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CC 03-18-96 CC-919 MINUTES Cupertino City Council Regular Meeting March 18, 1996 PLEDGE OF ALLEGIANCE At 6:45 p.m. the Council convened in the Council Chambers and Mayor Burner led the Pledge of Allegiance. ROLL CALL Council members present: John Baufista, Michael Chang, Wally Dean, Lauralee Sorensen and . Mayor Don Burnett. Council members absent: None. Staff present: City Manager Don Brown; City Clerk Kimberly Smith; City Attorney Charles Kilian; Administrative Services Director Carol Atwood; Community Development Director Bob Cowan; Public Information Officer Donna Krey; and Public Works Director Bert Viskovieh. CEREMONIAL MATTERS - PRESENTATIONS City Manager Don Bumett presented to Carol Atwood, the Administrative Services Director, a Certificate of Award from the California Society of Municipal Finance Officers for "Excellence in Operational Budgeting 1995-96." She thanked her staff for their work on the budget which earned this award. WRITTEN COMMUNICATIONS Letter from Peter Z. Hou, Pacific College of Acupressure Massage, appealing Cupertino Municipal Code Section 9.06.090, Massage Therapist Pemfit--Applicafion. The City Attorney said Mr. Hou had filed an appeal with the City Manager regarding the testing procedures. No enfomement measures will be taken until after the appeal hearing has been held. Mr. Hou said he hoped a solution could be found as soon as possible, since his employees' livelihood was at risk. ORAL COMMUNICATIONS Mr. David McCarty, 21925 Hyannisport Drive, said he was concerned with the increase in graffiti, especially near Monta Vista High School. Dean noted that a committee had met today to _ find ways to address the problem, and would be reporting back to the Council. March 18, 1996 Cupertino City Council Page 2 CONSENT CALENDAR Sorensen moved to approve the consent calendar items as presented. Chang seconded and the motion carded 5-0. 1. Resolution No. 9575: Accounts Payable, March 11 1996. 2. Resolution No. 9576: Accounts Payable, March 8, 1996. 3. Resolution No. 9577: Payroll, March 8, 1996. 4. Review of applications for Alcoholic Beverage Commission licenses: (a) Ikenohana Restaurant, 20625 Alves Drive. (b) Cuisineer Six Restaurant, 20007 Stevens Creek Boulevard. 5. Approval of recommendation from Telecommunications Commission for access producer grant. 6. Recommendation from the Parks and Recreation Commission to endorse Measure A - Santa Clara County Park Charter Fund. 7. Minutes of the March 4, 1996, regular adjourned meeting. 8. Resolution No. 9578: Accepting Quitclaim Deed and authorization for underground water fights from Howard F. Webber and Lois Webber; 21877 Corte Madem Lane; APN 326- 45-033. 9. Resolution No. 9579: Authorizing execution of lease agreement for Cupertino Branch Library Between the Santa Clara County Library Joint Powers Authority and the City of Cupertino. 10. Resolution No. 9580: Accepting quitclaim deed and authorization for underground water rights from Shirley M. Hall; APN 342-1%088, 22711 San J~_mn Road. 11. Resolution No. 9581: Accepting grant of easement for roadway purposes from Shirley M. Hall; APN 342-1%088, 22711 San Jnan Road. 12. Acceptance of municipal improvements: Marianist Novitiate, 22655 Alcalde Road. 13. Acceptance of city project perfomled under contract: Handicap ramps with wheelchair detectors on Stevens Creek Blvd. at Stelling Road and at Mary Avenue, and at Stelling Road at Peppertree Lane, Project 95-107. (GAB Consmmfion) March 18, 1996 Cupertino City Council Page Vote Members of the City Co-ncil AYES: Bautista, Burnett, Chang, Dean, and Sorensen. NOES: None ABSENT: None ABSTAIN: None PUBLIC HEARINGS 14. Public hearing to consider the revocation or modification of a use permit pertaining to a restaurant/bar in the Cupertino Village Shopping Center. The restaurant/bar is known as Ola's Restaurant and Night Club and is located at 10905 N. Wolfe Road. (Continued from the March 4, 1996, meeting.) (a) Resolution No. 9582: Modifying the conditions of approval for use pe,,,it Application 4-U-85, Ola Hassan. Council had received copies of a letter dated March 15 from Mr. Richard Sutherland, Inc., legal counsel for Ola's Restaurant and Night Club. The letter requested a continuance for several reasons, including an opportunity to negotiate an early termination of the lease and to explore an offer to purchase the business. The City Attorney said that this was a special proceeding, and the holder of the permit was not present and was not represented. He recommended that Council did not grant the contin~_~_once request because of the health and safety of the community. Mr. Hassan was given