CC 10-03-94
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CC-888
MINUTES
Cupertino City Council
Regular Meeting
October 3,1994
At 6:45 p.m., Mayor Koppel called the meeting to order in the Council Chambers, 10300
Torre Avenue. Cupertino, and led the Pledge of Allegiance.
ROLL CALL
Council meínbers present: 101m Bautista, Don Burnett, Wally Dean, Lauralee Sorensen
and Mayor Barbara Koppel. Council members absent; None.
Staff present: City Manager Don Brown; City Clerk Kim Smith; Administrative Services
Director Carol Atwood; Community Development Director Bob Cowan; City Attorney
Charles Kilian; Public Information Officer Donna KIey; and Public Works Dim:tor Tkl
Viskovich.
CEREMONIAL MA TIERS - PRESENT A nONS
Mayor Koppel presented a proclamation to Karen Kurreck of Cupertino, a World Cycling
Champion.
Mayor Koppel presented a proclamation to Patricia Clark, coach of the De Anza Magic
girls soccer team, and prGSCllted the team members with certificates of "I'I".....;atïon.
Mayor Koppel recogJ'Ï7ed visiting students fiom Toyokawa, Japan. and the Mayor and
visiton exchanged gifts. Mr. Yukio Atumi , through an interpreter, tlumlr.-.I the Courci1
for the warm welcome and the wonderful opportunities provided to the students, and he
read a letter in English ftom the Mayor of Toyokawa. One of the students described
their studies about the American way of life and what they hoped to learn through this
visit.
POSTPONEMENTS
It was moved by Counc. Sorensen, seconded by Counc. Burnett, and carried unani!DOusly
to continue these item Nos. IS, 16, and 17 to November 7 as requested by staff.
October 3, 1994
Cupertino City ColUlCil
Page 2
. ORAL COMMUNICATIONS
Ms. Kindel Blan, 23005 Standing Oak Court, read a letter expressing concerns about the
City's policy regarding the release of staff reports. She said that she had been unable to
obtain a copy of a staff report from the City, but an employee of the Sobrato
Development Company did provide it. She noted that staff had told her the Community
Development Director and City Planner were out for the day, but she saw them leaving
the building when she did. The Cammunity Development Director explained that a
portion of the staff report had been mailed to the engineer at Sobrato Development to
verify some data. The full staff report was not completed until about 4;20 p.m. that day.
Counc. S.,rensen said she accepted the explanation in this case, but she had heard of other
instances as well. The City Manager asked that Council inform him when such things
occurred.
CONSENT CALENDAR
It was moved by Counc. Sorensen, seconded by Counc. Dean, and carried unanimously
to adopt the items on the consent calendar as presented, with the exception of item Nos.
7 and 8.
1.
Resolution No. 9196: "A Resolution of the City Council of the City of Cupertino
Allowing Certain Claims and Demands Payable in the Amounts and From the
Funds as Hereinafter Described for General and Miscellaneous Expenditures for
the Period Ending September 16, 1994."
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2. Resolution No. 9197; "A Resolution of the City Council of the City of Cupertino
Allowing Certain Claims and J)oonumds Payable in the Amounts and From the
Funds as Hereinafter Described for General and Miscellaneous Expenditures for
the Period Er:Jing September 23, 1994."
3. Resolution No. 9198: "A Resclution oftbe City Council of the City of Cupertino
Allowing Certain Claims and ~8IIIk Payable in the Amounts and From the
Funds as Hereinafter Described for SaJarie!¡ and Wages for the Payroll Period
Ending September 23,1994."
4. Resolution No. 9199; "A Resolution of the City Council of the City of Cupertino
Approving Contract Change Order No. 13 for Cupertino Nine School Site
Improvements, Project 93-9106." (Hyde Junior High School)
5. Resolution No. 9200: "A Resolution of the City ColUlCil of the City of Cupertino
Accepting Quitclaim Deed and Authoñzation for Underground Water Rights ftom
Jiun-Huey Lee, 21910 Hermosa Avenue."
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6.
Resolution No. 9201: "A Resolution of the City Council of the City of Cupertino
Accepting a Grant of Easement for Public Utilities from Jon Hwu and Sui Hwu,
Located at I 1350 Bubb Road ~
October3,l994
Cupertino City Council
Page 3
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9.
Resolution No. 9204; "A Resolution of the City Council of the City of Cupertino
Authorizing Participation in the South Bay Clean Cities Coalition (SBCCC) and
the Federal "Clean Cities" Program."
10. Resolution No. 9207; "A Resolution of the City Council of the City of Cupertino
Declaring Its Intention to Order Vacation of a Roadway Easement Within the City
of Cupertino Pursuant to Section 50430 Et Seq. of the Government Code of the
State of California, Fixing Tune' and Place for Hearing and Providing for Notice
Thereof; Lands ofMurarIca, San Fernando Avenue."
11. Resolution No. 9158: "A Resolution of the City Council of the City of Cupertino
Accepting a Grant of Easement for Water Line Purposes From Lotus
Development and Construction, Inc, Located Along the Southerly Boundary of
Lot 3, Tract No. 8585, San Fernando Avenue."
12. Resolution No. 9159: "A Resolution of the City Council of the City of Cupertino
Accepting a Grant of Easement for Water Line Purposes From Lotus
Development and Construction, Inc., Located Along the Southerly Boundary of
Lot 4, Tract No. 8585, San Fernando Avenue."
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13. Review of Alcoholic Beverage Control license for Outback Steakhouse, 20630
VaUey Green Drive
14. Approval of minutes of the September 19, 1994, regular meeting.
Yo1!:
Members of the Ci'Y C.OImcil
AYES:
NOES:
ABSENT:
ABSTAIN:
~l1ti_, Burnett, Dean, Ko..pel, and Sorensen.
