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CC 03-20-2012 (i1P/ ASS i 9s. CUPERTINO APPROVED MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Tuesday, March 20, 2012 CALL TO ORDER At 2:36 p.m. Mayor Mark Santoro called the regular adjourned meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California. ROLL CALL Present: Mayor Mark Santoro, Vice-Mayor Orrin Mahoney, and Council members Barry Chang, Rod Sinks, and Gilbert Wong. Absent: None. STUDY SESSION 1. Subject: 2011-2012 Work Program Council member Rod Sinks stated that he has a conflict of interest on items dealing with Apple and said that he would leave the room when those items come up. City Attorney Carol Korade explained that Council member Sinks would have a conflict of interest when discussing the Work Program in the areas of Apple (item A under Major Developments), Embarcadero Park/Results Way (item G under Major Developments), and Apple Cafeteria(item J under Major Developments). She also noted four additional areas that could potentially pose a conflict if they deal with Apple in any way: Simms/Stocklmeir, Heart of the City, retail, and Stevens Creek Park Phase 2. City Manager David Knapp highlighted the current Work Program and explained that updates were highlighted in yellow. He noted two corrections: 1) Item 2, the last paragraph in the status column on page 24 of 36 should read, "Permanente Creek Water Quality Study — Provide data and review of other studies;" 2) Item 6-A, the last bullet in the comments section on page 27 of 36 should be removed. Mr. Knapp said that the Work Program reflects the Council's priorities and represents 10-15% of what staff is currently working on. He also noted that Council received Functional Org Charts from every department describing what each person in the organization takes care of. He said that Council can add or subtract from the Work Program and that staff would draft what is heard during the study session and bring to Council for approval. Staff reviewed each section of the Work Program which included Major Developments, Capital Improvements and Plans, Organizational Improvements, Public Safety, Housing, Tuesday, March 20, 2012 Cupertino City Council Economic Development/Redevelopment, Planning, Building Community, Community Organizations, and Go Green. During the Work Plan review Council members asked staff for information on the following: • Include information on the website and begin an email alert for interested parties regarding the Stevens Creek Trail alignment item • Work on improving bandwidth and give Council a follow-up report regarding solutions to the cell phone coverage issue • Check on the process for crossing guards allowing students to cross the street near Kennedy Junior High School and ask the principal of Cupertino High School about traffic issues around that school • Plan a meeting with the School Board and City Council • Follow-up on the Walk One Week (WOW) program with the school districts and apply for grant regarding Safe Routes to Schools • Look at all the hot spots around the City near schools where traffic congestion is an issue • Provide website links to Los Altos and Los Altos Hills in addition to the Regional Water Board regarding their testing and monitoring of Lehigh • Follow-up with the County regarding their decision to postpone the vote on the Reclamation Plan and keep residents informed on when that would be coming back • Follow-up with the Sister City groups on the Leveraging Ethnic Diversity (LED) program and add that to the Work Program • Move forward with solar and asked staff to provide background on recently passed legislation and to provide some possible scenarios of places to add solar and the cost • Add to the Work Program a review of traffic barriers on City streets • Council asked to be updated on the IHOP development Robert McKibbin commented on different sections of the Work Program: 1) Sandhill Property developer met with the public but hasn't included any of the public's suggestions into the new proposed plans; proposal to reduce retail portion by 50% would affect sales tax; developer has proposed housing and Mr. McKTbbin reminded Council that citizens voted on a ballot measure against housing in this area except senior housing; 2) The public was aware that an Islands Restaurant and bar were going into the Cupertino Crossroads area and that there were some concerns about parking, but he was glad to hear Council discuss process issues with that developer. 3) Prometheus Biltmore proposal to reduce retail from over 20,000 square feet to a minimum of 7,000 square feet would affect sales tax; the proposed four-story building would be out of character since that area usually supports only two-story buildings; three out of the four parcels weren't part of the housing component proposed with ABAG. Jennifer Griffin thanked Council for supporting the Lawrence Mitty Park property and said that her neighbors are happy about the Sterling Barnhart property. She said she was concerned that some of the upcoming developments would impact traffic on Stevens Creek Blvd. including the Prometheus and Sandhill proposals, the IHOP proposal in Santa Clara, and the Chili's in Cupertino. Tuesday, March 20, 2012 Cupertino City Council Council member Sinks left the room at 5:30 p.m. before the discussion of Apple topics on the Work Program. Staff reviewed those sections of the Work Program including Apple, Embarcadero Park, and Apple Cafeteria. Jennifer Griffin said that everyone wants