The City Council of the City of Sunnyvale adjourned from a 5:30 p.m. Study Session regarding Intergovernmental Relations Update, and  met in regular session in the City Council Chambers, 456 West Olive Avenue, Sunnyvale, California at 7:00 p.m., with Mayor Chu presiding.

Mayor Chu led the salute to the flag.

PRESENT:

Mayor Dean J. Chu

Vice Mayor Ron Swegles

Councilmember Fred Fowler

Councilmember Julia Miller

Councilmember John Howe

Councilmember Melinda Hamilton

Councilmember Otto Lee

ABSENT:

None

STAFF PRESENT:

Amy Chan, City Manager

Robert Walker, Assistant City Manager

David Kahn, City Attorney

Robert Paternoster, Director of Community Development

Trudi Ryan, Planning Officer

Mary Bradley, Director of Finance

Grace Kim, Finance Manager

Pete Gonda, Senior Management Analyst

Curtis Black, Interim Parks & Recreation Director

Nancy Steward, Superintendent of Arts & Recreation

Deborah Barrow, Director of Libraries

Christine Doxtad, Supervising Librarian

Katherine Bradshaw Chappelear, City Clerk

• The California State Budget – Elaine K. Alquist, State Senator (District  13)

Senator Alquist indicated she chairs the Senate Public Safety Committee, Aging and Long Term Care Committee, Economic Competitiveness and Emerging Technologies Select Committee.  Senator Alquist indicated she also sits on the Education Committee, Health Committee, Human Services, and Revenue & Taxation Committee, Stem Cell Research Oversight Select Committee, Select Committee on Defense & Aerospace and a Select Committee on School Safety.  Senator Alquist highlighted the various issues before the various committees she serves on.

Senator Alquist highlighted the State Budget increases recommended by the Governor and his plan on increasing, balancing of and spending cap for the state budget.

Senator Alquist concluded by noting she will be holding a hearing at the Sunnyvale Senior Center on July 20^th from 9:30 to 12:30 for the Senate Subcommittee on Aging and Long-Term care to address the declining quality of nursing home facilities within the State and how to be more accountable on how the money is spent to care for the elderly and disabled.

None received.

Councilmember Lee announced the City of Sunnyvale will host a Citywide Workshop focusing on community participation and involvement in government Saturday, June 18, 2005 from 9:00 a.m. to 12:00 Noon in the Sunnyvale Senior Center.  Councilmember Lee indicated space is limited and RSVP’s are encouraged.  The public may contact Michelle Zahraie at (408) 730-7489 for more information or to register for the workshop.

Councilmember Hamilton indicated the California Highway Patrol, Lucille Packard Children’s Hospital, and the VW dealership on El Camino installs car seats for parents as a free service.  She thanked Sarah Kiefer and Burt Moreno at the VW Dealership for their efforts and noted they had attended a 4-day class to learn to properly install car seats in vehicles.  Councilmember Hamilton noted the public can find a nearby location by going to the website of www.seatcheck.org

Councilmember Hamilton also reminded the public that they should not give out personal information for credit cards to phone solicitors due to potential identity theft.

Councilmember Miller indicated that she and Councilmember Hamilton had attended the dedication of the Merry Ann Semas Library at Ellis School, where Ms Semas spent 49 years.

Councilmember Miller announced the City of Sunnyvale received an honorary mention for the 2005 Clean Air Award at the American Lung Association meeting for their alternate fuel project.

Phyllis Fowler, Sunnyvale School Board, announced an informational meeting will be held at 819 West Iowa Avenue on Tuesday, June 14, 2005 at 7:00 p.m. for those interested in running for two seats on the School Board.  The public may contact Ms. Fowler at (408) 747-1454 for more information.

Jill Jackson, member of the public announced she was representing the American Cancer Society and the Relay for Life Run will be held in Sunnyvale for the third year on July 9^th and 10^th at Columbia Park starting at 10:00 a.m. on July 9^th and it is a 24-hour event.  Ms Jackson invited everyone to come out and participate in the event.

