MINUTES OF THE REGULAR CONCURRENT MEETING
OF THE CITY OF SANTA CLARA
CITY COUNCIL
SANTA CLARA STADIUM AUTHORITY
SPORTS AND OPEN SPACE AUTHORITY
CITY OF SANTA CLARA HOUSING AUTHORITY
TUESDAY, DECEMBER 15, 2015

 

 

            The City Council, Stadium Authority, Sports and Open Space Authority and Housing Authority, with a quorum present, met at 5:00 pm, on the above-mentioned date, in the City Hall Council Chambers.

 

            The City Council proceeded with a Study Session regarding the Google Fiber-to-the-Premise Project Master Plan and Update on Ancillary Agreements.  The Assistant City Manager reviewed her informational report and gave an electronic presentation highlighting the history of the project, the basic elements of the Master Plan, ancillary agreements, California Environmental Quality Act determination and the benefits for the City.  Jenna Wandres, Goggle representative, reviewed the Master Plan and answered Council questions.  Alan Weissberger addressed the Council in support of the project.  The Council noted an email submitted by Kirk Vartan requesting clarification of the project and a response to Mr. Vartan from Larry Owens, Customer Service and Marketing Senior Electric Division Manager (12/15/15). 

 

            The Council, Stadium Authority and Sports and Open Space Authority then met at 6:00 pm in the Council Conference Room for a Closed Session.

 

            The Council met for a Conference with Labor Negotiators pursuant to Government Code Section 54957.6; City representative: Julio J. Fuentes, City Manager (or designee); Employee Organization(s): Unit #1 - Santa Clara Firefighters Association, IAFF, Local 1171; Unit #2 - Santa Clara Police Officer's Association; Unit #3 - IBEW Local 1245 (International Brotherhood of Electrical Workers); Unit #4 - City of Santa Clara Professional Engineers; Units #5, 7 & 8 ‑ City of Santa Clara Employees Association; Unit #6 - AFSCME Local 101 (American Federation of State, County and Municipal Employees); Unit #9 - Miscellaneous Unclassified Management Employees; Unit #9A - Unclassified Police Management Employees; Unit #9B - Unclassified Fire Management Employees; Unit #10 - PSNSEA (Public Safety Non-Sworn Employees Association) and Liability Claims pursuant to Government Code Section 54956.95, Claimant: Michael Irwin/AAA Insurance.

 

            The Council, Stadium Authority, Sports and Open Space Authority and Governing Board of the Successor Agency to the City of Santa Clara Redevelopment Agency met for a Conference with Legal Counsel-Existing Litigation pursuant to Government Code Section 54956.9(d)(1), Vinod K. Sharma, et al. v. Successor Agency to the Redevelopment Agency of the City of Santa Clara, et al., Sacramento County Superior Court Case No. 34-2013-80001396.

            The City Council, Stadium Authority, Sports and Open Space Authority and Housing Authority reconvened at 7:00 pm in the City Hall Council Chambers and the regular Concurrent Meeting was opened with the recitation of the Pledge of Allegiance and Statement of Values.

 

 

            Present:  Members Dominic J. Caserta, Debi Davis, Lisa M. Gillmor, Patrick Kolstad, Jerry Marsalli and Teresa O'Neill and Mayor/Chairperson Jamie J. Matthews.

 

            Staff present: City Manager, City Attorney and City Clerk/Auditor.

 

            MOTION was made by Davis, seconded and carried with Caserta abstaining (not present at the meeting), that the Minutes for the Concurrent Meeting of November 17, 2015 be adopted as written.

 

