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CC 10-21-96 CC-932 MINUTES Cupertino City Council Regular Meeting October 21, 1996 PLEDGE OF ALLEGIANCE Mayor Burnett called the meeting to order in the Council Chambers of Cupertino City Hall, 10300 Torte Avenue, at 6:45 p.m., and led the Pledge of Allegiance. ROLL CALL City Council members present: John Bautista, Michael Chang, Wally Dean, Lauralee Sorensen and Mayor Don Burnett. Council members absent: None. Staffpresent: City Manager Don Brown; City Clerk Kimberly Smith; City Attorney Charles Kilian; Administrative Services Director Carol Atwood; Community Development Director Bob Cowan; Parks and Recreation Director Steve Dowling; Public Information Officer Donna Krey; Planner II Vera G-il; and Public Works Director. CEREMONIAL MATTERS - PRESENTATIONS None. POSTPONEMENTS None. WRITTEN COMMUNICATIONS None. ORAL COMMUNICATIONS Mr. Mark Sherwood, 19930-C Olivewood Street, said he was representing the Westwood Townhome Tenants Union. They thought an agreement had been reached with the landlord regarding rent increases but new rules and regulations were received, some of which were retaliatory. They have tried to work the situation out through Project Sentinel but the landlord will not return their calls. The Las Hada~ Apartment tenants are facing the same issues, so the two groups plan to merge into the Cupertino Tenants Association to work towards mediation and binding arbitration. Mr. Sherwood said when he first moved into his apartment 5 years ago the rent was $1100, and it has now gone to $1700. He provided a copy of the recent communications and agreement from the Westwood landlord. October 21,199(; Cupertino City Council Page 2 Ms. Mary Ellen Cheil, representing Cupertino Community Services, thanked the City Council '- and the community for their support, both financial and volunteer services. She said there is a tremendous need for housing and CCS is working to manage affordable housing and provide transitional housing and a rotating shelter. They have also purchased a four-plex for transitional housing, and have just received a grant of $150,000 over three years from the Housing and Urban Development Department (HUD). Mr. Craig Breon, representing the Santa Clara Valley Audobon Society, noted that the public works staff had already responded to his call about the large mounds of dirt which had been dumped into culverts during development on Upland way. He asked that Council consider the environmental results when allowing building on the hillsides, especially on slopes above 30% which require deep grading of the land. This can trigger storm water and pollution issues because sediment is the major pollutant of the bay and reduces creek capacity during times of flood. CONSENT CALENDAR Sorensen moved to approve the items on the consent agenda as recommended. Chang seconded and the motion carried 5-0. 1. Resolution No. 9716: Accounts Payable, October 4, 1996. - 2. Resolution No. 9717: Accounts Payable, October 11, 1996. 3. Resolution No. 9718: Payroll, October 4, 1996. 4. Resolution No. 9719: Declaring intention to order vacation of emergency vehicle access easement, public utility easement, wire clearance easement, and private access easement; Torre Avenue and De Anza Boulevard, Lot 5 of Tract 7953. 5. Resolution No. 9720: Authorizing destruction of records. 6. Resolution No. 9721: Authorizing execution of Amendment to Agreement between County of Santa Clara and City of Cupertino for abatement of weeds. 7. Resolution No. 9722: Declaring weeds growing on certain described property to be a public nuisance and setting heating for objections to proposed removal. 8. Request from Optimist Clubs of Cupertino and De Anza/Cu~no for waiver of use fee at the Qululan Community Center for an Awards Ceremony. 9. Response to G-rand Jury Report on Implementation of the Brown Act. 10. Approval of minutes of October 7, 1996, regular meeting. October 21, 1996 Cupertino City Council Page Vote Councilmembcrs Ayes: BurneR, Bautista, Chang, Dean, and Sorensen Noes: None. Absent: None. Abstain: None. ITEMS REMOVED FROM THE CONSENT CALENDAR None. PUBLIC HEARINGS 11. Public hearing to consider an appeal of Planning Commission approval of Application 6- U-96, Hossain E. Khaziri. The application requested a use permit to demolish an abandoned service station and construct a 1,500 sq. ft. service station and car wash at 10002 DeAnza Boulevard. (Councilmember John Bautista, appellant) (Continued from the meeting of October 7, 1996.) The Community Development Director reviewed the staff report and the mayor opened the public hearing. Mr. Phil Boyce said that he owns property on either side of this parcel. When the property was developed about 17 years ago 13 parcels were assembled and he developed a signature building with heavy landscaping. He also widened the street and did a number of costly changes. At that time he were assured by City Council that if they spent the millions of dollars necessary to develop the comer, when and if the gas station ceased doing business, there would not be a similar use put back on that property. Mr. Boyce said they were concerned about the noise which would be generated by the car wash because it is less than 10 feet off the property line right behind the walk-up windows in the bank. Also, the gas station is being placed in front of a signature building. Finally, on the east side of this parcel where parking is shown, he owns a 20- foot right-of-way which is not shown on any of the plans. It is used for ingress and egress. He said he had not been contacted by the owners. He asked Council to deny the project as not befitting this community. Mr. John. Statton, representing the Cupertino Chamber of Commerce, referred to a letter from the Chamber