MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, JANUARY 30, 2001

The Council of the City of San José convened in regular session at 9:30 a.m. in City Council Chambers at City Hall.

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

Absent: Council Members - None.

Vacant: District 5.

Upon motion unanimously adopted, Council recessed at 9:35 a.m. to a Closed Session in Room 600 to confer with Legal Counsel pursuant to Government Code Section 54956.9; under Subsection (a) to discuss existing litigation in the cases of (1) Bryant v. City of San José, (2) City of San José v. Morgan Hill Unified School District, (3) California Hearths and Homes, et al. v. City of San José, Monrreal v. City of San José, et al., to discuss anticipated litigation pursuant to Subsection (b) of Government Code Section 54956.9, in one matter involving significant exposure to litigation; and to confer with Labor Negotiator Pursuant to Government Code 54957.6: (1) City Negotiator; City Manager Designee Alex Gurza; Employee Organization: Municipal Employees Federation.

By unanimous consent, Council reconvened from the Closed Session and recessed at 10:45 a.m. and reconvened at 1:37 p.m. in the Council Chambers.

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

Absent: Council Members - None.

Vacant: District 5.

Invocation

The following students from Baker School—Andrian Galindo, Katarina Nguyen, Kendall Mack, Indira Bhattacharjee, Zach Smith, Colby Smith, Kyle Arrouzet, Sherwin Esfahani, Oshadi Jayasuria, Ashley Austrie-Brown, Kelsey Theriault, Jordan Sugimoto—ranging from the first through fifth grades, presented a musical skit from their “Peace Builders” program under the direction of Performing Arts Teacher Barbara Wong, accompanied by Principal Bitsey Stark and parents and parent volunteers.

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: 10-0-0-0-1. Vacant: District 5.

CEREMONIAL ITEMS

1.1 Presentation of plaques to Brendan Nwachukwu for 7 years 3 months service on the Advisory Commission on Rents; to Gerardo Aguilar for 4 years service on the Housing Advisory Commission; to Deborah Wade for 4 years service on the Housing Advisory Commission; and to Laura Winter for 3 years 7 months on the San José Appeals Hearing Board. (Mayor)

Documents filed: None.

Discussion/Action: Mayor Gonzales presented plaques to Brendan Nwachukwu for service on the Advisory Commission on Rents and to Deborah Wade for service on the Housing Advisory Commission; plaques will be sent to Gerardo Aguilar and Laura Winter, who were unable to be present.

1.2 Presentation of a commendation to Jim Reber, Executive Director, Greater San José Inner Games, for providing exceptional leadership to the program. (Shirakawa, Jr.)

(Rules Committee referral 1/24/01)

Documents filed: None.

Discussion/Action: This item was deferred to February 13, 2001.

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 items taken as indicated. Vote: 10-0-0-0-1. Vacant: District 5.

2.1 Final adoption of Ordinance 26196 – Adopts the Neighborhood Business Clusters Redevelopment Plan and makes certain findings.

[Deferred from 9/19/00 – Item 6b(4) et al., and 1/16/01 – Item 2.5]

Documents filed: None.

Discussion/Action: Deferred to February 6, 2001 to be heard with Item 10.1(a).

2.2 Final adoption of Ordinance 26197 - Amends the Julian-Stockton Redevelopment Plan, the Olinder Redevelopment Plan, the San Antonio Plaza Redevelopment Plan, the Rincon de Los Esteros Redevelopment Plan, the Pueblo Uno Redevelopment Plan, the Edenvale Redevelopment Plan, the Guadalupe-Auzerais Redevelopment Plan, the Market Gateway Redevelopment Plan, the Century Center Redevelopment Plan, the Alum Rock Avenue Redevelopment Plan, the East Santa Clara Street Redevelopment Plan, the Almaden Gateway Redevelopment Plan, the Story Road Redevelopment Plan, The Alameda Redevelopment Plan, the West San Carlos Street Redevelopment Plan, the Japantown Redevelopment Plan, the Monterey Corridor Redevelopment Plan, the Park Center Redevelopment Plan, the Civic Plaza Redevelopment Plan, and the Neighborhood Business Clusters Redevelopment Plan to effect the merger of said Redevelopment Project Areas and making certain findings.

[Deferred from 9/19/00 – Item 6b(5) et al., and 1/16/01 – Item 2.6]

Documents filed: None.

Discussion/Action: Deferred to February 6, 2001 to be heard with Item 10.1(b).

2.3 Final adoption of Ordinance 26282– Adds a new Section 23.02.215 to Chapter 23.02 of Title 23 of the San José Municipal Code to define a flat roof-top sign, and amends various Sections of Chapter 23.04, all of Title 23, to allow certain flat-mounted and flat roof-top signs on large buildings downtown, to allow skyline signs on certain buildings located downtown, and to allow certain signs on buildings adjacent to freeway off-ramps downtown.

