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CC 04-15-02CUPEPx INO APPROVED MINUTES CUPERTINO CITY COUNCIL Monday April 15, 2002 CALL TO ORDER At 5:30 p.m. Mayor Lowenthal called the meeting to order in Conference Room A, 10300 Torre Avenue, Cupertino, California. ROLL CALL City Council members present: Mayor Richard Lowenthal, Vice-Mayor Michael Chang, and Council members Sandra James, Patrick Kwok, and Dolly Sandoval. Council members absent: None. Staff present: City Manager David Knapp, City Attorney Charles Kilian, Community Development Director Steve Piasecki, Senior Planner Vera Gil, and City Clerk Kimberly Smith. Housing Commissioners present: Sarah Hathaway-Felt, Richard Abdalah, Richard Schuster, and Francis Seward. Housing Commissioners absent: Julia Abdala. Others present: Jacqueline Fabre with CCS, Erica Mayer with CCS, and Phil Mater with Prometheus. STUDY SESSION 1. Joint study session with the Housing Commission regarding the City's Housing Program. Community Development Director Steve Piasecki said the meeting objectives were to discuss the Below Market Rate (BMR) program and the Public Service Employee Housing program. Senior Planner Vera Gil reviewed a PowerPoint presentation on the Below Market Rate Program. The highlights included: 15% of all new developments must be affordable · Rental targets are very-low and low income households · Ownership targets are median and moderate households · The City contracts with Cupertino Community Services (CCS) to manage the BMR program, which includes screening and placement in the rental units, screening for the ownership units, income monitoring and advertising April 15, 2002 Cupertino City Council Page 2 Oil distributed statistics on occupations and ethnicity for ownership and rental. 39% of the ownership units have gone to public service employees, 83% have gone to Caucasian buyers, 11% Hispanic buyers, and 6% Asian buyers. The rental occupations and ethnicity are more diverse and spread out among more groups. Gil reviewed the amendments to the Housing Mitigation Manual as recommended by the Housing Commission. The major amendments included: · Defined when an in-lieu fee is due and payable · Redefined "Alternate Interior Finishes" · Clarified income qualifications · Clarified that falsification of information may lead to eviction · Clarified that the public service employment must be the applicant's primary wage earning job · Added additional point for Public Service Employee Gil reviewed the Public Service Employee Housing Program. She said that it was decided not to do the Teacher Monthly Mortgage Assistance Program (TMMAP) due to cost and unavailability of funds. She discussed other options including: · The City of San Jose Program, which offers a down payment for teachers and having the interest and principal deferred · The Housing Trust Fund of Santa Clara County, which offers closing cost help and loans for first-time homebuyers · The Teacher/Senior Match Program, which contracts with charities to match seniors with homes with teachers in need of housing Gil concluded by saying that the programs that could currently be used to target public service employees are: · The Housing Trust of Santa Clara County program · Amending the BMR program to give priority to public service employees and modifying the point system to meet objectives · Teacher/Senior Match Program There was a discussion about the ethnic and financial breakdown of people who were on waiting lists versus the percentage of who actually received housing. The discussion continued about the current point system, whether the appropriate population was being targeted, and whether very-low income and low-income categories should be extended to the medium-income category. Mayer, from Cupertino Community Services, commented that medium-income category would be too close to market rate. Mater from Prometheus reviewed his letter. The points included: · The goals of the Housing Mitigation Program are in conflict with the results. He said that there is a disproportionate amount of units toward the low and very low - April 15, 2002 Cupertino City Council Page 3 income range versus the salary range of public service employees. He suggested a new category called low-medium income so more employees could qualify. · Redevelopment of existing residential properties and not having a Below Market Rate (BMR) requirement imposed on the residential units that would be reconstructed to replace the existing units. Mayor Lowenthal agreed with the two recommendations from Prometheus and asked the Housing Commission to consider that when redeveloping, replaced housing units should not count in the Below Market Rate ratio. He also said that salary bands should be adjusted upward so