The City Council of the City of Sunnyvale adjourned from a 5:00 p.m. Closed Session Conference with Real Property Negotiator regarding the Sunnyvale Town Center Mall, a 6:30 p.m. Study Session Regarding Codify and Index the Housing Mitigation Fee, 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.

John Escobar, Assistant Manager of the Mid Peninsula Regional Open Space District, made a short presentation on the Mid Peninsula Regional Open Space District annexation activities.

Councilmember Vorreiter requested that this item be agendized for Council action.

In response to Councilmember Vorreiter, Mr. Escobar stated the proposed annexation goes through the LAFCO process, but if 25 percent of the voters sign a petition, it would go for a popular vote.

Mayor Miller presented a proclamation to Mr. Escobar declaring the City of Sunnyvale’s support of the District’s expansion into the San Mateo, Pacifica and Santa Cruz coast side areas and commended the District on their continuing efforts to preserve open space lands.

Ernie Bakin, Director of Public Safety, warned the community about a scam whereby a group of people target elderly female residents by posing as landscapers. They try to gain access to the resident’s yard and distract them while the other members rob the house. Chief Bakin encouraged citizens to call 911 and report any suspicious activity.

Roccie Hill, Executive Director of the Housing Trust of Santa Clara County, and Carl Guardino, Chair of the Silicon Valley Manufacturers Group made a presentation regarding affordable housing in Santa Clara County and reviewed how the funds have been utilized. Ms. Hill requested that the Council consider additional contributions to the Housing Trust.

Vice Mayor Risch reported the Council met in closed session regarding Conference with Real Property Negotiation Government Code Section 54956.8 Property: Sunnyvale Town Center Mall. Direction was given but no action was taken.

Mayor Miller announced a new addition to the Wall of Honor. He is Lance Corporal Derek Grienier, U.S. Marine Corps.

Mayor Miller thanked the Director of Public Works for the completion of the Yahoo Spur Trail to the Bay Trail.

Mayor Miller read into the record the City’s position on the 129^th Air Rescue Wing stating Sunnyvale opposes the move.

IrisAnn Nelson, speaking on behalf of the Sunnyvale Family Childcare Network, stated they are recipients of resource kits from the City of Sunnyvale Library, Friends of the Library and Sunnyvale Child Care Manager. She thanked the Council, Annabel Yurutucu and Annabelle Alderette for their support and the opportunity to serve on the Housing and Human Services Commission.

Allison Handley, President, of Cogswell College, announced a summer camp program and distributed a brochure. She reported she has been appointed to the Santa Clara Historical Heritage Commission.

Suzi Blackman, President and CEO of the Sunnyvale Chamber of Commerce, announced the continuing Downtown Summer Music Series. She announced the Sunnyvale Chamber of Commerce and the Sunnyvale Rotary Club will be co-sponsoring a Golf Tournament to benefit Sunnyvale Non-Profit organizations.

Mayor Miller congratulated Councilmember Vorreiter on her appointment as President, of the Sunnyvale Rotary Club.

Ray Montalvo, read a letter recognizing the City staff and committee members for their work on the Tax Advisory Ad Hoc Committee.

Councilmember Vorreiter suggested recognizing all members of the Ad Hoc Committee. Mayor Miller read a list of Committee members:

Mayor Julia Miller
Vice Mayor Risch
Councilmember Walker
John Vidovich
Larry Stone
Bob Burnett
Carl Guardino
Lisa Davis
Steve Rebagliati
Joe Rudnicki
John Sweat
Mike Klein
Chris Moylan
Ray Montalvo
Pradeep Joshi
Thom Mayer
Jim Telfer

Alternates:

Tom Bryant
Pat Castillo
Connie Portele

Councilmember Fowler requested that item 1.A. be pulled and considered separately. Vice Mayor Risch requested item 1.L. be pulled and considered separately. Mayor Miller requested item 1.J. be pulled and considered separately. Fred Wiesinger, a member of the public, requested item 1.F. be pulled and considered separately. Thom Mayer, a member of the public, requested item 1.H. be pulled and considered separately. Vice Mayor Risch moved, and Councilmember Howe seconded, approval of the Consent Calendar with the exception of items 1.A., 1.F, 1.H. 1.J., and 1.L The motion carried unanimously.

