The City Council of the City of Sunnyvale adjourned from a 5:30 p.m. Closed Session regarding Personnel Matters – Labor Relations, PSOA, SEA, SEIU and COA, Management and Confidential Employees, and met in regular session in the City Council Chambers, 456 West Olive Avenue, Sunnyvale, California at 6:35 p.m., with Mayor Miller presiding.

Mayor Miller led the salute to the flag.

Mayor Miller offered an apology for comments made during a Closed Session on June 10, 2003.

Suzi Blackman, President and CEO of the Sunnyvale Chamber of Commerce, announced that on July 9^th, from 5:30 p.m. to 9:00 p.m., they will commence the fourth annual Downtown Summer Music Series kickoff event. The series runs through September 10^th. For more information, visit their web site at www.svcoc.org.

Ben Holgate, a member of the public, requested the Adoption of the FY2003/2004 Budget Public Hearing item be moved up on the agenda.

Melinda Hamilton, President of the Friends of Sunnyvale, announced the petition suit court date is Monday, June 23^rd at 8:45 a.m., at the courthouse in San Jose. For more information, call (408) 732-8839, or visit their web site at www.friendsofsunnyvale.org.

Councilmember Fred Fowler made the following announcements on behalf of the Council:

Sunnyvale neighborhood associations are sponsoring Sunnyvale Prepared – a community emergency preparedness workshop which will include representatives from Sunnyvale’s Department of Public Safety, the American Red Cross, the Sunnyvale School District, and the Santa Clara County Office of Emergency Services. The workshop will be held on Monday, June 23^rd at 6:30 p.m., at the Columbia Middle School Multipurpose Room located at 739 Morse Avenue. For more information, contact Peter Bassett at 730-7739, or check the Community Calendar on the City’s web site at www.ci.sunnyvale.ca.us.

Mayor Miller announced that Sunnyvale came in second in the annual Santa Clara Cities Association Bocci Ball Tournament. Team members were Vice Mayor Tim Risch, Yolanda Risch, Steve Fisk, President of the Police Officers Association, and Mayor Miller.

Mayor Miller thanked the public for attending the "Coffee with the Mayor" event.

Vice Mayor Risch announced the Council met in closed session regarding personnel matters – labor relations – PSOA, SEA, SEIU and COA employees. No action was taken.

Councilmember Vorreiter requested item 1.A. be pulled 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.

Vice Mayor Risch moved, and Councilmember Howe seconded, approval of the minutes. The motion carried with Councilmember Vorreiter abstaining.

Mayor Miller announced that Public Hearing items three, five and six would not be heard until 7:30 p.m.

The Council voted on the appointments as follows:

ARTS COMMISSION (1 vacancy – term expires 2007)

BICYCLE AND PEDESTRIAN ADVISORY COMMITTEE (1 vacancy – term expires 2004)

BOARD OF BUILDING CODE APPEALS (3 vacancies – terms expire 2004 and 2007)

BOARD OF LIBRARY TRUSTEES (1 vacancy – term expires 2007)

CHILD CARE ADVISORY BOARD (two vacancies – terms end 2004 and 2007)

HERITAGE PRESERVATION COMMISSION (2 vacancies – terms expire 2007)

PARKS AND RECREATION COMISSION (1 vacancy – term expires 2007)

Vice Mayor Risch recused himself from voting on this appointment as one of the applicants is serving on his campaign committee.

PERSONNEL BOARD (2 vacancies – terms expire 2004 and 2007)

No action was taken.

Mayor Miller declared the regular meeting adjourned to the Redevelopment Agency Meeting at 7:04 p.m., and reconvened the regular City Council meeting at 7:30 p.m.

Tim Kirby, Revenue Systems Supervisor, assisted by Mary Bradley, Director of Finance, presented the staff report. He stated the City provides wastewater service to various properties located outside the City limits, with payment for these services received through property tax assessments. The City Council approved a 7% increase to wastewater revenue requirements for the coming year during its April 22nd meeting. The assessments proposed for these properties are equivalent to the rates charged to similar customers inside the City limits. He stated the proposed annual assessment for a single-family residential property is $225.96 per parcel. The proposed assessments total $428,930.04, an increase of $29,063.15 compared to the Fiscal Year 2002/2003 assessment of $399,866.88.

