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CC 06-02-09CUPERTINO APPROVED MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Tuesday, June 2, 2009 ROLL CALL At 4:04 p.m. Mayor Orrin Mahoney called the rel;ular 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. STUDY SESSION Study Session on the proposed 2009/10 Budd. (Continued from May 27) Staff members from different departments reviewf~d a packet of materials which included: • A list titled 2009/10 Budget Study session. Council Follow Up Items • The School Safety staff report (May 20, item No. 17) • A listing of federal stimulus grants, • An interoffice memorandum regarding budget for the Heart of the City Specific Plan • A staff report regarding the breakdown of ~:lection and potential Utility User Tax measure • An update on digital technology and Comcast signal quality • The status of the digital bandwidth project and budget • A list of the City's operating budget expenditure trends • An update on the Housing Element budget • An update on the cost sharing agreement for the traffic study for new hotel and office square footage • PowerPoint slides regarding preliminary budget estimates • Comparison of Capital Improvement Project budget items Administrative Services Director Carol Atwood provided information on items requested at the previous budget discussion of May 27, including: • Recap of the last two years of School Resource Officer costs • Footnote Retiree Medical Trust activity in the budget document • Denote any deadlines on Stimulus Grant applications • Description of what $130,000 can provide for the Heart of the City • Breakdown of General Election versus Utility User Tax costs June 2, 2009 Cupertino City Council Page 2 • What's happening with Cupertino Chann~:l broadcasting regarding quality improvement and update on digital status • Status of bandwidth project and budget • Community Development budget regarding Below-Market-Rate housing projects for two years; mid- to long-term planning project; for two years; affordable housing projects for two years; total project to date Housing ElE~ment budget • Any cost sharing agreement for traffic study for new hotel and office squares • Capital Improvement Projects regarding a. list of wish items and reconciliation between Public Works Director's and Administrative Services Director's PowerPoint presentations • Rental revenue from the Simms property • 09/10 expenditure trends Public and Environmental Affairs Director Rick Kitson explained the need for infrastructure updates (I-NET) to the cable system's fiber insertion point at Imperial Avenue, and said the estimate of creating afiber-based I-Net connection ranges from $50,000 to $100,000, depending upon the extent of existing easements and construction costs, primarily trenching. Councilmember Santoro asked staff to explores the possibility of obtaining data service over a fiber connection to Comcast. Mr. Kitson also noted that the City Attorney was reviewing the local telecommunications ordinance to make it more compliant with the new State franchising law. This State law may provide ;some new revenue that could be used to offset the cost of fiber to improve the picture quality of the City's television programs Jessica Garcia-Kohl, Associate Director of the Housing Trust of Santa Clara County, thanked the Council for past financial support totaling $275,000, and urged the Council's support for $25,000 for the Housing Trust in fiscal year 2010. She said the Trust is a sustainable agency with a proven record of investing in the community; it has raised $38 million, of which $30 million has already gone back into new housing and first-time home buyer loans, and another $4 million has been earmarked for the county. The Trust has invested $500,000 directly back into Cupertino. She said if the City has future affordable housing projects, the Council might wish to consider increasing their investment in the Trust, which can double the value. Jennifer Griffin said that the last time City Council discussed the budget, they talked about no longer maintaining residential sidewalks and instead making that the responsibility of the homeowners, and she strongly objected to that proposal. Mayor Mahoney said that idea was raised as an option in the fiscal strategic plan, but it was not being considered at this time. Council requested the following information to b•° provided at the next meeting: • Website usability assessment • Recommendations for COPS monies, and ]IOw do other cities spend those funds • What does a School Resource Officer (SRO) do • Footnote SRO and School District information in the budget • What does the City do for the school distri~~ts • Prepare a memorandum regarding school crossing guard schedules • Housing Element budget breakdown June 2, 2009 Cupertino City Council Page 3 • Estimate of staff time for traffic study and new hotel • Impacts and options regarding the state loan/take away CLOSED SESSION