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CC 01-20-09CUPERTINO APPROVED r/IINUTES CUPERTINO CITY COUNCIL Regular Meeting Tuesday, January 20, 2009 ROLL CALL At 5:00 p.m. Mayor Orrin Mahoney called the regular meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California. Present: Mayor Orrin Mahoney, Vice-Mayor Kris Wang, and Council members Dolly Sandoval, Mark Santoro, and Gilbert Wong. Absent: none. CLOSED SESSION 1. Appointment, Employment, Evaluation of Performance, Discipline or Dismissal of Public Employee -Government Code Section 54957(b)(1) regarding the City Attorney. (No documentation in packet). Mayor Mahoney reported that the City Council was in closed session from 5:05 p.m. until 6:45 p.m. No action was taken. PLEDGE OF ALLEGIANCE At 6:50 p.m. Mayor Orrin Mahoney called the regular meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California, and lei the Pledge of Allegiance. ROLL CALL Present: Mayor Orrin Mahoney, Vice-Mayor Kris Wang, and Council members Dolly Sandoval, Mark Santoro, and Gilbert Wong. Absent: none. CEREMONIAL MATTERS -PRESENTATIONS 2. E-services presentation regarding the disaster mapping project. (No documentation in packet). The City Clerk distributed a written overview of the Emergency Preparedness Incident Report software. Emergency Preparedness Coordinator Marsha Hovey gave an overview of the program, and GIS Coordinator Teri Gerhardt gave a PowerPoint presentation. They noted that this January 20, 2009 Cupertino City Council Page 2 software provided a tool to increase communications after a disaster using Google maps to show the location and damage and/or needs status of city facilities, schools, hotels etc. This software was on a server in Tex<<s so a local disaster would not affect its accessibility. In addition, the map could be updated by staff at any time in case the Internet was not functioning. Public hearin€;s had been held to introduce this working tool in progress and the project had been well received by the business community. Council received the report and thanked staff for implementing this program. No action was taken. POSTPONEMENTS The City Clerk noted that Item No. 8 was postponed to February 3, 2009. WRITTEN COMMUNICATIONS The City Clerk announced that Council had been given correspondence related to item Nos. 2, 7 and 9. Council asked that staff continue to provide hard copies of any PowerPoint slide shows in "notes" format. If full-size pages were necessary, staff should avoid using the reverse print (white letters on colored background) for hard copies. All staff handouts should be identified with a city logo or other indication of which staff member provided it. ORAL COMMUNICATIONS -None CONSENT CALENDAR Wong moved and Sandoval seconded to approve the items on the Consent Calendar as recommended, with the exception of Item No. 6, which was pulled for discussion. Ayes: Mahoney, Sandoval, Santoro, Wang, and Wong. Noes: None. Abstain: None. 3. Adopt a resolution accepting Accounts Payable for January 9, 2009, Resolution No. 09- 010. 4. Adopt a resolution accepting Payroll for Jariuary 9, Resolution No. 09-01 1. 5. Adopt a resolution approving the destruction of records from the Human Resources, Finance, Code Enforcement, Parks 8c Recreation, and City Clerk Departments, Resolution No. 09-012. ITEMS REMOVED FROM THE CONSENT CALENDAR (above) -None 6. Accept an application for an Alcoholic Beverage License for Regus, 10297 S. De Anza Blvd., On-Sale Beer Bc Wine -Public Premises (42). Council member Sandoval noted that Regis office would be closing shortly. Sandoval moved and Wong seconded to continue thi:~ item to the Feb. 3 meeting so that staff could January 20, 2009 Cupertino City Council Page 3 investigate whether the alcoholic beverage license would stay with the property or with the company when Regus closes. PUBLIC HEARINGS 7. Consider Application Nos. U-2008-02, ASA-2008-07, TR-2008-09 (EA-2008-08), Rajeev Chopra (Ebrahim Kaabipour), a 5-story hotel on 10165 N De Anza Blvd. (Continued from Dec. 2): a) Negative declazation b) Use Permit and Architectural and 5'~ite approval to demolish an existing gasoline station/caz wash and construct a 5sstory. 