APPROVED MINUTES

SUNNYVALE CITY COUNCIL

TUESDAY, NOVEMBER 14, 2006

 

The City Council of the City of Sunnyvale adjourned from a 5:30 p.m. Study Session pertaining to: Disposition of City-owned Property on Charles and Mathilda Avenues, and a Closed Session at 6:00 p.m. pertaining to:  Conference with legal Counsel - Existing Litigation (Subdivision (a) of Section 54956.9). Betty and Leonard Baptiste vs. City of Sunnyvale, Santa Clara County Superior Court Case No. 1-06-CV-059931 and met in Regular Session at 7:00 p.m. in the City Council Chambers, 456 West Olive Avenue, Sunnyvale, California with Mayor Swegles presiding.

 

SALUTE TO THE FLAG

Mayor Swegles led the Salute to the Flag

 

ROLL CALL

 

PRESENT:

Mayor Ron Swegles

Vice Mayor Otto Lee

Councilmember John Howe

Councilmember Dean J. Chu

Councilmember Melinda Hamilton

Councilmember Anthony Spitaleri

Councilmember Christopher Moylan

 

STAFF PRESENT:

Amy Chan, City Manager

Robert Walker, Assistant City Manager

David Kahn, City Attorney

Robert Paternoster, Director of Community Development

Ernie DeFrenchi, Affordable Housing Manager

Trudi Ryan, Planning Officer

Jack Witthaus, Transportation/Traffic Manager

John Lawrence, Recreation Supervisor

Nancy Bolgard Steward, Superintendent of Recreation

Andrew Miner, Principal Planner

Marvin Rose, Director of Public Works

Heather Tannehill, Public Safety Casual Management

Yvette Agredano, Intergovernmental Relations Officer

Katherine Bradshaw Chappelear, City Clerk

 

SPECIAL ORDER OF THE DAY

 

Mayor Swegles presented the Presbyterian Church of Sunnyvale with a Certificate of Recognition for their 50th Anniversary.

 

CLOSED SESSION REPORT

 

Vice Mayor Lee reported that City Council met in Closed Session earlier this evening regarding: Conference with legal Counsel - Existing Litigation (Subdivision (a) of Section 54956.9). Betty and Leonard Baptiste vs. City of Sunnyvale, Santa Clara County Superior Court Case No. 1-06-CV-059931.

 

Vice Mayor Lee reported that direction was given, but no action was taken.

 

PUBLIC ANNOUNCEMENTS

 

Councilmember Howe announced that he (along with Mayor Swegles and Councilmember Spitaleri) attended a recognition ceremony for the United States Environmental Protection Agency Clean Water Act Recognition Award.  This award was presented to the Santa Clara Valley Urban Runoff Pollution Prevention Program.  The City of Sunnyvale is one of 15 agencies that make up the Runoff Pollution Prevention Program.

 

Suzi Blackman, President and CEO of the Sunnyvale Chamber of Commerce, announced the Chamber will sponsor a roundtable discussion regarding the El Camino Real Precise Plan Update on Thursday, November 16 from 3 to 5 p.m. at PF Changs Restaurant.  Directly following this meeting, the Chamber will hold their monthly mixer at CJ Olsen Cherries (right next to PF Changs) at 5 p.m.

 

Suzi Blackman stated nominations are being accepted for the Annual “Athena” Award.  This award honors women who excel in their field.  The recipient of this year’s award will be honored at the 2007 Annual Murphy Awards on February 3, 2007 at 6:00 p.m. in the Del Monte Building.

 

CONSENT CALENDAR

 

Councilmember Hamilton removed Items 1.A. 1.E, 1.Q. and 1.R. from the Consent Calendar.

 

Councilmember Howe asked that Council vote separately on Item 1.E. so that he may recuse himself.

 

MOTION: Vice Mayor Lee moved and Councilmember Howe seconded to approve the Consent Calendar with the exception of Items 1.A. 1.E. 1.Q. and 1.R.

 

Mayor Swegles opened Public Comments for the Consent Calendar.  No one wished to speak and Mayor Swegles closed Public Comments.

 

VOTE: 7-0

 

Councilmember Chu noted Item 1.A. has been revised.

