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CC 03-04-08C O P E RT I N O APPROVED MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Tuesday, March 4, 2008 PLEDGE OF ALLEGIANCE At 6:10 p.m. Mayor Dolly Sandoval called the regular meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California, and led the Pledge of Allegiance. ROLL CALL Present: Mayor Dolly Sandoval, Vice-Mayor Orrin Mahoney, and Council members Kris Wang and Gilbert Wong. Absent: none. ELECTION RESULTS 1. Adopt a resolution receiving the declaration of results for the election held on February 5, 2008, Resolution No. 08-027. The City Clerk distributed the draft resolution and attached canvass of votes. She announced that Council candidate Mark Santoro received the majority of votes at the February 5 election. Wang/Wong moved and seconded to adopt resolution No. 08-027, receiving the declaration of results. The motion carried unanimously. OATH OF OFFICE 2. Oath of Office was given to the newly-elected Council member by Supervisor Liz Kniss. (No documentation in packet). Supervisor Liz Kniss administered the Oath of Office to Mark Santoro, and he took a seat at the dais. COUNCIL COMMENTS 3. Comments by Council members and Mayor. (No documentation in packet). The Council members offered their congratulations to Council member Santoro. Council member Santoro thanked Council for their comments and also thanked all who supported him and who worked on his campaign. March 4, 2008 Cupertino City Council Page 2 PUBLIC COMMENTS 4. Members of the audience were invited to speak. (No documentation in packet). The following individuals congratulated Council Member Santoro: Sherry Fang, Kathy Stakey, Marty Miller, Bob Adams, Marilyn Howard, and Barry Pangrle. RECESS 5. The public was invited to attend a brief reception in the lobby. (No documentation in packet). The Council recessed from 6:30 p.m. until 6:45 p.m. CLOSED SESSION -None CEREMONIAL MATTERS -PRESENTATIONS -None POSTPONEMENTS -None WRITTEN COMMUNICATIONS -None ORAL COMMUNICATIONS Lee Song commented on the Human Rights Torch Relay which was coming to the Bay Area. Their goal was to put an end to human rights abuses in China, especially the persecution of those who practiced Falun Gong. Sparky Cohen reported that he had been unable to speak at a Library Commission Meeting on issues that he had brought forward. No agenda or minutes had been provided to him and he had been misquoted, with no opportunity to correct the mistake. Council advised Mr. Cohen that the new Library Commission Chairman had been advised of Brown Act requirements and Mr. Cohen's issues had been re-agendized. He would be notified when they would be discussed. Hong Zhang (through her interpreter Lee Song) urged Council to support their efforts to end persecution of Falun Gong practitioners in China. Michele Lew, President and CEO of Asian Americans for Community Involvement, advised Council of two upcoming events. A Domestic Violence Workshop was scheduled for March 7 at DeAnza College. Free hepatitis B screenings will be given at the AACI office in San Jose the first and third Saturdays of the month. No appointments were necessary. Jennifer Griffin commented that the Cupertino Courier was not being delivered to the Rancho Rinconada area of town and she had been advised by the paper that this area had been dropped from circulation. She believed it was important for all Cupertino residents to get the city's news. March 4, 2008 Cupertino City Council Page 3 The City Attorney noted that if this area had been dropped the city would no longer be able to use the paper for its legal notices. Staff would look into this matter. Carol Reppacci noted that an open house on the Cupertino Relay for Life was scheduled for March 31 at the Quinlan Center. She urged everyone to attend and get involved. Christine Giusiana, Executive Director of the Chamber of Commerce, reminded everyone of the Star Awards to be given on March 15. This year's recipients were Martha Kantor, the Learning Game, the Cupertino Division of the Santa Clara County Fire Department, and Mark Sarjeant. CONSENT CALENDAR Wang/Wong moved and seconded to approve the items on the Consent Calendar as recommended, with the exception of Item No. 11 which was pulled for discussion. Ayes: Mahoney, Sandoval, Wang, and Wong. Noes: None. Abstain: Santoro. 6. Approve the minutes from the February 19 City Council meeting. 7. Adopt resolutions accepting Accounts Payable for February 15 and 22, Resolution Nos. 08-023 and 08-024. 8. Adopt a resolution accepting Payroll for February 22, Resolution No. 08-025. 9. Accept the Treasurer's Bud eg t Report for January 2008, including a status report on General Fund revenue and expenditures. 