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CC 03-06-07 CU PEI\TINO APPROVED MINUTES CUPERTINO CITY COUNCIL Regular Meeting Tuesday, March 6, 2007 ROLL CALL At 6:45 p.m. Mayor Kris Wang called the meeting to order in the Council Chamber, 10350 Torre A venue, Cupertino, California. Present: Mayor Kris Wang, Vice-Mayor Patrick Kwok, and Council members Richard Lowenthal, Orrin Mahoney, and Dolly Sandoval. Absent: none. CLOSED SESSION 1. Labor negotiations - Government Code Section 54957.6 regarding proposals with Cupertino Employees Association (CEA) and Operating Engineer's Local No.3 (OE3). (No documentation in packet). Council went into closed session from 6:05 p.m. to 7:05 p.m. The City Attorney announced that the Ci~y Council gave direction to the city's representative, Carol Atwood, to negotiate with the Cupertino Employees' Association (CEA) and the Local Operating Engineers No.3 (OE3) along the lines discussed in closed session. PLEDGE OF ALLEGIANCE At 7: 1 0 p.m. Mayor Kris Wang led the Pledge of Allegiance. Present: Mayor Kris Wang, Vice-Mayor Patrick Kwok, and Council members Richard Lowenthal, Orrin Mahoney, and Dolly Sandoval. Absent: none. CEREMONIAL MATTERS - PRESENTATIONS 2. Presentation by Beau Goldie of the Santa Clara Valley Water District regarding the Permanente Creek Proiect. (No documentation in packet). Mr. Beau Goldie, Deputy Operating Officer of the Santa Clara Valley Water District, stated briefed City Council members on top-rated feasible alternatives for the Permanente Creek Project, and identified potential issues and opportunities. He reported on the flood protection issues, reduction of flood damages, the planning process, the key project elements, the feasible project alternatives and cost summary and the schedule. He said March 6, 2007 Cupertino City Council Page 2 that individual meetings were taking place with the Board of Supervisors, city councils and interested groups and organizations. A general project meeting was planned for April and an expanded notification process would be in place. In addition to the regular notification of all in the flood plain, notices will be sent to all those in the impacted areas. Mr. Goldie agreed to Council's suggestions to include the Oak Valley area in discussions, to list alternatives for trails and to include a representative from Cupertino on the alternative selection committee. 3. E-Services presentation regarding Neighborhood Watch - e-CAP. (No documentation in packet). Steffanie Turini, Neighborhood Watch Coordinator, demonstrated how to use the Email Community Alert Program (ECAP) on the city's website. She explained that this program allowed residents to see what criminal activity was taking place in their neighborhoods. In addition to making residents more aware of their surroundings, the program also included information on various safety issues. 4. Val1co update. (No documentation in packet). This item was continued to March 20. POSTPONEMENTS The City Clerk announced that the applicants for item Nos. 12 and 13 had requested continuances to March 20. Lowenthal/Sandoval moved and seconded to continue No. 12 (appeals regarding a Grenola Avenue home) and No. 13, (appeal regarding Peet's Coffee) to March 20 as requested by the applicants. The motion carried unanimously. WRITTEN COMMUNICATIONS The City Clerk announced that, in addition to the continuance request for item No. 12, the following items were received after the packet was printed: 1. Email messages between Council member Patrick Kwok, Joan Hong, and Roger Day regarding item No. 12, in which those residents stated their opposition to the balcony. 2. An email from applicant John Volckmann requesting continuance of No. 13, Peet's Coffee. 3. An amended draft resolution for item No. 17, regarding bidders for the Mary Avenue Bicycle Footbridge. March 6, 2007 Cupertino City Council Page 3 ORAL COMMUNICATIONS Carol Reppucci asked Council to adopt a resolution supporting Cupertino's Relay for Life to be held on July 28, 2007. She said that a meeting was scheduled at the Quinlan Center on March 26th for all those interested in volunteering for this event. Bob Stoia reiterated his complaint about abandoned shopping carts in the Garden Gate area. He stated that he had reported this to the city last October and nothing had been done. Mr. Stoia also said he had contacted the corporate and local management ofthe stores involved and they had not taken any action. Council directed staff to report back with some proposed solutions on this matter. Planning Commissioner Marty Miller noted that the second community workshop on the North Vallco planning activity was scheduled for March 8 at City Hall. At this meeting the consultant would be presenting visioning and urban design concepts and options. Jennifer Griffin commented on the earlier statements regarding abandoned shopping carts. She believed these carts were a sign of blight and the City Council should address the problem. CONSENT CALENDAR Lowenthal/Sandoval moved and seconded to approve the items on the Consent Calendar as recommended, with the exception of items 5 and 11 which were pulled for discussion. Ayes: Kwok, Lowenthal, Mahoney, Sandoval, and Wang. Noes: None. 6. Adopt resolutions accepting accounts payable for February 16, Resolution Nos. 07-034. 