Mayor Mahoney said that the previous evening the City Council went into closed session pursuant to Government Code Section 54957(b) (1), Appointment, Employment, Evaluation of Performance, Discipline or Dismissal of Public F;mployee) regarding the Interim City Attorney, and no action was taken. RECESS -Council recessed from 6:20 p.m. to 6:45 p.m. PLEDGE OF ALLEGIANCE At 6:45 p.m. Mayor Orrin Mahoney called the regular meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California, and lc;d 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 1. Receive annual report from the Fine Arts Commission. Robert Harrison, Fine Arts Commission Chairman, acknowledged his fellow commissioners and noted the commission's mandate which was to advance the arts in the City through a number of activities and programs. He reported on their completed projects, on their review of public art applications, on grant applications, on the selection of a distinguished artist and an emerging artist of the year and on the commission's support of the arts throughout the community. Mr. Harrison specifically thanked Commissioner Nancy Canter, a former Fine Arts Commissioner and Dean of Creative Arts at DeAnza College, and City Staff .Liaison Kimberly Smith, City Clerk, for their major contributions toward the completion of the "Quarter Percent for Art" documents. POSTPONEMENTS City Clerk Kimberly Smith requested that item N~o. 6 be deferred to a later date, so that the City Council can discuss potential improvements to the teen commission appointment process. Council member Kris Wang noted that when the resolution is adopted, the current membership will be changed to 11 members, not 13 members. June 2, 2009 Cupertino Cit:~ Council Page 4 WRITTEN COMMUNICATIONS The City Clerk distributed the following written communications at the meeting: • Email from Marshall and Nancy Wang in ~;upport of teen volunteer programs, Linda Vista Park renovation and Regnart Road repair ([tem 14) • Email from Alex and Irina Vayner, Eric Wilson, Sherri Stein, and Joseph Maggiolino advocating both fenced and unfenced off-leash recreation areas for dogs; Bryan and Carol Miller and Eric Wilson were also in favor of both types of dog areas for asix-month trial period (Item 14) • An interoffice memo from Public Works to Planning recommending that some project design features remain in force (Item 15) • Copy of the staff s PowerPoint slide presentation (Item 15) • Copy of the staff s PowerPoint slide presentation (Item 16) • Email from Keith Murphy objecting to the housing allocation update process (Item 17) • An updated Table F.2 Tier 2 Sites inventory (Item 17a) • Copy of the staff s PowerPoint slide presentations (Item 17a and 17b) ORAL COMMUNICATIONS Ruby Elbogen noted that on July 25-26 the American Cancer Society's Relay for Life would be held at DeAnza College. She urged everyone to participate. Lin Lee urged Cupertino to work with neighboring Los Altos on the issue of establishing dog parks. Daniela Topham commented on the off leash dog issue. She stated that large dogs needed an area in which they could run and elderly residents needed a safe place in which to run their dogs. She stated they now had nowhere to go and urged Council to correct this situation. CONSENT CALENDAR Wong/Santoro moved and seconded to approve the items on the Consent Calendar as recommended, with the exception of Item No. 6 which was deferred to a later date at the request of staff. Ayes: Mahoney, Sandoval, Santoro, Wanl;, and Wong. Noes: None. Abstain: None. 2. Approve the minutes from the May 5 City Council meeting. 3. Adopt resolutions accepting Accounts Payable for May 1, 8, 15, and 22, Resolution Nos. 09-072 through 09-075. 4. Adopt resolutions accepting Payroll for IVIay 1 and 15, Resolution Nos. 09-076 and 09- 077. June 2, 2009 Cupertino City Council Page 5 5. Accept the Treasurer's Investment and Bud export for April 2009, including a report on General Fund Revenues and Expenditw•es. 7. Accept an application for an Alcoholic I3evera~e License for Lon s Drug Store 9894, 10455 S. De Anza Blvd., Off-Sale General (21). 8. Accept municipal improvements, Reza Development, LLC, a California Limited Liability Company, 10484 Byrne Avenue, APN 357-14-078. The applicant has completed City-specified improvements in the City right-of-way including sidewalk and curb/gutter work as required by the improvement agreement with the City. 9. Adopt a resolution approving a Grant of Easement for Streetlight Purposes, Samir Khosla and Monica Khosla, and Jivan Kumar Khosla and Renuka Khosla, 18760 Tilson Avenue, APN 375-17-040, Resolution No. 09-079. The owners of this property agree to gr~mt to the City the right to enter and use an easement to construct, repair, operate acid maintain improvements necessary for the operation of a streetlight. 10. Adopt a resolution accepting a Quitclaim Deed and Authorization for Underground Water Rights, Samir Khosla and Monica Khosla, and Jivan Kumar Khosla and Renuka Khosla, 18760 Tilson Avenue, APN 375-17-040, Resolution No. 09-080. 