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04 draft minutes CUPERJINO DRAFf MINUTES CUPERTINO CITY COUNCIL Regular Meeting Tuesday, February 7,2006 PLEDGE OF ALLEGIANCE At 6:45 p.m. Mayor Richard Lowenthal called the meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California, and led the Pledge of Allegiance. ROLL CALL Present: Mayor Richard Lowenthal, Vice-Mayor Kris Wang, and Council members Patrick Kwok, Orrin Mahoney, and Dolly Sandoval. Absent: none. CEREMONIAL MATTERS - PRESENTATIONS I. Proclamation presented to Carlos Corona. a long-term Cupertino businessman, on the occasion of his retirement. (No documentation in packet). Councilmember Dolly Sandoval said that her father ran a Chevron station across the street from Mr. Corona's Mobile station, and talked about some of the memories her father had of that time. Mayor Lowenthal presented the proclamation to Mr. Corona. POSTPONEMENTS Council concurred to continue item number 14, the vacation of an air rights easement for Vallco, to March 7. Kwok moved to continue item Nos. 18 and 19 (Valko ordinance Nos. 1975 and 1976) to February 27. Wang seconded for purposes of discussion. Kwok explained that the three issues of concern to him were the dividing wall between Vallco and the neighborhood to provide maximum protection to the neighbors, further clarification of some issues related to school impacts, and that the CC&R's were not yet drafted. The Council members discussed whether to continue the item at this time, or to act on it or continue it later on the agenda. .Lf-I February 7, 2006 Cupertino City Council Page 2 Kwok amended his motion, so that the decision whether to continue the item would be deferred until later in the evening, prior to item 18. Wang seconded the amendment, and the motion carried unanimously. WRITTEN COMMUNICATIONS The City Clerk announced that three items had been received related to Item No. 15, the Toll Brothers Project: I. An email from the Cupertino Senior Citizens Commission saying that they had rnoved 3- I to endorse the senior housing element in Alternative A of the Toll Brothers Calabazas Place project. 2. A letter from the Fremont Union High School District that expresses concern about the capital cost of accommodating the added high school students project for the Toll Brothers Project. 3. A letter from the Toll Brothers addressing objections that were raised in the letter of February 2, 2006, frorn the Fremont Union High School District ORAL COMMUNICATIONS Janice Ishii complained of noise from the nighttime construction at Val1co, and said she had called the hotline this morning at 5:34. Administrative Services Director Carol Atwood explained that she had been monitoring the complaints, and there had been 5 within the last two weeks. Vallco management has been contacted about the problem, and City staff would meet with the noise consultant in two days to see what steps could be taken immediately. Atwood said it was very important that residents call the hotline at 446-3027 about noise complaints so the problem can be identified immediately, and the hotline calls are being recorded to insure customer service. Cassie Mras said she was representing the Lynbrook High School Future Business Leaders of America Club. She discussed a community education event about earthquake preparedness, and invited the audience to take a flyer from the lobby. Dennis Whittaker said someone stated at a previous meeting that the City is mandated to build 2200 homes, when the actual requirement is that the City must only plan for those homes, not build them. Ba-Shen Sywe objected to the piecemeal development of the east side of the City and asked City Council to hold a City-wide public hearing about the thousand condos that will be built there. Lowenthal said he agreed it would be good for the community to address the issue again, but it should be noted that those units were discussed during the last three years with the community task force and during the General Plan review. '-f.z February 7,2006 Cupertino City Council Page 3 Shuyi Chen said that the last election showed that a high percentage of Cupertino residents don't want high-density housing, and the Council should respect this and slow down and not build the condominiums. Shilpa Joshi said she was also bothered by noise from Vallco construction, but had not complained. She also believed that the school district's student generation numbers were inaccurate. Nelson D'Souza suggested some rules for presentations at Council meetings. He said that the citizens should be allowed to speak after the staff and the developer so that they can have all the information and use their three minutes wisely. D'Souza said he was also bothered by the nighttime construction noise at Vallco, and Council should slow down on residential development. CONSENT CALENDAR Sandoval/Kwok moved and seconded to approve the items on the Consent Calendar as recommended with the exception of No.3, which was pulled for discussion. Ayes: Kwok, Lowenthal, Mahoney, Sandoval, and Wang. Noes: None. 2. Approve the minutes from the January 17 City Council meeting. 