City Council Meeting Minutes, 5-22-01

MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, MAY 22, 2001

The Council of the City of San Jose convened in Regular Session at 9:30 a. m. in Council Chambers at City Hall.

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

Absent: Council Members: Chavez (excused), Diquisto (excused).

Upon motion unanimously adopted, the City Council recessed to Closed Session at 9:40 a.m. in Room 600 to (A) confer with Legal Counsel pertaining to existing litigation pursuant to Government Code Section 54956.9 Subsection (a) to consider the case of Arambula v. City of San José, et al.; (B) confer with Legal Counsel regarding anticipated litigation (1) involving a matter where there is significant exposure to litigation pursuant to subdivision (b) of Section 54956.9 of the Government Code, and (2) involving the initiation of litigation in a matter pursuant to subsection (c) of Section 54956.9 of the Government Code; (C) for the purpose of conducting Public Employee Performance Evaluation, City Manager, pursuant to Government Code Section 54957; and (D) to confer with Labor Negotiator pursuant to Government Code Section 54957.6 involving City Negotiator, City Manager designee Alex Gurza and the Municipal Employees Federation Employee Organization and the International Association of Firefighters Employee Organization.

By unanimous consent, Council reconvened from Closed Session and recessed at 11:00 a.m. and reconvened at 1:30 p.m. in Council Chambers, City Hall.

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

Absent: Council Members: Chavez (excused), Diquisto (excused).

INVOCATION

Associate Pastor Oscar Bauer, Iglesia Bautista, delivered the invocation. (District 5)

PLEDGE OF ALLEGIANCE

Mayor Gonzales led in the Pledge of Allegiance.

ORDERS OF THE DAY

Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Cortesé and unanimously carried, the Orders of the Day and the Amended Agenda were approved. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

JOINT COUNCIL/REDEVELOPMENT AGENCY

The Redevelopment Agency Board convened at 1:38 p.m. to consider Item 10.1 in a joint session with the City Council.

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

(1) Approving the Amended and Restated Agreement by and among the City of San José, the Redevelopment Agency of the City of San José, and the County of Santa Clara related to the cooperation among the entities regarding redevelopment and planning issues, including the continued allocation of tax increment to the County, and the delegation of redevelopment authority to the County;

(2) Authorizing the City Manager to accept a grant deed transferring title to the City of a certain parcel located on the former Asbury Street, at no cost to the City;

(3) Approving a first amendment to the agreement between the County and the City setting compensation for collecting sewer service charges on the tax roll, decreasing the collection charge to .3% of the total charges collected; and

(4) Expressing its intent to disband the City/County Joint Powers Authority as of June 30, 2001, and to terminate the authority of the JPA except to take whatever actions may be necessary to implement grants made through the end of Fiscal Year 2001-02.

(b) Adoption of a resolution by the Redevelopment Agency Board:

(2) Delegating to the County Board of Supervisors the authority to undertake redevelopment, consistent with applicable redevelopment law, pursuant to Health & Safety Code Section 33205.

(City Attorney’s Office)

(Orders of the Day)

Documents Filed: Memorandum from City Attorney, J. Richard Doyle dated May 18, 2001, recommending Council approve the Amended and Restated Agreement by and among the City, Agency, and the County of Santa Clara, and take necessary action in connection therewith.

Discussion/Action: Mayor Gonzales stated the City of San José and the County of Santa Clara have reached an agreement to share long-term resources from the San José Redevelopment Agency, resolving long-standing differences between the two government entities, which will utilize resources to improve neighborhoods and aging retail centers, create affordable housing, and build needed capital improvements and public facilities in neighborhoods in San José served by both the City and the County. He acknowledged the leadership contributions of Board Chairpersons James T. Beall, Jr. and predecessors Don Gage and Pete McHugh who have been instrumental in negotiating the comprehensive agreement, which began in mid-1999 in a mutual effort to resolve complex issues regarding redevelopment activities, funding and various impacts on City and County services. He recognized the concentrated efforts of Joe Guerra, Manager of the Mayor’s Budget and Policy Office, City Manager Del D. Borgsdorf, Redevelopment Agency Executive Director Susan F. Shick, City Attorney J. Richard Doyle, Senior Deputy City Attorney Patricia A. Deignan, and Redevelopment Agency Finance & Administration Director David Baum.

Santa Clara County Board Chair James T. Beall, Jr. conveyed to the City Council and the Redevelopment Agency the County Board the Supervisors’ support of the comprehensive agreement. He congratulated James R. Derryberry on his upcoming retirement and outstanding contributions in the areas of land use planning and development in communities throughout the City of San José. He expressed appreciation to Mayor Gonzales and the team efforts of both City and County participants for their outstanding contributions to the negotiating process, including County Executive Richard Wittenberg, County Counsel Ann Miller Ravel, and Chief of Staff Caroline Judi of District 4 Office. He stated the work of revitalizing many dilapidated structures and renovating neglected lots throughout the City can begin, new housing and community centers can be built and neighborhoods restored, community concerns of health care and affordable housing can be addressed, with economic improvements occurring in local communities. He conveyed consensus of the Board of Supervisors in executing the agreement and the positive prospect of working collaboratively with the City Council/Agency Board of Directors in implementing provisions of the agreement. William J. Garbett spoke against the proposed action.

Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Dando and unanimously carried, Resolution No. 70357, entitled: “Resolution of the Council of the City of San José: (1) Approving the Amended and Restated Agreement By and Among the City of San José, the Redevelopment Agency of the City of San José, and the County of Santa Clara, Related to the Cooperation Among the Entities Regarding Redevelopment and Planning Issues, Including the Continued Allocation of Tax Increment to the County and the Delegation of Redevelopment Authority to the County; (2) Authorizing the City Manager to Accept a Grant Deed Transferring Title to the City of a Certain County-Owned Parcel Located on the Former Asbury Street, at No Cost to the City; (3) Approving a First Amendment to the Agreement Between the County and the City Setting Compensation for Collecting Sewer Service Charges on the Tax Roll, Decreasing the Collection Charge to .3% of the Total Charges Collected; and (4) Expressing Its Intent to Disband the City/County Joint Powers Authority as of June 30, 2001, and to Terminate the Authority of the Joint Powers Authority (JPA) Except to Take Whatever Actions May Be Necessary to Implement Grants Made Through the End of Fiscal Year 2000-2001”; and Redevelopment Agency Board Resolution No. 5161, were adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

The Redevelopment Agency Board adjourned at 1:45 p.m.

CEREMONIAL ITEMS

1.1 Presentation of a congratulatory commendation in honor of Moreland School District's 150th Birthday will be accepted by Dr. James Ritchie, Superintendent and School Board President, Alan Uhlemann. (LeZotte)

(Deferred from 5/1/01 – Item 1.2)

Documents Filed: None.

