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CC 06-05-00 APPROVED MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Monday, June 5, 2000 CALL TO ORDER At 6:00 p.m. Council convened in Conference Room A, Cupertino City Hall, 10300 Torte Avenue, Cupertino, California, 95014. ROLL CALL City Council members present: Mayor John Statton, Vice-Mayor Sandra James, and Council members Don Burnett, Michael Chang, and Richard Lowenthal. Council members absent: None. Staffpresent: City Attorney Charles Kilian. CLOSED SESSION At 6:30 p.m. Council recessed to a closed session to pursuant to Public Employment - Gove, sanent Code Section 54957, regarding city manager recruitment. RECESS At 6:45 p.m. Council reconvened in open session in the City Council chambers for their regular business meeting. PLEDGE OF ALLEGIANCE At 6:45 p.m. Mayor Statton called the meeting to order in the Council Chambers, 10300 Tone Avenue, Cupertino, California, and led the Pledge of Allegiance. ROLL CALL City Council members present: Mayor John Statton, Vice-Mayor Sandra James, and Council members Don BurneR, Michael Chang, and Richard Lowenthal. Council m~ihbers absent: None. Staff present: City Manager Don Brown, City Attorney Charles Kilian, Administrative Services Director Carol Atwood, Community Development Director Steve Piasecki, Public Information Officer Donna Krey; Public Works Director Bert Viskovich, City Planner Ciddy Wordell, Planner Michele Rodriquez, Recreation Supervisor Mike O'Dowd, and City Clerk Kimberly Smith. June :~, 2000 /~upert;no/2;fy (~ounc;1 l~agc ~) CEREMONIAL MATTERS - PRESENTATIONS Mayor Statton announced that the new city manager is David Knapp. He explained the selection process, noting that Knapp was chosen over 50 candidates. He was formerly with Boulder, Colorado, and is currently the town manager of Los Gates. He will start in Cupertino on July 10. Administrative Services Director Carol Atwood would be acting city manager in the interim. 1. Presentation by student co-chairs regarding the National Association of Student Councils Conference (NASC 2000) scheduled for June 24-28, 2000, hosted by Fremont Union High School District. Student co-chairs of the NASC 2000, Brian Dong, Mike Kalisvaart, David Lowe, and Vicki Ho, invited council members to the conference and thanked them for their support. Harry Bettencourt, adult chairperson, was also present. They outlined some of the activities that will take place, noting that 400 homes will host delegates. A conference banner, a copy of the conference brochure, washable tattoos containing the conference logo, and volunteer tee shirts wcr~ presented to council members. 2. Presentation of award to City Building Inspector Jerry Brager from the International -- Association of Plumbing and Mechanical Officials (IAPMO). Mr. Dan McEverly, plumbing and mechanical code compliance investigator for the State of California, presented the IAPMO Government Man of the Year award and said Brager had served as chair of the code-writing body for IAPMO. In addition he serves on the board of directors for IAPMO. Brager thanked Mr. McEverly, the council, and his family me~ubers. POSTPONEMENTS - None. WRITTEN COMMUNICATIONS - None. ORAL COMMUNICATIONS Deke Hunter said he and his business partner are in the final stages of acquiring Cupertino Town Center. He advised council that there might be an opportunity to consider it as an alternative location for the library. CONSENT CALENDAR The city clerk noted an amendment to thc contract with SeffPiserchio (Item 14). James moved to approve the items on the Consent Calendar, as recommended. Chang seconded and the motion carded 5-0. June ~, ~)000 ~uper~no City ~oundl Page 3. Minutes: May 15 regular meeting and regular adjourned meeting (workshop). 4. Accounts payable: May 12, May 19, and May 26, Resolutions 00-151, 00-152, and 00- 153. 5. Payroll: May 12 and May 26, Resolutions 00-154 and 00-155. 6. Treasurer's Budget Report, April 2000. 7. Making deteiafinations and approving the reorganization of territory designated "Orange Avenue 00-04," approximately 0.237 acre located on the west side of Orange Avenue between Hermosa Avenue and Lomita Avenue; Kang (APN 357-16-060), Resolution 00- 156. 8. Acceptance of municipal improvements (no documentation required): (a) George Adzich, 21850 Granada Avenue, APN 357-16-139 Co) SLS Associates, 20745 Stevens Creek Boulevard, APN 326-32-055 (c) Kok Y. Ho, 10247 Byrne Avenue, APN 357-11-016 9. Authorizing execution of improvement agreements: (a) $ohan A. Da~mawan and Susana T. Darmawan, 22650 Alcalde Road, APN 342- -- 16-042, Resolution 00-157 Co) Sanjay Swamy and Tuisi B. Swamy, 10655 Santa Lucia Road, APN 342-17-007, Resolution 00-158 10. Establishing an annual Disadvantaged Business Enterprise (DBE) goal, Resolution 00- 159. 