 

MOTION: Councilmember Chu moved and Councilmember Howe seconded to approve Consent Calendar Items 1.A. 1.Q. and 1.R.

 

Councilmember Hamilton stated she will abstain since she was not in attendance for Item 1.A. and she did not previously vote on Items 1.Q. and 1.R.

 

VOTE: 6-1 (Councilmember Hamilton abstained)

 

1. A.

MOTION

Approval of Revised Draft Minutes of Regular Meeting of October 24, 2006

 

1. B.

MOTION

Approval of Information/Action Items - Council Directions to Staff

 

Fiscal Items

 

1. C.

RTC 06-347

 

List of Claims and Bills Approved for Payment by the City Manager - List Nos. 322, 323 and 324

 

 

Staff Recommendation: Council reviews the attached list of bills.

 

1. D.

RTC 06-341

 

Acceptance of California Office of Traffic Safety Sobriety Checkpoint Mini-Grant Funding and Approval of Budget Modification No. 23

 

 

Staff Recommendation: Council allows the Department of Public Safety to Accept the OTS Mini-grant Funds and approves Budget Modification No. 23.

 

1. E.

RTC 06-343

 

Request Approval to Purchase Below Market Rate (BMR) Ownership Properties at: 614 Arcadia Terrace #205; 601 Arcadia Terrace #203; 629 El Camino Real #415; and 629 El Camino Real #515, and Approval of Budget Modification No. 21 of $699,679 in Housing Funds

 

 

Councilmember Howe stated he owns real property in the immediate area of these properties and chooses to recuse himself to alleviate any potential conflict of interest.  Councilmember Howe left the dais.

 

Councilmember Hamilton asked why the City is waiting for Spring 2007 to open the affordable housing list since the wait list has been exhausted.  Ernie DeFrenchi, Affordable Housing Manager, stated purchasing these units is a preventative measure to prevent losing them for the affordability program.  He stated these properties are one-bedroom units which are harder to market and sell; therefore, staff does not want to open the list just for the one-bedroom units.  Councilmember Hamilton confirmed that the list is not for just one type of unit; rather it is open for all units.

 

MOTION: Councilmember Hamilton moved and Councilmember Moylan seconded to approve staff recommendation:  Council approves Budget Modification No. 21 to appropriate $699,679 for the initial purchase and ongoing costs associated with the subsequent resell of four BMR properties.

 

VOTE: 6-1 (Councilmember Howe recused)

 

Councilmember Howe returned to the dais.

 

1. F.

RTC 06-338

 

Authorization for the Acceptance of a Grant Award from the Bay Area Air Quality Management District for the Fiscal Year 2006/2007 Vehicle Incentive Program and Approval of Budget Modification No. 22.

 

 

Staff Recommendation: Council accepts the BAAQMD VIP grant awarded to the City for the purchase of four hybrid-powered vehicles and approve Budget Modification No. 22.

 

1. G.

RTC 06-339

 

Authorize City Manager to Execute Grant Agreements from the Santa Clara Valley Transportation Authority FY 2006/07 Transportation Fund for Clean Air Program Manager Grant Funds and Budget Modification No. 17

 

 

Staff Recommendation: Council authorizes the City Manager to execute the Grant Agreement from the Santa Clara Valley Transportation Authority FY 2006/07 Transportation Fund for Clean Air Program Manager Grant Fund and authorize Budget Modification No. 17.

 

 

Personnel Items

 

1. H.

RTC 06-342

 

Renewal of Contracts for Dental Insurance for Calendar Year 2007 and Vision Insurance for Calendar Years 2007 and 2008.

 

 

Staff Recommendation: Council authorizes renewal of the dental insurance contract with Delta Dental Plan for the period January 1, 2007 through December 31, 2007 and renewal of the vision insurance contract with Vision Service Plan for the period January 1, 2007 through December 31, 2008.

 

1. I.

RESOLUTIONS

RTC 06-352

 

City Manager and City Attorney Salary: Adjustment to Control Point

 

 

Staff Recommendation:  None

 

1. J.

RESOLUTION

RTC 06-356

 

Amendment to the Schedule of Pay of the Salary Resolution: Salary Adjustment for Pay Plan Category C (applies to classified Public Safety Officers and Lieutenants) and  Approval of Budget Modification No. 26

 

 

Staff Recommendation: Council amends Section 2.200 (Category C) of the Schedule of Pay of the Salary Resolution to reflect the new pay rates, effective retroactive to July 2, 2006 and approves Budget Modification No. 26.

