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. 099)

Staff Recommendation: Approve the list of bills.

Department of Public Safety Funding Adjustments for Homeland Security, Hiring/Training Public Safety Officers and Budget Modification No. 36

FY 2002/2003 Local Law Enforcement Block Grant (LLEBG) Sharing Agreement with County of Santa Clara

Staff Recommendation: Authorize the City Manager to forward a written concurrence to the County Executive approving the proposed sharing agreement.

Authorization to Increase Expenditures Under an Existing Contract for Asphaltic Materials (No. F0206-81)

Staff Recommendation: Authorize additional expenditures in an amount not to exceed $30,000 under an existing contract with Raisch Products, making a total contract not-to-exceed amount of $295,000.

Authorization to Increase Expenditures Under an Existing Contract for the Overhaul of a Sedimentation Basin at the Water Pollution Control Plant (No. F0206-80)

Staff Recommendation: Authorize the requested modifications of an existing contract with the D.W. Nicholson Corporation and increase the authorized expenditures under this contract from $49,625 to $52,125 (tax included).

Award of Bid No. F0205-69 for the Installation of Bike Lanes on Caribbean Drive and Arques Avenue

Staff Recommendation: Award a contract in the amount of $106,286 for the Caribbean Drive and Arques Avenue Bicycle Lane Project in substantially the same format as the attached draft contract; and approve a contingency in the amount of $15,944.

Award of Contract for Power Generation Facility Engine Overhaul (No. F0206-82)

Award of Contract for Radio Communication System Maintenance (No. F0206-84)

Authorization for Department of Employment Development to Contract with Santa Clara County District Attorney’s Office for $268,850 to Support Skills Enhancement Training for Non-Custodial Parents

Staff Recommendation: Authorize the completion of a contract with Santa Clara County District Attorney’s Office in the amount of $268,850 for the period of January 1, 2002 through December 31, 2002 to assist 50 non-custodial parents to gain skills through training activities.

Authorization for the Department of Employment Development to Enter into Agreement with Santa Clara County Social Services Agency for Career Advancement Services for CalWORKS Clients

Staff Recommendation: Approve the continuation of services by NOVA under agreement with Santa Clara County CalWORKs as summarized in this report. In addition, staff recommends that the City Manager be authorized to negotiate an amendment to contract #CWR-02-010 with the County for $215,000 to extend services for FY 2002-2003.

EAP/Worklife Program Contract Renewal

Staff Recommendation: Renew the Managed Health Network, Inc. (MHN) contract to continue providing the EAP and Work/Life services with a 9% rate increase.

RTC 02-264

Life Insurance Contract Renewal

Staff Recommendation: Renew the Life/AD and D insurance contract with AIG Life Insurance Company for two years with no rate increase.

Authorization for Department of Employment Development to Apply for Homeless Veterans Reintegration Grant in the Amount of $250,000

Staff Recommendation: Authorize the submission of a grant proposal in the amount of $250,000 to continue NOVA's Homeless Veterans Reintegration Project through June 30, 2003. Additionally, extend the agreement with the current provider of services, Vietnam Veterans of California, through December 31, 2002 if the proposal is approved, pending a complete procurement process.

RESOLUTION
NO. 148-02
RTC 02-245

Acceptance of Improvements – Curbside Processing Facility

RESOLUTION NO. 148-02: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE ACCEPTING AS COMPLETED WORK FOR CURBSIDE PROCESSING FACILITY (PR-96/16-98), AUTHORIZING FINAL PAYMENT AND DIRECTING CITY CLERK TO FILE NOTICE OF COMPLETION

RESOLUTION
NO. 149-02
RTC 02-253

Grant Funding Application to Convert Five New Diesel Refuse Trucks to Compressed Natural Gas Engines

Staff Recommendation: Adopt the resolution.

RESOLUTION NO. 149-02: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE AUTHORIZING THE SUBMITTAL OF AN APPLICATION FOR THE PURCHASE OF ALTERNATIVE FUEL SOLID WASTE COLLECTION TRUCKS, AND AUTHORIZING THE IMPLEMENTATION OF THE PROJECT IF THE APPLICATION IS APPROVED BY THE TRANSPORTATION FUND FOR CLEAN AIR

RTC 02-272

Co-Sponsorship Application for Leadership Sunnyvale

Staff Recommendation: Authorize Sunnyvale Leadership Development Institute (SLDI) full co-sponsorship status with the City of Sunnyvale with all rights and benefits thereof.

