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CC 04-19-99 MINUTES CUPERTINO CITY COUNCIL Regular Meeting Monday, April 19, 1999 PLEDGE OF ALLEGIANCE At 6:50 p.m. Mayor Dean 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 Wally Dean, Vice-Mayor $ohn Statton, and Council members Don Bumett, and Michael Chang. Council members absent: Sandra James. Staff present: City Manager Don Brown, City Attorney Charles Kilian, Administrative Services Director Carol Atwood, Community Development Director Bob Cowan, Parks and Recreation Director Steve Dowling, Public Works Director Bert Viskovich, and City Clerk Kimberly Smith. CEREMONIAL MATTERS - PRESENTATIONS Mayor Dean presented an award to architect William Ha~an for the architectural excellence of the building he designed at the comer of De Anza and Stevens Creek. Mr. Hagman said this reco~nition was a real honor, and he thanked South Bay Development and Hunter StoLm for their commihiient to good design. Mr. Deke Hunter thanked the council, and said they appreciated the opportunity to work in a community that understands what it wants architecturally and from a lifestyle standpoint. Mayor Dean introduced Captain Bob Wilson of the Santa Clara County Sheriff's Office, who made a presentation to Officers Ron Karrle and Kim Morgenthaler for winning the first-place trophy at the 1999 Pacific Grove Motor Officer Competition for the second year in a row. POSTPONEMENTS - None WRITTEN COMMUNICATIONS - None ORAL COMMUNICATIONS Mr. Floyd Meyer showed his "Constitutional Cape" and said that it represented the only protection that citizens have. It serves as a reminder that there are rights that the citizens need to protect and cherish. Page :2 (~upertno City Council April 19, 1999 CONSENT CALENDAR Chang moved to approve the items on the consent calena~r as presented. Burner seconded and the motion carried 4-0 with James absent. 1. Accounts payable: (a) April 2, 1999, Resolution No. 99-103 (b) April 9, 1999, Resolution No. 99-104 2. Payroll: April 2, 1999, Resolution No. 99-105. 3. Minutes: April 5, 1999, regular meeting. 4. Resolution approving reorganization of territory designated "Fargo Drive 98-15," approximately 0.230 acre located on the south side of Fargo Drive between Glencoe Drive and the city limits, Curry (APN 326-33-030), Resolution No. 99-106. 5. Resolution setting date for consideration of reorganization of area designated "Pasadena Avenue 99-01," property located on the west side of Pasadena Avenue between Granada Avenue and Lomita Avenue, approximately 0.298 acre, De Amicis and Adamo (APN 357-17-047), Resolution No. 107. -- 6. Alcoholic beverage license applications: (a) Tsunami Sushi, for on-sale beer and wine at 21271 Stevens Creek Boulevard (b) Armadillo Willy's BBQ, for on-sale beer and wine at 10100 S. De Anza Boulevard 7. Public access grants - recommendation from Telecommunications Commission for award of two public access grants. 8. Fee waiver - request from the DeAnza Optimist Club of Cupertino for waiver of fee for their annual Communication Contest for the Deaf and Hard of Hearing for young high school students on May 22 at the Cupertino Senior Center. 9. Improvement agreements: (a) Thomas D. and Stephanie L. Downey, 10192 Peninsula Ave., APN 326-22- 023, Resolution No. 99-108 Co) Danny Lee, 10121 Camino Vista Dr., APN 342-14-080, Resolution No. 99-109 (c) DB Group LP, a California Limited Partnership, 10129 Camino Vista Dr., APN 342-14-081, Resolution No. 99-110 10. Quitclaim deeds: (a) Thomas D. and Stephanie L. Downey, 10192 Peninsula Ave., APN 326-22- 023, Resolution No. 99-111 April 19, 1999 Cupertino City Council Page 3 (b) DB Group LP, a California Limited Partnership, 10129 Camino Vista Dr., APN 342-14-081, ResolutiOn No. 99-112 (c) Darmy Lee, 10121 Camino Vista Dr., APN 342-14-080, Resolution No. 99-113 11. Project change order - change order no. 2 for medians and roadside landscape improvements at various locations, project number 98-108, Resolution No. 99-114. 