MINUTES OF THE CITY COUNCIL OF THE CITY OF SANTA CLARA
FOR MEETING HELD ON TUESDAY EVENING, FEBRUARY 28, 2012

 

 

     The City Council of the City of Santa Clara met at 5:00 pm, on the above-mentioned date in the City Hall Council Chambers.    

 

     The meeting was called to order with the following members present at the dais:  Council Member Will Kennedy, Patrick Kolstad, Patricia M. Mahan, and Kevin Moore and Vice-Mayor Gillmor.

 

 

 

     The Council met for a Closed Session in the Council Conference Room for a Conference with Real Property Negotiator pursuant to Government Code Section 54956.8; Property:  APN 104-43-030; APN: 104-43-051; APN: 104-43-052; APN: 104-42-014; and APN: 104-42-019; Negotiating Party(ies):  Santa Clara Stadium Authority and the San Francisco 49ers; City Negotiator:  Jennifer Sparacino, City Manager (or her designee); Under Negotiation:  Purchase/Sale/Exchange/Lease of Real Property (provisions, price and terms of payment and for a Conference with Real Property Negotiator pursuant to Government Code Section 54956.8; Property: APN: 097-05-097 and APN: 097-83-001; Negotiating Party(ies): Carlyle at Santa Clara, LLC and Bella Vista at Santa Clara, LLC; City Negotiator: Jennifer Sparacino, City Manager (or her designee); Under Negotiation: Purchase/Sale/Exchange/Lease of Real Property (provisions, price and terms of payment).

 

 

 

     The Council then met at 6:00 pm in the City Hall Council Chambers for an in-depth discussion of the Charter Review Committee recommendations related to City Elections.  

 

 

 

     The Council then met at 7:00 pm for the regular scheduled meeting in the City Hall Council Chambers.  The meeting was opened with the recitation of the Pledge of Allegiance and the reading of an Invocation Prayer.

 

 

 

     Present:  Council Members Lisa M. Gillmor, Will Kennedy, Patrick Kolstad, Patricia M. Mahan, Jamie McLeod, Kevin Moore and Mayor Jamie L. Matthews.

 

     Staff present: City Manager, Assistant City Manager, Acting Assistant City Manager, Director of Planning and Inspection, Director of Public Works/City Engineer, City Attorney and City Clerk/Auditor.

 

 

 

     MOTION was made by Gillmor, seconded and unanimously carried, that the Minutes for the January 24, 2012 meeting  be adopted as written.

 

     MOTION was made by Gillmor, seconded and unanimously carried, that, per the City Clerk/Auditor’s memo (02/10/12), the Minutes of the Redevelopment Agency for the January 24, 2012 meeting be adopted as written.

 

 

 

     As an exception to the Agenda, MOTION was made by Mahan, seconded and unanimously carried, that the Council approve consideration of this evening’s action items as they relate to the proposed San Francisco 49ers stadium, earlier than agendized.

 

 

 

     As an item of Unfinished Business, the Mayor/Chairperson opened a joint City Council (Council)/Santa Clara Stadium Authority (Stadium Authority) meeting to consider this evening’s action items as they relate to the proposed San Francisco 49ers stadium.

 

     The City Manager/Executive Director gave an electronic presentation and stated that during negotiations, City staff continue to ensure that Measure J requirements are met; no general or enterprise funds (utilities) monies are used or pledged to the project for construction or operations; there is no tax increase for the Stadium; that fair market rent is received for the land to the City; the Redevelopment Agency investment is capped at $40 million and the Community Facilities District is capped at $35 million; and that there is no subordination of City-owned land. She noted that although the deal structure has been modified, per the Disposition and Development Agreement (DDA) and Financing Plan, the City still remains protected from risk. She then outlined actions for consideration of the Council and the Stadium Authority this evening as well as actions at future meetings, including two potential Special Meetings to be held March 13, 2012 and/or March 15, 2012. A site map was displayed and the City Manager/Executive Director reviewed the project site, including the stadium and parking garage.

