PRESENT:

Mayor Otto Lee

Vice Mayor Anthony Spitaleri

Councilmember John Howe

Councilmember Dean J. Chu

Councilmember Melinda Hamilton

Councilmember Christopher Moylan

ABSENT:

Councilmember Swegles (Excused)

STAFF PRESENT:

Amy Chan, City Manager

Robert Walker, Assistant City Manager

David Kahn, City Attorney

Robert Paternoster, Director of Community Development

Mike Curran, Director of Employment Development

Erwin Young, Director of Human Resources

Annabel Yurutucu, Housing Officer

Katherine Bradshaw Chappelear, City Clerk

1. A.

Approval of Draft Minutes of Special Meeting of December 15, 2006

1. B.

Approval of Draft Minutes of Regular Meeting of December 19, 2006

Councilmember Chu requested that on Page 5, Item No. 4, within the third paragraph, the word “reduced” be replaced with “receiving”.

MOTION: Councilmember Chu moved and Councilmember Howe seconded to approve the draft minutes as amended. 

VOTE: 6-0 (Councilmember Swegles absent)

1. C.

Approval of Information/Action Items - Council Directions to Staff

1. D.

RTC 07-005 

List of Claims and Bills Approved for Payment by the City Manager - List Nos. 330 and 331

Staff Recommendation: Council reviews the attached list of bills.

1. E.

RTC 07-006

Notice of Intent to Apply for Satterberg Foundation Invitational Grant for a Crime Prevention Program

Councilmember Howe stated he pulled this item in order to read written comments from Councilmember Swegles in which he thanked Public Safety for finding grant funds to assist with added surveillance within neigborhoods that need extra protection.

MOTION: Councilmember Howe moved and Vice Mayor Spitaleri seconded to approve Alternative No. 1: Council authorizes the Department of Public Safety to proceed with the Satterberg Foundation grant application.

VOTE: 6-0 (Councilmember Swegles absent)

1. F.

RTC 07-002

Proposal to Host the 2007 Bay Area Senior Games Table Tennis Competition in Sunnyvale and Approval of Budget Modification
No. 28

Councilmember Howe stated he pulled this item in order to read written comments supplied by Councilmember Swegles in which he acknowledged the world class ping-pong players in Sunnyvale and expressed regret that Council will not be able to observe any of the upcoming matches due to business travel.

Councilmember Hamilton expressed concern over funding for this proposal.  She verified that a condition may be added to this proposal that would require the event to come back to Council for futher consideration should the impact to the fund increase (over a certain amount determined by the maker of the motion).

MOTION: Councilmember Howe moved and Vice Mayor Spitaleri seconded to approve Alternative Nos. 1, 2, and 3:

1) Council approves the request from the Bay Area Senior Games organization to provide the Indoor Sports Center for the table tennis competition on March 11, 2007 and to provide transportation of the table tennis tables to and from the Indoor Sports Center at no cost to the Bay Area Senior Games organization.

2) Council approves Budget Modification No. 28 in the amount of $1,185 for FY 2006/2007 representing a transfer from the General Fund to the Community Recreation Fund to cover the cost and loss of revenue associated with increasing the service level to provide the venue for the 2007 Bay Area Senior Games Table Tennis Competition.

3) Council approves an increase in the amount of $1,185 beginning in FY 2007/2008 to the General Fund subsidy to the Community Recreation Fund to cover the cost and loss of revenue associated with increasing the service level to provide the venue for table tennis at the annual Senior Games held in the Bay Area.

Councilmember Hamilton offered a friendly amendment requiring staff to come back to Council should the event costs exceed $5,000. 

Friendly amendment accepted.

VOTE: 6-0 (Councilmember Swegles absent)

1. G.

RTC 07-008

FY 2006/2007 Department of Employment Development Expenditure and Revenue Update, Impact on Allocated Personnel Positions, and Approval of Budget Modification No. 31

Mike Curran, Director of Employment Development, stated he was available to answer any questions.