dated Oct. 16. He listed 5 reasons why the chamber supported this project: (1) It is zoned for a gas station and has historically served this purpose; (2) The project exceeds the design criteria for the Stevens Creek Boulevard specific plan; (3) The size of the parcel does not lend itself to other uses because of parking issues; (4) Traffic at this intesection is already severely impacted but a gas station generates almost no destination trips; (5) The project would become one of the city's top sales tax generators, as is the station across the street. October i!l, 10/)i Cupertino City Council Page -- Mr. Michael Aminian, representing Century Medallion real estate, said that this gas station had been shut down because of contamination pwblems, and for that reason no one wanted the property. He successfully negotiated between Exxon and Texaco for site remediation and Mr. Khaziri purchased the property and accepted the responsibility for cleaning it up. Mr. Aminian said the preliminary title report did not reflect any easements as mentioned by Mr. Boyce. Exxon representatives also have nothing in writing about an easement. They have been working on this site for over a year, and this is the best design possible to benefit the city through revenue generation as well as finding a use which fits the size of the parcel. He said he has looked at gas stations in Dallas, Cam~el and Monterey, at staff's suggestion, and none of them are as nice as this design. Mr. Mike Khaziri, applicant, said he was surprised to fred there was an easement, and of course that issue must be resolved. He has been working on this for 8 or 9 months, and was one of the parties involved in working with Exxon and Texaco to do the environmental clean-up, which was a big responsibility. He put the city first, residents second, and his family in third position. He cooperated with city staff on all the issues they raised. The waterfall is just a suggestion and he was open to any other suggestion. He estimated that this gas station could generate as much as $150,000-$200,000 per year in sales tax and property tax. He is dedicating 1600 feet to the city and will bear costs of over $40,000. The car wash building is only about 800 square feet and will be very quiet. There are no other types of uses which could fit on this small space or generate as much revenue. Mr. Brace MacLean, the listing agent for Exxon, said this was fosmerly a Texaco station now owned by Exxon. Texaco is responsible for the remediation of the site but Exxon is selling it. There is no environmental indemnification for Exxon, so it would be extremely difficult to finance this property or to sell it in the future because of the risks of contamination. Reasonable remediation methods may include above-ground pipes and are at the discretion of Texaco, which could also impact future property owners. There have been other people interested in the site and offers have been made but the risk was too great. The chances of selling it for another use are very unlikely. The Community Development Director said that this parcel is in the final stages of cleanup. There are other ex-service stations in town, such as Taco Bell, which are also doing final-stage cleanup. The remediation method there is a type of incineration unit He was not sure to what degree the ground contamination is a factor in determining how the site could be used, but felt it could be used for other things. Ms. Patricia Smith, 10317 Cold Harbor, urged that Council approve this project because it is currently surrounded by a cyclone fence plastered with political signs. This gas station seems to be the ideal solution to clean that up eyesore and bring in revenue. - Ms. Ann Anger, President of the Monta Vista Improvement Association, said she did not object to the design, but felt that a gas station did not belong on that comer. Cupertino has no identity and the city has been working hard to beautify the area, and this is a October 21, 1996 Cupe~no City Council Page crucial intersection. She suggested that the city get the consent of the citizens to buy the property and mm it into a park. Or perhaps Mr. Boyce would be interested in purchasing this site and expanding his properties. Mr. Boyce indicated on the map that his easement was located on the east side of the property. He said he could provide a copy of the legal documentation. Dean moved to continue this item to November 4 to alloTM time for the adjacent property owner Phil Boyce to provide staff with evidence of a fight-of-way easement which he holds on this property. Bautista seconded and the motion carried 5-0. PLANNING APPLICATIONS None. UNFINISHED BUSINESS 12. Review of Housing Mitigation Manual. The Community Development Director reviewed the staff report and discussed a list of cities which require a housing mitigation fee. He said that the Economic Development Team recommends that the "cause to be built" section of the manual be eliminated. Fee - recommendations ranged from $0.00 to $5.00 a square foot. Also, Tandem Computer requests that Council consider their situation with respect to credits in the "housing development bank." Mr. John Statton, representing the Cupertino Chamber of Commerce, said there must be a level playing field in telniS of the fees order to remain competitive. He agreed with past comments by Councilmember Dean that the state has been dictating housing policy, but Mr. Statton felt it should be done on a regional basis. Through the requirement for construction of housing, the city has created a large disincentive for property owners to develop in Cupertino and instead the companies are relocating elsewhere. If council does set a mitigation fee it should be at the lowest possible range. Mr. Dick Schuster, representing the Cupertino