The Sunnyvale Onizuka Local Redevelopment Authority met in the City Council Chambers, 456 West Olive Avenue, Sunnyvale, California at 9:20 p.m. with Authority Member Ron Swegles presiding.

ROLL CALL

Pursuant to Government Code Section 54953, Subdivision (b), all votes taken during a teleconferenced meeting shall be by roll call. 

PRESENT:	Authority Member Ron Swegles Authority Member Otto Lee (via teleconference) Authority Member John Howe Authority Member Dean J. Chu Authority Member Melinda Hamilton Authority Member Anthony Spitaleri Authority Member Christopher Moylan
ABSENT:	None
STAFF PRESENT:	Amy Chan, Authority Executive Director David Kahn, Authority Counsel Robert Paternoster, Authority Secretary, Director of Community Development Coryn Campbell, Neighborhood and Community Resources Manager Eric DeWees, Interim Legislative Analyst Katherine Chappelear, Authority Clerk

PUBLIC HEARING/GENERAL BUSINESS 

2.	LRA 06-002	Convene the Onizuka Air Force Station Local Redevelopment Authority (LRA) to: Approve the LRA bylaws; select LRA officers; select the LRA executive committee; authorize staff to apply for an Office of Economic Adjustment Community Base Reuse Planning Grant; and approve the Citizen’s Advisory Committee (CAC) bylaws and select two LRS members to serve on the CAC
	Coryn Campbell, Neighborhood Community Services Manager, presented the staff report.  She stated although the responsibility of this authority is to prepare and submit a reuse plan to the Department of Defense (DOD), it will be the DOD who will make the final decision regarding disposal and reuse for the Onizuka Air Force Station property.      Authority Member Howe stated the LRA Bylaws, (Attachment C, Article IV, Section 2) should include: The Chair or four (or more) of the Local Redevelopment Authority (LRA) members may call a Special Meeting. Authority Member Howe clarified with staff that the LRA Executive Committee would consist of the Chair of the LRA, the Vice-Chair of the LRA, and another member of the LRA.   Authority Member Swegles asked staff to include an additional category for “member of the Real Estate Industry” to the Citizen’s Advisory Committee (CAC) Bylaws under Composition (Attachment D, Article III, Section 1), for two Sunnyvale Business Representatives.   Authority Member Swegles opened the Public Hearing at 9:29 p.m.   Arthur Schwartz volunteered to fill one of the five citizen positions.  Authority Member Swegles confirmed that a Public Notice will be posted regarding these openings, and that the LRA Executive Committee will make the appointments to the CAC.   No one else wished to speak and Authority Member Swegles closed the Public Hearing at 9:31 p.m.   Authority Member Howe confirmed with staff that the LRA Chair and Vice Chair would be the same individuals for the LRA Executive Committee per the bylaws, and that staff expects this project to continue through 2011, with the possibility of going beyond that date with implementation phases.   Authority Member Chu confirmed with staff that the Business Representative Category for recommended groups appointed to the CAC, would be organizations that cover the entire county, but that the intent would be to nominate someone who has a business interest in Sunnyvale.    Authority Member Howe moved and Authority Member Chu seconded to approve Alternative No. 1:  Approve the LRA Bylaws with the following addition to Article IV, Section 2 of the LRA Bylaws:  the Chair or 4 (or more) of the LRA members may call a Special Meeting.   Motion carried 7-0 by roll call (with Authority Member Lee teleconferencing).   Authority Member Howe moved and Authority Member Hamilton seconded to appoint Authority Member Ron Swegles as the Chair of the LRA and Chair of the LRA Executive Committee.   Motion carried 7-0 by roll call (with Authority Member Lee teleconferencing).   Authority Chair Swegles moved and Authority Member Chu seconded to approve Authority Member Howe as Vice Chair of the LRA and Vice Chair of the LRA Executive Committee.  Authority Chair Swegles noted his reason for nominating Authority Member Chu was due to Authority Member Lee’s work conflict that would prevent him from attending the base closure training.   Motion carried 7-0 by roll call (with Authority Member Lee teleconferencing).   Authority Chair Swegles asked for nominations for the third position on the LRA Executive Committee.  Authority Member Moylan offered to serve as the third member of the LRA Executive Committee or as the LRA representative on the CAC.   Authority Vice Chair Howe moved and Authority Member Hamilton seconded to appoint Authority Member Molyan as the third representative on the LRA Executive Committee. Motion carried 7-0 by roll call (with Authority Member Lee teleconferencing).   Authority Vice Chair Howe moved and Authority Member Hamilton seconded to approve submission of a community base reuse grant proposal, not to exceed $500,000, to the Office of Economic Adjustment and authorize the City Manager or her designee to execute the necessary grant agreement and expend received grant funds   Motion carried 7-0 by roll call (with Authority Member Lee teleconferencing).   