The City Council of the City of Sunnyvale adjourned from a 5:30 p.m. Closed Session pertaining to: Conference with Labor Negotiators pursuant to Government Code 54957.6.  
Negotiator: Erwin Young, Director of Human Resources; Employee Organization: Public Safety Officers Association (PSOA) and a 6:30 p.m. Closed Session pertaining to:  Confer with Legal Counsel – Anticipated Litigation – Pursuant to Government Code Section 54956.9 (c); Initiation of Litigation:  1 potential case and met in Regular Session in the City Council Chambers, 456 West Olive Avenue, Sunnyvale, California at 7:00 p.m., with Mayor Swegles presiding.

PRESENT:

Mayor Ron Swegles

Vice Mayor Otto Lee

Councilmember John Howe

Councilmember Dean J. Chu

Councilmember Melinda Hamilton

Councilmember Anthony Spitaleri

Councilmember Christopher Moylan

ABSENT:

None

STAFF PRESENT:

Amy Chan, City Manager

Robert Walker, Assistant City Manager

David Kahn, City Attorney

Trudi Ryan, Planning Officer

Connie Verceles, Senior Management Analyst

Cathy Merrill, Assistant to the Director of Parks and Recreation

Marilyn Crane, Manager Information Technology Services

David Lewis, Director of Parks and Recreation

Katherine Bradshaw Chappelear, City Clerk

Vice Mayor Lee reported that the City Council met in Closed Session this evening related to: Conference with Labor Negotiators pursuant to Government Code 54957.6.  Negotiator: Erwin Young, Director of Human Resources; Employee Organization: Public Safety Officers Association (PSOA). 

Vice Mayor Lee stated that no direction was given and no action taken.

Vice Mayor Lee reported that the City Council met in Closed Session this evening related to:  Confer with Legal Counsel – Anticipated Litigation – Pursuant to Government Code Section 54956.9 (c); Initiation of Litigation:  1 potential case.

Vice Mayor Lee stated that no direction was given and no action taken.  However, due to the complexity of this item, this Closed Session will be reconvened immediately following the Council meeting.

Mayor Swegles opened Public Announcements.

Robert Lawson, Chair of the Parks and Recreation Commission, announced the current campaign to “park it” for Sunnyvale residents.  He stated the Parks and Recreation Guide’s are published four times a year and are also available on the City’s website.

No one else wished to speak and Mayor Swegles closed Public Announcements.

1.A.

Approval of Revised Draft Minutes of Regular Meeting of May 16, 2006

Councilmember Chu removed Item 1.A for the purpose of abstaining from voting on the item since he did not attend the May 16, 2006 Council meeting.

Councilmember Howe moved and Councilmember Hamilton seconded to approve the Minutes of May 16, 2006.

Motion carried 6-1 (Councilmember Chu abstained)

1.B.

Approval of Information/Action Items – Council Directions to Staff

Council approved as submitted.

1.C

RTC  06-155

List of Claims and Bills Approved for Payment by the City Manager (List No. 299 and 300)

Council approved as submitted.

1.D

RTC  06-156

Authorization for NOVA to Apply for Third Year Funding for Homeless Veterans Reintegration Project in the Amount of $275,000

Council approved as submitted.

1.E

RTC  06-171

Authorization for Department of Employment Development (NOVA) to Accept Regional Cooperation Incentive Award in the Amount of $70,000

Council approved as submitted.

1.F

RTC  06-176

Authorization to Award Contract in the Amount of $64,908 to Collaborative Economics for High-Tech Worker Follow-up Study for Department of Employment Development (NOVA)

Council approved as submitted.

1.G

RTC  06-170

Authorization for Department of Employment Development (NOVA) to Apply for STAR Dislocated Worker Funding in an Amount not to Exceed $10 million

Council approved as submitted.

1.H

RTC  06-172

Authorization for Department of Employment Development (NOVA) to Apply for Continued Disability Program Navigator Funding not to Exceed $84, 738

Council approved as submitted.

1.I.

RTC 06-167

Authorization to Modify an Existing Contract for Public Safety Uniforms and Equipment (F0505-87)

Council approved as submitted.

1.J.

RTC 06-177

Authorization to Modify an Existing Contract for Irrigation System Parts and Supplies (F0505-80)

Council approved as submitted.

1.K.

RTC 06-164

Award of Contract for Software Maintenance Services for the Integrated Financial System (F0505-85)

Council approved as submitted.

1.L

RTC  06-165

Award of Bid No. F0504-67 for Four Extended Cab Compact Pickup Trucks

Council approved as submitted.

1.M.

RTC-06-166

Second Amendment to the Agreement Between the City of Sunnyvale and Sunnyvale School District for Access and Gate Improvement at Vargas School

Council approved as submitted.

