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CC 03-20-95 CC-898 MINUrI~S Cupertino City Council Regular Meeting March 20, 1995 PLEDGE OF ALLEGIANCE At 6:45 p.m., Dean called the meeting to order and led the Pledge of Allegiance. ROLL CALL Council members present: John Bautistz, Don Bumett, Barbara Koppel, Lauralee Sorensen and Wally Dean. Council members absent: None. Staff present: City Manager Don Bwwn; City Clerk Kimberly Smith; Administrative Services Director Carol Atwood; Community Development Director Bob Cowan; City Attorney Charles Kilian; Public Information Officer Donna Krey; and Public Works Director Bert Viskovich. CEREMONIAL MATTERS - PRESENTATIONS Ms. Mary Davey and Mr. Malcolm Smith provided an overview and update of the activities of thc Midpenimula Regional Open Space District. They showed a map of all of the preserves, slides of trail types and range of habitats, and discussed their primary sources of revenue and expenditures. They distributed info,mation kits to the council members and said that a new map of the district would be sent to every household next month. The City Manager introduced Mr. Bill Woska, the city's new personnel officer. ORAL COMMUNICATIONS Mr. J. D. Vanderlaw, representing PW Supermarkets, said that he had previously sent the council members a letter related to the Michael's craft store, which is a fellow tenant in his shopping center. He asked that Council deny any further extension on the big trailers that are used for storage in the rear of the Michael's store. The Community Development Director said that the Code Enforcement Officers are following up on this matter. The Public Information Officer read an electronic message from a person in the city of Hartford who wished to fred out more information about the live council meetings. .~' March 20, 1995 Cupertino City Council Page 2 CONSENT CALENDAR Sorensen moved approve the items on the Consent Calendar as presented. Bumett seconded and the motion carried 5-0. 1. Resolution No. 9299: Accounts Payable, March 3, 1995. 2. Resolution No. 9300: Accounts Payable, March 10, 1995. 3. Resolution No. 9301: Payroll, March 10, 1995. 4. Review of application for Alcoholic Beverage Control license for Peacock Lounge, 19980 Homestead Road. 5. Resolution No. 9302: Approving final map and improvements of Tract No. 8693 "YMP", located at Phil Lane; Developer Emily Chen; accepting certain easements; authorizing signing of final map and improvement plans; authorizing the execution of agreement. 6. Approval of the minutes of the March 6 meeting. 7. Resolution No. 9303: Designating agents for obtaining financial assistance for winter storius which occurred in Jao,ary and February, 1995. 8. Resolution No. 9304: Designating agents for obtaining financial assistance for winter stoLms which occurred in March, 1995. 9. Monthly Treasurer and Budget Report, February, 1995. 10. Resolution No. 9305: Supporting Measure A for the renovation of schools in the Cupertino Union School District. 11. Resolution No. 9306: Approving destruction of ce~_ain records (City Clerk). Vote Members of the City Conncil AYES: Bautista, Burnett, Dean, Koppel, and Sorensen. NOES: None ABSENT: None ABSTAIN: None PLANNING APPLICATIONS 12. Application Nos. 10-U-94 (Modified) and 29-EA-94 - Barry Swenson Builder, First Development Corporation, Stevens Creek Boulevard, between Stelling Road and the' easterly City boundary. Environmental Determination: The Planning Commission recommends the granting of a negative declaration. Recommended for approval. .. March 20, 1995 Cupertino City Council Page 3 Ms. Lisa Bullen, representing Barry Swenson Builders, said that she did not expect any spillover from the commercial into the residential areas because they are limited to twenty parking spaces for the commercial/retail areas. She said that the main spokesperson for the neighborhood group had checked with the neighbors and they have welcomed the tenant mix that is being proposed. Sorensen moved to grant a negative declaration. Koppel seconded and the motion earriext 5-0. Sorensen moved to approve the application per Planning Commission Resolution No. 4592. Bumett seconded and the motion carried 5-0. NEW BUSINESS 13. Consideration of scope of review for possible general plan amendments regarding tier II growth. Written communications dated March 20, 1995, were received from Marcel Cohen, the bay area real estate manager for Hewlett-Packard Company. Burnett displayed four charts on the overhead projector. The first was titled "Major Cupertino Land Holdings" which showed acreage of the City Center, Apple Gateway, Tandem and Hewlett-Packard. The second was rifled "General Plan Development Allowance"; the third and fourth were titled "Major Development Floor Area Ratios" and contrasted the amount of floor area with and without tier II development. Burnett said that a considerable amount of development would be available without the companies having to go into tier II space, and he felt that it could be eliminated without adversely affecting the companies. The hardest hit would be Hewlett-Packard but he believed there could be a way of making adjustments to making it more equitable. Bautista urged Council to support Alternative No. 3 as presentext in the staff report. It would not eliminate tier II space, but it would prevent long-term development agreements and tier II would not be transferable among companies. The city council could then decide on a case by case basis. He asked that council encourage the companies to join in the city's effort to find state-level solutions to unfunded mandates regarding housing. Mr. Dick Rosemeier, representing Hewlett-Packard Company, referred to the notes of the Planning Commission meeting