notice, and had already been given one continuance. His rights have been protected and the Council may proceed to take action. Mayor Burnett said that he would consider the request for continuation to be denied. The City Clerk gave the oath to all those who planned to give testimony on this matter. The Community Development Director reviewed the staff report and explained that the purpose of the original 1985 use permit was to allow the expansion of the use and limit the hours of operation. The hearing tonight is to detemtine whether the use is detrimental to the health, safety and welfare of the conununity. There was also a previous hearing about disorderly conduct, especially after hours. On Febn~ary 1, 1996, there was an incident which involved a large group of people in the parking lot and at least 15 shots were fired, so the Community Development Director initiated the hearing. Staff recommended that the use permit not be revoked, but that hours of operation be changed to 6 a.m. to 11 p.m. Captain Wilson from the Santa Clara County Sheriff's Office said there is a high cost to __ police this business, at one time they needed 20 patrol cars to maintain control. There is a history of violence which he did not believe would change. Over 90% of the incidents have occurred after 1 I:00 p.m. March 18, 1996 Cupertino City Council Page 4 The City Attorney said that since neither the applicant nor his counsel was present, Council should proceed with public testimony. Mr. Steve Swenson, 1789 Lark Lane, Sunnyvale, was concerned that a mere modification of hours would not solve the problem and it was obvious that those involved have a disregard for the law. If they flee from police or there are shots fired, his neighborhood is only 300 yards away and may be impacted. The history of problems shows that Mr. Hassan is unable to control the situation. Mr. Hart, 829 Shetland Place, Sunnyvale, said his neighborhood had been notified of this meeting by Mr. Swenson. He was concerned for family members which return home late in the evening from work. Also, the Good Samaritan Church is nearby and hosts events such as sleepovers for the children. He felt that this continued use put them in jeopardy, and he asked that at least the liquor license be revoked. Reverend John Kraps, with Good Samaritan Church, agreed that there has been no improvement and he would support revoking the liquor license and closing the business at 11:00 p.m. Mr. Dick Rosemeier, Hewlett Packard, said there have been two occasions when bullets came onto their site. Weapons have been recovered and perpetrators arrested there. He - asked Council to take very strong action, and felt that limiting hours would not be sufficient. The Community Development Director said that Captain Wilson has been in contact with the Department of Alcoholic Beverage Control about designating this as a disorderly establishment and the hearing could possibly lead to revocation of their liquor license. The City Attorney suggested that interested citizens contact ABC to express their interest and ask for special notice of the hearing. The Comraunlty Development Director said that this was a legal nonconforming use, and the use permit allowed an additional 17 seats and changed hours of operation. The only way to stop the entire use is through an ABC revocation, or by holding a hearing and declaring the use a public nuisance. Baufista asked whether a limit of 10:00 p.m. would be defensible. The City Attorney said that he would find that acceptable because there is a precedent of two other businesses in the City which close at 10:00 p.m. The public hearing was closed. Sorensen felt that Council had bent over backwards to work with Mr. Hassan to rectify the situation and she was in favor of a 10:00 p.m. limit. She suggested that staff mouitor the progress of the ABC hearing and then consider a public nuisance hearing. The City Attorney said staff's recommendation was the least onerous because 11:00 p.m. is a baseline closing time for all businesses in the city. 10:00 p.m. is acceptable because March 1 g, 1996 Cupertino City Council Page 5 there are some other precedents. Captain Wilson said they were willing to give the I0:00 closing a try but would not gx~arantee that it would be sufficient to solve the problems. The City Manager noted that most of the problem events are large events which will no longer be booked there if the business closes at 10:00. Sorensen moved to approve resolution No. 9582 with the modification that hours shall be 6:00 a.m. to 10:00 p.m. effective immediately. She said the findings were those listed in the staff report, as follows: (1) The City Council conducted two previous