Documents filed: Proof of publication of title of Ordinance No. 26282, executed on January 19, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26282 was adopted. Vote: 10-0-0-0-1. Vacant: District 5.

2.4 Final adoption of Ordinance 26283 – Rezones certain real property situated on the northeast corner of Alum Rock Avenue and José Figueres Avenue.

PDC 99-12-096

Documents filed: Proof of publication of title of Ordinance No. 26283, executed on January 23, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26283 was adopted. Vote: 10-0-0-0-1. Vacant: District 5.

2.5 Final adoption of Ordinance 26284 - Rezones certain real property situated on the southeast corner of Stevens Creek and Winchester Boulevards to A(PD) Planned Development. PDCSH 00-09-095

Documents filed: Proof of publication of title of Ordinance No. 26284, executed on January 23, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26284 was adopted. Vote: 10-0-0-0-1. Vacant: District 5.

2.6 Final adoption of Ordinance 26285 - Rezones certain real property situated on the southwest corner of Stevens Creek Boulevard and San Tomas Expressway. PDCSH 00-08-079

Documents filed: Proof of publication of title of Ordinance No. 26285, executed on January 23, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26285 was adopted. Vote: 10-0-0-0-1. Vacant: District 5.

2.7 Report on bids and award the purchase of five (5) 4,800-pound pickup trucks for the Department of General Services’ Park Maintenance to the low bidder, Melrose Ford, at a total cost of $78,364.05, including tax, and authorize the Director of General Services to execute the purchase order for:

(a) The immediate purchase of five (5) units; and

(b) Subsequent purchase of additional units at the same bid price, for one (1) year, without further Council action other than the appropriation of necessary funds.

(General Services)

Documents filed: Memorandum from Director of General Services, Steve S. Yoshino, dated January 8, 2001, recommending award of said purchase to the low bidder, Melrose Ford.

Discussion/Action: The award of said purchase to the low bidder, Melrose Ford was approved and its execution authorized. Vote: 10-0-0-0-1. Vacant: District 5.

2.8 Approval of a continuation agreement with Cooperative Personnel Services for professional consultant services related to Citywide hiring and training, increasing compensation by $111,000, from $175,000 to $286,000, and extending the term of the agreement from December 31, 2000 to December 31, 2001. (Human Resources)

Documents filed: Memorandum from Director of Human Resources, Nona Tobin, dated January 8, 2001, recommending approval of said continuation agreement with Cooperative Personnel Services.

Discussion/Action: The continuation agreement with Cooperative Personnel Services was approved and its execution authorized. Vote: 10-0-0-0-1. Vacant: District 5.

2.9 Adoption of a resolution:

(a) Initiating proceedings for an ordinance amending Chapter 20.90 of Title 20 of the San José Municipal Code to establish a parking management zone for the Alum Rock Village area;

(b) Setting a public hearing on March 6, 2001 at 7:00 p.m.; and,

(Planning, Building and Code Enforcement)

Documents filed: Memorandum from Director of Planning, Building and Code Enforcement, Nona Tobin, dated January 8, 2001, recommending adoption of said resolution.

Discussion/Action: Resolution No. 70135, entitled: “A Resolution of the Council of the City of San José Initiating Proceedings to Amend Chapter 20.90 of Title 20 of the San José Municipal Code to Establish a Parking Management Zone for the Alum Rock Village Area and Setting a Public Hearing for March 6, 2001 at 7:00 P.M. and Referring Said Ordinance to the Planning Commission for their Review, Recom-mendation and Comments”, was adopted. Vote: 10-0-0-0-1. Vacant: District 5.

2.10 Approval to reject all bids for the construction of the Old Oakland Road Storm Drain Pump Station Project, and authorization for the Director of Public Works to have the project advertised and rebid. CEQA: Exempt. (Public Works)

Documents filed: Memorandum from Acting Director of Public Works, Rajeev Batra, dated January 8, 2001, recommending approval to reject all bids for said project and authorization for the Director of Public Works to have the project advertised and rebid.

Discussion/Action: The rejection of all bids for said project was approved and the Director of Public Works authorized to readvertise and rebid the project. Vote: 10-0-0-0-1. Vacant: District 5.

2.11 Acceptance of the Fourth Quarter 2000 San José Arena Authority Ticket Distribution Program Report. (San José Arena Authority)

Documents filed: Memorandum from Chris Morrisey, Executive Director, San José Arena Authority, dated January 8, 2001, submitting the quarterly San José Arena Authority Ticket Distribution Report.

