CC 11-01-04
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CUPEIQ1NO
APPROVED MINUTES
CUPERTINO CITY COUNCIL
Regular Adjourned Meeting
Monday, November 1, 2004
CALL TO ORDER
At 5:35 p.m., Vice-Mayor Kwok called the meeting to order in Conference Room A of City Hall,
10300 Torre Avenue.
ROLL CALL
City Council members present: Vice-Mayor Patrick Kwok, and Council members Richard
Lowenthal, Dolly Sandoval, and Kris Wang. Council members absent: Mayor Sandra James.
INTERVIEWS
1. Conduct interviews for two unscheduled vacanCIes on the Telecommunications
Commission.
Council members interviewed David Clark, Andrew Radle, Rakesh Kumar, Douglas
Herda, Eric Klein, Natan Ziv, Shishir MukheIjee, and David Chan. Andrew Radle and
Eric Klein were appointed to terms ending 2007.
RECESS
Council was in recess from 6:42 to 6:47 p.m.
PLEDGE OF ALLEGIANCE
At 6:47 p.m. Mayor James called the meeting to order in the new Council Chamber in the
Community Hall, 10350 Torre Avenue, 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.
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Cupertino City Council
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CEREMONIAL MATTERS - PRESENTATIONS
2. Overview of the new Community Hall features and uses.
Public Works Director Ralph Qualls described the features of the new community hall
and how it can be converted from a council chamber to a banquet facility or a community
meeting room.
The City Council members talked about the success of the grand opening festivities for
the library and community hall. They thanked all the donors and also thanked the
restaurants that provided free refreshments on Saturday, which was attended by over
4,000 people.
Mayor James reordered the agenda so that Oral Communications and Consent Items were moved
to the end ofthe agenda.
POSTPONEMENTS - None
WRITTEN COMMUNICATIONS - None
PUBLIC HEARINGS
8. Consider amendments to Chapter 19.28 of the Cupertino Municipal Code (Rl
Ordinance), Application No.(s) MCA-2003-02, EA-2002-19, City of Cupertino,
Citywide:
a) Grant a negative declaration
b) Conduct the first reading of Ordinance No. 1949: "An Ordinance of the City
Council of the City of Cupertino Amending Chapter 19.28, Single Family
Residential Zones (Rl) of the Cupertino Municipal Code."
Mayor James announced that Council would receive public comment on this item, and
then continue it to a later date for Council discussion and action.
Senior Planner Peter Gilli reviewed the staffreport and explained that the Rl regulations
control how tall a building can be and what the setbacks are in the residential zone. He
said in 1999, Council made amendments to the ordinance to reduce mass and bulk of new
construction in neighborhoods, limit the second-story area, limit single-story heights,
create a design review process, and set a maximum floor area ratio (FAR) of 45%. He
explained that the FAR is the amount of building area divided by the size of the lot in
square feet.
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Jennifer Griffin, Calvert Dr., urged Council to keep Rl intact. She said that changing the
Rl would allow a return to the type of monster homes that her Rancho Rinconada sought
to avoid by annexing to Cupertino. She also asked Council to retain story poles.
Dennis Whittaker said that the City is being contradictory when it seems to be
downsizing the homes of single-family dwellings, while allowing the remainder of
Cupertino to expand upwards and outwards. He said he was in favor of greater than 35%
for a second story to allow for a more comfortable home.
The following individuals spoke in support of the proposed amendment and increased
second story square footage.
Jack Hubby (retain story poles)
Orrin Mahoney
Mark Burns, Silicon Valley Association of Realtors
Yvonne Hampton, Oak View Lane (delete story pole requirement)
Roy Hampton, Oak View Lane (delete story pole requirement)
Susan Louie, Woodberry Drive (delete story pole requirement)
Yitom Yan (but opposed any limitation described as a percentage)
Don Mackenzie
Council concurred to continue this item to November 16,2004.