None
None
None
ITEMS REMOVED FROM THE CI)NSENT CALENDAR
7. Resolution No. 9202: "A Resolution of the City Council of the City of Cupertino
Accepting Grant of E,~ fa! Roadway Purposes ftom Jon Hwu and Sui Hwu
Consisting of Approximately 0.0855 Acres, Located at 21448 Folkestone Drive."
8.
Resolution No. 9203; "A Resolution of the City Council of the City of Cupertino
Approving Final Plan for the Improvement of Frontage Located at 21488
Folkestone Drive, Developer, Versatile Construction; Authorizing the City
Engineer to Sign the Final Plan; and Authorizing Execution of Agreement in
Connection Therewith."
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October 3, \994
cupertino City Council
Page 4
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It was moved b) Counc. Sorensen. seconded by Coone. Dean, and carried
unanimously to adopt Rcsolution Nos. 9202 and 9203, amended to reflect the
correct property addreS!J of ) 1350 Bubb Road.
PUBLIC HEARINGS
IS. Applica:ion Nos. 81,156 and 9-EA-94 - City of Cupertino - Amendments to
various sea:ons of Chapter 19.40, Residential Hillside Zones, of the Cupertino
Municipal Code, regulations for flat yard area, second $tory off-sets and house
sizes. The Planning Commission recommends the granting of Negative
Dec1aration. Recommended for approval. (Continued ftom July 5 and September
19,1994.)
(a) First reading of Ordinance No. 1658: "An Ordinance of the City Council
of the City of Cupertino Amending Chapter 19.40, Residential Hillside
Zones, of the Cupertino Municipal Code.~
Statfrequested continuance to the meeting of November 7, 1994. It was moved
by Counc. Sorensen. seconded by Counc. Dean, and carried unanimously to
continue this item to November 7, 1994.
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16. Application Nos. J-Z-94 and 2-EA-94 - City of Cupertino - Request for rezoning
of various hillside properties encompassing 185 net acres in the Regnart Canyon
area. The site is located in the west foothills of Cupertino. The Planning
Commission recommends the granting of a Negative Declaration. Recommended
for approval. (Continued from July 5 and September 19,1994.)
(a) First reading of Ordinance No. 1659: "An Ordinance of the City Council
of the City of Cupertino Amending Title 19 of the Cupertino Municipal
Code by Rezoning Various Hillside Properties Encompassing Approxi-
mately 185 Net Acre!J in the Regnart Canyon Area; Located in the West
Foothills ofCupertino.~
Staff requested continuance to the meeting of November 7, 1994. It was JDO"'ed
by Counc. So~ß, seconded by Counc. Dean, and carried unanimously to
continue this item to November 7, 1994.
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17. Application Nos. 2-Z-94 and 6-U-94 (Modified) - Emily Chen - Use Permit to
construct five single-family homes in a Planned Development Zoning District;
rezoning to modify the existing Planned Development Residentia1 P(RES) Zoning
District with regard to building pad and locations. The project is located at 19340
Phil Lane. The Planning Commission recommends the granting of a Negative
Dec1aration. Recommended for approval.
(a) First reading of Ordinance No. 1670: "An Ordinance of the City CoUDCil
of the City ofCupe:1ino Approving a Reroning to Modify the Existing
()c:roIa 3, J 994
cupertino City CouœiJ
PlieS
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Planned Development Residential P(RES) Zoning DisIrid With Reprd to
Building Pad Locatícns (AppliaIion 2-Z-94 - Chen)."
The Community Development Director reviewed the staff report. Counc. Burneu
abstained SÍDI:e be owned pooperty adjacent to the project site, aød left the dais at
7:15 p.rn. for the duration of this item. M.yor Koppel opelled the public: taring.
Mr. Eddie Sben ofLRS Associates, .~." .=,. Emily Cbeo, Slid that they wm:
pi rr,,' with the lOlulions proposed. aød wm: willing to take the advice of the
Historica1 Society if they felt the IeCIODd-story stucco 011 the bistoI ic:al boule
sbou1d be changed to wood siding.
Mrs. Nancy Bumeu, 729 Stendhal Lane. Slid her p..oydty .d)<hned the pII'Cd
under discussion., aød she supported the staff recommendation.
It was moved by Coone. B"llficta, seconded by Coone. Su.....!eI1, aød carried 4-0,
with Counc. Burnett abstaming, to grant a negative declaration.
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It was moved by Coone. BMJtista, seconded by Coone. Su.~" aød carried 4-0,
with Counc. Burnett 1Ibctaining, to approve the zone change aød Ole permit
lIppiications as leconU.~11ded by Plallning Commission Resolution Nos. 4553 aød
4554, with the following conditions: Condition 3 of the Ole permit rqarding
l.....t-.M& sbaIl be amended to read -Require that the applicant plant a total of
fourteen new trees, five 15-gaI1on and nine 24-inch box. The Iu.Abons of said
ttees sbaIl be approved by City staff following consultation with the lIppiicant and
8djoining neighbors." Also, the appIkaat wiD install wood sidiDg 011 the ICCOOd
sIoIy of the historical home if that is the I'CCI(!III..--dllliorl of the CupertiDo
Historica1 Society.
The City Clerk read the ordinance title. It was moved by CoIIIIc. So.cøsœ.