RTC 02-266

Proposed Program Outcome Statements, Program Outcome Measures, and Weighting for Restructured Programs Managed by the Finance Department

Mary Bradley, Finance Director, presented the staff report. She noted that the Finance Department is currently responsible for six programs and has been restructuring the programs to the City's outcome management budget format. There will be seven programs on the restructured basis.

Mayor Fowler would like the outcome measure regarding the annual internal audit plan to have a goal that would correlate to seven programs individually.

Mayor Fowler opened the Public Hearing at 8:04 p.m. and, there being no public comment, closed the Public Hearing.

Vice Mayor Miller moved, and Councilmember Howe, seconded, approval of the proposed program outcome statement, outcome measures, and weighting for the following restructured programs managed by the Finance Department:

• Financial Management and Analysis
• Accounting and Financial Reporting
• Utility Business Management
• Procurement Management
• Budget Management
• Treasury/Cash Management
• Compensation Management

Mayor Fowler offered a friendly amendment to approve the outcome measures with the exception of the measure regarding the annual internal audit plan and directed staff to come back with recommendations to it in relation to the number of programs on July 16, 2002. The amendment was accepted by the maker and the second.

The motion carried unanimously.

Resolution Setting a Public Hearing to Cause Charges for Non-Payment of Utility Services and Non-Payment for the Cost of Abatement of Nuisances to be Placed on the FY 2002/2003 Tax Roll

Staff Recommendation: Adopt a resolution setting a public hearing for the regular meeting of the Sunnyvale City Council on July 23, 2002 at 7:30 p.m.

Adoption of Ordinance No. 2699-02: Award of Taxicab Franchise to USA Express Cab

Staff Recommendation: Adopt the ordinance.

RTC 02-271

Career Action Center Donation of Job Search Library to the Department of Employment Development

Staff Recommendation: Accept the Career Action Center donation of library and program assets and furnishings and equipment valued in excess of $75,000.

Grace Kim, Finance Manager, presented the staff report. In summary, she reported that the total revenue for FY 2002/2003 is approximately $195 million, and total expenditures are approximately $215 million. The budget for operating expenditures is $178 million, the project and equipment budget is $30 million and the debt service totals $7 million. As a result of the Public Hearing that was conducted on June 4, 2002, staff has included four changes from the recommended budget. The changes include $4,000 from Non-Recurring Events Reserve to Cupertino Community Services - Rotating Shelter Program, $10,000 from Fiscal Uncertainties to Junior Achievement, $1.6 million from Unappropriated Capital Project funds to the Lawrence Expressway/Wildwood Avenue Intersection Project, and $5,000 from Non-Recurring Events Reserve to Council Travel Budget.

Vice Mayor Miller clarified that the Junior Achievement allocation is to be a matched grant.

Upon a consensus of the Council, Mayor Fowler re-opened the Public Hearing at 8:15 p.m.

Bob Balmanno, Chapter Chair of the Regular-Part Time SEIU Employees and part-time employee at the Sunnyvale Library, stated that the City's guidelines for ethics aspires to fair treatment and respect for City employees and this is the fundamental issue. He thinks that contracting services would be contrary to these principles.

Carmen Iniquez, Union Organizer for Local 1877, urged the Council to work with the unions and make the custodial jobs permanent positions.

Jill Jackson, Secretary with SEA, advocated making the custodial services permanent, benefited positions.

Stephen Fisk, President of the Sunnyvale Police Officers Association, asserted that he thinks that contracting the custodial services is not in the best interest of the City.

Ben Holgate, representing Local 715, stated that the cost allocated in the budget for custodial services is inadequate. He stated that their primary concern is to fill the positions internally with benefited, full-time employees.

Councilmember Walker clarified that the money allocated in the budget is a placeholder and the Council is not taking action tonight to award a contract for the services.

In response to Mayor Fowler's query, Parks and Recreation Director Robert Walker reported that the current budget for the janitorial services is $914,977.39.

Holly Lofgren, Friends of Fremont Pool, requested funds be budgeted for a separate youth rate for recreational swimming, for single-use, drop-in usage at the new Fremont Pool. She also requested that Council consider a youth and senior lap swim rate in the future.

Responding to Mayor Fowler, Public Safety Director Bakin explained that funding is being reduced in the Emergency Preparedness Program due to additional training in the Sunnyvale Neighbors Actively Prepare (SNAP) program and an expanded volunteer program. The department plans to meet the outcome measures in the coming year.

Mayor Fowler closed the Public Hearing at 8:46 p.m.

Councilmember Walker moved, and Councilmember Risch seconded, to approve the recommended schedule of fees, rates and charges. The motion carried unanimously.