that public service employees will be eligible for Below Market Rate housing. Hathaway-Feit asked for direction about priorities that the Commission should be working on and if there were additional categories to consider. Council further discussed the point system formula, the very-low income and low- income categories, and the possible need for a low-medium income category to allow more public employees to able to qualify for BMR units. Council asked for another meeting to further discuss the housing issue. RECESS Council recessed from 6:50 p.m. to 6:58 p.m. PLEDGE OF ALLEGIANCE At 6:58 p.m. Mayor Lowenthal called the meeting to order in the Council Chambers, 10300 Torre Avenue, Cupertino, California, and led the Pledge of Allegiance. ROLL CALL City Council members present: Mayor Richard Lowenthal, Vice-Mayor Michael Chang, and Council members Sandra James, Patrick Kwok, and Dolly Sandoval. Council members absent: None. Staff present: City Manager David Knapp, Administrative Services Director Carol Atwood, City Attorney Charles Kilian, Community Development Director Steve Piasecki, Parks and Recreation Director Therese Smith, Public Information Officer Rick Kitson, Public Works Director Ralph Qualls, and City Clerk Kimberly Smith. CEREMONIAL MATTERS - PRESENTATIONS 2. Proclamation for Nancy Court Neighborhood Watch. Captain Dennis Bacon, Santa Clara County SherifFs Office, talked about the 20 new neighborhood watch programs and daily updates from the ECAP (Email Community April 15, 2002 Cupertino City Council Page 4 Alert Program) and how Nancy Court Neighborhood Watch helped to catch a suspect and recover large amounts of property. Mayor Lowenthal presented the proclamation to Block Captain Nick Rottler and Watch Coordinator Shirley Kinoshita. POSTPONEMENTS - None WRITTEN COMMUNICATIONS - None ORAL COMMUNICATIONS Diana Wu, representing the Cupertino Library, said April 14-20 was National Library Week and the John Steinbeck Centennial. The volunteer thank-you event would be held on Saturday. Also, the Hsing-Chu City girl of several paintings is on display. She highlighted statistics regarding library circulation and self-checkout machines. Robert Levy, 10802 Wilkinson, commented on several matters. He said that teenagers at a local church were asked about the Teen Commission and that they were not aware of it; he referred to item 17 and asked if every group gets a fee waiver for Quinlan Center; he said the new library still needs a lot of money for construction and noted that $9.3 million in the city treasury came from 2500 water system users in the Monta Vista area; and he said that it had been suggested he and his wife set up a trust for a memorial library and history center because they have a large volume of materials. He noted that many history centers in the area have limited opening times. Teen Commissioner Kenny Lin reminded everyone about the April 27 job faire. Anna Polman-Black, 21118 Gardena Drive, said she attended a meeting on housing and mixed- use development and felt there was too much emphasis on it and that not enough open space would be left. Assistant Scoutmaster Don Powell was present with Troop 494, Kennedy Junior High, and Assistant Scoutmaster Leslie Jeffries was present with Troop 470, Latter Day Saints Church. CONSENT CALENDAR James moved and Chang seconded to approve items 3-19 on the Consent Calendar as recommended, with the exception of 9, 10, 16, and 18, which were pulled for discussion. Vote: Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. 4. 5. 6. Approval of minutes: March 18, 19, and April 1. Accounts Payable: March 29 and April 5, Resolution Nos. 02-061 and 02-062. Payroll: April 12, Resolution No. 02-063. Treasurer's Budget Report - February 2002. April 15, 2002 Cupertino City Council Page Annexation: Make determinations and approve the reorganization of territory designated "Orange Avenue 02-01", property located on the west side of Orange Avenue between Granada Avenue and Hermosa Avenue; approximately 0.219 acre, Lukzadeh, Javanmard, and Asgari (APN 357-16-029). Continued to May 20 at the request of the owner. 8. Authorize fine arts grants for Spring 2002 as recommended by the Fine Arts Commission. 11. Approving final map for the 56-unit Astoria Townhomes project, Resolution No. 02-066. 12. Authorizing execution of amendment to License Agreement with City Center, Resolution No. 02-067. 13. Acceptance of improvements (on-site grading): Chung-Son Chen and Jian-Pyng Chen, 21880 Alcazar Avenue, APN 357-14-035. (No documentation). 14. Approval of first and final Contract Change Order No. 1 for the Pavement Restoration Project No. 2001-02, Resolution No. 02-068. 