JCCOIaded by Coone. Bautista, and ~:Ied 4-0 with C-OOIIV' Burœ.. ..-.~ that
Ordinaocc No. 1670 be read by title only, 8Dd the Clerk's reMi,. to .~...j\~..#' the
first reading thereof. It was mowd by Counr. Su......... secœdcð by Counc.
R.....cta, and paslei1 4-0 with Counc. Bumeu abstaining to approve 0rdiD-.~
No. 1670 for first reading, including a clarification that the ¡Ad1St "for paJ.!.: ..
be added to the smteoœ '1be first ftoor re8I' Idbecb 011 Locs No. 2 .I: 4 .œ
bermy modified to 10·...
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II. Application No(s). 3-GPA-93, S-U-94, aød 2O-EA-94 - LandmarIt ~.......-
The General PlIIn Ammdment is a reqUCSI to cbange fiom high dt..s4y (2O-3S
dwdling units per gross acre) to Jnedj..JID bigb denséty (10-20 dwelling uaits per
gross acre). The use Permit is a request 10 œastnII:C 5 townhomes 011 .. 11,761
sq. ft. vacant parcel in a Planned Devd........J residential zoaing disttict. The
",upo;;ity is located at Gardenside Lane aød Rainbow Drive. The Pb-..=..
Commission recommends the granting of a Neplive Declaration. Rcc.c:vn~
for approval. (This project was d¡,...~ pmiously at Council 011 June 20 8Dd
July 5. 1994, a... an appeal of AppIicaliOll5-U-94).
October 3. 1994
Cupatiœ City COBit
P.6
The Community DeveloyuOAd Dir«lor reviewed the staff report. The
Co!ømunity Development Director sugested a miDllle order giving ~l
IIp!IIOVIII of this project and ()IIoII;"'1ÍfIg tIw h ~ to January. 1994. He
C'tepI.n-I chat oaIy four GeœraI Plan amendm...¡b wa'e penniaed each ca1endar
year, .. the -.nmdmcnt requested by the DioœK WIll in the "pipeline" before
this ODe. Counc. lù"ti_... 1~ (¡(Io":.II';", this item to Dcœmber, at wbicb
time IIaff would know if the Diocm geoera1 plan """""'........ would be through
the plO(.Qa.
Counc. Deao said that be believed 0--;\ bad aøreed the deasity was too high.
The stteet elevations do not ind~ dial space has been OJ":...j~ and tbcIe are
not Cupcrtino-type houses. A ~ of four units with larger fOOlprÚlll
would ~ the parking problem. He said the ~London-style" bousing with
adjoining walls was not right for the City.
Mayor Koppel opened the public bearing.
Mr, Larry Guy, I~.........diug l.wn..t Development, said the grade in this plan's
back yard was higher, otherwise it was the same design as the development
behind it. They planned to build townbomes instead of single-family 1n.:!eS
'--.- staff bad empbasizcd the aced to build as many units as possible. They
bad inaC4SCd the plan &om three to five units. The height of the units is
COfISÎstenl with other developn~"" Oeating ~ homes would be more
expensM. and this cumnt design DOW meets the parking recp.;....~ He said
they would be back in Deœmber with the tentati\'e map so Council will have
another opponuaity to review it.
The public: œaring was closed. Coone. RMotist- said four units would be betta',
but fi\'e WIll aocepc.ble. Counc. Deao said be would prefer four units. Mayor
Koppel indv..-t that she would accept four or five units.
It was moved by Counc. Bautùta, Ie<X-Wo.t by e......... SoraIs..... and UIa.;..d
unanimously to aIopt a minuIe order ~dåðg GencnI Plan ,A.........t"""1l 3-Gl'A-
94, ""'''1 that "the City CounciIIaDIMIy suppoos the ........,-1 GencnI Plan
Ammd- to recleõignatc a .34 ac..t pIIœI Jo.. ooroed on Rainbow ome.
appu.'"i...~y 400 feet east of the ~....;IÏuq ofGardo-... Lane and 11-..........
Drive, &om High (20-35 dweIIina units per acre) to MediumlHigh (10-20
dwdling units per acre). The City C.........\ will tinali".. its .......cion following a
public: œaring on Tuesday, ~ S, 1994." Staff was directed to re-ooôce
this item for that meeting. Coone. ~.......... asked that staff review the own1I
parting requiremenIs in the fùture, since Cupertino JC r onecI to be out of line with
neighboring communities.
Odober 3. t 994
Cupertino City Cooncil
Pate 1
. PLANNING APPLICATIONS
19. Applications 7-U-94, 5-TM-94 and l4-EA-94 - Cupertino City Center As.ø:iates
D - Use Permit to consuuc:t a 120 unit "For r<cnt" condominium complex.
Tentative Map to subdivide one paœl into 120 condominilØD units. The project
is located at the .."..... 111 qwdt..ut of Stevens Creek Boulevard and DeAnD
Boulevard. The PIanni"l Commission m:ommends the granting of a Negative
Declaration. R«fo,oIU~Ib~~ for approval.
The Community DeveIopmaIt Dim:tor reviewed the staff report, and distributed a
copy of the Couacil mÍD'.Jtcs of JUDe 6, 1994, regarding the draft Housing
Mitigation Manual, as well as a chart providing a pro-forma comparåson and a
construction cost compaIdon of the Cupertino City Center A.-b....uts II. He
explained that one issue was whether the private r«re.dion areas meet the need..
of the residents. The total space needs are met, but there's a reduction in the pool
and recreation areas. Anotber issue is how much credit would be given for parks.
1 f all the criteria are met, up to SO-" credit can be granted. The r.ondition of
approval in the packet asswnes no credit will be given. The City Manager
clarified that staff feels the park area meets the intent of the ordinance.
