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CC 06-02-03CITY ( APPROVED MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Monday, June 2, 2003 CALL TO ORDER At 5:43 p.m., Mayor Michael Chang called the meeting to order in City Hall Conference Room C, 10300 Torre Avenue, Cupertino. ROLL CALL City Council members present: Mayor Michael Chang, Vice-Mayor Sandra James, and Council members Dolly Sandoval and Richard Lowenthal. Council members absent: Patrick Kwok. James/Lowenthal moved and seconded to excuse the absence of Council member Patrick Kwok. Vote: Ayes: Chang, James, Lowenthal, Sandoval. Noes: None. Absent: Kwok. Staff present: City Manager David Knapp, Administrative Services Director Carol Atwood, City Attorney Charles Kilian, Public Works Director Ralph Qualls, Commtmity Development Director Steve Piasecki, Public Information Officer Rick Kitson, and City Clerk Kimberly Smith. MEETING WITH SUPERVISOR LIZ KNISS - 5:30 p.m. - Conference Room C 1. Discuss issues in Cupertino. Supervisor Liz Kniss was accompanied by policy aide Pattie Christman. She gave an update on the County's current economic status and the Board of Supervisor's plans to address the current budget shortfall as well as future impacts from the State of California's budget shortfall. She said that she could see no negative economic ramifications for the Cupertino Library and Sheriff services at this time. Discussion followed regarding plans for a ballot measure to extend financial support for the library system, and differences in development standards between the City and the County. Supervisor Kniss said she would provide the Council with information about any plans for the quarry areas, whether library hours can be reassigned to other days, and a list of the County's property holdings and their value. Susan Sievert, Cupertino resident, spoke of the importance of retaining a neighborhood identify for Monta Vista if it were to become annexed by the City of Cupertino. June 2, 2003 Cupertino City Council Page 2 RECESS Council was in recess from 6:40 p.m. to 6:50 p.m. PLEDGE OF ALLEGIANCE At 6:55 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 Dolly Sandoval and Richard Lowenthal. Council members absent: Patrick Kwok. 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, City Planner Cynthia Wordell, Senior Planner Vera Gil, Senior Building Inspector Greg Casteel, Parks and Recreation Director Therese Smith, Public Information Officer Rick Kitson, and City Clerk Kimberly Smith. CEREMONIAL MATTERS - PRESENTATIONS - None POSTPONEMENTS - None WRITTEN COMMUNICATIONS - None ORAL COMMUNICATIONS Albert Lee identified himself as the co-president of the Organization of Chinese Americans (OCA), Silicon Valley Chapter, a nonprofit advocacy organization with 44 chapters across the United States. He referred to a San Jose Mercury News editorial about Vice-Mayor James and library fundraising, and said he objected to her choice of words, "these people," "those people," and "my population." Vice-Mayor James said she had met twice with Mr. Chan, and they had discussed the library naming issue, among other projects. She said that Mr. Chan did not believe this was a racial issue, he understood the need for a policy and a process, and he was still interested in contributing to the project. She said she used the words "my population" to refer to all the residents of Cupertino. She encouraged Mr. Lee to not believe everything reported in the paper. James also read an email from a person who said he was an Asian American who had objected to the events reported in the articles, but after watching the tapes and reviewing her voting record, he agreed her comments were taken out of context and he apologized. Lynette Lee Eng, co-president of the OCA, Silicon Valley Chapter, said that Vice-Mayor James had demonstrated a lack of sensitivity to the community and intolerance to the city's changing demographics. She asked for an apology to the Asian Pacific American community, and June 2, 2003 Cupert{no City Counc{l Page recommended the Council members take part in diversity training. She said the OCA would like to educate the Council in the impact of current initiatives regarding civil rights. Anita Yee, Cupertino resident and treasurer of the OCA Silicon Valley Chapter, said she appreciated James's statement, but would proceed to read comments that were written before James spoke. Ms. Yee said that the good intentions of donors in a bad economy should not be questioned where education and teacher funding is threatened. She said publicity may have been unfairly written, but readers are potential donors, and she asked what steps Council will take to address the impression that has been made. Richard Madden said his Imperial Avenue house recently blew up as a result of a damaged gas line. He thanked the City of Cupertino, the County Sheriff's Office, and County Fire for their help to him and his wife, and for protecting the lives of other residents. He said he appreciated the City's emergency response training program (CERT), which made it possible for him to deal with the emergency. He thanked the people of the community who offered their help and support, many of whom he has never met. Bob Hendrickson, 10535 Mira Vista Avenue, said that when someone does