11. Authorizing execution of Program Supplement No. 007-M for Federal Aid projects (I-280 and Hwy. 85 ramp meter & traffic signal interconnect), Resolution 00-160. 12. Acceptance of city projects performed under contract (no documentation required): (a) Stevens Creek Boulevard Overlay, Project 99-101 (b) Annual Overlay, Project 99-108 13. Change orders: (a) No. 2, Stevens Creek Boulevard Overlay, Project 99-101, Resolution 00-161 Co) No. 2, Annual Overlay, Project 99-108, Resolution 00-162 (c) No. 2, Senior Center Expansion, Project 99-9210, Resolution 00-163 14. Authorizing execution of contract with Blackberry Farm Golf Course Pro, Jeff Piserchio, Resolution 00-164. 15. Award of contract to PrintCom for printing of the recreation schedule brochure. June ~, 2000 Cupertino Ci~y ~ouncll Page 16. Setting date of Suly 19 for consideration of reorganization of area designated "Upland Way 00-03," property located on the west side of Upland Way between Rainbow Drive and Upland Way; approximately 2.836 acres, Wang, (APN 366-03-011), Resolution 00- 165. 17. Fee reduction of Blackberry Fa,. costs for Cupertino Union School District. 18. Consider increasing the medical contribution for unrepresented employees, Resolution 00-166. Vote Council members Ayes: Bumett, Chang, lames, Lowenthal, and Statton Noes: None Absent: None Abstain: None. ITEMS REMOVED FROM THE CONSENT CALENDAR- None. PUBLIC HEARINGS -- '19. Kimpton Hotel and Restaurant Group and Cupertino City Center Land (coroer of Stevens Creek and De Anza Boulevards), lot l, Tract 7953. Request to consider a general plan amendment to exceed the allowed height of 75 feet and to project into the 1:1 setback ratio from Stevens Creek Boulevard. Also request use pcmfit and Heart of the City Specific Plan amendment and exceptions to construct a new 206 unit, 206,725 square foot multifamily residential building and 6,775 square feet of retail space on a vacant parcel. Applications 2-GPA-99, 33-EA-99, and 9-EA-00, 06-U-00, 03-EXC-00. Negative Declarations are recommended. The use permit and Heart of the City Specific Plan amendment and exceptions are recommended for approval. The General Plan amendment is recommended for denial. Resolution 00-167. Continued from May 15. City Planner Ciddy Wordell introduced a video roll-in and provided an overview of the general direction of the project and specific information on the hotel. She said the Planning Commission had concluded their review of the aparhuent portion of the project but not the hotel portion. Council will hear the hotel application at the June 19 meeting. Wordell showed slides of the location of the hotel and apa~huent sites as well as the Four Seasons Plaza. With respect to the amendments to the general plan, City Attorney Kilian reminded council that state law allows only three general plan amendments a year. Planner Michele Rodriguez provided background on the apa~u.ent project specifically. She had provided council members with a proposed amendment to condition 17 regarding the Sanitary District. She said there would be appwx'unately 20 or 21 affordable units (10 percent of the total number). June .~, ~.000 ~uper~lo ~by {~ounc~l · ~age ~ Public Works Director Viskovich reviewed the table entitled, "Intersection Level of Service Summary" on page 19-18 of the staff report. He described the basis for the conclusions reached. He confirmed that the traffic study was for both the apartments and the hotel and explained how the cumulative traffic numbers were calculated. Rodriquez confirmed that staffwas recommending approval of the height exception. John Moss, Pegasus Development, said this was the culmination of over two years of planning effort by their firm working with city staff, and with the Kimpton group for over a year. The goal of this project is to create a sense of place, vitality, and community. He said they felt that this mixed use project with the city plaza, active retail, a first class hotel and restaurant with outdoor dining on the plaza, along with market rate and affordable housing, will create a landmark project for the city. So far there have been three study sessions with council and the planning commission and two public meetings with the planning commission. He said they appreciate the feedback and have made modifications to the plans that have improved the overall design of