15. Authorizing execution of agreements with Santa Clara County in conjunction with Stevens Canyon Street Widening: (a) Authorizing purchase of property rights, use of General Fund monies to pay $19,547 to the County of Santa Clara for payments of $1,400 for easements and $18,147 for project management, and authorizing transfer of $19,547 into the Stevens Canyon Road Widening account 270-9430, Resolution No. 02-069 (b) Authorizing execution of Construction & Access Permit, Resolution No. 02-070 17. Approval of request to waive fees from the Toyokawa Sister City Committee for its annual Cherry Blossom Festival at Memorial Park, to be held April 20 and 21, 2002, in the approximate amount of $18,000.00. 19. Revenue and expenditure status report. ITEMS REMOVED FROM THE CONSENT CALENDAR (above) Establishing rules governing recruitment, appointment and reappointment to city advisory bodies, Resolution No. 02-064. Sandoval/Chang moved and seconded to adopt Resolution 02-064 with minor clerical amendments. Vote: Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. 10. Amending Resolution, which established a Cupertino Teen Commission, Resolution No. 02-065. A revised draft resolution was distributed. Sandoval/James moved and seconded to continue this item to the next meeting, and in the interim begin noticing the application April 15, 2002 Cupertino City Council Page 6 period and the qualifications that have already been approved. James, Kwok, Lowenthal, Sandoval. Noes: None. vote: Ayes: Chang, April 15, 2002 Cupertino City Council Page 7 16. Renewal of the Law Enforcement Contract with Santa Clara County for an additional throe years, Resolution No. 02-071. Lowenthal asked for clarification on a potential substation at the Quinlan Community Center. Staff responded that it is a possibility that may be brought back to Council with a feasibility report. Captain Bacon said it would give the Santa Clara SheriWs Office a central location with easy access for the public. Some positions that might be moved are the school resource officers, juvenile probation officer, traffic officers, clerk, and automated fingerprint staff. James/Chang moved and seconded to adopt Resolution 02-071. Vote: Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. 18. Approval of questions in Biennial Community Survey. Kwok/Lowenthal moved and seconded to forward Council's suggested modifications and additions to Godbe & Associates, who were preparing the survey. These included adding category of pedestrian-friendly to #3, asking when town hall meetings should be held and if the interviewee would like to add anything, adding questions about fire services, telecommunications, managing land use, adding the sports center, and questions about ECAP (Email Community Alert Program). PUBLIC HEARINGS 20. Application MCA-2002-01; City of Cupertino; citywide. Amendment to Chapter 19.08 of the Cupertino Municipal Code regarding definition of setback. This item is categorically exempt, and it is recommended for approval. First reading of Ordinance No. 1894: "An Ordinance of the City Council of the City of Cupertino Amending Chapter 19.08 Regarding the Definition of Setback Line." KwokJChang moved and seconded to approve the application. Vote: Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. The City Clerk read the title of the ordinance. James/Kwok moved and seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the first reading thereof. Vote: Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. PLANNING APPLICATIONS - None UNFINISHED BUSINESS - None April 15, 2002 Cupertino City Council Page 8 NEW BUSINESS 21. Review and approval of Cupertino Pedestrian Transportation Plan. Michele Di Robertis, of Wilbur Smith Associates, highlighted the Pedestrian Transportation Plan. This included an introduction and the value of walking; policy framework; existing conditions and collision analysis, needs assessment, and a plan for recommendations and implementation. Public Works Director Qualls noted that the Executive Summary was missing from the copy that was distributed to the Council. Robert Levy, 10802 Wilkinson said the document was excellent but had some errors and controversial items. He suggested it be accepted as a draft document only. He felt the most dangerous route is from the Senior Center to the Post Office. He noted that it would be very expensive to re-establish a student-busing program. David Greenstein, Chairperson of the Bicycle-Pedestrian Advisory Committee, asked for Council approval of the plan, and said these were intended to be guidelines and not an adopted plan. Stuart Chessen, member of the Bicycle-Pedestrian Advisory Committee, said there was a lot of community input at the meetings, and accident rates may be lower in Cupertino than other communities because there were fewer walkers. Chang/James moved to approve the document and to rename it the Cupertino Pedestrian Transportation Guidelines. 