City Council with a relocation plan for existing tenants. Vote: 10-0-1-0. Absent: Shirakawa, Jr.

4.5 Adoption of a resolution:

(a) Approving a conditional grant in an amount not to exceed $382,500 to Housing for Independent People (HIP) for the acquisition, rehabilitation, and permanent financing of a six-unit building located at 1059 Roewill Drive, to be made affordable to extremely low-income households; and

(b) Finding that the use of 20% Housing Funds for the project is of benefit to the Redevelopment Project Areas in San José.

CEQA: Exempt, PP 02-10-305. Council District 1. SNI: Blackford. (Housing)

Documents Filed: Memorandum from Housing Director Leslye Corsiglia, dated October 30, 2002, recommending adoption of said resolution approving a conditional grant to Housing for Independent People, and finding that the use of 20% Housing Funds for the project is of benefit to the Redevelopment Project Areas in San José.

Discussion/Action: Dennis Umphress spoke on the item. Council Member LeZotte requested additional information on Housing for Independent People (HIP), given their financial problems and their ongoing obligation regarding maintenance of the property. She expressed concern about the organization’s financial difficulty and their ability not to add to problems in the neighborhood. Leslye Corsiglia, Director of Housing, explained that HIP suffered some financial difficulty some years ago and is working with the Federal government and the City to reorganize itself; and it is focusing on a small program rather than numerous properties. She indicated that Staff feels comfortable the program is back in order, and that this is an acquisition of an existing structure with no change in the program. She added that the City constantly monitors the program and unlike market rate housing, the City is an active participant in making sure that the property is kept up. She stated that she believes there will be improvements to the property. Upon motion by Council Member LeZotte, seconded by Council Member Chavez, and unanimously carried, Resolution No. 71302, entitled: “A Resolution of the Council of the City of San José (i) Approving a $382,500 Conditional Grant to Housing for Independent People for the Acquisition and Rehabilitation of a Six-Unit Apartment Building Located at 1059 Roewill Drive; (ii) Finding That the Use of 20% Housing

Funds is of Benefit to the Redevelopment Project Areas in the City of San José; and (iii) Authorizing the Director of Housing to Negotiate and Execute all Necessary Documents on Behalf of the City”, was adopted. Vote: 10-0-1-0. Absent: Shirakawa, Jr. Vote: 11-0-0-0.

4.6 Adoption of a resolution approving the following grants from the Mayor’s Homeless Families and Children’s Initiative Fund and authorizing the Director of Housing to negotiate and execute agreements with the grant recipients:

(a) Up to $30,000 to the Homeless Care Force to increase the amount of food gathered, prepared, and served by its program.

(b) Up to $9,000 to St. Vincent de Paul Society to increase the amount of hotel/motel vouchers for the Homeless Families Housing Assistance Program.

(c) Up to $30,000 to Sacred Heart Community Services to provide rental assistance for the Housing Assistance Program.

(d) Up to $25,000 to the Community Technology Alliance/Housing for Independent People to expand the HousingSCC website, an innovative and unique searchable database of subsidized housing in San José and Santa Clara County.

(e) Up to $20,000 to Loaves & Fishes Family Kitchen to expand the hours of the Community Resource Specialist and for the purchase of food for its program.

(f) Up to $5,000 to the Community Technology Alliance to expand the HelpSCC website, an innovative and unique searchable database of all the health and human services in Santa Clara and Santa Cruz Counties.

(g) Up to $20,000 to the Next Door Solutions to Domestic Violence for personnel for its Shelter Next Door.

(h) Up to $30,000 to Bill Wilson Center for personnel for the downtown Drop-In Center.

(i) Up to $31,000 to Concern for the Poor to provide a variety of services for its Moving Home Program.

(j) Up to $25,000 to InnVision for personnel to implement a new pilot program to assist 15 homeless families in becoming self-sufficient.

(k) Up to $25,000 to Catholic Charities for partial funding to implement a new program designed to assist 15 homeless families in becoming self-sufficient.

