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

Lists of Claims and Bills Approved for Payment by the City Manager (#093)

Amendment of City’s Contribution for PERS Health (Medical) Insurance for SEIU Annuitants (Retirees) and Salary Resolution

Staff Recommendation: Adopt the resolution amending the City's contribution for health insurance with PERS to conform to the Public Employees' Medical and Hospital Care Act, and MOA provisions, and amending the Salary Resolution to reflect the change in contribution.

RESOLUTION NO. 127-02: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE FIXING THE CITY'S CONTRIBUTION AS EMPLOYER UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT FOR CERTAIN RETIREES

Award of Bid No. F0203-51 for the Construction of the Sunnyvale Skateboard Park and Budget Modification No.30

Robert Walker, Parks and Recreation Director, responded to questions.

City Attorney Armento stated the report indicates that this project is categorically exempt but, in fact, this project was the subject of a negative declaration.

Mayor Fowler stated the report needs to reflect that change for the record.

Director Walker explained that an approval would be the final action bringing about the development of a skateboard park at Fair Oaks Park. Council has already conceptually approved the plans. This would award the contract to the low bidder. Construction will begin soon with a completion date in the Fall of 2002.

Mayor Fowler opened the Public Hearing at 7:50 p.m. and there being no public comment closed the Public Hearing.

Motion by Vice Mayor Miller, and second by Councilmember Howe, to award a contract in the amount of $843,500 to A.J. Vasconi General Engineering; approve a construction contingency in the amount of $126,525 (15% of construction costs); and approve Budget Modification No. 30 in the amount of $513,558. The motion carried unanimously.

Award of Contract for Engineering Services to Upgrade the Heating, Ventilation and Air Conditioning System at the Public Library (#F0205-64)

Staff Recommendation: Award a contract in the amount of $91,628 to ESI Engineering Services for engineering services to upgrade the Library HVAC system; and approve a contingency in an amount not to exceed $28,372, if authorized by the Director of Public Works.

Adoption of Ordinance No. 2693-02: Amending Section 19.90.030 of the Sunnyvale Municipal Code to Allow Consideration of Buildings in Excess of Seventy-five Feet in Height in M-S and M-3 Zoning Districts Located in the Area North of State Route 237 Through a Special Development Permit

Staff Recommendation: Adopt the ordinance.

ORDINANCE NO. 2693-02: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE AMENDING SECTION 19.90.030 OF THE SUNNYVALE MUNICIPAL CODE TO ALLOW CONSIDERATION OF BUILDINGS IN EXCESS OF SEVENTY-FIVE FEET IN HEIGHT IN M-S AND M-3 ZONING DISTRICTS LOCATED IN THE AREA NORTH OF STATE ROUTE 237 THROUGH A SPECIAL DEVELOPMENT PERMIT

RESOLUTION
NO. 129-02
RTC 02-182

Authorization to file the FY 2002/03 Transportation Development Act Article 3 Applications for Pedestrian and Bicycle Projects

Jack Witthaus, Transportation and Traffic Manager, presented the staff report regarding the allocation of TDA Article 3 funds which are a return to the City of state sales tax money that are earmarked for pedestrian and bicycle projects.

Mr. Witthaus clarified that the RTC had incorrectly stated that staff and Bicycle and Pedestrian Advisory Committee (BPAC) had recommended approval of the resolution. The BPAC recommended approval of the resolution with the stipulation that one-year TDA funding from advance funds be allocated with the concern that funds might get locked up from other projects. Staff recommends two years due to construction deadlines. Staff can commit to the BPAC that as the projects recommended for funding move forward, to keep the BPAC closely informed of progress. Projects that come in under bid could free up TDA funds. Staff will also continue to look for other sources of funds to help free up the TDA money.

Mayor Fowler opened the Public Hearing 7:57 p.m.

Fred Wiesinger, a member of the Bicycle and Pedestrian Advisory Committee, requested this item be pulled to clarify the error in the staff report. The BPAC could not endorse the staff proposal at that time, as it appeared to be allocating two years of TDA funding to one project. It now appears to support at least five projects. BPAC considers these projects important but with the information they had at the in March, they could not support the two-year allocation.

Mr. Witthaus noted that the TDA resolution must be submitted to the VTA by May 24, 2002.

