CC 01-16-96 CC-915
MINUTES
Cupertino City Council
Adjourned Regular Meeting
January 16, 1996
6:05 P.M. - Discussion of economic development program.
All Council members were present as well as City Manager Don Brown, Deputy City Clerk
Roberta Wolfe, Director of Administrative Services Carol Atwood, Public Infommfion Officer
Donna Krey, and Director of Community Development Bob Cowan.
The Director of Administrative Services reviewed the amended draft pmposai of the City of
Cupertino Economic Development Plan. She described the Mission Statement, Goals and
Objectives and Program and Strategies.
Bautista said establishing goals and objectives is the first order of business and said they needed
'- to reach Chamber/Council consensus on the process. He said he had changes and additions to
the objectives. Changes included putting more emphasis on attraction of businesses and
increasing sales tax, reaching a balance between retail and conunercial, and targeted marketing.
He said they need to get the process in place, then talk implementation.
Sorensen suggested having a half day Council and Chamber Board session.
Donna Lawler, Chamber of Commerce President, suggested a half-day mini-economic summit
which would include commercial brokers. A list of those the Chamber would like to invite will
be submitted to Council; they would like to conduct the meeting as soon as possible.
John Statton, Chamber of Commerce Executive Director, said this should be a focus group.
They need broad input with Council leadership.
Lawler said there should be 20-25 participants. She'complimented staffon the proposal.
Council discussed the following:
· Meeting format and focus.
· Need to move quickly and establish a liaison with potential businesses (possibility of
.... JavaSoft moving here).
· This would be an official City Council meeting, open to the public and subject to Brown Act
requirements.
J'ann~_ry 16, 1996 Cupertino City Council Page 2
· Need to know regional economic climate and have a broad-based buy-in by residents and
business.
· Formulating problems/programs and strategies into objectives.
Statton suggested a four-hour session with two hours focused on goals and objectives and two
hours on specific issues. He said the problem is evident.
Atwood continued with the staff report.
Discussion following regarding concerns about staffing (specific allocation of time and
responsibility, who reports to whom, third party support). Atwood said staff would like one or
two Council members on the economic development team.
Bautista said he was open to spending more and did not think they ought to go into it with the
assumption they have to do it within current restraints.
The Chamber of Commerce will send their list of proposed participants to staff.
RECESS: 6:45-6:55 p.m.
PLEDGE OF ALLEGIANCE
Mayor Bumett led the Pledge of Allegiance and called the meeting to order in the City Council
Chambers, 10300 Torte Avenue, Cupertino, at 6:55 p.m.
ROLL CALL
Council members present: John Bautista, Michael Chang, Waily Dean, Lauralee Sorensen and
Mayor Don Burnett. Council members absent: None.
Staff present: City Manager Don Brown; Deputy City Clerk Roberta Wolfe; City Attorney
Charles Kilian; Administrative Services Director Carol Atwood; Community Development
Director Bob Cowan; Director of Parks and Recreation Steve Dowling; Public Info~;,ation
Officer Donna Krey; Planner II Vera Gil; and Public Works Director Bert Viskovich.
CEREMONIAL MATTERS - PRESENTATIONS
Mayor Burnett presented a special commendation to Cory Narog, Jr., for his assistance in the
rescue of an injured motorcyclist at Metcalfe Motorcycle Park.
POSTPONEMENTS - None.
ORAL COMMUNICATIONS - None
January 16, 1996 Cupertino City Council Page 3
CONSENT CALENDAR
Chang moved to approve the items on the Consent Calendar, Sorensen seconded and the motion
carried 5-0.
1. Resolution No. 9535: Accounts Payable, December 22, 1995.
2. Resolution No. 9536: Accounts Payable, December 29, 1995.
3. Resolution No. 9537: Accounts Payable, January 5, 1996.
4. Resolution No. 9538: Payroll, December 29, 1995.
5. Resolution No. 9539: Authorizing destruction of records.
6. Minutes of Jan, ary 2, 1996, adjourned regular meeting.
7. Alcoholic Beverage License application for Tung Kee Noodle House, 20735 Stevens
Creek Blvd., Suite A and B.