Pamela Dunn, President of Sunnyvale Employees Association, asked Council to consider extending medical coverage (Consolidated Omnibus Budget Reconciliation Act-COBRA) for the affected employees for an additional three months (as previously done with reductions in workforce) and offering priority placement within positions currently open, as well as, any that may open up in the next three months.

Councilmember Howe verified that the affected employees are currently being considered for openings they qualify for within the City.

Director Curran stated that current vacant positions, and those that will become open within the next month, have been listed as “Closed Promotional” in order to allow an opportunity for the affected employees to apply for these positions, in addition to other City employees. 

Councilmember Howe verified that a re-employment list will exist for up to five years, which would re-employ affected employees to their previously held positions.  However, once the employee is laid off, there would not be any priority consideration for other positions.

Councilmember Howe verified that the affected employees will receive priority in the North Valley Job Training Consortium (NOVA) programs, which provide assistance in obtaining another job.

Councilmember Hamilton asked what the cost would be to provide COBRA benefits for the affected employees as requested.  Erwin Young, Director of Human Resources, stated the exact cost would depend on the number of family members and could be upwards of a $10,000 expenditure. 

Director Curran stated each employee represents $42,000 in savings (salary and compensation).  He stated because these positions are not grant funded, the additonal funds needed for any extension in benefits would not come from grant funds.  Grant funds represent 99.9% of available funds.

Director Young stated a provision for this expenditure does not exist in the memorandum of understanding (MOU).  He stated to provide a benefit outside of the MOU is an inappropriate practice without negotiation. 

Amy Chan, City Manager, stated if an extension for COBRA were to be considered by the Council, the funding would need to come from the General Fund, as it is not eligible for grant funding. 

Councilmember Moylan asked if Council wished to adopt a policy in which all employees funded by grants would be hired as temporary or contract employees, and could that be done in a report to Council or would it require a study issue.  He stated to hire employees who are funded by grant funds as regular employees and then lay them off when the grant funds run out is not a good practice and needs to be revised.

City Manager Chan stated she would like to discuss this issue with staff and will return to Council with a response. 

MOTION: Councilmember Howe moved and Vice Mayor Spitaleri seconded to approve Alternative No. 1: Council approves Budget Modification No. 31

with: staff to schedule a Closed Session in the next thirty days (well before the affected employees are laid-off) for Council to consider and provide direction on potential COBRA or other benefits for employees identified for layoffs.

VOTE: 6-0 (Councilmember Swegles absent)

1. H.

RTC 07-001

Budget Modification No. 27 to Appropriate Funds from the City Housing Fund and the Federal Community Development Block Grant (CDBG) to Support Housing Program Activities for the Remainder of FY 2006/2007

Councilmember Howe stated this item appears to be identical to Item No. 2 on the agenda and asked staff to explain.

Annabel Yurutucu, Housing Officer, stated Item No. 2 is a specific request for a loan of $2.1 million from City Housing Funds to the Mid-Peninsula Housing Coalition for the Acquisition of 662 Garland Avenue.  She continued that this item is a budget modification to approporiate monies from several City Housing Sub-Funds to support the programmed activities of the Housing Program for the remainder of the year.

Councilmember Howe stated he pulled this item in order to read written comments supplied by Councilmember Swegles who thanked staff for an informative report and stated his support for staff’s recommendation.

MOTION: Councilmember Howe moved and Vice Mayor Spitaleri seconded to approve Alternative 1:  Council approves Budget Modification No. 27 to:

A)          Appropriate $6,240 from the Housing Fund/Housing Mitigation Sub-Fund Reserve to pay for the City’s share of conducting a federally mandated County-wide Homeless Count and Survey;

B)          Appropriate $1,250,000 for First Time Homebuyer Down Payment Assistance loans from the Housing Fund/BMR In-Lieu Reserve in order to assist twenty-five additional Below Market Rate (BMR) purchasers with down payment loans;

C)          Appropriate an additional $5,000 from the Housing Fund/BMR In-Lieu Reserve to support outreach efforts of the re-opening of the BMR wait list in early 2007 to the business community and;

D)          Appropriate an additional $35,000 from the Housing Fund/Housing Mitigation Sub-Fund Reserve to support the costs of professional services to develop a preliminary feasibility plan and initial appraisal costs for development process for the property at Fair Oaks/237 and to assist with property negotiations with the County of Santa Clara on a County-owned site at Fair Oaks and Garland Avenue;

E)          Appropriate a portion of the fund balances of the CDBG Housing Improvement Program Revolving Loan Fund for Housing Rehabilitation Loans of $534,436 and appropriate a portion of the Housing Acquisition Revolving Loan Fund of $373,333; and grant funds $19,075 for Project 812701 Home Access.