 

     Tom Webber, redevelopment attorney, continued the electronic presentation by providing an overview of the Ground Lease between the City of Santa Clara and the Santa Clara Stadium Authority. He stated that the DDA approved by the Stadium Authority in December 2011 anticipated that the City would enter into a Ground Lease with the Stadium Authority for the stadium site. He reiterated that during the negotiations, City staff has ensured that the requirements of Measure J have been met. The City’s fee interest in the stadium site is not subordinated to any stadium financing. The initial term of the Ground Lease will be for a 40 year period. The Ground Lease provides for a fixed base rent and performance based rent. The former Redevelopment Agency’s contribution is limited to a maximum of $40 million, exclusive of debt service,  financing costs and the payment to the City of certain development fees. If a second team relocates to the stadium, the fixed base rent will be increased and the City will receive an amount equal to the former redevelopment agency’s investment in the stadium. The Ground Lease provides that construction of the stadium will not commence prior to the Stadium Lease being executed. Following the opening of the stadium, the City will receive the Senior and Youth Program fee of up to $250,000, per year. The Ground Lease will be executed concurrently with the close of escrow for the construction financing. Mr. Webber reiterated that although the Ground Lease is being considered for approval this evening, no construction can take place until the execution of the Stadium Lease and financing documents. Under the Ground Lease, the construction of the stadium must commence within 120 days following the execution of the Ground Lease and must be completed within 3 years. The initial 40 year term of the Ground Lease will commence upon substantial completion of the stadium. The Stadium Authority will also have 5 options, each for 4 years, and 1 interim option. The City will receive a fixed ground rent of $180,000 in the first year of the term, which will increase to $1.5 million per year for the last five years of the initial term of the Ground Lease. The Ground Lease also provides that the City receive an annual performance based rent equal to 50% of net income from non-NFL events, less certain credits. The updated Economic Report, provided by Keyser Marston Associates, concludes that the fixed ground rent together with the performance based rent is projected to provide fair market rent to the City. The Ground Lease further provides that the Stadium Authority may sublease the stadium to StadCo, which then allows StadCo to sublease the stadium to the 49ers football team. The Ground Lease also provides that StadCo may also sublease to a second team. If a second team relocates to the stadium, the City will receive additional ground rent in the amount of the former Redevelopment Agency’s contribution to the stadium,  which is currently projected to be approximately $11.5 million. In addition, the fixed ground rent will be increased by $1 million and will increase periodically thereafter. At the election of the City, the Stadium Authority will be required to demolish the stadium. If the City elects not to demolish the stadium, the City will own the stadium.

 

     The Director of Public Works/City Engineer then reviewed the subdivision of the City-owned parcels to facilitate the 49ers stadium project (provided handout).

 

     Mr. Webber continued the electronic presentation by reviewing the proposed Amendment No. 2 to the Lease Agreement with the 49ers for the Training Facility. This amendment removes certain property from the leasehold premises and also grants to the 49ers, as lessee, rights to use certain easements created pursuant to the Subdivision Map.

 

     The City Manager/Executive Director concluded the electronic presentation by reviewing staff recommendation on the proposed above-mentioned items.

 

     A Council/Stadium Authority discussion followed.

 

     MOTION was made by Gillmor, seconded and carried with Kennedy and McLeod dissenting, that, per the Assistant City Manager/Assistant Executive Director’s memo (02/21/12), the Council adopt Resolution No. 12-7909 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARA APPROVING A GROUND LEASE AGREEMENT BETWEEN THE CITY OF SANTA CLARA AND THE SANTA CLARA STADIUM AUTHORITY” which approves a Ground Lease Agreement with the Santa Clara Stadium Authority for City-owned property to be developed for a professional football stadium.

 

     MOTION was then made by Gillmor, seconded and carried with Kennedy and McLeod dissenting, that the Stadium Authority Board adopt Resolution No. 12-5 (STADIUM AUTHORITY) entitled, “A RESOLUTION OF THE SANTA CLARA STADIUM AUTHORITY APPROVING A GROUND LEASE AGREEMENT BETWEEN THE SANTA CLARA STADIUM AUTHORITY AND THE CITY OF SANTA CLARA” which approves a Ground Lease Agreement with the City of Santa Clara for City-owned property to be developed for a professional football stadium.  