8. Resolution No. 9540: Authorizing the filing of a claim with the Metropolitan
- Transportation Commission for allocation of Transportation Development Assistance
Funds for Fiscal Year 1996-97 for installation of pedestrian sidewalk on Foothill
Boulevard.
9. Resolution No. 9541: Authorizing the filing of a claim with the Metropolitan
Transportation Commission for allocation of Transportation Development Assistance
Funds for Fiscal Year 1996-97 for Installation of pedestrian sidewalk and handicap ramps
on McClellan Road and on Stevens Creek Boulevard
10. Resolution No. 9542: Approving fund plan for the improvement of frontage at 10250
Scenic Boulevard; Developer, Marc McGee; Authorizing the City Engineer to sign the
final plan; and authorizing execution of agreement.
11. Resolution No. 9543: Accepting grant of easement for public utilities from Marc McGee
and Kristi A. Mailhot; APN 357-08-013, 10250 Scenic Boulevard.
12. Resolution No. 9544: Accepting grant of easement for roadway puxposes from Marc
McGee and Kristi A. Mailhot; APN 357-08-013, 10250 Scenic Boulevard.
13. Resolution No. 9545: Accepting quitclaim deed and authorization for underground water
rights from Marc McGee and Kristi A. Mallhot; APN 357-08-013, 10250 Scenic
Boulevard.
14. Resolution No. 9546: Approving final plan for the improvement of frontage located at
20850 Stevens Creek Boulevard; Developer, Allan G. Byer and Marian Byer; authorizing
the city engineer to sign the final plan and authorizing execution of agreement.
January 16, 1996 Cupertino City Council Page 4
15. Resolution No. 9547: Accepting a grant of easement for sidewalk purposes from Allan
(l. Byer and Marian Byer; Located at 20850 Stevens Creek Boulevard; APN 359-08-23.
16. Resolution No. 9548: Accepting a grant of easement for public utilities from Allan G.
Byer and Marian Byer; Located at 20850 Stevens Creek Boulevard; APN 359-08-023.
17. Resolution No. 9549: Adopting schedule for Citizen Participation for Twenty -First
Program Year (1996-97) Community Development Block Grant (CDBG) Program.
18. Resolution No. 9550: Authorizing execution of lease and caretaker agreement between
City of Cupertino and Friends of Stevens Creek Trail for McClellan Ranch house.
19. Resolution No. 9551: Rescinding Resolutions 5663 and 8209 relating to disbursement of
cable television franchise fee funding.
20. Resolution No. 9552: Granting electric underground easement to Pacific (las & Electric
Company.
Vote Members oft he City Council
· - AYES: Bautista, Burnett, Chang, Dean, and Sorensen.
NOES: None
ABSENT: None
ABSTAIN: None
ITEMS REMOVED FROM THE CONSENT CALENDAR - None.
PUBLIC HEARINGS
21. Public hearing regarding annual renewal of bingo permits: (a) St. Joseph of Cupertino
Church, 10110 North De Anza Boulevard; Co) International Order of Odd Fellows,
Cupertino Lodge #70, 20598 Homestead Road.
The Deputy City Clerk reviewed the staff report.
Dick Caldwell, representing St. Joseph Church, told Council how the proceeds from the
bingo game benefit students at the church's school.
Soreusen moved to renew the bingo pcm,lts for St. Joseph of Cupertino Church and the
International Order of Odd Fellows lodge. Chang seconded and the motion carried 5-0.
_ 22. Public hearing to consider amendments to Chapter 19.48 of the Cupertino Municipal
Code regarding the procedure for modification of a definitive development plan in a
Planned Development Zone, and Chapter 14.18 of the Cupertino Municipal Code
regarding tree removal procedure. The project is located citywide. Environmental
.~anuary 16, 1996 Cupertino City Counc~! Page 5
Determination: The Planning Commission recommends the granting of a negative
declaration.