revocation hearings on September 19, 1994, and November 21, 1995, to consider means to more effectively control the subject restaurant/bar to reduce disorderly conduct. In each instance, the City Council modified the use permit to impose more effective security measures. (2) Santa Clara County Sheriffs records demonstrate a continued pattern of unlawful activity resulting fxom the operation of the subject facility. The unlawful activity results in public safety problems and abno,iiially high policing costs. The public safety concern is heightened by a Feb~_ary 6, 1996, incident involving the discharge of approximately 17 rounds from a fires,re. (3) A Hewlett Packard representative submitted correspondence to the City describing the threat to their employees as a result of the operation of the Chang seconded and the motion carried 5-0. 15. Public hearing to review and update the Urban Water Management Plan for Cupertino Water Utility. (a) Resolution No. 9583: Adopting update of Urban Water Management Plan for Cupertino Water Utility. The Public Works Director reviewed the staff report. Mayor Bumett opened the public hearing. No speakers wished to be heard, and the public hearing was closed. Sorensen moved to adopt Resolution No. 9583. Dean seconded and the motion carried 5-0. 16. Public hearing to consider an amendment of Chapter 3.32.040 of the Cupertino Municipal Code regarding construction tax rate for industrial/office, commercial, and quasi-public buildings. (a) First reading of Ordinance No. 1723: "An Ordinance of the City Council of the City of Cupertino Amending Chapter 3.32 of the Cupertino Municipal Code to March 18, 1996 Cupertino City Council Page 6 Reduce the Tax Rate for Various Classes of Land Use Activities Regulated by the BQ (Qt~osi-Public) Zoning Dis~ct." Cowan reviewed the staff report and recommended that Council amend the construction tax by reducing the rate for civic and religious activities in the BQ zone by 50% of the tax rate that is applied to office/industrial and commercial buildings. Mayor Burner opened the public hearing. lVIr. Steve Rudd said the proposal to cut the rate in half is an excellent one, and he hoped that Council would consider reducing it even more. The affected groups pwvide vital community support, social outreach, youth development, etc. He suggested that the rate be set at 25% or 10% of the industrial rate. Mr. Jim Jordan, Senior Warden of St. Jude's Episcopal Church, said they appreciated staff's recommendation but it does not seem to be balanced with the interests of not-for- profit community building activities. He suggested a 25% rate would be more appropriate, which is still too high and which is 10 times what a residential use would be taxed. He suggested a rate that is 5% to 10% of the industrial rate. Mr. Edward Kwok, 19900 Price Avenue, said that this project was good for the community. He agreed that 25% was too high a rate, and is a burden to organizations such as this that rely on donations from private citizens. Mr. Joe Kennedy, Rector of St. Jude's parish, emphasized the variety of ways in which the church gives to the community. He said they deserved a break and would greatly appreciate what the Council could do to help them. The City Attorney noted that there is nothing which would restrict this rate to non-for- profits. The most important factor is the use of the property, not the type of organization that operates the building. Chang suggested clarifying the wording in paragraph B. Discussion followed regarding the intent of the ordinance and how to define the uses of the property. Bautista.said he would be in favor of reducing the rate to 25% of industrial rate only if it were restricted to non-profit organizations. Dean said that Council had made a sincere effort to help St. Jude's church many times, and reducing the tax to 50% would be significant step. Sorensen, Chang and Burner said they were comfortable with a 50% reduction. 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 first reading thereof. Motion carried 5-0. Sorensen moved to adopt a minute order directing the Planning Commission to omit the words "and comparable organizations for" from Section 19.64.050 B of the Municipal Code. Dean seconded and the motion carried 5-0. March 18, 1996 Cupertino City Council Page 7 -- UNFINISHED BUSINESS 17. Adoption of the Economic Development Plan. The Administrative Services Director reviewed the report and distributed a memorandum regarding the geographic information system (GIS) from the Director of Public Works. Discussion was held on whether the plan should be amended to make reference to the focus meeting that was held, high tech