4. Adopt a resolution accepting Payroll for January 27, Resolution No. 06-030. 5. Accept the Treasurer's Investment Report for December 2005. 6. Adopt a resolution accepting the Treasurer/Deputv Treasurer appointment, Resolution No. 06-031. 7. Approve the City Investment Policv for 2006. 8. Accept municipal improvements for Amelia Investment. LP (Curb and Gutter, Driveway, Sidewalk, Landscaping), 10079 Saich Way, APN 357-05-046. (No documentation in packet). 9. Adopt a resolution approving an improvement agreement with Victor Michael Mandella and Maryjane Mandella, 20128 Stevens Creek Boulevard, APN 369-03-001 (Curb and Gutter, Driveway, Sidewalk, Grading), Resolution No. 06-032. 10. Appoint Planning Commissioner Martv Miller to be an Environmental Review Committee representative. II. Approve an application for an Alcoholic Beverage License for Wahoo's Fish Taco, 19626 Stevens Creek Boulevard (Marketplace). 4·3 February 7,2006 Cupertino City Council Page 4 ITEMS REMOVED FROM THE CONSENT CALENDAR (above) 3. Adopt resolutions accepting Accounts Pavable for January 13, 20, and 27, Resolution Nos. 06-027 through 06-029. Staff explained that the noise mitigation item was for pump noise mitigation, and not associated with the Vallco project; and that payment for the Compaq/Toll project is the cost of the environmental consultant, which will be reimbursed by the application. Wang/Sandoval moved and seconded to adopt the resolutions. The motion carried unanimously. PUBLIC HEARINGS 12. Consider adopting a resolution adopting a Disadvantaged Business Entemrises Program for federally funded projects and establishing a Disadvantaged Business Enterprise Participation Goal of 18.8% for the Federal Fiscal-Year 2005/06, Resolution No. 06-033. (This item was continued from Jan. 17). Assistant Director of Public Works Glen Goepfert reviewed the staff report. Kwok/Sandoval moved and seconded to adopt Resolution No. 06-033. The motion carried unanimously. 13. Consider an appeal of the Design Review Committee's decision to deny an addition that exceeds the allowable floor area ratio in the Oak Valley Planned Development, Application No. DIR-2005-20, Horst Von Bloes (Fry residence), 21161 Canyon Oak Way, APN 342-59-008. (This item was continued from Jan. 3). Senior Planner Aki Honda reviewed the staff report. Fred Fry, applicant, said he had spoken to his adjacent neighbors about the addition of a sunroom and they had no objections. He said that the addition would not be visible to people on Sierra Street, and if it was visible from other areas he could mitigate that with trees. He said the City now has responsibility to enforce the CC&R's, that regulations are important, but they rnust be reasonable, and it would be unreasonable for him to get approval from all 150 neighbors. He said this project is a type of enclosed patio and is not designed to increase the living space. Jennifer Griffin said that the property owner should enjoy full use of his property, but in this area of the City, the homes were built to a maximum floor ratio, and allowing more space would be a dangerous precedent. Horst Von Bloes, representing the Frys, confirmed that this would not be habitable space. Wang/Kwok moved and seconded to deny the appeal and uphold the Planning Commission's decision. The motion carried unanimously. 1.(-4 February 7,2006 Cupertino City Council Page 5 RECESS Council was in recess from 8: I 0 p.m. to 8: 15 p.m. 14. Consider adopting a resolution ordering a vacation of an air rights easement (Vallco) for transit parking and station facilities within the City of Cupertino. (This item will be continued to March 7). (No documentation in packet). Council concurred to continue this item to March 7. 