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. 11. Adopt a resolution accepting a Quitclaim Deed and Authorization for Underground Water Rights, Mary E. Bennett, 18848 Loree Avenue, APN 375-15-018, Resolution No. 09-081. The property owner of this residential devf~lopment agrees to grant to the City the right to extract water from the basin under the overlying property. 12. Adopt a resolution accepting a Quitclaim Deed and Authorization for Underground Water Rights, Cha Eun Park and David Chon, and Young Bin Park and >n Sung Park, 1151 S. Stellin~, APN 362-22-016, Resolution No. 09-082. 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. Award a construction contract for the Morita Vista Roof Project, Project No. 2009-01, to Petersen Dean Roofing and Solar Systems, Inc., in the amount of $177,000, and approve a construction contingency of $20,000 to cover any unforeseen work required to complete the project, for a total of $197,000. June 2, 2009 Cupertino City Council Page 6 ITEMS REMOVED FROM THE CONSENT (:ALENDAR (above) 6. Adopt a resolution amending the Teeri Commission composition to decrease the membership from 13 members to 9 members by the year 2010, Resolution No. 09-078. This item was deferred to a later agenda ;~o that the City Council could discuss ways to improve the Teen Commission appointment process. Mayor Mahoney re-ordered the agenda to consider item No. 18 next. NEW BUSINESS 18. Consider objections to the proposed removal of brush, and adopt a resolution ordering the abatement of a public nuisance (city-wide brush abatement) pursuant to provisions of Ordinance No. 724 and Resolution No. 09-064, Resolution No. 09-084. Julie Linney from the Santa Clara County )sire Marshal's Office explained the notification process for brush abatement. She said th~~t there were five properties which had not yet removed brush at the time the report was written, but since that time two of those properties had been abated. The Council members agreed to defer action until later in the evening in case interested property owners had not yet arrived at the meeting. Later in the meeting the issue was raised again, and there were no speakers. Wong moved and Sandoval seconded to adopt Resolution No. 09-084. The motion carried unanimously. CITY COUNTY AND REDEVELOPMENT AGENCY JOINT MEETING PUBLIC HEARINGS Mayor Mahoney announced that Council and the Redevelopment Agency were meeting concurrently to discuss the 2009-10 budgets. At 7:55 p.m., Chairman Orrin Mahoney called the Redevelopment Agency regular meeting to order in the Council Chamber, 10350 Torre Aven~~e, Cupertino, California and opened the public hearing on both budgets. Present: Chairman Orrin Mahoney, Vice-Chair Kris Wang, and Agency Members Dolly Sandoval, Mark Santoro, and Gilbert Wong. Absent: none. 14. Conduct the first of two public hearings on the 2009-10 budget. Review the Cupertino Redevelopment Agency Operating Budget for 2009-10. The City Clerk distributed email from 1\~arshall and Nancy Wang in support of teen volunteer programs, Linda Vista Park renovation and Regnart Road repair; email from Alex and Irina Vayner, Eric Wilson, Sherri. Stein, and Joseph Maggiolino advocating both June 2, 2009 Cupertino City Council Page 7 fenced and unfenced off-leash recreation areas for dogs; and email from Bryan and Carol Miller and Eric Wilson who were also in favor of both types of dog areas for asix-month trial period. Director of Administrative Services Ca::•ol Atwood stated that staff was presenting Council with a balanced budget for the year 2009-10. She underscored the importance of proactive financial planning, the establishment of a Fiscal Strategic Planning Committee and annual budget reviews. Ms. Atwood presented an overview of general fund revenues and operating expenditures, the five-year ~:apital improvement program, federal stimulus grant applications, department budgets and new budget items for consideration. These new items included: minor changes to existing staff positions, contribution to the Housing Trust Fund, completion of the Housing Element and the Heart of the City Plan. It was also noted that there was a slight increase in Sheriff's costs due to cost of living and the Sheriff's service levels would rem~iin the same in the city. Jennifer Griffin commented that she did not believe public sidewalks should be maintained by the residents. Council stated that this issue was not being; proposed in this budget. It was an item that at some point would be reviewed by the Fiscal Strategic Planning Committee. In addition to the proposed budget document under consideration, Council noted the following items should be included in the budget discussions: $85,000 for a fiber cable to increase television reception and perhaps a higher bandwidth, a skate park (for this year's budget or some future date) and Leadership Cupertino. City Council concurred to hold an additional study session on the City Council and Redevelopment Agency budgets on Wednesday, June 10, at 4:00 p.m. in the City Council chambers. 