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CC 05-05-09CUPERTINO APPROVED P/IINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Tuesday, Ma;/ 5, 2009 CALL TO ORDER At 5:00 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. Present: Mayor Orrin Mahoney, Vice-Mayor Kris Wang, and Council members Dolly Sandoval, Mark Santoro, and Gilbert Wong. Absent: none. STUDY SESSION 1. Redevelopment Agency Overview presentation City Manager David Knapp explained that a redevelopment agency is created to borrow money to make improvements in a specific area. These improvements are then paid for with the expected revenue generated from the improved property. The first step was to identify a specific geographic area based on the blight of the site. In Cupertino's case the Vallco site was chosen. The second step ~~vas to establish a base year for property taxes for this specific location. Money received over the base year figure would go into the redevelopment agency funds. Kelly Kline, Redevelopment Manager, noted that the Vallco Redevelopment Area was adopted in 2000 and redevelopment ~ictivities could occur through 2030. This redevelopment area consists of 64 acres, 1.13 million square feet of retail space, three parking garages and anchor tenants (AMC 16-screen theatres, JC Penny, Sears, Strike and Macy's). She also noted that this urbanized area had blighted conditions (declining sales, high vacancies and substandard design) that could not reasonably be expected to be reversed or alleviated by private enterprise or government action or both without redevelopment. The redevelopment plan is reviewed every five years and no changes are being proposed to the plan at this time. Thi~~ study session was being held at the request of Council to give them a basic overview of the City's redevelopment agency. In response to an inquiry from Council regarding addin;; new areas to the redevelopment plan, staff responded that it was very difficult to establish an area for redevelopment. It required the coordination of various agencies and also required the existence of blighted conditions. Ms. Kline reported that the tax increment E'inancing was the primary funding mechanism for redevelopment and to date sufficient t;~x increment had not been generated to allow the City Council to fund redevelopment in the area. The current financial figures were as May 5, 2009 Cupertino City Council Page 2 follows: total outstanding debt - $263,324, total tax increment received - $570,851 and total projected net increment - $91.4 millio~i. The 2006-2008 status of the redevelopment agency included: hiring a Redevelopment agency Manager, enacting City laws to comply with state laws, undertaking communica~:ions with the Council and community and providing significant new development and improvements to the area. Lynn Hutchins, Goldfarb and Lipman, :.tated that redevelopment reform legislation (AB 1290) was enacted in 1994 which dict~~ted that a portion of the property tax revenue growth would be forwarded in the form of state-mandated "pass-throughs" to the various other taxing entities such as the local school districts which continued to accrue property taxes within the project area. She noted that basic aid districts had a 100% pass through and non-basic aid districts got a certain pc;rcentage of the tax increment for the first 10 years, the next 20 years and the final 10 years. Ms. Hutchins said that tax increments could be collected to 2045 beyond the redevelopment activities deadline of 2030. She noted that Cupertino had qualified for aone;-year extension of its plan. Administrative Services Director Carol ~~twood responded to a question by Council concerning the return to the City of some property taxes they should have received and whether this affected the base line of the Redevelopment Agency and where did this extra property tax go. Ms. Atwood noted that she would contact the Assessor's Office for clarification of the Tax Equity Allocation (TEA) shift and the Educational Revenue Augmentation Funds (ERAF) but the funds either went into the tax increment for the Redevelopment Agency or the City's general fund. Ms. Atwood also noted that in each year's annual budget report information w,~s provided on what percentage of local taxes the elementary and high school districts received before and after the formation of the Redevelopment Agency. Council received the report and no action vc~as taken. RECESS - 6:10 p.m. to 6:48 p.m. PLEDGE OF ALLEGIANCE At 6:48 p.m. Mayor Orrin Mahoney called the regular meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California, and led the Pledge of Allegiance. ROLL CALL Present: Mayor Orrin Mahoney, Vice-Mayor Kris Wang (7:20 p.m.) and Council members Dolly Sandoval, Mark Santoro, and Gilbert Wong. Absent: none. CEREMONIAL MATTERS -PRESENTATIONS 1. The City of Cupertino wishes to recognize National Foster Care Month and declares the month of May as National Foster Care Month in Cupertino. (No documentation in packet). May 5, 2009 Cupertino City Council ~ Page 3 Mayor Mahoney read the proclamation for l~lational Foster Care Month in Cupertino. 2. The City of Cupertino wishes to recognize the week of May 17-23 Hepatitis Awareness Week in Cupertino (No documentation in packet). Daniel Ki, Jade Ribbon Youth Council, th~~nked Council for the proclamation and noted that the goal of their organization was to educate the community's students regarding the serious widespread problem of hepatitis anti to motivate them to get the word out through events, screenings and outreach efforts. 