VOTE: 6-0 (Councilmember Swegles absent)

1. I.

RTC 07-004

Authorization to Accept an Infopeople Local Library Web Site Improvement Project Grant to Provide Access to Online Learning Course, Expert Review of the Library Web Site, and Professionally Designed Graphic Templates

Staff Recommendation: Council accepts the Infopeople Local Library Web site Improvement Grant to Provide Access to an Online Learning Course, Expert Review of the Library Web Site, and Professionally Designed Graphic Templates. 

1. J.

RESOLUTION

RTC 07-007

Resolution Supporting the Santa Clara County Health Benefits Coalition and Indicating the City of Sunnyvale’s Participation in the Coalition, and Authorization for the City to Contribute to the Coalition an Amount Not To Exceed $2,000

Staff Recommendation: Council adopts the resolution supporting the Santa Clara County Health Benefits Coalition, and indicating the City’s willingness to participate in the Coalition; and authorizes the City to contribute a sum based on a sliding scale (not to exceed $2,000) for the recruitment and retention of a qualified grant writer to solicit foundation support for a two-year Santa Clara County Health Benefits Coalition Pilot Project.

2.

RTC 07-010

Consider a Loan of $2.1 Million of City Housing Funds to Mid-Peninsula Housing Coalition for the Acquisition of 662 Garland Avenue, an Affordable Rental Housing Project, and Approval of Budget Modification No. 29

Officer Yurutucu presented the staff report.

Councilmember Howe verified that the 4% interest on the loan would be paid at the end of five years or whenever the loan is recast.

Councilmember Howe verified that this loan could be paid from Housing Mitigation funds and then be reimbursed with either CDBG or HOME funds in future years.

Councilmember Howe asked what the difference would be between complying with Housing Mitigation fund requirements versus CDBG and HOME funds.  Officer Yurutucu stated both CDBG and HOME funds would require an environmental notice; environmental review; a thirty day process, and funds would have to be released by the United States Department of Housing and Urban Development (HUD).  Additionally, if HOME funds were used and the project did not begin after a year, the City would be precluded from adding additonal HOME funds into the parcel. 

Councilmember Howe stated recast means refinancing to him.  He asked when the loan is refinanced does staff anticipate the Housing Mitigation Funds will become a permanent loan or would the loan be forgiven.  Officer Yurutucu stated loans are never a gift, and this loan would become a permanent loan.

Councilmember Howe verified this would be a first loan; however, within the five-year time frame, Mid Peninsula Housing Coalition (MPHC) will rehabiltate the site and at that time the City may move into a second loan position.  Officer Yurutucu verified that the overall development will be a viable project.

Councilmember Howe verified the estimated value of the project is $3.1 million, of which $2.1 million will be a first position loan from the City’s Housing Mitigation Funds. 

Councilmember Howe asked if City staff has the ability to subordinate the loan (move from first to second position) into anything else without Council action.  Officer Yurutucu stated the City would be subordinate to CAL-FHA if the project goes forward as twenty units.  

City Manager Chan stated any changes in financial arrangements will have to come before Council asking for authority to change.  In addition, refinancing or restructuring of any loan will come before Council for direction.

Councilmember Howe read written comments from Councilmember Swegles who stated he fully supports the staff recommendation and mentioned the benefit this project will bring to the City..

Public Hearing Opened:  8:01 p.m.

Fran Wagstaff, President of the Mid Peninsula Housing Coalition, stated her support of this project. 

Public Hearing Closed: 8:04 p.m.