12. Housing assistance program - amendment to Resolution No. 99-070, City's Housing Assistance Program, adding eligibility of department heads appointed by city council, Resolution No. 99-115. Vote Councilmembers Ayes: Bumett, Chang, Dean, and Statton Noes: None. Absent: James. Abstain: None. ITEMS REMOVED FROM THE CONSENT CALENDAR- None PUBLIC HEARINGS 13. RI construction on slopes 30 percent and greater- consideration of the extension of an urgency ordinance to regulate single-family residential construction on sloped lots 30 percent and greater. (a) Reading and enactment of urgency Ordinance No. 1816 "An Ordinance of the City Council of the City of Cupertino Extending Ordinance No. 1814 Applying Interim Zoning Regulations for Properties Zoned Single Family Residential and Having a Hillside Slope of 30 Percent or Greater, and Declaring the Urgency Thereof, and Taking Effect Immediately." Cowan said that this is an extension of a moratorium ordinance, and it requires a 4/5 vote. The council may wish to continue it to a time when they are all present. Chang moved to continue this item to Monday, April 26, at 6 p.m. and that if councilmember James will not be available at that time, staff will arrange for an alternate date for the hearing prior to April 29. Bumett seconded and the motion carried 4-0 with James absent. Page 4 Cupertino City Council April 19, 1999 14. Residential design review corrunittee -- applications 11-Z-97 and 10-1~A-99, City of Cupertino, establishment of a residential design review committee and introduction of design guidelines appendix. A Negative Declaration is recommended, and the item is reconunended for approval. (a) First reading of Ordinance No. 1817, "An Ordinance of the City Council of the City of Cupertino Amending the Cupertino Municipal Code to Create Chapter 2.90, Residential Design Review Committee (Application 11-Z-99)." Community Development Director Bob Cowan reviewed the staff report. He said that the Mayor, a member of council, the chairman of the planning commission, and another member of the Planning Commission will select an architectural adviser to be approved by the city council. Staff will return on May 3rd with a report about the application fees to cover this process. Statton moved to grant a Negative Declaration. Burner seconded and the motion carried 4-1 with James absent. Statton moved to approve the application per Planning Commission Resolution No. 5029. Bumett seconded and the motion carried 4-0 with James absent. The City Clerk read the title of Ordinance No. 1817. Bumett 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 4-0 with James absent. 15. Housing densities - applications 1-GPA-99 and 1-EA-99, City of Cupertino, consideration of amendments to the land use map of the General Plan related to housing densities. A Negative Declaration is recommended, and this item is recommended for approval. (a) Resolution No. 99-116, recommending General Plan amendments for transitional housing sites. Community Development Director Bob Cowan reviewed the staff report and said that the Planning Commission recommended the following changes to the housing density designations on the General Plan land use map: (1) Change from "Medium/High Density Residential (10-20 dwellings per acre)" to "Medium/Low Density Residential (5-10 units per acre)" for the 1.15 acre underdeveloped site on the east side of Poppy Drive south of Rainbow Drive (Site A); (2) Make no change regarding parcels located on the east side of Oardenside Lane, southwest of Route 85 along Cleo Lane (Site B); Apr//19, 1999 Cupertino City Counci! Page (3) Change bom "Medium/High Density Residential (10-20 units per acre) to -- "Office/Corrunercial/Rcsidential" to be consistent with thc Heart of the City plan for properties located southwest of Stelling Road and Stevens Creek Boulevard. At the same time, initiate an amendment to thc Heart of thc City Specific plan to revise residential density ranges (Site D); and (4) Change from "Medium/High Density Residential (10-20 units per acre)" to "Medium/Low Density Residential (5-10 units per acm)" for the one-half acre lot located on the north side of Bollinger Road east of De Anza Boulevard (Site E). The City Clerk reported that Council had been provided with a petition from the residents of Poppy Way expressing their support for lowering the density in the neighborhood. A videotape of the area around Gardenside Lane filmed by Ms. Cecelia was shown to the Council. It illustrated the existing buildings and sound wall surrounding thc property in question. Ms. Cecilia Attix, 10328 Brittany Court, said she owns thrcc rentals in the area under consideration. She said the staffreport indicates this area consists of a mix of vacant properties and single-family dwellings, but actually there are a number of duplexes and condominiums. They own one of the homes on Cleo Place, and wish to maintain it as a rental. They request that the zoning and density not be changed. South of these homes on