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CC 10-27-82 . . . #" t "W .~. -r. ~,..""", ""'"'\''' ',,' ",-",.".,,- . . ...."..,..~;""J.~ .,." ',""' "1'J-~'. ,II CITY OF CUPERTINO, STATE OF CALIFORNIA 10300 Torre Avenue, Cupertino, CA 95014 Telephone: (408) 252-4505 MINUTES or IRE ADJOURNED Rl!GUl.AR MEETING 07 mE CITY COUNCIL RE1J) OM OCTOBER 27, 1982 IN THE COUNCIL CRAKBER, CITY HALL CUPERTINO, CALIFORNIA Mayor Gatto called the meeting to order at 7:07 p... in the Council Chamber, City Rall. SALUTE TO THE FLAG ROLL CALL r,unc. Present: Johnson, Plun81, Rogers, Sparks, Mayor Gatto Staff Present: City Manager Quinlan City Clerk Cornelius Director of Public Works Viskovich Director of Planning and Development Sisk City Attorney Kilian Assistant }'lanning Director Cowan PUBLIC HEARINCS 1. Application l-GPA-80 of City of Cupertino: General Plan Amendment to consider a compreh~nsive amendment to the City of Cupertino General Plan for the Stevens Creek Boulevard Planning Area. The General Plan Amendment will concentrate on land use, t~affic cir- culation, housing and econcmic issues which affect the entire community. The Stevens Creek Boulevard Specific Plan will concen- trate on the development of a more detailed land use, circulation and urban design plan for properties which abut the reach of Stevens Creek Boulevard between Stelling Road on the west and Ster Avenue on the east. Mayor Gatto of housing. conversion. particularly announced that the discussion would consist primarily This would include the BKR Program and cond0minium He reviewed the legal aspects of housing in general ~nd as it pe.tains t~ the BKR Program, Sheila Brutoco, consultant, Sheila Brutoco and Associates, Inc., 1408 Columbus Avenue, Burlingame, reviewed her report on housing which had been presented to Council. She stated that the Mello bill which was eaacted states that by July 1, 1983 Council must adopt an ordinanc regarding second units (ofter~ called "granny units"). If one is not adopted by that time and the City receives an application for such a second unit, the application must be approved. Condominium Conversion Mr. Sa~ Young, representing Valley Green and Village Green apartmect complexes, presented slides showing previous condominium conversions GG-590 Page 1 ~ l ~. . . "'~~~'..... .-"" "~"''''1'~",........" '.-.....,...-.,.-- '~,-'~,?-!i'..')',~~:v~'-'~:;' ' .. KlHUTES OF TIlE OCTOBER 27, 1982 CITY COUNCIL MEETING handled by his clienu. He presented Council with a handout shoving responses of tenants in Valley Green and Village Green ~lexe. when ..ked about cmtdoaini_ conversions. In Valley Creen Apart_nu, over 70% of the tenanu were in favor of such conversion, in ViU..ge Green, over 80% of the tenants were in favor of the conversion. Hr. Young ststed that the aajority of people want to be owners. City Attorney Kilian stated that 18 cities and counties in California do haV>! ordinance language similar to Cupertino'", regarding a vacancy rate requirement. Hr. Young stated that Foster City had changed its ordinance to allow for possible conversion upon tenant approval and since that time two applications have been approved in Foster City. Guidelines for such conversion were also adopted. Rich Rod stated that of the tenants of Village and Valley Green Apartments, 85-95X work in Cupertino, Santa Clara or surrounding areas. Beverly Lawrence, Kidpeninsula Citizens for Fair Housing, expressed concern regarding condo conversion and lack of rentals. A gentleman from Village Green Apartments spoke in favor of the con- verilion as it would provide hilll a possibility of owning a home. Ruby Bambi of Village Green Apartments, stated that the pricp. range currently being proposed was one she felt she could handle. She felt this conversion could provide affordable housing. Fred St. Claire, 20100 Rodrigues Avenue, expressed concern regarding condominium conversion. He stated that the fo~r instabilities associated with renters was changing, particuarly since it was too expensive to !DOve. He requested that should the wording be changed, he would still like to see some restriction based on vacancy, perhaps the 5% could be changed to a different percentile. Greg Karis, Valley Green Apartments, stated that rental units does not mean moderately priced units. He felt that moderate housing ~ould have to be subsidized or rent control would have to be established. He spoke 1n support of conversion. Mr. Tom H~nniman, Village Green Apartments, said that he had been in California for four months. He was from Wisconsin1 however, he is now working in Cupertino. rie cannot afford to ~~y a home at this time. There¡ore, there was no cho~ce but to rent. He suppor~ed con- dominium conversion and requested the Cou~cil change its ordinance so that proposals coulà be examined. Brook Piper, Village G~een Apartments, said that owning a home was the American dream. dowever, there is an issue of affo~dable housing in neighborhoods where one might .ish to live. He requested that Council approve the concept of condGmin~~m conversion as they would still have the power to t~rn do~~ any app:~cät~on. ,..""""'=:-~ t·,..... ..~,~,"'T_~~~\.'