Vice Mayor Miller suggested that the City apply for TFCA regional funding from the Air Quality Management District, as there is $10,000,000 to be allocated this year. The TFCA deadline for submitting requests for this cycle is June 23, 2002.

Mayor Fowler closed the public hearing at 8:04 p.m.

Motion by Councilmember Valerio, and seconded by Vice Mayor Miller, to adopt the resolution authorizing the filing of candidate project applications with the VTA and MTC for allocation of Transportation Development Act funds for 2002 for pedestrian/bicycle projects. A friendly amendment was offered by Vice Mayor Miller to apply for current year TFCA funds. The amendment was accepted. The motion carried unanimously.

RESOLUTION NO. 129-02: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE AUTHORIZING THE FILING OF AN APPLICATION WITH THE METROPOLITAN TRANSPORTATION COMMISSION FOR THE ALLOCATION OF FISCAL YEAR 2002-03 TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 PEDESTRIAN/BICYCLE PROJECT FUNDING

RESOLUTION
NO. 130-02
RTC 02-183

Acceptance of Improvements – Street Reconstruction

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

RESOLUTION NO. 130-02: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE ACCEPTING AS COMPLETED WORK FOR STREET RECONSTRUCTION (ST-01/02-01(A)), AUTHORIZING FINAL PAYMENT AND DIRECTING CITY CLERK TO FILE NOTICE OF COMPLETION

Resolution Setting a Public Hearing on Sewer Assessment Charges for Properties Located Outside the City

Staff Recommendation: Adopt the resolution, which sets a public hearing for June 11, 2002.

RESOLUTION NO. 131-02: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE PROVIDING FOR THE COLLECTION OF WASTEWATER SERVICE CHARGES ON PROPERTY OUTSIDE THE CITY FOR FISCAL YEAR 2002/2003

Development Agreement between Menlo Equities/Juniper Networks LLC and the City of Sunnyvale for a proposed office campus on a 79.91 acre site located at 1111 Lockheed Martin Way (Staff requests continuance to June 25, 2002)

Robert Paternoster, Community Development Director, presented a brief staff report on the continuance of the item.

Mayor Fowler opened the Public Hearing at 8:09 p.m. and, there being no public comments, closed the Public Hearing.

Motion by Vice Mayor Miller, and seconded by Councilmember Howe, to continue the item to June 25, 2002. The motion carried unanimously.

Reorganization of an Area Designated as De Anza 02-01 (Crawford Drive Annexation)

Trudi Ryan, Planning Officer, presented the staff report. She explained this is the last step for the City in annexation of the 25 properties on Crawford Drive.

Mayor Fowler opened the Public Hearing at 8:10 p.m. and, there being no public comment, closed the Public Hearing.

Motion by Vice Mayor Miller, and seconded by Councilmember Howe, to adopt the Resolution for the reorganization of an area designated as De Anza 02-01 [Crawford Drive Annexation]. The motion carried unanimously.

RESOLUTION NO. 132-02: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE FOR ANNEXATION OF APPROXIMATELY 7 ACRES DESIGNATED AS "DE ANZA 02-01 (CRAWFORD DRIVE ANNEXATION)" PROPERTY LOCATED ON CRAWFORD DRIVE BETWEEN LAS PALMAS PARK AND TALISMAN DRIVE (APN'S 201-33-041 THROUGH -052 AND 201-34-002 THROUGH -014)

Robert Walker, Director of Parks and Recreation, assisted by Jenny Shain, Special Projects Manager, presented the staff report and responded to questions. With a strong collaborative effort by staff, the Historical Heritage Commission and the Sunnyvale Historical Society Museum Association, an acceptable option hopefully has been identified. He read the four staff recommendations and noted two distinctions.

One distinction between staff and the Commission recommendation is the Commission wants Council to approve a 6,000 square foot building. Staff believes it is premature to put a limit or cap on the size of the building. They further think that the building size should be determined by the needs of the Association, neighborhood input, physical space, site constraints and the Society's ability to raise funds.

The second distinction between the Commission and staff is that staff recommends the City funding be contingent on Prop 40 and/or Prop 12 State Bond monies. The Commission recommends the $500,000 of City support is guaranteed by the City.

Councilmembers and staff discussed the recommendations, and staff offered clarifications. The suggestion was made to consider funding in addition to Prop 40 and/or Prop 12.

