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.