15. Consider an appeal of a Planning Commission decision to approve a Use Permit and Architectural and Site Approval to allow the construction of a new automated carwash tunnel, a new trash enclosure and enhancements to the parking lot, and new landscaping features at an existing gas station. Application Nos. U-2009-02 and ASA-2009-02, Muthana Ibrahim (Atam Sandhu), 1699 :iouth De Anza Boulevard, APN 366-10-120. (Continued from May 27). The City Clerk distributed an interoffice memo from Public Works to Planning recommending that some project design features remain in force, and a copy of staff's PowerPoint slide presentation. Planning Intern George Schroeder stated that on April 14, 2009 the Planning Commission had approved the above-referenced application and on April 27, 2009 an appeal had been filed. This appeal was based in part on loss of revenue for the Coach House Center, hazardous conditions for customers anti employees due to increased auto traffic, unnecessary congestion, noise concerns, not enough parking and insufficient access for June 2, 2009 Cupertino City Council Page 8 emergency vehicles. Staff addressed each ~~f the concerns and determined that these issues had been addressed in the Planning Commission's review and approval of the application. Harvinder Singh and Jyoti Rekhi, tenants speaking on behalf of appellant Paul Rekhi, the owner of the Coach House property, presented an overall picture of the properties under discussion and commented on the access issue. They noted that no studies had been done on traffic or consumer behavior patterns. An agreement had not been reached on the easement issue and they were asking that the access be left open to their property off Prospect. In addition they commented on the noticing procedure and stated that they had not received notices of the hearings on this matter. Larry LaBarberg, Coach House property owner, said that the plan was beneficial to the gas station but they would lose a driveway on the northwest side at the Coach House property. He had hoped there could be sorrie sort of compromise but he had tried to talk to the gas station owners and no agreement had been reached. Mr. LaBarberg also noted that twice he had received a mailing with no notice in it and had to come to the planning department to get it. Muthana Abrahim, applicant's architect, ;Mated that they had worked with the Planning Commission to arrive at the layout for the Coach House and Prospect access issue. He also noted that the access off DeAnza had been closed at the recommendation of the Public Works Department because it was too close to the intersection. Adam Sandhu, applicant (owner of the g~~s station), stated that over the years there had been verbal agreement for two driveways but no easement had been recorded. He further stated that he would rather have no dri~~eway rather than just one. Mr. Sandhu also commented on hours of operation, his recycling plan, the relocation and landscaping of the propane tank and the landscaping plan for the property. Ting Kao, a neighbor adjacent to the gas station, asked that an engineering study be done to make sure that the noise levels would not be increased as a result of the new car wash. Phil LaBarberg, part owner of the Coach House Center, urged that both driveways be kept open as it was advantageous to both parties. However, he stated that rather than have just one driveway he would prefer none. Carsten Hughes, a vendor to the Coach House, stated that without having access to get onto DeAnza Blvd north it would be virtually impossible to get across three lanes of traffic to get into the left-hand lane to make a U-turn. Suzi Blackman, Chief Executive Officer of the Cupertino Chamber of Commerce, asked that the City Council deny the appeal. She noted that this had not been reviewed by the Chamber's legislative action committee but the Chamber's position was to support a property owner's right to develop his property. June 2, 2009 Cupertino City Council Page 9 Dennis Whittaker spoke in favor of the appellant. He stated that the Coach House was a small, successful business in the community and should not be burdened by the adjacent owner's wish to open a car wash. Barry Chang noted that an easement with public use for more than five years was an easement. Sandoval moved to uphold the appeal with- the following modifications: • Accept staff s recommendations regarding landscaping, egress and ingress, parking • Change item 11 to read: "the property owner shall record an access easement with the County of Santa Clara for ingress rind egress access on the northeast driveway between the property (APN 366-10-1:?0) and the Coach House property (APN 366- 10-061)." • Add a new condition that states: "Until the above