(a) First reading of Ordinance No. 1715: "An Ordinance of the City Council
of the City of Cupertino Amending Chapter 14.18 of the Cupertino
Municipal Code Regarding Tree Removal Procedure and Chapter 19.48 of
the Cupertino Municipal Code Regarding Procedure for Modification of a
Definitive Development Plan in a Planned Development Zone."
The Community Development Director reviewed the staff report and told Council
members that there is no system in place for notifying owners of specimen trees that they
need to contact the City prior to pruning or cutting them. There needs to be education in
this area. He said there are six or seven heritage trees in the City which are marked with
metal tags. There are many specimen trees, especially in the hillside areas.
The Public Information Officer informed Council that there had been a recent article in
the Cupertino Scene on this subject and that such articles are rerun periodically to keep
people informed.
The Community Development Director said the intent of section 19.48.110,
modifications to a definitive development plan, is to have square footage as a trigger
- point at which the Council would become involved in considering a minor amendment.
He said the wording needs to be changed to clarify the intent. In the case of a remodel of
5,000 sq. ft., it would not be reviewed unless there was a new use.
Dean moved to approve the application per Planning Commission Resolution No. 4660.
Sorensen seconded and the motion carried 5-0.
Sorensen moved to grant a negative declaration. Bautista seconded and the motion
carried 5-0.
The Deputy City Clerk read the title of the ordinance. Sorensen moved and Baufista
seconded to read the ordinance by tire only, and that the Deputy City Clerk's reading
would constitute the first reading thereof. Motion carried 5-0.
PLANNING APPLICATIONS
23. Application Nos. 6~TM-94, 10-U-89, 8-U-94 (Mod.), 6-TM-95 and 18-EA-95, Citation
Homes Central: Request to delete conditions regarding common area including the
following City Council Action Letters: Condition No. 1 of Application No. 6-TM-94
dated October 5, 1994; Condifon No. 15 of Application No. 10-U-89 dated August 17,
1989; Condition No. 1 of Application No. 8-U-94 (Mod.) dated October 5, 1994;
Condition No. 1 of City Council Action Letter dated September 7, 1995; Condition No. 9
of 8~U-94 (Mod.) dated October 20, 1995; and Condition No. 3 of 6-TM-95 dated
October 16, 1995. Recommended for denial. Environmental Detel'lxfination: The
Planning Commission recommends the granting of a negative declaration. (Continued
from the meeting of January 2, 1996.)
1anuary 16, 1996 Cupertino City Council Page
The Director of Community Development reviewed the staff's recommendation and
showed a map regarding the relationship of the subject property to other parks in the area,
including Portal, Memorial and two located in Sunnyvale. Another map showed areas
where residents were within one-half mile walking distance from a neighborhood park.
He said staff supports deletion of condition 15 but the Planning Commission does not.
The City Attorney said he had received a fully executed mutual release and settlement
agreement which had been executed by the Portofmo Villas Homeowners Association,
the Corsica Homeowners Association (which is dominated by Citation, the developer at
this time), and Citation. The parties agreed that should condition 15 be deleted there
would be an agreement with respect to their lawsuit involving a dismissal of the lawsuit
as well as the use by only Portofino Homeowners Association of the swimming pool area
and that the Corsica Homeowners Association would have no private open space other
than their yards. He said this was the agreement that the City was waiting for and was
why this matter had been continued to this meeting. He said he had reviewed the
agreement and would approve it as to for-iii.
In answer to Council's questions, Cowan described the areas designated by the numbers
I, II and III on the map. He said for purposes of this discussion, Citation and Corsica are
the same entity.
