MINUTES
SUNNYVALE CITY COUNCIL 
February 10, 2004

The City Council of the City of Sunnyvale adjourned from a 6:00 p.m. Study Session regarding Future Fiscal Issues Workshop, and met in regular session in the City Council Chambers, 456 West Olive Avenue, Sunnyvale, CA at 7:30 p.m. with Mayor Howe presiding.

Mayor Howe led the salute to the flag.

ROLL CALL

SPECIAL ORDER OF THE DAY

Mayor Howe was joined at the podium by Marty Robin, Environmental Protection Specialist with the Environmental Protection Agency (EPA), who presented the following awards for “The Bay Area’s Best Workplaces for Commuters” to

Malys Neang, Safety and Security Department Coordinator, Juniper Networks

Mike Brodick, Facilities Supervisor, Yahoo! Inc.

Mark Posson, Director of Environmental Safety and Health, Lockheed Martin Space Systems Company

Kristin Lamont, Benefits Manager, Ariba

Andre Gueziec, President and CEO, Triangle Software LCC

John Howe, Mayor, City of Sunnyvale

PUBLIC ANNOUNCEMENTS

Laura Babcock, representing the Sunnyvale Historical Society and Heritage Museum Team, announced they have just passed the $1 million mark on their fund raising campaign to raise $1.6 million.  Their next fund-raiser will be a walkathon on April 17 at 9:30 a.m.  For more information, visit their web site at www.heritageparkmuseum.org.

Councilmember Fowler announced that from February 1 to March 1, the City of Sunnyvale Housing Division will accept applications for the waiting list for the Below Market Rate (BMR) Home Ownership Program for first time homebuyers who want to buy an affordable home in Sunnyvale.  Applications are available on the City web site at , or may be picked up at Sunnyvale City Hall, at the City Library or may be requested by email. 

Mayor Howe announced that he, another member of the City Council, and a Planning Commissioner will attend the Charles Street 100 Neighborhood Association meeting on Tuesday, February 17, as part of a series of City Council outreach meetings.

Mayor Howe announced that he, another member of the City Council, and Planning Commissioner Laura Babcock, will attend the San Miguel Neighborhood Association meeting on Wednesday, February 18, as part of a series of City Council outreach meetings.

Mayor Howe reported that at a Closed Session on February 6, 2004, the Council accepted the resignation of Bob LaSala from the position of City Manager.  The agreement canceling Mr. LaSala’s 1997 employment contract allows him and the City Council to move forward in achieving their goals. The recent agreement represents a positive compromise. The City Council wishes Mr. LaSala well in his future endeavors and there will be no further comments on this matter.

CONSENT CALENDAR

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

Councilmember Hamilton moved, and Councilmember Miller seconded, approval of the Draft Minutes as amended.  The motion carried unanimously with Councilmember Lee absent.

Fiscal Items

Contracts Items

Curtis Black, Superintendent of Parks, availed himself for questions.

Mayor Howe opened the Public Hearing at 7:50 p.m.

Janine Stanick, General Manager of the Ropes Course for the Fremont Union High School Foundation, presented a brief report and distributed documents to the Council.

Mayor Howe closed the Public Hearing at 7:55 p.m.

Councilmember Swegles moved, and Vice Mayor Chu seconded, to approve agreement between City of Sunnyvale and Fremont Union High Schools Foundation and authorize the Acting City Manager to sign on behalf of the City.  The motion carried unanimously with Councilmember Lee absent.

Other Items

CITIZENS TO BE HEARD

Ray Smith, a member of the public, expressed concerns about the Sabercats tent regarding noise and signage.  Mayor Howe stated he would call Mr. Smith to discuss his concerns.

PUBLIC HEARINGS/GENERAL BUSINESS

Karen Davis, Economic Development Manager, presented the staff report. She presented an overview of the history, functions, current and near term projects and activities, and accomplishments.   She stated that the current budget and the budget for 2004/2005 reflect a $100,000 reduction in the Economic Development Program.  Staff recommends that Council approve the Economic Development work plan for FY 2004/05, including budget recommendations, and yearly updates to City Council prior to budget considerations to ensure that the work program is focused on current economic conditions.

Staff responded to questions posed by the Council regarding the allocation of resources to the downtown, mitigation costs, retail hospitality, business retention, grocery store closures, and small business development.

Mayor Howe opened the Public Hearing at 8:50 p.m.

Tom Carrig, a member of the public, suggested that efforts should be directed at bringing in new types of businesses.

Jennifer Paedon, Executive Director of the Moffett Park Business and Transportation Association, spoke about the positive impact of the Economic Development Department has had on their association and expressed their appreciation.

Mark (unintelligible last name), owner of Pearson Automobile Company, spoke in support of the community development strategy and the role of economic development.

Jane Vaughn, a member of the public, spoke in support of Sunnyvale’s business friendly staff.