access easement is reciprocated by the adjacent Coach House property owner, that boundary shall be landscaped by the gas station property owner." • Store and gas station will open at 6:00 a.m. and car wash at 8:00 a.m. • The southern southeastern driveway along South De Anza Blvd. is restored as exit only Santoro seconded for purposes of discussion. City Planner Gary Chao stated the City wanted the owner to offer an access easement recorded on his property for future pote~ltials. In addition, he noted that in condition eleven the word reciprocal should be deleted as the City was not legally able to require such an easement. Wong offered a friendly amendment to make the Prospect curb cut both ingress and egress. The amendment was not accepted. Wong offered a substitute motion to make the Prospect curb cut both ingress and egress. The motion died for lack of a second. San~ioval's original motion carried unanimously. RECESS -Council recessed from 10:15 - 10:25 Mayor Mahoney re-ordered the agenda to discuss item No. 19 next. 19. Approve the transfer of approximatel}~ $29,000 in unspent funds in the "Law Enforcement Santa Clara County Sheriff's Contract" account to fiscal year 2009-10 for funding school safety incentives. Santa County Sheriff Captain Terry Calderone recommended that the approximately $29,000 remaining funds for the Traffic Safety Consultant Study be rolled over to the 2009-10 fiscal year budget to fund walk bike/carpool programs. He noted that the traffic consultant had been unable to complete several of the scheduled objectives. However, he June 2, 2009 Cupertino City Council Page 10 did evaluate the safety issues at the fourteen schools in the City and this report as well as other data and project ideas had been presented to the Public Safety Commission. Recommendations were made for specific safety measures at five of the schools (Collins Elementary, Eaton Elementary, Garden Gate Elementary, Sedgwick Elementary and Hyde Middle School). In addition to this report an initial survey had been completed of the schools regarding current use of the walk:/bike/carpool program. It was also noted that the motor unit enforcement around the schools had been very effective on traffic and driver education and the goal was to keep this program in place. Nina Daruwalla, member of the Garden Gate Elementary PTA, noted that there were parent volunteer crossing guards at Garden Gate Elementary School on three crosswalks. Jennifer Griffin supported the recommendation for the addition of an overhead flashing amber signal at the crosswalk at Sedgv~~ick Elementary. She noted this was a very congested area and any additional safety measures would be helpful. Tamara Pow, Public Safety Commission Chairman, stated that the commission was working diligently with the schools on the safety incentive programs and considering several ideas for encouraging participation in these programs. The commission supported the recommendation to designate these funds for the incentive programs. Council member Wong referred to the five schools specifically mentioned and suggested that the schools and particularly the neighbors be notified of the proposed installation of certain safety measures. The City Manager noted that a public hearing could be scheduled. Council discussed this and it was decided that it would be sufficient to send out notices to the schools and neighbors notifying them of the proposed ideas and giving them the opportunity to comment. Sandoval moved and Wong seconded to roll over the remaining $29,000 to Fiscal Year 2009/2010 to fund Walk/Bike/Carpool programs. The motion carried unanimously. 16. Consider adopting a resolution amending; the 2008 Annual Plan to award $105,013 in Community Development Block Grant Recovery (CDBG-R) funds appropriated by the American Recovery and Reinvestment Act (ARRA) and authorizing the City Manager to submit the amended plan, project proposals and funding application to HUD, Resolution No. 09-083. The City Clerk distributed a copy of the staff's PowerPoint slide presentation. Senior Planner Vera Gil reviewed the staff report and discussed the ARRA stimulus funds from the federal government that are available in addition to the CDBG funds that the city usually receives each year. Sandoval moved and Wong seconded to adopt Resolution No. 09-083. The motion carried unanimously. June 2, 2009 Cupertino City Council Page 11 Mayor Mahoney re-ordered the agenda to discuss item Nos. 18 and 20 next. NEW BUSINESS -continued 18. Consider objections to the proposed remo~~al of brush, and adopt a resolution ordering the abatement of a public nuisance (city-wide brush abatement) pursuant to provisions of Ordinance No. 724 and Resolution No. 09-064, Resolution No. 09-084. This item was originally discussed after the Consent Calendar. At 11:10 p.m. Wong moved and Sando~~al seconded to adopt Resolution No. 09-084. The motion carried unanimously. ORDINANCES 20. Conduct the second reading of Ordinance No. 09-2042: "An Ordinance of the City Council of the City of Cupertino addin€; Chapter 16.74 to adopt the Wildland Urban Interface Fire Area" Wong moved and Sandoval seconded to read the ordinance by title only and that the City Clerk's reading would constitute the seco~id reading thereof. Ayes: Mahoney, Sandoval, Santoro, Wang, and Wong. Noes: None. Wong moved and Sandoval seconded to enact Ordinance No. 09-2042. Ayes: Mahoney, Sandoval, Santoro, Wang, and Wong. Noes: None. 17. 