CC 07-19-04
APPROVED MINUTES
CUPERTINO CITY COUNCIL
Regular Meeting
Monday, July 19, 2004
CUPEIQ1NO
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 110ne
Staff present: City Manager David Knapp, Administrative Services Director Carol Alwood. City
Attorney Charles Kilian, Public Works Director Ralph Qualls, Community Development
Director Steve Piasecki, Parks and Recreation Director Therese Smith, Public Information
Officer Rick Kitson, and City Clerk Kimberly Smith.
CLOSED SESSION
I.
Labor negotiations - Government Code Section 54957.6. The purpose of the closed
session is to consult with City management representatives David Knapp, Carol Atwood.
Carol Augustine, and Sandy Abe concerning labor negotiations with Cupertino City
Employee's Association and Unrepresented Management and Confidential Employees.
This closed session was not held.
At 6:50 p.m. Council recessed to a closed session to discuss the following items.
2.
Initiating litigation - Government Code Section 54956.9(c). Possible action against
Edward Britt, Norman Hackford, and Gerald Cooley related to initiative measures
(building height, density, and setbacks).
At 7:45 p.m. Council reconvened in open session. The City Attorney announced that Ihe CII)
Council had taken no action.
CEREMONIAL MATTERS - PRESENTATIONS
POSTPONEMENTS
The City Clerk said there was a request from the developer Deke Hunter to continue item Nos
11 and 12.
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Cupertino City Council
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Lowenthal/Sandoval moved and seconded to continue the items to August 16 as requested. Vote:
Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None.
WRITTEN COMMUNICATIONS - None
ORAL COMMUNICATIONS
Natalie Cardenas, Government Affairs Director for the Silicon Valley Association of Realtors,
talked about a letter from the City asking that realtors pay a business license tax of $100 as an
independent contractor. She said that out-of-town real estate agents couldn't be taxed separatel)
as independent contractors unless the City has a business tax that takes into accoul1t the amount
of business being done, and that the City's ordinance only allows the charge based on the square
footage of an established business. She said that for in-town real estate agents, they are
employees of their brokers rather than independent contractors and should not have to pay the
tax.
Administrative Services Director Carol Atwood responded that for IRS tax purposes, the agents
receive a 1099 form, not a W2, and must complete a Schedule C on their income tax refund as
independent contractors, so she believed that the tax was fair.
Mark Burns, Government Liaison for Cupertino for the Silicon Valley Association of Realtors.
said that the City is double-taxing the agents. He explained that realtors are required to work
under a broker and are statutory employees. He said that it is only the IRS code that gives agents
the independent contractor status. He said that the group would provide additional case law as
well as an opinion by the City Attorney from San Diego.
Dennis Whittaker, Cheryl Drive, requested that during the discussion of the General Plan or the
initiatives, the speakers be only required to give their name and City in which they preside. and
not their street address.
City Attorney Charles Kilian responded that giving one's address is not a prerequisite to bclng
allowed to speak, and that the speaker has the legal right to not give his or her address,
Melody Song spoke on behalf of her parents, Peter and Hannah Song, the owners of the Quizno's
Subs on Stevens Creek Boulevard. Song said they had received a letter from the City saying that
their Quizno's mascot (Q-Cup Man) was not compliant with the municipal sign codes, She
referred to a handout and explained that their business is at a disadvantage compared to other
businesses located within 2 blocks due to the lack of signs. She said that the Q-Cup Man is used
to raise the store's visibility, and that weekly gross sales went up from $9,500 to $12,000 in a
month when the mascot was used, and dropped back down to $9,500 when he was not used.
Community Development Director Steve Piasecki explained that the ordinance prohibits
animated signs, but that there were many alternatives in the ordinance for perpendicular signs,
etc. He said that staff would be work with the business regarding this issue.
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Cupertino City Council
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Lucia Wu said she was a new Cupertino resident, and said that Council member Kris Wang had
accused Moon Festival organizers oftelling lies, obtaining City money under false pretenses, and
not benefiting the City. She requested that the Council further investigate this issue. She askcd
Wang to attend an upcoming festival meeting to explain the reasons for her accusations Wu
clarified that the Moon Festival has never received any hard cash donation from the City, only
in-kind donations for using the park.
