APPROVED MINUTES*
SUNNYVALE CITY COUNCIL

November 22, 2005 

The City Council of the City of Sunnyvale met in a Special Meeting – Study Session: Intergovernmental Relations (IRG) Update – in the City Hall West Conference Room, 456 West Olive Avenue, Sunnyvale, California at 6:00 p.m. 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

SALUTE TO THE FLAG

Mayor Chu led the salute to the flag.

ROLL CALL 

PRESENT:	Mayor Dean J. Chu Vice Mayor Ron Swegles Councilmember Fred Fowler Councilmember Julia Miller Councilmember John Howe Councilmember Otto Lee
ABSENT:	Councilmember Melinda Hamilton (excused)
STAFF PRESENT:	Amy Chan, City Manager Robert Walker, Assistant City Manager Joan Borger, Senior Assistant  City Attorney Director Marvin Rose, Director of Public Works Director Robert Paternoster, Director of Community Development Trudy Ryan, Planning Officer Steven Lynch, Associate Planner Karen Davis, Economic Development Manager Katherine Bradshaw Chappelear, City Clerk

PUBLIC COMMENTS

• Carl Guardino from the Silicon Valley Leadership Group announced the Applied Materials Silicon Valley Turkey Trot occurring Thursday morning, November 24, 2005.  The run has been named Run or Walk for Health, Hope, and a Home.  Health is the children’s health initiative that immunizes children from low income families; Hope is the Second Harvest Food Bank of Santa Clara and San Mateo counties; and Home is the Housing Trust of Santa Clara County.
• Councilmember Fowler asked Mr. Guardino for their website address.  Mr. Guardino responded that the website address is: svlg.net, and then click on the Turkey Trot icon.
• Harriet Rowe congratulated the Council on continuing the Public Safety program.  The City of Sunnyvale has received national recognition as one of the top 25 safest cities in the nation and has been recognized as one of the top 5 safest cities based on population.  Ms. Rowe also wished to thank the citizens of Sunnyvale for supporting Public Safety with their tax dollars.

CONSENT CALENDAR 

Councilmember Miller asked that items 1.A and 1.N. be removed from the Consent Calendar.

Mayor Chu asked that item 1.Q. be removed from the Consent Calendar.

Moved by Vice Mayor Swegles and seconded by Councilmember Miller that the Consent Calendar be approved, with the exception of Items 1.A., 1.N. and 1.Q.   Motion carried 6-1, with Councilmember Hamilton absent

1.A.		Approval of Minutes of the Regular Council Meeting of November 1, 2005   Councilmember Miller asked that on page 6 under “Non-Agenda Items & Comments” the word Council be deleted in conjunction with the Ethics Committee.  Councilmember Miller stated that she did not intend for this to be a Council Ethics Committee, rather an Ethics Committee for the City of Sunnyvale.  Councilmember Miller stated that it is also incorrectly stated on the Information and Action Items log.   Mayor Chu asked for clarification stating that he requested an Ethics Committee be set up prior to a campaign season rather than during a campaign season, so that the policies and procedures are clearly understood by the candidates before they start campaigning.   Councilmember Miller stated that it is her intention to have a standing Ethics Committee, not just during an election season.   Mayor Chu opened the matter to public comment.   No one in the audience wished to speak and Mayor Chu closed the matter to public comment.   Moved by Mayor Chu and seconded by Vice Mayor Swegles that the Minutes from the Regular Council Meeting of November 1, 2005 be approved as amended.   Motion carried 6-1, with Councilmember Hamilton absent.
1.B.		Approval of Information/Action Items – Council Direction to Staff
	Council approved as submitted.

Fiscal Items

1.C.	RTC  05-343	List of Claims and Bills Approved for Payment by the City Manager (List Nos. 271, 272 and 273)
	Council approved as submitted.
1.D.	RTC  05-341	Authorization to Accept $10,000 Grant Funds from the Satterberg Foundation for Tales for Tots: Increasing Story Times to Young Children in Child Care Centers and Family Day Care Provider Homes and Budget Modification No. 8
	Council approved as submitted.
1.E.	RTC  05-332	Authorize City Manager to Execute Grant Agreement from the Santa Clara Valley Transportation Authority (VTA) FY 2005/06 Transportation Fund for Clean Air (TFCA) Program Manager Grant Funds and Budget Modification No 12.
	Council approved as submitted.