Mayor Miller opened the Public Hearing at 7:33 p.m. and, there being no public comments, closed the Public Hearing.

Councilmember Vorreiter moved, and Vice Mayor Risch seconded, adoption of the resolution approving the proposed assessments. The motion carried unanimously.

RESOLUTION NO. 122-03 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE PROVIDING FOR THE COLLECTION OF SEWER SERVICE CHARGES ON PROPERTY OUTSIDE THE CITY FOR FISCAL YEAR 2003/2004

Trudi Ryan, Planning Officer, and Diana O’Dell, Project Planner, presented the staff report. Ms. Ryan reviewed the decision process and history of the project. She noted that the Council is being requested to certify that the Final Environmental Impact Report is adequate and to determine the appropriate general plan land use designation and height for each of the downtown blocks. She requested direction from the Council on land use designation and the character of the downtown. Ms. O’Dell reviewed the downtown design plan and public outreach efforts, including working with the Friends of Sunnyvale to develop four different land use alternatives. She stated the EIR analyzed thirteen different topics, including aesthetics, noise, traffic, public services and cultural resources. She stated air quality and increased traffic impacts could not be avoided. The EIR made determinations regarding levels of significance and proposed mitigation measures to reduce the level of environmental impact. She reported that at the May 1^st Stakeholders meeting, they recommended limiting building heights to four stories or less, except the Town and Country area, and reduced heights along Mathilda in Blocks 13 and 20. They further recommended that the 100 block of Mathilda and Charles be reduced to low-medium density residential uses, and the mall height be limited further with the exception of future mid-block movie theaters. Staff concurs with the Stakeholders’ recommendations and also recommends increasing the total number of residential units allowed in Block 18 to construct up to 300 units in and around the mall area. The Planning Commission recommended combining Blocks 18 and 18.A., allowing 25 percent of the block area to be built up to 75 feet, and not allowing 80 feet in height for the movie theater. Ms. Ryan stated there are two outstanding issues: the height in Block 1.A. and school district concerns.

City Manager LaSala reviewed the School District issues and a proposal for a School Facilities Planning Study to be undertaken jointly by the Sunnyvale School District and the City of Sunnyvale. He recommended that Council direct staff to undertake the study in cooperation with the School District.

Councilmember Walker inquired if this study was a sub-element of the General Plan. Robert Paternoster, Director of Community Development, responded this study was only for a specific area covered by the Sunnyvale School District, but would be similar to a sub-element to the General Plan. Ms. Ryan clarified the school study would be putting forth a longer term plan and is not a sub-element because it is not a service the City provides, but the City does support this service.

In response to Councilmember Walker, Ms. Ryan stated the Downtown Design Plan is a study document and is not a long-term document. The General Plan is the big picture for the downtown, and the Specific Plan addresses details of the plan.

Councilmember Walker inquired why Block 13 is not being split. Ms. Ryan responded there is an opportunity for mixed use, but Council has the option of splitting the block.

Councilmember Walker inquired about creating an easement in the mall area where no construction would take place to potentially allow Frances Street to go through. Director Paternoster responded the City has already given up the right of way in that area, but will be meeting with the prospective owners of the mall and studying what streets can be brought through.

Councilmember Howe inquired if noise and noise in neighborhoods was studied in the EIR process, particularly relating to Sunnyvale-Saratoga Road. Ray Pendro, of Wagstaff and Associates, responded the citywide noise standards identified in the EIR are taken directly from the General Plan and apply citywide. He noted that the volume of traffic along Sunnyvale-Saratoga Road did not meet the threshold that would cause at least a 3dB increase in noise. Ms. Ryan clarified there would not be a requirement for any properties to be retrofitted.