Jody Hansen, CEO of the Cupertino Chamber of Commerce, spoke regarding the business
license tax and said their Board had voted unanimously to oppose the new enforcement of the
business license taxes for licensed real estate agents. She said the main concern is that charging
each licensed agent $100 establishes double taxation for agents who are housed in real estate
offices that already pay tax on the agent's office space. She recommended Council revise the
current policy.
Ed Grant, treasurer of the Moon Festival, said that he and the Moon Festival organizers have
gone out of their way to provide all of the information that the City requested, and allowed Cil)
staff to physically examine the books. He said that no concerns were found.
CONSENT CALENDAR
LowenthallKwok moved and seconded to approve the items on the Consent Calendar as
recommended. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None, Absent:
None.
3.
Adopt resolutions accepting Accounts Payable for July 2 and 9. Resolution Nos, 114-:\54
and 04-355.
4.
Adopt resolutions accepting Payroll for July 2 and 16, Resolution Nos. 04-356 and 04-
357.
5.
Adopt resolutions approving Improvement Agreements:
a)
Lynn M. Ching, 10568 San Leandro Avenue, APN 357-05-029, Resolution No.
04-358
b)
Kindercare, 1515 South De Anza Boulevard, APN 366-10-127. Resolution No
04-359
c)
Royal Realty and Homecomers RRC, Inc., 22800 Mercedes Road, APN 342-33-
045. Resolution No. 04-360
6.
Accept city projects performed under contract for Pavement Restoration, Project 2003-04
(G. Bortolotto & Co., Inc.). (No documentation in packet),
7.
Accept municipal improvements (No documentation in packet):
Cupertino City Council
July 19, 2004
8.
9.
10.
Page 4
a)
Cupertino Hotel Associates, Inc. (Cypress Hotel), 10050 South De Anza
Boulevard, APN 369-01-037
b)
Jyh-Sheng Lin and Ying Yang, 10251 Prado Vista Drive, APN 342-14-048
Adopt a resolution authorizing submittal of an application for the Surface Transportation
Program Funding Program to fund Wolfe, Stelling, McClellan, and Stevens Canyon
Roads Pavement Rehabilitation Project, Resolution No. 04-361,
Adopt a resolution authorizing submittal of an application for Transportation cunei 1(11
Clean Air (TFCA) FY 2004-2005 funds for retrofit of refuse trucks, Resolution "0 ()4-
362.
Adopt a resolution authorizing the destruction of records from the Community
Development Department, Resolution No. 04-363.
ITEMS REMOVED FROM THE CONSENT CALENDAR (above) - None
PUBLIC HEARINGS
II.
Consider approving Application No.(s) ASA-2004-07; Ren Bates / Carducci Associates;
Town Center Lane; APN(s) 369-40-002, 369-40-016, and 369-40-017. This item was
continued from July 6).
a)
Architectural and site approval for an approved park space as part of the Civic
Park development
Lowenthal/Sandoval moved and seconded to continue the item to August] 6 as requested,
Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None, Absent: None
12.
Consider denying Application No.(s) M-2004-03, TM-2004-04, EA-2004-06; Deke
Hunter; 10430 S, De Anza Blvd., APN 369-40-002. (This item was continued from July
6).
a)
A modification to allow the conversion of an existing two-story office building
into office condominiums
b)
A tentative map application to create 20 office condominiums in an existing office
building on Lot 5 (Civic Park development)
Lowenthal/Sandoval moved and seconded to continue the item to August 16 as requested,
Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None.
PLANNING APPLICATIONS - None
Mayor James re-ordered the agenda to hear item No. 22 next.
July 19, 2004
Cupertino City Council
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NEW BUSINESS
22.
Request by Public Safety Commission to address City Council regarding Elm Court. (\¡o
documentation in packet).
Barry Chang, representing the Public Safety Commission, talked about a resolution the
Commission had passed urging the City Council to revisit the issue of funding a parallel
storm drain for the area of Bubb Court, Elm Court, and McClellan Road because of the
history of flooding in that area.
