Lists of Claims and Bills Approved for Payment by the City Manager (#094)

Increased in Authorized Expenditures and Amendment of Existing Contract for Preparation of the Moffett Park Specific Plan (F020568)

Staff Recommendation: Amend the existing contract with RBF Consulting and authorize additional expenditures in the amount of $81,995.

Acceptance of Improvements - Water Pollution Control Plant Administration Building Improvements.

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

RESOLUTION NO. 135-02 ACCEPTING AS COMPLETED WORK FOR WATER POLLUTION CONTROL PLANT ADMINISTRATION BUILDING IMPROVEMENTS (PR-98/16-99 (A)), AUTHORIZING FINAL PAYMENT AND DIRECTING CITY CLERK TO FILE NOTICE OF COMPLETION.

ORDINANCE
NO. 2694-02

Adoption of Ordinance No. 2694-02: Rezone Certain Property Located at 1111 Lockheed Martin Way from M-3 (General Industrial) to M-3/PD (General Industrial/Planned Development) Zoning District.

Staff Recommendation: Adopt Ordinance No. 2694-02.

Fairwood Neighborhood Traffic Study

Jack Witthaus, Transportation and Traffic Manager, presented the staff report. He made a typographical correction to the staff report that under budgeted amount on Page18 is not $1 million but $1.6 million. He reported the traffic studies conducted, comprehensive data update and evaluation, traffic calming analysis, history process, including public outreach efforts to address the neighborhood's cut-through traffic problems as a result of the City of Santa Clara development, key problem causes and alternatives to alleviate the traffic issue. Staff responded to questions from Council relating to the traffic alternatives addressing travel time, cut-through traffic, road closure and its effective communication and educational efforts to the neighborhood, traffic experimentation, a feasibility of a work plan with a calendar of implementation, effect of the Mercado Theater and other companies in the nearby City of Santa Clara, whether or not the City of Santa Clara staff is aware of the proposed road closures and any grant funding available for the traffic light project.

Mayor Fowler presented a funding source proposal to use the Unappropriated Capital Project, Unspent Fiscal Uncertainties Fund and Non-recurring Event Reserve to fund the $1.6 million budget deficit for a traffic light construction. He confirmed with staff whether the identified sources are reasonable and enough to consider installing a traffic light on Wildwood and Lawrence Expressway. City Manager LaSala confirmed that the proposed sources are within the Council's purview and can give direction to staff.

Mayor Fowler opened the Public Hearing at 8:14 p.m.

Melvin Anderson, a member of the public, expressed his concerns about the alternatives presented noting that there are other factors causing the traffic issues. It is not only from the Mercado Theaters but also the offices on Mission College. He was opposed to the traffic light on Wildwood and Lawrence Expressway.

Sue Atkins, a member of the public, stated that the traffic issue on Wildwood has been studied and does not warrant another study. She would like to see the traffic light installed at Wildwood and Lawrence Expressway. The traffic light would alleviate the cut-through on Sandia.

Debbie Owens, Chair of the Board of Directors, City of Sunnyvale Chambers of Commerce, spoke on behalf o the 24 businesses in the affected area. She stated that there are concerns about the temporary road closure's impact to the businesses, therefore, the preference is to have a traffic light on Wildwood and Lawrence Expressway.

Steven Summers, Ramada Hotel Manager, expressed his concerns about the closure of the street since his business is a 24-hour operation. He acknowledged that there are alternative routes but will not be able to control the hotel guests on how to get to the hotel, therefore, the road closure would have a significant effect to his business.

Thom Mayer, a member of the public, shared his experience on the left-hand turns from Wildwood. He opined that this is a huge problem. The correct solution is a reasonable traffic connection from Frontage to Lawrence Expressway to make a safe left turn to 101.

Gloria Bird, a member of the public, expressed her concerns for the wait period at Sandia and Lawrence Expressway. She added that the extra light would divert some of the traffic on Sandia and Blazingwood. She stated that there have been many traffic accidents.

