MINUTES OF THE CITY COUNCIL

SAN JOSE, CALIFORNIA TUESDAY, FEBRUARY 18, 2003

The Council of the City of San José convened in Regular Session at 9:32 a.m. in Council Chambers at City Hall.

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

Absent: Council Members: Yeager (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 the case of Bautista v. City of San José; (B) to confer with Legal Counsel regarding anticipated litigation (a) of a matter where there is significant exposure to litigation pursuant to subsection (b) of Section 54956.9 of the Government Code and (2) to discuss one matter in the initiation of litigation pursuant to subsection (c) of Section 54956.9 of the Government Code.

By unanimous consent, Council reconvened from Closed Session and recessed at 10:42 a.m. and reconvened at 1:32 p.m. in Council Chambers, City Hall.

Present: Council Members: Chavez, Cortese, Chirco, Dando, Gregory, Reed, Willliams; Gonzales.

Absent: Council Members: LeZotte, Yeager (excused).

Invocation

The Dynasty Step Team from Santa Teresa High School gave a dance-step performance in honor of African American History Month. The team was instructed by Michael Payne-Alex and led by Step Team Captain, Malika Williams and Santa Teresa High School’s Black Student Union President, Shalandra Taylor. (District 2)

Pledge of Allegiance

Nicole Alameda from Santa Teresa High School’s Dynasty Step Team led the Pledge of Allegiance.

Orders of the Day

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

CEREMONIAL ITEMS

1.1 Presentation of a proclamation declaring February 2003, as Silicon Valley Reads Month. (Library)

Documents Filed: None.

Discussion/Action: Mayor Gonzales presented a proclamation to Library Director, Jane Light and to Karen Story, with the San Jose Library Foundation. Library Director Light stated that the program’s first year was successful and credited the San Jose Library Foundation and the Santa Clara County Office of Education and their partnership with Adobe Software Corporation on the e-Book experimental literacy program. Karen Story thanked the Mayor and City Council for the recognition and invited the audience to visit the program’s website, www.siliconvalleyreads.org and to participate in the program.

CONSENT CALENDAR

Upon motion by Council Member Dando, seconded by Council Member Chavez, and unanimously carried, the Consent Calendar was approved and the below listed items taken as indicated. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

2.2 Final adoption of ordinances:

(a) ORD. NO. 26820 – Amends Section 20.90.150 of Chapter 20.90 of Title 20 of the San José Municipal Code to clarify the conditions under which a conditional use permit for parking facilities can be allowed in residential districts and amending Sections 20.100.400 and 20.100.500 of Chapter 20.100 of Title 20 of the San José Municipal Code to allow the Director of Planning, Building and Code Enforcement to extend the term of development permits through an adjustment.

(b) ORD. NO. 26821 – Amends Sections 13.28.130 and 13.28.190 of Chapter 13.28 of Title 13 of the San José Municipal Code, and adds a new Section 13.28.195, to allow licensed contractors to trim, prune, or cut street trees and to allow residents to trim, cut, or prune street trees in emergency situations without the necessity of obtaining a permit from the department of transportation, and to impose, prior to the sale or other transfer of residential real property, notification obligations on the selling or transferring property owner to the purchaser or transferee regarding the condition and existence of street trees on the residential property, to take effect on July 1, 2003.

(c) ORD. NO. 26823 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Environmental Resource Recovery, Inc., DBA Valley Recycling.

(d) ORD. NO. 26824 – Rezones certain real property situated on the south side of Woodard Road, approximately 150 feet easterly of Starview Drive to A(PD) Planned Development Zoning District. PDC 02-068

(e) ORD. NO. 26825 – Prezones certain real property situated on the south side of Tully Road approximately 500 feet easterly of Tenth Street to CN Commercial Neighborhood Zoning District. C 02-099

(f) ORD. NO. 26826 – Rezoning certain real property situated at the southwest corner of Custer Drive and Curtner Avenue (2535 Custer Drive) to A(PD) Planned Development Zoning District. PDC 02-034

(g) ORD. NO. 26827 – Rezoning certain real property situated at the north side of Kinney Drive, approximately 220 feet westerly of North Seventh Street (271 Kinney Drive) to LI Light Industrial Zoning District. C 02-094

Documents Filed: Proofs of Publication of Notice of Public Hearings, all dated February 11, submitted by the City Clerk.

