Mayor Frederik M. Fowler
Vice Mayor Julia Miller
Councilmember Tim Risch
Councilmember Pat Vorreiter
Councilmember John Howe

New 3-D Model of Downtown

List of Claims and Bills Approved for Payment by the City Manager (Nos. 109, 110,111)

Staff Recommendation: Accept the list of bills.

FY 2002/2003 - Transportation Development Act Article 3 Funding Allocations for Pedestrian and Bicycle Projects and Budget Modification No. 6

Response to the 2001-2002 Santa Clara County Civil Grand Jury Examination of Audits and Financial Reports

Staff Recommendation: Approve the City’s response to the 2001-2002 Santa Clara County Civil Grand Jury Examination of Audits and Financial Reports (Attachment A) and authorize the Mayor to sign and transmit the City’s response to the presiding judge of the Superior Court.

Acceptance of Improvements - City Hall Boiler and Multi-Zone Air Handling Unit Replacement

RESOLUTION NO. 171-02: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE ACCEPTING AS COMPLETED WORK FOR CITY HALL BOILER AND MULTI-ZONE AIR HANDLING UNIT REPLACEMENT (PR-95-13(B)), AUTHORIZING FINAL PAYMENT AND DIRECTING CITY CLERK TO FILE NOTICE OF COMPLETION

Acceptance of Improvements - Roofing Replacement at the Water Pollution Control Plant and Baylands Park

RESOLUTION NO. 172-02: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE ACCEPTING AS COMPLETED WORK FOR ROOFING REPLACEMENT AT THE WATER POLLUTION CONTROL PLANT AND BAYLANDS PARK (PR-98/17-00(A)), AUTHORIZING FINAL PAYMENT AND DIRECTING CITY CLERK TO FILE NOTICE OF COMPLETION

Acceptance of Improvements - Wolfe/Evelyn Pump Station Water Main Replacement

RESOLUTION
NO. 174-02
RTC 02-360

Funding Request for Acquisition of 183 Acalanes Drive by Emergency Housing Consortium, TEFRA Hearing, and Budget Modification No. 7

Annabel Yurutucu, Housing Officer, presented the staff report. The proposed project is the acquisition of a 24-unit rental housing complex at 183 Acalanes Drive. Emergency Housing Consortium will provide affordable housing to families at or below 30% of median income. She detailed the loan structure of the proposed financing of the acquisition. She spoke briefly about the Emergency Housing Consortium and their current projects and the benefits to the City.

The discussion among Council touched on the availability of affordable housing in Sunnyvale and the financing aspects of the plan.

Ms. Yurutucu went into detail and explained that the only portion that does not have interest is the bridge loan of $350,000. The restrictions for affordable housing status remain on the property for 40 years.

Vice Mayor Miller noted that there are no additional housing units but more units will be available for persons who are at the 30% of median income level.

Councilmember Risch affirmed that the only out of pocket for the City is the 5% interest not charged on the bridge loan of $350,000, which would amount to approximately $21,000.

In response to Mayor Fowler, Ms. Yurutucu explained that the City would not carry a financial liability because the loan will be secured by the property and the Emergency Housing Consortium will service the bond.

Mayor Fowler was given assurances that the current tenants would not be displaced. Transition for all the units to affordable housing is about 18 months.

Irisann Nelson, Chair of the Housing and Human Services Commission, reported unanimous support for the purchase. In addition to offering affordable housing, the Consortium offers many services to their residents. It is a wise investment in Sunnyvale residents.

Mayor Fowler opened the Public Hearing at 8:54 p.m.

Barry Del Buono and Poncho Guevara, representing the Emergency Housing Consortium, directed comments to the Council. They noted they have partnered with the City for many years in helping the homeless citizens. They help residents to live productive lives by offering affordable housing and then working with the residents to become productive, contributing citizens. The average stay for the transition from affordable housing to market rate housing is about five years. They announced that the second phase of the Family Living Center will open tomorrow at 10:00 a.m., at the Agnew Center in the City of Santa Clara, and invited the Council and public to come and tour the center.

Mayor Fowler closed the Public Hearing at 9:06 p.m.

Councilmember moved, and Councilmember Risch seconded, to approve Budget Modification No. 7 for $915,000 for loans from the Housing Sub fund for purchase of the project, approve a loan of $400,000 of CDBG funds and a loan of $185,000 of HOME funds, and approve the resolution certifying that a TEFRA hearing was held regarding the issuance by the City, of City of Sunnyvale Housing Revenue Bonds, 2002 not to exceed $3,000,000 for the purchase of 183 Acalanes Drive.