Pete Contostavlos, Chair of Parks and Recreation Commission, read unapproved minutes from the May 1, 2002 Parks and Recreation Commission meeting. Three suggested changes were to incorporate the language, " working closer with the Historical Society", remove the contingency clause, and add a 6000 square foot building size as a footprint.

Mayor Fowler opened the public hearing at 8:35 p.m.

Laura Babcock, Chairman of the Museum Project Team and member of the Sunnyvale Historical Society Board of Directors, praised the cumulative effort of staff, the Museum Team and the Society working together. She supported the proposed building but is comfortable with working the size out later. She requested that the word "contingent" be dropped from the recommendations.

Jan Camp, President of the Board of Directors for the Sunnyvale Historical Society and Museum Association, supports the proposal that Laura Babcock has made.

Pat Castillo, a member of the public and representative of the Taffe family, read a letter from the Taffe family in support of building the museum.

Michael Malone, a member of the public and owner of Sunnyvale’s oldest home, praised the group that has been maintaining our history. He addressed comments to the Council in support of the project.

Oliver Wesson III, on behalf of Assemblywoman Elaine Alquist, read a letter of support for the Sunnyvale Historical Society’s efforts to establish the Historical Museum.

Suzi Blackman, President and CEO of the Sunnyvale Chamber of Commerce, read a letter on behalf of the Sunnyvale Chamber of Commerce Board of Directors in support of the project.

Tom Mayer, a member of the public, expressed his full support.

Mayor Fowler closed the public hearing at 9 p.m.

Motion by Councilmember Vorreiter, seconded by Vice Mayor Miller to:

• Approve Arboretum Orchard Heritage Park as an appropriate site for a Sunnyvale Historical Museum and incorporate into current Master Planning efforts.

• Direct staff to work closely with the Sunnyvale Historical Society and Museum Association to develop detailed plans and cost estimates for building a new facility at Orchard Heritage Park to serve as a Sunnyvale Historical Museum.

• Limit the City’s contribution to the museum project to $500,000, and to apply for Proposition 40 and or Proposition 12 funds to finance the City’s contribution.

• Replace co-sponsorship with the Sunnyvale Historical Society and Museum Association with a comprehensive agreement with the Society for development, operation and maintenance of a Sunnyvale Historical Museum at Orchard Heritage Park and for all aspects of the Historical Society’s partnership with the City.

A friendly amendment was offered by Councilmember Walker to earmark the dollar amount in the Resource Allocation Plan.  The amendment was acceptable to the maker and second of the motion.

Application to Develop a 79.91 Acre Site Into an R&D/Office Campus, Located at 1111 Lockheed Martin Way in an M-3 (General Industrial) Zoning District (Menlo Equities/Juniper Networks) APN 110-02-068

1. Certification of Final Environmental Impact Report

1. Introduction of an Ordinance to Rezone from M-3 (General Industrial) to M-3/PD (General Industrial/Planned Development) Zoning District

Gerri Caruso, Project Planner, presented the staff report. One additional action being requested is to waive the requirement for the helicopter landing pad. Staff is recommending approval of this project and take the following actions:

• Certify the Environmental Impact Report
• Introduce an ordinance to Rezone the site from M-3 (General Industrial) to M-3/PD (General Industrial/Planned Development) Zoning District
• Approve the Special Development Permit with attached conditions of approval including waiving the helicopter landing pad requirement
• Adopt the Statement of Overriding Considerations and Mitigation Monitoring Program

Discussion followed with reference to traffic impact reports, how trip rates were determined, traffic mitigation, and transportation demand management (TDM).

Yolanda Brown, Chair of the Planning Commission, and David Simons, Vice Chair of the Planning Commission, presented the conclusions from a special meeting held on April 29, 2002. Members of the public were in favor of this project. Several modifications were recommended. The Planning Commission is recommending Alternative One with modifications. The modifications are: develop an incentive program through the TDM to reduce air emissions, modify conditions of approval 20.B. to require 135,000 square foot in Campuses One and Three, the final colors and materials be subject to the approval of the Director of Community Development and to make available the parking and the amenity area to all tenants, should the parcel be subdivided.

Two recommendations from the Planning Commission include: Transportation Mitigation Funds specifically allow for the use of the funds towards the Borregas bike bridges, and for the City Council to reconsider the Mary Avenue extension over 101 and 237. These transportation items would be considered at a later date.