infrastructure, library/convention facility, timing of annual reviews and staffing reviews, changes to business retention goals, and whether it would be feasible to add citizen representation to the group, which will be meeting twice a month during business hours. Ms. Donna Lawler, President of the Chamber of Commerce, said they supported the plan. They agreed that there should be a 5-year revisitation of the goals as well as an annual review, and that staffmg should be reviewed every 6 to 12 months. She said they would like to be a part of the review process of the staff. Sorensen moved to adopt the report with the following amendments: Page 6, change the word "environment"; Introduction, make reference to the focus meeting that was held; Page 8, add policy that the program goals will be revisited every 5 years; Page 9, change to say that staffing will be revisited on an annual basis; and Page 12, add DeAnza College -- and other educational facilities to paragraph F of Business Retention. Baufista seconded and the motion carried 5-0. NEW BUSINESS 18. Approval of the Creekside Park Master Plan. The Parks and Recreation Director reviewed the staff report. Landscape architect Jay Beals reviewed the changes reflected in the final plan. These included the elimination of the enmmce to church property, larger play areas to accommodate swings, a reduction of the par course area, reorientation of the basketball area, more picnic areas, and reorientafion of the volleyball area. The number of parking spaces was reduced from 112 to 106 but there is also overflow parking available. Para Brule reviewed the plans for the structure and discussed changes in the architecture. Bautista calculated that the total cost of this project, including land acquisition, was $17 million. The improvement costs would be $1.5 million. He said that Kennedy School was completed and it didn't cost that much. Mr. Beals explained that this project has some features that Kennedy did not, including a street, parking lot, and traffic signals. Also, since this is a park and sports field it was important to address the drainage problems. The building at Kennedy was just a concession booth and restroom, and this one will have a neighborhood meeting room. Although there was a grant to offset the bridge costs, there is also a cost to provide access to the creek for heavy equipment. March 1 g, 1996 Cupertino City Council Page 8 The City Manager said that in 1989 Measure T, the utility tax, was passed for the purpose of placing a major park on the east side of Cupertino. Close to $2 million came from the Vailco Park improvement fund. The General Fund money, which would have conceivably been used for something else, would be about $1 million. Sorensen moved to approve the plan as presented and appropriate $g67,000 from the general fund reserves for the project. Chang seconded and the motion carried 5-0. 19. Recommendation from the Parks and Recreation Commission to establish a teen task force. The Parks and Recreation Director reviewed the report. Sorensen suggested that Council members be included on the task force. Both she and Chang were interested in serving. Dean cautioned that there have been other times when Council served on commissions and they were not always successful. Chang moved to authorize the Parks and Recreation Commission to develop a proposal for the fo,marion of a teen task force. Sorensen seconded and the motion carried 5-0. 20. Consideration of initiating a Planning Commission hearing regarding regulation of mobile vendors. The City Attorney reviewed his letter which was included in the backup material. Mr. John Statton, representing the Cupertino Chamber of Commerce, said that sometimes there are conflicts because the mobile vendors will park their carts in front of traditional merchants, or take up parking space that is needed by those merchants. Sorensen moved to direct the Planning Commission to initiate a hearing to consider a proposed ordinance regulating mobile vendors. Baufista seconded and the motion carried 5-0. ORDINANCES 21. Second reading and enactment of Ordinance. No. 1720: "An Ordinance of the City Council of the City of Cupertino Amending Section 17.16.010 of the Cupertino Municipal Code, 'Certain Signs Exempt From Permit Requirements' for the Purpose of Confom,ing the Code to the Bus Shelter Program Agreement and Amending Section 17.32.060 'Residential Real Estate Signs' and Section 17.32.070 'Sale. Rent or Leasing Signs' for the Purpose of Conforming the Provisions of the Municipal Code to California Civil Code Section 713 Allowing Real Estate 'For Sale' Signs to be Displayed Both on and Off Site." 