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CC 08-18-97 CC-950 MINUTES Cupertino City Council Regular Meeting August 18, 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 Allegiance. ROLL CALL City Council members present: Mayor John Bautista, Vice-Mayor Michael Chang, Councilmembers Don Burnett, Wally Dean, and Lauralee Sorensen. Council members absent: None. Staffpresent: Acting City Manager Bert Viskovich; City Clerk Kimberly Smith; City Attorney Charles Kilian; Administrative Services Director Carol Atwood; Community Development Director Bob Cowan; Parks and Recreation Director Steve Dowling; and Public Information Officer Donna Krey. · -' CEREMONIAL MATTERS - PRESENTATIONS None. POSTPONEMENTS Council concurred to continue No. 21 to the meeting of September 15, 1997, at thc request of the applicant. WRITTEN COMMUNICATIONS None. ORAL COMMUNICATIONS Mr. Dean Sayre, a Cupertino resident, brought in an aluminum trash can to show how it had been damaged in a matter of weeks by rough handling on the part of Los Altos Garbage employees. He also complained that the trash cans were often left in the middle of driveways, which forced residents to park while they relocated the cans before they could enter or exit driveways and garages. Mr. Sayre said there is tremendous profit in the industry, but good service is not being provided. He asked Council to demand better customer service the next time the contract is renewed with Los Altos Garbage and not to just robber stamp it. Mayor Bautista said his objection was noted, and directed the City Clerk to forward a copy of these minutes to the company. The Public Works Director said he would also contact them personally. · , August lg, 1007 Cupertino City Council Page 2 Ms. Mavis Smith, 22734 Majestic Oak Way, said that staff in the city's water department had been especially helpful to her on many occasions. Often when a large company takes over a smaller one the employees of the smaller company experience losses, and sa'vice to customers sometimes deteriorates. She did not want that to happen if Cupertino decides to lease its water utility. She asked that Council use care and vigilance in making their decision, and to also weigh things that do not have a dollar value. Public Works Director Bert Viskovich said that the water department employees were given a choice of staying with the city in another position or working for Cai Water. One decided to work with the water company and the other two have stayed with Cupertino. CONSENT CALENDAR Dean moved approval of the Consent Calendar items as presented, with the continuation of item No. 10 to September 15. Sorensen seconded and the motion carried 5-0. 1. Resolution No. 9917: Accounts Payable, July 18, 1997. 2. Resolution No. 9919: Accounts Payable, July 25, 1997. 3. Resolution No. 9920: Accounts Payable, August 1, 1997. 4. Resolution No. 9921: Accounts Payable, August 8, 1997. 5. Resolution No. 9922: Accounts Payable, August 15, 1997 6. Resolution No. 9923: Payroll, July 25, 1997. 7. Resolution No. 9924: Payroll, August 8, 1997. 8. Approval of the minutes of the regular meeting of July 21, 1997.. 9. Review of Alcoholic Beverage Control license applications: (a) Silver Wing Restaurant, 10885 North Wolfe Road; (b) Saigon Palace, 21271 Stevens Creek Boulevard; (c) Seven Eleven, 21490 McClellan Road. 10. Resolution No. 9925: Making determinations and approving the annexation of territory designated "Byrne Avenue 97-08", approximately 0.234 acre located on the west side of Byme Avenue between Dolores Avenue and Alcazar Avenue; Carter (APN 357-12-032). (This item was continued to September 15, 1997). 11. Resolution No. 9926: Setting date for consideration of annexing area designated "Almaden Avenue 97-01:, property located on the north side of Almaden Avenue between Lomita Avenue and San Femando Avenue; approximately 0.228 acre, Chang (APN 357-15,021). 12. Resolution No. 9927: Authorizing execution of contract with Godbe Research and Analysis for community survey. Augns IlL 1 07 Cu dno City Council Page 3 13. Resolution No. 9928: Approving change order No. 3 for Crcekside Park Improvements, Project 96-9208. 14. Resolution No. 9929: Authorizing execution of "Modification of Agreement" with San Jose Water Company, water service to Seven Springs and Rainbows End developments. 15. Resolution No. 9930: Authorizing execution of improvement agreement, approving improvement plans, Katie Radish, 10554 San Leandro Avenue. 16. Resolution No. 9931: Accepting quitclaim deed for underground water fights, Katie Radish, 10554 San Leandro Avenue. 17. Resolution No. 9932: Accepting grant of easement for roadway purposes, Katie Radish, 10554 San Leandro Avenue. 