CC 10-06-97 CC-953
MINUTES
Cupertino City Council
Regular Meeting
October 6, 1997
PLEDGE OF ALLEGIANCE
At 6:46 p.m. Mayor Bautista called the meeting to order in the Council Chambers, 10300 Tone
Avenue, Cupertino, California, and led the Pledge of Allegiance.
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; City Clerk Kimberly Smith; Deputy City Eileen
Murray; Administrative Services Director Carol Atwood; Community Development Director
Bob Cowan; Parks and Recreation Director Steve Dowling; Public Information Officer Donna
Krey; and Public Works Director Bert Viskovich.
CEREMONIAL MATTERS/PRESENTATIONS
Presentation on status of Vallco Shopping Center: Anti-mt actions related to Macy's/Federated
Depa~hl~ent Stores, Inc.
City Manager Don Brown reviewed a chart that showed sales tax revenue trends at the Vallco
Fashion Park (a decrease from $1.82 million to $1.562 million fxom 1995 to 1997). The sales tax
revenue once represented over 25% of total sales tax but is now at 22%, and dropping.
He also showed a chart illnstrating the organizations involved in this issue. These include
Teachers Insurance and Annuity Association, the debt holders; Heitman Mall Management,
which is presently managing and has an ownership interest in the mall; Federated (and the
Macy's Clearance Center); J.C. Penney; Sears; Chamber of Commerce; City of Cupertino;
Dillards Depa~haent Stores; and the State Attorney General's Office, represented by Deputy
Attorney General John Donhoff.
Brown showed a diagram of the mall layout illustrating the store's crucial placement at the
juncture between Sears and Penney's stores. It still has the Emporium name on it. He said
without a first-class retail presence at this point the mall was probably not a viable long-term
entity. Brown also showed a map of the Bay area, highlighted to show competing markets that
have Federated/Macy's stores. Those shopping centers include the Stanford Shopping Center,
Valley Fair Shopping Center, and the Sunnyvale Center.
October 6, 1997 Cupertino City Council Page 2
Brown reviewed the chronology of the Macy's store at Vallco Fashion Park.
In 1995 Federated/Macy's acquired the Broadway stores, which includes Emporium. In January
of 1996, a liquidation began of the Emporium site at Vallco, and by the end of February that
store was closed. It remained vacant until July 20, 1997.
The city was in discussions with Teachers and other agencies about possible redevelopment of
the mall. Then, when interest was expressed by other department stores, almost overnight the
vacant store became an operating Macy's Clearance Center. Staff came from the Macy's in
Sunnyvale, and beat-up furniture, mattresses, and old clothes were brought in from the Macy's
clearance center in Fairfield.
The City made a couple of attempts in July and August to contact Macy's to find out what their
intentions were about turning the store into a clearance center, but the calls were not returned. In
the middle of August the city contacted the California Department of Trade and Commerce to
ask for advice and was told arrangements would be made for Federated to contact the city about
their future interests in Vallco. That call did not occur.
On August 14th, Carol Atwood visited the Macy's Clearance Center and took photographs of the
store and the merchandise that on display. On August 15th the City received a call from the
Macy's corporate attorneys office advising that no pictures were allowed in their store. In
September the city received their first correspondence from Macy's Clearance Center, which was
a demand letter from the corporate attorney's office in Cincinnati for public records of anything
to do with the Macy's/Federated matter in Cupertino The city complied with that request.
On September 10th the city met with Deputy Attorney General John Donhoff. The city
encouraged thc attorney general office to investigate this matter with regard to anti-trust and anti-
competitive activities, and Mr. Donhoffwill be reporting on their interest in this case.
Brown said that at the end of September he mailed a letter to Federated outlining the city's
concerns and telling them about this evening's presentation. They were invited them to attend
and present their point of view. He said that today he received a call from the corporate general
counsel who gave the city manager permission to characterize his comments, as follows:
Federated is the overall holding company for Macy's West, which is a fully owned subsidiary;
They have not had a chance to completely review the matter; they made a commitment to the city
manager that they are engaged in reviewing the matter fully at the highest senior level of
Federated management; they apologized for any lack of communication prior to this, and for
people not returning calls; and they committed to talk this week with the city manager to explain
their view of the situation and are hopeful that an open dialog will occur following that
A brief videotape was shown which illustrated the rear exterior entrance to the Macy's Clearance
Center, which still had the Emporium sign. Brown said the only known sign to indicate that it is
a Macy's Clearance Center is an 8"xl l" sign taped to the window. As shown in other views of
..- the interior, there was not a lot of merchandise, the jewelry cases were empty and a recliner was
tom and damaged. At different times when staff visited the site, different entrances were locked
and the only access was through the from. He said that staff has watched for any advertising in
· - October 6, 1997 Cupertino City Council Page 3
the print media that there is a Macy's presence in the mall, but there has been nothing. The press
has tried to contact them and Macy's has not responded.