RESOLUTION NO. 174-02: A RESOLUTION OF THE CITY COUNCIL OF SUNNYVALE INITIATING THE ISSUANCE OF NOT TO EXCEED $3,000,000 PRINCIPAL AMOUNT OF CITY OF SUNNYVALE HOUSING REVENUE BONDS, 2002, RATIFYING A PUBLIC HEARING WITH RESPECT THERETO AND APPROVING A FORM OF NOTICE THEREOF

RESOLUTION
NO. 175-02
ORDINANCE
RTC 02-359

Related Applications for a 4-acre Site Located at 1002 W. Washington Avenue (Mary Manor Shopping Center)

1. General Plan Amendment to Change From Neighborhood Shopping to Low-Medium Density Residential
2. Rezoning From C-1 (Neighborhood Commercial) to C-1/PD (Neighborhood Commercial/Planned Development) and R-1.7/PD (Low-Medium Density Residential)
3. Special Development Permit to Allow 31 Single-Family Homes and a Commercial Building
4. Tentative Map to Subdivide the Property Into 31 Single-Family Home Lots, One Common Lot and One Commercial Lot

Trudi Ryan, Planning Officer, assisted by Diana O'Dell, Associate Planner, presented the staff report. The item is for related applications for a four-acre site at Washington and Mary Avenue. The applicant and property owner would like to construct 31 single-family homes and a small pedestrian-oriented shopping center of approximately 12,000 square feet. In order to accomplish this development, the following actions are required: a General Plan Amendment for the residential portion, rezoning the residential portion to an appropriate residential zoning district, rezoning of the remaining commercial portion to include the planned development combining district, approval of a special development permit for the site and architectural design, both the residential and commercial portions, and a tentative map to create the new residential and commercial parcels. She explained the differences and similarities between the designated zoning district standards of R-1.7 and R-2. The essential difference is the required lot size and the method used for computing the floor area ratio for the entire site and individual units. The R-1.7 does not require the below market units but looks for smaller homes on a smaller lot.

The Council entered into a lengthy discussion that reached into the areas of deviations from the design standards and setbacks for garages, lot sizes, floor area ratios (FAR's), differences in the two zoning standards, the range of affordability for the housing units and fencing requirements.

Ms. Ryan clarified that the Planning Commission's recommendation was to eliminate Condition of Approval number 6 in its entirety.

Dave Simons, Planning Commission Chair, reported that the Planning Commission had conducted two Study Session on this item and considered input that was gleaned from the public. Setbacks, placement of lots and access to Mary Avenue and opportunities for single-family ownership were discussed when considering the deviations. The Commission voted to recommend approval of Planning Commission alternative number 3 with modifications on a split vote of 5 to 2. The modification was to eliminate Condition of Approval number 6.

Vice Mayor Miller qualified that alternative number 3, that the Planning Commission approved, is the same as City Council alternative number 2.

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

Scot Ward, speaking for Classic Communities, Inc., stated that this project is a model for creative, well-balanced in-fill for Sunnyvale. The Mary Manor center will be transformed into a vital mixed use community featuring an appropriately sized neighborhood retail center serving a residential community of 31 homes. He urged the Council to accept the Planning Commission's recommendation to approve the project. He noted that the neighborhood has been involved and there is a high level of acceptability for lower residential density. The applicant does not agree with the staff analyses of the below market rate (BMR) units that would be available. They need a higher number units to support underwriting the BMR program. He asserted that they have struck an appropriate balance for competing conflicting goals for the redevelopment of the property and are confident that they will offer a high quality community that will be an asset to the neighborhood and to the community at large.

Vice Mayor Miller posed the question of whether the applicant could successfully proceed with an R-2 zoning standard.

Mr. Ward responded that he could not make it work with that standard. He would need to build 40 units to support BMR underwriting costs. Homes would sell in the range from the low $400,000s to the high $700,000s. In response to Councilmember Vorreiter he stated that the existing elementary and middle school could accommodate the additional students.

Mayor Fowler clarified that the applicant is proposing the R-1.7 zoning that allows for 31 detached single family homes for sale. If we change the zoning to R-2, which would introduce the element of BMR units, in order to make the project work economically the number of housing would have to go up so you would have to go beyond the R-2 density into an R-3 area. There is some uncertainty with the project at a higher density.

The applicant concurred with the Mayor's assessment.

Irene Macres, a member of the public, stated that she believes it is the best compromise for the site. She submitted an informal petition. She supports the applicant's proposal.

