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Exhibit CC 06-19-12 #5 June 4, 2012 draft minutes revised CC 06-19-12 Item No. 5 revised CUPERTINO DRAFT MINUTES CUPERTINO CITY COUNCIL Regular Meeting Monday, June 4, 2012 CITY COUNCIL MEETING ROLL CALL At 6:45 p.m. Mayor Mark Santoro called the regular meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California. Present: Mayor Mark Santoro, Vice Mayor Orrin Mahoney, and Council members Barry Chang, Rod Sinks, and Gilbert Wong. Absent: None. CEREMONIAL MATTERS AND PRESENTATIONS 1. Subject: Proclamations welcoming the PlaneTree Health Information Center to the Cupertino Library Recommended Action: Present proclamations Description: Proclamations will be presented to representatives of the PlaneTree Health Information Center, and also to the representatives of organizations that made the collaboration possible, including the Cupertino Library Foundation and the Santa Clara County Library District Mayor Santoro presented the proclamations to the three organizations. 2. Subject: Presentation by Hsinchu Sister City Committee Recommended Action: Accept presentation Chair Angela Chen introduced a video presentation showing highlights from the annual trip to Hsinchu and noted that two teacher chaperones and 24 students went. Two of the students gave their experience of the trip. Ms. Chen presented a gift of a glass dragon to Mayor Santoro from the mayor of Hsinchu. She also presented a gift of a dragon painting to Council member Wong from County Librarian Mark Fink. Council member Wong and Mayor Santoro urged others to go on future trips to Hsinchu. POSTPONEMENTS -None Monday, June 4, 2012 Cupertino City Council Successor to the Redevelopment Agency ORAL COMMUNICATIONS -None The Mayor noted that there would be no Meet Mayor Mark meeting this Wednesday since tonight's Council meeting was on Monday. He noted that the next meeting would be next month on the Wednesday after the first Council meeting at 4:00PM at City Hall. CONSENT CALENDAR Wong moved and Mahoney seconded to approve the items on the Consent Calendar as recommended, with the exception of Item No. 10 which was pulled for discussion. Ayes: Chang, Mahoney, Santoro, Sinks, and Wong. Noes: None. Abstain: None. Absent: None. 3. Subject: May 8 City Council minutes Recommended Action: Approve minutes 4. Subject: May 15 City Council minutes Recommended Action: Approve minutes 5. Subject: Accounts Payable for period ending May 11, 2012 Recommended Action: Adopt Resolution No. 12-057 6. Subject: Accounts Payable for period ending May 18, 2012 Recommended Action: Adopt Resolution No. 12-058 7. Subject: Improvement Agreement, Sreenivasa Viswanadha and Alivelu Viswanadha, 22017 San Fernando Court, APN: 357-12-005 Recommended Action: Adopt Resolution No. 12-059 Description: Through the improvement agreement with the City, the applicants for a building permit for a single-family residential development will be obligated to bond and construct city-specified roadside improvements along the street frontage of their building site 8. Subject: Improvement Agreement, Chakravarthy Parvathaneni and Rajitha Lanka, 10148 Prado Vista Ave, APN: 342-14-093 Recommended Action: Adopt Resolution No. 12-060 Description: Through the improvement agreement with the City, the applicants for a building permit for a single-family residential development will be obligated to bond and construct city-specified roadside improvements along the street frontage of their building site 9. Subject: Alcoholic Beverage License, Islands Fine Burgers & Drinks, 20750 Stevens Creek Boulevard Recommended Action: Approve application for On-Sale General (47) Monday, June 4, 2012 Cupertino City Council Successor to the Redevelopment Agency 10. Subject: Collection of the AB 939 Implementation and Household Hazardous Waste Fee Recommended Action: a. Adopt Resolution No. 12-061, authorizing execution of the Agreement for Countywide AB 939 Implementation Fee for FY 2012-2015; b. Adopt Resolution No. 12-062, authorizing execution of the Agreement for Countywide Household Hazardous Waste Collection Program for FY.2012-2015 Sinks moved and Wong seconded to approve the agreement for Countywide Household Hazardous Waste Collection with direction to staff to increase promotional efforts to residents so that the program wouldn't need to continue past FY 2012-13. The motion carried unanimously. SECOND READING OF ORDINANCES 11. Subject: Second reading amending Cupertino Municipal Code Section 2.18.110 deleting the resolution of intent and removal provisions regarding the City Attorney position Recommended Action: Conduct second reading and enact Ordinance No. 12-2096: "An