The City Council of the City of Sunnyvale adjourned from a 5:45 p.m. Closed Session regarding Pending Litigation: White vs. City, Personnel Matters – Labor Relations: PSOA, and Anticipated Litigation: Town Center Mall, and met in regular session in the City Council Chambers, 456 West Olive Avenue, Sunnyvale, California at 7:30 p.m., with Mayor Miller presiding.

City Attorney Valerie Armento led the salute to the flag.

Vice Mayor Risch made the following announcements on behalf of the Council:

The Sunnyvale Downtown Association has invited City Councilmembers to attend its February 20^th meeting. The purpose of this meeting is to provide an opportunity for businesses located in or near downtown to dialogue with City Councilmembers about issues related to the downtown business community. The meeting will be held on Thursday, February 20^th at the Del Monte Building (100 South Murphy Avenue) from 8:30 a.m. to 10:30 a.m. For more information, contact Peter Bassett, City of Sunnyvale Neighborhood and Community Services Office, at 730-7739, or check the Community Calendar on the City’s web site at www.ci.sunnyvale.ca.us.

Vice Mayor Risch announced that Council met in closed session regarding Pending Litigation: White vs. City, Personnel Matters – Labor Relations: PSOA, and Anticipated Litigation: Town Center Mall. Direction was given but no action was taken.

Councilmember Fowler announced that one of the astronauts of the Columbia, Kalpana Chawala, worshiped at the Sunnyvale Hindu Community Temple. He stated that the Temple has created a Scholarship Fund in memory of Kalpana Chawla. For more information or to make a donation, call 734-4554.

Councilmember Vorreiter paid tribute to the seven astronauts, Michale Anderson, David Brown, Kalpana Chawla, Laurel Clark, Rick Husband, William McCool and Ilan Ramon, lost on the space shuttle Columbia.

Mayor Miller announced there will be a Redevelopment Agency meeting immediately following the Council meeting.

Mayor Miller announced the State of the City will be held on Tuesday, March 4^th at 6:00 p.m. in Council Chambers.

Santa Clara Valley Water District Director, Richard Santos, presented a report on Water District activities in Sunnyvale for 2002. He stated the Environmental Advisory Committee will meet on February 10^th at 6:30 p.m. He asked Council for direction on what areas they would like designated for the funds. Mayor Miller asked staff to contact the District regarding funding opportunities for the Bay Trail.

Councilmember Howe requested item 1.A. be pulled from the Consent Calendar and considered separately. Vice Mayor Risch moved, and Councilmember Howe seconded, approval of the Consent Calendar with the exception of 1.A. The motion carried unanimously.

Councilmember Howe moved, and Vice Mayor Risch seconded, to approve the minutes of January 28, 2003 as amended. The motion carried unanimously.

Susan Kitchens, City Clerk, presented the staff report. She stated the extended Fall Recruitment was conducted from December 18, 2002 through January 24, 2003.

The Council voted on the appointments as follows:

ARTS COMMISSION (1 vacancy – term expires 2006)

  Monica Dragonowski-Davis was declared appointed to the Arts Commission for a term expiring in 2006.

HERITAGE PRESERVATION COMMMISSION (1 vacancy – term expires 2004)

Dawn Hopkins was declared appointed to the Heritage Preservation Commission for a term expiring in 2004.

HOUSING AND HUMAN SERVICES COMMISSION (1 vacancy – term expires 2005)

Marvin Rose, Director of Public Works, presented the staff report. He stated staff received direction from Council on July 23, 2002, to enter into negotiations with Devcon Construction Incorporated for the construction of the Downtown Plaza. Staff has been working with Devcon over the last six months to develop a final cost estimate, but have not been able to reach a consensus on the agreed maximum cost. Director Rose stated staff is working with Amphion, the Plaza design consultant, to refine the estimates and identify what will be possible to construct within the available budget. Director Rose stated other options that may be considered include putting the project out to competitive bid, construction of the project in phases, or temporary improvements could be installed until such time as the ultimate project can be constructed. He further stated that Amphion identified three additional options for construction which were: temporary installation of turf with decomposed granite walkways, include all improvements except those in the vicinity of the look-out area, downgrade some paving material, and defer terrace paving and arbor structure.

Councilmember Howe inquired about existing problems to the parking structure. He further inquired if Proposition 40 funds were in jeopardy by not moving forward or if the revenues from the industrial park have fallen short given the economy. Director Rose responded there were drainage and water proofing issues with the underground parking structure. He stated he would have the funding answers when they returned to Council to review the Capital Projects Budget at the end of February.

Councilmember Vorreiter expressed concern with lumping this project in with the entire capital project budget. Director Rose responded that some portions of the funding are committed to this project and some are discretionary funds to be allocated by Council.

Mayor Miller made inquires if the project was priced by phases, timeframes for RFP, cost fluctuation, and the decision of not going to outside bid.

Director Rose responded the staff has not asked for the recent reduced project phase costs, but it is an option depending on the direction from Council. He further stated that the decision to negotiate was contingent on coming to an agreement on the price. He stated they are $1 million apart for construction costs and will come back with more specific information at the end of February.

Vice Mayor Risch asked for clarification in timelines and expressed concern with the project not moving forward. He further asked for clarification of the dedicated funds. Director Rose responded that staff is asking for Council not to deal with this project by itself because of the budget constraints. He stated $1 million is dedicated to the project as part of the condition of approval for the Mozart Plaza, and $2 million dedicated to downtown parks.

Mayor Miller opened the Public Hearing at 8:15 p.m.

