CC 12-06-82
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':TTY or CUPEUIBO, STATE or CALIPORNIA
lIDOO Torre Avenue, Cupertino, GA 95014
Telephone: (408) 252-450S
KlRUTBS or TIlE UGULAR IŒETIBG or TIlE CIn COUlfCIL
HELD OR DECBMID 6, 1982 IW 'lID! COUNCIL CHAMBER. CITY HALL
(;uhàfIIIU, CALIPORNIA
The i:leeting vas called to order in the Council Cb8IIber by Mayor Gatto
at 6:55 p...
SALUTE TO 1'HE FLAG
ROLL CALL
Counc. Pnsent: Johnson, PlunaY, Rogers, Sparks, Mayor Gatto
Staff Pre..nt: Dire~tor of Public Works Viskovich
City Clerk Cornelius
Director of Planning and Development Sisk
Director of Parka and Recreation Dowling
City Attorney Kilian
STAFF RElORTS
1. Oral reports by staff l11811bers and sulmission of written reports.
City Manager's Report
By consensus, Council requested information regarding the cost of the
fall and spring garbage pickup co~ared to cost of unlimited service.
City Clerk's Report
By consensus, Council requested by the first meeting in January a
City Attorney opinion regarding placihg the traffic ioitittive on
the ballot and the validity of the initiative ~etitioa. Council also
requested the total cost to the City of the petition including staff
time.
COUNCIL REPORTS
Counc. Plungy - Sister City Program - The City Clerk was requested to
report to Council regarding the possibility of changing the date of a
Council meetiog in rebruary because of Councilmembers visiting the
Sister City in Italy.
CONSENT CALENDAR
Counc. Sparks removed Item 11 from the Consent Calendar.
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.5 lU.8unS OF THE DECEMBER 6, 1982 CITY COUNCIL KEITIJIG
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It vas _d by Counc. Rogers. seconded by Counc. Jobuoo and p..sed
UDaIlDously to approve the balance of the Consent Ca1eDclsr.
7. Resolution Ro. 5985: "A "solution of the City Council of the
City of Cupertino Allovinl Certain ClaiJDs and ---..I. Payable in the
.wounts aDd fr_ the lunds as Hereinafter Described for General aDd
Miscellaneous Expenditures for the Period End~g Ioveaber 12, 1982."
8. Resolution 80, 5988: "A 1esolution of the City Council of the City
of Cupertino Allowing Certain Claw and Demands Payable in the
.wount. and fr_ the lunda as Hereinafter Described for Salaries
and Wages for the Payroll Period Ending November 16, 1982."
9. Resolution No. 5990: "A Resolution of the City Council of the
City of Cupertino "..king its Order Describing the Boundaries Desil-
nated as 'Byrne Avenue 82-04' to be Annexed to the City and Ordering
Annexation to the City, Approx1mately 0.66 Acre Located East of
Byrne Avenue between Rer.osa Avenue and Lomita Avenue."
10. Resolution No. 5991: "A Resolution of the City Council of the
City of Cupertino Accepting a Grant of Easement for Emergency
Vehicle Acccss and Public Service Purposes from Otis F. Forge and
Muriel R. rorge; Located at the Northwest Corner of De Anza Boule-
vard and Rout:e 280."
11. Re.3ved.
12. Acceptance of City projects performed under contract:
(a) Imperial Avenue StOrla Drain, Phase 1, Project 81-25.
(b) Hillcrest/Vista Knoll StOrla Drain, Project 83-05.
(c) Stevens Creek Boulevard Widening at Carmen Road Phase 1 -
House R81DDde 1.
(d) Corporation Yard Canopy Installation Project 79-l6.
l3. Resolution No. 5992: "A Resolution of the City Couacil of the
City of Cupertino Approving the Final Hap and Improvement Plans
of Tract No. 7105, Woodspring; Located at Homestead Road and Fallen
Leaf Drive; Developer, Woodspring, Inc.; Accepting Certain Easements;
Authorizing Signing of Final Hap and Improvement Plans, Authorizing
the Execution of Agreement in Connection Therewith."
14. Resolution No. 5993: "A Resolut ion of the City Cou'lcil of the
City of Cupertino Declaring its Intention to Order Vacation of a
Portion of a Public Utility Esement Within the City of Cupertino
Pursuant to Section 50430 Et Seq. of the GovernmP.nt Code of the
State of California, Fixing Time and Place for Hearing and Providing
for Notice Thereof; Southeast of the Cupertino Road/Foothill
Boulevard Intersection "
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MI1IU'lIS or 1'HE DECIIIBII 6. 1982 CITY COIJltlCIL ftU"J:Lìt\)
IS. Approving Change Orders.
