MINUTES
SPECIAL SUNNYVALE CITY COUNCIL MEETING
DECEMBER 18, 2003

The City Council of the City of Sunnyvale met in special session in the City Council Chambers, 456 West Olive Avenue, Sunnyvale, CA at 1:00 p.m. with Mayor Howe presiding.

ROLL CALL

PRESENT:	Mayor John Howe Vice Mayor Dean Chu Councilmember Fred Fowler Councilmember Julia Miller Councilmember Ron Swegles Councilmember Melinda Hamilton Councilmember Otto Lee
Staff Present:	Amy Chan, Acting City Manager Chuck Schwabe, Deputy City Manager Valerie J. Armento, City Attorney Mary Bradley, Director of Finance Mike Maehler, Acting Director of Public Safety Trudi Ryan, Planning Officer Byron Pipkin, Captain, Public Safety Grace Kim, Finance Manager Cheryl Solov, Management Analyst  Pablo Federico, Administrative Analyst Cathleen McKay, Interim City Clerk

PUBLIC ANNOUNCEMENTS 

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

Sunnyvale City offices will be closed Wednesday and Thursday, December 24 and 25, in observance of the Christmas holiday, and Wednesday and Thursday, December 31 and January 1 for the New Year’s holiday. Other Sunnyvale City activities will operate as listed:

• Traffic and parking: All regulations will be enforced except for parking where signs specifically exempt holidays. The holiday exemption will apply only to December 25 and January 1.
• Library: The Library will be closed December 24 – 25 and December 31 – January 1.
• Street sweeping: No street sweeping December 24 – 25 or December 31 – January 1; schedules will be made up between December 18 and January 7.
• Trash collection: No trash collection December 25 or January 1. Thursday routes will be serviced Friday and Friday routes will be serviced Saturday.

Community Center and Senior Center: The Community Center will be closed December 23 – January 4. The Senior Center will be open until 9 p.m. December 22 – 23 and December 29 – 30 for drop-in activities only, and will be closed December 24 – 25 and December 31 – January 1. No classes will be held.

The Sunnyvale Department of Public Works is asking residents to bag the leaves instead, or to put them in their yard waste disposal bins. This will keep the leaves off the street without impeding the work of the street sweepers. Residents with unlimited service waste disposal accounts may leave extra bags beside their bins to be collected. Pick-ups for residents without the unlimited service option are limited to the capacity of the bins.

City Manager Robert LaSala will be away from his office for personal reasons.  During his absence, Assistant City Manager Amy Chan will assume the role of Acting City Manager.

Mayor Howe announced that the December 16 agenda included the appeal for a use permit or a practice tent from the San Jose Sabercats.  Staff discovered the noticing of the neighbors was not accomplished.  Staff recommends the Council hold a new public hearing on this item on January 6, 2004 so that it can be properly noticed before the hearing.  The applicant has been advised of this error and the new hearing. Staff extends its apologies to the City Council, the Sabercats and the community for the error.  Mayor Howe directed that this item be placed on the January 6 City Council agenda.

Vice Mayor Chu announced there was a Closed Session of the City Council held on December 15 on personnel matters of the City Manager and City Attorney, and direction was given at that time.

CONSENT CALENDAR

Jack Rowe, a member of the public, requested that item 1.D. be pulled from the Consent Calendar and considered separately. Vice Mayor Chu moved, and Councilmember Miller seconded, to approve the Consent Calendar with the exception of 1.D.  The motion carried unanimously.

1.A.		Approval of Draft Minutes (December 2, 2003)
1.B.		Approval of Information/Action Items - Council Directions to Staff

Fiscal Items

1.C.	RTC 03-434	List of Claims and Bills Approved for Payment by the City Manager (List Nos. 172, 173 and 174)   Staff Recommendation: Review the attached lists of bills.
1.D.	RTC 03-446	Possible Donation of Storage Shed by Charles Olson to Orchard Heritage Park and Suggested Recognition

Robert Walker, Director of Parks and Recreation, availed himself for questions.

Mayor Howe opened the Public Hearing at 1:10 p.m.

Jack Rowe, a member of the public, distributed a handout to the Council and expressed concerns regarding the aesthetics and location of the proposed shed.