Joe Antuzzi, Chairman of the Downtown Association read a letter from the Sunnyvale Downtown Association to the Council urging Council to find a solution that allows the plaza to be completed to where it can be used as it was intended. He stated the Association is concerned with the fate of the plaza and urged Council to give the project high priority and to move forward on at least a limited phase of construction to remove the fencing.

City Manager LaSala advised Council that staff has been working on a report on phases for the construction of the plaza as well as a project budget, and suggested Council defer a decision until the end of February.

Suzi Blackman, CEO and President of the Sunnyvale Chamber of Commerce, urged the Council to make a compromise to move forward with the plaza. She particularly noted concern with the fences and stated she is looking for a commitment that Council will move the project forward.

The Council entered into a discussion regarding options for a minimalist project, a phased approach, diverting monies from other funds to the downtown plaza, and timelines.

James Freitas, Mozart Development, expressed concern about the plaza view from Mozart buildings and urged Council to move forward with the project.

Mayor Miller closed the Public Hearing at 8:50 p.m.

Director Rose noted that the operating costs are not currently budgeted for and would range between $40-$120 thousand.

Councilmember Walker asked staff to look for ways to accelerate the bid process.

Vice Mayor Risch asked Director Rose to provide Council with a report of milestone dates for the project’s progression.

Robert Paternoster, Director of Community Development, presented the staff report. He stated that the City entered into a contract with Heller Manus architects to examine three alternative approaches to meeting the long range space needs of City Hall and related uses on the Civic Center campus. Clark Manus, of Heller Manus, reviewed the alternatives and presented the results of the study. Director Paternoster noted that all of the alternatives required a substantial financial commitment. He stated staff believes further action on this item should be deferred.

Mayor Miller asked if the full amount of funds have been expended that were allocated for this work. Director Paternoster responded there is $112 thousand that was not spent because it was funding for the second phase which has not been undertaken. He stated the money will be returned to the General Fund. He clarified that all the money that was put into contract has been spent.

Councilmember Fowler inquired if the option to reinforce the Mozart building was considered instead of constructing a new building. Mr. Manus responded they did consider this and stated the biggest issue was the loads which would have to be strategically located for the Library.

Mayor Miller opened the Public Hearing at 9:36 p.m. and, there be no public comments, closed the Public Hearing.

Councilmember Howe moved, and Councilmember Fowler seconded, to defer further work on the Civic Center Master Plan and direct staff to maintain the integrity of existing Civic Center facilities for the indefinite future. The motion carried unanimously.

Annabel Yurutucu, Housing Officer, presented the staff report. Ms. Yurutucu stated the City conducted a fair housing assessment. The study utilized data on possible discrimination in mortgage lending, data on perceptions of discrimination, and socioeconomic comparisons from the 2000 census. She noted several local agencies concerned with fair housing were contacted including Mid-Peninsula Citizens for Fair Housing. Ms. Yurutucu reviewed the actions and strategies the City plans to pursue over the next five years to further fair housing choice and opportunities.

Mayor Miller opened the Public Hearing at 9:45 p.m.

IrisAnn Nelson, Chair of the Housing and Human Services Commission, stated the Commission supported the amendment and urged Council to adopt the plan.

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

Councilmember Vorreiter moved, and Vice Mayor Risch seconded, to approve the update of the analysis of impediments to fair housing choice and amend the Consolidated Plan 2000-2005. The motion carried unanimously.

City Attorney Armento presented the staff report.

Vice Mayor Risch relayed the homebuilders concern with the April 1 effective date of the ordinance and stated they wanted the September 15, 2003 date removed. Councilmember Howe responded that six months is usually adequate time for application approval.

Mayor Miller opened the Public Hearing 10:00 at p.m. and, there being no public comments, closed the Public Hearing.

Director Paternoster stated it was staff’s recommendation to change the purchase unit income limits from 80% -120% AMI to 70% - 120% AMI.

Councilmember Howe moved, and Councilmember Vorreiter seconded, to change the purchase unit income limit from 80% - 120%AMI to 70%-120% AMI.

Councilmember Howe moved, and Councilmember Vorreiter seconded, to adopt Ordinance No. 2717-03, with the ownership qualifications revised to 70%-120% AMI. The motion carried with Mayor Miller and Vice Mayor Risch dissenting.

There were no comments.

Councilmember Fowler announced he has received a National League of Cities appointment to the Community and Regional Development Panel of the Municipalities and Transition Program.

Councilmember Fowler recommended the monthly budget discussions be placed on a Council agenda. It was the consensus of the Council to start Council meetings earlier so that budget discussions could be publicly heard and to submit questions to staff before the Council meeting. Mayor Miller will work with the City Manager on the Council agenda.

Councilmember Fowler asked if Council materials could be delivered to Council two days earlier. City Manager LaSala responded he would explore that option.

Vice Mayor Risch reported Sunset Magazine published an article on Murphy Street.

Mayor Miller requested a status report on the new law regarding speed limits in mobile home parks.

City Manager LaSala announced that a field tour throughout Sunnyvale to review issues that were raised in the Community Development Strategy will take place on Saturday, February 8^th beginning at 1:00 p.m.

At 10:20 p.m., on a motion by Mayor Miller, and seconded by Vice Mayor Risch, the meeting was adjourned in recognition and respect for the life and contributions of the Columbia astronauts who perished on Saturday, January 31 in a re-entry disaster: Michael Anderson, David Brown, Kalpana Chawla, Laurel Clark, Rick Husband, William McCool and Ilan Ramon. Mayor Miller directed that a letter be sent from the City of Sunnyvale to the family representatives bearing the signatures of the City Council members.

After adjourning the meeting of the Redevelopment Agency, Mayor Miller declared the regular meeting of the City Council adjourned at 10:35 p.m.

Respectfully submitted,
Susan Kitchens, City Clerk