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CC 03-17-03 CITY OF CUPEP TINO APPROVED MINUTES CUPERTINO CITY COUNCIL Regular Meeting Monday March 17, 2003 PLEDGE OF ALLEGIANCE At 6:48 p.m. Mayor Chang called the meeting to order in the Council Chambers, 10300 Torre Avenue, Cupertino, California, and led the Pledge of Allegiance. ROLL CALL City Council members present: Mayor Michael Chang, Vice-Mayor Sandra James, and Council members Patrick Kwok, Dolly Sandoval and Richard Lowenthal. Council members absent: none. Staff present: City Manager David Knapp, Administrative Services Director Carol Atwood, City Attorney Charles Kilian, Public Works Director Ralph Qualls, Community Development Director Steve Piasecki, Senior Planner Aarti Shrivastava; Senior Planner Vera Gil; Parks and Recreation Director Therese Smith, Public Information Officer Rick Kitson, and City Clerk Kimberly Smith. CEREMONIAL MATTERS - PRESENTATIONS 1. Proclamation declaring March 16-23 as Safe Place Week. Mayor Chang presented a proclamation to Volunteer Coordinator Amy Choate. Ms. Choate also presented a proclamation to Dolly Sandoval in acknowledgement of her service on the board of advisors for Social Advocates for Youth. Presentation from Cub Scout Pack 453 to Mayor Chang for a donation to the Cupertino Library Campaign. Robert Kang, representing Pack 453, said they had earned $1000 in popcorn sales, and wished to donate $560 to the Library Foundation for supplies for the new library. Mayor Chang received the check on behalf of the Foundation. Cupertino Library Foundation Chair Pat Rogers and Cupertino Library Campaign Chairperson Barbara Rogers thanked the cub scouts for their donation. Proclamations were also presented to the following individuals: Phyllis Ishida, DDS, for Small Business of the Year, and Michael Lashen, Outstanding Individual of the Year. March 17, 200g (~uperf~no City Council Page 2 POSTPONEMENTS - None WRITTEN COMMUNICATIONS ORAL COMMUNICATIONS Penny Whittaker, 20622 Cheryl Drive, said that at the General Plan study session on March 4, public comments were restricted to the second part of the meeting and they did not have an opportunity to talk about housing and building heights. Ms. Whittaker talked about the ABAG (Association of Bay Area Governments) housing requirements, asked why the additional units were needed, what would be the consequences of not meeting ABAG requirements, and how could citizens give input to ABAG. Sandra James responded and explained that the worst case would be the City could lose its rights to issue permits at a local level. She noted that the City did challenge the ABAG numbers recently and they had been substantially reduced as a result. Dennis Whittaker, 20622 Cheryl Drive, said he hoped that Council had seen the videos he provided of the community meeting. He referred to the last General Plan study session, which had been advertised as an opportunity for community input. He understood the reason for the most recent meeting (the meeting went until after midnight) but asked that Council give the residents an opportunity to participate and be heard. He said that the General Plan should be developed with a vision, and the bottom line issue for citizens is to have growth the right way. He felt that Cupertino should retain its own character and maintain the high quality of education. One area not addressed as thoroughly as it could be is cooperation between DeAnza College and the City. Mr. Whittaker felt that housing was needed more for the City's service workers, not college students, because DeAnza is a regional college. Andrew Patti, 21853 Monte Court, and Brian Franklin, 21885 Garden View Lane, talked about the current law that requires sidewalks to be placed in front of a home during renovation, and requested an exception process. Public Works Director Ralph Qualls said there is a provision in the proposed General Plan update that would provide area-by-area exceptions for more rural areas, and in some cases the Cty can accept a bond in lieu of sidewalk. If the Council approves the new process, neighborhoods can apply for a special exception in that district and the bond can be refunded to them. E. J. Conens, 10480 Pineville Avenue, asked for Council to adopt a resolution in support of the military, and support our military people. The Council members expressed their support for the U.S. military, and explained that Council has a policy of not adopting resolutions unless they are of local significance. Yao Shing Schuan, 21441 Elm Court, spoke regarding a flooding problem in the past, and expressed appreciation for previous help. He asked about engineering studies and plans to prevent future flooding on Elm Court. He said that most of the problem seems to be manhole overflow and floodwaters from Bubb Road and suggested that Buhb Road be leveled upstream and downstream. March 17, 2003 Cupertino City Council Page 3 CONSENTCALENDAR Lowenthal moved and seconded to approve items 3-8 on the Consent Calendar as recommended. Item 9 was deferred until after item 14, and items 10 and 10a which were pulled for discussion. Vote: Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. Absent: None. 3. Approve the minutes from the March 5 City Council meeting. Adopt resolutions accepting Accounts Payable for February 28 and March 7, Resolution Nos. 03-049 and 03-050. 