7. Adopt a resolution accepting payroll for February 23, Resolution No. 07-035. 8. Accept the Treasurer's Investment Report for January 2007. 9. Approve an application for an Alcoholic Beverage License for Guan Dong House, 10851 N. Wolfe Road (Cupertino Village). 10. Adopt a resolution approving an improvement agreement, Felicia Chow and Joyce Chow, Su Yong Law and Frankie Kan Yin Law, 20055 and 20065 De Palma Lane, APN (s) 369- 32-006 and 369-32-039, Resolution No. 07-036. Through an improvement agreement with the City for a single-family development building permit, these applicants will be obligated to bond and construct city-specified roadside improvements, including curb, gutter, sidewalk, and driveway, along the street frontage of their building site. March 6, 2007 Cupertino City Council Page 4 ITEMS REMOVED FROM THE CONSENT CALENDAR (above) 4. Approve the minutes from the February 20 City Council meeting. For the record, Councilmember Mahoney noted that a recent Cupertino Courier article about traffic in the tri-school area was incorrect, and that it implied that the City Council had allocated money for school buses. He said that the minutes of February 20 correctly reflected the City Council's action, stating in part that there would be ongoing investigation of best practices including grants for alternative public transportation, develop a project scope and present in conjunction with the 07-08 budget process. Council had also agreed to continue working with parent groups on the school traffic issue and asked the Bicycle/Pedestrian and Safety Committees to continue working on this matter. The City Council asked that the Public Information Officer contact the newspaper about the incorrect article. Sandoval/Mahoney moved and seconded to approve the minutes as presented. The motion carried unanimously. 11. Adopt a resolution authorizing the City Manager to negotiate and execute an amendment to the Mary Avenue Bicycle Footbridge Proiect funding agreement with the Santa Clara Valley Transportation Authority (VTA) that will allow the funding to be used for both the design and the construction phases of the project, Resolution No. 07-037. Public Works Director Ralph Qualls provided a brief status report on the project. KwoklSandoval moved and seconded to adopt Resolution No. 07-037. The motion carried unanimously. PUBLIC HEARINGS 12. Consider two appeals of the Planning Commission's decision to deny an appeal of a Residential Design Review approval and a Minor Residential Permit to construct a new, two-story 4,219 square foot residence with two-second story rear yard decks, Application Nos. R-2006-08 and RM-2006-13, Cliff Cowles (Moigani residence), 21180 Grenola Avenue, APN 326-28-057. (Continued from February 6). The appellants are: a) Jessica Rose and John Tracy b) Elena Herrera and Subir Sengupta This item was continued to March 20. March 6, 2007 Cupertino City Council Page 5 13. Consider an appeal of the Planning Commission's decision to modify the use permit for Peet's Coffee to allow an opening time of 5:30 a.m., Application No. M-2006-07, Laura Thomas (Peet's Coffee), 20807 Stevens Creek Blvd., APN 326-32-051. The appellant is Council member Richard Lowenthal. (Continued from February 20). Applicant requests a continuance to March 20. (No documentation in packet). This item was continued to March 20. 14. Consider adopting a resolution amending the 2006-07 fee schedule for building fees and Below Market Rate Housing program mitigation fees, Resolution No. 07-038. (Continued from February 6). Finance Director David Woo noted that in the new building fee schedule before Council all fees were recommended at a full cost recovery basis except for residential solar and photovoltaic systems, which would remain at the City-subsidized $300 rate approved by Council. Brian Foster, MAXIMUS financial consultants, reviewed the Building Fee User Study. The fee study goals included: updating the fee schedule, establishing the full cost of operation and allocating the full cost of fees. Mr. Foster reported on the methodologies used, the