Public Works Director Ralph Qualls showed a PowerPoint list of the steps the City has
taken in the last couple of years to address this problem. These steps included: an
engineering study to evaluate the situation; an engineering design for an expanded drain;
construction of new inlet and outfall connections at a cost of $12,000; annual
maintenance and cleanout of the extended storm line; and considerable monitoring of Elm
Court drain during rainfall by city staff. He said that the Major Storm line project has
been identified and included as an unfunded item in the 2005-2009 Capital Improvement
Projects (CIP) budget. He said the cost is estimated to be $2.5 million. He explained that
bolting down the manhole cover to keep it from popping off simply relocates the problem
to another location, and if they are all bolted it can crack the pipe and cause street failure.
He said that staff is looking for grated manhole covers that would allow water to flow
through.
UNFINISHED BUSINESS
I3.
Authorize the release of the draft General Plan.
City Planner Cynthia Wordell reviewed the staff report and gave a PowerPoint
presentation, She said the tentative schedule would be to release the General Plan in
August along with the Environmental Report, and to hold the Planning Commission
hearings in September. She said there might be some additional neighborhood public
meetings, but the City Council hearings could probably be done some time in the fall.
She asked the Council if they would like the minority report and/or Initiative alternatives
handled as separate documents or integrated into the draft plan.
Lowenthal said that it might be necessary to include a cover letter explaining that the
document is for discussion purposes, and it does not imply Council endorsement.
James said she did not like the title of the document because it is really the Task Force's
proposal for the General Plan. She said she would like to see a single document that
would contrast and compare the Task Force Plan, the existing General Plan. thc Minority
Report, and the Initiatives alternatives. She also said that the hot topic issues should hc'
identified.
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Cupertino City CouncIl
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Mike Bullock, Hermosa Avenue, said that the draft General Plan talks about providing
incentives and rewards for bicycling and walking but doesn't have specific solutions. He
suggested that the City amend its off-street parking ordinance to reward companies that
have car-parking cash-out programs for their employees, where company pays employees
for each time that they do not drive to work. This would reduce the amount of parking
spaces required.
Jody Hansen, CEO of the Cupertino Chamber of Commerce, gave a synopsis of their
letter of Feb 19, 2004. She said the Chamber tended to support concepts of the M i l1ori 1\
Report, and when their position deviated from Minority Report, the Chambcr fclt the
existing General Plan is a better model to support needs of the business community, She
said it was more consistent with economic development goals because it had more
flexibility in building height and density, which are better evaluated on a site-specific
basis. She said they were not in favor of spot or pocket zoning in commercial districts,
and were in favor of great flexibility for Vallco. The Chamber also supported the General
Plan Task force recommendations regarding housing requirements for corporate
campuses.
Shawna Holmes, representing HP and also speaking as a member of the General Plal1
Task Force, said it had been a frustrating process because they didn't have a current
General Plan as a base document to compare with what was being suggested. She said
that HP was concerned about the housing requirements on campus, which would prevent
them growing in this community.
Mark Burnes, immediate past president of the Cupertino Chamber of Commerce and a
member of the General Plan Task Force, said the process had flaws from its inception.
He said the final outcome doesn't please anyone, and suggested a smaller bluc ribbol1
committee to review the process.
Mike Foulkes, representing Apple Computer, said that through no one's fault the process
had left larger issues without real resolution. He also said that everyone did not get to
express their views, and it was important that all the voices in the community are heard.
He said that because of security precautions, Apple doesn't even let delivery trucks park
near their buildings, and he explained that it was important to de-couple the housing
requirement from the buildings on campuses in order to allow the companies to grow in
this community.
Council members discussed different ways of preparing the document so as to compare
and contrast all the various viewpoints.
Lowenthal/Kwok moved and seconded to continue this item to September 6. Community
Development Director Steve Piasecki said he would bring back a discussion matrix and a
general plan document that integrates the various background documents. Vote: Ayes:
James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None.
July 19,2004
Cupertino City Council
Page 7
NEW BUSINESS
14.
Adopt a resolution approving assessment of fees for the annual weed and hrush
abatement program (private parcels), Resolution No. 04-364.