5. Adopt a resolution accepting Payroll for March 14, Resolution No. 03-051. Accept the Treasurer's Budget Report - January 2003. (Attachments to the Treasurer's Report were distributed at the meeting). Improvement agreement, Republic Properties, 22551, 22561, 22571, and 22581 Ricardo Road, APNs 356-01-051,052, 053, and 054, Resolution No. 03-052. Adopt a resolution setting the date to approve the annexation of area designated "Byme Avenue 02-08", property located on the west side of Byme Avenue between Granada Avenue and Hermosa Avenue, approximately 0.41 acre, Perez (APN 357-11-005), Resolution No. 03-053. (Draft resolution No. 03-053 was distributed at the meeting). ITEMS REMOVED FROM THE CONSENT CALENDAR (above) 10. Approve a fee waiver request in the mount of $1,305.00 for the Lunar New Year Unity Parade Committee's use of various city sites for their March 8, 2003, first annual event. Kwok/Sandoval moved and seconded to approve the fee waiver request, Vote: Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. Absent: None. 10a. Make appointments to the Community Development Block Grant (CDBG) Steering Committee. KwolqJames moved and seconded to appoint Don Bumett, Mary Ellen Chell, Dick Schuster, and Marsha Brewer for a one-year term to the CDBG Steering Committee as recommended by staff. Vote: Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. Absent: None. PUBLIC HEARINGS 11. Consider abating a public nuisance (overgrown foliage which obstructs the street and sidewalk) at 7535 Normandy Lane, APN 366-11-151,William and Elena Kettler property owners, Resolution 03-054. March 17, 2003 Cupertino City Council Page 4 The City Clerk announced that the property owner has abated the nuisance. Mayor Chang opened the public heating at 7:37 p.m. There were no speakers and the hearing was closed. James/Kwok moved and seconded to remove this item from the calendar. Vote: Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. Absent: None. Administrative Services Director Carol Atwood said that staff will bring to Council a proposed ordinance to bill residents for City costs leading up to the abatement of re- occurring nuisances. PLANNING APPLICATIONS 12. Application Nos. U-2002-11 and EA-2002-23; Use Permit to allow the demolition a 7,744 square foot restaurant (former Santa Barbara Grill) and construct a 120-room hotel (Extended Stay America), located at 10745 N. De Anza Boulevard. A Mitigated Negative Declaration is recommended and this item is recommended for approval. Elevations from the Design Review Board Re-Submittal were distributed at the meeting. Senior Planner Aarti Shrivastava gave a PowerPoint presentation that included information on parking, landscaping, and transient occupancy tax. Applicant J. R. Rodin representing Extended Stay America, said he was concemed about the 29-day limitation for guests, and asked for clarification of that condition or a mechanism to allow guests check out and immediately re-register, so that they will not be forced to move around. Rodin said the hotel would probably open in late 2004 and the company plans to move ahead with development at this time. Steve Peters, the Bay area corporate real estate manager, explained that the hotel caters to corporate travelers who are in town 2-3 weeks at a time. He said that there had been a lot of support for this service expressed by local businesses during their research. Kevin Chow, architect, gave a PowerPoint presentation on design concepts, landscaping, the public plaza with artwork, floor plan, and building materials. He said that parking was adequate and more than exceeds the minimum standards. There is no cocktail lounge or restaurant, and a shuttle service will be used instead of the hotel having a permanent shuttle. Chang was concerned about the layout of the building and the size of the structure as a first impression for drivers entering Cupertino. The architect said that the layout was designed to preserve the large oak tree on the property. Kwok was also concerned about the four levels of building providing a large