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

Award of Bid No. F0202-46 for Kifer Road Sewage Pump Station Improvements and Budget Modification No.29

Acceptance of Improvements – Power Generation Facility Improvements Project

Staff Recommendation: Accept, by resolution, the project as complete.

RESOLUTION NO.126-02: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE ACCEPTING AS COMPLETED WORK FOR POWER GENERATION FACILITY IMPROVEMENTS PROJECT (PR-95-02 (G)), AUTHORIZING FINAL PAYMENT AND DIRECTING CITY CLERK TO FILE NOTICE OF COMPLETION

Housing and Human Services Commission Transition Plan

FY 2002/03 Action Plan for Community Development Block Grant (CDBG) and HOME Funds Process

Annabel Yurutucu, Housing Specialist, presented the staff report. She explained that each year the City must submit an Action Plan to the U.S. Department of Housing and Urban Development (HUD) in order to receive funds under the Community Development Block Grant Program (CDBG) and the HOME Program. She detailed the review process of the human service agencies for funding eligibility. Two of the funded agencies had performance shortfalls. The proposed funding allocations are based on the performance of all the participating human service agencies. She responded to questions from Council relating to the funding levels, HUD requirements, criteria for reaching their goals and the methodology for reporting the level of services.

Vice Mayor Miller clarified that the Commission was in agreement with the funding recommendations.

Irisann Nelson, Chairman of the Housing and Human Services Commission, stated that the report is based on the discussions and recommendations from the Commission. The Commission members had met with the agencies and discussed their goal and levels of service. Their recommendation was to split the funds out and reduce the funds to two of the agencies that did not meet their goals and award agencies that have out-performed their goals. The Commissioners routinely make site visits to agencies to help them identify needs and assist them in reaching their goals.

Mayor Fowler opened the Public Hearing at 9:10 p.m.

Rev. Peggy White, Pastor of St. John's Lutheran Church, noted that there are many people in need of assistance and asked the Council to maintain the current level of funding.

Cathy Edwards, Homeless Coordinator for Sunnyvale Presbyterian Church, noted that the funding supports a variety of program for residents. It is difficult to estimate the number of people who will require assistance and therefore the level of service fluctuates. She requested that the funding not be reduced to Cupertino Community Services.

Dessa Griffith, St. Luke Lutheran Church, opined that the funds are helping people and it is difficult to identify a city of residence for reporting purposes. She asked that the funding not be cut.

Greta Heinemeier, Chairman of the Congregation of St. John Lutheran Church, stated it should be irrelevant where the person who needs assistance comes from.

Jaclyn Fabre, Director of Cupertino Community Services, reported the high success rate of people that the agency has helped. There are many volunteers and in-kind services that contribute to the success of the program. She urged the Council not to reduce funding for her agency.

Melissa Sanchez, Clara-Mateo Alliance, thanked the Council for their continued support.

Grace Dunham, Trinity United Methodist Church, stated that it is difficult to identify the residency of a homeless person. She would not like the funding to the Cupertino Community Services cut.

Victoria Pavlak, a member of the public, quoted a biblical passage from the Book of Proverbs regarding the needs of the poor. She asked that Council not cut funds that assist the homeless.

Donna DiMinico, Long Term Care Ombudsman Program, thanked Council for their funding support. She advocates rewarding the agencies for reaching their goals.

Tracey Chew, Director of Housing Services for Catholic Services, explained how their funding is utilized. The goal for their clients is self-sufficiency. She asked the Council to look at the long-range effects of the programs.

Pete Richards, Housing and Human Services Commissioner, stated that he did not support the reduced funding to any agencies or increasing funds to agencies.

Mayor Fowler closed the Public Hearing at 10:00 p.m.

Councilmember Vorreiter moved, and Councilmember Howe seconded, to adopt the staff's recommendations of $1,810,039 in CDBG funds and $1,409,601 in HOME funds (including $792,601 of prior year reallocations) for FY 2002/2003. A friendly amendment by Councilmember Walker to direct HHSC to reevaluate their recommendations for general funding allocations for outside group funding prior to final adoption of the budget was accepted. The motion carried unanimously.