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Mr. Mart Kroll, rq...........ting the applicant, distributed a packet of information
which included :euers to the Community Development Director, the pro-forma
comparison, construction COSIS and floor plans of a reduced-size unit, letters
about the avei1ability of land and apaalkudlts for sale in the City; an article ftom
the Cupertino Courier ofSepternber 28, 1994, regarding affordable units; the draft
Cupertino Housing Mitigation Procedura1 Manual revised JUDe 6, 1994; and a
BMR unit fi........w ana1ysis showing that every moderate Below Market Rent
(BMR) unit requira additiooal capital on37,s 17.00.
The City Attorney said that u;uch of the material... ..cnteð by the app1icant was
materia1 that the Council bad not _ before. He suggested that Council take
testimony but defer ~ on this item if they wished to have staff review the
materials and rcspood.
The Community Development Dim:tor said that the intent of housing mitigation
is clear in the General Plan, but the ~,I".I~ manual is not as clear. The
Affordable Housing Committee (AHC) is still meeting to define a beueI' ...~.
Staff believes that Council desires more flexibility, as evidenced by tile gQdeIiDes
adopted in June. The AHC has a difk.g...... of opinion, and the Planning
Commission feel!J strongly that the affordable units should be built on site only.
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The City Attorney noted that the amendments providing more flexibility, adopted
by Council on June 6, were not in the Housing Mitigation M.anual given to the
applicanL He added that Council can consider any range of units, not just the 12
units being discussed.
October), \994
Cupertino City Counci\
Page'
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Mayor Koppel opened the public hearing.
Mr. Mart Kroll said the materia1 he distributed was requested by City Council at
the 1uI meeting IIDd bad bcœ submitted to staff in a ûmely fashion. The only new
matcriaI was an ~.... as to whether there was any new land available for
purcIwe. He said Couøcil directed them to return IIDd demonstrate how they bad
gooe tbrougb the feasibility cbeckJist IIDd earned the right to pay the in-lieu fee.
Prucnt this evening _ some of the people who bad written the 1etters that bad
been given to staff.
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He said the first step 111'85 to demonstrate that the Below-Market Rate units cannot
be produced on site. This podium project was designed to achieve the upper
range of density and was selected b«1'~JS(' the General Plan and staff requested
200 units if possible, but the applicant felt that would be too dense. Since the
project sits oat to the highest building in Cupertino, a low-density "t1Woacb, ~h
as a two-story garden .......bllent complex, would look out of place. Mr. Kroll
acknowledged that the design approach was partly responsible for the high
construction costs that are driving the BMR unit issue but the ploposaI also
provides more BMR units. The mitigation checklist would allow a density bonus
but that would not achieve financial feasibility for BMR units. The August 4
letter discusses the financial unfeasibility of the project on this site if the physical
amenities were reduced. One suggestion was to reduce the size of the units to
make more BMR units. The architect revised the one-bedroom unit to make it as
small as a BMR unit provided by non-profit such as Bridge Housing, and then the
contractor revised costs.. The smaller unit and savings still did not produce a unit
that was financeable. Mr. Kroll reviewed the pro-forma he bad distributed and
said they concluded that it did not attract capital. They continued to work on the
issue by c/tar1ging the unit sizes until they reached a project design ~ felt was
feasible. In all cases they excluded the p.d dedication fee ftom their feasibility
requiremenL Only the project with an in-lieu fee met the feasibility req¡.;........-db
to finance the project. Mr. Kroll aid the offer still stood to provide 2 BMR units
plus the in-lieu fee.
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Mr. Jeff Weidel!, of the banking finn Trowbridge, Kieselhorst &: Co.ßPíUIY, IDe.
said his finn bad worked with the applicant to finance their new projects as well
as old ones. This project was viewed ftom the 1"".~1ive of a joint venture
project on a deb! basis, 120 units at full maricet rmL It was a high-priced on both
sides, high income and high cost, and on the ragged edge of ~lity for
financing today. Although there is more capital for real estate than a few years
ago, interest rates are going up. Past experience with similar projects shows that it
almost requires City financing. It isn't any cheaper to build a low-income unit
than a rna.-ket rate uniL Mr. Wiedell said if the applicant owns the 1and., it has a
huge impact on the cost. If there is no land basis, the addition of high
construction costs can sink a project. This applicant is using their land as their
equity to get this financed, but still construction costs and fees are high. around
S I 00,000 per unit
,··'r"
OchA,.;, 3, 1994
Cupertino City Council
Paae 9
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Mr. Kroll said The Community DevelO9t.lellt Director bad asked if two 400-
squII'e foot units would work better than one 8OO-square foot lDIiL The answer is
no, since their goal is to eventually convert the ~oj...a and IdI the units. SmaJler
units are not good for future sales prospect and do not pen out financially.
Mr. Alex Seidel, project an:bitect, Slid tbat there is a paac6...d limit to c"I""',.'ling
or ....ub-..IÏDg unit size. Average size one-bedroom BMRs are appro'l<irn"',",y
700 square feet, so they calM......... the one-bedroom units at that size. He said that
in a CODIIì.unity that avoids atfordIble bousing issues, unit size shouldn't be less
than standard for the community. Studio units are built in a diftacnt kiDd of
project. more like a hotel, with a diffemIt management stnJctIJi{;.
Mr. Doris OrlotT. Trident Construction, discussed the unit size and construction
costs. The smaller units have all the costs associated with kitchens, bathrooms,
electrical systems, etc., so size doesn't affect the cost that much. IncreDlental
clitTe! ence in adding square footage is relatively cheap.
