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CC 11-03-97 CC-955 MINUTES Cupe~ino City Council Regular Meeting November 3, 1997 PLEDGE OF ALLEGIANCE At 6:45 p.m. Mayor Bautista called the meeting to order in the Council Chambers, 10300 Torte Avenue, Cupertino, California, and led the Pledge of,Mlegianee. ROLL CALL City Council members present: Mayor John Bautista, Vice-Mayor Michael Chang, Councilmembers Don Bumett, Wally Dean, and Lauralee Sorensen. 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; Parks and Recreation Director Steve Dowling; Public Infoi-mafion Officer Donna Krey; and Public Works Director Bert Viskovich. CEREMONIAL MATTERS - PRESENTATIONS Proclamations recognizing Optimist Clubs' Youth Appreciation Week. Dennis Whittaker and Noel Peatamn accepted the proclamations on behalf of the Optimist Clubs. Presentation of Certificate of Achievement for Excellence in Financial Reporting. Carol Atwood accepted the award which was presented by the City Manager. Council member Bumett infott,.ed those present that City Manager Don Brown had been named a Friend of Education by the Board of Trustees of Fremont Union High School District. Council member Chang stated that Parks and Recreation Director Steve Dowling had recently been honored by Rotary with the Paul Harris Fellow award for service to the community. POSTPONEMENTS - None. WRITTEN COMMUNICATIONS - None. ORAL COMMUNICATIONS Robert Levy, 10802 Wilkinson Avenue, spoke regarding the lease of the Cupertino Water Utility system to San Jose Water Co. He said that the letter received by water customers from the city on July 24, implied that the Cupertino utility was operating at a low cost level and the rates charged them was not fair to their fellow citizens. Most of the customers of the Cupertino utility November 3, 1997 Cupertino City Council Page 2 came into thc city at the time a portion of San Jose was annexed, so blame could be placed on the council at that time for not acquiring the pipes and mains. He said contrary to the reasons given by the council members who voted for the lease, the real reason was for a profit as stated by Mr. Viskovich at the September 2 meeting. He talked about a $5 service charge on ail the bills this month, and said that would caiculate out to $5 million that San Jose Water will make even without any increase in rotes. Mr. Levy said he was also concerned at the speed with which the measure passed, and that this item should have been deferred until the new city council came in as severai other matters were. He said council members had forgotten who they are working for. His October bill was $17, but others had told him their bills were higher. Mr. Levy distributed copies ora bill to council and staff members and said he had been info~,,ed by the court that this was the first step he must take. Mayor Bautista responded, saying he disagreed completely with Mr. Levy. As indicated earlier, no action could be taken on any item not on the agenda. Administrative Services Director Carol Atwood clarified that the $5 charge was a meter charge, not a service charge, and Cupertino had charged it as well. The only difference was in how it was shown on the bills. Public Works Director Viskovich added that customers are still being billed at Cupertino rates until January. Arthur Rauser, 21091 Rainbow Drive, said he is trying to sell his house, but some trees and bushes had been cut down and the debris left behind, partly on his property. He wanted to f'md out who to contact about the problem and said there is a problem with rats as well. The Public Works Director said staff will follow up with Mr. Rauser. CONSENT CALENDAR Dean moved to adopt the items on the Consent Calendar with the exception of Item 14 which had been removed by staff. Chang seconded and the motion carried 5-0. 1. Resolution No. 9990: Accounts Payable, October 17, 1997. 2. Resolution No. 9991: Accounts Payable, October 24, 1997. 3. Resolution No. 9992: Payroll, October 17, 1997. 4. Approvai of minutes of the regular meeting of October 20, 1997. 5. Resolution No. 9993: Approving change order No. 1 for Median Modification, Stevens Creek Blvd. at Stelling Road, Project 97-105. 6. Resolution No. 9994: Approving change order No. 1 for Pavement Restoration, Project No. 97-101. 