Discussion/Action: The Fourth Quarter 2000 San José Arena Authority Ticket Distribution Program Report was accepted. Vote: 10-0-0-0-1. Vacant: District 5.

2.13 Approval to amend the size and composition of the San José Taxicab Advisory Team as follows:

(a) Increase the total membership from 15 to 17 members to allow for one additional owner and one additional driver representative; and

(b) Appoint a representative of the Airport Commission to serve as a customer representative on the Team in lieu of the Downtown Business Association.

(City Manager’s Office)

(Rules Committee referral 1/24/01)

Documents filed: Memorandum from Assistant to the City Manager Cynthia Bojorquez, dated January 26, 2001, recommending approval to amend the size and composition of the San José Taxicab Advisory Team.

Discussion/Action: The proposed amendments to the San José Taxicab Advisory Team were approved. Vote: 10-0-0-0-1. Vacant: District 5.

2.14 Adoption of appropriation ordinance and funding sources resolution amendments in the Building and Structure Construction Tax Fund to provide funding for the Route 87 Landscaping project in the amount of $150,000. (City Manager’s Office)

(Orders of the Day)

Documents filed: Memorandum from Budget Director Larry D. Lisenbee, dated January 25, 2001, recommending approval of said appropriation ordinance and related revenue resolution amendments.

Discussion/Action: Ordinance No. 26287, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26141 to Appropriate Moneys in the Building and Structure Construction Tax Fund in the Amount of $150,000 for the Route 87 Landscaping Project; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, and Resolution No. 70136, entitled, “A Resolution of the City of San José Amending Resolution No. 69683 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2000-2001 to Adjust Revenues in the Building and Structure Construction Tax Fund”, were adopted. Vote: 10-0-0-0-1. Vacant: District 5.

END OF CONSENT CALENDAR

2.12 Adoption of an urgency ordinance to extend the period for acceptance of an extension of Ordinance No. 22128, granting a cable television franchise. (City Attorney’s Office)

(Rules Committee referral 1/24/01)

Documents filed: Two memoranda from Tom Manheim, Public Outreach Manager, dated January 29, 2001, providing the status of said negotiations to renew the cable franchise with Heritage Cablevision of California, formerly dba TCI of San José, now AT&T Broadband, and recommending approval of said ordinance.

Discussion/Action: Mayor Gonzales stated the people of San José deserve the same state-of-the-art systems which are being installed in other parts of Silicon Valley, and that these discussions have been under way too long and urged both sides to work more aggressively to resolve outstanding issues, conclude negotiations, and avoid the need for the City to invoke the formal renewal process. Council Member Williams requested Staff provide Council feedback relative to progress of the negotiations. Council Member Dando stated she concurs that negotiations need to be concluded and suggested if Staff is unable to conclude negotiations to the City’s satisfaction in a timely manner, that Staff come back to Council with recommendations for invoking the formal renewal process. Council Member Reed suggested Staff include in the negotiations the potential for utilizing existing facilities at Lick and Leigh High Schools for public and educational access. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, Ordinance No. 26288, entitled: “An Urgency Ordinance of the City of San José Approving an Extension of the Time Within Which an Acceptance of the Extension of Ordinance No. 22128, Granting a Nonexclusive Cable Television Franchise to Gill Industries, Inc., can be Provided from December 31, 2000 to February 1, 2001”, was adopted, and Staff was directed to expedite negotiations for a state-of-the-art cable television system and if unable to resolve outstanding issues in a timely fashion, to report back to Council with recommendations to invoke a formal renewal process, and to include in the negotiations the issue of establishing a public and education access at San José high schools with existing compatible facilities. Vote: 10-0-0-0-1. Vacant: District 5.

STRATEGIC SUPPORT SERVICES

3.1 Report of the Rules Committee – January 17, 2001

Vice Mayor Shirakawa, Jr., Chair

Documents filed: Rules Committee report of January 17, 2001.

(a) Redevelopment Agency

(1) Review January 30, 2001 Draft Agenda

(2) Add New Items to January 23, 2001 Amended Agenda

These Items were heard by the Redevelopment Agency Board.

(b) City Council

(1) Review January 30, 2001 Draft Agenda

The Committee approved the January 30, 2001 City Council agenda with one addition and one deletion.

(2) Add New Items to January 23, 2001 Amended Agenda

The Committee recommended one addition to the January 23, 2001 City Council agenda.

(1) Rules/Agency Rules Committee. Attachment: Memorandum from Mayor Gonzales and Vice Mayor Shirakawa, Jr., dated January 16, 2001, recommending approval of the Rules Committee workplan.

The Committee approved the Rules Committee workplan.