Discussion/Action: Joining Mayor Gonzales at the Podium, Council Member LeZotte introduced Dr. James Ritchie, Superintendent, and Board President Alan Uhlemann, and commended the Moreland School District on its 150 years of outstanding service to the youth of the community-at-large. Council Member LeZotte officially presented the award to the Moreland School District on March 31, 2001 during a ceremonial dinner in honor of the District’s sesquicentennial celebration, and Mayor Gonzales presented the congratulatory commendation to Dr. Ritchie and thanked administrators for their commitment to education.

1.2 Presentation of a proclamation commemorating Memorial Day. (Mayor)

Documents Filed: None.

Discussion/Action: Mayor Gonzales read the proclamation commemorating May 28, 2001, Memorial Day, as a tribute to the men and women who have served their country and forfeited their lives for the preservation of freedom and values and the advancement of ideals of democracy for all Americans. He stated the proclamation would be placed in the Lobby of City Hall, San José, California.

1.3 Presentation of a commendation to Lincoln High School’s Mock Trial team for its achievements this school year. (Yeager/Mayor)

(Rules Committee referral 5/16/01)

Documents Filed: None.

Discussion/Action: Joining Mayor Gonzales at the Podium was Council Member Yeager who introduced Attorney Team Coaches Dan Ballesteros, Tina Calahan, Kris Morrella and Jim Towery – and Mock Trial Team Members Steve Cash, Jessica Friedman, Shane Jacksteit, Elyse Michaels, Krista Pietrok, Amanda Ramos, Rasna Sandhu, Kathleen Stavis, Alejandra Torres, Ryan Webb, Max Rain, Shaina Rogozen, Jenny Roberts, Kelsey Mitchell, Pearl Wible, Ponit Maor, Rachel Turk, Lindsey Scherer, and Jonathan Foresee. Mayor Gonzales presented the commendation to the Team – First Place California State Mock Trial Championship Winners, First Place Winners in Santa Clara County, and Fifth Place Winners at the National Championship, out of a field of 44 teams from all parts of the Nation. Mayor Gonzales presented the commendation and congratulated the team on its outstanding achievements.

1.4 Presentation of a proclamation declaring May 20 – 26^th, 2001 as Public Works Week. (Public Works, Transportation, Environmental Services, General Services)

(Rules Committee referral 5/16/01)

Documents Filed: None.

Discussion/Action: Joining Mayor Gonzales at the Podium were Director of Environmental Services Carl W. Mosher, Deputy Director of Traffic Management Jim Helmer, and Acting Director of Public Works Rajeev Batra who thanked the Mayor and City Council for the recognition, and accepted the proclamation on behalf of the City’s 1500 professional men and women who maintain the public infrastructure in the City of San Jose.

CONSENT CALENDAR

Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Williams and unanimously carried, the Consent Calendar was approved and the below listed actions were taken as indicated. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

2.1 (a) Final adoption of Ordinance No. 26359 – Amends Title 6 of the San José Municipal Code to add a new chapter to regulate tinted windows at beverage service businesses.

Documents Filed: Proof of publication of the title of Ordinance No. 26359 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: William J. Garbett spoke against the proposed action. Ordinance No. 26359 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(b) Final adoption of Ordinance No. 26360 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to AAA Express Roll-Off Disposal.

Documents Filed: Proof of publication of the title of Ordinance No. 26360 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26360 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(c) Final adoption of Ordinance No. 26361 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Butterick Enterprises, Inc.

Documents Filed: Proof of publication of the title of Ordinance No. 26361 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26361 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(d) Final adoption of Ordinance No. 26362 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Browning-Ferris Industries.

Documents Filed: Proof of publication of the title of Ordinance No. 26362 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26362 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(e) Final adoption of Ordinance No. 26363 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Custom Disposal Service.

Documents Filed: Proof of publication of the title of Ordinance No. 26363 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26363 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(f) Final adoption of Ordinance No. 26364 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Diversified Recycling Services, Inc. dba San José Recycling II.

Documents Filed: Proof of publication of the title of Ordinance No. 26364 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26364 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(g) Final adoption of Ordinance No. 26365 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to E.M.S., L.L.C.

Documents Filed: Proof of publication of the title of Ordinance No. 26365 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26365 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(h) Final adoption of Ordinance No. 26365 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Green Valley Disposal Co., Inc.

Documents Filed: Proof of publication of the title of Ordinance No. 26365 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26366 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(i) Final adoption of Ordinance No. 26367 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to GreenWaste Recovery, Inc.

Documents Filed: Proof of publication of the title of Ordinance No. 26367 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26367 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(j) Final adoption of Ordinance No. 26368 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to GreenWaste Recovery, Inc. dba $99 Debris Box Service.

Documents Filed: Proof of publication of the title of Ordinance No. 26368 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26368 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(k) Final adoption of Ordinance No. 26369 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Grifall Trucking.

Documents Filed: Proof of publication of the title of Ordinance No. 26369 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26369 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(l) Final adoption of Ordinance No. 26370 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to GreenTeam of San José dba GT Waste Services.

Documents Filed: Proof of publication of the title of Ordinance No. 26370 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26370 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(m) Final adoption of Ordinance No. 26371 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to JHM Services, Inc.

Documents Filed: Proof of publication of the title of Ordinance No. 26371 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26371 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(n) Final adoption of Ordinance No. 26372 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Jonna Corporation dba Premier Recycle.

Documents Filed: Proof of publication of the title of Ordinance No. 26372 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26372 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(o) Final adoption of Ordinance No. 26373 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Julie Coleman Enterprises, Inc. dba Pacific Rim Recycling.

Documents Filed: Proof of publication of the title of Ordinance No. 26373 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26373 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(p) Final adoption of Ordinance No. 26374 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Phillip A. Ingram dba Coast Dumpster Service.

Documents Filed: Proof of publication of the title of Ordinance No. 26374 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26374 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(q) Final adoption of Ordinance No. 26375 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Los Altos Garbage Company dba Stevens Creek Disposal and Recycling.

Documents Filed: Proof of publication of the title of Ordinance No. 26375 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26375 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(r) Final adoption of Ordinance No. 26376 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Mission Trail Waste Systems, Inc. dba Recycle West.

Documents Filed: Proof of publication of the title of Ordinance No. 26376 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26376 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(s) Final adoption of Ordinance No. 26377 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Number “1” Disposal.

Documents Filed: Proof of publication of the title of Ordinance No. 26377 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26377 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(t) Final adoption of Ordinance No. 26378 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Panther Industries.

Documents Filed: Proof of publication of the title of Ordinance No. 26378 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26378 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(u) Final adoption of Ordinance No. 26379 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to The Newark Group.

Documents Filed: Proof of publication of the title of Ordinance No. 26379 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26379 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(v) Final adoption of Ordinance No. 26380 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Recycling Systems.

Documents Filed: Proof of publication of the title of Ordinance No. 26380 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26380 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(w) Final adoption of Ordinance No. 26381 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to The Flea Market.