Laura Babcock, representing the Sunnyvale Historical Society, stated they were consulted on the location, size and the need for the shed.  She stated they fully support the location and need for the shed.

Mayor Howe closed the Public Hearing at 1:15 p.m.

Councilmember Miller moved, and Councilmember Hamilton seconded to approve a donation from Charles Olson of a 3-sided storage facility for Orchard Heritage Park similar to that depicted in Attachment A, to be located in accordance with Attachment B, and to be paid for and maintained by orchardist Charlie Olson, and approve the recognition plaque depicted by Attachment C.

Vice Mayor Chu offered a friendly amendment to explore painting the shed to reduce visibility without any cost to the City.  The amendment was accepted.

The motion carried unanimously.

1.E.	RTC 03-445	Authorization for NOVA to Apply for Additional Funding Not to Exceed $10 Million to Serve Dislocated Workers   Staff Recommendation: On behalf of the NOVA seven-city consortium, and in concurrence with the NOVA Workforce Board, adopt approve submission of proposals, not to exceed $10,000,000, to the State of California and/or the U. S. Department of Labor, for dislocated workers funding for the remainder of FY 2002-03 and through FY 2004-05. It is further recommended that the City Manager, or his designee, be authorized to execute the necessary grant agreement(s).
1.F.	RTC 03-442	Adoption of 2003 Repayment Agreement Between the City of Sunnyvale and the Sunnyvale Redevelopment Agency   Staff Recommendation: Adopt the 2003 Repayment Agreement.

Contracts

1.G.	RTC 03-437	Award of Invitation for Bids No. F0308-08 for a Pilot Project to Remove Sediment from the Oxidation Ponds at the Water Pollution Control Plant   Staff Recommendation: Award a contract, in the amount of $265,882, to Synagro West, Inc., to provide oxidation pond sediment removal at the WPCP; and approve a contingency in the amount of $39,882.
1.H.	RTC 03-438	Award of Invitation for Bids No. F0310-25 for City Hall Annex Heating, Ventilating and Air Conditioning System Modifications   Staff Recommendation: Award a contract, in the amount of $607,670, to Thermal Mechanical, Inc., for modifications to the City Hall Annex heating, ventilating and air conditioning system; and approve a project contingency in the amount of $91,151.
1.I.	RTC 03-440	Amendment of Existing Contract for Vehicle Fuel (No. F0312-35)   Staff Recommendation: Amend an existing contract with Malaco International for vehicle fuel by increasing authorized expenditures by an amount not to exceed $100,000.

Other Items

1.J.	RESOLUTION NO. 163-03 RTC 03-433	Authorize Filing of 2004/05 Bicycle Transportation Account Application for Evelyn Avenue Bicycle Lane Project and Adoption of Bicycle Transportation Plan   Staff Recommendation: Approve the attached resolution authorizing the Director of Public Works to submit a grant application for 2004/05 Bicycle Transportation Account Program funding, certifying that matching funds are available and adopting the Bicycle Transportation Plan.   RESOLUTION NO. 163-03 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE AUTHORIZING THE FILING OF APPLICATIONS WITH THE CALIFORNIA DEPARTMENT OF TRANSPORTATION FOR BICYCLE TRANSPORTATION ACCOUNT GRANT FUNDING FOR 2004/2005 FOR BICYCLE PROJECTS; CERTIFYING THE AVAILABILITY OF MATCHING FUNDS; AND ADOPTING THE BICYCLE TRANSPORTATION PLAN
1.K.	RTC 03-432	Approval of Final Map - Tract No. 9532 (SD-03-04) (414 E. Evelyn Avenue)   Staff Recommendation: Approve the Final Map and authorize the execution of the Subdivision Agreement for the subject subdivision located at 414 E. Evelyn Ave. The project consists of 18 single family residential air-space condominium units on a single common lot, belonging to Sub-district 5 of the Downtown Specific Plan.
1.L.	RTC 03-439	Approval of Final Map - Legacy of Sunnyvale - Tract No. 9526   Staff Recommendation: Approve the final map, accept the public street dedication shown on the map, execute the subdivision agreement, and accept the surety bonds for Tract No. 9526.