10. Accept city project performed under contract: Reconstruction of Curbs, Gutters, and Sidewalks, J.J.R. Construction, Inc, Project No. 2006-03. (No documentation in packet). The City's Contractor J.J.R. Construction, Inc., has satisfactorily completed work on the 2006 Reconstruction of Curbs, Gutters, and Sidewalks Project. The project is therefore eligible for final acceptance and the retained portion of the progress payments for the work eligible for release to the contractor, since a year has elapsed since completion. ITEMS REMOVED FROM THE CONSENT CALENDAR (above) - 11. Adopt a resolution increasing part-time hourly rates for Parks and Recreation staff, Resolution No 08-026. Wang noted that the salary schedule for Parks and Recreation summer staff had not been updated since 2001. She believed Council should receive updated wage information as it was received by staff and this matter should be reviewed by Council on a regular basis. Wang/Wong moved and seconded to adopt a resolution increasing part-time hourly rates for Parks and Recreation staff, Resolution No. 08-026. Motion carried unanimously. March 4, 2008 Cupertino City Council Page 4 PUBLIC HEARINGS 12. Consider Application No. Z-2008-01, City of Cupertino, Southeast End of Cleo Avenue Adjacent to Highway 85, APN 362-31-004: a) Adopt a Negative Declaration b) Rezone a .27-acre parcel from Planned Multi-Family Residential (P/R3) to Planned Residential (P/Res) to accommodate four single-family homes c) Conduct the first reading of Ordinance No. 08-2024: "An Ordinance of the Cupertino City Council rezoning of a .27 gross acre parcel located at the south east end of Cleo Avenue and Highway 85 from Planned Development Multi- Family (PR3) to Planned Residential, P(RES)" Community Development Director Steve Piasecki reported that the city had purchased the Cleo Avenue property in 2005 from Caltrans and in 2007 had released a request for proposals for the Cleo Avenue Affordable Housing Development. Habitat for Humanity was selected for the development of this project and staff was directed to bring this required rezoning back to the Council. Wong/Mahoney moved and seconded to adopt a Negative Declaration. The motion carried unanimously. Wong/Mahoney moved and seconded to approve a rezoning of a .27-acre parcel from Planned Multi-Family Residential (P/R3) to Planned Residential (P/Res) to accommodate four single-family homes. Motion carried unanimously. The City Clerk read the title of the ordinance. Mahoney and Wong moved and seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the first reading thereof. Ayes: Mahoney, Sandoval, Santoro, Wang and Wong. Noes: None. UNFINISHED BUSINESS NEW BUSINESS 13. Authorize the Mayor to send a letter to the Mayor and City Council of San Jose, requesting their consent to realign the Sphere of Influence and Urban Service Area Boundaries of 13.5 acres of land located easterly of Saratoga Creek to the Centerline of Lawrence Expressway and to designate the City of Cupertino as lead agency before LAFCO in this matter. Community Development Director Steve Piasecki stated that the City was interested in acquiring or leasing the above referenced property to develop a creek side park and trail segment. This segment was part of the San Tomas/Saratoga Creek Trail Master Plan adopted by the city in 1999. March 4, 2008 Cupertino City Council Page 5 Jennifer Griffin stated that the Rancho Rinconada neighborhood would like to have the Linear Park area along Lawrence Expressway become part of the park system along Saratoga Creek between Mitty Avenue and the Lawrence Bridge at 280. She believed this would be a wonderful asset to the whole Cupertino community and especially to the immediate neighborhood. Wang/Wong moved and seconded to authorize the Mayor to send a letter on behalf of the City Council. The motion carried unanimously. 14. Consider proceeding with a South Vallco Master Plan (General Policy 2-30, Strategy 1). Community Development Director Steve Piasecki stated that one of the Vallco Park South area strategies in the 2005 General Plan called for a Master Plan "to ensure continuity of mass, scale, connectivity and adequacy of infrastructure and services, including schools". Sand Hill properties purchased the last parcel in this area without entitlements and was ready to proceed with its development, and staff wished to confirm Council's expectations related to the South Vallco Master Plan. The Master Plan process and the developer's planning efforts would happen concurrently. He listed the four alternatives for Council's consideration: (1) Proceed with the Master Plan with the developer covering the costs (approximately $100,000); (2) Proceed with the Master Plan and split the costs between city and developer; (3) Proceed with the outreach effort only; or (4) Waive the Master Plan as long as Sand Hill proceeded in good faith with securing entitlements and the corresponding community outreach effort. City Attorney Charles Kilian corrected that the correct wording for option 4 would be to repeal the Master Plan by doing a General Plan Amendment. Peter Pau, Sand Hill Properties, questioned how they would go about getting a Master Plan when certain properties involved had their entitlements and Hewlett Packard and Apple stated they would not be participating. Mr. Pau stated that they were ready to move forward with their project, hoping to break ground by the end of the year, and he did not see how a Master Plan could be done in a timely fashion. Mr. Pau stated that he was willing to work with the other