Loading...
CC 09-18-00 APPROVED MINUTES CUPERTINO CITY COUNCIL Regular Meeting Monday, September 18, 2000 PLEDGE OF ALLEGIANCE At 6:45 p.m. Mayor Statton called the meeting to order in the Council Chambers and led the Pledge of Allegiance. ROLL CALL City Council members present: Mayor John Statton, and Council members Don Bumett, Michael Chang, and Richard Lowenthal. Council members absent: Vice-Mayor Sandra James. Staff present: City Manager David Knapp, City Attorney Charles Kilian, Public Info..ation Officer Donna Krey; Public Works Director Bert Viskovich, Recreation Supervisor Christine Hanel, Associate Planner Colin Sung, Code Enforcement Officer Alex Wykoff, and Deputy City Clerk Roberta Wolfe. WRITTEN COMMUNICATIONS - None CEREMONIAL MATTERS - PRESENTATIONS 1. Presentation by Bill Bragg regarding Portal School. Bill Bragg, Superintendent of Cupertino Union School District, outlined a proposal regarding locating a fifth middle school at the Portal School site. He thanked the city for their ongoing support. He described the facilities that would be included such as two additional soccer fields, two softball fields, additional volleyball and basketball courts as well as another gymnasium. He said if they located the school at this site, it would need to extend into Portal Park. He said at a minimum they need $20-22 million for this site as well as the renovation of Eaton. They are looking for partnerships. He showed an overhead of the proposal and said the school would hold 750 students. Mr. Bragg said they had also looked at the Collins site, as either is located where they need middle schools. One of the reasons that Portal emerged as the site for a middle school was that it has not been renovated as an elementary school and Collins has. He addressed concerns about the interface with the neighborhood and the park. geptember 1 g, 2000 Page 2 Council members agreed that this item would be on the agenda for the off-site Council meeting to be held the first or second week in October. Council m~nber Lowenthai asked that as the school district prepares for that meeting, they consider policy changes to make the gyms available for local leagues. He said perhaps they could help the city find a place for a teen center and skate park 2. Presentation of check to City of Cupertino by ~/ohn Kolski for Cupertino Host Lions. Mr. Kolski was not present. Mayor Statton and council m=mbers presented a pwclamation to retiring Public Works Director Bert Viakovich. POSTPONEMENTS - None. WRITTEN COMMUNICATIONS - None. ORAL COMMUNICATIONS Mr. Andy Wang, 10297 Cold Harbor Avenue, shared concerns about the idea of building a skateboard park at Wilson Park. He said the community meeting held last Wednesday was a good meeting, and it was fair to say that neighborhood m¢i~bers strongly and unanimously opposed the idea~ He said the meeting was videotaped if those Council members who were not there wished to see it. He said if there were a big liability involved, the city would pwbably say no to the idea. There are a lot of concerns that would not go away even when there is no liability to the city. He urged them not to spend public money on building a skateboard park on public land and to let the private sector do it. Mr. Robert Kirby, 915 Ferngrove Drive, said the Fairgrove neighborhood was a group of 220 Eichlcr homes located at the eastern edge of Cupertino. He talked about the background and history of Eichler homes. He showed overheads of street views and some of the other characteristics of the Eichler houses. CONSENT CALENDAR Burner moved to adopt the Consent Calendar. Chang seconded and the motion carried 4-0. 3 Minutes: September 5, 2000, regular adjourned meeting. 4. Accounts payable: Septeaiber 1 and September 8, Resolutions 00-236 and 00-237 5. Payroll: September 1, Resolution 00-238. September lg, 2000 Page 6. Treasurer's Budget Report - Suly 2000. 7. Optimist Club's request a $60.00 fee waiver for November 9, 2000, event at the Quinlan Center. 8. Acceptance of street improvements (documentation not required): · Behzad Askafinam, 10645 Felton Way, APN 359-18-019 · Wei ~Iao & ~Iien Meei Chyu, 10423 Byme Ave., APN 357-12-034 · Kelvin & Martha Ksng, Trustees, 21900 Lomita Ave., APN 357-14-003 · KC&J Investments, LLC, 21720 Alcazar Avenue, APN 357-19-013 · Optimum Investments LLC, 21870 Lomitig APN 357-14-004 · Diana Wong, Trustee ofCIW Wong, 10067 Bianchi Way, APN 359-07-009 9. Change order no. 6 for $24,684.08 for the Cupertino Senior Center Expansion, Project 99-9210, Resolution No. 00-239. 10. Authorization to execute agreement with APAC Technologies for Red Light Running Photo Enforcement Systems Program, Resolution No. 00-240. Vote Members of the City Council AYES: BurneR, Chang, Lowenthal, Statton NOES: None ABSENT: James ABSTAIN: None ITEMS REMOVED FROM THE CONSENT CALENDAR- None. PUBLIC HEARINGS 11. Public nuisance abatement: Public hearing to consider abating a public nuisance (overgrown foliage obstructing the sidewalk, inoperable automobile, automobile parts, litter and trash in front yard and driveway) at 7535 Normandy Way (APN 366-11-151, William and Elena Kettler, property owners), Resolution No. 00-241. Code Enforcement Officer Wykoff introduced the itei~i and a video roll-in was presented. He said the homeowner had taken care of some of the items and said he would complete the others. He noted that he had been injured in an automobile accident. City Attorney Kilian described the process following adoption of the resolution before the Council. Council members agreed that the homeowner had shown his intent to abate the nuisance. Chang moved to adopt Resolution No. 00-241. Bumett seconded and the motion passed 4-0. ! 