138 room hotel of approximately 82,000 squaze feet, which will include a restaurant, baz, lounge and conference rooms built over atwo-level underground pazking podium that contains tandem pazking c) Tree Removal request to remove 6 trees and replace with a comprehensive landscape plan The City Clerk distributed the following written communications: • An email from Sam Wood and azi attached letter dated Jan. 20 from attorney Davis E. Attorney stating that the project doesn't comply with CEQA (California Environmental Quality Act) requirements or the city's General Plan and zoning ordinance • An email to staff forwazded from Sam Wood regarding this project's violation of city policies related to setbacks and privacy • An email from Peggy Nissen op~~osed to the hotel size and architecture as proposed • Copies of the PowerPoint slides used during the presentation Senior Planner Colin Jung and City Planner Gary Chao reviewed the staff report. It was noted that at their Nov. 25`h meeting the Planning Commission had approved this project except for the building design, and on Jazz. 13`h the Commission approved the project unanimously after addressing the following issues: outdoor lighting, hotel allocation, the trash enclosure and the landscaping on I~'orth DeAnza Boulevazd as well as the new design of the project. Jung and Chao also reviewed architectural renderings, materials, elevations and public comments. Regazd:ing parking, staff noted that the city could approve a different pazking requirement from the city code if supported by a parking study. This project included lift as well as tandem pazking which would be subject to a use permit. Staff also reported that this project was consistent with the General Plan and was within the zoning regulations. Staff concurred with the Planning Commission's approval with one exception; they recomrended a redesign of the front entry canopy which staff felt needed more design flair than proposed. Staff recommended adding a condition requiring a redesign of this element at the building permit stage subject to the January 20, 2009 Cupertino City Council Page 4 planning director's approval. The Planning Commission did not agree with this proposed condition and did not include it in their approval. Applicant Rajeev Chopra, Shashi Corporation, stated that they were looking forward to building this high end luxury hotel in Cupertino. He noted that this project was LEED certified (Leadership in Energy and Environmental Design and noted that meetings had been held with the neighbors to address their concerns. He said that tandem and lift parking would only be used with valet p~irking, and that parking needs would depend upon occupancy rates and overlap of users of the various venues. Mr. Chopra stated that they would be replacing several of the trees, planting trees on DeAnza Boulevard, planting trees on the neighbors' side, and that they would make shrubs available to the neighbors for planting on their properties aid would plant as many shrubs as necessary to fill in the existing gaps between the trees. Mr. Chopra stated that they preferred the new design of the project. It was a high-end design which included excellent materials, interesting design features, a reduction in the mass of the project and a more subdued result than the original design. Concerning the construction hours and the installation of a fence during construction, they would work with staff and the neighbors. On the issue of signage and lighting, Mr. Chopra stated that there would be shaded elegant lighting and a pedestrian level hotel sign. The project architect commented on both designs for this project including the elevations and recessed windows and columns. He believed either design was fine but thought the second design was more appropriate for this location. He commented that this new design had traditional elements but also modern elements and would withstand the test of time. The following addressed the Council expressing their concerns about this project: Sam Wood, Bill Barthell, Maty Soha, Bingxi Wood, Galen Walters, Rekha Menon and Sridhar Ramaswamy. They commented on the neg~itive impact of this project on their properties, property values, views and privacy. They believed the project was too large and not in conformity with the neighborhood, not compliance with the General Plan, and that not all of the issues had been addressed in the EIR. The neighbors also commented on the exterior lighting of the hotel and the potential overflow of parking into the neighborhood. Suzi Blackman, CEO of the Cupertino Chamber of Commerce, stated the Chamber's support of this project. She noted that the developer had worked with the neighbors and the redesign had softened the building. The: Chamber believed it would be an asset to the community. Jennifer Griffin cautioned the Council about overbuilding in the city but stated she was pleased