Brown said that the only way that the city of Cupertino can characterize what Macy's is up to is
that they are trying to keep someone else from coming into this market. This city does not know
of any other logical explanation for why the retail market is being handled this way at the Vallco
Fashion Park.
Mr. John Donhoff, Deputy Attorney General, commended the City of Cupertino staff for
bringing this matter to his attention. In the fall of 1995 the Attorney General's office reviewed
the Bay area department store market, which was near the time the sale of the Broadway to
Federated closed. Federated is the largest depariment store chain in the world. The San
Francisco Bay Area in particular, with the purchase of the Emporium, seemed to leave Macy's as
the sole traditional deparhi~ent store. The attorney general's office used experts to review the
monopolization issues. Under the Clayton Act, if there is a heightened concentration over a
threshold level which is threatened by a proposed merger, then the state and federal government
both are authorized to attempt to prevent that. It was clear that the purchase of the Broadway
stores in California was not going to present competitive concerns. However there were certain
regions within the state where that wasn't the case. The Santa Clara Valley was one of those
areas. Mr. Donhoff said that when he negotiated a settlement of their concerns, which was
signed by the corporate representatives and counsel of Federated and the Attorney General and
his representatives, they were given a lot of information about Federated plans for the stores they
- were purchasing. Federated indicated they intended to divest the store at Vallco. This was the
end November of 1995. Therefore, the Vallco store was not included as part of their agreement
specifically, because it was understood that Federated was going to sell the store. The next step
would be for the owner of the mall to decide what store would be brought in. Until the City of
Cupertino contacted his office, he did not realize that the store had stayed vacant for 18 months
and had only opened recently this summer as a clearance center. He saw the pictures and it did
not look like an appropriate department store use.
Mr. Donhoff said they support the City of Cupertino's efforts to have an active department store
and a viable mall. Beyond that, they hope to see a competitive store at Vallco, because if one
locates there it is possible that they would then be able to locate at other malls, which would
create an alternative regional presence, at least in the South Bay.
Mr. Donhoff said that he doubted very much that the Federated corporate officials wanted to
anger the people in this area, and would be surprised if they knew the details of the treatment that
Vallco has received since the merger. He hoped that their contact with the city manager would
bear fruit soon and there would be no need to take other steps.
Mr. Donhoff said that Federated promised that they would not interfere with, impede or prevent
any other traditional department store that attempted to come into the mall, if they could work
out an agreement to do so among the city and the owner. That was the intent, to give the market
a chance in that regard, and not allow Macy's, for competitive reasons, to block the entry of a
new competitor to Valley fair. The Attorney General's office feels that there are steps that may
be taken both within the agreement and outside the agreement. They expressly reserved in the
October 6, 1997 euper no City Council Page 4
_ agreement any causes of action in regard to any antitrust activities undertaken by Federated. The
only thing that they settled was that Federated could buy the Broadway. It is possible that Vallco
may be added to the settlement agreement. Mr. Donhoff said that it appears that the city and the
mall have put together a package which is attractive since Dillard's is the third-largest department
store chain in the country and can certainly compete with Macy's. Mr. Dorthoff empba.~ized that
their investigation of the Federated matter is not a criminal matter.
Ms. Kathleen Nelson, Managing Director, representing Teachers Insurance and Annuity, said
that firm is one of the leading pension systems among the nation's colleges, universities and
research institutions. Throughout thei~ history they have been a major source of financing for the
retail sector.
She reviewed some of the retail investmems which they had made in malls throughout
California. When the Emporium store closed, it became difficult for Heitman to maintain the
occupancy levels because of Emporium's key location in the center of the mail. As a result, cash
flow declined. That was made worse by the operation of a clearance center in the Emporium
space instead of a full-line depmhxxent store. TIAA is now in the process of foreclosing
Heitman's interest in Vallco. Their intention is to bring in a nationally known regional shopping
center developer capable of replacing the closed Emporium with a national, full-line first-class
depmtment store, and revitalizing Vallco fashion Park. To that end, they have been negotiating
with the Jacobs group about the opportunity to manage, re-lease, and redevelop Vall¢o. If TIAA
is unable to replace the closed Emporium, Vall¢o's future is uncertain at best.
