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CC 07-17-95 CC-905 MINUTES Cupertino City Council Regular Meeting July 17, 1995 PLEDGE OF ALLEGIANCE At 6:45 p.m., Dean called the meeting to order and led the Pledge of Allegiance. PLEDGE OF ALLEGIANCE ROLL CALL Council members present: John Bautista, Don Bumctt, Barbara Koppel, Lauralee Sorensen and Wally Dean. Council members absent: None. Staff present: City Manager Don Brown; City Clerk Kimberly Smith; Admini.-tr~ttive Services Director Carol Atwood; Community Development Director Bob Cowan; City Attorney Charles Kilien; Parks and Recreation Director Steve Dowling; Public Information Officer Donna Krey; Public Works Director Bert Viskovich; and Planner II Veto Gil. POSTPONEMENTS Item Nos. 19, 20, and 34 were postponed because they were associated with an agreement with the Operating Engineers Union Local No. 3 which had not yet been ratified. ORAL COMMUNICATIONS Fire Chief Doug Sporleder repoiVA on a fire that had taken place on Greenwood Street on July 16 which destroyed or damaged several apartment buildings. He said that 17 residents were displaced. One resident received minor bums and four firefighters received minor injuries. The 4-alarm fire called in 79 firefighting personnel. Mayor Dean thanked the Central Fire District on behalf of the citizens they had helped. CONSENT CALENDAR Koppel moved to approve the Consent Calendar as recommended, with the exception of item Nos. 19 and 20, which were postponed. Sorensen seconded and the motion carried 5-0. 1. Resolution No. 9371: Accounts Payable, June 16, 1995. 2. Resolution No. 9372: Accounts Payable, June 23, 1995. 3. Resolution No. 9373: Accounts Payable, June 29, 1995. .lUly 17, 199~ Cupert/no City Council Page 2 4. Resolution No. 9374: Accounts Payable, June 30, 1995, 5. Resolution No. 9375: Payroll, June 16, 1995. 6. Resolution No. 9376: Payroll, June 30, 1995. 7. Approval of minutes ofthe regular meeting of June 19, 1995. 8. Resolution No. 9377: Accepting Quitclaim Deed and Authorization for Underground Water Rights, Kamran Yazdanbakhsh; APN 326-39-015; 21931 Oaknoll Court. 9. Resolution No. 9378: Approving Contract Change Order Nol 20 for Cupertino Nine School Site Improvements, Project 93-9106. 10. Resolution No. 9379: Accepting Grant of Easement for Roadway Purposes, The Roman Catholic Welfare Corporation of San Jose, a California Non Profit Religious Corporation, APN 316-26-91, De Anza Boulevard. 11. Resolution No. 9380: Accepting Grant of Easement for Sidewalk, The Roman Catholic Welfare Corporation of San Jose, a California Non Profit Religious Corporation, APN 316-26-91, De Anza Boulevard. 12. Resolution No. 9381: Accepting a Giant of Easement for Roadway Purposes, The Roman Catholic Bishop of San Jose, a California Corporation; APN 316-26-87, De Anza Boulevard. 13. Resolution No. 9382: Accepting a Grant of Easement for Sidewalk, The Roman Catholic Bishop of San Jose, a California Corporation; APN 316-26-87, De Anza Boulevard. 14. Resolution No. 9383: Accepting Quitclaim Deed and Authorization for Underground Water Rights, Kyu Hyun Choi and Geu Bae Choi, APN 357-02-012; 10387 Scenic Boulevard. 15. Resolution No. 9384: Authorizing Execution of First Amendment to Agency Agreement for Countywide Household Hazardous Waste Collection Program. 16. Resolution No. 9385: Declaring Intention to Order Vacation of a Portion of Caimen Road, Located North of the Cul-De-Sac; Retaining Ingress and Egress Easement and Public Utility Easement, Fixing Time and Place for Public Hearing and Providing for Notice Thereof. ~ 17. Resolution No. 9386: Setting public hearing for August ?, 1995 to consider cancellation of Williamson Act Contract No. 71-907; Otis F. and Muriel N. Forge, APN 323-36-020, 20691 Homestead Road. Suly 17, 1995 Cupergno City Council Page 3 l g. Resolution No. 9387: Adopting a Memorandum of Understanding between the City · of Cupertino and the Cupertino Employees' Association. 19. Resolution No. 9388: Amending the rules on the conditions of employment. (~stponed) 20. Resolution No. 9389: Fixing the employer's contribution under thc Meyer-G-eddcs State Employees Medical and Hospital Care Act. (postponed) 21. Request from Cupertino Girls Soccer Club for waiver of use fees for a fund raising event at the Senior Center. 22. Review of application for Alcoholic Beverage and Control License, Ultimate Slice Delicatessen, 7335 Bollinger Road, #1, Cupertino, California. 