Kevin Jackson, a member of the public, expressed concern about the safety for bicyclists on Mary Avenue due the constriction of the outside lane widths at the intersection of Washington and Mary Avenue.

Todd Lynch, a member of the public, supports the Planning Commission decision. He asserted that higher density would draw opposition from the neighborhood.

Jon Whiteman, a member of the public, supports development of the site.

Pete Contastavlos, supports the mixed-use project.

Yolanda Risch, a member of the public, noted that the applicant's proposal had followed the Planning Commission's direction. She expressed support of the Planning Commission's recommendation.

Irisann Nelson, a member of the public, stated her concerns about the size of the homes on small lots and their affordability. She is also concerned that the decision could set a precedent that circumvents the BMR requirements. She supports the staff's recommendation for R-2 zoning standards.

Thom Mayer, a member of the public, addressed the Council with concerns that ADA standards should be required for streets and sidewalks. He also would like to see a duck-out for the buses.

Ray Johnson, a member of the public, does not support the staff recommendation. He prefers the alternative that has less density.

Nancy Green, a member of the public, stated support for alternative number 2. She looks forward to the completion of the project.

Dave Simons, a member of the public, would like a traffic study to be conducted. He advocated planning for future bike lane access for the Mary Avenue side.

Audra Siu, a member of the public, expressed concern regarding the five-foot setback requirements for garages. She would like for the fences to be designed to assure privacy for the existing homes.

Mayor Fowler closed the Public Hearing at 11:21 p.m.

Motion by Vice Mayor Miller, and seconded by Councilmember Howe, to adopt the Mitigated Negative Declaration and introduce a Resolution to change 2.87 acres from Neighborhood Shopping to Low-Medium Density Residential. The motion carried unanimously.

Motion by Vice Mayor Miller, and seconded by Councilmember Vorreiter to introduce an Ordinance to Rezone a 2.87 acre portion of 1002 Washington Avenue from C-1 to R-1.7/PD. The motion carried unanimously.

Motion by Vice Mayor Miller, and seconded by Councilmember Vorreiter, to approve the Special Development Permit, delete Condition of Approval number 6 and approve the Tentative Map (Planning Commission Recommendation).

Mayor Fowler offered a friendly amendment to add a condition that sidewalks be at least 48" wide, with no obstructions, and to have curb cuts at intersections. The amendment was accepted.

Vice Mayor Miller offered a friendly amendment that the applicant is to work with the neighborhood association on the height and design of the fence, with oversight by the Community Development Director.

The motion carried unanimously.

RESOLUTION No. 175-02:  A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE ADOPTING AN AMENDMENT TO THE 1972 GENERAL PLAN OF THE CITY OF SUNNYVALE TO CHANGE 2.87 ACRES OF THE SUBJECT SITE FROM "NEIGHBORHOOD BUSINESS" TO "LOW-MEDIUM DENSITY RESIDENTIAL" DESIGNATION FOR PROPERTY LOCATED AT 1002 WASHINGTON AVENUE.

At this juncture, Mayor Fowler recessed the meeting at 11:40 p.m. and then reconvened the meeting at 11:55 p.m.

ORDINANCE
MOTION
RTC 02-354

Related Applications for 985 Bellomo Avenue

1. Rezone from R-3 (Medium Density Residential) to R-3/PD (Medium Density Residential/ Planned Development)
2. Special Development Permit to Allow Four Town Homes
3. Tentative Map to Subdivide One Lot Into Four Townhouse Lots and One Common Lot

Diana O'Dell, Associate Planner, reported that the surrounding properties are developed with duplexes, townhomes or single-family homes. The PD Combining District provides flexibility in designing a project that is consistent with the emerging character of the immediate neighborhood and in allowing townhouse-style ownership housing. Due to the variety of housing styles and types, staff finds that the proposed zoning is appropriate for the site. She noted that the main concerns from the surrounding neighborhood are traffic related. There is one significant pine tree located at the front of the site. The applicant is proposing removal of this tree, as the construction trucks could cause compaction of the soil that would affect the tree’s health.

Vice Mayor Miller expressed her dismay that a mature tree should be removed to accommodate the developer. She requested that, in the future, staff not recommend removal of mature trees. That should not be a general practice.

In response to Vice Mayor Miller, Ms. O'Dell noted that the Planning Commission had recommended alternative.

Councilmember Risch clarified that an arborist report had been prepared and the staff had considered many factors before making their recommendation regarding the tree removal.

Dave Simons, Planning Commission Chair, reported that the Planning Commission had discussed the tree removal and determined that overhead power lines and probable root damage to the tree during construction warranted removal of the tree. The Planning Commission had approved alternative number 1 by a unanimous vote.

