MINUTES OF THE CITY COUNCIL

SAN JOSE, CALIFORNIA TUESDAY, NOVEMBER 26, 2002

The Council of the City of San Jose convened in Regular Session at 9:30 a.m. in 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, the City Council recessed to Closed Session at 9:35 a.m. in Room 600 to (A) confer with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9 Subsection (a) to consider cases of LaScola v. City of San Jose, et al, Izzarrelli v. City of San Jose, et al, Gaines v. City of San Jose, et al, Gross and Holmes v. City of San Jose, et al..

By unanimous consent, Council reconvened from Closed Session and recessed at 10:45 a.m. and reconvened at 1:30 p.m. in Council Chambers, City Hall.

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

Absent: Council Members: None.

Invocation

Students from the Steinbeck After-School Martial Arts Program presented a five-minute Martial Arts presentation, directed by Matt Grentier, Physical Education Teacher from Steinbeck Middle School (District 10).

Pledge of Allegiance

Mayor Gonzales led the Pledge of Allegiance.

Orders of the Day

Upon motion by Vice Mayor Shirakawa, Jr., seconded by 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 commendation to Jose Pantoja and History San José for their help in identifying former Mayors and Alcaldes of San José for preserving San José’s heritage, unveiling of a plaque with names of Mayors and Alcades of San José from 1777 to 1850, and presentation of awards to winners of the District 4 Missing Mayors contest. (Reed)

Documents Filed: None.

Discussion/Action: Mayor Ron Gonzales and Council Member Reed presented award checks to the District 4 Missing Mayors Contest Award Winners; Cristal Rodriguez, Patricia Ellis, and winner Joe Hoffman was unable to be present. Mayor Gonzales presented a commendation to Jose Pantoja for his hard work and efforts in working with the History San Jose project; and a plaque was presented by Mr. Pantoja on behalf of the History San Jose to Council Member Reed for his continuous support. Council Member Reed commended La Oferta newspaper for their coverage of the History San Jose within their publication.

1.2 Presentation of a commendation to the executive director and board members of the Vision New America organization for its mission to promote the participation by underrepresented ethnic groups, starting with the Asian American population, in American civic activities through educational programs and its Summer Public Policy Internship Program. (Williams)

Documents Filed: None.

Discussion/Action: Joining Mayor Gonzales, Council Members Williams and Reed presented commendations to Vision New America; Anna Wang, Executive Director of Vision New America, and Members Dr. Belle Wei and Sandy Chau. Anna Wang accepted the commendation and thanked the Mayor and City Council for the recognition.

1.3 Presentation of a commendation to the San José Job Corps Center for being named the top performing Job Corps Center in the nation by the U.S. Department of Labor. (Campos) (Orders of the Day)

Documents Filed: None.

Discussion/Action: Council Member Campos joined Mayor Gonzales in presenting a commendation to Aladin Rodriguez, Executive Director of the San José Job Corps Center, along with Community Liaison, Richard Martinez, for their success in placing students in the number one ranked Job Corps in the country. Executive Director Rodriguez accepted the commendation and thanked the Mayor and City Council on behalf of the San Jose Job Corps.

CONSENT CALENDAR

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

2.1 Approval of City Council Minutes for:

(a) Regular meeting of May 21, 2002

(b) Joint Council/Redevelopment Agency Board/Financing Authority meeting of May 21, 2002

Documents Filed: Minutes of City Council Regular Meeting and Joint Council Redevelopment Agency Board/Financing Authority meetings of May 21, 2002.

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

2.2 (a) Final adoption of Ordinance No. 26770 amending Section 4.24.015 of Chapter 4.24 of Title 4 of the San José Municipal Code to increase settlement authority of the City Attorney for compromise and release and stipulated awards in workers’ compensation cases and to provide for reports to the City Council on an annual basis.

Documents Filed: Proof of publication of title of Ordinance No. 26770 executed on November 20, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26770 was adopted. Vote 11-0-0-0.

(b) Final adoption of Ordinance No. 26772 rezoning certain real property situated on the west side of Aiello Drive, approximately 350 feet northerly of Lewis Road. C 02-074.

Documents Filed: Proof of publication of title of Ordinance No. 26772 executed on November 20, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26772 was adopted. Vote: 11-0-0-0.

2.3 (a) Adoption of a resolution amending the 2002-03 Schedule of Fees and Charges to make the following changes in the Housing Department for the Rental Dispute Mediation Program Fee:

(1) Increase the fee for apartment units from $5.70/unit annually to $9.09/unit annually;

(2) Increase the fee for mobilehome units from $5.70/unit annually to $6.26/unit annually;

(3) Establish a fee of $0.50/unit annually for units not covered by rent control.

(b) Adoption of related appropriation ordinance and funding sources resolution amendments in the General Fund:

(1) Increase the Housing Department’s non-personal services appropriation by $135,380;

(2) Increase the revenue estimate for Licenses and Permits in the amount of $135,380.

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

Documents Filed: Memorandum from Director of Housing Leslye Corsiglia and Budget Director Larry D. Lisenbee, dated November 7, 2002, recommending Council amend the 2002-2003 Schedule of Fees and Charges for the Rental Dispute Mediation Program, and adopt said appropriation ordinance and related resource resolution amendments.