Debbie Craver, the Program Coordinator of the Hazardous Vegetation Management
Division of the Fire Marshal, said that one individual had called her to say he objected to
the cost of the weed abatement on his property, but he was not present in the audience,
There were no other individuals who wished to speak or protest the assessment of fees.
Kwok/Lowenthal moved and seconded to adopt Resolution No. 04-364 approving the
assessment of fees for the annual weed and brush abatement program on private parcels,
Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None
15.
Consider proposal by the Concerned Citizens of Cupertino (CCC) on the Initiatives
related to height, setback, and density per letter dated July 11, 2004.
City Attorney Charles Kilian said that written communication from the CCC had
suggested that the City put this item on the November ballot instead of the proponents
He said that recent Supreme Court decisions require that any Council measures related to
land use must go through the California Environmental Quality Act (CEQA) process fìrsl.
which requires a review period, a hearing process, etc., and would take about 60 days I()
complete, He said there is not enough time to complete that process before the CIcCII()11
deadline of August 6.
Gertrude Welch said she represented the Housing Working Group of the Council of
Churches of Santa Clara County and the Interfaith Council. She said they were opposed
to the Initiatives because of the devastating affect on affordable housing.
Ned Britt, Peppertree Lane, said the General Plan can be amended, and frequently has
been, and the CCC wants to create some sort of permanence in the guidelines for sensible
growth in the city. As a result, they proposed three General Plan amendments for the
ballot so the requirements can only be changed by a further election process rather than
by a simple majority of the Council. He said their offer to work with the City Council had
not been answered.
Peg Goodrich, Cupertino resident, said their offer to work with the Council still stands.
She said that signatures of over 15% of the city's registered voters should send a clear
message that the citizens want to play an active role in city government and preserve a
quality oflife of which all can be proud,
David Greenstein, speaking as a resident of Cupertino, said he was opposed to the
Initiatives, although he felt they were created with the best of intentions. He said that
Monta Vista is very walkable because buildings are close to the street, with some height
and density. Greenstein said he could park once and run many of his errands there, unlike
July 19,2004
Cupertino City Council
Page 8
other stores that are separated by large parking lots and sidewalks far from the store. He
said that if the initiatives were passed, they would prevent the creation of new pedestrian-
ftiendly areas such as Monta Vista is now.
EJ. Conens, Pineville Avenue, said the intent of the Initiatives was not to tear anything
down. He said the purpose was to keep Cupertino the way it should be and to represent
the voter's viewpoints.
Norm Hackford, Tonita Way, said that the proponents have collected ovcr 4.IJIJIJ
signatures per petition, and it is important that the Council take that into consideration,
He said they should continue to look for a solution that will make everyone happy.
because the Initiatives have good points, and the people of the city need to be heard.
Shiloh Ballard, representing the Silicon Valley Manufacturing Group (SVMG), said she
believed that the Initiatives were well intentioned, but it is important that the Council
address both community and regional concerns. She said that SVMG feels strongly that
all of the local communities are inter-related, and they caution against al1Y steps Ihal
would restrict the economy of the City and the region, which III turn affect ¡he statc al1d
national economy.
Mike Bullock, Hermosa Avenue, said he respected the work done by the proponents but
he was opposed to all three of the Initiatives. He said he was proud of the changes made
to the crossroads area, and felt the General Plan process is appropriately flexible. He said
the Council should consider clustering attractive developments around transit stops and
encourage bicycle and pedestrian transportation.
Mike Foulkes, speaking as the president-elect of the Cupertino Chamber of Commerce,
said the initiative process is an important democratic tool, but it can havc un foreseen
consequences. He said that as a member of the General Plan Task Force, he crcated a
slide show of "attractive" versus "unattractive" buildings in Cupertino, and almost all
examples of unattractive developments were single-story strip malls, and the attractive
ones were two-story developments that would no longer be allowed if the Initiatives
become law. He said the Initiatives could also impact that tax base, and it was important
not to drive businesses from the community because they pay for many of the services
given to the residents. He said that the CCC's concerns are legitimate but dialogue is a
better way to resolve the issues.