 

     MOTION was then made by Gillmor, seconded and carried with Kennedy and McLeod dissenting, that, per the Director of Public Works/City Engineer’s memo (02/21/12), the Council approve the Final Map Tract 10118 for the subdivision of the City-owned parcels to facilitate the 49ers Stadium project generally located at 4900 Centennial Boulevard; authorize the City Manager to make minor modifications, if necessary; and authorize the recordation of the Final Map with the County Recorder (APNs 104-43-001, 030, 047, 049 & 050, 104-06-012, 013, 014, 017, 039, 040 & 085).

 

     MOTION was then made by Gillmor, seconded and carried with Kennedy and McLeod dissenting, that, per the Assistant City Manager’s memo (02/22/12), the Council adopt Resolution No. 12-7910 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARA AUTHORIZING THE EXECUTION OF AMENDMENT NO. 2 TO LEASE AGREEMENT WITH FORTY NINERS LIMITED AND THE EXECUTION OF THE FIRST AMENDMENT TO RESERVATION OF EASEMENT RIGHTS AGREEMENT” which authorizes the execution of Amendment No. 2 to the Lease Agreement with the Forty Niners, Limited and the execution of the First Amendment to the Reservation of Easement Rights Agreement which amends the legal description of the leased premises to conform to the legal description for the Training Facility parcel created pursuant to the Subdivision Map for the Stadium Project.

 

     The Council/Stadium Authority duly noted and filed the correspondence received regarding the proposed San Francisco 49ers stadium (Executive Assistant to the Mayor and City Council – 02/28/12).

 

 

 

     MOTION was made by Kennedy, seconded and unanimously carried (Matthews absent), that the Council excuse Mayor Matthews from attendance for the remainder of the meeting.

 

 

 

     Mayor Matthews steps off the dais and Vice-Mayor Gillmor presides over the meeting.

 

 

 

     As a Special Order of Business, the Council proceeded with the presentation by Santa Clara Valley Transportation Authority (VTA) of the El Camino Real (ECR) Bus Rapid Transit (BRT) Corridor Project Conceptual Engineering in the City of Santa Clara.  The Director of Planning and Inspection reviewed his memo (02/22/12) and introduced Kevin Connolly, VTA Transportation Planning Manager.  Mr. Connolly then addressed the Council with an electronic presentation which provided an overview of the project, possible street configurations, rendering of the enhanced stations, a photo simulation of the El Camino Real and Scott Boulevard intersection, Santa Clara benefits, project improvements, diverted traffic analysis, traffic impact on El Camino Real and next steps for the project.  The Director of Planning Inspection then answered Council questions.  The following individuals spoke in favor of the project:  Chris Lepe (Silicon Valley Community Planner for TransForm)(provided handout), Eric Stroker, James Rowen and Brian Rysdorp.  Steve Van Dorn [President/CEO of the Santa Clara Chamber of Commerce - Convention Visitor’s Bureau (SCCC/CVB)] addressed the Council with general comments.  Mr. Connolly answered Council questions.  MOTION was made by McLeod, seconded and unanimously carried (Matthews absent), that the Council note and file the information presented by the Santa Clara Valley Transportation Authority (VTA) regarding the El Camino Real (ECR) Bus Rapid Transit (BRT) Corridor Project Conceptual Engineering in the City of Santa Clara. 

 

 

 

     Also as an item of Unfinished Business, the Council proceeded to consider the Charter Review Committee recommendations related to City elections. The Vice-Mayor noted that a Study Session was held earlier this evening, at 6:00 pm for an in-depth discussion regarding the Commission’s recommendations.