not understand a remark, they should ask the speaker for an explanation instead of going to the news media. Mayor Michael Chang said that since Vice-Mayor James made a statement of clarification, he would so as well. He said that, speaking on behalf of himself, people shouldn't make assumptions that council went to the news media to stir things up. Council member Lowenthal said that the reporter who wrote the article had asked him if it were a racial issue, and he told her twice that it was not. He said that he was not quoted in the article. Jan Black, 20118 Garden Drive, said the recent San Jose Mercury News articles regarding divisiveness and racism irritated him, and that playing the race card would cause a backlash. He said that Vice-Mayor James had a right to her comments, and he did not feel there was any racial intent. He offered his recommendations for a naming policy, which would include being a long- time Cupertino resident who had made major contributions in the cultural, social, educational, or business fields. Cathy Gatley said that when Vice-Mayor James questioned the naming of a public building, she was called names, but at other times a Council member represents only one group, and no one notices. She said another example occurred at Monta Vista this year at the graduation ceremony when there were six speakers, who were all Asian. She said it was good they were there, but that diversity should go both ways. June 2, 2003 Cupertino City Council Page 4 Dean Sayre, 10805 S. Stevens Canyon Road, complained about the poor quality of the Stevens Canyon Widening project, and said that the $1.3 million had created only a cosmetic change without improving safety, as well as creating a number of problems for the neighbors. Justin James, 640 Graham Hill Road, said that he was the son of Vice-Mayor James. He asked Mayor Chang if the Mayor thought Sandy James was racially biased in any way. Mayor Chang said that he was troubled by the comments she had made, and that different people could interpret the things she said differently. Justin James said he didn't know why the Mayor wouldn't say in front of everyone that Sandra James is not a racist, when Chang had told him that in the hallway just before the meeting. Justin James also asked Council member Sandoval the same question. Sandoval said she did not think Vice-Mayor James is a racist. Sandoval said that she was approached by the media, and before she spoke to them, she and Vice-Mayor James had discussed the intent and interpretation of comments made by James about the Library naming, and they have differing opinions. Sandoval said for the record that when a person has experienced discrimination, whether trying out for a speech for a high school graduation, or trying out for a job, or in the case of sexual harassment, it sometimes doesn't come down to the fact of exactly what was said, but it comes down to the intent or the perception. Justin James said the real issue was the need for a process to name a public building in the city. He cited the example of PacBell Park, which had no process for removing the Enron sign, which then remained on display through the end of the World Series. Mayor Chang agreed that a policy is needed which would be fair to all who wish to donate to the city. Sandra James said that the issue she raised was about a deal that had been made without public scrutiny, which she felt should have been done in public. She said there should be a policy and a process in place, and then the public can decide whether to name the public buildings or not. Julin Lu, 147 Cast Road, Mountain View, said that he was with OCA and that they were objecting to Sandra James' remarks which they felt were offensive and biased, and he urged citizens to demand an apology. Dennis Whittaker, 20622 Cheryl Drive, said that he was the person who initially raised concerns about naming public buildings when he talked about the keynote speaker at Pepperdine University who was indicted by the Securities and Exchange Commission (SEC) two months after his keynote speech. Whittaker apologized to the Council and to the audience, and said that he accepted responsibility for starting the controversy. Rich Abdalah, 1019 Crooked Creek Drive, Los Altos, said that on March 17, the Council voted to accept a monetary gift to name the building but there had been no public notice and he asked why the identity of the donor was kept secret. Sandoval clarified that the Council didn't vote to accept a donation, but instead voted 4-1 to accept a listing given by the Library Foundation to accept contributions. She said that in July, the Council voted unanimously to offer the community hall as one of the naming opportunities for which the Foundation could raise funds. June 2, ~2003 Cupertlno (~ty Council Page Council asked the City Attomey Charles Kilian for his recollection. Kilian said he recalled saying on March 17 that before a name went on any building that Council must vote to appropriate money for the plaque, among other things, and that the decision Council made that evening was more in the nature of direction to a committee to fundraise. Kilian said that the name of a particular person wouldn't be relevant until the time Council actually accepted and appropriated the money. Chang