Councilmember Walker moved, and Councilmember Risch seconded, the appropriations limitation. The motion carried unanimously.

Council member Walker moved and Councilmember Howe seconded, to adopt the budget as recommended with the following changes:

a. Appropriate funding in the amount of $4,000 for Cupertino Community Services - Rotating Shelter Program

c. Appropriate funding in the amount of $1,600,000 for the Lawrence Expressway/Wildwood Avenue Intersection project.

d. Appropriate funding in the amount of $5,000 for Council travel.

Vice Mayor Miller offered an amendment to make the Junior Achievement appropriation a matching grant. The amendment was accepted.

Councilmember Howe moved, and Mayor Fowler seconded to amend the motion, to take the amount that is in the ten-year resource allocation, approximately $21,000, and allocate it during this fiscal year for a youth rate at the Fremont Pool.

Councilmember Howe referred to a letter from Senator John Vasconcellos that urged the City Council to incorporate a youth rate at the Fremont Pool. He noted that an RTC went to Council in June 2000 regarding a youth services study and survey. The survey indicated that 95% of the households felt that there should be more opportunities for youth activities in the city. Since then a number of youth programs have been cut back. It is critical to give youth an opportunity to participate in this type of program. The purpose of the amendment is to take $21,000 that is within the budget and when 80% of it is consumed that staff come back to Council. At that time he will recommend either a two ($2) or three ($3) dollar drop-in rate at the pool.

Vice Mayor Miller asked if this would cover seniors as well as youth.

Councilmember Howe responded that although he thinks that a senior rate is laudable, he is not recommending it at this time.

Councilmember Vorreiter stated that the Fremont Pool is not an appropriate facility for drop-in youth swim time. The intended uses for the pool are adult lap swimmers, master swimmers and potentially some competitive swim meets. She acknowledged that we have good swim services throughout the city to meet the youth's swimming needs. She added that the Fremont Pool does not offer swimming lessons because it is not shallow enough.

Councilmember Walker would like to assess the rates after six months and then determine if a subsidy is warranted. He echoed Councilmember Vorreiter's comments regarding other pools that are available and offer youth rates in the City. If we subsidize the rates we will not have a true evaluation of the market rates.

Councilmember Risch stated the fundamental issue is fairness and the enterprise philosophy. There are no special rates offered at the tennis center or the golf course.

Councilmember Valerio agreed with the previous speakers and stated that the City should allow the market to drive the rate. The rates are not unreasonable given the cost of the project. He would like to assess the rate structure in six months.

Councilmember Howe asserted that the pool was built at the high school where the youth are. He asked if there were youth rates at other facilities or programs.

Director Walker responded that there are no reduced rates at the golf course. There are some programs that offer a youth rate and all of the other pools in the City offer youth rates.

Vice Mayor Miller recollected a reduced green fee at the golf course before certain hours. She expressed support for the amendment as she thinks it is important that everyone have an opportunity to enjoy the new pool. She thinks that the rates are extraordinarily high and hopefully they will be come down in six months.

Mayor Fowler stated that the rate schedule is not complete without youth rates. There are a lot of youth in the City who could benefit from a reduced rate at the Fremont Pool.

The motion to amend failed with Councilmembers Valerio, Vorreiter, Walker and Risch dissenting.

Vice Mayor Miller clarified that $110,000 had been allocated in the budget for the Mary Avenue Bicycle Pedestrian Footbridge. A joint application by the City of Sunnyvale and the City of Cupertino for Transportation Funds for Clean Air (TFCA) funds would provide additional money to the City of Cupertino for the project.

Mayor Fowler offered a friendly amendment that the Council set aside an additional $130,000 towards the Mary Avenue Bicycle Pedestrian Footbridge project if the grant money is not awarded. The amendment was not accepted.

Mayor Fowler moved, and Vice Mayor Miller seconded, to increase the allocation for the Mary Avenue Bicycle Pedestrian Footbridge project to $240,000 with the $130,000 difference coming from the unexpended portion of the 2001/2002 fiscal uncertainties fund to be paid contingent on not receiving additional grant money.

Councilmember Risch stated that the City has agreed to pay for their portion of the direct benefits from the project. He thinks that the community that undertakes a project should take responsibility for their projects.

Mayor Fowler believes that additional funding is justified, as there are considerable benefits to the City of Sunnyvale.

Councilmember Valerio agrees that there are considerable benefits but that, as the lead agency, the City of Cupertino should shoulder the financial responsibility.

Councilmember Walker stated that the City should pay its fair share of $110,000 but not go beyond that.

The motion failed with Councilmembers Valerio, Vorreiter, Walker and Risch dissenting.