(l) Up to $25,000 to the San José Cathedral Foundation to provide assistance to homeless families and children in moving out of homelessness to independent living.

(m) Up to $25,000 to Unity Care for personnel for its Transitional Housing Program for homeless young adults aged 18-24.

CEQA: Not a Project. (Housing)

Documents Filed: Memorandum from Housing Director Leslye Corsiglia, dated October 30, 2002, recommending adoption of a resolution approving said grants from the Mayor’s Homeless Families and Children’s Initiative fund and authorizing the Director of Housing to negotiate and execute agreements with the grant recipients.

Discussion/Action: Dennis Umphress and Amari Romero Vorwepp spoke on the item. Council Member Williams requested Staff develop a plan for improving the homelessness situation in San Jose and bring it back to Council. Council Member Chavez asked when this report would be coming back to Council. Leslye Corsiglia, Director of Housing, responded that Staff would present the report in early 2003. Council Member Chavez indicated that work is being done at the federal level in terms of assisted living to make sure that once people get assistance, they do not come back into the program; and there have been some debates about the best mechanism of housing to use on that. She added that she hopes when the report comes back to Council that some of that discussion can be shared with the Council.

Upon motion by Council Member Williams, seconded by Council Member Chavez, and unanimously carried, Resolution No. 71303, entitled: “A Resolution of the Council of the City of San José (i) Approving Grants to Homeless Care Force, St. Vincent De Paul Society, Sacred Heart Community Services, Community Technology Alliance/Housing for Independent People, Loaves & Fishes Family Kitchen, Community Technology Alliance, Next Door Solutions to Domestic Violence, Bill Wilson Center, Concern for the Poor, InnVision, Catholic Charities, San José Cathedral Foundation and Unity Care (ii) Authorizing the Acting Director of Housing to Negotiate and Enter into Grant Agreements with these Organizations”, was adopted, and Staff was directed to include in the Housing Departments’ pending report on homelessness scheduled for early 2003, the discussions being conducted at the federal level relative to the best strategies and housing programs for addressing the homelessness issue. Vote: 9-0-2-0. Absent: LeZotte, Shirakawa, Jr. Vote: 11-0-0-0.

4.7 Approval of an amendment to the purchase agreement approved by Council on October 8, 2002, to extend the escrow period 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 City Clerk to execute additional documents necessary to complete the transaction. CEQA: Exempt, PP01-04-088. Council District 3. SNI: Washington. (Public Works)

(Rules Committee referral 11/13/02)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated November 12, 2002, recommending approval of an amendment to said purchase agreement approved by Council on October 8, 2002, to extend the escrow period with Valentino S. Mazzurca, and authorization for the City Clerk to execute additional documents necessary to complete the transaction.

Discussion/Action: Upon motion by Council Member Chavez, seconded by Council Member Diquisto, and unanimously carried, the amendment to the purchase agreement to extend the escrow period with Valentino S. Mazzurca for the purchase of property located at the easterly corner of Floyd and Locust Streets was approved, and the City Clerk authorized to execute additional documents necessary to complete the transaction. Vote: 11-0-0-0.

RECREATION & CULTURAL SERVICES

5.2 Approval to continue the discount parking rate program for seniors, veterans, and persons with disabilities at four regional parks for one additional year. CEQA: Not a project. (Parks, Recreation and Neighborhood Services)

Documents Filed: Memorandum from Parks, Recreation and Neighborhood Services Director Sara L. Hensley, dated October 30, 2002, recommending approval to continue the discount parking rate program for seniors, veterans, and persons with disabilities at four regional parks.

Discussion/Action: Ernest Glave and Ronald Schwartz spoke on the item. Council Member Reed requested that when the item comes back to Council, Staff include information on what the State and Federal Government is doing and how it could impact the program. Upon motion by Council Member Chavez, seconded by Council Member Dando, and unanimously carried, the continuance of the discount parking rate program for seniors, veterans, and persons with disabilities at four regional parks for one additional year was approved, and Staff directed include in the Staff report to Council, information on actions at the State and Federal Government levels which could impact this program.. Vote: 11-0-0-0.

