MINUTES
SUNNYVALE
CITY COUNCIL

 AUGUST 17, 2004

7:30 P.M.

 

 

The City Council of the City of Sunnyvale adjourned from a 6:30 p.m. Closed Session regarding Personnel Matters: Evaluation - City Attorney Pursuant to Government Code 54957,and met in regular session in the City Council Chambers, 456 West Olive Avenue, Sunnyvale, California at 7:30 p.m., with Mayor Howe presiding.

 

SALUTE TO THE FLAG

 

Mayor Howe led the salute to the flag.

 

ROLL CALL

         

PRESENT:

Mayor Howe

Vice Mayor Dean Chu

Councilmember Fred Fowler

Councilmember Julia Miller

Councilmember Ron Swegles

Councilmember Melinda Hamilton

Councilmember Otto Lee

Staff Present:

Amy Chan, City Manager

Valerie J. Armento, City Attorney

Chuck Schwabe, Deputy City Manager

Robert Paternoster, Community Development Director

Mary Bradley, Director of Finance

Trudi Ryan, Planning Officer

Jack Witthaus, Transportation and Traffic Manager

Kelly Diekmann, Project Planner

Susan Ramos, City Clerk

 

PUBLIC ANNOUNCEMENTS

 

Vice Mayor Chu announced the Council met in Closed Session regarding Personnel Matters: Evaluation - City Attorney Pursuant to Government Code 54957.  Direction was given and no action was taken.

 

CONSENT CALENDAR

 

Mayor Howe requested item 1.A be pulled from the Consent Calendar and considered separately.  Vice Mayor Chu moved, and Councilmember Swegles seconded, approval of the Consent Calendar with exception of item 1.A.  The motion carried unanimously.

 

1.A

 

Approval of Draft Minutes (Special Meeting of August 10, 2004 and Regular Meeting of August 10, 2004)

 

Mayor Howe moved, and Councilmember Miller seconded, approval of the draft minutes as amended as noted below. 

 

“Councilmember Miller offered a friendly amendment to have the re-design of the project, including the replacement of wood burning fireplaces, brought back to the Council for approval.  The amendment was not accepted.”

 

“Mayor Howe offered to sponsor, and Councilmember Miller co-sponsored, a study issue for a proposed memorial in Washington Park or the Downtown Plaza to honor the military and Sunnyvale police officers that have died in the line of duty.”

 

The motion carried unanimously.

 

1.B.

 

 

Approval of Information/Action Items - Council Directions to Staff

Fiscal Items

 

1.C.

RTC 04-289

List of Claims and Bills Approved for Payment by the City Manager (List No. 209)

 

Staff Recommendation: Review the attached list of bills.

 

1.D.

RTC 04-290

Investment and Cash Management Policy Update for Fiscal Year 2004/2005

 

Staff Recommendation: Adopt the attached Investment Policy as presented.

 

Other Items

1.E.

ORDINANCE

NO. 2763-04

Adoption of an Ordinance Amending the Precise Zoning Plan, Zoning Districts Map, to Rezone Certain Property Located at 1156 and 1160 North Fair Oaks Avenue From R-4/PD (High Density Residential/Planned Development) to C-2/PD (Highway Business/Planned Development) Zoning District

 

CITIZENS TO BE HEARD

 

There were no comments.

 

PUBLIC HEARINGS/GENERAL BUSINESS

 

2.

rtc 04-295

 

Special Development Permit to Redevelop the Town Center Mall to Consider the Site Plan, Design and Use Approvals to Allow the Construction of Up to 1,000,000 Square Feet of Commercial Space, 275,000 Square Feet of Office Space, and 292 Housing Units

 

Kelly Diekmann, Project Planner, assisted by Trudi Ryan, Planning Officer, presented the staff report.

 

Staff responded to questions posed by the Council regarding the cinema, parking, reduction of medical use, the McKinley gateway, Macy’s façade improvement along Washington Avenue, the dynamic parking supply system, interior designs, external elevations, the REA (Reciprocal Easement Agreement), the project coming back for Council consideration, open space, the parking deck, the traffic signal on Washington Avenue and Murphy Avenue, the flow of traffic, ownership opportunities approval and parking requirements, office space restrictions, the 15% trip reduction TDM (Transportation Demand Management), parking times in the garages, maintenance of the parking garage, the discrepancy between the gross demand and the total with use factor parking spaces, landscaping plans and landscape architects, and if the gateways are being consider as part of the public art.

 

Mayor Howe opened the Public Hearing at 9:00 p.m.