Discussion/Action: Ordinance Nos. 26820, 26821, 26823, 26824, 26825, 26826 and 26827 were adopted. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

2.3 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2002-2003 #23, and authorization for the Director of General Services to execute the purchase orders. CEQA: Refer to memo for CEQA designations. (General Services)

Documents Filed: Memorandum from Director of General Services, Jose Obregon, dated January 29, 2003, recommending approval of said open purchase orders.

Discussion/Action: The award of open purchase orders List #23 was approved and the Director of General Services authorized to execute the purchase orders. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

2.4 Approval to reject the sole proposal received for the removal, transportation, and beneficial reuse of biosolids, and authorization for the Director of General Services to re-solicit proposals. CEQA: Not a Project. (General Services)

Documents Filed: (1) Memorandum from Director of General Services, Jose Obregon, dated January 29, 2003, recommending approval to reject the sole proposal for said services, and authorization for the Director of General Services to re-solicit proposals. (2) Letter from the Treatment Plant Advisory Committee dated February 13, 2003, stating concurrence with the Staff recommendation.

Discussion/Action: The rejection of the sole proposal received for the removal, transportation, and beneficial reuse of biosolids was approved and the Director of General Services authorized to re-solicit proposals. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

2.5 Approval of an award for a sole source purchase of one plasma-mass spectrometer to Perkin Elmer Instruments for a total cost of $176,809.64, including tax and delivery, and authorization for the Director of General Services to execute the purchase order. CEQA: Not a Project. (General Services)

Documents Filed: (1) Memorandum from Director of General Services, Jose Obregon, dated January 29, 2003, recommending award of said sole source purchase to Perkin Elmer Instruments and authorization for the Director of General Services to execute the purchase orders. (2) Letter from the Treatment Plant Advisory Committee dated February 13, 2003, stating concurrence with the Staff recommendation.

Discussion/Action: The award of said sole source purchase, pursuant to Subsection 4.12.020 of the San José Municipal Code was approved and the Director of General Services was authorized to execute the purchase order. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

2.6 Adoption of a resolution authorizing the City Manager to negotiate and execute a ten-month extension of the sublease agreement with Cisco Systems Inc., for office space on the second floor of the building owned by the Irvine Community Development Company located at 430 N. McCarthy Boulevard, Milpitas, California, at a sublease rate of $34,450 per month plus prorated utilities. CEQA: Not a Project. (General Services)

Documents Filed: (1) Memorandum from Director of General Services, Jose Obregon, dated January 29, 2003, recommending adoption of said resolution authorizing the City Manager to negotiate and execute an extension of the sublease agreement with Cisco Systems Inc. (2) Letter from the Treatment Plant Advisory Committee, dated February 13, 2003, stating concurrence with the Staff recommendation.

Discussion/Action: Resolution No. 71411, entitled: “A Resolution of the Council of the City of San José Delegating Authority to the City Manager to Negotiate and Execute a Ten Month Sublease with Cisco Systems, Inc. for Office Space at 430 N. McCarthy Boulevard, Milpitas, California”, was adopted. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

2.7 Adoption of an appropriation ordinance amendment in the Library Benefit Assessment District Fund for the eBranch Project in the amount of $205,000. CEQA: Not a Project. (Library/City Manager’s Office)

Documents Filed: Memorandum from Library Director Jane Light and Budget Director Larry D. Lisenbee, dated January 29, 2003, recommending adoption of said appropriation ordinance amendments in the Library Benefit Assessment District Fund.

Discussion/Action: William Garbett spoke in opposition of said ordinance amendment. Ordinance No. 26834, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26674 to Appropriate Moneys in the Library Benefit Assessment District Fund for the E-Branch Project; And Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, was adopted. Vote: 11-0-0-0.

2.8 Adoption of the following appropriation ordinance amendments in the Parks and Recreation Bond Projects Fund:

(a) Establish a new appropriation for Terrell Park Play Area Renovation project in an amount of $287,000;

(b) Increase the Hillview Park Play Area Renovation and Restroom appropriation by $35,000;

(c) Decrease the Los Gatos Creek Trail – Lincoln to Auzerais & Willow to Pedro appropriation by $1,970,000; and

(d) Increase the Ending Fund Balance by $1,648,000.

CEQA: Not a Project. (Parks, Recreation and Neighborhood Services/City Manager’s Office)

Documents Filed: None.