CITIZENS TO BE HEARD

There were no comments.

PUBLIC HEARINGS/GENERAL BUSINESS 

2.

RTC 03-418

Fiscal Year 2002/2003 Budgetary Year-End Financial Report, Comprehensive Annual Financial Report and Budget Modification No. 19

Nasi Raissian, Finance Manager, assisted by Mary Bradley, Director of Finance, presented the staff report.  She stated this report is intended to present the budgetary Year-end Financial Report and the audited Comprehensive Annual Financial Report (CAFR) of the City for the fiscal year ended June 30, 2003. The budgetary Year-end Financial Report is presented every year in which staff reports the year-end results and provides analysis of the changes between the projected year-end position contained in the May budget and the actual year-end status. These results are calculated on a budgetary basis, rather than the accounting basis used for the Comprehensive Annual Financial Report. Overall the City ended the year in a better financial position from that estimated in the May budget. In May, staff anticipated drawing down on the reserves about $24 million while actual results were a draw down of $22 million. This report is audited by independent auditors, Caporicci and Larson, who have issued an unqualified opinion on the report. In conjunction with the opinion rendered on the CAFR, the independent auditors also issue a Management Letter in which any financial or internal control deficiencies are noted. For the second consecutive year, Sunnyvale had no deficiencies noted in this year’s management letter.  Details were provided via a Powerpoint presentation.

Mayor Howe opened the Public Hearing at 1:30 p.m. and, there being no public comments, closed the Public Hearing.

Councilmember Fowler moved, and Councilmember Swegles seconded, that the Council receive and file the budgetary Year-end Financial Report, the audited Comprehensive Annual Financial Report, and the Management Letter issued by the independent auditors, and approve budget modification No. 19.  The motion carried unanimously.

3.

NO aCTION RTC 03-451

Update on Status of City's Vehicle License Fee Revenue and Budgetary Impact

Mary Bradley, Director of Finance, presented the staff report.  She reviewed the background and potential VLF revenue losses. She reported that the Governor invoked the Deficiency Appropriation and intends to make a payment of VLF to cities and counties of $40 million that she believes is meant for the hardship cities.  Ms. Bradley stated there would be further discussion on what will happen on a short and long term basis as it is a very fluid situation.  She stated it is staff’s intent to discuss this further with the Council on January 6 to review any new information and again on January 13.

The three options are as follows:

One-Time VLF Reduction

Problem/Projected Funding Reduction:

Current 90 day VLF reduction in FY2003/2004

Problem: $1.8 million

Addressed through FY 2002/2003 year-end results

December 2003 VLF reduction

Problem: $500,000

Potential options:

·         Freeze all current position vacancies and approve temporary service reductions

·         Use 5% Service Level Stabilization Reserve

·         Draw down further 20-year Resource Allocation Plan Reserve

Continuing VLF reductions for the balance of FY 2003/2004

Problem: $3.2 million

Potential options:

·         Freeze all current position vacancies and approve temporary service reductions

·         Use 5% Service Level Stabilization Reserve

·         Draw down further 20-year Resource Allocation Plan Reserve

·         Eliminate selected filled positions and approve service reductions

On-Going VLF Reduction

Problem/Projected Funding Reduction:

VLF backfill revenue eliminated altogether

Problem: $5.1 million

Potential Options:

·         Eliminate selected filled positions and approve permanent service reductions

·         Explore wage/benefit adjustments

·         Explore alternative benefit packages for new employees

·         Reexamine new and/or increasing existing taxes

Mayor Howe opened the Public Hearing at 1:44 p.m. and, there being no public comments, closed the Public Hearing.

4.