 

Ron Pfohl, Forum Group/Applicant, spoke about the challenges of the plan, the history of the proposed development and articulated improvements that were made to the plan over the last two years to meet community demands.  He responded to questions from the Council regarding the economic viability, financial commitment, the construction timeframe, the Redwood Plaza uses, the six kiosks, hours for movie theaters and the additional costs of underground parking, the minimum number of seats in the theater and the number of screens, and the location of the theater.

 

Jane Vaughn, of Menlo Equities and Project Planner, spoke to concerns regarding parking, the TDM program, medical space, restrictions on space, the Macy’s façade, connections to Murphy Avenue and the gateway.  She stated the Mall will contribute over $2 million in sales tax to the City in the first year and the public parking is being built, financed and maintained by the developer but owned by the City.  She expressed concern about the artwork requirements and the traffic signal on Washington Avenue.  She responded to questions posed by the Council regarding the stairway on Washington Avenue, traffic lights on Murphy Avenue, medical space parking, the Macy’s façade, public improvement financing, top deck parking coverage, BPAC (Bicycle and Pedestrian Advisory Committee) review of pedestrian and bike lanes, and the artwork.

 

Tom Paradise, of Standard Pacific Homes, residential development team, responded to questions posed by the Council regarding the size and pricing for housing and approval of restrictions on rental units, and street grids.

 

Mark Calvert, of Cascade Capital Group, responded to questions from the Council regarding the Century Theater lease.

 

Joe Rayborne, a member of the public, stated he is supportive of the development and the architecture.

 

Nancy Tivol, a member of the public, spoke in support of the project.

 

Laura Babcock, of the Sunnyvale Planning Commission, spoke to concerns about medical space parking and the Macy’s façade.

 

Glen LaBarber, a member of the public, spoke in support of the plan and advocated for a smooth transition to the new development with existing buildings.

 

Paul Jay Reed, President of the Friends of Sunnyvale, spoke in opposition to the plan regarding parking and theater traffic, the town square and the density of the project.

 

Victoria Templeton, a member of the public, spoke in support of the project and would like the addition of a small enclosed children’s area.

 

Allen Barker, a member of the public, spoke in support of the project and the jobs that will be created.  He expressed concerns relating to underground parking and the timeframe for construction.

 

Donna Smith, with the Sunnyvale Chamber of Commerce, spoke in support of the plan and expressed concern for the existing businesses.

 

Jonathon Thalberg, a member of the public, expressed concerns about the character of Murphy Avenue remaining, and linking the historic district to the new development. (Mr. Thalberg provided a copy of his notes and they are attached to the minutes.  8-17-07 min att)

 

Elizabeth Ann Cordoza, a member of the public, expressed concern regarding the elevations of the new development, the architecture, traffic, office space and parking.

 

Dick Stein, a member of the public, expressed concern on the density of the development, the increase in office space, housing units, the size of the cinema and angled parking.

 

Neil Strothers, CEO of the Building and Construction Trades Council for Santa Clara and San Benito Counties, advocated for the Council to look at the bigger picture including tax revenue, housing and stated he supports the project.

 

Andy Malony, a member of the public, spoke in opposition of the project regarding the return on investment and the complexity of the project.

 

Ray Johnson, a member of the public, spoke in opposition of the plan and opined that the citizens do not want this kind of development, and encouraged the Council to deny the application.

 

Cynthia Johnson, a member of the public, questioned the objective of the project, and advocated for synergy between the Mall, Murphy Street and Town and County Shopping Center.

 

Arthur Schwartz, a member of the public, spoke in support of the project and expressed concerns related to traffic signals, parking and the kiosks.

 

Jennifer Paedon, of the Moffett Parks Business and Transportation Association, spoke in support of the project and encouraged the Council to approve the plan.

 

Joe Antuzzi, President of the Sunnyvale Downtown Association, stated that he has the signatures of 100 Sunnyvale merchants that support the following changes: Open space in front of Macy’s, a parking garage and pedestrian exit and entrance at the corner of Washington and Murphy.  He requested fifteen feet at the corner for an attractive pedestrian entrance and exit to the historic downtown, and that there is adequate parking for all downtown and not just the mall.

 

Mike Bangs, a member of the Board of Directors of the Sunnyvale Chamber of Commerce, spoke in support of the project and stated he believes there is a strong team for this project.

 

Arley Marley, Chair of Board of the Sunnyvale Chamber of Commerce, spoke in support of the Downtown Redevelopment Plan and advocated for the project to move forward.  He stated the success of the Mall should flow to the Murphy street businesses.

 

Ron Pardini, Executive Director of the Urban Village Farmers Market Association, advocated for the integration of the Mall and Murphy Street and stated he supports the project.