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Counc. Bautista asked what kind of development could be placed on that size
parcel which would be able to provide 12 BMR units. Mr. Wiedell said that one
solution was found in Pleasanton when they wanted more low-income housing
units, so they granted additional density by lowering average land cost per uniL
The problem here is the construction costs f.x this density have a1ready taken the
land out of the equation. Some of those costs include architectural be<ilWcld to
make the project appealing to the neighborhood, and the cost of providing
handicapped accessibility.
The Community Development Din:ctŒ asked if the c:.JSt of the project is due to
the fact tbat it is a podium project, with parking underneath the units, instead of
having on-grade parking. Mr. OdotTsaid it does add a lot to the cost. Tuck-under
parking might be cheaper, but the project would be much lcss dense.
Mr. Kroll said the next step was to ~pt~ the feasibility of COIISIrUCting BMR
units otT site. They Me! previously in~ptM the availability of land in the area.
and again last week, and there was 5Iill nothing available. Mr. Lou ~mpn, a
real estate broker and land development consultant, said he bad reviewed the
applicant's request and found nothing in the multi-family zone of this size.
At 8:45 p.m., Council reces!Jed. At 8:50 pm., the meeting reconvened.
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Mr. Kroll said the final step was to consider the feasibility of purchasing m.ctï"g
&pillluoçdts to be made available as BMR units. Mr. Broce Keene, a broker with
Arroyo and Cc1tcs specializing in multi-family housing, said he bad written a
letter to the applicant in July and another last week as an I~"'~ discussing the
availability of _bllo=nts in the community. The same three locations are 5Iill on
the marltel with one addition. They are all highly priced for the county at
October~. t C})4
cupertino City CouDci1
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S8S,OQO-S95,OOO per unit. He reviewed the locations and number of units in each
complex.
Mr. Kroll said they believed they had sabsfied the tests, and they were still willing
DOt only to pay the in-lieu fee boa to designate two onc-bedroom \!IIÍts as
affordable to ......A ÍIICiOIDt for a period of 10 years. He rniewed a fmanciaI
aua1ysis wbic:h showed that every w"d~..d.e BMR unit requires additional capital
ofS37,5 I 7.00. He asked that, if the project as proposed could DOt be financed.
they be al10wat to come back to Council to disross the pl6ject fùrther. He said
that they wa'e COUDIing on receiving the 50% part dedication fee cmIit. Usually
the open space is for use by tenants only, boa the amphitheater will continue to be
made available for City fimctions as well as other specia1 fimctions.
Mr. Kroll said they bad committed substantia1 resources to the project in reliance
on bow the ordinance was written. Interest rates continue to go up and time is
against them, and he asked for approva1 of the project, with the applicant
providing the two one-bedroom units. the in-lieu fee, and receiving 5O-/é park
dedication fee credit. He said in other communities there are sometimes
redevelopment fimds available.
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CoIUlC. Bautista a.'!ked if the applicant would put in 5 BMR units instead of 2 units
and paying the in-lieu fee. Mr. Kroll said yes, if they were 5 moderate-income
rate units for 10 years, bee...- it would work out the same financially.
Ms. Sally Brennan, 19917 Twilight Court, said her future daughter-in-law, who
was born in Cupertino and is now a '---, carmot afford to live in the
community. Sbe DOted that the City lost the affordable units at Lake BilbDOre
when they t-.we market rate units in the early 80's when Prometheus putt""-l
them. She said she worked for Q.......\lßity Services. and tried to make
arrangements so senior citizens wou1dn't be disp1aced. She discussed $ÏhlSltÍnnc in
which senior citizaJs bad been forœd to IDOVe. ~ out of slate, two- -.'- of
losing their affordable housing. In many cases the developers bad worked with
them to negotiate a lower rent, but when Late BilbDOre convated those units to
market rates in the late SO's Pìooaetbeus wou1d DOt negotiate. She hoped their
attitude bad cbanged. She suggested ~1IIÎ"8 with Lake Biltmore or City
Center Apad.uwts I to SJft8d around the BMR units.
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Mr. Ferokh Debao, 10257 Nile Drive, ...,,~ the City on encouraging the
development community to provide more affordable housing. He asked CoUDCil
to consider the City Center as a overall project and to wait for the Stevms Creek
Specific Plan meeting on October 11. He asked if there was a cI1nvt-d for
computing units per acre, bee"u<:e different deasity figures bad been quoted. TIle
Community Development Director explained the fonnula for computing units per
October 3, 1994
Cupertino City Council
Pa¡ell
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acre. Mr. Debao asbd that Council pro~ide more open space and more POdtd
ram open to the public. He said he disagreed that affordab1e units cost
beingabout the same as market units, and expenses could be brought down by
reducing aIIIeIúties such IS fireplaces.
Mr. Dick Schuster, 777 Stftldhal Lane. the Cbairperson of the Affordable Housing
Committee. distributed and read a typed statement. He said that if this J'Iuject is
approved. the City must be sure that sufficient affordable units are c:onscnx:ted in
the City to attain the "fair share" balance. He asked that Councii follow the
,.....,...-,1ItÏoos of the Affordable Housing Committee and the Planning
Commission. and require the developer to provide 12 BMR units on-site if 120
units are approved.
t
Ms. Cathey Edwards said she had worked with homeless programs in Smmyva1e
and Cupertino for over five years. She said there were several problems with
Council -....;pting an in-lieu fee in exchange for 12 units. It would !Jet a pI«edent
too soon after app..oving the General Plan, and an in-lieu fee of $108,000
wouldn't buy more than one unit l'f affordable housing in this community. In lieu
fee! are options, not SOIJK1hing the developer should bank on. Ms. Edwards said
she found it insulting to her intelligence to have all these experts say the project
isn't feasible without mentioning the reason is that it lowers the profitability for
the developer. She wondemI how much money had been spent to bring the
specialists to the meeting to testify.