Dennis Whittaker, Cheryl Drive, clarified that if the Initiatives passed, no bui Idings I1ccd
to be taken down and existing buildings are grandfathered in. He said that if a building is
damaged it can be rebuilt in the same envelope, and there would only be height and
setback restrictions if an addition were to be made. He said the Initiatives would have no
affect on homes, but are to stop the big developers that are over-running the community,
and to stop all the exceptions that are being made. He said the CCC did not want the
community, schools, and vistas to change and they felt forced into the Initiative process
because ofthe continual exceptions made to the General Plan.
July 19,2004
Cupertino City Council
Page 9
The City Attorney noted that said current ordinances allow a structure to be rehu i It I r i I IS
destroyed, and it can be rebuilt in the same fashion even if it is a 11011-cOI1I(mlllI1~
structure, as long as the non-conformity is not increased.
Rod Brown, La Paloma Drive, said some of the support for the Initiatives may be
reflective of how they are presented on the CCC's website that has photos of the 100-foot
buildings on Stevens Creek Boulevard. He said if citizens were shown photos of
Gumba's, the new library, or Panda Express, they may hesitate to support the Initiatives if
such new buildings would no longer be allowed to be built. He agreed that the
proponents were well-intentioned, but cautioned that if people can't live in town they will
move farther out and then there will be even more traffic.
Rusty Britt, 20850 Pepper Tree Lane, referred to correspondence from the CCC, included
in the packet dated July II, asking for a compromise by August 6. She said they are
willing to extend that offer until mid-September. She referred to the document on the
California Association of Realtors Web site, titled "Strategies for Fighting Slow Growth
at the Local LeveL" She said the bottom line of that web site was that they were opposed
to growth control and they didn't want what was best for citizens but what was most
lucrative. She said there has been an overwhelming response by the citizens in support of
restrictions on height, density, and setbacks.
Mark Burns, representing the Silicon Valley Association of Realtors, suggested that more
notice be given on future projects, that plainer language be used on the agendas, and more
information should be included in the Cupertino Scene and the City Channel. In response
to Mrs. Britt's comments, he said that the function ofrealtors is to create opportunities to
market and sell property to the public, and regardless of whether the market is up or
down, they work to handle the property resale two and three times. He said that studio,
one- and two-bedroom apartments and homes are needed for teachers, etc.
Jeff Dennison, representing the Tri-County Apartment Association in Cupertino, talked
about the difficulty teachers have trying to find housing since their salaries range from
$29,000 to $42,000, and the median home price in Cupertino is well over $500,000.
Natalie Cardenas, representing the Silicon Valley Association of Realtors, said that the
median home price in Cupertino is $700,000-$800,000. She said that the realtors are
concerned about the Initiatives, particularly the one restricting density, because of the
negative impact on the business community, the housing market, and the amount of
housing stock.
Ed Graziani, a realtor residing on Manzanita Court, said that the realtors suPPOt1
community in many ways including donations to the educational systems. He talked
about the apathy of citizens to get involved and said it is a difficult challenge to ~ecp 1ilL'
community informed, but that the Council should focus their el1ergics to illlllrO\l'
communication with the public.
July 19, 2004
Cupertino CIty Council
Page III
The Council members discussed the ongoing General Plan process, the potential for
increasing the amount of notice to residents, their priorities about providing affordable
housing, and their interest in continuing to work with the CCC and encouraging them to
work within the General Plan process. No action was taken.
RECESS
Council recessed from 7:25 to 7:40 p.m.
NEW BUSINESS (continued)
16.
Approve fiscal year 2004-05 terms and conditions of employment for the City
Employee's Association and Unrepresented Management and Confidential Employees
(Backup to be distributed before the meeting):
a)
Amend the Memorandum of Understanding between the City and the Cupcrtil1o
City Employee's Association, Resolution No. 04-365
b)
Amend the compensation program for unrepresented (management and
confidential) employees, Resolution No. 04-366
c)
Fix the employer's contribution for medical and hospitalization insurance
consistent with the Meyers-Geddes State Employees Medical and Hospital Care
Act, for the City Employee's Association and Unrepresented Management and
Confidential Employees Resolution No. 04-367
d)
Amend the Administrative Rules and Regulations of the Personnel Code.