said that the naming list was unanimously approved in July 2002, and was later revised by the Council, and there was no deal. James disagreed and said that the record indicates that Lowenthal said that "A deal was made and it couldn't be reneged." Amber Lindsay said that she is Sandra James' daughter. She asked Mayor Chang what he meant when he used a phrase about the "well being poisoned" or "tainted." Chang said that James had used a negative and combative posture and it halted the fundraising campaign because people's names had been paired with potential or past criminals. CONSENTCALENDAR Lowenthal/Sandoval moved and seconded to approve the items on the Consent Calendar as recommended. Vote: Ayes: Chang, James, Lowenthal, Sandoval. Noes: None. Absent: Kwok. 2. Approve the minutes from the May 5 and 12 City Council meetings. Adopt resolutions accepting Accounts Payable for May 16 and May 23, Resolution Nos. 03-098 and 03-099. 4. Adopt a resolution accepting Payroll for May 23, Resolution No. 03-100. 5. Approve public access producer grants. Formally appoint Council member Richard Lowenthal "Ex-Officio" member and Carol Atwood as a staff alternate to the Silicon Valley Animal Control Authority (SVACA) Board. A) B) Adopt a resolution to approve the agreement for the countywide AB 939 implementation fee, Resolution No. 03-101 Adopt a resolution to approve the agreement for countywide household hazardous waste collection services, Resolution No. 03-102 Accept city projects performed under contract: Reconstruction of Curbs, Gutters and Sidewalks, Project No. 2002-02. (No documentation in packet). Authorize execution of improvement agreement: Richard J. Perez and Grace Perez, Husband and Wife as Joint Tenants, 10091 Byme Avenue, APN 357-11-005, Resolution No. 03-103. ITEMS REMOVED FROM THE CONSENT CALENDAR (above) June 2, 2003 Cupertino City Council Page 6 PUBLIC HEARINGS 10. Consider the City of Cupertino Community Development Block Grant (CDBG) Program Citizen Participation and Consolidated Plans. Consultant Diana Elrod reviewed the Consolidated Plans and the Citizen Participation Plan. Senior Planner Vera Gil reviewed the purpose of the one-year action plan. At 8:10 p.m. the public hearing was opened. Them were no speakers, and the hearing was continued to June 16. 11. Consider abating a public nuisance regarding substandard structure, overgrown vegetation, abandoned cars, and debris at 10467 Glencoe Drive, APN 326 30 106, Mr. Robert T. Damask, property owner, Resolution No. 03-104. Senior Building Inspector Grog Castillo gave a slide presentation illustrating the damage to the property. He said he had been working with the property owner for several months regarding the abatement of the public nuisance for several months, but Mr. Damask was no longer responding. Notice of this meeting had been sent to his last known addresses, at this location and in Palo Alto. The property had also been posted with a notice. Pat Koren, a resident of the neighborhood, said she had complained to the County of Santa Clara about the maintenance of this house and property when she moved in 19 years ago. She said she was in favor of its demolition. James/Sandoval moved and seconded to adopt Resolution No. 03-104. Vote: Ayes: Chang, James, Lowenthal, Sandoval. Noes: None. Absent: Kwok. 12. Consider the 2003-04 budget. Administrative Services Director Carol Atwood repeated the slide presentation she had made at the budget study session of May 27. She said that in March staff presented mid-year cuts of approximately $1.4 million primarily due to the recession and decline in revenues. This fiscal year, the City may have to dip into its economic uncertainty reserve, although savings from departmental budgets may help. She said the reserve policy is $15 million consisting of a $5 million Capital Improvement Project (CIP) reserve, a $2.5 million economic uncertainty reserve number one, and a $7.5 million economic uncertainty reserve number two. Council has dipped into the CIP reserve by $5 million to fund the 5?year CIP, primarily the library, and that the city will replenish those reserves before spending additional money on new capital improvement projects. Atwood said that for the projected 2003-04 budget, the City is looking at actual reduced operating expenditures. The assumption is that the economic downturn will continue and there are no new revenue sources on the table. The revenue at risk from the state is June 2, 2003 Cupertino City Council Page 7 expected to be about $2 million, bm more information will be available November. She said that expenditure budgets have been reduced from prior years and this year, the City has had to cut services. If the state takes away more than $2 million, the City will look at layoffs and service reductions similar to those of neighboring cities. Atwood discussed revenue strategies, including a city-wide fee analysis to re-cap the cost to provide service to the residents and requiring permits for oversize load vehicles to help pay for street repair. The public hearing was opened at 8:38 p.m. Shelia Mohan, representing the Library Commission, thanked the Council for amending their budget to continue to provide financial support for 4 hours at the Cupertino Library every Sunday. The public hearing was