the project. He said the overall plans are the same as those shared at the November and Janizary study sessions with the exception of the following improvements: · formally offered to have this project participate in the Teachers Moving-in-for-Less program; · offered to have all 710 of their existing apartments in Cupertino participate in that plan; · relocated the fimess center to provide more space for retail adjacent to the plaza; · introduced the outdoor balconies; introduced bike racks to the retail area; · encouraged easier pedestrian access to the site with crosswalk improvements planned at Stevens Creek and De Anza; · provided for access for the apartment residents in addition to hotel guests to the existing swimming pool and amphitheater within the city center; · provided outdoor seating and dining area adjacent to the existing fountain which is effectively an extension of the retail space; · as requested by council, the plaza will have lighting, public art, seating and outdoor dining; · additional tree plantings will be made at the existing at-grade parking lot; · incorporated direct connection for pedestrian access from the garage through the retail to the plaza; · reduced the building height by approximately one story by further burying the parking lot into the ground; · removed all but two architectural elements out of the 1:1 setback plane for the project; · reduced planter wall from 8 ft. to 4 ft.; · replaced pre-cast concrete elements at the base of the building exteriors with stone tiles; screened drop off areas for retail deliveries and apartment move-in trucks with evergreen plantings in addition to the deciduous trees originally planned for that area. Yune ~, 2000 Cupertino City Counc~! Page In conclusion, he said they felt they had listened and responded to all the issues that have been bwught up at previous meetings. They also felt that the development meets and exceeds all the goals of the city and community and will be a world-class mixed use project. In answer to questions about public access to the podium portion of the project, he said it would be secure for the residents, and that element of the plan had not changed. Paul Lettieri, Guzzardo and Associates, said his finn was the landscape architect for the apartments, hotel and the Pour Seasons plaza. He showed details of the three zones that have been created in texms of the development of the apartment site and the adjacent Four Seasons Plaza: the park and the retail frontage; the perimeter of the site defined by Stevens Creek Boulevard, the unnamed access wad, and the fire/service/pedestrian way between the office building and the apartments; and the podium. He said the podium is not part of the basic circulation space on the site, whether or not there were fences. All of the sites council had visited on the tour had a fence that enclosed that space. He said that since council had last seen plans for the pwjeet, an exterior spa has been added. Emic Vasquez, McLaren, Vasquez and Partners, building architect, gave an overview of how they have adhered to goals established in November. The architect said they were very mindful of the specific plan specifying an active retail use fronting onto the plaza. -' He pointed out that the architecture wraps around the project so that none of the garages behind the retail or lobby area would be exposed. He showed drawings of the project and described each element. Randol Mackley, principal with the Retail Real Estate Group, said there are about 7,000 square feet of retail here. Signage will be an important part of the project. They expect that the retail will be 70% food, such as unique eateries, and 3-4 tenants. They have found that the best mix in Silicon Valley is a mix between a national and local tenants. Mr. Macldey discussed the security for retail and guest parking. There 'will be an open parking area with no gate, and a gated private garage for residents. Bicycle parking areas sprinkled throughout the project and said there are 83 bicycle stalls in the garage. He indicated where additional storage might be in parking area. Mr. Moss said the proposal for a higher building is consistent with what they shared with the city over a year ago, partially based on what is viable in the market. In addition, they did not feel there is an aesthetic relative to the other buildings. Madeline Kasof, 10197 Cold Harbor Avenue, expressed objections and concerns regarding the proposal. She referred to the general plan and said she did not believe it to be in the best interest of the people of Cupertino to