(a) Resolut101l 110. 5994: "A 1880lu1:1011 oC the City COuncil of
the City of Cupertino Approving contract Cban.. CJÌtõr Ifo,
1 for Monta Vista Park Street IIIfrov_nta Project 79-53,"
(b) Resolut101l 110. 5997: "A 188Olu1:1on of the City Còilnel1 of
the Cit; of Cupertino ApproviD& contract Change otõr Wo.
3 for Kirmoute Road and Stevens Canyon Stoo Dr.iD and
Water MaiD Project 83-06. II
16. Requests for vaiver of business license fees:
<a) Santa Clara County Girl Scout Council, Inc.
(b) Citizens Actions League.
l7. Minutes of the City Council ..eting of &ove.ber 15, 1982.
<CC-592)
Vote Ker~rs of the City Council
AYES:
MOBS:
ABSIIn' :
ABSTAIN:
Jot'nann, Plungy, IIDgers, Sparks, Gatto
Nona
None
None
ITEMS REK>VED FROM COIISENT CALENDAR
11. Application HC-5l,583.l - Grosvenor InterDational (Tandea C0m-
puter and Trilogy Systeao) - Approval of a Sign Exception to
allow two 4 sq. ft. directional aigna to face a public street
and a Sign Exception to allow a sign to face rreewsy 280. The
subject property is located on the south side of Pruneridge
Avenue, north of Freeway 280, approxt.ately 475 ft. west o! Tan-
tau Avenue. Rec~nded for approval.
It vas ~ved by Counc. Sparks, seconded by Counc. Johnson and passed
with Counc. Gatto dissenting to approve the signs, except for the
illwainated sign (building sign) that would be facing the freeway,
for Crosvenor International (Tandem Computer and Trilogy Systems),
Applic~tion HC-5l,583.l.
It was IIIDved by COline. Rogers aDd seconded by Counc. Gatto to
approve a non-illuminated building sign. The motion was defeated
with Councilmembers Johnson, Plungy and Sparks dissenting.
ORAL COKKUIIICATIONS
19. Members of the audience regarding matters not on the agenda.
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KIlfUTES or TBP: DECEKBD 6, 1982 CITY COUNCIL KEE'l1NG
ProclaaUon of Decaber 8, 1982 as SoropUaisc Day,
RellOluUondes1gnatÙiI Decaber 12 throup Decaber 18, 1982 as 1111
<If Ri~U \leek.
The City Clerk's office will forward t~ proc1...tion and r5eolVC1on
to the appropriate per_.
Steven Young, 21307 G1e Place 13, addreesed Council regardinl tbe
Sister City prograa. He stated an interest. particularly in the program
with Ivrea, Italy and stated that he had contacted Counc. Plungy
regarding this interest. Be stated that he has visited Copertino as
well as Ivrea. Be had not been nofitied of the Sister City dinner at
St. Joseph's as requeaCed. Be informed Couucl1 that a foundation for
Italian culture... being formed. This vou1d be a non-profit organiza-
tion which he hoped wald be quartered in Cupertino. He felt t~
organization would be able to help w1tõ the Sister City program.
Counc. Plungy stated he would P'lt Mr. Young in contact with others
working on the Ivrea prograa.
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Council requested discussion of a secretary for the Council during the
next budget bearings.
PUBLIC HEARINGS
20. Abate...nt of weeds declared to be a public nuisance.
(a) Resolution No. 5995: "A Resolution of tbe City Council
of the City of Cupertino Ordering tbe Abatement of Public
Nuisanc~ Pursuant to Provisions of Ordinance No. 724 and
Resolution No. 5986."
Hr. Tom Shih from the County was available to answer any questimls
from Council.
It was moved by Counc. Sparks, seconded by Counc. Plungy and passed
unanimously to close the public hearing.
It was moved by Counc. Sparks, seconded by Counc. Rogers and passed
unanimously to adopt Resolution No. 5995.
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21. Application l4-Z-82 of William Kelley: Rezoning approximately
l.2 gross acres froa City of Cupertino CG (General Commercidl)
zone to City of Cup~rtino P (Planned Development with commercial/
office intent) zone and Environmental Review: The Planning
Commidsion recommends the granting of a Negative Declaration.