mass for drivers exiting the freeway. The following individuals spoke in opposition to the construction of a new hotel. Their comments included: the market changes, especially since the September 11 attack, have had an adverse impact on the hotel industry, and the market is reaching a saturation point March 17, 2003 Cupertino City Council Page in Cupertino. Transient Occupancy Tax (TOT) is important for the community, but adding hotels does not increase the number of guests in town, so the hotels compete for guests by lowering their rates, which lowers the TOT. The existing hotels are struggling and employees are losing their jobs. Salaried staff at the Cupertino Inn has already taken a large reduction in pay, and existing clients are reporting that they are continuing to cut back on travel. Barbara Perzigian, General Manager, Cupertino Inn, 10889 N. DeAnza Boulevard Christian Olsen, Marketing Manager, Cupertino Inn Bryan Adame, Cupertino Inn employee Leann Hall, Assistant General Manager, Cupertino Inn Sheila Leimer, Director of Sales, Cupertino Inn Aaron Douchinski, Reservations Manager, Cupertino Inn Brandie Rivera, Sales Manager, Cupertino Inn Derrick Douchinski, Front Office Manager, Cupertino Inn Steve Peters said that he was empathetic to the problem and that hotels all over the area are experiencing a drop in business. Historically this is a cyclical business, and their research shows that although demand will remain flat in 2003, it will increase in late 2004 to 2005. The Extended Stay America is in a different price point than the Inn and offers a different product. Lowenthal said he generally supported competition but was persuaded that Cupertino doesn't need more hotel rooms. He thinks recovery will be a long-term process, and current businesses should be successful, if not thriving. Also, the building is large and not particularly beautiful, and the community has expressed its desire to pull back on growth. This is an opportunity to pull back on a 4-story building that is not needed. Kwok felt it was important that current businesses are successful, and he was not in favor of a four-story structure right next to the freeway. He suggested this project be delayed for a year or two. James said it was interesting that the other hotels did not come here to discourage the project. She said it was not Council's role to limit competition or free enterprise. The applicant has been working with staff for nearly a year, and was never told the City was running out of space for hotel rooms. Also, some of the bigger companies in town are sending people to Saratoga or San Jose because of better marketing of hotel rooms and long-term deals. Extended Stay America is a different market niche than the Cupertino Inn. She thought the exterior design had been approved since the first submittal, and she had no objection to the height, since it was the same height or lower than other businesses on the same street. Sandoval agreed with James' comments about a free market and encouraging enterprise, and that the City's hotels all serve different niches. March 17, 2003 Cupertino City Council Page 6 Chang said he had concerns regarding the design as well as timing. He would have preferred more choices, with less height and mass next to freeway, particularly for this gateway building. He recommended it be sent back to the Planning Commission to work on design issues, and have it come back to Council in 9 months or a year. Administrative Services Director Carol Atwood said the Environmental Review Committee discussed this matter and felt it was not the city's job to limit competition. They believed that this is a regional issue, and neighboring cities will continue to grow and build hotels even if Cupertino doesn't. When the recession is over, that business will go elsewhere. Also, the developer has the expertise to determine if it is appropriate to build now, and it would provide jobs over the next 18 months. James/Sandoval moved and seconded to approve the proposal. Motion failed and the project was not approved. AYES: James and Sandoval. NOES: Chang, Kwok, and Lowenthal. UNFINISHED BUSINESS - None NEW BUSINESS 13. Adopt a resolution supporting the creation of a National Housing Trust Fund, Resolution No. 03-055. Barry Del Buno, CEO and president of the Emergency Housing Consortium, said that lack of affordable housing threatens the City's economic well-being. He asked for Council's support of the National Housing Trust Fund. Ron Johnson, Vice-President of the Affordable Housing Network of Santa Clara County, also spoke in support of the National Housing Trust Fund. Sandoval/James moved and seconded to adopt Resolution No. 