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CC 05-17-05 " CUPERJINO APPROVED MINUTES CUPERTINO CITY COUNCIL Regular Meeting Tuesday, May 17,2005 PLEDGE OF ALLEGIANCE At 6:05 p.m. Mayor Kwok called the meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California, and led the Pledge of Allegiance. ROLL CALL City Council members present: Mayor Patrick Kwok, Vice-Mayor Richard Lowenthal, and Council members, Sandra James, Dolly Sandoval, and Kris Wang. Council members absent: none. CLOSED SESSION I. Pending litigation - Government Code Section 54956.9(a), City of Cupertino vs. Ole Rasmussen, and negotiations for purchase, sale, exchange, or lease of real property - Government Code Section 54956.8, assignment of Blue Pheasant Restaurant to Hungry Jack's Restaurant Corporation, consultation with the City Attorney, the City Manager, and the Director of Parks and Recreation. (No documentation in packet). 2. Negotiations for purchase, sale, exchange, or lease of real property - Government Code Section 54956.8 regarding the De Anza Cupertino Aquatics (DACA) lease. (No documentation in packet). At 6:07 p.m., Council recessed to a closed session. At 6:59 p.m. Council reconvened in the Council Chamber, 10350 Torre Avenue, Cupertino, California, and City Attorney Chuck Kilian reported that in regards to item number I, no decision was made. Council agreed to meet in closed session before item number 16, if needed. In regards to item number 2, direction was given to the City's representative to proceed along the lines discussed in closed session. PLEDGE OF ALLEGIANCE At 7:00 p.m. Mayor Patrick Kwok led the Pledge of Allegiance. May 17,2005 Cupertino City Council Cupertino Redevelopment Agency Page 2 ROLL CALL City Council members present: Mayor Patrick Kwok, Vice-Mayor Richard Lowenthal, and Council members, Sandra James, Dolly Sandoval, and Kris Wang. Council members absent: none. CEREMONIAL MATTERS - PRESENT A TIONS Mayor Kwok presented a proclamation to Assistant Director of Public Works Bob Rizzo, in recognition of Public Works Week. 3. Presentation regarding phase 3 of the fund-raising campaign of the Housing Trust of Santa Clara County. Their goal is to raise matching funds over the next three years totaling approximately $10 million, to provide a thousand families each year with housing. Linda Mandolini, Vice-Chair of the Board of Directors of the Housing Trust of Santa Clara County, gave a PowerPoint presentation regarding their fund-raising campaign titled, "Affordable Homes for Silicon Valley Families." She thanked Council for its previous donation to the Housing Trust, and asked Council again for its support. Shiloh Ballard from the Silicon Valley Leadership Group spoke on behalf of Carl Guardino, member of the Board of Directors of the Housing Trust of Santa Clara Valley. She said that housing is the top impediment to doing business in Silicon Valley, and asked Council for its support for the Housing Trust. Taylor Dial, Executive Director of the Housing Trust of Santa Clara County, answered questions from Council regarding how the money is used in Cupertino to help homeowners. POSTPONEMENTS - None WRITTEN COMMUNICATIONS - None ORAL COMMUNICATIONS - None CONSENT CALENDAR JamesfLowenthal moved and seconded to approve the items on the Consent Calendar as recommended, except for item numbers 4 and 7, which were pulled for discussion. Vote: Ayes: Kwok, Lowenthal, Sandoval, Wang, James. Noes: None. Absent: None. 5. Adopt resolutions accepting Accounts Pavable for April 22, 29, and May 6, Resolution Nos. 05-079 to 05-081. May 17,2005 Cupertino City Council Cupertino Redevelopment Agency Page 3 6. Adopt a resolution accepting Payroll for May 6, Resolution No. 05-082. 8. Approve application for an Alcoholic Beverage License for Flames Coffee Shop and Bakerv. 10630 S. De Anza Blvd. 9. Adopt a resolution declaring brush growing on certain described properties to be a public nuisance and set a hearing for June 7 for objections to proposed removal, Resolution No. 05-083. 10. Adopt a resolution approving a Grant of Easement, roadway, for Amelia Investments, 10578 San Leandro Avenue, APN 357-05-046, Resolution No. 05-084. II. Adopt a resolution approving an Improvement Agreement with Amelia Investments, 10578 San Leandro Avenue, APN 357-05-046, Resolution No. 05-085. 12. Accept Municipal Improvements for Stevens Creek Office Center Associates, LP, 20807 Stevens Creek Boulevard, APN 326-32-051. (No documentation in packet). ITEMS REMOVED FROM THE CONSENT CALENDAR (above) 4. Approve the minutes from the May 3 City Council meeting. Lowenthal/James moved and seconded to approve the minutes with the following amendments: page 4, item number 14, 2nd paragraph should read, "The applicant's representative, Jimbo Schwalb"; page 5, item number 20, 1st paragraph should refer to opening remarks made by Greg Zlotnick, Board Director for the SCVWD; page 7, item number 23, I st paragraph change "suggestions to staff" to "direction to staff"; and page 8, item number 26, I st paragraph should read, "Council directed staff to notify the Planning Commission, and to come back to council for discussion." 