The subject property is located on the west side of North De Anza
Boulevard approximately 250 ft. north of Stevens Crerk Boulevard.
Recommended for approval.
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KINUTES or TBE DECEMBER 6. 1982 CIT:! COUNCIL MEETING
n. .(a) Pirst reading of Ord1.rum<:e No, 1209: "An Ordinance of the
City of Cupertino Aamding Section 1 of Ordinance No. 2 by
"'_iIIl ApproxÜlllte1y 1,2 Gross Acres fr08 City of Cuper-
ciao CG Zoue to City of Cupertino P Zone, ~ated on the
Vest Side of IIorth De ADze Boulevard ApproxUlately 250 Ft,
IIorth of Stevens Creek Boulevard."
Mayor Gatto turned the _etinl over to Counc. Plunay. The Kayor
stated be viII abstain on this ite. and left the dais.
Director of Planøing and Develop.ent Sisk revived the application
with Council.
Robert Bernstein, J. W. toug and Associates, was availab:e to aDSVer
any questions fro. Council.
It was IlOVed by CoUDe. Sparks, seconded by CoUDC. Rogers and passed
with Counc. Gatto abstaining to close cbe public hearing.
It was .oved by CoUDe. Sparka, seconded by Counc. JOM80n and passed
with Counc. Gatto abstaining to grant a Negative Declaration for
Application l4-Z-82.
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It was ..."ed by Co\Ølc. Sparks, seconded by Counc. Rogers and passed
with CoUDe. Gatto abstaining to approve Application l4-Z-32 per
Planning Co..tss1on Resolution No. 2353.
It was ..",ed by Counc. Rogers, seconded by Counc. Sparks and passed
with Counc. Gatto abstaining to read Ordinance No. l209 by title
only and the City Clerk's reading to constitute the first reading
thereof.
Mayor Gatto returned to the d3is to chair the meeting.
22. Request for renewal of bingo pera1t filed by the lOOt Lodge No.
70, Cupertino.
It was moved by Counc. Plungy. seconde~ by Counc. Johnson and passed
unanimously to close the public hearing.
I t was moved by Counc.
~nanimously to approve
of Cupertino.
Rogers, seconded by Counc. Sparks and passed
renewal of bingo permit for IOOF Lodge No. 70
23.
Consideration ef vacation ~f a portion of pub:ic utility easemen'l
Mount Crest Place.
(a) Resolution No. 5996: "A Resolution of the tity Council of
the City of Cupertino Ordering V~cation of a Portion of
Public Service Easement Pursuant to Section 50430 ~t Seq_
of the Covernm~nt Code of the State of California, and a
Portion of Right-of-Way Pursuant to Section 8320 Et Seq, of
the Streets and Highways Code of the State of C~lifornia,
Lot 7, Trart 430S, MoWlt Crest Place,"
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KlNUTES OJ TBI DECIMIIER 6, 1982 CITY COUNCIL K"..ETllIG
It was 8OV8d by Couøc. Sparks, Hcon<!"d by Counc. Johnson and passed
unant.ously to clOH the public hearing.
It was 8OV8d by Couac. Jogers, nc:oncled by Counc. Johnson and paaaed
_t.ously to actopt "solution Ro. 5996 ordering vacation of a public
service ..- nt aDd four feet of the City's ript-of....y.
24. Consideration of an iocrease of the transient oJccupanc:y tax,
(a) Ordinanca Ro. 1210: "An Ordinance of the City of Cupertino
AMncIing Chapter 3.12, Transient Occupancy 'lu, of the
Cupertinc Municipal Code."
It waa moved by Counc. Plungy, seconded by Counc. Johnson Sold passed
uøan:Ulously to clost! the public hear....".
I t was IDC>ved by Counc. PllØlgy, seconded by Counc. Sparlta and passed
unant.ou91y to react Ordinance Ro. 1210 by title only and the City
Clerk's reading to constitute the first reading thereof.
PLAKIIIlIG APPLICATIONS
25. None
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AJ.CRITEC'lURAL MID SID APPROVAL COKMITTEE APPLI';ATIONS
26. None
UNPIlImBED BUSIllESS
27. Discussion and clar1fica.ion of fence locat~~n - Oakdell Ranch
(Woolworth Construction Co.).
As a representative of the Woolworth Construction Co. was not y..t
present, Council by consensus continued this aatter until latel in
the meeting.
28. Request for modification of the BKR requirement for ~upertino
Village.
Director of Planning and Development ~tsk reviewed the proposal for
modification to the BHR requirements with l.,>uncil.