3. The City of Cupertino wishes to recognize Municipal Clerks Week and recognizes the week of May 3-9, 2009, as Municipal Clerks Week in Cupertino. (No documentation in packet). City Clerk Kimberly Smith thanked Council for the proclamation and stated it was an honor to serve as the Cupertino's City Clerk. She invited the community to drop off their Vote-By-Mail ballots in the ballot box at City Hall. 4. The City of Cupertino wishes to recognize Water Awareness Month and proclaims the month of May, 2009, as Water Awareness Month in Cupertino. (No documentation in packet). John Tang, San Jose Water District, thanked the Council for the proclamation. He noted that the District had a history of promoting water conservation and the District served approximately one million residents in the greater bay area. He stated that with allocations coming from state and federal water projects they anticipated no reductions in water delivery at this time. He also did riot foresee any penalties or allocations being imposed to meet the water conservation plan to meet a 15% reduction in use. POSTPONEMENTS Wong moved and Sandoval seconded to continue item No. 15, General Plan Amendments, to the meeting of June 2. The motion carried 4-0 with Council member Wang absent. WRITTEN COMMUNICATIONS The City Clerk distributed the following items: • A copy of the PowerPoint slides about the Community Development Block Grant program (No. 16) • A copy of the PowerPoint slides about the heart of the City Plan (No. 17) • A color-coded map of the Wildland Urban [nterface Fire Area (No. 18) • An item marked Exhibit A-1, Pavem~:nt Management, Estimated Revenues and Expenditures 2009; Exhibit A-2 -Pavement Projects 2009; and acolor-coded map of 2009 Pavement Management Projects (No.. 21) May 5, 2009 Cupertino City Council Page 4 ORAL COMMUNICATIONS Happy Cohen asked to have the 2-hour parking restriction lifted from the on-street parking area near the library. Council member Sandoval explained that those particular parking spaces have restricted hours as a convenience for patrons of the Coffee Society coffee shop. CONSENT CALENDAR Sandoval moved and Wong seconded to approve the items on the Consent Calendar as recommended, with the exception of Item No. 10 which was pulled for discussion. Ayes: Mahoney, Sandoval, Santoro, Wang, and Wong. Noes: None. Abstain: None. Absent: None. 5. Approve the minutes from the Apri121 Cit)~ Council meeting. 6. Adopt resolutions accepting Accounts Pay,~ble for April 17 and 24, Resolution Nos. 09- 061 and 09-062. 7. Adopt a resolution accepting Payroll for Af~ril 17, Resolution No. 09-063. 8. Accept the Treasurer's Investment Report for March 2009. 9. Adopt a resolution declaring brush growing; on certain described properties to be a public nuisance and setting a hearing for June 2 for objections to proposed removal, Resolution No. 09-064. 11. Adopt a resolution approving a Grant of• Easement for Streetlight Purposes, Srinivas Ramakuri and Rama Lakshmi Bhimavarap~a, 10295 Wunderlich Drive, APN 375-16-019, Resolution No. 09-065. The owners of this property agree to gr~~nt to the City the right to enter and use an easement to construct, repair, operate ar~d maintain improvements necessary for the operation of a streetlight. 12. Adopt a resolution accepting a Quitclaim l;~eed and Authorization for Underground Water Rights, Srinivas Ramakuri and Rama Lakshmi Bhimavarapu, 10295 Wunderlich Drive, APN 375-16-019, Resolution No. 09-066. The property owners of this residential development agree to grant to the City the right to extract water from the basin under the overlying property. 13. Adopt a resolution approving an improvement agreement, Stelling Palms of Cupertino, LLC, 10855 N. Stelling_Road, Amended Map of Tract No. 9983, Resolution No. 09-067. Through the improvement agreement with the City, the applicant for a building permit for the development of twenty single family residential units will be obligated to bond and May 5, 2009 Cupertino City Council Page 5 construct city-specified roadside improvements along the street frontage of their building site. 14. Adopt a resolution approving a Grant of Easement for Underground Public Utility Easement and Easement for Streetlight Purposes, Wenshen Yu and Judy Yu, 10679 Minette Place, APN 375-32-039, Resolution No. 09-068. The owners of this property agree to grant to the City the right to enter and use an easement to construct, repair, operate and maintain improvements necessary for underground public utilities and the operati~~n of a streetlight. ITEMS REMOVED FROM THE CONSENT CALENDAR (above) 10. Accept an application for an Alcoholic Beverage License for Rice Cafe, 10074 E. Estates Dr., On-Sale Beer and Wine for Bona Fide Public Eating Place (41). Council member Santoro pulled this item for discussion to ask for clarification about a Google search page included in the packet, and confirmed that the Rice Cafe business name was correct. Santoro moved and Wong seconded to accept the application. The motion carried unanimously. PUBLIC HEARINGS 15. Consider General Plan Amendments, Application Nos. GPA-2008-01, EA-2009-05, GPA-2009-01, EA-2009-03, City of Cupertino, Citywide: (continue to May 27). a) 2007-2014 Housing Element update anti negative declaration b) Increase the office allocation and negative declaration Under Postponements, Wong moved and S;~ndoval seconded to continue the General Plan Amendments to the meeting of June 2. The; motion carried 4-0 with Council member Wang absent. 