18. Resolution No. 9933: Establishing permit parking zone on Fairwoods Court. 19. Monthly Treasurer's Report, June, 1997. 20. Application No. 26-U-86 0Vlodified) - Tosco Northwest Co. - 21855 Homestead Road - ReqUest for a one year extension for a conditional use permit to expand the existing retail space by approximately 100 sq. fL and construct an 840 sq. i~. car wash. Environmental -' Determination: Categorically Exempt. Recommended for approval. Vote Councilmembers Ayes: Bautista, BurneR, Chang, Dean, and Sorensen Noes: None. Absent: None. Abstain: None. ITEMS REMOVED FROM THE CONSENT CALENDAR None. PUBLIC HEARINGS 21. 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 Pemdt 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 Q~msi-Public (BQ) Zone to Planned Development/Residential IP/RES) Zone and 145 acres from 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 Determination: The Planning Commission recommends the granting of a negative declaration. August 1 i, 1997 Cupertino City Council Page Recommended for approval. (Staff requests continnance of Item No. 21 to the meeting of -- September 15, 1997.) (a) Resolution No. 9934: Authorizing execution of development agreement. 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), Quasi-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)." Council concurred to continue this item to September 15 at the request of the applicant. 22. Application Nos. 15-U-96 (Modified), 8-TM-96 (Modified), and 6-Z-96 (Modified), Sand Hill Properties (Tandem) - Public hearing to consider modifications to a use pemiit related to site design and development phasing, and to a tentative map and zoning related to development phasing. Environmental determination: Categorically exempt. Recommended for approval. -' (a) Ordinance No. 1764: "An Ordinance of the City Council of the City of Cupertino Amending Ordinance No. 1750 Regarding a Condition of Approval for Application No. 6-Z-96, a Parcel Located at 10741 North Wolfe Road and 19590 Pruneridge Avenue (Application No. 6-Z-96(Modified)." (b) Resolution No. 9935: Approving Application No. 8-TM-96(Modified). (c) Resolution No. 9936: Approving Application No. 15-U-96(Modified). Community Development Director Bob Cowan reviewed the staff report. He distributed a fax which was received on August 18 from SNK Realty Group describing an alternate proposal. This would involve the provision of a $1 million fmanciai surety to gnarantee the construction of the hotel. Staff felt the time period should be less than a year and there should be an executed franchise agreement. City Attorney Chuck Kilian referred to page 22-16 of the packet, a letter from Hilton Inns, Inc., to Mr. Peter Pan, dated May 12, 1997. This sets forth seven conditions to be met upon which Hilton would enter into their standard form License Agreement. Kilian said that both Hilton and the applicant feel that generally item Nos. 1-6 have been met or are in process. No. 7 says there must be close of escrow on the land. He recommended that as a further condition of changing the phasing, that the Council require that Hilton _ sign its standard form License Agreement contingent only upon the close of escrow on the property, including its standard "outs", in case Hilton doesn't like the hotel when finished, etc. .. August 18, 1997 Cupertino City Council Page Mr. Mike Anderson, representing Sandhill Properties, reviewed the progress of this project and said that a few weeks ago they delivered a very complete set of plans to the City. They have spent close to $$00,000 in paying consultants and expediting the project. They also paid the city several thousand dollars to expedite the plan review process by send'rog them to an outside plan checker. They have paid Hilton Inns over $35,000 in non-refundable fees, and have received the standard commitment letter with most conditions satisfied except for the acquisition of the land. When the final map is obtained they will be posting hundreds of thousands of dollars in bonds to the county tax assessor, city, etc. to insure construction of infrastructure. He said that in addition to this financial commitment, they are willing to post a $1 million cash security payment with the city to insure that, if for some reason the hotel did not proceed, the money would be forfeited to the city in 12 months. This would get them through the rainy season which will affect the construction schedule. Also there are two entities developing (apartment and hotel), the lender on the apartments wants some ability to step in and finish the hotel if Sandhill fails to do so, so there needs to be a transition period. Mr. Anderson