     The Charter Review Committee’s recommendation to approve one or more of the options and/or direct the City Manager conduct further research: 1) Revise the Charter to allow at-large elections; 2) Consider the proportional representation voting system by the end of the 2012 calendar year and possible implementation by 2014; 3) Create a program to encourage voter registration among minorities to address voter registration for the 2014 election and allocate funds to monitor the system by January 1, 2013; and 4) Address the "Barriers to the City Council Service" list (attached to the November 17, 2011 Charter Review Committee Minutes) with extreme regard to candidate recruitment.

 

     The City Manager noted that as part of the Study Session, there was a full staff report (City Manager – 02/23/12 and 02/28/12) and a presentation by the County of Santa Clara Registrar of Voters (electronic presentation). While there was no action taken at the Study Session, the City Manager reviewed actions for Council consideration this evening, including: 1) note and file the information; 2) approve one or more of the recommendations of the Charter Review Committee; and/or 3) refer the issue back to the City Manager to conduct further research.

 

     A Council discussion followed and Council questions were answered by the City Attorney and the City Manager. 

 

     The following people addressed the Council with general comments: Keith Stattenfield (provided handout), Dave Kadlecek, James Rowen, Steve Chessen (California for Electoral Reform – provided handout), Eric Stroker, Raj Chahal and Teresa O’Neil.

 

     Further Council comments were made and Council questions were answered by the City Manager, City Clerk and Barry Garner and Elaine Larsen from the County of Santa Clara, Registrar of Voters.

 

     MOTION was made by Kolstad, seconded and carried with Kennedy and McLeod dissenting (Matthews absent), that the Council refer the issue of City elections, including the Charter Review Committee recommendations, as outlined above, and staff analysis to the next Council Goal Setting Session.  

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried (Matthews absent), that, per the Director of Electric Utility’s memo (02/21/12), the Council direct the City Manager to implement the proceeding required by AB 2514 to determine targets, if any, for energy storage systems.

 

 

 

 

 

MOTION was made by Mahan, seconded and unanimously carried (Matthews absent), that, per the Director of Electric Utility’s  memo (02/21/12), the Council approve the use of City Electric forces for the installation of facilities at 2564 Tasman Drive.

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried (Matthews absent), that, per the Director of Finance’s memo (02/21/12), the Council accept the Monthly Financial Status Reports for November 2011 as presented.

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried (Matthews absent), that, per the Acting Director of Water and Sewer Utilities’ memo (02/21/12), the Council approve the use of    City Water Utility forces for the water main connection at Santa Clara Gateway, 5451-5455 Great America Parkway and Walgreens, 2120 El Camino Real.

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried (Matthews absent), that, per the Fire Chief’s memo (02/10/12), the Council adopt Resolution No. 12-7911 entitled “A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA, APPROVING THE ASSOCIATION OF BAY AREA GOVERNMENTS REPORT ‘TAMING NATURAL DISASTERS’ AS THE CITY OF SANTA CLARA’S LOCAL HAZARD MITIGATION PLAN” which approves the Association of Bay Area Governments report "Taming Natural Disasters" as the City of Santa Clara's Local Hazard Mitigation Plan Annex, subject to final review by the City Attorney's Office and authorize the City Manager to execute the plan.

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried (Matthews absent), that, per the Director of Parks and Recreation’s memo (02/21/12), the Council accept a donation from Mark Ingram in memory of Thomas Ingram, in the amount of $350, to help support the Health and Wellness Program at the Senior Center and authorize the transmittal of a letter of appreciation signed by the Mayor and City Manager.

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried (Matthews absent), that, per the Director of Finance’s memo (02/21/12), the Council accept the Santa Clara Convention Center and Convention-Visitor's Bureau (SCCC-CVB) Activity Report for Fiscal Year 2011-12 Second Quarter, as submitted by the SCCC-CVB.

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried (Matthews absent), that, per the Director of Public Work’s/City Engineer’s memo (02/21/11), the Council approve the substitution of Steel Works, Inc. with Trans-Tex Fabricating Company, O'Brien Steel Erectors, Golden State Steel, Gerard Daniels Worldwide, Linden Steel and Construction, Inc., and Cable Moore, Inc. as the structural steel and miscellaneous metal Subcontractors for the Tasman Drive Parking Structure Project (CE 10-11-11).