Mr. William Wickwire, an owner of a Northpoint home, asked Council to require
the 12 BMR units. He said he ."'I"'.......ded the Cupertino SlIDI1)'V8le ChurdIes and
Homeless Housing Coalition and that be ""~ the AHC n-hT regularly.
He said they've a1ready been infonned about the shortage of possible sites for
affordable housing in Cupertino. and there is also a "NIMBY' attitude wbich also
sem:s as a deterrent. He said that all the in-lieu fees in the world won't give us
affordable units if we can't fiDeI places to buy them or build them.
Gertrude Welch, 10605 Gasc:oigne.I..p...........ting the Affordable Housing Network
of S8Dta Clara County, which is an organization with 42 differern fIII'IIIWr
organizatioos concerned about affordable housing. asked that Council support die
findings of the AHC and Planning Commission. She said that developers wiD
always choose the in-lieu fee, but just do not build enough affordable vnits.
Mr. Tun Doty, pastor of the Union Church in Cupertino, asked Council to make a
good faith effort to build BMR units and affordable housing in the city. ffit is too
hard for this expensively-priced project to build it here, or if there is not eoougb
land, then the Plan should be changed to reflect that.
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Odaher t \C)C)4
Cupertino City Council
"12
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Ms. ShIIroa Blaine said that requirements like these have been around in one way
or another almost 20 years. She said it was obvious that the developer never
i~ 10 put BMR ID1Íts into this development. She asked that Council bold
firm to their commitment 10 have 8MR units built, pråerably OIl site
Ms. J_ ,Ad...... 10102 Senate, ~tA:d the C.........i-"ou', ~ú......~I..,:.ms.
AJrordab1e housing works best for the community wbea it is ÍDtegnIIed into all the
devek.¡-.~,I.. She added that the BMR mitigabOD fee is low and i~uaIe and
places US evm further behind in providing affmlable bousing.
Mr. Kro11 said they no objection to affordable housing and they had provided .101
of it in other developments. The issue here is who is going to pay for it. If the
City or diff'erent groups Iß the community want to provide the dollars it taIœs.
they would be delighted to include BMR units this particular project. The
applicant fol~ the rules on the books and attempted to do what was n:quircd.
The entire project will not P forward if he has to try to finance it with 12 BMR
units.
.
At 9:40 p.m. the public hearing was clO!Jed. The City Attorney said that the
applicant wanted the project approved quickly as possible, but if c."MIcil feels
they need further information, or an 6pPuìhaÚty to read the ;:naterials and have
staff rcspood. they should not hesitate to continue this item. The Community
Development Director said that the materia1 in the packet includes the letter of
the fourth highlighting the major points in the new materia1s.
Couoc. RMlfÌsta said that he was comfortable making. decisioo tonigltt to ra¡uiæ
12 units. He ~ taking out the pool and spa and m:ouping money to go to
the units in the project. If Council wanted to look at additiona1 informaIion., a
continuance was ~le to him. Coone. Buroeu agreed, and said tbeœ is a
parada" since these wa'e the most dense units Council was likely to see, yet this
developer c:anDOt provide affordable bousing. He said tbeœ mtISt be anocba-
solution, as suggested by Coone. Ihllti~ He said that 12 BMR units were
csscøtial and he wouldn't vote for the project without them.
Mayor Koppel said she hasn't had time to look at the information given tðnigÞt
and would like to see it continued for two weeks. It would be Dice 10 have 12
units, but she was not convinced it is possible. Coone. ~ agreed with
Mayor Koppel. Mr. Kroll said that . continuance is accepIAb1e if it is qe(-- 'Y to
make a tbougbtful decision. He asked for direction as to what IåDd of information
Council would like to see.
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The City Attorney suggested there be some discussion of City involvement in this
project. The Administrative Services Director has indicated that there migltt be
available some City-guaranteed Certificates of Participation (COPs) which could
reduce the interest rate substantially. The Administrative Services Director said
that the City does not have a redevelopment agency, so they do not have a 20%
<ktober 3. 1994
Cupeníno Ciry CouøciJ
p.13
.
set-aside money, but the City can sponsor tax-exempt bond financing wtuc:b
would lower the interest rate on the entire complex. They would be required to
set aside 20-~ of housing units to be ocaapied by individuals whose income is
50-.4 or less of the area's median gross income. Statfwou1d be willing to wort
with the developer to pursue that opcioo if CouDciI desires. Mr. Kroll said they
wm: familiar with the financing proposal. but the problem is the 9% tax credit.
Experience bas shown that it m¡uires 100% affordability, although that's not what
the rules say.
Mayor Koppel asb:d that Mr. Kroll coøtinue to attend the future meetings for
JT.upo5CS of continuity, even though the original project team wou1d be at the next
meeting. She said it wou1d be "I'I"u9I;.œ to meet stafJ'to explore the possibility
of tax-exempt City financing.
.
Discussion followed whether CouDcil wanted an outside consultant to review the
numbers, or belp with redesign. Counc:. Dean noted that interest rates continued
to go up and he understood the applicant's concern about time. He said that the
City could have done better and they have some responsibility to bear. Coone.
Sorensen said that the whole issue needs to be addressed in the future. The City
Attorney requested that all materia1s issued be available to Council as a pari of
their packet. Counc:. Sorensen asked that minutes be included as well. Council
indicated that it would not be nee ¡, -.) to bring the architect back to the next
meeting.