Jim Sullivan, 404 Saratoga Avenue, representing the applicant, answered Council's
questions. He said the wail between the phase II apartment site and the owner occupied-
homes in phases I and III is scheduled to be put in and they have received approvai to do
so. However, they have done so with understanding that they are leaving out two panels
which could serve as access points if Council does not agree to delete condition 15. The
pool and greenbelt area are owned by the Portofino Homeowners Association. The pool
complex, which includes a pool, a spa and a cabana room, has a locked fence around it.
The greenbelt area currently is open on the east and west sides and is not included in the
settlement agreement as far as g~_~aranteeing access.
Kilian said the agreement refers to Portofino recreation facilities which are to be for the
exclusive use of the Portofino Homeowners Association.
Sullivan said it was not their understanding at the beginning that all recreation facilities
would be shared. He said they have worked with staff to try to come to an agreement
between the Corsica Homeowners Association, Portofino Homeowners Association and
Citation Homes. He said they felt that the agreement the City Attorney has is basicaily
the fruits of six months labor and they are pleading with Council to adopt staff's
recommendation and delete reference to condition 15. Sullivan pointed out that the back
yards are larger than was originally intended. He said that the previous developer and
Citation will have paid over $2.3 million in in-lieu park fees. No credits have been given
for the recreational facilities which have been or will be built. The City can use this
money to improve park facilities for use of the residents in the project. He said they
have attempted to disclose to each homeowner in Corsica when they purchased their lots
that there is a possibility that there would be no recreational facilities available to them.
lammry 16, 1996 Cupertino City Council Page 7
Given these disclosures, he said homeowners have expressed that they would prefer to
have lower homeowner association dues. Their primary reason for moving into a new
home is not to have access to a particular pool area. He said it is their, feeling that having
a cross access between the aparhnent site and the owner-occupied homes is not in the best
interest of the Corsica Homeowners Association nor the apartment renters. Sullivan said
people in areas I and III are part of the Corsica Homeowners Association.
Sullivan explained that the Corsica Homeowners Association is a corporate entity that
acts as the overseeing regulator of each individual homeowner. He said there have been
29 closings within the Corsica Homeowners Association and an additional 12 sales that
have not yet closed escrow. Each corporation has a board, each board has three members
who at this time are employees of Citation Homes. When over .50% of the properties are
purchased, individual homeowners' will be on the board. In regard to the settlement
agreement, independent legal counsel was sought. Counsel came up with an independent
detemxination that it was in the best interest of Corsica Homeowners Association to have
condition 15 deleted. He said the sales agent has been in contact with those who have
bought homes and they have two prime concerns: 1. Keep homeowners association dues
low, and 2. Have no cross access between the homes and the future apartments on phase
II.
Sullivan said the vote for the Portofino Homeowners Association was directed at one
-- particular fact in the settlement agreement--the sale of a potion of the common area to
Citation Homes.
Sullivan said the homeowners fees for access to Phase I area (the pool and greenbelt area)
would increase approximately $20-25 a month. Because there are more recreational
facilities on the Phase II site and more maintenance is required, the increase would be
between $40-50 per month. Homeowners would not be able to opt out of paying the
additional dues even if they didn't use the facilities.
Cowan said the Planning Commission approved the gate plan with the condition that the
gates go in if condition 15 is retained. If the condition is deleted the wall would be solid.
Sullivan said there would be no cost to homeowners until the recreational facilities were
built. In answer to Council questions, he said that in the first 18 units that were sold there
were 23 children between the ages of infancy and 16. There will be 80 units in the
Corsica Homeowners Association and 36 in Portofino Homeowners Association.
Regarding the condition of the greenbelt and what activities could take place there,
Sullivan said the previous owner finished 2/3 of the area and Citation is finishing the
landscaping. He said he would not consider it a prime active recreation area.
Tim Robertson, 20395 Via Volante, president of the Portofino Homeowners Association,
said it has taken a great deal of time to come to an agreement. He said the Portofmo
recreational facilities are defined in Item G of the agreement and include the recreational
lawn, cabana, pool and spa. Thus, all Corsica homeowners and apartment owners would
be excluded from access or maintenance fees for the lawn area. The agreement refers to
January 16, 1996 CuperHno City Council Page
the whole triangular area. Robertson said that is what they have title to and their CC&Rs
are very clear.
