Mayor Frederik M. Fowler
Vice Mayor Julia Miller
Councilmember Manuel Valerio
Councilmember Pat Vorreiter
Councilmember Jack Walker
Councilmember Tim Risch
Councilmember John Howe

List of Claims and Bills Approved for Payment by the City Manager (No. 90)

Staff Recommendation: Approve the list of bills.

Budget Modification No. 24 - Downtown Area Maintenance Project and Concrete Maintenance Program (SDP 21503)

Amendment to Title of Classification Assistant Director of Public Works/City Engineer and Modification of Job Classification

Annual Award of Contract for Licensing Software in Support of the City's Financial Application (#F0204-54)

Staff Recommendation: Award a one-year contract in the amount of $54,769 to the Oracle Corporation of Rocklin for network user software licensing and technical support for the Information Technology Department.

Award of Contract for Design and Construction Support Services for Calabazas Creek Trail Project (#F0204-55)

RTC 02-135

Protest Hearing for Reorganizing an Area Designated as De Anza 02-01 (Crawford Drive Annexation)

Trudi Ryan, Planning Officer, presented the staff report and confirmed with the City Clerk that no written protests had been received.

The Mayor opened the Public Hearing at 8:24 p.m. and there being no public comments closed the Public Hearing at 8:25 p.m.

No action was required.

Downtown Urban Design Study

Public Outreach Options for the Downtown Urban Design Plan

At the Mayor's suggestion, items 3 and 4, Downtown Urban Design Study and Public Outreach Options for the Downtown Urban Design Plan, were presented and considered concurrently.

Robert Paternoster, Director of Community Development, gave a brief history of the plan from its inception and gave an overview of the composition and role of the Stakeholders Committee and the public outreach and participation that went into developing the plan. He stated the purpose for the Public Hearing tonight is not to adopt the plan, as it has not gone through an environmental review, but to review the plan and approve it in concept so that it can become the object of an environmental review. He reviewed the actions that the Council could consider at this time. He then gave a history of the outreach that had been accomplished and the legal notification process.

Director Paternoster introduced Joe Antuzzi, Chairman of the Stakeholders Advisory Committee.

Mr. Antuzzi gave an overview of the planning process. He declared that the committee's mission statement reads, "An enhanced traditional Downtown serving the community with a variety of destinations in a pedestrian friendly environment." He then introduced the consultants, Barry Elbasani and Jerry Keyser.

Mr. Elbasani stated that this plan is an update of an existing plan from 1993. He and Mr. Keyser gave an extensive report on the design plan with specific recommendations for implementation.

Mr. Antuzzi identified 12 important issues with recommendations of how they might be resolved as follows:

1. The City Council adopt the plan in concept and refer it to staff and the Planning Commission to make necessary amendments to the Downtown Specific Plan, the Redevelopment Area plan, and the Zoning Code and Map. We realize that all of these actions will require environmental review, public notice and public hearings.

2. The redevelopment power of eminent domain not be used to acquire owner occupied single family dwellings. Also not to use eminent domain to acquire commercial property unless the owners receive fair market value and the tenants receive benefits that will allow them to relocate without financial hardships. These could be relocation assistance in the form of lease buy-outs or other assistance

3. The existing neighborhoods adjacent to downtown, including the "Heritage District Neighborhood" be protected from downtown traffic and spillover parking. The city can provide physical gateways at neighborhood entrances and the creation of subtle boundaries between public areas and private residential communities by narrowing residential streets, special signage and special landscaping.

4. The following areas be rezoned to protect existing low density residential character:

Properties fronting the north side of Washington Ave. east of Bayview from R-3 to R-2

5. Reduce the residential height limit for East of Carroll Street from the permitted 50 ft (4 stories) to 40 ft (3 stories)

6.Increasing the residential parking requirements is also recommended from the existing 1.75 spaces per 2 bedroom unit throughout the Downtown Specific Plan to 2 spaces per 2-bedroom unit to reduce the potential of parking overflow into lower density residential streets and commercial parking lots. We also recommend additional spaces for larger units.

7. For protection of small businesses, recommend that the City Council study ways to help small local businesses remain downtown as the area redevelops. Suggest consideration of measures, such as special permit review at change of tenancy, rent subsidies either from the developer or tax increment, relocation assistance, tax-sharing agreements, business counseling and subdivision of retail space into condominium ownership by tenants.

8. A high priority be given to the proposed loop from Mathilda Ave southbound to Evelyn Ave. Also signage and/or physical modifications at the intersections of Mathilda and Sunnyvale Ave. This will make better use of Evelyn and Sunnyvale Ave as access streets to downtown. Also recommend pullouts along major transit routes throughout downtown.