Mr. Bill Haviland, representing Dillard's depa~haent store, said that the Dillard's is only an
observer in this meeting, but they are very interested in what is happening at Vallco. They have
looked carefully at all of Northern California and the South Bay, and are willing to take the steps
necessary to go after this market. They have one store under construction in Stockton that should
open in October, and they hoped to have many more. He felt that Valleo is a very fine site and
hoped to locate a Dillard's store there. He explained that, for long tena viability, it is necessary
to approach the market with the expectation of having more than just one outlet, especially in the
larger metropolitan areas. One location wouldn't give the economies of scale to do that.
Mr. Kevin McClellan, representing the Vallco merchants group, spoke via videotape. He said
that since the Emporium spot had been vacated, a lot of the merchants have had to leave the
shopping center because it's been too hard to keep the foot traffic in the mall. The smaller
businesses rely on the larger anchors for their business, and there are now a lot of open spaces at
the mall.
Carol Atwood read a statement from George Steele, manager of the JC Penney store at Vallco.
Mr. Steele said that when their store was opened at Vallco it was with the understanding that the
mall was being repositioned and would be maintained in a fashion retail environment. The
recent opening of a Macy's Clearance Center is not consistent with that image and they are
concerned that this operation will lead to additional discount type operations which may result in
· - a repositioning of this mall into a discount center. It is not in the best interest of JC Penney or
the citizens of Cupertino to allow a clearance center format to continue to operate in a fashion
department store location in Vallco.
October ~, ! ~)~)7 Cupertino City Council Page
Ms. Do~na Lawler, representing the Cupertino Chamber of Commerce, said that they strongly
support the Attorney General's investigation. They hope that Federated will decide to abandon
the Macy's clearance center at Vallco mall. The Chamber of Commerce believes the clearance
center was deliberately installed to stifle competition, which prevents the revitalization of the
mall. This is an affluent community which deserves high caliber shopping, and Dillard's would
be a welcome member of the Cupertino community. In the long run, competition helps
everybody.
The city manager said that this is a critical juncture in time for Vailco. It is certainly not going in
the direction anyone wanted to go and there is a limited period of time in which Vallco can be
revitalized.
The mayor said that he was very encouraged to see the participation tonight from people
representing different economic interests. Ultimately they will need to continue to exert pressure
in whatever way they can to convince Federa~l to do the right thing, to divest of the site and
allow competition in the marketplace.
POSTPONEMENTS
Mayor Bautista said he would abstain from participating in the discussion because he wanted to
avoid a conflict of interest in a purchase and sale agreement with respect to a new home in which
the O'Brien Group is a partner. With consultation from the city attorney he has determined not to
participate in any deliberations or vote relating to the Diocese application, including this
continuance. Burnett moved to continue Item No. 23 to December 1, as requested by the
applicant. Sorensen seconded and the motion carried 4-0 with Bautista abstaining.
WRITTEN COMMUNICATIONS - None
ORAL COMMUNICATIONS - None
CONSENT CALENDAR
Sorensen moved to adopt the items' on the Consent Calendsr as presented. Burnett seconded and
the motion carried 5-0.
1. Resolution No. 9964: Accounts Payable, September 12, 1997.
2. Resolution No. 9965: Accounts Payable, September 19, 1997.
3. Resolution No. 9966: Accounts Payable, September 26, 1997.
4. Resolution No. 9967: Payroll, September 19, 1997.
5. Budget amendment, closeout for FY 96-97.
October 6, 1997 Cupertino City Council Page 6
6. Budget amendment, first quarter FY 97-98.
7. Minutes ofthe regular meeting of September 15, 1997.
8. Resolution No. 9968: Making determinations and approving the annexation of territory
designated "Byme Avenue 97-03", property located on the east side of Byme Avenue
between Granada Avenue and Hermosa Avenue; approximately 0.209 acre, Lee, Liong,
Wang (APN 357-16-021).
9. Resolution No. 9969: Making determinations and approving the annexation of territory
designated "Alcazar Avenue 97-10", property located on the south side of Alcazar
Avenue between Orange Avenue and Imperial Avenue; approximately 0.183 acre, Kang
(KC&J Investment, LLC) (APN 357-19-013).
10. Review of applications for Alcoholic Beverage Control licenses: (a) Pacific Steamer,
22350 Homestead Road; (b) Paul and Eddie's Monte Vista In% 21619 Stevens Creek
Boulevard; (c) Apollo Pizza, 10625 South Foothill Boulevard.
11. Resolution No. 9970: Approving Change Order No. 6 for Creckside Park Improvement,
Project 96-9208.
12. Resolution No. 9971: Authorizing execution of agreement with Kelvin Kang and Martha
Shah Ping Kang; 21850 Lomita Avenue, APN 357-15-005.