22. Petition for reconsideration of the City Council denial of Application 09-U-01, regarding a use permit for the continued use of a shopping center parking lot for car storage at 10071 S. Blaney Avenue (APN 369-03-004). The appeal was filed by the applicant, Gary Schmidt (continued from March 18). All documents and videotapes submitted by Mr. Schmidt were available for review in the City Clerk's Office and were available at the meeting. Community Development Director Piasecki reviewed the staffreport. He said in October of last year the Plaiming Commission denied the request for a use permit to continue to temporarily store cars. He said the staff report contains a review of the arguments given for the request for reconsideration. Piasecki said on January 7 the City Council denied the appeal and upheld the Planning Commission Decision. Now the applicant is requesting reconsideration of the Council's action. He said that the packet contains model resolutions to be used if the Council decides to grant the reconsideration, or denies the request for consideration. He suggested that Council focus on the longer temporary use request and whether it is in the interest of the surrounding property. He noted that the minutes o£the Planning Commission meeting of October 22 outline the initial Planning Commission recommendation that came to council. April 15, 2002 Cupertino City Council Page 9 The City Attorney said that Councilmember Kwok would abstain from participation because he had served on the Planning Commission when this use permit was acted upon. He suggested that, since there has been a voluminous amount of material submitted by this applicant, it may be helpful to focus on the findings listed in items A-F on page 22-8 of the packet. Council should determine whether they agree or disagree with those findings if they decide to adopt a resolution denying the reconsideration. Dell Ausland, the attorney representing the applicant, requested 30 minutes for their presentation, or that this item be continued to another night. The Mayor said this issue has been heard before, the Planning Commission has heard it before, and that he had received tapes at home and a large amount of paperwork. He had also toured the property. He indicated that the applicant would be allowed 15 minutes for his presentation. Gary Schmidt, applicant, asked which Council members had viewed the Planning Commission tape of October 22 in its entirety, and whether that was prior or subsequent to the January 7 meeting, or both. He asked that it be played in its entirety at this time. Lowenthal said Mr. Schmidt had 15 minutes and he could use that time to show the video, but it would not leave any time for Mr. Schmidt to speak. Schmidt requested that Councilmember Kwok not abstain, since it was not necessary and it would put his case at a disadvantage because of a smaller number of voting members. City Attorney Kilian said that Kwok was on the Planning Commission at the time this item originally came up. Kilian felt it would be inappropriate for Kwok to participate now because it would put him in the position of reviewing his own decision. Kwok said he still chose to abstain. Schmidt distributed a package of materials that included two videotapes. One was labeled as "Segments from the City Council meeting of January 7, 2002" and one was labeled "April 1, 2002 Council meeting in entirety." He said they had been on filed with the Clerk and he had asked to have them given to the Council members in advance. He asked that they be included in the official record. Schmidt said the package included older photographs depicting use of back parking lot for parking, and they have been on file with the Clerk for about two months. He said he also appeared before Council two weeks ago to bring materials in advance. The material he was handing out now was an example of materials that didn't get into the packet. He said the other documents are some correspondence written last week and documents that weren't available prior to this time. Schmidt said there are two principle masons to grant his request. The secondary reason is that there is no benefit in denying the project. It has been alleged that cutting off his moderate source of income may cause him to develop it faster, but that is only conjecture. It will have no effect on the timing of the ultimate development of the property. Also, it will not interfere with the goals and objectives of the general or specific plans. The primary reason to grant this request is that the Council does not have the authority to deny this request. April 15, 2002 Cupertino City Council Page 10 He noted that the neighboring