Mayor Fowler moved, and Councilmember Howe seconded, to freeze the custodial budget at the 2001/2002 level pending resolution of the various issues involving the custodial service personnel.

Mayor Fowler expressed concern that the allocation is too low and considers this to be the appropriate and responsible thing to do.

Councilmember Vorreiter does not think it is prudent to fix the allocation at an uncertain amount. A budget modification will be needed but the amount is unknown at this time.

Councilmember Walker stated he agrees with Councilmember Vorreiter and supports waiting to make a decision until staff returns to the Council with more information on the issues.

Councilmember Risch agrees that more information is needed. He is open to listen to different ideas that will be brought forward.

Councilmember Valerio advocates waiting until staff has prepared an analysis comparing services to make a more responsible decision.

Vice Mayor Miller stated that she adamantly opposes contracting services out.

The motion failed with Councilmembers Valerio, Vorreiter, Walker and Risch dissenting.

The main motion carried unanimously.

RESOLUTION NO. 151-02: A RESOLUTION OF THE CITY OF SUNNYVALE ADOPTING THE BUDGET OF THE CITY OF SUNNYVALE FOR THE FISCAL YEAR JULY 1, 2002 TO JUNE 30, 2003

RESOLUTION NO. 152-02: A RESOLUTION OF THE CITY OF SUNNYVALE FIXING AND ESTABLISHING FEES, RATES, AND CHARGES FOR GOODS AND SERVICES PROVIDED BY THE CITY OF SUNNYVALE

RESOLUTION NO. 153-02: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2002-2003 PURSUANT TO ARTICLE XIII-B OF THE CALIFORNIA CONSTITUTION

Second Lease Amendment – Adair School Site (Senior Center) and Budget Modification No. 1

Robert Walker, Parks and Recreation Director presented a brief staff report.

In response to Councilmember Walker's query regarding the increased rate, in light of a higher vacancy rate in the valley, City Manager LaSala explained that this is a special use facility and the rates are comparable to other special use facilities.

Mayor Fowler opened the Public Hearing at 9:21 p.m. and, there being no public comments, closed the Public Hearing.

Motion by Councilmember Walker, and seconded by Vice Mayor Miller to authorize the City Manager to execute a second lease agreement with the Sunnyvale School District to lease 24,528 square feet of classroom space at the Adair Site for one year. The motion carried unanimously.

Apply For and Accept Grapes of Wrath LSTA and CA Council for Humanities (CCH) Grant and Budget Modification No. 2

Victoria Johnson, Director of Libraries, presented the staff report. She explained that the Council approves all funds that are obtained through grants.

Mayor Fowler opened the Public Hearing at 9:24 p.m. and, there being no public comments, closed the Public Hearing.

RTC 02-218

Robert Walker, Director of Parks and Recreation, presented the staff report. He recounted that Ms. Bianchi has offered to donate a barn that was constructed in 1918, and used for many decades by her family's orchard business. She has also offered to donate $350,000 to be used for the relocation, maintenance and repair of the structure. He assured Council that this would not pose a threat to the land being allocated for the museum. There is land set aside in the master plan.

Mayor Fowler opened the Public Hearing at 9:29 p.m.

Jim Quillinan, Attorney representing Ms. Bianchi, availed himself to questions. He stated that this donation is being made in memory of Ms. Bianchi's family.

Laura Babcock, representing the Sunnyvale Historical Museum and the Heritage Museum, strongly encouraged the Council to accept the donation. She opined that this would complement the museum and Heritage Park site.

Mayor Fowler closed the Public Hearing at 9:31 p.m.

Councilmember Vorreiter moved, and Vice Mayor Miller seconded, to accept Ms. Clara Bianchi’s donation of a 1918 redwood barn for Heritage Orchard Park, as well as the donation of $350,000 to be used for the relocation, maintenance and repair of that structure. The motion carried unanimously.

RTC 02-248

Marilyn Crane, Information Technology Services Manager, presented the staff report. She stated that AT&T Broadband had submitted the required Federal Communications Commission (FCC) forms for the annual rate adjustments to be implemented on July 1, 2002. Based on consultant and staff review, discussions with AT&T Broadband, and action allowable under Federal regulations, staff has determined that the rates are reasonable and consistent with FCC regulations. She noted that there are no planned programming changes and the rates reflect a 4.5% increase to subscribers.

Mayor Fowler opened the Public Hearing at 9:37 p.m.

Barry Boole, a member of the public, stated that he is unhappy with the current cable service.

Werner Gans, a member of the public, expressed frustration with the current rates. He noted that the increased rates exceed the inflation rate.

