CC 05-02-06
CUPEI{fINO
APPROVED MINUTES
CUPERTINO CITY COUNCIL
Special Meeting
Tuesday, May 2, 2006
ROLL CALL
At 5:00 p.m. Mayor Richard Lowenthal called the meeting to order in the Council Chambers,
10350 Torre Avenue, Cupertino, California.
Present: Mayor Richard Lowenthal, Vice-Mayor Kris Wang, and Council members Patrick
Kwok, Orrin Mahoney, and Dolly Sandoval. Absent: none.
PUBLIC COMMENTS REGARDING CLOSED SESSION
CLOSED SESSION
At 5:02 p.m. the Council went into closed session in the Community Hall kitchen, 10350 Torre
A venue, Cupertino.
1. Significant exposure to litigation - Government Code Section 54956.9(b )(1), potential
litigation of Toll Brothers vs. the Citv ofCuoertino, and Valleo vs. the Citv ofCuoertino
regarding the referenda process.
At 5:40 p.m. Council reconvened in open session. The City Attorney announced that the
Council had met in closed session and had decided that, with respect to any and all
litigation that may result from the referenda against the Valleo and Toll Brothers
ordinances, the City Council and City Clerk would take a neutral position with respect to
all such litigation.
RECESS - from 5:40 p.m. to 6:00 p.m.
STUDY SESSION
2. Conduct a study session on the Fiscal Strategic Plan.
Administrative Services Director Carol Atwood referred to the Fiscal Strategic Plan
Issues Paper dated May 2, 2006. The goal was to combine reliable revenue sources with
stabilized costs. The problem was that the current revenue structure could not fund the
projected needs and several revenues were at risk or might be eliminated. The revenue
solutions included the following: pursue Tax Equity Allocation (TEA) relief with Santa
Clara County; re-assess park dedication fees on a continual basis; negotiate with Hansen
regarding future land use rights in exchange for annexation; support economic
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Cupertino City Council
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development; float an entertainment tax on 11/06 ballot; phase out the park dedication
payback over the next 5 years; modify Utility User Tax for cell phones in 11/06; consider
assessing a sales tax in-lieu fee; revisit a County Communications fee; and consider a
refuse vehicle impact fee. The expenditure and risk exposure solutions included in part
the following: automate and streamline service delivery; contract school maintenance;
increase block leaders, CERT and neighborhood watch; change Enterprise Fund
accounting; possible establishment of a retiree medical trust fund; and shift/share
sidewalk liability and street tree maintenance.
Council thanked Ms. Atwood for her report and provided the following direction to staff:
work with legislative committee on issues affecting the city such as the Tax Equity
Allocation and get the residents involved; pursue an entertainment tax and possible TOT
increase for November ballot; pursue Utility User Tax for cell phones on the November
ballot; provide election cost information on 11/06 potential ballot issues; get information
on a possible County Communications fee to businesses for their input; involve the
Chamber of Commerce; pursue negotiations with Hansen; phase out park dedication
payback over the next 5 years; review the benefit of a one-year sales tax in-lieu fee as
opposed to a tax continuing over several years; set a low priority for a refuse vehicle
impact fee; do not pursue the sidewalk and street tree liability issue at this time; and bring
back for discussion the elimination of medical/retiree benefits for Council. It was further
agreed that Ms. Atwood would provide Council with a timeframe for implementation of
these options with special emphasis on time sensitive issues. This information would be
available for the budget study session on May 31. Input from the City Attorney would
also be provided.
PLEDGE OF ALLEGIANCE
At 7:33 p.m. Mayor Richard Lowenthal called the meeting to order in the Council Chambers,
10350 Torre Avenue, Cupertino, California, and led the Pledge of Allegiance.
Present: Mayor Richard Lowenthal, Vice-Mayor Kris Wang, and Council members Patrick
Kwok, Orrin Mahoney, and Dolly Sandoval. Absent: none.
CEREMONIAL MATTERS - PRESENTATIONS
3. Proclamation regarding affordable housing.
Mayor Lowenthal presented a proclamation to Kathy Robinson of Catholic Charities
stating May 13-20 as Affordable Housing Week in Cupertino. Ms. Robinson thanked the
Council for their support and invited the public to attend an educational forum regarding
affordable housing on Tuesday, May 16 at Creekside Park from 6:00 p.m. to 8:00 p.m.