03-055. Vote: Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. Absent: None. 14. Discuss midyear budget amendments and policy review: a) b) c) d) Mobile skate park schedule Fee waiver policy direction Fourth of July policy direction Adopt midyear budget amendments Administrative Services Director Carol Atwood gave a PowerPoint presentation and discussed previous actions that had been taken, such as reviewing internal policies and funding an additional year-end shortfall with the Economic Uncertainty Reserve. She reviewed plans for 2003/2004, which included reducing the Operations budget by $1 million, reducing the Capital Improvement Projects budget by $1 million, and reducing March I 7, 2003 12upert~no C{ty Council Page the Economic Uncertainty budget by $1 million. Atwood also reviewed the proposed mid-year budget amendments. Parks and Recreation Director Therese Smith reviewed proposed changes to the mobile skate park schedule, changes in the facility rental fee waiver policy, and changes in the Fourth of July event, which cannot be held at DeAnza College this year because of construction on campus. Sharon Blaine, DeAnza Circle, said she was a member of the Cupertino Historical Society, and it would be unable to pay the $40-$50/night fees for their meetings to continue at the Quinlan Center. Barbara Rogers explained that because Cupertino Community Services and the Historical Society are housed in that building, they can continue to use the facility without charge. James/Lowenthal moved and seconded to approve the recommendations shown in the staff report, with the following exceptions: (1) They will not fund the fountain repair at the Quinlan Center; (2) They will keep the fireworks display; (3) They will not change subsidies for festivals; and (4) They will no longer give waivers for room rental fees. Vote: Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. Absent: None. Sandoval/James moved and seconded to allow fee waivers through June 30, and not thereafter. Vote: Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. Absent: None. ITEMS REMOVED FROM THE CONSENT CALENDAR - continued Approve a fee waiver request in the amount of $120.00 for the Santa Clara County Chapter of the California Grand Jurors' Association's educational classes given at the Quinlan Center monthly from April through September 2003. Sandoval/James moved and seconded to grant a partial fee waiver from April 2003 through June 30, 2003. Thereafter fee waivers will not be granted for rooms. The motion carried by the following vote: Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. Absent: None. NEW BUSINESS - continued 15. Consider naming opportunities offered in conjunction with the Library/Civic Center fundraising efforts and authorize the Cupertino Library Campaign Committee to seek contributions based on an approved list. Barbara Rogers, Chair of the Cupertino Library Foundation Committee, asked that the Council first discuss and decide only the existing list of naming opportunities before taking up any other discussion on this category. She also asked that Council not adopt the word "authorize" as recommended in the staff report, but to retain the word "confirm" March 17, 2003 Cupertino City Council Page because it is important that the Library Campaign Committee retain some autonomy in the fund-raising effort. If Council decides not to confirm one or more of their decisions, then that particular naming opportunity would not be pursued. The co-vice chairmen are Council members Michael Chang and Richard Lowenthal, and she would make regular reports to the City Council, so they will be kept informed of any activity. Consultant Mary Rose Delgadillo said that she had felt overwhelmed by the level of community support for the foundation. However, it is important that the committee have the list finalized since it is a critical tool in their fund-raising effort. Pat Rogers, President of the Cupertino Library Campaign Committee, agreed with Barbara Roger's request to have a finalized list, and their preference to keep the wording so that the Council "confirms" the Foundation's decision instead of "authorizing" it. If Council objects to a particular funding opportunity, then they would not confirm that decision and it wouldn't happen. Dennis Whittaker, 20622 Cheryl Drive, said he had some concerns about naming parts of buildings. If that decision is made, it should be made after someone who has made a contribution to the community, and not someone who just pumhased the opportunity to name the building. Sharon Blaine, DeAnza Circle, felt that naming rooms and lobbies, etc., was a clever way to raise money. She noted that this city has a tradition of naming schools after people who donated the