Discussion/Action: William Garbett spoke on the proposal. Resolution No. 71308 entitled: “A Resolution of the Council of the City of San José Amending Resolution No. 71036 to Increase the Rental Dispute Mediation Fees and to Establish a New Fee for Rental Units that are Subject to the Notice or Mediation Provisions but are not Subject to Rent Control”; Ordinance No. 26782, entitled: “An Ordinance of the City of San Jose Amending Ordinance No. 26674 to Appropriate Moneys in the General Fund Increasing the Non-Personal Appropriation in the Housing Department; and Providing that this Ordinance Shall Become Effective Immediately Upon Adoption”; Resolution No. 71309 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 General Fund”, and Resolution No. 71310 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 General Plan”, were adopted. Vote 11-0-0-0.

2.4 Approval of an ordinance amending Chapter 2.04 of Title 2 of the San José Municipal Code to reflect the reorganization of City services within City departments. CEQA: Not a Project. (City Manager’s Office)

Documents Filed: Memorandum from City Manager Del D. Borgsdorf, dated November 13, 2002, recommending Council approve said ordinance.

Discussion/Action: William Garbett spoke on the proposal. Council Member Reed stated that since the Office of Equality Assurance is expected to do heavy enforcement of the City’s Prevailing Wage and Living Wage Ordinance, the name might be changed to Equal Opportunity for Contract Compliance or Contract Compliance Office the next time a reorganization is done and expressed support for Staff’s recommendation to move the Office of Equality Assurance into Public Works. City Manager Borgsdorf explained that the ordinance follows up with the appropriate name changes to comply with the changes made at budget time, with the objective of moving the contract compliance component to the office where most of those contracts originate, and providing a pre-emptive understanding of the ordinance requirement and ensure they are treated with the same level of urgency and importance. In response to comments by Council Member Williams,

City Manger Borgsdorf stated Staff will provide a follow-up report on the benefits of making the proposed change. Council Member Reed recalled that a report on Prevailing Wage enforcement is due to the Council in December. Ordinance No. 26783, entitled: “An Ordinance of the City of San José Amending Chapter 2.04 of Title 2 of the San José Municipal Code to Provide for City of San José Departmental Reorganizations and Changes in Functions and Duties of City Departments”, was passed for publication. Vote: 11-0-0-0.

2.5 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2002-2003 #15, 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 José Obregon, dated November 4, 2002, recommending that Council approve open purchase orders for said items.

Discussion/Action: The award of open purchase orders List #15 for Fiscal Year 2002-2003 was approved and the Director of General Services authorized to execute the purchase orders. Vote: 11-0-0-0.

2.6 Approval of appointments to the Downtown Parking Board. (Mayor)

Documents Filed: Memorandum from Mayor Gonzales, dated November 25, 2002, recommending the appointment of Brenda Baines to the Downtown Parking Board.

Discussion/Action: The appointment of Brenda Baines to the Downtown Parking Board was approved. Vote: 11-0-0-0.

2.7 (a) Adoption of the following appropriation ordinance and funding sources resolution amendments in the General Fund related to the Federal Weed and Seed Grant funds in the Washington Neighborhood:

(1) Increase the revenue estimate for Revenue from the Federal Government by $225,000.

(2) Increase the City-wide appropriation to the Parks, Recreation and Neighborhood Services Department in the amount of $175,000.

(3) Increase the City-wide appropriation to the Police Department in the amount of $50,000.

(b) Reauthorize the following existing positions for the term of the grant:

(1) 1.0 FTE Full-time Community Activity Worker; and

(2) 0.5 FTE Part-time D-benefited Staff Analyst.

CEQA: Not a Project. Council District 3. SNI: Washington. (Parks, Recreation and Neighborhood Services/Police/City Manager's Office)

Documents Filed: Memorandum from Chief of Police William M. Lansdowne, Director of Parks, Recreation & Neighborhood Services, Sara Hensley, and Budget Director Larry D. Lisenbee, dated November 4, 2002, recommending adoption of said appropriation ordinance and related resource resolution amendments and reauthorization of said positions for the term of the grant.

Discussion/Action: Ordinance No. 26784, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Moneys in the General Fund for the ‘Weed and Seed’ Program; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, and Resolution No. 71310, entitled: “A Resolution 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 General Fund”, were adopted. Vote 11-0-0-0.

2.8 Approval of the agreement with the Commission on Peace Officer Standards and Training (P.O.S.T.) related to the previously approved P.O.S.T.-reimbursed Driver and Force Option Simulator training program for peace officers in Santa Clara County, for the period July 1, 2002 to June 30, 2003, for a total amount not to exceed $210,000. CEQA: Not a Project. (Police)

Documents Filed: Memorandum from Chief of Police William M. Lansdowne dated November 4, 2002, recommending approval of said agreement with the Commission on P.O.S.T Training Program.

Discussion/Action: The agreement with the Commission on Peace Officer Standards and Training (P.O.S.T) was approved and its execution authorized. Vote: 11-0-0-0.