with the redesign. She hoped the developer could work with the neighbors on their concerns. Kevin Dare, Sand Hill Property Compan}~, stated his concerns about the development allocation for this project and noted that depending on what actions the Council took approval of this project may reduce the amount of rooms available for the Main Street Cupertino project. January 20, 2009 Cupertino City Council Page 5 Ruby Elbogen stated her support for this project. She too thought it would be an asset to the community and would provide addition:~l revenue to the city. Administrative Services Director Carol ~~twood stated this project would create an additional $700,000 in transient occupancy tax (TOT) as well as additional revenues from other taxes such as the property taxes. It was believed that this luxury hotel may take some clients from other hotels in the city lbut for the most part would be attracting new business. Council discussed several aspects of this project including landscaping, parking, density, design and development allocation. Wong moved and Sandoval seconded to adopt a negative declaration. The motion carried unanimously. Wong moved and Santoro seconded to approve TR-2008-09 with the following additions: The applicant shall plant more trees/shrubs on the eastern side of DeAnza Blvd. on city property, to fill in gaps where there may be a view of the hotel, in consultation with the neighbors and city staff; the applicant shall offer shrubs to the neighbors for privacy screening; the applicant shall plant larger trees (48-inch box) on the west side of the street; and the irrigation system shall be evaluated and the applicant shall be responsible for the one-time cost to update the infrastructure. The motion carried unanimously. Wong moved and Sandoval seconded to approve the use permit and architectural and site approval with Allocation Option No. 2 (-which involves using the uncommitted hotel allocation from the Vallco Planning Area and using commercial allocation from the north De Anza Planning Area that has been discounted based on peak hour trip equivalency) with the condition that when the Cupertino Square Mall Development Agreement ends, the hotel allocations will be transferred to the approved hotel projects and the commercial allocation will be returned to the available pools of development; Approved Architectural Design Option No. 2 is; if there is a parking problem or concern, the matter shall be brought back before the city; the construction management plan shall provide for posting of a 24-hour telephone number for complaints and additional fencing; the applicant shall provide 201 spaces (with capacity of up to :?40 with valet service); an adequate number of spaces for self-parking shall be worked out with staff; The motion carried unanimously. Councilmember Wong clarified for the record that the discounting is taken from retail commercial space only, and not office commercial space. RECESS Council was in recess from 10:25 p.m. until 10:38 _p.m. 8. Consider Application No. SPA-2008-01; Heart of the Citv; Stevens Creek Boulevard between Highway 85 and the Eastern city limit. Heart of the City Specific plan amendments to achieve conformance with the General Plan. January 20, 2009 Cupertino City Council Page 6 This item was postponed to February 3, 20(19. UNFINISHED BUSINESS 9. Consider Application Nos. U-2008-01, E~~-2008-07, ASA-2008-06, TM-2008-01, TR- 2008-08, Kevin Dare/Sand Hill Development Company, 500 Forbes, LLC (South Vallco Main Street Proiect); North Side of Steveris Creek Boulevard between Finch Avenue 8~ Tantau Avenue, APN Nos. 316-20-078, 316-20-079, 316-20-085: (Continued from January 12): a) Certify Final Environmental Impact Report (EIR), including the Statement of Overriding Considerations b) Use Permit and Architectural and Site Approval for a master plan for amixed-use development consisting of approximately: 147,000 square feet of retail commercial; 100,000 square feet of office; a 150 room hotel a 160 unit senior (age restricted housing facility; 145,000 squaze feet of athletic club; a four level parking garage and a 1.6 acre pazk/town squaze. (A project alternative consists of approximately 205,000 squaze feet of office and a 250-room hotel in place of the athletic club) c) Tentative map to subdivide 3 pazcels (approximately 18.7 acres) into 5 parcels for a master plan for amixed-use development consisting of approximately: 147,000 square feet of retail commercial, 100,000 square feet of office, a 150 room hotel, a 160 unit senior (age