change their lifestyles with corporate, high-density developments and buildings over 100 feet high which greatly exceed the limits. She talked about setbacks, parking, traffic, and density. She asked that they listen to the people and adhere to the general plan. June $, 2000 Cupertino City Council Page ? Burner said tho project is quite massive and is more dense than any other in Cupertino. He commented on the model, and noted that Armadillo Willy's site is not reflected. He talked about the bonuses that had been allowed in the past, and said he basically supported this project. The need for housing is desperate and this will project will provide some. He had serious concerns about the sewer situation and how it may impact the city's finances. There have been difficulties already in this area and it may be necessary to put in a new sewer ,and this developer should be responsible for that cost. He said the podium area must be open in order for him to vote in favor. The developer must also make sure people are able to have a bicycle and a safe place to store it. Chang said they had waited a long time to develop this important comer in Cupertino. He felt the design of the apa~tu~ents is outstanding. He felt that the height works when compared with the overall configuration. He was impressed with the amount ofworkand attention to detail, and would support the pwposal and Bumett's suggestions about sewage issue. He supported reconsideration of opening the podium. Lowenthal said that housing was needed, and this provides that as well as being a landmark use of the pwperty. He expects that the combination of retail, housing, hotel, and first-class restaurant will re-energize the corner. The project doesn't work without the hotel and restaurant, and the city needs the conference center the hotel brings. The height exception is okay if it makes the project eeonomically viable. He agreed there was -- a need for individual bicycle lockers, and it is a good idea to have this developer share heavily in the cost of improving sewer service. The developer should make the open podium work so that these residents will use the services on Stevens Creek Boulevard instead of driving. People must be able to walk in and out of the pwject easily, especially the residents. James said that the entire community knows there is a housing issue, and the city is mandated to provide even more than it does. This is an opportunity to build a more dense development that will fit into the existing environment. She said the articulation on the building is beautiful. She disagreed with the other mea~bers about the need to make the podium open, and felt it was more secure as planned. The landscape architect has done an outstanding job of landscaping. She was concerned and disappointed that the Planning Commission did not move the hotel along with this apartment project, and she would insist that the hotel be heard at the next commission meeting or that it be referred up to the council so that it will not be delayed any further. Statton said this is a massive, high-rise project, and it is needed. The way it has been designed is as good as it can get in a large project. He agreed with the other council members about the desperate need for housing and the improved economics provided by the hotel, and he agreed with the suggestion to make the apartments contingent upon the hotel. If residents cannot put bicycles on their balconies, he would like to see safe storage in the parking structure for them, without them having to pay any additional cost. Regarding the open podium, he felt it was important to have an easy flow of foot U:,d'fic through the project, and would like to see more ground level access. Statton was also concerned about the sewer capacity for the project. 1une ~, 2000 Cupertlno Cliy Council Page Kilian said that a condition about the sewer capacity is already included, and the final decision on that belongs to the Sanitary District. James moved for a straw vote to approve the project, and that the final decision be reserved until the hotel project could also be heard. Chang seconded. Bumett moved to amcnd the motion to require open access to the podium and adequate bicycle facilities. Lowenthal seconded and the amendment passed 4-1 with James voting no. The vote on the main motion was 5-0. 