Susan Larson, a member of the public, supported the traffic light on Wildwood and stated that there should be no more traffic studies. She expressed her concerns about the potential hazard of the gates blocking emergency vehicles and that it is only a temporary measure. The opening of the Sunnyvale theater would not deter the public from going to the Mercado because of convenience. There are four lanes on Lawrence Expressway and there have seen several accidents and near misses. A traffic light on Wildwood would alleviate this traffic problem.

Craig Crawford, a member of the public, supported the traffic signal alternative as a valid, long-term and safety solution. He urged the Council to approve the traffic light alternative.

Jim Cole, a member of the public, thanked the Council and staff. He stated that he attended the Fairwood Community meeting and supported the traffic light.

Michael Jingst, past President of the Lakewood Neighborhood Association, supported the traffic light signal and noted that it would be another signal light but it is worth having it for safety purposes.

Andreas Papaleous, a member of the public, expressed his concerns that an additional traffic light would encourage more traffic to cut through Sunnyvale instead of going through Santa Clara. He asked what is the likelihood for VTA and CalTrans approving an additional traffic light since, in his opinion, an additional traffic light on Wildwood and Lawrence Expressway would be disastrous.

Frank Solis, a member of the public, supported the additional traffic light.

Frank Smooth, a member of the public, stated that he was puzzled why people would use Wildwood instead of going toward Santa Clara. He suggested education might be helpful. He did not support the additional traffic light as it will neither alleviate nor stop the traffic but rather it would be wise to push the traffic toward Santa Clara.

Leah Crawford, a member of the public, asked whether the traffic study considered the speed of the cars making a U-turn on Lawrence Expressway and stated that it is time have a traffic light and enough of the study.

Theresa Journa, a member of the public, supported the traffic light and asked how much has been spent on the traffic study and how much it would cost to do the road closure. She suggested using the money towards the traffic light on Wildwood and Lawrence Expressway.

Tom Freeman, a member of the public, supported the traffic light. He acknowledged the high cost for its installation but thinks it is worth it.

Jim Lane, a member of the public, stated that he has seen the traffic impacts, speed and accidents and wholeheartedly supports the traffic light.

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

Robert Walker, Parks & Recreation Director, presented the budget proposal in response to Council’s request during the budget process. John Lawrence, Leisure Services Manager, presented the staff report. He provided a summary of the study, bid process leading up to the recommendation to award the operation of the pool to California Sports Center, fee structure process, use and program schedules in partnership with Fremont Unified School District and the city’s position and partnership with group’s providing services without duplication of services to the community. Staff responded to questions from the Council regarding the city subsidy estimated to be over 20 years, the proposed budget, other potential sources of fees, how the fees were determined, and whether the rate structure and fees are comparable. Discussion also touched on the use of the pool relative to the proposed rate structure and fees, possible pool management by the city, services/programs to be provided, and whether the city would have the final decision regarding fee structures, profit margin of the contractor, mechanics of the program and fee determination, changes or review, communication tools to the public, and monitoring of services relative to other services provided by the city pools.

Mayor Fowler reported that the received a letter from the Parks & Recreation stating that the staff report fairly represented the recommendation of the Commission.

Mayor Fowler opened Public Hearing at 10:13 PM.

Holly Lofgren, Chair of the Friends of Fremont Pool, thanked the Council and staff for the support of the Fremont Pool. She expressed her concerns on the rate structures and fees and that no senior or youth rate was specified in the contract. She recommended adding "15 meter in summer time" in Attachment A of the swim schedule, add a process for solicitation of the pool use, ask the operator to conduct a first meeting for pool users to discuss the uses, operations and working relationship with the group and to provide an annual pool operating cost. She urged the Council to reject the operator’s proposed pool rate structure and fees and to clarify the use and accessibility of the pool as specified in the proposed contract, to provide an array of services to the degree possible within the context of market based programming, to direct staff to submit all future fee schedules for Council’s approval prior to changing any swim fees in six months and then direct staff to approve all future pool fees administratively consistent with the City’s enterprise philosophy.

Dale O’Rourke, a member of public, urged the Council to follow the original goal of the donors and Friends of the Fremont Pool to provide a wide array of accessibility and to lower the starter fees.

Kathleen Meadows, a member of the public, expressed concerns regarding the market based pricing resulting in a higher rate. The pool should be for the community and not for profit services.