Discussion/Action: This item was deferred to February 25, 2003.

2.9 Report on bids and award of contract for the Underground Street Light System for the Oak and Edwards Project to the low bidder, Pacific Electric Co., in the amount of $101,900, and approval of a contingency in the amount of $10,190. CEQA: Exempt, PP02-08-225. Council District 3. SNI: Washington/Guadalupe. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated January 29, 2003, recommending award of said contract, with related contingency, to the low bidder, Pacific Electric Co.

Discussion/Action: The award of said contract with related contingency, to the low bidder, Pacific Electric Co., was approved and its execution authorized. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

2.10 Approval of an ordinance amending Chapter 3.36 of Title 3 of the San José Municipal Code to make technical corrections to the provisions of the Police and Fire Department Retirement Plan relating to plan-approved domestic relations orders. CEQA: Exempt, PP03-01-028. (Retirement Services)

Documents Filed: Memorandum from Director of Retirement Services Edward F. Overton, dated January 29, 2003, recommending approval of said ordinance making technical corrections to plan-approved domestic relations orders.

Discussion/Action: Ordinance No. 26835, entitled: “An Ordinance of the City of San José Amending Chapter 3.36 of Title 3 of the San José Municipal Code to Make Technical Corrections to the Provisions Relating to Plan Approved Domestic Relations Orders in the Police and Fire Department Retirement Plan”, was passed for publication. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

2.11 Approval of an ordinance amending Sections 3.36.1640, 3.36.1280, 3.36.1660, and 3.36.1670 of Chapter 3.36 of Title 3 of the San José Municipal Code to provide monthly benefits for deferred vested members who separate from City service on or after February 4, 2000, for surviving spouses of such deferred vested members and for surviving spouses of non-service disability retirees. CEQA: Exempt, PP03-01-030. (Retirement Services)

Documents Filed: Memorandum from Director of Retirement Services Edward F. Overton, dated January 29, 2003, recommending approval of said ordinance amending sections of Chapter 3.36 of Title 3 of the San José Municipal Code.

Discussion/Action: Ordinance No. 26836, entitled: “An Ordinance of the City of San José Amending Section 3.36.1640 of Chapter 3.36 of Title 3 of the San José Municipal Code to provide Comparable Monthly Benefits for Former Members of the Police and Fire Department Retirement Plan who Separate From City Service on or After February 4, 2000, and Amending Sections 3.36.1280, 3.36.1660 and 3.36.1670 to provide Comparable and Surviving Spouse Benefits for Survivors of Such Former Members and for Survivors of Members who Retire for Nonservice-Connected Disability”, was passed for publication. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

2.12 Approval of an ordinance amending Section 3.36.910 of Chapter 3.36 of Title 3 of the San José Municipal Code to repeal the requirement of Retirement Board approval before an individual under the age of fifty-five and retired for Disability may move out of state. CEQA: Exempt, PP03-01-029. (Board of Administration Police and Fire Retirement Plan)

Documents Filed: Memorandum from the Board of Administration Police and Fire Retirement Plan, dated January 29, 2003, recommending approval of said ordinance amending Chapter 3.36 of Title 3 of the San José Municipal Code.

Discussion/Action: Ordinance No. 26837, entitled: “An Ordinance of the City of San José Amending Chapter 3.36 of Title 3 of the San José Municipal Code to Repeal the Police and Fire Department Retirement Plan Requirement that a Person who is Retired for Disability and is Under Age 55 Obtain Retirement Board Approval to Move Out of State”, was passed for publication. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

2.13 Approval of two appointments to the Arts Commission. (Mayor)

(Rules Committee referral 2/12/03)

Documents Filed: Memorandum from Mayor Gonzales and Council Member Williams, dated February 11, 2003, recommending approval of the appointments of Max Crumley and Dennis Martin to the Arts Commission.

Discussion/Action: The appointment of Max Crumley and Dennis Martin to the Arts Commission was approved. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

2.14 Report on bids and approval to reject all bids for the River Glen Park New Restroom Building Project and authorization for the Director of Public Works to re-advertise and re-bid the project with a revision in project scope. CEQA: Exempt, PP02-12-365. Council District 6. (Public Works)

(Rules Committee referral 2/12/03)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated February 12, 2003, recommending approval to reject all bids for said project and authorization for the Director of Public Works to re-advertise and re-bid the project with a revision in project scope.