20. First of two pubhc hearings to review proposed 2000/01 budget. Adminlstrativc Services Director Carol Atwood said that council held a study session the previous week, and this was the first of two public hearings. She said the total revenue budget was approximately $55 million, which includes all services and enterprise funds. For city services, the revenue budget was about $31 million, the majority of which is sales tax. Only 2.2 cents for every tax dollar that is paid in property taxes is received by thc city. She said the total expenditures are estimated at $58 million, of which $34 million comes from the general fund. Atwood said the projected decline in reserves was because council had committed about $27 million in capital improveiiient projects in a three-year span, including purchase of the Stocklmeir property, the new senior center, and - the library project. Council will be conducting a study session in mid-July to look at the reserves and capital improvement projects. Atwood talked about the proportion of property tax, how it has changed in the last ten years, and future trends. 21. Prezoning of a single family residential lot to Pre RI-10 (residential, single-family, 10,000 sq. ft. minimum lot size) zone, Application 4-Z-00, Ker-Chung Liou and Lih-Yn Chen, at 21095 Grenola Drive (APN 326-28-009). A Negative Declaration is recommended, and this item is recommended for approval. (a) First reading of Ordinance 1849: "An Ordinance of the City Council of the City of Cupertino Prezoning an Existing Single-Family Residential Lot Located at 21095 Orenola Drive to Pre R1-10 (single family residential) zoning district." City Planner Ciddy Wordell reviewed the staffreport. Jordan Leung, 21084 Grenola Drive, said his property is 200 feet away from the property in question. He said he was almost ready to submit his plans to the county. He said if this property were annexed he would be within 300 feet of the city boundary and the county might reject his application. He talked about the impacts if he had to submit the application to Cupertino, including loss of 1,000 sq. ft. ofbuildable space and loss of the fees he had already paid his architect. He said he that people who live in the community -. should have a chance to votc, and did not feel that people who live outside of the community should tell them what was best for them. He submitted petitions with over 100 signatures of people who believe if there is going to be an annexation, it should be put up for a vote. Jane 5, 2000 Cupertino City Council Page Howard Leung, 10308 Glencoe Drive, said he lived on the other side of Stelling. He was opposed to the prezoning because it is a prelude to the annexation. He said his fundamental issue with this was the approach to annexation. He believed that people residing in the area should have the fight to voice their opinion through voting. Wordell clarified said both property owners would be going through the county. In addition, staff is working with the county and holding some neighborhood meetings to assess the sentiments of the area in regard to annexation. City Manager Don Brown said it may be a protest situation versus a vote. Chang said he thought they should go through a process where people are allowed to be heard in terms of what they want to do with their own area rather than trying to project council's preferences. He said he would like to move forward on the process of working with the county to see what should be done in this area. James said city policy always has been not to force an area to annex. She said that part of the redevelopment contract with the county is that they want the city to take 'over the Garden Gate and Monta Vista county pockets. Burnett moved to grant a Negative Declaration. Chang seconded and the motion passed 5-0. Bumett moved to approve Application 4-Z-00 per Planning Commission Resolution 6022. Change seconded and the motion passed 5-0. City Clerk Kim Smith read the title of Ordinance No. 1849. Burner moved that Ordinance No. 1849 be read by title only and that the city clerk's reading constitute the first reading thereof. James seconded and the motion passed 5-1. 