Mayor Fowler called a temporary recess at 11:00 p.m. to continue Items #4 and #5 and reconvened the Public Hearing at 11:10 p.m.

Raymond Pole, a member of the public, expressed his concerns about omission of information in the contract. He thinks this demonstrates a lack of well-deserved recognition of donors and the absence of assurances for the independent groups, such as master swimmers, to participate in the programs.

Mike Jufiur, a member of the public, stated that approving reasonable fees would provide an opportunity to reach more youth and more programs.

Chris Campbell, a member of the public, expressed concerns on the proposed rate structures and fees. He urged the Council to consider the headcount/lower rate than the higher rate/lower headcount fee structure approach. The lower rates would encourage more residents and non-residents to use the pool and with increase use there would be increased revenue.

Martha Branch, a member of the public, provided information on Shoreline Aquatics, Mountain View Masters and Fremont Pool. She expressed concerns that the proposed contract did not include masters group and the rates and fees are high. She urged the Council to support Alternative #9.

Chris Moylan, a member of the public, expressed his desire to make the facility affordable and available to the community and reduce the annual operating expenses. He stated that the proposed fees are approximately 50% higher than comparable. He recommended that the operation should not be contracted to for-profit but rather to a non-profit organization where the savings could be added towards the operation to help lower the fees. He added that there are conflicting uses and it is ideal to have the City staff operate the pool for consistency since the City pools are currently operated by the City staff.

Oliver Wesson III, representing Senator Alquist, expressed the Senator’s concerns about the lack of specific support for senior programs and fees.

Lisa Fisher-Colbrie, a member of the public, thanked the staff for their dedication and work put toward the success of the project. She urged the Council to remain involved in the fee process She recommended Alternative #9 and to consider their proposal attached to the staff report and help them realize their dream.

David Peterson, California Sports Center, the proposed operator of the program, provided his background and experience managing youth programs. He addressed the rate structures and fees, programs and use, the operational plan to provide the services and the costs and contract negotiation with the City. He responded to questions from Council regarding the program provisions to masters swim teams and seniors, profit margins, resident and non-resident fees, fee determination and the role of the city relative to the fee structure.

Sue Larson, a member of the public, is grateful for the partnership of the school and the City. She urged the Council to lower the fees as higher fees may deter usage of the pools.

Dr. Sheryl Sun, a member of the public, stated that aquatic programs is ideal to the community most especially to seniors. She noted that seniors on fixed income would have difficulty paying the proposed fees. She urged that City staff to operate the pool as it would be for the best interest of the community as opposed to contracting the operation to for-profit organization.

Greg Ferry, a member of the public, stated that it is inappropriate for a for-profit organization to operate the pool and thinks that his donation would have a tax effect on his pool donation. He stated that the proposed rate is high and should be lowered.

George Hamma, a member of the public, expressed his concern that the operator would not have similar goals and attention in providing quality aquatic programs supporting the youth and true interest to the community.

Ron Swegles, provided census income data relative to the proposed rate and noted the data demonstrates that it would be difficult to attract Sunnyvale residents to use the pool due to the high fee structures.

Cindy Farmer, a member of the public, expressed concerns about the proposed rate structure and commented that the ultimate benefactor of the pool is the contractor and not the residents.

Sue Miller, a member of the public, expressed concerns about his lack of experience in operating 50-meter pool and. The pool would be very profitable to the contractor and therefore urged the Council to direct staff to operate the pool instead of contracting it out.

Ruth Rowe, a member of the public, thinks that the non-resident fee is too high.

Steve O’Neil, a member of the public, asked whether staff will review the profitability of the operator. He suggested that the Council review the pool operation at least in the next two years.

City Attorney Armento responded to the questions posed by Council regarding amending the contract to address some of the issues expressed by the public and the Council. The final document will reflect the Council's direction to staff.

Russ Rogers, a member of the public, stated that the cost is about the same, therefore why contract the operation to a for-profit organization. He was unable to see the justification.

Yolanda Spirou, a member of the public, asked why the City cannot operate the pool since the proposed contractor does not have the expertise in running a 50-meter pool

Vice Mayor Miller read a letter from Doug Schaefer, a Sunnyvale resident, who expressed concerns about the cost of non-resident fee and urged to reduce the fee schedule to attract not only Sunnyvale residents but as well as non-residents.