2.

RTC  06-174

Resolution of Intention to Levy and Collect Assessment for the Downtown Parking Maintenance District and Approval of the Preliminary Engineer’s Report (continued from Council meeting of May 16, 2006)

Connie Verceles, Senior Management Analyst presented the staff report.

Councilmember Moylan inquired about the option of paid parking with revenues going to the downtown.  He understood the reason staff did not recommend parking meters was due to anticipated rejection from the community. Analyst Verceles stated that paid parking would be complicated because there could be situations with parking meters on only one side of the street. Councilmember Moylan asked for clarification.  Analyst Verceles confirmed there would be concerns from the community and some projects in the downtown are self-parked (not maintained by parking district funds) which would create conflict with the parking meters.

Councilmember Moylan asked why alternatives are not listed that would not require depletion of all the reserves.  Analyst Verceles stated the reserves were collected from the property owners, not from the General Fund.  Collection of the funds from the property owners started in 1964 for two purposes: to pay off the debt from the bonds that were floated to build the parking; and for the maintenance of the parking districts.  The bonds were paid off in 2003, and since that time, the City has only been collecting assessments to maintain the district lots.

Councilmember Hamilton asked if it would be possible to offer the two-year and five-year assessments as two options on the ballot in order to allow property owners to make the decision.  Analyst Verceles stated she did not believe this was possible since the ballot must state what the individual is voting for (with a yes or no vote) and with a dollar amount listed for each item.

Councilmember Hamilton asked if the assessments were paid by the property owners and not the merchants.  Analyst Verceles stated that some “pass through” to the merchants could occur should their lease require them to pay the property taxes.  Councilmember Hamilton confirmed that this issue will not be a part of the Business Improvement District (BID) and that the BID will be primarily for marketing purposes.

Mayor Swegles opened the Public Hearing at 7:26 p.m. 

Tap Merrick asked why merchants are not required to pay for the parking maintenance since they are the benefactor of the income derived from those who utilize the parking.  Trudi Ryan, Planning Officer, stated the reason for the assessment is so that those who benefit from the parking (the merchants) would pay for the maintenance instead of the General Fund. 

Mr. Merrick confirmed with Analyst Verceles that the assessment is not a property tax assessment on individual residences; rather it is a property tax on the businesses within the boundaries of the downtown parking maintenance district.

No one else wished to speak and Mayor Swegles closed the Public Hearing at
7:28 p.m.

Councilmember Hamilton moved and Councilmember Howe seconded to approve Alternative No. 1:  Council takes four actions to give the City the necessary authority to levy and collect the assessment for public parking facilities from property owners within the Downtown Parking Maintenance District for Fiscal Years 2006/2007 and 2007/2008:

• Adopt  a Resolution of Intention
• Approve the Preliminary Engineer’s Report
• Set July 18, 2006 Council meeting as the required Public Hearing
• Authorize mailing of Notice of Proposed Assessment and ballots

Mayor Swegles stated that Council received a letter from an owner of property in the downtown area who requested that Council consider (after the passage of this year’s  assessment) that there be no further increases. 

Motion carried: 6-1 (Councilmember Moylan dissented)

3.

RTC  06-169

Preliminary Findings to Explore Neighborhood Options for Purchasing Property at Peterson Middle School Site – Study Issue

Mayor Swegles stated that he and Councilmember Howe recently attended a neighborhood meeting of residents who live near the Peterson field.

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

Councilmember Moylan asked for clarification of the alternatives listed in the staff report.  Alternative No. 2 puts further studies on hold until Santa Clara Unified School District makes a final determination; however, Alternative No. 1 states that a determination has already been made to not surplus any portion of the property at Peterson.

Assistant Merrill stated that the Santa Clara Unified School District Board gave its members direction to abandon the option of declaring the property surplus, and to look at other options.  However, it is possible that the board could still decide to surplus the property after exploring the other options. 

David Lewis, Director of Parks and Recreation, clarified that the school district staff presented four options.  The school district board asked staff to eliminate two options and submit a report on two remaining options: work on an agreement with sports groups to use the area and consideration of a working farm.  Director Lewis cautioned that the school board does have the option to review this situation again and to declare the property as surplus.

Mayor Swegles opened the Public Hearing at 7:42 p.m. 

Robert Lawson, Chair of the Parks and Recreation Commission, stated they were given six recommended alternatives to consider at the Public Hearing.  He stated the commission approved two alternatives: to give help to the residents should the area be sold, and/or City staff to cease work on this study issue report for Council should the school board not declare the site as surplus.  He stated it appears that the board has not made a final decision; therefore, he agrees that staff should continue working on this issue.