The City Manager said one of the big qIIeStions yet to be resolved is whether there
is consensus for m¡uiring 12 BMR units. Counc:. Dean said that the applicant had
offered the BMR units for 10 years. wbicb doesn't meet the aiteria mentioned of
30 years. Mayor Koppe1 asb:d if they wanted that much more density. Dean said
the question was wbetbc:r they fo!k.wed the statal p<~ oor.ectJy.
The Community Dndopmeat Dia........ said that he thought what ~ miftÙ1g
was the fellSibility of ''''. the project. or of living with the mcr;. p<oject
and meetirg the test of the mitiptinn _..I. The City t.(a." ~ " said that
Council's own rules say they can modify their reqm.no~...b for BMR bousiDg.
The City AttoIaey noted that the IbiIity to modify those requil...,~'I, was listed
in {'-auncil min.._. but not in the ~ manual. CoImciI bas the ability to
modify these conditions without De( [ ;Iy being required to allow an in-Iieu fee.
.
Counc. Blluh...,. asked if a reasonable perIOD wou1d SI$$I'"W' that, if they met the
strict conditions of the manual. that the Council would grant the in-lieu fee. The
City Attorney said no, bee.."..... the ~.aagc: in the manual says that CoImciI sbaU
"consider" waiving the in-lieu fee, not "sbalI grant" the in-lieu fee. The in-1ieu fee
procedure, in which technical information is p<...-.ded, is only a requiremeut of
the applicant to meet before Council considers a waiver.
oaoÞer J, 1 '1'.H
<.:upenmo <':Jty <.:ounciJ
"'14
þ
Counc. Sorensen IDOved to coatinue this itelll for two weeks, with the ability to
I"COJI'II the public bearing; aod that Mr. Kroll altaid the n-ril'lg for pwposcs of
continuity; and that he sbouId explore the possibility of financing with the city
and any other possibilities to provide the BMR units, such as removal of some
amenities. Coone. Bumeu seoo-~4ed The motion carried unanimously.
20.
AppIÏCIIions 8-U-94, 6- TM-94 aod 22-EA-94 - Citation Homes Central _ Request
for use permit for . pI~ ðela<bed sing1e-family devdop.t...ut c:oncidÚ1g of 79
homes aod teøtalive map to .~vide an existing IIS-1ot. 7-acre parcel into 79
lots. The site is lncated ., the ""I1the8st comer of DeAnza Bou1evard aod
ffDn-....d Road. (This project was prmousIy known as Portofino.) The
Plallnin¡ Commission 1'CCOIIIIIaeœ. the granting of a Negative Decla..4i"u.
Recommended for approval.
The Community Developme:!t Director reviewed the staff report.
Mr. Jim Sullivan, ."'... 51> ,I;'., the applicant, said that 10 units are C'Xi....ng
Portofino homes. They re-subdMded, going from 115 to 84 units. They will be
incorporated into . multi-family 5.3 acre site, aod staff was given a CObt"'...'..,
plan of that area.
þ
He said they had met with staff' and the owners of the Nortbpuint and PortofiDo
homes to exchange information aod addres!J concans. He felt there was an
excellent reIatioasbip with the boaneowners. He said they have cLow..d oaly six
guest parking ~cs,. but are ........oxd to putting them on the cnut~ COIae.
t-.n_ it would mean shifting the entúc blocIt of buildings aod enat"'(h:na ÍDto
the multi-family area.
Ms. Judy Ash, Vice-Fa '.c-. of Portofino Homeowners ,A---......." said theft
had been many mHo:..,. wi1b Ciuôoa aod most of their COu'¡~jl4 had hem
addressed. Sbe ..:k..~ liD the ......D......,. report in the J"'('1tet aod poinred out JOUle
items that were still of co...;(m to the Association. She said that the 113' eIeVIIIioo
detail had been modified and the Association was plmed wi1b the wiødøw
molding aod c:antiIevered rool "-iF Ms. Ash said that de Auoc;8Iion
undeaSlaikb that aJthno.,. 6 pest parking stalls have been ddcfod, there are
actually now more spaces __~. but they have been redisttibuted. That is still
an issue '--- the AssociIIIioa bas to enforce the parking regubdions, CId Ibœe
places would DOt be easily e.:< [llibIe. Since the ..b.....d plan is still (1",.. 1""..'
perbaps there is slill time to ÍJrVMIipb' further. Ms. Ash said that item No. 9 iD
Resolution No. 4560 says that they ~ .Qb;a parking in driveways. Sbe
explained that the CC&Rs do allow thai, but they i..I...-LowI to address it ., . fiJbR
n-t'1'Ig Sbe asked that the staff'be directed to review other distribution ....._
for parking. aod that the -- about parting r~ ;..bon be talten out of the
conditions of approval.
0d0IJcr 3, 1994
Cupertíøo City Couøc:i1
PIp"
.
The City Attorney Slid the City was not a sigaarory on the cc.tRs. 8Itboneb it
may c:boose to enforce certain aspects illlpulllWl to the City. He suggested dJat if
Council felt theæ chnnId DOt be any I~;...ooas to pariting. leave the wonting 81
is. and have them ~ the use permit He exp1ained that the exisIing CC.tR'1
caD lppIy to the PcxtofiDO and the new CC4Rs lppIy to the multi-family complex
oa1y if the sïgner. 011 the original Cc.tRs agree.
Ms. Ash Slid they came to agI~laeøt with Citation Homes to prohibit
~odioa 011 holidays and Sundays.