13. Resolution No. 9972: Accepting quitclaim deed and authorization for underground water
rights from Kelvin Kang and Martha Shah Ping Kang; 21850 Lomita Avenue, APN 357-
15-005.
14. Resolution No. 9973: Accepting grant of easement for roadway ptuposes from Kelvin
Kang and Martha Shah Ping gang; 21850 Lomita Avenue, APN 357-15-005.
15. Resolution No. 9974: Authorizing execution of agreement with Wei-Luh Chu and Tsai
Lan Chu; 22371 Cupertino Road, APN 326-15-010.
16. Resolution No. 9975: Accepting grant of sidewalk easement from Wei-Luh Chu and Tsai
Lan Chu; APN 326-15-0101, 22371 Cupertino Road.
17. Resolution No. 9976: Accepting quitclaim deed and authorization fur underground water
rights from Wei-Luh Chu and Tsal Lan Chu; APN 326-15-010.
18. Resolution No. 9977: Accepting grant of easement for roadway purposes from Wei-Luh
Chu and Tsai Lan Chu; APN 326-15-010.
- 19. Recommendation from Human Services funding committee for 1997-98 allocations.
October 6, 1007 (~upertino City Council Page 7
20. Resolution No. 9978: Declaring intention to order vacation of portion of Stevens Creek
Boulevard, west of Cupertino Road, with irrevocable offer of dedication.
21. Monthly Treasurer's Report and budget update, August, 1997.
Vote Councilmembers
Ayes: Bautista~ Bumett, Chang, Dean, and Sorensen
Noes: None.
Absent: None.
Abstain: None.
ITEMS REMOVED FROM THE CONSENT CALENDAR - None
PUBLIC HEARINGS
22. Public hearing to consider whether sWrage of trash and debris in the side yard of property
located at 10118 Santa Clara Avenue (Winningham) constitutes a public nuisance under
Chapter 11.04 of the Cupertino Municipal Code.
(a) Resolution No. 9979: Ordering abatement of public nuisance at 10118 Santa
Clara Avenue.
Bill Woska, Human Resources Manager, reviewed the staff report. The Mayor opened
the public hearing. No one wished to speak on this matter.
Sorensen moved that Council declare that the storage of trash/debris at 10118 Santa Clara
Avenue, Cupertino, was a public nuisance; that the property owner be ordered to remove
and dispose of the trash/debris causing the public nuisance by OcWber 20, 1997; that if
the public nuisance is not abated by October 20,1997, the trash/debris will be removed at
the direction of the City with the costs for abatement of the nuisance assessed to the
property owner; and to adopt Resolution No. 9979. Chang seconded and the motion
carried 5-0.
23. Applications 6-U-97, 4-TM-97, 5-Z-97, 2-DA-97 and 15-EA-97 - Steve Zales/O'Brien
Group (Diocese of San Jose) - Public hearing to consider a Development Agreement for
the following: Use Permit to construct 178 residential units and ancillary improvements
on approximately 67 acres of the 212 acre property. Tentative Map to subdivide
approximately 67 acres of the 212 acre property into 178 lots. Rezoning approximately
67 acres of the 212 acre property from Agriculture (a) zone and Qn_~.qi-Public (BQ) Zone
to Planned Development/Residential IPfRES) Zone and 145 acres tiom Agriculture (A) to
Public Park or Recreation (PR) Zone. Located south of 1-280 and west of Foothill
Boulevard and Rancho San Antonio County Park and Stevens Creek Boulevard (APNs
· - 342-05-054, -056, -059, -060 and 342-52-003. Environmental Dctemiination: The
Planning Commission recommends the granting of a negative declaration.
October 1007 Cupertino ~ity Council Page 8
_ Recommended for approval. (Continued from the meeting of September 15; applicant
requests continuance to December 1, 1997.)
(a) Resolution No. 9934: Authorizing execution of development agl~ment.
(b) First reading of Ordinance No. 1763: "An Ordinance of the City Council of the
City of Cupertino Amending Title 19 of the Cupertino Municipal Code by
Rezoning Approximately 212 Acres Located South of 1-280 and West of Foothill
Boulevard and Rancho San Antonio County Park and Stevens Creek Boulevard
from Agriculture (A), Qu~si-Public (BQ) Zone to Planned
Development/Residential (P/RES) Zone and Rezoning 145 Acres from
Agriculture (A) Zone to Public Park or Recreation (PR) Zone (Application 5-Z-
97)."
During "Postponements" this item was continued to December 1, 1997.