continued to June 16. PLANNING APPLICATIONS - None UNFINISHED BUSINESS 13. Reconsider denial of Application U-2002-11 and EA-2002-23, Freiheit & Ho Architects, Inc., for a Use Permit to demolish a 7,744 square foot vacant restaurant (former Santa Barbara Grill), and construct a 120 - room hotel (Extended Stay America), located at 10745 N. De Anza Boulevard, APN 326-10-064, Resolution No. 03-107. (Continued from May 19). Senior Planner Aarti Shrivastava reviewed the staff report. Council received the following materials at the dais: (1) A letter dated May 31 from the Hilton Garden Inn, requesting that Council deny the reconsideration request; (2) An email dated June 2 from Darryl Stow in support of the application by Extended Stay America; (3) An email dated June 2 from Lisa Kershner of the Cypress Hotel asking that the application be returned to the Plarming Commission for review; and (4) A hard copy of the slide presentation given by the application later in the evening. Mr. Steve Peters, representing the applicant, gave a slide show illustrating the changes that had been made in the project and described various options. He said that if this project were to be approved, they would agree to not open for business until 2005 and to work with other hotels to refer guests back and forth. He said that staff's revised Condition No. 4, pushing the top floor back, would not be feasible. They do accept the suggestion to work with the Design Review Committee to add additional canopies. He said they also wish to work with the City Attorney to determine a method to retain transient occupancy tax (TOT) revenues for extended stays, and he asked that any revisions to this project be returned directly to the City Council and not the Planning Commission. June 2, 2003 Cupertino City Council Page 8 The following individuals spoke in opposition to the Extended Stay America Hotel. Their comments included a request that the hotel require the same level of architectural standards and quality of service as other local hotels; the feeling that a hotel of this type is not of the appropriate caliber for Cupertino; concern about poor occupancy rates and increased competition causing a drop in room rates and a resultant drop in transient occupancy tax revenues for the city; objection to the size and architecture of this building at a Cupertino gateway; and that support is needed to keep existing hotels healthy. Uma Krisman, (comments made in writing) Steve Torres, Joie de Vivre Hospitality Lisa Kershner, General Manager, Cypress Hotel David Powell, Sales Manager, Cypress Hotel Peter Ferretti, Executive Assistant manager, Cypress Hotel Peggy Chen, Property Controller, Cypress Hotel Georges Rubio, Director of Sales and Marketing, Cypress Hotel Barbara Perzigian, General Manager, Cupertino Inn Sheila Leimer, Director of Sales, Cupertino Inn Michael McClintock, General Manager, Hilton Garden Inn Dennis Whittaker, 20622 Cheryl Drive, said he was speaking on behalf of Concerned Citizens of Cupertino (CCC) and himself. He said he believed the economy would improve, and that the CCC does not oppose the plan or the building or its height, but they were concerned about the massing of the building. They felt it should go back to the Planning Commission to insure that all procedures were correctly followed. Carl Hays, franchisee of Outback Steakhouse, spoke in favor of the hotel project. He said this was a valuable project and that it would provide a different product to the community. Paul Weir, Facilities Manager at Net Manage, spoke in favor of the project. He said they were closing other buildings and negotiating a long-term lease at their Cupertino site, so many people will be coming here for training. In the past he had to send them to other cities when the Cupertino Inn was booked. Mark Bums, President, Cupertino Chamber of Commerce, said the Chamber supported open market competition and they felt that the economy is not an appropriate factor in the decision on this project. John Noone, 7628 Wes Hill Lane, was in favor of the fourth floor setbacks. Michael Del Monaco, the property owner, said that when the Santa Barbara Grill closed for business he met with the Commtmity Development Director and was told that a hotel use was preferred over condominiums or apartments. He said that the Pla~ing Commission approved it, and he was never told there might be a problem with its approval. He said it has been three years since he received any rent on this site, and to lose this project now would be a financial disaster for his family. June 2, 2003 Cupertlno City Councll Page 9 Chang said that since this is the first building to be seen at the gateway to Cupertino, the Planning Commission and City Council should carefully scrutinize it. He understood that reorienting it would not be feasible, but the side facing DeAnza Boulevard should be a maximum of three stories. He felt that the Council should require a higher quality of architecture and ongoing property maintenance. Lowenthal moved to accept Option A with the additional roof setback, including modifications to conditions 4 and 6 as recommended by staff, and to send this item back for Planning Commission review. James seconded the motion. Sandoval offered a friendly amendment to provide additional