 

1. K.

RESOLUTIONS

RTC 03-351

 

Amendment of the City’s Contribution for CalPERS Medical Insurance for SEA and SEIU Annuitants (Retirees)

 

 

Staff Recommendation: Council adopts the resolutions amending the City’s contribution for medical insurance with CalPERS in compliance with the Public Employees’ Medical and Hospital Care Act, and the Salary Resolution to reflect the change in contribution.

 

 

Contracts

 

1. L.

RTC 06-348

Acceptance of Purchase and Sale Agreement Between City of Sunnyvale and Sunnyvale T&C, LLC for 2.02 Gross Acres of City Property at Town and Country Village and Approval of Request for Assignment to Downtown Sunnyvale North, LLC

 

 

Staff Recommendation:

1)  Council accepts report on Purchase and Sale Agreement for City property at Sunnyvale Town and Country Village Center for $8.5 million subject to negotiation and resolution of environmental issue; and

2)  Council approves request for assignment of Purchaser’s interest in the property to Downtown Sunnyvale North LLC pursuant to Section 12.8 of Purchase and Sale Agreement, subject to City Attorney review and approval of assignment document.

 

1.M.

RTC 06-354

 

Award of Contract for Golf Merchandise to be sold in Golf Course Pro Shops (F0610-42)

 

 

Staff Recommendation:  

1)  Council awards a one-year contract, in substantially the same form as the draft blanket purchase order and in an amount not to exceed $120,000, to Acushnet Company for golf merchandise for resale to the public; and

2)  Council delegates authority to the City Manager, or her designee, to execute an option to extend the contract two additional one-year periods if pricing and service remain acceptable to the City.

 

1. N.

RTC 06-345

 

Authorization to Increase Expenditures Under an Existing Contract for Heating, Ventilating and Air Conditioning Services (F0610-43)

 

 

Staff Recommendation: Council increases authorized expenditures by $25,000 under an existing blanket purchase order with Golden Gate Mechanical, Inc., for emergency heating, ventilating and air conditioning services, making a total one-year contract amount not to exceed $75,000.

 

1. O.

RTC 06-350

Award of Request for Proposals No. F0506-94 to Install and Maintain Specialized Home Access Equipment in Sunnyvale Residences for Eligible Disabled Citizens

 

 

Staff Recommendation:

1)  Council awards a one-year contract in an amount not to exceed $70,000 per year, to Access Options, Inc., to install and maintain specialized home access equipment in Sunnyvale residences for eligible disabled citizens; and

2)  Council delegates authority to the City Manager to exercise an option to extend the contract for one additional year, provided that pricing and service remain acceptable to the City.

 

Other

 

1. P.

RESOLUTION

RTC 06-340

 

Request for Authorization by Resolution for the Mayor to Execute a Cooperative Agreement with the California Department of Transportation for the Borregas Avenue Bicycle/Pedestrian Bridges

 

 

Staff Recommendation:  Council approves the proposed resolution and authorizes the Mayor to execute the Cooperative Agreement for the Borregas Bicycle/Pedestrian Bridges project with the California Department of Transportation.

 

 

1. Q.

ORDINANCE

No. 06-2817

 

Council adopts Ordinance No. 2817-06 Amending the Precise Zoning Plan, Zoning Districts Map, to Rezone Certain Properties from M-S (Industrial and Service) Zoning District to M-S/POA (Industrial & Service/Places of Assembly) Zoning District

 

1. R.

ORDINANCE

No. 2818-06

Council adopts Ordinance No. 2818-06 Amending the Precise Zoning Plan, Zoning Districts Map, to Rezone Certain Property Located at 1280 Poplar Avenue from R-2 (Low-Medium Density Residential) to R-2/PD (Low-Medium Density Residential/Planned Development) Zoning District

 

 

STAFF RESPONSES TO PRIOR PUBLIC COMMENTS

 

Amy Chan, City Manager, responded to neighborhood concerns regarding the Samoan Congregation Church located at 1028 E. Ahwahnee Street.  She stated that Public Safety staff met with the church representative (who has committed to working cooperatively with the City).  Public Safety staff will be working with other City departments to ensure that the issues are addressed.  The citizen who brought this item forward has been contacted regarding the City’s actions.