2.9 Report on bids and award of contract for the Flickinger and Townsend Play Area and Restroom Renovation Projects to the low bidder, HRB Construction, Inc., to include the base bid and Add Alternate Nos. 1, 2, 3, 4, and 5 in the amount of $740, 591, and approval of a contingency in the amount of $74,100. Flickinger CEQA: Exempt, PP02-08-211; Townsend CEQA: Exempt, PP02-08-212. Council District 4. (Public Works)

Documents Filed: Memoranda from Director of Public Works, Katy Allen, dated November 4 and 21, 2002, recommending award of said contract, with related contingency to the low bidder, HRB Construction, Inc.

Discussion/Action: The award of said contract to the low bidder, HRB Construction, Inc., with related contingency, was approved and its execution authorized. Vote: 11-0-0-0.

2.10 Report on bids and award of contract for the Groesbeck Hill Park Improvements Project to the lowest responsive bidder, System 3, Inc., to include the base bid only in the amount of $307,500, and approval of a contingency in the amount of $30,000. CEQA: Negative Declaration, PP02-10-285. Council District 8. (Public Works)

Documents Filed: Memorandum from Director of Public Works, Katy Allen, dated November 4, 2002, recommending award of said contract to lowest responsive bidder, System 3, Inc.

Discussion/Action: The award of said contract with related contingency to the lowest responsive bidder, System 3, Inc. was approved and its execution authorized. Vote: 11-0-0-0.

2.11 Approval of the Operating Grant Agreement with Our City Forest for Fiscal Year 2002-2003, in the amount of $135,000. CEQA: Not a Project. (Transportation)

Documents Filed: Memorandum from Director of Transportation, James R. Helmer, dated November 4, 2002, recommending Council approve said agreement with Our City Forest, for Fiscal Year 2002-2003.

Discussion/Action: The Our City Forest Operating Grant Agreement for Fiscal Year 2002-2003 was approved and its execution authorized. Vote: 11-0-0-0.

2.12 Approval of the Tree Planting Grant Agreement with Our City Forest for Fiscal Year 2002-2003, in the amount of $120,000. CEQA: Not a Project. (Transportation)

Documents Filed: Memorandum from Acting Director of Transportation, James R. Helmer, dated November 4, 2002, recommending the approval of said agreement with Our City Forest for Fiscal Year 2002-2003.

Discussion/Action: Council Member Cortese queried Staff on the statement in the report that every tree planted should be inspected by the City Arborist and upon response by Acting Director of Transportation Helmer that the arborist’s responsibility for tree inspection may be delegated, Council Member Cortese suggested Staff endeavor to use volunteers to assume some tree maintenance responsibility under the direction of the City Arborist. The Our City Forest Tree Planting Agreement for Fiscal Year 2002-2003 was approved and its execution authorized. Vote: 11-0-0-0.

2.13 Adoption of a resolution authorizing the City Manager to:

(a) Negotiate and execute an agreement with Fairmont Hotels & Resorts, Inc. as the exclusive contractor to provide catering management services at the Fourth and San Fernando Streets Parking Garage Banquet Center, for a term of two years, commencing on or about February 20, 2003, with a maximum manager’s fee not to exceed 8% of Adjusted Gross Revenue per annum; and

(b) Negotiate and execute an agreement with the next best proposer if the City is unable to reach an agreement with the Fairmont.

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

(Rules Committee referral 11/20/02)

Documents Filed: Memorandum from Director of Conventions, Arts & Entertainment, Nancy Johnson, dated November 19, 2002, recommending the approval of said resolution.

Discussion/Action: Council Member LeZotte stated in every agreement the City should heavily emphasize recycling and especially at locations composting waste, where there is catering. Resolution No. 71311, entitled: “A Resolution of the Council of the City of San Jose Authorizing the City Manager to Negotiate and Execute an Agreement with Fairmont Hotels & Resorts, Inc. or the Next Best Proposer for Catering Services for the Fourth Street Parking Garage Banquet Center for a Term of Two Years”, was adopted. Vote 11-0-0-0.

2.14 Approval of award of sole source purchase of a bullet containment system to Super Trap, Inc., (Corona, CA) for a total cost of $148,149.19 including tax, delivery, and installation and authorization for the Director of General Services to execute the purchase order. CEQA: Not a Project. (General Services)

(Rules Committee referral 11/20/02)

Documents Filed: Memorandum from Director of General Services, Jose Obregon, dated November 20, 2002, recommending the award of said sole source purchase to Super Trap, Inc.

Discussion/Action: The award of said sole source purchase, pursuant to Subsection 4.12.020 of the San Jose Municipal Code, to Super Trap, Inc., was approved and its execution authorized. Vote: 11-0-0-0.

STRATEGIC SUPPORT SERVICES

3.1 Report of the Study Session

Mayor Gonzales, Chair

(a) FY 2002-2003 Capital, 5-Year CIP, and 2002-03 Operating Budget session of May 20, 2002

Documents Filed: City Council Study Session Report of May 20, 2002, for Proposed 2002-2003 Capital Budget, Proposed 2003-2007 Capital Improvement Program, and Proposed 2002-2003 Operating Budget.

Discussion/Action: The Study Session reports were approved. Vote: 11-0-0-0.

3.2 Report of the Rules Committee – Meeting of November 13, 2002

Vice Mayor Shirakawa, Jr., Chair

Documents Filed: Rules Committee Report of November 13, 2002.