Mayor Fowler closed the Public Hearing at 12:35 a.m.

Motion by Councilmember Walker, and seconded by Councilmember Howe, to approve staff recommendations with modifications -1) Alternative 1 - Authorize the City Manager to enter into the attached agreement with California Sports Center; 2) Alternative 4 - Approve the initial fee schedule in accordance with Attachment B; 3) Alternative 8 - Direct staff to approve all future swim pool fees administratively, consistent with the City's enterprise fund philosophy and associated policies of market-based pricing, including resident/non-resident fees differentials and other subsidies where appropriate; 4) require an annual operational report including fee schedules from the CSC; 5) add language to state "could be 50-meter in summer," in Attachment A, 6) "to be determined" pool fees not specifically listed would be subject to the approval of the Director of Parks & Recreation Department, 7) add a language in the contract that both the City and CSC can mutually agree to modify rates at anytime, 8) define "high school student" as a student attending any schools and a resident of the City of Sunnyvale, and 9) conduct an annual review of existing fees and negotiated fees between the contractor and the users with public testimonies to determine whether the decision is going in the wrong direction. The motion carried on a split vote with Mayor Fowler dissenting.

Downtown Plaza Conceptual Design

Motion by Councilmember Walker, and seconded by Vice Mayor Miller, to continue the Downtown Plaza Conceptual Design to June 4, 2002. The motion carried unanimously.

Exception to Loan Limits of Substantial Rehabilitation Projects Funded with Community Development Block Grant (CDBG) Funds

Motion by Councilmember Walker, and seconded by Vice Mayor Miller, to continue the Exception to Loan Limits to Substantial Rehabilitation Projects Funded with Community Development Block Grant (CDBG) Funds to June 4, 2002. The motion carried unanimously.

At this juncture Mayor Fowler recessed the meeting at 12.45 a.m. and reconvened the meeting at 12:55 a.m.

Mayor Fowler called the session to order at 12:55 a.m.

Annabelle Yurutucu, Housing Officer, presented the staff report outlining the implementation status of the Housing for Public School Employees, City Employees and Childcare Teachers Program. She gave the history of the study issue and enumerated completed tasks with statistics as directed by Council. She presented the guidelines and eligibility criteria for implementation and participation in the Down Payment Assistance component of the HPCC program. She noted the studies and research conducted towards implementation of the down payment program. She responded to questions from Council regarding the recommended criteria, the proposed term limit, the difference between equity share versus a pre-payment penalty as proposed, the maximum household eligibility and any disqualifying events.

Mayor Fowler opened the Public Hearing at 1:18 a.m. and, there being no public comments, closed the Public Hearing at 1:19 a.m.

Motion by Councilmember Vorreiter, and seconded by Councilmember Howe, to approve the eligibility criteria with modification to Criteria #9 that the loan term shall not exceed 30 years. The motion carried unanimously.

Councilmember Howe asked the City Manager to consider the housing mitigation fund as a resource towards increasing the down payment assistance program and asked staff to verify the legality of the proposed equity share.

Mary Bradley, Finance Director, presented the staff report. She provided a brief summary of the bond issuance to finance the construction of two parking facilities at the Sunnyvale Town Center. She noted the release condition of the tax bonds, which was not met and the redemption schedule on June 1, 2002. She noted that negotiation for the sale of the Town Center Mall is in progress and provided the reasons for delaying the redemption date. She responded to question from Council regarding arbitrage restrictions.

Mayor Fowler opened the Public Hearing at 1:24 a.m. and, there being no public comment, closed the Public Hearing at 1:25 a.m.

Motion by Councilmember Howe, and seconded by Councilmember Risch to approve the resolution authorizing execution of the First Supplement to the Fiscal Agent Agreement Relating to Community Facilities District No. 1 Special Tax Bonds, Series 2001. The motion carried unanimously.

RESOLUTION NO. 136-02 AUTHORIZING EXECUTION OF A FIRST SUPPLEMENT TO FISCAL AGENT AGREEMENT, COMMUNITY FACILITIES DISTRICT NO. 1.