At 10:19 p.m. Mayor Fowler recessed the meeting and reconvened the meeting at 10:26 p.m.

Review Status, Intent and Effectiveness of Existing Public Art Policies and Practices

Nancy Steward, Superintendent of Arts and Youth Services, presented a detailed staff report.

Council discussed the methodologies that staff had considered supporting the recommended formula to calculate the expenditure required for art eligible in private development projects. Also discussed were in-lieu fees, placement of unspent fees into the Public Art Fund, and inequities between small and large developments.

Vice Mayor Miller discussed the maintenance costs for existing public art.

Councilmember Walker queried if a land contribution could be considered to satisfy the in-lieu contribution requirement.

City Attorney Armento responded that staff could consider alternatives but it is not called out in the language of the ordinance.

Dane Beezley, Arts Commission Chairman, reported that the Arts Commission suggested that contributions be assessed in two phases for larger projects. They also recommended limiting the number of buildings to two for each phase of development.

Yolanda Brown, Planning Commission Chair, and Dave Simons, Planning Commission Vice Chair, reported that the Commission supported alternatives 1,4,5 and 6 and recommended limiting the cap of fees to $500,000 regardless of the size of the development and not require an additional maintenance fee if the fees exceeded $500,000.

Mayor Fowler opened the Public Hearing at 11:04 p.m.

Chris Moylan, Arts Museum Society, stated that this is a good opportunity to reevaluate the arts policies. He thinks the assumption is that projects are not attractive but that the reviews that are required assure an aesthetically pleasing project. He suggested that mitigation could be spread to less attractive existing areas of the City. He further suggested that Council give the developer the option of paying an in-lieu fee.

Jane Vaughn presented a developers perspective. She did not support the one and a quarter percent in-lieu fee but supports paying for on-site artwork. She stated that if the percentage for in-lieu fees were the same she would then support the fee.

Suzi Blackman, President and CEO of the Sunnyvale Chamber of Commerce, supports Public Art but opposes any increase in fees. She suggested reducing the percentage to one-half percent and placing a cap of $300,000 to $400,000.

Jeff Jones, a member of the public, opposes the cap on fees. He thinks that developers should pay for mitigating new projects. He had concerns that once the art is in place it could be sold and removed.

City Attorney Armento clarified that by law the artwork cannot be removed as it must be recorded with the property.

Mike Klein, Chairman of the Chamber of Commerce Legislative Committee, expressed concern that any additional costs to developers could drive business to other areas.

City Attorney Armento noted that the item deals with an exaction, not a fee or tax, and is based on a nexus.

Mayor Fowler closed the Public Hearing at 11:33 p.m.

Councilmember Risch moved, and Vice Mayor Miller seconded, to approve Alternatives 1, 5 and 6, with a one-half percent in-lieu fee, delete the long-term maintenance fee and place no cap on fees. The motion failed on a split vote with Councilmembers Valerio, Vorreiter, Walker, Howe, Mayor Fowler and Vice Mayor Miller dissenting.

Motion by Councilmember Walker, and seconded by Councilmember Vorreiter to:

Approve a policy to require a minimum expenditure of one percent (1%) for art in private development in non-residential and commercial development projects, and a one-percent (1%) for art in-lieu fee alternative. The one-percent (1%) will be calculated using the building permit valuation formula as referenced in Title 16 of the Sunnyvale Municipal Code. The valuation will include costs such as building and tenant improvements and exclude the cost of land and site improvements such as grading.

With advisory input from the Arts Commission and Planning Commission, create a master plan to identify high profile locations on public property and in public buildings for the installation of art using any in-lieu fees.

Adopt the proposed amendment to the ordinance that includes the requirement of an expenditure of one percent (1%) for art in private development, and a comparable in-lieu fee alternative. A Budget Supplement to support the development of the master plan for public art will be reviewed by Council in the context of the FY2002/2003 budget approval process.