(2) Finance and Infrastructure Committee. Memorandum from Mayor Gonzales and Council Member Dando, dated January 16, 2001, recom-mending approval of the Finance and Infrastructure Committee workplan.

The Committee approved the Finance and Infrastructure Committee workplan, noting that the January 24^th meeting of the Finance and Infrastructure Committee will not be held and the items scheduled for January 24^th will be carried over to the February 14^th meeting.

(3) Economic Development and Environment Committee. Attachment: Memorandum from Mayor Gonzales and Council Member Williams, dated January 16, 2001, recommending approval of the Economic Development and Environment Committee workplan.

The Committee approved the Economic Development and Environment Committee workplan.

(4) Education, Neighborhoods, Youth, and Seniors Committee. Attachment: Memorandum from Mayor Gonzales and Council Member Chavez, dated January 17, 2001, recommending approval of the Education, Neighborhoods, Youth and Seniors Committee workplan.

The Committee approved the Education, Neighborhoods, Youth and Seniors Committee workplan.

(5) Ad Hoc Traffic Calming Advisory Committee. Attachment: Memo-randum from Council Member Reed, dated January 12, 2001, requesting deferral of this item.

The Committee deferred approval of the Ad Hoc Traffic Calming Advisory Committee’s workplan.

(d) Meeting Schedules

There were none.

(e) The Public Record. Attachment: (1) Memorandum from City Clerk Patricia L. O’Hearn, dated January 11, 2001, listing the items transmitted to the Administration and those items filed for the Public Record for the period January 3-9, 2001.

The Committee noted and filed the Public Record.

(f) Request to use Council General Funds by Council Member Dando for attendance at the League of California Cities’ Transportation, Communications and Public Works Policy Committee Meeting in San Diego, CA, November 15-17, 2001. Attachment: (1) Memorandum from Council Member Dando, dated November 1, 2001, requesting said travel approval. (2) Memorandum from City Clerk Patricia O’Hearn, dated January 11, 2001, summarizing Council General Travel Budget to date, pursuant to Council Policy 9-5.

The Committee approved Council Member Dando’s request to use Council General funds for attendance at the League of California Cities’ Transportation, Communications and Public Works Policy Committee Meeting in San Diego, CA., November 15-17, 2001.

(g) Council Referrals for Assignment to Appropriate Committee, Administration, or Council Appointee

There were none.

(h) Oral communications

None were presented.

(i) Adjournment

The meeting was adjourned at 2:15 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 January 17, 2001, were accepted. Vote: 10-0-0-0-1. Vacant: District 5.

3.4 Report on Request for Quotation and award of contract for Removal and Installation of Engine Monitoring and Generator Control Panels to Telstar Inc., for a total cost of $475,700, including tax, and authorize the Director of General Services to execute the contract and approve a $25,000 contingency fund. (General Services)

Documents filed: (1) Memorandum from Director of General Services, Steve S. Yoshino, dated January 8, 2001, recommending award of said contract, and related contingency, to Telstar Inc. (2) Letter from the Treatment Plant Advisory Committee dated January 12, 2001, stating concurrence with the Staff recommendation.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the award of said contract to Telstar Inc., was approved and the Director of General Services was authorized to execute the contract and approve said contingency. Vote: 10-0-0-0-1. Vacant: District 5.

3.5 Appointment of Redistricting Advisory Commission Members. (Mayor)

Documents filed: Memorandum from Mayor Gonzales, dated January 29, 2001, recommending appointments to the Redistricting Advisory Commission.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, the recommendations in the memorandum by Mayor Gonzales, dated January 29, 2001, were approved and the following individuals were appointed to the Redistricting Advisory Commission: Chair, Frank Fiscalini; District 1, Trixie Johnson, District 2, Charlotte Powers, District 3, Terry Christensen, District 4, Jeff Ota, District 5, Tony Arreola, District 6, Amy Dean, District 7, George Sanchez, District 8, Maria Fuentes, District 9, Susie Wilson, and District 10, David Fadness. Vote: 10-0-0-0-1. Vacant: District 5.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.2 Approval of the following actions related to the El Paseo Studios Housing Project:

(a) Hold the TEFRA Hearing for the issuance of up to $10,000,000 in tax-exempt multifamily housing revenue bonds.

(b) Adoption of a resolution:

(1) Expressing its intent to issue up to $10,000,000 in multifamily tax-exempt revenue bonds to finance the construction of a 98-unit rental housing project located at the southeast corner of Hamilton and Campbell Avenues.

(2) Authorizing the Director of Housing to file an application with CDLAC for an allocation of up to $10,000,000 in private activity bonds.

(3) Authorizing the Director of Housing to negotiate and execute a Deposit and Escrow Agreement with El Paseo Apartments, L.P., an affiliate of First Community Housing (the “Sponsor”), for the CDLAC Application for the Project.