businesses either signed a petition supporting his request for extension or had no objection to it. Schmidt said the most important mason to grant his request is that the Council has no power, authority or mandate to deny this application. He referred to the zoning code, which specifies the adverse impacts that would allow Council to deny the use permit, but those are the only standards defined. He said his proposed use is innocuous. He said there have been substantial false statements made in submittals by the city attorney. Schmidt also said there is a reference to the requirement of a fence, but that was not required in any granted use permit, nor any request for one. A fence has been there for about 15 years with capacity to lock it off. Also there is a reference that I have applied for a use to store cars, which is false. His application has been to park cars. It is also untrue that the Honda dealership is no longer undergoing remodeling. Schmidt talked about his personal and business experience in the community. He said it is his highest priority to get this property developed. He plans to submit a modification of the existing use permit to change from office to residential. He owned 50% of the Blaney Center and is in the process of purchasing the remaining 50% in order to move forward with best possible development or redevelopment. The area is ripe for development but ground will probably not be broken for 18 months to 2 years. If it happens before that, it will only be on the rear lot, and the city will lose the opportunity for the two parcels to redevelop together. Schmidt asked for 2 years additional for the use permit for parking cars, with review by the City Council or Planning Commission every six months. He hoped to complete the purchase of the Blaney Center within the first six months, and would at least submit plans to modify the existing permit from office to residential. He would commit to a status report once a month, and would agree to put up a green net screening in one section or all areas that don't have a wall. He said he has already begun to put in temporary landscaping and would work with the city in any manner to soften the area with additional landscaping. He would agree to a condition requiring him to pay $4,000 to help landscape areas in the city's rights-of-way that are devoid of trees, or it could be used for a pedestrian-friendly project by the Bicycle-Pedestrian Advisory Committee. He asked that the Cupertino Pedestrian Transportation Guidelines discussed in item 21 of this agenda be placed on the record for his item. Sandoval asked for clarification on his escrow. Schmidt explained the property ownership of the 3 parcels and said he hopes to sell his share of Hama Sushi to buy out the rest of the Blaney center. He already controls the back lot. The Hama Sushi escrow was originally to close on March 31, but they need more time to seek financing. Kilian asked if the blue line on the projected map encompassed more than one parcel. Schmidt said the property line runs across the blue line and said that portions of more than one parcel are within the blue line. Kilian confirmed that the original application in 1999 by Cali-Land encompassed parts of all 3 parcels as described by the blue line. He asked if Schmidt's application for extension of the use permit covered only parcel 004 as described by the APN, which is much less area than shown within the blue line. Schmidt said it was at the city's discretion, and he would accept that. Kilian said if the Council April 15, 2002 Cupertino City Council Page 11 approved the request he would probably have to move some fences to surround only the parcel specified in the use permit. Schmidt said that would be acceptable. Kilian said that since Mr. Schmidt doesn't control the other two parcels he couldn't ask for an extension of the use permit on those portions of parcels. Chang asked that the City Attorney comment on the information provided tonight. Kilian said he did not think anything was presented which was new to Council. Schmidt's new information given at the last meeting was addressed in a separate letter by Kilian, but it was not really relevant. Kilian asked that the Council to review page 22-8, A-F, which are the findings that the Council made informally the last time they heard this item. If one or more of those findings are different, or incorrect, or not supported by evidence, then they should be changed. If the Council was satisfied with the findings, then that would support a decision to deny the reconsideration. Kilian said Council may choose not to deny the use, but in that case it becomes more of a permanent use and should be sent back to the Planning Commission for development of conditions regarding