4. Proclamation for the National Alliance on Mentallllness.
Under "Postponements", this item was removed from the agenda because staff had not
yet received the information needed to prepare the proclamation.
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POSTPONEMENTS
WanglKwok moved and seconded to continue item No. 17 to July 18. The motion carried
unanimously.
Mahoney/Kwok moved and seconded to remove item No.4 from the agenda. The motion
carried unanimously.
Mahoney/Wang moved and seconded to continue item No. 11 to May 16. The motion carried
unanimously.
WRITTEN COMMUNICATIONS
Letter from J. 1. Julias regarding item No. 12, objecting to the $45 fee for on-street parking on
her street. .
ORAL COMMUNICATIONS
Jennifer Griffin commented on the issue of sidewalk and street tree maintenance. She believed it
would be a step backwards if the city did not continue to maintain the city sidewalks and the
street trees. If they did not, there would be opportunities for the residents to remove the trees or
not maintain them properly. In addition she recommended that street trees be fenced during
construction.
Robert Levy stated that he would be happy to take ownership of the sidewalk and street in front
of his house. He did not think the city was maintaining it as well as it once did. Mr. Levy also
commented on the cost of dealing with the San Jose Water Company and the issue of what was
affordable housing.
MaIjan Kashvad referred to the activities at the Blue Pheasant. She noted that at a recent
homeowners' meeting held at the Blue Pheasant the owner had commented that he was
considering asking for approval to stay open until midnight on Thursday, Friday and Saturday
nights. He said he was required to close at 11 :00 p.m. and this was negatively affecting his
business. The homeowners' group was concerned about this as they thought this issue had been
resolved. Ms. Kashvad stated that even now activities continued after 11 :00 p.m. because the
requirement was that no one could be admitted after II :00 p.m. but those already there could
stay an hour or so later. She also questioned what the noticing process to the neighbors would be
if this request did come back to Council.
City Attorney Chuck Kilian stated that no such request from the Blue Pheasant had been
received but when and if it did the regular notification process would be followed. This would
include notifying the neighbors of public hearings held by the Planning Commission and, if
appealed, by the City Council.
CONSENT CALENDAR
SandovallKwok moved and seconded to approve the items on the Consent Calendar as
recommended. Ayes: Kwok, Lowenthal, Mahoney, Sandoval, and Wang. Noes: None.
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5. Approve the minutes from the March 21 and 22 City Council meetings.
6. Adopt resolutions accepting Accounts Pavable for April 14 and 21, Resolution Nos. 06-
077 and 06-078.
7. Adopt a resolution accepting PaVfoll for April 21, Resolution No. 06-079.
8. Adopt a resolution approving the destruction of records (City Clerk, Human Resources,
City Manager/Public Information Office), Resolution No. 06-080.
9. Adopt a resolution declaring brush growing on certain described properties to be a public
nuisance and setting a hearing for June 6 for objections to proposed removal, Resolution
No. 06-081.
10. Approve an application for an Aleoholic Beverage License for Mothers Tofu House,
7335 Bollinger Road (cross street S. De Anza Blvd.).
ITEMS REMOVED FROM THE CONSENT CALENDAR
PUBLIC HEARINGS
UNFINISHED BUSINESS
11. Request from the Cupertino Union School District (CUSD) to amend the eligibility
requirements for the Below Market Rate (BMR) program to give CUSD teachers a point
for working within the City of Cupertino limits, regardless of the city they are working
in, as long as they are employed by CUSD. (Continued from April 4).
Mahoney/Wang moved and seconded to continue this item to the May 16 meeting. The
motion carried unanimously.
12. Consider amending the 2006-07 fee schedule to set oermit parking fees for the 2006-07
fee schedule, Resolution No. 06-082. (Continued from April 4).
Administrative Services Director Carol Atwood reported that residents had been given
the opportunity to get permit parking to address certain parking issues such as living near
a school. This permit had been given at no charge until two years ago. At that time it
had been decided to charge $45 for a two-year permit to cover the city's costs of
processing, issuing, monitoring and printing the permits. Residents were not notified of
this new charge. Currently 539 houses had permits; 319 had paid the $45 and 220 had
not. Staff recommended that the Council stay with the two-year permit currently in place
and then look at the whole issue of the permit parking process.