Ordinance of the City Council of the City of Cupertino amending Chapter 2.18 of the Cupertino Municipal Code regarding the City Attorney position" City Attorney Carol Korade left the dais at 7:15 p.m. due to a conflict of interest with this item. City Clerk Grace Schmidt read the title of the ordinance. Wong moved and Mahoney seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the first reading thereof. Ayes: Chang, Mahoney, Santoro, Sinks and Wong. Noes: None. Wong moved and Mahoney seconded to enact Ordinance No. 12-2096. Ayes: Chang, Mahoney, Santoro, Sinks, and Wong. Noes: None. Ms. Korade returned to the dais at 7:16 p.m. PUBLIC HEARINGS 12. Subject: Consider a Development Permit, Architectural Site Approval permit and implementing environmental documents for a new development project generally at the southwest corner of Stevens Creek Boulevard and Blaney Avenue and an expansion at the Lake Biltmore Apartments at 10159 S. Blaney Avenue Recommended Action: a.) Approve a Development Permit to allow the demolition of an approximately 21,000 square foot existing commercial building and the construction of a mixed-use project consisting of 87 apartment units and a 7,000 square foot commercial building; Architectural and Site approval for a new mixed use development consisting of 87 apartment units and a 7,000 square foot commercial building; Tree Removal Permit to allow the removal and replacement of approximately 57 trees to facilitate the construction of a new Monday, June 4, 2012 Cupertino City Council Successor to the Redevelopment Agency apartment complex; adopt a Mitigated Negative Declaration; b.) Approve Development Permit to allow the construction of 12 new residential units at an existing apartment complex; Architectural and Site approval for 12 new residential units within an existing apartment complex; Tree Removal Permit to allow the removal and replacement of approximately 5 trees to facilitate the construction of two new apartment buildings; adopt a Mitigated Negative Declaration Description: a.) Application No(s): DP-2011-06, ASA-2011-20 (EA-2011-16), TR-2012-18; Applicant: Mike Ducote (Prometheus Real Estate); Location: 20030, 20060 Stevens Creek Blvd, 10041 Blaney Ave (including the vacant lot to the rear); APN: 369-03-003; 004; 006; 007; b.) Application No(s): DP-2011-05, ASA-2011-19 (EA-2011-15), TR-2012-13; Applicant: Mike Ducote (Prometheus Real Estate); Location: 10159 S Blaney Ave (Lake Biltmore); APN 369-03-008 Written communications for this item included: • Staff handout showing excerpts from Technical Appendix B of the Housing Trust Report Update 2007-2014 and Table 2-A,both from the General Plan • Staff PowerPoint presentation • Emails from residents and other community members regarding this project • Handout from Darrel Lum Director of Community Development Aarti Shrivastava explained two revisions to the calculations on the gross lot acreage and number of units allowed on both project sites. Assistant Planner Simon Vuong reviewed the staff report noting that the recommendation is now 80 units as explained in the calculation revisions. Applicant Jon Moss from Prometheus Real Estate Group said that they agree with staffs recommendation for approval noting that the plans are consistent with the City's goals and vision for the Housing Element and they are not asking for any variances. He explained that the decision to build one and two bedroom apartments would mitigate the issue of school impacts and noted that they would pay $328,000 in fees to the school district and pledge an additional $100,000 to the City for funding school operations. He said that the park fees would provide the City with $800,000 for existing parks or additional parks and the development would provide a fraction of housing units for jobs created by the new Apple development. He noted that Chili's Restaurant was already closing regardless of development plans and had expressed interest in terminating the lease early. Mr. Moss emphasized that all the existing retailers would be able to lease out of the newly proposed development. He explained that the project would provide access to Stevens Creek Blvd. from both sides of the retail development, have parking on either side of the two entries, the building depths would be about 40 feet to attract retail, the buildings would be one and a half stories in total height, and if existing retailers don't come back they have some ideas for potential tenants. Randol Mackley from SRS Real Estate Partners in San Jose said he was invited by Prometheus to look at the retail development and agreed with staffs recommendation for the project. He explained that he is familiar with