(Housing/Finance)

Documents filed: (1) Memorandum from Acting Director of Finance, Mark Burton, and Director of Housing, Alex Sanchez, dated January 8, 2001, recommending holding the TEFRA Hearing and adoption of a resolution expressing intent to issue tax-exempt revenue bonds and authorizing the Director of Housing take other actions related to the El Paseo Studios Housing Project. (2) Notice of Public Hearing dated January 9, 2001, Proof of Publication executed on January 12, 2001, and Affidavit of Posting dated January 12, 2001, submitted by the City Clerk.

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

4.3 Approval of the following actions regarding the Immanuel Housing Project:

(a) Hold the TEFRA Hearing for the issuance of up to $5,000,000 in tax-exempt multifamily housing revenue bonds.

(b) Adoption of a resolution:

(1) Expressing its intent to issue up to $5,000,000 in multifamily tax-exempt revenue bonds to finance the construction of a 63-unit senior rental housing project located between Leigh and Richmond Avenues, south of Moorpark Avenue.

(2) Authorizing the Director of Housing to file an application with CDLAC for an allocation of up to $5,000,000 in private activity bonds.

(3) Authorizing the Director of Housing to negotiate and execute a Deposit and Escrow Agreement with 1710 Moorpark, L.P., an affiliated entity of The Corporation for Better Housing, for the CDLAC Application for the Project.

(Housing/Finance)

Documents filed: (1) Memorandum from Acting Director of Finance, Mark Burton, and Director of Housing, Alex Sanchez, dated January 8, 2001, recommending holding the TEFRA Hearing and adoption of a resolution expressing intent to issue tax-exempt revenue bonds and authorizing the Director of Housing take other actions related to the Immanuel Housing Project. (2) Notice of Public Hearing dated January 9, 2001, Proof of Publication executed on January 12, 2001, and Affidavit of Posting dated January 12, 2001, submitted by the City Clerk.

Discussion/Action: The TEFRA Hearing was opened and there was no testimony from the floor. Upon motion by Council Member Yeager, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the hearing was closed, and Resolution No. 70137, entitled: “A Resolution of the Council of the City of San José Expressing its Intent to Issue Tax Exempt Debt for the Acquisition, Construction and Development of Multifamily Housing and Taking Related Actions (Immanuel Housing Project)”, was adopted. Vote: 10-0-0-0-1. Vacant: District 5.

4.4 Approval of the following actions regarding the Lenzen Affordable Housing Project:

(a) Hold the TEFRA Hearing for the issuance of up to $9,000,000 in tax-exempt multifamily housing revenue bonds.

(b) Adoption of a resolution:

(1) Expressing its intent to issue up to $9,000,000 in multifamily tax-exempt revenue bonds to finance the construction of an 88-unit family rental housing project located on the south side of Lenzen Avenue, 210 feet west of Stockton Avenue.

(2) Authorizing the Director of Housing to file an application with CDLAC for an allocation of up to $9,000,000 in private activity bonds.

(3) Authorizing the Director of Housing to negotiate and execute a Deposit and Escrow Agreement with Lenzen Housing, L.P., or an affiliated entity of Core Development, for the CDLAC Application for the Project.

(Housing/Finance)

Documents filed: (1) Memorandum from Acting Director of Finance, Mark Burton, and Director of Housing, Alex Sanchez, dated January 8, 2001, recommending holding and TEFRA Hearing and adoption of a resolution expressing intent to issue tax-exempt revenue bonds and authorizing the Director of Housing take other actions related to the Lenzen Affordable Housing Project. (2) Notice of Public Hearing dated January 9, 2001, Proof of Publication executed on January 12, 2001, and Affidavit of Posting dated January 12, 2001, submitted by the City Clerk.

Discussion/Action: The TEFRA Hearing was opened and there was no testimony from the floor. Alex Sanchez, Director of Housing, stated Staff was notified by the developer that there is a capacity for the project to borrow external financing for an additional million dollars, and Staff is recommending increasing the amount of the multifamily tax-exempt revenue bonds which the City intends to issue for this project from $9,000,000 to $10,000,000 and because the TEFRA hearing was noticed for $9,000,000 of bonds, he stated the project will be renoticed and Staff will return to Council for that hearing at a future date. Upon motion by Council Member Yeager, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, Resolution No. Resolution No. 70138, entitled: “A Resolution of the Council of the City of San José Expressing its Intent to Issue Tax Exempt Debt for the Acquisition, Construction and Development of Multifamily Housing and Taking Related Actions (The Lenzen Affordable Housing Project)”, was adopted. Vote: 10-0-0-0-1. Vacant: District 5.