Margaret Lawson, member of the public, announced Dinner at the Dump “Serving Up a Trashy Affair” will be held on Saturday June 25^th at 5:00 p.m.  The dinner will be held at the Corporation Yard of Specialty Solid Waste and Recycling.  Ms. Lawson noted the tickets are available for purchase from her this evening or the public may call 565-9900 for more information or to purchase tickets prior to the event.

Dave Whittum, member of the public, announced the next Heritage District Neighborhood Association meeting will be the first Friday in July, at 7:00 p.m. at the Murphy Park Building. Mr. Whittum announced if you have agenda items for discussion at the meeting you may e-mail those to hrtgdist@netscape.net.  Mr. Whittum indicated the boundaries for the Heritage District Neighborhood are: north of Old San Francisco Road, south of California, east of Mathilda and west of Fair Oaks. 

An unnamed member of the public asked anyone who believes in their humanity and soul to join him at the Library. He invited the public to sign his petition to fight against civil rights violations in the City of Sunnyvale. 

Mayor Chu introduced Katherine Chappelear, City Clerk, who is replacing Susan Ramos who accepted a position in Southern California to be with her family.

Councilmember Miller announced there were revised Minutes for Item 1.A.

Vice-Mayor Swegles moved and Councilmember Howe seconded to approve the consent calendar in its entirely including the amended Minutes of May 17, 2005.  Motion carried unanimously.

1.A.

MOTION

Approval of Draft Minutes (Regular Meeting of May 17, 2005 and Special Meeting of May 23, 2005)

1.B.

MOTION

Approval of Information/Action Items – Council Direction to Staff

1.C.

MOTION

RTC 05-158

List of Claims and Bills Approved for Payment by the City Manager (List No. 248 & 249)

Staff Recommendation: Review list of bills.

1.D.

RESOLUTION

RTC 05-161

Resolution Setting a Public Hearing to Cause Charges for Non-Payment of Utility Services and Non-Payment for the Cost of Abatement of Public Nuisances to be Placed on the FY 2005/2006 Tax Roll

Staff Recommendation: Alternative No. 1 – Adopt a resolution setting a public hearing to consider causing charges for non-payment of utility services and non-payment for the cost of abatement of public nuisances to be placed on the FY 2005/2006 tax roll for the regular meeting of the Sunnyvale City Council on June 21, 2005 at 7:00 p.m.

1.E.

RESOLUTION

RTC 05-162

Resolution Setting a Public Hearing Establishing the FY 2005/2006 Wastewater Assessment Charges for Properties Located Outside the City

Staff Recommendation: Alternative No. 1 – Adopt a resolution setting a public hearing for June 21, 2005 establishing the FY 2005/2006 wastewater assessment charges for properties located outside the City.

1.F.

MOTION

RTC 05-155

Authorization to Allocate FY 2004-2005 State Public Library Fund Monies, Reallocate Existing State Public Library Fund Monies, and Approve Budget Modification No. 31

Staff Recommendation: Approve budget modification No. 31 in the amount of $52,983, the expenditure of State Public Library Funds as presented, and reallocate the existing funds in the amount of $549,538.

1.G.

MOTION

RTC 05-159

Award of Contract to Provide Music Appreciation Classes for Families Through the City’s Recreation Program (F0404-61)

Staff Recommendation: Award a one-year contract to Music for Families, Inc., in an amount not to exceed $65,000 per year, in substantially the same format as the attached draft, and with an option to extend the contract for an additional one-year period, to provide music appreciation classes for children and their parents through the City’s Recreation Program.

1.H.

MOTION

RTC 05-160

Approval of Final Map (Tract No. 9711) – Lands of Smith – Four Single Family Homes with One Common Lot by Richard Smith

Staff Recommendation: Accept the surety bonds, execute the Subdivision Agreement and approve the final map for Tract No. 9711.

1.I.

MOTION

RTC 05-154

Ratification of Council Intergovernmental Committee Appointments

Staff Recommendation: Alternative No. 1 – Ratify Mayor Dean Chu to the Capitol Corridor Joint Powers Authority Board of Directors and to the U.S. Conference of Mayors’ Transportation and Communication Standing Committee and International Affairs Standing Committee. Ratify Mayor Dean Chu and Councilmember Otto Lee’s memberships to the National League of Cities’ Asian Pacific American Municipal Officials constituency group.