Councilmember Howe inquired what the existing zoning allows on Block 20, how it would change if it was excluded from the plan, and would it need an EIR report on its own if it is not included in the Downtown Plan. Ms. O’Dell responded the existing zoning on the north half is R-4, and the south half is office zoning. If excluded from the plan, it would retain its existing zoning with no changes and an EIR would not be required.

Councilmember Howe inquired if the School District had reviewed the document and what the estimated cost would be. Director Paternoster replied the School District had reviewed the document, and that if a consultant prepared such a study, it could cost from $70 thousand to $100 thousand. Staff will adjust their schedules to do the work which equates to a major study issue.

In response to Councilmember Fowler, Director Paternoster stated the School Facilities Planning Study would only include the boundaries of the Sunnyvale School District, and the City and the School District will both absorb their portions of the cost.

Councilmember Vorreiter inquired if the 75 foot limit with 375 units is approved for Block 1.A., will it allow for any useable open space. Ms. Ryan stated the Downtown Plan has a very nominal requirement for open space and outdoor activities would have to take place in a park.

Councilmember Vorreiter inquired if there was any way to structure a height limit to provide an incentive for a property owner to allow more open space in exchange for increasing the height. Director Paternoster responded Council could direct staff on height variances and could provide incentives to increase open space.

Councilmember Vorreiter inquired if a child care facility would be provided. Ms. Ryan responded it would be reasonable to include this at the Specific Plan level to enable and encourage the development of this type of facility.

Councilmember Vorreiter asked for clarification on the rationale of including housing in Parcel 18. Director Paternoster responded developers discovered it is a good design to mix residential and retail and it is economically beneficial with sales prices being ten to fifteen percent higher.

Mayor Miller inquired if the General Plan includes underground parking. Director Paternoster responded this would fall under the Specific Plan. He stated tonight Council is looking at the General Plan which includes use, height and density.

In response to Councilmember Walker, Director Paternoster stated that although they are setting a maximum height and density tonight, Council could require as developer to come down in size later.

Councilmember Walker inquired if they would look concurrently at all School Districts to be more cost effective for consultant costs. Director Paternoster responded they would.

Councilmember Walker inquired if the proposed off-ramp for Mathilda would be higher than 30 feet, and could more height in that area be beneficial to obstruct the sight of the off ramp. Director Paternoster responded the ramp drops rapidly, and the block is currently 100 percent residential, so no changes are proposed at this time.

Mayor Miller opened the Public Hearing at 8:42 p.m.

Joe Antuzzi, Chairman of the Stakeholders Committee, reviewed the Committee’s two years of work, recommendations to the plan, limited height and density recommendations, and encouraged the Council to approve the plan.

Jill Jackson, representing the Charles Street Neighborhood Association, stated they are satisfied with the compromises in the Plan and support the 80 foot theater.

Suzi Blackman, President and CEO of the Sunnyvale of Chamber of Commerce, stated they support the plan, appreciate the City’s responsiveness to citizen concerns of height limits, and believe it is a balanced plan.

Dr. Joe Rudnicki, Superintendent of the Sunnyvale School District, expressed concern on the impact of the development on future growth and the impact of schools, students, and traffic. He stated the districts where the development is proposed are currently at or over capacity.

Valerie Armento, City Attorney, referenced State Law that if payments are made, it is considered full mitigation of the impact. She stated when each of the individual projects come forward, they will require an EIR, and in conjunction with those projects, if there is the ability to work out voluntary agreements that result in more than the amounts that the government code provides as the school fee impacts, it may well address their problems. She stated the EIR is complete and the Council can certify the EIR tonight.

The Council entered into a discussion regarding clarification of the School District concerns, details and timing of the work plan, communication with the School District, adequacy of the EIR, and mitigation fees. City Manager LaSala clarified they are looking at the aggregation of impacts over a long period of time.

Nancy Tivol, Executive Director of the Sunnyvale Community Services, stated more affordable housing is needed and supports additional affordable high density housing in Sunnyvale.