Councilmember Fowler moved, and Councilmember Howe seconded, approval of the minutes as amended. The motion carried unanimously.

Marvin Rose, Director of Public Works, presented the staff report.

Mayor Miller opened the Public Hearing at 8:16 p.m.

Fred Wiesinger, a member of the public, requested that a less costly approach to the Mathilda off ramp be considered and to involve the Bicycle and Pedestrian Advisory Committee in the design process.

Thom Mayer, a member of the public, expressed concerns regarding the position of the off ramp.

Arthur Schwartz, a member of the public, urged the Council to consider a study to look at alternatives to the circular ramp.

Director Rose stated they would study the alternative, and if it is required to go into the EIR, they will come back to Council.

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

Councilmember Walker moved, and Vice Mayor Risch seconded, to award a contract, in an amount not to exceed $1,786,260, to Mark Thomas & Company, Inc., to provide design and construction support services for the Mathilda Avenue Overhead Bridge Rehabilitation Project (TR-02/03-07). Staff to come back with an analysis of the round about alternative offered.

Mayor Miller offered a friendly amendment to include the BPAC in the design review. The amendment was accepted.

The motion carried unanimously.

Elaine Wesely, Purchasing Officer, presented the staff report.

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

Thom Mayer, a member of the public, requested the first restroom be built at the parking garage instead of the golf course.

Fred Wiesinger, a member of the public, concurred that restrooms are needed at the Caltrans station.

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

Councilmember Howe moved, and Councilmember Walker seconded to award a contract to Restroom Facilities Corp., in the amount of $65,07, to furnish and install a prefabricated restroom building at the Sunnyvale Golf Course, and authorize the Purchasing Officer to issue a Purchase Order to that effect. The motion carried unanimously.

Jack Witthaus, Transportation and Traffic Manager, presented the staff report.

Mayor Miller opened the Public Hearing at 8:35 p.m., and, there being no public comments, closed the Public Hearing.

Councilmember Valerio moved, and Vice Mayor Risch seconded, to adopt an oppose position to the current City of Milpitas proposal to restructure the VTA Board to include full time voting representation for all Santa Clara County cities. Support continued research by the City of Milpitas and the VTA Board into a representation scheme that increases individual City representation, but keeps voting and representation rights proportional to population, while maintaining or only slightly increasing the current number of members of the Board. Encourage the City of Milpitas to work with the other members of it’s City grouping to discuss modifying the representation scheme within the City grouping to meet Milpitas’ needs. The motion carried unanimously.

Marvin Rose, Director of Public Works, presented the staff report.

Vice Mayor Risch inquired if all the work has been completed. Director Rose responded all the work related to this contract has been completed. He stated the extra $80,000 may be used to convert a janitorial closet to a restroom.

Mayor Miller inquired if the phones have been installed. Director Rose responded they have not and is pursuing this.

Mayor Miller opened the Public Hearing at 8:43 p.m.

Thom Mayor, a member of the public, asked that this be postponed until the next meeting to address an issue with the bike lockers.

Mayor Miller closed the Public Hearing at 8:46 p.m.

Councilmember Walker moved, and Vice Mayor Risch seconded, by resolution, to accept the project as complete and satisfactory and direct staff to bring back additional information about the bike lockers. The motion carried unanimously.

Chuck Schwabe, Deputy City Manager, presented the staff report. He reported a 17 member Ad Hoc Advisory Committee was created by the City Council to examine increasing or establishing new local taxes. Ray Montalvo, Committee Chairman, of the Ad Hoc Committee reviewed the final report. He reported the committee met seven times and identified nine potential tax options and considered over 40 criteria for tax increases. He reported they consulted with Fairbank, Maslin, Maullin & Associates to conduct a survey and reviewed the results. Mr. Montalvo stated they have three recommendations:

1. The City Council should not consider increasing existing or establishing new local taxes at this time.
2. The Business License Tax, the Transient Occupancy Tax, and the Utility User’s Tax should be either restructured or increased if the City Council decides to place a ballot on a local election at some point in the future.
3. There should be no effort started at this time to inform and educate Sunnyvale voters about potential increases to existing or the establishment of new local taxes.