5.3 Adoption of a resolution authorizing the City Manager to negotiate and execute an amendment to the “Operation and Maintenance Agreement between the City of San José and the Mexican Heritage Corporation for the Mexican Heritage Plaza” granting the Director of Conventions, Arts and Entertainment authority to:

(a) Make an advance payment equal to $178,443.75 that comprises five months of operation and maintenance support and a final payment for this fiscal year on January 3, 2003, for two months support in the amount of $71,377.50;

(b) Defer for two years the requirement that Mexican Heritage Corporation contribute to a cash flow “Reserve” account, with the obligation commencing June 30, 2002.

CEQA: Not a Project. (Conventions, Arts and Entertainment)

(Rules Committee referral 11/13/02)

Documents Filed: Memorandum from Convention, Arts and Entertainment Director Nancy Johnson, dated November 12, 2002, recommending adoption of said resolution authorizing the City Manager to negotiate and execute an amendment to the “Operation and Maintenance Agreement between the City of San José and the Mexican Heritage Corporation for the Mexican Heritage Plaza.

Discussion/Action: Council Member Reed asked how much money is used for maintenance of building, such as the Mexican Heritage Plaza, Tech Museum, Children’s Discovery Museum, etc. Nancy Johnson, Director of Convention, Arts and Entertain-ment, responded that negotiated operating and maintenance subsidies vary for each institution, ranging from $300,000 per year to $1.3 million per year. Council Member LeZotte asked how Staff is working with the Mexican Heritage Corporation to ensure success of their operation. Staff responded that Staff monitors the progress of the organization, and that the organization has taken actions to bring its budget in line with expected resources for the year. Staff added that the organization has engaged in an extensive strategic planning process and the City is providing assistance in developing the capacity to raise money in the private sector. Council Member LeZotte asked if the facility is used for outside groups. Director Johnson responded that it is included as one of the sites for potential booking for conferences, receptions, etc. Council Member Williams asked what gives Staff confidence that this particular plan will work. Director Johnson explained that without reservation, Staff has confidence that the Mexican Heritage Corporation can deal with its current economic situation and has been attempting to do this over the past year.

Council Member Campos asked if Staff is working with the Mexican Heritage Corporation on a marketing plan and what Staff is doing to reach out to a broader community. Staff responded that the Corporation is making efforts to reach out to the community and garner more rentals, and the City is providing assistance to enhance their capacity to gather contributed income. Regarding major gifts program, Staff indicated that they have arranged for a fundraising consultant to provide pro bono assistance to the Corporation in putting that together. Regarding their marketing plan, Council Member Campos asked how long it will be before the plan is in place. Staff responded that in the next six months, there would be a restructuring of the whole program, with reductions in the budget of 30%. Council Member Cortese stated that there needs to be a lot of assistance with the outreach effort, and that the facility is an asset for the City as well as the East Valley. The following individuals spoke on the item: William Garbett, Rolando Loera, Mariann Tinoco. Upon motion by Council Member Campos, seconded by Council Member Chavez, and unanimously carried, Resolution No. 71304, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a First Amendment to the Agreement with Mexican Heritage Corporation for Operation and Maintenance of the Mexican Heritage Plaza”, was adopted. Vote: 11-0-0-0.

TRANSPORTATION SERVICES

6.1 (a) Adoption of a resolution setting fees for Tow Services Agreements effective April 1, 2003;

(b) Approval of establishment of eight tow zones modified along Police patrol district lines; and,

(c) Approval of the dispatching of tow requests by Police Communications effective April 1, 2003.

CEQA: Not a Project. (Planning, Building and Code Enforcement)

Documents Filed: None.

Discussion/Action: This item was deferred to November 26, 2002.

ENVIRONMENTAL & UTILITY SERVICES

7.1 Report back to Council on the Army Corps of Engineers permitting process.

(Public Works/Parks, Recreation and Neighborhood Services)

(Council referral 10/22/02 – Item 2.10)

Documents Filed: None.

Discussion/Action: This item was dropped from the agenda.