Hr. John Vidovich, De Anza-Forge, was available to answer any ques-
tions. Council request~d that the proposed modification be forwarded
to the Planning Co..ission for their review and consideration.
.
It was moved by Counc. Johoson, seconded by Counc. SDarks and passed
unanimously to approve the proposed œo~ifications to the BKR require-
ment for Cupertino Villa~c as per staft --mo dacpd November 24, 1982
and attachments s~bmitted by Mr. Vidovich.
29. United Cable Television conÌo~nce with franchise requirements.
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KIIlUTES or TIlE DECI!:!BER 6, 1982 CITY COUNCIL MEETING
Counctl accepted the communication from United Cable TV for information
only.
NEW BUSINESS
30. Claia for damages filed by lfartin S. re1dun on behalf of Hid..
Dinovitz.
It vas .wed by Counc. Jolmaon, seconded by Coone. Plungy and paued
unant.ously to reject the claia filed on behalf of Miriam Dinovttz
and direct the City Clerk to so notify claimant.
3l. Discussion of illegal garage conversions at Northpoint.
Director of Planning and Development Sisk reviewed the history of
garage conversions at Nortbpoint.
It was ~ved by Counc. Sparks, seconded by Counc. Plungy and passed
unant.ously to direct the City Attorney to contact those ic Northpoint
development with illegal ,'~age conversions ordering abatement. The
letter shall state that should the conversions not be abated. legal
action may be necessary.
32. Report and discussion regarding Government Channel TV programming.
By consensus, Council authorized the live color telecasting of Council
and Planning Commission meetings starting January, 1983, and approved
the list of potential ~rograas as submitted by the Government Channel
Cable TV Commit~ee.
Hr. Taylor Barcroft, Cupertino, suggested that when Council meetings
are televised there be ðt least two or three phone lines available so
people can call from home during the me£ting. Discussion followed re-
garding the legality of this as public testimony. Council decided
thst the possibility of phone lines being available to the public dur-
ing meetings would be diacussed after the meetings are televised to
see if there is a demand for this service.
33. Claia for damages filed by John D. Winer on behalf of Philip
Clarance Slavsky.
lt was moved by Counc. Sparks, seconded by Counc. J~hnson and passed
unanimously to reject the cla1œ of Philip Clarance Slavsky and direct
the City Clerk tD notify the claimant of the rejection.
34. Req~est for news rack permit filed on behalf of r~A Today.
It was moved by Counc. Johnson, seconded èy Counc. Plungy and passed
with Counc. Sparks dissenting to approve the reques( for newsrdck
permit filed on behalf of USA Toda¿.
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KINUTES or 1'HE DECEMBER 6, 1982 CITY COUNCIL Y.EETING
UNFINISHED BUSIRESS (continued)
27. (continued)
Director of PlanaiDs and Development Sisk showed a transparency locatins
the area beiDa d1ac:ussed, as well as slides of the existing fence.
Hr. AI Woolworth, developer, stated that he thought the fence was built
at the appropriate place and did DOt arbitrarily put the fence there,
Re felt that in order to make a decision, Council ahould make a fieJd
trip examdnation.
Carla Hunt, 10191 Pbar Lap Drive, stated that two years ago as president
of the homeovlen association said she had met with Hr. .Ron Woolworth and
Travice Whitten, Assistant City EngiDeer, on the corner of Phar Lap
and Stevens Creek Boulevard regarding the location of the fence and
the retaining' all. She stated that the fence was to be at the bottos
of the slope aud astch the fence on the other side of the street, i.e.,
brick pillars., wooden fence. There were to be shrubs and trees to cover
the fence. She thought that the fence that was constructed was a
temporary fence.
Ann Robertson, foraer president of the homeowners association, also
addressed Council regarding the fence location. She stated that she
did net feel the fence was necessarily on the property line and felt
that City property could possibly be inside the fence. She said that
if it were impractical to move the fence at this point, perhaps a comproatse
could be reached and something could be arranged to make it visually
attractive. She felt that a two foot move would make a big difference.
Also another rossibility would be more brick columns or a staggered
fence.
Director of Publir Work Viskovich stated that the fence was on the
property line or within a couple of inches.
