The City Council of the City of Sunnyvale adjourned from at 6:30 p.m. Study Session regarding Office of Emergency Services Program Restructuring, 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.

Mayor Miller led the salute to the flag.

SPECIAL ORDER OF THE DAY

Mayor Miller, Ernie Bakin, Director of Public Safety, Dave Falletta, Public Safety Officer, and Kiwanis Club President Bruce Carlson and Kiwanis members Nancy Carlson and Norm and Donna Betts, presented the awards to the winners of the annual Fire Safety Poster Contest. They winners and their school follow:

Councilmember Howe made the following announcements on behalf of the Council:

The City of Sunnyvale is currently recruiting for members of the following Boards and Commissions:

• Arts Commission
• Bicycle and Pedestrian Advisory Committee
• Board of Building Code Appeals
• Child Care Advisory Board
• Heritage Preservation Commission
• Housing & Human Services Commission
• Board of Library Trustees
• Parks and Recreation Commission
• Planning Commission
• Personnel Board

Vice Mayor Risch reported that on May 5th, the City Council met in Closed Session on the topic of Labor Relations. The Council voted that due to uncertainties at the state level and the on-going work being undertaken on the City’s budget to temporarily defer pursuing contract negotiations.

City Manager LaSala requested item 1.D. be pulled and continued to a future date. Vice Mayor Risch moved, and Councilmember Howe seconded, approval of the consent calendar with the exception of 1.D. The motion carried unanimously.

Annabel Yurutucu, Housing Officer, presented the staff report. She reported that each year, the City of Sunnyvale must submit an Action Plan to the U.S. Department of Housing and Urban Development (HUD) in order to receive its entitled funds under the Community Development Block Grant Program. The action plan allocates $3,264,016 in accordance with the Consolidated Plan adopted in 2000. Ms. Yurutucu reviewed the funding recommendations including $2,048,000 for Community Development Block Grant (CDBG) and $1,216,016 for HOME funds.

Councilmember Vorreiter inquired about the Project Sentinel status. Ms. Yurutucu responded Mountain View has approved the project and Palo Alto is scheduled to take action on May 12^th.

Councilmember Walker inquired why staff was not recommending the Emergency Housing Consortium proposal. Ms. Yurutucu responded they had not identified a substantial portion of the funding.

Councilmember Walker asked for clarification on the Cupertino Community Services funding. Ms. Yurutucu responded that all issues have been resolved and they are meeting or exceeding their contract goals.

Mayor Miller opened the Public Hearing at 8:05 p.m.

IrisAnn Nelson, Chair of the Sunnyvale Housing and Human Services Commission, reviewed the Commission’s role in the process and the methodology for awarding funds. She reported the new agencies were funded at 75% of their request.

Jaclyn Fabre, Executive Director of Cupertino Community Services, thanked the Council for their support of the Cupertino-Sunnyvale Rotating Shelter. She further updated the Council on the Vista Village project that opened last week.

William Pickel, of Christian Church Homes, thanked the Council and staff for their support of the Plaza de las Flores affordable senior housing.

Nancy Tivol, Executive Director of Sunnyvale Community Services, expressed gratitude for the increase in funding and thanked the City for their support.

Eve Agowich, Director of Community Relations for Clara-Mateo Alliance, thanked the staff and the Council for their support.

Martin Eichner, of Project Sentinel, thanked the staff and Commission for their support on behalf of the Dispute Resolution Program.

Ann Marquaret, Executive Director of Project Sentinel, thanked the Council for the opportunity to submit an application for Fair Housing Services.

Donna DiMinico, Program Director of the Catholic Charities, thanked the Council and staff for support of the Shared Housing Program.

Georgia Bacil, of Senior Adults Legal Assistance, described the services they provide and requested future funding.

Mayor Miller closed the Public Hearing at 8:26 p.m.

