Vice Mayor Risch led the salute to the flag.

Two Sunnyvale licensed family child care providers, Marilyn Pestano and Liat Taiger-Duerr, were recently awarded the Gold Seal Award from the City of Sunnyvale’s Child Care Services Office and Choices for Children, a resource and referral agency in San Jose.

The California Space Authority in Sacramento will be sponsoring a "Space Week" event from March 24 through 27 in Washington, D.C., to increase awareness of California’s unique and extensive role in our national space program and to promote space enterprise throughout the state.

The Caltrain Joint Powers Board will hold a Public Hearing at its' offices, located in San Carlos, at 1250 San Carlos Avenue on Thursday, April 3, 2003, at 10:00 a.m. The purpose of the meeting is to discuss the proposed fare structure changes and a proposal to move Caltrain to a proof-of-payment system.

Councilmember Howe reported that Council had met in closed session regarding labor negotiations with PSOA and that direction was given but no action was taken.

City Manager LaSala reviewed the process for examining the in-lieu fees and inter-fund transfers. He identified some cost savings to the general fund. He stated that the staff will track the savings that have been accrued against the budget gap as we go forward with discussions. He then turned the presentation over to the Finance Director and Deputy City Manager.

Mary Bradley, Finance Director, assisted by Chuck Schwabe, Deputy City Manager, presented the second in a planned series of reports to deal with the budget crisis. The report addresses points 2 and 4 of the City Manager's 6-Point Plan. They detailed the structure for internal rental rates and in-lieu fees. Director Bradley identified key findings in rental rate savings and also noted a savings to the general fund in the area of in-lieu fees. She stated that the in-lieu fees would be examined thoroughly in 2003/2004 to identify areas that could further affect the general fund.

The Council entered into a discussion that included clarification of reductions in the fleet services, internal operating costs, utility charges, and contracted services. Staff clarified that costs born by the general fund are being paid back to the general fund.

Vice Mayor Risch opened the Public Hearing at 7:09 p.m. and, there being no public comment, closed the Public Hearing.

Motion by Councilmember Valerio, and seconded by Councilmember Walker to adopt the City Manager's recommendations.

Councilmember Howe offered a friendly amendment that staff will make reasonable steps to notify the public of the canceled meetings and schedule changes, and the additional items will be discussed at future scheduled meetings. 6-0

The motion carried unanimously.

At this juncture City Manager LaSala distributed a memo outlining two scheduling options for Council to consider regarding presentation, review and feedback on the service level reductions and revenue recommendations.

In response to Councilmember Howe, City Manager LaSala responded that it is impossible to accelerate the schedule because the material will not be prepared sooner than April 16.

The Council discussed their personal schedules and which of the two scheduling options they preferred.

Councilmember Fowler moved, and Councilmember Walker seconded, to approve the following schedule as outlined in Option 2:

The motion carried unanimously.

City Manager LaSala then recommended the agenda for the presentations of the proposed service level reductions.

Motion by Councilmember Walker, and seconded by Councilmember Valerio, to approve the agenda as follows:

The motion carried with Councilmember Fowler dissenting.

Councilmembers Howe and Fowler requested that item 1.A. be pulled for discussion.

Motion by Councilmember Howe, and seconded by Councilmember Walker to approve the Consent Calendar with the exception of item 1.A. The motion carried unanimously.

Councilmember Howe queried the City Manager regarding the procedure that was followed for calling the March 20, 2003 special meeting. He directed that staff strictly adhere to the Charter provisions for calling special meetings.

Councilmember Howe moved and Councilmember Fowler seconded approval of the minutes from the March 18 meeting as amended and the March 20 minutes as submitted. The motion carried unanimously.