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

(b) City Council

(1) Review November 26, 2002 Draft Agenda

The Committee recommended approval of the November 26, 2002 City Council agenda with four additions.

(2) Add New Items to November 19, 2002 Amended Agenda

The Committee recommended four additions to the November 19, 2002 Council agenda.

(c) City Council Committees

(1) Amendments to Council Committee Agendas

(a) Finance and Infrastructure Committee

(b) Economic Development and Environment Committee

(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 November 7, 2002, listing the items transmitted to the Administration for the period October 30-November 5, 2002.

The Committee noted and filed the Public Record.

(f) Boards, Commissions and Committees. Attachment: Memoranda from City Clerk, Patricia L. O’Hearn dated October 31, 2002, forwarding four lists of qualified applicants, as submitted by the Project Diversity Screening Committee; four memoranda from the City Attorney’s Office dated September and October 2002 reviewing commission applicants for conflict of interest; from Council Member Reed dated November 7, 2002, recommending appointments to the Disadvantaged Business Development Commission; from Council Member Linda J. LeZotte, dated November 8, 2002, recommending an appointment to the Historic Landmarks Commission; from Council Member Yeager, dated November 12, 2002, recommending an appointment to the Library Commission; and from Council Member Reed, dated November 12, 2002, recommending appointments to the Historic Landmarks and Library Commissions.

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

(1) Disadvantaged Business Development Commission

The Committee recommended appointment of Marin Arreola (Incumbent), Brenda Jackson (Incumbent), Matt Kamkar (Incumbent), Arturo Rivera and Sterling Starbird to terms ending December 31, 2005; and James Charles to an unexpired term ending December 31, 2004.

(2) Historic Landmarks Commission

The Committee recommended appointment of Edward Janke to an unexpired term ending June 30, 2006.

(3) Library Commission

The Committee recommended appointment of David Cohen to an unexpired term ending June 30, 2004.

(4) Mobile Home Advisory Commission

The Committee directed the City Clerk to re-advertise both the landlord and neutral positions and to return to Rules Committee before year’s end with recommended applicants for these positions.

(g) Council Referrals for Assignment to Appropriate Committee, Administration, or Council Appointee - There were none.

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

(i) Oral communications - None were presented.

(j) Adjournment - The meeting adjourned at 2:15 P.M.

Report of the Rules Committee - Meeting of November 20, 2002 (Partial)

Documents Filed: Rules Committee Report (Partial) of November 20, 2002.

(d) Meeting Schedules

(1) Approve City Council Meeting Schedule for January – August 2003. Attachment: Memorandum from Senior Executive Analyst, Nadine Nader, dated November 14, 2002, recommending approval of the City Council meeting schedule for the period of January 2003-August 2003.

The Committee recommended approval of the Council meeting schedule for the period January-August 2003.

(2) Approve proposed dates for 2003 General Plan Hearings. Attachment: Memorandum from Senior Executive Analyst, Nadine Nader, dated November 14, 2002, recommending approval of three General Plan Hearings.

The Committee recommended approval of three General Plan Hearings to be held April 15, 2003; June 3, 2003; and November 18, 2003.

(3) Approve Legislative Priorities Schedule/Calendar. Attachment: Memo-randum from Mayor Gonzales, dated November 19, 2002, recommending approval of the Legislative Priorities schedule/calendar.

The Committee accepted Mayor Gonzales’ memorandum presented at the meeting, added this item to the Rules Agenda of November 20, 2002, and recommended approval of Mayor Gonzales’ recommendations dated November 19, 2002, to approve the following Legislative Priorities schedule/calendar:

12/2 City Manager/Redevelopment Agency release proposed priorities.

12/17 City Council considers and discusses CM/RDA proposal.

1/6/03 5:00 PM Deadline for Council Members to submit up to two proposals to Mayor’s Budget and Policy Office (Template to be distributed separately).

1/10 Mayor releases Legislative Priority recommendations for Council considerations.

1/14 Council action on Legislative priorities.

1/24 Legislature’s deadline for submission of new bills.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Dando, and unanimously carried, the Rules Committee report and actions of November 13, 2002 and partial report and actions of November 20, 2002 were accepted. Vote: 11-0-0-0.

3.3 Report of the Finance and Infrastructure Committee – November 13, 2002

Council Member Dando, Chair

Documents Filed: Finance and Infrastructure Committee Report of November 13, 2002.

(a) Consent Items

(1) Monthly Investment Report for September 2002. Attachment: Memo-randum from Finance Director Scott P. Johnson, dated October 28, 2002, transmitting the September 2002 Investment Report.

(2) Minutes from the Third Quarter Investment Committee Meeting. Attachment: Memorandum from Finance Director, Scott P. Johnson, dated November 4, 2002, transmitting said report.

The Committee accepted the Consent Items.

(b) Monthly Financial Report for September 2002. Attachment: Memorandum from Director of the Budget Office, Larry D. Lisenbee, dated November 5, 2002, transmitting said report.

The Committee accepted the staff report.

(c) Comprehensive Annual Financial Report for Year Ended 2002-03. Attachment: (1) Memorandum from Director of the Budget Office, Larry D. Lisenbee, dated November 6, 2002. transmitting said report, (2) Report entitled, Comprehensive Annual Financial Report, year ending January 2002.