9. A Transportation Demand Management Program is important, especially to consider the impacts of the Moffett Park Specific Plan which is now being prepared. Recommend that a full traffic analysis be included in the Environmental Impact Report related to amendment of the Downtown Specific Plan. Also recommend that consideration be given in that analysis to the creations of a Transportation Demand Management Program for downtown. The goal will be to reduce average daily trips in single occupied vehicles. This can be achieved by facilitating and promoting the use of alternative transportation methods.

10. The construction of new parking facilities be phased in so that there is always sufficient parking available at all times in logical locations.

11. One of our goals is to make downtown uniform as opposed to separate areas. This can be achieved by streetscape improvements, and recommend this be given high priority. The sidewalks, streetlights, and especially street trees throughout downtown should be done in a uniform manner.

12. Handicapped accesses should be addressed in all parking facilities, sidewalks and private development in accordance to federal law.

In closing, Mr. Antuzzi affirmed that the plan is changing downtown Sunnyvale from 1960 urban to 2002 urban. Downtown high density is a must in an area that has such high land values. He thanked the Mayor, Council and Planning Commission for the opportunity to participate in the preparation of the Downtown Urban Design Plan.

Mayor Fowler opened the Public Hearing at 9:15 p.m.

Yolanda Brown, Planning Commission Chair, and Dave Simons, Planning Commission Vice Chair, offered comments on behalf of the Planning Commission. They noted that public outreach is critical. They recommend that a study be conducted to relocate the Downtown Plaza. The Planning Commission supports the recommendation that the height limit in the 100 block of Charles Street be reduced from four to two stories. Light rail and other transit routes into the area should be studied as part of the process. They would like to see a model as part of the outreach program. Every citizen will be affected by the plan and advocate extensive outreach is critical.

Philip Ong and Nancy Tivol, Sunnyvale Community Services, reported that their Board of Directors voted in favor of the plan. There is a critical need for high-density affordable housing and childcare services in this area.

Todd Ruble, Greenwood Properties, stated the plan meets the objectives of the City and offers a pedestrian friendly environment. They would like for the Council to consider including multi-family housing in their plan as an alternative.

Eliot Barnett, Greenwood Properties, stated that this is a unique opportunity. After an analysis of the area, they decided to open the mall up to an open air and pedestrian friendly environment. He suggested placing high density residential on Washington and Iowa Avenues as alternative to be studied in the EIR.

Michael Goulash, a member of the public, endorses the plan and supports alternative 3. He feels that the plan accommodates both private citizens and businesses.

Ron Harnack, a member of the public, would like the notification to extend beyond the required 300 feet to citizens.

Andy Maloney, a member of the public, commented that the historical integrity of a traditional downtown would be compromised by allowing large office building and new residential.

Olaf Hirsch, a member of the public, expressed concerns about the makeup of the members of the Stakeholders Committee. He had additional concerns about traffic and air quality.

Ron Ritucci, a member of the public, stated that the existing mall destroyed the grid pattern of downtown and opposes the plan.

Edward Yu, a member of the public, noted that the Downtown Development Plan needs a vision for business retention.

Monica Davis, representing the Charles Street 100 Neighborhood Association, would like a two-story height limit on the portion Mathilda Avenue that parallels Charles Street.

Chris Kendall, small business owner, expressed concerns that the businesses in Town and Country will suffer and would like to be a part of the new plan.

Director Paternoster gave assurances that the Town and Country area would not be torn down in the next year as rumored.

Gary Gold, small business owner, is looking for tangible help to assist the owners and preserve the small businesses.

Jennifer Gunderson, Moffett Park Business and Transportation Association, supports the plan in concept. It offers easy accessibility for Moffett Park employees. Housing is a critical factor when considering employee retention.

Fred Weisinger, a member of the Stakeholders Committee, believes that high-density housing is critical in the long-range plan. He supports the concept and asserted that a physical model would be a valuable tool in public outreach efforts.

Grace Witt, representing AMD Community Affairs, urged the Council to adopt the plan in concept and go forward with the project.

Michael Klein, a member of the public, commented that the plan supports businesses. He offered commendations for the outreach efforts. The plan offers the best opportunities for families and businesses.

Sandy Holquin, a member of the public, would like a flyer mailed to all residents to educate them about the plan. She stressed that planning for adequate parking is important.

Carlo Holquin, a member of the public, had concerns abut the building heights. He suggested that the Council consider placing the plan on the ballot.

Ray Johnson, a member of the public, advocates keeping the redevelopment area low-density. He questioned the legitimacy of the Redevelopment Agency. He does not want eminent domain used.

Don Nolan, a member of the public, would like extended outreach efforts. He stated that, in his opinion, the 1993 plan was a failure and the current plan should not be built on it. Reduce the high density and office structures in the plan.

Arley Marley, a member of the public, supports the plan. It offers a new look for Sunnyvale.