            PUBLIC HEARING:  The Mayor declared the Public Hearing open for consideration of the Santa Clara Square Residential/Mixed Use Project located at 2600 Augustine Drive.  The Director of Planning and Inspection reviewed his report, his supplemental informational report and the following recommendations:  adoption of Resolutions to 1) Approve and certify a Final Environmental Impact Report (FEIR) and adopt a Statement of Overriding Considerations and the Mitigation Monitoring and Reporting Program (MMRP); 2) Approve the General Plan Amendment from Light Industrial to Regional Mixed Use, Community Commercial to Regional Mixed Use, and Light Industrial to High Density Residential on a 33.4 acre site; 3) Approve the Rezone from Community Commercial (CC) and Light Industrial (ML) to Planned Development (PD) to allow the development of up to 1,800 apartment units, 40,000 square feet of retail space, 4,500 square feet of leasing space, and 38,000 square feet of amenity space; and 4) Approve the Vesting Tentative Parcel Map for the Project Site; and pass to print an Ordinance approving the Development Agreement with Augustine Bowers II LLC, 3230 Scott Boulevard LLC, 3236 Scott Boulevard LLC, 3255 Scott Boulevard LLC, and 3265 Scott Boulevard LLC for the Project.  The Director of Planning and Inspection gave an electronic presentation on the project.  Carlene Matchniff, Vice President, Entitlements and Public Affairs and Steven Kellenberg, Senior Vice President, Irvine Company, gave an electronic presentation on the project.  The following individuals addressed the Council in support of the project:  Colin Heyne, Jeremy Brill, Ken Blodgett, Amanda Montez, Greg Small, Ricci Herro, Kirk Vartan and Sudhanshu Jain.  Dr. Stan Rose, Ed.D. addressed the Council and provided a copy of a letter (12/10/15) from Irvine Company to the Santa Clara Unified School District (SCUSD) and a copy of the response letter (12/14/15) from SCUSD to Irvine Company regarding the proposed project and mitigation issues.  The following individuals addressed the Council with concerns: Howard Myers, Noreen Carlson, Stan Carlson, Tino Silva and Deborah Bress.  MOTION was made by Caserta, seconded and unanimously carried, that the Public Hearing be closed.  MOTION was made by Caserta, and seconded, to approve staff recommendations, but no vote was taken on the motion.  A Council discussion followed and the City Manager, Director of Planning and Inspection, Ms. Matchniff, Fire Chief and the City Attorney answered Council questions.   An amended MOTION was made by Caserta, and seconded, to approve the staff recommendations and increase the requirement for affordable housing units to 10% with the flexibility of being onsite or offsite affordable units, but no vote was taken on the motion and the motion was tabled.  A substitute MOTION was made by Gillmor, seconded and unanimously carried, that the Council approve an increase in the requirement for affordable housing units to 10% with the flexibility of being onsite or offsite affordable units.  A substitute MOTION was made by Gillmor, and seconded, failed to pass with Caserta, Kolstad, Marsalli and Matthews dissenting, that the Council approve full mitigation fees for the Santa Clara Unified School District for the impact of the Project.  A substitute MOTION was made by Gillmor, and seconded, failed to pass with Caserta, Kolstad, Marsalli and Matthews dissenting, that the Council approve assessing a fee of $2,000,000 from the first building permit until 2023 for reimbursement of Santa Clara core services of police, fire and other services that will be assessed because of the Project.  A substitute MOTION was made by Gillmor, and seconded, failed to pass with Caserta, Kolstad, Marsalli and Matthews dissenting, that the Council approve a deadline on the Transportation Demand Plan to be negotiated within 120 days with the goal of 40% compliance.  MOTION was then made by Caserta, seconded and carried with Davis and O’Neill dissenting, that the Council approve staff recommendations as follows:  1) Adopt Resolution No. 15-8270 entitled “A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA, APPROVING AND CERTIFYING A FINAL ENVIRONMENTAL IMPACT REPORT, MAKE FINDINGS WITH RESPECT THERETO, AND ADOPTING A STATEMENT OF OVERRIDING CONSIDERATIONS AND A MITIGATION MONITORING AND REPORTING PROGRAM FOR THE RESIDENTIAL/MIXED USE PROJECT LOCATED AT 1600 AUGUSTINE DRIVE, ET AL., SANTA CLARA” which approves and certifies a Final Environmental Impact Report (FEIR) and adopts a Statement of Overriding Considerations and the Mitigation Monitoring or Reporting Program (MMRP); 2) Adopt Resolution No. 15-8271 entitled “A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA, APPROVING THE GENERAL PLAN AMENDMENT FROM LIGHT INDUSTRIAL TO REGIONAL MIXED USE, COMMUNITY COMMERCIAL TO REGIONAL MIXED USE, AND LIGHT INDUSTRIAL TO HIGH DENSITY RESIDENTIAL ON A 33.4 ACRE SITE FOR THE PROPERTY LOCATED AT 2600 AUGUSTINE DRIVE, ET AL., SANTA CLARA” which approves the General Plan Amendment from Light Industrial to Regional Mixed Use and Community Commercial to Regional Mixed Use and Light Industrial to High Density residential on a 33.4 acre site; 3) Adopt Resolution No. 15-8272 entitled “A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA, REZONING THE PROPERTY LOCATED AT 2600 AUGUSTINE DRIVE ET AL., SANTA CLARA, FROM COMMUNITY COMMERCIAL (CC) AND LIGHT INDUSTRIAL (ML) TO PLANNED DEVELOPMENT (PD) TO ALLOW THE DEVELOPMENT OF UP TO 1,800 APARTMENT UNITS, 40,000 SQUARE FEET OF RETAIL SPACE, 4,500 SQUARE FEET OF LEASING SPACE, AND 38,000 SQUARE FEET OF AMENITY SPACE” which approves the Rezone from Community Commercial (CC) and Light Industrial (ML) to Planned Development (PD) to allow the development of up to 1,800 apartment units, 40,000 square feet of retail space, 4,500 square feet of leasing space, and 38,000 square feet of amenity space; 4) Adopt Resolution No. 15-8273 entitled “A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA, APPROVING THE VESTING TENTATIVE PARCEL MAP FOR THE PROPERTY LOCATED AT 2600 AUGUSTINE DRIVE, ET AL., SANTA CLARA” which approves the Vesting Tentative Parcel Map for the Project site; and pass to print Ordinance No. 1948 entitled “AN ORDINANCE OF THE CITY OF SANTA CLARA, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF SANTA CLARA AND AUGUSTINE BOWERS II LLC, 3230 SCOTT BOULEVARD LLC, 3236 SCOTT BOULEVARD LLC, 3255 SCOTT BOULEVARD LLC, AND 3265 SCOTT BOULEVARD LLC FOR THE PROPERTY LOCATED AT 2600 AUGUSTINE DRIVE, ET AL., SANTA CLARA” which approves the Development Agreement with Augustine Bowers II LLC, 3230 Scott Boulevard LLC, 3236 Scott Boulevard LLC, 3255 Scott Boulevard LLC and 3265 Scott Boulevard LLC.