4.5 Approval the following action regarding the Roberts Avenue Senior Housing Project:

(a) Hold the TEFRA Hearing for the issuance of up to $10,000,000 in tax-exempt multifamily housing revenue bonds.

(b) Adoption of a resolution:

(1) Expressing its intent to issue up to $10,000,000 in multifamily tax-exempt revenue bonds to finance the construction of a 100-unit senior rental housing project located at 1442 Roberts Avenue, San José, CA.

(2) Authorizing the Director of Housing to file an application with CDLAC for an allocation of up to $10,000,000 in private activity bonds.

(3) Authorizing the Director of Housing to negotiate and execute a Deposit and Escrow Agreement with Bridge Housing Corporation, or an affiliated entity, for the CDLAC Application for the Roberts Avenue Senior Housing Project.

(Housing/Finance)

Documents filed: (1) Memorandum from Acting Director of Finance, Mark Burton, and Director of Housing, Alex Sanchez, dated January 8, 2001, recommending holding and TEFRA Hearing and adoption of a resolution expressing intent to issue tax-exempt revenue bonds and authorizing the Director of Housing take other actions related to the Roberts Avenue Senior Housing Project. (2) Notice of Public Hearing dated January 9, 2001, Proof of Publication executed on January 12, 2001, and Affidavit of Posting dated January 12, 2001, submitted by the City Clerk.

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

4.6 Approval of the following actions regarding the Sixth and Martha Street Apartments (Phase II) Housing Project:

(a) Hold the TEFRA Hearing for the issuance of up to $9,000,000 in tax-exempt multifamily housing revenue bonds.

(b) Adoption of a resolution:

(2) Authorizing the Director of Housing to file an application with CDLAC for an allocation of up to $9,000,000 in private activity bonds.

(3) Authorizing the Director of Housing to negotiate and execute a Deposit and Escrow Agreement with 985 South Sixth St. Associates, L.P., an affiliate of JSM Enterprises, for the CDLAC Application for the Project.

(Housing/Finance)

Documents filed: (1) Memorandum from Acting Director of Finance, Mark Burton, and Director of Housing, Alex Sanchez, dated January 8, 2001, recommending holding and TEFRA Hearing and adoption of a resolution expressing intent to issue tax-exempt revenue bonds and authorizing the Director of Housing take other actions related to the Sixth and Martha Street Apartments (Phase II) Housing Project. (2) Notice of Public Hearing dated January 9, 2001, Proof of Publication executed on January 12, 2001, and Affidavit of Posting dated January 12, 2001, submitted by the City Clerk.

Discussion/Action: The TEFRA Hearing was opened and there was no testimony from the floor. Upon motion by Council Member Chavez, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the hearing was closed, and Resolution No. 70139, entitled: “A Resolution of the Council of the City of San José Expressing its Intent to issue Tax Exempt Debt for the Acquisition, Construction, and Development of Multifamily Housing and Taking Related Actions (The Sixth and Martha Street Apartments – Phase II)”, was adopted. Vote: 10-0-0-0-1. Vacant: District 5.

4.7 Approval of the following actions regarding the Villages Parkway Senior Apartments Housing Project:

(a) Hold the TEFRA Hearing for the issuance of up to $7,000,000 in tax-exempt multifamily housing revenue bonds.

(b) Adoption of a resolution:

(1) Expressing its intent to issue up to $7,000,000 in multifamily tax-exempt revenue bonds to finance the construction of a 79-unit senior rental housing project located at the northeast corner of The Villages Parkway and Ashley Way.

(2) Authorizing the Director of Housing to file an application with CDLAC for an allocation of up to $7,000,000 in private activity bonds.

(3) Authorizing the Director of Housing to negotiate and execute a Deposit and Escrow Agreement with Villages Parkway Associates, L.P, or an affiliated entity of JSM Enterprises, for the CDLAC Application for the Project.

(Housing/Finance)

Documents filed: (1) Memorandum from Acting Director of Finance, Mark Burton, and Director of Housing, Alex Sanchez, dated January 8, 2001, recommending holding and TEFRA Hearing and adoption of a resolution expressing intent to issue tax-exempt revenue bonds and authorizing the Director of Housing take other actions related to the Villages Parkway Senior Apartments Housing Project. (2) Notice of Public Hearing dated January 9, 2001, Proof of Publication executed on January 12, 2001, and Affidavit of Posting dated January 12, 2001, submitted by the City Clerk.

Discussion/Action: The TEFRA Hearing was opened and there was no testimony from the floor. Upon motion by Council Member Cortese, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the hearing was closed, and Resolution No. 70140, entitled: “A Resolution of the Council of the City of San José Expressing its Intent to Issue Tax Exempt Debt for the Acquisition, Construction and Development of Multifamily Housing and Taking Related Actions (The Villages Parkway Senior Apartment Project”, was adopted. Vote: 10-0-0-0-1. Vacant: District 5.