the difficulty of mixed-use projects and noted Monday, June 4, 2012 Cupertino City Council Successor to the Redevelopment Agency his recommendations for the project including adding glazing, recommending 40-foot bay depths which provide a wider store-front and a better view to the street and rear which leads to better signage, and a larger than typical concrete apron in the front to provide an opportunity to sit outside. He gave some examples of possible tenants for a mixed-use development such as restaurants, jewelry store, men's and women's clothing, eye ware, mobile devices, and bicycles. He noted that they have the ability to pre-lease. Mayor Santoro opened the public hearing. Ruby Elbogen showed a picture of traffic from Stevens Creek Boulevard all the way south on Blaney Avenue. She suggested that a light should be added rather than a stop sign. She stated that she doubts the school consultant's results since student population has grown 20% in two years. She expressed concern regarding traffic and the safety of children on a narrow residential street. She urged Council to hold off on voting for the project until all the variables are known. Fari Aberg said that 80 are better than 87 but feels the density is still too high. She stated that • this is the last piece of land in the Heart of the City and that the City needs tax generation rather than additional housing in area. She said she opposes the findings by the school consultant and expressed concern for the safety of children. She stated that she believes the State doesn't expect to have housing on this particular land and questioned what the penalty would be for not having housing. She also said she supports having better types of retail in the project. Mark Matsumoto representing the Chamber of Commerce expressed support for development and submitted a letter to Council earlier. He stated that housing is tied to growing in sustainable manner. He noted that in surveys, housing is always mentioned as a concern. He stated that affordable housing is going out of area which creates poor environmental impacts. He stated that the Biltmore project promotes public transit, discourages urban sprawl, promotes economic development, and provides walk able areas within the neighborhood. He acknowledged concerns related to traffic, but supports the project as it was passed by the Planning Commission on May 8 with revisions as mentioned by staff tonight. Jennifer Griffin said that she has watched this item go through the Environmental Review Committee and the Planning Commission and feels that they have put as many recommendations as possible to follow City ordinances. She stated that she was glad that the project follows the Heart of the City by not building to the sidewalk. She said she supports the reduction from 87 to 80, but feels that 65 would be a better number for this property. She also expressed concern regarding traffic safety at the intersection of Stevens Creek Boulevard and Blaney Avenue and would support an upgrade to the intersection to make it safer. She also expressed concern for the oak trees on the west side of the property and feels that the City should do what is right for Cupertino and not what ABAG requires. Catherine Chen from State Farm said she welcomes the development but wants more successful retail space. She said she supports more retail, but is concerned about the parking Monday, June 4, 2012 Cupertino City Council Successor to the Redevelopment Agency spaces allocated for the project. Ms. Chen also noted that she didn't receive any notice for the meeting even though she is right next door. Ned Britt said that he is part of the Concerned Citizens of Cupertino. He stated that housing is an economic net life cycle loss to the City. He suggested that when considering mixed-use projects the City should demand that there be an increase in the sales tax portion to make up for the life cycle loss of housing. He also said he opposes using a 30-foot perimeter around the property to figure out how much housing density should be included in the project. He also said he opposes the school consultant results and feels their job is to look good for the developer but does not have real credibility. Don Sun, Planning Commissioner, but speaking as a resident said that 2-bedroom units are very attractive to same-sex children and will put more pressure on schools. He also noted that there is no way to recover from sales tax with the small amount of retail space proposed. He also questioned whether it was possible to expand retail from one floor to a second floor. Tom Hugunin said one of his main concerns is the loss of retail space. He noted that the