Contracts

1.F.	RTC  05-338	Award of Request for Proposals No. F0507-07 for Design and Construction Support Services for the Refurbishment of the Wright Avenue Water Tank No. 2
	Council approved award of a contract, not to exceed $79,097, to V&A Consulting Engineers, Inc., for the refurbishment of Wright Avenue Water Tank No. 2; and a project contingency in the amount of $15,819.
1.G.	RTC  05-340	Award of Contract to Matrix Consulting Group to Conduct an Optimal Staffing Study for the Department of Public Works
	Council approved Alternative No. 1:  Award contract of $90,000 to Matrix Consulting Group to conduct an optimal staffing study of the Department of Public Works
1.H.	RTC  05-339	Authorization to Extend Existing Contracts for Banking and Investment Custody Services
	Council approved authorization of the extension and modification of an existing contract with Union Bank of California N.A., for banking services; and the extension of an existing contract with Union Bank of California N.A., in an amount not to exceed $3,500 during the one-year extension period, for investment custody services.
1.I.	RTC  05-350	Appraisal of Five City-Owned Properties adjacent to Town and Country Village and Budget Modification No. 16
	Council approved Alternative No. 1:  Authorize and approve Budget Modification No. 16 for the cost of the confidential appraisals of City property in Town and Country Village.

Personnel 

1.J.	RESOLUTION RTC 05-349	Amendment to the Schedule of Pay of the Salary Resolution:  Salary Adjustment for Pay Plan Category A (applies to Classified Public Safety Dispatchers-in-Training, Dispatchers, and Senior Dispatchers), and Pay Plan Category C (applies to Classified Public Safety Officers and Lieutenants)
	Council approved Alternative No. 1:  Amend Sections 2.000 (Category A) and 2.200 (Category C) of the Schedule of Pay of the Salary Resolution to reflect the new pay rates, effective retroactive to July 3, 2005.
1.K.	RTC 05-334	City Manager Salary: Adjustment to Control Point.
	Council approved as submitted.
1.L.	RESOLUTION RTC 05-344	Amendment to the Classification Plan and Salary Resolution: Add Finance Analyst and Finance Technician
	Council approved Alternative No. 1, Addition of new classifications of Finance Analyst and Finance Technician to the City’s Classification Plan and Salary Resolution.
1.M.	RTC 05-348	Renewal of Dental Insurance Contracts for Calendar Year 2006
	Council approved Alternative No. 1, Renew contract with Delta Dental for one calendar year with the proposed 3.4% combined rate increase.

Other

1.N	RESOLUTION RTC 05-331	Resolution – Federal Reclassification of Kifer Road between Lawrence Expressway and Fair Oakes Avenue from an Urban Local Street to an Urban Minor Arterial Street
	Councilmember Miller stated that the reason she pulled this item is because she wanted to enhance public awareness.   Public Works Director Marvin Rose stated that it will be possible to do a federally funded overlay of Kifer Road between Lawrence Expressway and Fair Oakes Avenue due to the reclassification.   Mayor Chu opened the matter to public comment.   No one in the audience wished to speak and Mayor Chu closed the matter to public comment.   Moved by Councilmember Miller and seconded by Councilmember Fowler to approve as submitted.   Motion carried 6-1, with Councilmember Hamilton absent.
1.O	RTC 05-333	Approval of Final Map (Tract No 9722) – Eight Single Family Homes by D.B.I. Construction, Inc.
	Council approved final map for Tract No. 9722 and directed staff to forward the final map for recordation upon developer’s execution of the subdivision agreement, submittal of improvement securities, payment of development fees, and other documents deemed necessary by the Director of Public Works.
1.P.	RTC 05-345	Authorization for NOVA to apply for 15% Governor’s Discretionary Funds for Veterans Employment- Related Assistance Program in the amount of $500,000
	Council approved on behalf of the NOVA seven-city Consortium the submission of a proposal to the State of California Employment Development Department in the amount of $500,000 to continue funding for NOVA’s Veterans Employment-Related Assistance Program.
1.Q.	ORDINANCE No. 2796-05	Adoption of Ordinance No. 2796-05 Approving and Adopting the Amended and Restated Redevelopment Plan for the Central Core Redevelopment Project, and making Certain Findings Pursuant to the Community Redevelopment Law of the State of California.
	Mayor Chu stated that he pulled this item because he wished to note that Councilmember Hamilton abstained from voting on this ordinance at its introduction because she lived in the project area.  Mayor Chu stated that although he was not in attendance at the November 1, 2005 Council Meeting, he felt qualified to vote on this item because he was present at the October 25, 2005 meeting during which this item was discussed and has reviewed the agenda and minutes of November 1, 2005.   Mayor Chu opened the matter to public comment.   No one in the audience wished to speak and Mayor Chu closed the matter to public comment.   Moved by Mayor Chu and seconded by Vice Mayor Swegles to approve as submitted.   Motion carried 6-1, with Councilmember Hamilton absent.