Cleo there is a 40 unit, three-story condo development with a wall that is 12 feet, 10 inches high. with the two foot lattice on top. One of her main concerns is the vacant lot on the south side of Cleo adjoining her property. The density on a plot should not be more than what is allowed on her property or she will be completely overwhelmed. Changing the zoning would adversely affect the property value. Ms. Gertrude Welch, representing Santa Clara County Council of Churches Housing Committee, said they were opposed to lowering the density on these properties because it would not set good precedent for providing affordable housing. She quoted Professor John Landes of UC Berkeley, an article in the February 22 issue of Silicon Valley Tax Week, and the Center for Continual Study of California about the need to build attractive higher density housing, and to develop mass transit and other services to support it. Mr. Ronald Joelson, 10118 Bandley Drive, referred to a letter he had sent to the council that addressed two issues. The majority of the residents in this area are primarily apartment dwellers. He also supported the opinions of Housing Committee characterizing the lack of affordable housing in this community and throughout the entire valley. He has several tenants that have remained 30 years because he has kept the rent low, therefore affordable, and now I'm going to be deprived of doing that by this downgrading of the density. He distributed copies ora recent edition of the San Page 6 Cupertino City Council April 19, 1999 Jose Business Journal which includes an editorial about the lack of affordable housing and how it creates a vicious cycle for the homeless. There is another article about Vice-President Gore setting up a committee in San Francisco to explore opportunities and methods to provide more affordable housing for the entire bay area. Mr. Joelson said he wanted to complete his plans for his property that he made 30 years ago. Mr. Dick Schuster, 777 Stendhal Lane, representing the Cupertino Housing Committee, referred to the Housing Commission's letter on page 15-31 of the backup, and reiterated their recommendation not to decrease the density. He quoted some policies and strategies in the General Plan related to housing demand. One of strategies listed in the General Plan is to require development of residential properties at the upper limits of pcm~itted dwelling unit intensity range if neighborhoods are adequately protected from noise, traffic, light and visually intrusive effects. Mr. Schuster highlighted more of the points in the letter, saying the proposed general plan amendment will result in a potential loss to the city orS0 to 90 units of housing, will encourage continued production of large pricey single family homes, discourage the production of higher density housing on current small mixed use sites; and allow questionable conclusions regarding potential impacts of the supply of affordable housing on the community. Ms. Vera Scott, 320 Flower Court, said she was responsible for circulating the petition with 13 signatures from property owners. When the petition was circulated, they misunderstood the planning commission's action and thought that the commission did not vote to reduce the density. Actually, they are in favor with the Planning Commission recommendation to reduce the density. Any increase in traffic would have a negative effect on the neighborhood. They were also concerned with privacy issues, and the mass of new construction that would overwhelm their single-family homes. Bumett said one of the reasons that people are objecting to retaining the current density is that there is the tendency to put in such massive buildings, as was seen in the video, and he suggested changing the zoning to reduce the mass of multiple family housing and impose more privacy controls. Statton thought was a good idea to look at good design guidelines for multiple unit housing. There is also a conflict between providing affordable housing and retaining a suburban character. If the city could be guaranteed that there would be more affordable housing units instead of just more units, that would make those units more attractive to him. Chang said he was in favor of tabling this issue and having staffreview the multiple family units in terms of FAR, size, and privacy. He also recommended that the staff prepare video footage so that Council can look at each of these sites in more detail. Dean said the overpowering issue was shown in