Discussion/Action: The rejection of all bids for the River Glen Park New Restroom Building Project was approved and the Director of Public Works authorized to re-advertise and re-bid the project. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

2.15 Report on bids and approval to reject all bids for the Biebrach Park Play Area Renovation and Restroom Replacement Project and authorization for the Director of Public Works to re-advertise and re-bid the project with a revision in project scope. CEQA: Exempt, PP02-09-259. Council District 3. SNI: Gardner. (Public Works) (Rules Committee referral 2/12/03)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated December 4, 2002, recommending award of said contract, with related contingency, to the low bidder. (2) Memorandum from Director of Public Works Katy Allen, dated February 12, 2003, recommending approval to reject all bids for said project and authorization for the Director of Public Works to re-advertise and re-bid the project with a revision in project scope.

Discussion/Action: The rejection of all bids for said project was approved and the Director of Public Works authorized to re-advertise and re-bid the project. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – February 5, 2003

Vice Mayor Dando, Chair

Documents Filed: Rules Committee Report of February 5, 2003.

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

(b) City Council

(1) Review February 18, 2003 Draft Agenda

The Committee recommended approval of the February 18, 2003 City Council agenda.

(b) City Council

(2) Add New Items to February 11, 2003 Amended Agenda

The Committee recommended the following addition to the February 11, 2003 City Council agenda.

(3) Staff Reports Outstanding. Attachment: Report from City Manager dated February 4, 2003 listing no reports outstanding for the February 11, 2003 Council agenda.

The Committee noted and filed the City Manager’s report listing no staff reports outstanding for the February 11, 2003 Council agenda.

(c) City Council Committees. Attachment: Two documents from City Manager Borgsdorf: February 2003 calendar showing the dates and number of reports due for each Council Committee meeting; and matrix for February through June listing the number of reports per committee per month.

The Committee directed the Council Committee Chairs to review workplans at the first meeting and refine them as necessary.

(1) Approve Committee Workplans

(a) All Children Achieve. Attachment: Memorandum from Mayor Ron Gonzales and Council Member Yeager, dated February 5 2003, recommending approval of the All Children Achieve Committee workplan.

The Committee recommended approval of the All Children Achieve Committee workplan for the period February through June 30, 2003 and setting its meeting schedule on the second Thursday of each month at 1:30 p.m. in Room 106 (except as noted in the workplan).

(b) Building Strong Neighborhoods. Attachment: Memorandum from Mayor Gonzales and Council Member Chavez, dated February 5, 2003, recommending approval of the building Strong Neigh-borhoods Committee workplan.

The Committee recommended approval of the Building Strong Neighborhoods Committee workplan for the period February through June 30, 2003 and setting its meeting schedule on the third Monday of each month at 1:30 p.m. in Room 204. One special meeting will be held on Wednesday, February 26, 2003 at 10 a.m. in Room 204.

(c) City Council Committees

(1) Approve Committee Workplans

(c) Building Better Transportation. Attachment: Memorandum from Mayor Gonzales and Council Member Cortese, dated February 4, 2003, recommending approval of the Building Better Transpor-tation Committee workplan.

The Committee recommended approval of the Building Better Transportation Committee workplan for the period March through June 30, 2003 and setting its meeting schedule on the first Monday of each month at 1:30 p.m. in Room 204; and directed a Special Meeting changed from February 10, 2003 to a date to be determined.

(d) Driving a Strong Economy. Attachment: Memorandum from Mayor Gonzales and Council Member Williams, dated February 3, 2003, recommending approval of the Driving a Strong Economy committee workplan.

The Committee recommended approval of the Driving a Strong Economy Committee workplan for the period February through June 30, 2003 and setting its meeting schedule on the second Wednesday of each month at 2:30 p.m. in Room 204.

(e) Making Government Work Better. Attachment: Memorandum from Mayor Gonzales and Council Member Williams, dated February 3, 2003, recommending approval of the Making Government Work Better Committee workplan.

The Committee recommended approval of the Making Government Work Better workplan for the period February through June 30, 2003 and setting its meeting schedule on the second Wednesday of each month at 2:30 p.m. in Room 204.