of 1991 and clarified that Hewlett- Packard used to have more manufacturing, that that changed to research and development which had an increased need for infrastructure. They now require 300 sq. ft. per person instead of 200 sq. ft. Mr. John Statton, Executive Director of the Chamber of Commerce, said that those who were opposing growth were equating it with evil, but that was .. March 20, 1995 Cupertino City Council Page 4 .... misguided. When growth was fastest in the city, Council added an extensive park system, the Sports Center, thc Quinlan Center and many other araenitics. Keeping the big companies healthy and growing is important to the entire community. The city has built a great community upon the backs of the computer revolution and other communities are actively courting these firms because they understand that managed growth provides for a great community. Growth can provide great benefits and not drawbacks, and Council has judg~aent over what will be built, including building heights, traffic issues and housing requirements. Mr. John Hailey, representing Tandem Computers, said that the slide showing major developer floor area ratios was misleading because it showed a floor area ratio of .2. The average viewer may not understand that it is so low because there is so much land associated with that comparison, but the land has not yet been built out. Tandem purchased this property because they knew it was slated for intense development, and knew that the General Plan allowed for that development. Thc Public Information Officer reviewed electronic communications received from Mr. Dick Carey, a resident at the comer of Scofield and Barbara Lane. Mr. Carey discussed two basic assumptions: (A) the basic goals of residents who want to maintain the quality of residential life are an important part of long range planning, but are not in conflict with Apple, Hewlett-Packard and Tandem; (B) the General Plan is meant to provide stability and cohesiveness, but it is not meant to prevent elected council members from additionally considering parts of the plan that have been questioned. Regarding the options in the staff report, he felt that Option 1 was not acceptable. Option 2 would be acceptable, but he suggested that tier II be a stage after the base building and be dependent upon a study of that buildout. Option 3 should be considered seriously and Option 4 should be added to Option 3. Burner said there is no question that the city likes the big companies and Cupertino has provided them with a good home. His point was that growth has consequences and beyond a certain point, the cost exceeds the gain. He felt that the tier II buildout would cross that line and asked where those new workers would live. He said that when people leave this area, the most commonly cited reason is that it is too expensive to do business here. He felt that the full impact of tier II should have been analyzed by putting it into the traffic model and then reducing it by mitigation. Instead, a suggestion was made it could be done without any traffic growth above General Plan levels, but he did not support that. He feR they should begin now the process of removing the tier II system, but he knew he would not be able to accomplish that at this time. However, maybe other lesser objectives could be accomplished tonight. Bautista moved to.generally adopt Option 3 with modifications to say that second · tier growth would not be subject to long-term development agreements and the March 20, 1995 Cupertino City Council Page $ rights to extra space would not be transferable. He said this would allow Council to look at second tier growth on a case by case basis. Dean seconded the motion and clarified that this would not be an amendment to the General Plan, but just a clarification of an existing policy statement. The Community Development Director said that the General Plan specifically states that only the three companies named can participate in tier II programs. He felt it was implicit in the General Plan that that was locked in and they could not transfer the fights. However, it could be made more explicit and it would not required G-enerai Plan revision. The City Manager asked for clarification on the portion of the motion regarding floor area ratio. Bautista said he wanted to make sure the tier II numbers were not included in a development agreement, which is slightly different from the wording shown in Option 3 of the staff report. Koppul said she had not heard any hxformation tonight that would convince her to change her mind about supporting an already-approved General Plan. Sorensen agreed because she felt that each development should be looked at on its own merits, and by removing access to tier II growth Council is tying the hands of the companies if they do want to come forward with a development agreement. If one of the companies wanted to develop further, it would force them to do it now. Bantista said that tier II is special growth that Council can look at when the companies are ready to build, and he did not want to tie Council's hands for up to 20 years. However, this would not prohibit the companies from coming in with a development agreement. Bautista said it would preclude development agreements only on tier II growth. Koppel said the Council was making a business decision which would restrict the companies from getting a long-term development agreement so they cannot plan their future, and she could not support it. Buruett referred to the development agreement that the city has with Vallco as an example of the point that Bantista was making. He said there is an eno~i,Lous amount of commercial development for that one location in Vailco and not much lef~ for anyone else to