issue of legal compliance, the allocation of where staff spent its time, the building revenue table and the full cost recovery levels. Beverly Bryant, Homebuilders Association, believed that full cost recovery was necessary and a good policy statement but was concerned that there had not been more opportunity to review this. Staff noted that a change could always be made to the fee schedule if an error was found. However, it was important at this time to endorse the policy of full cost recovery. Lowenthal/Mahoney moved and seconded to accept the 2006-2007 fee schedule for building fees. The motion carried unanimously. Senior Planner Vera Gil reviewed the staff recommendation and said that in 2005 outreach had been done on this issue and local homebuilders associations, the chamber of commerce and real estate boards had been contacted for input. Ms. Oil also reiterated that this was not a change to the Below Market Rate Program put in place in 1993 but a change to the fee level. Kate Funk, Keyser Marston Associates, Inc., reviewed an economic nexus analysis which demonstrated the relationships among construction of new buildings, employees, households and affordable housing demand. The housing linkage fee was a fee on new buildings to finance new affordable housing. Her analysis demonstrated the linkages, established the maximum fee level and met the requirements of AB 1600. The building types analyzed included office/high tech, retail and hotel. The analysis also included compensation levels by occupation, conclusions by housing affordability levels, fee levels in context of total development costs and fee level comparisons with other cities. March 6, 2007 Cupertino City Council Page 6 Beverly Bryant, Homebuilders Association, handed out a copy of a booklet titled "On Common Ground: Joint Principles on Inclusionary Housing Policies" dated July 2005, a policy brief by Home Builders Association of Northern California and the Non-Profit Housing Association of Northern California. Ms. Bryant commented on inclusionary zoning with density bonuses as a possible option, and also noted that if the fees were too high, needed housing would not be built. Ms. Bryant asked Council to consider how the distribution was being made, because raising the fee from $1.19 to $2.50 would be a 110% increase. Council noted that for six units or more the developer provided affordable housing units and for less than six the developer paid an in-lieu fee. Staff was asked to look into the following issues: possibly eliminating the fee for single family homes and duplexes, recovering the fractional fee for developments of six or more units and making it equitable whether a developer built six units or less than six. Mahoney/Kwok moved and seconded to continue the discussion on the Below-Market- Rate Housing Program fees for one month (April 3) to allow further time for review, and to provide additional notice to interested parties. The motion carried unanimously. 15. Consider pre-zoning 13.5 acres to Pre-PR (Public Park or Recreational Zoning District) and Pre-T (Transportation Zoning District), Application Nos. Z-2006-04 and EA-2006- 10, City of Cupertino, lands east of Saratoga Creek to the centerline of Lawrence Expressway from highway 280 to Bollinger Rd., APN (s) 375-21-001 and 375-22-001: a) Negative Declaration b) First reading of Ordinance No. 07-1998: "An Ordinance of the Cupertino City Council Pre-zoning 13.5 acres to Pre-PR (Public Park or Recreational Zoning District) and Pre- T (Transportation Zoning District) Lands East of Saratoga Creek to the Centerline of Lawrence Expressway from Highway 280 to Bollinger Rd., APN 375-21-001 and 375-22-001" Jennifer Griffin commented that it would be nice to have more plantings (low vegetation complimentary to the park) along the Lawrence Expressway. She also noted the ongoing issues with security (graffiti, vandalism) and recommended more presence by the Sheriff s Department. Lowenthal/Sandoval moved and seconded to adopt a Negative Declaration. The motion carried unanimously. The City Clerk read the title of the ordinance. Lowenthal/Sandoval moved and seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the first reading thereof. Ayes: Kwok, Lowenthal, Mahoney, Sandoval, and Wang. Noes: None. March 6, 2007 Cupertino City Council Page 7 UNFINISHED BUSINESS 16. Accept the City's development impact fee report for the year ending June 30, 2006. (Continued from February 20). Sandoval/K wok moved and seconded to accept the development impact fee report. The motion carried unanimously. NEW BUSINESS 17. Adopt a resolution to make a revision to the City Policy on Responsible Contracting providing certain exceptions for Contractors who submit a formal bid for the construction of the Mary Avenue Bicycle Footbridge (Mary BFB), Resolution No. 07-039. Lowenthal/Sandoval moved and seconded to adopt Resolution No. 07-039. The motion carried unanimously. 