Documents Filed: Proof of publication of the title of Ordinance No. 26381 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26381 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(x) Final adoption of Ordinance No. 26382 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Waste Management, Inc. dba Hollister Disposal.

Documents Filed: Proof of publication of the title of Ordinance No. 26382 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26382 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(y) Final adoption of Ordinance No. 26383 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Waste Management of Santa Clara County.

Documents Filed: Proof of publication of the title of Ordinance No. 26383 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26383 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(z) Final adoption of Ordinance No. 26384 – Adopts salaries for the Mayor and Council Members recommended by the Council Salary Setting Commission pursuant to City Charter Section 407.

Documents Filed: Proof of publication of the title of Ordinance No. 26384 executed on May 15, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26384 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

(aa) Final adoption of Ordinance No. 26386 – Amends various chapters of various titles of the San José Municipal Code to amend contracting authority.

Documents Filed: Proof of publication of the title of Ordinance No. 26386 executed on May 18, 2001, submitted by the City Clerk.

Discussion/Action: William J. Garbett spoke against the proposed action. Ordinance No. 26386 was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

2.2 Approval of the sixth amendment to Operating Agreement and Terminal Building Lease with Compania Mexicana de Aviacion, S. A. de C.V. (Mexicana Airlines) extending the term from February 1, 2002 through November 30, 2007, and adding approximately 201 square feet of operations space, with projected annual revenue to the City of $242,000. CEQA: Resolution No. 67380. (Airport)

(Deferred from 5/8/01 – Item 2.3)

Documents Filed: None.

Discussion/Action: This item was deferred to May 29, 2001.

2.3 Adoption of a resolution authorizing the City Manager to submit, and execute upon receipt, a grant application for $250,000 to the California Energy Commission 2001 Alternative Fuels Infrastructure Grant Solicitation for the San José International Airport Compressed Natural Gas Station to serve the Airport’s ground transportation fueling needs. CEQA: Resolution No. 67380. (Airport)

Documents Filed: Memorandum from Director of Aviation, Ralph G. Tonseth, dated May 2, 2001, recommending Council adopt said resolution.

Discussion/Action: Resolution No. 70358, entitled: “A Resolution of the Council of the City of San José Approving the Application Submitted On the City’s Behalf to the California Energy Commission 2001 Alternative Fuels Infrastructure Grant Solicitation for a Grant in an Amount Not to Exceed $250,000 for the San José International Airport Compressed Natural Gas Station, to Accept the Grant if Awarded, and to Execute All Related Documents”, was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

2.4 Preliminary approval of the report as filed by the Downtown Business Improvement District Advisory Board, or as modified by Council; and adoption of a resolution of intention to levy the annual assessment for 2001-02 and set a public hearing on June 5, 2001 at 1:30 p.m. on the levy of the proposed assessments.

Council District 3. (Economic Development)

Documents Filed: Memorandum from Senior Deputy City Manager, Darrell Dearborn, dated May 2, 2001, recommending Council approve said report and adopt said resolution of intention.

Discussion/Action: The preliminary report was approved as submitted by the Downtown Business Improvement District Advisory Board, and Resolution No. 70359, entitled: “A Resolution of the Council of the City of San José Declaring Its Intent to Levy Assessments for Fiscal Year 2001-2002 in the Downtown Business Improvement District Pursuant to the Parking and Business Improvement Area Law of 1989 and Setting a Date and Time for the Public Hearing”, was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

2.5 Preliminary approval of the report as filed by the Japantown Business Improvement District Advisory Board, or as modified by Council; and adoption of a resolution of intention to levy the annual assessment for 2001-02 and set a public hearing on June 5, 2001 at 1:30 p.m. on the levy of the proposed assessments. Council District 3. (Economic Development)

Documents Filed: Memorandum from Senior Deputy City Manager, Darrell Dearborn, dated May 2, 2001, recommending Council approve said report and adopt said resolution of intention.

Discussion/Action: The preliminary report as submitted by the Japantown Business Improvement District Advisory Board was approved and Resolution No. 70360, entitled: “Resolution of the Council of the City of San José Declaring Its Intent to Levy Assessments for Fiscal Year 2001-2002 in the Japantown Business Improvement District Pursuant to the Parking and Business Improvement Area Law of 1989 and Setting a Date and Time for the Public Hearing”, was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

2.6 Preliminary approval of the report as filed by the Willow Glen Business Improvement District Advisory Board, or as modified by Council; and adoption of a resolution of intention to levy the annual assessment for 2001-2002 and set a public hearing on June 5, 2001 at 1:30 p.m. on the levy of the proposed assessments. Council District 6. (Economic Development)

Documents Filed: Memorandum from Senior Deputy City Manager, Darrell Dearborn, dated May 2, 2001, recommending Council approve said report and adopt said resolution of intention.

Discussion/Action: The preliminary report as submitted by the Willow Glen Business Improvement District Advisory Board was approved and Resolution No. 70361, entitled: “A Resolution of the Council of the City of San José Declaring Its Intent to Levy the Assessment for Fiscal Year 2001-2002 in the Willow Glen Business Improvement District Pursuant to the Parking and Business Improvement Area Law of 1989 and Setting a Date and Time for the Public Hearing”, was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

2.7 Report on bids and award of contract for the San José/Santa Clara Water Pollution Control Plant-Filter Backwash Chlorination and SBWR Diversion Disinfection Project, to the low bidder, D.W. Nicholson Corporation, in the amount of $218,000, and approval of a contingency in the amount of $44,000. CEQA: Exempt. (Environmental Services)

Documents Filed: (1) Memorandum from Director of Environmental Services, Carl W. Mosher, dated May 2, 2001, recommending Council accept the bid report and award said contract to the low bidder, and approve the budget contingency amount. (2) Supplemental report from San José/Santa Clara Water Pollution Control Plant, Treatment Plant Advisory Committee Chairperson, Rodney Diridon, Jr., dated May 10, 2001, recommending approval of report on bids and award.

Discussion/Action: The report on bids was accepted and award of contract to D.W. Nicholson Corporation, the low bidder, and the budget contingency amount of $44,000, were approved, and execution of the contract authorized. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

2.8 Approval of a fourth amendment to the agreement with R.W. Beck Inc. for solid waste consulting services, increasing compensation by $250,000, from $700,000 to a total not to exceed $950,000, and extending the agreement term from January 30, 2002 through June 30, 2002. (Environmental Services)

Documents Filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated May 2, 2001, recommending Council approve the fourth amendment to said agreement.

Discussion/Action: The fourth amendment to the consultant services agreement with R.W. Beck Inc. was approved and execution of the amendment authorized. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

2.9 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2000-2001 #44, and authorization for the Director of General Services to execute the purchase orders. (General Services)

Documents Filed: Memorandum from Acting Director of General Services, Francis B. McVey, dated May 2, 2001, recommending Council approve said open purchase orders list, and authorize the Director of General Services to execute the purchase orders.

