The City Council of the City of Sunnyvale met in special session in the City Council Chambers, 456 West Olive Avenue, Sunnyvale, California at 5:00 p.m., with Mayor Miller presiding.

Mayor Miller led the salute to the flag.

Pete Gonda, Management Analyst, Finance, presented the staff report. He reported that on January 10, 2003, the Governor submitted the FY 2003/2004 State Budget to the Legislature, proposing significant cuts and funding shifts to reduce the budget deficit that would severely affect cities and counties. The Governor has proposed to eliminate, beginning in February 2003, the 67.5% Vehicle License Fee (VLF) backfill currently paid to local governments. If elimination of the VLF backfill is enacted into law, the Sunnyvale General Fund would lose approximately $2.5 million in FY 2002/2003 and approximately $5 million in FY 2003/2004. He stated the revenue loss in FY 2003/2004 would represent approximately 5.4% of the City’s total General Fund Operating Budget. He further stated staff has been working in conjunction with the League of California Cities, and local governments across the state are mobilizing quickly to oppose any attempts by the State to eliminate this critical source of revenue.

Mayor Miller reported that Senator Torlakson and Speaker Wesson are introducing a similar bill and inquired if this had any impact on the wording of the City’s resolution. Mr. Gonda replied he was unaware of any legislation.

Mayor Miller opened the Public Hearing at 5:10 p.m. and, there being no public comments, closed the Public Hearing.

Vice Mayor Risch moved, and Councilmember Walker seconded, to approve the Resolution urging the California Legislature to reject the Governor’s proposed VLF takeaway. The motion carried unanimously.

RESOLUTION NO. 102-03 RESOLUTION OF THE COUNCIL OF THE CITY OF SUNNYVALE URGING THE CALIFORNIA LEGISLATURE TO REJECT THE GOVERNOR'S PROPOSED SHIFT OF LOCAL VEHICLE LICENSE FEE REVENUES AND TO HONOR THE 1998 COMMITMENT TO RESTORE THE VEHICLE LICENSE FEE

Councilmember Howe stated he would like the City's resolution sent to the State Legislators, the Governor, and the Peninsula Division of the California League of Cities.

There were no comments.

Councilmember Vorreiter congratulated Councilmember Howe on his appointment by the Cities Association to be the alternate delegate to LAFCO.

Mayor Miller announced there will not be a Council Meeting on January 21^st due to the Martin Luther King Holiday.

City Manager Robert LaSala reported the area representatives for the League of California Cities are scheduling district meetings and the legislators will be calling on the Mayor and Vice Mayor to represent Sunnyvale at these meetings. He further stated there will be other efforts devised that will require short notice and a quick response from City Councils. They are endeavoring to mobilize elected officials to take an advocacy position in defense of cities to provide core services.

Councilmember Howe moved, and Councilmember Walker seconded, to declare the meeting adjourned at 5:16 p.m.

Respectfully submitted,
Donna Biles, Deputy City Clerk