Apple project will be bringing lots of people into the area to shop and money would be lost without enough retail space. He said he supports more commercial and less residential on the site. He also expressed concern regarding traffic on Blaney Avenue because many people park on the street and it overflows from the complex and also backs up to Rodrigues. Jon Willey stated that traffic and schools are important to the current residents in the area. He expressed concern that school impacts have been left out. He stated that he does not support an increase in housing density without addressing schools. He stated that he does not feel that enough study has been done regarding the impacts on school issues. Darrel Lum distributed diagrams that were missing from his earlier written communication. He discussed the General Plan, Appendix B, Housing Element. He noted that Site 4 and the other three parcels were supposedly master planned, but there is none for this development. He indicated that the site plan shows future cross easement to the site (4B) will be losing 3-5 parking spaces and redevelopment of the corner lot. He stated that street width frontage shouldn't be included in the calculations for a larger site and that the street dedication was done by the previous owner. He noted that the Heart of the City ordinances do not use street dedicated land to determine housing density and should be excluded from the calculations. He indicated that the trash enclosure was very far from the retail building and there would be a loss of two parking spaces. He said he supports building 55 units which meets the ABAG requirement and supports an increase in retail to 10,500 square feet. He said he opposes retail and residential on a second floor. Phyllis Dickstein (also speaking for Zahra Pavlovic who gave her time to Ms. Dickstein), said that the proposed housing is too much. She urged Council to consider the needs of the neighborhood in question and the number of multi-family units already in place. She stated that she believes residents in the area would like additional stores and are concerned that some stores are being warehoused. She also expressed concern that the project would Monday, June 4, 2012 Cupertino City Council Successor to the Redevelopment Agency eliminate existing businesses that ordinary residents want, like a grocery store and barber shop. She stated that traffic on Blaney Avenue is already dangerous for children and would only increase with more traffic going to work each day. She urged Council to pare down the project down and not approve without another traffic survey. Robert McKibbin discussed the parking inadequacies he feels are associated with the Biltmore. He stated that there are 358 parking stalls for 179 units at the Biltmore with two parking stalls per unit and another 41 units of street parking on Rodrigues and Blaney. He expressed concern regarding the reduction in parking stalls at the Biltmore to 320 and an increase in the number of units that will create a deficit of 62 parking stalls on the Biltmore site. He also expressed concern for the retail parking space since there is not an option to park on Stevens Creek Boulevard which will create a deficit of 40 spaces. He urged Council to look at the development based on parking ratios proposed and what is realistic. Mayor Santoro closed the public hearing. City Attorney Carol Korade explained that Council isn't allowed to consider school impacts when approving a project. Council discussed revising the project regarding the number of units, number of parking stalls, and retail/commercial space provided on the reduce the number of units, increase the number of parking stalls, and increase the retail/commercial space on the Stevens Creek side. The applicant requested a continuance to figure out the new design. Chang moved and Sinks seconded to continue the project to a Council meeting in August with direction to the applicant to revise the project to include approximately 60 apartment units instead of 80, increase in the number of parking stalls, and increase in the amount of provided retail/commercial space on the Stevens Creek site. The motion carried with Mayor Santoro voting no. Council recessed from 10:40 p.m. to 10:55 p.m. 13. Subject: Conduct public hearing and adopt Fiscal Year 2012-13 Budget Recommended Action: Review annual budget and receive public comments before adoption on June 19, 2012 Written communications for this item included emails from Sonja Marcus, Mike Hammes, and Dorothy Schafer supporting funding for Deer Hollow Farm and a packet of information from Nancy Canter regarding the Euphrat Museum of Art. Director of Administrative