Council received a letter from J. 1. Julias, objecting to the $45 fee for on-street parking on
her street.
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Cupertino City Council
Page 5
Bruce Smith commented that getting a permit to park in front of one's house was not a
privilege. It was a method of dealing with a nuisance such as overflow parking from
nearby schools. There was also no mechanism for enforcement. He urged Council to
look for solutions that would take care of all the city's residents.
Louise Levy concurred with Mr. Smith's comments. Permit parking was not a privilege
and they should not have to pay for it.
Robert Levy believed the problem was not only Council's but also the School Board's.
Cupertino's schools had been impacted by additional students from other cities. This
negative impact on certain neighborhoods had resulted in residents not being able to get
certain services such as garbage pickup.
Michael Jordon recommended that the entire issue of permit parking be reevaluated. In
his neighborhood residents had not been able to get basic city services because of the
parking issue and it was a major hassle to get extra passes when one was having
company.
Council discussed the following issues: importance of notifying residents of such fees;
question of refunding monies already paid - too costly?; continued need for parking
fees?; continuance of parking permit areas?; allowing anyone who wanted a permit to get
one for one year at $22.50; and emphasis that schools should provide off-site parking.
Mahoney/Sandoval moved and seconded to set a one-year permit parking fee (for 2006-
2007) in the amount of $22.50, with the expectation that the permit parking fee will then
be eliminated by 7/30/07.
Mayor Lowenthal issued a minute order directing staff to place an item on the agenda
after the 2006-07 budget was adopted but before the end of the year 2006 to consider
placing a sunset clause on preferential parking zones.
NEW BUSINESS
13. Consider an appeal by John McMorrow of the City Manager's Determination regarding
site access for the Silverstone proiect on De Anza Blvd., Application No. U-2002-6,
Cupertino Town Center, located southeast of the intersection of De Anza Blvd. and
Rodrigues.
Public Works Director Ralph Qualls presented background on the appeal before Council
for site access to the Town Center project. The issue of the appeal was the Public Works
Director's determination that a left turn median break not be allowed for the South
Driveway of the Silverstone Retail Project on DeAnza Blvd. The developer filed an
appeal of this decision and was asking that a left median break be allowed. In 5/03
application for this project was received and in 12/04 the determination was made
concerning the left turn median break. The developer was advised of this decision and
was also given the option to extend, at his expense, to the left turn pocket at McClellan
for southbound traffic on DeAnza Blvd. to expedite u-turns by vehicles accessing the
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retail site from the northbound lanes. The developer did not pursue this option stating that
the cost would be prohibitive. Construction permits for the project were issued and
offsite plans were approved in 8/05 with no median break or signal at DeAnza Blvd. The
project was currently under construction.
John McMorrow, Silverstone Communities, stated that their goal was to create a vibrant,
exciting destination retail center that would be pedestrian friendly and would attract
excellent tenants. Along DeAnza there was about 8,000 square feet of retail space but on
the side street there was no visibility and they needed a strong anchor to lease in this
location. To get this strong anchor they needed access off DeAnza. Mr. McMorrow
commented on the following three statements regarding his appeal: 1) The left turn
pocket from DeAnza was critical to the success of the retail leasing effort and for the
viability of retail along Town Center Lane; 2) The left turn pocket from DeAnza into the
project was a better traffic alternative for Pacific Avenue; and 3) There were at least nine
other left turn pockets along DeAnza south of 280 into "private" driveways so this would
not establish any precedent. He commented that the traffic consultant had stated such
access off DeAnza would be safe and he urged Council to grant their appeal.
Public Works Director Ralph Qualls made the following comments in response to the
points raised by Mr. McMorrow: 1) There were approximately 200 similar retail tenants/
businesses along DeAnza from Homestead to Route 85 that did not have any median
break providing a left turn into their respective driveways; 2) There was no appreciable
improvement at the Pacifica intersection with or without a median break; and 3) There
were only two left turn pockets into private properties on DeAnza Blvd. (Home Depot
and Ventana Housing) and both were in San Jose. All other median breaks were at the
intersections of public streets and all but one were fully signalized intersections. There
were no signalized intersections and no left turn median breaks at private driveways on
DeAnza Blvd. (Homestead to Route 85).