4.8 Acceptance of staff’s report on its ability and effort to personally contact each property owner impacted by the acquisition of properties for the Hellyer Avenue Expansion Project. CEQA: Resolution No. 69699. (Redevelopment Agency/Public Works) -(Referral from 1/16/01 – Item 4.3)

(Renumbered to 10.3)

Documents filed: See Item 10.3 for documents filed.

Discussion/Action: See Item 10.3 for Council action taken.

RECREATION & CULTURAL SERVICES

5.2 Adoption of appropriation ordinance and funding sources resolution amendments in various funds and approval of additional staffing for the Branch Libraries and Parks and Recreation Bond Projects in the amount of $9,325,300. (City Manager’s Office) (Orders of the Day)

Documents filed: Memorandum from Budget Director Larry D. Lisenbee, dated January 25, 2001, recommending approval of said appropriation ordinance and related revenue resolution amendments.

Discussion/Action: Mayor Gonzales stated as Staff brings forward recommendations to bring on line the library and park projects contained in Measure O and Measure P approved by the voters in November, 2000, Staff should take every opportunity to ensure projects are delivered on time and on budget in order to fulfill the commitment made to voters. While this will be a major challenge because of increased construction activity in the area, he stated this provides an opportunity to streamline the processes that will enable the projects to be delivered more quickly. Vice Mayor Shirakawa, Jr. expressed agreement with the Mayor’s comments; however, he noted there are projects from the districts that are already in the pipeline and stressed those older projects should not fall behind because of placing Measure O and P projects on a higher priority. In light of those comments, Council Member Chavez requested Staff provide an update on the streamlining process which the Departments of Parks, Recreation and Neighborhood Services and Public Works are engaged in and who the contact person is for each project. City Manager Borgsdorf stated Staff will provide in an informational memorandum on the current status of all projects in the process and how teams are organized to handle those project, and that a Deputy City Manager will be appointed to lead a focused organization of capital project stakeholders pertaining to Ballot Measures O and P. Council Member Chavez requested the informational memorandum include departmental restructuring, contact persons, and timelines and revenues expended for the current projects in process and for new projects as they come forward. Mayor Gonzales requested the project status reports be kept current on the City’s website and Measures O and P projects be highlighted, and requested Staff provide quarterly status reports to Council. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, Ordinance No. 26289, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26141 to Appropriate Moneys in the Branch Libraries Bond Project Fund in the Amount of $6,226,400 for Various Library Projects and in the Parks and Recreation Bond Project Fund in the Amount of $3,095,900 for Various Parks and Recreation Projects, and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”, and Resolution No. 70141, entitled: “A Resolution of the Council of the City of San José Amending Resolution No. 69683 Setting Forth the Estimated Sources of Funds for the Fiscal Year 2000-2001 to Adjust Revenues in the Branch Libraries Bond Project Fund and the Parks and Recreation Bond Project Fund”, were adopted, and Staff was directed to explore methods of expediting projects and ensuring projects approved under Measures O and P in November, 2000, stay on time and on budget, without compromising timelines of older projects in the pipeline and new Strong Neighborhoods Initiative projects; and to provide reports of backlogged projects, departmental reorganizations, and project contact persons, provide status reports on a quarterly basis, and provide project progress reports on the Internet and highlight Measure O and Measure P projects on the City’s home page for ease of reference. Vote: 10-0-0-0-1. Vacant: District 5.

AVIATION SERVICES

8.1 (a) Adoption of a resolution approving a Minor Amendment to the Airport Master Plan to modify the description and scheduling of terminal area development projects; and

(b) Approval of an ordinance amending Sections 25.04.310 and 25.04.440 of Parts 3 and 4 of Chapter 25.04 of the San José Municipal Code to make technical amendments to conform the description of terminal area improvements in the Master Plan to the Minor Amendments that have been approved to date, and to replace reference to “chapter” with “part” to clarify Council intent to obtain voter approval for amendment of the Airport Traffic Relief provisions specified in Part 4 of Chapter 25.04 of the Code.

CEQA: Resolution No. 67380. (Airport)

(Referral from 1/23/01 – Item 8.1)

Documents filed: None.

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

JOINT COUNCIL/REDEVELOPMENT AGENCY

The Council of the City of San José convened the Redevelopment Agency Board at 2:09 p.m. to consider at Items 10.1, 10.2, and 10.3 in a Joint Session.

10.1 (a) Adoption by the City Council of a response to written objections from property owners and taxing entities to the adoption of the Neighborhood Business Clusters Redevelopment Plan and the merger of the Neighborhood Business Clusters Redevelopment Plan into the San Jose Merged Area Redevelopment Plan.