James Baron, State Court Receiver for the Town Center Mall, stated it is an excellent plan and support staff’s recommendation.

Joe Manfrey, a member of the public, expressed concerns of gridlock, parking and the potential for empty buildings.

Ron Pfohl, of the Forum Development Group, supports the Downtown Plan, believes it sets a vision and direction, and is in favor of opening up the street grid.

Mark Calvert, Managing Director of Capital Management and Consulting, representing Lehman Brothers, stated they support the Downtown Plan and encouraged the Council to approve the EIR.

Olaf Hirsch, a member of the public, expressed concerns regarding traffic issues and how those impacts can be mitigated more than what is suggested in the EIR.

Arley Marley, Sunnyvale Chamber of Commerce Executive Board Member, stated he supports the Downtown Plan.

Chad Steward, a member of the public, stated he supports the Downtown Plan and encouraged the Council to adopt staff’s recommendations. He stated he also supports 80 feet for the theater and opening up the grid.

Laura Stuchinsky, of the Silicon Valley Manufacturing Group, stated she supports the Downtown Plan and the need for more high-density affordable homes in downtown Sunnyvale.

Andy Maloney, a member of the public, expressed concerns regarding increased traffic, impacts to freeways, and commute time. He stated he disagrees with density allowed and believes open space is inadequate.

Janet Hamma, a member of the public, stated she favors redevelopment, but opposes high-rise buildings.

Nicholeen Nagrodsky-Scott, a member of the public, expressed concern on step-downs from housing density, traffic, noise and decreased desirability for resale of homes. She expressed her concern that the plan does not protect the character of neighborhoods.

Cynthia Johnson, a member of the public, stated if the mall comes down, it presents an opportunity to redesign the downtown. She urged Council not to adopt recommendation D. regarding Block 13 and recommendation F. regarding Block 20.

Paul Jay Reed, a member of the public, stated Sunnyvale could have it’s downtown back. He stated the theaters could be a problem if not thought out properly as they could increase traffic and have parking requirements. He asked Council to consider the scale of the theaters and other alternatives.

Stephen Hazel, a member of the public, disagreed with the EIR in relation to the impact of building height. He stated Sunnyvale is not a traditional downtown.

Ray Johnson, a member of the public, questioned the legality of the Redevelopment Agency and eminent domain. He stated the Downtown Plan was overwhelming in scale.

Thom Mayer, speaking as a member of the Bicycle and Pedestrian Advisory Committee, stated the EIR does not address impacts on bicyclists and bike lanes.

Kim Parnell, a member of the public, expressed concerns that the Digital Clubhouse could be displaced.

David Simons, a member of the public, suggested Council consider allowing up to 100 feet in Block 1.A. to address open space issues, and require downtown street connections be made to allow certain heights for Section 18.

Sandy Holquin, a member of the public, stated she was a petition gatherer for the three initiatives and noted that most residents she had encountered do not like the Mozart Buildings or tall buildings in the City.

Nick Gera, a member of the public, advocated for increased heights and density for the Town and Country area to a maximum of 100 feet in Block 1.A.

Sira Uppalapati, a member of the public, expressed concerns about privacy issues with the Mozart Buildings, and the increased traffic once the buildings are occupied.

Aman Valami, owner of Sunnyvale Travels, posed questions regarding lease options once the Mall closes.

Andy Kasik, a property owner in Town and Country, advocated raising the heights of roof lines and screens to 100 feet.

Paul Werner, a member of the public, expressed concerns that this was too much, too soon, and the traffic impact at the Mathilda and Washington intersection.

Jennifer Gunderson, representing the Moffett Park Business and Transportation Association, stated she supports the Downtown Plan, and referenced the June 17^th editorial in the San Jose Mercury News.

Michon Mahoney, a member of the public, stated she does not support the Downtown Plan. She stated the EIR does not measure many of the quality of life attributes or adequately address traffic concerns.