said the $1 million payment is intended to replace the holdback on buildings 7, 8, and 9, and the only remaining condition will be that they obtain the land. They will have an executed franchise agreement in place, with the exception of condition No. 7 regarding obtaining the property, and a commitment letter for the financing before they post the $1 million cash payment. City Attorney Charles Kilian said that in discussions between the applicant, staff, and some council members, there was never any real discussion of ph~ing itself. It appears that the licensing agreement by Hilton could be done immediately. He noted that the $1 million will not be a cash deposit, but will be part of the consideration for an agreement to modify conditions, and some language needs to be prepared regarding liquidated damages, forfeitures, etc. Also, the 365-day period starts running when all the apartments are built on parcel 1, not from when the property is closed, so theoretically one apartment building could remain unbuilt and the 365-day period would never commence. Kilian said that his office should prepare the agreement and have it signed up front, rather than at the time the applicant wishes to make the deposit. There were a number of other technical conditions which must be addressed with staff, so he recommended that Council decide by straw vote tonight whether Council is interested in modifying the condition and whether the million dollars is sufficient, etc. Kilian said he would recommend that Council direct staff to negotiate with the applicant to develop language and a condition that meets everyone's needs and would come back to City Council at the next meeting. He would attempt to have the written agreement prepared by that time. Mr. Anderson said he did not have a problem with the City Attorney's suggestion about entering into the agreement. However, the condition allowed all of the building permits - for the apartments except buildings 7, 8, and 9, and the applicant wishes to replace that condition with the $1 million deposit. The actual security should be fled to the building permit for the apartments, assuring that the hotel will be built. Mr. Anderson said they could agree with staff on a date certain when the $1 million would be forfeited, but they August 1 R, 1997 Cupertino City Council Page 6 would like to have about 12 months from when they actually get their building perrtdts from the city and are allowed to move forward. Mr. Gregory Francois, Director of Development, Western United States, Hilton Hotels Corporation, said he was confirming that they had accepted an application from the applicant, as well as a cash, non-refundable deposit. Also, they had basically agreed to a license agreement except that before it can be issued the applicant must own the land. There is a signed commitment letter that addressed points 1-6, and all of those issues have been met to their satisfaction. Kilian said that there would be nothing wrong with a license agreement that is null and void if the property doesn't close within a certain period of time. Mr. Francois said that they were concerned about setting a precedent which would affect their dealings with other applicants, but they would try to work within the framework negotiated by the city and the applicant. Mr. Francois said as far as they are concerned, the Cupertino Hilton Garden is a deal. Kilian said that once Hilton signs the licensing agreement on the condition that the property closes, the hotel corporation has done everything reasonably possible to insure its participation. Bautista asked for a straw vote to determine if the Council was willing to consider a modification to the condition regarding phasing. Chang said that the applicant had made substantial progress by having submitted plans and getting a franchise agreement. He was comfortable with the $1 million surety but details need to be worked out by staff. Burnett agreed with Cbang's comments and felt $1 million was sufficient as insurance. Sorensen said she did not have the opportunity to meet with Sandhill representatives and this information was new to her, so she could not vote on this tonight. Bautista noted that it was important for ail council members to be consulted in advance if any one, or a combination is. Dean was willing to wait for staff review and recommendation. Burner said he felt $1 million was sufficient, and proposed that they try to agree on an aetam! date. Kilian asked if council wanted to include the licensing agreement from Hilton as a condition as well. The Council members concurred. Kilian asked if Council was comfortable having the $1 million deposited when the applicant comes