000 Page 4 PLANNING APPLICATIONS - None. UNFINISHED BUSINESS - None. NEW BUSINESS 12. De Anza Cupertino Aquatics (DACA) Lease: Request from staff to re-negotiate a lease with DACA for the use of the Sports Center pool. Current lease with DACA expires March 31, 2001. Recreation Supervisor Hanel presented the staff report. She noted that DACA had made facility improvements during the term of their lease. Bumeti moved to direct staff to re-negotiate the lease with DACA for the Sports Center pool. Lowenthal seconded and the motion passed 4-0. 13. Stevens Creek Boulevard Bicycle Lane Ordinances: Public Works Director Viskovich outlined staff's recommendations. (a) First reading of Ordinance No. 1856: "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, Stevens Creek Boulevard from the East City Limit to the West City Limit." Thc Deputy City Clerk read the title of the ordinance. Burnett moved to read the ordinance by title only and that the Deputy City Clerk's reading constitute the first reading thereof. Chang seconded and the motion passed 4-0. Co) First reading of Ordinance No. 1857: "An Ordinance of the City Council of the City of Cupertino Amending Cupertino Municipal Code, Chapter 11.24, Section 11.24.150, Relating to Parking Prohibition and Section 11.24.170, Relating to Parking Limitation On Certain Streets, Stevens Creek Boulevard from the East City Limits to the West City Limits." The Deputy City Clerk read the title of the ordinance. Burnett moved to read the ordinance by title only and that the Deputy City Clerk's reading constitute thc first reading thereof. Chang seconded and the motion passed 4-0. Mayor Station directed staff to write a letter to Citizens Air Watch. 14. First reading of Ordinance No. 1858: "An Ordinance of the City Council of the City of Cupertino Amending Section 11.20.030 of the Cupertino Municipal Code Relating to Establishment of Ail Directional Stop Required at Certain -- Intersections." ~eptember 1S, 2000 Page Viskovich presented the staff report. Following discussion, Council took no action on the ordinance and directed staff to nsc alternative methods including cones and rolling stop signs. 15. First reading of Ordinance 1859, "An Ordinance of the City Council of the City of Cupertino Amending Chapter 11.24 of the Cupertino Municipal Code, Section 11.24.150, Relating to Parking Prohibition for Trucks Over 5 Tons." Viskovich presented the staff report and said this restriction would discourage trackers from coming to the qnArry too early and reduce the noise in the neighborhood. The Deputy City Clerk read the rifle of the ordinance. Bumctt moved to read the ordinance by title only and that the Deputy City Clerk's reading constitute the first reading thereof. Lowenthal seconded and the motion passed 4-0. 16. Cupertino City Center Hotel Pwject: Request from Kimpton Hotel and Restaurant Group for partial Transient Occupancy Tax (TOT) refund for the Cupertino City Center Hotel Pwject. Mr. Jim Whelan, Chief Development Officer of the Kimpton Group, described how far along they have come in the design of the project. He showed material boards for the restaurant and talked about the quality and variety of the food. He said they had increased their initial investment and underwriting plans for the project significantly. They want to continue at a high level. For various reasons, construction costs are $4.6 million more than they were originally. That led them to come to the city for assistance to undenvfite the asset. He apologized for not giving staff enough time. He said one critical factor is that they want to start construction in April. He described si~gnificant elements of the cost of this development not encountered in other developments of its scope, including the size of the meeting and conference space. Mr. Whelan outlined the terms of the rebate, noting that during the first 30 months a portion of the TOT they collect above a base amount would be rebated to them. Over time, their performance in the asset is evaluated and if they have exceeded their goals they would return the funds to the city with a bonus. If they do not earn the base amount there would be no partial refund. In addition, he said perhaps they could make the conference space available a number of times a year for city nsc at no cost. He said they would be delighted to pay the funds back with a bonns. Statton said he thought Pwmethens needed to be a party to this discussion. Kilian noted that Cupertino is a general law city. Section 16, Subsection 6 of the State Constitution says that the tate legislature is prohibited from authorizing any -- public entity to pay a gif~ of public funds as later defined. Charter cities do not geptember 1~, 2000 Pa~e ~ derive their power from the legislature and therefore they do not have that rule of law applied to them, although many charter cities have a prohibition of gifts of public funds in their charter. He said the agencies referred to in Kimpton's letter as giving public money in either a subsidy, a loan, a write down, or other method were either charter cities or rcdcvelopment agencies where that is possible. However, it was his conclusion that a direct subsidy or payment, whether it is from existing funds or fi'om future funds for this purpose would be viewed by a court as a girl of public funds. He outlined some ways to accomplish the same purpose and avoid that. The only negative that was seen to that was the fact that it would be seen as a precedent. He said if thcy