 

PUBLIC COMMENTS

 

Theresa Stewart stated she would like to hear from developers about making Downtown more green and sustainable.  She said she does not want to see more stores downtown, but would like a teen center, skate park, and gardens.

 

Chris Todd, Sustainable Roundtable Board, offered suggestions for developers of the Town Center to make the downtown more sustainable.

 

Josh Salans shared his ideas for the criteria that should be used in selecting an architect for the Downtown Project.

 

Jacqueline Graham stated her approval of the City’s Visioning event and congratulated the City on involvement with the Santa Clara Valley Urban Runoff Pollution Prevention Program.  She stated concerns over limitations of natural resources and encouraged sustainable, green buildings throughout the City and Downtown.  She explained there is a “LEED” rating system which means Leadership in Energy and Environmental Design, which Sunnyvale should embrace in all building practices.

 

PUBLIC HEARINGS/GENERAL BUSINESS

 

2.

ORDINANCES

RESOLUTIONS

RTC 06-357

 

 

 

Moffett Towers, LLC [Applicant] Jay Paul & Associates and Lockheed Martin Missiles and Space [Owners]: Application for related proposals on three parcels totaling 78.5 acres at 1111 Lockheed Martin Way (near H Street and 11th Avenue) to consider the development of seven eight-story office buildings (1,741,081 sq. ft.), three 4½ level parking structures, and a 40,000 sq. ft. amenity building: Certify Final Environmental Impact Report and adoption of Statement of Overriding Considerations and approval of the Mitigation Monitoring and Reporting Program; Specific Plan Amendment to change the land use designation of Lot 3 from MP-I to MP-TOD and various related text amendments; Rezone Lot 3 from MP-I (Moffett Park – Industrial) to MP-TOD (Moffett Park – Transit Oriented Development); Amend Title 19 of the Municipal Code (Zoning) to permit structures of 130 feet where 125 feet is currently permitted in the MP-TOD zoning district; and Major Moffett Park Design Review Permit for site plan and architecture.

 

 

Mayor Swegles asked the Council if they wished to make disclosures on this matter. 

 

Councilmember Howe stated he met with representatives (about a year ago) on this concept, but discussed nothing in detail.

 

Councilmember Moylan stated he met with the applicant a few weeks ago about this project.

 

Councilmember Chu stated he had a phone conversation with the applicant earlier this afternoon.

 

Councilmember Hamilton stated she met with the applicant about six weeks ago, but this topic was not discussed.

 

Councilmember Spitaleri stated he met with the applicant a few weeks ago regarding this project.

 

Vice Mayor Lee and Mayor Swegles stated they met with the applicant about three months ago regarding this project.

 

Trudi Ryan, Planning Officer, presented the staff report.

 

Councilmember Hamilton verified that the current height limit for all of the Moffett Park – Transit Oriented Development (MP-TOD) area is one hundred twenty-five feet, and the Ordinance as currently written does not provide for an exception to this height limit for the MP-TOD area.  Any height limit change would require a Variance.  If Council feels the height limit should be increased to one hundred thirty feet, Council would need to adopt the proposed amendment to the Ordinance as identified in Attachment F. 

 

Councilmember Hamilton verified with Planning Officer Ryan that there is an error on Attachment F of the staff report, page 1 and 2 as the height limit should state one hundred thirty feet, not one hundred twenty-five feet.

 

Councilmember Howe verified that the Moffett Park Specific Plan requires that when a project goes to a 70% floor area ratio (FAR), the Transportation Demand Management Program requires 20% total reduction in vehicles and a 30% peak hour reduction.  The new development would need to comply with the 20/30% reduction. 