1.J.

MOTION

RTC 05-163

Proposed Revision to Legislative Policy 7.3.15, City Council Assignments (Legislative Policy Revision)

Staff Recommendation:  Alternative No. 1 and Alternative No. 2

·   Alternative No. 1 – Approve revised Policy 7.3.15 (Attachment D, City Council Appointments to Intergovernmental Agencies, Assignments to City Council Subcommittees and Council or Mayor-Created Advisory Task Forces)

·   Alternate No. 2 – Delete Policy 7.3.8 (Attachment B, Intergovernmental Council of Santa Clara County/Council Representation).

Kathy Blaschke, member of the public, spoke regarding her concerns about the Best Buy signage that impacts the neighborhood adjacent to and behind the retail center.  Ms Blaschke felt the current sign should be moved to face El Camino.

Louise Gembala Miller for Josephine Gembala, member of the public, spoke regarding her concerns about the Best Buy signage that shines into adjacent homeowners’ yards.  Ms Gembala felt the current signage does not meet city codes and should be relocated or redesigned so it is more appropriate and has less of an impact on the adjacent neighborhood.

Karyn Mackie, member of the public, spoke regarding her concerns about the Best Buy signage and the height of the building, which exceeds the 20-foot height limit when adjacent to residential homes within 75-feet of the commercial building.  Ms. Mackie submitted a letter which included signatures of 12 other residents in favor of moving the signage from the current location.

John Tze, representative of Sand Hill Properties, spoke regarding their efforts to address the neighborhood’s concerns about the building height, signage, and lighting at the Best Buy retail center.

Mayor Chu announced, due to the 15-minute time allotment for Citizens to be Heard, there will be another opportunity for additional citizens to be heard at the end of the meeting.

2.

RTC 05-168

Public Hearing - FY 2005/2006 Budget and Resource Allocation Plan, Establishment of Appropriation Limitation and Proposed Fee Increases

Grace Kim, Finance Manager, presented the staff report.

Mayor Chu opened the public hearing at 8:15 p.m.

Bob Lawson, member of the Parks & Recreation Commission, spoke regarding the review of the budget.  The Parks & Recreation Commission is recommending approval of the Fee Schedule and Capital Projects, as submitted with the exception of the Line Items, Park Acquisition and Improvement of Plaza Del Sol.  Mr. Lawson noted the Parks & Recreation Commission felt the timeline for park acquisition and improvements of Plaza Del Sol should be moved up from the projected completion dates because the projected reserves will be available well before the proposed completion date.   

Monica Draganowski Davis, Chair of the Arts Commission, spoke regarding the review of the budget.  The Arts Commission accepts the budget as presented and thanked staff for the great job they did in presenting the budget to the Commission.

Elaine Curran, President of Junior Achievement in Silicon Valley and Monterey Bay, spoke regarding the funding provided by the City to the students participating in Junior Achievement in Sunnyvale.  She thanked the Council for the continued funding in the upcoming budget year.

Ken Jorgensen, member of the public, spoke regarding the budget.  Mr. Jorgensen felt the budget displayed on the website was not appropriate, noting the previous year’s budget should be presented with the current budget and should depict the actual percentage changes in the budget.  Mr. Jorgensen noted the line item for insurance increased by 15%; Fire showed a 10% increase; Police showed a decrease in hours but an increase of 9.6%; and Library Learning showed a 15% decrease.  Mr. Jorgensen concluding by noting there were problems with the budget that needed to be addressed.

Dave Whittum, member of the public, spoke in favor of the Arts & Wines Festival held the past week-end.  Mr. Whittum also spoke regarding noise levels in the city especially for those residents living on South Angel and Hendy Avenue adjacent to the train tracks.   Mr. Whittum asked the Council to consider ways to mitigate the noise levels in that area.

Werner Gans, member of the public, spoke regarding the budget and a possible $10M deficit that will be covered by reserves because expenditures exceed revenues.  Mr. Gans suggested the Council should form a  sub-committee to review the budget to see if budget reductions can be made for 2005/06 fiscal year and, if not, then they should be reviewed for 2006/07 fiscal year so the city does not continue to draw down the reserves.