 

            The Council took a short recess.

 

            The Council proceeded to consider the Director of Parks and Recreation’s report recommending adoption of a Resolution setting the average price of land and establishing the Fee Schedule for 2016 and New Residential Development with an effective date of February 13, 2016.  The Council noted the Executive Assistant to Mayor and City Council’s report regarding correspondence received regarding the item.  The City Manager answered Council questions.  MOTION was made by Caserta, seconded and unanimously carried, that the Council continue the item to January 12, 2016.

 

            The Council proceeded to consider the Director of Planning and Inspection’s report requesting Council direction on moving forward with regulations for portable collection boxes on private property for recycled clothing and household goods.  The City Manager introduced the item and the Director of Planning and Inspection reviewed his report.  A Council discussion followed and the Director of Planning and Inspection, City Manager, Chief of Police and City Attorney answered Council questions.  Alexandra Hoffman, Recycle for Change, addressed the Council in support of portable collection boxes and provided a handout regarding the organization.  The following individuals addressed the Council in opposition to portable collection boxes:  Mario Bouza (provided handout), Tino Silva, Joel Bouza and Deborah Bress.  MOTION was made by Gillmor, seconded and carried with Caserta and O’Neill dissenting, that the Council note and file the report.

 

            The Council proceeded to consider the Director of Finance/Assistant City Manager’s report recommending that the Council note and file the audited Comprehensive Annual Financial Report (CAFR) for fiscal year ended June 30, 2015 and the audited Electric Utility Enterprise Fund (Silicon Valley Power) Financial Statements for fiscal year ended June 30, 2015.  A Council discussion followed and the City Manager and Director of Finance/Assistant City Manager answered Council questions.  MOTION was made by Gillmor, seconded and unanimously carried, that the Council continue the item to January 2016.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Director of Finance/Assistant City Manager’s report, the Council adopt Resolution No. 15-8274 entitled “A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA FOR EXCEPTION TO THE 180‑DAY WAITING PERIOD FOR HIRING A RETIREE AS A TEMPORARY EXTRA-HELP EMPLOYEE (GOVERNMENT CODE SECTIONS 7522.56 AND 21224)” for exception to the 180-day waiting period for hiring a retiree as a temporary extra-help employee.

 

            The Stadium Authority proceeded to consider the Chief of Police’s informational report regarding the status of the Per Diem Special Event Police Officer and Equipment Needs for Law Enforcement Operations at Levi’s® Stadium.  The Chief reviewed his report.  A Stadium Authority discussion followed and the Chief of Police answered questions. 