Discussion/Action: The award of open purchase orders List No. 44 for Fiscal Year 2000-2001 was approved and execution of the purchase orders authorized. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

2.10 Approval of Contract Change Order No. 49 for the New Fire Station No. 1 Project with Gonsalves & Stronck Construction Company, Inc., for the relocation of the San José Firefighters Memorial in the amount of $57,135, for a total contract amount of $4,500,844. CEQA: Resolution No. 64273. Council District 3.

Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated May 2, 2001, recommending Council approve said contract change order.

Discussion/Action: William J. Garbett spoke against the proposed action. Contract Change Order No. 49 with Gonsalves & Stronck Construction Company, Inc., was approved and execution of the change order authorized. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

2.11 Approval of a five-year property use agreement, with one five-year option, with Sprint PCS, allowing for the construction, installation, maintenance, and operation of telecommunications facilities at 1661 and 2077 Airport Boulevard, at an annual base rent of $60,000 plus $55 per square foot per year for floor and shelf space, with yearly increases in base and square foot charges at the greater of 4% or the rise in the Consumer Price Index. CEQA: Exempt. Council District 3. (Public Works)

(Deferred from 5/8/01 – Item 2.14 and 5/15/01 – Item 2.17)

Documents Filed: None.

Discussion/Action: This item was deferred to May 29, 2001.

2.12 TRACT NO. 9310 – Northeast corner of Tully Road and Ruby Avenue – Robson Homes, LLC, A California Limited Liability Company (Developer) – 8 single family detached residential units. Approval of a parkland agreement and adoption of resolutions approving the plans, final map, contract, and water main extension for Tract No. 9310. CEQA: ND. Council District 8. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated May 15, 2001, recommending Council adopt said resolutions.

Discussion/Action: The parkland agreement with Robson Homes, LLC., was approved and execution of the agreement authorized; Resolution No. 70362, entitled: “A Resolution of the Council of the City of San José Fixing Official Curb Grades and Position of Curbs, and Adopting Plans For Tract No. 9310”; Resolution No. 70363, entitled: “A Resolution of the Council of the City of San José Approving and Accepting Final Map of Tract No. 9310”, Resolution No. 70364, entitled: “A Resolution of the Council of the City of San José Approving and Authorizing the Execution of Contract and Approving Bonds for the Improvement of Tract No. 9310”; and 70365, entitled: “A Resolution of the Council of the City of San José Approving and Authorizing the Execution of Agreement for the Water Main Extension, Tract No. 9310”, were adopted Vote: 9-0-2-0. Absent: Chavez, Diquisto.

END OF CONSENT CALENDAR

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – May 9, 2001

Documents Filed: Rules Committee Report of May 9, 2001.

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

The Committee referred Redevelopment Agency items to the Redevelopment Agency Board for action.

(b) City Council

(1) Review May 22, 2001 Draft Agenda

The Committee approved the May 22, 2001 City Council Agenda.

(2) Add New Items to May 15, 2001 Amended Agenda

The Committee recommended four additions to the May 15, 2001.

(1) Amendments to Council Committee Agendas

(a) Finance and Infrastructure Committee

The Committee recommended an addition to the May 23, 2001 Finance and Infrastructure Committee Agenda entitled, “General Airport Revenue Bonds, Series 2001A – Plan of Finance. (Finance Department)

(b) Economic Development and Environment Committee

None Presented.

The Committee recommended an addition to the May 21, 2001 Education, Neighborhoods, Youth and Seniors Committee Agenda, entitled, “Approval of the Final Draft Auto Body Ordinance (Planning, Building and Code Enforcement).”

(d) Ad Hoc Traffic Calming Advisory Committee

None Presented.

(d) Meeting Schedules. Attachment: Memorandum from Redevelopment Agency Administrative Officer, Gary Miskimon, dated, May 1, 2001, requesting the Rules Committee to approve a Study Session on Downtown parking on May 24, 2001.

(1) Request to approve a Study Session on Downtown Parking on May 24, 2001, 1-4 p.m., Council Chambers. The Committee recommended approval of a Study Session on Downtown Parking to be held on May 24, 2001, 1:00 p.m. to 4:00 p.m. in Council Chambers, City Hall. (Redevelopment Agency)

(e) The Public Record – April 25 to May 1, 2001. Attachment: Memorandum from City Clerk, Patricia L. O’Hearn, dated May 3, 2001, listing the items transmitted to the Administration for the Public Record for the period April 25, 2001 to May 1, 2001.

The Committee noted and filed the Public Record for the period April 24 to May 1, 2001.

(f) Boards, Commissions and Committees

(1) Appoint two community representatives to the Airport Noise Monitoring Committee.

The Committee deferred this item to the May 16, 2001 Rules Committee meeting.

(2) Recommend 15 community organizations to be appointed to the Project Area Committee for the proposed Strong Neighborhood Initiative Redevelopment Project Area.

The Committee deferred this item to the May 16, 2001 Rules Committee meeting.

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

None Presented.

(h) Administrative Reviews and Approval

None Presented.

(i) Oral communications

Teresa Ponce spoke in support of the San José Multicultural Artists Guild, one of the community organizations being considered for appointment to the Project Area Committee for the proposed Strong Neighborhoods Initiative. William Garbett commented on the affiliation of the City Council and the Redevelopment Agency.

(j) Adjournment

The meeting was adjourned at 2:30 p.m.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Cortesé and unanimously carried, the Rules Committee Report and actions of May 9, 2001 were accepted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

STRATEGIC SUPPORT SERVICES

3.3 Report of the Finance and Infrastructure Committee – May 9, 2001

Documents Filed: Finance and Infrastructure Committee Report of May 9, 2001.

(a) Consent Items. Attachments: (1) Memorandum from Director of Finance, Scott P. Johnson, dated April 23, 2001, transmitting the Monthly Investment Report for March 2001. (2) Memorandum from Acting Director of Public Works Rajeev Batra, dated May 1, 2001 attaching the report on unfunded capital project staff costs for the period of July 1, 2000 through March 31, 2001.

(1) Monthly Investment Report for March 2001.

(2) Unfunded Projects Appropriation Report as of 3/31/01.

The Committee accepted the reports and approved the Consent Calendar Items.

(b) An Audit of the Pretreatment Source Control Inspection Program.

The Committee accepted the report.

Bill Garbett spoke on the Regional Water Quality Control Board and the canning industry. Ted Smith, Silicon Valley Toxics Coalition, spoke on the progress made by the Environmental Services Department, and expressed his concern over reducing any of the services.

(d) Adjournment

The meeting was adjourned at 3:35 p.m.