22. Ordering abatement of public nuisance (weeds and brash) pursvnnt to provisions of Ordinance 724 and Resolution 00-145, Resolution 00-168. City Clerk Klm Smith said the purpose of the hearing was for council to note protests and order abatement of the nuisance on the two remaining properties on the list The Mayor asked for public comment. There were no comments or protests. Bumctt moved to adopt Resolution No. 00-168 ordering abatement of the public nuisance. James seconded and the motion carried 5-0. PLANNING APPLICATIONS - None. UNFINISHED BUSINESS - None. NEW BUSINESS 23. Selection of artist for Four Seasons Plaza, comer of Stevens Creek and De AnTa Boulevards. The City Clerk highlighted the report and a video mil-in was shown illustrating the existing open space and the models prepared by the four artists who were finalists in the selection process. The City Clerk reviewed the staff report, noting that the dollar amount expended to date on the landscape architect was actually about $4,000, not $30,000 as shown in the report, which reflected encumbrances. She stressed that this is a recommendation of the fine arts commission only, not the ad hoc committee, the landscape architect, or the property owner. She introduced a video roll-in of the previous work of finalists Roger Berry and Richard Deutch. Steve Beard, Fine Arts Commission, emphasized that the decision process was not a process of elimination, but a process of selection. He expressed appreciation for all the artists who submitted their work. He said they felt Mr. Berry's work was most closely consistent with the idea of the Four Seasons Corner. The Mayor thanked the Commission for their work on this project. Burnett said he liked Mr. Berry's work, particularly the sundial element. Chang also thanked the Commission and ad hoc committee. He said he would prefer a design that would rise higher above the ground. Lowenthal said if they chose a plan similar to the model, he would like to have interpretive plaques to explain the concept. He agreed with the Commission's recommendation. James said she liked the mass and the simplicity of Mr. Berry's previous work. She thanked the commission for their work. Mr. Beard said despite the fact this was a selection process, they would continue to consider the other artists for any future projects. James moved to select Mr. Roger Berry as the artist for the Four Seasons Plaza art project. Bumett seconded and the motion carried 5-0.. June 5, 2000 Cupertlno Clty Council 24. Review of bid opening and award of contract for street maintenance slun'y seal, Project 2000-102. Burner moved to utilize the alternative bid and award the project to the lowest bidder, Valley Slurry Seal, in the amount of $154,237.90, and authorize a 10% contingency for a total project of $169,661.69. James seconded and the motion carried 5-0. 25. Approval of draft agreement between the city and the County of Santa Clara regarding Vallco redevelopment (requires a 2/3 vote), Resolution 00-169. Administrative Services Director Carol Atwood reviewed the staff report. James moved to adopt Resolution 00-169. Burnett seconded and the motion carried 5-0. 26. Update regarding the Annual C-enerai Plan Review and Planning Depa~hiient 2000 Work Program (Planning Commission Resolution 6030). City Planner Wordell said the development status had not changed since the end of 1999. She reviewed how they were doing on implementation of the general plan policies. She also presented the annual traffic level of service update and Planning Commission comments on the report. She outlined the Planning Commission's proposed work program for the year. Council received the report. STAFF REPORTS 27. Status report on student parking on Hyannisport Drive and Dolores Avenue. Public Works Director Viskovich said the report contained a summary of the meetings that had taken place on this subject. He said the committee has developed criteria for the pilot program that could be described at a public hearing, perhaps at the next meeting. Mr. Gene Longinetti from the Fremont Union High School District indicates they are interested in revisiting carpooling and bicycling. He referred to the petition fi'om the residents on McClellan Road who wanted permit parking on a short stretch of that street, and said they had been informed that they would have to be part of the pilot program. Mayor Statton said the school impacts the community in the same way that a corporation does, and they should implement traffic demand management techniques to take care of the problem. By consensus, council set a public hearing on June 19 to discuss the program with Hyannisport, Dolores, and McClellan Avenue residents. · June ~, ~000 Cuper~no (~ity (~ounci! Page 12 COUNCIL REPORTS Mayor Statton noted that this was City Manager Don Brown's final council meeting before his retirement. City Manager Brown commented on his relationship with council and commissions, the community, and city staff, and expressed how much he had enjoyed serving as city manager. Council members and staff commented on positive experiences in their work with Don Brown. ADJOURNMENT At 9:45 p.m., council adjourned to June 15, 8:30 a.m., in the Council Chambers, for Leadership Cupertino graduation.