16. Consider adopting a resolution adopting ~:he 2009 Annual Action Plan and the use of seventh program year (2009-10) Community Development Block Grant (CDBG Funds, Resolution No. 09-069. The City Clerk distributed a copy of the PowerPoint slides about the Community Development Block Grant program. Wong moved and Sandoval seconded to adopt Resolution No. 09-069. The motion carried unanimously. May 5, 2009 Cupertino City Council Page 6 UNFINISHED BUSINESS 17. Consider Heart of the City Specific plan <<mendments to achieve conformance with the General Plan and to update the Heart of the Cit~,plan, Application Nos. SPA-2008-01 Heart of the City, City of Cupertino, Stevens Creek Boulevard between Highway 85 and the Eastern city limit (Continued from April 7). Conduct the first reading of Ordinance N~~. 09-2044: "An Ordinance of the Cupertino City Council adopting amendments to the ~:[eart of the Cit~pecific Plan." The City Clerk distributed a copy of the I'owerPoint slides about the Heart of the City Plan. Senior Planner Aki Honda and Community Development Director Aarti Shrivastava reviewed the staff report using a PowerPoint presentation. Council members discussed the draft document and gave the following direction: • Staff to add proposed Green Building/Sust~iinability language into the draft plan. • Staff to provide recommendations on the inclusion of the S. De Anza Boulevard area, including boundaries and streetscape improvements. • Hold all discussion on residential policies ~mtil the Housing Element is discussed by the City Council. • Go back to the pre-2005 General Plan Heart of the City boundaries. • Reflect all accepted items from tonight's discussion in blue text in the next draft plan. • Keep the residential density in blue text in -the next draft plan. Jennifer Griffin said her community w~is concerned about the increasing pace of development in the eastern part of Cupertino. She talked about how popular the trees are, especially the ash trees, which could be considered a type of gift to the City when this area was annexed. She encouraged the City Council to protect and increase the beautiful urban forest, especially on south DeAnza Boulevard. She also spoke about redevelopment of the Loree shopping Center, and if it is to be high-density housing, it should not butt up directly to the existing residential. Wong moved and Sandoval seconded to continue this item to a later date in the summer when staff has prepared their recommendations. The motion carried unanimously. RECESS -10:30 p.m. to 10:35 p.m. 18. Conduct the first reading of Ordinance No. 09-2042: "An Ordinance of the City Council of the City of Cupertino adding Chapter 16.74 to adopt the Wildland Urban Interface Fire Area" (Continued from Apri121). The City Clerk distributed acolor-coded m~ip of the Wildland Urban Interface Fire Area. May 5, 2009 Cupertino City Council Page 7 The Clerk read the title of the ordinance. Sandoval moved and Wang seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the first reading thereof. Ayes: Mahoney, Sandoval, Santoro, Wang and Wong. Noes: None. 19. Consider adopting a resolution amending the fee schedule for 2009-10, Schedule D, Miscellaneous Items, photovoltaic fees, Resolution No. 09-070. Building Official Greg Casteel said he recommended new photovoltaic fees for commercial customers. With the goal of cost recovery to the city, he had recalculated the costs of staff time for plan checks, inspections, etc. and determined that the cost of a 24 kilowatt system for a typical multi-family residential or commercial building would cost $617. Staff was developing a standardized flan check which would reduce the application time. Mr. Casteel also suggested that fees for quasi-public buildings be eliminated and incorporated under the multi-family residential and commercial fee structure. Wong moved to approve the resolution with the additional condition that quasi-public uses should be 80% of the amount of commercial/industrial uses. Santoro seconded for purposes of discussion. After Council discussion, Wong withdrew his original motion, and offered a substitute motion to approve the resolution. Sandoval seconded and the motion carried unanimously. NEW BUSINESS 20. Review and Approval of Relocation Impact Statement and Last Resort Housing Plan for the Maitri Transitional Housing Program. Adopt a resolution adopting the final relocation impact statement and last resort housing plan for 19489 Rosemarie Place, Cupertino, CA, Resolution No. 09-071. Senior Planner Vera Gil stated that the Council had funded this project (providing transitional housing for victims of domestic violence) last year and it was a federal requirement to pay for the relocation costs. The estimated relocation costs were $125,000- $165,000 with $200,000 budgeted by Maitri (project sponsor) to cover relocation costs. The participating cities would be approached for a pro rata share of the additional relocation costs. Any such additional costs would be brought back to Council. Wong moved and Sandoval seconded to adopt Resolution No. 09-077. The motion carried unanimously. 