Councilmember Spitaleri asked when the school district staff would come back to the board with their report, and Mr. Lawson stated that there was not a specific date but the board wishes to resolve this issue as soon as possible.  Director Lewis stated that the school board staff is in discussion with more than one youth sports group and they are also researching the farm option.

Councilmember Howe stated that the President of the Santa Clara Unified School District (SCUSD) was present at the neighborhood meeting that he and Mayor Swegles attended.  President of SCUSD expressed that selling the property was not one of the things they plan to do.  Councilmember Howe stated that the district wishes to move as quickly as possible, but they also wish to receive input from the community before making any decision.

Tap Merrick stated that during the school board meeting, the board members mentioned that if they were unable to fund the options, they would then reconsider the sale of the eight acres.  He stated the board did express a desire to have the initial process completed by December 2006.

Councilmember Chu asked Mr. Merrick which of the two options is preferred by the residents.  Mr. Merrick stated that approximately two-thirds prefer the youth sports groups and one-third a working farm, but their main concern was to keep the property from being sold to developers.

Councilmember Chu confirmed with Mr. Merrick that the Santa Clara Unified School District did not discuss a combination of the two options.

Charles Kluz, Vice President of Sunnyvale Lions Soccer Club, spoke in favor of a sports multi-use complex at Peterson field.

Denise DeLange and Werner Gans spoke in favor of maintaining open space at Peterson field.

Bonnie Burke stated that her neighbors are not interested in the City of Sunnyvale being involved in any way with the property.  Ms. Burke stated she commends Mr. Merrick’s efforts, but she wished to inform the Council that the Peterson Committee and Mr. Merrick do not speak for all of the neighbors in the area. 

Ian Prickett stated that he is very disappointed in the way that the City of Sunnyvale has sought to avoid involvement with this issue.  He stated that, only through public involvement with the school board, the property is not being offered for sale.  Councilmember Hamilton thanked Mr. Prickett for his efforts and stated that the work of his group accomplished more than if the City had been involved.

Ikko Fushiki spoke in favor of having both an open field and a working farm at the Peterson field area and offered to help with the farm.

Eric Bernamer spoke in favor of youth sports at Peterson field.  He stated he believes the City should lease the field for City sports programs.

Austin Noronha spoke in favor of the City of Sunnyvale running sports programs at Peterson field and stated he would like to share his creative financing options/ideas with the City at the proper time.

Evelyn Dixon stated if the field becomes available, organizations from other cities are ready to purchase the field, which would require Sunnyvale clubs to lease the field from them.  She asked that the Council work with the “Save the Peterson Field” committee to find creative ways to save the field for the community’s own use.

No one else wished to speak and Mayor Swegles closed the Public Hearing at
8:15 p.m.

Councilmember Chu asked if the City leases other school fields and Assistant Merrill stated the City does have agreements with the Sunnyvale and Cupertino School Districts.  The City maintains their school fields in exchange for reserving them for use by the City’s recreation programs and youth sports groups.

Councilmember Howe moved and Councilmember Moylan seconded to approve Alternative No. 1: Council directs staff to cease continued work on this study now that the Santa Clara Unified School District has determined it will not declare any portion of the property at Peterson Middle School as surplus property.  Staff will provide any technical assistance related to the use and maintenance of sports fields as necessary upon request of the District.

with the addition of:

One or more Parks and Recreation Department staff members to be available to help the various groups to get organized and provide a place for them to meet until Santa Clara School District makes their final determination.

Councilmember Hamilton offered a friendly amendment to include that staff continue to monitor this issue and should the Santa Clara Unified School District reconsider their decision not to surplus the property, staff is to bring this issue back to Council for consideration.  Friendly amendment accepted.

Councilmember Howe commented that there is no question about the value of youth sports within our City.  The question is what can the City do with limited resources and how can we help with this project.  There is some benefit in helping people to get organized and this is the best that the City can do right now. 

Motion carried: 7-0 

4.

RTC  06-179

2006 Comcast Cable Rates

Marilyn Crane, Manager Information Technology Services, presented the staff report.

Councilmember Chu confirmed with staff that the maximum permitted increase in rate for last year was $14.80, and that Comcast did not use the maximum rate last year.

Councilmember Chu asked if Comcast is planning to make any changes to the content of their basic tier.  Manager Crane stated the same 33 basic tier channels now available are also included in their proposed programming costs for next year.

Councilmember Chu stated he believed most customers use expanded basic service and asked if Comcast indicated any price adjustments to expanded basic.  Manager Crane stated Comcast has not given any indications regarding expanded basic service. 

Councilmember Hamilton asked about the deadlines for submitting rate increases.   Manager Crane stated Comcast can request rate changes once a year (any time between June 1 and May 31 of any given year). 