restricted) housing, facility, 145,000 square foot athletic club, a four level pazking garage and a 1.6 acre pazk/town square. (A project alternative consists of approximately 205,000 square feet of office and a 250 room hotel in place of the athletic club) d) Tree Removal request to remove :approximately 93 trees in conjunction with a proposed master plan for amixed-u:~e development The City Clerk distributed the following written communications: • An amended cover sheet for the staff report dated January 15, 2009 • Emails from Christina Fung, Choonsu Pazk, Irene Niazov, and Ming and Joyce in favor of the one-acre park and opposed to the loading dock • An email from Ken Wong asking 1:hat the item be heard early in the evening so that homeowners can participate • Two handouts of PowerPoint slides used during the presentation (staff report and Main Street Vallco Parkway option;;) Senior Planner Aki Honda reviewed the staff report. Council had asked for clarification of the following: senior housing, hotel amenities, park size and green building measures. Planner Honda also commented on the environmental impact report and statement of January 20, 2009 Cupertino City Council Page 7 overriding considerations which allowed the city to determine that there were benefits of the project that outweighed the significant unavoidable adverse environmental impacts. These benefits included: a strong municipal tax base and fiscal benefits to the city, job opportunities, senior housing units, positive: influence on the local economy, public plaza and park space, school district revenue anti improved pedestrian and bicycle circulation. Staff recommended approval of this project. Glen Goepfert, Assistant Director of Public Works, addressed various Main Street Vallco Parkway lane configurations for vehicles and bicycles. Staff recommended either Alternative 1 (one traffic lane eastbound, two traffic lanes westbound, one bike lane eastbound and westbound, angled parking south side, parallel parking north side) or 5 (one traffic lane eastbound, one bike lane eastbound, angled parking south side and no change to westbound lane configurations). Alternative O was the most severe option, Alternative 2 resulted in a loss of 27 parking spaces, Alternative 3 resulted in a loss of 48 parking spaces and Alternative 4 required tree removal. Director of Administrative Services Carol Atwood estimated there would be a $1 million net revenue gain to the city. This number vas reached after a determination was made of gross revenue minus the costs the city would incur regarding this project. Applicant Kevin Dare, Sand Hill Property _ Company, responded to questions and comments from the last meeting and said this was a plan which included mixed-use and pedestrian-friendly elements, but it needed flexibility to be successful. Mr. Dare commented on the hotel amenities, the mixed use element, parking and stated his support of Alternative 1 regarding lane configurations. Ken Rodriguez, project architect, addressed the materials, colors and design elements of the project. He also commented on the European auto court, the screening of the garage along Vallco Parkway, the generous setbacks, the four acres of landscape open space, the outdoor seating venues, the variety of architectural styles, the retail spaces, parking and size of the hotel. Councilmember Sandoval moved that since; most of these residents had spoken last week and there was no new information in the emails received the speakers be limited to two minutes. Motion failed for lack of a second. Jennifer Chang submitted a petition signed by 103 Metropolitan homeowners urging Council to keep the original size of park :and to move the loading dock away from the neighbors. The following addressed the Council stating their support of a one-acre park and relocation of the loading dock: Gunturi, F:obin Su, Ming Li, Winston, Theodore Hwa, Emily Shieh, Youngjae Kim, Stephen Lim, Terry Lydon, John Rowles, James Yeh, Renee Geng, Angeline Lin, Rachel Yuen and Ron Jou. January 20, 2009 Cupertino City Council Page 8 Jennifer Griffin commended the developer for his outreach to the community. She also urged Council to protect the ash trees on Vallco Parkway and commented on the traffic issue. Keith Murphy noted that the melding of infrastructure and communities was important but it was apparent that if not carefully thought out issues could arise. He also noted that the developer working with the community was important and this outreach should be conducted in future developments. Council