 

            The Council/Stadium Authority proceeded to consider the Economic Development Officer/Assistant City Manager’s report recommending that the Council note and file a License Agreement with the National Football League (NFL) for certain City facilities (Santa Clara Golf and Tennis, Youth Soccer Park and the Stadium) for Super Bowl 50.  The Council/Stadium Authority noted the Executive Assistant to Mayor and City Council’s report regarding correspondence received regarding the use of the Youth Soccer Park.  The Economic Development Officer/Assistant City Manager reviewed her report.  She, the City Attorney/Stadium Authority Counsel and City Manager/Executive Director answered questions.  The following individuals addressed the Council/Stadium Authority with concerns:  Burt Field, Gabe Foo (provided a handout), Sudhanshu Jain, Tino Silva, Robert Fitch and Deborah Bress.  MOTION was made by Kolstad, seconded and carried with Davis, Gillmor and O’Neill dissenting, that the Council note and file the report.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Director of Finance/Assistant City Manager’s report, the Council note and file the Monthly Financial Status Reports for October 2015 as presented.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Chief of Police’s report, the Council approve setting the salary of lateral Police Officer candidates Kevin Mead and Dustin Silva to Step 2, Salary B, Grade 31.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Director of the Electric Utility’s report, the Council approve setting the salary for Engineering Aide-Fiber position candidate, Philip Steffani at Step “2” of the salary range for Schedule A-21.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Director of Human Resources’ report, the Council approve setting the salary for Staff Analyst candidate Elaine Phung at Step 2, Salary Schedule A-32.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the City Clerk/Auditor’s report, the Council accept the resignation of Carolyn Schuk from the Cultural Commission effective December 7, 2015; declare one vacancy on the Cultural Commission for the partial term ending June 30, 2016 and set February 17, 2016 at 5:00 pm as the deadline for the receipt of applications, with interviews to be held on February 23, 2016 at 6:00 pm in the reception lobby area.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Director of Water and Sewer Utilities’ report, the Council approve the use of City Water Utility forces to install a 1” water meter at 117 North Cypress Avenue and abandon the existing ¾” water meter and install a 1” water meter at 481 Rosemont Drive.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Director of Water and Sewer Utilities’ report, the Council approve the use of City Water Utility forces to abandon the existing ¾” water meter and install a 1” water meter at 3580 Golden State Drive.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Director of Water and Sewer Utilities’ report, the Council accept the work performed by Utility Service Company, Inc. on the Northside Tanks Rehabilitation Project (WA 30124) and authorize recordation of a Notice of Completion with the County Recorder.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Chief of Police’s report, the Council approve the request submitted by Sergeant Kenneth Henderson to accrue over the maximum vacation hours without penalty.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Director of Parks and Recreation’s report, the Council accept a donation of $1,000 from the Rotary Club of Santa Clara for the Wade Brummal Foundation (account 084-1117-59650-(A)20412); approve an appropriation of the donation for the Wade Brummal Foundation (account 084-1117-87500-(A)20412); and authorize the transmittal of a letter of appreciation.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Chief of Police’s report, the Council accept the Citizens’ Option for Public Safety (COPS) grant for Fiscal Year 2015-16 in the amount of $189,093 to be used by the Police Department for the cost of purchasing equipment; approve estimated revenue of $189,093 (account 177-7752-55580-[G]COP16) and appropriations to the Police Department (account 177-7752-88040-[I]4795-[G]COP16); and authorize the City Manager, or his designee, to execute all documents related to the grant.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Human Resources Division Manager’s report, the Council approve the Compromise and Release as recommended by the City’s Workers’ Compensation legal counsel to settle the claim for the injuries retired Fire Captain David Cosimano sustained on November 28, 2002, December 28, 2006, March 10, 2010, July 22, 2012 and cumulatively through October 3, 2012.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the City Manager’s report, the Council note and file the Departmental Activity Report for the month of October 2015.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Director of Human Resources’ report, the Council approve the adjusted As-Needed Salary Schedule to reflect city-wide Minimum Wage Ordinance No. 1943 to $11.00 per hour.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Economic Development Officer/Assistant City Manager’s report, the Council note and file the License Agreement with Verizon Wireless for the placement of a cellular on wheels facility on City of Santa Clara/Sports and Open Space Authority-owned property at the Santa Clara Golf and Tennis.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Economic Development Officer/Assistant City Manager’s report, the Council note and file the License Agreement with Verizon Wireless for the placement of a cellular on wheels facility on City of Santa Clara-owned property located at 2351 Stars and Stripes Drive.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Director of Public Works/City Engineer’s report, the Council approve and authorize the City Manager to execute the First Amendment to Agreement for Materials Testing, Pavement Design and Log of Boring Services with the City of San Jose to extend the termination date to December 31, 2017 and update the fee schedule and authorize the City Manager to make minor, non-substantive modifications to the First Amendment, if necessary.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Director of Electric Utility’s report, the Council approve and authorize the City Manager to execute the Electric Service Agreement with Microsoft Corporation for the purchase of electricity on a long-term basis in exchange for certain discounted rates, in substantially similar form to that presented, subject to final review by the City Attorney’s Office, effective December 1, 2015.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Director of Electric Utility’s report, the Council approve and authorize the City Manager to execute an Electric Service Agreement with CoreSite Real Estate 2901 Coronado, L.L.C., CoreSite Real Estate 3001 Coronado, L.P., CoreSite Real Estate 3032 Coronado, L.P., CoreSite Real Estate 2950 Stender, L.P. and CoreSite Real Estate 2972 Stender, L.P. for the purchase of electricity on a long-term basis in exchange for certain discounted rates, in substantially similar form to that presented, subject to final review by the City Attorney’s Office, effective December 1, 2015.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Chief of Police’s report, the Council accept the Office of Traffic Safety Grant up to $25,000 for the Avoid the 13 Driving Under the Influence Enforcement Operation (account 177-7752-55580-(G)A1316); approve appropriations of up to $25,000 to Grant Overtime (account 177-7752-87030-(G)A1316) for the Avoid the 13 Campaign; approve the rollover of unexpended appropriations for future fiscal years; and approve and authorize the City Manager, or his designee, to execute a Memorandum of Understanding with the County of Santa Clara and all documents related to the grant.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Director of Electric Utility’s report, the Council delegate authority to the City Manager to complete negotiations and execute an Agreement for the Performance of Services with Omnetric Corporation in an amount not to exceed $628,564 for implementation of a Meter Data Management Software System and Energy Engage Customer Portal to provide utility meter data for the City’s Advanced Metering Infrastructure system, in substantially the form presented, subject to final review and approval by the City Attorney.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Director of Parks and Recreation’s report, the Council approve a Real Estate Lease Agreement with International Swimming Hall of Fame (ISHOF) for the property located at 1500 Civic Center Drive and authorize the City Manager to execute all related documents and amendments and to make minor modifications as necessary within the City Manager’s signatory and authorization limits.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Director of Electric Utility’s report, the Council approve and authorize the City Manager to execute Amendment No. 1 to Call No. 15-1 for Professional Services with Paragon Partners Ltd. in an amount not to exceed $111,000 for a total amount not to exceed $264,854.40 for fiber engineering professional services to support the Silicon Valley Power Fiber Enterprise Program.