7.2 Adoption of a resolution:

(a) Accepting the easements granted by Coyote Valley Research Park, LLC for the construction of an emergency access road, a sanitary sewer pipeline, and a potable water pipeline for Metcalf Energy Center.

(b) Approving the second amendment to the Cooperation Agreement with Metcalf Energy Center to update the Agreement with respect to the improvements to be constructed within the above easements.

Council District 2. (Public Works)

(Rules Committee referral 11/13/02)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated November 13, 2002, recommending (a) acceptance of said easements granted by Coyote Valley Research Park, LLC; and (b) approval of the second amendment to said Cooperation Agreement with Metcalf Energy Center.

Discussion/Action: Darrell Dearborn, Sr. Deputy City Manager, provided additional information to the Staff report: The amendment to the Cooperation Agreement with Metcalf Energy Center would clarify utilities that are subject to the City’s or Calpine’s obligation to construct; the original agreement called for a potable water line to be among the initial utilities built in the emergency access road from Metcalf out to Santa Teresa – the amendment would defer that water line to the second phase of improvements; the amendment also clarifies timing and location of the other utilities, including potable water lines on the eastern side of North Coyote Valley; and clarifies City’s or Calpine’s obligation to construct the improvements. Council Member Williams indicated that another amendment would be coming to Council at a later time regarding the $500,000 open space fund.

Council Member LeZotte expressed concern with the Staff report because it did not provide adequate information about the project, including the location of the easement. Sr. Deputy City Manager Dearborn responded that CVRP has reservations if the easement were to be a public road; however, it is a temporary road and would not provide an undue interference with their development plan. He explained that the amendment includes downsizing a sanitary sewer line that goes in that roadway so when CVRP comes back and constructs a permanent facility, they will not have to tear up and redesign a larger, permanent sanitary sewer facility to serve all of North Coyote Valley. Council Member LeZotte asked if there was a need for an environmental clearance for the temporary road. City Attorney Rick Doyle responded that the City is relying on the California Energy Commission’s determinations on this and believes the requirements contemplated an emergency access road. William Garbett spoke on the item. Upon motion by Council Member Williams, seconded by Council Member Chavez, and unanimously carried, Resolution No. 71305, entitled: “A Resolution of the Council of the City of San José Accepting Easements to be Used for Improvements Related to the Metcalf Energy Center, and Approving the Second Amendment to the Cooperation Agreement with Metcalf Energy Center Relating to These Improvements”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

AVIATION SERVICES

8.1 (a) Hold a TEFRA (Tax Equity and Fiscal Responsibility Act) hearing for the issuance of the City of San José Airport Revenue Refunding Bonds, non-AMT Series 2002A in an amount not to exceed $60,000,000, for the purpose of refunding the City of San José Airport Revenue Bonds, Series of 1992, in the original principal amount of $82,470,000.

(b) Adoption of the Thirteenth Supplemental Resolution of the City Council:

(1) Authorizing the issuance of City of San José Airport Revenue Refunding Bonds, non-AMT Series 2002A (the “2002A Bonds”) and AMT Series 2002B (the “2002B Bonds”) (collectively, the “2002 Refunding Bonds”) in the not-to-exceed aggregate principal amount of $110,000,000, to be sold through a negotiated sale.

(2) Authorizing and directing the execution of certain financing documents, including the Second Supplemental Trust Agreement and other related documents, authorizing the negotiation of the sale of bonds and the execution of the Bond Purchase Agreement, approving the Preliminary Official Statement, approving certain technical amendments to the Master Trust Agreement, and authorizing and directing certain related actions in connection with the issuance of the 2002 Refunding Bonds.

(3) Authorizing the City Manager to negotiate and execute an agreement with Fullerton & Friar, Inc. and Public Resources Advisory Group for financial advisory services related to the issuance of the 2002 Refunding Bonds in an amount not to exceed $130,000.

(4) Authorizing the City Attorney to negotiate and execute an agreement with Orrick, Herrington & Sutcliffe LLP for bond counsel and disclosure counsel services related to the issuance of the 2002 Refunding Bonds in an amount not to exceed $150,000.