Mayor Fowler opened the public hearing at 9:30 p.m.

Mike Bangs, Director of the Real Estate and Facilities at Juniper Networks, and the applicant, presented an overview of the project and expressed thanks to the City of Sunnyvale and all involved in this collaborative effort.

Scott Kriens, Chairman, CEO of Juniper Networks, provided additional overview with an explanation of Juniper Networks' goal to provide a good quality of life in the workplace, to create a centralized corporate area, and to build partnerships to work together for the good of all involved.

Jane Vaughan, Development Partner, Menlo Equities presented an overhead presentation of the proposed campus overview, the project plans, and the components that serve the community.

Wendy Hoyt, President, The Hoyt Company, provided TDM information about Juniper Networks, stating this is the most aggressive TDM ever proposed to the City of Sunnyvale. She stated that Juniper Networks is a known entity as it relates to TDM and has a proven track record.

Nancy Tivol, CEO, Sunnyvale Community Services and a member of the public, supports this project as the development will benefit the City financially. She supports the concept and design of the campus, and noted the benefit of having a major company headquartered in the City of Sunnyvale.

Neil Struthers, CEO of the Building Trades Council for Santa Clara and San Benito Counties, supports this project as it provides tax revenues, contributes to the community, and provides jobs with Juniper Networks and construction work during the project.

Paul Valentino, Director of Employment Staffing at Juniper Networks and a member of the public, supports the project as Juniper Networks has been a good employer. The location of the headquarters in Sunnyvale will attract quality employees.

Carl Guardino, President and CEO of the Silicon Valley Manufacturing Group, supports this development, as this is a major employer with a promising future. Juniper Networks is committed to congestion relief. The development makes efficient use of our dwindling land supply.

Robert Campbell, employee of Juniper Networks and a member of the public, supports this project, as it will provide a significant tax revenue, which helps fund services to the City of Sunnyvale residents. Juniper Networks is committed to reducing TDM and the location is ideal for growth.

Jim Lightbody, Deputy Director with VTA, supports the project. This location is a key part of expansion of the rail line and the project includes many provisions that are included in the VTA Best Practices Program. VTA will continue to work with Juniper Networks on the bus connections serving this area.

Gerardo Sanchez, employee of Juniper Networks and a member of the public, supports this project as Juniper Networks is community oriented, has good recycling plans and provides a good commute and work environment.

Betty Sanchez, employee of Juniper Networks, member of Board of Directors for Sunnyvale Community Services, and an active community member, supports this project. The Juniper Networks senior staff is passionate about giving back to the community and has supported programs and events benefiting the community. Juniper supports a work/life balance for employees.

Suzi Blackman, President and CEO of the Sunnyvale Chamber of Commerce, supports the plan. Juniper is a valued community asset and a credible corporate citizen.

Beth Siebert, Small Business Owner in the Moffett Park area, expressed concern about the project in the areas of the development pool, the traffic and the 70% FAR.

Thom Mayer, a member of the public, stated there are many reasons to support this project, but there are some reasons not to support it. The reasons not to support are the traffic concerns, sidewalks are needed, need trip reduction, the length of time it takes to commute on light rail, and the need for shuttle buses from downtown Sunnyvale to Moffett Park.

Debbie Owens, Chairman of the Sunnyvale Chamber of Commerce, expressed support of the plan.

Mayor Fowler closed the Public Hearing at 11:15 p.m.

Motion by Councilmember Walker, seconded by Councilmember Howe, to take the following actions:

• Certify the Environmental Impact Report
• Introduce an ordinance to rezone the site from M-3 (General Industrial) to M-3/PD (General Industrial/Planned Development) Zoning District
• Approve the Special Development Permit with attached conditions of approval, with amendments to conditions 17, 18 and 19 that the architectural designs of future buildings will go to the Planning Commission for review, and including waiving the helicopter landing pad requirement.
• Adopt the Statement of Overriding Considerations and Mitigation Monitoring Program

Councilmember Howe requested that the Mayor re-open the Public Hearing to allow the applicant to address the Council. The Public Hearing was reopened at 11:21 p.m.

Jane Vaughan responded to Councilmember Howe's transportation demand management questions regarding the goals for trip reduction and for the Park and Ride plans.