Robertson said that one of the concerns was that the pool can support only 44 families
and there is a potential of 128 families. There had been some discussion of adding a pool
facility but there were concerns on the part of existing homeowners. Robertson said that
when discussion of condition 15 began, from their perspective the entire property was a
cohesive unit. As time has gone on it has been separated into three separate projects. He
stated that from their perspective this agreement is the clearest and cleanest was to
separate the three distinct developments.
Larry Okida, 21683 Terrace Drive, saleSPerson for Corsica, read the disclosure statement
that had been signed by all who have purchased. He said people are paying about $2,$00-
3,000 a month in mortgage payments. Buyers have expressed that it is important to them
to have access to Cupertino schools and they were not much concerned about recreational
facilities. Okida said he would anticipate a homeowners association fee of about $100 a
month now, dropping to about $80 when all the units are sold.
Sullivan answered questions about splitting the homeowners fees for using only the green
area. He said it had taken them six months to work out this agreement and he could make
no commitment at this time.
Frances Wiuslow, 20405 Via Volante, vice president of Portofmo Homeowners
Association, expressed gratitude to staff and Council member Dean. She said she thought
they had come up with an agreement that is fair to everybody. Wiuslow commented on
the Planning Commission actions and repeated that the City has received $2.3 million in
in=lieu park fees. She said the greenbelt and pool provide the amenity of open space that
benefits everyone. The pool and greenbelt were paid for by Mariani. The original 22
owners paid for a significant portion of it as part of the price for their homes. It was
deeded to them by Mariani at the time of bankruptcy. Since then all fees, taxes,
insurance, etc. have been paid by the homeowners. Neither the City nor Citation has
contributed any money and their private ownership had been respected. Winslow said if
the Council's real concern is to create more public parks in the area, the association
would support them in that effort and have ideas they would offer as to the use of the $2.3
million.
Sullivan thanked City Council and pointed out this is a unique situation. He asked
Council to adopt staff's recommendation and delete condition 15 which was amended
because of the litigation that was going on between Citation Homes and Portofino. The
settlement agreement is the basis for ending that litigation which is ongoing and
becoming expensive for both parties. The settlement agreement has been executed.
Council discussed various plans for making open space accessible for everyone in the
project. Kilian clarified that the agreement is subject to Council deleting condition 15.
He referred to page 23-47 of the staff report and said the condition listed there is what is
currently in effect. If Council does nothing that will remain in effect.
January 16, 1996 Cupertino City Council Page 9
'" Dean and Sorensen indicated they would vote to delete condition 15. Chang said he was
not ready at this time to vote for deletion of the condition. Chang, Burner and Bautista
expressed concerns about the children in the development having adequate recreational
facilities. Burnett said he could not vote to eliminate condition 15 with the requirements
that have been placed by Portofino.
Cowan reported that the two parties had infoisised him that they had additional comments
to make.
Sullivan said he had confmited with Robertson that he does not have the power to bind
his association to allow Corsica to use the greenbelt area. Robertson said it was part of
the CC&Rs and would have to go to a vote of the entire association. Sullivan suggested
that there could be a motion made to delete condition 15 contingent on that vote
occurring and if it did not occur, then condition 15 would remain. This is a new item and
the association has not had time to digest that infomiation.
Kilian said it would take too long for the vote on CC&Rs to occur, probably 2-3 months.
He suggested if Council wished to explore that possibility they take the matter off the
calendar and re-agendize it. He said the affected parties would appreciate direction from
Council.
- Discussion followed regarding conditional access to the greenbelt in the triangle that
Portofino Homeowners Association owns.
Sullivan stated that it is their objective not to have any cross access between the
apartments and single-family homes.
Kilian said they are trying to clarify the issue so they don't have to revisit it. He said it is
dear that any settlement that is contemplated would not involve use of the triangle piece
by the apartments.