Authority Vice Chair Howe moved and Authority Member Moylan seconded to approve the Citizen’s Advisory Committee (CAC) Bylaws with the following item: add a “member of the Real Estate Industry” as another choice within Article III, Section 1, (Composition) under the category of Sunnyvale Business Representatives appointed to the CAC   Authority Member Moylan offered a friendly amendment to modify Article III, Section 5 (Vacancies) of the CAC bylaws by adding a sentence which states: a vacancy is created either by the resignation of a member or by a member missing two consecutive meetings.   Authority Vice Chair Howe accepted the friendly amendment.   Authority Executive Director, Amy Chan explained that the CAC is a taskforce of the LRA; therefore it is governed by the LRA bylaws, which were already approved by the Authority.  She noted that the taskforce bylaws (Attachment C, Article VII, Section 1, Item F) states: Any member who misses three (3) consecutive unexcused meetings shall be deemed to have resigned.   Authority Vice Chair Howe stated he would like to continue for a year with the adopted bylaws and withdrew his acceptance of the friendly amendment.   Motion carried 7-0 by roll call (with Authority Member Lee teleconferencing).   Authority Vice Chair Howe moved and Authority Member Chu seconded to appoint Authority Chair Swegles to serve as an LRA representative on the CAC.   Authority Member Chu volunteered to serve as the second LRA representative on the CAC.   Authority Member Hamilton asked about the length of terms for the CAC appointments.  Manager Campbell stated all LRA taskforce members (of which CAC is one individual taskforce) will be appointed by the LRA Executive Committee for renewable one-year terms.  Authority Member Hamilton asked if the one-year renewable term would apply to all appointments such as the LRA Chair and Vice-Chair.  Manager Campbell referred to (Attachment C, Article 6, Section 2) which states that the Chair and Vice-Chair shall be elected annually by the Onizuka LRA from its own membership at the first annual LRA meeting.   Authority Member Spitaleri inquired as to what would occur if a member of the LRA is no longer serving on Council.  Authority Chair Swegles explained the bylaws state that if an LRA member is no longer an Elected Official, they may no longer serve on the LRA, but may serve on the CAC.  Executive Director Chan confirmed that the LRA must consist of elected City Councilmembers as noted in the Membership section of the bylaws (Attachment C, Article 3, Section 1).   Authority Member Chu offered a suggestion that staff clarify the bylaws to include:  An LRA Authority Member who is also serving as an LRA Representative to the CAC, would need to resign from the LRA Representative position when they left office, and would be required to apply for a Citizen Advisory position on the CAC if an opening existed and they wished to continue their service.   Authority Counsel David Kahn stated that when an Authority Member resigns or their term ends, they no longer qualify to serve on the LRA; therefore may not appoint themselves to a position on the CAC nor continue to serve on the CAC unless they apply for a position.    Authority Member Moylan agreed the bylaws identify that when one ceases to be an elected official, it is automatic that one would no longer be a LRA Authority Member or a CAC member, and in order to be considered for another position on the CAC, they would have to apply when an opening occurred.  Authority Member Moylan asked Authority Counsel Kahn if he felt the language was sufficient to also cover the CAC designated elected official categories, (Mountain View City Councilmember and Santa Clara County Supervisor), in that they would automatically be removed from the CAC upon resignation from their elected position.  Authority Counsel Kahn stated that when the term ends for an elected official they would no longer be eligible to serve on the CAC and those individuals would have to be replaced.   Vice Chair Howe amended his motion to read:  the first LRA representative to the CAC shall be Authority Chair Swegles and the second LRA representative to the CAC shall be Authority Member Chu.  Authority Member Hamilton seconded the amended motion.   Motion carried 7-0 by roll call (with Authority Member Lee teleconferencing).   Authority Member Hamilton moved and Vice Chair Howe seconded to amend the CAC Bylaws (Attachment D, Article III, Section 1) as:   Membership change: 1 Santa Clara County Supervisor to read 1 Santa Clara County Supervisor currently in office.   1 Mountain View City Councilmember to read 1 Mountain View City Councilmember currently in office. Motion carried 7-0 by roll call (with Authority Member Lee teleconferencing).
3.	LRA 06-001	Authorize Local Redevelopment Authority Staff to Communicate Positions and Open Dialog Regarding Department of Veterans Affairs Interest in Onizuka Air Force Station Property