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried (Matthews absent), that, per the Director of Public Work’s/City Engineer’s memo (02/21/12), the Council adopt Resolution No. 12-7912 entitled “A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA, REPEALING CERTAIN PARKING REGULATIONS ON NORMANDY WAY” which repeals Resolution No. 7275 which established a Disabled Parking zone on Normandy Way, in front of 1240 Normandy Way.

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried (Matthews absent), that, per the Director of Public Work’s/City Engineer’s memo (02/XX/12), the Council adopt Resolution No. 12-7913 entitled “A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA, ESTABLISHING CERTAIN PARKING REGULATIONS ON MONROE STREET” which establishes a No Stopping or Parking Zone at any time, on the west side of Monroe Street from a point 11 feet north of the north curb of Fremont Street to a point 47 feet north of the north curb of Fremont Street.

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried (Matthews absent), that, per the Director of Public Work’s/City Engineer’s memo (02/21/12), the Council adopt Resolution No. 12-7914 entitled “A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA, ESTABLISHING CERTAIN PARKING REGULATIONS ON CHEENEY STREET AND ESPERANCA AVENUE” which establishes a No Stopping or Parking Zone at any time, on both sides of Cheeney Street from a point 20 feet south of the south curb of Esperanca Avenue to a point 45 feet south of the south curb of Esperanca Avenue and a No Stopping or Parking Zone at any time, on the west side of Esperanca Avenue from a point 78 feet north of the south curb of Esperanca Avenue to a point 88 feet north of the south curb of Esperanca Avenue. 

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried (Matthews absent), that the Council note and file the Informational Memo regarding the 2011-12 Operating Budget and Capital Improvement Project Budget Awards from the California Society of Municipal Finance Officers (CSMFO) (Director of Finance – 02/21/12).

 

 

 

     MOTION was made by Mahan, seconded and unanimously     carried (Matthews absent), that the Council note and file         the Youth Commission  Minutes for the meeting of January 10, 2012.

 

 

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried (Matthews absent), that, per the Director of Planning and Inspection’s memo (02/13/12), the Council approve the Special Permit request from John Hurley, St. Clare Parish & School - 725 Washington Street to conduct a three-day Annual Community Festival to be held in the parking lot from June 1 – 3, 2012 and festival dates for 2013 to be determined at a later date, subject to conditions (PLN2012-09036).  

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried (Matthews absent), that, per the Director of Planning and Inspection’s memo (02/16/12), the Council approve the Special Permit request from Laura Galvin, Shorenstein Realty Services - 3965 Freedom Circle to allow a 9' by 105' foot temporary leasing banner to be mounted on the building parapet from March 15, 2012 through March 15, 2013, subject to conditions (PLN2012-09047).

 

 

 

     PUBLIC HEARING:  The Vice-Mayor declared the public hearing open for consideration of the adoption of a Resolution denying the rezoning from R1-6L (Single-Family) to PD (Planned Development) for the property located at 1091 Fremont Street (PLN2010-08245).  Council Member Mahan stated that she would be abstaining on discussion related to the subject item and stepped of the dais (residence is within 500 feet of the subject property)The City Manager introduced the item and noted that there was correspondence received from the applicant (02/24/12). The Director of Planning and Inspection then reviewed his memo (02/21/12) and noted that there was correspondence received from John G. Figueira Jr. (on behalf of a homeowner next to the subject property)(02/26/12).  He then gave an electronic presentation which outlined the existing conditions of the project site, the proposed request by the applicant and significant considerations.  He noted that both the Historical and Landmarks Commission and the Planning Commission recommended that the City Council deny the requested rezoning due to the historic integrity of the structure.  The Director of Planning and Inspection answered Council questions.  Mr. Caruso addressed the Council with an electronic presentation regarding his request (provided petition of neighbor signatures approving the proposed rezone).  Mr. Caruso and the Director of Planning and Inspection then answered Council questions.  The following individuals addressed the Council with comments of concern regarding the project:  John G. Figueira III and John G. Figuera, Jr. Steve Lollar spoke in support of the project.  Keith Stattenfield (Planning Commission Member) offered the Council information for clarification if needed.    Mr. Caruso answered further Council questions.  With no further public input, MOTION was made by McLeod, seconded and unanimously carried with Mahan abstaining (residence is within 500 feet of the subject property)(Matthews absent), that the Council close the Public Hearing.  MOTION was made by McLeod, seconded and unanimously carried with Mahan abstaining (residence is within 500 feet of the subject property)(Matthews absent), that the Council refer the request to rezone the property located at 1091 Fremont Street from R1-6L (Single-Family) to PD (Planned Development) to the   Planning Commission for further review (PLN2010-08245).