0-.... Bautista IIicI thII cu.øuuCtion ~j to be -..., IIIOIC tow..d IÏD¡Ic
family homes fiom biøber do:nsity. He thouøbt ttD 'WI a good project but would
like to see 10wer deøsiry 011 the other IedÍOII of the project. The City AItomey
DOled that theæ is a ftIqUÍreIneDt for 31 Below-Market Rate (BMR) units..
The City Manager Slid that a Geocral Plan -odrnent would be needed to reduce
the density below willi is called for in the Geocral P1an, and it could ;'Uf"'"CI the
8ppI'OV8I of the Hc-4;ng Element.
þ
Mr. Sullivan Slid his CM.p...j'S ...."MiJe is sing1e-family cJtotKbed homes. The
curreot plan was ax:ounged by staff and the key point was to acbieve a toC8I si1Ie
density of 342 units. He said they ~ ...-....hIe to any dircctioo ",:.en they
ðilCUSS dae multi-family site.
Coone. SoIeabed said the ..-~ bousiøa was ~.dely needed and this
project was most applicable siøce it was in an area with other ...-1Þ-4
~.
It was IDO\'ed by C....... Bumdt, Ie(()f~ by Counc. SoIcnsa1 and cwJied 4-1
with Couac:. Dam wtiDa 110 to pant the ......we decllralion.
It was IDO\'ed by C....... SoraIIen. SCCOI~ by Counc. Burnett ... _.;eeI 3-2 to
the . 1IpIIIM' PIIIIIIi C .. Raul' No
....ove use permit ..... per 'II .........·ftInIl 0600.
-4560, IDII to "'I'I'"un; the IbMYe IIIIIp WirllÍ(fl per PlSlnn;", C....·-..· 'm
RaoI~ No. 4561. Couac. B.....- Slid be weed 110 be<-w be felt the whole
~~ .......Jd be dÍIc1Imillt ODe time, IDII be.....w lower dœsëty 011 the De'Jd
pbae.
NEW BUSINESS
21. Co.llÎdtlldiOll of _lIdi"l TdIe 10 of the a..,.-.tiuu Munic;¡.J Code repnIiøa
reguI8tioa of graffiti. (CoatiDued ftom the ..-.4 of September 19, 1994.)
(a) First ,....,ting ofOnfinance No. 1669: "An Ordinance of the City Coo-õl
of the City of Cupertino ",lIV'fVIiqg TrtIe 10 of the CupeI'boo M....i<'?
Code By Adding nuq,- 10.60 ~~ Regulation ofGraffili. ..
.
.
.
,
Oerobcr J. 1994
Cllpgbuo City CouøciI
PIp 16
StafJ'requesIed continuance to the meeting of November 7,1994. It was moved
by CounI:. Sorensen, sccollded by Coone. Burnett, and carried IIDIIÚmousIy to
"'"..;......Ibis item to November 7, 1994.
22. P."'~..I- h...... from HIItII8II Services Committee for 1994-95 f'D.li",
aJk>.. "ÔOIII.
Ms. Duana KIey, Public Inf.....~ioa Officer, reviewed die slatfreport. It WIS
moved by Covnr. Deao, 1Je("",(!cð by CounI:. Burnett, and caaried """";--'y to
~ die following fi...m..g 1110- ...:._ totaling 536,140, as recon,~ by
die HIItII8II Scnices ColUmiaee. and to roD over the $610 not c.~1dcd ftom this
year', budJd to next year's HIItII8II Services budget:
Cupaboo Conununity Services
Cupertino Senior Day Services
Longtenn Care Om"",¡"""",
Midpeninsula Support Networt
OI&-.h and Escort
Secmd Harvest Food 8IIIIk
$9,000
$4,000
$3.640
$4,500
$10,500
$4,500
23. Consideration of holding a joint u-ing of the City Council and the PIannü1a
CormniftÍon to di5CIJSS the project plupuSo;d by die Roman Catholic Diocae of
San Jose. Application No.(s) I-GPA-93 and 6-EA-93,IO'""'M south ofI-280, west
of FoodIiII Boulevard and DOI1h ofllomclva San ADIooio County Park and Stevens
Creek Bou1evanI.
Mayor ICoppeI stated 1hIt . o..~ of Pb-....¡.. v-rnicåoo members bad
.......: =.hn ~..4 in holding ajoiat m= .:,. 1Iowcver, die City ~n...r and
City Aaiotoey leroon",""'-' .:..4 that. The City ).bo~ ~1ÚIwd dI8t they
felt it 1WIUId be i.4po~ for City C...-il to give direc:tion before they haft beanS
die I-:"-oøy. The City AIfo(œy Slid dill die ('..-it ~ben may give tbem
points to coasi.ter individuaUy, but they may pI..juliœ thmIlKlves in doing 10 and
the appIic:aDt may say they d.nWdD't pertic:ipate. Cft....,. Dean said dill be 1WIUId
I'BÍse one 01' two points to be QOOSÏdaed, but 1WIUId not be giving .. opÍIÚOD.
RESOLl nONS
24.
Resolution No. 9206; "A Resolution of die City Council ofdle City ofCbp<;<6u..
Supporting die Passage of Measure A on die November, 1994, Ballot Rd8Iing to
Library Fundi", ..
It was moved by Coone. ~ClISCI1, seconded by Counc. Burnett, and .....;ed
unanimously to adopt Resolution No. 9206.
October 3. 1994
Cupertino City~
"17
COIJNCD.. REPORTS
~'W of the ISIt~ of the boor, the Council members declined to IDIkc any
repoIts.
ADJOtJRNMENT
At 10:50 p.m. the ml I":" WIS adjourned.
~~
Kim Marie SmiIb
City Clerk
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