Discussion/Action: Upon motion by Council Member Dando, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, the Finance and Infrastructure Committee Report and actions of May 9, 2001 were accepted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

3.4 Approval of a consulting services agreement with Acuent for the upgrade of the Human Resources/Payroll System from May 23, 2001 to June 30, 2002, in an amount not to exceed $897,200.

(Finance/Human Resources/Information Technology)

Documents Filed: (1) Memorandum from Director of Finance Scott P. Johnson, Director of Human Resources Nona Tobin, and Chief Information Officer Wandzia Grycz, dated May 15, 2001, recommending Council approve the consulting services agreement. (2) Hard copy of staff presentation on the PeopleSoft System upgrade.

Discussion/Action: Director of Finance Scott P. Johnson, acknowledged the Payroll Project Executive Team comprised of Deputy City Manager Kay Winer, Chief Information Officer Wandzia Grycz, Budget Director Larry D. Lisenbee, Director of Human Resources Nona Tobin, and Andrew Heath, Human Resources Payroll Project Manager, and presented a comprehensive overview of the proposal for the upgrade of the Human Resources Payroll System, and the presence of Acuent representative Robert Krueger, available to respond to Council concerns related to his firm.

Using a slide presentation, Scott Johnson explained the need for the upgrade, what options exist to satisfy the needs for an upgrade, and how the upgrade will take place, along with the risks and opportunities associated with upgrades to PeopleSoft Versions 7.5 or 8.0. Starting with the issuance of the RFQ on March 16, 2001, he outlined the upgrade project timelines, described the upgrade strategy necessary to provide employees with accurate payroll information as of December 2001, and pointed out the results of the upgrade project proposal process. In recommending Council approve the consulting service agreement with Acuent for the upgrade to PeopleSoft Version 8.0, he stated Acuent is a PeopleSoft Partner since 1992 and has successfully completed more than 350 PeopleSoft upgrades and implementations, and that the consultant has had success in assisting public sector clients with PeopleSoft upgrades and implementations in Contra Costa County, Port of Seattle, and the City of Pasadena. He stated the City’s proposed agreement with Acuent provides for a seven-month upgrade process leading to an upgrade of the City’s PeopleSoft HRMS system by the end of December 2001. He stated the services performed under this agreement include an upgrade assessment and planning, system upgrade, system retrofit, system integration, and system upgrade deployment.

Resulting from Council discussion of the upgrade, Scott Johnson stated the report to Council will address all the concerns, including the security of the system, whether the independent auditor’s recommendations have been applied, and extensive evaluations of PeopleSoft systems used by other large employers – public and private corporations. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Reed and unanimously carried, the consulting services agreement with Acuent was approved and execution of the agreement authorized, with the Administration directed to (a) provide Council with the independent auditor’s recommendations on the existing payroll system and necessity to upgrade; (b) report to Council on the existence and type of safety measures installed to ensure maximum security for the information contained in the System; and (c) to provide Council with evaluations, from large public and private employers using People Soft, which identify the problems with the 8.0 version and resolutions to those issues. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

3.5 Approval of an ordinance amending Part 5 of Chapter 23.04 of Title 23 of the San José Municipal Code by adding a new section to allow agreements for the removal of billboards. (City Attorney’s Office) CEQA: Exempt.

(Rules Committee referral 5/16/01)

Documents Filed: Memorandum from City Attorney, J. Richard Doyle dated May 18, 2001, recommending Council approve the proposed ordinance.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Williams and unanimously carried, Ordinance No. 26393, entitled: “An Ordinance of the City of San José Amending Part 5 of Chapter 23.04 of Title 23 of the San José Municipal Code by Adding a New Section 23.04.495 to Allow Agreements for the Removal of Billboards”, was passed for publication. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

ECONOMIC & NEIGHBORHOOD DEVELOPMENT

4.1 Report of the Economic Development & Environment Committee – May 7, 2001

Documents Filed: Economic Development & Environment Committee report of May 7, 2001.

(a) Status Report on Mayor’s Housing Production Team Referrals. Attachment: Memorandum from Acting Director of Housing, Leslie Corsiglia, dated April 13, 2001, submitting a status report on the actions taken by the Housing Production Team to address the 72 recommendations for the increase of housing production in San José.

The Committee accepted the status report.

(b) Quarterly Housing Production Reports. Attachments: (1) Memorandum from Director of Housing, Alex Sanchez, dated April 5, 2001, submitting a report on the activity in the Housing Department’s Project Development Program for the third quarter of the 2000-2001 Fiscal year. (2) Memorandum from Director of Housing, Alex Sanchez, dated April 12, 2001, submitting the report on activity during the third quarter of the 2000-2001 Fiscal Year in the Housing Rehabilitation Program. (3) Memorandum from Director of Housing, Alex Sanchez, dated April 12, 2001, submitting a status report on various aspects of the Housing and Homeless Fund Program in the Housing Department.

(1) Quarterly Report on the Project Development Program

(2) Quarterly Report on the Housing Rehabilitation Program

(3) Quarterly Report on the Housing and Homeless Fund

The Committee accepted the reports.

(c) San José First Employment Program (SJFEP) Report. Attachment: Memorandum from Manager of Corporate Outreach, Nanci Klein, recommending acceptance of the report and removal from the Economic Development and Environment Committee Agenda the San José First Employment Report.

The Committee accepted the report and recommendation to drop the item.

(d) Approval of an ordinance of the City of San José amending Title 9 of the San José Municipal Code by adding a new Chapter 9.54 to restrict the discing of vegetation on certain lands. Attachment: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated April 23, 2001, recommending the Committee recommend that the City Council adopt an ordinance amending Title 9 of the City of San José Municipal Code to restrict the discing of vegetation on certain lands.

The Committee accepted the Staff Report with the recommendation that City Staff present a report to the full Council for action and include information on additional costs for the creation of firebreaks.

See Item 4.11 for Council Action Taken.

(e) Oral petitions

Craig Breon, of the Audubon Society, applauded the City’s support in the protection of the Burrowing Owl.

(f) Adjournment

The meeting was adjourned at 2:37 p.m.

Discussion/Action: Upon motion by Council Member Williams, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, the Economic Development & Environment Committee Report and actions were accepted with Item 4.1(d) acted upon at Item 4.11. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

4.2 Adoption of appropriation ordinance and funding sources resolution amendments in the Services for Redevelopment Capital Projects Fund (City-side Redevelopment Fund) for the Monterey Pedestrian Street Lights Project with a net impact to the fund of $496,000. (City Manager’s Office)

Documents Filed: None.

Discussion/Action: This item was deferred to May 29, 2001.

4.3 Adoption of a resolution:

(a) Approving the submittal of the Enterprise Zone five-year extension application; and

(b) Making the necessary findings required by the California Technology Trade and Commerce Agency.