wish to consider whether they should grant any kind of relief in return for something that would be a benefit to the city, they can let staff work out the arrangement that would be best. If the city could derive some sort of benefit out of the use of the conference facilities that would be specific and of true benefit to the city he could recommend that on a legal basis. However, he said there may be policy reasons why that should not be done. Bumett said it was his belief is that it was the developer's job to bring a project to the city that is financially viable in the existing market place as presented to us. He thought it was more appropriate for them to bring the price down to the budget. He said the other involved group, Prometheus, did not ask for a subsidy, and another hotel had been built without a subsidy. He said he found it hard to imagine getting $800,000 benefit out of a convention facility. It sets a te,tlble precedent. He said he did not think it was necessary, and could see no justification. Lowenthal said he would have liked this discussion to have happened earlier and he did not like precedent setting. He said if the city asked the developer to get down to budget he would. This was not a deal that was based on the city's return of TOT and sales tax. He said the city doesn't want him to get down to budget because they would lose that aspect of the project that makes it other than a TOT and sales tax deal. What they would get is a nm-of-the-mill hotel and that would not need the TOT refund. He thought this was a quality project. He noted that the applicant did come in earlier with some lower cost material and we said no, go to the higher cost materials. Second, he said we pushed hard for meeting room~ which are the difference betwcen a project that will work with the city's help and won't without. He said the developer has done everything on a long list of what council wanted them to do, other than this issue. He said they have come a long way and he thought it might be a once-in-a-lifetime chance to have a high quality hotel in Cupertino. He said we also need thc restaurant. In addition, if we don't do this and the developer goes away, we will see the lot empty for another few years. He said it would cost the city $1.25 million in TOT if there is a two year delay. Finally, he said he would ask staff to go back and work out something with the applicant that is a benefit to the city so that it is justifiable to spend that money. He said the project is of value as a community amenity. September lg, 2000 Page Chang had the following concerns: 1. He was troubled by this coming in this late. He feR it was a good pwject that has a real benefit to thc city. 2. There are the issues about giRs of public funds. 3. Pwmetheus needed to be fitted into the picture. He thought it was important to give the project a full chance of success. He said there should be a benefit for the exlra consideration, and he wanted staff to explore on that basis. Statton said Mr. Whelan had raised this issue early in the process. He said he believed that the community would like to have a high quality hotel, and the hotel being proposed is exactly the kind of property they have desired for a long time. He said he was Iroubled by Prometheus' lack of attendance tonight and lack of participation in this process. His understanding of the history of the civic center area is that it is overbuilt in terms of the amount of density the city has allowed on the parcel. In his mind, the hotel and apartment complex were linked. He asked that council make a clear statement of policy that they will not allow one without the other. Burnett and Chang stated they had supported the project specifically based on the linkage. Lowenthal recalled that there was discussion during the approval that linked the pwjects. Kilian explained that they were concerned about the phasing of construction, and there is a provision in the use permit that says if work is not commenced on the hotel within a certain time there is a forfeiture of $1 million. He said apparently Prometheus views that as their only responsibility. He said it is our position that this was a project 8r~mted as an exception to our general plan, and therefore if one part of the exception did not go forward it is our feeling that the entire exception is at risk. If necessary we would adopt moratorium to stop that type of construction in that area. He advised council to let staff handle communications with Prometheus regarding the intention of the council. Statton said in tv,,~is of the overall importance of the hotel to the city's financial health, we need the TOT now and in the foreseeable future. He agreed with Lowenthal that by pushing the hotel into the future, the city is foregoing a large amount of TOT now. Whelan said they are paying Prometheus $2.6 million which includes $800,000 for the land and the remainder for infrastructure including parking stalls, the swimming pool, the amphitheater, and driveways. Statton said he would agree to some sort of rebate of TOT and he thought it was in Prometheus' interest to make this happen. He would like the three parties to sit down and make this work. Burner said luxury hotels are built all over the world without subsidies, and they charge extra money for the luxury and people are glad to pay it. He said he geptember 18, 2000 Page thought that was how this should work. Lowenthal said they need staff to try to find an answer that works for everyone. Chang said he was in favor of asking staff to get into a dialog. In te.r,~s of looking at the big picture, the