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CC 10-15-2013 CUPERTINO APPROVED MINUTES CUPERTINO,C'ITY COUNCIL Regular Adjourned Meeting Tuesday October 15, 2013 CITY COUNCIL MEETING PLEDGE OF ALLEGIANCE At 5:00 p.m. Mayor Orrin Mahoney called the City Council meeting to order in the Community Hall Council Chamber, 10350 Torre Avenue, Cupertino, CA and led the Pledge of Allegiance. ROLL CALL Present: Mayor Orrin Mahoney, Vice Mayor Gilbert Wong,:and Council members Barry Chang and Mark Santoro. Absent (recused): Council member Rod Sinks. CEREMONIAL MATTERS AND PRESENTATIONS -None POSTPONEMENTS - None ORAL COMMUNICATIONS Barbara' Rogers mentioned the upcoming Nov. 5 forum on aging. She showed a'short video. Chris Kennedy, Executive Director of the Institute for Age-Friendly Housing noted that the group is partnering with Quota and the City of Cupertino to present the fifth Silicon Valley Positive Aging Forum titled "Housing;, Community & Longevity: Here, Comes the Age-Wave!" She continued with the video that Barbara Rogers, began. Mayor Mahoney noted that the video would beposted on the website. Darryl Lum suggested that item numbers 10 and 11 regarding Pruneridge Ave. and the sales tax and consulting agreement be heard before item number 9G regarding the Tuesday, October 15, 2013 Cupertino City Council development agreement. Mayor Mahoney said that item numbers 9, 10, and 11 would be heard together and that the publiclestimony would be consolidated. CONSENT CALENDAR Wong moved and Chang seconded to approve the items on the Consent Calendar as recommended with the exception of item number 2 which was pulled for discussion. Ayes: Chang, Mahoney, Santoro, and Wong. Noes: None. Abstain: None. Absent (recused): Sinks. 1. Subject: Approve the September 5 City Council minutes Recommended Action: Approve the minutes 2. Subject: Approve the September 17 City Council minutes Recommended Action: Approve the minutes Council member Chang clarified his comments that were made under Council Reports. He.said that the arnicus brief item was pulled from the agenda due to'a last minute attack from Lehigh. He also said that lie wanted to make it clear that he has never received any money from Bay Area for Clean Environment (BACE) and that Lehigh would rather spend money to hire an attorney for a last minute attack than make sure they were in full compliance with the law. Chang moved and Santoro seconded to approve the September 17 City Council minutes as amended. The motion carried unanimously (Sinks recused). 3. Subject: Approve the October 1 City Council minutes Recommended Action: Approve the minutes 4. Subject: Accept Accounts Payable for period ending September 6, 2013 Recommended Action: Adopt Resolution No. 13'088 accepting Accounts Payable for period ending September-6, 2013 5. Subject: Accept Accounts Payable for period ending September 13, 2013 Recommended Action: Adopt Resolution No. 13-089 accepting Accounts Payable for period ending September 13, 2013 6. Subject: Accept Accounts Payable for period ending September 20, 2013 Recommended Action: Adopt Resolution No 13-090 accepting Accounts Payable for period ending September 20, 2013 Tuesday, October 15, 2013 Cupertino City Council 7. Subject: Accept Accounts Payable for period ending,September 27, 2013 Recommended.Action: Adopt Resolution No. 13-091 accepting Accounts Payable for period ending September 27; 2013 8. Subject: Set application deadline and interview dates for commissions and committees with terms expiring January 30, 2014 Recommended Action: Approve an application deadline of Friday, January 17 and interview, dates of Monday, January 27 and Tuesday, January 28 beginning at,5:00 on both days SECOND READING OF ORDINANCES - None PUBLICIIEARINGS 9. Subject: Development of an office, research and development campus with associated ancillary uses Recommended Action:, A. Adopt Resolution No. 13-082 approving the Certification of an Environmental Impact Report (EIR), and adoption of Findings and a .Statement of Overriding Considerations, Mitigation Measures (including adoption of Mitigation Measure TRANS-23 (Alternate)), and a Mitigation Monitoring and Reporting Program, EA- 2014-12; B. Adopt Resolution No. 13-083 approving.a General Plan Amendment, GPA-2011- 03; C. Conduct the first reading of Ordinance No. 13=2113: "An Ordinance of the Cupertino City Council approving