Mayor Miller opened the Public Hearing at 9:04 p.m.

Chris Moylan, an Ad Hoc Committee member, highlighted three points of the report and noted the vote on June 24^th came late in the meeting and did not represent the full committee. He further stated that any public information campaign should be focused on the business license tax and utility tax.

Councilmember Fowler questioned the validity of the vote on proposed taxes and inquired if the report reflects the will or flavor of the committee. Mr. Montalvo responded it does reflect that flavor.

Larry Stone, an Ad Hoc Committee member, stated he was disappointed in the primary recommendation of the committee in that the City needs more revenue. He stated it is possible to supplement the City’s revenue in two areas: the Business License Tax and the Transient Occupancy Tax (TOT).

In response to Councilmember Vorreiter, Mr. Stone stated he did not think the Utility Users Tax Fee would pass a ballot measure.

In response to Councilmember Fowler, Mr. Stone stated the committee discussed increasing the cap of the Business License Fee.

Mayor Miller inquired how a Business License Tax and License Fee could be restructured. Mr. Montalvo responded the model for this is in the report but it needs to be reviewed.

Thom Mayer, an Ad Hoc Committee member, stated he does not support raising taxes at this time.

Werner Gans, a member of the public, stated the Transient Occupancy Tax should be competitive with surrounding taxes. He stated the Business License Tax will be passed on to consumers and should be increased for inflation. He opined that the employees should pay a portion of their medical insurance.

Tim Thiel, President of the Sunnyvale Employees Association (SEA), stated Sunnyvale employees already pay a portion of their medical insurance with the exception of management employees and the City Council.

Suzi Blackman, President and CEO of the Sunnyvale Chamber of Commerce, stated historically the Chamber policy is to oppose increased taxes. She stated the Board agrees the fees are low but need to thoroughly study increasing taxes. She stated now is a good time to consider increasing the business license fee.

Natalie Carderas, Silicon Valley Association of Realtors, stated she supports recommendations not to increase any taxes.

Mayor Miller closed the Public Hearing at 9:31 p.m.

Vice Mayor Risch clarified the vote on page 19 of the report, and noted that Councilmembers serving on the committee did not participate in the vote.

Councilmember Howe moved, and Councilmember Fowler seconded, to accept the final report as submitted by the Ad Hoc Advisory Committee.

Mayor Miller offered a friendly amendment to add a one percent increase to the Transient Occupancy Tax. The amendment was not accepted.

Mayor Miller moved to add a one percent increase to the Transient Occupancy Tax. The motion died for a lack of a second.

The original motion failed with Mayor Miller and Councilmembers Valerio, Vorreiter and Walker dissenting.

Councilmember Walker moved, and Councilmember Valerio seconded, to accept the Committee’s Final Report and place two measures on the ballot regarding increases to the Transient Occupancy Tax and the Business License Tax on the November 2003 ballot. The motion carried with Vice Mayor Risch and Councilmembers Fowler and Howe dissenting.

Barbara Keegan, Assistant Director of Public Works, presented the staff report. She stated approval is requested for the award of a contract to Devcon Construction, Inc., for the construction of the Sunnyvale Downtown Plaza, and Budget Modification No. 4 for additional funding for this project. Bid specifications were developed to reflect a base bid and three additive alternatives. They are: Alternative #1 Arbor and associated lighting; Alternative #2 Cladding of existing structures; and Alternative #3 Rectangular mesh fencing. She clarified that on page 3 of the report under fiscal impact, the City received a check from Mozart in the amount of $147,224, which was $22,000 higher than the original estimate.

Vice Mayor Risch inquired if rescoping or redesigning the project was considered when the estimate came in higher than the engineer’s estimate. Ms. Keegan responded they did an analysis and the cost difference was not significant. She stated the engineer’s estimate was too low and did not encompass all contingencies. She stated if they were to re-bid the project, construction would not take place until next Spring and does not believe there would be significant cost savings.

Mayor Miller asked for assurance that this will be a quality plaza and upgrades can be done later as the economy improves. Ms. Keegan responded there will be an opportunity to add additional features. She stated staff is recommending alternative number one for the arbor and lighting, and the raised stage and amphitheater are included in the design.