RTC 03-449

Proposed Public Safety Special Operations Program Restructure (Includes Vice and Narcotics Investigative Services)

Mike Maehler, Acting Director of Public Safety, assisted by Byron Pipkin, Captain, Public Safety, presented the staff report.  He stated the Public Safety Department (DPS) currently manages five programs. DPS staff and staff from the Office of the City Manager (OCM) have restructured these programs into seven recommended, new programs. The City Council has expressed interest in re-examining the department's current approach to vice and narcotics investigative services. Council asked staff to develop proposed outcome measures for vice and narcotics services. City staff has developed two types of outcome measures. One type of measure would be included in a Service Delivery Plan and would be directly affected by the size of the vice and narcotics investigative unit and the number of investigations that are completed. A second type of outcome measure would be included as an Outcome Measure for the Special Operations Program. The anticipated annual performance result for the Program Outcome Measures would be unaffected by either the size or the number of investigations completed by the unit. Council can provide policy direction regarding these measures either by approving the entire proposed Special Operations Program, or by approving only those specific outcome measures that vice and narcotics investigations affects. Changes in funding for vice and narcotics investigative services will be addressed either at a future City Council regular meeting, or through the process of adopting the City's budget for FY 04/05.

Discussion ensued and questions were posed by the Council regarding the types of crimes and how they are investigated, California indexed crimes, the four recommended options, cost benefits, service delivery plan outcome measures, and proactive and reactive investigations.

Acting City Manager Chan suggested that Council provide direction so staff can come back to Council before they finalize the budget.  She further suggested that staff identify the criteria for defining service levels and that the Council not make a final decision today.

 Deputy City Manager Schwabe added that staff is working on plans to present at the January 13 Study Workshop on DPS program restructure, and an example of a formula that shows the relationship between funding and different levels of service at an outcome level.  He stated, with the direction of the Council, they hope to move forward in reallocating resources from the current program to the new program format so it can be included in the budget that is submitted later on in the year.

Mayor Howe opened the Public Hearing at 2:27 p.m. and, there being no public comments, closed the Public Hearing.

Councilmember Swegl2s, moved, and Mayor Howe seconded, to approve Option Two:

Required Funding:

• Positions 2 PSO positions
• Products 175 investigations
• Work Hours 3,842 hours (3600 ST; 242 OT)
• Costs $355,307

SDP Outcome Measure:

The ratio between proactive/reactive vice and narcotics investigations will be maintained at 25% proactive/75% reactive investigations.

Provide preliminary policy direction regarding the ratio between proactive and reactive vice and narcotics investigations. Final approval and funding will be provided through the process of adopting the City's budget for FY 04/05. Approve the proposed program outcome statement, program outcome measures, and weightings for the Special Operations Program as described in this report.

Councilmember Fowler offered a friendly amendment to choose Option No. 3.  The amendment was not accepted.

Councilmember Fowler offered a friendly amendment to direct staff to come back to Council on January 13 with service delivery level plan detail to the balance of the Department of Public Safety programs.  The amendment was accepted.

In response to Mayor Howe, Deputy City Manager Chuck Schwabe stated staff had not planned to have this material available for the January 13 meeting, but could provide rough estimates of the total dollar cost for the service delivery plans for the six remaining programs.

Acting City Manager Chan requested time to confer with staff and delay the date until early February.

Councilmember Fowler offered to work with the Acting City Manager and for the Council to appoint an ad hoc subcommittee.

Mayor Howe offered a friendly amendment to delay staff coming back with service delivery level plan detail to the balance of the Department of Public Safety programs until the Acting City Manager has time to review the proposal.  Staff to come back to Council by the end of February.  The amendment was accepted.

Vice Mayor Chu offered a friendly amendment to ask for clarification on statistics regarding the four outcome measures that were mentioned in the report.  Staff responded they have this information now and were directed by Mayor Howe to distribute them to the Council.  The amendment was accepted.

Councilmember Lee offered a friendly amendment to recommend changing the ratio to at least 50% proactive and 50% reactive.  The amendment was accepted.

Vice Mayor Chu moved for a substitute motion, and Councilmember Fowler seconded, to increase the proactive/reactive ratio to 60% proactive/40% reactive as stated in Option Three.

• Positions 1 Lieutenant position and 2 PSO positions
• Products 275 investigations
• Work Hours 5,642 hours (5400 ST; 242 OT)
• Costs $545,123

SDP Outcome Measure:

The ratio between proactive/reactive vice and narcotics investigations will be maintained at 60% proactive/40% reactive investigations.

The motion carried with Mayor Howe and Councilmembers Miller and Swegles dissenting.

Mayor Howe clarified that the substitute motion includes the friendly amendments that were accepted under the main motion.