MOTION: Councilmember Howe moved and Councilmember Chu seconded to approve Alternative No. 1: Council approves Budget Modification No. 29 to appropriate $2.1 million from the Housing Fund/Housing Mitigation Sub-Fund Reserve to fund a loan to Mid-Peninsula Housing Coalition for the acquisition of 662 Garland Avenue.

with addition: should the loan be further subordinated, it would come back to Council for consideration and direction.

Councilmember Howe stated if further along in the process, staff would like action from the Council to help the County of Santa Clara move on the one property, he would request that the item be  on a Council agenda.

VOTE: 6-0 (Councilmember Swegles absent)

3.

RTC 07-009

2007 City Council Intergovernmental Assignments

Yvette Agredano, Intergovernmental Relations Officer, presented the staff report.

Councilmember Moylan stated he will continue to serve on the Santa Clara Valley Water District (SCVWD) - Guadalupe/West Valley Watershed Flood Control Advisory Committee, should none of his collegues wish to take his place.  He stated should he continue to serve, he has some scheduling conflicts and would miss half of the meetings.

Councilmember Chu stated he wished to make a correction to the staff report.  The City of Sunnyvale is not eligible to designate an alternate on the Santa Clara Valley Transportation Authority –(VTA) Board of Directors as the alternate has been designated from another City. 

Councilmember Howe verified that the Community Member Assignments (as listed on Attachment A, page 3) have been previously approved by Council.

Public Hearing Opened 8:11 p.m.

Public Hearing Closed 8:12 p.m.

Councilmember Chu stated he will accept assignment (previously held by Councilmember Moylan) to serve on the Santa Clara Valley Water District (SCVWD) - Guadalupe/West Valley Watershed Flood Control Advisory Committee.

Councilmember Chu stated he will serve as the Alternate on the Santa Clara County Housing Bond Advisory Committee.

MOTION: Councilmember Howe moved and Councilmember Moylan seconded to approve Alternatives 1,2, and 3:

·         Council appoints Council representatives to the intergovernmental relations positions (In accordance with Council requested committee assignments from the December 15 Council Workshop and as presented on pages 2-4 of this report).

·         Council ratifies intergovernmental Council assignments not directly appointed by Council (In accordance with Council requested committee assignments from the December 15 Council Workshop and as presented on pages 2-4 of this report).

·          Council authorizes Mayoral appointments (In accordance with Council requested committee assignments from the December 15 Council Workshop and as presented on pages 2-4 of this report).

with addition:

Councilmember Chu (replaces Councilmember Moylan) accepts assignment to the Santa Clara Valley Water District (SCVWD), Guadalupe/West Valley Flood Control and Watershed Advisory Committee.

Councilmember Chu accepts assignment to the Santa Clara County Housing Bond Advisory Committee (as the Alternate).

Mayor Lee accepts assignment (replacing Councilmember Swegles) to the Santa Clara County Cities Association Board of Directors.

Councilmember Howe read written comments from Councilmember Swegles who stated he would be happy to continue to serve in his current assignments at the approval of the Mayor and his fellow Councilmembers. 

VOTE: 6-0 (Councilmember Swegles absent)

COUNCIL:

Councilmember Howe stated he previously asked the City Attorney to look into state laws regarding rummaging through others' trash and recycling.  This problem has resulted in identity thefts and he requested the City Manager enforce City Ordinance’s regarding rummaging through others' trash.  He stated the community needs notification and education about this problem (including identity theft) and enforcement actions must be addressed. 

Councilmember Moylan stated he agreed with Councilmember Howe’s comments and requested the City Manager to investigate further as to what type of enforcement can address this problem.

STAFF:

None

·         Tentative Council Meeting Agenda Calendar

·         Approved Minutes of the Housing and Human Services Commission Meeting of October 25, 2006

·         Draft Minutes of the Housing and Human Services Commission Meeting of November 15, 2006

·        Draft Minutes of the Parks and Recreation Commission Meeting of December 13, 2006

·         Draft Minutes of the Board of Library Trustees Meeting of December 18, 2006

·         Study Session Summary - Update of Precise Plan for El Camino Real - December 19, 2006