Councilmember Walker moved, and Councilmember Vorreiter seconded, adoption of staff’s funding recommendations of $2,048,000 in CDBG funds, and $1,216,016 in HOME funds (including $438,016 of Program income) for FY 2003/2004. The motion carried unanimously.

Robert Walker, Director of Parks and Recreation, presented the staff report. He stated that staff has consulted with Clara Bianchi and recommends a bronze plaque, recognizing Clara Bianchi’s donation to the City and telling the story of the Biachni Barn, be attached to the exterior of the Barn. Staff also recommends a display of old wooden fruit bins from the Bianchi farm be artistically arranged and permanently fixed outside the entrance to the Barn.

Mayor Miller opened the Public Hearing at 8:30 p.m.

Laura Babcock, of the Sunnyvale Historical Society, expressed support for staff’s recommendations and announced the Barn dedication on May 17th.

Mayor Miller closed the Public Hearing at 8:32 p.m.

Councilmember Walker moved, and Vice Mayor Risch seconded, approval of a traditional City, as well as a Bianchi Barn Recognition Plaque and Display of Bianchi farm fruit bins in accordance with City Policy. The motion carried unanimously.

Robert LaSala, City Manager, presented the staff report. He stated this report is the last in a series of planned special reports that have been presented on the specific budget strategies described by the City Managers 6-Point Plan of Action to the City’s budget crisis. He stated $13.2 million cuts have been identified. In order to fully close the remaining gap of $1.4 million, Council will need to raise additional revenue, or consider additional expenditure reductions. City Manager LaSala reviewed recommended increases to the Fee Schedule, potential new fees and increasing existing taxes or enacting new taxes.

Vice Mayor Risch asked for clarification regarding business license fees. City Manager LaSala responded it would be appropriate to use the fees that were suggested and staff will track for full cost recovery.

Vice Mayor Risch inquired if the transfer fee was considered. City Manager LaSala stated it was not, but could be added to the list of potential taxes.

Vice Mayor Risch inquired that as part of Utility Users Tax (UUT), was satellite services considered a potential utility fee. City Manager LaSala responded it would have to be researched to determine if it is appropriate.

Vice Mayor Risch inquired if fees could be charged for internet service providers. City Manager LaSala responded this could be researched further.

Vice Mayor Risch inquired about a general tax measure and companion measure that would dedicate funds. City Manager LaSala responded this will be investigated as part of the analysis.

Vice Mayor Risch inquired if a survey was done on the impact of raising the Transit Occupancy Tax (TOT). City Manager LaSala responded it is a pass through tax that is added on to the bill of the guest. Vice Mayor Risch stated a survey would be helpful to determine the impact.

Vice Mayor Risch inquired if the proposed taxes were progressive or regressive based on income levels. City Manager LaSala responded a committee could be appointed to determine this.

Mayor Miller stated the American Hotel Association, based in Washington D.C., may have TOT information.

Councilmember Vorreiter expressed support of an ad hoc committee to look into some of the proposals in depth. She stated she supports business leaders and citizens, who have an acumen of tax knowledge, to serve on committees.

Mayor Miller opened the Public Hearing at 9:24 p.m.

Arley Marley, of the Executive Board of the Sunnyvale Chamber of Commerce, stated they are reluctant to endorse any of the proposals until they have had a chance to more fully review them. He stated they support the ad hoc committee proposal.

Holly Lofgren, a member of the public, expressed concern about the cuts to the Parks and Recreation Department and would like some of the youth services reinstated. She further expressed concern about the Baylands and City Park budget. She asked for reinstatement of programs 221, 265 and 769.

Werner Gans, a member of the Public, stated the business license tax is too low and should be brought up to Bay Area standards. He further stated he does not support the SMART station land lease, and supports the TOT increase. He further stated it was unfair to charge residents for the repair for sidewalks damaged by City trees. He urged the Council to review the employee compensation package.

Mayor Miller closed the Public Hearing at 9:39 p.m.

