The City Council of the City of Sunnyvale met in a Special Meeting in the City Hall Council Chambers 456 West Olive Avenue, Sunnyvale, California at 7:00 p.m. with Mayor Swegles presiding.

PRESENT:

Mayor Ron Swegles

Councilmember John Howe

Councilmember Dean J. Chu

Councilmember Melinda Hamilton

Councilmember Anthony Spitaleri

Councilmember Christopher Moylan

ABSENT:

Vice Mayor Otto Lee  (excused)

STAFF PRESENT:

Amy Chan, City Manager

Robert Walker, Assistant City Manager

David Kahn, City Attorney

Robert Paternoster, Director of Community Development

Marvin Rose, Director of Public Works

David Lewis, Director of Parks and Recreation

Katherine Bradshaw Chappelear, City Clerk

2.

RTC 06-219

Consideration of Funding for Enhanced Murphy Avenue Street Maintenance and Budget Modification No. 1  

Marvin Rose, Director of Public Works, presented the staff report.

Councilmember Moylan asked if an overall level of service could be established; whereas, areas heavily used would require more maintenance than lightly used areas, but the service level would be consistent throughout.  Director Rose stated that staff does use a service level approach, but the definition of cleanliness is subjective.  In the past, Council has identified specific items for cleaning.

Councilmember Hamilton asked Robert Paternoster, Director of Community Development, when the Business Improvement District (BID) and Parking Improvement District (PID) study will come back to Council for consideration.  Director Paternoster stated it is a
two-fold study and that the first phase (feasibility study) has been completed.  More information was requested from the consultant regarding the second phase and the report will be on the Council agenda in July or early August.  Director Paternoster stated that second phase is the formation section, and then it will go out for a vote to all property owners downtown.  Councilmember Hamilton confirmed that after the second phase, should a majority of the qualified business owners not vote for it, the organization would not be formed. 

Councilmember Hamilton asked Director Rose if the BID/PID is not formed, does the City have another plan or will the City fund this maintenance indefinitely.  Director Rose answered that the staff report identifies the current level of service and that is the level staff would revert back to for Murphy Avenue if the BID or PID is not formed.

Mayor Swegles opened the Public Hearing at 7:16 p.m.

Dave Whittum, Anne Dugan, Glee Jarvela, Dottia Bilic, and Joe Antuzzi spoke in favor of continuing the additional funding to keep the enhanced Murphy Avenue street maintenance. 

Werner Gans spoke against continued special treatment for this area. He stated the business owners need to keep the area clean and that citizens concerned about the condition of the downtown could volunteer their time. 

Michael Johnson, Director of the Downtown Association, spoke in favor of continuing the level of cleaning instituted over the past six months because this service is an essential component of the downtown’s viability.  He stated Murphy Street draws more pedestrians than any other street in the City, and as a host to the City’s annual events, the street automatically requires more attention. 

Harriet Rowe stated there should be a compromise between the business owners and the City for the cleaning of Murphy Avenue.

No one else wished to speak and Mayor Swegles closed the Public Hearing at 7:41 p.m.

Councilmember Hamilton asked Director Rose where the revenues from the Summer Series are applied and Director Rose stated he did not know the specifics, but that a portion is for cleanup and staff time needed to set up barricades.  Amy Chan, City Manager, stated that specific information regarding the revenues will be provided to Council in a Friday Report.

MOTION:  Councilmember Spitaleri moved and Councilmember Moylan seconded to approve Alternative No. 1:  Approve funding of enhanced maintenance services on the 100 block of Murphy Avenue at the existing level of $35,000 for one year only, and adoption of Budget Modification No. 1 in the amount of $35,000.  

Mayor Swegles offered a friendly amendment to also include Alternative No. 3:  Approve funding of the Tree Light Replacement and Operation in the amount of $7,000 for one year only.

Friendly amendment accepted.

Councilmember Howe stated approval of the service for one-year is short sighted and asked the maker and second of the motion for their long-term solution.  Councilmember Spitaleri stated that as the economy improves, the ability to fund the street cleaning at the past level may be an option.  He stated it is prudent to approve this item on a yearly basis until the City is able to restore the level of service.

Councilmember Moylan stated that it is his intent that this would be a temporary measure to help the businesses move forward until they do not need additional assistance from the City.

Councilmember Howe stated this issue should have been dealt with at the 2006 budget workshop.  He offered a friendly amendment that this issue be addressed for future funding at the 2007 Budget Workshop and adoption of the budget, not at a special meeting.

Friendly amendment accepted.

VOTE:  Motion carried: 6-0 (Vice Mayor Lee absent) 

3.

RTC 06-220

Confirmation of Council’s Intent Related to Use Fees for Plaza Del Sol

Cathy Merrill, Assistant to the Director of Parks and Recreation, presented the staff report.

Mayor Swegles read a statement as to why he brought this item forward.  He stated he does not want to circumvent the budget approval process, but wants to entertain a temporary fee reduction for Plaza Del Sol until a fee study has been completed.  Mayor Swegles stated the Plaza was rented only once last year.  In order to increase use and income, the fee should be lowered and the effects studied. 