ORDINANCE NO. 2718-03: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE AMENDING THE PRECISE ZONING PLAN, ZONING DISTRICTS MAP, TO REZONE CERTAIN PROPERTY LOCATED AT 1150-1152 MORSE AND 1139 KARLSTAD FROM M-S/R-3/ITR/PD (INDUSTRIAL/SERVICE/MEDIUM-HIGH DENSITY RESIDENTIAL/INDUSTRIAL) DISTRICT TO R-4/PD HIGH-DENSITY RESIDENTIAL/PLANNED DEVELOPMENT) DISTRICT

ORDINANCE NO. 2719-03: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE ADDING SECTION 9.62.075 TO THE SUNNYVALE MUNICIPAL CODE TO REGULATE SKATE PARKS ON PUBLIC PROPERTY

Kelly Diekmann, Project Planner, presented a comprehensive staff report. He detailed the project's layout, surrounding uses, architecture, and the degree of deviations requested and the ability to satisfy the intent of the underlying zoning district. Trudi Ryan, Planning Officer assisted in responding to questions posed by Council Members.

Robert Paternoster, Community Development Director, stated that the choice of development style is appropriate for the site. He noted that there are livability issues with large homes on small lots and also affordability concerns. Additional concerns relate to below market rate (BMR) requirements and limited private useable open space. The applicant is asking for an entitlement for additional units, which would not be considered affordable housing. The staff is recommending that 10% be required for BMR housing.

Council discussed various aspects of the project that touched on the density of the project, parking requirements, floor area ratios (FARs), set-back requirements, numerous deviations that the applicant has proposed, lot size, BMR requirements and building plans. Staff clarified that accessory units are allowed in an R-2 zoning district with 5000 square foot lots.

Vice Mayor Risch opened the Public Hearing at 8:02 p.m.

Dave Sanders, applicant and treasurer of the Sunnyvale Community Christian Church, stated that economic hardships have impacted the church's ability to service their debt. He urged Council to approve the project as proposed by the Riding Group.

Tom Quaglia, representing The Riding Group, directed comments to the Council associated with the technical aspects of the design of the project, floor area ratios and other zoning implications. He stated that he had used the R 1.7 zoning designation as a guideline when he designed the project and it was not his intention to overbuild the site. The biggest impact of the Planning Commission's decision is the decreased size of available living space from 63% to 55% FAR. He stated that the integrity of the design would be maintained if a redesign is required. He requested a deviation on the setback requirements to allow more flexibility in the design of the buildings.

Amy Hewett, a member of the public, expressed support for the project.

Pastor Stan Freitas, Sunnyvale Community Christian Church, stated that the church is experiencing financial struggles. He noted numerous social programs the church offers the community and urged Council to approve the project.

Nancy Hallmark, a member of the public, spoke in opposition of the project.

Dr. Terry Irish, Sunnyvale Church of the Nazarene Pastor, supported the project.

Peter Gremett, a member of the public, supported the Riding Group design.

Thomas Sweeney, a member of the public, spoke in support of the project.

Jan Petersen, a member of the public, spoke in opposition to the project.

Tom Quaglia, representing the applicant, pointed out that the larger garages and two-car apron on the driveway offer ample parking area. He offered assurances that a Homeowners  Association will ensure that the garages will be used for parking.

Vice Mayor Risch closed the Public Hearing at 8:44 p.m.

Motion by Councilmember Walker, and seconded by Councilmember Fowler, to adopt the Mitigated Negative Declaration and adopt a Resolution to change 3.01 acres from Low Density Residential to Low-Medium Density Residential. The motion carried unanimously.

RESOLUTION NO. 108-03: 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 FROM "LOW DENSITY RESIDENTIAL" TO "LOW- MEDIUM DENSITY RESIDENTIAL" DESIGNATION FOR PROPERTY LOCATED AT 397 SOUTH MARY AVENUE

Councilmember Walker moved, and Councilmember Vorreiter seconded to introduce an Ordinance to Rezone from R-0 to R-2/P. The motion carried with Councilmembers Howe and Fowler dissenting.

