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.