MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, DECEMBER 3, 2002

The Council of the City of San José 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 9:32 a.m. in Room 600 (A) to discuss public employment/public employee appointment pursuant to Government Code Section 54957 for appointment of the Director of Department of Transportation; and (B) to confer with Legal Counsel to discuss anticipated litigation (1) pursuant to Subsection (b) of the Government Code Section 54956.9 in one matter involving significant exposure to litigation; and (2) pursuant to Subsection (c) of the Government Code Section 54956.9 in two matters regarding the initiation of litigation.

By unanimous consent, Council reconvened from Closed Session and recessed at 11:30 a.m. and reconvened at 1:39 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

Pastor Dale Weatherspoon of Almaden Hills Methodist Church read a poem entitled “Justice and Peace”.

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, Item 3.8 was deferred to December 10, 2002 and the Orders of the Day and the Amended Agenda were approved. Vote: 11-0-0-0.

City Manager Del D. Borgsdorf announced the appointment of Jim Helmer as the Director of the Department of Transportation (DOT). City Manager Borgsdorf stated Jim Helmer has done an outstanding job as the Acting Director for the past six months, and his leadership on traffic calming and other key issues, and his commitment to continuous improvement in DOT will help the department to successfully provide excellent service to the City of San José customers and provide regional leadership on transportation issues. Mr. Borgsdorf also introduced Mr. Helmer’s wife, Kathy, who was in the audience.

CEREMONIAL ITEMS

1.1 Presentation of a commendation to the South Bay Fishing in the City Program at Lake Cunningham Regional Park. (Cortese)

Documents Filed: None.

Discussion/Action: Mayor Gonzales was joined by Council Member Cortese to present a commendation to seven program partners. Representatives of the California Department of Fish and Game Fishing in the City Program, San Jose Unified School District, Rotary International District 5170, Santa Clara County Parks and Recreation, City of San José Parks, Recreation and Neighborhood Services, Bay Area Sportsfishers, Santa Clara County Fish and Game Commission accepted the awards. Assistant Director Albert Balagso accepted on behalf of Parks, Recreation and Neighborhood Services, and Brian Allen of the Rotary Club thanked the Mayor and City Council on behalf of the South Bay Fishing in the City Program.

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 actions were taken as indicated. Vote: 11-0-0-0.

2.2 (a) Final adoption of Ordinance No. 26776 – Rezoning certain real property

situated at the southeast corner of Russo Drive and Cherryview Lane to A(PD) Planned Development Zoning District. PDCSH 02-032

Documents Filed: Proof of publication of the title of Ordinance No. 26776 executed on November 26, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26776 was adopted. Vote: 11-0-0-0.

(b) Final adoption of Ordinance No. 26777 – Rezoning certain real property situated on the southeast corner of Payne Avenue and Southwood Avenue to A(PD) Planned Development Zoning District. PDC 02-054

Documents Filed: Proof of publication of the title of Ordinance No. 26777 executed on November 26, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26777 was adopted. Vote: 11-0-0-0.

(c) Final adoption of Ordinance No. 26778 – Rezoning certain real property on 1) that certain block bounded by Hillsdale, Meridian, Foxworthy, and Yucca Avenues, and 2) that certain area located on the west side of Meridian Avenue opposite Koch Lane (commonly known as the “Hacienda Gardens Shopping Centers”). PDC 02-053

Documents Filed: Proof of publication of the title of Ordinance No. 26778 executed on November 26, 2002, submitted by the City Clerk.

Discussion/Action: William Garbett spoke against the proposal. Ordinance No. 26778 was adopted. Vote: 11-0-0-0.

(d) Final adoption of Ordinance No. 26779 – Rezones certain real property situated on the east side of North White Road, approximately 800 feet southerly of McKee Road to A(PD) Planned Development Zoning District. PDC 02-022

Documents Filed: Proof of publication of the title of Ordinance No. 26779 executed on November 26, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26779 was adopted. Vote: 11-0-0-0.

(e) Final adoption of Ordinance No. 26780 - Rezones certain real property situated on the south side of Umbarger Road, approximately 100 feet easterly of Aiello Drive to LI-Light Industrial Zoning District. C 02-055

Documents Filed: Proof of publication of the title of Ordinance No. 26780 executed on November 26, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26780 was adopted. Vote: 11-0-0-0.

