CC 03-03-2020 (Special)
APPROVED MINUTES
CUPERTINO CITY COUNCIL
Tuesday, March 3, 2020
SPECIAL CITY COUNCIL MEETING
At 5:30 p.m. Mayor Steven Scharf called the Special City Council meeting to order in the
Cupertino City Hall Conference Room A, 10300 Torre Avenue.
ROLL CALL
Present: Mayor Steven Scharf, Vice Mayor Darcy Paul, and Councilmembers Liang Chao, Rod
Sinks, and Jon Robert Willey. Absent: None
CLOSED SESSION
1. Subject: Public Employee Performance Evaluation (Govʹt Code Section 54957). Title: City
Attorney.
In open session, Mayor Scharf announced that Council met in closed session and
conducted the annual evaluation of the City Attorney. No reportable action was taken.
2. Subject: Conference with Labor Negotiators (Govʹt Code section 54957.6). Agency
designated representatives: Mayor Steven Scharf and Vice Mayor Darcy Paul.
Unrepresented employee: City Attorney.
In open session, Mayor Scharf announced that Council met in closed session and gave
direction to the labor negotiators regarding compensation for the City Attorney. No
reportable action was taken.
ADJOURNMENT
REGULAR CITY COUNCIL MEETING
PLEDGE OF ALLEGIANCE
City Council Minutes March 3, 2020
At 6:45 p.m. Mayor Steven Scharf called the Regular City Council meeting to order in the
Cupertino Community Hall Council Chambers, 10350 Torre Avenue and led the Pledge of
Allegiance.
ROLL CALL
Present: Mayor Steven Scharf, Vice Mayor Darcy Paul, and Councilmembers Liang Chao, Rod
Sinks, and Jon Robert Willey. Absent: None
CEREMONIAL MATTERS AND PRESENTATIONS
1. Subject: Recognition of Fine Arts Commission Young Artists Award winners.
Recommended Action: Present awards to Fine Arts Commission Young Artist Award
winners.
Fine Arts Commission Chair Rajeswari Mahalingam and Vice Chair Sudha Kasamsetty
introduced the item.
Mayor Scharf presented the awards to the Fine Arts Commission Young Artist Award
winners.
2. Subject: Proclamation to Santa Clara County Librarian Nancy Howe upon her
retirement and recognizing her dedicated service to the community.
Recommended Action: Present proclamation to Santa Clara County Librarian Nancy
Howe upon her retirement and recognizing her dedicated service to the community.
Deputy County Librarian Jennifer Weeks and Community Librarian Clare Varesio
accepted the proclamation on behalf of Nancy Howe.
Mayor Scharf presented the proclamation honoring Santa Clara County Librarian Nancy
Howe upon her retirement and recognizing her dedicated service to the community.
3. Subject: Proclamation recognizing March as ʺRed Cross Month.ʺ
Recommended Action: Present proclamation recognizing March as ʺRed Cross Month.ʺ
Stuart Chessen and Judy Halchin accepted the proclamation on behalf of the Red Cross.
Mayor Scharf presented the proclamation recognizing March as ʺRed Cross Month.ʺ
City Council Minutes March 3, 2020
4. Subject: Proclamation to Carl Valdez for being awarded Superintendent of the Year by
the Maintenance Superintendents Association (MSA) of the San Francisco Bay Area.
Recommended Action: Present proclamation to Carl Valdez for being awarded
Superintendent of the Year by the Maintenance Superintendents Association (MSA) of
the San Francisco Bay Area.
Director of Public Works Roger Lee introduced the item.
Mayor Scharf presented the proclamation to Carl Valdez for being awarded
Superintendent of the Year by the Maintenance Superintendents Association (MSA) of
the San Francisco Bay Area.
POSTPONEMENTS – None
ORAL COMMUNICATIONS
Larry Dean, on behalf of Walk‐Bike Cupertino, talked about Byrne Avenue and McClellan Road
infrastructure improvements, and auto/pedestrian/bicycle crash data.
Jennifer Griffin talked about her voting choices based on recent housing bills, democracy in
California, Oregon, and Washington, and local control.
Connie Cunningham (Cupertino resident, representing self), talked about the Regional Housing
Needs Assessment (RHNA)/Housing Element progress report, no new homes or permits,
multifamily housing needs, and friendly rules.
Yuwen Su (Cupertino resident), talked about negotiations with Sandhill, working with residents
for a new Vallco plan, and an outreach process designed for community concerns.