	Coryn Campbell, Neighborhood Community Services Manager presented the staff report and Director Paternoster presented the analysis and staff recommendation.    Authority Chair Swegles opened the Public Hearing at 10:13 p.m.   Jason Nietupski, Facility Planner for the Palo Alto Veterans Affairs (VA) Health Care system spoke in favor of the VA utilizing the Onizuka property for housing of 200 staff and a Dry Lab Research Center.  He stated the VA is disappointed with City staff opposition to this proposal.   Authority Member Hamilton asked Mr. Nietupski if the VA considered City staff’s recommendation to look at other locations for its research facility.  Mr. Nietupski stated he believed the Department of Defense (DOD) property is of interest because the VA intends to put together a future bill in the VA’s budget to transfer funds through congressional appropriation from the VA to the DOD.  Mr. Nietupski confirmed the VA would be paying full market value for the excess property.  He stated he would be willing to present other site options to the VA in Washington, but he was not sure how the options would be addressed at the national level.   Authority Member Hamilton stated the Onizuka space is a great site for Class A Office space, which the City needs.  However, she would like to accommodate the VA’s needs and wishes to work together to figure out the best solution for all involved.    Authority Member Moylan asked why the VA asked for specific areas of the site.  Mr. Nietupski stated the VA would entertain developing the entire parcel in conjunction with the VA needs if allowed, but he is not certain of how much flexibility they would have at the national level.  Councilmember Moylan confirmed with Mr. Nietupski that of the entire parcel, the site most useful for the VA is the site they have identified on the chart he presented.    Authority Member Chu confirmed with Mr. Nietupski that the VA is interested in three buildings on the site identified as Building #1002 and the two metal accessory buildings.  Mr. Nietupski stated their main needs are Building #1002 and the parking needs of 100 stalls per acre, but they can be more flexible on the smaller accessory buildings needs.  He stated that normally the VA has a priority in terms of federal surplus laws.  Authority Member Chu and Mr. Nietupski agreed there may be a way to appease all involved by choosing different accessory buildings than those proposed, such as buildings closer to the edge of the parcel, and then they could also reconfigure the parking needs.  Mr. Nietupski stated the congressional laws will govern all negotiations and will need to meet criteria developed by the VA.    Authority Member Lee asked for clarification on the reasons behind this VA proposal.  Mr. Nietupski stated that the VA wants to move from a Menlo Park building (built in 1929) that is seismically deficient, and they are looking for another site to accommodate their needs.   Director Paternoster commented that the basis for staff’s recommendation was not due to a tax loss.  Tax loss is mentioned in the report under the fiscal section noting that there would be a loss, but does not influence the staff recommendation.   Authority Member Spitaleri confirmed with Mr. Nietupski that if any changes to the proposal such as moving to different buildings or locations would require a response from the VA in Washington.  Mr. Nietupski stated that of the seven to nine facilities on the list, for the ones receiving approval, there will be congressional appropriation to cover those costs.  Authority Member Spitaleri asked when that action would occur and Mr. Nietupski stated each project is different and the VA asked for 2011 for the Onizuka site.   Executive Director Chan stated the speaker is referring to the Base Realignment and Closure (BRAC) process.  She stated when the two Authority Members attend the BRAC conference they will learn more about the timing and impact of the procedures.  She stated that one reason the VA proposal is before Council is to receive support (or not) to assist the VA when they discuss potential occupancy with the DOD. The BRAC process is open to all federal agencies to determine if they have an interest in locating at this site.  Once the decision is made as to who will occupy the site, payment for the land would be made by a transfer of funds through a congressional appropriation. Manager Campbell stated that by May 9, the DOD will make a determination on what they consider to be surplus; therefore, the LRA needs to go on record in advance of that date if they hope to influence the decision.   Arthur Schwartz suggested a realignment of the property.  Authority Chair Swegles confirmed with Director Paternoster that staff only evaluated the VA’s proposal, not other alternatives.   Executive Director Chan stated the LRA can provide input and suggestions, but it will be a long time before they can make any decisions (after DOD makes its decision).  She stated that staff is suggesting that Council may want to go on record as to what they want to do.    Harriet Rowe stated she believes the City of Sunnyvale will come up with a solution that is best for all involved.   Mehmet Pamukcu stated he believes the VA should look at this on a wider scope, more like a VA complex rather than an office space.   No one else wished to speak and Authority Chair Swegles closed the Public Hearing at 10:36 p.m.   Authority Member Lee asked if the Authority has reservations, but would like to keep an open dialog with the VA, could they approve Alternative No. 2.  Director Paternoster stated essentially Alternative No. 1 concludes that the Council does not support the VA’s request at this time (because it may preclude other potential use of the site) however, staff would offer the VA assistance to find another site, but Alternative No. 2 supports the VA’s request.   