Following further discussion of Council members' proposals, Kilian suggested that
Council take the matter off calendar to allow the parties to try to reach an agreement, or
deny it.
Sorensen moved to remove the item from the calendar. Baufista seconded and the motion
carried 5-0.
NEW BUSINESS
24. Consideration of priorities for Twenty First Year (1996-97) funding cycle of the
Community Development Block Grant (CDBG) Program.
The Planner II reviewed staff's recommendations. She described eligible activities,
CDBG national objectives, and public service activities. Sorensen asked for
consideration as a public service activity of victims of domestic violence who might be
trying to get out of the cycle and get into affordable housing.
January 16, 1996 Cupertino City Council Page 10
Sorensen moved to reaffirm priorities for both the 1996-97 and 1997-98 funding cycles
by continuing the activities outlined in the staff report, and to reaffirm the procedures
outlined in the staff report to continue to streamline the CDBG funding process. Dean
seconded and the motion carried 5-0.
25. Nomination of representative to the North Central and Northwest Flood Control Zone
Advisory Committees and the Santa Clam Valley Water Commission.
The Director of Public Works presented the staff report.
Dean nominated Mayor Bumett and Director of Public Works Viskovieh as Cupertino's
representative and alternate and directed staff to notify the Santa Clara Valley Water
District. Sorensen seconded and the motion carried 5-0.
26. Presentation of the 1994/95 audit report by Grant Thornton, LLP.
The Director of Administrative Services introduced Kuni Yoshioka, partner in the audit
fimx, and said he had reviewed the report with the Audit Committee.
Mr. Yoshioka talked about the audit process and some of the difficulties encountered. He
said that after reviewing the financial statements they made very few recommendations
for changes. Also, they recommended no adjustments to the records at year end. They
gave an unqualified opinion and during the course of the audit were not aware of any
material non-compliances with any rules and regulations, including the investment
portfolio. He said they concurred with the prior period adju~h~aents that had been made.
Mr. Yoshioka said the management comments the firm had made were reviewed by staff
and with the Audit Committee. He said all their recommendations will be implemented
either next year or within the next few years.
27. Consider adoption of revised annual investment policy.
The Administrative Services Director reviewed the proposed policy and explained the
changes that have been made to conform to provisions of SB 564 and SB 866 which
went into effect January 1.
Sorensen moved to adopt the investment policy as recommended by staff with the
addition that the statement of compliance with the investment policy be explicitly set
forth. Chang seconded and the motion carried 5-0.
WRITTEN COMMUNICATIONS
28. Correspondence from Stephen S. Rudd regarding St. Jude's Episcopal Chureh, requesting
interpretation or amendment of the City Construction Tax ordinance.
The Community Development Director reviewed the staff report.
Sanuary ! 6, ! 996 Cupertino City Counci| Page 11
· '- Stephen Rudd, 10455 Torte Avenue, said their basic point is that they believe it is bad
civic policy to be imposing construction tax on non-profit religious corporations who are
building structures for religious use. He said the church is non-profit and doesn't charge
fees for selling services or products; they don't have a mechanism to raise revenue to pay
these taxes In addition, they believe that all churches in Cupertino are engaged in social
services outreach activities of the type that are supported by the City and that are
deserving of support and exemption fxom this tax. He described the activities conducted
at the church including the rotating shelter program and girl and boy scouts. He said they
also share the facility with the Holy Light Mission and a Korean congregation, the Full
Gospel Mission Church. He said he saw no more reason to tax churches than to tax
schools. He asked Council to repeal the tax as it applies to non-profit agencies or reduce
it to the same rate that is charged for residential construction. He said St. Jude's has paid
all other fees which amount to $12,000. They should not be taxed at the same rate as
profit-making and commercial organizations.
Syd Jacobsen, chair of the building committee for St. Jude's, said they have worked to
maintain the orchard setting. He described the process and history. He said the church
has incurred significant costs. The construction tax was not mentioned early in the
process and he thinks it is an unfair amount.