Bob Ko, 10029 Phar Lap Drive, expressed concern regarding the land-
scaping in his back yard. He has planted 21 trees which is to ensure
privacy. Be also stated that there was a steep slope and if the fence
were moved to the bottom of the slope he was concerned regarding liability
if someone were hurt. He said that when he purchased the property he
was not aware of this issue. The purchasers believ~d that the present
location of the fence is what it was supposed to be and that mo~ing the
fence would affect property values.
rt neighboring ~roperty owner stated that he had joined the homeowners
association. However, the disagrLement over the location of the fence
had ~ever been explaineD to him. He asked who the association rep-
resented. He felt that if the fence were moved down the slope the area
would become a catchall for trash. He had been assured that the property
starts at the fence. ¡:e woulrl not have purchased the property if he had
known the fence was not supposed to be in ~ts present location. In
regard to tne widening of Stevens Creek Boulevard, he had told the
real estate agent he was not interested in purchasing the property if
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KDIIJ'lIS or 1'HE DECEMBER 6, 1982 CITY COUNCIL KEE'lING
the road were to be widened. His wife checked vith the City and vas
tole! there were no plana to viden the street. However, the Assistant
City Inpøeer, Hr. Whitten, had called hill at a later time and said
the street _y be videned. At this time he contacted an attorney.
DiscU8sion followed regarding how mu~h reliance can be placed on plans
and what could be done regarding the existing fence.
It _ _d by Cotmc. Rogers and seconded by Counc. Plungy that the
bo..~uers association, the immediate property owners involved and
Hr. Woolworth work with staff to prepare a plan for additional pUaø-
ters and additional landscaping; the fence reaain at its present
location; the plans be submitted to Council at their next meeting.
Margaret Betchart, 10485 Phar Lap, stated that she was one of the
parties involved with previous meetings and that it had been agreed
that trees and high shrubs would be placed in front of the fence.
She felt that the error lies with the City and that someone froa the
City vas to oversee the project. She felt that changes should be made
in the City process.
Sue Loosse, president, homeowners associa~ion, stated that the home-
owners have come to Council to settle the problem because it seems
the individuals invol'¡ed cannot reach an agreement.
Hr. Woolworth stated that when the agreement had been made on where
to put the fence, Stevens Creek Boulevard was not to be widened, nor
was there a sidewalk at that time.
Director of Public Works Viskovich stated that conditions of approval
had been based on the Stevens Creek Boulevard Plan Line.
R. D. Koenitzer, Phar Lap Drive, said that no landscaping had yet
been done and that Hr. Woolworth was responsible for landsca:>ing. He
felt the money could be used for fenc~ adjustments and some land-
scsping elt.1nated.
Counc. Rogers withdrew her previous motion and Counc. Plungy withdrew
his second.
It was moved by Counc. Johnson and seconded by Counc. Plungy that the
fence shall remain in its present location, additional pilasters will
be spaced along the fence, additional landscaping will be placed
along the wooden portions of the fence. and the distance between the
present brick areas will be closed. The various factions may meet to
discuss types of plants that will be placed in front of the fence.
S'le Loosse asked by what right the fence is locatpd in its present
10~8tion. She was informed it is the property line. She suggested
that portion~ of the fence where there are still vacant lots be moved
for more planting space. She stated that a certain number of years
of landscape maintenance was being paid for by the contractor.
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KlHUTES or THE DECEMBER 6, 1982 CITY COUNCIL MEETING
Noreen Pavlic, 21929 Oakdell Place, stated that --.bars of the ~owners
as~ciatiOD had 8ft with the City and then ~thing different occurred
than vbat vas aarHd upon. She could DOt IDIderstand how the City could
think this vas a tellpOrary fence and felt that the City should be keeping
track of vbat builden an doina in the City, She vas inf_d that it
18 not necessary to 18_ a perait for :he building of a fence.
Director of Public Vorke Viakovith stated tt.at the location of the retaining
wall vas the City's responaibility, and that it was placed at ita present
location for a technical nason. Mr. Woolworth >ltated that at the planned
location there vas a ..jor stor. drain and other problems.
Upon a call for the question, the ~tion was adopted unanimously.
WRITTEN COKKUNICATIONS
35. None
ORDINANCES
36. Second reading of Ordinance No. 1202: "An Ordinance of the City
of Cupertino Amending in its Entirety Title 18, 'Sobdivisions,'
and Deleting Chapter 3.28 of the Cupertino Municip.o.1 Code."
It was moved by Counc. Plungy, seconded by Counc. Sparks and passed
unanimously to read Ordinance No. 1202 by title only and the City Clerk's
reading to constitute the second reading thereof.
It was moved by Counc. Plungy, seconded by Counc. Rogers and passed
unanimously to enact Ordinance No. 1202.