(f) Final adoption of Ordinance No. 26781 - Rezoning certain real property situated on the northeasterly corner of Monterey Highway and Branham Lane to A(PD) Planned Development Zoning District. PDC 02-033

Documents Filed: Proof of publication of the title of Ordinance No. 26781 executed on November 26, 2002, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26781 was adopted. Vote: 11-0-0-0.

2.3 Adoption of appropriation ordinance and funding source resolution amendments in the General Fund:

(a) Increasing the Library Grants appropriation to the Library Department by $14,751; and

(b) Increasing the estimate for Revenue from the State of California by $14,751.

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

Documents Filed: Memorandum from Director of Budget Office Larry D. Lisenbee, dated November 13, 2002, recommending City Council adopt said appropriation ordinance and funding source resolution amendments.

Discussion/Action: Ordinance No. 26787, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Monies in the General Fund Increasing the Library Grants Appropriation to the Library Department; and Providing that this Ordinance shall become Effective Immediately upon Adoption”; and Resolution No. 71316, 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”, were adopted. Vote: 11-0-0-0.

2.4 Approval of the second amendment to the agreement with URS Corporation for consultant services for the Alviso Ring Levee Wetland Mitigation Project, extending the term of the agreement from December 31, 2002 to December 31, 2004, and increasing the compensation by $37,000, for a total agreement amount not to exceed $357,000. CEQA: Not a Project. Council District 4. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated November 13, 2002, recommending Council approve the second amendment to the agreement with URS Corporation.

Discussion/Action: The second amendment to the agreement for consulting services with URS Corporation was approved and execution of the agreement was authorized. Vote: 11-0-0-0.

2.5 Report on bids and award of contract for the Watson Park Dog Park Project to the low bidder, Boulder Rock Landscape Construction, Inc., to include the base bid and Add Alternate Nos. 1, 2, 3, 4, and 5 in the amount of $188,804, and approval of a contingency in the amount of $18,900. CEQA: Exempt, H02-030. Council District 3. SNI: 13th Street. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated November 27, 2002, reporting on bids and recommending Council award said contract, with related contingency, to the low bidder, Boulder Rock Landscape Construction, Inc.

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

2.6 Approval of an agreement with Braddock and Logan Group II, LP, for construction of public improvements in connection with their residential development project on Fleming Avenue that includes City reimbursement in an amount not to exceed $279,437, for construction of a third eastbound through lane on Story Road at Capitol Expressway. CEQA: Negative Declaration, PDC00-12-126. Council District 5. SNI: East Valley/680 Communities. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated November 13, 2002, recommending Council approve an agreement with Braddock and Logan Group II, LP for construction of public improvements.

Discussion/Action: The said agreement with Braddock and Logan Group II, LP was approved and execution of the agreement was authorized. Vote: 11-0-0-0.

2.7 Approval of an agreement with the City of Campbell to provide materials testing and geotechnical services for the period January 1, 2003 to December 31, 2004, in an amount not to exceed $250,000. CEQA: Not a Project. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated November 12, 2002, recommending Council approve an agreement with the City of Campbell to provide testing services.

Discussion/Action: The said agreement with the City of Campbell was approved and its execution was authorized. Vote: 11-0-0-0.

2.8 Adoption of the following appropriation ordinance amendments in the Building and Structure Construction Tax Fund:

(a) Increasing the appropriation to the Department of Transportation for the Winfield Boulevard at Alamitos Creek Project by $60,000; and

(b) Decreasing the Ending Fund Balance by $60,000.

CEQA: Exempt, PP02-01-007. Council District 10.

(Public Works/City Manager's Office)

Documents Filed: Memorandum from Director of Public Works Katy Allen, and Director of Budget Office Larry D. Lisenbee, dated November 13, 2002, recommending Council adopt said appropriation ordinance amendments.

