Howe also put aside his own chance to serve as vice mayor--he is the most senior member of the council not to have served in the position--to nominate Councilman Ron Swegles as Chu's successor as second-in-command of the council.

And while it wasn't stated at the meeting, Chu also made history in Sunnyvale by becoming the city's first Asian American mayor, just as he became one of the first two Asian American elected officials in town last year.

The two men take over leadership of the council after a long year of transition for Sunnyvale. There were several controversial changes in leadership within the city staff. There was the finalization of the Downtown Redevelopment Plan and the implementation of several community- based programs that brought citizens into the city government planning in new ways, through all-day budget workshops and community group meetings.

"It's a great honor to be vice mayor, and to get to work with the people currently on the council," Swegles said. "The first year is always rough, and a lot of things have changed, and I think it's time for us to take the bull by the horns now."

Both Chu and Swegles acknowledged that the next year will not be an easy one for them or the city. In the past year, several key leadership positions were vacated, including the city manager, city attorney, department of public safety director, library director and the human resources director.

On Nov. 9, interim City Manager Amy Chan, a longtime city employee, became the full-time city manager.

Chu had a positive take on all the staff changes.

"Director vacancies are a normal part of the transition in a city government," Chu said. "I think it's good; you get fresh ideas into the city, and that's always good."

In addition to inheriting the vacancies, Chu is taking over just as the Downtown Redevelopment Plan kicks into gear. Demolition is supposed to begin on the Town Center Mall structure at the beginning of 2005, and merchants and residents downtown are predicting a long period of noise, dirt and declining sales because of the construction work. Chu himself said he doesn't think he'll get to reap the benefits of the project as mayor because, by the time it is complete, he'll be in another seat on the dais.

The new mayor said he also hopes to improve on the community outreach programs started by his predecessor. He said he's thinking of taking the council to the streets, picking neighborhoods to walk through, to gather community opinions and hopefully get more people involved in the civic process, a goal Howe set out a year ago.

"Rather than just listen to the few people who come to meetings, we need to go out there and get the full flavor," Chu said.

Swegles said he likes the idea, and thinks it could benefit everyone in Sunnyvale.

"It's something that I think could work," Swegles said. "It might even make the council meetings shorter."

But some of the issues coming in the next year can't be dealt with by walking streets and talking to residents. Both men acknowledged the uncertain financial situation, something Chu says he will be able to handle well because of his background as a banker and financial advisor.

"Because of my experience and my education, I can understand the budget a little better than most," Chu said. "I can ask the right questions."

But even with the projects facing them in the next 12 months, both men said they're excited about the future.

Still taking over as mayor can be somewhat overwhelming.

"I was more nervous than I thought I would be giving my speech," Chu admitted. "I didn't think I would be, because I've been on the council for a year now and I'm fairly used to public speaking."