addressed several issues regarding this project. They agreed that they were flexible on retail and the athletic club but not on office space; either option 1 or 2 was acceptable for Vallco Parkway retail options; phasing was acceptable; they supported Alternative 5 for lane configurations; and senior housing must include 15% onsite BMR. A suggestion was made to put housing on t:he upper floors of the garage but there was no majority support for this suggestion. Council also noted for benefit of the public that the original acreage for the corner park was .89 acres, not one acre as stated by some speakers. Kevin Dare, Sand Hill Property Company, :Mated that if they removed 2,500 square feet of retail they could increase the corner park to .75 acres. Director of Administrative Services Carol Atwood noted, in response to Council questions, that the financial return from retail would be the best option for the project, followed by the sports facility and then office uses. Jim Randolph, leasing officer for the project, stated that the only option that worked for Vallco Parkway retail was option one. Wong moved and Sandoval seconded to stipulate that the corner park area near the Metropolitan be .75 net acres. There was no vote taken on this motion. Sandoval moved and Wong seconded to a~~prove the removal of 93 trees in conjunction with the master plan for amixed-use development. The motion carried unanimously. Wong moved and Sandoval seconded to approve the Environmental Impact Report including the Statement of Overriding Con~:ideration. The motion carried unanimously. Sandoval moved and Wong seconded, for purposes of discussion, the following motion: Approve the Use Permit, Architectural Site Approval, and Tentative map with the following conditions: • Select alternate no. 5 for the Vallco Parkway lane narrowing ~ parking, consisting of one traffic lane east bound, one bike lane east bound, angled parking along the south side of Vallco Parkway and no changes to the west bound lane configuration. January 20, 2009 Cupertino City Council Page 9 • Elevations and architectural details are approved per the conditions of approval recommended by the Planning Commission, except that the architectural design of the hotel shall come back to the Cite Council for review and approval. • Phasing of the development shall take place as specified in condition No. 13 as recommended by the Planning Commission. • The below market rate (BMR) housing program condition of approval for the senior housing shall require the applicant to dedicate 15% of the total number of on-site senior housing units at below market rates. • The corner park area along Stevens Creek Boulevard, adjacent to the Metropolitan condominiums, shall be .75 net acres. • The applicant shall adjust the size of the retail building adjacent to the park to accommodate the expansion of the corner park to .75 net acres. • Developer may build up to a five-story hotel of up to 250 rooms; if there are over 160 rooms the hotel shall provide full amenities, including a banquet facility. • If the residents nearby feel that additional trees are needed to mitigate the visual impacts of the hotel, staff will evaluate the addition of trees in conjunction with the architectural and site approval process for the hotel. • The hotel allocation shall be taken from the remaining available retail commercial allocations in the city using th.e commercial traffic equivalency formula recommended by staff. In the eve-nt future hotel allocations are made available (i.e., the release of the committed hotel units or new units added by a general plan amendment) the commercial allocation would be returned to the corresponding geographic areas. • The commercial allocation for the athletic club shall be discounted to 98,800 square feet based upon a membership limit of 9,000 members. • Retail uses on Vallco Parkway at ]Finch Avenue may consist of either alternate option 1 (30,000 s.f. major retail tenant, 5,500 s.f. retail shops and two "jewel box" buildings totaling 3,100 s.f.) or alternate option 2 (40,000 s.f. major retail and 20,81 1 s.f .of retail shops lining Vallco parkway). • Tentative map to subdivide the property from three parcels to five parcels. • Allow for future conversion of the ground floor of the parking garage to retail shops as shown in the exhibits. January 20, 2009 Cupertino City Council Page 10 • The northwest corner of Stevens Ci•eek Boulevard and north Tantau Avenue shall either be an athletic club (scheme .A) or 36,000 square feet of retail