Mayor Howe adjourned the meeting for a recess at 2:55 p.m. and Vice Mayor Chu reconvened the meeting at 3:18 p.m.

5.

RTC 03-450

Continuation of Supplemental Law Enforcement Funding and Budget Modification No. 15

Grace Kim, Finance Manager, assisted by Mike Maehler, Acting Director of Public Safety, presented the staff report. She reported the State Legislature has appropriated $100 million for FY 2003/2004 for the Community Oriented Police Services/Supplemental Law Enforcement Services (COPS/SLES) program. Sunnyvale has received an allocation of $197,376. There is a continued decline of grant revenues received from both the COPS/SLES and Bureau of Justice Assistance/Local Law Enforcement Block Grant (BJA/LLEBG) programs. Together, these awards are budgeted to support a Patrol Watch Commander and one Internal Affairs Investigator. The current year allocation from these funding sources is insufficient to pay for these positions. Furthermore, it is anticipated that revenues from both programs will decline further thus perpetuating the current funding gap into future years. Staff recommends Council appropriate the full amount awarded from the COPS/SLES program to the Supplemental Law Enforcement Services Sub-Fund. Acting Public Director Maehler reviewed the staff recommended alternatives.

Director Maehler responded to questions posed by Council regarding grant funding uses, vacant public safety positions, long and short term solutions, and the elimination of one EMS position.

Vice Mayor Chu opened the Public Hearing at 3:26 p.m., and there being no comments, closed the Public Hearing.

Councilmember Fowler moved, and Councilmember Swegles seconded, to approve Budget Modification No. 15 to appropriate the grant amount of $197,376 from the COPS/SLES program into the City’s Supplemental Law Enforcement Sub-Fund; and direct DPS to hold the EMS 1 position vacant and bring back the issue of the EMS 1 position when Council considers the budget.

Mayor Howe moved for a formal amendment, and Vice Mayor Chu seconded, to approve Budget Modification No. 15 to appropriate the grant amount of $197,376 from the COPS/SLES program into the City’s Supplemental Law Enforcement Sub-Fund; and re-appropriate $82,348 from the Fire Services Program to the Public Safety Administrative and Technical Services Program.  The motion failed with Councilmembers Fowler, Hamilton, Lee, Miller and Swegles dissenting.

The original motion carried with Mayor Howe and Vice Mayor Chu dissenting and Councilmember Miller absent.

6.

rtc 03-447

Adoption of Performance Audit Charter, Work plan and Workflow Processes

Mary Bradley, Director of Finance, assisted by Cheryl Solov, Management Analyst, and Pablo Federico, Administrative Analyst, presented the staff report.  She stated the proposed charter sets forth the mission and scope of work of the performance audit function, as well as the accountability, responsibility and authority of performance audit staff. The work plan process employs risk assessment tools and management input to develop a plan for audits for the coming year that would then be presented to Council for review and approval. She stated the report contains the Proposed Performance Audit Charter, the Work Plan Development Process, the Performance Audit Workshop Process and the Current performance Audit Work Plan.  Ms. Solov reviewed the proposed performance audit charter and Mr. Federico reviewed the work plan development process and the proposed performance audit workflow

Vice Mayor Chu opened the Public Hearing at 3:40 p.m. and, there being no public comments, closed the Public Hearing.

Councilmember Fowler moved, and Mayor Howe seconded, to adopt the proposed Charter, Workflow Processes, and Work Plan as depicted in attachments A, B, C and D.  The motion carried unanimously with Councilmember Miller absent.

NON-AGENDA ITEMS & COMMENTS

COUNCIL

Councilmember Hamilton presented Interim City Clerk McKay with a card from the Council in recognition of her service.

STAFF

There were no comments.

ADJOURNMENT TO REDEVELOPMENT AGENCY

Vice Mayor Chu declared the regular meeting adjourned to the Redevelopment Agency Meeting at 3:45 p.m.

ADJOURNMENT

After adjourning the meeting of the Redevelopment Agency and the Financing Authority, and the continuation of the Study Issues Workshop, Vice Mayor Chu declared the regular meeting of the City Council adjourned at 4:05 p.m.

Respectfully submitted,

Donna Biles, Deputy City Clerk