(f) Rules Committee. Attachment: Memorandum from Mayor Gonzales and Vice Mayor Dando, dated January 30, 2003, recommending approval of the Rules Committee workplan.

The Committee recommended approval of the Rules Committee’s workplan for the period February through June 30, 2003 and setting its meeting schedule each Wednesday of the month at 2:00 p.m. in Room 204.

(d) Meeting Schedules – There were none.

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

(f) Boards, Commissions and Committees

(1) Project Diversity Screening Committee. Attachments: Memoranda from City Clerk Patricia O’Hearn, dated January 9, 2003, recommending that the Mayor’s Office appoint six individuals to the Project Diversity Screening Committee and designate the Chair of the Committee, and that Council Members nominate two individuals to serve on the Committee; from Council Member Williams, dated January 24, 2003, nominating David Wilkins to the Committee; from Council Member Chavez, dated January 29, 2003, nominating Victoria Taketa and Joel Wyrick to the Committee; from Council Member Reed, dated January 28, 2003, recommending Elizabeth Brierly for appointment to the Committee; from Council Member Campos, dated January 28, 2003, nominating Alofa Talivaa and Patricia Lamar to the Committee; from Council Member Campos, dated February 5, 2003, giving background information on her nominee, Patricia Lamar; from Council Member Gregory, dated January 29, 2003, nominating Madison Nguyen and Alfredo Benavides to the Committee; from Council Member Cortese, dated January 29, 2003, nominating Ike White to the Committee; and from Council Member Chirco, dated February 5 2003, nominating Rebecca Hughes to the Committee.

The Committee recommended appointment of David Wilkins, District 2, and Victoria Taketa, District 3, for two-year terms ending December 31, 2004; the Committee also recommended that in 2004, when appointments are again made to the Project Diversity Screening Committee, a different format for appointing as well as a different number of members be considered; the Committee directed staff to forward all the remaining nominees to the Mayor’s Office, indicating Committee support for appointments from District 5, District 7, and District 9.

(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 2:40 P.M.

Discussion/Action: Upon motion by Council Member Dando, seconded by Council Member Chavez, and unanimously carried, the Rules Committee Report and actions of February 5, 2003, were approved. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

3.4 Adoption of the following resolutions in connection with the formation of Community Facilities District No. 10 (Hassler – Silver Creek):

(a) A resolution of intention to form Community Facilities District No. 10 (Hassler – Silver Creek), to authorize the levy of special taxes pursuant to the City of San José Community Facilities District Financing Procedure, to set a public hearing on Tuesday, April 1, 2003 at 1:30 p.m. regarding formation of the District and authorizing other related actions.

(b) A resolution of intention to incur bonded indebtedness of the Proposed Community Facilities District No. 10 (Hassler – Silver Creek) pursuant to the City of San José Community Facilities District Financing Procedure in an amount not to exceed $15,000,000.

CEQA: Resolution No. 64913, PP02-11-347. Council District 8. (Finance/Public Works)

Documents Filed: (1) Memorandum from Director of Finance Scott P. Johnson and Director of Public Works Katy Allen, dated January 29, 2003, recommending adoption of said resolutions in connection with the formation of Community Facilities District No. 10 (Hassler - Silver Creek). (2) Supplemental memorandum from Director of Finance Scott P. Johnson and Director of Public Works Katy Allen, dated February 11, 2003, transmitting Attachment C- Rate and Method of Apportionment of Special Taxes, as referenced in Memorandum dated January 29, 2003, regarding the proposed formation of the Community Facilities District No. 10 to update Attachment A – Proposed Boundaries for CFD No. 10 with final site plan containing complete tract identification. (3) Proof of Publications of Notice of Public Hearings, executed on March 21, 2003, submitted by the City Clerk.

Discussion/Action: Upon motion by Council Member Cortese, seconded by Council Member Williams, and unanimously carried, Resolution No. 71412, entitled: “A Resolution of the City Council of the City of San José Declaring its Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes Pursuant to the City of San José Community Facilities District Financing Procedure”, and Resolution 71413, entitled: “A Resolution of the City Council of the City of San José Declaring its Intention to Incur Bonded Indebtedness of the Proposed City of San José Community Facilities District No. 10 (Hassler – Silver Creek) Pursuant to the City of San José Community Facilities District Financing Procedure”, were adopted. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

3.5 Approval of changes to the Project Diversity Screening Committee process. (Mayor)

(Rules Committee referral 2/12/03)

Documents Filed: Memorandum from Mayor Gonzales, Vice Mayor Dando, and Council Members Campos and Yeager, dated February 13, 2003, recommending the following amendments of the project Diversity Screening Committee process for reviewing and recommending applicants to City boards and commissions: (a) the Committee should submit the entire list of both recommended and non-recommended board and commission applicants to the Rules Committee for consideration for appointment, (b) this list should also include a full explanation of the reasons why applicants were recommended and a brief summary of why applicants were not recommended, (c) the proposed recommendation should be implemented immediately.