in for building permits for buildings 7, 8, and 9, rather than now. Council agreed to wait for staff's recommendation on that question. Bumett moved to continue this item to September 2, 1997. Chang seconded and the motion carded 5-0. PLANNING APPLICATIONS 23. Application No. 11-U-96 (Modified) - Symantec CC5 Building - Request for approval of a minor modification to an approved use permit for an architectural and site plan and an addition of a cafeteria. Environmental Determination: Categorically Exempt. The project is located at South De Anm Boulevard approximately 400 ft. from the intersection of Rodrignes. Recommended for approval. Community Development Director Bob Cowan reviewed the staff report and showed the changes on a color-coded diagram. The requested changes include a 10-foot extension of the first and second story steps along DeAnza Boulevard, filling in some balcony areas, some architectural details, and having the option to install a cafeteria. .. August l ~, 1~)~)7 (~upertJno (~ity (~ouncll Page Gordon Ciochon, Vice President of World Wide Operations for Symantec, said they are well underway with construction and were requesting council approval of the cafeteria addition prior to submitting it to their board. Lynn Filar, representing HOK Architects, described the design changes in more detail. She explained that the change requested by the Planning Commission is actually a change from a previously approved plan~ because the plan was approved with the stairs. They are asking that the stair design and materials stand as they had originally submitted them. She described the cafeteria area, and said it will be a sort of jewel-like pavilion in the courtyard, which will be a good neighbor to the apartments because it will be very low scale and screened quite well by trees. It will not be visible from DeAnTa based on its location on the plan and the amount of planting around it. Dean moved to approve the application per p]anning Commission Resolution No. 4854, with modifications 1-7 as shown in the staff report. This will allow the elimination of the fourth floor baiconies on the south and east sides, and give Symantec the option to build a cafeteria. Sorensen seconded and the motion carried 4-1 with Burnett voting no. UNFINISHED BUSINESS None. NEW BUSINESS 24. Review of bids and award of contract for Reconstruction of Curbs, Gutters, and Sidewalks, Project 97-106. Public Works Director Bert Viskovich reviewed the staff report. Sorensen moved to (1) Award the project to Tally's Enterprises in the amount of $125,860.00, based on the lowest bid received, and (2) Authorize a 10% contingency amount. Dean seconded and the motion carried $-0. 25. Review of bids and award'of contract for Storm Drain Installation, Homestead Road at DeAnza Blvd., Project 97-104. Public Works Director Bert Viskovich reviewed the staff report. Sorensen moved to (1) Award the project to Ken Leek Company for the amount of $116,281.00; (2) Approve a 10% contingency amount; and (3) Appropriate $135,000.00 from storm drain fund No. 215-9620-953-003. Chang seconded and the motion carried 5-0. 26. Designation of Voting Delegate for League of California Cities Ann]~al Conference. Council concurred to appoint Vice Mayor Chang as the voting delegate for the conference in October. .. August ! g, !/)07 (]upert no City Council Page 27. Need for more effective regulations to control neighborhood blight (Councilmember Dean). Community Development Director Bob Cowan reviewed a memorandum in the packet which was prepared at the request of Council member Dean. Dean outlined the reasons he had requested that this item be considered and suggested the Campbell ordinance as a model. Other Council members agreed that guidelines were needed. City Attorney Charles Kilian spelled out two options available to the Council - a general ordinance or a detailed, specific one. Ms. Ann Anger, President of the Monta Vista Improvement Association, said that she had been working to address the problem of blight in Monta Vista for many years. This ordinance will give the code enforcement officers the authority they need to address the problem. Although some homes in the area are selling for as much as $635,000, there are still some properties that are not well maintained and create a problem with blight. She suggested the ordinance be made very specific to make enforcement easier. Council directed staff to proceed with the following: (1) Schedule a hearing to consider revisions of existing regulations to provide specific mecbanlsms to control neighborhood blight. This shall be done in the form of a single ordinance which inco~t~orates other · - existing ordinances related to control of neighborhood blight with the inclusion of a citation process; and (2) Report back on the potential for expanding controls to include maintenance of front yard landscaping and buildings (such as peeling paint) in single- family residential districts. 