the video, which was the very large house right behind the yard, as well as an enormous fence. April 19, 1999 Cupertino City Council Page Statton asked what other communities are doing about multiple family housing units. Cowan said that it is a different issue than single-family residential housing. About five years ago San Jose hired a consultant to perform a survey, but that had to do with concerns about the monotony in housing style. He said that if council would specify which projects they liked, staffwould prepare a report on the FAR, height, etc. as well as comparing older and newer multi-family units. Brown said these parcels are not very large and he was not sure the design guidelines approach would be best, because these parcels will be considered on a case-by-case basis anyway. Burner said he disagreed because he thought it would be helpful for Council to have some guidelines as to why the house is too large. Statton said urban infill will continue and it would help the developers they had an idea ahead of time about what would be acceptable. Burner moved to retain the current zoning on the parcels under consideration tonight, and to direct staff to look at a means of changing the dwelling regulations to make the developments more attractive and less bulky, and more consistent with the feel of projects such as Northpoint and Glenbrook. Chang seconded and the motion carried 4- I with James absent. PLANNING APPLICATIONS - None UNFINISHED BUSINESS - None NEW BUSINESS 16. Campaign finance disclosure - revised filing deadlines for campaign disclosure forms for candidates and independent expenditure committees. (a) First reading of Ordinance No. 1818, "An Ordinance of the City Council of the City of Cupertino Amending Chapter 2.06 of the Cupertino Municipal Code Related to Campaign Finance Disclosure." City Clerk Kimberly Smith reviewed the staff report and noted the changes that had been made to the ordinance as discussed at the last meeting. The City Clerk read the title of Ordinance No. 1818, Statton moved and Chang seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the first reading thereof. The motion included direction to staff that the independent expenditure reports must be placed on the city's Intemet web site within 24 hours. Motion carried 3-1 with James absent and Burnett voting no. Page g Cupertino City Council April 19, 1999 17. Voluntary campaign expenditure limit of $15,000 for the 1999 city council elections, Resolution 99-117. Chang suggested that the proposed expenditure limit be increased, since the city's population had recently increased as a result of the Rancho Rinconada annexation and the costs of printing and mailing campaign info~laation would be much higher. Chang moved to adopt Resolution No. 99-117, with the amendment that the voluntary expenditure limit be set at $20,000. Bumett seconded and the motion carried 4-0 with James absent. 18. Pavement restoration - review bids and award contract for pavement restoration, project 99-103. Chang moved to award the project to Coastal Paving, Inc., in the amount of $123,680.00, and to authorize a 10% contingency for a total project of $136,048.00. Burnett seconded and the motion carried 4-0 with James absent. 19. Eliminate bicycle license fees, Resolution No. 99-118. Administrative Services Director Carol Atwood reviewed the staff report, and recommended that the City continue to license bicycles, but to make this service free of charge. Bumett moved to approve the staffrecommendation and adopt the resolution, which would eliminate the fee for bicycle licenses. Statton offered an amended motion to (1) Direct staff to consider eliminating the ordinance which requires bicycle licensing and (2) Investigate how to develop a program that would encourage registration in an efficient and effective way, and find a way to communicate that information to the community. Burnett accepted the amendment and said that the bicycle shops can be involved in educating the community. Chang seconded, and said it was important to include the safety training component of licensing and to see if there is some way to enhance it. The motion carried 4-0 with James absent. 