the rezoning of an approximately, 1.1 Acre Area from Park And Recreation (PR) To Planned Industrial Park (P(MP)) located at APN 316.06 050 and 31606 051", Z-2011.03; D. Adopt Resolution No. 13-085,approving a Vesting Tentative-Map, TM-2011-03; E. Adopt Resolution No.13-084 approving: 1. Development Permit to 'allow the demolition of approximately 2.66 million square feet of existing office, research and development buildings and the construction of 3.42 million square feet of office, research, and development buildings; 120>000 s.f. (1,000 seat) corporate auditorium, 100,000 s.f. corporate fitness center, and 25,000 s.f. Valet Parking..Reception uses; 92,000 square feet of utility plants; and' associated parking facilities and ancillary buildings (such as security reception areas°and landscape.maintenance buildings)(DP-2011-04); and 2. Use Permit to allow a corporate auditorium and fitness center at a new office, research and development campus (U-2011-11'); and Tuesday, October 15, 2013 Cupertino City Council 3. Architectural and Site Approval to allow a new 2.82 million square feet office, research and development building with 2,385 basement parking spaces and a cafeteria,,a 5,870 parking space structured parking`facility with attached Central Plant, a 1,000 seat corporate auditorium, a fitness center; and associated site improvements including access tunnels, a surface parking lot; outdoor dining and recreational facilities and landscaping; (ASA-2011-14); and 4. Tree Removal Permit to allow the removal of approximately 3,710 trees, of which, approximately 90 trees are proposed to be transplanted, and replacement with at least 6,200 trees to allow the construction of an office; research and development campus(TR 2011-39); F. Cancel the Development Agreement with Hewlett Packard, applicable to a portion of the property,; and G. Conduct the first reading of Ordinance No. 13-2114: "An Ordinance of the City Council of the City of Cupertino repealing Ordinance No. 1702 and Approving a New Development Agreement By and Between the City of'Cupertino and Apple Inc. for the)eveloprnent of a New Corporate Campus" Description: Application No(s): ASA-2011-14, DA-2011-01, DP-2011-04, GP.A-2011- 03, TM=2011-03; TR-2011-39, U-2011-11, Z-2011-03 (EA-2011-12) Applicant(s): Apple Inc (Dan Whisenhunt); Location:' Area bounded by East Homestead Road, North Tantau Avenue, 1-280, North Wolfe Road including properties located on the:east side of North Tantau.Avenue; APN #s:316-06-033, 316- 06-038, 316-06-039, 316-06-045;316-06-046, 316-06-048, 316-06-049, 316-06-050; 316-06- 051, 316-06-052, 316-06-053; 316-07-044, 316-07-045, 316-07-046, 316-09-019, 316-09- 027, 316-09-028, 316-18-012; 316-18 7025,316-18-026, 316-18 027,.316-18-035 Written communications for this item included numerous emails to City Council regarding the project;. replacement exhibit DA-1g, CC-6;, desk item from staff regarding minor text edits to Mitigation Measure TRANS-23 (Second Alternate); amended Ordinance No. 13-2114; staff PowerPoint presentation; written comments from Art Cohen; addendum language to Development Agreement ,(item 3.14) ,read by Special Counsel Gerald Ramiza. Senior Planner Piu Ghosh reviewed the staff report via:a PowerPoint presentation. Adam Weinstein, Environmental Impact Report (EIR) Project Manager for LSA continued with the PowerPoint presentation. He highlighted: CEQA process; EIR timeline; EIR content: planning policy/land use; population, employment and housing;, aesthetics; biological and cultural resources; geology, hydrology, and hazards; noise, air duality, and .green house gas emissions; public services and utilities; summary of impacts;alternatives. Tuesday, October 15; 2013 Cupertino-CityCouncil Jane .Bierstedt, Transportation Consultant from Fehr & Peers continued with the PowerPoint presentation regarding Transportation Impact Analysis overview. She highlighted: study area including, intersections freeways and focused analysis; analysis scenarios; analysis methods including levels of service examples; Apple travel characteristics'(how do Apple employees commute); Apple Campus 2 traffic; intersection impacts; freeway impacts; identified transportation impacts & mitigation measures; transportation demand management; supplemental alternate mitigation measures(MM TRANS'23 and MM TRANS 27). Ms. Ghosh continued with the PowerPoint presentation