7. Accept the Treasurer's Investment and Budget Report for March 2005. (This item was continued from 5/3/05). Wang/James moved and seconded to remove the "percentage of budget" information from the report, and moved that the trend analysis be expanded to explain all variations in revenue and expenditures. In addition, information shall be added to the budget summary report to denote salary and benefit savings from the selective hiring freeze in order to inform readers that the city is monitoring the revenue versus expenditure deficit and to denote one of the primary ways the city is dealing with the issue. The motion carried unanimously. May 17,2005 Cupertino City Council Cupertino Redevelopment Agency Page 4 PUBLIC HEARINGS 13. Conduct a public hearing to consider the Citv of Cupertino's Hazard Mitigation Strategies; review and approve the list of Hazard Mitigation Strategies to be included in the Association of Bay Area Government (ABAG) Hazard Mitigation Plan being submitted to the State of California and the Federal Emergency Management Agency (FEMA). Emergency Preparedness Coordinator Marsha Hovey reviewed the staff report. At 7:35 p.m., Mayor Kwok opened the public hearing. No speakers were heard, and Mayor K wok closed the public hearing. James/Sandoval moved and seconded to approve the listed strategies as recommended by staff, and directed staff to amend the language, if necessary, regarding the definition of active faults, and whether or not threats of wildfires, flooding, and landslides pose a large risk to the City. The motion carried unanimously. 14. Conduct a public hearing regarding the Blue Pheasant Restaurant, Application Nos. U- 2005-05, GPA-2005-02, Z-2005-03, and EA-2005-04, 22100 Stevens Creek Blvd., APN 357-10-007. (The Planning Commission recommends denial of all items, including the Negative Declaration): a) Consider adopting a Negative Declaration b) Consider a Use Permit for a restaurant, bar, and nightclub c) Consider adopting a resolution adopting a General Plan Amendment to change the land use designation from Parks to Commercial to accommodate an existing restaurant, bar and nightclub, Resolution No. 05-086 d) Consider the rezoning of a two-acre parcel from Public Park or Recreation (PR) to Planned Commercial (P-Com): e) First reading of Ordinance No. 1962: "An Ordinance of the City Council of the City of Cupertino Rezoning a Two-Acre Parcel From Public Park or Recreation (PR) to Planned Commercial (P-COM)." Community Development Director Steve Piasecki reviewed the staff report using PowerPoint slides, highlighting neighborhood issues of parking, noise, and mitigation steps proposed by the prospective new owner. Council discussed parking issues and the definition of closing time. Council asked staff to take into consideration all the uses of the parking lot when the time comes to bring a plan back to Council for re-striping. May 17,2005 Cupertino City Council Cupertino Redevelopment Agency Page 5 Mike Tsacres, applicant and prospective new owner, explained how the mitigation steps would be implemented and enforced to eliminate neighborhood concerns about parking and noise. At 8:11 p.m., Mayor Kwok opened the public hearing. The following individuals spoke in opposition to the application: Sunil Malkani, Clearwood Ct. Art Robertson, Oakdell PI. Marjan Kashvad, Phar Lap Dr. (distributed petition and "letter of concern" from residents) Albrecht Schoy, Phar Lap Dr. George Carapiet, Phar Lap Dr. John Chang, Oakdell PI. Marianne Klinkowski, Phar Lap Dr. Webster Meier, Byrne Ave. Their comments included the following: Concern about parking issues; broken bottles and other trash in the neighborhood; noise from the restaurant and in the neighborhood; safety; a public trust issue with the City wanting to rezone; no recourse after the zoning is approved. At 8 :31 Mayor K wok closed the public hearing. Council members comments included the following: The restaurant should be for the community; a nightclub doesn't belong in a residential neighborhood; let the courts decide the situation with the previous owners; stand by the voters to keep the land zoned for parks and recreation; closing the restaurant at midnight with restrictions is better than closing at 11 :00 p.m. without restrictions; the business isn't a problem, but don't want to rezone to commercial in a residential neighborhood; the parking spaces are not really being expanded, they are just being legitimized; wait until the General Plan is in place before any rezoning is done. James/Wang moved and seconded to deny the application. The motion carried unanimously. UNFINISHED BUSINESS 15. Approve the Community Special Events policy at the Civic Center Plaza. Parks and Recreation Director Therese Smith reviewed the staff report. City Attorney Charles Kilian summarized the pros and cons to having for-profit business use the space. May 17,2005 Cupertino City Council Cupertino Redevelopment Agency Page 6 Resident Dennis Whittaker talked about parking issues, and suggested tabling the issue for now until the condominiums are filled. Lowenthal/James moved and seconded to revise the language to limit the use to non- profit organizations, and to address library parking issues to ensure adequate parking when the library is open. Council also directed staff to notify residents ahead of time when festivals are occurring, and that there may be parking and traffic issues. The motion carried unanimously. NEW BUSINESS 16. Review and approve the amendment of the Blue Pheasant Lease. (No documentation in packet). This item was no longer necessary. 