Resolution No. 04-368
Sandoval/Lowenthal moved and seconded to adopt Resolution No. 04-365. Votc: Ayes:
James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None.
SandovallKowk moved and seconded to adopt Resolution Nos. 04-366,04-367, and 04-
368. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent
None.
17.
Authorize the City Manager to execute the Stevens Creek ColTidor Restoratlol1
Partnership and Collaborative Action Plan Agreement.
Parks and Recreation Director Therese Smith said that this agreement would create a
partnership between the Santa Clara Valley Water District and the City. She reviewed
the staff report, including the project goals and the financial terms, and said that Exhibit
A shows the preferred concept, which is where the city had left off with its visioning
project, and now the park planning can be done in concept with the restoration planning.
July 19, 2004
Cupertino City Council
Page 11
Beau Goldy, Deputy Operating Officer of the Santa Clara Valley Water District. said this
is a great opportunity for both public agencies to utilize their expertise in a partnership
He said that most funding will be provided through existing operations, and they also
hope that the agency partnership will open up opportunities for state and federal grants,
He said the matter would go before the board on August 17.
Lowenthal/Wang moved and seconded to authorize the City Manager to execute the
agreement with the Santa Clara Valley Water District for Stevens Creek Corridor
Restoration. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None,
Absent: None.
18.
Adopt a resolution approving a semi-rural designation to eliminate the requirement IÒI'
sidewalks on Florence Drive pursuant to Ordinance No. 1925, Resolution No. 04-369,
Lowenthal/Wang moved and seconded to adopt Resolution No. 04-369 adopting a semi-
rural designation to eliminate the requirement for sidewalks, curbs and gutters, and
streetlights for Florence Drive. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and
Wang. Noes: None. Absent: None.
19.
Consider a request from the Santa Clara County Library Department for the purchase u I'
additional Furniture Fixtures and Equipment (FF&E) for the new Cupenil1o Librar\ III
the amount of $30,000.00.
Deputy Librarian Sarah Flowers said that when they reviewed the base bid for thc FF&E,
they did not realize that the book return trunks and bins were not included. She explained
that these are essential items for the function of the library, and the depressible bins must
be made to order to fit the book return slot.
Kwok/Lowenthal moved and seconded to authorize an additional advance from the
Resource Recovery Fund (Acct. No. 520-8003) in the amount of $30,000 for the purchase
of additional FF&E for a total advance from the Resource Recovery Funds 01'
$570,363.00, Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None,
Absent: None.
20.
Review and reject the bids submitted for the Safe Routes to School - Cupertino High
School, Project No. 2004-9544.
Public Works Director Ralph Qualls explained that the low bidder had minor
Occupational Health and Safety Administration (OSHA) infractions resulting in fines
within the last four years, and was therefore disqualified pursuant to the City's general
qualification policy. Selecting the next lowest bidder would leave insufficient I'linds I()I
the second phase ofthe project.
Kevin Albanese, representing the low bidder, said his company believes in responsible
contracting and explained that the OSHA fine was lenient because the problems were
abated immediately when the inspector was present. He disagreed with the
July 19, 2004
Cupertino City Council
Page 12
disqualification on such broad and minor safety violations that took place three years ago.
He said that the company has been in business for 50 years and meets all of the
qualifications in the Cupertino Municipal Code in regards to determining responsibility,
and that the City Council has the right to waive any minor irregularities in a bid. He said
that the company has taken proactive steps since then including employing a full-timc
safety director, promoting 5 individuals as Field Safety Coordinators, and having
numerous safety trainings. He asked Council to reconsider the rejection of the bid. and
consider the way the Statement of Qualifications is worded pertaining to the financial
requirements for the future.
City Attorney Charles Kilian explained that the infraction couldn't be waived because of
the Council's policy of not accepting bids from bidders with these types of violations, He
said the policy could be changed for the future, but it wouldn't help in this case.