 

 

 

     Council Member Mahan returned to the dais.

 

 

 

     MOTION was made by Mahan, seconded and unanimously carried (Matthews absent), that the Council note and file the Informational Memo regarding the Plans and Specifications prepared by City staff and Steinberg Architects for the Northside Branch Library project (CE 11-12-09) (Director of Public Works/City Engineer – 02/22/12).

 

 

 

     MOTION was made by Kennedy, seconded and unanimously carried (Matthews absent), that the Council approve the Bills and Claims and Progress Payments.

 

 

 

     Council Member McLeod provided comments regarding the 30th Anniversary of Showtime by the Santa Clara Women's           League March 2 - 4; the Book Launch Event by Adult and Family Literacy Services on March 3; and noted that it is Citizenship Day on March 17.

 

 

 

     The City Attorney reported that earlier in the evening the Council met at 5:00 pm for a Conference with Real Property Negotiator pursuant to Government Code Section 54956.8; Property:  APN 104-43-030; APN: 104-43-051; APN: 104-43-052; APN: 104-42-014; and APN: 104-42-019; Negotiating Party(ies):  Santa Clara Stadium Authority and the San Francisco 49ers; City Negotiator:  Jennifer Sparacino, City Manager (or her designee); Under Negotiation:  Purchase/Sale/Exchange/Lease of Real Property (provisions, price and terms of payment and there was no reportable action and for a Conference with Real Property Negotiator pursuant to Government Code Section 54956.8; Property: APN: 097-05-097 and APN: 097-83-001; Negotiating Party(ies): Carlyle at Santa Clara, LLC and Bella Vista at Santa Clara, LLC; City Negotiator: Jennifer Sparacino, City Manager (or her designee); Under Negotiation: Purchase/Sale/Exchange/Lease of Real Property (provisions, price and terms of payment) and there was no reportable action.

 

 

 

 

 

 

 

     MOTION was made by Moore, seconded and unanimously carried (Matthews absent), that per the City Attorney’s memo (02/23/12), the Council set March 6, 2012 as amended to begin at 5:00 pm for a Closed Session in the Council Conference Room for a Conference with Real Property Negotiator pursuant to Government Code Section 54956.8; Property:  APN 104-43-030; APN: 104-43-051; APN: 104-43-052; APN: 104-42-014; and APN: 104-42-019; Negotiating Party(ies):  Santa Clara Stadium Authority and the San Francisco 49ers; City Negotiator:  Jennifer Sparacino, City Manager (or her designee); Under Negotiation:  Purchase/Sale/Exchange/Lease of Real Property (provisions, price and terms of payment).

 

 

 

     MOTION was made by McLeod, seconded and unanimously carried (Matthews absent), that there being no further business, the meeting was adjourned at 10:21 pm In Memory of Victoria Hong (longtime Santa Clara business co-owner) to Tuesday evening, March 6, 2012 at 5:00 pm for a Closed Session in the Council Conference Room and at 7:00 pm for the regular scheduled meeting in the City Hall Council Chambers.

 

 

 

 ATTEST:  ________________________

                     City Clerk

 

 

 

APPROVE: ________________________

                     Mayor