Discussion/Action: Council Member Gregory stated his support of the recommendation and stressed the importance of informing the Project Diversity Committee he wanted to verify the reasoning behind the changes to the process. Upon motion by Council Member Dando, seconded by Council Member Chavez, and unanimously carried, the memorandum, dated February 13, 2003, from Mayor Gonzales, Vice Mayor Dando, Council Members Campos and Yeager recommending amendments to the Project Diversity Screening Committee was approved. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

RECREATION & CULTURAL SERVICES

5.2 (a) Adoption of a resolution:

(1) Approving a $425,000 grant from the State Resources Agency for the Coyote Creek Trail/Selma Olinder Park under River Protection and Parkway Grants Projects of the Safe Drinking Water, Clean Water, Watershed Protection and Flood Protection Bond Act of 2000 (Proposition 13);

(2) Authorizing the City Manager to negotiate and execute all necessary documents relating to the grant funding agreement.

(b) Appointing the Parks, Recreation and Neighborhood Services Department as the lead agency for the City.

CEQA: Negative Declaration, PP00-10-147. Council District 3. SNI: University/Five Wounds/Brookwood Terrace. (Parks, Recreation and Neighborhood Services)

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services Sara L. Hensley, dated January 29, 2003, recommending: (a) Adoption of said resolution approving a grant from the State Resources Agency; (b) Authorizing the City Manager to negotiate and execute all necessary documents relating to the grant funding agreement; and (c) Appointing the Parks, Recreation and Neighborhood Services Department as the lead agency for the City.

Discussion/Action: Upon motion by Council Member Chavez, seconded by Vice Mayor Dando, and unanimously carried, Item 5.2(b) was dropped and Resolution No. 71414, entitled: “A Resolution of the Council of the City of San José Accepting Grant Funding From the State Resources Agency for the Coyote Creek Trail/Selma Olinder Park, and Authorizing the City Manager to Negotiate and Execute all Related Documents”, was adopted. Vote: 9-0-2-0. Absent: LeZotte, Yeager.

5.3 Approval of a master agreement with Royston Hanamoto Alley & Abey, Inc. for design services for the Coyote Creek Trail Project, in an amount not to exceed $300,000, for an agreement term through December 31, 2006. CEQA: Not a Project. Council District 7. SNI: Tully/Senter and Rockspring. (Public Works)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated January 29, 2003, recommending approval of said master agreement with Royston Hanamoto Alley & Abey, Inc. for design services for the Coyote Creek Trail Project.

Discussion/Action: Council Member Gregory asked if the Coyote Creek Trail Project plan included the extension of the trail project to Kelly Park and to which section of Kelly park would the trail stop. Director of Parks, Recreation & Neighborhood Services Sara Hensley stated the Trail Project would end across from the Tully Ball Fields and there were no formal designs within the plans that place the Trail Project through Kelly Park, and Staff is currently working with the community and Council Offices to develop the trail further. Council Member Gregory asked if plans are to begin with the Los Lagos Golf Course then extend to Tully Road, and if there was a separate effort to extend from Tully Road to Kelly Park. Director Hensley stated the route through Kelly Park would be another branch of the park chain, but Staff is still deciding whether the Trail Project would go around the side of the Vietnamese Heritage Garden or would align with the trail heading north through the park side of the trail, and stated there was no formal funding for the trail extending through Kelly Park. Council Member Gregory asked Staff if the reasoning for not extending the trail through Kelly Park is due to funding or public input. Director Hensley stated the extension of the trail through Kelly Park will not continue until additional input as to the best trail alignment and the funding and public input issues are addressed. Council Member Chavez suggested Staff encourage community involved in this project to open communications and assist in resolving any issues of the adjoining SNI communities. Upon motion by Council Member Gregory, seconded by Council Member Chavez, and unanimously carried, the Master Agreement with Royston Hanamoto, Alley & Abbey, Inc. for the Coyote Creek Trail Project was approved. Vote: 11-0-0-0.