Leonita Pister, a member of the public, stated the Downtown Plan is not reflective of a traditional downtown. She stated the EIR does not adequately address bicycle and pedestrian traffic.

Frank Smoot, a member of the public, stated raising building heights is inconsistent with the Heritage neighborhood and expressed concern regarding traffic, noise and pollution.

Melinda Hamilton, President of the Friends of Sunnyvale, stated Sunnyvale needs open space for families, and expressed concerns regarding school impacts. She further stated that the scale of the theaters should limit the number of screens.

Werner Gans, a member of the public, stated he does not support the Downtown Plan and asked the Council to follow the Palo Alto model.

Tom Carrig, representing the Heritage District Association, advocated for more open space, and expressed concerns with traffic and pollution.

Brian Lombard, a member of the public, expressed concerns regarding property rights and building heights.

Jeff Arnett, a member of the public, referenced the June 17^th San Jose Mercury News editorial.

Mayor Miller closed the Public Hearing at 11:11 p.m.

Ms. Ryan addressed citizen concerns regarding affordable housing units, open space, building heights, traffic issues, theaters, park dedication requirements, the Redevelopment Agency, the Digital Club House, and air quality.

Vice Mayor Risch inquired about mitigation of building heights. Ms. Ryan responded it could be mitigated through architectural design guidelines.

Councilmember Howe inquired if a development was proposed, would it come before the Planning Commission and Council for a public hearing before being built. Ms. Ryan responded the Specific Plan calls for major projects to go to the Planning Commission, and only some projects are reviewed by the City Council.

In response to Councilmember Howe, Ms. Ryan stated it is the level of environmental review that determines if a project goes before the Planning Commission.

Councilmember Howe inquired if the Memos of Understanding with the Mall would come before Council. City Manager LaSala responded they would.

Mayor Miller stated they did not discuss air quality issues pertaining to TDM methods from developers, parking cash-out programs, a downtown shuttle service, planning for bicycle and pedestrian access, and connecting those with other local and regional bicycle routes, as well as wood burning ordinance. She inquired if staff has discussed these issues with potential developers. Ms. Ryan responded that wood burning fireplace regulations are a part of the City’s municipal code and they notify developers early in the process. She further stated the TDM requirements are included in a specific development proposal and could be considered for all types of developments.

Councilmember Walker moved, and Vice Mayor Risch seconded, to certify the FEIR for the Downtown Improvement Program Update, and adopt a statement of overriding considerations. The motion carried with Councilmember Fowler dissenting.

Councilmember Walker moved, and Mayor Miller seconded, to approve the proposal to work on a School Facilities Planning Study. The motion carried unanimously.

Councilmember Walker moved, and Councilmember Valerio seconded, to adopt the land uses and intensities in the Downtown Design Plan subject to amendments hereafter made.

Councilmember Walker moved, and Vice Mayor Risch seconded, to amend his motion to change the maximum height to 85 feet and increase the number of residential units to 450 in the Town and Country area (Block 1.A.).

Councilmember Vorreiter offered a friendly amendment to consider adding two floors of underground parking. The amendment was not accepted.

The motion carried with Councilmember Howe dissenting.

Councilmember Walker moved, and Councilmember Fowler seconded, to amend his main motion to reduce the number of residential units to 200 in Block 18. The motion carried unanimously.

Councilmember Walker moved, and Councilmember Vorreiter seconded, to amend his main motion to split Block 13 north/south to create a 13 and 13.A., and have Block 13.A., which faces onto Taaffe, as a low/medium residential with a maximum height of 30 feet. The motion carried unanimously.

Councilmember Howe moved, and Councilmember Walker seconded, to continue to include Block 20 in the Downtown Plan. The motion carried unanimously.

Mayor Miller moved to limit the height on Block 3 to 40 feet. The motion died for lack of a second.

The main motion carried unanimously.