7. Resolution No. 9995: Approving change order No. 7 for Creekside Park Improvements, Project 96-9208. November 3, 1997 Cupertino City Council Page 8. Acceptance of City project performed under contract: Pavement Restoration, Project 97- 101 - O'Crrady Paving 9. Acceptance of municipal improvements performed under contract: Alcalde Road & Foothill Blvd. - E & H First Family Limited Partnership (Emily Chen) 10. Resolution No. 9996: Authorizing execution of agreement with Liang Lee, Frank Seng Fat Liong and Easy Fortune Investment & Development L.L.C., 10066 Byme Avenue; APN 357-16-021. 11. Resolution No. 9997: Accepting grant of easement for roadway purposes from Liang Lee, Frank Seng Fat Liong and Easy Fortune Investment & Development L.L.C., 10066 Byme Avenue, APN 357-16-021. 12. Resolution No. 9998: Accepting quitclaim deed for underground water rights from Liang Lee, Frank Seng Fat Liong and Easy Fortune Investment & Development L.L.C., 10066 Byme Avenue, APN 357-16-021. 13. Resolution No. 9999: Authorizing execution of agreement with Hewlett-Packard Company; office building - Bldg. 45; 11000 N. Wolfe Road, APN 316-07-043. 14. Resolution No. 10000: Approving the final map and improvement plans of Tract 8998; 11350 & 11354 So. Stelling Road, APN 362-25-26 & 27; authorizing execution of agreement; Kent William & Sandra Jean Chadd Jones and Steven R. & Kimberly A. Zankieh. (Removed from agenda.) 15. Resolution No. 10001: Declaring weeds growing on certain described property to be a public nuisance and setting hearing for objections to proposed removal. 16. Resolution No. 10002: Fixing employee's contribution under the Meyer-Geddes State Employees Medical and Hospital Care Act. 17. Resolution No. 10003: Amending the rules on conditions of employment and retitling said rules to the Administrative Rules and Regulations of the Personnel Code. 18. Monthly Treasurer's and Budget Report - September, 1997. 19. Resolution No. 10004: Setting date for consideration of annexing area designated "Dolores Avenue 97-04", property located on the north side of Dolores Avenue between Orange Avenue and Byme Avenue; approximately 0.912 acre, Crosswhite (APNs 357- 14-025 & -026). 20. Request from Senior Gift Scout Troop 676 for waiver of fees for table space at the Cupertino Parks and Recreation department Holiday Craft Faire at the Quinlan Community Center on November 14 and 15. November 3, 1997 Cupertino City Council Page 4 21. Review of application for Alcoholic Beverage Control license for Pollo Rey, 10525 South De Anza Boulevard, Suite 100. 22. Approval of Fine Arts Commission recommendation for the award of Fall, 1997, fine arts Vote Councilmembers Ayes: Bautista, Bumett, Chang, Dean, and Sorensen Noes: None. Absent: None. Abstain: None. ITEMS REMOVED FROM THE CONSENT CALENDAR-None. PUBLIC HEARINGS 23. Resolution No. 10005: Ordering vacation of a portion of Stevens Creek Boulevard, west of Cupertino Road, at 22287 Stevens Creek Boulevard with Irrevocable Offer of Dedication. Viskovich presented the staff report and explained how the city determines the value we receive for the abandonments. He said the road will remain two lane with the property improvements, including curbs, gutters and sidewalks. Burnett moved to adopt Resolution No. 10005. Chang seconded and the motion carded 5-0. 24. Applications 81,152 and 33-EA-97 - City of Cupertino - Public heating to consider an amendment to the Heart of the City Specific Plan to change the plan boundaries or change the residential densities and development standards to allow single family residential development. Properties are located adjacent to Stevens Creek Boulevard between Tantau Avenue and Stem Avenue. Environmental Determination: The Planning Commission recommends the granting of a Negative Declaration. Recommended for approval. (a) First reading of Ordinance No. 1769: "An Ordinance of the City Council of the City of Cupertino Amending the Stevens Creek Boulevard Specific Plan (Heart of the City) to Change the Development Standards to Allow Single-Family Residential Development on Certain Properties More Than 225 Feet From Stevens Creek Boulevard and Between Stem Avenue and Tantau Avenue." Community Development Director Cowan reviewed staffs recommendations, stating that the Planning Commission felt the city should not allow single-family development in this part of the strip in perpetuity. - Bob Catalano, 10053 Bret Avenue, manager of a property on Bret Avenue, said the owners had hired a construction company to build a new home for them. They received a permit from the county to demolish the home. He said when he took the plans to build a new home, the county lqovember 3, 1007 Cupertino City Coundl Page realized they could not issue a pem-dt to build. They had not told him that if he left one