STAFF RESPONSES TO PRIOR PUBLIC COMMENTS

City Manager Amy Chan referred to comments made by Ms. Mei-Ling Stefan on several occasions regarding Council actions at the March 29, 2005 Council Meeting at which a 50-foot wireless telecommunication tower was allowed on a non-residential property in a residentially zoned district.  Ms. Stefan prefers that the tower be placed in either Ortega or Panama Park.

City Manager Chan clarified the City’s position to Council and the public.  The City’s policy is to allow the use of parks within the City for wireless telecommunications facilities.  City Manager Chan stated that this was clear on the staff report prior to Council’s action and acknowledged by a representative of the neighborhood.  City Manager Chan stated that current staff practice is to review all proposals on a case-by-case basis.  She further stated that Councilmembers had previously suggested that they may want to have a study issue on this matter.  City Manager Chan stated that it is still not clear what the future policy governing wireless telecommunications might be with regard to City parks and mentioned that the Council may want to add this to the December ranking of the upcoming study issues.

City Manager Chan mentioned that Ms. Stefan may want to address her concerns at the upcoming public hearing covering the Council’s Study Issue Calendar for the upcoming year.  The public hearing on this matter is scheduled to occur during the December 13, 2005 Council meeting.

PUBLIC COMMENTS

Me-Ling Stefan thanked the City Manager for her comments.  Ms. Stefan stated that she and her neighbors had suggested a number of better alternative sites and were not only targeting City parks to be cellular sites.  Ms. Stefan stated her main concern is that the staff’s recommendations were based on wrong information.  Ms. Stefan thanked Councilmembers Miller and Howe for their support of the appeal.

No one else in the audience wished to speak and Mayor Chu closed the Public Comments section of the agenda.