RESOLUTION NO. 123-03 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE CERTIFYING THE ENVIRONMENTAL IMPACT REPORT, APPROVING MITIGATION MONITORING AND REPORTING PROGRAM, ADOPTING STATEMENT OF OVERRIDING CONSIDERATIONS AND A GENERAL PLAN AMENDMENT FOR THE SUNNYVALE DOWNTOWN IMPROVEMENT PROGRAM UPDATE

Mayor Miller recessed the meeting at 12:27 a.m., and reconvened at 12:40 a.m.

Grace Kim, Budget Finance Manager, assisted by Mary Bradley, Director of Finance, presented the staff report. She stated three actions are required of Council – consider and take action on proposed fee changes, adopt the FY 2003/2004 Budget, and adopt the FY 2003/2004 Appropriations Limitation. Since the distribution of the recommended budget, staff determined that the Public Safety Expanded Recruitment Project was not correctly identified in the above totals. While correctly identified in the financial plan, the total project budget should be increased by $2 million to approximately $9 million, and therefore, total expenditures are approximately $211 million to accurately account for this project. This revision will be reflected in the adopted budget. Per Council’s direction at the June 3^rd Council meeting to remove $350,000 in the budget for sidewalk repair fee revenue, Ms. Kim reviewed the proposed equivalent expenditure reductions and revenue increases. She further reviewed proposed alternative reductions to restore one Vice/Narcotics Detective. Ms. Kim reviewed the fiscal impact of restoring a cut from the Wastewater Management Program that eliminated the service to repair, replace or install clean-outs or sewer laterals on private properties.

Mayor Miller opened the Public Hearing at 12:48 a.m.

Phaedra Ellis-Lamkins, representing the South Bay Labor Council, stated there is no clarity in the unions on who is being laid off. She asked Council to defer layoffs for three months in order for unions in the City of Sunnyvale to come together to find a solution to avoid layoffs.

City Manager LaSala stated the City may have additional reductions by as much as $2 million once the State Budget is approved. He expressed concern in deferring layoffs because of the compounding effect of the cost coupled with the State Budget impact. He stated the layoffs would not have a dramatic impact on Sunnyvale and he would return with an implementation plan within the next 30 to 40 days.

Tim Reilly, a CPA with Bachecki, Crom and Company, made a presentation reviewing an analysis of the 2003/2004 proposed budget for the City of Sunnyvale, focusing on net assets, and stated the City of Sunnyvale is financially healthy.

Director Bradley stated the increase in assets does not represent spendable resources. She stated the Bachecki, Crom report does not take into account the extended downturn, and the General Fund has carryovers for capital projects which are two percent under budgeted amounts. She stated the City reserve policy is similar to other neighboring cities to help the City through economic volatility and are integral to long- term planning.

Steve Fisk, President of the Police and Safety Officers Association, stated he appreciates and supports Councilmember Fowler’s efforts to analyze and track the budget. He stated he opposes the Assistant Chief position and asked Council to consider alternative approaches to layoffs.

In response to Councilmember Howe, Mr. Fisk stated the City has the resources to delay layoffs for three months.

Tim Thiel, President of the Sunnyvale Employee Association, stated he supports Councilmember Fowler’s suggestions and asked the Council to delay layoffs for 90 days.

Bob Balmanno, President of the SEIU, asked the Council for a three month deferral of layoffs, and to find creative ways to work with labor unions to avoid layoffs.

In response to Councilmember Valerio, City Manager LaSala responded there are five management and two SEA positions targeted for elimination in 2003/2004.

Councilmember Fowler asked him to confirm that for the record, and inquired what the effect would be for delaying those layoffs for 90 days.

City Manager Lasala restated there are five management and two SEA positions targeted for elimination in 2003/2004. Further, the delay would have a compounding effect on the dollars, and they may not be able to exercise all of the other seniority rights of 13 people.

Ben Holgate, of the SEIU, stated that one layoff is too many. He stated they have worked with numerous other cities to avoid layoffs.

Councilmember Vorreiter inquired if the union would be willing to take a pay cut to avoid layoffs. Mr. Holgate responded voluntary retirements, reduction of hours and other alternatives could be taken to avoid layoffs, and he would welcome the opportunity to work with City management to discuss these further.