Discussion/Action: Council Member Dando commented that since this is a public/private project, the contractor doing the work should be reimbursed on a phased basis, rather than waiting until the completion of the project. Director of Planning, Building and Code Enforcement Stephen M. Haase stated this had been discussed and that reimbursement would be performed on a phased basis. Council Member LeZotte stated she wanted verification of the scope of the project, referring to the analysis and the street improvements on Winfield Boulevard. She expressed concern about the first paragraph under the analysis section, referring to the construction of the southerly extension, including the “bridge” over Alamitas Creek, and stated she was not aware that a bridge was ever approved over that creek. Director of Public Works Katy Allen stated that there is not a bridge there now, but there is a bridge mentioned in the 5 Year Capital Improvement Program (CIP). Council Member LeZotte stated she had been on the Planning Commission when the bridge project was halted; she did not believe a bridge had ever been approved. Council Member Dando stated funds were set aside several years ago for a proposed bridge project that is still on the 5 Year CIP. Council Member LeZotte requested clarification that the proposed bridge is on the unapproved plan, with no plans for the bridge until such time as the Council approves it. Director of Public Works Katy Allen stated that she would confirm this issue for Council. Ordinance No. 26788, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Monies in the Building and Structure Construction Tax Fund for the Winfield Boulevard Project; and Providing that this Ordinance shall become Effective Immediately upon Adoption”, was adopted. Vote: 11-0-0-0.

2.9 Approval of two community appointments to the Healthy Neighborhood Venture Fund Committee. (Mayor)

(Rules in Lieu referral 11/27/02)

Documents Filed: None.

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

2.10 Approval of City Attorney Richard Doyle’s travel to Washington, D.C., from December 15-16, 2002, for a meeting with the FAA. (City Attorney’s Office)

(Rules in Lieu referral 11/27/02)

Documents Filed: None.

Discussion/Action: City Attorney Richard Doyle’s travel to Washington, D.C. was approved. Vote: 11-0-0-0.

2.11 Adoption of a resolution approving Council Appointee salary adjustments recommendations. (Orders of the Day)

Documents Filed: Memorandum from Mayor Gonzales, dated December 2, 2002, recommending City Council approve salary adjustments for individual Council Appointees.

Discussion/Action: In response to an inquiry from Council Member LeZotte, Mayor Gonzales confirmed that Employee Services would base the actual base salary adjustments on the salary surveys provided by the Administration. Council Member Reed requested Staff report back on the possibility of establishing a SuperCOBRA-type of medical benefits plan for Council Appointees, which would provide them with the alternative of buying into the City’s health plan and paying for the benefits, with no cost to the City. Resolution No. 71317, entitled: “A Resolution of the Council of the City of San José approving Council appointee salary adjustments for the City Manager, Executive Director of the Redevelopment Agency, City Attorney, City Clerk, City Auditor and Independent Police Auditor effective July 1, 2002”, was adopted.

END OF CONSENT CALENDAR

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – November 20, 2002

Vice Mayor Dando, Chair

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

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

(b) City Council

(1) Review December 3, 2002 Draft Agenda

The Committee recommended approval of the December 3, 2002 City Council Agenda with one addition.

(2) Add New Items to November 26, 2002 Amended Agenda. Attachment: Memorandum from Council Member Reed, dated November 20, 2002, recommending the addition of a waiver of bonding requirements or approval of posting of security in lieu of bonds for construction of the Vietnamese Cultural and Heritage Gardens in Kelly Park.

The Committee recommended holding Council Member Reed’s request to waive bond requirements for the construction of the Vietnamese Cultural Heritage Foundation’s project in Kelly Park until Staff reports the results of a meeting with Mr. Nguyen, President of the Foundation; if the City and the Vietnamese Foundation do not come to an agreement, then

Council Member Reed’s item will be placed on the December 3, 2002 Council Agenda. The Committee recommended five additions to the November 26, 2002 City Council Agenda.

(3) Review December 3, 2002 General Plan Hearing Agenda

The Committee recommended approval of the December 3, 2002 General Plan Hearing 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

(1) Approve City Council Meeting Schedule for January – August 2003

(2) Approve proposed dates for 2003 General Plan Hearings

These items was reported at the November 26, 2002 Council Meeting.

(e) The Public Record - There was no Public Record filed.

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

(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 was adjourned at 2:35 p.m.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez and unanimously carried, the Rules Committee Report and actions of November 26, 2002 were accepted. Vote: 11-0-0-0.

3.4 Adoption of a resolution declaring the results of the General Municipal Election held on November 5, 2002. (City Clerk)

Documents Filed: Memorandum from City Clerk Patricia L. O’Hearn, dated December 3, 2002, recommending City Council adopt a resolution declaring results of the November 5, 2002 Municipal Election pursuant to Elections Code Section 15400.

3.4 (Cont’d.)