wall up he could do anything he wanted. He pointed out homes in the area which were either new or had been remodeled to look new and said it was unlikely that the people in those houses would change their homes in the next 20 or 30 years. Burner said he thought it was appropriate to make the change as the Commission recommended became home are what is needed most in the community. Dean said the potential issue is the high density homing that could go in. He said he would support the Planning Commission recommendation, but not high density. Cowan said the flexibility of this ordinance would allow single family on this site. He clarified the options allowed by the ordinance and said the higher density designation is 8-35 units per acre which applies to the whole stretch of Stevens Creek Boulevard. Dean moved to grant a negative declaration. Burner seconded and the motion carded 5-0. Bumett moved to approve the application per Planning Commission Resolution No. 4874. Dean seconded and the motion carried 5-0. The Deputy City Clerk read the title of the ordinance. Sorensen moved to read the ordinance by title only and that the Deputy City Clerk's reading - would constitute the first reading thereof. Dean seconded and the motion carried 5-0. 25. Applications 10-Z-97 and 32-EA-97 - Hank and Yunghwa Chang - Public hearing to consider prezoning of an existing single family residential lot located at 20697 Hanford Drive to Pre RI-10 (Residential, single family, 10,000 sq. ft. minimum lot size) zone. Environmental detcsminafion: The Planning Commission recommends the granting of a Negative Declaration. Recommended for approval. (a) First reading of Ordinance No. 1770: "An Ordinance of the City Council of the City of Cupertino Amending Title 19 of the Cupertino Municipal Code to Prezone Property Totaling 0.228 Acres and Located in the Cupertino Urban Service Area at 20697 Hartford Drive (Application 10-Z-97)." 26. Applications 9-Z-97 and 31-EA-97 - Charles and Jane Hsu - Public hearing to consider prezonlng of an existing single family residential lot located at 10424 N. S.telling Road to Pre RI-10 (Residential, single family, 10,000 sq. ft. mirdmnm lot size) zone. Environmental detcmfination: The Planning Commission recommends the granting of a Negative Declaration. Recommended for approval. (a) First reading of Ordinance No. 1771: "An Ordinance of the City Council of the City of Cupertino Amending Tire 19 of the Cupertino Municipal Code to Prezone - Property Totaling 0.891 Acres, Located in the Cupertino Urban Service Area at 10424 North Stelling Road and Adjoining Street Right-of-Way (Application 9-Z- 97)." November 3, 1997 Cupertino City Counell Page Cowan presented the staff report for items 25 and 26, and showed a map of the Garden Gate area with the subject properties highlighted. He said the trend was toward totally demolishing homes and building new ones, while in the past the trend had been to remodel. He explained that property owners don't have to come to the city if they are remodeling, but there has been miscommunication at thc county level so that old houses have been demolished and new houses started without the referral to the city. Also, there is no clear policy about beginning to annex the properties in Garden Gate. Homeowners have been allowed to continue to build in the county with an offer to annex when the property was built. The Planning Commission has said they don't want to see annexation on a piecemeal basis but on a total planning area so it can be redeveloped to city standards. Those standards are somewhat similar in terms of setbacks but the county does not have a floor area ration (FAR) limitation so very large houses can be built. Cowan said the county has elected to start in Cup ino with its urban pockets program. Staff has attended the neighborhood meetings and used them as a way to obtain the community input council had asked for. In the meantime, the owners of the two properties under consideration at this meeting asked to be able to demolish and rebuild as others in the area had. They were told that if they wanted to proceed they ought to prezone and annex. He said these two property owners have been held up since spring and staff felt that in terms of equity they ought to be able to continue the prezoning and annexation process because the homes would be built to city standards if that happened. He pointed out that the property on Hartford is contiguous to a city boundary and the other is mid-block in the middle of the island. He showed which portion