 

Bo Chang, a member of the project, spoke in support of the increased housing units.

 

Harriet Rowe, a member of the public, advocated for the McKinley Gateway, and expressed concern regarding youth gathering. 

 

Robert Schwienson, a member of the public, spoke in support of the plan with the exception of the theaters.  He opined that Washington Avenue be made a one way street.

 

Mike Klein, a member of the public, spoke in support of the project and felt the project would bring increased business to existing businesses.

 

Chris Kendall, a member of the public, advocated for the Council to assist existing businesses that need support.

 

Thom Mayer, a member of the public, stated he supports the plan but would like modifications to parking, the traffic circle, and advocated for parallel parking.  He requested the Bicycle and Pedestrian plan to come before the Bicycle and Pedestrian Advisory Committee.

 

Jan Vaughn, of Menlo Equities, addressed concerns relating to linking Murphy Street to the development and stated they are exploring gateways and signage. She further addressed concerns relating to the theater and parking.  She responded to questions posed by the Council regarding bicycle parking and exits on Washington

 

Bill Brown, Managing Member of the Forum Group, addressed concerns related to the theater, parking, security, underground parking, and Macy’s.

 

Mayor Howe commented that if any members of the public would like to submit written comments for the record, they could do so.

 

Mayor Howe closed the Public Hearing at 11:35 p.m.

 

At this juncture, Mayor Howe declared a recess at 12:20 a.m. and reconvened at 12:30 a.m.

 

Councilmember Hamilton moved, and Councilmember Fowler seconded, to approve Alternative 2, to adopt the Mitigated Negative Declaration and approve the Special Development Permit as recommended by the Planning Commission, excepting COA#S-1.1, (combination parking) COA#A-6.6 (Washington exit), COA#A-17 (off-site improvements), and COA#A-5.15 (McKinley Gateway). In addition, remove Condition of Approval A.6.2 (Provide elevation for Macy’s façade improvements along Washington Avenue), limit the Cinema complex to 2400 seats or less and locate it either at street level, or at least a lobby at street level with the theater on the second story, of the 5600 parking spaces provided, put two of the parking garages completely underground, and all the final external designs elements be reviewed by the Planning Commission. 

 

Councilmember Fowler stated he could not support the reduction in theater size and the underground parking amendment. He withdrew his second.  Councilmember Miller seconded the motion.

 

Councilmember Miller offered a friendly amendment for the art and landscaping designs to come back to the Council for final approval.  The amendment was not accepted.

 

Councilmember Miller offered a friendly amendment for the Bicycle and Pedestrian Plan to go through the BPAC for review and that the Council receive copies of the CC&R’s for the housing to limit the number of owner occupied housing units allowed, that item G9, additional Medical Office, may be permitted up to 40% based on available parking, and remove item A5-15 (Provide an additional “Gateway” for McKinley entrance from Mathilda Avenue).  The amendment was accepted.

 

Councilmember Miller offered a friendly amendment to remove item S16 (Provide infrastructure to construct a traffic signal in the future at the new Murphy Avenue extension intersection with Iowa Avenue).  The amendment was not accepted.

 

Councilmember Lee offered a friendly amendment to encourage a children’s area into this project.  The amendment was accepted.

 

The motion failed with Mayor Howe, Vice Mayor Chu, and Councilmembers Fowler and Swegles dissenting.

 

Councilmember Lee moved, and Councilmember Hamilton seconded, to approve Alternative 2, to adopt the Mitigated Negative Declaration and approve the Special Development Permit as recommended by the Planning Commission, excepting COA#S-1.1, (combination parking) COA#A-6.6 (Washington exit), COA#A-17 (off-site improvements), and COA#A-5.15 (McKinley Gateway). In addition, remove Condition of Approval A.6.2 (Provide elevation for Macy’s façade improvements along Washington Avenue), limit the Cinema complex to 2400 seats or less and locate it either at street level, or at least a lobby at street level with the theater on the second story, and all the final external designs elements be reviewed by the Planning Commission.  The motion included the accepted friendly amendments from the previous motion.

 

Councilmember Fowler offered a friendly amendment to leave the Cinema complex at 2950 seats and leave the lobby and the location of the theaters as applied for.  The friendly amendment was accepted to leave the Cinema complex at 2950 seats but not accept the portion of the amendment regarding leaving the lobby and location of the theaters as applied for.

 

The motion failed with Mayor Howe, Vice Mayor Chu and Councilmembers Fowler and Swegles dissenting.