23. Request for waiver of overhead charges for parade fees for the Tournament of Bands. Vote Members of the City Council AYES: Bantista, Bumett, Dean, Koppel, and Sorensen. NOES: None ABSENT: None ABSTAIN: None PUBLIC HEARINGS 24. Consideration of a report on delinquent garbage service charges from Los Altos Garbage Company; and placing liens on properties described in the report to cover the delinquent charges and adminislrative costs. (a) Resolution No. 9391: Approving property lien for delinquent garbage charges. The Administrative Services Director distributed an updated list of delinquent accounts and reviewed the staff report. Mayor Dean opened the public hearing. Mr. Miladin Malisic said that his property on 10721B Santa Lucia Road had been vacant from August through November of 1993. The Administrative Services Director said that the fees could be waived if Mr. Malisic could document that the property was vacant. Mayor Dean asked Mr. Malisic to meet with staff to produce the appropriate documentation. Sorensen moved to approve Resolution No. 9391. Koppel seconded and the motion carried 5-0. Sorensen amended her motion to indicate that Mr. Malisic's name would remain on the list of delinquent charges until he was able to successfully document Su/y 17, 199~ Cupergno City Council Page 4 the property had been vacant. If that was done before the deadline in August, his name would be renaoved. Koppel seconded the amendment end the motion carried 0. 25. Application 81,165 and 23-EA-95, City of Cupertino, Citywide - Amendment to various sections of Chapter 19.56, General Commercial Zones, of the Cupertino Municipal Code. Environmental Determination: The Planning Commission recommends the granting of a negative declaration. Recommended for approval. (Continued from meeting of June 5, 1995.) (a) First reading of Ordinance 1687: "An Ordinance of the City Council of the City of Cupertino Amending Chapter 19.56, General Commercial Zones, of the Cupertino Municipal Code." The Community Development Director reviewed the staff report and highlighted the proposed changes that were typed in boxes throughout the text. Proposed change C, Permitted Uses: Koppel preferred the provision of 25% office space because it would give more flexibility. Sorensen and Bautista agreed. Proposed change F, Dry cleaning: Sorensen said she had researched dry cleaning establishments and felt this change would over-regulate them since there are already two agencies which do so. Bumett said there are features of design, such as venting or door location, which could affect the neighbors so they should be informed about how it is regulated. Koppel preferred that this provision be kept n the "permitted use" section. Proposed change 25, Conditional Uses: Burner agreed with the change because contracting services could be very disruptive. Bautista agreed with the solution. Excluded uses and the definition of wholesale: The Council members discussed wholesale and retail sales. The City Manager said that the location where the final sales transaction occurs will ultimately receive the sales tax dollars. A use tax of 1% of the wholesale value would be paid to Cupertino if the product is manufactured here and then put to use in this city. Bautista said the issue had not been whether it was wholesale, but whether it was a direct purchase or a computer on-line purchase. The final test should be if it will generate sales tax dollars. The City Manager agreed that would be a solution. Proposed change 19.56.070, Land Use Activity: Council concurred to remove the words "and must use non-powered equipment" from paragraph E. Proposed change 19.56.090, Interpretation By Planning Director: Discussion followed regarding CURB's suggestion that citizens be notified of pending discussion regarding the director's interpretations. The City Manager said that if the wording in Suly 17, 1995 Cupert/no City Council Page $ the boxed text is what is desired, then the underlined text in paragraph 19.56.090 needs to be changed. Mayor Dean opened the public hearing. Mr. Dick Carey, 10138 Barbara Lane, said that he was representing Cupertinians Urging Restraint in Building (CURB). He said that they had attended the June 22 Planning Commission meeting and were impressed by the thorough analysis. Council had already discussed one of their concerns on permitted uses. CURB suggests a specific notice regarding laundry and dry cleaning services, explaining what agencies do regulate those businesses. Regarding 19.56.07, he said that CURB would prefer a setback 1-1/2 times of the building height with a minimum setback of 20 feet and that landscaping should be maintained in perpetuity and dead plants ~placed. Mr. John Statton, representing the Cupertino Chamber of Commerce, said that the Chamber supports the 25% office space and agrees that dry cleaning services are already highly regulated and they don't want to