37. Second reading of Ordinance No. 1206: "An (¡rdinance of the City
of Cupertino Amending Section 1 of Ordinance No. 2 by Rezoning
Approximately 1.2 Acres from CG and Rl-lO Zone to P Zone, Located
Approximately 150 rt. South of Stevens Creek Boulevard and 280
Ft. East of Stelling Road."
It was moved by Counc. Plungy, seconded by Counc. Rogers and passed
unanimously to read Ordinance No. l206 by title only and the City Clerk's
reading to constitute the second reading thereof.
It was moved by Counc. Plungy, seconded by Counc. Rogers and passed
unanimously to enact Ordinance So. l206.
38. Second reading of Ordinance No. 1203: "An Ordinance of the City
of Cupertno Amending Section ll.24.150 and ll.24.l60 of the Cuper-
tino Municipal Code, Relating to Stopping, Standing or Parking
During Certain Hours and Providing for Signs Notifying the Public
Thereof."
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MINUTES OF THE DECEMBER 6, 1982 CITY COUNCIL MEETING
It was _ved by Counc. Plungy, HConded by Counc. Rogers aad paaHd
unanimously to read Ord'nance Ro. 1203 by title only aDd tbe City
Clerk's readin¡ to constitute the second reading thereof.-
It was moved by Coun.:, Plungy, seconded by Counc. Rogers aad paned
unanimously to enact Ordinance 10. 1203.
39. Second reading of Ordinance Ro. 12041 "An Ordinance of the City
of Cupertino AMnding Section 11,20.020 of the CupenJDo Municipal
Code Relating to Vehicular Stop Required at Mira ViaU at Pala
Avenue."
It was moved by Counc. Plungy, seconded by Counc. Rogen ... passed
unanimously to read Ordinance Ro. 1204 by title only and the City
Clerk's reading to constitute the second reading thereof.
It was moved by Counc. Plungy, seconded by Counc. Rogers ... passed
unanimously to enact Ordinance Mo. 1204.
RESOLUTIONS
40. None
NON-AGENDA ITEMS
4IIÞ 41. Recognition by Mayor of special requests.
(a) General Audience
Michael Orr, resident of North~int, stated that his garage baa been
partitioned since 1975. He had had a dispute with the homeowners
association regardin'l a window. IIovever, that had been resolved. He
stated that the ho..ownera association had harassed him to knock out
that partition. He Rtated that as far as he knew he had not been vio-
lating any City ordinance and that building inspectors had 1aspected hi
window and approved it. He stated that a car can still be parked in
the area where it is partitioned. He will arrange for another inspec-
tion.
Ann Anger, 10185 £spire Avenue, inquired regarding the property owned
by Heasure~ on Imperial Avenue. The City Clerk was requested to send
Mrs ;~ger a copy of the letter received on that matter. Mrs. Anger
-.ls<' bquired regarding the electrical shop on Imper ial and was told
it was coming before Architectural and Site Approval Committee.
Çouncil discuaced the completion of Highway 85 in view of the start of
a new State administration,
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It was announced that the General Plan Task Force will meet December
l5, at 7:00 p.m.
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KI1IUlES or THE DEC!H8ER 6, 1962 CITY COUNCIL MEETING
Charles Hewun, ChaIIber of Co_rc:e. presented Counc:il with the Cbaber' s
Resolution Ro, 81-1 pertaining to caplet ion of Righway 85. ø. stated
that the Ch8IIber 1fi11 be adopting a new resolution and requestad that
the City work with the Challber for expeditious c:ompleUoø of the
freeway. He r~ted that the City pass a new resolution statinl their
position oø the COtI(I1e&ion of Highway 85 to 101. The Mayor 1fi11 draft
a resolution aM it witl be plac:ed on the agenda for the Counc:11 .eUng
of Dec.-ber 20, 1982,
At 10:15 p..., the _ting was adjourned.
A2~ r::!! a'._
City clerk"Y
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To: Tha Honorabla Mayor ud Members of tha City Council
(4OtJ 252- 4505
,-
Nane)' Hendaa, CDIG Coordinator
DIIIII
ROvelber 24, 1982
SoI oct:
Modification to BHI laquirement for Cupertino Villa.a
Background
On July 7, 1982, the City Council approved the tentative up for the development
of 96 units on 7.3 acre. of land to be known .. Cupertino Village.
The approval of thœ tentative map included a conditio~ that 10 units vouli be
eold in a _nar conaia~ent with the City's Below Market Rete program. Said
10 units need not ba a part of the firet 24 unite conatructad in the project.