PUBLIC HEARINGS/GENERAL BUSINESS 

2.	RTC 05-337	Appeal of a decision by the Planning Commission to Deny the Use Permit on a 2.7-acre site located at 965 East Arques Ave. (near DeGuigne Dr.) to allow church and office uses within an existing industrial building.
	Trudy Ryan, Planning Officer presented the staff report.   Vice Mayor Swegles asked about the age, class, and previous use of the building.    Planning Officer Ryan was not aware of the age and stated she believed the class to be about a C class and the previous use was for research and design.   Planning Officer Ryan verified that the use permit is for the back of the building and that the front of the building would not be part of the permit.   At 7:35 p.m., Mayor Chu opened the public hearing.   Guy Denues, project architect, stated that the site is centrally located; affordable; is large enough to accommodate the programs of the church; and would work well for the intended church use.  Mr. Denues indicated that this industrial area is a different subset of the total industrial zone with a wide range of uses   Mr. Denues stated that this particular site does meet all the current regulations.   Councilmember Lee asked how the building was previously used.   Mr. Denues stated that the front building was basically offices and the back buildings have work benches where research and development occurred. Councilmember Lee asked if Mr. Denues was aware of the conditions of approval (Attachment B) they would need to meet if the appeal were approved.  Mr. Denues stated they could comply with the conditions with exception to the set limit of 500 attendees.  Mr. Denues felt that the church could grow to 700 and that condition could be restrictive.    Vice Mayor Swegles asked Mr. Denues if he was involved in selecting the site or brought in afterwards.  Mr. Denues stated he was brought in after the church found the site.  Vice Mayor Swegles asked Mr. Denues if he is aware of other sites the church may have considered.    Mr. Denues stated that he is aware that other sites in the industrial zone in Sunnyvale were considered in the selection of this site.   Vice Mayor Swegles stated that the term limit for the church, if approved, would be three years.  Vice Mayor Swegles asked Mr. Denues how the congregation would be affected if the City had to ask the church to leave after three years.  Mr. Denues stated that fact would have to be taken into consideration and worked into the lease price negotiations.    Mayor Chu opened the public hearing at 7:35 p.m.   Harriett Rowe stated she is opposed to approval of this application.   A discussion occurred between Councilmember Fowler and Planning Officer Ryan regarding the uses of surrounding businesses with similar uses.   A member of the proposed church search committee, Helen Au spoke.  Ms. Au spoke in favor of the proposed church location.   Pastor David Fung, spoke in favor of the proposed church location.   David Wong, a member of the proposed church search committee, spoke in favor of the proposed church location.   Jeff Kwok, a general partner of the partnership that owns the property, spoke in favor of the proposed church location.   Werner Gans, spoke in favor of the proposed church location.   Mayor Chu closed public comments and invited the applicant, Mr. Denues to make any closing comments.   Mr. Denues reviewed favorable reasons for approval of this location for the proposed church.   Mayor Chu closed the public hearing at 8:28 p.m. and opened the issue for discussion among Councilmembers. Councilmember Fowler asked staff for clarification on existing City policy on combining day care facilities with industrial installations.  Planning Officer Ryan stated that the City policy does not allow day care centers in an industrial zone except for small groups between 1-30 children that were onsite; associated with a business for children of employees of that business, and were not within a thousand feet of hazardous or toxic materials.   Bob Paternoster, Director of Community Development, clarified that if a sensitive receptor (children, elderly or the infirm) move into an area, one would have to draw a thousand-foot circle around that group to ensure they were not exposed to hazardous or toxic materials.  Director Paternoster stated that this speaks to the concern listed in the staff report regarding additional businesses that may wish to move into the area.    Vice Mayor Swegles made a motion to adopt Alternative 1, Adopt a negative declaration; deny the appeal, and uphold the Planning Commission’s decision to deny the Use Permit on a 2.7 acre site located at 965 East Arques Ave. (near DeGuigne Dr.) to allow church and office uses within an existing industrial building.   Councilmember Howe seconded the motion.   Motion failed 3-3-1, with Councilmember Hamilton absent.  Mayor Chu, Vice Mayor Swegles and Councilmember Howe voted in favor of the motion.   Councilmember Lee made a motion to approve the use permit with the conditions of approval with a three-year limitation.    Councilmember Fowler made a friendly amendment to increase the limitation to five years.  Councilmember Lee rejected the friendly amendment and Councilmember Fowler seconded the motion.   Motion failed 3-3-1, with Councilmember Hamilton absent.  Councilmember Lee, Councilmember Miller and Councilmember Fowler voted in favor of the motion   Vice Mayor Swegles made a motion to request this issue be moved to when there is a full Council present and requested that it be continued to the December 13, 2005 Council meeting.  Councilmember Howe seconded the motion.   Motion passed 6-1 with Councilmember Hamilton absent.
3.	RTC 05-351	Study Issue to Consider New Streetscape Revitalization Plan for the 100 Block of South Murphy