raise false fears in the community. He said they would agree to proposed change 25 about contracting businesses needing use permits. He said the Chamber supports that requirement generally, but would prefer that those businesses are treated as all other businesses. He asked that special consideration be given to The Plumbing Bank and Cupertino Plumbing by waiving their use permit fee of $1200, since they have expended thousands of dollars in legal "-- fees and hundreds of hours. Dean said that he had spoken to the owner of The Plumbing Bank and they have agreed to build a wall to suit the neighbors at a cost of $50,000 and $80,000. He asked if Council should impose a fix on all businesses from now on, even though this situation which triggered it has already been resolved. Burner said if this new ordinance had been in place, the problem would not have occurred. Dean noted that the new code would only require an eight-foot fence which would not have addressed the problem. Bautista said he felt the recommended change was acceptable. Koppel commented on the height of the fence which will be built to 14 feet and asked if it would be safe in an earthq-ake or whether it would block out the homeowners' sunlight. Burnett said he had talked to the Adrian family and they feel it won't block out any more sunlight than the existing building already does. Dean added that the adjoining neighbors must also agree to this wall. A straw vote was taken regarding the proposed changes as follows: · Accepted Proposed change C, 4-1 with Burner voting no. · Accepted Proposed change F, 4-1 with Burner voting no. · Accepted Proposed change 25 unanimously. Council members agreed to waive the use permit fee for The Plumbing Bank and Cupertino Plumbing. Ju/y 17, 1995 Cupert/no City Council Page 6 Accepted Proposed change 19.56.050 unanimously. Accepted Proposed change 19.56.050b unanimously with provision that the test is if it can generate sales tax or revenue to the city. · Rejected Proposed change 19.56.060, notification of property owners when requests for minor modifications are diverted to the Planning Commission. Burnett voted no because he felt the adjoining property owners should be notified. · Proposed change 19.56.070.1e, Council members unanimously agreed to remove the phrase "and must use non-powered equipment". Proposed change to Section 19.56.070.d2, Council members unanimously agreed to change the wording so that setbacks shall be the greater of 1-1/2 times the height. · Proposed chaage 19.56.090, interpretation by the Planning Director, Council members nnonimonsly agreed to change the word "persons aggrieved" to "applicaat aggrieved". Sorensen moved to grant a negative declaration. Bumett seconded and the motion carrie! 5-0. Sorensen moved to approve the application as modified by the City Council's straw votes. Koppel seconded and the motion carried 5-0. The City Clerk read the title of the ordimmc~. Sorensen moved and Koppel s~onded to read the ordinance by title only; and that the City Clerk's reading would constitute the first reading tbemof. Motion carried 5-0. PLANNING APPLICATIONS 26. Applications 8-U-95 and 15-EA-95 - Byer Properties - Use permit to demolish two existing buildings and construct a 22,000 sq. fi food market and a 4,000 sq. R. restaurant. The property is lecated at 20558 and 20900 Stevens Creek Boulevard. The Planning Commission r~ommends the granting of a negative declaration. R~ommended for approval. The Community Development Dir~tor reviewed the staff report and distributed a proposed condition of approval for the str~tscape. This comlifion would delay the decision regarding the trees and whedaer they would be placed in single or double Mr. Alex Byer, the applicant, highlighted the project and said that they had met with the neighbors to address their concern. They are happy to keep Whole Foods and Fontana's doing business in Cupertino. My I?, IO0:~ Le~upert~lo City Council Page 7 Mr. John Fry, project manger for Whole Foods, showed a model of the market and explained the placement of the entrance awnings, trellises and the outdoor eating areas, and covered delivery area. Koppel said she preferred the two awnings on the front of the building as recommended by staff. Mr. Fry explained that such a change would shut out the light which comes into the market. Mr. Mike Cord, project architect for Fontana's, reviewed the elevations for the proposed building. Dean said that he did not like the design. Sorerisen requested a model and Koppel agreed. Bautista said more continuity was needed. Dean said that there is nothing in the city's architecture that this building would blend in with. Bautista said they