developers and that he planned on doing comprehensive outreach to the community. In response to a question from Council, Mr. Pau noted that he anticipated that the sales tax generated from his project would be $1 million a year. Jennifer Griffin said that she supported retail at the Wolfe Road/Vallco Parkway site and having a master plan for the entire area would allow for a cohesive plan to be developed. She expressed her concerns about an increase in traffic and also stated that it was very important that the double row of ash trees along Wolfe be protected. Keith Murphy stated his concerns about repealing part of the General Plan but he also noted that the development as proposed seemed appropriate. He stressed the importance of outreach to the community. Mr. Murphy also commented on the pedestrian-friendly aspect including the location of parks, trails and connectors. March 4, 2008 Cupertino City Council Page 6 Marty Miller, Planning Commissioner, also commented on the need for community outreach. He said that each developer had control over his property but only the Council had the desire and motivation to see the whole area work together. Mr. Miller recommended hiring an experienced consultant, which would not impede Mr. Pau's project. He noted that the North Vallco Master Plan had been done by committee and had taken a long time but the result had been worthwhile. Important design concepts had been established which would help with future development. Bob Adams, Chamber of Commerce, noted that the Chamber did not see the need for a formal plan but that dialogue needed to stay open. He also noted that it would be nice to have a conference space on the site. Council discussed the various options before them and the basic questions: What did they want to achieve? How did they want to do it? How did they want to pay for it? It was noted that it was an opportunity for the developers (Sand Hill, Evershine and Cupertino Square) to work together and to agree upon a concept to connect the entire area. Council agreed that public outreach was of the highest importance, including input on what amenities were being considered for this area. Wong made the motion that the applicants should start the process and, if the staff was not satisfied with the results, the developers would be directed to hire a facilitator/consultant. The motion failed for lack of a second because not all the Council members felt this task should be left to the developers. Council members noted that a cost analysis was needed but the outreach costs should be shared between the city and the developer. It was noted that staff would be expected to attend the outreach meetings and if needed they should return to Council with an explanation of what resources they needed to actively participate in the process. Mahoney/Wang moved and seconded that Council would move forward with the Vallco South Master Plan, to be defined as a "focused" Master Plan, primarily focused on the Sand Hill Properties site and its interface with its neighbors, but also including the continuity of mass, scale, connectivity and adequacy of services for the existing and proposed development in the entire area. The process should include significant community outreach and public input. A streetscape would be included and the Hewlett- Packard and Apple properties would be excluded. The motion carried unanimously. Wong/Wang moved and seconded to direct the applicant to drive the process and to report back to the Council on the progress within 60 days. The motion carried unanimously. Council noted that they were not looking for a complete plan but rather they were looking for agreement on the concept. March 4, 2008 Cupertino City Council Page 7 15. Review proposed Cupertino Square Rosebowl retail/residence mixed-use project and proposed Wolfe RoadNallco Parkwa. retail (Work Program Element lA-3). Community Development Director Steve Piasecki reported that since the 2004 approved use permit for aretail/residential mixed use development on the Rosebowl site and retail development along Wolfe Road the ownership of the Rosebowl site has changed to KCR Development, Inc. and the Wolfe RoadNallco Parkway retail site is owned by Vallco International Shopping Center (Orbit). The Council had requested the opportunity to review the plans being submitted by the new owners to confirm their conformity with the original plans. Staff had provided a comparison of the plans with suggested comments for Council's review. Economic Development Director Kelly Kline commented on the key elements of momentum, synergy and critical mass as related to these projects. She noted that tying these projects together could help create the Council's goal of a downtown atmosphere. She said that the combined critical mass of retail and residential would allow for a shopping center that would be competitive with local rivals. City Planner Ciddy Wordell noted that there was substantial compliance with the originally approved plans, and she highlighted the areas of difference including the following: Details of transparency, connection and signage for the north side of Vallco Parkway