(b) Final adoption of ORDINANCE NO. 26196 – Adopts the Neighborhood Business Clusters Redevelopment Plan and makes certain findings.

(Heard with Item 2.1)

(c) Final adoption of ORDINANCE NO. 26197 – Amends the Julian-Stockton Redevelopment Plan, the Olinder Redevelopment Plan, the San Antonio Plaza Redevelopment Plan, the Rincon de Los Esteros Redevelopment Plan, the Pueblo Uno Redevelopment Plan, the Edenvale Redevelopment Plan, the Guadalupe-Auzerais Redevelopment Plan, the Market Gateway Redevelopment Plan, the Century Center Redevelopment Plan, the Alum Rock Avenue Redevelopment Plan, the East Santa Clara Street Redevelopment Plan, the Almaden Gateway Redevelopment Plan, the Story Road Redevelopment Plan, The Alameda Redevelopment Plan, the West San Carlos Street Redevelopment Plan, the Japantown Redevelopment Plan, the Monterey Corridor Redevelopment Plan, the Park Center Redevelopment Plan, the Civic Plaza Redevelopment Plan, and the Neighborhood Business Clusters Redevelopment Plan to effect the merger of said Redevelopment Project Areas and making certain findings.

(Heard with Item 2.2)

(Deferred from 9/19/00 – Item 11a et al., and 1/16/01 – Item 10.1)

Documents filed: None.

Discussion/Action: This item was deferred to February 6, 2001, for Item 10.1(b) and 10.1(c) to be heard with Items 2.1 and 2.2, respectively.

10.2 (a) Adoption of a resolution by the City Council:

(1) Approving the proposed credit substitution for the Enclave Apartment Project and authorizing the Director of Finance (or designee), on behalf of the City, to execute and deliver the necessary documentation.

(2) Approving in substantially final form, certain documents relating to the proposed credit substitution, including: Amended and Restated Loan Agreement, Amended and Restated Indenture of Trust, Amended and Restated Intercreditor Agreement (relating to the Bond Regulatory Agreement), and Intercreditor Agreement (relating to the Affordability Agreement).

(3) Authorizing the Director of Housing to accept the amount of $4,586,204 as payoff of the $5,696,000 City Loan.

(b) Adoption of a resolution by the Agency Board authorizing the Executive Director to execute an Intercreditor Agreement on behalf of the Agency.

(Housing/Finance)

Documents filed: Memorandum from Director of Housing, Alex Sanchez, and Acting Director of Finance, Mark Burton, dated January 8, 2001, recommending adoption of resolutions pertaining to actions related to the Enclave Apartment Project.

Discussion/Action: William J. Garbett spoke in opposition to the proposal. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez, and unanimously carried, Resolution No. 70142, entitled: “A Resolution of the Council of the City of San José Approving Documents in Connection with the Substitution of Credit Enhancement for Variable Rate Demand Multifamily Housing Revenue Bonds (Siena at Renaissance Square Project) Series 1996A, and Authorizing the Execution and Delivery of Such Documents”, and Redevelopment Agency Resolution No. 5111, were adopted. Vote: 10-0-0-0-1. Vacant: District 5.

10.3 Acceptance of staff’s report on its ability and effort to personally contact each property owner impacted by the acquisition of properties for the Hellyer Avenue Expansion Project. CEQA: Resolution No. 69699. (Redevelopment Agency/Public Works) (Referral from 1/16/01 – Item 4.3)

(This item renumbered from Item 4.8)

Documents filed: Memorandum from City Manager, Del Borgsdorf, and Redevelop-ment Executive Director, Susan F. Shick, dated January 30, 2001, recom-mending acceptance of an informational report on public outreach on the proposed Hellyer Avenue Extension project in the Edenvale Redevelopment Project Area.

Discussion/Action: An oral presentation of the Staff report was given by Susan F. Shick, Executive Director of the Redevelopment Agency. Upon motion by Council Member Williams, seconded by Vice Mayor Shirakawa, Jr., and unanimously carried, the report was approved. Vote: 10-0-0-0-1. Vacant: District 5.

The Redevelopment Agency Board portion of the meeting adjourned at 2:15 p.m.

Adjournment

The Council of the City of San José adjourned at 2:16 p.m. to a joint meeting of the City Council/San José Financing Authority; followed by a Special Closed Session joint meeting of the City Council and Redevelopment Agency following the Redevelopment Agency meeting, and then adjourned to Thursday, February 1, 2001, at 5:30 p.m., San José McEnery Convention Center for the Mayor’s State of the City address.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN

CITY CLERK