Mayor Miller opened the Public Hearing at 10:13 p.m.

Suzi Blackman, President and CEO of the Sunnyvale Chamber of Commerce, and speaking for the Downtown Association, inquired if a bathroom was included and encouraged the Council to approve recommendation number one. Ms. Keegan responded they are not including the utilities for the bathroom, but are not doing anything that precludes the installation in the future.

Thom Mayer, a member of the public, inquired if the labyrinth is included. Ms. Keegan responded it is.

Mayor Miller closed the Public Hearing at 10:20 p.m.

Vice Mayor Risch moved, and Mayor Miller seconded, to award a contract in the amount of $5,003,000 to Devcon Construction Inc., for construction of the Downtown Plaza and Additive Alternative #1, approve Budget Modification No. 4, and approve a construction contingency in the amount of $651,300. The motion carried unanimously.

Elaine Wesely, Purchasing Officer, assisted by Mary Bradley, Director of Finance, and Robert Walker, Director of Parks and Recreation, presented the staff report. She stated approval is requested to outsource janitorial services in City buildings and award a one year contract to Clean Innovation Corporation of Santa Clara. She stated Clean Innovation is offering the best value to the City and noted that no layoffs of City janitorial employees (SEA or SEIU) will be required as a result of outsourcing janitorial services, as janitorial staff are temporary agency employees. There is a potential reduction of one SEA represented facility maintenance position. Director Bradley stated the recommended contract represents a 40 percent reduction in janitorial services which was budgeted for $208,000. The lowest bid from Clean Innovation Corporation is $276,000, a shortfall of $73,000 (including $5,000 for extra services). She stated if Council chooses not to outsource janitorial services, approximately an additional $405 thousand will be required annually to allow facilities maintenance to provide this service with City staff.

Councilmember Howe inquired if staff had an employee benefit comparison chart for the next lower bidder. Ms. Wesely distributed a handout with the comparison.

Councilmember Fowler inquired if the draft agreement would be modified to include all details. Ms. Wesely responded it would.

Councilmember Fowler asked for clarification in differences in bid prices. Director Walker stated the differences related to pay scale and benefits.

Mayor Miller inquired why Sunnyvale has such a high salary range. Mark Gregersen, Director of Human Resources, responded proposed classifications were based on the current salary structure which is higher than the bidding firms.

Councilmember Walker inquired if the pay levels are based on a salary survey. Director Gregersen stated it was based both on a survey and benchmarking against other jobs internally.

Councilmember Vorreiter inquired what the differential was between the estimated number of hours of Diversified Maintenance Services and the City bid as opposed to Clean Innovation and how many employees were employed in janitorial services. Ms. Wesely responded Clean Innovation total number of hours was 24,952, Diversified was 24,731, and Sunnyvale Facilities Management was 27,859. Director Walker responded there is one full time SEA employee and no part time employees.

Councilmember Vorreiter inquired if it was necessary to check to see if medical insurance coverage is being maintained on a quarterly or semi-annual basis. Ms. Wesely responded it would be necessary.

Councilmember Fowler inquired what the average pay represented, and if all the employees are permanent, full time. Ms. Wesely responded it was an average wage of the entire company and believes all the employees are full time.

Councilmember Fowler inquired why the Sunnyvale bid was so much higher than a private company that has union labor. Larry Iaquinto, Superintendent of Building Services, responded the majority of the difference is due to pay scale and considerably higher benefit costs. He stated the Sunnyvale bid was based on a Janitor I pay scale.

At this juncture, Mayor Miller left the dias.

Vice Mayor Risch opened the Public Hearing at 10:59 p.m.

Raffy Espirito, of Clean Air Innovation Corporation, stated he supports the objectives of the City to maintain service at a competitive price. He noted he provides service for other government agencies. In response to Councilmember Fowler, Mr. Espirito stated that not all employees are full time and the $8.25 is average pay company-wide.

At this juncture, Mayor Miller returned to the dias.