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez and unanimously carried, Resolution No. 71318, entitled: “A Resolution of the Council of the City of San José Reciting that a Regular Municipal Election was held in the City of San José on Tuesday, November 5, 2002, which was Consolidated with the General Election on that Date; Stating the Office to be Filled at the Election; Finding and Declaring that the Registrar of Voters of the County of Santa Clara has Canvassed the Returns of the Election, and Confirming the Results of the Canvass; Stating the Whole Number of Votes Cast in the City, the Name of the Person Voted For, the Office the Person was Voted For, the Number of Votes Given at Each Precinct to Each Person; Finding and Declaring that Terry Gregory was Elected to the Office of Member, City Council, District 7; and Stating the Measures Voted on, the Number of Votes Given at Each Precinct for the Measures and Determining that a Majority and a Required Number of Qualified Voters Voted in Favor of Measure E”, was adopted. Vote: 11-0-0-0.

3.5 (a) Adoption of appropriation ordinance and funding sources resolution amendments in the services for Redevelopment Capital Projects Fund (City-side Redevelopment Fund):

(1) Establishing an appropriation to the Office of Economic Development for SNI Consulting Service in the amount of $99,992.00.

(2) Establishing an appropriation to the Department of Transportation for the Gateway Interchange Improvement at Hellyer/101 and Blossom Hill/101 Project in the amount of $4,000,000; and

(3) Increasing the estimate for Earned Revenue by $4,099,992.

(b) Adoption of a resolution making certain determinations regarding the related expenditures of Redevelopment Agency funds on certain public improvements in connection with the Gateway Interchange Improvement at Hellyer/101 and Blossom Hill/101 Project, as more specifically described in the memorandum from the Redevelopment Agency, dated October 21, 2002.

CEQA: Exempt, PP02-11-332. Council Districts 2 and 6. (City Manager's Office)

Documents Filed: None.

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

3.6 Adoption of a resolution amending the capital project contract contingency policy in the Capital Improvement Program as follows:

(a) The contingency amount that should be established at the time of the award of a construction contract should be one of the following:

(1) Five percent of the total contract amount for street, sidewalk, or park projects;

(2) Ten percent of the total contract amount for utilities and building projects;

(3) Fifteen percent of the total contact amount for building renovation projects; or

(4) Such other amounts as approved by the City Council for a particular project.

CEQA: Not a Project. (Public Works)

(Deferred from 11/5/02 - Item 3.4 and 11/12/02 - Item 3.4)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated November 13, 2002, recommending Council adopt said resolution.

Discussion/Action: Council Member Williams expressed concern that contingencies not become a basis of decision-making, but rather that Staff determine what contingency is needed with the idea of using contingencies less often, and tying up a resource that could be used elsewhere. Council Member Dando asked if the City of San José’s contingency percentage was consistent with industry standards and other researched cities. Director Allen stated that Staff was changing contingency policy to be more consistent with what actually is encountered in construction of the City’s various projects. Council Member Dando requested clarification that the remaining contingency money returns to the original fund balance. Director Allen stated that when the project contingency is not exhausted during the course of the construction, it is returned to the fund from which it came. Upon motion by Council Member Williams, seconded by Council Member Chavez and unanimously carried, Staff was directed to report back on the City’s construction contract contingency policy, pertaining to the consistency of the City’s contingency allocations to actual contingency expenditures, and Resolution No. 71319, entitled: “A Resolution of the Council of the City of San José Establishing a New Policy for Setting the Contingency on Capital Projects”, was adopted. Vote: 11-0-0-0.

3.7 Approval of a list of the proposed Collaborative Action Plan and Agreement (CAP) for the development and operation of joint-trail-related projects. CEQA: Not a Project. (Parks, Recreation and Neighborhood Services)

[Referred from 11/19/02 – Item 3.4(b)(2)]

Documents Filed: None.

Discussion/Action: This item was deferred to December 17, 2002.

3.8 Adoption of a resolution authorizing the City Manager to negotiate and execute an amendment to the agreement with the Vietnamese Cultural Heritage Foundation for the construction of the Vietnamese Cultural Heritage Gardens to waive certain bond requirements and to authorize the City Manager to accept security, acceptable to the Manager, in lieu of the reduced bond amounts. (Reed)

(Rules in Lieu referral 11/27/02)

Documents Filed: None

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

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.2 Adoption of a resolution authorizing the Director of Housing to negotiate and execute an amendment to the grant agreement with Neighborhood Housing Services Silicon Valley (NHSSV) in the amount of $2,000,000 for the HomeVenture Fund to assist first-time low and moderate income homebuyers. CEQA: Not a Project. (Housing)

Documents Filed: Memorandum for Director of Housing Leslye Corsiglia, dated November 13, 2002, recommending Council adopt said resolution.