 

Vice Mayor Chu moved to approve Alternative 3, to approve the negative mitigated declaration and approve the special development permit with the following modifications to the conditions of approval listed in the staff report:

1.     Condition A.6.6. (Revise condition) Developer shall work with staff on a design to move the exit staircase from the garage closer to Washington Avenue.

2.     Condition A17 (Revise condition) Work with downtown merchants to develop design for streetscape elements for existing and new Murphy Avenue, but do not require developer to pay for the improvements

3.     Condition A.5.15 (Delete Mckinley gateway)

4.     Condition G9C.2 (Revise condition) Allow up to 40% medical office, based on available parking.

5.     Condition G19a (Revise condition) Allow bonding for artwork to be phased with the development

6.     Condition S1.1 (Accept condition for parallel and angled parking)

7.     New condition: Encourage the provision of a children’s area

8.     Require Bicycle and Pedestrian Advisory Committee input on the pedestrian and bicycle parking plans

9.     New condition: Provide a copy of the CC&Rs to the City Council.

 

Councilmember Swegles seconded with a friendly amendment  to revise Condition A6.2 to work with Macy’s to develop elevations for façade improvements and encourage their installation.  The amendment was accepted.

 

Councilmember Miller offered a friendly amendment to refer landscaping and artwork plans to City Council.  The amendment was accepted.

 

Councilmember Fowler offered a friendly amendment to include all of the revised conditions outlined in the staff report except Condition G19a which was modified in the main motion.  The amendment was accepted.

 

The motion carried with Councilmember Hamilton dissenting.

 

At this juncture, Mayor Howe declared a recess at 1:35 a.m. and reconvened at 1:45 a.m.

 

3.

ORDINANCE

NO. 2761-04

Adoption of an Ordinance Amending the Precise Zoning Plan, Zoning Districts Map, to Rezone Certain Property Located at 635 E. El Camino Real From C-2/PD (Highway Business/Planned Development) to R-3/ECR (Medium Density Residential/El Camino Real Precise Plan) Zoning District

 

Mayor Howe opened the Public Hearing at 1:46 a.m. and, there being no public comments, closed the Public Hearing.

 

Councilmember Miller moved, and Councilmember Lee seconded, adoption of the Ordinance as presented.  The motion carried with Mayor Howe and Councilmember Hamilton dissenting.

 

4.

ORDINANCE

NO. 2762-04

Adoption of an Ordinance Amending the Precise Zoning Plan, Zoning Districts Map, to Rezone Certain Property Located a 127 N. Sunnyvale Avenue From R-2 (Low Medium Density Residential) to R-2/PD (Low Medium Density Residential/Planned Development) Zoning District

 

Mayor Howe opened the Public Hearing at 1:47 a.m. and, there being no public comments, closed the Public Hearing.

 

Councilmember Fowler moved, and Councilmember Swegles seconded, adoption of the Ordinance as presented.  The motion carried unanimously.

 

NON-AGENDA ITEMS & COMMENTS

 

COUNCIL

Councilmember Hamilton offered to sponsor a study issue for the feasibility of an automated parking system in the Downtown, but not rank it above the line until the Town Center Mall project is completed.  Vice Mayor Chu offered to co-sponsor the study issue.

 

Councilmember Swegles announced the Rotary and Chamber of Commerce are having a golf tournament on September 2.  If interested contact any Rotary or Chamber member.

 

Councilmember Fowler requested a report on the street lighting conditions in the Town and Country Center and what options or alternatives are available for improvement.

 

STAFF

 

There were no comments.

 

ADJOURNMENT


Mayor Howe declared the regular meeting adjourned to a joint meeting with the Redevelopment Agency at
1:52 a.m.

 

JOINT SESSION WITH REDEVELOPMENT AGENCY

 

Mayor Howe polled the Council to determine whether to continue Item 5, and it was the consensus of the majority of the Council to continue the meeting.

 

5.

RESOLUTIONS  (2) NOS. 135-04, 102-04 RDA

RTC 04-294

rda 04-009

 

Disposition and Development Agreement and Other Related Agreements for Town Center Mall Redevelopment

(City Council: Resolution)

(Redevelopment Agency: Resolution)

 

Robert Paternoster, Director of Community Development/Agency Secretary, presented the staff report.

 

Staff responded to questions posed by the Council/Redevelopment Agency regarding identification of a first class facility, the REA document, payments to the developer for the garage, definition of high quality exterior design materials, the construction mitigation program, explanation of public parking and City lease, purchase of the parking structure, the City’s role in the parking business, potential default of the developer, policing of the project, utility responsibility, if all of the Council direction had been incorporated into the document, cumulative calculation and start date of annual payment, net tax increment interest payments, and definition of completion of the project.

