The City Council of the City of Sunnyvale adjourned from a 6:00 p.m. Study Session regarding Serial Meetings and Electronic Mail Issues, to a 6:30 p.m. Closed Session regarding Personnel Matters – Labor Relations, PSOA, SEA, SEIU and COA Management and Confidential Employees (adjourning at 7:15 p.m.), and the Council met in regular session in the City Council Chambers, 456 West Olive Avenue, Sunnyvale, California at 7:30 p.m., with Mayor Miller presiding.

Carl Guardino, Chief Executive Officer of the Silicon Valley Manufacturers Group, led the salute to the flag.

* Pending Council Approval

Mayor Miller presented a proclamation in declaration of "Parks and Recreation Month" in the City of Sunnyvale to Joe Manfrey of the City’s Parks and Recreation Commission and Cathy Merrill, Assistant to the Director of Parks and Recreation.

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

The Council met in closed session regarding Personnel Matters – Labor Relations, PSOA, SEA, SEIU and COA Management and Confidential Employees. Direction was given but no action was taken.

Councilmember Fowler recognized James Michael Kirk who is currently serving in Iraq.

Mayor Miller announced that due to the success of the first Coffee & Conversation with the Mayor event last June, a second opportunity for residents to meet and chat with the Mayor has been arranged for Saturday, August 16^th, between 9:30 a.m. and 11:00 a.m., at the Coffee & More restaurant. For more information, contact the City Communications Department at 730-7535.

Werner Gans, a member of the public, requested item 1.E. be removed and discussed separately. Vice Mayor Risch moved, and Councilmember Vorreiter seconded, to approve the Consent Calendar with the exception of 1.E. and with the corrections to the July 15, 2003 minutes. The motion carried unanimously.

Mark Gregersen, Director of Human Resources, and Barbara Coats, Risk and Insurance Manager, availed themselves for questions.

Mayor Miller opened the Public Hearing at 7:45 p.m.

Werner Gans, a member of the public, expressed dismay that the City employees do not contribute to long term disability insurance.

Mayor Miller inquired if employees contribute to the cost of Long Term Disability Insurance. Director Gregersen responded that employees are covered by an aggregate amount that is in place for all employee insurance and this is included in that aggregate amount.

Mayor Miller closed the Public Hearing at 7:47 p.m.

Vice Mayor Risch moved, and Councilmember Valerio seconded, to accept the MetLife extension with no pricing change. The motion carried unanimously.

Elaine Wesely, Finance Manager, assisted by Mary Bradley, Director of Finance, and Larry Iaquinto, Superintendent of Building Maintenance, presented the staff report. Ms. Wesely stated a revised draft agreement has been prepared in response to direction received at the July 15^th, 2003 Council meeting.

Mayor Miller opened the Public Hearing at 7:50 p.m. and, there being no public comments, closed the Public Hearing.

Councilmember Valerio moved, and Vice Mayor Risch seconded, to authorize the outsourcing of janitorial services by awarding a one year contract for janitorial services, in an amount not to exceed $281,000, to Clean Innovation Corporation (with an option to extend the contract for four additional one-year periods). Beginning in FY 2004/2005, fund the shortfall between the budgeted amount and the low bid by further reducing service levels in Facilities Management in accordance with Attachment B. Allow the City's labor associations to include this position in its review of all proposed layoffs. Determine funding for subsequent years pending action resulting from labor association review and feedback. The motion carried with Mayor Miller and Councilmembers Fowler and Howe dissenting.

Annabel Yurutucu, Housing Officer, presented the staff report. She reported the Housing Trust of Santa Clara County (HTSCC) has requested that Sunnyvale consider providing a second contribution to the Trust. The City’s contribution will assist the HTSCC in continuing with its efforts as an investment pool for the purpose of providing a revolving loan fund and grant-making program to address the issue of affordable housing in Santa Clara County. Staff recommends a contribution of $500,000 from the Housing Mitigation Sub-fund.

In response to Councilmember Fowler, Ms. Yurutucu stated this is consistent with the strategic plan for the Housing Mitigation Fee including expansion of affordable rental units and affordable senior housing.

Councilmember Fowler inquired if staff is looking at further cooperative efforts in the future. Ms. Yurutucu responded they will continue to work with the Housing Trust Fund and are planning a first time homebuyer housing fair in August.

In response to Councilmember Fowler, Ms. Yurutucu stated she did not believe there is a duplication of efforts. She stated they need a balanced approach and the Trust Fund should be part of this approach.

Vice Mayor Risch inquired if the funds would be used to provide housing opportunities in Sunnyvale. Ms. Yurutucu responded the $500,000 is not specifically earmarked, but the Trust Fund is required to meet certain goals within a specific timeframe based on Sunnyvale’s contribution.

Mayor Miller inquired if this would add to the housing stock. Ms Yurutucu responded it could with two of the non-profit organizations looking at creating large scale projects.

Mayor Miller opened the Public Hearing at 8:00 p.m.

Carl Guardino, CEO of the Silicon Valley Manufacturers Group and Board Member of the Housing Trust of Santa Clara County, encouraged the City to include funding in the final agreement.