Ben Holgate, of SEIU, stated the cost of contract administration is an additional $140 thousand, which was not included, and asked Council to send this back to staff to come up with a better recommendation as this is not feasible. He further stated janitorial work is under-budgeted.

Werner Gans, a member of the public, stated Sunnyvale employees should pay a portion of their medical benefits.

Mayor Miller closed the Public Hearing at 11:14 p.m.

Councilmember Fowler moved, and Councilmember Howe seconded, to direct staff to complete the draft agreement and bring it back to Council for consideration.

Councilmember Howe offered a friendly amendment that this item be brought back to Council on July 22^nd as a Consent Calendar item. The amendment was accepted.

Councilmember Walker offered a friendly amendment to bring this item back to the Council on July 22^nd as a Public Hearing item. The amendment was accepted.

The motion carried unanimously.

Tim Kirby, Revenue Systems Supervisor, and Mary Bradley, Director of Finance, presented the staff report. He reported charges for both utility services and abandoned vehicle abatements are billed to customers directly by the Department of Finance. Some of the properties receiving these services have been consistently delinquent and attempts to collect these delinquent debts through the City’s standard collection process have failed. Staff is recommending that assessments be filed against these properties in accordance with Sunnyvale Municipal Code Sections 12.50.110 and 9.24.170.

Mayor Miller opened the Public Hearing at 11:23 p.m. and, there being no public comments, closed the Public Hearing.

Councilmember Howe moved, and Councilmember Walker seconded, to adopt a resolution and proceed with the assessment process through the County of Santa Clara. The motion carried unanimously.

RESOLUTION NO. 131-03 PUBLIC HEARING TO CAUSE CHARGES FOR NON-PAYMENT OF UTILITY SERVICES AND NON PAYMENT FOR THE COST OF ABATEMENT OF ABANDONED VEHICLES TO BE PLACED ON THE FY 2003/2004 TAX ROLL

At this juncture, Councilmember Walker left the dais.

Susan Kitchens, City Clerk, presented the staff report. She stated Council reviews the Study Issues Calendar at mid-year in order to consider revisions or modifications to the July through December schedule and affords the opportunity to review what was accomplished in the January-June timeframe.

Mayor Miller opened the Public Hearing at 11:26 p.m. and, there being no public comments, closed the Public Hearing.

Vice Mayor Risch moved, and Councilmember Howe seconded, to adopt the updated calendar as presented. The motion carried unanimously.

At this juncture, Councilmember Walker returned to the dais.

No action was taken.

Werner Gans, a member of the public, inquired if the sewer fee increase has been implemented. Councilmember Fowler responded sewer fees were not increased.

Andy Maloney, of the Friends of Sunnyvale, requested the Council put the three petition initiatives on the ballot regarding the downtown development and expressed dismay about the petition process.

Councilmember Howe moved, and Councilmember Fowler seconded, to agendize the three ballot initiatives for discussion and potential action at a Council meeting within 30 days. The motion failed with Vice Mayor Risch and Councilmembers Valerio, Vorreiter and Walker dissenting.

Mayor Miller requested the ballot initiatives be put on a future Council agenda for discussion.

Councilmember Walker moved, and Vice Mayor Risch seconded, to direct the Mayor not bring back the ballot initiatives as an agenda item. The motion carried with Mayor Miller and Councilmembers Fowler and Howe dissenting.

Mayor Miller made inquires regarding the Directions to Staff log.

Mayor Miller inquired if the Sunnyvale SWAT team will participate in the "Best in the West" competition. She further requested a report on a speed sign posted on Hollenbeck that is not operable.

Mayor Miller announced a special meeting for August 6^th at 5:00 p.m. to discuss ballot measures on increasing the Transient Occupancy Tax and Business License Tax.

Mayor Miller requested an analysis of the cost savings if managers are required to share in the cost of health benefits. She also requested a list of contracts relating to employee benefits and when they are due to expire.

There were no comments.

Mayor Miller declared the regular meeting adjourned to the Redevelopment Agency Meeting at 12:25 a.m.

After adjourning the meeting of the Redevelopment Agency, Mayor Miller declared the regular meeting of the City Council adjourned at 12:27 a.m.

Respectfully submitted,
Susan Kitchens, City Clerk