Minna (Cupertino resident, representing self), talked about a new plan for Vallco, flaws in prior
survey and outreach, a new community outreach plan, and listening to residents.
Charlene Lee (Cupertino resident), talked about the police report for her arrest at Monta Vista
High School and requested an independent police report audit.
Qin Pan (Cupertino resident, representing self), talked about Corona virus preventatives, a
Vallco outreach program, and surveying residents on options for development.
City Council Minutes March 3, 2020
City Manager Deborah Feng gave an update on the outreach plan for a Vallco Specific Plan or
an alternate plan which would occur within the next couple of months and which would come
back to Council for direction before going to the public.
Rhoda Fry (Cupertino resident), talked about Lehigh Quarry’s expansion plan and application
for a rock plant, traffic concerns, and a land swap with Mid‐Pen Regional Open Space. (She
provided written comments).
REPORTS BY COUNCIL AND STAFF (10 minutes)
5. Subject: Report on Committee assignments
Recommended Action: Report on Committee assignments
Councilmembers highlighted the activities of their various committees.
CONSENT CALENDAR
Paul moved and Scharf seconded to approve items on the Consent Calendar as presented.
Ayes: Scharf, Paul, Chao, Sinks, and Willey. Noes: None. Abstain: None. Absent: None.
6. Subject: Approve the February 10 City Council minutes
Recommended Action: Approve the February 10 City Council minutes
7. Subject: Approve the February 18 City Council minutes
Recommended Action: Approve the February 18 City Council minutes
Written communications for this item included amended minutes pages 6 – 7.
8. Subject: Treasurer’s Investment Report for period ending December 31, 2019
Recommended Action: Accept staff report and provide recommendations.
9. Subject: Application for Alcohol Beverage License for Pizza My Heart, Inc (dba Pizza
My Heart), 19409 Stevens Creek Boulevard, Suite 140
Recommended Action: Recommend approval to the California Department of Alcoholic
Beverage Control of the application for Alcohol Beverage License for Pizza My Heart,
Inc (dba Pizza My Heart), 19409 Stevens Creek Boulevard, Suite 140
City Council Minutes March 3, 2020
SECOND READING OF ORDINANCES
10. Subject: Second reading for Municipal Code Amendments to Chapter 19.112 ‐ Accessory
Dwelling Units; Chapter 19.20 ‐ Permitted, Conditional and Excluded Uses in
Agricultural and Residential Zones; and Chapter 19.08 ‐ Definitions; for Clarifications,
and Consistency with recently adopted State Bills (Application No.
MCA‐2018‐04; Applicant: City of Cupertino; Location: City‐wide).
Recommended Action: Conduct the second reading and enact Ordinance No. 20‐2199:
“An Ordinance of the City Council of the City of Cupertino amending Chapter 19.112,
Accessory Dwelling Units; Chapter 19.20 ‐ Permitted, Conditional and Excluded Uses in
Agricultural and Residential Zones; and Chapter 19.08 Definitions.”
Written communications for this item included emails to Council.
Mayor Scharf opened public comment and the following people spoke.
Jennifer Griffin spoke about housing bills, Accessory Dwelling Units (ADU), 4‐foot
setbacks, challenging local authority, property taxes on ADUs, school impact fees.
Mayor Scharf closed public comment.
Council made comments and asked questions.
City Clerk Kirsten Squarcia read the title of Ordinance No. 20‐2199: “An Ordinance of
the City Council of the City of Cupertino amending Chapter 19.112, Accessory Dwelling
Units; Chapter 19.20 ‐ Permitted, Conditional and Excluded Uses in Agricultural and
Residential Zones; and Chapter 19.08 Definitions.”
Sinks moved and Willey seconded to read Ordinance No. 20‐2199 by title only and that
the City Clerk’s reading would constitute the second reading thereof. Ayes: Scharf, Paul,
Chao, Sinks, and Willey. Noes: None. Abstain: None. Absent: None. Recuse: None.
Sinks moved and Willey seconded to enact Ordinance No. 20‐2199 by title only and that
the City Clerk’s reading would constitute the second reading thereof. Ayes: Scharf, Paul,
Chao, Sinks, and Willey. Noes: None. Abstain: None. Absent: None. Recuse: None.