PLANNING APPLICATIONS - None
UNFINISHED BUSINESS
9. Council action regarding the three initiative petitions:
a) Presentation of the final reports on impacts ofthe three proposed initiatives
b) Receive the Certificate of Sufficiency (This item was continued from October 4),
and adopt the petitions as law or adopt a resolution setting an election date.
Jonathan Stern, vice president of Bay Area Economics, said that the ordinances would
result in fewer incentives for developers to build in Cupertino, and reduced
competitiveness for new office development (which in turn would affect the high value
businesses that Cupertino tries to attract), and reduce employment growth. Stern said that
Cupertino's share of the regional economy, which has been growing over the last decade,
would very likely not grow at the same rate or perhaps even start to shrink as a share of
the regional economy.
Simon Alejandrino, Bay Are Economics, said that the height limits in the proposed
measures would not allow for multi-family units over retail or office uses except in the
Val1co planning area. He said this could lead to higher-priced homes because the lower
density would mean less supply, as well as a limit on affordable housing developments
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Cupertino City Council
Page 4
because of the density restrictions. He said that the measures could potentially increase
property values because of higher home prices, but the total amount of property taxes
coming to the City would be reduced because of fewer units built.
Alejandrino said that the measures would lead to a net positive fiscal impact on the City
General Fund, but overall revenues would be lower because of the reduced number of
units and reduced square footage to be built, which would lead to reductions in sales taxes
and other revenue sources.
Alejandrino said that there would be a neutral fiscal impact on the schools. He explained
how the different school districts receive their funding, and said that it is possible that
high-density projects would have a more positive fiscal impact than low-density projects.
He said that Cupertino Union School District officials indicated they can accommodate
any projected new students as part of the General Plan and these proposed measures, but
it was important to note that specific schools might be impacted more than others, which
may force increased busing and higher costs. He said that the Fremont Union High
School District anticipates that it will be over capacity even without any new students
because of a large number of middle school students coming through the system.
Alejandrino said that under both the current conditions and the proposed measures, the
high school district would go over capacity, but the number of students generated is
roughly comparable.
Lee Rosenthal, Goldfarb and Lipman, explained that the housing element must identifY
adequate sites with proper zoning, services and utilities to satisfY the community's
housing goals and needs, which include the community share of regional housing. He
said that the initiatives would decrease in density to 15 dwelling units per acre, and make
it difficult, if not impossible, to meet the goals because there is not enough land or
density allowed. Rosenthal said that the initiatives may result in a housing element that
did not comply with state law, and consequences may include lawsuits challenging the
General Plan and the housing element, or the challenging of individual applications for a
permit. He said that a court could chose to shut down all development in the City
pending the City taking action to correct the General Plan. In addition to the court action,
the City could lose funding from various State programs. Rosenthal listed some of
remedies, which included the court invalidating the initiatives, or allowing the City to
amend the General Plan. He said the question is whether it would be possible for the City
to make changes to the General Plan and the housing element that would compensate for
the loss of potential units.
Rosenthal also discussed Government Code Section 65-863, which prohibits a city from
taking any action to reduce the density of sites that are relied on in a General Plan
housing element to meet the City's needs requirements. The only way the City can act to
reduce that density is if there's a concomitant increase or decrease in the availability of
other sites in order to make up for the loss of density. He said that this is a new statute,
and it is unknown how the courts will enforce it.
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Rosenthal said there would be no direct conflict between the redevelopment plan and the
initiatives, although in certain limited cases, the City may not be able to apply its General
Plan or ordinances to a redevelopment plan area ifthere's a direct conflict. Rosenthal also
said the initiatives would not conflict with that settlement agreement, but to the extent
that the initiatives limit heights, densities, and setbacks, and make development of
affordable housing more expensive, that would mean fewer funds to spend on the
redevelopment plan and housing.