Tony Spitaleri, a member of the public, suggested the City work with representatives from bargaining units to avoid layoffs. He stated it is critical to keep public safety services and asked the Council to adopt Councilmember Fowler’s proposals.

Nick Steinmeier, a member of the public, stated he felt it was irresponsible to have both the EIR and the Budget on the same agenda. He asked that the Council adopt a plan to delay layoffs and work with the bargaining units.

Dean Chu, a member of the public, asked that Council direct staff to delay layoffs for three months to potentially avoid having any layoffs.

Ron Swegles, a member of the public, asked that the City work with employee unions to avoid layoffs.

Thom Mayer, a member of the public, expressed concern on the quality of services provided by employees after the layoffs, and agreed with the three month extension. He asked that the Council consider Councilmember Fowler’s recommendations.

Steven Hazel, a member of the public, stated he favored the 90 day extension for layoffs.

City Manager LaSala stated he would welcome any proposals from the unions to mitigate the layoffs.

Mayor Miller closed the Public Hearing at 1:59 a.m.

Vice Mayor Risch requested an estimate of the cost impact of delaying layoffs for 90 days, and if other services would be impacted. City Manager LaSala stated the funds would be available from the excess left over from the management bonuses which equates to $50 thousand.

Councilmember Walker inquired when employees would be notified of termination. City Manager LaSala stated the plan called for noticing on August 1^st with an effective date of September 1^st.

Councilmember Fowler moved, and Councilmember Howe seconded, to amend the recommendation to include his proposal that identifies an additional $1.6 million in cuts and $1.6 million in add backs in other areas. In addition, direct the City to work with bargaining units during a 90 day period to find innovative and creative ways to avoid layoffs. The motion failed with Vice Mayor Risch and Councilmembers Valerio, Vorreiter and Walker dissenting.

Councilmember Howe moved, and Councilmember Fowler seconded, to extend layoffs to 90 days and work with bargaining units to find innovate ways to avoid layoffs.

Vice Mayor Risch offered a friendly amendment that the additional expenditure be funded from the Management Bonus Program. The amendment was accepted.

The motion carried unanimously.

Vice Mayor Risch moved, and Councilmember Valerio seconded, to approve the recommended FY 2003/2004 Budget, Fee Schedule and Appropriations Limitation as represented at the June 3^rd Public Hearing, with the changes detailed in this report. The motion carried with Mayor Miller and Councilmembers Fowler and Howe dissenting.

RESOLUTION NO. 124-03 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE ADOPTING THE BUDGET OF THE CITY OF SUNNYVALE FOR THE FISCAL YEAR JULY 1, 2003 TO JUNE 30, 2004

RESOLUTION NO. 125-03 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE FIXING AND ESTABLISHING FEES, RATES, AND CHARGES FOR GOODS AND SERVICES PROVIDED BY THE CITY OF SUNNYVALE

RESOLUTION NO. 126-03 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE ESTABLISHNG THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2003-2004 PURSUANT TO ARTICLE XIII-B OF THE CALIFORNIA CONSTITUTION

Phaedra Ellis-Lampkins, of the South Bay Labor Council, requested a list of the positions that have been recommended for elimination, and the associated costs for the bargaining units to assess.

Steven Hazel, a member of the public, spoke in opposition of the Federal government and statements made by the Council.

There were no comments.

City Manager LaSala requested direction from Council to move the Energy Regulations and Green Building Policies and Guidelines, and the presentation of Current Practices relative to ADA and Accessibility Study session.

Councilmember Howe moved, and Mayor Miller seconded, to move the Energy Regulations and Green Building Policies and Guidelines to February 2004, and move the Presentation of Current Practices Relative to ADA and Accessibility Study Session to November 2003. The motion carried unanimously.

Mayor Miller declared the regular meeting of the City Council adjourned at 2:40 a.m.

Respectfully submitted,

Susan Kitchens
City Clerk