do both have masonry and trellises. Mr. Byer said that he was willing to work on some architectural changes, but they were under some serious time deadlines. Mr. Dick Carey said that he lived at the comer about 50 yards away. He appreciated being notified of this project and the neighborhood is happy to have the old post office replaced. Mr. John Statton, representing the Cupertino Chamber of Commerce, said that they supported the project and urged that the Council expedite the process. He suggested a subcommittee of staff and City Council. He added that this had been an excellent process and that the applicant had taken the neighbors' concerns into account. Sorensen requested th_at the neighbors be provided with a telephone number to call during the construction phase if there were a problem with noise or dust. Bumett said he felt it was a good project and saw no problem with the architecture. Koppel agreed that she liked the project but suggested that a subcommittee be formed to work with the applicant regarding the architecture on the Fontana's building. Bautista said he liked the design of the Whole Foods building, but on the Fontana's building, he would like to see a softening of the roof line, less blocky-looking, perhaps eaves. Thc Community Development Director said that Council could approve the fundamental use permit and require that the architecture on the Fontana's building come back before them. He cautioned that it would lock in the footprint. Bumctt said that he liked the design they had begun with on Whole Foods with the addition of the heavier trellis. Sorensen moved to grant a negative declaration. Bumett ~econded and the motion carried 5-0. Bautista moved to approve the application per the Planning Commission Resolution No. 4613 for the footprint of both buildings and the architectural design of the Whole Foods store. A condition of approval is that the streetscape for this project shall My 17, I 9:; Cupertino City Council Page g comply with the Stevens Creek Specific Plan. Staff, Council members Dean and Bautista, and the applicant will meet to discuss the design of the Fontana's building and report back at the August 7 meeting. Koppel seconded and the motion carried 5- 0. 27. Applications 6-U-95 and 14-EA-95 - Target Homestead - Use permit to operate a school in an existing shopping center. The property is located at 20956 #E Homestead Road. The Planning Commission recommends the granting of a negative declaration. Recommended for approval. The Community Development Director reviewed the staff report. Mr. Adam Dorsay, the applicant's representative, said that the Koumon Learning Center was a 37-year-old company from Japan. It is a health club for the mind. Students will come and go as they please. There will us~_~_~lly be about 10 and no more than 25 students. The school is open two days a week from 3:00-7:00 p.m. Mr. John Statton, representing the Cupertino Chamber of Commerce, said that this is a great example of a non-traditional use in a re~l store. Sorensen moved to grant a negative declaration. Koppel seconded and the motion carried 5-0. Sorensen moved to approve the application per the Planning Commission Resolution No. 4613. Koppel seconded and the motion carried 5-0. NEW BUSINESS 28. Approval of Telecommunications Policy recommendation from Cable TV Advisory Committee. The Public Information Officer reviewed the staff report. Sorensen moved to accept the Cable Television Advisory Committee's Telecommunication Policy recommendations. Koppel seconded and the motion carried 5-0. 29. Review of bids and award of contrnct for Fremont Older School Demolition, Project 95-110. The Public Works Director reviewed the staff' report. Koppel moved to award the project to Ferma Corporation based on the lowest bid submitted in the amount of $126,832; Authorize a 10% contingency for a total project of $139,500; and appropriate $139,500.00 from the Environmental Impact Fund. Bautista seconded and the motion carried 5-0. J'uIy 17, 1995 Cupertino City Council Page 9 30. Review of bids and award of contract for printing of Cupertino Scene. The Public Information Officer reviewed the staff report. She handed out a letter dated July 14 from The Bridge Crroup which said that if recycled paper was available, they would use it. She explained that the specifications had required recycled paper. The lowest bidder is a broker for a company in King City. The recommended cohltactor, Alonzo Printing, only prints on recycled paper and the City of Cupertino has a policy that they shall use recycled paper and allow spending an additional 10% to do so. Koppel moved to award the Cupertino Scene printing contract to Alonzo Printing; and to add an additional $6,000 to the Cupertino Scene printing budget. Bautista seconded and the motion carried 5-0. 