Melanie Shaffer-Frietas, housing element consultant, said current housing element was
certified by the State in 2002 to be in conformance with state law. She said that if the
initiatives are passed, there would be an overall reduction in the City's housing capacity,
and Cupertino would not longer be able to show an ability to meet the regional housing
need allocation, particularly for very-low, low- and moderate-income housing. She said
that some of the adopted goals would also be affected, including: (1) Expand the supply
of residential units for all economic segments; (2) Develop housing that is affordable for
a diversity of Cupertino households; (3) Conserve and enhance residential
neighborhoods. She discussed alternative strategies, including identifying additional sites
in the Vallco Park Planning District and allow changed General Plan designations to
permit greater density residential use as well as encouraging the conversion of industrial
to residential uses in some other planning districts such as the North DeAnza Boulevard,
Bubb Road, and Monta Vista districts. She said that less effective strategies would be to
revise the below market rate program to include a greater percentage or have deeper
targeting.
The City Clerk reviewed the staff report, and said that the City Council must receive the
certification of sufficiency for the initiative petitions and then either adopt initiatives into
law or set an election date. She said that staff recommended a consolidated election in
November, to vote on both the Council seats and the initiatives, and the estimated cost of
that election would be $300,958.
Charles Ahern, Miller Avenue, said he was opposed to a hasty election because this slate
of conservative initiatives permanently restricts the future of Cupertino and voters need to
consider how their short-term choices may affect future generations. He added that a
special election would also have a very low voter turnout.
Dennis Whittaker read the first part of a letter to Council, which said that the petitions
had been signed by more than 15% of the registered voters and should be resolved by a
vote of the people as soon as possible. He said that if the vote were delayed the issue
would persist as malignant, contentious dispute. He also said that the special election
costs are justified, and that the City is claiming it has insufficient funds for a special
election, but is spending money on consultants and studies.
Rusty Britt continued reading the letter, and said that if the council decides to delay the
vote for more than a year, Concerned Citizens for Cupertino (CCC) is planning to file for
writ of mandate, and she explained their interpretation of the election code wording. She
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said that councilman Lowenthal had urged petition signers to retract their signatures but
only a negligible number, if any, ofthe signers recanted their signatures
Ned Britt continued reading the letter, and said that it would have required at least 500
retractions to reduce the signature count below 15%. He said that if the matter goes to
court, the CCC would point out that the City Council has taken active opposition to the
initiatives, and council members have repeatedly refused to compromise with CCC. He
asked for a special election to vote on the initiatives.
Jack Hubby said that CCC does not represent him and they did not ask for a special
election in the petition even after the staff advised them how to do so when preparing
their petition. He said he was in favor of a November 2005 election, thereby saving the
city over $300,000.
Jano Banks talked about his pride in being a Cupertino resident, and described how he
and his family had spent a day strolling through the City. He said he felt the General Plan
allows for a reasonable amount of growth, and he would rather have the taxpayers'
money spent on keeping the library open seven days a week instead of on a special
election.
E. J. Conens said he was a concerned citizen of Cupertino and that the Council should
stop stalling and hold a special election.
Robert Levy, Wilkinson Avenue, said he did not think anyone has yet asked for an
analysis of the difference between the administrative draft and the task force draft
regarding housing. He talked about the definition of affordable housing, and said the
Council should stop dragging their feet.
Mark Burns, representing the Cupertino Chamber of Commerce, said the Chamber
supported voting on the initiatives in November 2005. He said more study is needed, and
the reports given tonight show the vast negative potential on the city, the economy and
ultimately the community.
Tom Hugunin, La Roda Court said that he had participated in collecting the 4,000
signatures, which may represent 15% of the vote, and he urged that Council call a special
election.
Bob McKibben said he felt that the analysis Bay Area Economics was biased because it
was titled potential economic disadvantages and did not address potential advantages. He
noted that other parts of the report referred to data provided by city staff and developers,
and discussions with key informants. He said that 70%-90% of those contacted by CCC
signed the initiatives, so there are many more than 15% of the population in favor.