 

Vice Mayor/Vice Chair Chu opened the Public Hearing at 2:55 a.m.

 

Mark Calvert, of Cascade Capital Group, stated that even if the project is approved tonight, there are still other hurdles to clear. He provided a handout to the Council and staff with seven proposed amendments to the DDA (copy available at the City Clerks office).  He responded to questions from the Council regarding the DDA and proposed amendments, and the amount of dollars and distribution in the Cap.

 

It was noted that staff had not had the opportunity to review the proposed amendments to the DDA before the Council meeting.

 

Mayor/Chair Howe declared a recess at 3:30 p.m. and reconvened at 3:40 a.m. for staff to review the proposed amendments to the DDA.

 

Staff reported to Council their recommended changes to the Proposed Amendments to the Disposition and Development Agreement.

 

Bill Brown, of the Forum Group, responded to staff recommendations and questions from the Council regarding changes to the proposed amendments to the DDA.

 

Ray Johnson, a member of the public, spoke in opposition of the Development Agreement and the disposition of the revenue back to the City.

 

Allen Barker, a member of the public, expressed concern on the financial effect of the proposed Development Agreement.

 

Mayor/Chair Howe closed the Public Hearing at 4:10 a.m.

 

Councilmember/Agency Member Fowler moved, and Councilmember/Agency Member Lee approved Alternative 1, to adopt the Resolution to approve the Disposition and Development and Owner Participation Agreement with Fourth Quarter Properties XLVIII, LLC with the following modifications based on the developers proposed seven amendments to the DDA presented to Council tonight and staff’s recommendation to these amendments:

1.    Change date in Sections 2.01(a) and (b) from September 30 to October 30, 2004; change date in Section 2.03 from December 31, 2004 to January 30, 2005; and allow the City Manager to extend the dates for cause up to 90 days.

2.    Simplify the calculation of the Annual Payment in Section 8.02 to eliminate the cumulative aspect and to increase the annual cap as necessary to result in a cost-neutral change.

3.    Modify Section 8.01 to make the first payment to developer upon completion of the project, with completion defined as “certificate of occupancy for residential buildings and building permit final for shell of retail and office buildings”.

4.     Modify Section 6.03(iv) to allow the City Manager to increase the 30-day period to up to a 90-day period for cause

5.    Amend Section 3.07 to change the required equity from 20% to 15%.

 

Vice Mayor Chu stated he will vote no because of the lateness of the hour and the dollars involved, and requested this item be continued to next Tuesday.

 

Mayor Howe stated he will vote no because of the lateness of the hour and the complexity, and stated he had recommended earlier to continue this item.

 

The motion carried with Mayor/Chair Howe and Vice Mayor/Vice Chair Chu dissenting, and Councilmember/Agency Member Miller abstaining because of the lateness of the hour, the complexity of the document, the seven amendments  that just came to the attention of the Council and staff,  and staff and the Council are exhausted.

 

RESOLUTION NO. 135-04 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENTS ON BEHALF OF THE CITY IN CONNECTION WITH THE REDEVELOPMENT OF THE TOWN CENTER MALL, APPROVING THE DISPOSITION AND DEVELOPMENT AND OWNER PARTICIPATION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SUNNYVALE AND THE FOURTH QUARTER PROPERTIES XLVIII IN CONNECTION WITH TOWN CENTER MALL MAKING CERTAIN FINDINGS, AND AUTHORIZING THE CITY MANAGER TO TAKE ACTIONS NECESSARY TO IMPLEMENT THE AUTHORIZED AGREEMENTS

 

RESOLUTION NO. 102-04 RDA         A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SUNNYVALE AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AGREEMENTS ON BEHALF OF THE AGENCY IN CONNECTION WITH THE REDEVELOPMENT OF THE TOWN CENTER MALL, APPROVING THE DISPOSITION AND DEVELOPMENT AND OWNER PARTICIPATION AGREEMENT BETWEEN THE AGENCY AND FOURTH QUARTER PROPERTIES XLVIII IN CONNECTION WITH TOWN CENTER MALL, MAKING CERTAIN FINDINGS, AND AUTHORIZING THE EXECUTIVE DIRECTOR TO TAKE ACTIONS NECESSARY TO IMPLEMENT THE AUTHORIZED AGREEMENTS

 

ADJOURNMENT OF CITY COUNCIL

 

Mayor Howe declared the meeting adjourned at 4:20 a.m. and reconvened to the Redevelopment Agency.

 

Respectfully submitted,

Susan Ramos, City Clerk