Father Joseph Kennedy, Rector of St. Jude's, talked about the church's community
involvement, including nine support group meetings, the respite day care for seniors and
teams that work at the Julian Street shelter. These and other activities are ail community
outreach programs. He said he was not appealing just as a religious non-profit group, but
in the spirit of the program. In addition, he said they have had $75,000 of unexpected
expenses and are against the wall financially. He appealed to Council to amend the
ordinance.
The Community Development Director infom,ed Council that private schools pay the fee
but public schools cannot be charged. The list of those non-profits organizations who
have been charged the fee goes back to 1990. He said the increase would apply to new
space only.
The City Attomey said if Council wanted to amend the ordinance they should not address
it just to churches but to anything a BQ zone. In order to make the decision they would
probably wish to know what the financial impact would be. In answer to Council
questions, he said they couldn't waive the fee, it is a matter of amending the ordinance.
Because the residential rate is per dwelling unit, Council might want to set a different
dollar amount per sq. i~. and direct staff to come back with what the costs would be. It
should not apply just to religious organizations. The City Attomey read a list of types
of activities defined as BQ. He said they would have to decide what to do about people
who have already paid. It is not just simply waiving it for one organization. He said
making exceptions because an applicant says they do a lot of work in the community is
not appropriate. Either the ordinance should be changed or if there has been an error, it
should be corrected.
January 16, 1996 Cupe~no City Council Page 12
Discussion followed regarding what the impact would be on city finances and the
possibility of paying a portion of the water hookup fee in exchange for payment of the
construction tax. Council was infom~ed that the church pays property tax on the orchard
portion of their property.
Council discussed looking at remedies that might save non-profit organizations money
and directing staff to compile information on which applicants in BQ zones have paid
construction tax and how much. The City Manager said this information would show that
eliminating BQ applicants from the construction tax would not have a significant impact
on city finances.
Council members asked what other cities are doing regarding construction tax.
Discussion followed regarding the possibility of refunding the tax to those who have paid
in the past or deferring payment until occupancy.
The City Manager said the amount of construction tax is directly related to the size of
building. He said he would not recommend a staggered rate. By consensus, Council
stated a preference for reducing the square footage rate rather than deleting the tax.
The City Attorney said the City has no legal obligation to repay those who have paid the
tax previously.
Dean moved to direct staff to (1) meet with church representatives to discuss the hydrant
and fee issues and make sure everything has been done properly, and (2) look at
modifying the construction tax ordinance for BQ zoning to apply a lower tax rate.
Sorensen seconded and the motion carried 5-0.
Kilian advised thc applicant that tax measures take effect inuncdiately so an amendment
shouldn't delay occupancy.
STAFF REPORTS
The Public Works Director announced that the widening project at DeAnza at 280 had been
accepted.
COUNCIL REPORTS
Burnett reported that the Transportation Authority has passed the recommended legislation to
enact the Authority and discussed the deletion of the reqUirement for encroachment permits when
the state does anything in a city.
Sorensen reported that some of the groups who might donate money for the Fourth of July
celebration were waiting to hear if the city was going to support the community parade. By
consensus, Council favored supporting the July 4 celebration.
CLOSED SESSION
. January 16, 1996 Cupe~no City Council Page 13
At 9:45 p.m. Council recessed to a closed session regarding pending litigation pursuant to
Government Code Section 54956.9(a) - City of Cupertino v. Dean Witter Reynolds, et al., Santa
Clam County Superior Court Case No. CV746356.
At 9:53 p.m. Council re¢onvened in open session and the City Attorney announced that Council
authorized expenditure of additional funds as determined in closed session for retaining
independent counsel in this matter.
Bautista moved and Sorensen seconded to extend fees to counsel in the amount described in the
closed session. Motion carried 5-0.
ADJOURNMENT
At 9:55 p.m. the meeting was adjourned.