24. Public hearing to consider the proposed use of $34,106 in 1997-98 Local Law
Enforcement Block Grant Funds for the Public Dialogue consortium discussions on
community safety.
City Manager Don Brown reviewed the report and said these funds would be used to
target at-risk youth. Sorensen asked if she should abstain from participation since she sits
on the Board of Directors for Social Advocates for Youth, which does some counseling in
the high schools. The Deputy City Attorney said that since she would not personally
benefit, there would be no conflict of interest.
The Mayor opened the public hearing to receive comments on the proposed use of funds.
No one wished to be heard on this matter. Buruett moved to authorize the allocation of
funds for a community-based action project that will explore ways of enhancing public
safety. Chang seconded and the motion carried 5-0.
25. Public hearing to consider appeal of Planning Commission decision to approve
Application 8-U-97 which requested approval to construct a new 3,453 sq. fl. mixed-used
building with an automobile tire repair shop on the first floor and two apartments on the
second floor. The project is located at the southwest corner of Lomita and Imperial
Avenues (Ann Anger, Dean Sayre and Bruce Wenniger, appellants. Golden Park LLC,
property owner. James Liang, applicant).
Community Development Director Bob Cowan reviewed the staff report.
Mr. Dean Sayre, 19805 S. Stevens Canyon Road, said he was opposed to this use permit
because (1) there is a serious risk of fire or noxious fumes affecting the apartment
dwellers; (2) mixed-use projects, particularly in the East, often end up being a slum; (3)
-. in this area, low-income housing is an oxymoron; and (4) Council should stop using
Monta Vista as a dumping ground.
0ctol~er/~, 1007 Cupertlno City Council Page 9
Mr. Bruce Wenniger, representing the Monta Vista Improvement Association, reviewed
the staff response to his letter, which was on page 25-2. He said the use permit would
create a dangerous situation and create a bad precedent. The fire repair portion of this
mixed use would generate a lot of noise from the air compressors, and dangerous fumes
would be generated from the fire repair process.
Burner moved to approve the grant the appeal and deny the use permit for a mixed-use
project. Sorensen seconded and the motion carried 5-0.
26. Application No(s). 8-Z-97 and 30-EA-97 - City of Cupertino - Request from residents to
rezone John Way to limit constracfion to single story. The following parcels will be
affected: 359-19-001 -002, -003, -004, -005, -006, -007, -008, -009 and -010; 359-18-
001,-002,-003,-004,-005,-006 and -007; 359-18-052,-053 and -054. Environmental
Deteimination: The Planning Commission recommends the granting of a negative
declaration. Recommended for approval.
(a) First reading of Ordinance No. 1768: "An Ordinance of the City Council of the
City Of Cupertino Amending Title 19 of the Cupertino Municipal Code By
Rezoning Approximately 4 Acres from RI-10 and R1-7.5 to Rl-10i and R1-7.5i
Zones By 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 FelWn Park
- No. 3 and 4 Subdivisions, Tract Numbers 717 and 834 and Parcels 359-18-52,
359-18-53 and 359-18-54, John Way."
Co) Reading And Enactment Of Urgency Ordinance No. 1769: "An Ordinance oftbe
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 359-18-054 Located on John Way and Declaring the Urgency Thereof."
Commnnity Development Director Bob Cowan reviewed the staff report.
Mabel McFarland, 10567 John Way, said the lots in this neighborhood are large enough
for single story additions and still the owners have enough yard space for a pool, patio, or
swing set. The neighbors wished to retain the continuity of style in this neighborhood
and don't want any "pink elephants" to be built in that area.
Ms. Samantha Van Epps, 10525 John Way, said that her Felton neighborhood tract was
-- built 47 years ago in an apricot orchard and many trees still remain. These 1/4-acrc lots
have plenty of land to expand. The two-story building that are already there do not fit in.
October $, 1997 Cupertino City Council Page l0
._ Mr. Joe VanEpps, 10525 John Way, asked that council approved both this ordinance and
the urgency ordinance.
Ms. Jimai Chen, 10580 John Way, explained that she shares her home with her children
and her mother. It is very important that she have a second story to allow for some
privacy. Her architect is already drawing up £mal plans, and any revisions will cost a lot
more money which she could not afford. She understood the neighbors' concerns about
wanting to retain the character of the neighborhood, but her addition would not create big
"pink elephant". She asked the City Council not to pass the urgency ordinance, and allow
her to file her plans in the next thirty days.
Chang said that almost all neighbors are in favor of single story homes and the lots are
large enough to allow for expansion. However, he was concerned with the rights of the
individual.
Burnett said he had a strong concern for preserving neighborhood character. The use
permit process for a second story addition is an appropriate solution, and would give
everyone a chance to be heard when the project came before the planning commission.