Council Districts 3, 4, and 7. (Economic Development)

Documents Filed: Memorandum from Senior Deputy City Manager, Darrell Dearborn, dated May 2, 2001, recommending Council adopt said resolution.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council member Dando and unanimously carried, Resolution No. 70366, entitled: “A Resolution of the Council of the City of San José Approving the Submittal of the Enterprise Zone Five-Year Extension Application to CTTCA and Making the Necessary Finding Required by CTTCA”, was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

4.4 Adoption of a resolution expressing its intent to issue up to $12,000,000 in multifamily tax-exempt revenue bonds to finance the acquisition-rehabilitation of a 96-unit family rental housing development, Sunset Square Family Apartments Development, located at 2080 Alum Rock Avenue. Council District 5. (Finance/Housing)

Documents Filed: Memorandum from Director of Finance Scott P. Johnson, and Acting Director of Housing Leslie Corsiglia, dated May 2, 2001, recommending Council adopt said resolution.

Discussion/Action: Upon motion by Council Member Campos, seconded by Council Member LeZotte and unanimously carried, Resolution No. 70367, entitled: “A Resolution of the Council of the City of San José Providing Preliminary Approval of the Issuance of Up to $20 Million in Multi-Family Revenue Bonds for the Purpose of Providing Financing for Sunset Square Family Apartment Project”, was adopted.

Vote: 9-0-2-0. Absent: Chavez, Diquisto.

4.5 (a) PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located on the east side of North White Road, approximately 450 feet north of McKee Road, from County to A(PD) Planned Development Zoning District, to allow 157 affordable multiple family attached residential units. (Owner, Joe Leach, JSM Enterprises). CEQA: Negative Declaration. Director of Planning, Building and Code Enforcement and Planning Commission recommend approval (6-0-1).

PDC 01-01-002 - District 5

(Continued from 5/1/01 – Item 11.4 and 5/15/01 – Item 11.4)

(b) Approval of the following actions regarding the North White Road Family Apartments Housing Development:

(1) Hold the TEFRA Hearing for the issuance of up to $20,000,000 in tax-exempt multifamily housing revenue bonds.

(2) Adoption of a resolution:

(a) Expressing its intent to issue up to $20,000,000 in multifamily tax-exempt revenue bonds to finance the construction of a 157-unit family rental housing project located in the 400 block of North White Road.

(b) Authorizing the Director of Housing to file an application with California Debt Allocation Committee (CDLAC) for an allocation of up to $20,000,000 in private activity bonds.

(c) Authorizing the Director of Housing to negotiate and execute a Deposit and Escrow Agreement with North White Road Associates, L.P., an affiliate of JSM Enterprises, for the CDLAC Application for the Development.

Council District 5.

(Finance/Housing)

(Deferred from 5/15/01 – Item 4.4)

(c) Adoption of a resolution:

(1) Approving business terms for an acquisition/predevelopment loan of up to $8,000,000 to JSM Enterprises, Inc., or its designated partnership, for the development of the 157-unit North White Road family project with units affordable to low- and very low-income households, on a 3.83-acre site located on the east side of North White Road, approximately 450 feet north of McKee Road.

(2) Approving an additional $1,985,000 for construction financing for a total fund reservation of up to $9,985,000 for the project.

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

CEQA: ND. Council District 5. (Housing)

Documents Filed: (1) Revised memorandum from Council Member Campos, dated May 22, 2001, recommending Council approve the 157-affordable multiple family housing project as proposed by JSM Enterprises. (2 Memorandum from Acting Director of Housing, Leslie Corsiglia, dated May 2, 2001, recommending Council adopt the resolution approving business terms and construction financing for the project. (3) Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated April 19, 2001, transmitting Staff’s report on PDC 01-01-002, dated April 19, 2001 and recommending approval of the proposed Planned Development Prezoning. (4) Memorandum from Director of Finance Scott P. Johnson, and Acting Director of Housing Leslie Corsiglia, dated April 25, 2001, recommending Council take proposed actions related to the North White Road Family Apartments Housing Development. (5) Memorandum from Planning Commission Secretary James R. Derryberry, dated May 10, 2001, stating the Planning Committee voted to recommend that the City Council adopt an ordinance prezoning the subject site as proposed by the applicant. (6) Revised Exhibit for Alternative Plan #3 of the podium level at the White Road Apartment Complex. (7) Public Hearing Notice to consider a change in Zoning before the Planning Commission on April 25, 2001 and the City Council on May 1, 2001 for PDC 01-01-002, dated, April 4, 2001, and Proof of Publication executed on April 13, 2001, submitted by the City Clerk. (8) Public Hearing Notice of the City Council’s intent to issue tax-exempt multi-family housing revenue bonds for the construction of the North White Road Family Apartments, dated April 20, 2001 and Proof of Publication executed on April 27, 2001, submitted by the City Clerk. (9) Affidavit of Posting of the Notice of Public Hearing on the issuance of tax-exempt multi-family housing revenue bonds, dated April 27, 2001.

Discussion/Action: Mayor Gonzales opened the public hearing on the planned development rezoning of the subject property and the TEFRA public hearing on the issuance of the tax-exempt multi-family housing revenue bonds. Representing JSM Enterprises, Shiloh Ballard of Housing Action Coalition, Phyllis Ward representing Affordable Housing Network, and Charlotte Casey spoke in favor of the proposed White Road development. Speaking in opposition to the McKee/White Road project development were Linda Elroa and Judy Sakamoto.

Council Member Campos stated affordable housing is a citywide need, and the project proposed by JSM Enterprises is a multiple family housing project, which would greatly assist in addressing the need for additional affordable housing. She recommended Council approve the housing project as proposed by JSM Enterprises. To ensure a quality project, as well as addressing the quality of life issues of new and existing residents, she further recommended that Staff and/or the Developer (1) work toward expediting the widening of White Road from Penitencia Road to McKee Road as proposed in the 2001-02 Capital and the 2002-06 CIP Budgets to address existing and potential traffic impacts; (2) work to redesign the two adjacent buildings at the front end of the project from three-story to two-story elevations to be compatible with the characteristics of the existing neighborhood; (3) work to include on-site signage at the driveway furthest south on the project site to indicate a right turn/left tune only; (4) work with County representatives, the developer, and community members to identify and implement traffic calming efforts; (5) include additional design articulation to the exterior of the complex along White Road to offer an appealing design to the tenants; and (6) that the developer include additional landscaping along the front of the project at White Road. She stated the proposed recommendations cited above are to supersede recommendations from the Planning Staff and Planning Commission.