17. Review and approve changes to the Massage Ordinance and internal procedures to enhance communication during permit processing and recognize different modalities related to massage: a) Conduct the first reading of Ordinance No. 1963: "An Ordinance of the City Council of the City of Cupertino Amending Chapter Sections 9.06.110 B3 and 9.06.120 of the Cupertino Municipal Code relating to Massage Establishments and Services." Code Enforcement Officer Gary Kornahrens reviewed the staff report. The Deputy City Clerk read the title of Ordinance No. 1963. Lowenthal/James moved and seconded to read the ordinance by title only, and that the Deputy City Clerk's reading would constitute the first reading thereof. Council directed staff to have a back-up doctor available when Dr. Roth was unavailable. The motion carried unanimously. 18. Consider canceling the Julv 5 City Council meeting for lack of quorum. (No documentation in packet). WangfLowenthal moved and seconded to cancel the meeting of July 5 for lack of quorum. ORDINANCES - None May 17,2005 Cupertino City Council Cupertino Redevelopment Agency Page 7 STAFF REPORTS 19. Receive status report on General Fund Revenue and Expenditures. (No documentation in packet). Director of Administrative Services Carol Atwood reported the following: Sales tax revenue is $300,000 over budget projection mostly due to Apple Computer, and the other sales tax producers are flat; property tax is at budget; transient occupancy tax is up 7.9%; utility user tax is down; franchise fees are at budget; business licenses and construction taxes are consistent with last year; the City's investment portfolio interest income is down due to the library project; one of the Oak Valley lots is in escrow which will bring in $1.2 million, and all 3 lots will be on the market shortly; operating expenses are below budget mostly due to vacancies in departments; and park in lieu fees are at budget. 20. The next General Plan hearing is scheduled for May 24, at 6:45 p.m. in the City Council Chamber of the Cupertino Community Hall. At its May 10 meeting, the Planning Commission discussed the remaining General Plan schedule. (Staff report included in packet). Community Development Director Steve Piasecki reviewed the staff report. Planning Commissioner Marty Miller said that the commission has been working actively for 4 months, holding extra meetings, but a full calendar of new applications and being short-staffed in the Planning Department has slowed them down. He asked Council to give the commission enough time to put out a quality product. The following individuals spoke in opposition to moving too quickly through the schedule to adopt the General Plan: Ned Britt, Peppertree Ln. Rusty Britt, Peppertree Ln. Dennis Whittaker, resident Tom Hugunin, La Roda Ct. Their comments included: a brief history of the General Plan Task Force; concern over the minority report having equal weight with the majority report; urging Council not to accept the staff version; the whole process should be reviewed; wait until after the November election to formulate a new General Plan; the plan is now a 20-year plan rather than a 10-year and the Planning Commission should have time to do its job right; greater emphasis should be placed on retail instead of housing because retail brings in more money for the City. Steve Piasecki clarified the statement of the General Plan being a 20-year plan. He said that the General Plan provides a 20-year horizon, but that the law says to review the General Plan every 10 years. May 17,2005 Cupertino City Council Cupertino Redevelopment Agency Page 8 Sandoval/James moved and seconded to give the Planning Commission an end date of June 28, and directed staff to provide Council with background information at its July 19 meeting. Kris Wang offered a friendly amendment to have the Planning Commission finish its discussion before July 19 and to have the Council start its introduction on July 19. Sandoval did not accept the amendment. Mayor K wok seconded the amendment. The motion to accept the amendment failed. Council voted on the original motion for an end date of June 28, with background information to be given to the City Council on July 19. Vote: Ayes: Lowenthal, Sandoval, James. Noes: Kwok and Wang. Absent: None. COUNCIL REPORTS Council members highlighted the activities of their committees and various community events. ADJOURNMENT At 11:13 p.m. the meeting was adjourned to Thursday, May 26 at 5:00 p.m. for Teen Commission interviews, and Fine Arts Commission unscheduled vacancy interviews, City Hall Conference Room A, 10300 Torre Avenue. ~Jj- Grace Schmidt, Deputy City Clerk For more information: Staff reports, backup materials, and items distributed at the meeting are available for review at the City Clerk's Office, 777-3223, and also on the Internet at www.cupertino.org.Click on Agendas & Minutes/ City Council/ Packets. Most Council meetings are shown live on Cable Channel 26, and are available at your convenience from our web site. Visit www.cupertino.org and click on Watch Meetings. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364.