 

            MOTION was made by Caserta, seconded and unanimously carried, that the Council approve the payment of the Bills and Claims and Progress Payments.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Economic Development Officer/Assistant City Manager’s informational report, the Successor Agency to the City of Santa Clara Redevelopment Agency note and file the Long Range Property Management Plan.

 

            The Sports and Open Space Authority (SOSA) proceeded to consider the Director of Finance (SOSA)’s report recommending that the Authority note and file the Status Report for the Fiscal Operation of the Santa Clara Golf and Tennis Club for the first quarter ending September 30, 2015.  An Authority discussion followed and the Director of Finance (SOSA) answered questions.  [Member Caserta left the dais.]  MOTION was made by O’Neill, seconded and unanimously carried (Caserta absent), that the Sports and Open Space Authority note and file the Report.

 

            Under Public Presentations, Howard Myers addressed the Council with general concerns regarding current events. [Member Caserta returned to the dais.]  Sudhanshu Jain addressed the Council with concerns regarding the timeliness of public access to various City agendas.  Deborah Bress addressed the Council with general comments of concern.

 

            Mayor Matthews provided a handout on his attendance at recent community events.

 

            MOTION was made by Caserta, seconded and unanimously carried, that, per the Mayor’s report, the Council approve the appointment of Council Member O’Neill as Vice Mayor and Vice Mayor Davis as Chaplain for the 2016 calendar year.

