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CC 04-17-2012 110/ ST.193„ CUPERTINO APPROVED MINUTES CUPERTINO CITY COUNCIL Regular Meeting Tuesday, April 17, 2012 PLEDGE OF ALLEGIANCE At 6:45 p.m. Mayor Mark Santoro 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 Mark Santoro, Vice-Mayor Orrin Mahoney, and Council members Barry Chang, and Rod Sinks. Absent: Gilbert Wong. CEREMONIAL MATTERS AND PRESENTATIONS 1. Subject: Presentation of anti-tobacco public service announcements prepared by the Cupertino Teen Commission and the City of Cupertino Communications Department staff Recommended Action: Receive presentation Parks and Recreation Director Mark Linder introduced the video presentation. 2. Subject: Proclamation to recognize and acknowledge Arbor Day in Cupertino Recommended Action: Present proclamation Public Works Director Timm Borden presented the proclamation, declaring April 21st as Arbor Day. He noted the benefits of trees to our environment, and announced a tree planting ceremony to be held in conjunction with the Earth Day Festival on April 21St POSTPONEMENTS -None ORAL COMMUNICATIONS -None CONSENT CALENDAR Mahoney moved and Chang seconded to approve the items on the Consent Calendar as recommended, with the exception of Item No. 4 which was pulled for discussion. Ayes: Chang, Mahoney, Santoro, and Sinks. Noes: None. Abstain: None. Absent: Wong 3. Subject: April 3 City Council minutes April 17, 2012 Cupertino City Council Page 2 Recommended Action: Approve minutes 4. Subject: Accounts Payable for period ending March 30, 2012 Recommended Action: Adopt Resolution No. 12-034 Chang moved and Mahoney seconded to approve the Item No. 4 on the Consent Calendar. The motion carried with Wong absent. 5. Subject: Accounts Payable for period ending April 6, 2012 Recommended Action: Adopt Resolution No. 12-035 6. Subject: Municipal Improvements, 10216 Pasadena Avenue Recommended Action: Accept Municipal Improvements Description: The work included sidewalk and curb & gutter improvements in the City right- of-way 7. Subject: Alcoholic Beverage License, Wingstop #503, 19620 Stevens Creek Boulevard, Suite 190 (Marketplace) Recommended Action: Approve application for On-Sale Beer and Wine for Bona Fide Public Eating Place 8. Subject: Alcoholic Beverage License, Florentine's Restaurant, 10275 South De Anza Boulevard Recommended Action: Approve application for On-Sale Beer and Wine for Bona Fide Public Eating Place SECOND READING OF ORDINANCES -None PUBLIC HEARINGS 9. Subject: Bollinger Road Subdivision and Variance Request for lot widths Recommended Action: Planning Commission recommended on a 4-0-1 vote to approve the subdivision and variance request Description: Applications: TM-2012-01, V-2012-01, EA-2012-01 Applicant: McClellan Development (Lands of Jauch) Location: Western Terminus of Bollinger Road, APN 359-22- 077 Environmental Determination: Negative Declaration. Descriptions: Tentative Map to subdivide an approximately 1.14 acre parcel into five parcels ranging from 7,040 to 11,096 square feet and Variance for reduced lot widths for four of the five new lots surrounding the proposed cul-de-sac that do not meet the minimum lot width requirements Senior Planner Colin Jung reviewed the staff report. Written Communications for this item included: • An excerpt of the draft Planning Commission minutes of March 26, 2012, related to this project. April 17, 2012 Cupertino City Council Page 3 • Email from Irene Jauch Tarter, expressing her support for the project • Email from Jiamin He, saying that neighbors did not receive notice, and expressing concern about traffic impacts • Email from Patricia Jauch, asking that the developer address his plan for the safety of the wild life that inhabits the property • Email from Gayle and Chuck Parker, saying that neighbors didn't receive notice and there should be a formal review of the pre-existing legal document associated with the original closure of Bollinger Road • Email from Anita Devine opposing the reopening of Bollinger Road, stating concerns about traffic and crime • Email from James Brown, opposed to the extension of Bollinger Road • Email from Darci Hodder, opposed to the project, and saying that she did not receive a notice Mike McClellan, President of McClellan Development, said he would comply with the conditions as proposed by staff and confirmed that a pass-through on Bollinger would never happen. He acknowledged the increase in traffic and said it would be similar to existing traffic on the north side of Bollinger and the rest of the neighborhood. He said a cul-de-sac would allow for convenient and emergency vehicle access, the new neighbors will likely be active participants in the neighborhood, and home values will likely be raised in the area. He pointed out that they have met or exceeded the City development requirements, and the exception they are asking for is typical of cul-de-sacs. He cited a study of ten cul-de-sacs in the project area which would all require at least one or two exceptions. He also noted that they sent letters to the twelve surrounding radius homes and knocked on doors to speak with those neighbors on March 17, 2012. He will continue to make efforts for communications, and will submit a construction management plan before the improvements, building permits, and design review. The following people