Debbie Owens, Chamber of Commerce Chairman, supports the plan. It will attract businesses and shoppers.

Chad Stewart, downtown homeowner, supports the plan. He would like Council to follow through on the streetscape plans.

Judith Hamilton, a member of the public, stated that a model is needed for the public to visualize the plan.

Paul Werner, a member of the public, applauded the Council for their extensive community involvement. He noted that while the plan supports a pedestrian friendly environment, the traffic flow has not been adequately addressed.

Jeff Jones, a member of the public, does not have a clear picture of what the plan entails. He would like to know if a Parks and Recreation element has been considered in the plan.

At this juncture, Vice Mayor Miller read a letter submitted by Werner Gans. His letter urges the citizens to offer their input.

Ray Montalvo, business owner and member of the public, supports the approval of the plan in concept. He stated that it offers a potential to make the Sunnyvale a more vibrant community.

Michael Flores, a member of the public, stated that there has not been adequate outreach to the citizens. He questioned how the plan would affect businesses outside of the redevelopment area.

Suzi Blackman, President and CEO of the Chamber of Commerce and member of the Stakeholders Committee, stated that the group effectively worked together and gathered broad public comments. She urged the Council to move forward and approve the plan.

Director Paternoster distributed a communication from Todd Myers.

Mayor Fowler closed the Public Hearing at 11:45 p.m.

Councilmember Vorreiter recognized the Stakeholders Committee for their commitment and ultimately reaching a consensus for the Downtown Urban Design Plan.

During a lengthy discussion, the Council deliberated on all of the recommendations that were offered by the Stakeholders Committee. In the discourse and exchange of ideas, the Council considered many alternatives for inclusion in the plan and evaluation in the EIR.

Motion by Councilmember Risch and seconded by Councilmember Howe to approve in concept the Downtown Urban Design Plan recommended by the Downtown Stakeholders Advisory Committee, and direct staff to work with the Planning Commission and the Redevelopment Agency to prepare appropriate amendments to the Downtown Specific Plan, the Zoning Code and Map, and the Redevelopment Area Plan, and to undertake the necessary environmental review. Staff is specifically directed to:

• Work with the Planning Commission to evaluate the proposed reductions in permitted density and height for residential development in the 100 block of Charles Street, 400 and 500 block of Washington Avenue, and the 400 block of McKinley, and the proposed increases in permitted height of buildings fronting on Mathilda Avenue;
• Evaluate the residential units adjacent to the parking structures in more detail and work with the property owners in Block 18 and Block 18A to find suitable areas that meet the criteria for the residential development;
• Consider alternative building heights and height transition along Charles Street; and
• Conduct a community outreach program to include:

Friendly amendment by Councilmember Walker to instruct staff to review the Downtown design guidelines and report to Council recommended revisions that would promote high quality design and construction in accordance with the intent of the Plan. The amendment was accepted.

Friendly amendment by Councilmember Valerio to remove the three dimensional model from the outreach program. The amendment was not accepted.

Motion by Councilmember Valerio, seconded by Councilmember Vorreiter that the three dimensional model be removed from the public outreach program. The motion failed on a split vote with Mayor Fowler, Vice Mayor Miller, and Councilmembers Risch and Howe dissenting.

Friendly amendments by Councilmember Howe to reiterate the Council's policy to encourage the extension of light rail from Moffett Park to the downtown area. Staff to explore housing ownership opportunities in downtown. Staff to be cognizant of parking issues between high density and low density residential and consider the need for a parking enforcement program to avoid spillover parking into the low-density residential area. The amendments were accepted.

Friendly amendment by Vice Mayor Miller to exclude blocks 9-14 and block 20 from the plan. The amendment was not accepted.

Motion by Vice Mayor Miller to exclude block 20, Olive Avenue to El Camino Real, from the plan. The motion died for lack of a second. 

Mayor Fowler offered friendly amendments to include in the EIR the evaluation of "live/work" units along Mathilda Avenue. One alternative to be evaluated in the EIR is the consideration of uses in Block 18 other than large office buildings (retail and residential.) Another alternative to be evaluated is the sizing of the Town and Country residential to only one level of underground parking. The amendments were accepted.

Vice Mayor Miller expressed opposition because she believes that the plan includes a larger area than she deems necessary and more public outreach is needed to educate the citizens.

The motion carried with Vice Mayor Miller dissenting.

Appeal of Planning Commission Hearing of April 8, 2002 and Administrative Hearing of April 10, 2002

Vice Mayor Miller requested that staff investigate the intermittent outage of lights on Murphy Street. She requested that the City Manager prepare a memo analyzing the cost savings from turning off the water fountains at City parks and consider rotating this practice between parks. In conclusion, she requested that staff prepare a letter for the Mayor and Vice Mayor's signature to the owner of the Honduras Restaurant.