 

Councilmember Howe asked how long this development could be delayed before the developer would have to come back for additional approval and a Public Hearing.  Planning Officer Ryan stated the developer would like to start as quickly as possible and each building would take up to a year to complete.  Normally, a permit is good for two years; however, in the Moffett Park area, a project that has approved access to the development reserve could prepay their traffic mitigation fees by 25%, which would allow the permit for the project to extend to seven years.  

 

Vice Mayor Lee asked staff to explain the Leadership in Energy and Environmental Design (LEED) levels.  Planning Officer Ryan stated the basic level is entitled “Certified” and subsequent levels are “Silver”, “Gold” and “Platinum” with 60 points as the highest level.  Planning Officer Ryan stated this project would be required to meet the intent of LEED Certified per the Moffett Park Specific Plan.   Currently, there is not a requirement in the Moffett Park area for projects to be submitted for formal certification by the U.S. Green Building Council, but the applicant would be willing to meet that formal application.

 

Councilmember Moylan asked staff to explain rationale in supporting the General Plan Amendment that would turn Parcel 3 into zoning for the Transit Orientated Development (TOD), when none of Parcel 3 is within walking distance of transit.  He verified that Parcel 1 and 3 are to be viewed as linked because the Moffett Park Specific Plan states if a certain fraction of a parcel is within walking distance of transit, it counts as being TOD.  Officer Ryan added that they are linked because they are adjacent and linked through their design.  She stated there would be an expectation that when Parcel 3 develops, it avails itself to the proximity to light rail.  She stated staff hesitated because of the distance issue; however, because it is a highly visible area, it serves as a gateway to the City and creates a visual entry along the edge of Moffett Field which could be of value to the City in promoting Moffett Park as Class A office space.

 

Councilmember Moylan verified that all three parcels are owned by different entities.  He stated the ability to define Parcel 3 as part of a lot that is close to the light rail station depends on it being transferred and becoming unified with Parcel 1, which has not happened.  He asked what is to stop the owner of any other lot in Moffett Park from saying they also want to be TOD and developing their lot up to 70% FAR.  Planning Officer Ryan stated staff is recommending that Council include language and modify the text of the specific plan to be clearer (rather than look at who owns the property).  When something is outside of the average distance, that it is designed in a cohesive manner with other properties to provide those linkages.  Page 17 of the staff report highlights a proposed text amendment that describes what someone would have to do to be considered MP-TOD if outside the area.

 

Councilmember Moylan stated that criteria appeared to be tailored to this project and asked if it is staff’s expectation that another project in Moffett Park could meet those expectations.  Planning Officer Ryan stated that currently the twenty-five acre Network Appliance campus is a similar parcel. 

 

Councilmember Moylan asked if Council has the option to make the General Plan Amendment conditional upon Parcel 1 and 3 being formally linked at some point and made into one (one parcel owned by one entity) so legitimately half of the entire parcel is within walking distance of transit and distinctions would not be an issue.  Planning Officer Ryan stated a General Plan Amendment does not generally have conditions, but through the Development Agreement, Council could reserve the right to change the designation on properties if certain performance standards are met.

 

Councilmember Moylan stated he is looking for reassurance that this does not become a mechanism under which some property (that is not within walking distance of transit), would immediately be eligible for development at 70% FAR.

 

Councilmember Moylan asked about the combination of Parcel 1 and the Ariba Parcel (two parcels that are not the same).  He asked what would stop the Ariba Parcel from being subsequently sold after Council approves this item and then the new owner claiming they are next to the light rail station and developing to 70% FAR; thereby, leaving Parcel 1 at 86% FAR.  Planning Officer Ryan stated Ariba is part of the application and if approved, Ariba and Parcel 1 would be at 70% and that would be the highest FAR percentage they could obtain.  Councilmember Moylan asked if this would eliminate the dividing line between the two parcels and they would become one entity.  Officer Ryan stated it would eliminate the dividing line for FAR calculations, but they can still be independent parcels.  From the permit standpoint, the entire site would be limited to a total of 70% FAR.  Councilmember Moylan verified that the parcel locations per the County Assessors point of view and where the parcels are located from the point of view of counting FAR do not have to be the same.