Tad Merrick, member of the public, spoke regarding the Parks & Recreation Department budget; how much money was budgeted to purchase the Peterson Jr. High School property and, if no monies were budgeted, why not.

There being no further public testimony, the public hearing was closed at 8:51 p.m.

Mayor Chu noted Council will take action on the 2005/2006 proposed budget at the public hearing scheduled for the June 21, 2005 meeting.

Councilmember Miller moved and Vice-Mayor Swegles seconded to include the maintenance of the Murphy Tree Lights in the proposed 2005/06 Budget. 

Councilmember Howe offered a friendly amendment to include the cost of $20,500 for maintenance of the Murphy Tree Lights in the motion.  The friendly amendment was accepted.  Motion carried unanimously.

3.

RESOLUTION

RTC 05-170

Potential Increase to the Business License Tax – Proposed Tax Structure, Call for November 2005 Municipal Election Regarding the Business License Tax, and Examination of Related Ballot Measure Language

Staff Recommendation: Call an election, to be held in conjunction with the General Municipal Election scheduled for November 8, 2005, to propose a two-year phased increase to the Business License Tax to a minimum of $20 in year one and $30 in year two, and a maximum of $4,750 in year one and $9,500 in year two, beginning January 1, 2007, with the tax and cap adjusted annually for inflation beginning in year three.

Pete Gonda, Senior Management Analyst, presented the staff report in conjunction with Mary Bradley, Finance Director.  Staff responded to questions pertaining to: current two year renewal cycle and possible altering of the cycle; annual indexing if they are on a two year cycle and how the CPI adjustment will be phased into the two year billing cycle; general tax versus special tax if the monies are earmarked for a particular purpose; separation of employee and rental unit costs and adjusting those fees separately; minimum tax versus maximum tax amount in San Jose; indication that the election date is November 8, 2005; business tax fees in adjacent cities; number of companies that are over the cap; phasing of rental units over a five-year period with a lesser amount per year; placing this on the ballot as two separate initiatives; number of rental units in the City of Sunnyvale; how much of the projected $800,000 comes from rental units; if the tax was reduced how much will the decrease cut into the projected funds; and, if the tax and cap are adjusted annually would the City lose additional funds over the phasing period.

Mayor Chu opened the public hearing at 8:15 p.m.

Larry Meola, member of the public, thanked staff for the presentation at the May 5^th meeting and making this matter clearer.  Mr. Meola noted both he and Peninsula Ford supported the business tax increases as recommended by staff.

Tim Thiel, member of the public, President of Sunnyvale Employees Association, spoke in support of the increase in the business tax and calling for an election on November 8, 2005.

Jorj Tilson, member of the public, spoke in opposition of the business tax increase.  Ms Tilson felt this was a major increase at a 500% increase in year one and 1000% increase in year two for rental home properties and mobile home parks.  Ms Tilson asked the Council to support their public finance needs but to look at how this will be imposed on rental home properties and how to lower the rate increase for those businesses.

Arley Marley, Chair of the Sunnyvale Chamber of Commerce, spoke in support of the business tax increase and placing the issue on the ballot in November.  Mr. Marley asked what services would be provided with the increase, how the business community would benefit from these increases, and could the information be provided for the public earlier than Friday at 6:00 p.m.

Jeffrey Dennison, representative for California Apartment Association Tri-County Division, indicated he recognized the need to increase the business tax; however, this was a large increase for rental housing.  He asked the Council to lower the proposed schedule for apartment dwellers.  Mr. Dennison asked if the business tax was earmarked for a specific item and, if so, was it a special tax requiring a two-thirds vote.  Mr. Dennison responded to questions pertaining to the splitting of the fee so it does not include employees and whether the Association would support that split; and how many dollars per month would be added to the average rental unit.

Werner Gans, member of the public, spoke regarding the Business Tax increase.  Mr. Gans felt this was an issue of fairness, noting that employees and residents all benefit from city services. Mr. Gans noted inflation effects city services, property taxes, sales tax and the only tax that had not been increased was the business tax; therefore, it was only fair to implement a system for all beneficiaries of city services to pay their fair share and, to increase that fair share with inflation.  Mr. Gans asked if a survey had been done with neighboring cities to see what they charge for a business license tax. 