land. Michael Chang explained that the proposal is to name the structure, but the building will still be known as the Cupertino Community Hall, for example, and an individual will have a plaque acknowledging the financial support. Sandra James said she felt strongly that the building itself is a public building paid for by the taxpayers, and it should not have an individual's name. She saw no problem with naming the interior of the building, the fountain, separate rooms, etc. She said the community hall and the library should not be for sale. However, if that was the Council's decision, then a process should be developed which would allow participation by the entire community. Lowenthal/S andoval moved and seconded to (1) Confirm a new naming opportunities list as shown below, excluding the Community Hall Building; (2) To authorize the Library Foundation Committee to solicit funding; (3) That the dollar amounts shall be left to the discretion of the committee; (4) That acceptable names shall be those of individuals, families and service organizations connected with Cupertino; and (5) That there is no need for confirmation of individual names by City Council. Vote: Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. Absent: None. March 17, 2003 Cupertino City Council Page 9 Naming Item · Courtyard · Children's Room · Adult Nonfiction Area · Children's Story Room · Adult New Materials/Media · Adult International Languages Area · Library Outdoor Sculpture · Teen Area · Adult Fiction Area · Lobby · Adult Reference Area · Computer Training Area · Califomia Western Americana Area · Children's Picture Book Area · New Magazine's Display Area · Children's Group study area · Teen Group Study Area · Adult Quiet Study Area · Grand Stair · Express Self-Check Machines · Business Resoumes Area · Adult Seating Overlooking Plaza · Children's Tutor Study Room · [Community Hall] Lobby · Dais · North and South Terraces (2) · Conference Room · Plaza Water Fountains · Covered Arcade · Plaza Garden Areas (4) · Stone Benches in Plaza (4) Consultant Mary Rose Delgadillo and Public Works Director Ralph discussed naming policies used in other communities. James/Lowenthal moved and seconded to continue this item to the next regular council meeting for the purpose of allowing public input regarding the naming of public buildings. The motion failed to can'y by the following vote: Vote: Ayes: James and Lowenthal. Noes: Sandoval, Chang, and Kwok. Absent: None. March 17, 2003 Cupertlno Clty ~ouncll Page Sandoval/Kwok moved and seconded that Council add the corrnnunity hall building back to the list of facilities for which the library foundation can solicit funding, and specify language for identification plaques. Sample wording is shown below: CUPERTINO COMMUNITY HALL JANE DOE COMMUNITY BUILDING IN RECOGNITION OF A MAJOR CONTRIBUTION BY THE DOE FAMILY TO THE CUPERTiNO COMMUNITY HALL. The motion carried by the following vote: Ayes: Chang, Kwok, Lowenthal, Sandoval. Noes: James. None. Absent: None. James asked that the record reflect that she was extremely disappointed that the Council did not choose to wait two weeks to allow community input regarding selling fights to name the building, and instead chose to make this important decision at a quarter to twelve tonight. The final approved list of naming items is as follows: Naming Item · Courtyard · Children's Room · Adult Nonfiction Area · Children's Story Room · Adult New Materials/Media · Adult International Languages Area · Library Outdoor Sculpture · Teen Area · Adult Fiction Area · Lobby · Adult Reference Area · Computer Training Area · California Westem Americana Area · Children's Picture Book Area · New Magazine's Display Area · Children's Group study area · Teen Group Study Area · Adult Quiet Study Area · Grand Stair · Express Self-Check Machines · Business Resources Area March 17, 200 Cupertino City Council Page 11 16. · Adult Seating Overlooking Plaza · Children's Tutor Study Room · [Community Hall] Lobby · Lobby · Dais · North and South Terraces (2) · Conference Room · Plaza Water Fountains · Covered Arcade · Plaza Garden Areas (4) · Stone Benches in Plaza (4) Sandoval moved that Council discuss the naming of the library structure at a subsequent meeting when staffhas had an opportunity to develop a policy. James seconded and offered a friendly amendment to add the words "to allow ample time for community notice and input." Sandoval accepted the amendment. Chang offered a friendly amendment that the staff be directed to work with the Library Foundation regarding funding. Sandoval refused the amendment, and Chang withdrew his motion. A vote was taken on the original motion and amendment to discuss the library structure