 

Councilmember Chu inquired about the status of the process to resolve which alternative reservation the City will choose.  Jack Witthaus, Transportation/Traffic Manager, stated staff is pursuing a capital project (an environmental analysis and conceptual engineering – Caltrans document) which is called a project study/projects (PSR/PR) report for the Mary Avenue Extension that will be submitted to Caltrans for consideration.  Staff will bring alternatives for Mary Avenue to the Council during the environmental process.  Currently, staff is at 95% geometric alternatives, the PSR/PR document has been drafted, and the environmental process was just initiated.  Manager Witthaus also stated that staff is approximately 40/45% through the project and anticipates coming to Council in August 2007 with a decision.  Councilmember Chu verified that in August 2007 Council would decide among two alternatives (northern end, or no project). 

 

Councilmember Chu stated that the first reservation was made in 1985 and the second reservation was more recent. He verified that the second reservation follows the original property line of Parcel 1 (essentially a place holder for an alignment that would go to 11th Avenue), but was not based on any project drawings.  Manager Witthaus stated that in 2004 Council considered the State Route 237 Quarter Study which looked at a number of improvements in the Mathilda/237 area including the Mary Avenue Extension.  It was a traffic modeling exercise to see how traffic would flow with the Mary Avenue Extension and it was determined that given the changes in land use, an alignment to 11th Avenue could better circulate traffic into the Moffett Park area,.  The second alignment is in place based on the concept of connecting to 11th Avenue, but currently it all resides on Parcel 1.  As staff moves further along with the geometric design, it may be necessary to use part of the Ariba Parcel to actually build a Mary Avenue Extension to 11th Avenue. 

 

Councilmember Chu asked if the reason staff is not able to determine which of the two alternatives is best is due to the current status of the engineering.  Manager Witthaus stated that was correct and verified that staff is at about 95% geometrics and plans to come back to Council with a decision in August 2007.

 

Mayor Swegles opened the Public Hearing at 8:06 p.m.

 

Jay Paul, applicant, spoke about his project and stated this will be one of the first green projects in Santa Clara County.  He explained that the project will include an amenities building (which will have a gym) for the occupants to use.  Mr. Paul stated he expects the project to be built within a few years. 

 

Mr. Paul stated there is a road issue he would like Council to address because it affects how quickly his company can build a second building.  The issue regards the reservation that goes along the property line (that was in place when he received the parcel map).  He owns both properties and if the Mary Avenue road is built, he is willing to give a right-of-way that would straddle both the Ariba Parcel and his parcel in an alignment that is more beneficial to the City.  It would more effectively address the road overpass than the existing situation.  If it is not appropriate for Council to discuss this now, then he would like this item added to another agenda in December; otherwise, his company will have to delay their building plans. 

 

Tom Gilman, architect with DES Architects, stated the approach for this project was to create a unified campus, which is reflected in how the buildings are clustered and how they meet the open spaces.  He stated the design includes 35% landscaping of the entire site as compared to a 20% requirement by the City.  A major factor of the project is to create a strong pedestrian linkage from the light rail through the project to every building.  Artwork will be distributed along the project’s pathway and the City right-of-way.  Mr. Gilman confirmed the campus was designed as a sustainable green campus. 

 

Councilmember Howe verified that staff understands the right-of way of both parcels as described by Mr. Paul.  Manager Witthaus stated there is an existing Offer to Dedicate and Mr. Paul is talking about adjusting that Offer to Dedicate to address where staff thinks the road will actually go.  Councilmember Howe asked if there were any downside to meeting Mr. Paul’s request.  Manager Witthaus stated the issue is procedural and without a downside.  The Offers to Dedicate would remain in place until Council makes a decision on one alignment or another.  Based on the geometric information staff developed for the Mary Avenue Extension Project, Mr. Paul’s request would be a refinement of the Offers to Dedicate by putting them in the right place to support the alternatives.

 

Amy Chan, City Manager, stated Council previously directed staff to have the two reservations preserved.  She stated Council has two choices:  1) direct staff to make the decision or 2) direct staff to bring a report back to Council after December 2006. 

 

Councilmember Howe expressed concerns about timing for the project and confirmed with Mr. Paul that he will start construction as soon as possible and he does not have intentions to use the full time limit of seven years.  Mr. Paul stated if Council could direct staff to make the decision on the right-of-way that could assist in moving the project forward.

 

Vice