thought Statton's approach regarding benefit for consideration represented his view. By a straw vote of 3-1 (Bumett voting no) council agreed to the concept of some fo, m of subsidy in return for a specific benefit to the community (Bumett no). They further directed staff to meet with Kimpton and Prometheus and return to Council on October 2. Mr. Whelan said before the matter came to Council in June, he met with the city manager and commented on ways a TOT partial rebate could work. He said he stated at the meeting in Sune that they could not afford to build the project that was being approved and that they might need to come back. He said they need to make a larger investment to get a larger revenue stream including TOT, and right now they can't make that investment. He said there would be significantly more TOT revenues collected as a result of the investment, a multiple of the amount that they were asking for refund. Lowenthal referred to a letter in the packet indicating there had been a discussion on this matter with Don Brown in Sune. Chang added that if the applicant feels that the way to make this project work better is to increase the investment and hence the returns in terms of TOT, he would like to have the city and maybe a consultant take a look at that. Staff was directed to return on October 2 with the information requested. 17. Grant pemdssion to apply to the California Housing Finance Agency (CHFA) for a 10 year, 3 percent loan under their HELP Program in order to pursue an additional funding option for the Cupertino Community Services Affordable Housing Project, Resolution 00-242. City Manager Knapp outlined the staff report, stating there was no guarantee they would go forward with this appwach, but they needed to take action at this meeting to preserve the possibility in case they do. Lowenthal clarified that council will have an opportunity to vote on city participation in the loan. Bumett moved to adopt Resolution 00-242. Chang seconded and the motion passed 4-0. September lg, 2000 ORDINANCES 18. Second reading and enactment of Ordinance No. 1854, "An Ordinance of the City Council of the City of Cupertino Adding Chapter 10.80 to the City's Municipal Ordinance Code Prohibiting Soliciting on Designated Public Rights-of-Way." The Deputy City Clerk read the title of the ordinance. Burner moved to read the ordinance by title only and that the Deputy City Clerk's reading constitute the second reading thereof. Lowenthal seconded and the motion passed 4-0. Bumett moved to enact Ordinance No. 1854. Lowenthal seconded and the motion passed 4-0. 19. Second reading and enactment of Ordinance No. 1855, "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 North Portal Avenue at the Intersection with Wheaten Drive." The Deputy City Clerk read the title of the ordinance. Burner moved to read the ordinance by title only and that the Deputy City Clerk's reading constitute the second reading thereof. Lowenthal seconded and the motion passed 4-0. Bumett moved to enact Ordinance No. 1855. Lowenthal seconded and the motion passed 4-0. STAFF REPORTS 20. Status report on sid~wlk at 19160 Stevens Creek Boulevard. Public Works Director Viskovich presented the report, stating that the city would install the sidewalk. 21. Status report on Library project. Public Works Director Viskovich presented the report and suggested possible strategies. Viskovich informed council that there would be a bid opening regarding a grant for Homestead Road bicycle lanes the next day, and the grant must be awarded by the city council by the end of the month. As no other council meetings were scheduled prior to that deadline, he requested that they meet to award the contract. By consensus, council set the meeting for Wednesday, September 20 at 3:30 p.m. COUNCIL REPORTS September 18, 2000 Page 10 Mayor Statton announced that this would be Viskovlch's last regular city council meeting before his retireiiient. Staff and council members talked about their relationship with him during his career at Cupertino. Viskovich thanked those he had worked with over the years and responded to the comnlents. Bumett reported regarding the sports center committee. Recreation Supervisor Don McCarthy has made arrangements for the architect on the senior center to examine it, then staff will look at alternatives. These might include refurbishing the existing building; tearing it down and building another, smaller multi-use facility; and rebuilding as a tennis-only facility. Lowenthal reported on the skate park committee meeting, and said the kind of feedback they got from the neighbors is very valuable. He encouraged people to speak out. City Manager Knapp said the meeting was attended by 70 neighbors, 20 people from the committee, and staff. Chang attended the Cities Association meeting and said members were concerned about Guideline 2000 which has to do with alcohol and substance abuse rehabilitation houses in communities. He asked the city manager to take a look into that issue and provide background information. Lowenthal said Lucille Wu took on the Moon Festival about a year ago and did a great job. He said they have made enormous strides to make the festival a cross cultural event. Statton noted that a delegation from Tsinchu City had visited Cupertino. Gifts for council members wcrc at their places. He con~,,tulated those involved in the Moon Festival and announced that the fourth annual Iranian Arts and Cultural event would take place on October 8. CLOSED SESSION- None. ADJOURNMENT At 9:00 p.m. the meeting was adjourned. ~/ ~ ~ [ . Deputy City Clerk