Councilmember Moylan clarified with staff that Council’s role is to decide if the cable rate increase was calculated correctly according to the regulations and if so, the cable company is entitled to raise the basic cable rates by that amount.

Mayor Swegles opened the Public Hearing at 8:29 p.m.

Werner Gans spoke against the basic rate increase and stated it was not fair or equitable.  Councilmember Chu explained to Mr. Gans that last year Comcast only charged a fraction of what they are allowed to charge.

No one else wished to speak and Mayor Swegles closed the Public Hearing at
8:31 p.m.

Councilmember Spitaleri moved and Vice Mayor Lee seconded to approve Alternative No. 1:  Council determines that the Maximum Permitted Rate for the Basic Service Tier is calculated according to FCC regulations.  Council directs staff to issue a Rate Order to that effect, which allows the 2006 Maximum Permitted Rate to be $15.06 (which is $1.31 or 9.5% more than the 2005 rate), effective June 1, 2006.

Councilmember Hamilton clarified with staff that if Council were to disapprove the rate increase, Comcast could still implement the rates.  However, an appeal could be filed with the FCC, and if the FCC agreed with the City’s ruling, cable customers would receive refunds.

Councilmember Moylan stated that Council does not have many options with regard to controlling rate increases.  He stated the best way to handle the current Comcast monopoly, would be to get another cable service provider in the City.

Motion carried: 7-0

5.

RESOLUTION RTC  06-178

Charter Review Committee Options

David Kahn, City Attorney, presented the staff report.  He stated the purpose of the staff report is for Council to review the available options and decide if they want to appoint a 2006/2007 Ad Hoc Charter Review Committee.  Should Council decide to appoint such a committee, they would also need to provide direction on the selection of committee members, Charter review topics, and the committee structure and operations.  The Ad Hoc Charter Review Committee would submit recommendations by Spring of 2007 for Council to review, and then Council would determine if there were any Charter amendments for the 2007 election ballot.  Should Council request Charter amendments, then the final ballot measures must be submitted to the Santa Clara County Registrar of Voters by June 9, 2007 for the November 2007 election.   City Attorney Kahn stated Council had requested that this report be available approximately two weeks before any action was taken to allow for additional consideration and review of the options as outlined in the report. 

Mayor Swegles confirmed that he asked staff to present this report for the purpose of allowing Council to have a chance to review the options in depth and be ready to give direction at the June 13, 2006 Council meeting.

Councilmember Hamilton suggested that Council have a discussion prior to the Public Hearing.  City Attorney Kahn stated Council could defer discussion and action to a future meeting, or Council could commence discussion this evening, take public comments and/or questions regarding the staff report, but defer action and the Public Hearing to a future meeting.

Councilmember Chu verified with City Attorney Kahn that of the fourteen Charter revisions since enactment, only four of those were done by a Charter Review Committee and the remaining ten were placed directly on the ballot by Council. 
City Attorney Kahn explained that there are three ways to amend a Charter: action by City Council; placement of Charter amendments on the ballot through the initiative process; or with the election of a formal City Charter Commission to formulate a new Charter.

Councilmember Chu asked if any amendments were made by the initiative process and City Attorney Kahn stated there had not been any based on his research.

Mayor Swegles opened the Public Hearing at 8:46 p.m.

Peter Cirigliano spoke in favor of the City forming a Charter Review Committee to look at changing the way Councilmember seats are elected. 

Mayor Swegles closed the Public Hearing at 8:48 p.m.

Councilmember Chu moved and Councilmember Howe seconded to continue this item to the Council Meeting of June 13, 2006.

Councilmember Moylan made a friendly amendment that Council hold a study session regarding this item, prior to the Council Meeting of June 13.

Councilmember Chu asked if Council can have a study session on this item since the item has already been listed on the agenda and the agenda posted.  City Attorney Kahn stated this discussion would be considered a regular meeting and he would have to give thought as to how to structure the meeting.

Councilmember Moylan withdrew his friendly amendment due to problematic scheduling.

Motion carried 7-0.

COUNCIL:

Councilmember Chu stated he attended a National Security Forum during the week of May 15, 2006, and wished to state for the record that he attended at his own expense.

Mayor Swegles stated he attended the Veteran’s Memorial Service at Oak Hills Cemetery with Vice Mayor Lee.  There were Veterans and relatives of past Veterans in attendance from as far back as service in the Civil War.

STAFF:

None

• Tentative Council Meeting Agenda Calendar

• Draft Minutes of the Bicycle and Pedestrian Advisory Committee Meeting of May 4, 2006

• Study Session Summary – Special Meeting of Onizuka Local Redevelopment Authority
May 15, 2006

• Study Session Summary – Joint Meeting with the Planning Commission to Discuss Length of Planning Commission Meetings and Other Items of Interest – May 16, 2006