Upon motion by Council Member Campos, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, the public hearings were closed, the recommendations proposed in the May 22, 2001 memorandum from Council Member Campos were approved, and Ordinance No. 26394, entitled: “Ordinance of the City of San José Rezoning Certain Real Property situated on the East Side of North White Road, Approximately 450 Feet North of McKee Road”, was passed for publication; Resolution No. 70368, entitled: “A Resolution of the Council of the City of San José Expressing Its Intent to Issue Tax Exempt Debt for the Construction and Development of Multi-Family Housing and Taking Related Actions (The North White Road Family Apartment Project)”; and Resolution No. 70369, entitled: “A Resolution of the Council of the City of San José (i) Approving Business Terms For an Acquisition/Predevelopment Loan Of Up to $8,000,000 to JSM Enterprises, Inc. Or Its Designated Partnership, For the Development of the 157-Unit North White Road Family Project With Units Affordable to Low- and Very-Low Income Households on a 3.83 Acre Site Located on the East Side of North White Road, Approximately 450 Feet North of McKee Road, (ii) Approving An Additional $1,985,000 For Construction Financing for a Total Fund Reservation of Up to $9,985,000”, were adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

4.6 Acceptance of the Downtown Historic Resources Survey (Downtown Core Survey). Council District 3.

(Planning, Building and Code Enforcement)

Documents Filed: Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated May 2, 2001, stating the Historic Landmarks Commission recommends City Council accept the downtown Core Survey.

Discussion/Action: Upon motion by Council Member Dando, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, the Historic Landmarks Commission Phases I and II Downtown Core Survey was accepted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

4.7 Adoption of an urgency ordinance and approval of a regular ordinance amending Chapter 7.08 of Title 7 of the San José Municipal Code:

(a) Amending Chapter 7.08 of Title 7 by amending the definition of "Pet Shop"; and

(b) Creating a definition in Chapter 7.08 of Title 7 of "Building" for the purposes of Chapter 7; and

(c) Amending the conditions relating to animal facilities in Section 7.08.730; and

(d) Amending the location of animal sales in Section 7.08.830.

(Planning, Building and Code Enforcement)

Documents Filed: (1) Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated May 11, 2001, recommending Council adopt an urgency ordinance and approve a regular ordinance to ensure prohibition of outdoor animal sales. (2) Letter from Ohlone Humane Society, Wildlife Rehabilitation Center, President C.A. Williams, dated May 22, 2001, supporting the proposed ordinance.

Discussion/Action: The following individuals spoke in favor of the proposed actions: Kathleen Flynn, Dedicated Animal Rights Educators, Inc.; Alfredo Kuba, South Bay Chapter of the Prevention of Cruelty to Animals; and Joy Baker, Baker’s Feline Friends, Inc. William J. Garbett spoke against the proposed action. Urgency Ordinance No. 26395, entitled: “An Urgency Ordinance of the City of San José Amending Chapter 7.08 of Title 7 of the San José Municipal Code by Amending the Definition of ‘Pet Shop’ in Section 7.08.140, Adding a Definition of ‘Building’ For the Purposes of Title 7; Amending the Conditions Relating to Animal Facilities in Section 7.08.730; Amending the Location of Sales in Section 7.08.830; and Setting Forth the Facts Constituting Such Urgency”, was adopted; and Ordinance No. 26396, entitled: “An Ordinance of the City of San José Amending Chapter 7.08 of Title 7 of the San José Municipal Code by Amending the Definition of ‘Pet Shop’ in Section 7.08.140, Adding a Definition of ‘Building’ For the Purposes of Title 7; Amending the Conditions Relating to Animal Facilities in Section 7.08.730; Amending the Location of Sales in Section 7.08.830”, was passed for publication. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

4.8 PUBLIC HEARING and adoption of a resolution vacating a portion of the light and air easement (building setback line) that lies within Lot 8 of Tract No. 2046 Westgate Park, located at the southwest corner of Hamilton and Campbell Avenues. CEQA: Negative Declaration. Council District 1. (Public Works)

Documents Filed: (1) Memorandum from Acting Director of Public Works Rajeev Batra, dated May 2, 2001, recommending Council adopt said resolution. (2) Affidavit of Posting of the Notice of Vacation of a portion of the light and air easement on Hamilton and Campbell Avenues, dated May 4, 2001, submitted by the Department of Public Works, Development Services Division. (3) Resolution No. 70305 of the Council setting a public hearing to consider whether to vacate a portion of the light and air easement adjacent to Hamilton and Campbell Avenues, adopted by Council on April 24, 2001, and Proof of Publication of Resolution No. 70305, executed on May 8, 2001, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the vacation of the subject property. There was no discussion from the Floor. Upon motion by Council Member LeZotte, seconded Vice Mayor Shirakawa, Jr. and unanimously carried, the public hearing was closed and Resolution No. 70370, entitled: “Resolution of the Council of the City of San José Vacating a Portion of the Light and Air Easement (Building Setback Line) Adjacent to Hamilton and Campbell Avenues”, was adopted.

Vote: 9-0-2-0. Absent: Chavez, Diquisto.

4.9 Adoption of a resolution by the City Council hearing and deciding any challenges to the election for the Project Area Committee for the proposed Strong Neighborhoods Initiative Redevelopment Project Area, finding that all adopted election procedures were followed in the election of the PAC, and approving the PAC as elected and appointed. (Redevelopment Agency)

Documents Filed: None.

Discussion/Action: This item was dropped.

4.10 Adoption of a resolution:

(a) Approving business terms for an acquisition/predevelopment loan of up to $2,504,170 for the McLaughlin Avenue Senior Apartments to ROEM Development Corporation, or its designated partnership, for a 61-unit housing development affordable to very low-income senior households on a 1.55-acre site located at 1275 McLaughlin Avenue, south of Owsley Avenue.

(b) Approving an additional fund reservation of up to $1,390,830 for construction and permanent financing for the development.

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

CEQA: ND. Council District 7. (Housing)

(Rules Committee referral 5/16/01)

Documents Filed: (1) Supplemental memorandum from Acting Director of Housing, Leslie Corsiglia, dated May 18, 2001, noting the reasons for replacement supplemental report and recommending Council adopt said resolution. (2) Memorandum from Acting Director of Housing, Leslie Corsiglia, dated May 15, 2001, noting the reason for addendum and recommending Council adopt said resolution.

Discussion/Action: Speaking in support of the proposal were Robert Emami, representing ROEM Corporation, and Craig Breon, Executive Director of Santa Clara County Audubon Society. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Williams and unanimously carried, Resolution No. 70371, entitled: “A Resolution of the Council of the City of San José (i) Approving Up to $2,504,170 For an Acquisition and Predevelopment Loan to ROEM Development Corporation or Their Designated Limited Partnership For the Development of a 61 Unit Rental Housing Extremely Low Income Persons and Families, (ii) Approving a $1,390,830 Fund Reservation For Construction and Permanent Loan (iii) Authorizing the Director of Housing to Negotiate and Execute All Necessary Documents Evidencing Such Loans On Behalf of the City, and (iv) Finding That the Use of 20% Housing Funds and Other Agency Funds For the Subject Project is a Benefit to the Redevelopment Project Areas in San José”, was adopted. Council approved Staff’s recommendation as proposed in the 05/18/01 supplemental memorandum. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

4.11 Approval of an ordinance of the City of San José amending Title 9 of the San José Municipal Code by adding a new Chapter 9.54 to restrict the discing of vegetation on certain lands. CEQA: Exempt.