Eddie Garcia, Director of Government Affairs for AT&T, explained there are different components, in addition to the inflation rate, that justify the rate increase. He noted that to remain competitive with the satellite market they are not going up to maximum permitted rate. He stated that customers have received a 30-day notice of the increase. He directed citizens who have quality issues to contact their customer service representatives at 1-800-945-2288.

Lance Bonham, a member of the public, encouraged the Council to work with AT&T to improve the quality of service. He stated that, in his opinion, it is comparatively substandard.

Shawn Hernandez, Director of Information Technology, reported that the performance standards are addressed in the Franchise Agreement. The current agreement expires in 2005.

Mayor Fowler closed the Public Hearing at 9:48 p.m.

Motion by Councilmember Walker, and seconded by Councilmember Risch, to determine that the Maximum Permitted Rate for the Basic Service Tier and associated equipment and installation charges are reasonable and calculated according to FCC regulations. Staff is directed to issue a Rate Order to that effect which allows the rates to be implemented on July 1, 2002. The 2002 rate (excluding franchise fee) is $0.53 more than the 2001 rate.

Proposed Transfer of Control of the Current Cable Television Franchise From AT&T Corp. to AT&T Comcast Corporation

Marilyn Crane, Information Technology Services Manager, presented the staff report. She stated that the City received an application from AT&T Broadband requesting consent for Transfer of Control from AT&T Corporation to AT&T Comcast Corporation. She explained that there are several outstanding non-compliance issues that have been identified that will be resolved within 90 days via a letter of agreement.

Mayor Fowler opened the Public Hearing at 9:54 p.m.

Eddie Garcia, Director of Government Affairs for AT&T, assured the Council that AT&T has agreed to resolve the non-compliance issues with the City within 90 days.

Mayor Fowler closed the Public Hearing at 9:55 p.m.

Motion by Vice Mayor Miller, and seconded by Councilmember Walker to approve the Resolution consenting, with conditions, to the Transfer of Control of the cable television franchise to AT&T Comcast Corporation. The motion carried unanimously.

RESOLUTION NO. 154-02: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE APPROVING TRANSFER OF CONTROL OF THE CABLE TELEVISION FRANCHISE TO AT&T COMCAST

Privacy Issues Between Residential and Non-Residential Developments and Zoning Districts (Work Plan)

Robert Paternoster, Community Development Director, presented the staff report. The report includes a work plan for a Study Issue for Privacy Issues Between Residential and Non-Residential Developments and Zoning Districts. The issues directly related to the study are: line of sight from windows of non-residential development, use of exterior mounted security cameras, height of masonry walls along property lines, and security lighting levels. The notification procedure for the adjacent residential will be examined, as well as considering increasing setbacks, regulating security cameras, property line screen walls, and the hours of operation. He anticipates coming to Council with a report on October 8, 2002.

Mayor Fowler opened the Public Hearing at 9:58 p.m.

Barry Boole, a member of the public, displayed pictures supporting his allegation that the aesthetics and privacy of the residential area are negatively impacted by the adjoining businesses. He offered several suggestions to mitigate the privacy issue including allowing a higher wall and landscaping.

Councilmember Walker asserted that a higher fence is allowed with a use permit. He further noted that noise levels and garbage pick-up times are currently regulated and the neighbors should contact the City's Neighborhood Preservation Code Enforcement Division if they perceive that a business is in violation.

Vice Mayor Miller commented that there are fees associated with applying for a use permit for a higher fence and requested that this be part of the study. She also commented that residents should be notified prior to a non-residential demolition project.

Councilmember Vorreiter suggested that as a good neighbor practice, the existing businesses consider mitigating the privacy issue with landscaping.

Councilmember Walker expressed concern over the placement of trash bins too close to an adjoining property.

Mayor Fowler closed the Public Hearing at 10:27 p.m.

Councilmember Howe moved, and Councilmember Walker seconded, to approve the Work Plan as detailed in the staff report. Councilmember Walker reaffirmed that the issue regarding the hours of operation is included in the study. The motion carried unanimously.

Councilmember Howe sponsored a Study Issue to review the policy regarding the negative impacts of construction on residential areas; location of trash bins in industrial zones and notification of non-residential demolition projects.

Mayor Fowler requested that staff investigate and report on which auto dealerships are not in compliance with the City's policy on Public Address systems.

Appeal of Planning Commission Hearing of June 10 and Administrative Hearing of June 12, 2002

No action was taken.

Pre-appeal of Planning Commission Hearing of July 8 and Administrative Hearing of July 10, 2002

No action was taken.