Housing Committee, noted that the committee's input was in advertently omitted from the minutes of the Economic Development Committee. The Housing Committee recommends (1) Support of the housing mitigation requirements as currently stated; (2) Retain the $5 per square foot in- lieu fee; (3) Amend the "cause to be built" section so that it clarifies that office/industriai development can bank proposed housing units. Mr. John Hailey, representing Tandem Computers, Inc., asked that council proceed with the concept of de-linking development and housing. It was a difficult negotiation during _. the General Plan process to tie the companies to the idea of creating housing, but that was agreed upon because the $5/foot mitigation was so onerous that another aitemative was needed. For that reason, if the housing mitigation fee approaches $5/foot Tandem urges October 21,100t; Cupertino City Council Page that the "cause to be built" clause not be changed. He referred to a letter given to Council '- dated October 22 which proposes an alternate method of banking housing mitigation credits, and asked that Tandem be allowed to address council in the future on this matter after working out more details with staff. In response to a question about an appropriate housing mitigation fee, Mr. Halley said that each project was different but they began to look more seriously at the "cause to be built" option when the mitigation fee approached $3/sq, are foot. Mr. Charles Crouch, representing Apple Computer, said that the company has participated in a number of significant projects in the city, either as owners or tenants. Their largest development is the Apple R&D campus which was built under the present housing mitigation policy, and Apple elected to pay an in-lieu fee rather than try to do housing construction. They participated in this mitigation program only to meet the required construction schedule of the campus, but they do not believe that producing housing in a given community is the responsibility of local companies. Housing needs should be met on a regional basis. Apple Computer supports the elimination or drastic reduction of the housing mitigation requirements. Bautista was in favor of removing the "cause to be built" provision because it sometimes results in housing constructed in the wrong places or at a higher density than desired, and over five years this policy has not proven that effective. He suggested a fee of $2 because it would put Cupertino between Fremont and Palo Alto in terms of fees charged, yet it's '- not an excessive fee and could encourage proceeds for housing mitigation. He supported Tandem's proposal to find a way to credit them for housing already built. Dean agreed with the proposal to strike the "cause to be built" provision. He felt the overall fees should be in parity with other communities in order to remain competitive, so the housing mitigation fee should be $1. Soreusen said she would approve a fee of $1-$2 and agreed that staff and Tandem should work together to develop a means of crediting Tandem for housing. Chang said he would support a fee of $3 and was in favor of de-linking. Burner discussed the need for affordable housing and said this housing mitigation fee could be used to raise money to rehabilitate existing housing and provide additional housing for lower-income families. He preferred a mitigation fee of $5/foot, and was in favor of striking the "cause to be built" language. Bautista moved to amend the Housing Mitigation Manual to delete the "cause to be buiW' clause and to impose a housing mitigation fee of $2 per square foot. Sorensen seconded and the motion carried 3-2 with Bumett and Chang voting no. The Community Development Director said that staff would initiate the necessary General Plan change and work with Tandem Computer to identify a means of granting credit for housing which Tandem has already caused to be built. Council members October 21, 1996 Cupertino City Council Page 7 concurred that the housing mitigation fee of $2/square foot shall apply to all projects -- which apply for building permits subsequent to this evening's decision. Sorensen recommended that the Economic Development Advisory Committee look at the issue of regional housing. Baufista suggested that the committee provide a report to council on the status of housing development. NEW BUSINESS 13. Adoption of"Hillside Preservation Strategies" document. The Community Development Director' reviewed the staff report. Mr. Craig Breon, representing the Santa Clara Valley Audobon Society, said the county appears willing to address concerns of the cities, and the board of supervisors is not interested in being developers of the hillsides of the cities. City staff should continue to poll the council members about their desires and forward that information to the county. He noted that the Midpeninsula Regional Open Space District (MPROSD) will begin their review process, equivalent to a general plan review, and will reorder priorities after that. In the past they have said they will not have any funding for acquisitions until after 2000 because they are servicing their current debt. Ms. Beez Jones, 10398 Heney Creek Place, urged that the landowners be included in all of the discussions regarding these strategies. The strategy to limit allowable uses and intensity may have a negative impact on the profitability and the financial stability of the landowners property. The plan addresses the need for protection of the hillsides' natural beauty but there is no comment on the affect on the landowners who have preserved this land for generations. The hillside strategies section suggests making recommendations to MPROSD for acquisition, and she asked if that would mean using eminent domain to condemn private parcels