commercial (alternate option). • 100,000 square feet of office space (scheme A) shall be allocated from available office allocations within the city. • The square European parking court is accepted. • Require a 400-person banquet hall for a hotel of over 160 rooms On January 12, the City Council came to consensus on the following items and these conditions were also included in tonight's action: • Senior housing interface with metropolitan is acceptable as proposed • Support the building size as proposed for senior housing and require a covenant for to ensure that the building remains as age-restricted housing for seniors. • Require applicant/developer to provide Valley Transit Authority (VTA) eco- passes for one year for the senior re:;idents of the project • Green building/LEED certification: support the condition as recommended by the applicant. Wong offered a friendly amendment to require a 400-person banquet hall for a hotel of over 160 rooms. Sandoval accepted the amendment. Sandoval called for the question, and that motion failed, with Sandoval and Wang voting yes, and Mahoney, Santoro, and Wong voting no. Further discussion followed. Sandoval a€;ain called for the question, and that motion failed with Sandoval voting yes and Mahoney, Santoro, Wang, and Wong voting no. Santoro asked a question of staff, and then the vote was taken on the original motion, including the friendly amendment, and the motion carried. 1 O. Consider implementing Phase II of the City Wellness Program. (Continued from January 12). Sandoval moved and Wang seconded to approve Phase II of the Wellness Program. The motion carried unanimously. NEW BUSINESS January 20, 2009 Cupertino City Council Page 11 11. Review and approve 2008-09 mid-year budget adjustment No. 2 which includes a report on City revenue and expenditures. Wong moved and Sandoval seconded to continue this item to the next regular meeting on February 3, 2009. The motion carried unanimously. 12. Award a contract for the Snorts Court/Te;nnis Lighting Upgrade Project at the Sports Center to Cupertino Electric in the amount of $254,000.00 for the Tennis Court Lighting Upgrade Base Bid and authorize a constniction contingency in the amount of $ 35,000 and approve the installation of a safety covc;r over the swimming pool. Merge Account 420-9236 -Tennis Court Lighting into Account 420-9231 -Sports Court and Pool Demo for a total budget for the combined project of $750,000. Edward Hirschfield supported the staff recommendation and thanked the Council and staff for their assistance and support. Santoro moved and Sandoval seconded to approve Option No. 1 in the staff report and award the contract to Cupertino Electric for the base bid only, which will require spending up o $30,000 for a pool safety cover. The motion carried unanimously. 13. Conduct the first reading of Ordinance IJo. 09-2037: "An Ordinance of the City of Cupertino adding Chapter 19.118.00 requiring artwork in public and private developments." Wong moved and Sandoval seconded to continue this item to the next regular meeting on February 3, 2009 14. Authorize the Mayor to sign the contract for City Attorney. (No documentation in packet). Sandoval moved and Wong seconded to held a closed session regarding the selection of the City Attorney on Tuesday, Jan. 27 at 5:00 p.m. before the commission interviews, and to continue this item to Wednesday, Jan. 28, at 5:30 p.m. before the commission interviews. The motion carried unanimously. ORDINANCES -None STAFF REPORTS -None COUNCIL REPORTS Councilmember Sandoval stated that she had received many emails from residents concerning the Marketplace Shopping Center. She asked the City Manager to contact the management at the Marketplace regarding these issues of non-compliance with their use permit. January 20, 2009 Cupertino City Council Page 12 ADJOURNMENT At 1:58 a.m. on Wednesday, January 21, the meeting was adjourned to Tuesday, January 27 at 5:00 p.m. for a closed session and to conduct commission interviews. The meeting will take place in Conference Room A of Cupertino City Hall, 10300 Torre Avenue. Kimberly Smith, i y Clerk Staff reports, backup materials, and items distributed at the meeting are available for review at the City Clerk's Office, 777-3223, and also on the [nternet at www.cupertino.ore. Most Council meetings are shown live on Cable Channel 26, and are available at your convenience on the web site: Visit www.cupertino.ora ,then click Online Services and Watch City Meetings. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364.