Councilmember Howe confirmed that the rental fee for Plaza Del Sol is $200 per hour (with an eight-hour maximum) for a total of $1,600 a day. 

Councilmember Chu confirmed that the Arboretum (Heritage Center) rents for $165 for a two-hour minimum ($90 per hour thereafter) and discounted rates to Sunnyvale residents and Sunnyvale non-profit organizations are also available.  Similar discounts for Plaza Del Sol are not available.

Councilmember Moylan confirmed the fee for Plaza Del Sol was established in December 2005 and that there has only been one use since the fee was established.  He asked staff if they recommend this item as a study issue or do they recommend lowering the fee and then revisiting the fee on an annual basis.  David Lewis, Director of Parks and Recreation, stated staff would prefer to study this issue to identify strategies to maximize usage and to explore a pricing structure based on the diversity of activities that could be held there.

Councilmember Hamilton asked about the feasibility of separate charges (per individual event based on event type) until the study was completed.  Director Lewis stated it would be possible to charge each event based on type of use.

City Manager Chan stated Council previously set policy to charge a fee with the fee set by staff; therefore, this is an administrative fee which can be changed by staff.  She stated it is important to look at how many people actually inquire about use regardless of the fee structure.

Mayor Swegles opened the Public Hearing at 8:17 p.m.

Dave Whittum stated he is in favor of the study issue and adding grass, trees and play equipment would make the area more desirable.

Harriet Rowe stated opposition to the study issue because of the potential delay. She offered a suggestion to reduce rental fees for two-day rentals.  She stated the amenities are not complete at the Plaza and do not warrant top dollar rental fees. 

Michael Johnson, Executive Director Downtown Association, stated he was considering the Plaza for a blues and jazz festival later in the summer, but was concerned about time constraints and fees.  He stated the City needs to encourage use of the facility.

Peter Cirigliano stated restrooms are needed.  Director Lewis noted restrooms are included in Phase 2 of the Plaza Del Sol Project that will be designed in Fiscal Year 2006/2007 and completed in Fiscal Year 2007/2008.

MOTION:  Councilmember Howe moved and Councilmember Spitaleri seconded to approve $32,000 ($3,200 per month for a period of ten months) through May of 2007 to provide free use (with a cleaning deposit) of Plaza Del Sol by community groups having broad community support.  Funding to come from the General Fund-Service Level Enhancement Fund and staff to pursue the Study Issue “Review Rental Fees for Plaza Del Sol”.

Councilmember Moylan asked for clarification on the subsidy. He understood actual cost to the Department of Parks and Recreation would be for clean up, and per the motion would be charged to the customer.  Therefore, why would Parks and Recreation need a subsidy? 

Councilmember Howe stated the Parks and Recreation Enterprise Fund is currently operating at a deficit.  The motion states that the Department of Parks and Recreation may rent the facility at the rate of $3,200 per month for ten months and be made revenue neutral by the subsidy. He stated the Parks and Recreation Director or the City Manager may use discretion when granting the subsidy, but it shall only be used for broad-based community events. The intent of the motion is to encourage usage, and assist the department in promoting this venue without making deeper cuts into their budget. The department must use the money in order for the subsidy to transfer into their fund, and any funds not used will stay in the General Fund.

Councilmember Moylan asked how Parks and Recreation will handle the subsidized money, and Councilmember Howe stated it would go into the Parks and Recreation Enterprise Fund (up to the limit of $32,000 over the next ten months), the same as if a community member had rented and paid for the space. 

Councilmember Hamilton stated that the Director of Parks and Recreation should set the fee per event since there are differences among events and should be charged accordingly per the Director’s discretion.  For example, should an event charge an admission fee, the City should not subsidize that type of event.

Councilmember Chu asked what the department had budgeted for rental revenue from Plaza Del Sol.  Director Lewis stated revenues and expenses were not budgeted for Plaza Del Sol.  Councilmember Chu stated that a subsidy to assist with the budget does not make sense since the budget did not anticipate any revenue. 

Councilmember Chu offered a friendly amendment to allow the Parks and Recreation Department to set the rental rate per event (so that it is cost neutral) and receive adequate cost recovery within the cleaning charge.  No money shall be taken from the General Fund.

Councilmember Howe did not accept the friendly amendment.  Councilmember Chu asked for clarification on the cleaning deposit.  Councilmember Howe stated the group may clean up the site themselves or have the costs deducted from their cleaning deposit.

Councilmember Hamilton asked what is involved in cleaning the Plaza after an event.  Director Lewis stated it depends on the type of use and number of people.  It can require very little cleaning to a major cleaning effort. 

VOTE:  Motion carried 4-2 (Councilmembers Chu and Hamilton dissented, Vice Mayor Lee absent)

COUNCIL:

Mayor Swegles noted that he had just returned from Sacramento where he attended a Senate hearing on telecommunications issues and city franchises.  He stated the Legislature is working on maintaining the government channel and attempting to have telephone and cable services available to all parts of cities. They are also studying telecommunication fee structures for all cities. 

Councilmember Chu announced the 2006 State of the City will be held on July 4, 2006 at Washington Park.

STAFF:

None