Joseph Albanese, representing the low bidder, explained that the reasons for the 10\1
number of bids for this particular project were that not many companics arc hondabk,
and those that are bondable are not interested in a low-dollar job, He asked the Collncilto
reconsider its policy regarding the wording in the Statement of Qualifications so that the
company isn't blocked from bidding on City jobs in the next 2 years.
Qualls suggested that staff review the policy and bring it back to the City Council with
recommendations.
Sandoval said that it was good to review the policy, but that it was originally designed to
protect the City against contractors that are not qualified in certain areas. She suggested
looking at the policy in terms of the degree of the violation.
SandovallLowenthal moved and seconded to reject both bids and authorize the Director
of Public Works to re-advertise for bids for Safe Routes to School - Cupertino High
School, Project No. 2004-9544. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and
Wang. Noes: None. Absent: None.
21.
Consider changing Council's regular meeting date. (No documentation in packet).
City Manager David Knapp explained that moving the meetings to Tuesday would reduce
the number of meeting date changes as a result of Monday legal holidays and the fìve
Monday work furlough days that will be implemented in the coming fiscal year. It would
also provide an additional workday for the Council members to contact the staff if they
needed additional information.
Kwok/Sandoval moved and seconded to keep the agenda packet delivery day on
Wednesday, and to change the regular Council meeting to the first and third Tuesday of
each month, to become effective when the Council meetings move to their new location
in the Community Hall building. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and
Wang. Noes: None, Absent: None.
July 19,2004
Cupertino City Council
Page 13
ORDINANCES - None
STAFF REPORTS
23.
Receive status report on General Fund Revenue and Expenditures. (No documentation in
packet).
Administrative Services Director Carol Atwood referred to a handout on the General
Fund Revenue and Expenditure trends through June 30. She said it shows where the City
is on a cash-to-cash basis between last year and this year, showing a 36% increase. hlll
she cautioned that they are preliminary numbers only. She said that more cash was
received this year than prior years by about $780,000; sales tax is up by $300,000; TOT
tax, utility user tax, and franchise fees are moderately up; property transfer tax is
$175,000 up; housing mitigation fees are up by $180,000; building permits are up;
interest rates are down by $500,000; fines and forfeitures are up; intergovernmental is
down due to the state raid; zoning and planning, engineering, and other service charges
are up slightly.
On the expenditure side, Atwood said there is a departmental savings of about $1.3
million. She said this is primarily due to the library funding cut of $130,000 per year; the
police expenditure is $50,000 less; the Red Light Program is $70,000 less dllc to 1IS
discontinuance; the General Fund public service grants were reduced by $80.000; the
below market rental program is reduced $480,000; and a hiring freeze bringing $500,000
in savings.
The City Council accepted the report, and no action was taken.
23A.
Parks and Recreation Director Therese Smith reported on the status of Reach A of the
Stevens Creek Trail. She said that the County built a minimal equestrian trail from
Whispering Creek Stables to Rancho San Antonio; the City partnered on a grant with the
Water District to do some mitigation along Permanente Creek that was required: the
County applied for a Recreational Trails Act grant, which if received would fund the hard
surface trail from Hammond Sneider House into Rancho San Antonio around the back of
the cemetery; the County hopes to start construction on the hiking part of the trail, and the
Oak Valley area is on their schedule for March of next year. She said that someone has
been posting, "Private Property/No Trespassing" signs and County staff has been
removing those.
COUNCIL REPORTS
Council members highlighted the activities of their committees and various commul1ity c\ents
Lowenthal reported that the Santa Clara County Cities Association has formed a policy advisory
board on economic development and local legislation. Council concurred to appoint Mayor
James to represent the City Council. He also reported that Housing Commissioner Nihalani had
July 19, 2004
Cupertino City Council
Page 14
presented an offer to hold an art show at the new library opening and to give 10% of the proceeds
to the library.
Kwok said that Mayor James, Wang, and he attended the Taiwanese and Japanese athletic
tournament in Cupertino.
James invited everyone to the grand opening dedication of the Cali Mill Plaza on Saturday, July
24th from 10-2 at the corner of De Anza and Stevens Creek.
ADJOURNMENT
At II :50 p.m. the meeting was adjourned.
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 Internet 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.