The Committee accepted the staff report.

Discussion/Action: See Item 3.5 for Council action taken.

(d) Update on e-Government Due Diligence. Attachment: (1) Memorandum from Director of Conventions, Arts & Entertainment, Nancy Johnson and Chief Information Officer, Wandzia Grycz, dated November 4, 2002, recommending that Council take certain actions concerning the future of e-Government in San José, (2) Report entitled, City of San Jose e-Government Reference Guide, dated October 2002.

The Committee accepted the staff report.

Discussion/Action: See Item 3.6 for Council action taken.

(e) Informational Presentation of the San José Fire Museum. Attachment: Memorandum from Council Members Dando, Campos, and Chavez, stating the November 6, 2002 Rules Committee approved adding an informational presentation from The San Jose Fire Museum to the agenda of the November 13, 2002 Finance and Infrastructure Committee.

The Committee requested that this item be referred to the City Manager’s Office for further discussion and that the City Manager’s Office work in conjunction with the Fire Department to determine next steps.

(f) Oral petitions - None.

(g) Adjournment - The Committee was adjourned at 4:50 P.M.

Discussion/Action: Upon motion Council Member Dando, seconded by Council Member Reed, and unanimously carried, the Finance and Infrastructure Committee report and actions of November 13, 2002, with Items 3.4(c) heard at Item 3.5 and 3.4(d) heard at Item 3.6, were accepted. Vote: 11-0-0-0.

3.4 (a) Acceptance of the First Quarterly City-wide Capital Improvement Program Status Report including Park, Library and Public Safety Bond Projects. CEQA: Not a Project. (City Manager’s Office)

(b) Acceptance of the Strong Neighborhood Initiative (SNI) Quarterly Report, June – September 2002. CEQA: Not a Project. (City Manager's Office/Redevelopment Agency)

(Rules Committee referral 11/20/02)

(Renumbered to 10.1)

Documents Filed: See Item 10.1 for documents filed.

Discussion/Action: See Item 10.1 for Council action.

3.5 Acceptance of the Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2002-03. (Finance)

[Finance & Infrastructure Committee referral 11/13/02 - Item 3.3(c)]

Documents Filed: (1) See Item 3.3(c) for the November 4, 2002 Staff report. (2) Memorandum from Senior Executive Analyst Nadine Nader, dated November 21, 2002, stating the Finance and Infrastructure Committee accepted the Staff report, regarding the Comprehensive Annual Financial Report (CAFR) for Fiscal Year 2002-2003.

Discussion/Action: Council Member Dando thanked the staff for their hard work and strong efforts in comprising the Comprehensive Annual Financial Report. She noted the report included the changes made within the requirements of the GASBY 34, a new reporting model that establishes new requirements and updates how the city reports financial activities, and allows the public to easily gather and understand the information by including all of the City’s assets and liabilities, providing new statements that change how governments measure effectiveness, and allows government to assess how the city has performed financially. Finance Director Scott Johnson presented the CAFR report for Fiscal Year 2002-03, stated the report, with the new GASBY 34 requirements, represents a culmination of over ten years of work by the Finance Department, and involved every department of the City, the Norman Mineta San Jose International Airport, the San Jose Clean Water Authority, the San Jose Financing Authority, the Parking Authority, the Water Pollution Control Plan, and the San Jose Redevelopment Agency. He explained how GASBY 34 has changed the reporting, including the addition of a management discussion and analysis of all the City’s fiscal activities from a government-wide perspective. Reflecting on changes occurring in the private sector due to accounting irregularities, Director Johnson stated that he as Finance Director and City Manager Del Borgsdorf have voluntarily made certified statements under oath asserting personally that the City’s financial statements are private sector accurate in all material respects, actions which correspond to FCC requirements of the CEO and CFO of the private corporations, and is consistent with the new requirements under the Sarbanus Oxley Act of 2002, that a new public accounting oversight board require new standards that were established for auditor independence. He stated the City has received 14 awards from the Government Finance Office Association, eight consecutive awards from the California Society of Municipal Finance Officers and noted the City of San Jose is known for setting the standard in early completion and submittal of the City’s financial statements. He introduced Kevin O’Connell, an independent auditor from Macias & Jinny for a presentation on GASBY 34. Mr. O’Connell stated their audit included not only City functions, Redevelopment Agency and Airport, but also the City’s two pension plans, and they performed the Federal Compliance audit, and provided technical advice during implementation of GASBY and commended Finance Department Staff for their efforts on this massive undertaking. He presented Power Point slides on GASBY 34 and explained the recent legislative changes affecting financial accountability. Council commended the strong efforts by the Finance staff in the work put into the Financial Report. Upon motion by Council Member Dando, seconded by Council Member Diquisto, and unanimously carried, the report was accepted. Vote: 11-0-0-0.

3.6 (a) Acceptance of the report and affirming the proposed e-Government Mission and approval of the proposed project.

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

(1) Establishing an appropriation for the e-Government implementation project for two positions in the amount of $190,000.

(2) Decreasing the e-Government Applications Earmarked Reserve by the amount of $190,000.