Services Director Carol Atwood reviewed the staff report. Mayor Santoro opened the public hearing. Bill Kerr requested support of$5,000 for the Cupertino Historical Society. Monday, June 4, 2012 Cupertino City Council Successor to the Redevelopment Agency Don Sun requested extra funding for the Cupertino Historical Society. Dr. Nancy Canter asked for continued support for the Euphrat Museum and requested $5,000 to continue with exhibitions for 2012. She highlighted the previous museum's exhibits. Jennifer Griffin said that she was happy to see crews working on storm sewers. She expressed support for the Deer Hollow Farm and a connection or extension to Rancho San Antonio Park. She stated that she was glad to hear that Council was considering preserving the Snyder Hammond house and expressed support for finding a place in Cupertino for historical buildings. She said she supports having the Lawrence Mitty Park land remain in the unfunded category for the future and feels that funding to maintain intersections on Stevens Creek Boulevard should be included. Carla Dorow was not present but Mayor Santoro read from her speaker card that she was in favor of funding for Deer Hollow Farm. Donna and Lawrence Aronson were not present but Mayor Santoro read from their speaker cards that they were favor of funding for Deer Hollow Farm. Mayor Santoro closed the public hearing. The hearing was continued to June 19. ORDINANCES AND ACTION ITEMS 14. Subject: Annual approval and renewal of the collection of existing storm drain fees at no increase in rates for fiscal year 2012-2013 Recommended Action: Adopt Resolution No. 12-063 Director of Public Works Timm Borden reviewed the staff report. Mahoney moved and Chang seconded to adopt Resolution No. 12-063. The motion carried unanimously. 15. Subject: Objections to proposed removal of brush and order abatement of potential fire hazard. NOTE: County Fire inspected all properties again and they are all in compliance so there is no need for a hearing Recommended Action: Table item This item was tabled. 16. Subject: Alternative Retirement System for Temporary and Part-Time Employees Recommended Action: Adopt Resolution No. 12-064 Description: Approve an Alternative Retirement System provided by Public Agency Retirement Services (PARS) in lieu of Social Security for employees not eligible for Monday, June 4, 2012 Cupertino City Council Successor to the Redevelopment Agency enrollment in the California Public Employees Retirement System (CALPERS) and direct the City Manager to execute the trust agreement and all necessary documents Human Resources Technician Maria Jimenez reviewed the staff report. Wong moved and Mahoney seconded to adopt Resolution No. 12-064. The motion carried unanimously. 17. Subject: League of California Cities Annual Conference September 5-7 in San Diego Recommended Action: Designate voting delegate and up to two alternates Mahoney moved and Wong seconded to designate Council member Wong as the voting delegate and Vice Mayor Mahoney and Council member Sinks as the alternates. The motion carried unanimously. 18. Subject: Clarify when the use of teleconferencing in connection with its City Council meetings is permitted Recommended Action: Consider adopting o:ne of the attached resolutions; either clarifying the conditions under which teleconferencing may be used; or deleting the teleconferencing option, Resolution 12-065 Wong moved and Mahoney seconded to amend the policy to say that teleconferencing only applies to closed sessions with prior approval of Council. There was further discussion and Wong withdrew his motion. Council further discussed how to amend the policy and whether or not to allow Council member Sinks to participate by teleconference at a possible closed session on June 20. Council concurred with Chang dissenting to allow Council member Sinks to teleconference into a possible closed session on June 20 unless the session could be moved to a different date that he could attend. Mahoney moved and Wong seconded to adopt an amended teleconferencing resolution with the following changes to the current policy: • Applies only to closed sessions • Must have prior approval by majority of Council at a previous meeting • Policy goes into effect June 21 • Rest of policy stays the same The motion carried with Council member Chang voting no. REPORTS BY COUNCIL AND STAFF Council members highlighted the activities of their committees and various community events. Monday, June 4, 2012 Cupertino City Council Successor to the Redevelopment Agency ADJOURNMENT At 12:10 a.m. on Tuesday, June 5 the meeting was adjourned. 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.