Mayor Fowler opened the Public Hearing at 12:09 a.m.

Wanda Chan, speaking on behalf of the applicant, stated that the project is consistent with the neighborhood. She availed herself to questions.

Anthea Ip, a member of the public, contended that the traffic in the area is excessive and fast moving. If the application is approved she would like stop signs installed at the intersection of Bellomo and Maria. She urged Council to deny the application.

John Kim, President of the Maria Bell Homeowners Association, expressed concerns about the impact of the development. He asked Council not to approve the project.

Vice Mayor Miller read a letter of opposition signed by a number of the residents of the Bellomo Avenue area.

Ms. Chan, representing the applicant, stated that the current zoning allows for more units than what the applicant is requesting. She requested approval of the project.

Mayor Fowler closed the Public Hearing at 12:24 a.m.

Motion by Councilmember Vorreiter, seconded by Councilmember Risch, to introduce an ordinance to Rezone the site from R-3 to R-3/PD. The motion carried unanimously.

Motion by Councilmember Vorreiter, seconded by Councilmember Risch, to adopt the Negative Declaration, and approve the Special Development Permit and Tentative Map with conditions.

Vice Mayor Miller offered a friendly amendment to consider placing a fence around the pine tree during construction for its preservation. The amendment was not accepted.

Vice Mayor Miller moved to amend the motion to require fencing around the pine tree during construction for its preservation. The motion died for lack of a second.

The original motion carried with Vice Mayor Miller dissenting.

MOTION
RTC 02-362

Transportation Strategic Program Stakeholders Outreach Plan

Jack Witthaus, Transportation and Traffic Manager, presented the staff report. He outlined the outreach program that will be conducted over the next four months. This is a Study Issue to update the long-range transportation system needs and to identify a funding plan to fulfill those needs. The outreach will feature two series of public workshops through which staff will gather public input to develop a recommendation on the long-range transportation strategy to the City. He requested that Council designate one Councilmember to participate. They also recommend that a member of the Planning Commission also be designated.

Vice Mayor Miller would like to work with staff to identify additional individuals for inclusion to Stakeholders Group.

Mayor Fowler suggested that the Planning Commission oversee the outreach process and work with the staff to assure that it is comprehensive.

Mayor Fowler opened the Public Hearing at 12:42 a.m. and, there being no public comment, closed the Public Hearing.

Councilmember Vorreiter moved, and Vice Mayor Miller seconded, to support the recommendation that we endorse the Stakeholders Outreach Plan and appoint Councilmember Risch to serve on a review panel for final outreach materials, and concur with staff that a single member of the Planning Commission participate on the review panel.

Mayor Fowler offered a friendly amendment that, in order to offer a more comprehensive outreach to the citizens, the Planning Commission be part of the overall process. The amendment was not accepted.

Councilmember Howe offered a friendly amendment to include a member of the Bicycle and Pedestrian Committee on the panel.

The motion carried with Councilmember Howe dissenting.

June 2002 External Customer Satisfaction Survey Preliminary Results

Charles Schwabe, Deputy City Manager, presented the staff report. He was assisted by Ed Pinelle, Managing Director for the Gelfond Group. They presented the preliminary results and key findings from the resident satisfaction survey that was conducted in June 2002. He gave a PowerPoint presentation that displayed information on emerging trends that can be identified when comparing results from the resident satisfaction surveys that have been conducted in 2000, 2001, and 2002. In conclusion, they discussed the approach City staff will take in conducting focus group meetings to analyze survey results and findings in more detail.

Vice Mayor Miller noted that the City had mailed out 7,500 surveys and approximately 800 responses had been returned. She stated that the information gleaned from the responses is valid and questioned the need for additional focus group meetings.

In response to Councilmember Howe, Mr. Pinelle, stated that, to get a statistically reliable information, follow-up phone calls were made to encourage citizens to return surveys from various demographic areas. No specific geographic area was targeted for specific questions.

Mayor Fowler opened the Public Hearing at 1:22 a.m. and, there being no public comment, closed the Public Hearing.

Vice Mayor Miller moved to not conduct focus group meetings, to wait to conduct another survey when staff thinks it is appropriate and consider the information valid. The motion died for lack of a second.

Vice Mayor Miller reaffirmed that she will work with staff to identify more community groups and individuals to be included in the Stakeholders Group and requested that staff distribute a list of the Stakeholders before the first meeting is held.

Pre-Appeal of Planning Commission Hearing of September 23, 2002 and Administrative Hearing of September 25, 2002

No action was taken.