CEQA: Not a Project, PP 02-10-313.

(Finance/Airport)

Documents Filed: (1) Memorandum from Aviation Director Ralph G. Tonseth and Finance Director Scott P. Johnson, dated November 5, 2002, recommending holding a TEFRA hearing for the issuance of the City of San José Airport Revenue Refunding bonds, and adoption of said Thirteenth Supplemental Resolution (a) authorizing the issuance of City of San José Airport Revenue Refunding Bonds, (b) authorizing and directing the execution of certain financing documents, authorizing the negotiation of the sale of bonds and the execution of the Bond Purchase Agreement, approving the Preliminary Official Statement, approving certain technical amendments to the Master Trust Agreement, and authorizing and directing certain related actions in connection with the issuance of the 2002 Refunding Bonds, (c) authorizing the City Manager to negotiate and execute said agreement with Fullerton & Friar, Inc. and Public Resources Advisory Group, (d) authorizing the City Attorney to negotiate and execute said agreement with Orrick, Herrington & Sutcliffe LLP. (2) Supplemental memorandum from Finance Director Scott P. Johnson, dated November 12, 2002, transmitting the draft Preliminary Official Statement for the Airport Revenue Refunding Bonds, Series 2002A and 2002B.

Discussion/Action: Mayor Gonzales opened the TEFRA hearing for the issuance of the City of San José Airport Revenue Refunding Bonds, non-AMT Series 2002A and there was no testimony given. Council Member Reed commented that the resolution should say something additional about the Airport Traffic Relief Act, which will be on the ballot. City Attorney Doyle indicated that it would be revised as the item moves forward. Upon motion by Council Member Dando, seconded by Council Member Diquisto, and unanimously carried, Resolution No. 71306, entitled: “Thirteenth Supplemental Resolu-tion Approving the Forms of Second Supplemental Trust Agreement, Preliminary Official Statement, Bond Purchase Agreement, Continuing Disclosure Agreement and One or More Escrow Agreements; Providing for the Issuance of City of San José Airport Revenue Refunding Bonds, Series 2002A and Series 2002B in an Aggregate Principal Amount not to Exceed $110,000,000, Prescribing the Terms, conditions and Form of Said Series of Bonds, Amending the Master Trust Agreement, and Authorizing and Approving Other Related Actions” was adopted. Vote: 9-0-2-0. Absent: Campos, Chavez.

8.2 Approval of the second amendment to the agreement with Kimley-Horn and Associates, Inc. for the Norman Y. Mineta San José International Airport - Runway 30 Left Reconstruction Project, increasing the compensation by $1,190,000, from $4,150,000 to $5,340,000, and extending the term of the agreement from December 31, 2002 to June 30, 2004. CEQA: Resolution No. 67380, PP 02-10-301. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated October 30, 2002, recommending approval of the second amendment to said agreement with Kimley-Horn and Associates, Inc. for the Norman Y. Mineta San José International Airport – Runway 30 Left Reconstruction Project.

Discussion/Action: Upon motion by Council Member Cortese, seconded by Council Member Dando, and unanimously carried, the second amendment to the said agreement with Kimley-Horn and Associated, Inc. was approved and its execution authorized. Vote: 11-0-0-0.

Closed Session Report

City Attorney Doyle disclosed the Closed Session actions of November 19, 2002:

A. Authority to Enter Litigation Case as Amicus Curiae:

1. Case Name: City of Long Beach v. State of California Department of Industrial Relations.

Adverse party or parties: State of California

Substance of litigation: The Issue is whether the State prevailing wage requirements applies to a project of the City of Long Beach which is a Charter City.

Council Vote: Ayes: Campos, Chavez, Cortese, Dando, LeZotte, Reed, Yeager, Williams; Gonzales.

Noes: None.

Absent: Diquisto, Shirakawa, Jr.

Abstain: None.