5.4 Approval of a second amendment to the agreement with Callander Associates Landscape Architecture, Inc. for consultant services for the Guadalupe Creek Trail Master Plan Project, extending the term from March 31, 2003 to October 31, 2004, and increasing the total compensation by $376,200 from $337,000, for a total agreement amount of $713,200. CEQA: Not a Project. (Public Works)

(Rules Committee referral 2/12/03)

Documents Filed: Memorandum from Director of Public Works Katy Allen, dated February 11, 2003, recommending approval of a second amendment to the said agreement with Callander Associates Landscape Architecture, Inc. for consultant services for the Guadalupe Creek Trail Master Plan Project.

Discussion/Action: Vice Mayor Dando suggested Staff consider the addition of a bridge connecting one side of the park to the other to allow community access to light rail facilities. Upon motion by Vice Mayor Dando, seconded by Council Member Chavez, and unanimously carried, the second amendment to said agreement with Callander Associates Landscape Architecture, Inc., was approved. Vote: 11-0-0-0.

JOINT COUNCIL/REDEVELOPMENT AGENCY

The Redevelopment Agency Board was convened at 1:57 p.m. to consider Item 10.1 in a Joint Session.

10.1 Adoption of resolutions to:

(a) Approve an Amendment to the FY 2002-03 Annual Action Plan to include land acquisition, demolition, hazardous materials remediation, and related activities for the Story and King Retail Project located at the southeast and southwest corners of Story and King Roads.

(b) Authorize the City to submit a HUD Section 108 Loan Guarantee application in the amount of $18,000,000, and to execute any agreement with the federal government related to the $2,000,000 Brownfields Economic Development Initiative Grant to assist with the land acquisition, demolition, hazardous materials remediation, and related activities for the Story and King Retail Project.

(c) Approve a cooperation agreement between the City and the Agency for the purpose of accepting and administering the Section 108 Loan.

CEQA: Negative Declaration, PP02-12-387. (City Manager's Office/Redevelopment Agency)

Documents Filed: (1) Memorandum from City Manager Del Borgsdorf and Redevelopment Agency Executive Director Susan F. Shick, dated January 14, 2003, recommending adoption of said resolution to: (a) Approve said Amendment to the FY 2002-03 Annual Action Plan, (b) Authorize the City to submit a HUD Section 108 Loan Guarantee application and to execute any agreement with the federal government related to the Brownfields Economic Development Initiative Grant, and (c) Approve a cooperation agreement between the City and Agency for the purpose of accepting and administering the Section 108 Loan. (2) Memorandum from Council Members Campos and Gregory, dated February 18, 2003, recommending adoption of Staff recommen-dation, dated January 14, 2003.

Discussion/Action: William Garbett spoke in opposition to the proposal. Upon motion by Council Member Campos, seconded by Council Member Gregory, and carried, Resolution No. 71415, entitled: “A Resolution of the City Council of the City of San José Authorizing Submission of a Section 108 Loan Guarantee Application and Amended Fiscal Year 2002-2003 Annual Action Plan to the United States Department of Housing and Urban Development and Approving a Cooperation Agreement Between the City of San José and the Redevelopment Agency of the City of San José Providing for the Assignment, Administration and Repayment of the Section 108 Loan Funds” and Redevelopment Resolution Nos. 5391 and 5392, were adopted. Vote: 8-1-2-0. Noes: Dando. Absent: LeZotte, Yeager.

The Redevelopment Agency Board portion of the meeting adjourned at 2:01 P.M.

Notice of City Engineer’s Pending Decision on Final Maps

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

Tract	Location	Council District	Developer	Lots/Units	Type
9477	S/E Fruitdale Ave. and Southwest Expwy.	6	Southwest Expwy. Investors, LP	14	Condominium

Open Forum

Ross Signorino spoke on the City’s budgetary matters.

RECESS/RECONVENE

The City Council recessed at 2:03 p.m. and reconvened at 7.03 p.m. Council Chambers, City Hall.

Present: Council Members - Campos, Chavez, Cortese, Chirco, Dando, Gregory, Reed, Williams; Gonzales.