The attached lattar from John Vidovich proposes a œeana of providing the units
which vari88 e~ what froa the BHI pro.ram Guidelinea.
.
Diecussion
As the BKa progr.. etuds at this time, Cupertino Village ie required to
provide 10 unite at varying prices.. follows:
, unite Sales Price % of Median Income
3 47,000 - 56,375 80% ($17 ,550 - 25,050)
3 58,751 - 70,470 100% ($21,938 - 31,313)
4 70,503 - 84,565 120% ($26,326 - 37,576)
John Vidovich has propoeed that rather than provide a particular sales price
for each unit, he would be willing to provide the saae number of units under
slightly differant standards.
The unit prices would be a function of the total monthly housing cost, assuming
a 20% down payment with financing provided through the developers participation in
the mortgage revenue bond program, or other financing as provided by the developer.
John Vidovich has prepared a calculation of what onp cf the sales prices wuld be
if the interest rate were at 10.5%. This calculation is attached.
.
Under the Mortgage Revenue Bond program, the mortgages are ~estricted to first
time buyers (those who have not owned a home for the past three years), the sales
price is restricted to 110% of the area average purchase price over the past year,
and the b''Yers income cannot exceed 150% of the median, as set by the County.
The mortgages are not assumable exce?t by a buyer who meets the same qualifications
a8 the first buyer.
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In addition to the reatrictioaa of th. Hortlage Revenue Bond prolr.., the
unita would be aade .vailabl. for .&1. to buyer. who ...t t~. BHR inc~
liuts. Th.. proposal a180 md1f1ea the inc~ lillite to allow the hi."".r
inc~ of the rani. of eligible hoaaebold .1z.. to b. ~he It.it, rather
than the .vera.. of the bouaeholcl aú. ine_.
5y participatinl in the Hortlal. Reveaue Bond p~olr.., the 80Dthly houainl
coat should be lonr than the prevaUinl arut. In addition, Mr. Vidovich
WOUld further ''buy d_" the rat. by prepaying a portion of the inter.st for
the first three y.ara. The buyer waald "thua"be able to qu.1ify for a hiøher
price unit. Wha qualifyinl th. bUYllr, the I.Dder aa.UlNa that the buyu's
incOBS will incr.... .. the .urtaa.. interaat rate incr...es.
Becaua. of this increase in the IIOrtaag. intereet rate, the IIOnthly housing
cost after 3 years will be sub8tantia1ly higher than the fint year. If the
property is sold after three y.ar.., a new buyer would not be able to llleet exactly
the same qualificatioaa a. the fir.t buyer, even when increasing th.. income by the
rise in the HUD-ut -.dian inc~, aa r.quired by the City'e BKR program.
This means that by usinl the .yet.. suueated by Hr. Vidovich, the tlubeequent
buyers may need hi&her incOMe than thoa. provided uDder the current program.
The City could use the s.... deed r.atrictioaa as the current pro,ram in order
to l1øit the aaJs. pric. incr.... to the ria. in the C1DaUlNr Price Inðax.
·
With this one exception (that the subsequent bcyers may no~ be able to meee
the saae BUD incOM criteria), the ataff believes thr~ the proposed ~1ficat10n
meets the intent of th. current BHR pro.r~.
Rac_ndation
Staff recommends that the City Council approve the modifications to the BHR
requirement as set out in thia _ and the strachaents. The etaff would
t.plement this deci.ion by eneurinl that the appropriate agreemente are executed.
NR/jt
Attachments
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. ::·.IDcl08ecL is au alt_~ive to'the pre.au~ guidelines of the BMa :'. :·¡:<·.::·~:'t.t~t,
:. pTOgraL. I requeat th&~ this aI~e1:Dati_ be ucla available for . ...);.::r!t'X·...
/\." pTOjec~ (De Au&e-ror¡e). of 9.6 UD;ita~' This al~eru.at1ve pro-._ <...~t¡~:~~~,{',
. ·_,'v1deIJ l1mwiq for the __.people by buiD¡ ~e .alee price on .,.. <...:;~~7~:
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'..··reduce these mnthly ~ta· by puticipatiDg in. the· upcDlliq Mor~- .,:: .ád·'fÚ,
~::. gage Revenue Bond proar-~" the adVaDtage: ~o _ 'ia ~hat _ can. ": ;.;- -:; \.);....