needed to be addressed; staff recommended against increasing the number of three bedrooms from 39 to 50; staff recommending keeping the 30' minimum tenant spaces with a few exceptions of 20' available; the developer would have to demonstrate that the loss of parking spaces would be made up across the street; further work was needed on vehicle access and courtyard location. Mike Rohde, Cupertino Square, asked that the size of tenant spaces remain flexible to attract a variety of good tenants. He stated that it was never intended to have the courtyard on the corner of that busy street, and they would rather place it closer to Strike. Also, an exterior patio was not a good solution and it increased the cost of the corner building significantly, so it would be better to use wider sidewalks for a promenade look. He said they would be doing a parking analysis and restriping all of the lots. Edward Chan commented that they were looking into options regarding vehicle access. They concurred with keeping the number of bedrooms in the original plan. They would like some flexibility as to the location of the lobby. Regarding the tenant spaces they requested a minimum of 15'. He believed keeping it to the 30' size would preclude many tenants. He commented on Santana Row and downtown Los Altos as places where the store fronts were smaller than 30' and where it worked very well. As far as the transparency was concerned he did not think this was in keeping with the Mediterranean style. March 4, 2008 Cupertino City Council Page 8 Jennifer Griffin commented on the importance of all three of these projects having connectivity. She also referred to the importance of protecting the double row of ash trees along Wolfe at Vallco Parkway. Ms. Griffin stated her concerns about traffic safety and referred to the park dedication fees. Council agreed that the Cupertino Square Rosebowl retail/residence mixed-use project and the proposed Wolfe Road/Vallco Parkway retail project would be integrated into the new South Vallco Master Plan. Council also provided the following direction to staff: (1) The width of the retail space footage shall be provide variety, and may be a minimum of 15 feet; (2) The bedroom count shall remain as stated in the original plans; (3) The approved courtyard in the Wolfe Road retail area is not required, but the corner shall be softened. (4) Staff and developer will work on vehicle access onto Vallco Parkway -the result shall have no net loss of parking; (5) The lobby shall stay where it is as requested by the developer; (6) There shall be flexibility regarding the transparency issue as requested by the developer; (7) The elevation on .the north side of Vallco Parkway shall be improved and have more detail; (8) The brick pavement at Vallco Parkway and Wolfe shall be put in, with costs worked out between city and developer; and (9) All three owners shall work together to achieve connectivity of their projects including, for example, a streetscape plan with benches, lighting, etc. while maintaining the unique aspects of their developments. An informational update on the progress of this collaboration will be made by Mr. Rohde with his regular reports to the Council. ORDINANCES STAFF REPORTS 16. Update on the Work Program Element 3C Fiscal Strategic Plan. (No documentation in packet): a) Utility Users Tax (UUT) Administrative Services Director Carol Atwood noted that decisions had been reached in recent court cases, and staff would bring the utility users tax back to the Council with a recommendation to place it before the voters in November 2009. If approved, it would update the language to include cell phones and would protect the city from a potential $500,000 annual loss resulting from untaxed cell phone usage. b) Library fundraiser Administrative Services Director Carol Atwood noted that a library fundraiser would promote community awareness of the costs related to running the city's library. Currently there were events planned: The Flint Center has donated 200 tickets to the city for the "Chicago" performance on May 30~h; and several local businesses were donating items for an online auction. Council received the report, and no action was taken. March 4, 2008 Cupertino City Council Page 9 COUNCIL REPORTS Council members highlighted the activities of their committees and various community events. ADJOURNMENT At 11:50 p.m. the meeting was adjourned to Tuesday, March 18 at 4:00 p.m. to conduct interviews for the Planning, Housing, and Senior Citizens Commissions and the Community Development Block Grant Committee. The meeting will be held in Cupertino City Hall Conference Room A, 10300 Torre Avenue. /' Kimberly Smith, i y Clerk Staff reports, backup materials, and items distributed at the meeting are available for review at the City Clerk's Office, 777-3223, and also on the Internet at www.cupertino.org. Click on Agendas & Minutes/ City Council/ Packets. Most Council meetings are shown live on Cable Channel 26, and are available at your convenience on the web site: Visit www.cupertino.org and click on View Meetings Online. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364.