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CC 10-03-94 I ~ . þ 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." . 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." . 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 . 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." . 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." . October 3, \994 cupertino City Council Page 4 . 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. . 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. . 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 » 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. t 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(!I II..--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·... t 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. . 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. . 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' . 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. . 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. . 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 . 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. . 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. . 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 1'.\0 » 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. . 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. þ 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 . 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. þ Odaher t \C)C)4 Cupertino City Council "12 . 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. þ 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 þ