naming at a subsequent meeting, and it carried unanimously. Vote: Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. Absent: None. Adopt policy on legislative priorities. Sandoval/James moved and seconded to accept the general guidelines £or evaluation and response for legislative and ballots measures. Measures should be pertinent to at least one of the following: · Protect local revenues · Protect or increase local government discretion · Protect or increase funding for specific programs or services (e.g. park bonds) · Support key programmatic goals (e.g. expansion of recyclable materials) · Prevent unfounded mandates · Be consistent with existing city policy · Have a direct impact on the city And the top five priorities are: · Long-term finances · Infrastructure · Land use planning · Affordable and attainable housing March 17, 900~ Cupertino City Council Page · Traffic calming The motion camed unanimously. Vote: Sandoval. Noes: None. Absent: None. Ayes: Chang, James, Kwok, Lowenthal, 17. 18. 19. Set date for a Silicon Valley Animal Control Authority (SVACA) meeting. (No documentation in packet). Council concurred to hold the meeting on Friday, March 28, at 4:15 p.m. Select application deadline and interview dates for Teen Commission applications. Council concurred to establish a deadline of May 9 for applications; to conduct interviews on June 3 at 5:00 p.m.; if there are more than six applicants in a grade, the Clerk will provide a matrix for Council ranking by May 15, to be returned by May 21; and to direct that the Parks and Recreation staff distribute reminder notices and brochures to middle and high schools in the Cupertino corporate limits, with emphasis on Kennedy and Hyde Middle Schools. Conduct the first reading of Ordinance No. 1916: "An Ordinance of the City Council of the City of Cupertino Amending Chapter 11.08.270 Related to Skateboarding and Roller Skating at the Civic Center Plaza." The City Clerk read the title of the ordinance. James/Lowenthal moved and seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the first reading thereof. Vote: Ayes: Chang James, Kwok, Lowenthal, Sandoval. Noes: None. Absent: None. ORDINANCES 20. Conduct the second reading of Ordinance No. 1914: "An Ordinance of the City Council of the City of Cupertino Amending Section 11.24.170 of the Cupertino Municipal Code Relating to Parking Limitation on Certain Streets, Establishing a 30-Minute Limited Parking Zone on Bonny Drive, Scofield Drive, and Pepper Tree Lane, in the Vicinity of Faria School." James/Lowenthal moved and seconded to read the ordinance by title only and that the City Clerk's reading would constitute the second reading thereof. Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. Absent: None. James/Lowenthal moved and seconded to enact Ordinance No. 1914. Ayes: Chang, James, Kwok, Lowenthal, Sandoval. Noes: None. Absent: None. STAFF REPORTS March 17, 200g Cupertino City Co,ell Page 21. Receive interim report on proposal from Council member Sandoval regarding a City policy on Responsible Contracting. The Public Works Director said that staffwas working on this project, and has received a number of responses to questionnaires. He will give a full report on April 7. Council received the report. Sandoval handed out her proposed policy, which had one new correction since it was last distributed to the Council members. She said a responsible contracting policy should cover all public works projects, not just the library project, and should have a mechanism for enforcement. 22. Receive a monthly status report on the Cupertino Civic Center and Library Project. The Public Works Director showed a video roll-in of the progress of the demolition project, and distributed a list of bid alternates that Council may wish to consider. Council received the report. COUNCIL REPORTS Council members highlighted the activities of their committees and various community events, and concurred to move the CREST (Cupertino Recognizes Extra Steps Taken) awards to Friday, May 16, at 7:00 p.m. in the Council Chambers so that they can attend a state budget briefing. CLOSED SESSION - None ADJOURNMENT At 12:18 a.m. the meeting was adjourned to Friday, March 28, 4:15 p.m. in the Council Chambers to discuss the Silicon Valley Animal Control Authority (SVACA). Kimberly Smith~TCity Clerk For more information: Staff reports, backup materials, and items distributed at the meeting are available for review at the City Clerk's Office, 777-3223. Televised Council meetings may be viewed live on Cable Channel 26, and may also be viewed live or on demand at www.cupertino.org. Videotapes of the televised meetings are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364.