31. Approval of Housing Mitigation Manu~_al as recommended by the Planning Commission. Veto Gil, Planner II, reviewed the staff report and showed overheads highlighting the major amendments to this document. She also showed how the calculations were done for the single-family and multi-family in-lieu fees. Koppel referred to the condition which would require units off-site to be within 1.5 miles of the development. She said that the city is near buildout and that is too much of a burden. Mr. Dick Schuster, 777 Stendhal Lane, representing the Affordable Housing Committee, said they were in opposition to the proposed manual. He said he is a licensed contractor and is not convinced the proposed mitigation options will do anything for the city. It appears to be irrational and unfair to require mitigation of five units and not fewer. He asked what is the rationality of exempting larger-sized developments and he urged the Council to review the recommendations of the Affordable Housing Committee. Ms. Susan Mirch-Kretsclunann, representing the Affordable Housing Committee, said she was the chairperson and was here to answer any questions of Council. The committee felt that the fee should apply from the first house on, since school fees, etc., are placed on each unit. She felt that since the city is approaching buildout, there may act~mlly be more developments of 5-9 units. So, to trigger the fees at five units but not at four units is unwise. She said that all developments of ten units and above should be built on-site. The biggest fear in the community is that it will all be built in one location. Regarding the formula for multi-family developments, she asked for clarification on which figure was used, whether it was low or moderate income values. She said that large development would have a cap on fees, but smaller development would not, and therefore it would not have a competitive advantage. Ju/y 17, 19~)~ Cupertino City Council Page ! 0 Ms. Gertrude Welch, 10605 Gascoigne, said she was with the Affordable Housing Network of Santa Clara County, but she was speaking for herself. She opposed this proposed manual and supported the recommendations of the Affordable Housing Committee. Mr. Mike Bruuer, 1144 Derbyshire Drive, said that he had sent a letter to Council a few weeks ago regarding paragraph 2.2.3, Mitigation Options No. 2. He did not understand the need for affordable housing to be as large as 1200 square feet. Regarding Section 2.2.9, Comparable-sized Bedrooms, he said that a serviceable size would be a 1200 foot home or 800-900 feet for a two-bedroom condo. The Council members concurred to direct staff to bring this item back to Council with a matrix comparing the recommendations of the Affordable Housing Committee and the Planning Commission. Burner said that he did not like the exceptions and that the recommendation of the Affordable Housing Committee would probably he closer. He was concerned that there was no fee or requirement for commercial or retail properties. Bumett said that he agreed that they should allow smaller units, but saw no need for caps on in-lieu fees. The City Manager said that staff had already done the manual on commercial and retail areas. 32. Review of Cupertino street closures/restrictions. The Public Works Director reviewed the staff report. Council discussed the list of street closures and agreed that they would make no changes unless there's a specific request made from the affected neighborhood. They concurred to table this item. 33. Schedule Library Commission interviews. The City Clerk reviewed the staff report. Koppel moved to schedule the interviews for August 7, 6:00 p.m., in Conference Room A. Sorensen seconded and the motion carried 5-0. 34. Resolution No. 9390: Adopting a Memorandum of Understanding between the City of Cupertino and Operating Engineers Union Local No. 3. This item was postponed. 