and what are the proposed new land uses in this plan. She asked that the city meet with the hillside landowners and let them participate in the establishment of the principles and the strategies. Council received copies of a letter from Mr. John Kolski Stevens Creek Quo_ray. Mr. Kolsld objected to the policy because it would (1) Take away the viable economic use of the property for the furore; (2) Eliminate variance procedures; (3) Establish future use of eminent domain by public agencies, and (4) Leave open a high potential loss in value based on restricted uses in the future. Sorensen agreed that the hillside space wouldn't exist if the private landowners hadn't preserved it and some of it has been in families for generations. She asked how to keep the landowners involved. The Community Development Director said that the county will have the major role in determining allowed intensities in county areas, and it is in the city's best interest to retain a degree of control. Mr. Don Wieden is the project manager at the county for the ongoing discussion about individual regulations and he will have a contact list for people who would like to participate in the process. Council's role tonight October 21, 1996 Cupertino City Council Page is indirect, but four cities together are asking for the county to develop some roles. '-' Sorensen asked that council, Ms. Jones and Mr. Kolski be kept informed of any developments at the county. Sorensen moved to adopt the "Hillside Preservation Strategies" report and initiate a General Plan Amendment as def'med in Planning Commission Resolution No. 4762. Bantista seconded and the motion carded 5-0. 14. Letter of support for Transportation Agency's recommendation for an alternate mute that includes connection to Santa Clara County for the high speed rail project between Los Angeles and San Francisco. The Public Works Director reviewed the staff report and recommended the following position (1) The high speed rail must provide a direct mainline to San Jose and Silicon Valley; and (2) That financing cannot use existing sales tax or other existing transportation revenue, but instead use gas tax or other new funding sources. Sorensen moved to authorize the Mayor to sign a letter of support for the Transportation Agency's recommendation regarding alignment and financing. Chang seconded and the motion carded 5-0. 15. Report on commission and committee terms expiring January 15, 1997; selection of - application deadlines and interview dates. City Council concurred to set a deadline of December 20 for applications; to set an extended deadline of December 27 if an incumbent did not reapply; and to conduct interviews on Tuesday, January 7, 1997 at 6:00 p.m. in Conference Room A. ORDINANCES · 16. Second reading and enactment of Ordinance No. 1737: "An Ordinance of the City Council of the City of Cupertino Amending Chapter 19.100, Off-Street Parking' Regulations, of the Cupertino Municipal Code." The City Clerk read the title of the ordinance. Sorensen moved and Dean seconded to read thc ordinance by title only, and that the City Clerk's reading would constitute the second reading thereof. Motion carded 5-0. Sorensen moved and Dean seconded to enact Ordinance No. 1737. Motion carried 5-0. 17. Second reading and enactment of Ordinance No. 1745: "An Ordinance of the City Council of the City of Cupertino Amending Section 11.08.250 of the Cupertino Municipal Code Relating to the Designation of Bicycle Lanes, Adding Bicycle Lane on ._ the South Side of Stevens Creek Boulevard From Stelling Road to De Anm Boulevard. October 21, 1996 Cupertino City Council Page 9 The City Clerk read the title of the ordinance. Sorensen moved and Dean 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. Soransen moved and Dean seconded to enact Ordinance No. 1745. Motion carried 5-0. STAFF REPORTS 18. Resolution No. 9723: oPPOsing Proposition 218, "Right to Vote" initiative. The City Manager reviewed the legislative analyst's rePOrt on this inititative. It would be more difficult for local governments to raise revenues used to provide services. In the short term it could reduce local government revenues by more than $100 million annually, and over the long term time local government revenues would be significantly lower potentially by hundreds of millions of dollars annually. There would also be significantly increased costs to hold elections and calculate fees. Dean moved to adopt the resolution. Sorensen seconded and the motion carried unanimously. COUNCIL REPORTS Dean noted that the council had been requested to adopt a resolution supporting proposition 217 but the League of California Cities had not made a recommendation on that yet. CLOSED SESSION At 9:05 p.m., Council recessed to a closed session to discuss negotiations for purchase, sale, exchange, or lease of real property - Government Code Section 54956.8. - (a) Proposed lease of a portion of the Cupertino Sports Center by Acceleration of Cupertino, Ather Sports and (c) Purchase of property located at 21979 San Femando Avenue. The lease of the water utility would not be discussed. At 9:45 p.m., Council reconvened. The City Attorney announced that Council authorized staff to present to Acceleration of Cupertino a proposed lease of a portion of the Cupertino Sports Center to be considered and executed by the lessee and to be placed on the next council agenda for approval by the council. Regarding the purchase of property on San Femando Avenue, there was discussion concerning possible acquisition but no action was taken. October 21, 1996 Cupertino City Council Page 10 At 9:45 the City Council adjourned to 8:30 a.m., October 26, Quinlan Community Center (Toyokawa Room), 10185 North Stelling Road, for goals review and City Manager evaluation. City Clerk