Roccie Hill, Executive Director of the Housing Trust of Santa Clara County, thanked the Council for their support and stated they will endeavor to make any partnerships that will leverage more money for Sunnyvale.

Mayor Miller closed the Public Hearing at 8:02 p.m.

Councilmember Vorreiter moved, and Councilmember Walker seconded, to approve Budget Modification No. 3 to appropriate funds from the Housing Mitigation Sub-fund for a contribution of $500,000 to the Housing Trust of Santa Clara County. The motion carried unanimously.

Annabel Yurutucu, Housing Officer, presented the staff report. She stated staff recommends Council approve Budget Modification No. 6 to appropriate funds from the Below Market Rate (BMR) In-Lieu Fee Reserve (Housing Fund) for implementation of the homebuyer education and homeownership assistance components of the City’s First-Time Homebuyer Support Program. Implementation of the program includes the addition of a permanent full-time position of Housing Program Analyst and contract services to provide homebuyer educational programs to assist qualified renters. The primary goal of the program is to move BMR renters into first-time homeownership. Detailed program descriptions including eligibility and loan terms for implementation of Independent Development Accounts (IDA) and Down Payment Assistance Loans will be developed and brought for Council consideration on or about January 2004.

Councilmember Fowler inquired if the Housing and Human Services Commission had a recommendation on this program. Ms. Yurutucu responded there was no appropriate format for them to take action because of the timing of the meeting, but the Commission did hear an extensive presentation on the Community Development strategy.

Councilmember Howe inquired what the $100,000 program administration and implementation includes. Ms. Yurutucu responded it includes the majority of the analyst’s hours as well as a portion of an existing staff member’s hours.

Councilmember Howe inquired how this position would be funded in the future and if there will be an implication for the City’s General Fund. Ms. Yurutucu responded it would be funded by the set aside balance of $3.3 million BMR In-Lieu reserve and in the down payment loan revolving income. She stated there would be no implication for the General Fund.

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

Kevin Lee, Chair of the Housing and Human Services Commission, and Nancy Smith, Vice Chair of the Housing and Human Services Commission, expressed support for the proposed program and stated there was overwhelming support from the Housing Commission. Mr. Lee thanked the Council for their support.

Mayor Miller closed the Public Hearing at 8:20 p.m.

Councilmember Walker moved, and Councilmember Vorreiter seconded, to approve Budget Modification No. 6 to allocate a project budget for the implementation of the First-Time Homebuyer Support Program and approve the creation of a new staff position of Housing Program Analyst. The motion carried unanimously.

Vice Mayor Risch inquired about rezoning from C-2 to R-4. Mr. Bell responded the zoning needs to be consistent with the General Plan land use designation. He stated R-4 zoning is appropriate for this type of high density residential.

Vice Mayor Risch inquired if this would be a remodel of the existing building or a rebuild. Mr. Bell responded it is staff’s understanding that the applicant intends to utilize the existing structure.

Robert Paternoster, Director of Community Development, clarified that the Council action requested tonight is to consider a General Plan amendment, and not to change the General Plan.

Councilmember Walker inquired if staff would be studying what is appropriate as well as the applicant’s request. Director Paternoster responded they would.

Mayor Miller opened the Public Hearing at 8:27 p.m.

Jeff Oberdorfer, Executive Director of First Community Housing, stated they plan to rehabilitate the building as a family housing project. He stated the existing building has a number of facilities that are needed for this project.

Councilmember Fowler inquired if the plan called for a complete remodel of each room or connecting adjacent units. Mr. Oberdorfer responded they plan on combining and remodeling two existing rooms and adding on to the building to create larger units.

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

Councilmember Walker moved, and Councilmember Fowler seconded, to authorize the initiation of the General Plan Amendment Study for the subject site from General Business to High Density Residential. The motion carried unanimously.

Mayor Miller opened the Public Hearing at 8:34 p.m.

Jim Telfer, Executive Director of SVL, thanked the staff for their work and stated they look forward to getting approval from their Board of Directors and returning to Council.

Mayor Miller closed the Public Hearing at 8:35 p.m.

Councilmember Howe moved, and Councilmember Walker seconded, to direct staff to work with SVL to develop a business plan for leadership training in these areas: goal setting, presenting your view to government, impacting city decisions, the legislative process, city services, the Sunnyvale budget system, and current issues facing Sunnyvale. The motion carried unanimously.

There were no comments.

Mayor Miller inquired if any Councilmember had a position on the initiative opposing Regent Ward Connerly’s Racial Classification Initiative. Councilmember Walker stated he opposed higher government involvement in City government. With the general consensus from the Council, Mayor Miller stated the City would take a position of endorsing the opposition to the Connerly Initiative.

There were no comments.

Mayor Miller declared the regular meeting adjourned to the Redevelopment Agency Meeting at 8:36 p.m.

After adjourning the meeting of the Redevelopment Agency, Mayor Miller declared the regular meeting of the City Council adjourned at 8:50 p.m.

Respectfully submitted,
Cathleen McKay, Interim City Clerk