of the street the city would be required to acquire in the latter case. He said council can proceed with - prezoning at this time. Policy choices are to agree with the Planning Commission and prezone these two properties which would eventually lead to annexation, or say they are not interested in a piecemeal approach. He said he thought the county would allow them to build, and annexation hearings regarding this pocket won't happen until the first of the year. He said he thought the area should be prezoned to be consistent with the general plan regardless of whether it is annexed. Bumett expressed concern about annexing these properties prior to the area voting on annexation. Discussion followed regarding the annexation agreements some property owners have signed. Kilian said there is an issue as to the validity of those agreements, and the city's position is that they are valid until a court has determined otherwise. Cowan said there had been not separate analysis of the cost of armexing the individual properties, but it would be cost effective to annex the whole area. Bautista expressed concern about assuming the liability of maintaining 400 ft. of street and said that concern needs to be weighed against the likelihood that this one house is going to build to county standards that are substantially different fxom the city's. Cowan said the staff report contains a rough idea of the maximum potential of this home. He - said the only positive reason for taking this property now would have to do with standards of development. November 3, 1997 Cupertino City Council Page 7 Burnett said the fact that the property owner wants to come into the city could mean that he would be willing to accept our more stringent standards on development. Charles Hsu, owner oftbe Stelling Road property, said he had a lot of questions. He thought the house he planned to build would benefit the city. He said he had paid all fees and followed all regulations of both the city and county, and all the plans have been signed off by the city. Hc thought the city would proceed with prezoning and annexation and hoped that the building pcmdt would be issued in the normal time frame. He said he didn't like the long delay and also did not know why the city is asking him to pay for a new sidewalk. In answer to questions, he said his plan was consistent with Cupertino's building code. Discussion followed as to whether or not the council's action at this meeting would delay Mr. Hsu. Kilian stated that if he were to proceed under county regulations, there would be no delay. Mr. Hsu stated his architect had designed the plans to be consistent with Cupertino's code. He said he was worried about timing and that he planned to build a new house that would make the city more beautiful than before. Robert Rilke, whose mother owns property at Beardon and Fargo, had concerns about direct access to the parcel at the end of Hanford that is right next to the Apple Computer wall. He said at the neighborhood meetings, he had heard that most of the older people want to stay in the county. Cowan said it might be inefficient for the city to service that property, but they would not have to take on part of the street. Council members expressed general agreement with the Planning Commission recommendation, and with the concept of annexing as an integral process. Cowan said some county staff members agreed that there could be an informal agreement that they would use Cupertino's standards to process developments, but the solution is to change the county ordinance to reflect that. He said the risk of operating under an informal agreement is that wc might end up with a bigger house than anticipated. Cowan said the fastest way for Mr. Hsu to be able to build his house would be to build under county regulations. He will be asked to sign an annexation agreement. Application 10-Z-97: Chang moved to grant a negative declaration. Burnett seconded and the motion passed 5-0. Dean moved to approve Application 10-Z-97 per Planning Commission Resolution No. 4872. Chang seconded and thc motion carried 5-0. The Deputy City Clerk reading the title of Ordinance No. 1771. Sorensen moved to read the ordinance by title only and that the Deputy City Clerk's reading - would constitute the first reading thereof. Dean seconded and the motion passed 5-0. Application 9-Z-97: November 3, 1997 Cupertino City Council Page Sorensen moved to grant a negative declaration. Chang seconded and the motion passed 5-0. Cowan clarified that prezoning is a prerequisite to