Mayor Fowler closed the public hearing at 11:26 p.m.

A friendly amendment was made by Councilmember Howe to adjust the TDM plan to reach a 25% reduction at the end of development build-out. After input from the Community Development Director on the need to maintain a total of 30% peak hour trip reduction, Councilmember Howe offered: a 20% trip reduction in the first phase with an additional 10% peak hour shift, to 22.5% trip reduction at the end of phase two with and additional 7.5% peak hour reduction, and to 25% reduction at the end of build-out with an additional 5% peak hour shift.

A second friendly amendment to have applicant cooperate in identifying more Park and Ride spaces and maintain at least 25% more available space. TDM penalty schedule comeback to council.

The amendments were accepted.

The motion carried unanimously.

RESOLUTION NO. 133-02 : A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE CERTIFYING THE ENVIRONMENTAL IMPACT REPORT, APPROVING A MITIGATION MONITORING AND REPORTING PROGRAM, ADOPTING A STATEMENT OF OVERRIDING CONSIDERATIONS AND APPROVING SPECIAL DEVELOPMENT PERMIT APPLICATION FOR THE JUNIPER NETWORKS CORPORATE CAMPUS PROJECT

Resolution of Intent to Levy and Collect Assessment for the Downtown Parking Maintenance District FY 2002/2003 and Approve Preliminary Engineers Report

Therese Balbo, Finance Manager, presented the staff report. She clarified that Town and Country is included in the district.

Mayor Fowler opened the Public Hearing and there being no public comment closed the Public Hearing at 11:58 p.m.

Motion by Councilmember Vorreiter, and seconded by Vice Mayor Miller, to take the four actions necessary to give the City the necessary authority to levy and collect the non ad valorem assessments for public parking facilities from property owners within the Maintenance District; adopt a Resolution of Intention; approve the Preliminary Engineer's report; set the July 16, 2002 City Council meeting for the required public hearing; and authorize the mailing of Notice of Proposed Assessment and ballots. The motion carried unanimously.

Consideration of Council Travel Policy Subcommittee Final Report

Councilmember Risch, Chair of the Subcommittee, reported on behalf of the committee. He highlighted the recommendations in the policy.

Councilmember Vorreiter suggested dividing the Council Calendar into three categories: Mayor's activities, all Council activities, and individual Council Member's activities.

Councilmember Risch stated that it is difficult to quantify a standard level of performance and anticipated activity of individual Council Members as they serve on numerous regional and national boards and committees.

Councilmember Vorreiter clarified the policy is consistent with the employee policy of travel dates and alcohol expenses.

Councilmember Risch noted that the Mayor, or his designee, would divide the bill on shared dinners.

Councilmember Risch explained that if travel expenses exceed the combined budgeted amount a budget modification would be required.

Vice Mayor Miller asserted that Steering Committee members do not know the location of their meetings until mid-year which makes it difficult to budget far in advance. She requested that staff prepare a budget estimate regarding Council travel for the Budget Workshop on May 21, 2002. She announced that she will not be attending the second Mayor's Conference but will participate in the All America City presentation in Kansas City in June.

Councilmember Howe clarified the travel policy regarding personal business time. Travel is authorized for one day prior and one day after a meeting.

Mayor Fowler opened the Public Hearing at 12:19 a.m. and there being no comments, closed the Public Hearing.

Vice Mayor Miller moved, and Councilmember Howe seconded, approval of the revised Council Policy. The motion carried unanimously.

Adoption of Ordinance No. 2692-02: Amending Chapter 19.52 and Section 19.82.020 of the Sunnyvale Municipal Code Pertaining to Required Artwork in Private Developments

Motion by Councilmember Walker, seconded by Councilmember Valerio, to adopt the ordinance. The motion carried on a split vote, with Vice Mayor Miller and Councilmember Howe dissenting.

ORDINANCE NO. 2692-02: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE AMENDING CHAPTER 19.52 AND SECTION 19.82.020 OF THE SUNNYVALE MUNICIPAL CODE PERTAINING TO REQUIRED ARTWORK IN PRIVATE DEVELOPMENTS

Pre-Appeal of the Planning Commission Agenda of May 28, 2002 and the Administrative Hearing Agenda of May 29, 2002

There was no action taken.