canopies and window modifications, and to return this item for City Council review after the Planning Commission heard it. The amendment was accepted, and the motion carried by the following vote: Ayes: James, Lowenthal, Sandoval. Noes: Chang. Absent: Kwok. Lowenthal/James moved and seconded to adopt a Negative Declaration. Vote: Ayes: James, Lowenthal, Sandoval. Noes: Chang. Absent: Kwok. NEW BUSINESS 14. Consider objections to proposed removal of brush and order abatement of public nuisance (city-wide brush abatement) pursuant to provisions of Ordinance No. 724 and Resolution No. 03-081, Resolution No. 03-105. There were no speakers. Sandoval/James moved and seconded to adopt Resolution No. 03-105 ordering the abatement of the public nuisance. Vote: Ayes: Chang, James, Lowenthal, Sandoval. Noes: None. Absent: Kwok. 15. Consider adopting a resolution in support of acquisition of open space by the Mid- Peninsula Regional Open Space District (MPROSD), Resolution No. 03-106. Jed Cyr, MPROSD board member from Sunnyvale, and John Escobar, Assistant General Manager, explained the proposal to expand the district boundaries from Skyline Boulevard over to the coastline. Mr. Escobar said that the annexation of this property into the district would not produce additional revenues, but once the new lands are included, they expect that as much as 80% of the funding may be obtained from grants associated with habitat protection, etc. Sandoval/Lowenthal moved and seconded to adopt Resolution No. 03-106 in support of this acquisition of open space by the MPROSD. Vote: Ayes: Chang, James, Lowenthal, Sandoval. Noes: None. Absent: Kwok. 16. Reconsider the composition of the General Plan Task Force. City Planner Cynthia Wordell reviewed the recommendations in the staff report, which included allowing residents to fill the categories of Chamber of Commerce, Education, June 2, 2003 Cupertino City Council Page 10 Sheriff Department and Fire Department; to extend the filing deadline until June 13 for these categories; to eliminate the library category; and to schedule two interview dates to select Task Force members. The following individuals, representing the Cupertino Chamber of Commerce, expressed their support for removing the residency requirement for the task force: Jody Hansen Orrin Mahoney Mike Foulkes (representing the Chamber of Commerce and Apple Computer) Mark Bums Dennis Whitaker, 20622 Cheryl Drive, suggested that a new category of small business representatives be added since the category of Library Commission applicant may be removed. Community Development Director Steve Piasecki suggested adding a second representative from the Cupertino Teen Commission. Council discussion followed regarding options for changing the residency requirement for some or all of the categories, as well as options for conducting interviews, evaluating applications, or other methods of selecting the appointees. Mayor Chang felt it was very important that most of the representatives be residents of the City. James/Sandoval moved and seconded to make the following changes. Vote: Ayes: Chang, James, Lowenthal, Sandoval. Noes: None. Absent: Kwok. Where there is more than one representative listed in the following categories, the Council will consider non-resident applicants, with the preference given for residency and/or working in Cupertino: Educator Employee high-tech headquarters Chamber of Commerce Major retail property representative Major office property representative Retail office developer Residential developer Sheriff's department Fire department Small business owners (added two); 2. Add a second representative from the Teen Commission. Specify that any positions left over from an unfilled category would go into the general discretionary pool to be appointed to other categories. June 2, 2003 Cupertino City Council Page 11 Council concurred to set a date of Monday, June 9 at 6:00 p.m. in Conference Room C to approve a questionnaire for the General Plan Task Fome applicants, and to conduct a closed session regarding labor negotiations. ORDINANCES 17. Conduct the second reading of Ordinance No. 1919 regarding the Town Center: "An Ordinance of the City Council of the City of Cupertino rezoning six parcels totaling 12.368 gross acres parcel from P or (Planned Development with Office, Prototype Research and Incidental Commemial uses) P (OP) or Planned Development (Professional Office) to P (Commercial, Office, and Residential) or Planned Development (Commercial, Office, and Residential)." James/Lowenthal moved and seconded to mad the ordinance by title only and that the City Clerk's reading would constitute the second reading thereof. Ayes: Chang, James, Lowenthal, Sandoval. Noes: None. Absent: Kwok. James/Lowenthal moved and seconded to enact Ordinance No. 1919 Ayes: Chang, James, Lowenthal, Sandoval. Noes: None. Absent: Kwok. STAFF REPORTS 18. Receive a monthly status report on the Cupertino Civic Center and Library Project. Council received the report. COUNCIL REPORTS - None CLOSED SESSION - None ADJOURNMENT At 11:43 p.m. the meeting was adjourned to Tuesday, June 3 at 5:00 p.m. in Cupertino City Hall Conference Room A for Teen Commission interviews, 10300 Torre Avenue. Kimberly Smit~-C~y 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.