highlighting: issues for consideration. (Wolfe Rd.. project driveway configuration and Cupertino Village driveway configuration); development agreement, project benefits vs. unavoidable adverse.environmental.effects; outreach and noticing; recommendation. Dan Whisenhunt, Director of Global Real Estate for Apple showed a video highlighting the details of the Apple Campus 2 project. He talked about the importance ofthe project to the local economy and the legacy-to Steve Jobs; Apple's late founder and CEO. He reviewed his PowerPoint presentation highlighting various aspects of the project including: new jobs; new revenues; public improvements;,community benefits;,increased property tax; and one-time revenue. Council.recessed from 6:52 p.m; to 7:08 p.m. Mayor.Mahoney opened the public hearvzg. The following'individuals;spoke in support of the`project: Art Cohen, owner of Blue Light Cinema Carol Baker Walter Wilson representing the Minority Business Consortium Anthony Spitalieri, Mayor of Sunnyvale Robert McCoy, Vice Chair Cupertino Pub lic Safety Commission Laurie Smith; Santa Clara County Sheriff Tom Dyer Carl Guardino, CEO'Silicon Valley Leadership Group Maria Lopez. Neil Struthers, CEOBuilding Trades Council Ed Hirshfield Colin Heyne, Deputy Director Silicon Valley Bicycle Coalition Tuesday, October 15, 2013 Cupertino City Council John Zirelli, General Manager Recology Cupertino and Cupertino Chamber of Commerce Board member Dolly.Sandoval Maria, Streeby, General Manager Cypress Hotel and restaurant and Cupertino Chamber of Commerce Board member Tim McRoe, Energy Director Silicon Valley Leadership Group. Kevin McClelland, Cupertino Chamber of Commerce Board member Matthew Mahood President and,CEO Silicon Valley-Chamber of Commerce Mahesh Nihalani representing Indo-American community Vicky Tsai, Cupertino business•owner Janice Chua, owner Bittersweet Debra Jamison member of Environment Action Committee for,Santa Clara Valley Audubon Society Donna Austin Helene Davis Darcy Paul, President Elect Cupertino Chamber of Commerce Anjali.Kausar, Executive Director Cupertino Chamber of Commerce Phyllis Goff, Cupertino Postmaster Rochelle Conover Ram Gopal, Cupertino small business owner Sandy James, representing Cupertino Chamber of Commerce, San. Jose Silicon Valley Chamber, board member of Organization of Special Needs Families, and Veterans Memorial Foundation Sam Ashknaz from Erik's Deli Cafe Steve Van Dorn, President:and CEO Santa Clara Chamber of Commerce Convention and Visitor's Bureau Sridar Pootheri Sam Nazhand Jim Reed, Public Policy Vice President for Silicon Valley Chamber of Commerce and Vice.Mayor of Scotts Valley Al DiF.rancesco Patrick'Kwok, Board member Bay Area Air Quality Management District and Santa Clara Valley Water District, Cristie Connors Lidia Blair, owner Pizza Party in Santa Clara Kevin.Dare,-representing Sand Hill Property Company Robert Hertzberg, former Speaker of California State Legislature David Kaneda, former Cupertino Planning Commissioner Keith Murphy Steve Scharf Tuesday, October T5, 2013 Cupertino City Council Their comments included: pros outweigh cons; thousands of new jobs' to benefit Cupertino; Apple addressed concerns regarding environmental and traffic issues; will help make downtown. Main Street more successful; increase property values; magnet for people to live and work in Cupertino; managed growth good; Apple leaving would be disaster for City; Apple met and exceeded public safety concerns; lasting partnership with the City; innovative design' reflects culture of City,; energy free footprint good; sensitive to impact of employees; thoughtful mitigation; iconic structure; planting native species good; Apple committed to environment and sustainability; traffic no more than when HP and Tandem existed; bicycle aspects of project good; project has good aesthetics and natural ambience; habitat restoration high on Apple's goals; good steward of Glendenning barn; benefits reach beyond borders of City into surrounding communities; suggestion of moveable lane.and having one-way traffic on Wolfe Rd. during certain hours; project supports small businesses; Apple has shown respect for community by reaching out to different organizations and neighborhoods; project good for tourism in Silicon Valley; City needs new jobs to be sustainable; Cupertino has become better city with Apple; ensure angled