	Associate Planner Steve Lynch presented a brief overview of the staff report.   Aditya Advani from Royston, Hanamoto, Alley & Abey, Landscape Architects shared a power-point presentation highlighting the landscape plans that his company is submitting for approval.   Director Paternoster stated that the plan will continue with the theme already in place for Murphy Street.    Mayor Chu asked for clarification on the “safe pause island” for pedestrians and “dining corrals”.    Mr. Advani stated that a dining corral would allow for flexibility on the sidewalk and would entail removable fences.  He further explained that a “safe pause island” is a safe space for pedestrians who are unable to completely cross the street, it allows for a safe island half way across the street.   Director Paternoster stated that the design can serve numerous purposes.   Councilmember Miller asked if the project could start with current monies slated for this project and also asked for clarification on the future MTC funding.   Associate Planner Lynch stated that the City is applying for MTC grant funding and recommended that the project not begin until the City has a response from the grant proposal.  He stated that knowing the total funds available would be helpful in applying the funds within the appropriate scope.   Planning Officer Ryan stated that the City is in a good position to receive the grant funds, but is not aware of the exact schedule of the application process for 2006.   Associate Planner Lynch stated that during the public outreach meetings with the tenants and property owners, staff explained the MTC grant process and the amount of current funds available.   Councilmember Miller asked staff how they could expedite the process to help the merchants on Murphy Street sooner and expressed a desire to use the funds that are currently available for some preliminary improvements.   City Manager Chan stated that she would like to clarify that the staff report is only a recommendation, but it is up to Council as to how they would like to proceed.  City Manager Chan stated that if Council needs more information from staff, she would recommend that the item be deferred until staff can get back with further information.    Councilmember Miller asked staff how much of the remaining $955,000 from a previous grant must remain for matching funds and would the remainder be enough to start any portion of the project.    City Manager Chan stated that Council may use the remaining funds as they wish and referenced the staff report stating that each item had a dollar amount listed.    Planning Officer Ryan stated that matching funds are needed and that typically a larger grant match increases the chances of obtaining the grant.  Planning Officer Ryan stated that the balance of $955,000 in matching funds is about 30%, but if the match were less, a grant could still be awarded or awarded for a different amount.   Mayor Chu opened the public hearing at 9:40 p.m.   Joe Antuzzi from Il Postale restaurant stated that the merchants did understand waiting for the grant could increase the chances of receiving the grant and getting more done.  Mr. Antuzzi stated that this needs to be done by the time the mall opens.  Mr. Antuzzi noted that in the back area of their buildings, they need a recycle area.   Sean O’Keefe of Scruffy Murphy’s asked how much of the work could be done in the evening so as not to disrupt the businesses.   Planning Officer Ryan stated that actual construction times had not been selected, but that merchants would be included in future meetings for setting work times.   Councilmember Fowler asked Mr. O’Keefe if he had read the interim policy on moving street furniture around.   Mr. O’Keefe stated he had not.   Director Paternoster stated that there were corrections on the staff report and read the corrections to Councilmembers.  Director Paternoster stated that there would be a cost for moving street furniture and further explained the application process for applying to have an item moved.   City Manager asked Director Paternoster what would be his best guess for the process from the time the City receives application to actual moving of street furniture.   Director Paternoster stated that it would be about two weeks.   City Manager asked for Director Rose to comment on the time it would take Public Works to remove the object.    Director Rose stated that they can move within a week once they are aware that the Community Development permit process was completed and signed off.   Councilmember Fowler asked Director Paternoster under what conditions an application would be denied.   Director Paternoster stated that a request is inconsistent with the plan that it would be denied.   Councilmember Fowler read the third version of the procedure for moving street furniture to Mr. O’Keefe and asked him if that seemed like a reasonable plan.   Mr. O’Keefe asked if the City is willing to help out with the costs associated with the moving of the street furniture.    Councilmember Fowler stated that it would be up to the Council to decide and then stated the two ways the merchants could get the items moved during the interim period.    Mike Johnson with the Downtown Association stated that he is aware of the time constraints on the funding, and the Downtown Association is in support of waiting for more funding rather than a stop-and-go approach.  Mr. Johnson stated that most merchants who attended the public meetings were in support of this project.  Mr. Johnson asked for clarification on the cost of moving the street furniture.  Mr. Johnson stated he was not aware that a request could be denied; instead he believed it to be a more flexible program.   Mayor Chu stated that what was being discussed is the interim plan on moving street furniture on Murphy Avenue.  Mr. Johnson asked if the interim plan would end once the project began.   Mayor Chu confirmed that was correct.  Mayor Chu stated that until the City receives funding for the project, no expenditures can be made; however if a merchant wishes to move an object, the interim plan is in place for this type of request.