Orrin Mahoney, Miramonte Road, said Cupertino is a model community, and although it
is not always perfect, the answer is not to adopt overly restrictive laws that limit the
elected officials' ability to adapt to changing situations.
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Cupertino City Council
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Steve Andrews said he did not sign the petition~ although he was asked to do so several
times. He said he was told it would not cost the City any more money, and that it would
not require a special election. Andrews said he would applaud the City Council for
saving the taxpayers the cost of a special election.
James Black, spoke in favor of voting on the initiatives in November 2005, and felt more
time was needed to consider the information presented this evening.
Lowenthal/Sandoval moved and seconded to adopt the staff recommendation to receive
the certificates of sufficiency and call a consolidated election for November 8, 2005.
Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None.
LowenthaVWang moved and seconded to adopt Resolution No. 04-436, requesting a
consolidated election on November 8 to vote on three council seats and three initiatives,
and setting the argument deadline for August 11, 2005 and the rebuttal deadline for
August 18, 2005. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes:
None. Absent: None.
NEW BUSINESS
10. Adopt a resolution approving a semi-rural designation to eliminate the requirement for
street lights on Willowbrook Way pursuant to Ordinance No. 1925, Resolution No. 04-
433. (This item was continued from October 18).
Public Works Director Ralph Qualls reviewed the staff report.
SandovallKwok moved and seconded to adopt Resolution No. 04-433. Vote: Ayes:
James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None.
11. Adopt a resolution approving the Second Amendment to the Franchise Agreement
between the City of Cupertino and Los Altos Garbage Company, dated December 4,
1995, to provide weekly, single stream recycling and yard waste collection for Cupertino
residents, Resolution No. 04-434.
Public Works Director Ralph Qualls reviewed the staff report.
Patrick Kwok explained that he had previously voted no on this matter, and would do so
again because he felt new programs should not be added in times of budget crises.
Lowenthal/Sandoval moved and seconded to adopt Resolution No. 04-434. Vote: Ayes:
James, Lowenthal, Sandoval, and Wang. Noes: Kwok. Absent: None.
12. Adopt a resolution approving an application for grant funding to rehabilitate swim and
tennis facilities at the Cupertino Sports Center, Resolution No. 04-435.
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Administrative Services Director Carol Atwood reviewed the staff report.
Kwok/Lowenthal moved and seconded to adopt Resolution No. 04-435. Vote: Ayes:
James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None.
13. Mayoral succession and date of Council reorganization:
a) Discuss the mayoral succession
Sandoval explained that even though there are patterns that have been followed,
there is no official practice or policy. She said that rather than discriminating
against Council members who are elected in a year when there are three seats to
fill, a less discriminatory approach would be to have each Council member have
the opportunity to serve as Vice-Mayor and Mayor before another Council
member serves a second time.
Council discussed past protocol and alternative scenarios, and agreed that there
was insufficient time to develop a new policy before the next swearing-in
ceremony took place.
Orrin Mahoney, representing the Cupertino Chamber of Commerce, said that the
Chamber supports keeping the traditional process, which is more stable for the
community. He also spoke for himself and said that a formal process is needed,
but that it should be put off to the future so that it wouldn't affect the current
Council members.
Homer Tong said that if a person is elected to Council, even though they are a
third-vote-getter, they deserve to be Mayor at least once in the process. He said
that regardless of the approach the Council decides on, it would be good to have
an understanding that the Vice-Mayor would move on to be Mayor.
Mark Burns, representing the Cupertino Chamber of Commerce, urged the
Council to concentrate on the important issues at hand, not the modification of a
tried and true process that is the tradition and custom of mayoral succession in
Cupertino over the last 50 years. He noted that there have been only 3 exceptions
to the tradition, which involved the health of a Councilmember, and the terming-
out of Council members. He said none of those exceptions apply in this case.
b) Schedule date to elect new mayor and vice-mayor, and to hold a reception for the
outgoing mayor.
Council members concurred to schedule the Council reorganization for Monday,
December 6, at 6:00 p.m.