 

            The Council proceeded to consider the 1) City Attorney’s report recommending that Council pass to print an Ordinance adding Chapter 2.155 (“Regulation of Lobbying Activities”) to Title 2 (“Administration and Personnel”) of “The Code of the City of Santa Clara, California” relating to lobbying activities (Lobbyist Ordinance) and requesting approval of appropriations of $81,718 for staffing costs for the remainder of Fiscal Year 2015/16 and $10,000 for technology and outreach costs; and 2) the City Attorney’s report recommending that the Council pass to print an Ordinance adding Chapter 2.160 (“Calendars of Certain City Officials”) to Title 2 (“Administration and Personnel”) of “The Code of the City of Santa Clara, California” relating to public calendars (Calendar Ordinance) and requesting approval of appropriations of $57,600 for staffing costs for the remainder of Fiscal Year 2015/16, $5,000 for contractual services and $4,500 for operating supplies.   [The City Manager left the dais.]  The City Attorney reviewed his report regarding the Lobbyist Ordinance and gave an electronic presentation regarding who is and who is not a lobbyist, registration requirements, identification requirements, gifts prohibited, enforcement and fees.  The City Attorney answered Council questions.  The City Clerk continued with the review of the reports regarding the costs and timing for implementation of the Lobbyist and Calendar Ordinances and answered Council questions.  The Council noted emails (12/13/15 and 12/14/15) submitted by Kirk Vartan with concerns regarding the Lobbyist Ordinance and the Executive Assistant to Mayor and City Council’s report with attached correspondence regarding the Calendar Ordinance.  A Council discussion followed.  MOTION was made by O’Neill, seconded and unanimously carried, that the Council pass to print Ordinance No. 1949 entitled “AN ORDINANCE OF THE CITY OF SANTA CLARA, CALIFORNIA, ADDING CHAPTER 2.155 (‘REGULATION OF LOBBYING ACTIVITIES’) TO TITLE 2 (‘ADMINISTRATION AND PERSONNEL’) OF ‘THE CODE OF THE CITY OF SANTA CLARA, CALIFORNIA’” related to lobbying activities, with amendments to the Ordinance requiring disclosure of a business license, the inclusion of contingent compensation as lobbyist income, and more specificity on licensed professionals and approve appropriations of $81,718 to Salary and Wages – Regular (account 001-2312-87010) for staffing costs for the remainder of Fiscal Year 2015/16 and $10,000 to Contractual Services (account 001-2312-87870) for technology and outreach costs which will be funded by additional budgeted salary attrition and voluntary time off (VTO) savings of $91,718 (account 001-3611-87011).  [The City Manager returned to the dais.] The following individuals addressed the Council with concerns:  Angelica Ramos (provided a copy of a letter (12/15/15) from Sparky Harlan, Bill Wilson Center), Robert Fitch and Kirk Vartan.  Howard Myers addressed the Council in support of the Lobbyist Ordinance.  The City Attorney reviewed his report regarding the Calendar Ordinance and gave an electronic presentation summarizing the Ordinance.  A Council discussion followed and the City Attorney, City Manager and City Attorney answered Council questions.  Kirk Vartan and Deborah Bress addressed the Council with general comments.  MOTION was made by Gillmor, seconded and unanimously carried, that the Council pass to print Ordinance No. 1950 entitled “AN ORDINANCE OF THE CITY OF SANTA CLARA, CALIFORNIA, ADDING CHAPTER 2.160 (‘CALENDARS OF CERTAIN CITY OFFICIALS’) TO TITLE 2 (‘ADMINISTRATION AND PERSONNEL’) OF ‘THE CODE OF THE CITY OF SANTA CLARA, CALIFORNIA’” related to public calendars, with amendments to the Ordinance to include the Council and Mayor’s non-scheduled contacts, text and emails and the elimination of site specific information involving proprietary or trade secret items and approve appropriations of $57,600 to Salary and Wages – Regular (account 001-2312-87010) for staffing costs for the remainder of Fiscal Year 2015/16, $5,000 to Contractual Services (account 001-2312-87870) and $4,500 to Operating Supplies (account 001-2312-87500) which will be funded by additional budgeted salary attrition and voluntary time office (VTO) savings of $67,150 (account 001-3611-87011).

 

            The City Manager congratulated Director of Planning and Inspection Kevin Riley on his retirement effective December 30, 2015 after 29 years of excellent service to the City.