Apple to be successful but said she was concerned that traffic studies would need to be re-done on Apple development because of other developments in the same area. She noted that Stevens Creek would receive the brunt of the extra traffic and she wanted to make sure intersections wouldn't get blocked. She also wondered how the Apple development would affect the housing/jobs balance. Council recessed from 5:40 p.m. to 5:50 p.m. CLOSED SESSION 2. Subject: Public Employee Appointment (Government Code 54957); Title: City Manager Council went into closed session at 5:50 p.m. At 6:55 p.m. the City Council reconvened in open session, and Mayor Santoro announced that Council gave direction to staff and no action was taken. PLEDGE OF ALLEGIANCE At 6:56 p.m. Mayor Mark Santoro called the regular meeting to order in the Council Chamber, 10350 Tone Avenue, Cupertino, California, and led the Pledge of Allegiance. ROLL CALL Present: Mayor Mark Santoro, Vice-Mayor Orrin Mahoney, and Council members Barry Chang, Rod Sinks, and Gilbert Wong. Absent: None. CEREMONIAL MATTERS AND PRESENTATIONS -None POSTPONEMENTS -None ORAL COMMUNICATIONS Jerry Lami, Executive Director of Farmers' Market, thanked Council for its support and noted that the market has been open at The Oaks Shopping Center for six months. Mr. Lami stated that in four to six weeks all 80 vendor spaces would be full, the market has attracted close to 3,500 people, and restaurants in the shopping center are all doing well. He also noted that those who were opposed to the market are now customers and the housing development nearby is using the market as a selling point. He stated that Council is welcome to obtain a booth to address the public and that Cupertino's successful operation is leading to the addition of five more markets in the Bay Area. Tuesday, March 20, 2012 Cupertino City Council Joe Lami, Executive Director of Marketing, thanked Council for its support and added that the market is a great service to the community. CONSENT CALENDAR Wong moved and Mahoney seconded to approve the items on the Consent Calendar as recommended, with the exception of Item No. 12 which was pulled for discussion. Ayes: Chang, Mahoney, Santoro, Sinks, and Wong. Noes: None. Abstain: None. 3. Subject: March 6 City Council minutes Recommended Action: Approve minutes 4. Subject: Accounts Payable for period ending February 17, 2012 Recommended Action: Adopt Resolution No. 12-025 5. Subject: Accounts Payable for period ending February 24, 2012 Recommended Action: Adopt Resolution No. 12-026 6. Subject: Accounts Payable for period ending March, 2, 2012 Recommended Action: Adopt Resolution No. 12-027 7. Subject: Accounts Payable for period ending March 9, 2012 Recommended Action: Adopt Resolution No. 12-028 8. Subject: Alcoholic Beverage License, One Eyed Spirits, 19200 Stevens Creek Boulevard, Suite 200 Recommended Action: Approve application for Distilled Spirits Importer& Wholesaler 9. Subject: Alcoholic Beverage License, Ludlow, 21265 Stevens Creek Boulevard, Suite 205 (Japanese restaurant in the Oaks shopping center replacing Sushi Ya) Recommended Action: Approve application for On-Sale Beer and Wine for Bona Fide Public Eating Place 10. Subject: Municipal Improvements, 21600 Rainbow Drive Recommended Action: Accept Municipal Improvements Description: The work included driveway approach and curb & gutter improvements in the City right-of-way 11. Subject: City Manager position recruitment process Recommended Action: Authorize the City Manager to negotiate and execute a contract with a recruiting firm to conduct the City Manager recruitment 12. Subject: The City's intent to vacate Finch Avenue, between Stevens Creek Boulevard and Vallco Parkway Recommended Action: Adopt Resolution No. 12-029 setting a public hearing on April 17, 2012 at 6:45 p.m. Tuesday, March 20, 2012 Cupertino City Council Jennifer Griffin expressed her concern that the vacation of Finch Avenue would be determined before an EIR is completed or permits for Main Street have been pulled. She said that she felt Main Street and the vacation of Finch Avenue should be separate items. Director of Public Works Timm Borden said that the vacation would not be approved until Main Street is approved and that Council is only setting May 1 as the date for a public hearing to coincide with the hearing regarding Main Street. Wong moved and Mahoney seconded to adopt Resolution No. 12-029 as amended with the correct hearing date of May 1. The motion carried unanimously. SECOND READING OF ORDINANCES - None PUBLIC HEARINGS -None ORDINANCES AND ACTION ITEMS 13. Subject: Annual Status report of the General Plan and Housing Element Recommended Action: Approve for submission to the California Department of Housing & Community Development (HCD) by April 1, 2012 Description: Review of the General Plan progress and program implementation as required by State Law Community Development Director Aarti Shrivastava reviewed the staff report. Jennifer Griffin said that developments such as Main Street, Biltmore, Rose Bowl, Apple, and the IHOP development are coming up. She noted that the General Plan says the City can't approve additional housing if road intersections can't maintain above a D grade level of service. She said she is concerned that Stevens Creek Blvd. will take the brunt of the traffic with these new developments. She urged Council to take a look at this when approving the projects. Shrivastava explained that the General Plan does talk about maintaining a level