parking along V.allco Parkway remains; Apple will create more resources at State level; Apple helps keep office space full in City; Council should support Calabazas Creek and develop a local, seasonable park that is open to public; end current sales tax agreement with Apple so City "receives enfire 1%. The following individuals spoke neither in support nor opposition of the project: Craig Erb Gideon Kracov Ria Hutabaratlo Patrick Robbins Darrel Lum Roy Jensen Their comments included': mistake in Apple campus design to have buildings too close to 1280; suggestion to have I280 off-ramp go straight into Apple campus on south side parking structures and move parking'structures 'closer to main building; suggestion to have a,fly-over from I280 southbound into parking structures and not go into north Wolfe Rd; Apple has responsibility to ensure livable wages And safe working conditions for all direct hires and subcontracted workers on project, including security officers; resolve concerns about Apple's subcontractor , Security Industry Specialists (SIS); aspects of site plan such as street scape design and surrounding transit network undermine local connectivity, sustainable Tuesday, October 15, 2013, Cupertino City Council. transportation and dramatically increase traffic congestion; remove minimum parking requirements; require Apple to implement a parking cash out program; require Apple to provide multiple public easements through site; traffic, air-quality, and transportation,demand management concerns; traffic study is flawed regarding number of cars per day coming from project;, no incentive to address traffic congestion; traffic demand management penalty insignificant and should not be considered source of revenue; pay penalty instead to a traffic management association to operate private transportation shuttle service in Cupertino; property tax revenue from parcel containing main building won't go to Cupertino "schools; concern with sales, tax agreement especially regarding State Board of Equalization challenging proper point of sale with Apple; get assurance from State that will receive revenue; conflict between commercial and residential; neighbors won't have access to speak to anyone at Apple when have issues since campus will be closed. The;following`individual spoke in opposition of the project: John Davies, and his comments included: not a fair ,deal for City regarding fair market value for land; mistake on Resolution No. 13-086; page 8 regarding square feet; concern over campus being closed. Mayor Mahoney closed the public.hearing. Council recessed from 9:30 p.m. to 9:37 p.m. Council member Santoro offered a straw vote motion, seconded by Chang regarding the following aspects of the project: leaving the driveway open, at least temporarily, in Cupertino Village; adding language to the Development Agreement that Apple would voluntarily agree to support,and-not object to the formation of a Community Facilities District for a Caltrans study to 'improve the overpass on Wolfe Rd. and freeway on and off-ramps; putting back into place the mitigation measures for the three-lane proposal by staff (MM-TRANS 23— alternate). Mr. Whisenhunt noted that the traffic issue was studied intensively throughout the FIR process and there was no clear impact on the Wolfe Rd. interchange caused by the Apple project. He explained that Apple could get onboard with participating in a study to try and find the right solution to.a traffic issue but not without an upper limit. Council recessed.from 9`52 p.m. to 10:52 p.m. Tuesday, October 15, 2013 Cupertino City'Counicil Special Counsel Gerald Ramiza read addendum language to the Development Agreement (item 314) into the record. A. Wong moved,and Chang seconded to adopt Resolution No. 13-082 approving the certification of an Environmental Impact Report (EIR) for the Apple Campus 2 project, and adoption of Findings and a Statement of Overriding Considerations, mitigation measures and a Mitigation Monitoring and Reporting Program, EA- 2011-12, with adoption of Mitigation Measure TRANS-23 ('Alternate) with minor text.revisions as presented as a desk item and 'adoption of Mitigation Measure TRANS 27 (Second Alternate). The motion carried unanimously (Sinks recused). B. Wong moved and Chang seconded to adopt Resolution No. 13-083 approving a General Plan Amendment, GPA-2011-03. The motion carried