[Economic Development and Environment Committee referral 5/7/01 – Item 4.1(d)]

Documents Filed: None.

Discussion/Action: This item was deferred to June 5, 2001.

Council Member Campos left Chambers at this point in the meeting.

TRANSPORTATION SERVICES

6.1 Traffic Calming Advisory Committee (Ad Hoc) – May 10, 2001

Documents Filed: Traffic Calming Advisory Committee report of May 10, 2001.

(a) Report on Multi-modal Intersection Level of Service Policy. Attachment: Memorandum from Director of Transportation, Wayne K. Tanda, dated April 30, 2001, stating Staff will present an oral report and presentation on this item.

The Committee accepted the staff report.

(b) Report on Crash Reduction Program. Attachment: Memorandum from Director of Transportation, Wayne K. Tanda, dated May 1, 2001, recommending acceptance of the status report on San José crash reduction programs.

The Committee accepted the staff report.

(c) Review of Traffic Calming Project Priorities and Criteria. Attachment: Memorandum from Director of Transportation, Wayne K. Tanda, dated May 1, 2001, stating Staff will present an oral report to Committee.

The Committee agreed to the handling of requests on a first-in, first-out basis, with conditions, and schools moved to the top of the list, and accepted the staff report.

(d) Oral petitions

None Presented.

(e) Adjournment

The Committee adjourned at 4:05 p.m.

Discussion/Action: Upon motion by Council Member Reed, seconded by Council Member LeZotte and unanimously carried, the Traffic Calming Advisory Committee Report and actions of May 10, 2001 were accepted. Vote: 8-0-3-0. Absent: Campos, Chavez, Diquisto.

Council Member Campos returned to Chambers at 3:27 p.m.

ENVIRONMENTAL & UTILITY SERVICES

7.1 Adoption of a resolution to reaffirm the City’s commitment to the preservation of the Coyote Valley greenbelt. (Mayor)

(Deferred from 5/8/01 – Item 7.3 and 5/15/01 – Item 7.2)

Documents Filed: Memorandum from mayor Gonzales, dated May 21, 2001, recommending Council adopt said resolution.

Discussion/Action: Executive Director of Santa Clara County Audubon Society spoke in support of the City’s continued commitment to preservation of the Greenbelt. William J. Garbett spoke against the proposed action. Upon motion by Council Member Williams, seconded by Council Member Reed and unanimously carried, Resolution No. 70372, entitled: “A Resolution of the Council of the City of San José Reaffirming the City of San José’s General Plan Policies Pertaining to the Coyote Valley Greenbelt”, was adopted. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

7.2 Approval to submit a grant application for Downtown replacement parking for the Brownfields Economic Development Initiative, administered by the U.S. Department of Housing and Urban Development, in the amount of $2,000,000. (Redevelopment Agency)

(Orders of the Day)

Documents Filed: Memorandum from City Manager Del D. Borgsdorf, and Redevelopment Agency Executive Director Susan F. Shick, dated May 22, 2001, recommending approval to submit said application.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Williams and unanimously carried, the submission of the grant application for Downtown replacement parking was approved. Vote: 9-0-2-0. Absent: Chavez, Diquisto.

AVIATION SERVICES

8.1 Approval of an Airline Operating Agreement and License with Air Canada for the period July 1, 2001 through November 30, 2007, with projected annual revenue to the City in the amount of $660,000. CEQA: Resolution No. 67380. (Airport)

Documents Filed: None.

Discussion/Action: This item was deferred to May 29, 2001.

CLOSED SESSION REPORT

Disclosure of Closed Session Action of May 22, 2001 submitted by City Attorney, J. Richard Doyle:

A. Authority to Enter Litigation Cases as Amicus Curiae:

1. Case Name: City of Auburn, et al. v. Qwest

Adverse Party or Parties: Qwest

Substance of Litigation: Whether Section 253 of the Federal Telecommunications Act preempts a city’s ability to regulate and condition use of the public right-of-way by telecommunications providers and the scope of that preemption.

Council Vote: Ayes: Campos, Cortesé, Dando, LeZotte, Reed, Shirakawa, Jr., Williams, Yeager

Noes: None.

Absent: Chavez, Diquisto; Gonzales

Disqualified: None.

OPEN FORUM

Richard Calhoun asked Council to implement speedy low-cost suggestions submitted by the Alum Rock Park neighborhood to correct (1) increased nuisance caused by Alum Rock Park visitors, (2) decreased personal safety in surrounding neighborhood, (3) increased risk of vehicle accidents, and (4) increased risk of injury and/or death.

CLOSED SESSION

Following Open Forum, Council reconvened Closed Session in Room 204 to consider labor negotiations.

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

Absent: Council Members: Chavez (excused), Diquisto (excused).

RECESS/RECONVENE

By unanimous consent, Council adjourned Closed Session at 5:15 p.m. and reconvened at 7:05 p.m. in Council Chambers for the Public Hearing on Operating and Capital Budgets and Proposed 2001-2002 Fees and Charges.

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

Absent: Council Members: Chavez (excused), Cortesé (excused), Diquisto (excused)

PUBLIC HEARINGS

11.1 PUBLIC HEARING on the Proposed Operating and Capital Budgets for FY 2001-02, the Proposed Five-Year Capital Improvement Program for 2002-2006, the Proposed FY 2001-02 City Departmental Fees and Charges, and the Mayor’s FY 2001-02 Final Budget Modifications Memorandum. (City Manager's Office)

(Continued from 5/21/01 – Item 11.1)

Documents Filed: (1) Memorandum from Budget Director, Larry D. Lisenbee, dated May 8, 2001, transmitting the document containing proposed fees and charges for the 2001-2002 fiscal year. (2) Letter from Patricia Brown Moriarty, Chairperson, San José Senior Citizens Commission, dated May 14, 2001, urging Council to consider the Commission’s recommendations regarding the Fiscal Year 2001-2002 Budget.

Discussion/Action: Mayor Gonzales opened the public hearing on the Proposed Budgets for FY 2001-02 and 2002-2006, and advised the public that Council action on the Budgets would occur during the June 12, 2001 meeting of the City Council. He stated the Mayor’s Budget Office would review public comments and incorporate funding requests into the Budget, as applicable. The following individuals addressed Council on various aspects of the Budgets: Bill Hughes, Berryessa Advisory Council; Don Blankenship, San José Senior Citizens Commission; Stan Butler, San José State University National Youth Sports Program; Amy Glad, Homebuilders Association of Northern California; Bill Schreeder, Material Recovery; Gil Cheso, Newby Island Lan; Robert Gill, Indo-American Senior Center; and Lurdes Rivera-Murphy, Alviso Community Center.

ADJOURNMENT

The Council of the City of San José adjourned at 7:30 p.m.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK