MINUTES OF THE CITY COUNCIL

SAN JOSÉ, CALIFORNIA TUESDAY, JUNE 19, 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, Chavez, Cortesé, Dando, Diquisto, LeZotte, Reed, Shirakawa Jr., Williams, Yeager; Gonzales

Absent: Council Members: None.

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 with respect to existing litigation pursuant to Government Code Section 54956.9 Subsection (a) to consider the cases of (1) Thomas v. Ngo, et al.; (2) Pham v. City of San José, et al.; (3) Wing and A Prayer, Inc. v. City of San José; and (4) City of San José v. Morgan Hill Unified School District, et al.; (B) confer with Legal Counsel regarding anticipated litigation involving a matter where there is significant exposure to litigation pursuant to subdivision (b) of Section 54956.9 of the Government Code; and (C) 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, Chavez (entered Chambers at 2:00 p.m.), Cortesé, Dando, Diquisto, LeZotte, Reed, Shirakawa Jr., Williams, Yeager; Gonzales

Absent: Council Members: None.

INVOCATION

Under the direction of their conductor, The Voices for Diversity Singers Shirley Hudson, Rodan Biage, Paul Hawkins, Rusty Percy, Jeremy Redison, Kelly Squatter, Allison Vickery, Michael Jackson, Dean Harpster, and Amber Williams presented songs reminiscent of life in the Islands and in Africa. (District 6)

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 with two additional actions: Item 7.3 was deferred to June 26, 2001, and Item 2.28 was dropped. Vote: 10-0-1-0. Absent: Chavez.

CEREMONIAL ITEMS

1.2 Presentation of plaques to Timothy Eng for 2 years 2 months service on the Youth Commission; and to Danielle Boulé for 1 year 8 months service on the Youth Commission; and to Jennifer Leung for 1 year nine months service on the Youth Commission. (Mayor)

Documents Filed: None.

Discussion/Action: Mayor Gonzales presented plaques to Timothy Eng and Jennifer Leung with Council’s appreciation for their service to the City of San José. The Plaque for Danielle Boulé will be mailed, as the honoree was unable to attend the meeting.

CONSENT CALENDAR

Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Reed and unanimously carried, the Consent Calendar was approved and the below listed actions were taken as indicated. Vote: 10-0-1-0. Absent: Chavez.

2.1 Approval of City Council Minutes for Regular meeting of March 27, 2001

Documents Filed: Minutes of the regular meeting of March 27, 2001.

Discussion/Action: The Minutes were approved. Vote: 10-0-1-0. Absent: Chavez.

2.2 (a) Final adoption of Ordinance No. 26404 – Grants a Commercial Solid Waste and Recyclables Collection Franchise to Smurfit-Stone Container Corporations dba Smurfit-Stone Recycling.

Documents Filed: Proof of publication of the title of Ordinance No. 26404 executed on June 12, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26404 was adopted. Vote: 10-0-1-0. Absent: Chavez.

(b) Final adoption of Ordinance No. 26405 – Rezones certain real property situated at the northwest corner of Locust Avenue and Edwards Street. PDC 01-04-051

Documents Filed: Proof of publication of the title of Ordinance No. 26405 executed on June 12, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26405 was adopted. Vote: 10-0-1-0. Absent: Chavez.

(c) Final adoption of Ordinance No. 26406 – Rezones certain real property situated on the northeasterly corner of Rue Ferrari and Bernal Road. PDC 01-02-012

Documents Filed: Proof of publication of the title of Ordinance No. 26406 executed on June 12, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26406 was adopted. Vote: 10-0-1-0. Absent: Chavez.

(d) Final adoption of Ordinance No. 26407 – Rezones certain real property situated at the westside of North 7^th Street, 250 feet northerly of East Taylor Street. PDC 0101-007

Documents Filed: Proof of publication of the title of Ordinance No. 26407 executed on June 12, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26407 was adopted. Vote: 10-0-1-0. Absent: Chavez.

(e) Final adoption of Ordinance No. 26408 - Rezones certain real property situated at the south side of Alum Rock Avenue. PDC 00-08-078

Documents Filed: Proof of publication of the title of Ordinance No. 26408 executed on June 12, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26408 was adopted. Vote: 10-0-1-0. Absent: Chavez.

(f) Final adoption of Ordinance No. 26409 - Rezones certain real property situated at the southwest corner of Coleman Avenue and West Hedding Street. PDC 01-03-037

Documents Filed: Proof of publication of the title of Ordinance No. 26409 executed on June 12, 2001, submitted by the City Clerk.

Discussion/Action: Ordinance No. 26409 was adopted. Vote: 10-0-1-0. Absent: Chavez.

2.3 Adoption of a resolution authorizing the City Attorney to negotiate and execute a third amendment to the legal services agreement with Jones Hall related to the development of the North Coyote Valley Industrial Campus Area, extending the term through December 30, 2001, at no additional cost to the City.

(City Attorney's Office)

Documents Filed: Memorandum from City Attorney, J. Richard Doyle dated June 7, 2001, recommending Council adopt said resolution.

Discussion/Action: Resolution No. 70420, entitled: “A Resolution of the Council of the City of San José Authorizing the City Attorney to Negotiate and Execute a Third Amendment to the Legal Services Agreement With Jones Hall, Extending the Term Through December 30, 2001”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

2.4 Approval of City Manager Del Borgsdorf’s travel to Atlanta, Georgia, from July 23-25, 2001, to present at the US Competitive Cities Congress in a session entitled “Developing and Implementing a Smart Growth Plan.”

(City Manager’s Office)

Documents Filed: Memorandum from City Manager, Del D. Borgsdorf, dated May 29, 2001, recommending Council approve said travel request.

Discussion/Action: The City Manager’s request to travel to Atlanta, Georgia, was approved. Vote: 10-0-1-0. Absent: Chavez.

2.5 Report on bids and award of contract for the Villages Reservoir Rehabilitation Project to the low bidder, Robison-Prezioso, Inc., in the amount of $359,100, and approval of a contingency in the amount of $35,910. CEQA: Exempt. Council District 8. (Environmental Services)

Documents Filed: Memorandum from Director of Environmental Services, Carl W. Mosher, dated May 22, 2001, recommending Council accept the bid report and approve award of said contract and contingency.

Discussion/Action: The report on bids was accepted and award of contract to Robison-Prezioso, Inc., the low bidder, including the contingency amount, were approved and execution of the contract authorized. Vote: 10-0-1-0. Absent: Chavez.

2.6 Report on bids and approval of award of contract for the Water Pollution Control Plant’s Grit Classifier Replacement and Emergency Shutoff Gas Valves Project to the low bidder, D.W. Nicholson Corporation, in an amount of $196,780, and approval of a contingency in an amount of $20,220. CEQA: Exempt.

(Environmental Services)

Documents Filed: (1) Memorandum from Director of Environmental Services, Carl W. Mosher, dated May 29, 2001, recommending Council accept the bid report and approve said contract award and contingency. (2) Supplemental report from San José/Santa Clara Water Pollution Control Plant, Treatment Plant Advisory Committee Chairperson, Rodney Diridon, Jr., dated June 19, 2001, recommending Council accept the bid report and approve said award and contingency.

Discussion/Action: The report on bids was accepted and award of contract and contingency to D.W. Nicholson Corporation, the low bidder, were approved and execution of the contract authorized. Vote: 10-0-1-0. Absent: Chavez.

2.7 Approval of award of open purchase orders for supplies, materials, equipment, and services for FY 2000-2001 #48, and authorization for the Director of General Services to execute the purchase orders. (General Services)

Documents Filed: (1) Memorandum from Acting Director of General Services, Francis B. McVey, dated May 29, 2001, recommending Council approve said open purchase orders list, and authorize the Director of General Services to execute the purchase orders. (2) Supplemental report from San José/Santa Clara Water Pollution Control Plant, Treatment Plant Advisory Committee Chairperson, Rodney Diridon, Jr., dated June 19, 2001, recommending approval of said purchase order.

Discussion/Action: The award of open purchase orders List No. 48 for Fiscal Year 2000-2001 was approved and execution of the purchase orders authorized. Vote: 10-0-1-0. Absent: Chavez.

2.8 Report on bids and award of purchase of a replacement Inductively-Coupled Plasma Spectrometer, for the Water Pollution Control Plant, to the lowest responsive bidder, Perkins Elmer Instruments, for a total cost of $104,733, including tax, and authorization for the Director of General Services to execute the purchase order. (General Services)

Documents Filed: (1) Memorandum from Acting Director of General Services, Francis B. McVey, dated May 29, 2001, recommending Council accept the bid report and award said purchase to the lowest responsive bidder, and authorize the Director of General Services to execute the purchase order. (2) Supplemental report from San José/Santa Clara Water Pollution Control Plant, Treatment Plant Advisory Committee Chairperson, Rodney Diridon, Jr., dated June 14, 2001, recommending Council accept the bid report and approve said award to the lowest responsive bidder, Perkins Elmer Instruments, and authorize the Director of General Services to execute the purchase order.

Discussion/Action: The report on bids was accepted and award of contract to Perkins Elmer Instruments, the lowest responsive bidder, was approved and execution of the contract authorized. Vote: 10-0-1-0. Absent: Chavez.

2.9 Report on bids and award the purchase of traffic signal control equipment for the Department of Transportation to the low bidder, Advanced Traffic Products, Inc., at a total cost of $98,220.60, including tax, and authorization for the Director of General Services to execute the purchase order. (General Services)

Documents Filed: Memorandum from Acting Director of General Services, Francis B. McVey, dated May 29, 2001, recommending Council accept the bid report and award said contract to the low bidder, Advanced Traffic Products, Inc., and authorize the Director of General Services to execute the purchase order.

Discussion/Action: The report on bids was accepted and award of purchase to Advanced Traffic Projects, Inc., the low bidder, was approved and execution of the purchase order authorized. Vote: 10-0-1-0. Absent: Chavez.

2.10 Adoption of a resolution authorizing the Director of General Services to execute an amendment to the agreement with Master Cleaning System, Inc. for park restroom maintenance, extending the contract through December 31, 2001, at a monthly cost of $20,000, and increasing maximum compensation by $140,000, from $367,943.46 to a total agreement amount not to exceed $507,943.46. (General Services)

Documents Filed: Memorandum from Acting Director of General Services, Francis B. McVey, dated May 29, 2001, recommending adopt said resolution.

Discussion/Action: Resolution No. 70421, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of General Services to Execute An Amendment to the Agreement With Master Cleaning System, Inc., For Park Restroom Maintenance”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

2.11 Adoption of a resolution authorizing the Director of General Services to negotiate and execute an agreement with DataStream for the purchase, installation, and training for a Computerized Maintenance Management System in the amount of $400,170. (General Services)

Documents Filed: Memorandum from Acting Director of General Services, Francis B. McVey, dated May 25, 2001, recommending Council adopt said resolution.

Discussion/Action: Council Member Williams asked for a staff report describing the benefits resulting from the investment, and that the preparation of the report occur following the installation and testing of the system. Resolution No. 70422, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of General Services to Negotiate and Execute An Agreement With DataStream For Training, Installation, and Purchase of a Computerized Maintenance Management System”, was adopted with direction to Staff to report back to Council, after installation of the equipment, on the performance of the system. Vote: 10-0-1-0. Absent: Chavez.

2.12 Adoption of a resolution accepting an in-kind donation of Cisco Systems network equipment, with a stated value of $317,642, from the San José Public Library Foundation to the San José Public Library. (Library)

Documents Filed: Memorandum from City Librarian, Jane Light, dated May 29, 2001, recommending Council adopt said resolution.

Discussion/Action: Resolution No. 70423, entitled: “A Resolution of the Council of the City of San José Authorizing Acceptance of an In-Kind Donation of Cisco Systems Network Equipment From the San José Public Library Foundation in an Amount Not to Exceed $317,642”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

2.13 Adoption of a resolution authorizing the City Manager to negotiate and execute an amendment to the agreement with the Grace Baptist Church to lease the Church's property for use as a community center at 484 East San Fernando Street and 146 South Tenth Street, for the period of June 1, 1999 through June 30, 2002, increasing the amount by $165,000, for a total amount of rent not to exceed $748,667. Council District 3. (Parks, Recreation and Neighborhood Services)

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated May 29, 2001, recommending Council adopt said resolution.

Discussion/Action: Resolution No. 70424, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Amendment to the Lease Agreement With Grace Baptist Church for Use of Church Property as a Community Center for the Period of June 1, 1999 Through June 30, 2002, Increasing the Rent by $165,000, for a Total Amount Not to Exceed $748,667”, was adopted.

Vote: 10-0-1-0. Absent: Chavez.

2.14 Adoption of a resolution authorizing the City Manager to execute a third amendment to the agreement with TRW, Inc., for the purchase and installation of a Police Automated Information System, extending the term of the agreement from June 30, 2001 to December 31, 2001, at no additional cost to the City. (Police)

Documents Filed: Memorandum from Chief of Police William M. Lansdowne, dated May 29, 2001, recommending Council adopt said resolution.

Discussion/Action: Resolution No. 70425, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Execute a Third Amendment to the Agreement With TRW, Inc., for the Purchase and Installation of a Police Automated Information System”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

2.15 Adoption of a resolution of intention to vacate a portion of the public service easement on Lots 1 and 5 of Tract No. 9257 on Fleming Avenue across Mahoney Avenue and setting a public hearing on August 7, 2001 at 1:30 p.m. CEQA: ND. Council District 5. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated May 29, 2001, recommending Council adopt said resolution.

Discussion/Action: Resolution No. 70426, entitled: “A Resolution of the Council of the City of San José Setting a Public Hearing to Consider Whether to Vacate a Portion of the Public Service Easement on Lots 1 and 5 of Tract 9257 on Fleming Avenue Across Mahoney Avenue”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

2.16 Approval of the first amendment to the agreement with Amphion Environmental, Inc., for consultant services for the Penitencia Creek Park Chain Reach 2 Master Plan Project, to extend the agreement term from September 21, 2001 to March 21, 2002, and increasing total compensation by $25,000, for a total agreement amount of $128,300. Council District 4. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated May 29, 2001, recommending Council approve the amendment to said agreement.

Discussion/Action: The first amendment to the consultant services agreement with Amphion Environmental, Inc., was approved and execution of the amendment authorized. Vote: 10-0-1-0. Absent: Chavez.

2.17 Approval to reject all bids for the Brigadoon Park Renovation Project, and authorization for the Director of Public Works to re-advertise and re-bid the project. CEQA: Exempt. Council District 8. (Public Works)

Documents Filed: None.

Discussion/Action: Dennis Valverde, West Coast Engineering, Inc., spoke against the proposed rejection of all bids and in favor of the award of the contract to West Coast as the lowest bidder. As a point of clarification, City Attorney Richard Doyle stated the project specifications required test results for the engineered wood fiber for the play area to be submitted with the bid; only one bidder submitted the test results with the bid and sent a letter of protest based on the failure of the other bids to submit the test results. He stated the two low bidders are non-responsive because they failed to submit the test results for the wood fiber, as required by the specifications, and the third bid was excessively high. Predicated on ambiguities contained in bid specifications for the renovation project, Staff was directed to review bid requirements and return to Council with specific answers that would allow the rejection of all bids or award of the contract to the lowest bidder. Upon motion unanimously adopted, this item was deferred to June 26, 2001 and Staff directed to clarify ambiguities related to project specification requirements for the submission of test results. Vote: 10-0-1-0. Absent: Chavez.

2.18 Report on bids and award of contract for the Brooktree Park Tot/Youth Lot Project to the low bidder, Robert A. Bothman, Inc., to include the base bid and Add Alternate No. 1 in the amount of $203,135, and approval of a contingency in the amount of $21,000. CEQA: Exempt. Council District 4. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated May 29, 2001, recommending Council accept the bid report and award said contract to the low bidder and approve the contingency amount.

Discussion/Action: The report on bids was accepted and award of contract to Robert A. Bothman, Inc., the low bidder, and the contingency amount were approved and execution of the contract authorized. Vote: 10-0-1-0. Absent: Chavez.

2.19 Report on bids and award of contract for the Street Lights Mayfair 2001 Project to the low bidder, Pacific Electric Company, in the amount of $190,000, and approval of a contingency in the amount of $19,000. CEQA: Exempt. Council District 5. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated May 29, 2001, recommending Council accept the bid report and award said contract and approve said contingency amount.

Discussion/Action: The report on bids was accepted and award of contract to Pacific Electric Company, the low bidder, and the contingency were approved and execution of the contract authorized. Vote: 10-0-1-0. Absent: Chavez.

2.20 Approval of the third amendment to add liquidated damages to the Implementation Agreement for the Transit Shelter Advertising Program with the Santa Clara County Transit District, also known as the Santa Clara Valley Transportation Authority, the County of Santa Clara, various cities in Santa Clara County, and Eller Media Company. CEQA: Exempt. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated May 29, 2001, recommending Council approve the third amendment to said agreement.

Discussion/Action: The third amendment to the Implementation Agreement with Santa Clara County Transit District, et al., was approved and execution of the agreement authorized. Vote: 10-0-1-0. Absent: Chavez.

2.21 Report on bids and award of contract for The Alameda-Billy DeFrank/Streetscape Improvements Project to the low bidder Wattis Construction, in the amount of $87,355 and approval of a contingency in the amount of $18,000. CEQA: Exempt. Council District 6. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated May 29, 2001, recommending Council accept the bid report and award said contract to the low bidder, and approve said contingency.

Discussion/Action: The report on bids was accepted and award of contract to Wattis Construction, the low bidder, and the contingency amount were approved and execution of the contract authorized. Vote: 10-0-1-0. Absent: Chavez.

2.22 Report on bids and award of contract for the MuniWater/Tuers Yard Building B Modification Project to the low bidder, Tucker Construction, Inc., in the amount of $288,400, and approval of a contingency in the amount of $30,000. CEQA: Exempt. Council District 7. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated May 29, 2001, recommending Council accept the bid report and award said contract to the low bidder, and approve said contingency

Discussion/Action: The report on bids was accepted and award of contract to Tucker Construction, Inc., the low bidder, and the contingency amount were approved and execution of the contract authorized. Vote: 10-0-1-0. Absent: Chavez.

2.23 Approval of a continuation agreement for consultant services for the Alviso Ring Levee Wetland Mitigation Project with URS Corporation Americas, extending the term from May 1, 2000 to December 31, 2002, and increasing the amount of compensation by $21,000, for a total agreement amount not to exceed $320,000. Council District 4. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated May 29, 2001, recommending Council approve said consultant services agreement.

Discussion/Action: The continuation agreement for consultant services with URS Corporation Americas was approved and execution of the agreement authorized. Vote: 10-0-1-0. Absent: Chavez.

2.24 Report on bids and award of contract for the construction of the Route 87 at Branham Lane Overcrossing Trail and Landscape Improvements Project to the low bidder, Bellicitti & Pellicciotti Construction Company, Inc. in the amount of $112,485, and approval of a contingency in the amount of $5,000. CEQA: Exempt. Council District 10. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated May 29, 2001, recommending Council accept the bid report and award said contract to the low bidder, and approve said contingency amount.

Discussion/Action: The report on bids was accepted and award of construction contract to Bellicitti & Pellicciotti Construction Company, the low bidder, and the contingency amount were approved and execution of the contract authorized. Vote: 10-0-1-0. Absent: Chavez.

2.25 Direction to the City Clerk to complete and submit the assessment district ballots in favor of the assessment to be levied on City owned property by proposed Maintenance District 19 (River Oaks Area Landscaping) in the amount of $261.44 for Fiscal Year 2001-02 and increased annually by the percent change in the CPI. Council District 4. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated June 4, 2001, recommending Council approve staff recommendation.

Discussion/Action: The direction to the City Clerk to complete and submit the assessment district ballots in favor of the assessment to be levied on City owned property by proposed Maintenance District 19 was approved. Vote: 10-0-1-0. Absent: Chavez.

2.26 Adoption of a resolution authorizing the reorganization of territory designated as Lick No. 27, which involves the annexation to the City of San José of 148.8 acres of land, located east of Zanker Road, west of Coyote Creek, north and south of SR-237 and generally bounded by the City of San José Annexation #735 – Lick No. 6, the City of San José Annexation #1960 – Lick No. 17, the City of Milpitas Annexation 1986-Lick No. 2, and the detachment of the same from the appropriate special districts including the Central Fire Protection District, County Library Service Area, and Santa Clara Valley County Water. CEQA: Resolution No. 70259. Council District 4. (Planning, Building and Code Enforcement)

(Deferred from 5/29/01 – Item 2.12 and 6/12/01 – Item 2.26)

Documents Filed: (1) Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated May 8, 2001, stating that before approving the reorganization proposal, the City Council is required to make the following findings: [a] That the unincorporated territory is within the City’s Urban Service Area as adopted by the Local Agency Formation Commission (LAFCO); [b] That the County Surveyor has determined the boundaries of the proposal to be definite and certain and in conformance with the LAFCO Road Annexation Policies; [c] That the proposal does not split lines of assessment or ownership; [d] That the proposal does not create islands or areas in which it would be difficult to provide municipal services; [e] That the proposal is consistent with the City’s adopted General Plan; [f] That the territory is contiguous to existing City limits; and [g] That the City has complied with all conditions imposed by LAFCO for inclusion of the territory in the City’s Urban Service Area. (2) Public Hearing Notice to consider a reorganization by resolution of the subject County pocket, dated May 2, 2001, and Proof of Publication executed on May 8, 2001, submitted by the City Clerk. (3) Proof of Publication of Resolution No. 70312 that was adopted May 1, 2001, and executed on May 18, 2001, submitted by the City Clerk.

Discussion/Action: Resolution No. 70427, entitled: “Resolution of the Council of the City of San José Ordering the Reorganization of Certain Uninhabited Territory Designated as Lick No. 27 Subject to Liability for General Indebtedness of the City”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

2.27 Approval of the City Manager's travel request, from June 23 - 25, 2001, to attend the U.S. Conference of Mayors and, on behalf of the City of San José, accept the 3Com Urban Challenge Grant award, which is aimed at cities that are effectively using technology in education to help bridge the Digital Divide, in the amount of $100,000. (City Manager's Office)

(Rules Committee referral 6/13/01)

Documents Filed: Memorandum from City Manager, Del D. Borgsdorf, dated June 12, 2001, recommending Council approve said travel request.

Discussion/Action: The City Manager’s travel request was approved. Vote: 10-0-1-0. Absent: Chavez.

2.28 Approval of proof of authorization for the YWCA as required by the State of California’s Office of Criminal Justice Planning. (Dando)

(Rules Committee referral 6/13/01)

Documents Filed: None.

Discussion/Action: This item was dropped.

2.29 Adoption of a resolution authorizing the City Attorney to negotiate and execute:

(a) The first amendment to the legal services agreement with Foley & Lardner (formerly Hopkins & Sutter) to increase the compensation by $85,000, to a total amount not to exceed $135,000; and

(b) The first amendment to the legal services agreement with Orrick, Herrington & Sutcliffe to increase the compensation by $50,000, to a total amount not to exceed $100,000.

(City Attorney’s Office)

(Rules Committee referral 6/13/01)

Documents Filed: Memorandum from City Attorney, J. Richard Doyle dated June 14, 2001, recommending Council adopt said resolution.

Discussion/Action: Resolution No. 70428, entitled: “A Resolution of the Council of the City of San José Authorizing the City Attorney to Negotiate and Execute a First Amendment to the Agreements For Legal Services Related to the San José International Airport With (A) Foley & Lardner, In An Additional Amount Not to Exceed $85,000 for Total Compensation Not to Exceed $135,000 and (B) Orrick, Herrington & Sutcliffe in an Additional Amount Not to Exceed $50,000 for a Total Compensation Not to Exceed $100,000”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

2.30 Approval of an ordinance authorizing a one-time transfer of $442,510 from the Anti-Tobacco Master Settlement Agreement Revenue Fund’s Anti-Tobacco Category to the Education Category for Cycle 2 (2001-2002) under Ordinance No. 26140. (City Attorney’s Office)

(Rules Committee referral 6/13/01)

Documents Filed: See Rules Committee Report of June 13, 2001.

Discussion/Action: Ordinance No. 26412, entitled: “An Ordinance of the City of San José Authorizing a One-Time Transfer of $442,510 From the Anti-Tobacco Master Settlement Agreement Revenue Fund’s Anti-Tobacco Category to the Education Category for Cycle 2 (2001-2002) Under Ordinance No. 26140”, was passed for publication. Vote: 10-0-1-0. Absent: Chavez.

2.31 Adoption of a resolution authorizing the City Manager to execute an amendment to the agreement with the County of Santa Clara for ALS First-Responder Services, to extend the agreement term from June 30, 2001 to September 30, 2001. (City Manager’s Office/Fire)

(Rules Committee referral 6/13/01)

Documents Filed: Memorandum from Senior Deputy City Manager, Darrell Dearborn, dated June 14, 2001, recommending Council adopt said resolution.

Discussion/Action: Resolution No. 70429, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Execute a Fifth Amendment to the Agreement With the County of Santa Clara For Advanced Life Support Paramedic First Responder Services to Extend the Term of the Agreement Through September 30, 2001”, was adopted. Vote: 10-0-1-0. Absent: Chavez.

2.32 TRACT NO. 9359 - Stallion Way north of Aborn Road - Braddock and Logan II, L.P., a California Limited Partnership By: Braddock & Logan Services, Inc., a California Corporation, General Partner (Developer) - 30 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. 9359. CEQA: ND. Council District 7. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated June 12, 2001, recommending Council approve parkland agreement and adopt said resolutions regarding Tract No. 9359.

Discussion/Action: The parkland agreement with Braddock and Logan II was approved and execution of the agreement authorized; and Resolution No. 70430, 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. 9359”; Resolution No. 70431, entitled: “A Resolution of the Council of the City of San José Approving and Accepting Final Map of Tract No. 9359”; Resolution No. 70432, 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. 9359”; and Resolution No. 70433, 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. 9359”, were adopted. Vote: 10-0-1-0. Absent: Chavez.

END OF CONSENT CALENDAR

STRATEGIC SUPPORT SERVICES

3.2 Report of the Rules Committee – June 6, 2001

Documents Filed: Rules Committee report of June 6, 2001.

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

The Committee forwarded the items to the Redevelopment Agency Board for consideration.

(b) City Council

(1) Review June 19, 2001 Draft Agenda

The Committee approved the June 19, 2001 City Council Agenda with three additions and directed the Administration provide Members with additional information on Item 3.4, a public hearing on cable-related needs of the community, since Council has heard this issue previously.

(2) Add New Items to June 12, 2001 Amended Agenda

The Committee recommended four additions to the June 12, 2001 City Council Agenda.

(c) City Council Committees

(1) Amendments to Council Committee Agendas. Attachment: Memorandum from Assistant to the City Manager, Deanna J. Santana, dated June 5, 2001, recommending approval to defer the approval of Council committee workplans from June 13, 2001 to June 20, 2001.

The Committee recommended approval to defer the approval of Council Committee workplans from June 13, 2001 to June 20, 2001 Rules Committee meeting.

(a) Finance and Infrastructure Committee

The Committee recommended the following changes to the

June 13, 2001 Agenda: Add an item entitled, “Investment Committee Minutes for May 29, 2001 (Finance)”; bring forward an item deferred from 05/23/01 entitled, “General Airport Revenue Bonds, Series 2001A – Plan of Finance (Finance)”; and defer to September 2001 an item entitled, “Annual Capital Project Program Status Report (Public Works).”

(b) Economic Development and Environment Committee

None Presented.

(c) Education, Neighborhoods, Youth, and Seniors Committee

None Presented.

(d) Ad Hoc Traffic Calming Advisory Committee. (1) Attachments: Memorandum from Director of Transportation, Wayne K. Tanda, dated June 5, 2001, providing information necessary to reschedule presentation of the report on “One-Way Couplet Streets”.

The Committee recommended rewording of Item (b) on the

June 14, 2001 Agenda, to read: “Informational Status Report on One-Way Couplet Policy”, and directed the Administration to provide Council Members with Traffic Calming meeting flyers and agendas for distribution to their constituents, and requested Staff expand the mailing list for receipt of Traffic Calming meeting notices.

(d) Meeting Schedules. Attachments: (1) Memorandum from Assistant to the City Manager, Deanna J. Santana, dated May 31, 2001, recommending approval of the proposed dates for the Council Policy Priority Setting Sessions. (2) Memorandum from Redevelopment Agency Administrative Officer Gary Miskimon, dated June 6, 2001, requesting Rules Committee approve rescheduling of the Study Session on Mixed Use/Retail from June 7, 2001 to June 20, 2000.

The Committee recommended approval to schedule Council Policy Priority Setting Sessions on October 25 and 26, 2001, 8:00 a.m. – 12:00 p.m., in Council Chambers; and recommended approval to reschedule the Redevelopment Agency’s Mixed Use/Retail Study Session from June 7, 2001 to June 20, 2001, 8:00 a.m. – Noon.

(e) The Public Record. Attachment: Memorandum from City Clerk, Patricia L. O’Hearn, dated May 31, 2001, listing the items transmitted to the Administration for the Public Record for the period May 31, 2001.

The Committee noted and filed the Public Record for the period May 23-29, 2001.

(f) Boards, Commissions and Committees.

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

(1) Advisory Commission on Rents.

Appoint 1 neutral commissioner. Attachments: (1) Memorandum from City Clerk Patricia L. O’Hearn to Council Member Campos, dated May 25, 2001, attaching a list of qualified applicants submitted by the Project Diversity Screening Committee for Advisory Commission on Rents. (2) Memorandum from City Attorney, J. Richard Doyle, dated May 2, 2001, highlighting major areas of potential conflicts disclosed by the application. (3) Memorandum from Council Member Campos, dated June 5, 2001, recommending that the City Clerk readvertise in August of 2001 vacant positions for one (1) neutral commission member to serve on the Advisory Commission on Rents.

The Committee directed the City Clerk to readvertise for a neutral representative.

(2) Airport Commission.

Appoint 2 commissioners. Attachments: (1) Memorandum from City Clerk Patricia L. O’Hearn to Council Member Disquisto, dated May 25, 2001, attaching a list of qualified applicants submitted by the Project Diversity Screening Committee for Airport Commission. (2) Memorandum from City Attorney, J. Richard Doyle, dated April 23, 2001, highlighting major areas of potential conflicts disclosed by the application. (3) Memorandum from Council Member Diquisto, dated May 29, 2001, recommending the appointment of Daniel Biesterveld and Rolayne Edwards to serve on the Airport Commission.

The Committee recommended appointment of Daniel Biesterveld and Rolayne Edwards to four-year terms ending June 30, 2005.

The Committee recommended the following appointments:

(3) Arts Commission.

Appoint 4 commissioners. Attachments: (1) Memorandum from City Clerk Patricia L. O’Hearn to Council Member Williams, dated May 25, 2001, attaching a list of qualified applicants submitted by the Project Diversity Screening Committee for Arts Commission. (2) Memorandum from City Attorney, J. Richard Doyle, dated May 2, 2001, highlighting major areas of potential conflicts disclosed by the application. (3) Memorandum from Council Member Williams, dated June 5, 2001, recommending the appointment of Francis Czyz and Desiree Reed, and reappointment of Incumbents Richard Ajluni and Stephen McCray to the Arts Commission.

The Committee recommended appointment of Richard Ajluni (Incumbent), Francis Czyz, Stephen McCray (Incumbent), and Desiree Reed to three-year terms ending June 30, 2004.

(4) Child Care Commission

Appoint 5 commissioners. Attachments: (1) Memorandum from City Clerk, Patricia L. O’Hearn, to Council Member Yeager dated May 25, 2001, attaching a list of qualified applicants submitted by the Project Diversity Screening Committee for Child Care Commission. (2) Memorandum from City Attorney, J. Richard Doyle, dated April 25, 2001, highlighting major areas of potential conflicts disclosed by the application. (3) Memorandum from Council Member Yeager, dated June 4, 2001, recommending the appointment of Karen Haegeli, Mark Christensen, Anthony Zambataro, and Larry Hancock to the Child Care Commission.

The Committee recommended appointment of Larry Hancock, Karen Naegeli, and Anthony Zambataro to four-year terms ending June 30, 2005 and Mark Christensen to an unexpired term ending June 30, 2004; and directed the City Clerk to readvertise for one vacant position.

(5) CDBG Steering Committee.

Appoint District 5 and District 7 representatives. (1) Memorandum from City Clerk Patricia L. O’Hearn to Council Member Reed dated May 25, 2001, attaching a list of qualified applicants submitted by the Project Diversity Screening Committee for the CDBG Steering Committee. (2) Memorandum from City Attorney, J. Richard Doyle, dated April 12, 2001, highlighting major areas of potential conflicts disclosed by the application. (3) Memorandum from Council Member Reed, dated June 4, 2001, recommending the City Clerk readvertise the two (2) open positions on the CDBG Steering Committee.

The Committee directed the City Clerk to readvertise for District 5 and District 7 representatives.

(6) Disability Advisory Commission

Appoint 4 commissioners. Attachments: (1) Memorandum from City Clerk Patricia L. O’Hearn to Council Member LeZotte dated May 25, 2001, attaching a list of qualified applicants submitted by the Project Diversity Screening Committee for the Disability Advisory Commission. (2) Memorandum from City Attorney, J. Richard Doyle dated April 13, 2001, highlighting major areas of potential conflicts disclosed by the application. (3) Memorandum from Council Member LeZotte, dated June 4, 2001, recommending the appointment of Sally McLeod and Thomas Matola to the Disability Advisory Commission, and extending the terms to December 31, 2001 for Charlotte Howard and Lila Kraai.

The Committee recommended extending the terms of Charlotte Howard (Incumbent) and Lila Kraai (Incumbent) until December 31, 2001 and appointed Thomas Matola to a four-year term ending June 30, 2005, and Sally McLeod to an unexpired term ending June 30, 2002.

(7) Disadvantaged Business Development Commission

Appoint 3 commissioners. Attachments: (1) Memorandum from City Clerk Patricia L. O’Hearn to Council Member Reed dated May 25, 2001, attaching a list of qualified applicants submitted by the Project Diversity Screening Committee for the Disadvantaged Business Development Commission. (2) Memorandum from City Attorney, J. Richard Doyle dated April 12, 2001, highlighting major areas of potential conflicts disclosed by the application. (3) Memorandum from Council Member Reed, dated June 4, 2001, recommending the City Clerk readvertise the open positions on the Disadvantaged Business Development Commission so that outreach can be made to the members of all the ethnic chambers of commerce for applicants.

The Committee directed the City Clerk to readvertise the three vacant positions.

(8) Historic Landmarks Commission

Appoint 3 commissioners. (1) Memorandum from City Clerk Patricia L. O’Hearn to Council Member LeZotte dated May 25, 2001, attaching a list of qualified applicants submitted by the Project Diversity Screening Committee for the Disability Advisory Commission. (2) Memorandum from City Attorney, J. Richard Doyle dated April 11, 2001, highlighting major areas of potential conflicts disclosed by the application. (3) Memorandum from Council Member LeZotte dated June 4, 2001, recommending no appointments to the Historic Landmarks Commission at this time but instead readvertise for all the openings and direct the City Clerk to hold interviews in July 2001 and make appointments in August so as to have a full commission appointed by September 1, 2001.

The Committee directed the City Clerk to readvertise the two vacant positions during the summer, with appointments to be made in August, 2001.

(9) Human Rights Commission

Appoint 2 commissioners. Attachments: (1) Memorandum from City Clerk Patricia L. O’Hearn to Council Member Yeager dated May 25, 2001, attaching a list of qualified applicants submitted by the Project Diversity Screening Committee for the Human Rights Commission. (2) Memorandum from City Attorney, J. Richard Doyle dated April 13, 2001, highlighting major areas of potential conflicts disclosed by the application. (3) Memorandum from Council Member Yeager, dated June 4, 2001, recommending the appointment of Robert Sippel and Linda Starr to fill the two terms on the Human Rights Commission.

The Committee recommended appointment of Robert Sippel and Linda Starr to unexpired terms ending December 31, 2003.

(10) Library Commission

Appoint 4 commissioners. Attachments: (1) Memorandum from City Clerk Patricia L. O’Hearn to Council Member Yeager dated May 25, 2001, attaching a list of qualified applicants submitted by the Project Diversity Screening Committee for the Library Commission. (2) Memorandum from Deputy City Attorney, Judith J. Propp dated May 1, 2001, highlighting major areas of potential conflicts disclosed by the application. (3) Memorandum from Council Member Yeager, dated June 4, 2001, recommending the appointment of Pia Moriarty, Melinda Hoppe, Timothy Karas, and John Ramos to fill the four terms on the Human Rights Commission.

The Committee recommended appointment of Timothy Karas and John Ramos to four-year terms ending June 30, 2005, Melinda Hoppe to an unexpired term ending June 30, 2002, and Pia Moriarty to an unexpired term ending June 30, 2003.

(11) Mobile Home Advisory Commission

Appoint 1 neutral representative. Attachment: Memorandum from City Clerk Patricia L. O’Hearn to Vice Mayor Shirakawa, Jr. dated May 25, 2001, stating there were no applications received for the Mobile Home Advisory Commission and that the Office of the City Clerk will readvertise for the vacant position in August 2001.

The Committee directed the City Clerk to readvertise for neutral representative.

(12) Parks and Recreation Commission

Appoint 4 commissioners Attachments: (1) Memorandum from City Clerk Patricia L. O’Hearn to Council Member Yeager, dated May 25, 2001, attaching a list of qualified applicants submitted by the Project Diversity Screening Committee for the Parks and Recreatioin Commission. (2) Memorandum from Deputy City Attorney, J. Richard Doyle dated April 25, 2001, highlighting major areas of potential conflicts disclosed by the application. (3) Memorandum from Council Member Yeager dated June 4, 2001, recommending the appointment of Elisa Koff-Ginsborg, Helen Chapman, Patricia Eaton, and Peter Peterson to fill the four terms on the Parks and Recreation Commission.

The Committee recommended appointment of Patricia Eaton, Elisa Koff-Ginsborg and Peter Petersen to four-year terms ending June 30, 2005, and Helen Chapman to an unexpired term ending June 30, 2003.

(13) Senior Citizens Commission

Appoint 6 commissioners. Attachments: (1) Memorandum from City Clerk Patricia L. O’Hearn to Council Member Dando dated May 25, 2001, attaching a list of qualified applicants submitted by the Project Diversity Screening Committee for the Senior Citizens Commission. (2) Memorandum from Deputy City Attorney, J. Richard Doyle dated May 2, 2001, highlighting major areas of potential conflicts disclosed by the application. (3) Memorandum from Council Member Dando dated June 4, 2001, recommending the appointment of Regina Zamba, John Walter, Gilbert Garcia, and Chandra Agrawal to fill four positions on the Senior Citizens Commission, that Fred Orillaneda be appointed to the term which expires on June 30, 2002, and that the sixth position remain vacant until December 2001, when the next round of appointments occur.

The Committee recommended appointment of Chandra Agrawal, Gilbert Garcia, John Walter (Incumbent), and Regina Zamba (Incumbent) to four-year terms ending June 30, 2005; Fred Orillaneda (Incumbent) to an unexpired term ending June 30, 2002; and directed the City Clerk to readvertise one vacant position.

(14) Traffic Appeals Commission

Appoint 3 commissioners. Attachments: Attachments: (1) Memorandum from City Clerk Patricia L. O’Hearn to Council Member Yeager dated May 25, 2001, attaching a list of qualified applicants submitted by the Project Diversity Screening Committee for the Traffic Appeals Commission. (2) Memorandum from Deputy City Attorney, J. Richard Doyle dated May 25, 2001, highlighting major areas of potential conflicts disclosed by the application. (3) Memorandum from Council Member Yeager dated June 5, 2001, recommending the appointment of Robin Biesterveld, Dale Osborn, and Emi Rhoda Totschinger to fill the three terms on the Traffic Appeals Commission. (4) Memorandum from Council Member Reed, dated June 4, 2001, recommending the appointment of Dale Osborn to the Traffic Appeals Commission.

The Committee recommended appointment of Robin Biesterveld, Dale Osborn, and Emi Totschinger to four-year terms ending June 30, 2005.

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

(1) Request to refer to the Finance and Infrastructure Committee consideration of connecting an audio feed for meetings in Room 204 to the City web site. Attachment: Memorandum from Council Member Reed dated May 29, 2001, requesting the Rules Committee schedule for Finance and Infrastructure Committee consideration the request to connect an audio streaming system for meetings in Room 204 to the City Website.

The Committee referred to the Finance and Infrastructure Committee the consideration of connecting an audio feed for meetings in Room 204 to the City web site.

(h) Administrative Reviews and Approval

(1) 2001 Mid-Year Federal Legislative Report. Attachment: Memorandum from Director of Intergovernmental Relations, Betsy Shotwell, dated May 30, 2001, recommending acceptance of San José’s Washington D.C. Lobbyist’s Mid-Year Report on the status of Federal Legislation and the City’s appropriation requests.

The Committee recommended acceptance of the City’s Washington, D.C. lobbyist’s mid-year report on the status of federal legislation and the City’s appropriation requests.

(2) Request by Council Member Dando to use Council General funds to attend League of California Cities meetings in Monterey, CA, July 25-29, 2001. Attachments: (1) Memorandum from Council Member Dando dated May 30, 2001, requesting authorization to use Council General Funds. (2) Memorandum from City Clerk Patricia L. O’Hearn dated May 31, 2001, complying with City Council Policy 9-5 requirement when requests to use Council General Funds are considered by the Rules Committee.

The Committee recommended approval for Council Member Dando to use Council General Funds to attend the League of California Cities’ meetings in Monterey, CA, July 25-29, 2001.

(i) Oral communications

William Garbett commented on quorum and evening agenda items.

(j) Adjournment

The meeting was adjourned at 3:15 p.m.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Reed and unanimously carried, the Rules Committee Report and actions of

June 6, 2001 were accepted. Vote: 10-0-1-0. Absent: Chavez.

3.3 Report of the Finance and Infrastructure Committee – June 13, 2001 (Partial)

Documents Filed: Finance and Infrastructure Committee report of June 13, 2001.

(c) Convention Center Refunding. Attachment: Memorandum from Director of Finance Scott P. Johnson, and Director of Redevelopment Agency Finance & Administration David Baum dated June 4, 2001, recommending the approval of the Plan of Finance for refinancing the 1993 Revenue Bonds, Series C and direct City Staff to work with the financing team to develop the necessary bond documents for Council approval on June 19, 2001 for the sale of tax-exempt and taxable fixed rate bonds for the purpose of refunding on a current basis the outstanding bonds used to finance the San José McEnery Convention Center.

The Committee accepted the staff report.

Discussion/Action: See Joint City Council/San José Financing Authority/Redevelopment Agency Agenda Item 1.1 for action taken.

3.5 (a) Adoption of amendments to the annual appropriation ordinance and funding sources resolution for various operating funds to reflect estimated FY 2000-2001 revenue receipts, expenses, and encumbrances.

(b) (1) Adoption of amendments to the annual appropriation ordinance and funding sources resolution amendments for various Capital Funds to reflect estimated 2000-2001 available resources, changes in project expenditure estimates or schedules, technical adjustments, and the addition of new Capital projects;

(2) Adoption of a resolution making certain determinations regarding the expenditure of Redevelopment Agency funds on certain public improvements; and

(3) Approval of the establishment of a new Civic Center Parking Fund.

(City Manager’s Office)

Documents Filed: (1) Memorandum from Budget Director Larry D. Lisenbee, dated June 13, 2001, recommending Council approve said appropriation ordinance and funding sources resolution amendments in various funds detailed in Attachment A of the memorandum. (2) Memorandum from Budget Director, Larry D. Lisenbee, dated June 14, 2001, recommending Council approve said appropriation ordinance and funding sources resolution amendments to various capital funds, adopt said resolution making certain determinations regarding related expenditures, and approve establishment of the Civic Center Parking fund to account for revenues and expenditures associated with the New Civic Center Parking Garages project.

Discussion/Action: Upon motion by Council Member Diquisto, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, Ordinance No. 26413, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26141 to Appropriate Moneys in Various Funds to Reflect Estimated 2000-2001 Revenue Receipts, Expenses and Encumbrances; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”; Resolution No. 70434, 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 Various Operating Funds”; Ordinance No. 26414, entitled: “An Ordinance of the City of San José Amending Ordinance No. 26141 to Appropriate Moneys in Various Capital Funds to Reflect Estimated 2000-2001 Available Resources, Changes in Project Expenditure Estimates and the Addition of New Capital Projects; and Providing That This Ordinance Shall Become Effective Immediately Upon Adoption”; Resolution No. 70435, “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 Various Funds”; Resolution No. 70436, entitled: “Resolution of the Council of the City of San José Making Certain Determinations Regarding the Expenditure of Redevelopment Agency Funds for Certain Public Improvements in The Alameda Redevelopment Project Area”, were adopted and the establishment of a new Civic Center Parking Fund approved. Vote: 10-0-1-0. Absent: Chavez.

3.6 (a) Adoption of a resolution approving the Fiscal Year 2001-2002 rates for Sewer Service and Use/Storm Sewer Service Charges.

(b) Adoption of the Annual Appropriation Ordinance, including transfers and loans for Fiscal Year 2001-2002 and the Manager’s Final Budget Addenda No. 50.

(c) Adoption of the Annual Funding Sources Resolution for Fiscal Year 2001-2002 and the Manager’s Final Budget Addenda No. 50.

(d) Adoption of a resolution in compliance with Article XIIIB of the Constitution of the State of California and as modified by Proposition 111 and SB 99 electing the population and inflation factors and establishing the Fiscal Year 2001-2002 Appropriation Limit.

(e) Adoption of a resolution repealing Parts 15, 16,17,18,19, and 23 of Resolution No. 59214, and amending Resolution No. 65466 to increase the quantity rates for potable water service by $00.09 per 100 cubic feet for all customers of the Municipal Water System, effective July 1, 2001.

(City Manager’s Office/Environmental Services)

Documents Filed: (1) Memorandum from Planning Commission Chair Jay Ross, dated June 6, 2001, recommending Council adopt the Proposed Capital Improvement Program for Fiscal Years 2001-2002 to 2005-2006. (2) Memorandum from Budget Director, Larry D. Lisenbee, dated June 12, 2001, recommending Council adopt a resolution taking actions with respect to the City’s 2001-2002 “Gann Limit”.

Discussion/Action: Upon motion by Council Member Williams, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, Resolution No. 70437, entitled: “A Resolution of the Council of the City of San José Setting a Schedule of Sewer Service and Use Charges for Fiscal Year 2001-2002 and Setting a Schedule of Storm Sewer Service Charges for Fiscal Year 2001-2002”; Ordinance No. 26415, entitled: “Annual Appropriation Ordinance of the City of San José for City’s Fiscal Year Beginning July 1, 2001 and Ending June 30, 2002, Appropriating and Authorizing the Expenditure of Moneys For the Operation of Each of the Offices, Departments, and Agencies of the City During Said Fiscal Year, and For Various Other Purposes and Objects For Said Fiscal Year; and Providing For Transfers From Various City Funds to Other City Funds as May Be Necessary During Said Fiscal Year”; Resolution No. 70438, entitled: “A Resolution of the Council of the City of San José Adopting the Estimated Sources of Funds For Fiscal Year 2001-2002”; Resolution No. 70439, entitled: “A Resolution of the Council of the City of San José Electing the Population and Inflation Adjustment Factors and Establishing the 2001-2002 Appropriations Limit of the City of San José Pursuant to California Constitution Article XIIIB, and Section 7900 Et. Seq. of the California Government Code”; Resolution No. 70440, entitled: “A Resolution of the Council of the City of San José Repealing Parts 15, 16, 17, 18, 19 and 23 of Resolution No. 59214 as Amended by Resolution Nos. 59962, 62274, 63030, 63595 and 64782 and Amending Resolution 65466 to Establish New Quantity Charges for Potable Water Service”, were adopted. Vote: 10-0-1-0. Absent: Chavez.

Council Member Chavez entered Chambers at this point in the meeting.

3.8 (a) Approval of an ordinance amending Chapter 3.36 of the San José Municipal Code to establish a medical benefits account in the Police and Fire Department Retirement Fund and to provide for reimbursement of certain Medicare Part B payments made by Police and Fire retirees.

(b) Approval of an ordinance amending Chapter 3.44 of the San José Municipal Code to provide a flat 3% cost-of-living adjustment effective February 1, 2002, for persons retired from the Police and Fire Department Retirement Plan and for survivors.

(Employee Relations)

Documents Filed: Memorandum from Director of Employee Relations, Alex Gurza, dated June 14, 2001, recommending Council approve said ordinances enhancing benefits for Police and Fire Department Retirement Plan retirees and survivors.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Dando and unanimously carried, Ordinance No. 26416, entitled: “An Ordinance of the City of San José Amending Chapter 3.36 of Title 3 of the San José Municipal Code to Establish a Separate Medical Benefits Account in the Police and Fire Department Retirement Fund for Medical and Dental Benefits and to Provide for Reimbursement of Police and Fire Retirees For Certain Medicare Part B Payments”; and Ordinance No. 26417, entitled: “An Ordinance of the City of San José Amending Chapter 3.44 of Title 3 of the San José Municipal Code to Provide a Flat 3% Cost-of-Living Adjustment Effective February 1, 2002 for Persons Retired From the Police and Fire Department Retirement Plan and for Survivors of Members or Retirees”, were passed for publication. Vote: 11-0-0-0.

3.9 Approval of a Council policy regarding the donation or sale of surplus City personal property. (General Services)

Documents Filed: Memorandum from Acting Director of General Services, Francis B. McVey, dated May 29, 2001, recommending Council approve said policy.

Discussion/Action: Upon motion by Council Member Dando, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, the revised City Council Policy for donation or sale of surplus City property was approved. Vote: 11-0-0-0.

3.10 Adoption of an urgency ordinance providing for the extension of the hiring pilot Citywide, excluding only public safety promotional exams covered by Memorandum of Agreements, until March 31, 2002. (Human Resources)

Documents Filed: (1) Memorandum from Director of Human Resources, Nona Tobin, dated June 6, 2001, recommending Council adopt said urgency ordinance. (2) Letter from Chairman of the Civil Service Commission Bill Brill, dated June 4, 2001, recommending Council approve the expansion and extension of the Hiring Pilot Project in accordance with the recommendations from the Human Resources Department and the agreement with the affected bargaining units.

Discussion/Action: Upon motion by Council Member Cortesé, seconded by Council Member Dando and unanimously carried, Ordinance No. 26418, entitled: “An Urgency Ordinance of the City of San José to Extend the Hiring Pilot Project Through March 31, 2002 and Expanding the Hiring Pilot to Apply to All City of San José Classified Civil Service Job Classifications Except Those Public Safety Promotional Classifications for Which Hiring Procedures are Covered by Memoranda of Agreement and Setting Forth the Facts Constituting Such Urgency”, was adopted. Vote: 11-0-0-0.

4.1 Report of the Economic Development & Environment Committee – June 4, 2001

Documents Filed: Economic Development & Environment Committee report of June 4, 2001.

(a) Status Report on Mayor’s Housing Production Team Referrals. Attachment: Memorandum from Acting Director of Housing, Leslie Corsiglia, dated May 24, 2001, submitting the May monthly update on the Administration’s progress in addressing the recommendations of the Housing Production Team.

The Committee accepted the status report.

(b) Recommendations on Green Building Program Guidelines. Attachments: (1) Memorandum from Director of Environmental Services Carl W. Mosher, Director of Planning, Building and Code Enforcement James R. Derryberry, and Acting Director of Public Works Rajeev Batra, dated May 25, 2001, recommending Council [a] accept the report on the Green Building Guidelines recommendations; [b] adopt the Green policies as development by the members of the community with the input of City Departments; and [c] approve implementation of specified actions for City of San José facilities. (2) Hard copy of Staff presentation on the Green Building Program – An Integral Program of the City’s Sustainable City Major Strategy. (3) Memorandum from Director of Environmental Services, Carl W. Mosher, dated March 20, 2001, submitting the report on Green Building recommendations and suggested timeline.

The Committee accepted the staff report and recommendations.

Discussion/Action: See Item 4.9 for Council Action Taken.

(c) Final Report on the CHAP Pilot Program and Recommendation for a Second CHAP Program. Attachment: Memorandum from Acting Director of Housing, Leslie Corsiglia, dated May 24, 2001, recommending Council adopt a resolution authorizing the Department of Housing to implement a two-year program to provide housing and supportive services to homeless families and individuals beginning in Fiscal Year 2001-02.

The Committee accepted the staff report.

Discussion/Action: See Item 4.10 for Council action taken.

(d) Third Quarter Downtown Housing Report. Attachment: Memorandum from Redevelopment Agency Executive Director, Susan F. Shick, dated June 4, 2001, submitting the Agency’s report on housing development activities in the Greater Downtown Area and in the Neighborhood & Industrial project areas for the third quarter of the 2000-2001 Fiscal Year.

The Committee forwarded the staff report to Council for acceptance, due to a lack of quorum.

(e) Status Report on the Implementation of the 1999-2004 Five-Year Spending and Operations Plan for Affordable Housing (Housing). Attachment: Memorandum from Acting Director of Housing, Leslie Corsiglia, dated May 30, 2001, submitting a status report on the implementation of the 1999-2004 five-year spending and operations plan for affordable housing that was adopted by the City Council in October 1999.

The Committee forwarded the staff report to Council for acceptance, due to a lack of quorum.

(f) Oral petitions

(1) Phyllis Ward, Affordable Housing Network, asked for the definition of a Historical Memo and asked what recommendations came out of the formation of the Downtown Strategy Group with regards to density and building height limitations.

(2) Amy Glad, Home Builders Association, requested consistence in the language of the first two Policy recommendations with the Green Building Program Guidelines report.

(3) Shiloh Ballard, Silicon Valley Manufacturing Group, acknowledged and commended Staff for taking the direction relative to the Green Building Program Guidelines.

(4) Saul Wachter, Affordable Housing Network, requested clarification on the Five-Year Housing Plan, specifically, which units would be addressing which economic level of future clients.

(g) Adjournment

The meeting was adjourned at 3:45 p.m.

Discussion/Action: Upon motion by Council member Williams, seconded by Council Member Chavez and unanimously carried, the Economic Development & Environment Committee Report and actions of June 4, 2001 were accepted with Item 4.1(b) acted upon at Item 4.9, and Council action on Item 4.1(c) taken at Item 4.10. Vote: 11-0-0-0.

4.2 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. (Planning, Building, and Code Enforcement)

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

(Deferred from 5/22/01 – Item 4.11 and 6/5/01 – Item 4.2)

Documents Filed: (1) Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 18, 2001, noting the reason for replacement memorandum and recommending Council approve said ordinance and direct staff to report back to the City Council with more accurate cost estimates and recommendations for funding. (2) Supplemental memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 13, 2001, recommending Council adopt said ordinance. (3) Memorandum from Assistant to the City Manager, Deanna J. Santana, dated May 21, 2001, forwarding the Economic Development & Environment Committee recommendation that Staff present the report to the full Council for action and that staff provide information on additional costs for the creation of firebreaks.

Discussion/Action: Council Member Dando expressed concerns related to the annual program cost, and pointed out potential fire hazards when cuttings are left unsecured on open-space sites, and she urged Staff to review the outreach plan and the added cost associated with notifying private property owners of the Program. Upon motion by Council Member Cortesé, seconded by Council Member Reed and unanimously carried, Ordinance No. 26419, entitled: “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”, was passed for publication with direction to Staff to add to the cost of implementing the Outreach Plan notifications to private property owners.

Vote: 11-0-0-0.

4.3 Adoption of a resolution of the City Council:

(a) Authorizing the issuance of special tax bonds in the aggregate principal amount of not to exceed $15,210,000, to be sold at a competitive sale in connection with Community Facilities District No. 6 (Great Oaks-Route 85).

(b) Approving the forms and authorizing the execution of the Fiscal Agent Agreement and certain other related financing documents, and directing and authorizing certain other related actions.

(c) Approving the forms and approving the use of the Official Notice of Sale and the Official Statement in connection with the competitive sale of the bonds, and directing and authorizing certain other related actions.

(d) Authorizing the City Manager to negotiate and execute an agreement to reimburse Equinix for the costs of right of way acquisition for the extension of Great Oaks Boulevard north of the intersection of Great Oaks Boulevard and State Route 85 in an amount not to exceed $2,282,431.

CEQA: Resolution No. 69699. Council District 2. (Finance/Public Works)

Documents Filed: (1) Supplemental Memorandum from Director of Finance, Scott P. Johnson, dated June 12, 2001, attaching a copy of the draft Official Statement for the Community Facilities District No. 6 Special Tax Bonds as discussed in the May 29, 2001 staff report. (2) Memorandum from Director of Finance Scott P. Johnson, and Acting Director of Public Works Rajeev Batra, dated May 29, 2001, recommending Council adopt said resolution. (3) Memorandum from Director of Finance, Scott P. Johnson, dated June 12, 2001, attaching for the Community Facilities District Special Tax Bonds report the Fiscal Agent Agreement, the Official Notice of Sale, and the Continuing Disclosure Certificate.

Discussion/Action: Upon motion by Council Member Williams, seconded by Council Member Diquisto and unanimously carried, Resolution No. 70441, entitled: “A Resolution of the Council of the City of San José Authorizing the Issuance of Special Tax Bonds of the City of San José for City of San José Community Facilities District No. 6 (Great Oaks-Route 85) and Approving Other Related Documents and Actions”, was adopted. Vote: 11-0-0-0.

4.4 TEFRA Hearing for the issuance of up to $25,000,000 in tax-exempt multifamily housing revenue bonds by California Statewide Community Development Authority for the Hidden Brooks Apartments Development. Council District 3.

(Finance/Housing)

Documents Filed: (1) Memorandum from Director of Finance Scott P. Johnson, and Acting Director of Housing Leslie Corsiglia, dated May 25, 2001, recommending Council take appropriate actions regarding Hidden Brooks Apartments Development. (2) Notice of Public Hearing on California Statewide Communities Development Authority’s intent to issue tax-exempt multi-family housing revenue bonds for the subject project, and Proof of Publication dated June 1, 2001, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the Federal Tax Equity Fiscal Responsibility Act (TEFRA) matter for the purpose of accepting public testimony on the issuance of tax-exempt private activity bonds for the subject development. There was no public testimony presented. Upon motion by Council Member Chavez, seconded by Council Member Diquisto and unanimously carried, the TEFRA hearing was closed. Vote: 11-0-0-0.

4.5 Adoption of a resolution:

(a) Authorizing the City Manager to negotiate and execute three agreements with Resources for Families and Communities for the Implementation of Neighborhood Revitalization Plans for the period July 1, 2001 to June 30, 2004 for:

(1) Rockspring Advisory Board, in an amount not to exceed $140,000;

(2) Edenvale/Great Oaks Coalition, in an amount not to exceed $510,600; and,

(3) East Dobern/Capitol-Goss Coalition, in an amount of $177,000.

(b) Authorizing the Director of Parks, Recreation and Neighborhood Services to approve reallocation of a portion of the totals mentioned above to new or different projects listed below by the Coalitions under the agreements:

(1) $4,800 for Rockspring.

(2) $393,704, of which $280,000 has already been allocated for specific projects for Edenvale/Great Oaks.

(3) $62,600 for East Dobern/Capitol-Goss.

CEQA: Resolution No. 65459. Council Districts 2, 5, and 7.

(Parks, Recreation and Neighborhood Services)

Documents Filed: Memorandum from Director of Parks, Recreation and Neighborhood Services, Mark Linder, dated May 29, 2001, recommending Council adopt said resolution.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Reed and unanimously carried, Resolution No. 70442, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute Grant Agreements With Resources for Families and Communities on Behalf of (1) Rockspring Advisory Board, (2) Edenvale/Great Oaks Coalition, and (3) East Dobern/Capitol-Goss Coalition for the Implementation of Neighborhood Revitalization Plans; and Authorizing the Director of Parks, Recreation and Neighborhood Services to Approve the Reallocation of Grant Funds to New or Different Projects Under the Agreements”, was adopted. Vote: 11-0-0-0.

4.6 Report on bids and award of contract for the construction of the Coleman, Narvaez, and White Median Island Landscape Improvements Project to the low bidder, Blossom Valley Construction Company, Inc., to include the base bid and Add Alternate Nos. 1 and 2 in the amount of $1,201,015, and approval of a $90,000 contingency. CEQA: Exempt. Council Districts 8 and 10. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated May 29, 2001, recommending Council accept the bid report and award said contract to the low bidder.

Discussion/Action: William J. Garbett spoke against the proposed action. Upon motion by Council Member Dando, seconded by Council Member Cortesé and unanimously carried, the report on bids was accepted and award of contract to Blossom Valley Construction Company, Inc., the low bidder, and the contingency amount were approved and execution of the contract authorized. Vote: 11-0-0-0.

4.7 Report on bids and award of contract to the low bidder for the West San Carlos Sidewalk Replacement Project, and approval of a 10 percent contingency. CEQA: Exempt. Council District 6. (Public Works)

Documents Filed: None.

Discussion/Action: This item was deferred to June 26, 2001.

4.8 Special Election and approval of actions relating to Community Facilities District No. 5A (North Coyote Valley Facilities) and Community Facilities District No. 5B (North Coyote Valley Services):

(a) Receive results of election from City Clerk for the Special Election for CFD No. 5A (North Coyote Valley Facilities).

(b) Adoption of a resolution declaring the results of the special election and directing the recording of the notice of the special tax lien for CFD No. 5A (North Coyote Valley Facilities).

(c) Adoption of an ordinance levying special taxes within CFD No. 5A (North Coyote Valley Facilities).

(d) Receive results of election from City Clerk for the Special Election CFD No. 5B (North Coyote Valley Services).

(e) Adoption of a resolution declaring the results of the special election and directing the recording of the notice of the special tax lien for CFD No. 5B (North Coyote Valley Services).

(f) Adoption of an ordinance levying special taxes within CFD No. 5B (North Coyote Valley Services).

CEQA: Resolution No. 69957. Council District 2. (Public Works)

Documents Filed: (1) Memorandum from Acting Director of Public Works Rajeev Batra, dated May 29, 2001, recommending Council hold special elections and take appropriate actions relating to Community Facilities District Nos. 5A and 5B. (2) Certified and sealed Statements of Official Ballot Results of Elections for Community Facilities District Nos. 5A and 5B, submitted by the City Clerk.

Discussion/Action: William J. Garbett spoke against the proposed action. City Clerk Patricia L. O’Hearn, reported the following official ballot results tabulated by the Office of the City Clerk for Community Facilities District No. 5A (North Coyote Valley Facilities): Of 1,369 qualified landowners, 1,153 votes were cast, 1,112 voted YES and 41 noted NO; therefore, 96.4% voted in favor of the District which meets the two-thirds voter-approval requirement; and Community Facilities District No. 5B (North Coyote Valley Facilities): Of 1,664 qualified landowners, 1,448 votes were cast, 1,407 voted YES, 41 voted NO; therefore, 97.2% voted in favor of the District which meets the two-thirds voter-approval requirement. Upon motion by Council Member Williams, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, Resolution No. 70443, entitled: “A Resolution of the Council of the City of San José Declaring Results of Special Election and Directing Recording of Notice of Special Tax Lien – City of San José Community Facilities District No. 5A (North Coyote Valley Facilities)”; Ordinance No. 26420, entitled: “An Ordinance of the City of San José Levying Special Taxes Within Community Facilities District No. 5A (North Coyote Valley Facilities)”; Resolution No. 70444, entitled: “A Resolution of the Council of the City of San José Declaring Results of Special Election and Directing Recording of Notice of Special Tax Lien – City of San José Community Facilities District No. 5B (North Coyote Valley Services)”; and Ordinance No. 26421, entitled: “An Ordinance of the City of San José Levying Special Taxes Within Community Facilities District No. 5B (North Coyote Valley Services), were adopted. Vote: 11-0-0-0.

4.9 Acceptance of the report on the Green Building Guidelines recommendations. (Environmental Services)

[Economic Development and Environment Committee referral 6/4/01 – Item 4.1(b)]

Documents Filed: (1) Memorandum from Assistant to the City Manager, Deanna J. Santana, dated June 14, 2001, submitting for Council review the Economic Development and Environment Committee report regarding Green Building Program Guidelines and recommendation for Council action. (2) Hard copies of the slide presentation on the City’s Green Building Program – “An Integral Program of the City’s Sustainable City Major Strategy”.

Discussion/Action: Director of Environmental Services Carl W. Mosher, Chief Deputy Director of Business Services Joni Pattillo, and Environmental Program Manager Mary Tucker presented a comprehensive overview and outlined the structure of the Green Building Policy of the Program, including the composition of the Steering Committee. They explained the purpose and benefits of the program and the identified key element of the Smart Energy Plan. Referencing the L.E.E.D. Program – Leadership In Energy & Environmental Design – Mary Tucker explained the rating system categories and the various levels of green building certification and discussed the environmental, economic and social benefits derived from the use of green building practices. She recommended Council (1) adopt Green Building Policy goals and incorporate green building principles for all City facilities; (2) adopt the San José LEED Green Building rating system for ongoing and future City program areas and City facilities; (3) provide leadership and guidance to encourage green building in the community; (4) for San José Facilities, (a) approve the Green Building Guidelines implementation goal that all new construction and major retrofit projects for all City facilities and buildings over 10,000 gross square feet of occupied space shall meet a “San José LEED™ Certified rating effective with the Fiscal Year 2002-2003 Budget Allocations; (b) direct Staff to review current 2001-2002 Capital Budgets to determine how budgeted projects could be incorporated into the Green Building recommendations, and include information related to Green Building Guideline compliance within each Project Award memorandum; and (c) direct the Environmental Services Department to continue to work with the members of the Green Building Task Force and the Work Group and other City Departments to implement the Green Building Policies and Guidelines and evaluate the program and report back to Council within one year; and (5) for Private Sector Facilities, (a) direct Staff to work with the community to encourage achievement of a “San José LEED™ Certified rating and identify and provide incentives and educational programs that help achieve those efforts; and (b) approve the first amendment to the grant agreement with the California Integrated Waste Management Board extending the agreement from April 30, 2001 to December 30, 2001. Shiloh Ballard, representing the Green Party, spoke in support of the proposed guidelines. Upon motion by Council Member LeZotte, seconded by Council Member Diquisto and unanimously carried, the report was accepted and the recommendations approved. Vote: 11-0-0-0.

4.10 Direction to the Department of Housing to design a two-year, $400,000 Phase II CHAP Program to provide housing and supportive services to homeless families and individuals, beginning in Fiscal Year 2001-02. (Housing)

[Economic Development and Environment Committee referral 6/4/01 – Item 4.1(c)]

Documents Filed: Memorandum from Assistant to the City Manager, Deanna J. Santana, dated June 14, 2001, submitting to Council the Economic Development and Environment Committee report and recommendation regarding the CHAP Pilot Program.

Discussion/Action: Acting Director of Housing Leslie Corsiglia reviewed the final report on the CHAP Pilot Program, two components of the Phase II Program, and recommendation for continuation of the Program with modifications designed to improve its performance in housing homeless families and individuals. The following individuals spoke in support of the CHAP Program and its continuation: Satish Rama; Scott Wagers and Cindy Jordan, representing Community Homeless Alliance Ministries; Betty Feldhym, representing Interfaith Council Housing Committee; Muliaga Togotogo; and Anna Jaramillo. Upon motion by Council Member Campos, seconded by Council Member Diquisto and unanimously carried, the staff recommendation was approved. Vote: 11-0-0-0.

RECREATION & CULTURAL SERVICES

5.2 Report on bids and award of contract for the Cahalan Park and Playa del Rey Park Play Area Renovation Project, the first to be funded with parks bond proceeds, to the low bidder, HRB Construction, to include the base bid and Add Alternate Nos. 1, 2, 3, and 4, in the amount of $856,210, and approval of a contingency in the amount of $86,000. CEQA: Exempt. Council District 10. (Public Works)

Documents Filed: (1) Supplemental memorandum from Acting Director of Public Works Rajeev Batra, dated June 13, 2001, noting the reason for the supplemental memorandum and recommending Council accept the bid report and award said contract to HRB Construction, the low bidder, and approve the contingency. (2) Memorandum from Acting Director of Public Works Rajeev Batra, dated May 29, 2001, recommending Council accept the bid report and award the contract to the low bidder and approve the seven percent contingency.

Discussion/Action: Upon motion by Council Member Dando, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, the report on bids was accepted and award of contract to HRB Construction, the low bidder, and the contingency amount were approved and execution of the contract authorized. Vote: 11-0-0-0.

5.3 Approval of an agreement with Anderson Brule Architects, Inc. for consultant services including project design, preparation of construction documents, and construction administration services for the new Central Branch Library Project, for the period July 2, 2001 to November 30, 2004, in a total amount not to exceed $1,068,990. Council District 7. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated May 29, 2001, recommending Council approve said consultant services agreement.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Diquisto and unanimously carried, the consultant services agreement with Anderson Brule Architects, Inc., was approved and execution of the contract authorized. Vote: 11-0-0-0.

TRANSPORTATION SERVICES

6.2 Report on bids and award of contract for the FY 2000-01 Paver Placed Surface Seal 2001 Project to the low bidder Windsor Fuel, Co. in the amount of $1,744,740, and approval of a contingency in the amount of $348,948. CEQA: Exempt. Council districts 1, 3, 4, 6, and 10. (Transportation)

Documents Filed: (1) Supplemental memorandum from Director of Transportation, Wayne K. Tanda, dated June 14, 2001, recommending Council accept the bid report and award said contract to the low bidder Windsor Fuel Co. and approve the contingency amount. (2) Memorandum from Director of Transportation, Wayne K. Tanda, dated

May 29, 2001, recommending Council accept the bid report and award of contract for the FY 2000-01 Paver Placed Surface Seal 2001 Project.

Discussion/Action: Upon motion by Council Member Williams, seconded by Council Member Reed and unanimously carried, the report on bids was accepted and award of contract to Windsor Fuel, Co., the low bidder, and the contingency amount were approved and execution of the contract authorized. Vote: 11-0-0-0.

6.3 Report on bids and award of contract for the FY 2000-01 Slurry Seal Project to the low bidder Bond Blacktop, Inc. in the amount of $1,687,735, and approval of a contingency in the amount of $337,547. CEQA: Exempt. (Transportation)

Documents Filed: (1) Supplemental memorandum from Director of Transportation, Wayne K. Tanda, dated June 14, 2001, recommending Council accept the bid report and award said contract to the low bidder Bond Blacktop, Inc., and approve the contingency amount. (2) Memorandum from Director of Transportation, Wayne K. Tanda, dated

May 29, 2001, recommending Council accept the bid report and award of contract for the FY 2000-01 Slurry Seal 2001 Project.

Discussion/Action: Upon motion by Council Member Dando, seconded by Council Member Diquisto and unanimously carried, the report on bids was accepted and award of contract to Bond Blacktop, Inc., the low bidder, and contingency amount were approved and execution of the contract authorized. Vote: 11-0-0-0.

ENVIRONMENTAL & UTILITY SERVICES

7.1 Report on bids and approval of award of contract for the construction project entitled “San Jose/Santa Clara Water Pollution Control Plant, FY 2000/2001 Capital Improvement Program, Chemical Systems: (1) Ammonia Station Relocation (2) Backup Chlorination and Dechlorination System Improvements ” to the low bidder, Pacific Mechanical Corporation, in the amount of $1,193,000, and approval of a contingency in the amount of $119,000. CEQA: Exempt.

(Environmental Services)

Documents Filed: (1) Memorandum from Director of Environmental Services, Carl W. Mosher, dated May 29, 2001, recommending Council accept the bid report and approve award of contract to the low bidder and approve ten percent contingency amount.

(2) Supplemental report from San José/Santa Clara Water Pollution Control Plant, Treatment Plant Advisory Committee Chairperson, Rodney Diridon, Jr., dated June 19, 2001, recommending acceptance of the bid report and approval of award of said contract and contingency.

Discussion/Action: Upon motion by Council Member Dando, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, the report on bids was accepted and award of contract to Pacific Mechanical Corporation, the low bidder, and the contingency amount were approved and execution of the contract authorized. Vote: 11-0-0-0.

7.2 Report on bids and approval of award of contract for the construction project entitled “San Jose/Santa Clara Water Pollution Control Plant, FY 2000/2001 Capital Improvement Program, Plant Grounds Improvement” to the low bidder, Bellicitti & Pellicciotti Construction Company, Incorporated, in the amount of $541,300, and approval of a contingency in the amount of $54,700. CEQA: Exempt. (Environmental Services)

Documents Filed: (1) Memorandum from Director of Environmental Services, Carl W. Mosher, dated May 29, 2001, recommending Council accept the bid report and approve award of contract to the low bidder and approve the contingency amount. (2) Supplemental report from San José/Santa Clara Water Pollution Control Plant, Treatment Plant Advisory Committee Chairperson, Rodney Diridon, Jr., dated June 19, 2001, recommending acceptance of the bid report and approval of award of contract and contingency.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez and unanimously carried, the report on bids was accepted and award of contract to Bellicitti & Pellicciotti Construction Company, Inc., the low bidder, and contingency amount were approved and execution of the contract authorized.

Vote: 11-0-0-0.

7.3 (a) Direction to the City Manager to begin negotiations related to energy generation opportunities on City of San José lands and/or facilities with the following companies and return to Council in August with proposed agreements:

(1) For a conventional power plant:

(a) Calpine Corporation for a potential power generation opportunity of 90 MW at the Las Plumas site and 180-270 MW on Treatment Plant Lands.

(b) Rolls Royce Power Ventures Inc., for a potential peaking power generation opportunity of 90 MW on Treatment Plant Lands.

(2) For Renewable Energy Systems:

(a) Powerlight Corporation – For various facilities and locations as identified within the RFQ using a variety of solar PV systems: rooftop, parking shade structures, and single-axis tracking systems (ground mounted) for a potential total of 7MW.

(b) Duke Solar - For Treatment Plant lands (7MW), Singleton landfill (100 kW), for a hybrid power plant combining waste heat and solar peaking service, and other sites as determined for electricity displacement with solar powered absorption chillers.

(c) Schott Applied Solar – For the Treatment Plant (2 MW-ground mount solar system), Municipal Stadium (750 kW-parking shade) and Central Yard (500kW roof mount).

(d) Global Solar – Phase I could involve the use of various solar system technologies for the Treatment Plant (400 kW to 1.2 MW), Singleton Landfill (300-400 kW), and Lake Cunningham (300-400 kW), and the Story Road Landfill (100 kW). Phase II would utilize roof mounted and parking cover-mounted systems for the other sites as listed in the RFQ (West Yard, Mabury Service Yard, Market Street Parking Garage, and Compaq Sports Arena).

(a) (2) (e) Kyocera Solar – Installations of 100kW increments for all of the sites identified in the RFQ using solar shade structures, ground mounted tracking systems, and fixed arrays.

(b) Direction to the City Manager to discontinue activities related to land leases for transportable peaker power plants due to lack of response, availability, and related environmental issues.

(c) Direction to the City Manager to develop and release a Request for Proposal (RFP) by September 2001 for a large power plant (500+ MW) in Treatment Plant Lands and explore potential RFP partnership opportunities with Silicon Valley Power.

(Environmental Services)

Documents Filed: None.

Discussion/Action: This item was deferred to June 26, 2001.

7.4 Report on bids and approval of award of contract for the construction project entitled “San Jose/Santa Clara Water Pollution Control Plant, FY 2000/2001 Capital Improvement Program, Settled Sewage Pump Station Discharge Piping and Concrete Vault Rehabilitation” to the sole bidder, Anderson Pacific Engineering Construction Incorporated, in the amount of $574,000, and approval of a contingency in the amount of $57,000. CEQA: Exempt. (Environmental Services)

Documents Filed: (1) Memorandum from Director of Environmental Services, Carl W. Mosher, dated May 29, 2001, recommending Council accept the bid report and approve award of said contract to the sole bidder, including the ten percent contingency. (2) Supplemental report from San José/Santa Clara Water Pollution Control Plant, Treatment Plant Advisory Committee Chairperson, Rodney Diridon, Jr., dated June 19, 2001, recommending acceptance of the bid report and approval of award of said contract and ten percent contingency.

Discussion/Action: Upon motion by Council Member Williams, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, the report on bids was accepted and award of contract to Anderson Pacific Engineering Construction Incorporated, the sole bidder, and contingency amount were approved and execution of the contract authorized.

Vote: 11-0-0-0.

7.5 Acceptance of staff's report and direction to staff to proceed with the San José Municipal Water System Request for Proposals for the long term lease or operation of the System. (City Manager's Office)

Documents Filed: None.

Discussion/Action: This item was deferred to June 26, 2001.

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

7.6 Acceptance of the Executive Summary from the Status Report and Assessment of the Revised South Bay Action Plan Programs and direction to the Environmental Services Department to implement the recommendations contained in the Report. (Environmental Services)

(Rules Committee referral 6/13/01)

Documents Filed: (1) Memorandum from Director of Environmental Services, Carl W. Mosher, dated May 29, 2001, recommending Council accept the executive summary from said report and direct Staff to implement the recommendations contained therein. (2) Supplemental memorandum from Director of Environmental Services, Carl W. Mosher, dated June 7, 2001, noting the reason for the supplemental report and attaching the Status Report and Assessment of the Revised South Bay Action Plan Programs. (3) Supplemental report from San José/Santa Clara Water Pollution Control Plant, Treatment Plant Advisory Committee Chairperson, Rodney Diridon, Jr., dated June 19, 2001, recommending approval of the executive summary from said status report.

Discussion/Action: Director of Environmental Services Carl W. Mosher, and Chief Deputy Director of Business Services Joni Pattillo presented an overview of the programs and the recommendations contained in the Report. In response to Council Member Reed’s questions, Staff to incorporate responses in the form of periodic reports on the following issues: (1) The distinction between today’s action involving the assessment of the action plan programs and the recycled water extension scheduled for Council consideration on June 26, 2001. (2) Results of a comprehensive investigation into increased sale of water through existing pipeline alignment. (3) Prior to implementing any expansion of pumping capacity, exhaust all alternatives to sell the water. Upon motion by Council Member Chavez, seconded by Council Member Williams and unanimously carried, the summary and assessment of the programs were accepted and Staff directed to implement the recommendations with periodic reports to Council that would include supportive or opposing documentation on potential uses of existing water delivery system, plans for exhausting all alternatives to sell water prior to expanding pumping capacity, and plans for existing property before the new pipeline is constructed. Vote: 10-0-1-0. Absent: Diquisto.

AVIATION SERVICES

8.1 Report on Request for Proposals and approval to reject all proposals for lease and maintenance of compressed natural gas (CNG) shuttle buses for the San José International Airport; and adoption of a resolution authorizing the Director of General Services to negotiate and execute an agreement with Penske Truck Leasing Co., L.P., for a seven year lease and maintenance of CNG buses, for a first year cost not to exceed $2,950,000. (General Services)

Documents Filed: Memorandum from Acting Director of General Services, Francis B. McVey, dated May 29, 2001, recommending accept the report, reject all proposals, and adopt said resolution.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez and unanimously carried, the report on the RFP was accepted and the recommendation to reject all proposals received in response to the RFP for lease and maintenance of compressed natural gas was approved, and Resolution No. 70445, entitled: “A Resolution of the Council of the City of San José Authorizing the Director of General Services to Negotiate and Execute An Agreement With Penske Truck Leasing Company, L.P., For a Seven-Year Lease and Maintenance of Compressed Natural Gas Shuttle Buses”, was adopted. Vote: 11-0-0-0.

JOINT CITY COUNCIL/REDEVELOPMENT AGENCY

The Redevelopment Agency Board convened at 3:15 p.m. to consider Items 10.1 and 10.3 in a joint session.

10.1 Adoption of resolutions by the City Council and Agency Board pertaining to the Agency's annual budgets, CIP, and public improvements as follow:

(a) Adoption by the Agency Board of the Fiscal Year 2001-2002 Revenue and Appropriation Resolutions for the Operating and Capital Budgets; and making certain determinations regarding the expenditure of Agency funds to eradicate graffiti; and,

(b) Adoption of a resolution by the Agency Board approving amendments to the FY 2000-01 Appropriations Resolution to reflect various modifications to the FY 2000-01 Capital Budget.

(c) Adoption of a resolution by the City Council making certain determinations regarding the expenditure of Agency funds on public improvements; and,

(d) Adoption of resolutions by the City Council and Agency Board authorizing the City Manager and Executive Director to negotiate and execute the FY 2001-2002 cooperation agreements between the City and the Agency for the Merged Area Redevelopment Project for Capital Improvements, and the agreement regarding operating expenses.

(Executive Director)

Documents Filed: (1) Memorandum from Redevelopment Agency Executive Director, Susan F. Shick, dated June 19, 2001, recommending the Redevelopment Agency Board and the City Council adopt said resolutions. (2) Memorandum from City Manager, Del D. Borgsdorf and Redevelopment Agency Executive Director Susan F. Shick, dated June 19, 2001, recommending the Redevelopment Agency Board and the City Council adopt said resolutions.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez and unanimously carried, the Redevelopment Agency Board Resolution No. 5188 adopting the Fiscal Year 2001-2002 revenue and appropriation resolutions for the Operating and Capital Budgets; and making certain determinations regarding the expenditure of Agency funds to eradicate graffiti; Redevelopment Agency Board Resolution No. 5185 approving amendments to the FY 2000-01 appropriations resolution to reflect various modifications to the FY 2000-01 Capital Budges; Resolution No. 70446, entitled: “Resolution of the Council of the City of San José Making Certain Determinations Regarding the Expenditure of Redevelopment Agency Funds on Public Improvements in the Agency’s Fiscal Year 2001-2002 Capital Budget”; Redevelopment Agency Board Resolution No. 5192 authorizing the Executive Director to negotiate and execute the FY 2001-2002 cooperation agreements between the City and the Agency for the Merged Area Redevelopment Project for Capital Improvements, and the agreement regarding operating expenses; and Resolution No. 70447, entitled: “Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute the Fiscal Year 2001-2002 Cooperation Agreements Between the City and the Agency for the Merged Area Redevelopment Project for Capital Improvements and the Agreement Regarding Operating Expenses”, were adopted. Vote: 10-0-1-0. Absent: Diquisto.

10.3 (a) Approval of an ordinance amending Chapters 14.25 (Park Impact Ordinance) and 19.38 (Parkland Dedication Ordinance) of the San José Municipal Code in order to continue the suspension of the exemption of low-income units until July 1, 2004, and to extend the voucher program for eligible low-income units until July 1, 2004.

(b) Adoption of resolutions by the City Council and the Agency Board approving the Parkland In-Lieu Fee Low-Income Unit Voucher program for the payment of subsidized parkland fees for low-income units by the Redevelopment Agency.

CEQA: Exempt. (City Manager’s Office/Redevelopment Agency)

(Rules Committee referral 6/13/01)

Documents Filed: Memorandum from City Manager, Del D. Borgsdorf and Redevelopment Agency Executive Director Susan F. Shick, dated June 13, 2001, noting the reason for addendum and recommending Council adopt said ordinance and the Redevelopment Agency Board approve said resolutions.

Discussion/Action: Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez and unanimously carried, Ordinance No. 26422, entitled: “An Ordinance of the City of San José Amending Sections 14.25.520 and 14.25.530 of Chapter 14.25 of Title 14 of the San José Municipal Code and Amending Sections 19.38.520 and 19.38.530 of Chapter 19.38 of Title 19 to Extend Both the Suspension of the Low Income Unit Exemption and the Voucher Payment Procedure From July 1, 2001 to July 1, 2004”, was passed for publication; Resolution No. 70448, entitled: “A Resolution of the Council of the City of San José Approving the Parkland In-Lieu Fee Low-Income Unit Voucher Program for the Payment of Subsidized Parkland Fees for Low Income Residential Units by the Redevelopment Agency”; and Redevelopment Agency Board Resolution No. 5193 approving the Parkland In-Lieu Fee Low-Income Unit Voucher program for the payment of subsidized parkland fees for low-income units, were adopted. Vote: 11-0-0-0.

The Redevelopment Agency Board recessed at 3:22 p.m. to meet again in joint session with the City Council at 7:00 p.m., Council Chambers, City Hall.

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

3.7 (a) (1) Adoption of a resolution authorizing the City Manager to negotiate and execute an agreement with The Steinberg Group to perform a physical assessment and feasibility reuse analysis of the existing Civic Center Complex, the Health Building and Parking Lots C and E, for a total agreement amount of $248,000.

(2) Approval of the Savings By Design Owner Agreement with Pacific Gas and Electric Company.

CEQA: Resolution No. 68905. (Public Works)

(b) Adoption of a resolution to accept a Plan for Public Art for the New Civic Center. CEQA: Exempt. (Conventions, Arts and Entertainment)

Documents Filed: (1) Memorandum from Acting Director of Public Works Rajeev Batra, dated June 15, 2001, recommending Council adopt said resolution and approve agreement with Pacific Gas and Electric Company. (2) Memorandum from Director of Conventions, Arts and Entertainment, Nancy Johnson, dated May 14, 2001, attaching the “Plan for Public Art for the New San José Civic Center”, and recommending Council adopt said resolution to accept the plan.

Discussion/Action: Consultants Richard Meier and Partners, Acting Director of Public Works Rajeev Batra, and Director of Conventions, Arts and Entertainment Nancy Johnson, presented an update on the design of various components of the Civic Center project, including a range of features designed to maximize public access and participation in the Council Chambers, the One-Stop Permit Center design which would provide for efficient customer servicing by various City departments, the Rotunda design which has been further developed to maximize natural lighting and enhance the architectural quality of the space, and the Public Art Program concept for the new Civic Center that would include both traditional and architecturally integrated artworks. Rajeev Batra described the sustainable goals and features incorporated into the project with the use of the Green Building Policy based upon the U.S. Green Building Council’s LEED building rating system, and discussed anticipated master planning activities – conceptual analyses, site assessment, and building use recommendations – for the disposition of the existing City Hall and site. Staff recommended Council approve the proposed agreement with The Steinberg Group, approve the agreement with Pacific Gas and Electric Company, and accept the Plan for Public Art for the New Civic Center. Council Members reiterated preferences for renewable energy, specific location of Council Chambers, cafeteria positioned on premises and available to approximately 2000 employees, development of a strategy for ADA consultants to be involved in the entire project, and community survey related to on-premise child care facilities. John Messina and Ross Signorino commented on various aspects of the Civic Center development; and William J. Garbett spoke against the proposed actions. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Williams and unanimously carried, Resolution No. 70450, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute an Agreement With the Steinberg Group for a Physical Assessment and Feasibility Reuse Analysis of Existing Civic Center Facilities in An Amount Not to Exceed $248,000”, was adopted; the Savings By Design Owner Agreement with Pacific Gas and Electric Company was approved and execution of the agreement authorized; and Resolution No. 70450.1, entitled: “A Resolution of the Council of the City of San José Accepting a Plan For Public Art For the New Civic Center”, was adopted. Vote: 10-0-1-0. Absent: Diquisto.

OPEN FORUM

Pete Campbell spoke on the closing of San José’s Town & Country Village Shopping Center.

RECESS/RECONVENE

Council recessed at 3:40 p.m. and reconvened at 7:00 p.m., Council Chambers, City Hall.

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

Absent: Council Members: None.

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

PUBLIC HEARINGS

11.4 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the northeast corner of Auzerais and Race Streets (1135 Auzerais Street), from M-1 Manufacturing Zoning District to (A) PD Planned Development Zoning District, to allow for the relocation of a billboard on 2.86 gross acres. (Chester C. Lehmann, Owner/Developer). CEQA: Exempt.

PDC 00-08-082 - District 6

(Continued from 12/12/00 – Item 15n et al., and 5/15/01 – Item 11.3)

Documents Filed: (1) Memorandum from Planning Commission Secretary James R. Derryberry, dated February 15, 2001, transmitting the Staff report on PDC 00-08-082 dated November 29, 2001, recommending Council deny the subject rezoning. (2) Memorandum from Planning Commission Secretary James R. Derryberry, dated December 1, 2000, transmitting the Staff Report on PDC 00-08-082 dated November 29, 2001, recommending Council deny the subject rezoning. (3) Public Hearing Notice to consider a change in Zoning for PDC 00-08-082, dated November 17, 2000, and Proof of Publication executed on November 24, 2000, submitted by the City Clerk.

Discussion/Action: This item was dropped.

11.5 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located on the east side of North First Street, 250 feet southerly of Burton Avenue, from CN Neighborhood Commercial Zoning District to A(PD) Planned Development Zoning District, to allow a reduction in parking requirements for existing restaurant uses on 0.36 gross acres. (Cortese, Owner; Tafreshi, Developer). CEQA: Negative Declaration. Director of Planning, Building and Code Enforcement and Planning Commission recommend approval (7-0-0).

PDC 01-02-013 - District 3

(Continued from 4/3/01 – Item 11.7 et al., and 6/5/01 – Item 11.2)

Documents Filed: None.

Discussion/Action: This item was continued to August 14, 2001.

11.6 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the southeast corner of Blackford Avenue and Saratoga Avenue, from RM Residence Zoning District to A(PD) Planned Development Zoning District, to allow an addition of up to 84 multi-family attached residential units to an existing apartment complex on 1.1 gross acres. (R&B Realty Group and Moreland School District, Owners; R&B Realty Group, Developer). CEQA: Negative Declaration.

PDC 00-09-089 - District 1

(Continued from 5/15/01 – Item 11.5)

Documents Filed: None.

Discussion/Action: This item was continued to August 14, 2001.

11.9 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the south side of Balbach Street, 200 feet westerly of Market Street, from C-3 Commercial Zoning District to A(PD) Planned Development Zoning District, to allow up to 12 attached dwelling units on 0.40 gross acre. (Des Nolan, Owner/Developer.) CEQA: Resolution No. 68839. Director of Planning, Building, and Code Enforcement and Planning Commission recommend approval (6-0-1).

PDC 00-05-043- District 3

(Continued from 6/5/01 – Item 11.8)

Documents Filed: None.

Discussion/Action: This item was continued to September 18, 2001.

11.11 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the easterly side of Winchester Boulevard, opposite Olin Avenue and Olsen Drive, from A(PD) Planned Development Zoning District to A(PD) Planned Development Zoning District, to allow an expansion of the project area, an increase in commercial space of approximately 75,000 square feet (total 680,000 square feet), an increase in hotel rooms of 190 (total 404 rooms), an addition of one residential unit (total of 1201), and an increase in height of 30 feet (total of 120 feet), for two future buildings as approved with General Plan Amendment File No. GP 00-T-10, on 40.788 gross acres. (FRIT San José Town & Country Village, LLC & San José Residential, Inc., Owner/Developer). CEQA: Resolution No. 68210.

PDCSH 01-02-023 - District 6

(Continued from 6/5/01 – Item 11.12)

Documents Filed: (1) Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated May 23, 2001, recommending the City Council adopt an ordinance to approve the subject rezoning. (2) Memorandum from Planning Commission Secretary James R. Derryberry, dated May 21, 2001, transmitting the Staff Report on PDCSH 01-02-023 dated May 16, 2001, recommending Council approve the subject rezoning. (3) Public Hearing Notice to consider a change in Zoning for PDCSH 01-02-023 dated May 2, 2001, and Proof of Publication executed on May 11, 2001, submitted by the City Clerk.

Discussion/Action: This item was dropped. See Item 11.12.

CEREMONIAL ITEMS

1.1 Presentation of commendations to Graystone, Los Alamitos, and Simonds schools in District 10 for being selected as National Blue Ribbon Schools of Excellence, one of public education’s highest honors. (Dando)

Documents Filed: None.

Discussion/Action: Joining Mayor Gonzalez at the Podium were Council Member Dando and representatives of the award-winning schools. Mayor Gonzales presented the commendations and congratulated school administrators, parents and students for receiving public education’s highest honors.

1.3 Presentation of a commendation to the Manzo Family for their commitment to Stipe Elementary School and the Great Oaks neighborhood. (Williams)

Documents Filed: None.

Discussion/Action: Joining Mayor Gonzales at the Podium were Council Member Williams and Jamie and Maria Manzo who were presented commendations for their commitment to the beautification of their neighborhood.

1.4 Presentation of plaques to Mayor and Council by South Bay In Defense of Animals and Dedicated Animal Right Educators Inc. recognizing their work to protect animals. (Mayor)

(Rules Committee referral 6/13/01)

Documents Filed: None.

Discussion/Action: Joining Mayor Gonzales at the Podium were animal rights advocates who expressed appreciation to the City Council for approving an ordinance prohibiting the sale of live animals at Flea Markets. Representatives of the South Bay organization presented plaques to Mayor Gonzales and Acting Deputy Director Steve Emslie, in recognition of the City’s work in the protection of animals.

The Redevelopment Agency Board reconvened at 7:25 p.m. to consider Item 10.2 in a joint session with the City Council.

10.2 (a) Adoption of resolutions by the City Council and Redevelopment Agency Board approving the Third Amended and Restated Procedure for Formation and Election of the Project Area Committee for the Proposed Strong Neighborhoods Initiative Redevelopment Project Area.

(b) Adoption of a resolution by the City Council appointing seventeen community organizations to serve on the Strong Neighborhoods Initiative Project Area Committee (PAC).

(c) Adoption of a resolution by the City Council finding that all adopted election procedures were followed in the election of the PAC; and approving the PAC as elected and selected.

(d) Adoption of resolutions by the City Council and Redevelopment Agency Board directing Agency staff to consult with and obtain the advice of the PAC on matters affecting residents of the proposed Strong Neighborhoods Initiative Redevelopment Project Area.

SNI Area: All. (Executive Director)

Documents Filed: Memorandum from Redevelopment Agency Executive Director, Susan F. Shick, dated June 19, 2001, recommending the Redevelopment Agency Board and the City Council adopt said resolutions.

Discussion/Action: To facilitate Council discussion, Agency Staff recommended Council/Agency confirm the results of the election, accept the Rules Committee recommendation on appointments to the PAC, and approve amendments to the procedures to allow for the number of appointed representatives. Fred Iltis spoke on the Strong Neighborhoods Initiative Project Area Committee; and William J. Garbett spoke against the proposed action. In his recommendation for Council approval of the procedure for the formation of the PAC, Vice Mayor Shirakawa, Jr. cautioned against any future use of the electoral process utilized in the selection of such a large group, given that 421 community organizations were notified by mail, notices advertising the opportunity to serve on the PAC were published in three newspapers and sent to each organization, the Statement of Interest form that was posted on the SNI website, and an additional election of specific categories was conducted by mail. He stated the number of applications far exceeded the number of positions to the PAC, however, with the assistance of each Council Member, the PAC board, as an advisory body to the Council/Board, does include representation from each Council District – thirty-five elected representatives and 17 appointees. Council Member Chavez asked Staff to prepare a report to Council/Agency via Rules Committee summarizing the evaluation of the Civic Plaza PAC activities, and specifying how the information will be incorporated into a workplan of the Agency/City as other community groups begin their participation in the system; and as the PAC becomes established, that Staff make certain the activities are directly linked to goals that have been set up for the overall Strong Neighborhoods Initiative. She stated the purpose of the goals must be geared toward building strong neighborhood associations and establishing appropriate infrastructure, and that the roles and responsibilities of the PAC must be clearly and concisely delineated. Council Member Dando concurred with comments made by Council Member Chavez regarding PAC’S purview of influence and emphasized the necessity for organized, continuous and thorough communication between Agency Staff, PAC and neighborhood groups, thereby empowering neighborhoods through methodical dissemination of information to address the concerns in their project areas. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Dando and unanimously carried, Resolution No. 70454, entitled: “Resolution of the Council of the City of San José Approving the Third Amended and Restated Procedure for the Formation and Election of the Project Area Committee (‘PAC’) for the Proposed Strong Neighborhoods Initiative Redevelopment Project Area, Adding Two Additional Community Organizations to the PAC”; Redevelopment Agency Board Resolution No. 5186 approving the amended and restated procedure for formation and election of the PAC for the SNI Redevelopment Project Area; Resolution No. 70455, entitled: “Resolution of the Council of the City of San José Appointing Seventeen Community Organizations to Serve on the Project Area Committee for the Proposed Strong Neighborhoods Initiative Redevelopment Project Area”; Resolution No. 70456, entitled: “Resolution of the Council of the City of San José Finding That All Adopted Election Procedures Were Followed in the Election of the Project Area Committee (‘PAC’) For the Strong Neighborhoods Initiative Redevelopment Project Area; and Providing the PAC As Elected and Selected”; Resolution No. 70457, entitled: “Resolution of the Council of the City of San José Directing Redevelopment Agency Staff to Consult With and Obtain the Advice of the Project Area Committee on Matters Affecting Residents of the Proposed Strong Neighborhoods Initiative Redevelopment Project Area”; Redevelopment Agency Board Resolution No. 5187 directing Agency Staff to consult with and obtain the advice of the PAC on matters affecting residents of the proposed SNI redevelopment project area, were adopted with the development and implementation of a program workplan with definitive roles and responsibilities of the PAC, including clear and precise goals and objectives established by the Strong Neighborhoods Initiative referred to Rules Committee for appropriate reporting to the City Council/Agency Board. Vote: 11-0-0-0.

The Redevelopment Agency Board adjourned at 7:45 p.m.

PUBLIC HEARINGS

11.1 First public meeting to receive public comment on proposed Maintenance District 19 (River Oaks Area Landscaping) and proposed Maintenance District 20 (Renaissance – North First Landscaping). Council District 3. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated May 29, 2001, recommending Council conduct the public meeting related to actions for Maintenance Districts 19 and 20.

Discussion/Action: Mayor Gonzales opened the first public meeting to receive comment on Maintenance Districts 19 and 20. There was no discussion from the Floor. Upon motion unanimously adopted, the first public meeting was closed. Vote: 11-0-0-0.

11.2 First public meeting to receive public comment on modifications and reauthorization of Maintenance District 4 (Gateway – Airport Parkway), Maintenance District 9 (Santa Teresa – Great Oaks), and Maintenance District 11 (Brokaw Road from Junction to Old Oakland). Council Districts 2, 3, and 4. (Public Works)

Documents Filed: Memorandum from Acting Director of Public Works Rajeev Batra, dated May 29, 2001, recommending Council conduct the public meetings related to actions for Maintenance Districts 4, 9 and 11.

Discussion/Action: Mayor Gonzales opened the first public meeting to receive comment on modifications and reauthorization of Maintenance Districts 4, 9 and 11. There was no discussion from the Floor. Upon motion unanimously adopted, the first public meeting was closed. Vote: 11-0-0-0.

11.3 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the easterly terminus of Skyway Drive, from (A) PD Planned Development Zoning District and R-1:B-6 Residence District to (A) PD Planned Development Zoning District, to allow: (1) secondary access to Diamond Heights Drive; (2) an increase in the maximum number of students from 1200 to 1400; (3) hard court and parking uses on areas previously designated for open space, and (4) deletion of the requirement to implement a busing program; and (5) combination of the previously approved portions of an existing high school and church campus under one Planned Development Zoning District on 52.68 gross acres. (Valley Christian Schools and South Valley Christian Church, Owner/Developer). CEQA: Negative Declaration. Director of Planning, Building and Code Enforcement and Planning Commission recommend denial (6-0-1).

PDC 00-08-065 - District 2

(Continued from 12/12/00 – Item 15k et al., and 6/5/01 – Item 11.1)

Documents Filed: (1) Memorandum from Mayor Gonzales, Vice Mayor Shirakawa, Jr., and Council Member Williams, dated June 19, 2001, recommending Council approve the Planned Development Rezoning with specified amendments to the Planning Director’s Recommendation. (2) Supplemental memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 19, 2001, recommending approval of the proposed rezoning with specified conditions. (3) Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated May 18, 2001, stating the Planning Commission voted to recommend that the City Council deny the subject rezoning. (4) Planning Commission Secretary James R. Derryberry, dated January 5, 2001, transmitting the Staff Report on PDC 00-08-065 dated January 4, 2001 and recommending approval of the proposed rezoning with a revised condition that requires implementation of a busing program as described in the current PD Zoning. (5) Public Hearing Notice to consider a change in Zoning for PDC 00-08-065, dated November 17, 2000, and Proof of Publication executed on November 24, 2000, submitted by the City Clerk. (6) Public Hearing Notice to consider a change in Zoning for PDC 00-08-065, dated December 13, 2000, and Proof of Publication executed on December 29, 2000, submitted by the City Clerk. (7) An undated Petition from Hector Ramon bearing approximately 90 signatures of area residents opposed to the project.

Discussion/Action: Mayor Gonzales opened the public hearing on the planned development rezoning of the subject property. Council Member Reed entered a disqualification from participating in the discussion and decision on the subject rezoning due to effect on a client. Referencing his memorandum co-authored by Mayor Gonzales and Council Member Williams, Vice Mayor Shirakawa, Jr. presented background information on the decision made regarding Diamond Heights Road and the applicant’s decision to modify the zoning to delete the provisions of a secondary access to the campus from Diamond Heights Road. He stated the Department of Transportation, in addition to the information presented in the proposal, is to perform a traffic analysis three months after the implementation of the Trip Reduction Plan and the completion of construction of the parking areas and to report the analysis to Council to show a “before” and “after” analysis on existing traffic conditions. With direction to Staff to work with the Developer during the PD phase of the project to maximize area parking and to identify the best options, he recommended approval of the Planning Development Rezoning with the amendments to the Planning Director’s recommendation contained in the co-authored memorandum. Maria Garcia, representing Seven Trees Neighborhood, spoke in favor of the proposal. Upon motion by Council Member Williams, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, the public hearing was closed, the Director of Planning, Building and Code Enforcement and Planning Commission recommendation for denial was not approved; and the recommendations contained in June 19, 2001 memorandum from Mayor Gonzales, Vice Mayor Shirakawa, Jr., and Council Member Williams that (a) the applicant submit to the Director of Planning a Trip Reduction Program designated to achieve a fifteen percent reduction in a.m. peak hour trips; (b) the City Council deny approval of the applicant’s request to an increase in the maximum number of students from 1200 to 1400; (c) the City Council direct the Department of Transportation to conduct a traffic analysis of Skyway Drive three months after implementation of the Trip Reduction Plan and the completion of construction of parking areas and report this analysis back to Council; (d) the City Council reconsider the increase in the number of students three months after the implementation and traffic analysis of the Trip Reduction Plan and the completion of construction of the parking areas; and (e) the City Council approve the provision for additional parking areas with the condition that the applicant add a second left-turn lane at the intersection of Monterey Highway and Skyway Drive to the satisfaction of the Director of Public Works, were approved; in addition, Staff was directed to work with the Developer during the PD Permit stage to maximize area parking and identify best option; and Ordinance No. 26423, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated on the Northeasterly Terminus of Skyway Drive Extending to the Southwesterly Corner of Senter Road and Diamond Heights Drive”, was passed for publication. Vote: 10-0-0-1. Disqualified: Reed.

Vice Mayor Shirakawa, Jr. and Council Member Williams left Chambers at this point in the meeting.

11.7 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the northwest corner of Union Avenue and Highway 85, from the A(PD) Planned Development and IP Industrial Park Zoning Districts to A(PD) Planned Development Zoning District, to allow an additional 85,000 square feet of office space, 2 parking structures (4 and 5 levels), 21,888 square feet for a private fitness center to an existing 587,000 square foot industrial office/R&D campus site on 31.18 gross acres. (Xilinx, Inc., Owner/Developer). CEQA: Negative Declaration. Director of Planning, Building and Code Enforcement and Planning Commission recommend approval (6-0-1).

PDC 01-01-009 - District 9

(Continued from 6/5/01 – Item 11.5)

Documents Filed: (1) Memorandum from Council Member Diquisto, dated June 19, 2001, recommending approval of the subject rezoning. (2) Memorandum from Planning Commission Secretary James R. Derryberry, dated June 15, 2001, stating the Planning Commission voted to recommend that the City Council adopt an ordinance to approve the subject rezoning. (3) Memorandum from Planning Commission Secretary James R. Derryberry, dated June 7, 2001, transmitting the Staff Report on PDC 01-01-009, dated May 3, 2001, recommending approval of the proposed PD rezoning. (4) Public Hearing Notice to consider a change in Zoning for PDC 01-01-009, dated April 19, 2001, and Proof of Publication executed on April 27, 2001, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the planned development rezoning of the subject property. There was no discussion from the Floor. Upon motion by Council Member Diquisto, seconded by Council Member Chavez and unanimously carried, the public hearing was closed, the Planning Commission recommendation approved, and Ordinance No. 26424, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated at the Northwest Corner of Union Avenue and State Route 85”, was passed for publication. Vote: 9-0-2-0. Absent: Shirakawa, Jr., Williams.

Vice Mayor Shirakawa, Jr. returned to Chambers at this point in the meeting.

Council Member Campos left Chambers during discussion of Item 11.8.

11.8 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the south side of University Avenue, approximately 170 feet easterly of The Alameda, from A(PD) Planned Development Zoning District to A(PD) Planned Development Zoning District, to allow 5 single-family courthomes on 0.46 gross acre. (Jesse & Jemma Jack/Claddagh Construction Co., Owners; Claddagh Construction Co., Developer). CEQA: Negative Declaration. Director of Planning Building and Code Enforcement and Planning Commission recommend approval (6-0-1).

PDC 01-02-030 - District 6

(Continued from 6/5/01 – Item 11.7)

Documents Filed: (1) Memorandum from Planning Commission Secretary James R. Derryberry, dated June 14, 2001, recommending the City Council approve the subject rezoning. (2) Memorandum from Planning Commission Secretary James R. Derryberry, dated June 7, 2001, transmitting the Staff Report for PDC 01-02-030, dated June 4, 2001, recommending Council approve the subject rezoning. (3) Public Hearing Notice to consider a change in Zoning for PDC 01-02-030 dated April 19, 2001, and Proof of Publication executed on April 27, 2001, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the planned development rezoning of the subject property. There was no discussion from the Floor. Upon motion by Council Member Yeager, seconded by Council Member Chavez and unanimously carried, the public hearing was closed, the Planning Commission recommendation approved, and Ordinance No. 26425, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated on the South Side of University Avenue Approximately 170 Feet Easterly of The Alameda”, was passed for publication. Vote: 9-0-2-0. Absent: Campos, Williams.

11.10 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the west side of Lone Hill Road, 350 feet northerly of Los Gatos-Almaden Road, from R-1:B-8 Residence Zoning District to A(PD) Planned Development Zoning District, to allow up to two single-family detached units on 0.47 gross acre. (Christopher Harris and Marco DeGeorge, Owner/Developer). CEQA: Exempt. Director of Planning Building and Code Enforcement and Planning Commission recommend approval (6-0-1).

PDC 00-08-076- District 9

(Continued from 6/5/01 – Item 11.9)

Documents Filed: (2) Memorandum from Planning Commission Secretary James R. Derryberry, dated June 14, 2001 recommending Council adopt an ordinance to approve the subject rezoning. (2) Memorandum from Planning Commission Secretary James R. Derryberry, dated June 7, 2001, transmitting the Staff Report on PDC 00-08-076 dated June 7, 2001, recommending approval of the proposed project. (3) Public Hearing Notice to consider a change in Zoning for PDC 00-08-076 dated April 19, 2001, and Proof of Publication executed on April 27, 2001, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the planned development rezoning of the subject property. There was no discussion from the Floor. Upon motion by Council Member Diquisto, seconded by Council Member LeZotte and unanimously carried, the public hearing was closed, the Planning Commission recommendation approved, and Ordinance No. 26426, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated on the West Side of Lone Hill Road 350 Feet Northerly of Los Gatos-Almaden Road”, was passed for publication.

Vote: 9-0-2-0. Absent: Campos, Williams.

Council Members Campos and Williams returned to Chambers during discussion of Item 11.12.

11.12 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the easterly side of Winchester Boulevard, opposite Olin Avenue and Olsen Drive, from A(PD) Planned Development Zoning District to A(PD) Planned Development Zoning District, to allow an expansion of the project area, an increase in commercial space of approximately 75,000 square feet (total 680,000 square feet), an increase in hotel rooms of 190 (total 404 rooms), an addition of one residential unit (total of 1201), and an increase in height of 30 feet (total of 120 feet), for two future buildings as approved with General Plan Amendment File No. GP 00-T-10, and to allow restaurant or nightclub spaces greater than 9,000 square feet through the PD Permit process on 40.788 gross acres. (FRIT San José Town & Country Village, LLC & San José Residential, Inc., Owner/Developer). CEQA: Resolution No. 68210. Director of Planning, Building, and Code Enforcement and Planning Commission recommend approval (6-0-1).

PDCSH 01-02-023 - District 6

Documents Filed: (1) Supplemental memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated June 7, 2001, clarifying overall analysis of the proposal to restrict restaurants and nightclubs to a maximum of 9,000 square feet. (2) Department of Planning, Building and Code Enforcement Staff Report on Project File Number PDCSH 01-02-023 dated May 16, 2001, recommending approval of the proposed rezoning. (3) Public Hearing Notice to consider a change in Zoning for PDCSH 01-02-023 dated May 24, 2001, and Proof of Publication executed on June 8, 2001, submitted by the City Clerk. (4) Public Hearing Renotice, because of a change in the project, to consider a change in Zoning for PDCSH 01-02-023 dated May 24, 2001, and Proof of Publication executed on June 8, 2001, submitted by the City Clerk. (4) Copy of the Santana Row News article regarding the closing of Town & Country Center, submitted by Pete Campbell who spoke in opposition to the proposed development.

Discussion/Action: Mayor Gonzales opened the public hearing on the planned development rezoning of the subject property. The following individuals spoke in support of the proposed rezoning: Enrique Fernandez; Pete Campbell; and Andy Faber, representing Federal Realty Investment Trust (FRIT). Upon motion by Council Member Yeager, seconded by Council Member LeZotte and unanimously carried, the public hearing was closed, the Planning Commission recommendation approved and Ordinance No. 26427, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated at the Easterly Side of Winchester Boulevard Opposite Olin and Olsen Drives”, was passed for publication with direction to Staff to remove the words “West Side of Santana Row” from the location and substitute the description “Santana Row”.

Vote: 11-0-0-0.

11.13 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located on the both sides of McCarthy Boulevard, at the westerly terminus of Dixon Landing Road, from A Agriculture Zoning District to A(PD) Planned Development Zoning District, to allow development of up to 24,900 square feet of office use, up to 8,500 square feet of commercial uses, and a gasoline service station with up to eight (8) fueling stations with a car wash facility on 0.56 gross acre. (Los Esteros Ranch Partnership, Owner; Will Oswald, Developer). CEQA: Negative Declaration. Director of Planning, Building and Code Enforcement and Planning Commission recommend approval (4-2-1).

PDC 99-09-078 - District 4

(Continued from 6/5/01 – Item 11.13)

Documents Filed: (1) Memorandum from Planning Commission Secretary James R. Derryberry, dated June 14, 2001, providing additional information on odor easement, air filtration systems and tree plantings, received subsequent to the previous staff report on the project. (2) Memorandum from Planning Commission Secretary James R. Derryberry dated May 24, 2001, stating the Planning Commission voted to recommend that the City Council conditionally approve the proposed rezoning. (3) Memorandum from Planning Commission Secretary James R. Derryberry, dated May 21, 2001, transmitting the undated preliminary Staff Report on PDC 99-09-078 and forwarding a recommendation of conditional approval and adoption of an ordinance rezoning the subject site. (4) Public Hearing Notice to consider a change in Zoning for PDC 99-09-078 dated May 10, 2001, and Proof of Publication executed on May 11, 2001, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the planned development rezoning of the subject property. There was no discussion from the Floor. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez and unanimously carried, the public hearing was closed, the Planning Commission recommendation approved, and Ordinance No. 26428, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated on Both Sides of McCarthy Boulevard, at the Westerly Terminus of Dixon Landing Road”, was passed for publication.

Vote: 11-0-0-0.

Mayor Gonzales welcomed Boys Scout Troop 305 and their Scoutmaster to the meeting as a requirement for a merit badge. The guests were asked to stand and be recognized.

11.14 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the north side of Berryessa Road, approximately 50 feet easterly of Mabury Road (929 Berryessa Road), from HI-Heavy Industrial Zoning District to A(PD) Planned Development Zoning District, to allow approximately 91,000 square feet of incubator industrial and warehouse uses on 5.18 gross acres. (James A. and Frances A. Jones, Owner; Borelli Development Company, Developer). CEQA: Negative Declaration. Director of Planning, Building, and Code Enforcement and Planning Commission recommend denial (6-0-1).

PDC 00-12-124 - District 4

Documents Filed: (1) Memorandum from Mayor Gonzales and Council Member Reed, dated June 19, 2001, recommending Council approve the PD rezoning with additional condition and direct Staff to work with the applicant to resolve questions about security and parking at the PD permit state of the project. (2) Memorandum from Director of Planning, Building and Code Enforcement, James R. Derryberry, dated May 25, 2001, recommending Council deny the subject rezoning. (3) Public Hearing Notice to consider a change in Zoning for PDC 00-12-124 dated May 2, 2001, and Proof of Publication executed on May 11, 2001, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the planned development rezoning of the subject property. Director of Planning, Building and Code Enforcement, James R. Derryberry, stated the proposed development would exceed the Floor Area Ratio (FAR) cap established for most industrial uses in the City by designating one out of eight buildings as warehouse use. He recommended denial of the proposed rezoning because of its nonconformance to the North San José Area Development Policy, as any changes to the Policy or its implementation may require independent review to meet the requirements of CEQA, and relaxing the enforcement of the Policy could lead to a deterioration of traffic conditions in North San José. Council Member Reed recommended approval of the project with addition of a deed restriction when the building is sold, and with security parking addressed at the PD Permit stage of the development. Ray Hashimoto from HMH, representing Borelli Investment Corporation, spoke in support of the rezoning. Upon motion by Council Member Reed, seconded by Council Member Williams and unanimously carried, the public hearing was closed, the Planning Commission recommendation for denial was not approved and Ordinance No. 26429, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated at the North Side of Berryessa Road Approximately 50 Feet Easterly of Mabury Road (929 Berryessa Road)”, was passed for publication with the addition to the restrictions specified in the zoning that the “building that is designated for warehouse use shall be restricted to warehouse use by recorded Covenants, Conditions, and Restrictions and, upon sale, by a restriction set forth in the deed for the building”; and with Staff directed to work with the applicant to resolve questions about security and parking at the PD Permit stage of the project. Vote: 11-0-0-0.

11.15 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the east side of Pamela Avenue, approximately 130 feet south of McKee Road, from R-M Residence District to A(PD) Planned Development Zoning District, to allow the addition of four multi-family attached residential units to an existing 8-unit multi-family residential project, on a .27 gross acre site. (Bruno Strul, Owner/Developer). CEQA: Negative Declaration. Director of Planning Building and Code Enforcement and Planning Commission recommend approval (6-0-1).

PDC 00-09-093 - District 5

Documents Filed: (1) Memorandum from Planning Commission Secretary James R. Derryberry dated June 14, 2001, stating the Planning Commission recommends that the City Council adopt an ordinance to approve the subject rezoning. (2) Memorandum from Planning Commission Secretary James R. Derryberry dated June 7, 2001 transmitting the Staff Report on PDC 00-09-093, dated June 6, 2001, recommending approval of the project. (3) Public Hearing Notice to consider a change in Zoning for PDC 00-09-093, dated May 21, 2001, and Proof of Publication executed on June 1, 2001, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the planned development rezoning of the subject property. There was no discussion from the Floor. Upon motion by Council Member Campos, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, the public hearing was closed, the Planning Commission recommendation approved, and Ordinance No. 26430, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated on the East Side of Pamela Avenue, Approximately 130 Feet South of McKee Road”, was passed for publication.

Vote: 11-0-0-0.

11.16 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the southeasterly corner of Willow Street and Delmas Avenue, from CN Commercial and R-1-8 Residential Zoning District to A(PD) Planned Development Zoning District, to allow up to 30 single family attached units on 1.8 gross acres. (Inez Flynn, Michael Franges, Mary Francis, Franbu LLC, Owner; Dennis O’Keefe Pulte Homes, Developer). CEQA: Negative Declaration. Director of Planning Building and Code Enforcement and Planning Commission recommend approval (6-0-1).

PDC 01-02-031 - District 6

Documents Filed: (1) Memorandum from Planning Commission Secretary James R. Derryberry dated June 13, 2001, stating the Planning Commission recommends that the City Council adopt an ordinance to approve the subject rezoning. (2) Memorandum from Planning Commission Secretary James R. Derryberry dated June 7, 2001 transmitting the Staff Report on PDC 01-02-031, dated June 6, 2001, recommending approval of the subject rezoning. (3) Public Hearing Notice to consider a change in Zoning for PDC 01-02-031, dated May 21, 2001, and Proof of Publication executed on June 1, 2001, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the planned development rezoning of the subject property. There was no discussion from the Floor. Upon motion by Council Member Yeager, seconded by Council Member Diquisto and unanimously carried, the public hearing was closed, the Planning Commission recommendation approved, and Ordinance No. 26431, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated on the Southeasterly Corner of Willow Street and Delmas Avenue”, was passed for publication. Vote: 11-0-0-0.

11.17 PUBLIC HEARING ON CONVENTIONAL REZONING of the property located at the west side of S. Autumn Street, approximately 80 feet north of West San Fernando Street (91 S. Autumn Street), from LI Light Industrial Zoning District to CN Commercial Zoning District, to allow a sandwich shop in an existing building on 0.11 gross acres. (Sally Meduri, Owner/Developer). CEQA: Resolution No. 65459.

C 01-03-033 - District 3

Documents Filed: (1) Memorandum from Planning Commission Secretary James R. Derryberry dated June 14, 2001, stating the Planning Commission recommends that the City Council approve the project. (2) Memorandum from Planning Commission Secretary James R. Derryberry dated June 7, 2001 transmitting the Staff Report on C 01-03-033 dated June 6, 2001, recommending approval of the proposed rezoning. (3) Public Hearing Notice to consider a change in Zoning for C 01-03-033 dated May 16, 2001, and Proof of Publication executed on June 1, 2001, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the conventional rezoning of the subject property. There was no discussion from the Floor. Upon motion by Council Member Chavez, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, the public hearing was closed and Ordinance No. 26432, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated on the West Side of South Autumn Street Approximately 90 Feet North of West San Fernando Street (91 S. Autumn Street)”, was passed for publication. Vote: 11-0-0-0.

11.18 PUBLIC HEARING ON CONVENTIONAL REZONING of the property located at the north side of Julian Street, approximately 70 feet west of Montgomery Street, from HI Heavy Industrial Zoning District to IP Industrial Park Zoning District, to allow a 16,750 square foot office building on 0.75 gross acre. (Donna Speiser, Owner; David Fazekas, Developer). CEQA: Resolution No. 60198. Director of Planning Building and Code Enforcement and Planning Commission recommend approval (6-0-1).

C 01-03-035 - District 3

Documents Filed: (1) Memorandum from Planning Commission Secretary James R. Derryberry dated June 15, 2001, stating the Planning Commission recommends that the City Council approve the proposed rezoning. (2) Memorandum from Planning Commission Secretary James R. Derryberry dated June 7, 2001 transmitting the Staff Report on C 01-03-035 dated June 6, 2001, recommending approval of the proposed rezoning. (3) Public Hearing Notice to consider a change in Zoning for C 01-03-035 dated May 16, 2001, and Proof of Publication executed on June 1, 2001, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the conventional rezoning of the subject property. There was no discussion from the Floor. Upon motion by Council Member Chavez, seconded by Vice Mayor Shirakawa, Jr. and unanimously carried, the public hearing was closed, the Planning Commission recommendation approved, and Ordinance No. 26433, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated on the North Side of Julian Street, approximately 70 Feet West of Montgomery Street”, was passed for publication. Vote: 11-0-0-0.

11.19 PUBLIC HEARING ON CONFORMING REZONING of the property located at the east side of Monterey Road, approximately 600 feet northerly of Tully Road, from A(PD) Planned Development Zoning District to A(PD) Planned Development Zoning District, to allow an increase in height, from 40 feet to 50 feet, for a previously approved affordable Single Room Occupancy (SRO) residential facility on 2.92 gross acres. (Core Development Incorporated, Owner/Developer). CEQA: Resolution No. 65657. Director of Planning Building and Code Enforcement recommends approval.

PDCSH 01-05-059 - District 7

Documents Filed: (1) Department of Planning, Building and Code Enforcement Staff Report on Project File Number PDCSH 01-05-059 dated June 1, 2001, recommending the Planning Commission forward a recommendation to the City Council to approve the PD rezoning. (2) Public Hearing Notice to consider a change in Zoning PDCSH 01-05-059 dated May 18, 2001, and Proof of Publication executed on June 8, 2001, submitted by the City Clerk

Discussion/Action: Mayor Gonzales opened the public hearing on the conforming rezoning of the subject property. There was no discussion from the Floor. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Diquisto and unanimously carried, the public hearing was closed, the Planning Commission recommendation approved, and Ordinance No. 26434, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated on the East Side of Montgomery Road Approximately 1000 Feet North of Tully Road”, was passed for publication.

Vote: 11-0-0-0.

11.20 PUBLIC HEARING ON PLANNED DEVELOPMENT REZONING of the property located at the north side of Blossom Hill Road, between Santa Teresa and Winfield Boulevards, from A(PD) Planned Development Zoning District to A(PD) Planned Development Zoning District, to allow an expansion of 394,845 square feet to an existing shopping center containing 954,389 square feet, for a proposed total of 1,349,234 square feet on 56.6 gross acres. (Martin, Eager, Malone (Trustees), Owner; Westfield Corporation, Inc., Developer). CEQA: Resolution No. 92060. Director of Planning Building and Code Enforcement and Planning Commission recommend approval (6-0-1).

PDC 00-09-088- District 10

Documents Filed: (1) Memorandum from Mayor Gonzales and Council Member Dando, dated June 18, 2001, recommending Council approve the Oakridge project as proposed. (2) Memorandum from Planning Commission Secretary James R. Derryberry, dated June 7, 2001, transmitting the Staff Report on PDC 00-09-088, dated June 7, 2001, recommending Council approve the proposed project. (3) Memorandum from Planning Commission Secretary James R. Derryberry, dated June 18, 2001, recommending Council adopt an ordinance rezoning the subject site as proposed by the applicant. (4) Binder of correspondence of “One thousand, three-hundred seventy-five Supporters of the Improvement and Expansion of Westfield Shoppingtown – Oakridge”, including the supporters’ comments submitted to the Planning Commission. (5) Public Hearing Notice to consider a change in Zoning PDC 00-09-088 dated May 31, 2001, and Proof of Publication executed on June 18, 2001, submitted by the City Clerk.

Discussion/Action: Mayor Gonzales opened the public hearing on the planned development rezoning of the subject property. Director of Planning, Building and Code Enforcement, James R. Derryberry, summarized background information on the proposed development, and recommended Council approve the proposed project. The following individuals spoke on various aspects of the development rezoning: Jim Eller, representing Westfield Corporation, Inc., the developer; Larry Green submitted letters from approximately 1300 supporters of the project; Joanne Bengeveno; Greg West; David Noel, President, VEP Community Association; and Neil Struthers, Building Trades Council of San José-San Benito spoke in support of the development. Bruce Olszewski and Tom Barger spoke against the proposal. William J. Garbett spoke in favor of a new EIR. Referencing the memorandum co-authored by Mayor Gonzales, Council Member Dando stated the final iteration of improvements to Oakridge is superior to previously approved proposals and includes new retail and restaurant space, a movie theater, an integrated parking structure, and greatly improved pedestrian circulation. She stated the applicant has incorporated traffic mitigation measures to address concerns from Staff and the community and has committed to work with District 10 Office and City Staff to address any further traffic concerns of the neighboring businesses, adjoining property owners, and the VEP Community Association. With regard to traffic concerns, she recommended Staff explore the safety conditions and traffic circulation on Hillview Road, as the project progresses through the PD zoning stage of the development. She read the following statement of overriding considerations into the record: “The EIR for this project identified cumulative regional impacts to air quality as significant and unavoidable; however, implementation of this project is consistent with the City’s economic development strategy and that it will encourage commercial development and help to revitalize and sustain and already urbanized area of the City. Implementation of the project will support the vitality of the Blossom Valley Area by providing jobs and neighborhood-serving commercial development in close proximity to the residential neighborhoods in this area. The project also is consistent with and will help the City accomplish several objectives of San José’s 2020 General Plan EIR: (1) It will support the City’s Sustainable Cities Strategy by including a pedestrian circulation system to encourage access to nearby transit, and due to the project sponsor, will encourage employee carpooling. The project also includes an irrigation system ready to connect to reclaimed water supply when available. (2) It will support a balanced community policy by locating jobs within the Planned Urban Area of the City, thereby improving the balance between jobs and housing. (3) It will support commercial land use policy by providing commercial development in proximity to both centers of employment and residential uses and is located near the transit facility at Oakridge Mall. (4) The project also will support the Growth Management Major Strategy of the General Plan by creating additional commercial uses and related jobs at an existing commercial infill location within an urbanized area of the City that is currently served by utilities and other similar services. These benefits outweigh the significant and unavoidable impacts of the project that have been identified”. Upon motion by Council Member Dando, seconded by Council Member Cortesé and unanimously carried, the public hearing was closed, the Planning Commission recommendation and the statement of overriding considerations were approved, and Ordinance No. 26435, entitled: “Ordinance of the City of San José Rezoning Certain Real Property Situated on the North Side of Blossom Hill Road Between Santa Teresa Boulevard and Winfield Boulevard”, was passed for publication with the understanding that the applicant will continue to work with Council Member Dando’s Office and City Staff to address the traffic concerns expressed by the community; and Resolution No. 70459, entitled: “Resolution of the Council of the City of San José Making Certain Findings Required by the California Environmental Quality Act in Connection With a Project Consisting of a Planned Development (PD) Rezoning to Allow Expansion of the Oakridge Shopping Mall For Which an Environmental Impact Report and Subsequent Addendum Has Been Prepared (PDC 00-09-088)”, was adopted. Vote: 11-0-0-0.

3.4 (a) (1) Conduct a Public Hearing to receive public and Council input on the future cable-related needs and interests of the community.

(2) Accept draft reports entitled:

(a) City of San José, California Report on Cable-Related Needs and Interests and Operator Past Performance, and

(b) City of San José, California Request for Renewal Proposal for a Cable Television Franchise, including a draft franchise and model cable ordinance as attachments.

(3) Establish a deadline of July 13, 2001 for submission of written comments on these draft reports and the attachments.

(4) Direct staff to seek additional information from AT&T on these draft reports, where appropriate, in order to make a final recommendation to Council on these reports.

(5) Direct staff to review comments received on the draft reports, conduct any necessary further investigations to be able to respond to those comments, or to complete the ascertainment and return in August with final documents needed to close the ascertainment and to request renewal proposals for a cable television franchise to be presented to Council by October 19, 2001.

(b) Adoption of a resolution authorizing the City Manager to negotiate and execute a third amendment to an agreement with Miller & Van Eaton for cable franchise consulting services for an additional amount of $350,000, for a total contract cost not to exceed $696,000, and to extend the term of the consultant agreement to June 30, 2002.

(City Manager’s Office)

Documents Filed: (1) Memorandum from Public Outreach Manager Tom Manheim, dated June 13, 2001, recommending Council adopt said resolution. (2) Memorandum from Public Outreach Manager Tom Manheim, dated June 11, 2001, (a) transmitting the binder containing draft documents designed to meet requirements set out in federal law that govern the cable franchise renewal process, and (b) recommending Council approve actions related to the cable franchises. (3) Hard copies of the franchise renewal status report presented by City Administration.

Discussion/Action: Mayor Gonzales opened the public hearing to receive public and Council input on the future cable-related needs and interests of the community. Public Outreach Manager Tom Manheim introduced Deputy City Manager Kay Winer and lead consultant Joe Van Eaton of Miller and Van Eaton, who assisted in the presentation to Council, which included the (1) Draft Report on Cable-Related Needs and Interests and Operator Past, (2) Draft Request for Renewal Proposal for Cable Television Franchise (RFRP), (3) Draft Model Franchise, and the (4) Draft Cable Ordinance. Tom Manheim summarized the actions required for each of the four documents and, along with written reports received prior to July 13, 2001, which would be finalized and presented to Council for approval in August 2001. Joe Van Eaton presented a comprehensive overview of the findings and the current status of negotiations with AT&T, explained the legal context within which the City is operating, summarized the findings supported by the research compiled from the questionnaires returned, provided comparative analysis between the research and AT&T’s informal offer, and described future steps to be taken. Mayor Gonzales advised Council to identify the type of issues that should be addressed in negotiations with the provider and submit those concerns to Staff for response in August 2001. Before the cable-related issue is returned to Council in August 2001 for consideration and approval of the final Request For Proposal format, Council directed Staff to provide the following information: (1) Identify the exact funding differences between what the City is required to pay and the responsibility of AT&T in accordance with the federal Cable Act. (2) Identify the terms and conditions insisted on by AT&T that the City finds unacceptable. (3) Regarding enforceability, what are the terms insisted on by AT&T that would weaken the City’s ability to enforce the franchise. (4) Under the financial analysis, what are the current operating costs to the City for existing PEG System and what would those costs be under the proposed structure. (5) Identify the additional costs assumed in the staff report. Council reiterated direction to Staff to establish deadline of July 13, 2001 for submission of written comments on these draft reports and the attachments, and directed staff to seek additional information from AT&T on these draft reports, where appropriate, in order to make a final recommendation to Council on these reports, and to review comments received on the draft reports, conduct any necessary further investigations to be able to respond to those comments, or to complete the ascertainment and return in August with final documents needed to close the ascertainment and to request renewal proposals for a cable television franchise to be presented to Council. The City Council declined support of any proposal in which the needs of San José and the educational needs of the East Side School District are not addressed. Fifteen individuals addressed Council on various aspects of the proposed cable television franchise: Eddie Garcia, representing AT&T; Kris Olson; Therese Berghelz; Jeff Ott; Jim Henderson, San José Unified School District; Joanne Gunn; Adrienne Akinsete, Evergreen Valley Collage; Brenda McHenry, representing League of Women Voters; Jonathan Keim, Local 393; Rick Callender, N.A.A.C.P.; Clarence Madrilejos; and Paul Stein. William J. Garbett spoke against the proposed action. Upon motion by Vice Mayor Shirakawa, Jr., seconded by Council Member Chavez and carried, the reports were accepted and direction to staff was approved with additional direction to return to Council in August 2001 with responses to Council’s concerns, including the contract amounts for both the City and AT&T, and the distinctions; terms and conditions requested by AT&T; operating costs to the City for existing PEG System and what that would be under the structure recommended for approval by the City; additional costs and the responsible entities; educational components that meet the needs of School Districts; and identify the kind of issues that should be addressed in the negotiations with the provider, and Resolution No. 70458, entitled: “A Resolution of the Council of the City of San José Authorizing the City Manager to Negotiate and Execute a Third Amendment to the Consultant Agreement With Miller & Van Eaton For Cable Franchise Consulting Services to Extend the Term Through June 30, 2002 and Increase Compensation by $350,000 for a Total Contract Amount Not to Exceed $696,000”, was adopted.

Vote: 10-1-0-0. Noes: Diquisto.

ADJOURNMENT

The Council of the City of San José adjourned at 10:35 p.m. in memory of Ms. Ann Turner, first homeless person to serve as a member on the Housing Advisory Commission; and in memory of Colleen Peyton, mother of David Peyton, Superintendent in the Office of Aging.

RON GONZALES, MAYOR

ATTEST:

PATRICIA L. O’HEARN, CITY CLERK