(c) Directing staff to report back to the City Council within 90 days after filling the positions dedicated to e-Government, with a project plan on the implementation of the class registration on-line initiative recommended by the Information Technology Planning Board.

(Conventions, Arts and Entertainment/Information Technology Planning Board)

[Finance & Infrastructure Committee referral 11/13/02 - Item 3.3(d)]

Documents Filed: Memorandum from Senior Executive Analyst, Nadine Nader, dated November 21, 2002, stating the Finance and Infrastructure Committee accepted the Staff report on e-Government Due Diligence.

Discussion/Action: Director of Conventions, Arts & Entertainment Nancy Johnson and Director of Parks, Recreation & Neighborhood Services Sara Hensley presented the current and future progress of e-Government for the City of San José as e-Government addresses the two very specific areas; the current status infrastructure backbone to support e-Government services extension and the 21 different service applications that can be expanded from an e-Government application. She stated the report summarizes all e-Government applications in San José, the Information Technology Planning Board (ITPB) evaluation of the initial 21 projects, the ITPB’s project to launch the final stage of the City’s e-Government efforts, and the City’s timeline of costs and benefits associated with the project. She stated the report stresses the importance and benefits of e-Government to the City of San José in order to improve customer service and to realize long-term customer benefits, thus resulting in a more efficient use of a limited workforce. Council Member Dando thanked the staff for their report and accomplishments in developing this program and allowing the community the ability to utilize City services directly. Council Member Campos and LeZotte suggested that District information should be gathered within the volunteer surveys administered to the community to provide a scope of which users and what districts are in need of more assistance within this program. Staff commented that they would follow up on Council’s concerns and add the requests to their surveys. Council Member Williams expressed his support and inquired whether it would be possible to have a diagram showing how the City’s systems connect and commented on the importance of having some measurements by which to determine if the City’s e-Government efforts are effective. Upon motion by Council Member Dando, seconded by Council Member Diquisto, and unanimously carried, the report affirming the proposed e-Government mission and approving the proposal project was accepted; Ordinance No. 26785, entitled: “An Ordinance of the City of San Jose Amending Ordinance No. 26674 to Appropriate Moneys in the General Fund for the e-Government Project; and Providing that this Ordinance Shall Become Effective Immediately Upon Adoption” was passed for publication; and the direction for Staff to report back in 90 days with a project plan implementation of online class registration was approved. Vote: 10-0-1-0. Absent: Shirakawa, Jr.

3.7 (a) Appointment of the following people to the Public Safety Bond Citizen Oversight Committee: Autumn Gutierrez, Jim Shore, John Skeen, Phyllis Lazzarini, and Dang Pham.

(b) Direct the City Manager to create a workplan and meeting schedules for the committee.

(Mayor)

(Rules Committee referral 11/20/02)

Documents Filed: Memorandum from Mayor Ron Gonzales, dated November 19, 2002, recommending the appointment of the above named people to the Public Safety Bond Citizen Oversight Committee.

Discussion/Action: Upon motion by Council Member Dando, seconded by Vice-Mayor Shirakawa, Jr., and unanimously carried, Council approved Mayor Gonzales’ recommendation to appoint Autumn Gutierrez, Jim Shore, John Skeen, Phyllis Lazzarini, and Dang Pham to the Public Safety Bond Citizen Oversight Committee and directed the City Manager to create a workflow and master schedule for the committee. Vote: 10-0-1-0. Absent: Shirakawa, Jr.

3.8 (a) Adoption of a resolution amending the City of San Jose Harassment Policy to include protections for gender identity in addition to existing protections for race, color, ethnicity, national origin, disability, age, sex, martial status, sexual orientation, and religion.

(b) Approval of an ordinance amending the Municipal Code to include discrimination or preference on the basis of gender identity, in addition to existing protections, as a violation of Chapter 4.08. Chapter 4.08 currently states that it is illegal for a contractor covered by the chapter to discriminate or grant preferential treatment on the basis of race, sex, color, age, religion, sexual orientation, disability, ethnicity, or national origin, in the performance of any contract with the City or with the Redevelopment Agency of the City of San José; and amending Section 2.08.3030 of the Municipal Code to include gender identity discrimination as a matter affecting human rights and covered under the functions, powers and duties of the Human Rights Commission.

(Mayor/Yeager)

(Rules Committee referral 11/20/02)

Documents Filed: Memorandum from Mayor Ron Gonzales and Council Member Yeager, dated November 11, 2002, recommending the adoption of said resolution.

Discussion/Action: Council Member Yeager recommended Council approve said resolution regarding the City of San José’ Harassment Policy, with great support from Council and commendations from Council Member Chavez, in regards to Council Member Yeager’s efforts and support of this resolution. Upon motion by Council Member Yeager, seconded by Council Member Chavez, and unanimously carried, Resolution No. 71312, entitled: “A Resolution of the Council of the City of San Jose Amending the City of San José Harassment Policy to Include Protections for Gender Identity in Addition to Existing Protections for Race, Color, Ethnicity, National Origin, Disability, Age, Sex, Marital Status, Sexual Orientation, and Religion”, was adopted; and Ordinance No. 26786, entitled: “An Ordinance of the City of San Jose Amending Section 4.08.070 of Chapter 4.08 of Title 4 of the San Jose Municipal Code to Add Gender Identity as a Basis of Discrimination Which Would Result in a Violation of Chapter 4.08 Entitled Nondiscrimination Requirements for Contracts and Amending Section 2.08.3030 of Chapter 2.08 of Title 2 to Include Gender Identity Discrimination as a Matter Affecting Human Rights and Covered Under the Functions Powers and Duties of the Human Rights Commission”, was passed for publication. Vote: 10-0-1-0. Absent: Shirakawa, Jr.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.2 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. Director of Planning, Building and Code Enforcement and Historic Landmarks Commission recommend approval (5-0-1). (Planning, Building, and Code Enforcement)

MA 02-003 - District 3 (Continued from 10/8/02 – Item 4.3 et al, and 11/5/02 – Item 4.2)

Documents Filed: None.