unanimously (Sinks recused). C. Wong moved and Chang seconded to read Ordinance No. 13-2113 (Z-2011-03) by title only and that the City Clerk's reading would constitute the first reading thereof..Ayes: Chang, Mahoney, Santoro, and Wong. Noes: None. Abstain: None. Absent: Sinks (recused). D. Wong moved and Chang seconded to adopt Resolution No. 13-085 approving a Vesting Tentative Map, TM-2011-03. The motion carried unanimously (Sinks recused). E. Wong moved and Chang seconded to adopt Resolution No. 13-084 approving a Development Permit (DP-2011-04), Use Permit (U-2011-11), Architectural and Site Approval (ASA-2011-14), and Tree Removal Permit (TR-2011-39.) as noted with the following amendments: applicant will designate a viewing area from the Visitor's Center on Tantau Avenue to create a view of the main building; the driveway to"Cupertino Village will continue to allow rightturn in and out with mitigation measures described in the EIR; approve three left turn lanes exiting the, campus site at the Wolfe Road project driveway with mitigating measures. identified in Resolution No. 13-082. The motion carried unanimously (Sinks recused). F. Wong moved and Chang seconded to cancel the Development.Agreement with Hewlett Packard, applicable to a portion of the property. The motion carried unanimously (Sinks recused). G. Wong moved and Santoro seconded o read Ordinance No. 13-2114 by title only approving a Development Agreement: with minor text revisions as presented as a Tuesday, October 15, 2013 Cupertino City Council desk item including the Addendum read into, the record (item 3:14) by Special Counsel Gerald Ramiza and that the City ClerYs reading would constitute the first reading thereof. Ayes: Chang, Mahoney, Santoro, and Wong. Noes: None. Abstain: None. Absent,(recused):'Sinks. 10. Subject: Adopt Resolution No. 13-086, vacating, a portion of Pruneridge Avenue, between 'Wolfe, Road and Tantau Avenue, and various public easements; and Resolution No. 13-087, authorizing the City Manager to execute a Purchase and Sale Agreement with Campus.Holdings, Inc. (a subsidiary of Apple Inc.) for a portion of Pruneridge Avenue Recommended Action: Adopt.Resol'ution Nos. 13-086 and 13-087 Written communications for this item included replacement exhibits V-1, V-2, PSA- 1, PSA-2a and a letter to Timm Borden from Marlana Telfer. Wong moved and Santoro seconded to adopt Resolution No. 13-086 vacating a portion of Pruneridge Avenue, between Wolfe. Road and Tantau Avenue, and various public easements and,Resolution No. 13-087 authorizing the. City Manager to execute a Purchase and Sale Agreement with Campus.Holdings, Inc. (a subsidiary of Apple Inc.) for a portion of Pruneridge Avenue. The motion carried unanimously (Sinks recused). ORDINANCES AND ACTION ITEMS 11. Subject: Authorize the City Manager to enter into. an Extension of Agreement for Consultation Services with Baz Industries, the successor in interest to ACI Holdings, Inc Recommended Action: Authorize the,City Manager to enter into the agreement Description: The City currently has an Agreement for Consultation Services with Baz Industries which is due to expire on.February 19, 2014. The proposed Extension reduces the compensation to Baz Industries and is connected with and pursuant to a Development.Agreement with Apple Inc Wong moved and Chang seconded to authorize the City Manager to enter into an Extension of Agreement for Consultation Services with Baz.Industries, the successor in interest to ACI Holdings, Inc. The motion�carried unanimously (Sinks,recused). Tuesday, October 15, 2013 Cupertino City Council REPORTS BY COUNCIL AND STAFF David Brandt thanked.City staff David Stillman, Chad Mosley; and Piu Ghosh for their work on the project. Council members highlighted the activities of their committees and various community events. ADJOURNMENT At 11:20 p.m., the meeting was adjourned in .memory of Sally Brennan from West Valley Community Services to Monday, November 4 at 5:15 p.m. for a closed session.on pending litigation and conference with real property negotiator, followed by the regular meeting at 6:45 p.m., Cupertino Community Hall Council Chamber, 10350 Torre Avenue. &Ixc4 (�L q-v Grace Schmidt, 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.cul2ertino.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 wwwxupertmo.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.