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
9447	E/s of Narvaez Ave., 190 feet n/o Amanda Drive	10	DKB Homes Diversified	5 lots	SFDR	Approve
9456	S/s of Foxworthy Ave at Robino Drive	9	SummerHill Homes	83 units	Detached Townhomes	Approve

Open Forum

(1) Barbara Woods commented on development impacts on Branham Lane.

(2) Marc Boyd spoke about traffic and other impacts from density.

(3) Walter Phillips spoke in opposition to the proposed City Hall project.

(4) William Garbett commented on taxation issues.

(5) Pete Campbell expressed opposition to the new City Hall project.

RECESS/RECONVENE

Following Open Forum, the City Council recessed at 3:33 p.m. and reconvened at 7:03 p.m., Council Chambers, City Hall.

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

Absent: Council Members - None.

The City Clerk, Patricia L. O’Hearn, read the requests for continuances of applications and other actions as recommended. Upon motion by Council Member Chavez, seconded by Council Member Dando, and unanimously carried, the below noted continuances were granted. Vote: 11-0-0-0.

11.1 PUBLIC HEARING ON APPROVAL OF A SINGLE FAMILY HOUSE PERMIT to construct a 1,602 first and second floor addition to an existing single-family residence resulting in a maximum height of greater than 30 feet (32.5) on a 0.17 gross acre site located at 619 Chapman Street in the R-1-8 Residential Zoning District. (James and Caroline Owens, Owner/Developer). CEQA: Exempt. Director of Planning, Building and Code Enforcement and Planning Commission recommend denial (6-1-0).

SF 02-031 - District 6

(Continued from 11/5/02 – Item 11.1)

Documents Filed: (1) Memorandum from Planning Commission Secretary Stephen M. Haase, dated October 30, 2002, transmitting the Planning Commission recommendation denial of the Single-Family House Permit. (2) Report of the Staff of the Department of Planning, Building and Code Enforcement on Project File No. SF 02-031, dated October 17, 2002, recommending denial of the Single-Family House Permit.

Discussion/Action: Mayor Gonzales opened the public hearing on the Single Family House Permit for Project File No. SF 02-031. Council Member Yeager asked why there was a need for the house to be built 2-1/2 feet above the maximum 30 feet, and indicated that there are no other houses over 30 feet on the street. He added that it does not appear any exemptions apply to this project. The architect for the project responded that the house was designed to achieve the 30-foot guideline; however, the roof pitch was more aesthetically stylish at a higher level. Council Member Yeager stated that he believes the design could be at a lower height and asked why the Planning Director recommended denial. Stephen Haase, Director of Planning, Building and Code Enforcement, explained that when evaluating the project, Staff looked at the character of the neighborhood and the type of structures located there and reached the conclusion that the house would be the highest in the neighborhood and incompatible with the other houses. Council Member Yeager stated that after reviewing the project, he does not believe there is a need for the extra 2-1/2 feet and it would be difficult to grant an exemption to the policy. He added that it would set a bad precedent to grant the exemption without better justification. Upon motion by Council Member Yeager, seconded by Council Member LeZotte, and unanimously carried, the public hearing was closed and the recommendation of the Planning Director and Planning Commission was upheld and the requested rezoning was denied, and Resolution No. 71307, entitled: “A Resolution of the City Council of the City of San José Denying, Subject to Certain Stated Conditions, a Single Family House Permit to Use Certain Real Property Described Herein for the Purpose of Demolishing an Existing 936 Square-Foot Single-Family Detached Residence and the Construction of a New 2,538 Square-Foot Single-Family Detached Residence and a 440 Square-Foot Detached Garage”, was adopted. Vote: 10-0-1-0. Absent: Dando.

11.2 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the northeast corner of North First Street and East Gish Road, from CN Commercial Neighborhood Zoning District to PD Planned Development Zoning District, to allow a mixed use development of 3,230 square feet of ground floor commercial use and 22 multi-family attached residential units on 0.5 gross acre. (The Southland Corporation, Owner; BEC, Inc., Developer). CEQA: negative Declaration. Director of Planning, Building, and Code Enforcement and Planning Commission recommend approval (7-0-0).

PDC