Discussion/Action: This item was continued to December 10, 2002.

4.3 PUBLIC HEARING and adoption of a resolution approving the vacation of a portion of San Fernando Street between Bush and Wilson Streets, reserving a public service easement and a pedestrian easement over the vacated area. CEQA: Resolution No. 68748. Council District 6. (Public Works)

Documents Filed: Memorandum from Director of Public Works, Katy Allen, dated November 4, 2002, recommending the Public Hearing be conducted and said resolution adopted.

Discussion/Action: The Public Hearing was opened and there was no testimony from the floor. Upon motion by Council Member Yeager, seconded by Council Member Chavez, and unanimously carried the Public Hearing was closed, and Resolution No. 71313, entitled: “Resolution of the Council of the City of San Jose Vacating a Portion of San Fernando Street Between Bush and Wilson Streets, and Reserving a Public Service Easement and Pedestrian Access Easement”, was adopted. Vote 10-0-1-0. Absent: Gonzales.

4.4 Adoption of a resolution:

(a) Approving a conditional grant of up to $7,000,000 to ROEM Development Corporation, or its designated partnership, for the acquisition and predevelopment of the Cherryview Senior Apartments, a 126-unit senior rental development located at 5067 Almaden Expressway.

(b) Finding that the use of redevelopment funds for the project is of benefit to the Redevelopment Project Areas in San José.

CEQA: Negative Declaration, PDCSH02-02-032. Council District 9. (Housing)

Documents Filed: Memorandum from Director of Housing, Leslye Corsiglia, dated November 4, 2002, recommending the adoption of said resolution.

Discussion/Action: Upon motion by Council Member Diquisto, seconded by Council Member LeZotte, and unanimously carried, Resolution No. 71314 entitled: “A Resolution of the Council of the City of San José (i) Approving a Conditional Grant of Up to $7,000,000 to ROEM Development Corporation, or It’s Designated Partnership, for Acquisition and Predevelopment Costs of a 126 Unit Affordable Housing Project, (ii) Authorizing the Director of Housing to Negotiate and Execute All Necessary Documents Evidencing Such Loan On Behalf of the City, and (iii) Finding That The Use of 20% Housing Funds for the Subject Project is a Benefit to the Redevelopment Areas in San José”, was adopted. Vote: 10-0-1-0. Absent: Gonzales.

RECREATION & CULTURAL SERVICES

5.2 Report on bids and award of contract for Bernal Park Expansion Project to the low bidder, Jensen Corporation, in an amount of $1,218,777, and approval of a contingency in the amount of $97,500. CEQA: Mitigated Negative Declaration, PP01-05-101. Council District 3. (Public Works)

Documents Filed: Memorandum from Director of Public Works, Katy Allen, dated November 4, 2002, recommending the award of said contract, with related contingency to the low bidder, Jensen Corporation.

Discussion/Action: Upon motion by Council Member Chavez, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the award of said contract to the low bidder, Jensen Corporation, was approved and it’s execution authorized. 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)

(Deferred from 11/19/02 – Item 6.1)

Documents Filed: None.

Discussion/Action: This Item was deferred to December 3, 2002.

AVIATION SERVICES

8.1 (a) Approval of a second amendment to the lease of airport premises with United Airlines, Inc. for 2,580 square feet of office space at 1277 Airport Blvd., extending the term from December 1, 2002 through November 30, 2007, with revenue to the City of $18,000 annually.

(a) Approval of a first amendment to the lease of airport premises with United Airlines, Inc. for 2,315 square feet of office space in Terminal C Mezzanine, extending the term from February 1, 2003 through November 30, 2007, with revenue to the City in the amount of $153,000 annually.

CEQA: Resolution No. 67380, PP 02-11-320. (Airport)

(c) Approval of an eighth amendment to the Scheduled Airline Operating Agreement between the City of San José and United Airlines, Inc., to add provisions regarding compliance with the City’s Airport Noise Control Program, with annual revenue to the City of approximately $900,000. CEQA: Resolution No. 67380, PP02-10-320. (Airport)

Documents Filed: (1) Memorandum from Director of Airport Services, Ralph G. Tonseth, recommending the approval of amendments to said lease agreements with United Airlines, Inc. (2) Memorandum from Director of Airport Services, Ralph G. Tonseth, recommending the approval of an Eight Amendment to the Scheduled Airline Operating Agreement between the City of San José and United Airlines, Inc..

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

8.2 Adoption of a resolution placing the amendment of San José Municipal Code Chapter 25.04, Part 4, entitled “Airport Traffic Relief Act,” on a March 4, 2003 special election ballot for voter approval, providing for the orderly and cost-effective development of required security improvements and additional terminal gates at the Airport and implementation of traffic relief projects for the Norman Y. Mineta San José International Airport. CEQA: Resolution No. 67380 (Mayor)

Documents Filed: (1) Memorandum from Mayor Gonzales, dated November 21, 2002, recommending the City Council place said amendment of Municipal Code Chapter 25.04, Part 4, entitled “Airport Traffic Relief Act”, on a March 2003 special election ballot for voter approval. (2) Memorandum from Council Member Yeager, dated November 26, 2002, recommending that a Task Force be appointed comprised of airline representatives, airport security experts, business leaders, labor representatives, nearby residents, and Council members to make recommendations to the City Council on policies regarding airport security, airport traffic improvements, and neighborhood mitigations as they relate to the ATRA ordinance and a centralized terminal and expansion of the number of gates at the airport, as specified therein. (3) Memorandum from City Clerk, Patricia L. O’Hearn, dated November 21, 2002, regarding the Special Election and Referral of Ballot Measures, (4) Electronic Mail correspondence from six residents and supporters of said resolution.

Discussion/Action: In opening comments, Mayor Gonzales stated he is proud to bring forward this common sense plan to amend the current airport ordinance in a way that will allow the best airport security solution to be integrated with improved passenger service. He stated the proposed plan brings improvements forward a year earlier than under the current ordinance and save tens of millions of taxpayers dollars, while keeping the City’s strong commitment to traffic relief in and around the airport, and building the current highway and roadway improvements that are in advanced planning or under construction. He stated the road projects are important components of the City’s traffic relief performance since ninety-five percent of current as well as future airport users will use the roadways in and around the airport, and added that the proposed plan includes the flexibility of building a rail connection to either light rail or BART. He stated construction on airport facilities can begin once funding for the Airport People Mover (APM) project is identified by the City Council, that there is $200 million dollars allocated in the Measure A program for the APM to be constructed between First Street and the airport, and the BART Station in Santa Clara if possible. Stressing his commitment to the APM, he stated the draft Environmental Impact Report (EIR) is circulating for review and linking those transit facilities, BART and the light rail will be a long project, it is the right time to proceed, and considering the attacks on America on September 1, 2001, failure to live up to the requirement of the Federal security measures now placed on airports would expose airport customers and employees to any dangers that might happen there.

He stated the Council is faced with the challenge of the airport is needing significantly more space for Federal security measures, but not able to make the other airport terminal improvements at the same time. Under the current ordinance, the expansion of the airport will be put on hold for several years, with frustrated travelers waiting in longer lines, which could force customers to look at other options in the San Francisco Bay Area; and he stated the potential results of not taking action are staggering---tens of millions of dollars wasted on temporary solutions when the time has come for a permanent improvement. In light of the circumstances the City now faces, he stated it is necessary to implement traffic relief projects and expand the airport in a way that makes the most sense and saves the most money, and his proposal will allow the security measures, the airport terminal and traffic relief projects to be done at the same time in coordination with the other traffic relief projects. He stated agreeing to this election will allow San Jose voters the option to say yes to a permanent solution with long-term benefits, improved safety and traffic relief, an improved airport in the near term and the saving of taxpayer money, to secure the airport that San Jose truly deserves, one that is modern, comfortable and safe; whereas not agreeing to bring the solution in the proposed amendment to voters means saying no to the people in the community and denying the benefits for millions of travelers and businesses which use the airport each year. He stated it is time to move forward on amending the current ordinance, that the long term security at the airport and the area’s economic well being depend on the Council’s vote today and on the voters decision in March of 2003.

Responding to inquiries from Council Member Chavez, Aviation Director Ralph Tonseth stated the anticipated cost of the APM from First St. to the terminal section is $125 million if constructed as part of the Airport project and $150 Million if constructed as a stand-alone project, and costs for the completed route, while still undetermined, would not be the sole responsibility of the airport. Pertaining to the one-terminal concept, he stated there is an internal people mover or an equivalent type technology to transport people from one end to the other, a distance of one and one-half miles, which could also be a series of high-speed walkways, and estimated the total build-out time as eight years.

Council Member Chavez asked about implications of the ballot measure and construction on the airport’s negotiations with the airlines and on the airlines’ commitment to the airport improvements. Director Tonseth stated the airlines agreed in concept to the sample terminal plan while reserving the right to review the engineering and cost of each individual phasing of parts of the program for which they will principally be responsible; therefore he would anticipate no impediments to negotiations and consistent with the Master Plan implementation ordinances, stated the Administration will present a proposed project to the Council which will include the airlines’ commitment on an incremental basis. He estimated the timeline for construction of the baggage security system at 18-24 months and 24-30 months for the entire project to be completed. Addressing Council Member Chavez’ question about the flexibility in the ballot language pertaining to the APM and to the BART connection, Mayor Gonzales explained that as decisions are made at the City and at the Santa Clara Valley Transit Authority (VTA) the questions of how much traffic congestion would be relieved by the light rail connection versus the BART connection will be better understood as the time to make those decisions draws closer.