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 carded 5-0. March 1 ~, 1996 Cupertino City Council Page 9 Sorensen moved and Dean seconded to enact Ordinance No. 1720. Motion carried 5=0. 22. Second reading and enactment of Ordinance No. 1721: "An Ordinance of the City Council of the City Council of the City of Cupertino Amending Section 1 of'Ordinance No. 2 by Rezoning Approximately 1.21 Acres from R1-10 to P (RES 5-10); Located at 10106-10132 Blaney Avenue (Application 12-Z-95).' 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. Sorensen moved and Dean seconded to enact Ordinance No. 1721. Motion carried 5-0. 23. Second reading and enactment of Ordinance No. 1722: "An Ordinance of the City of Cupertino, Amending Title Two, Title Three, Title Five, Title Six and Title Nine of the Cupertino Municipal Code for the Purposes of Conforming the Provisions of the Code to the Requirements of State and Federal Law, Conforming the Provisions of the Code to be Consistent with Present City Practices, Eliminating Redundant and Obsolete Provisions, Clarifying Old Provisions With New Language, and Consolidating and Streamlining Various Provisions 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. Sorensen moved and Burner seconded to enact Ordinance No. 1722. Motion carried 5-0. STAFF REPORTS 24. Recommendation from Bicycle and Pedestrian Advisory Committee regarding installation of bike lanes on Stevens Creek Boulevard between Stelling Road and DeAnza Boulevard. The Public Works Director reviewed the staff report. He explained that the Chevrolet dealership was investigating a way to relocate the on-street parking to allow a bike lane to be installed. Mr. John Statton, representing the Cupertino Chamber of Commerce, said that although Council is trying to balance the needs of bicyclists and business owners, it is vitally important to retain the specific type of retailing used by the auto dealership, which requires on-street parking. He suggested that the bicycle lane be re-routed onto to Alves. Chang moved to support the installation of bike lanes on Stevens Creek Boulevard between Stelling Road and DeAnza Boulevard. Bumett seconded. Mrs. Barbara Weiss said that she and her husband owned the dealership, an they had employed an engineer to see how many parking spaces would fit if a bike lane were March 18, 1996 Cupertino City Council Page 10 installed. She said they are well aware that many people shopping for a car want a "neutral place "to park, and no decision has been reached yet. Chang said he would prefer to continue this matter until more infoiiisation is available about the feasibility of the bike lane in this area. He withdrew his motion. COUNCIL REPORTS Dean said a committee is being formed which will include members from the City Council and staff to investigate other alternatives for dealing with graffiti. They would review options and report back to the City Council Sorensen said she was very impressed by the refurbished Anderson House on Phil Lane, and that the historical plaque was very beautiful. She commended the students of Hyde Jr. High School for their mock city council meeting. She said that the Cupertino Historical Society's luncheon and presentation "Field of Dreams" was excellent. Chang reported that the Toyokawa Sister City Committee is exploring the possibility of paid parking at DeAnza College for this year's Cherry Blossom Festival. Mayor Burnett noted that the Santa Clara Cities Association had supported SB1590 and AB2828. The City Manager reviewed the recommendations of the Legislative Review Committee, as follows: Support AB 2228 (Mazzoni); AB 2406 (Villaraigosa); AB 2797 (Aguiar); AB 2828 (Sweeney); SB 1865 (Craven); and SB (2072 O'Connell), educational revenue au~a~entation fund recapture. Support SB 80 (Monteith) commission on state mandates. Support AB 3357 (Ackerman), municipal liability, wild animals. Support SB 1412 (Johnson), clarifying conflict of interest rules. Support AB 2125 (Figueroa and Cuneen), child abuse. Dean moved to approve the recommendations of the Legislative Review Committee. Chang seconded and the motion carried 5-0. CLOSED SESSION At 10:15 p.m. Council recessed to a closed session in Conference Room A to discuss labor negotiations pursuant to Government Code Section 54957.6, and to hold an urgent closed session pursnant to Government Code Section 54956.8, the Dean Witter lawsuit. At 10:25 p.m. Council reconvened in open session. The City Attorney announced that Council had directed staffto proceed along the lines discussed in both closed sessions, and that no action was taken. March 18, 1996 Cupertino City Council Page 11 ADJOURNMENT At 10:26 p.m. the meeting was adjourned. Smith City Clerk