Sorensen agreed that the use permit process is the key feature in this solution.
Dean said that until it is 100% signed off, he did not think the zoning should be changed.
Burnett moved to adopt a negative declaration. Sorensen seconded, and the motion
carried 4-1, with Dean voting no.
The City Clerk read the title of Ordinance No. 1768. Sorensen moved and Bumett
seconded to read the ordinance by title only, and that the City Clerk's reading would
constitute the first reading thereof. Motion carried 3-2 ,with Dean and Chang voting no.
The City Clerk read the title of Urgency Ordinance No. 1769. Sorensen moved and
Burnett seconded to read the ordinance by title oRiy, and that the City Clerk's reading
would constitute the only reading thereof. The motion failed to carry 3-2, with Dean and
Chang voting no (a 4/5 vote is required to pass an urgency ordinance regarding the
zoning).
27. Consideration of amendments to land use and transportation elements of the general plan.
Environmental Detem~,ination: The Planning Commission recommends the granting of a
negative declaration. The projects are located citywide.
Council discussed each item individually, accepted public input, and voted on each item
separately. Council accepted the staff recommendation, including adopting Res. 9980
with amendments shown in the following paragraphs.
A. Application No(s). 5-GPA-97 and 9-EA-97 - City of Cupertino - Consideration
of an amendment to the land use element of the general plan to allow an
Oc/o~er/~, 1007 Cupertino City Council Page I 1
interchange of square footage between commercial and office/industrial uses
(Policy 2-3). Other actions related to economic development. Recommended for
denial.
Bumett said that he would prefer to review applications for the comer, rather than
trying to guess in advance how much additional commercial space would be
appropriate at this time.
Bautista said that they would not only be fostering commercial, but would also be
fostering retail. He felt that without an allocation of some retail to commercial,
there would be no retail on that comer, for all practical purposes.
Dean said that he was aware of people fight now that wanted to rent that retail
space, but the real issue was height and traffic. Does that fit into the scenario that
the City wants to create?
Mr. John Statton, representing the Cupertino Chamber of Commerce, said that
design flexibility is critical in this instance and projects should be reviewed on
their merits and not based upon general plan constraints. The consensus was that
they almost had enough retail in the community, but the question was how to
upgrade what already existed. If there is a need to use some of that for
office/industrial, the flexibility should be there.
Mr. John Sobrato, representing Sobrato Development, encouraged Council to
consider the transfer of retail excess capacity at the comer of DeAnza Boulevard
and Stevens Creek Boulevard for the Hunter application. He felt it was important
to allow the architects the flexibility of placing a taller building there because the
site is very constrained. There are other four-story buildings on DeAnza that have
as little as a 50-foot set back, so going to a h l ratio will provide more
landscaping than in the past. This particular site has been an eyesore for many
years and if they had a 75 ft. height maximum, as had been suggested for Vallco
Park, at least there would be a consistent landmark policy. Also, before the site
can be considered as a landmark site, a public gathering space must be created
with a special landmark design element worked into the scheme, and all these
things also constrain the site. He asked Council to consider the increased height
maximum, on the condition that all other community benefits are provided. Also,
if a parking garage were provided on the site with retail in f~ont of it, it would
mask the fact that the parking was there and may give the architects more
flexibility.
Dean felt that council should not assign a set number of either retail or
commercial. That decision should be lef~ to the council which will review the
application. He felt there would be a big impact on traffic by the time the Apple
and Symantec buildings are filled, the 113,000 square feet on the comer, and
maybe a new hotel.
October 6, 1007 Cupert/no City Council Page 12
Sorensen said that Mr. Kroll had an excellent point about how in April a decision
was made and now changes are considered. She agreed with Dean that they
should allow flexibility of design, especially on that comer.
Burner believed that office/industrial allotments should not be increased any
further, so he was opposed to the proposed change.
Chang felt it should be looked at on a case-by-case basis. That .comer has some
constraints and needs flexibility, with adequate attention paid to traffic issues.
Bautista felt that the time spent by the Economic Development Committee on this
comer had resulted in good progress, and Council has a vested interest. Those
discussions precipitated the discussion as to whether there should be an
interchange of square footage between retail and commercial office/industrial
uses. The original objective was to provide as much flexibility to the applicant as
possible, since the property has been an eyesore for so long, and the goals are well
laid out: creating a public space, preserving the comer which would be a
complement to the Four Seasons Comer across the street, but with a substantial
dedication of retail on the comer.