18. Approve the use of Federal Land and Water Conservation Funds awarded for Stevens Creek Corridor in a stand-alone project at McClellan Ranch or return the funds in the amount of$81,165. Parks and Recreation Director Therese Smith reviewed the staff report. Bob Hennessy, Executive and Founder of the San Jose Conservation Corps, asked for Council support for bringing the corps in to work on this project. He explained that the corps provided training and education to young men and women eighteen and older who were high school dropouts. They worked on environmental projects, clean-up projects and the building homes for low-income families. Mr. Hennessy handed out the "2004- 2005 Annual Report from the San Jose Conservations Corps & Charter School." Deborah Jamison questioned what notification had taken place for this agenda item, and said she was particularly concerned about the proposed picnic tables, because they were should not be allowed in a nature and rural preserve. Ms. Jamison showed a sign from a nature preserve in Florida prohibiting pets, food or drink, skates and bicycles. Ms. Jamison also urged Council not to extend the community garden into the meadow, as the meadow was a very rare habitat type. Mahoney/Sandoval moved and seconded to accept staffs recommendation to approve the use of federal Land and Water Conservation Funds awarded for Stevens Creek Restoration Park in a stand-alone project, and direct staff to return with a detailed proposal along the lines of the concept outline in the staff report. Lowenthal offered a friendly amendment that "the project shall be consistent with the plan adopted for the Stevens Creek Corridor." The amendment was accepted, and the motion carried unanimously. March 6, 2007 Cupertino City Council Page 8 19. Approve the 2007 Planning Commission Work Program. Lowenthal/Mahoney moved and seconded to approve the 2007 Planning Commission Work Program as presented. The motion carried unanimously. 20. Select application deadline and interview dates for the Teen Commission and the Audit Committee. The Council members concurred to accept the resignation of Audit Committee member Jim Weber, and to have the staff contact the Council members to arrange interview date(s) for the Audit Committee and the Teen Commission. ORDINANCES - None ST AFF REPORTS 21. Receive status report on General Fund Revenue and Expenditures. (No documentation in packet). Continued from February 20. Administrative Services Director Carol Atwood said that the current amended budget for the General Plan showed a $1.5 million out of reserves to achieve a balanced budget. Revenue trends were up through January 31 st so a revenue adjustment of about $1 million will be brought to Council. In addition, staff expected a $2 million budget savings in expenditures, which will a $1 million net income. Atwood cautioned that this figure depended on the bids received for the Mary A venue Pedestrian Bridge project. The City Council accepted the report. 22. Receive a report regarding the Cupertino Beautification Program. Parks and Recreation Director Therese Smith gave a status report on the Beautification Project scheduled for March 17. She said about 25 volunteers would be meeting at the Senior Center for the planting project there, and two school sites in the Fremont Union High School District would be planted by the school staff. The City Council accepted the report. COUNCIL REPORTS Council members highlighted the activities of their committees and various community events. The City Council members agreed that Richard Lowenthal and Patrick Kwok would work with staff to discuss possible changes to the selection of CREST winners (Cupertino Recognizes Extra Steps Taken). March 6, 2007 Cupertino City Council Page 9 ADJOURNMENT At 10:45 p.m. the meeting was adjourned to Tuesday. March 20 at 5:00 p.m. for Parks & Recreation and Bicycle Pedestrian Commission interviews, City Hall Conference Room A, 10300 Torre Avenue, Cupertino. ~~-tt KImberly Smi , CIty Clerk Staff reports, backup materials, and items distributed at the meeting are available for review at the City Clerk's Office, 777-3223, and also on the Internet at www.cupertino.org.Click on Agendas & Minutes/ City Council/ Packets. Most Council meetings are shown live on Cable Channel 26, and are available at your convenience on the web site: Visit www.cupertino.org and click on View Meetings Online. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364.