City Council Minutes March 3, 2020
PUBLIC HEARINGS
11. Subject: Consider approving a new 155‐room seven‐story hotel (24‐hour operations) with
underground parking, event meeting rooms, a ground floor restaurant with
separate bar, and a rooftop lounge with separate bar by demolishing a commercial
building with an area of 8,323 sq. ft. City Actions would include General Plan
Amendments to consider amending Table LU‐1 by increasing the development
allocation of hotel rooms to 155 hotel rooms in the Homestead Special Area and Figure
LU‐2 and Policy LU‐23.2 adding Figure LU‐5 to allow increased heights and reduced
building plane within the North De Anza Gateway specific to this development. City
permits would include: Development, Architectural and Site Approval, and Use Permits.
A Development Agreement is also proposed; (Application No(s): GPA‐2018‐01, DP‐2018‐
01, ASA‐2018‐02, DA‐2018‐01, U‐2018‐02, EA‐2018‐03; Applicant(s): Sherly Kwok (De
Anza Properties); Location: 10931 N De Anza Blvd.; APN #326‐10‐061 (Continued from
January 21, 2020)
Recommended Action: Conduct the public hearing and find:
That the City Council conduct a public hearing, consider the Planning Commission’s
recommendation, and:
1. Adopt Resolution No. 20‐005 adopting a Mitigated Negative Declaration, mitigation
measures, and a Mitigation Monitoring and Reporting Program (Attachment A).
2. Adopt Resolution No. 20‐006 approving a General Plan Amendment (Attachment
B).
3. Adopt Resolution No. 20‐007 approving a Development Permit (Attachment C).
4. Adopt Resolution No. 20‐008 approving an Architectural and Site Approval Permit
(Attachment D).
5. Adopt Resolution No. 20‐009 approving a Use Permit (Attachment E).
Introduce and waive the first reading of Ordinance No. 20‐2195: “An Ordinance of the
City Council of the City of Cupertino Approving a Development Agreement for the
Development of a New 7‐Story, 155 Room Hotel With Associated Site and Landscaping
Improvements Located at 10931 N. De Anza Blvd. (APN #326‐10‐061)” (Attachment F).
Written communications for this item included a presentation and emails to Council.
Director of Community Development Ben Fu introduced the item and Senior Planner
Gian Martire gave a presentation.
Mayor Scharf opened the public hearing and the following people spoke.
City Council Minutes March 3, 2020
Paige Fennie, on behalf of Laborersʹ International Union of North America, Local Union
270, said the mitigated negative declaration is inadequate and requires an environmental
impact report. (She submitted written comments).
Lisa Warren said there are community survey concerns which included increased height,
reduced the building plane, proximity to street and no trees, respecting bird safety, and
community benefit inequities.
Jennifer Griffin said the project needs street trees are needed along North/South De Anza
Blvd., and a 35‐foot setback on Stevens Creek Blvd. is needed, and heights should be kept
down.
Council asked questions and made comments.
Project applicant John Vidovich answered questions and architect Bill Winkleman gave
a presentation.
Paul moved and Sinks seconded to:
1. Adopt Resolution No. 20‐005 adopting a Mitigated Negative Declaration, mitigation
measures, and a Mitigation Monitoring and Reporting Program.
2. Adopt Resolution No. 20‐006 approving a General Plan Amendment.
3. Adopt Resolution No. 20‐007 approving a Development Permit.
4. Adopt Resolution No. 20‐008 approving an Architectural and Site Approval Permit.
5. Adopt Resolution No. 20‐009 approving a Use Permit.
Sinks made a friendly amendment to the Development Permit to add conditions of
approval for dark sky and bird safe design guidelines, and the resins used for interior
finish systems are no‐added formaldehyde (NAF) or ultra‐low‐emitting formaldehyde
(ULEF) and meet California Air Resource Board’s (CARB) Regulation 11 Rule 18
standards (Paul accepted the friendly amendment).
Chao made a friendly amendment to the General Plan Amendment to specify in each
location where the General Plan amendments are made that the City will reconsider hotel
allocation, height limit, or slope/building plane if building permits are not pulled by
March 3, 2025 (Paul accepted the friendly amendment).
Chao made a second friendly amendment to the Development Agreement to request the
$10,000 per room but $1 million for the project benefits (Paul did not accept the
friendly amendment).
City Council Minutes March 3, 2020
The motion carried as amended with Willey voting no.