annexation, but prezoning the property does not automatically mean it would be annexed. Council members went on record as not necessarily being supportive of annexing this property prior to a vote of the whole area. Dean moved to approve Application 9-Z-97 per Planning Commission Resolution No. 4873. Burner seconded and the motion carried 5-0. The Deputy City Clerk reading the title of Ordinance No. 1770. Sorensen moved to read the ordinance by title only and that the Deputy City Clerk's reading would constitute the first reading thereof. Dean seconded and the motion passed 5-0. PLANNING APPLICATIONS - None. UNFINISItED BUSINESS - None. NEW BUSINESS 27. Report on commission and committee temps expiring January 15, 1998; selection of application deadlines and interview dates. Deputy City Clerk Roberta Wolfe referred to the staff report and asked the Council confirm the following dates: Deadline for incumbents to apply: December 24, 1997 Extended deadline for non-incumbents: December 30, 1997 Interviews: Wednesday, January 7, 1998, Conference Room A, starting at 6:30 p.m. By consensus, the dates were tentatively approved, subject to comem-ation by council after the election. 28. Consideration of cancellation of November 17 and December 15, 1997, meetings and setting special meeting for November 20. Council concurred to cancel the two meetings and schedule the special meeting for swearing in of new council members, mayor and vice mayor. 29. Reading and enactment of Urgency Ordinance No. 1772: "An Ordinance of the City Council of.the City of Cupertino Amending Title 19 of the Cupertino Municipal Code By Adopting Interim Measures to Immediately Rezone Approximately 4 Acres From RI-10 and R1-7.5 to Rl-10i and R1-7.5i Zones; Adding the (i) Designation Which Imposes a - Building Height Restriction of One-Story Not to Exceed 18 Feet Upon All New Construction Within the Zoning Boundary; Property Consists of a Portion of the Felton Park No. 3 and 4 Subdivisions, Tract Numbers 717 and 834 and Parcels 359-18-052, 359- 18-053 and 3:59-18-054 Located on John Way and Declaring the Urgency Thereof." Cowan presented the staff report, explaining that Council Member Chang had requested that this matter be reconsidered. He pointed out that a section has been included in the ordinance which provides for waiver of the me permit application fee for those people whose plans were being considered prior to enactment of the ordinance. The City Manager clarified that this ordinance would not ban second stories but would require approval of a use permit so these applications could be looked at in detail. Kilian reminded council that enactment of an urgency ordinance required a 4/5 affirmative vote. Samantha Van Epps, John Way, said they were informed about the conditional me permit. They understood that and had no problem with it. She compared the John Way neighborhood of older homes covering 20% of a lot to "monster" two-story houses coveting up to 45% of the lot. All resident owners on the street signed the petition. She asked Council to help them preserve the character of their neighborhood. Joe Van Epps, John Way, thanked Council for reconsidering the matter. He said one homeowner was not asked to sign became the house faces Kim Street, and a nonresident homeowner did not sign because she is against the limitation. However, she could build her two story house through the use of a conditional me permit, and her application will be subject to her neighbors' - comments and city approval if it meets certain findings. Three other non resident owners were not asked to support the petition because they did not live in their houses on John Way. Mr. Epps said the Mayor had stated that the council promotes quality of life for Cupertino residents. He said it appeared non resident owners' interests have nothing to do with his quality of life. He described code enfomement problems on the property, including weeds and trash and asked Council to enact the ordinance. Mabel McFarland, 10567 John Way, thanked Council for making this the sixth neighborhood in the city zoned for single story. She said it was obvious from the petition that they desire to maintain the uniqueness of John Way as stated in Ordinance 1769, but said this would not be done if large homes such as the one at the comer of Stelling and McClellan are built there. Ms. McFarland described the neighborhood's efforts, stating that the residents began their work in February after they found out the comer property had been sold. As far as she knew, no contacts