 

            The City Attorney reported that the Council met earlier in the evening for a Closed Session for a Conference with Labor Negotiators pursuant to Government Code Section 54957.6; City representative: Julio J. Fuentes, City Manager (or designee); Employee Organization(s): Unit #1 - Santa Clara Firefighters Association, IAFF, Local 1171; Unit #2 - Santa Clara Police Officer's Association; Unit #3 - IBEW Local 1245 (International Brotherhood of Electrical Workers); Unit #4 - City of Santa Clara Professional Engineers; Units #5, 7 & 8 ‑ City of Santa Clara Employees Association; Unit #6 - AFSCME Local 101 (American Federation of State, County and Municipal Employees); Unit #9 - Miscellaneous Unclassified Management Employees; Unit #9A - Unclassified Police Management Employees; Unit #9B - Unclassified Fire Management Employees; Unit #10 - PSNSEA (Public Safety Non-Sworn Employees Association) and that there was no reportable action.

 

            The City Attorney reported that the Council also met in Closed Session regarding Liability Claims pursuant to Government Code Section 54956.95, Claimant: Michael Irwin/AAA Insurance, and that the Council unanimously authorized settlement in an amount not to exceed $23,000.

 

            Member Caserta left the dais.

 

            The City Attorney/Stadium Authority Counsel/Authority General Counsel reported that the Council, Stadium Authority, Sports and Open Space Authority and the Governing Board of the Successor Agency to the City of Santa Clara Redevelopment Agency also met in Closed Session for a Conference with Legal Counsel-Existing Litigation pursuant to Government Code Section 54956.9(d)(1), Vinod K. Sharma, et al. v. Successor Agency to the Redevelopment Agency of the City of Santa Clara, et al., Sacramento County Superior Court Case No. 34-2013-80001396 and that the City Council, Stadium Authority, Sports and Open Space Authority, Housing Authority and Successor Agency to the Former Redevelopment Agency of the City of Santa Clara voted unanimously to authorize the City Manager/Executive Director/Contract Administrator to sign a Settlement Agreement with the following salient terms

1)    The City will remit to the Successor Agency not later than 5 business days after the effective date of the Agreement in the amount of $245,924.91 for distribution to the affected taxing entities.  Upon notice of full payment from the Auditor and Controller the Department of Finance will issue a finding of completion consistent with the dissolution legislation. 

2)    The City will remit to the Successor Agency any and all tax increment derived funds used for the construction of the Northside Library less the City’s percentage share of such funds for a net sum of $7,221,743.  After the issuance of a finding of completion the Successor Agency will also place on the recognized obligation payment schedule (ROPS) a line item to obtain approval from the Oversight Board to the Successor Agency for the prior expenditure of approximately $11,716,480 in proceeds derived from the Redevelopment Agency (RDA) 1999 and 2003 Bond Issuances used to pay for the construction of the Northside Library.

3)    A remaining balance of $6,021,895 shall be remitted by the City to the Successor Agency within 5 days of the effective date of this Agreement on the following properties:  the Great America Theme Park, the Hilton Hotel property, the North and South lots properties, Gateway Parcel 2 property, the Hyatt Hotel property and the Techmart property.  Lease revenue funds shall be first used to pay recognized enforceable obligations of the Successor Agency.  After all enforceable obligations have been fully satisfied those funds shall be remitted to the County Auditor Controller to be dispersed to the affected taxing entities.

4)    With regard to the Great America Theme Park, the California Department of Finance, California State Controller’s Office, County of Santa Clara, Santa Clara County Office of Education and the Santa Clara Unified School District agree as a result of this Agreement that the Great America Theme Park main parking lot is and always has been owned by the City and the City is entitled to any lease revenues generated from the main parking lot after June 30, 2015.  The City shall remit to the Successor Agency the amount of $324,282 which represents main parking lot lease revenues from July 1, 2012 through June 30, 2015.  Those rental funds shall first be used to pay recognized enforceable obligations of the Successor Agency.  After those have been fully satisfied those funds shall be remitted to the County Auditor Controller to be dispersed to the affected taxing entities.

5)    With regard to the Fairway Glen parcels the parties confirmed that those parcels have always been owned by the Sports and Open Space Authority (SOSA) and that any proceeds from past or future sales of the Fairway Glen properties belong solely to the City and SOSA.  The City shall remit to the Successor Agency all past lease revenues derived from the Fairway Glen property developers from July 1, 2012 through June 30, 2015 in the amount of $1,161,770 and the City shall commit and continue to remit to the Successor Agency within 5 days of receipt all future lease revenues due from the Fairway Glen property developers until the earlier of the date of the City or the SOSA sells the Fairway Glen parcels to the developer pursuant to the terms of the existing lease, or the sublease, or the date the City completes the purchase of the Convention Center properties.  The Successor Agency shall use the Fairway Glen property lease revenues to pay recognized enforceable obligations of the Successor Agency and after that they will be distributed to the affected taxing entities.