Burnett said that in the 1993 General Plan one of the findings was that the level of
service at that intersection went to Level E. Now, in order for a red flag to go up
-' on development in that area it would have to go to level F. He shared Dean's
concern about the access, primarily by U-turn, for that site. Bautista said that the
project may fail for those reasons.
Bautista moved to amend the General Plan regarding the northeast comer only to
allow a conversion of retail to office/commercial space, provided that there be a
substantial retail presence on that site. The maximum, height of landmark building
shall be 75 ft. with substantial easement for dedication of open space for public
gatherings consistent with the Stevens Creek Plan, provided other elements of the
General Plan, including traffic, are satisfied. Sorensen seconded and the motion
carded 4-1 with Bumett voting no.
B. Application No(s). 7-GPA-97 and 17-EA-97 - City of Cupertino - General Plan
Amendment to the land use element of the General Plan related to goals and
policies for urban design and building form and scale, including building heights
and setbacks. Recommended for appmvai.
Mr. Larry Cannon, an urban design consultant, and Deborah Ungen-McCormick,
Planner, reviewed recommendations regarding urban design issues associated
with the major corridors, the Vallco Park area, and the Town Center/Crossroads
area, as discussed on page 27B-3.
Mr. John Hailey, representing Tandem Computers, a Compaq Company, reviewed
the background of Vallco Park. Since the late 1960s it has been viewed by city
October 6, 1007 Cupertino City Council Page 13
..- leaders as an area well suited for higher intensity, and Tandem feels that potential
still exists today. Tandem concurs with the staff recommendation to Planning
Commission that the City obtain design review assistance from an urban design
consultant. They see the benefit of continuity and developing a trust about certain '
design issues. In regard to general building heights, the 1983 general plan had an
8-story height limit over the entire Vallco area. In 1993 that was changed to a
restricted sandpile effect, to keep the buildings lower near the residential areas,
which meant some loss of flexibility. The recommendation of the design
consultant is to allow greater design flexibility and to require a master plan for the
area, and Tandem would concur. The original recommendation, however, did not
limit the ceiling to 60-75 feet. Also in the Vallco Park area, a master plan is
required for buildings over 45 feet, although this is not required anywhere else in
the City. Mr. Hailey asked that council consider raising the ceiling and require a
master plan for buildings over 60 feet. He said they would prefer a 1:1 slope for
buildings under 60 feet in order to increase design flexibility as well, as well as
changing the 2:1 slope back down to 1:1. He said the other items addressed were
all good design practices, but would be better addressed through a master plan
process. Their overall concern was to restrict the Vailco area building heights
south of Highway 280 to 60 feet. Tandem would concur with lowering building
heights north of the freeway.
Mr. Mark Kroll, representing Cupertino City Center land and buildings, expressed
- his concern about the building slope ratio and its effect on the future hotel
structure near the Four Seasons Park. He said it would create an impractical
building pushed back into one corner of the site. He said they were also
concerned about the changes reflected in item 2-C which might affect the
licensing agreement for the Four Seasons Park, which was signed only two
months ago. He asked that the hotel be given credit for the Four Seasons
landscaping area.
Cowan said that item could be modified to exclude the southeast corner of
Stevens Creek and DeAnza Boulevard. He also suggested that item 1-A be
modified to delete reference to the Four Seasons Park.
Bautista clarified that the 1.5:1 applied on Stevens Creek Boulevard, Homestead,
and Tantau, and 1:1 on Wolfe, and 2:1 on Stevens Creek Boulevard, Homestead
and Tantau for buildings over 60 feet.
Chang moved to approve this item per Planning Commission Resolution No.
4848 with the following changes: Recommendation 2.A, page 27-9, delete the
words, "as well as from the Four Seasons Park."; and Recommendation 2.C, page
27-9, add the words "Excludes southeast corner of Stevens Creek/De Anza
Boulevard intersection." Dean seconded and the motion carded 5-0.
C. Application No(s). 8-GPA-97 and 18-EA-97 - City of Cupertino - Consideration
of an amendment to the transportation element of the General Plan related to goals
October g, 1997 Cupertino City Council Page 14
and policies for traffic level of service, including a.m. and p.m. peak traffic hour.
Recormnended for approval.
Dean moved to appwve this item per Planning Commission Resolution No. 4848.
Sorensen seconded and the motion carried 5-0.
D. Application No(s). 9-GPA-97 and 23-EA-97 - City of Cupertino - Consideration
of an amendment to the transportation and land use elements of the general plan
related to Policy 4-3: Tiered Traffic Mitigation for Additional Mitigated
Development. Recommended for approval.
Sorensen moved to approve this item per Planning Commission Resolution No.