17. Consider General Plan Amendments, Application Nos. GPA-2008-01, EA-2009- O5, GPA-2009-01, EA-2009-03, City of Cupertino, Citywide (continued from May 5): a) Adopt a draft 2007-2014 Housing 1?lement and forward to the State Department of Housing and Community Developrnent (HCD) b) Consider increasing the office allocation in the General Plan The City Clerk distributed email from Keith Murphy objecting to the housing allocation update process; an updated Table F.2 Tie; 2 Sites inventory for Item 17a; and copies of the staff PowerPoint presentations for items 17a and 17b. Consultant Paul Peninger, Vice President ~~f Bay Area Economics, stated that at this time they were asking Council's permission to forward the draft Housing Element to the State Department of Housing and Community C~evelopment for their review and comment. Mr. Peninger gave the Council an update on the following: the Housing Element update process, the certification process, the components of the Housing Element, the Bay Area Regional Housing Needs Allocation (RHI`lA) 2007-14, the RHNA Planning Goals 2007- 14, the site inventory process, sites to accommodate RHNA and potential sites for discussion. Mr. Peninger noted that the RHNA planning goals included the following: June 2, 2009 Cupertino City Council Page 12 allocation, 1,170; already approved, 533; new construction, 717. He said that low- and very-low-income housing was still needed. Mr. Peninger also reported on the following key zoning and land use changes and policy changes: 1) Adopt changes to the zoning code to permit residential uses on design~ited parcels in the following districts: Heart of the City, Homestead Road, South Vallco Park, North DeAnza Boulevard and Non- Designated Areas. Zoning and land use changes would add residential uses to existing uses and would not preclude existing user from continuing operations. City-initiated re- zoning would not trigger reassessment of property or result in any fees for the owner.; 2) Increase residential allocations in the folhwing areas: Heart of the City, North DeAnza Boulevard and Vallco Park South; 3) In order to comply with State law, the City will revise the Zoning Ordinance to permit p~:rmanent emergency shelter facilities in "BQ" Quasi-Public Zones and 4) Coordinate with the local school districts to discuss city planning initiatives, the development process and school capital projects and operating plans. Senior Planner Vera Gil and Director of Community Development Aarti Shrivastava responded to questions raised by Council on the site inventory process, the sites recommended to accommodate RHNA acid the allocation numbers. Staff noted that in order to meet the allocation needs, the City did not need to build the units but must show that the sites were there. Staff also noted that Council could send the draft Housing Element to the State before taking action. on the key zoning and land use changes and policies as noted by the consultant. Additionally, staff explained why the proposed sites yielded more units (1,059) than the required 717, stating that it was expected the State may reject some of the sites. Concerning ;;ranny units, staff stated that they could only be counted if built and subdivisions could bc~ counted only if they met the twenty units per acre requirement. Jennifer Griffin agreed that there were housing needs but she also noted the current high rate of unemployment in the county. She ciid not agree that retail spaces should be turned into housing. Furthermore, she strongly believed that affordable housing should also include park areas. Suzi Blackman, Cupertino Chamber of Commerce CEO, stated that she had participated in the focus meetings on this issue and the consultant had done an excellent job of obtaining comments from the community. Ms. Blackman noted the importance of keeping local sites available for the continuing growth of the community and stated her support of the draft Housing Element. Keith Murphy commented that he wished there had been a map that showed the housing sites and stated what the city needed to provide. Mr. Murphy believed that the community had not been sufficiently engaged in this process. Bern Steves noted that a lot of money h;~d been spent on a consultant that he felt was unnecessary. He also referred to the statement that every city was required by law to have an approved Housing Element in place acid questioned what the consequences were if a city