Public Works Director Ralph Qualls listed the following as the basis for denial of this
appeal: 1) median break left turn at South Driveway would create potential vehicular
conflicts and could result in preventable accidents; 2) no condition was included in the
original entitlement approval allowing a median break or the signal; 3) no proof or
history to support claim that a median break determined success of the retail leasing
program; 4) about 200 businesses/retail tenants were operating on DeAnza without
median break left turns; and 5) no precedent in Cupertino for a median break on DeAnza
Blvd. for a private driveway - would set a bad precedent as proposed. Staffs
recommendation was for denial of this appeal. Mr. Qualls did note that an option might
be available for Council's consideration. For the sake of economic development, if the
developer was able to reach agreement with a major tenant and a condition of that
agreement was the installation, at the tenant's expense, of a signalized southbound left
turn into the south drive, staff would consider this a workable solution.
Council discussed the following issues regarding the appeal before them: retail viability
with or without the left turn median break; the safety factor; the precedent setting of such
an access; not enough economic basis to support a traffic signal at this time; was there a
way to determine economic development ahead of time which would provide a good
enough rationale for a traffic signal; not enough convincing arguments that a left turn
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median break was needed by tenant; a signalized intersection would be safe and would
ensure the success of new retail; a signal would be paid for by the tenant now but at a
later date might have to be paid for by the city; not a tenant issue but a land use issue; car
safety issue vs. bicycle/pedestrian safety issue; giving the developer the opportunity to
pay for a signal to attract a big name tenant not giving the developer a traffic signal; and
not precedent setting as most developers would not spend the money to do this major
improvement.
Wang moved to deny the appeal and uphold the determination of the City Manager.
Kwok seconded for purposes of discussion. The motion failed, with Council members
Kwok, Lowenthal, Mahoney, and Sandoval voting no.
Mahoney/Sandoval moved and seconded to approve a signalized southbound left-turn
into the south drive, subject to review and approval by the Public Works Director's
review of the plans. The motion carried with Council member Wang voting no.
Council specified in the discussion that in granting approval of this unique and particular
feature on De Anza Boulevard that it was not setting a precedent for future development
to be assured of a similar feature in conjunction with a particular project. In upholding the
appeal, Council made clear its expectation of a high quality retail tenant being placed in
this location.
14. Adopt resolutions approving agreements for Countywide household hazardous waste
services:
a) AB 939 Implementation Fee, Resolution No. 06-083
b) Hazardous Waste Collection Program, Resolution No. 06-084
Kwok/Sandoval moved and seconded to adopt Resolution Nos. 06-083 and 06-084. The
motion carried unanimously.
15. Consider setting a study session on Mav 31 at 4:00 p.m. to discuss the City budget.
Council agreed to schedule the budget study session at 4:00 p.m. on May 31. This
meeting will end no later than 9:00 p.m.
16. Consider canceling a meeting in August to accommodate family vacation schedules
Council agreed to cancel the meeting of August I, 2006.
ORDINANCES
17. Conduct the second reading of Ordinance No. 1976: "An Ordinance of the City Council
of the City of Cupertino Modifying a Development Agreement (I-DA-90) to Encompass
the Development Proposed in U-2005-16, ASA-2005-11, Z-2005-05 and TR-2005-04 for
a 137 Unit, Two- and Three- Story Residential Condominium Development at 10123 N.
Wolfe Road." (Valleo). (This item is recommended for continuance to May 16).
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Under "Postponements" the City Attorney suggested that this item be continued for at
least 60 days as it is currently the subject of a referendum.
WanglKwok moved and seconded to continue item No. 17 to July 18. The motion
carried unanimously.
STAFF REPORTS
COUNCIL REPORTS
Council members highlighted the activities of their committees and various community events.
ADJOURNMENT
At 11:12 p.m. the meeting was adjourned to Tuesday, Mav 16 at 5:00 p.m. for Parks and
Recreation Commission interviews, City Hall Conference Room A, 10300 Torre Avenue,
Cupertino.
For more information: 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.cuoertino.org.Click on Agendas & Minutes/ City Council/ Packets.
Most Council meetings are shown live on Cable Channel 26, and are available at your
convenience from our web site. Visit www.cupertino.org and click on Watch Meetings.
Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City
Channel,777-2364.