Authority Member Hamilton moved and Authority Member Moylan seconded to approve Alternative No. 1:  Authorize LRA staff to communicate positions an open dialog regarding the VA interest in Onizuka AFS.  The position is to express serious reservation about the VA proposal because it would effectively reduce the reuse site size by 27%, thereby limiting the number and type of uses that might be interested in the site and reducing the economic value of the site; to offer staff assistance to the VA to find an alternate suitable site and building in Sunnyvale; and to recommend that the entire 19 acre Onizuka AFS site be declared surplus and that the VA’s interest and need for locating on a portion of the site be considered in the community reuse planning process.   Authority Member Lee stated that he fully understands the land use issues in the City, but he is not able to support this motion as he feels it is appropriate for a portion of Onizuka to be used for a VA research and development facility.    Authority Member Chu offered a friendly amendment to make a fourth bullet to Alternative No. 1:  The City of Sunnyvale LRA wishes to work with the VA to find a viable solution, but due to timing issues, the LRA must oppose the existing application at this time.  The LRA hopes to have the opportunity to welcome the VA to Sunnyvale and to consider different configurations.   Director Paternoster suggested the friendly amendment verbiage be included in the cover letter, but Alternative No.1 remain as recommended.   Authority Member Moylan did not accept the friendly amendment.   Vice Chair Howe suggested the friendly amendment be brought forward as a second motion.    Executive Director Chan stated the main issue before the LRA is the location of the VA on Onizuka and stated that the LRA needs to indicate its position by May 9.  She stated that the cover letter is the appropriate location for information on alternatives and assistance that the LRA can offer the VA to locate in Sunnyvale, but it is crucial that the LRA express to the DOD its position on this site.   Authority Member Moylan stated that the clear message needs to be that the LRA wishes to make the decision on what happens to the site, without committing a portion of the site to any agency/organization at this point in the process.   Authority Member Chu made a formal amendment to the motion and Authority Member Hamilton seconded to add a fourth bullet to Alternative No. 1 as follows: The City of Sunnyvale LRA wishes to work with the VA to find a viable solution, but due to timing issues, the LRA must oppose the existing application at this point.  The LRA hopes to have the opportunity to welcome the VA to Sunnyvale and to consider different configurations.   Authority Member Lee offered a friendly amendment to change the wording in Alternative No. 1 from express “serious reservation” to “some reservation” within the first bullet.   Authority Member Chu stated he wished to have his formal amendment voted on first.   Authority Member Spitaleri stated he will not be able to support the motion as he believes opposition should be clear, and that an additional cover letter can state the LRA’s offer to assist the VA in finding an alternate location and desire for the VA to locate in Sunnyvale.   Formal amendment failed by roll call 3-4 (Authority Members Moylan, Spitaleri, Vice Chair Howe and Chair Swegles dissented with Authority Member Lee teleconferencing).   Authority Member Hamilton stated she did not accept Authority Member Lee’s friendly amendment.   Authority Chair Swegles called for a vote on the original motion as follows:   Authority Member Hamilton moved and Authority Member Moylan seconded to approve Alternative No.1: Authorize LRA staff to communicate positions an open dialog regarding the VA interest in Onizuka AFS.  The position is to express serious reservation about the VA proposal because it would effectively reduce the reuse site size by 27%, thereby limiting the number and type of uses that might be interested in the site and reducing the economic value of the site; to offer staff assistance to the VA to find an alternate suitable site and building in Sunnyvale; and to recommend that the entire 19 acre Onizuka AFS site be declared surplus and that the VA’s interest and need for locating on a portion of the site be considered in the community reuse planning process.   Motion carried 6-1 (with Authority Member Lee dissented via teleconference). Vice Chair Howe and Authority Member Lee moved to (separate from the communication and meaning of Alternative No.1) issue communication that the Council welcomes the VA to City of Sunnyvale and are supportive of its various operations.   Motion carried 7-0 by roll call (with Authority Member Lee teleconferencing).

PUBLIC COMMENTS

Authority Chair Swegles opened Public Comments at 11:03 p.m.  No one wished to speak and Chair Swegles closed Public Comments at 11:04 p.m.

ADJOURNMENT OF ONIZUKA LOCAL REDEVELOPMENT AUTHORITY

Authority Chair Swegles adjourned the Onizuka Local Redevelopment Authority at 11:05 p.m.

Katherine Bradshaw Chappelear
Authority Clerk