spoke in opposition to this item: Umesh Toprani Arthur Dong Xiangqun Xu Robert Teng Stan Tsing Eddy Lem Barbara Wong The various concerns included: not enough public outreach from the developer; noticing from the City; increased traffic, crime, and safety issues; overflow parking; noise from the construction; a potential pre-existing legal document associated with the original closure of Bollinger Road; access for emergency vehicles; the exception for the lot width requirements; the code exception being allowed for the developer and not for homeowners in other situations; increased property taxes. April 17, 2012 Cupertino City Council Page 4 William Jauch, a trustee of the Jauch trust, said there is no feud between the family members and that it was the intent of his father to develop the land on Bollinger Road. He talked about the various possible options that they have worked through over the years and made sure to come up with the best situation. He said that they decided to go with McClellan Development because of their good communication and reputation. He noted that there has never been a written agreement. Jim Yee with TVS architects said the only exceptions are the lot widths, which will be developed to R1 standards and Floor Area Ratio (FAR) guidelines. Mahoney moved and Sinks seconded to adopt a Negative Declaration. The motion carried with Wong absent. Mahoney moved and Sinks seconded to approve the subdivision and variance request with the following condition: the applicant shall prepare a detailed construction management plan to be approved by the city prior to issuance of any grading or demolition permit for the subdivision construction. The plan shall address: equipment staging area, designate a complaint hotline and signage, fencing, and locations of portable restrooms, construction trailer, and worker parking. The plan shall also memorialize the city's noise standards and other construction activity regulating conditions specified in the tentative map resolution. The applicant shall also prepare a construction management plan for city review and approval prior to the issuance of any building permits for new residences on the subject property. That plan shall also address construction phasing. The motion carried with Wong absent. Council also directed staff for the new dwelling on lot #5, to avoid a side yard facing garage door and driveway that faces existing residences, and work with adjacent residents on the designs of the new homes. ORDINANCES AND ACTION ITEMS 10. Subject: Approve Refinancing of City debt Recommended Action: Adopt resolution approving the form and authorizing the execution of certain lease financing documents in connection with the offering and sale of certificates of participation relating thereto to refund the City's outstanding certificates of participation (2002 Refinancing and Capital Improvement Project), and authorizing and directing certain actions with respect thereto Description: The resolution approves the refinancing and authorizes the execution and delivery of various documents by authorized City officials Written Communications for this item included • A revised City resolution from staff. Finance Director David Woo reviewed the staff report and introduced the presentation. April 17, 2012 Cupertino City Council Page 5 Tim Schaefer from Magis Advisors went over the City's Proposed Refinancing of 2002 Certificates of Participation. As listed in his presentation, he reviewed the Takeaways, the Proposed Refunding, the Pledged/Leased Assets, Standard & Poor's Rationale for 2009 Upgrade, Standard & Poor's Rationale for 2012 Refinancing, Estimated Sources and Uses, Debt Service Schedule, Summary, and Financing Timeline. Jennifer Griffin asked what the term "leased asset" means, who are we leasing them to, and are we paying off the debt of the Library and Community Hall being built? Brian Quint, Magis bond counsel, explained that under the "Lease Exception" the City can borrow money and pay it back over time, beyond the fiscal year, and with the Certificates of Participation (COP's). He noted that the three assets in question are City Hall, Library, and Community Hall, are unencumbered assets, the lease back established the City's obligation to make payments over time, and those payments are effectively sold to investors. He said the lease is being structured to satisfy the requirements of law, and to refinance the existing debt encumbered in 2002. The City is not paying anybody back for this transaction, buying or selling anything, or mortgaging the buildings, and would not lose the title if it didn't pay. Chang moved and Sinks seconded to adopt Resolution No. 12-036 approving the form and authorizing the execution of certain lease financing documents in connection with the offering and sale of certificates of participation relating thereto to refund the City's outstanding certificates of participation (2002 Refinancing and Capital Improvement Project), and authorizing and directing certain actions with respect thereto. The motion carried with Council member Wong absent. REPORTS BY COUNCIL AND STAFF Council members highlighted the activities of their committees and various community events. ADJOURNMENT At 9:38 p.m., the meeting was adjourned. / V / wrti Kirsten Squarcia, R ording Secretary 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.