35. Ordinance No. 1692: "An Ordinance of the City Council of the City of Cupertino Amending Section 11.12.030 of .the Cupertino Municipal Code Relating to Establishment of Prima Facie Speed Limits on Regnart Road, From 650 Feet Southwest of Lindy Lane to the End." The Public Works Director reviewed the staff report. Ju~y 17, 1995 Cupert/no City Counci! Page 11 Sorensen moved and Koppel to approve the speed limits. Motion carried 5-0. The City Clerk read the title of the ordinance. Burner moved and Koppel seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the first reading thereof. Motion carried 5-0. WRITTEN COMMUNICATIONS 36. Letter from Floyd Meyer regarding a traffic warrant issued by the Northern Santa Barbara Municipal Court. The City Manager said that Mr. Meyer had been concerned that if he were arrested on the traffic warrant the City of Cupertino would have to pay the booking fees. He had explained to Mr. Meyer th_or Government Code Section 29550 exempts cities from paying for booking fees for arrest warrants or bench warrants from out of its jurisdiction. Mr. Meyer had then withdrawn his letter but retained the fight to submit it to Council at any point in the future. ORDINANCES 37. Second reading and enactment of Ordinance. No. 1691: "An Ordinance of the City Council of the City of Cupertino Approving a Change of Zone Designation for 2.67 Net Acre on Upland Way, Specifically APNs 366-03-009,-010 and -011, From PRE- RI-IS, Pre-Zoned Residential Hillside, to PRE-RHS-10, Pre-RHS-20 and PRE~RI-IS- 40, Pre-Zoned Residential Hillside With a Minimum Lot Size of 10,000 Sq. Ft., 20,000 Sq. Ft. and 40,000 Sq. Ft." The City Clerk read the title of the ord/nance. Bumett moved and Koppel seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the second reading thereof. Motion carried 5-0. Burnett moved and Bautista seconded to enact Ordinance No. 1691 Motion carried 5- 0. COUNCIL REPORTS Koppel reported that SB 437 would eliminate the State of California from the employee- based trip reduction requirements, except for the Bay area (an amendment by Senator Boatwright). The Boatwright amendment was removed, so if SB 437 passes it will apply state-wide. Koppel reminded Council that the DeAnza College Night of Magic fund-miser was October 28, to raise money for their tech center. Regarding $oint Venture Silicon Valley, she spoke at the constitution revision meeting and participated on a panel. They offered Santa Clara County for a pilot program on how to fund local government differently. She noted that October 7 is a parade and Cupertino's birthday, and she was working to get some more corporate donations so more events can be added. ,' ./uly 17, 1995 Cupertino City Council Page 12 Burner reported on the Traffic Authority meeting and said they will begin work on extra lanes at Highway 85 and 17 to address the congestion problems there. There's a bill to use registration fees for traffic reduction items and it is planned to add bicycle facilities to that. Sorensen attended a CDBO meeting on July 6 and learned that the Midpeninsula Housing Coalition and an affordable housing project in Cupertino lost $300,000 because they did not have control of the sites by June 30. A recommendation was forwarded to the Board of Supervisors that the money be returned and then be reallocated in the 1996 funding round. The only thing that would change that would be if the federal government took more money away from the County. She noted that Los Altos lost $100,000 as well. The committee was also informed to expect a shortfall of 10% to 20% next year. The City Manager reviewed the recommendations of the Legislative Review Committee: Oppose AB 1949 (Conroy), Retention, public works contracts; Oppose SB 646 (Kelley), ABC licenses, bankruptcy transferred; Support SB 56 (Mountjoy), notification, violent felon release; Support SB 936 (Campbell), Housing Element reform; Support SCA 24 (Calderon), to allow 11 of 12 jurors to render a verdict in all criminal cases except capital crimes. Koppel moved to approve the recommendations of the committee. Burnett seconded "-" and the motion carried 5-0. CLOSED SESSION At 10:05 p.m., Council recessed to a closed session to discuss pending litigation and labor negotiations, as follows: Pending litigation (Government Code Section 54956.9(a): (a) Dean Witter litigation update Co) Roman Catholic Bishop of San Jose v. City of Cupertino (Superior Court Case Number 7326583). Labor negotiations (Government Code Section 54957.6) - closed session requested. At 10:27 p.m., Council reconvened in open session. The City Attorney announced that (1) The City Council had instructed its management representatives to pwceed with labor negotiations along the lines discussed in closed session; (2) A written report regarding the Dean Witter Lawsuit had been dispersed to the Councihnembers, but no action was taken; and (3) Council authorized the City Manager to sign an agreement regarding dismissal and tolling in regard to the Diocese lawsuit against the City of Cupertino. Bautista moved to dismiss the Diocese lawsuit. Koppel seconded, and the motion carried 5- 0. ]u~y /7, I~)/)5 /~upert~no/~i/y Council Page 1~ ADJOURNMENT At 10:28 p.m. Council adjoumexl to 6:45 p.m., Monday, July 31, 1995, to review Applications 1-GPA-93 and 6-EA-93, Diocese of San Jose. ·