of service D for all intersections. She said that this will be looked at during the environmental review of the projects. She noted that the City will review and get a chance to provide comments regarding the IHOP development, but since it's in a different city, they can only comment. She said that staff would make sure that none of Cupertino's intersections would be impacted above level service D when the projects are approved. Wong moved and Mahoney seconded to approve the submission of the General Plan and Housing Element annual status report. The motion carried unanimously. Tuesday, March 20, 2012 Cupertino City Council 14. Subject: Initial 40% Litter Reduction Plan for the City of Cupertino Recommended Action: Adopt a plan and direct staff to join in a regional effort to prepare an Environmental Impact Report to cover the possibility that the City may adopt a Single-Use Carryout Bag Ban in the future Public Works Director Timm Borden and Environmental Programs Manager Cheri Donnelly reviewed the staff report via a PowerPoint presentation. They noted that a change from the staff report to the presentation was the inclusion of the $25,000 necessary for a partial band Environmental Impact Report(EIR). Dean Petersen, Director of Environmental Health for San Mateo County, described a ban as being a ban on a single-use plastic bag that can be carried, charging 10 cents for paper bags if a customer chooses, and exempts plastic bags that protect food products from contamination or leakage. He explained that the intent of the ban is to change behavior over time so that people will bring their own reusable bags. Mr. Peterson also noted that the purpose of the EIR is to discuss the issues associated with all types of bags. He said that he expects to have a document ready for the San Mateo County Board of Supervisors by October and the ordinance would go into effect in January 2013. Jennifer Griffin expressed her concern of plastic bag bans. She said that she avoids San Jose stores because of the bag ban. She urged Council to exempt take-out and restaurants from any ban. She also expressed concern that a ban would discourage people from shopping and all the regulations on plastic would lead to more bans such as shopping carts. Tim James, California Grocers Association, noted that their organization has been involved with this issue since 2004 and that 40 other California jurisdictions have passed ordinances with 30-50 currently in process. He said that almost all of the current bans are the same as San Jose. He urged Council at a minimum to include all retailers who sell food products rather than just grocery stores. He shared an example of a Lucky grocery store next to a CVS Pharmacy; both sell food products, but only the grocery store would be included if the ban were applied to grocery stores only. He said this would create confusion for consumers and the business community as well. Council member Sinks left the dais at 8:25 p.m. during the next speaker's comments because the speaker was from Apple and Sinks has a conflict of interest. Jason Lundgaard, Apple Inc., expressed concern regarding joining San Mateo's EIR process because Cupertino may have different needs or issues. City Attorney Carol Korade stated that an EIR defines the project and analyzes the full scope of the project. She indicated that Cupertino is not obligated to enact an ordinance and may choose one or more components from the EIR, but must stay within the scope of the EIR. Sinks returned to the dais at 8:30 p.m. Tuesday, March 20, 2012 Cupertino City Council John Zirelli, General Manager of Recology, said he supports the ban. He noted that the trash processor cannot process single bags because they clog the machine. He indicated that plastic bags of higher value plastic may be recycled in bulk and that Polystyrene is only recyclable in bulk and bundled. Chang moved and Mahoney seconded to choose Option 2 from the staff report and directed staff to join in San Mateo County's regional effort to prepare an Environmental Impact Report. Council also directed staff to look into making it an infraction for littering in Cupertino and a possible ban on plastic rings from cans and polystyrene as well. The motion carried unanimously. Council recessed from 9:25 p.m. to 9:35 p.m. 15. Subject: Professional services agreement with Lifetime Tennis Recommended Action: Authorize the City Manager to execute the agreement Parks and Recreation Director Mark Linder reviewed the staff report. Dana Gill from Lifetime Tennis answered questions. Wong moved and Mahoney seconded to authorize the City Manager to execute the agreement with Lifetime Tennis in the amount of$1,000,000 annually. The motion carried unanimously. REPORTS BY COUNCIL AND STAFF Council members highlighted the activities of their committees and various community events. ADJOURNMENT At 9:55 p.m., the meeting was adjourned to Tuesday, March 27 at 5:00 p.m. for a closed session regarding Public Employee Appointment (Government Code 54957); Title: City Manager. Gita_ScIAA\d-k- Grace Schmidt, Acting City Clerk Staff reports, backup materials, and items distributed at the City Council 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, then click on the appropriate Packet. Most Council meetings are shown live on Comcast Channel 26 and AT&T U-verse Channel 99 and are available at your convenience at www.cupertino.org. Click on Agendas & Minutes, then click Archived Webcast. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364.