with neighbors have been made as the City Manager requested at the October 6 meeting. She urged passage of the ordinance and quoted from the Municipal Code regarding the purpose of R1 zones. She said there is a two story house on the street, and it is consistent with the character of the neighborhood. Voyle McFarland, 10567 John Way, said when they started they were surprised to learn that everyone they talked to felt the same way they did about the huge homes. He said they need the urgency ordinance to assure there will be a hearing at which neighbors could discuss and reach compromise with the individuals who need to make a large addition to their home. Emily Chen, owner of the parcel in question at 10511 John Way, described why she hadn't begun the permit process sooner. She said she did not receive notice of the October 6 hearing. Noveml~er ~, 1007 ~upert~o C~ty (~ounc]l Page 10 _ The property will be cleaned up eventually. She said she thought it was unfair that she could be forced to follow other people's values and view of the qu~!Ry of life because she has a minority opinion. She said the Council should be concerned with the big picture for the whole city rather than dealing with one block at a time. Jimai Chert, 10580 John Way, expressed disappointment that she would have to attend more meetings and hearings and that her plan was subject to other people's approval. Cowan said Ms. J. Chen was not able to get her permit prior to November 19 when the ordinance became effective, so she would be seeking a conditional use permit under the urgency ordinance. The Planning Commission would evaluate her plans based on findings in the ordinance. Her plan would have to meet findings such as privacy protection. Kilian said Planning Commission's decision could be appealed to the city council. Cowan said if the urgency ordinance is enacted it takes effect immediately, and Ms. E. Chen's application would also have to follow the conditional use permit process. If the urgency ordinance did not pass and both individuals had their plans in the process and permits had been issued by November 19, they could have proceeded with no review. He said the use permit process usually takes about six weeks, but it might be possible to shorten it a little. Sorensen commented that many residents had expressed concern about large houses. Council decreased the FAR eight years ago and she thought it was their job to listen to the whole - community and hear their concerns. Chang said he had requested that the matter be brought back because he was sympathetic to the needs of the neighbors. However, he would have preferred a citywide ordinance rather than dealing with specific groups. In fairness to the two applicants who spoke at this meeting, he felt the use permit fee should be waived and the hearing process expedited as much as possible David Pemg, 1616 Daphne Drive, architect for Jimai Chen, said he felt the additional regulations were too strict. He also said it would have been very difficult to get a permit by November 19. Dean cited two examples of houses he thought had a FAR greater that 45%. He said he didn't care for spot zoning and thought floor area ratio needed to be addressed throughout the city. Bumett said he had talked to hundreds of residents during his recent council campaign, and the size of houses is a citywide concern. He supported enacting the urgency ordinance to correct the situation as soon as we can. Bautista also heard from residents that are very disturbed by homes that do not try to conform with the neighborhood. He agreed that this is an issue that needs to be addressed. The Deputy City Clerk read the title of Ordinance No. 1772. -- Sorensen moved that the ordinance be read by title only and that the Deputy City Clerk's reading constitute the reading thereof. Chang seconded and the motion passed 5-0. November 3, 1997 Cupertino City Council Page _ Sorensen moved to adopt Ordinance No. 1772. Burner seconded and the motion passed 5-0. ORDINANCES - None. STAFF REPORTS Cowan informed the Council that the Planning Commission has scheduled hearings for January to discuss the issue of large homes. COUNCIL REPORTS Chang said we had recently had visitors bom Toyokawa and had reached some agreement regarding exchanging delegations for the 20th anniversary of the sister city relationship. The City Manager announced the swearing in ceremony on November 20 and the reception on November 18 honoring Councilmember Sorensen. ADJOURNMENT .// Adjourned at 8:30 p.m. Roberta Wolfe Deputy City Clerk