landscaping, etc. Chang asked for clarification of the terms storage and parking. Kilian said that parking is an adjunct to a separate use such as a commercial area. Storage would be a place to keep cars that will be relocated to another destination. Piasecki said the concept of parking is related to an adjoining business. It normally would be paved, and would have extensive landscaping and pedestrian connections instead of being just a fenced yard. Sandoval asked about finding F, and asked who would notice that this is a detrimental environment. Piasecki said it creates a void in the system of commercial and other properties in this section. The treatment of this property has not been consistent with others in the area, and if it is allowed here, why not in other properties along Stevens Creek Boulevard. He said his concern was with other commercial properties that have deep back lots, such as the Adobe Hotel. If other property owners begin storing vehicles too, it does not allow redevelopment of the area to occur. James said she was ready to deny the petition. This temporary use has gone on since 1999, and it sets a bad precedent. Chang acknowledged the applicant's effort and passion. He said he was on Council when this was approved the first time. Council actually debated it, but decided to try to work with the applicant, but then it stretched out from 6 months to more than one year. He felt it was creating an inequitable situation for other property owners. Sandoval commended the applicant on his tenacity, but said she had not seen any new arguments. Her concern was with the length of time this temporary use has gone on. - Lowenthal did not think this qualifies as a temporary use and it sets a bad precedent. .April 15, 2002 Cupertino City Council Page 12 James/Chang moved and seconded to deny the petition and uphold the denial of use permit 09-U-1. Vote: Ayes: Chang, James, Lowenthal, Sandoval. Noes: None. Abstentions: Kwok. Jmes/Chang moved and seconded to adopt the model resolution denying the petition as shown on page 22-7 including findings A-F, as well as the attachment which deals with technical issues raised by Mr. Schmidt. Vote: Ayes: Chang, James, Lowenthal, Sandoval. Noes: None. Abstentions: Kwok. The findings are as follows: The conditional use is not in conformance with the City's long-term land use plan for the Stevens Creek Heart of the City area as "a community focal point that expresses the character of Cupertino through a diversity of uses, serving City residents and scaled for pedestrians." General Plan Policy 2-2. The conditional use was originally intended to be a temporary use. The continuation of this conditional use, which has now been extended for three years, has created an inequity, since similar requests for outdoor storage by other landowners are discouraged as incompatible with the surrounding commercial and residential sites. The original use permit was issued for a temporary purpose, which no longer exists. While proposing to be an extension of the existing permit, this application has a changed purpose, so that the applicant can complete plans for the development of the property. However, he does not have control of the property to develop it. What began as a six- month temporary use has evolved into a long- term use. As such, the improvements on the property do not meet the requirements of the Municipal Code for the specified use. A 1988 development agreement on this property has only been completed through Phase 1. Phase 2 has not yet been built. Continuation of the commercial business of vehicle storage as an alternative use on this property discourages its redevelopment, which does not further the City's goals for the Heart of the City Specific Plan. The use of property along Stevens Creek Blvd. for vehicle storage has a detrimental affect on the adjoining properties in that fencing off large parcels of property in the Heart of the City area for a restricted passive use interferes with the continuity and the general ambiance of the area. At 9:37 p.m. James was absent. ORDINANCES - None STAFF REPORTS - None April 15, 2002 Cupertino City Council Page 13 COUNCIL REPORTS Council members highlighted the activities of their committees and various community events. CLOSED SESSION - None ADJOURNMENT At 9:48 p.m. the meeting was adjourned to a Community Congress on May 3 at 3:00 p.m. at the De Anza College Hinson Center. 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. Televised Council meetings may be viewed live on Cable Channel 26, and may also be viewed live or on demand at www.cupertino.om. Videotapes of the televised meetings are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364. The study session on the City's Housing Program was not televised.