Adopt the proposed Administrative Policy to require art in public construction projects under certain circumstances and require an expenditure of one percent of the building permit valuation as referenced in Title 16 of the Sunnyvale Municipal Code. In the case of park and open space projects, the one percent will be calculated based on the capital project budget excluding administration costs of each eligible project

Approve the staff recommendation to amend the existing ordinance, in accordance with Attachment F and incorporate: (a) the standard of one percent for art in eligible private development projects whether art is provided on-site or the in-lieu fee alternative is used; (b) change the authority for approval of the proposed location for art in private development from the Planning Commission to the Arts Commission; (c) clarify the property owners responsibility to repair and maintain artwork that was installed as a condition of development, and; (d) provide for the imposition of administrative fines and penalties should the property owner fail to maintain the artwork.

Progress Report – Youth and Family Services Project

Coryn Campbell, Neighborhood and Family Services Manager, presented the staff report

Councilmember Vorreiter would like a future report to include the results of the project.

Vice Mayor Miller noted that the dollar amount proposed for the project is $362,258 for overall administration and mobile program implementation.

Motion by Councilmember Vorreiter, and seconded by Councilmember Risch to approve the staff recommendation to accept the progress report and support staff action to include the continuation of the Youth and Family Services Project as part of the 2002/2003 budget process. Direct staff to include the results of the project in future reports. The motion carried unanimously.

Amendment to the Sunnyvale Municipal Code Section on Special Development Permits and Height (SMC 19.90.030(b)(1))

Trudi Ryan, Planning Officer, presented the staff report.. Staff is recommending an amendment to the consideration of buildings over 75 feet in height through the Special Development Permit process. The need for this flexibility in height limits was identified in the review of the proposed Juniper Networks campus. The proposed text amendment is the only reasonable mechanism to provide Council the flexibility to approve this project as proposed by the applicant. This would not change the 75-foot height limit in some commercial and both industrial-zoning districts and would create the ability for the reviewing body to consider an exception.

Councilmember Risch expressed concern for Public Safety's response capability.

Ms. Ryan stated that the new features had been reviewed and approved by Public Safety.

Councilmember Howe suggested that Council review anything over 75 feet by variance.

Vice Mayor Miller would like the height limits to be limits in the M-S and M-3 restricted to north of Highway 237.

Mayor Fowler opened the Public Hearing 12:05 a.m.

Melinda Hamilton, a member of the public, asked the Council not to push this through before the Moffett Park Specific Plan is heard.

Andy Maloney, a member of the public, read a letter questioning the validity of the staff report. He would like additional Public Hearings.

Thom Mayer, a member of the public, would like for it to be difficult to get approvals to build in excess 75 feet. He stated that he would like to limit this to the area north of Highway 237.

Jane Vaughn, developer, noted there needs to be consistency for future building sites in capping height limits. She stated that the highest building in the project is 130 feet.

Judith Hamilton, a member of the public, expressed concerns for the City becoming a "high rise community." She would like the taller buildings kept away from the downtown area.

Mike Bangs, developer, offered his assurance that the project would be limited to the area north of Highway 237.

Cynthia Johnson, a member of the public, read a letter stating her opposition to allowing taller buildings.

Tom Carrig, Heritage Neighborhood Association, supports limiting this to the area north of Highway 237.

Jeff Jones, a member of the public, thinks that Juniper Network should go through the variance process and focus on a specific area.

Vice Mayor Miller read a letter on behalf of Charles Wallin expressing his opposition to Ordinance Amendment.

Ray Johnson, a member of the public, noted that the Westinghouse buildings that are across the railroad tracks in the downtown area are zoned M-3 or M-2. He would not like for this area to be affected by the ordinance.

Mayor Fowler closed the Public Hearing at 12:45 a.m.

Motion by Councilmember Howe, and seconded by Councilmember Risch, to introduce the ordinance for the code amendment for SMC 19.90.030(b)(1) with a change stated that any building over 75 feet in height would require a Planning Commission Hearing and Council approval, and be limited to north of Highway 237 and to MS and M3 zoning districts. The motion carried unanimously.

Vice Mayor Miller confirmed that the entire Lockheed Master Plan is included in the area north of Highway 237.

Appeal of the Planning Commission Hearing of April 22, 2002 and Administrative Hearing of April 24, 2002

No action was taken.