did not have one. He encouraged Council to reconsider the numbers and proposals June 2, 2009 Cupertino City Council Page 13 before them, and to consider suitable options such as granny units and plot partitions. Mr. Steves also urged Council to preserve the character of the city. Tom Hugunin and Robert McKibben distributed and discussed a copy of Table F.1: Tier 1, Site Inventory, with a column n-~arked CCC/CARe Proposed Yield. They recommended looking at other options w]'~en considering high density development such as granny units, parcel splits and the infilling of existing apartment complexes. They also stressed the importance of maintaining the tax base with commercial, retail areas. For example, the frontage along the Stevens Creek Corridor could include retail in front with residential in back. The chart they had prepared and distributed to Council showed their recommendations for sites and numbers. Barry Chang stated that higher density in housing resulted in higher density in the schools. He also recommended looking for park areas when considering the housing issue. Mr. Chang commented that he did not think this important discussion on housing should take place at such a late hour. Darrel Lum supported the comments made earlier by Tom Hugunin and Robert McKibben. He also agreed with Mr. Chang that it was much too late in the evening to be discussing this matter and comments by the community were minimized because of the late hour. Council agreed that they wanted additional time to examine the allocations and sites proposed in the draft Housing Element as well as the information and suggestions provided by residents at this meeting. In addition, Council agreed to look at any properties that may have been left off the list and to bring to the discussion any suggestions for possible sites. Council also agreed that additional units would not be submitted to the State in the draft Housing Element. Council stated that they would discuss these options to arrive at their best recommendation for 717 housing units at their next meeting. Wong moved and Sandoval seconded to continue Item No. 17A to June 10. The motion carried unanimously. Senior Planner Gary Chow reviewed they staff report on the issue of a General Plan amendment to increase the office allocation. He referred to the development allocation table and noted that currently there were 3~~5,612 square feet of office space remaining in the General Plan. Mr. Chow also noted that there were 483,053 square feet of residual office allocation available from the 2005 General Plan. The Council had the option of adding the residual office allocation back into the office allocation. The Planning Commission's recommendation was that the Council amend the 2005 General Plan to add back the residual office allocation and further recommended that this new office allocation should be reserved for major companies. June 2, 2009 Cupertino City Council Page 14 Keith Murphy stated that he had hoped the committee formed to provide input on the housing element would have had an opportunity to meet with the business community to discuss proposed office allocation needs. The committee believed that there was a link between the housing element and office allocation needs. However, this dialogue had not taken place. Suzi Blackman, CEO of the Cupertino C1lamber of Commerce, stated that the Chamber supported a General Plan amendment to increase the office allocation. It was important to allow Apple and Hewlett Packard to grow and expand. Both of these companies not only made many significant contributions to the city but also provided revenue and a positive visibility. Ms. Blackman also urged Council to allow these companies strategic flexibility to explore a variety of land use decisions. Tom Hugunin stated his support for an increase in office allocations but did not support a General Plan amendment at this time. Apple and Hewlett Packard had not shown any plans for what they proposed to do. Mr. Hugunin supported a letter of intent or a development agreement that would not result in any additional housing needs. Jennifer Griffin agreed that Apple and He~~vlett Packard were important to the city but she did not support a General Plan amendment. She supported an increase in office allocations but urged Council to proceed carefully. Ms. Griffin commented that presently there was a high rate of unemployment in the county and there was ajobs/housing imbalance. Barry Chang referred to the issue of fairness and asked if other companies would be able to come in for a General Plan amendment. Apple and Hewlett Packard needed a plan and he did not think it was prudent planning to increase their office allocations without one. In addition he noted that these increased office allocations would have an impact on housing, traffic and schools. Marty Miller, Planning Commissioner, st;~ted that he was not opposed to giving Apple and Hewlett Packard the additional square