21. Report on the Pavement Management Pro~:ram. The City Clerk distributed the following items: (1) Exhibit A-1, Pavement Management, Estimated Revenues and Expenditures 2009; (2) Exhibit A-2 -Pavement Projects 2009; and (3) A color-coded map of 2009 Pavement Management Projects. May 5, 2009 Cupertino City Council Page 8 Assistant Director of Public Works Glenn Goepfert reported that the City's Pavement Management Program was done every two years and was last completed in March, 2008. He gave an overview of the pavement management program model and methodology used for cities, the benefits of preventive maintenance, use of a Pavement Condition Index, and a description of the street maintenance methods (pavement restoration, slurry seal, cape seal and pavement overlays). Currently the ranking showed that 92% of the City's 142 miles of streets were in good or very good condition. Mr. Goepfert noted that the total pavement management funds available for 2009 projects were $2,050.00. The total planned pavement management expenditures for 2009 were the same amount and covered the following projects: pavement :restoration - $220,000, local streets pavement management - $830,000, and the ARRA Pr~~ject $1,000,000. Council concurred to receive the report, and no action was taken. 22. Consider cancelling_the meetin og f May 19 (no documentation in packet). Wang moved to cancel the meeting of IVtay 19, and Wong seconded for purposes of discussion. The motion carried with Santoro and Wong voting no. Council concurred to continue any items planned for May 19 to the meeting of June 2 or June 10. ORDINANCES 23. Conduct the second reading of Ordinance ]yo. 09-2043: "An Ordinance of the Cupertino City Council adding Section F to Chapter 1.12.010 of the Cupertino Municipal Code regarding a $50 first infraction fine, a $100 second infraction fine, a $200 third infraction fine, and thereafter for dogs running at lar€;e, public nuisance, restraint of dogs, and dogs off-leash". Happy Cohen stated that County assessment fees were added to any fines issued by the City, so a $50 fine really added up to $245, a $100 fine added up to $490, and a $200 fine added up to $980. Mr. Cohen said the payment of extra fees was due to the County's accounting system, and he recommended that the City model its accounting system after the one in Sunnyvale, in which citizens received a warning first, and then paid the fine directly to the City. Mr. Cohen said the current fine structure could create a real hardship for many people, and he recommended that the Council not conduct the second reading of this ordinance. In addition, he noted that if this is made an infraction, residents would not have a right to go to court on the matter. Wang moved and Wong seconded to read. the ordinance by title only and that the City Clerk's reading would constitute the seco~id reading thereof. Ayes: Mahoney, Santoro, Wang and Wong. Noes: Sandoval Councilmember Sandoval stated that she voted no because she felt there should be a multiplier after the third offense. May 5, 2009 Cupertino City Council Page 9 Wang moved and Santoro seconded to en~~ct Ordinance No. 09-2043. Ayes: Mahoney, Sandoval, Santoro, Wang, and Wong. Noes: None STAFF REPORTS -None COUNCIL REPORTS Council. members highlighted the activities of their committees and various community events. ADJOURNMENT At 11:40 p.m., the meeting was adjourned to Wednesday, May 27 at 5:00 p.m. for a budget study session, City Hall Room 100, 10300 Torre Avenue. Kimberly Smith, Jerk 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 Internet at www.cupertino.org. Click on Online Services, then Watch City Meetings. Most Council meetings are shown live on Cable Channel 26, and are available at your convenience on the web site: Visit www.cupertin~~.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. May 5, 2009 Cupertino City Council REDEVELOPMENT AGENCY MEETING Canceled for lack of business. Page 10 The City of Cupertino has adopted the provisions of Code of Civil Procedure X1094.6; litigation challenging a final decision of the City Council/RE~development Agency must be brought within 90 days after a decision is announced unless a shorter time is required by State or Federal law. Any interested person, including the applicant, prior to seeking judicial review of the city council's decision with respect to quasi judicial actions, must first file a petition for reconsideration with the city clerk within ten days after the council's decision. Any petition so filed must comply with municipal ordinance code X2.08.096. In compliance with the Americans with Disabilities Act (ADA), the City of Cupertino will make reasonable efforts to accommodate persons with qualified disabilities. If you require special assistance, please contact the city clerk's office at 5-08-777-3223 at least 48 hours in advance of the meeting. Any writings or documents provided to a majority a f the Cupertino City Council after publication of the packet will be made available for public inspection in the City Clerk's Office located at City Hall, 10300 Torre Avenue, during normal business hour.~s and in Council packet archives linked from the agenda/minutes page on the Cupertino web site.