Absent: Council Members - Yeager (excused)

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

PUBLIC HEARINGS

11.1 PUBLIC HEARING ON CONFORMING CONVENTIONAL REZONING of the property located on the southeast and southwest corners of Story and South King Roads (1604 Story Road), from CN Neighborhood Commercial and CP Pedestrian Commercial Zoning Districts to CP Pedestrian Commercial and CN Neighborhood Commercial Zoning Districts, to facilitate future development of properties on a 26.7 gross acre site consistent with the City’s General Plan (San José Redevelopment Agency Initiated). CEQA: Resolution No. 64589. Director of Planning, Building, and Code Enforcement and Planning Commission recommend approval (6-0-1).

C 02-088 – Districts 5 and 7

Documents Filed: (1) Memorandum from Council Members Campos and Gregory, dated February 18, 2003, recommending approval of said Conforming Conventional Rezoning. (2) Memorandum from Planning Commission Secretary Stephen M. Haase, dated

January 30, 2003, stating the Planning Commission recommends approval of the proposed Conforming Conventional Rezoning. (3) Report of the Staff of the Planning, Building and Code Enforcement on Project File No. C02-088, dated January 16, 2003, recommending approval of the proposed Conforming Conventional Rezoning. (4) Memorandum from City Attorney Richard Doyle, dated February 10, 2003, clarifying that the proposed rezoning is not intended to cover APN 486-11-011, known as the Vu/Doan property, insofar as the General Plan designation for that site is Medium Low Density Residential. (5) Proofs of Publication of Notice of Public Hearing, dated January 10 and January 19, 2003, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the Public Hearing and there were no speakers on the issue. Upon motion by Council Member Campos, seconded by Council Member Gregory, and unanimously carried, the Public Hearing was closed, and Ordinance No. 26838, entitled: “An Ordinance of the City of San José Rezoning Certain Real Property Situated Southeast and Southwest Corners of Story and South King Roads to CP Commercial Pedestrian and CN Commercial Neighborhood Zoning Districts”, was passed for publication. Vote: 9-0-1-0. Absent: Yeager.

11.2 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the northeast corner of S. Third and E. William Streets, from R-M Multiple Residence Zoning District to A(PD) Planned Development Zoning District, to allow a 10-bed emergency homeless shelter; a 10-bed residential service facility with two resident staff; a 4,500 square-foot social services agency; a 850 square-foot community center/classroom space; and five multi-family attached residential units on 0.4 gross acre. (City of San José Redevelopment Agency, Owner; Emergency Housing Consortium, Developer). CEQA: Resolution No. 68839.

PDC 02-083 – District 3

Documents Filed: None.

Discussion/Action: This item was continued to March 4, 2003.

11.3 PUBLIC HEARING ON CONFORMING PLANNED DEVELOPMENT REZONING of the property located at the easterly side of Highway 101, approximately 1,000 feet northerly of Hellyer Avenue (4341 Silver Creek Rd.), from A(PD) Planned Development Zoning District to A(PD) Planned Development Zoning District, to allow up to 538 single-family detached and attached residences, an 18-hole golf course, and infrastructure on a 579.40 gross acre site. (Cerro Plata Associates, LLC, Owner; William Lyon Homes, Developer). CEQA: Addendum to Cerro Plata Resolution No. 64913. Director of Planning, Building and Code Enforcement recommends approval. No Planning Commission action required.

PDC 03-003 -District 8

Documents Filed: Report of the Staff of Planning, Building and Code Enforcement on Project File No. PDC03-003, dated January 29, 2003, recommending approval of said Conforming Planned Development Rezoning.

Discussion/Action: Mayor Gonzales opened the Public Hearing and there were no speakers on the issue. Upon motion by Council Member Cortese, seconded by Vice Mayor Dando, and unanimously carried, the Public Hearing was closed, and Ordinance No. 26839, entitled: “An Ordinance of the City of San José Rezoning Certain Real Property Situated on the Easterly Side of Highway 101, Approximately 1,000 Feet Northerly of Hellyer Avenue to A(PD) Planned Development Zoning District”, was passed for publication. Vote: 10-0-1-0. Absent: Yeager.

Adjournment

The Council of the City of San José adjourned at 7:05 P.M.

RON GONZALES, MAYOR

ATTEST

PATRICIA L. O’HEARN, CITY CLERK