6)    With regard to property transfers not later than 15 days from the effective date of the Agreement the City shall transfer to the Successor Agency full and complete title to the following properties:  Great America Theme Park, Hilton Hotel, north south lots, Gateway Parcel 2, Hyatt Hotel, Techmart and the Martinson properties via quitclaim deed.  These properties will be conveyed free and clear of all liens and encumbrances, etc. except those existing prior to January 1, 2011 on the Great America Theme Park including the Fourth Amendment to the Ground Lease.

7)    With regard to the North South lots that certain easement agreement between the City, Stadium Authority and the Forty Niners dated January 12, 2012 and further on Gateway Parcel 2 resolution dedicating certain property for a traffic signal easement and storm drain, the waiver and release provisions contained in the agreement shall not apply to the parking easement with respect to any claim or cause of action that any party including the County may have to challenge the validity of the parking easement.

8)    With regard to the long range property management plan the Successor Agency will prepare and submit to the Oversight Board for approval a long range property management plan that will require the sale of those properties expeditiously and for maximum value pursuant to the dissolution legislation and that proceeds of those sales will be first used to pay down debt service on Successor Agency enforceable obligations and then remitted to the County Auditor Controller for distribution to the affected taxing entities.  The following properties are to be sold:  Great America, Hilton Hotel, north south lots, Gateway Parcel 2, Hyatt Hotel, and the Techmart. The Martinson property will be transferred as a governmental use property. 

9)    Finally, with respect to the Convention Center the Long Range Property Management Plan shall provide for the City to acquire the Convention Center and the common area parcels pursuant to a compensation agreement with the affected taxing entities.  That agreement will provide for the City to pay to those entities $15,000,000 for the Convention Center complex.  The City will receive a credit towards the purchase price for not taking its distribution of sales proceeds reducing the amount by $13,540,000.  The City also waives its right to place previously rent entered agreements on a future ROPS and will receive a credit of $5.6 million towards the Convention Center purchase price.  The parties waive any right to use a portion of the 2011 bond proceeds for City purposes and the City will receive an additional credit of $3.7 million toward the Convention Center purchase.  The City will make a cash payment to the Successor Agency for the remaining amount necessary in the amount of $4.1 million.  The Successor Agency will use those proceeds to pay down debt service and after those are paid any remaining sum will be distributed to the taxing entities.  The Successor Agency shall use all bond proceeds currently being held by the Agency and/or the fiscal agent to redeem or defease outstanding bond issues subject to a redemption plan that provides the greatest savings to the affected taxing entities.  The parties will work in good faith to expeditiously wind down the Successor Agency, including the payoff of all enforceable obligations and disposal of all the assets in accordance with the long range property management plan.

10)   Finally, the parties will agree that the Sacramento County Superior Court shall retain jurisdiction over the parties to enforce any stipulated settlement herein and on full performance of the terms the parties shall file with the court a request for dismissal with prejudice of the entire Sharma action.  The Council also gave authority to the City Manager to execute the Agreement with any non-substantive amendments directed by the California Department of Finance.

11)   A portion of the Ground Lease payments from the Hyatt Hotel derived from the Convention Center Ballroom are not related to the Hyatt Hotel Ground Lease and the City shall retain all revenues generated from the Ballroom License Agreement starting July 1, 2015 and the Ballroom License Agreement will be assigned to the City within 14 days of the effective date.  Revenues from the Ballroom License Agreement in the amount of $921,000 shall be transferred to the Successor Agency.

12)   Finally, the City Council also unanimously authorized the use of $11.1 million from the land sale reserve to meet the terms of the Settlement Agreement.  The City Council took no other reportable action.

 

 

 

 

 

            There being no further business, MOTION was made by O’Neill, seconded and unanimously carried (Caserta absent), to adjourn the meeting at 12:35 am, December 16, 2015.  The next regular scheduled meeting is on Tuesday evening, January 12, 2016 in the City Hall Council Chambers.

 

 

 

 ATTEST:  _________________________

                      City Clerk/Secretary/Clerk

 

 

 

 

APPROVE: ________________________

                     Mayor/Chairperson