Discussion/Action: William Garbett spoke in opposition to the proposal. Upon motion by Council Member Dando, seconded by Council Member Chavez and unanimously carried, Resolution No. 71320, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of Housing to Negotiate and Execute an Amendment to the Grant Agreement with Neighborhood Housing Services Silicon Valley (NHSSV) in the Amount of $2,000,000 for the Home Venture Fund to Assist First-Time Low and Moderate Income Homebuyers”, was adopted. Vote: 11-0-0-0.

4.3 (a) Adoption of a resolution:

(1) Approving a loan of up to $6,346,148 to Fallen Leaves Apartments, L. P., or its designated affiliate, for the development of the Fallen Leaves Family Apartments, a 160-unit family rental development located at 202 Lewis Road.

(2) Approving a loan of up to $4,851,747 and a conditional grant of up to $3,450,000 to ROEM Development Corporation, or its designated affiliate, for the land acquisition for the Fallen Leaves development.

CEQA: Negative Declaration, PDC02-018. Council District 7. (Housing)

(b) Adoption of a resolution:

(1) Authorizing the issuance of three series of tax-exempt multifamily housing revenue bonds in the aggregate principal amount not to exceed $18.8 million;

(2) Approving loans of bond proceeds to Fallen Leaves Apartments, L.P., a California limited partnership, for financing the construction of the Fallen Leaves Apartments development located at 202 Lewis Road in San José; and

(3) Approving in substantially final form the Bonds, Trust Indenture, Loan Agreement, Junior Subordinate Trust Indenture, Junior Subordinate Financing Agreement, Regulatory Agreement and Declaration of Restrictive Covenants, Bond Purchase Agreement, Bond Placement Agreement and Official Statement; authorizing the Director of Finance and Director of Housing to, as appropriate, negotiate, execute, and deliver these documents and other related documents.

CEQA: Negative Declaration - PDC02-018. City Council District 7 (Housing/Finance)

Documents Filed: (1) Memorandum from Director of Housing Leslye Corsiglia, dated November 13, 2002, recommending that City Council adopt a resolution approving a loan to Fallen Leaves Apartment, L.P. or its designated affiliate, and approve said loan and conditional grant to ROEM Development Corporation, or its designated affiliate. (2) Memorandum from Director of Finance Scott P. Johnson, and Director of Housing Leslye Corsiglia, dated November 13, 2002, recommending City Council adopt a resolution authorizing multifamily housing revenue bonds for Fallen Leaves Apartments, L.P. (3) Supplemental memorandum from Director of Finance Scott P. Johnson, dated November 26, 2002, transmitting a Draft Preliminary Official Statement for the Fallen Leaves Apartments Financing.

Discussion/Action: William Garbett spoke in opposition to the proposal. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez and unanimously carried, Resolution No. 71321, entitled: “A Resolution of the Council of the City of San José (i) Approving a Development Loan of up to $6,346,148 to Fallen Leaves L.P., or its Affiliate for Development of a 160-Unit New Construction Development Affordable to Extremely Low-, Very Low, and Low-Income Households, Located at 202 Lewis Road in San José and (ii) Approving a Loan of up to $4,851,747 and a Conditional Grant of up to $3,450,000 to ROEM Development Corporation, or its Affiliate for Costs of the Land for the Project”; and Resolution No. 71322, entitled: “A Resolution of the Council of the City of San José Authorizing the Issuance, Sale and Delivery of Multifamily Housing Revenue Bonds in an Aggregate Principal Amount Not to Exceed $18,800,000 for the Purpose of Making a Loan to Provide Financing for the Fallen Leaves Apartments Project; Determining and Prescribing Certain Matters Relating Thereto; and Approving and Authorizing Related Actions and the Execution and Delivery of Related Documents”, were adopted. Vote: 11-0-0-0.

4.4 Adoption of a resolution:

(a) Authorizing the issuance of tax-exempt multifamily housing revenue bonds in the principal amount not to exceed $14.0 million;

(b) Approving a loan of bond proceeds to Lucretia Avenue Partners, L.P., a California limited partnership, for financing the construction of the Kennedy Apartment Homes development located at Lucretia Avenue between Mistflower Drive and Vintage Way in San José; and

(c) Approving in substantially final form the Bonds, Trust Indenture, Financing Agreement, Regulatory Agreement and Declaration of Restrictive Covenants, Intercreditor Agreement, Bond Purchase Agreement and Official Statement; authorizing the Director of Finance and Director of Housing to, as appropriate, negotiate, execute, and deliver these documents and other related documents.