ORDINANCES - None
November 1, 2004
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STAFF REPORTS - None
The Consent Calendar was taken up next.
CONSENT CALENDAR
Lowenthal/Kwok moved and seconded to approve the items on the Consent Calendar as
recommended, with the exception of item 5, which was pulled for discussion. Vote: Ayes: James,
Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None.
3. Adopt resolutions accepting Accounts Payable for October 15 and 22, Resolution Nos.
04-428 and 04-429.
4. Adopt a resolution accepting Payroll for October 22, Resolution No. 04-430.
6. Adopt a resolution approving an Improvement Agreement for Stevens Creek Office
Center Associates, a limited partnership, 20807 Stevens Creek Boulevard (formerly The
Good Earth Restaurant), APN 326-32-051, Resolution No. 04-431.
7. Adopt a resolution approving a Maintenance Agreement for Stevens Creek Office Center
Associates, a limited partnership, 20807 Stevens Creek Boulevard (formerly The Good
Earth Restaurant), APN 326-32-051, Resolution No. 04-432.
ITEMS REMOVED FROM THE CONSENT CALENDAR (above)
5. Accept the Treasurer's Budget Report for September 2004.
Wang asked about the feasibility of breaking the contract on some investments in order to
invest in others with a higher return.
Administrative Services Director Carol Atwood said that it is the city's policy to invest at
the best rate available at the time based on the city's cash flow need and then diversify
the portfolio, which is compared to the average rate of return achieved by the city's
benchmark, LAIF. Currently the LAIF return is 1.771% and the city's rate of return is
2.46%. She said that churning the investment is usually not beneficial because the
calculations must include unrealized profit or loss.
Wang/Lowenthal moved and seconded to accept the Treasurer's Report. Vote: Ayes:
James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None.
Oral Communications was taken up next.
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Cupertino City Council
Page 10
ORAL COMMUNICATIONS
Public Works Director Ralph Qualls showed an diagram of the street and explained the
improvements. He said that when the project went through the Planning Commission and City
Council, there were a number of actions that the City took to protect this single-family
neighborhood, including saving the trees and restricting the Poppy Way frontage to the single-
family homes. He said that the only things that have changed are the actions that were taken to
protect the neighborhood.
The following individuals spoke in opposition of the Poppy Way curb alignment:
· Jane Kamvar, Poppy Way
· Allen Zhao, Poppy Way
· Irene Lin, Wildflower Way
· Siu Kung, Poppy Way
· Edmund Huie, Poppy Way
· Greg Maleski, Poppy Way
· Monir Zandbergs, Flower Court
· Jim Hunts, Poppy Way
· Lloyd Lin, Wildflower Way
Their comments included:
· Object to waiting a year before being allowed to petition for tree removal and 36-foot
wide street
· Most residents were surprised about the curb and signed a petition in opposition
· Asked the Council to put this issue on the next agenda
· The trees should fit in with the rest of the trees in the neighborhood, and these do not
· Safety, not trees, should be of more concern, and the narrow street is unsafe, especially at
night
· Prefer consistent street width over a sidewalk
· Residents had been told that a future developer would remove the fence obstruction and
put in curbs and sidewalks in line with the existing curbs and sidewalks
· The new curb not as visible as the original white fence
COUNCIL REPORTS
Council members highlighted the activities of their committees and various community events
including the following: Future funding of the library and potentially losing more hours if the
current tax is not renewed by the voters; the High School Foundation fundraising dinner at
Dynasty Restaurant; Visits from the two Sister Cities, and that both now have a student exchange
program; the new Rio Adobe restaurant; and requesting a proclamation for Hunger and Homeless
Awareness Week.
November 1, 2004
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Page 11
City Clerk Kimberly Smith announced that the community was invited to a meeting to discuss
the General Plan, which would be held on Monday, November 15 from 7:00-9:00 p.m. in the
Senior Center.
CLOSED SESSION - None
ADJOURNMENT
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Kimberly Smit U City 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 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.