\._. ~acb1eve a higher .al... prlc:e for our UD1u.::tban i. ~re8ently "'~._... ':';"_~¡,_:---.
':' <allowed UDder the aiaciD.lIH&pideli_. 'lbe. !!'ivaDtage to the ..:'<..;?::5~~~;¡;r,.
:< cie, 1a that the purc:base 'prica 1a predica~ed on a JaOnthly hous- . , ",,;, ; "'lif.iir:.
_. 1Dg COSl: for a CØ1:~ iDccme~ . U&iDa' thU,,_chod 'the city should,.; :':, ~ )" ,;~t:jé~i.
, be able: to qualify il:~..:!IIIa:þuyera. ..thia·haø: been. a severe pre-. :.. . .-"t<.-<'-
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..' ;:<:.".0' utisfiu the legeI. requireMnta mp08ed by the general plan. . '-:';, .~
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Sales Price
Calculation
Defiøit1ou:
1. S . Sale3 Prica
2. CPl. CbaDse iD cooa_r price iDdu
S,P. - nak1and .ince last published calculation of 1
3. I . Median incoge levels for Santa Clara County 88 published by
the San rranci&co Office of the U.S. Department of lou.inS
aDd Urban DevelopMDt.
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i.e. I for October 1, 1981
Bedrooa
80% unit
100% unit
120% unit
1
2
20,050
25,050
25,063
3l,U3
30,076
37,576
Note: 1 bedroo. u... iDcoae fisure for a 2 person hous.hold
size.
1 bedrooa uae. income figure for a 4 person hou..hold
size.
4. .38 . % of buyers income assu_d available to spend for housing,
allowinS buyer the ability to qualify for a loan.
5. (t+d). property taxes calculated @ 1% and actual homeowner dut&.
6. PVi - Preser· Value of ~thly incoge stream for 30 years @ i interest
rate, see chart.
7. .8 - Amount of purchase price financed.
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vbere i - 6 3/4 - l54.¡787
6 7/8 - 152.2235
7 - 150.3076
7 1/8 - 148.4299
7 1/4 - 146.5897
7 3/8 - 144.7859
7 1/2 - 143.0176
1 5/8 - 141.2841
7 3/4 - 139.5844
7 7/8 - 137.9178
8 - 136.2835
8 l/8 - 134 .6806
8 1/4 - 133.1085
8 3/8 - 131.5664
8 1/2 - 130.0536
8 S/8 - 128.5695
8 3/4 - 127.1132
8 7/8 - 125.6842
9 - 124.2819
9 1/8 - 122.9055
9 1/4 - 121.5546
9 3/8 3 120.2285
9 1/2 - 118.9267
9 5/8 - 117.6485
9 3/4 - 116.3935
9 7/~ - 115.1611
lO . 113.9508
lù 1/4- l1l.5945
10 1/2- 109.320d
11 - 105.0063
12 - 97.2183
13 - 90.3996
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Sal" Price
ronula
Note:
Develope'&' .., p'&'ovide finaDciDa with a 3% buydOllll in the finc
year ad a 2Z mcI 1% buydOllll iD the .econd aDd thi'&'d yur. '1'8-
spectively of the loaD.
...[ ~J8W') ~ - (<+ ~
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Example: Calculation of 5 (sale. price) fa'&' an 80% 1 bed'&'OO1I uniC where
i - 10.5% afC8'&' the allowed 3-2-1 buydown (i.e. lIO'l'Csage raCe
ia 13 .5% belon buydOllll). A.._ 1IlOIlthly prop8'I'CY taxes and
ho.._8'&' dues .t $185 (t + d). As._ DO chaDge iD CPl.
1<:38(1) 20,050) ,
109.3208 E 12 - (l8~
5 ..
.8
S . 109.3208 [634.92 - 185]
.8
s . 49,185.25
.8
5 . 6l ,481. 56
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De Aaua - Forge CoDdOlliDiuas
Pro()Olle4 BKR Breakdown
"loor n..
,
24
24
48
~
A - 2 be4roOll/2 bath, 1,250 squara faat
B-1 bedrooa/1 bath, 875 _'iura feet
C - 2 bedrooa/2 bath 1,175 aquare feet
Total Ouit.: 96
lIMIt rftqu1red: 10
BKR Ouit. lli!!.
1 80% unit A
2 80% unit B
3 80% unit C
· 4 100% unit A
5 100% UJ11.t B
Ii 100% unit C
7 120% unit A
8 120% unit B
9 120% UJ1it C
10 120r unit C
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A-7