4848. Chang seconded and the motion carded 5-0.
E. Application No(s). 10-GPA-97, 6-Z-97 and 24-EA-97 - City of Cupertino -
Application to change the General Plan land use designation for an existing water
well site from Residential Medium High to Industrial/Residential Medium High to
pem-dt a private storage and/or residential activity, and to rezoning approximately
.23 acre from BA (Public Building) Zone to P(BA/RS-20) Planning Development
(Public Building/Residential 5-20 dwelling units per acre) zone. The project is
located Citywide. Recommended for approval.
This item was tabled at the request of staff, since the new user (San Jose Water) is
not interested in swapping water well sites.
PLANNING APPLICATIONS - None
UNFINISHED BUSINESS - None
NEW BUSINESS
28. Status report on the Cupertino Senior Center expansion.
Parks and Recreation Director Steve Dowling reviewed the staff report. He said that
historically the city has put together a design team comprised of elected officials, staff
and conununity representatives. Staff proposes that the Senior Center Expansion
Committee be composed of one council member, Parks and Recreation Commissioner
Edye Stein, the Parks and Recreation Director, the Public Works Director, Diane Snow at
the Senior Center, and the Service Center Manager. There will be three senior
representatives selected by the Senior Advisory Council, and two members from the
community at-large.
Council concurred to receive the report.
October 6, 1997 Cupertino City Council Page 15
_ Report on Special Event Liability Insurance/block party roles.
The Public Works Director reviewed the staff'report and said that the Association for Bay
Area Governments (ABAG) advises insurance for all events in the public right-of-way.
He said that larger functions usually had a sponsor who can obtain insurance, but for
small events like block parties it is difficult to assign someone to obtain the insurance.
Diversified Risk has arranged to provide insurance over-the-counter to make it more
convenient. Since there are only five to seven block parties each year and the premium
would be $103, staff suggests that Council subsidize the insurance premium. This would
pertain for block parties with groups of up to 500 people. If the group prefers to obtain
their own insurance, the city would provide up to $103 towards that cost.
Chang moved to accept staffs recommendation to subsidize block party insurance
premiums for $103 for up to 500 participants per event. Bumett seconded and the motion
carried 5-0.
ORDINANCES - None
STAFF REPORTS
30. Report on preparations for El Niflo weather conditions.
The Public Works Director reviewed the city's plans to prepare for more severe weather
which may be caused the 1997 El Nifio. Since the water district began keeping records in
1949, there have been approximately eight E1 Nifios; seven have had rainfall above
normal, and one has been below normal. It is still unknown whether the Bay Area will
have increased rainfall this year. The Public Works staff is working to clean up the storm
drains and creeks. The Community Development Director explained that there are five
homes in the hillside right now which are in various stages of completion. They should
have all the dangerous grading work done by the middle of OcWber, and they all have
erosion control plans in place. Staff will delay the issuance of any other grading permits
from now on unless it is an emergency situation. For a non-hillside area, permits will be
issued if there would be no detrimental effect on neighboring pwperty owners.
The Public Works Director explained that the county reservoirs are not designed for flood
control, but rather for water percolation and conservation, therefore they don't have
valves to release water quickly. Also there are Depa~/ment of Fish and Game restrictions
on the release of water between storms.
The City Manager reminded everyone that on Oct. 8 there would be a community
meeting from 7 p.m. to 9 p.m. at the Quinlan Center. The meeting is sponsored by the 5
C's (Citizens of Cupertino Cwss-Cultural Consortium).
October 6, 1997 Cupertino City Council Page 16
COUNCIL REPORTS
Sorensen commended Emergency Preparedness Coordinator Marie Moore on another successful
CERT program. Sorensen said she attended the graduation on Saturday and it was impressive to
see the response. The city is very lucky that the fire district has assigned her to this area.
Sorensen asked for a status report about the new U-turn on Saich. The Public Works Director
explained that the intersection had the most accidents in the city and needed to be better
controlled. The sheriffs officers have been asked not to cite drivers for the next 30 days until
everyone has gotten used to the new signs.
Chang mentioned that Cupertino's Sister City of Toyokawa recently visited Cupertino and the
program has really been revitalized. He felt the Sister City group should continue to work with
the schools to recruit a group of people to visit Japan. These results confirm the importance of
the Sister City programs. Bautista reminded them that two representatives from Toyokawa will
be here at the end of the month. He also mentioned that the Leadership Cupertino class would
begin this week with 25 participants. On Sunday, Chang will be carrying the Cupertino flag at
the League of California Cities.
CLOSED SESSION - None.
ADJOURNMENT
At 10:52 p.m. the meeting was adjourned.
City Clerk