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

Mayor Howe moved, and Councilmember Miller seconded, to accept the Update on the Economic Development Program, accept the recommendation to shift the program service delivery for FY 2004/05 and FY 2005/06 to reduce the retail and hospitality service delivery plan, decreasing the emphasis on Downtown and focusing remaining resources on El Camino Real; increasing support for redevelopment to reflect the current redevelopment activities; increasing office and industrial service delivery plan to proactively position the City for emerging technology companies, and accept the recommendation that overview of the Economic Development Program be presented to City Council early in each calendar year to determine the appropriate course of action based on the most recent economic outlook, with the following changes: continue outreach efforts to auto dealers, and develop a strategy for the 25 highest sales tax generators in the City.

Councilmember Swegles offered a friendly amendment to include the hotel in  roundtable discussions.  The amendment was accepted.

 The motion carried unanimously with Councilmember Lee absent.

It was the consensus of the Council to continue this item to the February 24, 2004 Council meeting.

Peter Bassett, Legislative Analyst, assisted by Coryn Campbell, Neighborhood and Community Services Manager, presented the staff report.  He stated staff recommends the following positions:

State Ballot Measures

1) Proposition 55

Staff Recommendation: Support

2) Proposition 56

Staff Recommendation: Support

3) Proposition 57

Staff Recommendation: Support

4) Proposition 58

Staff Recommendation: Support

Local Ballot Measures

1) Measure 2

Staff Recommendation: Support

2) Measure A

Staff Recommendation: No Position

Mayor Howe opened the Public Hearing at 9:05 p.m. and, there being no public comments, closed the Public Hearing.

Councilmember Miller moved, and Councilmember Swegles seconded, to accept staff’s recommendations.  The motion carried unanimously with Councilmember Lee absent.

Trudi Ryan, Planning Officer, presented the staff report.  She reported in June 2003, after a year-long study on appropriate land uses and densities in and around the Downtown Specific Plan area, the City Council approved a General Plan Amendment to lower the permitted densities allowed in an area called “the eastern adjacent sites.” The intent of this action is to bring the Zoning District designation into conformance with the Low-Medium Density Residential General Plan Designation.  Ms. Ryan summarized the changes in the new Zoning District.

Mayor Howe opened the Public Hearing at 9:20 p.m.

Donna Carrig, a member of the public, expressed concerns about the zoning for the area east of Carroll Street.  She opined that the entire block should be zoned R-2 and spoke in opposition of a planned townhouse development.

Tom Carrig, a member of the public, opined the municipal code was broken when the project went through, and advocated to have the entire street zoned R-2.  He expressed concern about the perceived encroachment of the downtown area into residential neighborhoods.

Mayor Howe closed the Public Hearing at 9:35 p.m.

Councilmember Hamilton moved, and Councilmember Miller seconded, to continue this item and instruct staff to include the houses on both sides of Washington and the northern end of McKinley between Bayview and Carroll in a study to rezone this area. 

Councilmember Fowler offered a friendly amendment to approve the zoning designation for the specified properties as recommended by staff.  The amendment was accepted.

Councilmember Hamilton amended her motion, and Councilmember Miller seconded, to introduce the Ordinance to amend the Zoning Designation from R-3/PD to R-2/PD for the specified properties, and the remaining areas on Washington on both sides, and  the north side of McKinley, be studied as an R-2/PD.

At the direction of Mayor Howe, the City Clerk read the title of the ordinance as follows:

ORDINANCE NO. 2743-04 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SUNNYVALE AMENDING THE PRECISE ZONING PLAN, ZONING DISTRICTS MAP, TO REZONE “EASTERN ADJACENT SITES” ALONG THE DOWNTOWN SPECIFIC PLAN AREA FROM R-3/PD (MEDIUM DENSITY RESIDENTIAL ZONING DISTRICT) TO R-2/PD (LOW-MEDIUM DENSITY RESIDENTIAL ZONING DISTRICT)

The motion carried unanimously with Councilmember Lee absent.

No action was taken.

No action was taken.

NON-AGENDA ITEMS & COMMENTS

COUNCIL

Councilmember Fowler reported the Valley Transit Authority (VTA) Short Range Transit Plan contained a 10 year operating plan that showed a large revenue shortfall.  He stated Sunnyvale may be faced in the future with transit services that go back to the state it was 25 years ago, and another source of revenue must be found to maintain current services.

Councilmember Swegles invited the public to the Sunnyvale Rotary Club crab feed on February 28 at Saint Ciprians.

Mayor Howe requested a Closed Session on February 17 at 5:00 p.m., and February 24 at 5:30 p.m., in the West Conference Room, regarding Personnel Matters – Acting/Interim City Manager.  Mayor Howe invited Acting City Manager Amy Chan to the February 24 meeting.

STAFF

There were no comments.

ADJOURNMENT

Mayor Howe declared the meeting adjourned at 9:50 p.m. to a Joint Closed Session with the City Council and Redevelopment Agency regarding Update on the Town Center Mall Negotiations Pursuant to Government Code Section 54956.8.  Mayor Howe declared the Joint Closed Session adjourned at 11:22 p.m.

Respectfully submitted,

Susan Ramos, City Clerk