City Clerk Kirsten Squarcia read the title of Ordinance No. 20‐2195: “An Ordinance of
the City Council of the City of Cupertino Approving a Development Agreement for the
Development of a New 7‐Story, 155 Room Hotel with Associated Site and Landscaping
Improvements Located at 10931 N. De Anza Blvd. (APN #326‐10‐061)”
Paul moved and Scharf seconded to read Ordinance No. 20‐2195 by title only and that
the City Clerk’s reading would constitute the first reading thereof with the change to the
community users of the shuttle system as discussed, with the clarification that he did
not accept Chao’s request for $1 million dollars for the payment.
No vote was taken.
Council recessed from 9:46 p.m. to 9:52 p.m.
Sinks moved and Chao seconded a substitute motion to direct the Community
Development Director to renegotiate the development agreement for the amount of
money offered to the City’s community benefits to $1 million, and clarification that the
shuttle transportation price for residents will be at 50% of the cost for guests. The motion
carried with Scharf and Paul voting no.
Council did not conduct the first reading of Ordinance No. 20‐2195.
The City Attorney said the item will come back to Council to determine whether to
approve the development agreement as proposed.
ORDINANCES AND ACTION ITEMS
12. Subject: Approve the Mid‐Year Financial Report and budget adjustments for Fiscal
Year 2019‐20.
Recommended Action: 1. Accept the City Manager’s Mid‐Year Financial Report for FY
2019‐20.
2. Approve Budget Modification 1920‐076 for Mid‐Year adjustments as described in the
Mid‐Year Financial Report.
3. Adopt Resolution No. 20‐026 approving Mid‐Year budget adjustments.
Written communications for this item included emails to Council and a presentation.
City Council Minutes March 3, 2020
Director of Administrative Services Kristina Alfaro and Finance Manager Zach Korach
gave a presentation.
Council asked questions and made comments.
Mayor Scharf opened public comment and the following people spoke.
Jennifer Griffin spoke about the current transit occupancy tax (TOT) percentage as an
additional source of revenue.
Mayor Scharf closed public comment.
Paul moved and Chao seconded to:
1. Accept the City Manager’s Mid‐Year Financial Report for FY 2019‐20 except for the
$1.4 million allocated for the Sports Center.
2. Approve Budget Modification 1920‐076 for Mid‐Year adjustments as described in the
Mid‐Year Financial Report.
3. Adopt Resolution No. 20‐026 approving Mid‐Year budget adjustments except for the
$1.4 million allocated for the Sports Center.
The motion carried with Sinks voting no.
13. Subject: General Plan Annual Report, and suggestions to further clarify General Plan
Policies and Strategies
Recommended Action: That the City Council:
1. Receive the General Plan Annual Review Report (Attachment A).
2. Authorize the City Manager to incorporate the list of General Plan amendment
suggestions made by individual Planning Commissioners (Attachment B) into the
previous list of suggested General Plan amendments with the General Plan and Objective
Standards 2019/2020 Work Program Item.
Written communications for this item included a presentation.
Community Development Director Ben Fu introduced the item and Planning Manager
Piu Ghosh gave a presentation.
Mayor Scharf opened public comment and the following individuals spoke.
Jennifer Griffin asked Council to protect Heart of the City, keep current zoning, preserve
local control and look at funding to protect the City.
City Council Minutes March 3, 2020
Mayor Scharf closed public comment.
Sinks moved and Scharf seconded to:
1. Receive the General Plan Annual Review Report.
2. Authorize the City Manager to incorporate the list of General Plan amendment
suggestions made by individual Planning Commissioners into the previous list of
suggested General Plan amendments with the General Plan and Objective Standards
2019/2020 Work Program Item, with the stipulation that the City Manager
incorporates the list of suggestions into the Objective Standards Work Program
process.
Sinks moved and Scharf seconded to call the question. The motion to call the question
failed for lack of a two‐thirds majority.
Councilmember Sinks left the meeting at 11:31 p.m.
The motion to receive the General Plan Annual Review Report and authorize the
City Manager to incorporate the list as stipulated carried with Sinks absent.
ORAL COMMUNICATIONS ‐ CONTINUED (As necessary)
COUNCIL AND STAFF COMMENTS AND FUTURE AGENDA ITEMS
Mayor Scharf added the following future agenda items:
‐ Proposed De Anza Hotel development agreement
‐ Transient occupancy tax (TOT) increase
‐ Amend municipal code regarding City Attorney time and controlling costs
ADJOURNMENT
At 11:44 p.m., Mayor Scharf adjourned the meeting.
_____________________________
Kirsten Squarcia, City Clerk