ORDINANCE NO. 2720: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE AMENDING THE PRECISE ZONING PLAN, ZONING DISTRICTS MAP, TO REZONE CERTAIN PROPERTY LOCATED AT 397 SOUTH MARY AVENUE FROM R-0 (LOW-DENSITY RESIDENTIAL) DISTRICT TO R-2/PD (LOW-MEDIUM DENSITY RESIDENTIAL/PLANNED DEVELOPMENT) DISTRICT

Motion by Councilmember Walker, and seconded by Councilmember Howe, to return the Special Development Permit and Tentative Map with attached conditions to staff, to work with the applicant, and then bring it back to the Planning Commission and then to the Council for consideration. Council approved the staff recommended FARs. The motion carried unanimously.

Mark Bowers, Solid Waste Program Manager, presented the staff report. He stated that hazardous electronic waste (e-waste) disposal has become an increasingly high profile and costly problem for consumers and local governments. The most problematic of these materials, Cathode Ray Tubes (CRTs) are found in most computer monitors and televisions. The City Council adopted a resolution making the City a member of the Product Stewardship Institute, adopting the Institute’s Principles of Product Stewardship and supporting legislation requiring producer responsibility programs for CRTs. Absent State legislation, staff is recommending that the Council direct staff to ask the Santa Clara County Recycling and Waste Reduction Commission to develop a county-wide E-Waste Take-Back model ordinance.

In response to Councilmember Walker, Mr. Bowers responded that Sunnyvale is the first municipality in Santa Clara County to request an ordinance.

Vice Mayor Risch expressed concerns that internet sales would have a negative impact on local vendors since there is currently no State or Federal legislation regulating e-waste disposal.

Vice Mayor Risch opened the Public Hearing at 8:58 p.m. and, there being no public comments, closed the Public Hearing.

Motion by Councilmember Walker, and seconded by Councilmember Howe, to direct staff to ask the Santa Clara County Recycling and Waste Reduction Commission to develop a model E-Waste Take-Back ordinance for adoption by the County and the fifteen cities in the county. The motion carried unanimously.

Terilyn Anderson, Senior Management Analyst, presented the staff report. She noted that the report details the action that each Board and Commission took regarding the referred measures and objectives. Staff has recommended final wording for each measure and objective. Of the nine measures and objectives that were referred to the Boards and Commissions for review, staff is recommending that five measures and one objective remain unchanged from the recommended wording proposed to the Council on November 26, 2002, and is proposing revised wording for one objective and two measures.

Councilmember Walker asserted that he does not want to change the wording of the measure "Maintain diverse mix of business and industry". It would be difficult to quantify the impact with the recommended wording "encourage a diverse mix of business and industry".

Charles Schwabe, Deputy City Manager, stated that the Community Development Strategy Goals suggested that we could do better in measuring and meeting our objectives and these refinements will help to accomplish this.

Motion by Councilmember Walker, and seconded by Councilmember Howe to approve the staff recommended changes to the seven measures and two objectives referred on November 26, 2002 to Boards and Commissions for feedback as described in this report and listed in Attachment A, with the exception that there be no changes to the measure "Maintain diverse mix of business and industry"; approve the FY 00/01 base year results for all measures outlined in Attachment B, and evaluate Board/Commission suggestions on non-referred measures as listed in Attachment D in three to five years when sufficient data is available to evaluate the usefulness of the current measures. The motion carried unanimously.

There were no comments.

Councilmember Howe thanked the Council for accommodating his schedule to allow his participation in the Special Council meeting regarding the budget issues on May 2, 2003.

City Manager LaSala clarified the schedule for when Council will review the increased and new revenues.

At 9:15 p.m., Vice Mayor Risch adjourned the meeting in recognition and respect for our men and women in the Armed Services who have sacrificed their lives for our country in the conflict with Iraq.

Respectfully submitted:
Susan Kitchens, City Clerk