Councilmember Valerio moved, and Councilmember Walker seconded, to direct staff to continue research on the following potential new fees and charges:

• Emergency 911 Fee
• Homeowner Sidewalk Repair Fee
• Trench Cut Fee
• Rent for SMaRT Station
• Municipal Utility Infrastructure Fee

Potential new fees and charges will be presented to the City Council by January 1, 2004, for final action and implementation.

Councilmember Fowler offered a friendly amendment to remove the Homeowner Sidewalk Repair Fee. The amendment was not accepted.

Mayor Miller asked for clarification if the motion was for research or implementation of the new fees and charges. Councilmember Valerio responded it was to direct staff to continue the research.

The motion carried with Councilmembers Fowler and Howe dissenting.

Councilmember Valerio moved, and Councilmember Howe seconded, to approve, in concept, changes to the following existing fees and charges, and proposed new fees and charges to be included in the recommended Fee Schedule for FY2003/2004:

• Business License Processing Fee
• Community Planning Fee – General Plan Maintenance
• DVD/Video Rentals at Library
• False Fire Alarm Fee

These revenue enhancements will be considered for final approval by the City Council when it adopts the Fee Schedule for FY2003/2004.

Councilmember Vorreiter offered a friendly amendment that the business license tax fee be fixed at the $27 processing fee and the $17 ongoing fee for renewals. The amendment was accepted.

Councilmember Howe requested the false alarm fee be further reviewed.

Councilmember Fowler offered a friendly amendment to delete the DVD/Video rentals at the Library. The amendment was not accepted.

Councilmember Howe requested that an item be put on the agenda to consider establishing a policy on fee waivers.

Councilmember Fowler requested staff consider sidewalk repairs and sewer laterals in the fee waiver policy.

Mayor Miller clarified that Council is not implementing the fees but approving in concept.

The motion carried unanimously.

Councilmember Valerio moved, and Councilmember Walker seconded, to authorize Council to establish a 17 member ad hoc advisory committee on local tax issues. The committee’s charge is to examine the potential for increasing existing local taxes or establishing new local taxes, to recommend to the City Council a package of increases to existing taxes and/or new taxes by July 1, 2003, and to develop a recommended public information campaign to inform and educate Sunnyvale residents about any proposed increases to existing taxes or new local taxes. It is further recommended that each Council member appoint two committee members, one a representative of a business located in Sunnyvale, and the second a registered voter and Sunnyvale resident. Three Council members would serve on the committee, with the Council selecting the committee chair.

Councilmember Fowler offered a friendly amendment that the two Councilmember appointees could be both either a representative of a business located in Sunnyvale and a registered voter and Sunnyvale resident. The amendment was accepted.

Councilmember Howe suggested that at least 50% of the committee members be Sunnyvale residents, that a date be set for recommendations, and they come back to Council for ratification.

Councilmember Walker volunteered to be a member of a Committee.

It was the consensus of the Council that Councilmembers submit names of recommended committee members to Mayor Miller.

The motion carried unanimously.

Vice Mayor Risch moved, and Councilmember Walker seconded, that we consider, as part of the analysis, implementing the following: a real estate transfer tax, enhanced UUT taxes on satellite services including three components of cable: 1) regular service, 2) pay per view service, and 3) internet service. The motion carried with Councilmembers Howe and Fowler dissenting.

Rich Molina, a member of the public, spoke in support of allowing BMX bikes at the Skatepark.

Councilmember Fowler requested that staff provide a definitive statement of costs associated with DPS training and recruitment and the number of recruits realized by the efforts.  He requested the information be provided prior to the May 20^th Budget Workshop.

Mayor Miller requested budget information on youth sports programs. She solicited participation in the Cities Association annual Bocce Ball tournament to be held on June 12^th at Campo de Bocce in Los Gatos.

There were no comments.

Mayor Miller declared the meeting adjourned at 10:40 p.m.

Respectfully submitted,
Susan Kitchens, City Clerk