CEQA: Negative Declaration, PDC-SH 00-10-103. City Council District 7. SNI: Tully/Senter. (Housing/Finance)

Documents Filed: (1) Memorandum from Director of Finance Scott P. Johnson, and Director of Housing Leslye Corsiglia, dated November 13, 2002, recommending City Council adopt a resolution authorizing Multifamily Housing Revenue Bonds for Kennedy Apartment Homes. (2) Supplemental Memorandum from Director of Finance Scott P. Johnson, dated November 26, 2002, transmitting a Draft Preliminary Official Statement for the Kennedy Apartment Homes Multifamily Housing Financing.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez and unanimously carried, Resolution No. 71323, entitled: “A Resolution of the Council of the City of San José Authorizing the Issuance of Variable Rate Demand Multifamily Housing Revenue Bonds Series 2002K and the Loan of the Proceeds Thereof for the Financing of Kennedy Apartment Homes and Approving Other Related Documents and Actions”, was adopted. Vote: 11-0-0-0.

RECREATION & CULTURAL SERVICES

5.1 Report of the Education, Neighborhoods, Youth, and Seniors Committee – November 18, 2002

Council Member Chavez, Chair

Documents Filed: Education, Neighborhoods, Youth, and Seniors Committee Report dated November 18, 2002.

(a) Youth Commission Monthly Report. Attachment: Memorandum from Chair-person Melissa Shih, San José Youth Commission, dated November 6, 2002, transmitting the October Youth Commission Report.

The Committee accepted the report with the following directive to staff:

· Committee members receive a copy of the Youth Commission’s work plan for the coming year.

· Contact Redevelopment Agency to make a presentation on the downtown to the Youth Commission for their input.

(b) Quarterly Report on new Martin Luther King, Jr. Library. Attachment: Memorandum from Library Director Jane Light, dated November 6, 2002, transmitting Quarterly Update on the new Dr. Martin Luther King, Jr. Library Project.

The Committee accepted the report.

(c) Status Report on Skate Parks. Attachment: Memorandum from Director Parks, Recreation and Neighborhood Services Sara L. Hensley, dated November 6, 2002, transmitting said report.

The Committee accepted the report.

5.1 Report of the Education, Neighborhoods, Youth, and Seniors Committee – November 18, 2002 (Cont’d.)

Council Member Chavez, Chair

(d) Status Report on Pick-up San José Attachment: Memorandum from Director Parks, Recreation and Neighborhood Services Sara L. Hensley, dated November 6, 2002, transmitting said report.

The Committee accepted the report, with the following directives to staff:

· Return to the February Education, Neighborhoods, Youth, and Seniors Committee with the results of negotiations with haulers and landfill owners to have them enforce truckloads being covered and an action plan.

· Inform Council Offices of who has adopted the “hot spots” in their districts.

(e) Status Report from the Airport Ombudsman and Noise Monitoring Center. Attachment: Memorandum from Airport Ombudsman Cathy Gaskell, dated November 6, 2002, transmitting said report.

The Committee accepted the report, with the following directives to staff:

· The Community, Customer and Communications Report is sent out via email to the list established by the Airport.

· Information that is helpful is emailed to the Council Offices for inclusion into their newsletters.

· Provide Council Offices with a paragraph on the Flight Tracking Data System Program.

(f) Status Report on Aging Services Master Plan. Attachment: Memorandum from Director Parks, Recreation and Neighborhood Services Sara L. Hensley, dated November 6, 2002, transmitting said report.

The Committee accepted the report, with the following directives to Staff:

· Return to the January Education, Neighborhoods, Youth, and Seniors Committee with a report on the budget for the Aging Services Master Plan.

(f) Status Report on Aging Services Master Plan. (Cont’d.)

· Send to all Committee members a copy of the Request For Quotation Outline.

· Provide Council Members Dando and Yeager a copy of the detailed work plan for the Aging Services Master Plan.

(g) Oral petitions - None.

(h) Adjournment - The Committee adjourned at 3:00 p.m.