20. Adoption of an Intcmet Tax Incentive Program - to promote the location of Intemet sales sites within the City of Cupertino, Resolution No. 99-119. Administrative Services Director Carol Atwood reviewed the staff report and said this policy would provide an incentive for the business-to-business sector clients to. establish an Intemet site presence within the city of Cupertino. If there is an Intemet sale site within the city, and that firm ships the product to a consumer within the state of California, then the city is able to receive local sales tax from the sale. The Economic Development Committee proposes that the city adopt a policy which says that if the high-tech firm located within Cupertino generates more than $250,000 in new sales tax per year, they can share on a sliding scale from 25 % to 50 % of the new sales tax that is generated. This proposal is modeled after the agreement with Apple Computer. ,~pr~l 1~), 1 ~)~)~) /~upertlno (Iffy (]ouncll Page 9 Bumett said that was opposed to the idea of refunding taxes, which is money taken from the people to be used by government. It has been happening and will continue to do so, and although it is the Legislature's job to fix the problem, he would not support it himself. Statton said the Apple program was a difficult one to accept initially, but from everyone's point of view it has been very successful and Apple is now one of the city's major sales tax generators. This policy is somewhat akin to what other communities do that have more land, and they zone land for retail and then offer assistance for construction of buildings. Cupertino is offering assistance to drive Internet sales. Chang said he also shared some reservations with council member Bumett, but the Intemet sales are increasing rapidly and the city needs to have a way to take rightful advantage of those sales, so he would support this incentive. Statton moved to adopt Resolution No. 99-119. Chang seconded, and the motion carried 3-1, with James absent and Burner voting no. ORDINANCES 21. R1 zones - second reading and enactment of Ordinance No. 1808, "An Ordinance of the City Council of the City of Cupertino Amending Chapter 19.28, Single Family Residential Zones, of the Cupertino Municipal Code." Community Development Director Bob Cowan noted a clarification to the ordinance, and said that 19.28.60, paragraph 2., should be changed to read as follows: A second story shall not exceed 35 % of the existing or proposed first story, or 600 square feet, whichever is greater. The City Clerk read the title of the ordinance. Bumett moved and Chang seconded to accept the amendment, to read the ordinance by title only, and that the City Clerk's reading would constitute the second reading thereof. Motion carried 4-0 with James absent. Bumett moved and Chang seconded to enact Ordinance No. 1808. Motion carried 4-0 with James absent. 22. Zoning definitions - second reading and enactment of Ordinance No. 1809, "An Ordinance of the City Council of the City of Cupertino Amending Chapter 19.08, Definitions, of the Cupertino Municipal Code." The City Clerk read the title of the ordinance. Bumett moved and Statton seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the second reading thereof. Motion carried 4-0 with James absent. Bumett moved and Statton seconded to enact Ordinance No. 1809. Motion carried 4-0 with James absent. Pase 10 Cupertino Cit~ Council Apri~ ~9, ~999 STAFF REPORTS - None COUNCIL REPORTS City Manager Don Brown reviewed the recommendations of the Legislative Review Committee, as follows: Supported: SB 177 (Peace), public utilities, eminent domain extending the temporary use of armories as shelter for the homeless Opposed: SB 38 (Baca), Religious Freedom Protection Act AB 1504 (Margett), public contract termination: cause SB 266 (Chesbro), public contracts, bids Burner moved to approve the recommendations. Statton seconded and the motion carried 4-0 with James absent. Chang reported the Rancho Rinconada welcome faire was a resounding success. He thought it might be nice to do that occasionally in other communities as well since there are always new residents. Chang and Statton commended staff on their excellent work. City Manager Don Brown said special thanks were due to Public Information Officer Donna Krey and Plarmer Colin Jung for their work in putting the welcome faire together and working on the annexation process itself. Bumett said that all the comments from people attending the faire were very favorable. Dean said that on Sunday morning he had the honor of opening the new Target store, and he took that opportunity to ask them to make a stronger effort to collect their shopping carts. CLOSED SESSION - None ADJOURNMENT At 9:10 p.m., the meeting was adjourned to Monday, April 26, at 6:00 p.m., in the Council Chambers.