Harriet Rowe, member of the public, thanked Councilmember Fowler for putting this into perspective.  Ms Rowe indicated a 500% to 1000% increase was a big increase; however, this fee had not been increased in a number of years.  Ms. Rowe concluded by noting that she was in support of the business tax increase.

There being no further public testimony, the public hearing was closed at 9:48 p.m.

Councilmember Lee moved to approve staff recommendation Alternatives #1, #6 and #9(a) with the following changes to #1: Approve the placement of the ballot measure on the November 8, 2005 ballot and propose to the voters to increase the business license tax based on four-year phased approach of $15 for year one, $20 for year two, $25 for year three, and $30 for year four; to a maximum cap amount of $4,750 for year one and a maximum cap amount of $9,500 for years two, three and four; with the cap adjusted annually for inflation using CPI beginning in year five.

Motion failed due to lack of a second. 

Vice-Mayor Swegles moved to approve Alternatives #6 and #9(a) with the following changes to #1: separation of the two taxes: one being a tax as suggested by staff on page 10 of 18 for the number of employees and the rental units be adjusted to $3 in the first year, $5 in the second year, with a $2,000 maximum for the first year and a $4,500 maximum for the second year.  Motion failed due to lack of a second.

Councilmember Fowler moved and Councilmember Miller seconded to approve staff recommendations Alternatives #1, #6 and #9(a).

Vice-Mayor Swegles offered a friendly amendment to separate the two taxes as noted in the previous motion.  The friendly amendment was not accepted.

Vice-Mayor Swegles moved and Councilmember Howe seconded to amend the schedule for rental unit rates with the per unit rate to remain as staff recommended with a maximum cap of $2,500 for year one, $3,500 for year two, and $4,500 for year three.  The rate for the number of employees shall remain the same as recommended by staff with a cap of $4,700 for year one, $7,000 for year two, and $9,500 for year three.

Councilmember Howe moved an amendment to the motion to allow the ballot language be brought back to the Council for approval on the June 14, 2005 Council meeting.  The formal amendment was accepted.

Councilmember Miller moved a substitute motion to delay action on this item until the June 14, 2005 Council meeting to allow staff to develop appropriate ballot language and determine the impact on potential revenues.  Motion failed due to lack of a second.

Councilmember Miller moved a substitute motion and Councilmember Fowler seconded to delay action on this item until the June 14, 2005 Council meeting to complete outreach, develop appropriate ballot language, and determine impact on potential revenues.  Councilmember Miller withdrew the motion.

Councilmember Hamilton offered a friendly amendment to leave the number of employees the same and phase in the rental unit implementation over a five-year period with a $2.00 increase per year.   Vice-Mayor Swegles did not accept the amendment.

RECESS CITY COUNCIL

Major Chu declared a recess at 10:30 p.m.

Mayor Chu called the meeting to order at 10:52 p.m. and resumed the discussion of public hearing Item #3.

Vice-Mayor Swegles restated his formal amendment and Councilmember Howe seconded to adopt Alternatives #6, #9(a), and #1 amended as follows: the number of employees rate remains the same with a cap of $4,700 for year one, $7,000 for year two, and $9,500 for year three; the number of rental units remains the same 1-5 and the $50 per element with a cap of $4,500 over a three-year period. 

The Resolution was amended to read:

Shall the Sunnyvale Municipal Code be amended to increase the business license tax, which supports basic City services, from its current amount of $10 for every 5 employees/rental units, to $30 for one, $50 for 2-5 and $50 for each additional group of 5 employees/rental units, up to $9,500 for employees and $4,250 for rentals with increases phased over three 3 years and both tax caps adjusted annually for inflation.  Motion carried with Councilmember Hamilton Dissenting.

The City Clerk read the ordinance into the record as follows: “An Ordinance of the City Council of the City of Sunnyvale Amending Chapter 5.04 of the Sunnyvale Municipal Code Related to Business License Tax Procedures”.  

Councilmember Fowler agreed to write the ballot or serve on a sub-committee.  Mayor Chu and Vice-Mayor Swegles volunteered to join Councilmember Fowler as a sub-committee.

4.