footage but the city had a responsibility to plan for the housing needs that would come a.s a result of these additional allocations. Mr. Miller referred to the North Vallco Master Plan Study and believed this issue before Council affected North Vallco. He raised the issues of housing requirements, green house gas requirements, traffic and the needs of future tenants. Mr. Miller also referred to the General Plan which required housing for ~:ommercial development and believed the key to controlling housing in the city was the office square footage. Mr. Miller suggested several locations that had not been included in the list of key sites for housing. Norm Hackford did not support giving out an increase in office allocations without a plan. June 2, 2009 Cupertino City Council Page 15 Kelly Kline, Redevelopment/Economic L>evelopment Director, commented on the issue of housing in industrial areas and noted that housing cannot be located near certain industries, such as those using chemicals, hazardous materials, etc. She also referred to the current office allocations under discussion and the future diversification of office allocation needs. Michael Foulkes, Apple's Senior Manager for State and Local Government Affairs, noted that Apple had come to the Council in 2008 with their concept of a world-class campus for Apple. Meetings had been held and both Apple and the city had worked together on this concept. Today the critical issue was timing. Apple needed to know what their office allocations were in order to proceed with their plan. If this General Plan amendment was not approved now it could result in a serious delay for the project. Mr. Foulkes stated that Apple worked within the regulations of thc: city and would not prepare a plan based on speculation that a General Plan amendment would later be approved. He also stated that they saw this as a project to complete their world-wide headquarters but not a project that would result in additional housing needs. Senior Planner Vera Gil and Director of Community Development Aarti Shrivastava addressed several issues raised by Council. They noted that this office allocation issue was not a part of the housing element that would be submitted to the State. Council had directed staff in 2008 to review the additional office allocation on a parallel track with the Housing Element update. The city was ;allowed four General Plan amendments a year and this amendment could be included with any General Plan amendments related to the Housing Element as well as to the Heart of the City. Regarding Apple's proposed campus Council referred to several elements such as a gym and cafeteria that were really separate from office spaces. At Council's direction staff agreed to contact ABAG regarding the formation of a new amenities based category. It would be pointed out that such amenities would not increase housing needs. Staff commented on the issue of who would pay for the General Plan amendment. Regarding housing Council asked that the city be proactive when considering the housing needs for the next Housing Element. Staff stated that it would be difficult to determine such future needs but they would contact ABAG for a best guess estimate. Sandoval moved to direct staff to move forward with the project and bring the environmental review back for discussion. in July. Wang seconded for discussion. The motion carried unanimously. UNFINISHED BUSINESS -None NEW BUSINESS -continued 19a. Review summer schedule of Council meetings. (Continued from May 27). This item was continued to June 10. June 2, 2009 Cupertino City Council Page 16 STAFF REPORTS -None COUNCIL REPORTS -None REDEVELOPMENT AGENCY MEETING ROLL CALL A. Approve the minutes from June 17, 2008. Wong moved and Wang seconded to approve the minutes as presented. The motion carried unanimously. B. Review the Cupertino Redevelopment Agency Operating Budget for 2009-10 This item was discussed at 8:35 p.m. concurrently with the public hearing on the City of Cupertino budget. ADJOURNMENT At 2:18 a.m., the joint meeting of the City Coun~~il and Cupertino Redevelopment Agency was adjourned. There is a budget study session scheduled at 4:00 ~~.m. on Wednesday, June 10, 2009, as a special joint meeting of the City Council and Redevelopment Agency. The meeting will be held in the City Council Chambers. There is an additional public hearing on the City Council and Redevelopment Agency budgets scheduled on Tuesday, June 16, 2009 as a part of the regular meeting. .~ Kimberly Smith, ' y Jerk Staff reports, backup materials, and items distrib~.rted at the meeting are available for review at the City Clerk's Office, 777-3223, and also on the Internet at www.cupertino.or,. Click on Online Services, then Watch City Meetings. Most Council meetings are shown live on C~ible Channel 26, and are available at your convenience on the web site: Visit www.cupertir~o.orQ ,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.