28. First reading of Ordinance No. 1765: "An Ordinance of the City Council of the City Of Cupertino Amending Section 11.20.020 of the Cupertino Municipal Code Relating to Establishment of Vehicular Stop and Section 11.20.030 All Directional Vehicular Stop Required at Certain Intersections to Include Prospect Road at the Intersection of Seven Springs Parkway." The City Clerk read the title of the ordinance. Sorensen moved and Dean seconded to read the ordinance by title ordy, and that the City Clerk's reading would constitute the first reading thereof. Motion carried 5-0. 29. First reading of Ordivance No. 1766: "An Ordinance of the City Council of the City Of Cupertino Amending Section 11.08.250 of the Cupertino Municipal Code Relating to the Designation of Bicycle Lanes." The City Clerk read the title of the ordinance. Sorensen moved and Chang seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the first reading thereof. Motion carried 5-0. 30. First reading of Ordinance No. 1767: "An Ordinance of the City Council of the City Of Cupertino Amending Chapter 11.08 of the Cupertino Municipal Code To Add References to Roller Skates and Skateboards." .. August lg, 19 7 Cupertino City Council Page 9 The City Clerk read the title of the ordinance. Sorensen moved and Dean seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the first reading thereof. Motion carried 5-0. ORDINANCES 31. Second reading and enactment of Ordinance No. 1761: "An Ordinance of the City Council of the City of Cupertino Adopting Interim Measures to Protect Structures From Demolition on 31 Potentially Historic Sites." The City Clerk read the title of the ordinance. Sorensen moved and Chang seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the second reading thereof. Motion carried 5-0. Sorensen moved and Dean seconded to enact Ordinance No. 1761. Motion carded 5-0. 32. Second reading and enactment of Ordinance No. 1762: "An Ordinance of the City Council of the City of Cupertino Amending Section 11.20.030, All Directional Vehicular Stop Required at Certain Intersections to Include Bubb Road at the Intersection With th~rnpkin Drive." - The City Clerk read the title of the ordinance. Sorensen moved and Bumett seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the second reading thereof. Motion carried 5-0. Sorensen moved and Bumett seconded to enact Ordinance No. 1762 Motion carried 5-0. STAFF REPORTS None. COUNCIL REPORTS Dean said he had given information to the City Manager and the Public Works Director about a different kinds of news stands. It is a similar concept to the bus stands, where an independent contractor maintains a single, consolidated unit. He had provided the City Attorney with a copy of a prospectus and will also provide Council members with a brochure. Burner said he attended a Northwest Flood Control meeting on the topic of San Francisquito Creek and the area-wide, watershed wide program intended to preserve as. much of the natural creek as possible through a CRMP process. Perhaps an approach like that would work for Calabazas Creek Chang said that he attended a neighborhood earthquake preparedness meeting. The turnout was very good, with over a hundred people in attendance. There is another earthquake preparedness class starting up very soon. Chang also noted that he attended .. August 18, 1997Cupertino City Council Page the California International WuShu Festival which is a marshal arts festival held at DeAnza College over the weekend. They asked him to present a plaque to Mayor Bautista to express their appreciation for the city's support of this event. Bautista said that the plaque would be placed in the Mayor's office. Bautista said that there have been a couple of Economic Development Committee meetings. The most significant subject of discussion is Vallco. Much bas been reported in the press already, but the city is keeping a very close eye on what's happening there in temps of Federated opening a discount center at the old Emporium site. The city also received an invitation to attend a celebration of the Joint Venture Silicon Fast Fifty count on September 18 at the San Jose Fairmont. This is an acknowledgement made to the fifty fastest growing companies in Silicon Valley. Bumett said he planned to attend. CLOSED SESSION None. ADJOURNMENT At 8:25 p.m. the meeting was adjourned to Tuesday, September 2, 1997, 6:45 p.m. ~~~ ySmith City Clerk