~~~,-,Pr,,",('~.. .""",:¡~"''"'''''',~,,~.o¡'''''IIif'''"'''':'p;'''' ,I'J~ . . . . . .. . KlNUTES or THE OCTOBER 27, 198,2 CITY COUNCIL MEETING Bonny Lewis, Village Green Apart_nta, also spoke in favor of changing the ordinance. Mrs. Menzel, Village Green Apart_nts, stated that she has been offered a lifett.8 lease and also spoke in support of an ordinance change. Harley Barbour, Valley Green Apart_nts, stated that with a change he could use his GI bill to purchase a housing unit, Sharon Woodard, Village Green Apart~nts, spoke in support of an ord- inance change and stated she looked forward to staying in that complex. Janet Wright, Valley Green Apart_nts, stated that she and her husband do move a lot and do not wish to buy. She stated that her reading has shown that usually only 20X of the renters buV at time of con- version. She requested that the Council leave the ordinance as it is. She felt that displacement was the biggest problem with conversions. Rich Sharrod stated that a change of ordinance would not mean auto- matic approval but would allow the Council to consider applications. Mr. Sam Young stated that at Valley Green Apartments there are 35 seniors who are eligible for lifetime leases. Not all seniors signed approving conversion. However, all of the senior citizens residing at Village Green Apartments have signed approval of con?ersion. It was moved by Counc. Rog~rs, seconded by Counc. Sparks and passed unanimously to close this portimt of the publ~c hearing. Discussion followed regarding possible changes of the City's policy, i.e lowering the vacancy factor. Counc. Plungy 'IIOved to retain the wording of the General Plan except change the vacancy factor from 5% to 3%. The motion died for lack of a second. It was moved by Counc. Johnson and seconded by Counc. Sparks to amend the General Plan to allow review of applications to be considered on a case by case basis. This motion was defeated with Councilmembers Plungy, Rogers and Gatto dissenting. It was moved by Counc. Sparks, seconded by Counc. Johnson and passed with Councilmembels Plungy and Gatto dissenting to approve reviewing condominium conversion applications by rental vacancy rate in the City or by a 2/3 tenant approval factor. These applications will be con- sidered along with guidelines as set by ordinance. RECESS: 9:35-9:55 p.m, CC-590 Pase 3 Portion of public hearing closed Motion died Motion defeated Condominium conversion . ---,-' '-- ,"'" -. . ~ . Portion of pub lic hear iog closed . ~",..., '-,,", ,'. MINUTES OF THE OCTOBER 27, 198.l CITY COUNCIL MEErING Below Market Rate Program Assistant Planning Director Cowan reviewed the IMR Prograa with Council and stated that the Planning Comaission has re~_ 4ded that the progra. be rescinded or drastically modified. John Vidovich, De Anza-Forge, submitted a list of BKi prices for his proposed develop~nt. He stated that the $110,000 viII be his average price on the 96 units. He told Council that he will lose mo"ey on BKR units. Therefore, $5,833 would be added to eacb of the other nine units. He said the BKR Program prevents hill fr_ building until profits are made, and the program also rai3es prices. Be felt it was an inefficient progr811 and that in this community the required income is such that the person really does not need l6V cost housing. He stated that the econollic conditions at the t1Jle the program was originally adopted were such that the program was feasible, but this is no longer true. Mr. Paul Hogan representing Mariani properties felt that the BMR Progr311 was a disincentive to building housing. He req.....t;ed a modification. He expressed the opinion that the problem was that; the burden of low cost housing is placed completely on the residential developers and that maybe it should be on all developers or that other developers should help out with subsidies, etc. Beverly Lawrence, Midpeninsula Citizens for Fair Rousing, stated that in Palo Alto there is a progr811 assessing ooa-residential develop~rs. Funds collected go into a housing fund to build rental and low cost housing. Discussion followed regarding this type of program which is also in place in other communities In California. Fred St. Claire, 20100 Rodrigues Avenue, requested that Council keep I the BKR Program. He stated that the community canøot afford to exclude I people because of low incomes. He stated that shelter is the number one need of peopl£. I It was moved by Counc. Sparks. seconded by Counc. Plungy and passed unanimously to close this porti~n of the public hearing. Icounc. Plungy suggested that the idea of small units with less amenities ¡ for BMR units be explored to help bring down prices. , ¡ Counc. Sparks suggested that the City look at the Palo Alto system. ; He expressed concern regarding the aspect of relatives giving gifts (money) I f0r BMR units. There wa: discussion regarding mortgage revenue bonds, waiver of fees for developers for BMR units and increased density bonuses. I - Mayor Gatto felt tha~ the City should stay out of the housinb ~u~iness 'as much as possible. He s~ated that the BMR Pro~raa has some benefits, : but he is st ill not convinced it is doing uhat i~ is meant to do. He : spoke in support of rescinding the program. I I ! ~---:-;'T-'"'~-'''-'~~-~''''ë~...._!?'I' "","'~ ,..> ,.r-y~'~..v-fi;r,'!W_:"~--'" '<:;-'_.~·."7"';-_·' ,. · · · KIRUTES or 1'HE OCTOBD 27, 1982 CITY COUllCIL MEETING Council suggested that; staff explore the concept of a fee to asai.t the creation of rental bouainB· It was ~ed by CouDc. Plun81' seconded by Counc. Johnson and passed with lfayor Gatto du_tinB to refer the BI9I. Program to the Planning eo-1ss1on for review. Council directed that a nuaber of successfu~ exiscing programs be ex.-ined and that the Planning Commission explore alt~rnatives. Ann Anger, Monta Vista, asked if housing in the unincorporated area within Cupertino's sphere of influence was addrened. She was informed that this is included in the General Plan .\mendment document. It was moved by Counc. Rogers, seconded by Counc. Plungy and passed unanimously to reopen the public hearing regarding the BMR Program_ Kr. Paul Hasan representing Mariani requested that he have an oppor- tunity at some future time to addr~ss the residential zoning on the Mariani property. At Il:05 p.m., the ..eting was adjourned to a General Plan hearing at 7:00 p.m., November 2, 1982. 4a~~ City C,lerk . CC-590 Page 5 IIHR P>:ogram r.ferred to Plannin:; Com. BKR public hearing re- opened