5.1 Report of the Education, Neighborhoods, Youth, and Seniors Committee – November 18, 2002 (Cont’d.)

Council Member Chavez, Chair

Discussion/Action: Upon motion by Council Member Chavez, seconded by Council Member Williams and unanimously carried, the Education, Neighborhoods, Youth, and Seniors Committee Report and actions of November 18, 2002, were accepted. Vote: 11-0-0-0.

5.2 Approval of the Stonegate Park Master Plan Amendment to include the addition of a skate park facility. CEQA: Negative Declaration, PP02-10-288. Council District 7. (Parks, Recreation and Neighborhood Services)

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated November 13, 2002, recommending Council approve the Stonegate Park Master Plan Amendment to include the addition of a skate park facility.

Discussion/Action: Upon motion by Council Member Shirakawa, Jr., seconded by Council Member Chavez and unanimously carried, the Stonegate Park Master Plan Amendment was approved. Vote: 11-0-0-0.

5.3 Report on bids and award of contract for the Kirk, Meadows, and Parkview I Play Area Renovations Project to the low bidder, Community Playground, Inc., for the base bid and Add Alternate Nos. 1 and 2 in the amount of $670,800, and approval of a contingency in the amount of $34,000. CEQA: Exempt, PP02-09-264. Council Districts 9 and 10. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen dated November 27, 2002, reporting bids and recommending Council award said contract, with related contingency, to the low bidder, Community Playground, Inc.

Discussion/Action: Upon motion by Council Member Diquisto, seconded by Council Member Dando and unanimously carried, the award of said contract to the low bidder, Community Playground, Inc., was approved and its execution authorized. Vote: 11-0-0-0.

5.4 Adoption of the Mayfair Strong Neighborhoods Improvement Plan, as the shared vision for revitalization of the area. CEQA: Resolution No. 65469, PP02-10-307. Director of Planning, Building and Code Enforcement and Planning Commission recommend approval (6-0-0-1). Council District 5. SNI: Mayfair. (Planning, Building and Code Enforcement)

Documents Filed: (1) Memorandum from Director of Planning, Building and Code Enforcement Stephen M. Haase, Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, and Deputy Director of Redevelopment Agency Jay Marcus, dated November 13, 2002, recommending Council approve the Mayfair Strong Neighborhood Improvement Plan; authorize the Administration to direct the City Departments and Agencies with implementation responsibilities; and encourage Mayfairproperty owners, residents and community members to implement the recommendations. (2) Supplemental memorandum from Director of Planning, Building and Code Enforcement Stephen M. Haase, dated November 21, 2002, recommending adoption of the Mayfair Strong Neighborhoods Improvement Plan. (3) Supplemental memorandum from Director of Planning, Building and Code Enforcement Stephen M. Haase, dated December 2, 2002, recommending Council approve the Mayfair Strong Neighborhoods Improvement Plan with additional modifications, included with attached Neighborhood Improvement Plan Report.

Discussion/Action: Rachel Rivera spoke in favor of the Mayfair Strong Neighborhoods Improvement Plan. Upon motion by Council Member Campos, seconded by Council Member Shirakawa, Jr., and unanimously carried, the Mayfair Strong Neighborhoods Improvement Plan was adopted as the shared vision for revitalization of the area. Vote: 11-0-0-0.

5.5 Adoption of the K.O.N.A. Strong Neighborhoods Improvement Plan, as the shared vision for revitalization of the area. CEQA: Resolution No. 65459, PP02-11-330. Director of Planning, Building and Code Enforcement and Planning Commission recommend approval (7-0-0). Council Districts 7 and 8. SNI: K.O.N.A. (Planning, Building and Code Enforcement)

Documents Filed: (1) Memorandum from Director of Planning, Building and Code Enforcement Stephen M. Haase, Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, and Deputy Director of Redevelopment Agency Jay Marcus, dated November, 13, 2002 transmitting the Staff report and recommending Council (a) approve the King-Oscala Neighborhood Area (K.O.N.A.) Strong Neighborhoods Improvement Plan as the City/community vision for the future of K.O.N.A.; (b) authorize the Administration to direct the City Departments and Agencies with implementation responsibilities to begin their respective activities, including the general oversight of the implementation of the Plan by the Redevelopment Agency, and (c) encourage the K.O.N.A. property owners, resident, and community members to dedicate their time, energy and resources to implement the recommendations of the Plan and continue their community building activities. (2) Memorandum from Secretary of the Planning Commission Stephen M. Haase, dated November 21, 2002 recommending Council approve the K.O.N.A. Strong Neighborhoods Improvement Plan.