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CC 12-15-03· CUPEF(TINO APPROVED MINUTES CUPERTINO CITY COUNCIL Special Meeting Monday, December 15, 2003 CALL TO ORDER At 5:30 p.m. Mayor James called the meeting to order in Conference Room C, 10300 Torre Avenue, Cupertino, California. ROLL CALL City Council members present: Mayor Sandra James, Vice-Mayor Patrick Kwok, and Council members Richard Lowenthal, Dolly Sandoval, and Kris Wang. Council members absent: none. Staff present: City Manager David Knapp, Administrative Services Director Carol Atwood, City Attorney Charles Kilian, Community Development Director Steve Piasecki, Parks and Recreation Director Therese Smith, Recreation Supervisor Mike O'Dowd, and Deputy City Clerk Grace Johnson. STUDY SESSION 1. Discuss funding for the Stevens Creek Corridor project. Parks and Recreation Director Therese Smith reviewed a PowerPoint presentation titled "Stevens Creek Corridor Project Status/Funding" and highlighted the project status; budgeted city funds and availability of grant funds; and other funds potentially available. Administrative Services Director Carol Atwood summarized the budget information. She highlighted the amount of Capital Improvement Project (CIP) funding from the Blackberry/McClellan Ranch Master Plan, the Blackberry Farm enterprise fund and the Park Dedication fund. She said that Council had three options of what to do with the funding: 1) Leave the money where it is and spend it on a proposal using state funding as leverage; 2) Leave the money where it is and not spend it; 3) Put the money into the General Fund to help the budget problem. Council discussed spending the rest of the earmarked $55,000 to finish the McClellan Ranch Master Plan. They discussed spending $150,000 out of the Blackberry Farm Improvement Fund to apply for matching state grant funding at a 3 to 1 ratio. Council gave general direction to staff to spend the $55,000 to finish the Master Plan and to bring back an item on the January 5 agenda regarding applying for state grant funding. December 15, 2003 Cupertino City Council Page Pick a date for the Stevens Creek Trail Aligmnent field trip. (No documentation in packet). Continued from November 17. Council concurred to take the field trip either during or after the Council goal setting session (date to be decided with item number 28). Mayor James re-ordered the agenda to discuss Closed Session Item No. 36 next. CLOSED SESSION At 6:20 p.m. City Council recessed to a closed session to discuss the following: 36. Negotiations for purchase, sale, exchange, or lease of real property - Government Code Section 54956.8 - consultation with City representatives David Knapp and Therese Smith regarding the lease of the Simms House, located at 22241 McClellan Rd. (No documentation in packet). At 6:48 p.m., the meeting reconvened in the City Council Chambers, and the City Attorney announced that the City Council had directed its representatives to proceed with the lease of the Simms House as discussed in the closed session. PLEDGE OF ALLEGIANCE At 6:48 p.m. Mayor James called the meeting to order in the Council Chambers, 10300 Torre Avenue, Cupertino, California, and led the Pledge of Allegiance. ROLL CALL City Council members present: Mayor Sandra James, Vice-Mayor Patrick Kwok, and Council members Richard Lowenthal, Dolly Sandoval, and Kris Wang. Council members absent: none. Staff present: City Manager David Knapp, Administrative Services Director Carol Atwood, City Attorney Charles Kilian, Public Works Director Ralph Qualls, Community Development Director Steve Piasecki, Senior Planner Aarti Shrivastava, Senior Planner Peter Gilli, Parks and Recreation Director Therese Smith, Public Information Officer Rick Kitson, and City Clerk Kimberly Smith. CEREMONIAL MATTERS - PRESENTATIONS Presentation regarding the goodwill delegation visit to Toyokawa and donation to American Red Cross. (No documentation in packet). Sandoval narrated a brief slide show of the recent City delegation to Toyokawa and presented a check to Jeanine Sauer of the American Red Cross in the approximate amount of $1,350 (140,000 Yen) from the Toyokawa employees and Toyokawa Intemational Association for California Fire Reliefi December 15, 2003 Cupertino City Council Page Presentation to Michael Gottwald in recognition of his receipt of the 2003 Distinguished Service Award from AroseBooks Publishing. (No documentation in packet). Mayor James announced that the publishers of AroseBooks had created their first Distinguished Person Award of 2003 in recognition of Mr. Gottwald's efforts for helping to promote reading. James read excerpts from a letter by Marcella Parsons, owner of the publishing company. Lowenthal read a letter from Steven Hays Young, co-author of the book Sandlot Stories. Mayor James also presented Mr. Gottwald with a proclamation on behalf of the City. POSTPONEMENTS - None WRITTEN COMMUNICATIONS City Clerk Kimbefly Smith noted that there were five handouts related to item number 21 and one handout for item number 26. ORAL COMMUNICATIONS Robert Levy, 10812 Wilkinson Avenue, said that he agreed with a speaker at a Bicycle and Pedestrian Commission meeting who said that nothing the Cupertino citizens have to say has any effect. He said that it seemed like decisions on projects have already been made prior to the Council meetings. Dennis Whitaker, 20622 Cheryl Drive, referred to item No. 21 regarding the Oaks Shopping Center. Whitaker asked Mayor James to recuse herself from this item to avoid a conflict of interest because of her relationship with a long-term tenant of the shopping center. James said she had already considered the matter and conferred with the City Attorney, who determined that she had no financial relationship with any of the tenants or the property owners; however, in order to avoid the perception of a conflict, she had decided to abstain from voting on the matter. CONSENT CALENDAR Lowenthal/Kwok moved and seconded to approve the items on the Consent Calendar as recommended, with the amendments as noted to the minutes of December 1. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. Approve the minutes from the December 1 City Council meeting, with a correction to page 5 to reflect the correct vote on Item No. 1 and correct the name and title of a speaker. 6. Adopt a resolution accepting Accounts Payable for November 28, Resolution No. 03-223. 7. Adopt a resolution accepting Payroll for December 5, Resolution No. 03-224. 8. Accept the Treasurer's Budget Report for October 2003. December 15,200g Cupertlno City Council Page 4 Adopt a resolution declaring weeds on certain properties a nuisance and set a heating date for January 20, Resolution No. 03-225. 10. 11. 12. Approve the Planning Commission nomination for an Environmental Review Committee representative. Accept city projects performed under contract for Portal Park and Wilson Park Improvement, Project No. 2002-9119 (Bay Construction). (No documentation in packet). Adopt a resolution amending the boundary of Underground Utility District No. 17, Stevens Creek Boulevard between Tantau Avenue and Stem Avenue, Resolution No. 03- 226. 13. 14. 15. 16. 17. 18. 19. Adopt a resolution authorizing the City Manager to execute an agreement with the Santa Clara Valley Transportation Authority (VTA) that will enable the City to receive a Transportation Fund for Clean Air (TFCA) grant in the amount of $1,114,797.00 for the Mary Avenue Pedestrian Footbridge project, Resolution No. 03-227. Adopt a resolution authorizing the City Manager to execute a Joint Use Agreement with Santa Clara Valley Water District for the Regnart Creek Trail, Resolution No. 03-228. Adopt a resolution accepting an Improvement Agreement for Barbara Feldstein Kalman, Kathy Keiles Baker, and Kaaren Streetman, 21678 Stevens Creek Boulevard, APN 357- 17-012, Resolution No. 03-229. Adopt a resolution authorizing additional construction contingency for the contract for the DeAnza Boulevard Adaptive Traffic Signal System, Project No. 420-9535, in the amount of $30,000.00, to cover the installation of additional traffic signal detector loops and to cover any additional unforeseen work required to complete the project, to bring the total project amount including contingency to $224,550.00, Resolution No. 03-230. Approve a Memorandum of Understanding with the Volunteer Center of Silicon Valley for emergency services. Approve the Second Amendment to Second Restated and Amended Joint Exercise of Powers Agreement (JPA) creating the Silicon Valley Animal Control Authority (SVACA) for notice of withdrawal from the Authority as of July 1, 2004 and the development and approval of the Authority's budget for fiscal year 2004/05. Adopt a resolution allocating the City of Cupertino Roberti-Z'Berg-Hards (RZH) Block Grant allocation of $129,165 for the Stevens Creek Corridor project, Resolution No. 03- 231. 20. Adopt a resolution allocating the 2002 Resources Bond Act Per Capita allocation to the Stevens Creek Corridor project, Resolution No. 03-232. December 15, ~003 Cupertino City Council Page ITEMS REMOVED FROM THE CONSENT CALENDAR (above) - None Mayor James reordered the agenda to discuss item Nos. 26, 35, and 25 next. NEW BUSINESS 26. Review and adopt a resolution authorizing the City Manager to negotiate and execute Amendment No. 3, for additional consultant services with SMWM Architects, for the additional items added to the Library and Civic Center project, as approved by the City Council, not to exceed an amount of $350,000, and approval of $100,000 for additional services, as may be required and approved by the Director of Public Works, through the completion of the project, Resolution No. 03-233. Distributed at the meeting was a memorandum from the Public Works Director dated December 15 listing a categorical breakdown of the components to be addressed by the amendment, including add-back items approved by Council on August 7; building design modifications for the Aquarium; Library Shelving bid package; public art pedestal and signage; rotary/donation plaques; and contingency change orders. Robert Levy, 10802 Wilkinson Avenue asked where additional monies come from when there are change orders to the library contract. Public Works Director Ralph Qualls said that the money is contained within the project budget or is contributed by the donors. Kwok/Lowenthal moved and seconded to adopt Resolution 03-233. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. STAFF REPORTS 35. Receive a monthly status report on the Cupertino Civic Center and Library Project. (No documentation in packet). Public Works Director Ralph Qualls said that the library project is on schedule and is well within budget. An uncommitted contingency of $825,000 is still being held and will be discussed at the January 20 meeting. He said there are no serious issues with the project and no unforeseen conditions. Council received the report. December 15, 200] Cupert{no C{ty (~ounc{1 Page NFW BUSINESS 25. Request for a fee waiver from the Spiritual Assembly of the Baha'is of Cupertino in the amount of $225.00 to hang a banner across Stevens Creek Boulevard for World Religion Day celebration on Sunday, January 18, 2004. Public Works Director Ralph Qualls reviewed the staff report. Lowenthal/Sandoval moved and seconded to deny the fee waiver request. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. PUBLIC HEARINGS 21. Consider Application Nos. Z-2003-03, TM-2003-03, U-2003-05, EXC-2003-04, EA- 2003-11, Ken Busch/Regis Homes, 21255 Stevens Creek Boulevard, APN(s): 326-27-035 (Oaks Shopping Center): A. Grant a negative declaration Approve a Tentative Map to subdivide one parcel into a 5.4 - acre commercial property and a 2.9 - acre residential property for 49 condominiums and 2 duets Approve a Use Permit to demolish 17,800 square feet of the Oaks Shopping Center and construct 49 townhomes, and to make signage, landscaping and parking improvements to the Oaks Shopping Center Approve Heart of the City exceptions related to setbacks and screening walls adjacent to commercial properties Rezone approximately 10 acres from P(CG) and R3 to P(Com, Res) Planned Development with Commercial and Residential Intent Conduct the first reading of Ordinance No. 1932: "An Ordinance of the City Council of the City of Cupertino Rezoning 10.19 Acres From P(CG) Planned Development With General Commercial Intent and R3 Multiple Family Residential to P(Com/Res) Planned Development With Commercial and Residential Intent." The following written communications were distributed at the beginning of the meeting: (1) A letter dated December 11 from Heitman Real Estate Investment Management, representing the ownership of the Oaks Shopping Center, supporting the mixed-use concept presented at this meeting, and committing to the following improvements: New individual tenant signage; new monument signage; repainting the exterior; eliminating unleasable vacant and empty areas; new parking layouts; improvements to the eastem December 1~, ~00~ Cupertino Ooune[1 ]~age ~] entrance; improved vehicular and pedestrian circulation; preservation of mature oak trees and improvements to landscaping; sidewalk/landscape improvements on Stevens Creek Boulevard and Mary Avenue; directional signage at pedestrian entrances; repair and replacement of electrical and wet utility infrastructure; and heaters in outdoor seating areas (2) A written communication from Pam Ailes, Cupertino resident, objecting to the project because of impacts on the limited parking available for Memorial Park (3) A petition against changing the General Plan to build town homes and duet homes in the Oaks Shopping Center, signed by approximately 214 individuals Community Development Director Steve Piasecki reviewed the staff report and gave an overview of the project via PowerPoint. He emphasized that the project did not include any of the duet homes planned for Mary Avenue. He said that the major issues discussed at the Planning Commission were land use, school impacts, the narrowing of Mary Avenue, parking, and walkability. He said that the proposed rezoning is consistent with the General Plan. Senior Planner Peter Gilli continued the presentation and highlighted density, school impacts, parking, and walkability. He said that staff had received letters from 10 of the tenants in favor and 4 opposed. He said the applicant indicated that 2 of the tenants formerly opposed are now in support because of the changes made to the plan. He said that there is piablic support for the project as a Smart Growth item. He also said that the owners of the Glenbrook Apartments, a citizen's group of the City, and speakers at the Planning Commission meetings oppose the project. He said that a petition circulated at the Planning Commission meeting indicated 250 people who were opposed to the project. Applicant Mark Kroll of Regis Homes of Northem California distributed correspondence from the shopping center's retail tenants supporting the proposed project. These included Aida's University Book Exchange; Celtic Shoppe; Coffee Society; Coldstone Creamery; Dance Academy USA; Fabulous Nails; Hobee's; Ida's Gems and Designs; Jamba Juice; MetroSport; Postal Annex; and Togo's. He said that Regis Homes, with an added contribution from Heitman, would be willing to provide $150,000 for Mary Avenue improvements, including traffic calming. They would also contribute to the construction of two crosswalks on Mary Avenue, one to the Senior Center and one to the Glenbrook Apartments. He talked about relieving parking issues by having the parking on Mary Avenue be assigned as 2 hour parking and allow the memhants and neighbors to apply for parking permits. He introduced the members of the development team. John Eller, President of SB Architects, slides regarding the site and landscape plan. He explained that the project would provide a residential edge to Mary Avenue with shared open space between residents and the community. He described the proposed architecture December 15,200~ Cupertino City Council Page and design concepts as an appropriate level of mixed- use development with attractive streetscape on Mary Avenue. Paul Lettieri of Guzzardo and Associates, landscape architects, explained the pedestrian connections between residential and retail and the rest of the community. He said that there is a strong tree-planting scheme internally and on Mary Avenue, with gathering spaces and seating under the oak tree. Sorhab Rashib, representing the traffic engineers and transportation planners for the study, spoke regarding the traffic and parking studies for the project. He said that the key findings for the traffic study include improved site access from Stevens Creek Blvd., on- site circulation, re-striping improvements, and no increase in traffic in the p.m. peak hour, and no intersection impacts. He said that there is an adequate parking supply at the shopping center with no reduction on Mary Avenue, a minimal need for shared guest parking spaces due to the supply that's being proposed, and 2-hour time restrictions on Mary Avenue would provide additional spaces. Lynn Miller, partner at Retail West, said that the space at the back of the Oaks is un- leasable in a retail format. He said that the Oaks is not being destroyed, but is being improved by this project and would give the retail a chance to be more successful. Kroll responded to Council questions. He said that the usual amount of time from the start of construction to occupancy is 14 months. He said that they would do everything they could to minimize the impact to the current tenants during construction and that the main impact would come during the repaving the parking lots, which would only take a few weeks. He said that 51 units are best from a design perspective, but that 49 units would help to create more community. He said that homeowners usually prefer not to have on-site amenities, as they are expensive, and Memorial Park is very close-by, so the money would be better spent enhancing the crosswalk to the park. Rashib responded to Council questions. He said that there are approximately 558 existing parking spaces at the retail center. Wit!: the elimination of the movie theater and the sushi restaurant, the required number for the center is around 289 and the proposed project will have 311 spaces. He said that there would be more parking than is required by City code and the plan includes wider spaces. The following individuals spoke in favor of the project: · Roberta Holliman, co-president of the League of Women Voters for Cupertino/Sunnyvale, 11155 La Paloma Dr. (submitted letter dated December 12) · Roma D. Dawson, 130 San Fernando · Tamara Shelton, on behalf of Greenbelt Alliance, 2750 Hasting Ave., Redwood City · Christina Allen, 20440 Town Center Lane, · Heidi Walfreid, 1525 Meridian Ave. #101, San Jose representing the Santa Clara County Association of Realtors on the Housing Action Coalition December 15, 2003 Cupertino City Council Page 9 · Laura Stuchinsky, representing the Silicon Valley Manufacturing Group · Shiloh Ballard, staff to the Housing Action Coalition Michael L. Bruner, 1518 Hillview Dr., Los Altos Chuck Marsh, Manager of the Cupertino Oal:s, 21265 Stevens Creek Blvd. Their comments included: (1) This project would help to meet the goal of providing adequate housing for low and moderate-income families, preferably through small multi- unit developments scattered throughout the community; (2) Affordable housing would be within walking distance of transit, retail, a park, and a community college; (3) The center is blighted now and this is an ideal project in an economically down time; (4) The project is consistent with General Plan and will bring more walkability to the community; (5) It will increase the viability of the half of the shopping center that remains; (6) What Cupertino does helps the surrounding cities as well as Cupertino so that sprawl decreases and proximity to services increases; (7) Projects that are 14, 16, or 18 units to the acre are considered low density by today's standards; (8) Since high schools depend on assessed value for their income and a large portion of the Oaks is vacant and generates no income, building 49 townhomes at an average of $700,000 each would generate an assessed value of $34 million: The following individuals spoke in opposition to the project: · Joanne Tong, 22339 McClellan Rd. · Malka Nagel, Camino Vista · Elaine Chung, 10446 Anson Ave. · Robert Levy, 10802 Wilkinson Ave. · Sandra Murata, 20954 Pepper Tree Lane · Delores Carson, 10062 Senate Way · Dennis Whittaker, 20622 Cheryl Dr., · Penny Whittaker, Cheryl Dr. (submitted written correspondence regarding negative impacts on the students and the Fremont Union High School District) · Robert Garten, 21344 Dexter Dr. (submitted typed commentary from a prior presentation of Fremont Union High School District) · Francine Nelson, 10439 Mary Ave. (submitted petition dated December 10, 2003) · Irvin Webster, 21342 Milford Dr. · Mark Silverman, 21431 Milford Dr. · Don Deuchar, 21375 Rumford Dr. (presented letter dated December 11, 2003) · Don Dmcker, 10416 Anson Ave. · Robert Gordon · Ned Britt · Deborah Jamison, 21346 Rumford Dr. · Norm Hackford 10346 Tonita Way · Peg Goodrich, P.O. Box 1658 December 15, ~00] (~upertlno (~ity ~ouncll Page · Homer Tong, 22339 McClellan Rd., Fremont Union High School District board member · Nadeane Diede, 10522 Esquire Pl. · Jean Shwab, 10353 Mary Ave. · Brian Avery, 130 E. Dana St., Glenbrook Apartments (submitted picture of car parked close to bedroom window) · Burt Avery, 130 E. Dana St., builder and original owner of Glenbrook Apartments · Dick Weaver, 21426 Rumford Dr. · Julia Bringans, Rumford Dr. · Kim Whittaker, 20622 Cheryl Dr. Their comments included: (1) Exceptions should not be granted for height or setbacks; (2) Over 70% of the General Plan Task Force did not want to use commercial land for housing, or create additional impacts on schools; (3) The high schools, and Monta Vista in particular, have reached capacity; (4) The developer should have worked more closely with the college and students; (5) The project should revitalize the shopping center, not create a density problem; (6) Replacing commercial uses with housing creates only an incremental improvement in the jobs/housing balance; (7) What is the justification for more high-density housing in view of the projects already underway and the economic downturn over the last 3 year; (8) Find a way to improve the Oaks by working with the existing owners or helping them find new owners; (9) Impacts on the local area and Cupertino will result from narrowing Mary Avenue, including speeding and traffic congestion; (10) Wait until the General Plan Task Force makes its recommendations and the new General Plan is approved before taking final action on the Oaks; (11) This project won't revitalize the shopping center and will degrade the quality of life; (12) There will be a loss of tax income from retail outlets if it is changed to residential; (13) There is no space for extra cars, and who will enforce the provision in the contract to not park cars in the garages; (12) Headlights from cars will shine in the windows of the ground floor apartments with diagonal parking; (13) People won't always use the crosswalks. Joe Walton, 21721 Columbus, Chair of Bicycle and Pedestrian Commission, said that the commission hasn't taken a position on this project, but has a vested interest in alternative transportation. He encouraged Council to study all of Mary Avenue and not just the portion near the Oaks. He said that diagonal parking with a bike lane behind is hazardous to riders. He asked for a dedicated lane with no parking, and a middle lane area for cars to park. Mark Bums, Chamber of Commerce President, presented a letter dated December 15, which said that the Chamber of Commerce had not taken a specific position on the Regis Homes application. He said that the Board of Directors of the Chamber has adopted a general position opposing zoning changes that would reduce the amount of commercial retail space because of the loss of sales tax generation. He said the Chamber maintained the importance of preserving the limited commercial and industrial space remaining in the city. December 15, ~00~ (~upert~no (~{ty (~ounc{l Page Mark Kroll summarized the project as follows: (1) The rebirth of the Oaks is the best chance the center has; (2) This proposal is supported by a vast majority of the merchants; (3) This is a well-designed, thoughtful project; (4) There are no unmitigated, environmental impacts from this project; (5) The 49 homes, including the 7 BMR homes, will provide needed housing for the entire community; (6) This project is the most appropriate use of the back, 3.4 acres of the Oaks; (7) This project will provide substantial funds for the improvement of Mary Avenue; (8) The impact on the high school district was considered; (9) The proposal will increase the property tax that supports the high school by approximately $34 million. Kwok said that the project requires three exemptions to The Heart of the City and input is first needed from the General Plan Task Force. He said that changes to the City's domain are being made to accommodate the project. The City's General Plan task force e is working with ABAG to define the housing element and to bring down the goal to a more realistic level. He said that the City shouldn't compromise on the retail and that the Oaks can be revitalized. He said he doesn't have any problems with the project density, but the loss of open space is a concern. He said he is concerned about the diagonal parking and narrowing on Mary Avenue and safety to bicyclists. He said City revenue must be weighed with quality of life and education. Sandoval said that there are a lot of community benefits and some downsides to the project. She said the benefits of the project included: (1) The increased tax base for schools and the City; (2) Converting under-utilized real estate that looks like blight; (3) Less traffic with a housing development than completely activated center; (4) Building state-of-the-art crosswalks, a second set of lights, and slowing down traffic for walkability on Mary Avenue. She said she would like to see improvements to the Highway 85 crosswalk if the project goes forward. She stated downsides to the project including: (1) The project potentially reduces parking for current Oaks tenants; (2) This project will eliminate the potential for retail growth; and (3) There is some impact on school attendance, and although the schools said they could absorb it, they also said they don't have good figures for this type of development. She said that one of her main concerns is to not hurt the existing, vital businesses. She said that the City has no power to force the owners of the Oaks to invest in a retail revitalization plan. She disagreed with those who said that Cupertino has no need of additional housing. She liked the idea of parking in the median of the street, as they do in San Jose's Japan town and gave some other parking suggestions. Lowenthal said that 49 homes wouldn't generate the same amount of traffic as if the Oaks had a successful theater and restaurants. He said that until the new General Plan says there isn't to be any more growth, then there is no debate. The current General Plan says there is room in the schools, on the streets, around town, and in the parks. The General Plan isn't to be debated on every application. He said both districts wrote letters to the City stating that the Oaks development was fine. He noted that the elementary schools will get more money with more students, and the high schools are paid by the value of property. He said that density isn't an issue because it's 49 homes compared to 517 units December 15, '100J Cupertino City Council Page 12 across the street at the Glenbrook Apartments. He said that he has passion for the Oaks and doesn't want to see it turned into housing, but all the businesses there say they need this project and he will support them. Wang said that her main concern was giving up the potential for future business once the economy improves, and perhaps the owners might want to try again to revitalize the center. Lowenthal/Sandoval moved and seconded to approve the application. The motion failed by the following vote: Ayes: Lowenthal and Sandoval. Noes: Kwok and Wang. Abstain: James. 22. Consider Application Nos. Z~2003-02, TM-2003-02, U-2003-04, EXC-2003-06, and EA- 2003-09, Jane Vaughatff Menlo Equities, 10050 & 10080 N. Wolfe Road, APN No. 316- 20-084. (This item was continued from November 17): A. Adopt a Negative Declaration Approve a Tentative Map to subdivide a 7.74 acre parcel into two parcels: 4.47 and 3.2 acres, respectively Approve a Use Permit to construct a 107-unit condominium project and 6,450 square feet of new retail space Approve an exception to the Heart of the City Plan to exceed heights above 36 feet E. Rezone a 7.74 acre parcel from P(CG,O,ML,HOTEL) to P(Plarmed Development) Conduct the first reading of Ordinance No. 1929: "An Ordinance of the City Council of the City of Cupertino Rezoning a 7.74-Acre Parcel From P(CG, O, ML, Hotel) or Planned Development With General Commercial, Office, Light Industrial and Hotel Uses to P(Com, Off, Res) or Planned Development with Commercial, Office and Residential Uses." Community Development Director Steve Piasecki reviewed a PowerPoint slide show that illustrated the site plans. Senior Planner Aarti Shrivastava highlighted the Council's comments from the August 4 study session, and explained some of modifications the developer has made to meet those concerns. She continued with the slides which illustrated the elevations, landscaping plan, areas of open space, photographs of the existing Ash trees, statistics regarding traffic and parking, affordable housing, and fiscal impacts. She explained that there would be no substantial change in the intersection's level of service, and no intersections would be reduced below a level of service D. She said that the schools were notified, and both Cupertino Union School District and Fremont Union School District expected no significant impacts. December 15, ~00~ Cupertino City Council Page Jane Vaughn, representing the applicant, said that Menlo Equities ow-ns the property, and when the residential units are sold they will still own the retail. She distributed copies of a PowerPoint presentation titled "Cupertino Courtyards", and highlighted some of the slides. She said that housing is needed, and it will replace a seldom-used parking lot. She said that the housing will be affordable by Cupertino standards, ranging from the low $400,000 to high $500,000, and the below-market-rate units will range from $194,00 for a one-bedroom loft to $304,000 for a 3-bedroom unit. She said that the retail uses will help to activate Stevens Creek Boulevard, and the project is consistent with the General Plan Jim Yee, the project architect, continued with the PowerPoint presentation that included photographs of the existing buildings and immediate area. He said the project would maintain the existing 103,000 sq. fi. of office use and add 6,400 sq. ft. of retail and 107 units of for-sale housing. He discussed the amenities available for both residents and the community, and pointed out the pedestrian walkways and four courtyards, one of which is designed for children. He also showed a virtual view driving by the project. Robert Levy said he did not think there was enough open space, since he anticipated there would be children in at least half of the units. He also thought there might be a problem with too many people wanting to use the pool. He suggested that the developer work a deal with the owner of neighboring properties to buy another acre, and then provide a larger open space area. He also asked if there was sufficient access for fire engines to reach the 3-story units. Dennis Whitaker, 20622 Cheryl Drive, spoke in favor of the project. He thought it's in a good location and the local high school won't be significantly impacted. He also liked that there would be a variety of housing sizes, but felt the project should be made still smaller, preferably reduced to 80 units. He was opposed to Stevens Creek Boulevard becoming lined with businesses and house, and asked that the Council keep the current character of the city. Joanne Tong, McClellan Road, was concerned about the height exceptions for the two towers, and said each time the City allows an exception to heart of city it sends a message to developers to keep requesting it. She said that no development should proceed until the new General Plan amendment has been approved. Homer Tong, McClellan Road, said he was particularly concerned about impacts on the schools, and the figures seem to be inaccurate. He asked if the number of housing units is driven by the ABAG housing requirements. Jane Bonham said the Heart of the City Specific Plan specifically allows the type of exception requested, and it is only for two locations internal to the complex, in which the elevators will be installed. Councilmember Sandoval said she was in favor of the project. She said an empty parking lot does not add value, and workforce housing is desperately needed. The plan's December 15, 2003 Cupertino City Council Page 14 walkability was good, and it will create a nice entrance to Vallco and HP. She said this project would bring a lot of benefits to the community. Sandoval suggested that the city explore options for the park fees in order to bring open space amenities to the Rancho Rinconada area. Council member Kwok said this is a good thrill project, although he would have preferred fewer units and more park space. He did not object to the height exception since it was only to accommodate the elevators. Richard Lowenthal said there is a recurring theme of lack of park sites on the east side of the city, and that the Council should consider at another time how to get those started. He said he liked this integration of retail, office and housing. Kris Wang said she felt the number of prospective students seemed too low. She said she would prefer to keep as many trees and as much open space as possible. She said her preference would be to save the park money and utilize it elsewhere to acquire a larger space. Sandoval/James moved and seconded to adopt a Negative Declaration. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. Sandoval/Lowenthal moved and seconded to approve the Tentative Map. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. Lowenthal/Kwok moved and seconded to approve the Use Permit for 107 condominium units and 6,450 square feet of new retail space. Wang offered a friendly amendment to the motion to limit the number of condominium units to 95. Kwok seconded, and the motion failed to carry with Sandoval, James, and Lowenthal voting no. A vote was taken on the original motion for 107 condominium units, and carried unanimously. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. Lowenthal/Kwok moved and seconded to approve an exception to the Heart of the City Plan to exceed heights above 36 feet. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. Sandoval/Kwok moved and seconded to rezone a 7.74 acre parcel from P(CG,O,ML,HOTEL) to P(Planned Development). Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. The City Clerk read the title of the ordinance. Kwok/Lowenthal moved and seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the first reading thereof. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. PLANNING APPLICATIONS - None December 15, 2003 Cupertino City Council Page 15 UNFINISHED BUSINESS 23. Review the neighborhood entry improvements to South Portal Avenue by the Marketplace Shopping Center. This item was continued to the meeting of January 5, 2004. 24. Authorize the City Manager to finalize a contrazt for animal services with the City of San Jose. Administrative Services Director Carol Atwood disthbuted and reviewed a chart titled Animal Service Comparisons, which contrasted the SVACA proposal with that of San Jose. Sandoval/Lowenthal moved and seconded to authorize the City Manager to finalize the contract. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. City Manager David Knapp said he had been quoted as having agreed with the new SVACA proposal. He explained that he had said it was better than the original SVACA proposal. He also had said the city would consider going with SVACA if they made some other changes, but SVACA was unable to make those changes. NEW BUSINESS 27. Reduce the number of Fine Arts Commissioners from seven to five members. This item was continued to the meeting of January 5, 2004. 28. Select a date for the Council goal setting session. (No documentation in packet). This item was continued to the meeting of January 5, 2004. 29. Accept an offer by Dick and Carolyn Randall to donate two commissioned sculptures by artist Georgia Gerber for the Cupertino Library/Civic Center Plaza. Lowenthal/Sandoval moved and seconded to accept the offer. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, Wang. Noes: None. Absent: None. Council members thanked the Randalls for their generous donation, and reminded the community that funds were still, needed for the Library capital campaign in order to provide furnishings, shelving, etc. 30. Conduct the first reading of Ordinance No. 1933: "An Ordinance of the City Council of the City of Cupertino Rezoning Approximately 4.3 Acres of Property from ML(Light Industrial) to P(Res) for Imperial Avenue." December 15, 2003 Cupertino City Council Page 16 This item was continued to the meeting of Jannary 5, 2004. December 15,200] Cupertino City Council Page 17 ORDINANCES 31. Conduct the second reading of Ordinance No. 1926: "An Ordinance of the City Council of the City of Cupertino Amending Chapter 17.32 of the City's Ordinance Code Regarding Temporary Signs." This item was continued to the meeting of January 5, 2004. 32. Conduct the second reading of Ordinance No. 1930: "An Ordinance of the City Council of the City of Cupertino Amending Cupertino Municipal Code Section 11.24.170, Parking Limitations on Certain Streets--Stevens Creek Boulevard between a point 150 feet east of Pasadena Avenue to Imperial Avenue." This item was continued to the meeting of January 5, 2004. 33. Conduct the second reading of Ordinance No. 1931: "An Ordinance of the City of Cupertino Amending Certain Time Limitations With Respect to the Redevelopment Plans for the Vallco Project Area." This item was continued to the meeting of January 5, 2004. STAFF REPORTS 34. Receive a status report on General Fund Revenue and Expenditures. (No documentation in packet). This item was continued to the meeting of January 5, 2004. ADJOURNMENT At 1:26 a.m. on December 16, 2003, p.m. the meeting was adjourned to a Council team-building session on Thursday, December 18, from 2:00-4:30 p.m., at the Blackberry Farm Retreat Center, 21975 San Femando Avenue. Kimberly Smith~ Clerk For more information: Staff reports, backup materials, and items distributed at the meeting are available for review at the City Clerk's Office, 777-3223, and also on the Intemet at www.cupertino.org. Click on Agendas & Minutes/City Council/Packets. Most Council meetings are shown live on Cable Channel 26, and are available at your convenience from our web site. Visit www.cupertino.org and click on Watch Meetings. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364.