RTC 05-164

Explore Costs and Benefits of Declaring the Second Saturday in August as “Family Day” and Open Recreation Facilities to the Entire Community  - Study Issue

Nancy Steward, Superintendent of Arts & Recreation, presented the staff report.  Ms. Steward introduced Curtis Black, Interim Parks & Recreation Director.  Ms Steward responded to questions pertaining to President Bush’s Proclamation declaring Family Day as the last week-end in September.

Mayor Chu opened the public hearing at 11:16 p.m.

Pradeep Joshi, member of the public, spoke in support of Family Day, which has been celebrated since 1988, and asked the Council to look at ways to continue recognition of Family Day in August.

Monica Draganowski Davis, member of the public, spoke in support of the concept of declaring the second Saturday in August as Family Day.  She noted the Arts Commission would like to support the concept of Family Day; however, the Commission did not support the opening of the parks at no fee due to financial constraints.

Bob Lawson, member of the Parks & Recreation Commission, spoke in support of staff’s recommendation.

There being no further public testimony, Mayor Chu closed the public hearing at 11:26 p.m.

Councilmember Miller moved and Vice-Mayor Swegles and  Councilmember Hamilton seconded to approve staff’s recommendation of Alternative #1 – City Council does not implement Family Day activities for calendar year 2005, accepts the concept of Family Day as outlined in the Discussion Section of this report and considers the implementation of Family Day and related costs for calendar year 2006 within the larger budgetary context of the Community Recreation Fund as Council also considers fiscal strategies to address the structural imbalance in that Fund and that Mayor Chu consider issuing a proclamation for Family Day.  Motion carried unanimously.

Councilmember Fowler and Vice-Mayor Swegles seconded to continue the meeting, pursuant to Council Policy, to address Item #5 on the agenda.  Motion carried with Councilmembers Lee, Hamilton, and Miller dissenting.

5.

RTC 05-156

Analysis of Library Materials Funding Study Issue 

Deborah Barrow, Director of Libraries, presented the staff report. Ms Barrow introduced Christine Doxtad, Supervising Librarian. 

Mayor Chu opened the public hearing at 11:36 p.m.

Pam Anderson, Board of Library Trustees Chairperson, spoke regarding: the cost of materials versus the purchase amount, noting that while you are spending more you are getting less; spending on library materials is an investment;  and users of the library are going to other libraries to meet their needs.  She concluded by noting the Board of Library Trustees supports the staff recommendation.

Dave Whittum, member of the public, spoke regarding the reference materials found in the Library and voiced his support of the Library.

There being no further public testimony, Mayor Chu closed the public hearing at 11:40 p.m.

Vice-Mayor Swegles moved and Councilmember Hamilton seconded to approve staff’s recommendation of Alternative #1 – to continue using Public Library Funds for FY2005/06.  Motion carried unanimously.

Councilmember Miller moved and Councilmember Lee seconded, pursuant to Council Policy, to continue the meeting past 11:30 p.m.  Motion carried with Councilmembers Fowler and Hamilton and Vice-Mayor Swegles dissenting.

6.

RTC 05-167

Council E-mail Addresses for Public Use

Robert Walker, Assistant City Manager, presented the staff report.  Shawn Hernandez, Director of Information Technology, responded to questions pertaining to: financial responsibility of supplying council members with city e-mail addresses specified by council members;  giving them an e-mail account that is not accessible on the city network or using a city computer (i.e. web accessible e-mail); compliance with Public Records Act and Brown Act laws; establishment of Council e-mail addresses on the city domain for simpler compliance with records requests; and whether council members can ask for a city e-mail address.

Mayor Chu opened the public hearing at 12:00 a.m.

Dave Whittum, member of the public, indicated that corresponding with the council via e-mail is essential, especially for his neighborhood when they have needed help with issues in their area.  Mr. Whittum suggested using an open forum type of communication for responding to public inquiries.

There being no further public testimony, Mayor Chu closed the public hearing at 12:02 a.m.

Councilmember Hamilton moved and Councilmember Miller seconded to schedule a study session on this topic at a future date.  Motion carried with Vice-Mayor Swegles and Councilmembers Fowler and Howe dissenting.

COUNCIL:

None received.