use for commercial development. Dean called for the question and clarified that they would not be opening the general plan and Council will not entertain long-term development agreements for tier II development. The motion carried 3-2 with Koppel and Sorensen voting no. At 8:45 p.m., Bautista was absent. March 20, 1995 Cupertino City Council Page 6 14. Consideration to approve permitted second and third quarter cable rate adjustments and to direct thc lowering of current cquipmem and installation charges to rotes allowed by the Federal Communications Commission. The Public Infoi-iiuafion Officer reviewed the staff report and noted that it should be corrected to reflect second and third q-after cable rate adjustments, not third and fourth q, srter. She said that the city recently found that it does have regulatory control over inflation, so another review is required. Staff has drafted a letter to TCI asking for a 90-day extension and will report back to Council on that inflation factor. Sorensen moved that City Council authorize second and third q~_~_~rter increases from April I though September 30, 1994, amounting to three cents (Cupertino system) and one cent (TCI-San $ose). Koppel seconded and the motion carried 4- 0 with Bautista absent. Sorensen moved that Council aisc that order that actual rates in both systems for equipment and installation are to be brought into compliance with p¢~afitted rate levels, and refunds are to be given to subscribers on any portion of these rates collected since July 14, 1994, that exceed permitted levels. Burner seconded and the motion carried 4-0 with Bautista absent. Ms. Kathy Ncc, representing TCI, said that late on Friday they had found that the city did have regulatory review over inflation rates and that TCI will cooperate by notifying customers that the rate increased already announced will be postponed until a decision has been made. She apologized for the confusion over the FCC decision. 15. Submittal of comments to Santa Clam regarding Kaiser Permanente medical facility application. The Community Development Director reviewed the staff report. The Public Works Director explained a projected traffic di.~tribution pattern chart and showed that most traffic is expected to come from the north and the east. He explained that some of the intersections that have an F level of service (LOS) are beyond Cupertino's jurisdiction and they will have to go through a review process to see what else can be done to offset those levels, such as a Transportation Demand Management program. Sorensen moved that Cupertino submit comments to the City of Santa Clara regarding the environmental impact report in the following areas: (1) Recognition of Congestion Management Agency methods for calculating LOS; (2) Provision of future mitigation for a.m. peak hour LOS E at Homestead and Wolfe; (3) Provision, of- space.. -for.. interchange on Kaiser ..property;. (4) Inclusion of transportation demand management (TDlV0 as proposed mitigation in the summary section; and (5) That the agreement to pay $200,000 for improving the .. March 20, 1995 Cupertino City Council Page 7 intersection at Homestead and Wolfe Roods be included as a condition of approval of the project, and that it be entered into prior to issuance of building peiif~ts. Koppel seconded and the motion carried 4-0 with Baufista absent. COUNCIL REPORTS Koppel reported on the National League of Cities meeting in Washington which she had attended with Mayor Dean. Speaker Newt G-ingfich and President Clinton addressed the group. She highlighted the presentations made by the Cities Association and said that regarding telecommunications, Senator Hutcberson has pwposed legislation which says that cities would get franchise fees and he encouraged the cities to contact their legislators. Koppel also said there was a new informational brochure from Joint Venture Silicon Valley and a nine minute video tape promoting Silicon Valley. She asked all the council members to come to a dinner meeting sponsored by the Cities Association on May 13. The topic of the meeting was constitutional amendments. Sorensen reminded everyone that the Cherry Blossom Festival is April 8 and 9 at Memorial Park and she reported that she and Mayor Dean had attended the town hall meeting with Senator Campbell. Dean reported on the trip to Washington and said the focus is on de-centraliT~ation with more authority coming down to state and local levels. There are predictions that in five years, Medicare will be broke and that unless changes are made, the U. S. would declare bankruptcy in the year 2010. Mayor Dean said that he had sent a letter to Target Stores and to PW Super regarding shopping carts that have been left on bus stops and how the problem could be curbed, but no response had been received yet. He asked Mary Lou Lyon of the Cupertino Historical Society if she would make a report on the Elisha Stephens monument. Ms. Mary Lou Lyon said that the monument was installed on Saturday and that it was very attractive and she invited everyone to the dedication ceremony scheduled for April 1 at 11:00 a.m. The City Manager reminded Council that this week was Students Working In Neighborhood Government (SWING) and that the mock Council meeting would be held in the Council Chamber on Friday. CLOSED SESSION The City Manager said that staff had requested a postponement of the closed session to their Friday meeting; Council concurred. March 20, 1995 Cupertino City Council Page g ADJOURNMENT At 8:35 p.m., Sorensen moved to adjourn the meeting to March 24, 1:00 p.m., at the Marianist Center in Cupertino to discuss goal setting and to hold closed sessions. Burner seconded and the motion carried 4-0 with Bautista absent. City Clerk