15. Consider Application Nos: U-2005-15, EXC-2005-18, TM-2005-04, Z-2005-04 (EA- 2005-17), Kelly Snider (Toll Brothers), Stevens Creek Blvd. at Finch Avenue, APN No. 316-20-074,316-20-078,316-20-079,316-20-085: a) Mitigated Negative Declaration b) Use Permit for a mixed-use development consisting of approximately 113,000 square feet of commercial shopping center, up to 399 residential units and a 3.5- acre public park c) Exceptions from the Heart of the City plan to allow for an average 35-foot front setback along Stevens Creek Boulevard for the commercial shopping center d) Tentative Map to subdivide 4 parcels (approximately 26-acres) into 6 parcels for a residential and commercial development consisting of approximately 113,000 square feet of retail shopping center, up to 399 residential units and a 3.5-acre public park e) Rezoning to allow for a commercial and residential development consisting of approximately 113,000 square feet of commercial shopping center, up to 399 residential units and a 3.5-acre public park First reading of Ordinance No. 1977: "An Ordinance of the City Council of the City of Cupertino Rezoning of an 32.58 Gross Acre Parcel From Planned Industrial Zone, P(MP), to Planned Residential and Commercial, P(Res, Com), and Public Park, PR, Located at North of Stevens Creek Boulevard and South of 1- 280 Between Tantau Avenue and Finch Avenue." Community Development Director Steve Piasecki reviewed the staff report. Kelly Snider, representing Toll Brothers, showed a simulated three-dimensional drive- through of the project. She discussed the community benefits of the project which include: . 3.5 acres of improved public parkland; the value of land plus improvements is estimated to be $6.45 million 4-5 February 7,2006 Cupertino City Council Page 6 · Approximately $320,000 of new revenue to the City's general fund from sales tax and property tax revenue $100,000 of new public art, either at the park or gateway 20% of the units will be for BMR housing (although the requirement is 15%). She said their preference is for senior project option A to provide housing for low- and very-low-income seniors A new east gateway to Cupertino New pedestrian and bicycle trails I acre of private open space to be maintained by the developer, plus a private recreation center with swimming pool and clubhouse A public community room which would be available without charge New shopping and restaurants totaling more than 1,000 square feet Public benefits of more than $25 million · · · · · · · · Snider reviewed the steps the applicant had taken to respond to public input, including a public park, adding more parking spaces, reducing the height of the east terrace, having a minimum 30-ft. setback along Stevens Creek Blvd., shifting units so that no building exceeds 35 dwelling units per acre, and acquiring retail center tenants that will cornplement Vallco's revitalization. Jack Bariteau discussed the history of the project, and said that this new shopping center would provide a number of opportunities for public benefit, not only in terms of additional retail and variety of tenants, but also by creating a major public park. Bill Roberts, Director of Real Estate for Hewlett Packard, assured Council of his company's strong support for the project and said the quality of the development would reflect favorably upon HP, as well as provide the kind of community needed by young professionals. He explained that they are instead making their employees more mobile by sharing space on campus, creating opportunities for employees to work at home or while traveling, etc., and that makes it possible to use this land for something other than industrial purposes. Ken Rodriguez, architect for the retail portion of the development, explained that the parking lot is a combination of textured concrete and textured paving stones. Discussion followed regarding the appropriate size and configuration of the park site, and Kelly Snider answered questions about setbacks, parking, and square footage of the residential units. Geoffrey Kiehl, Chief Business Officer and Associate Superintendent of the Fremont Union High School District (FUHSD), reviewed the letter from the school district. He said that there is a lack of funds coming from developer fees on the capital side of the project. On the operations side, there is excess revenue of $10,000 per student per year. He said that those additional funds help to pay for staffing etc. but cannot be redirected for use on the facilities side. I.(-~ February 7, 2006 Cupertino City Council Page 7 The following people spoke in favor of the project. John Giavanola, past president of the Rotary Club Jane Vaughan, representing the adjacent Menlo Equities project Marilyn Howard Charlie Ahern Roberta Hollimon Stuart Chessen Allen Berfield Anne Ng, sierra club member Joe Alfaro pres of DeAnza youth soccer league Steve Andrews Carl Guardino, CEO of the Silicon Valley Leadership Group. Shiloh Ballard, representing the Housing Action Coalition Commission Christine Kennedy Pierce, member of the Cupertino Senior Commission Beverly Bryant, Executive Director of the Southern Division of the Homebuilders Association Their comments included: · The need for a variety of the housing options in the cornmunity, and especially senior housing · Appreciate that the park and the residential units are conveniently adjacent to retail and grocery services · Silicon Valley Leadership Group surveys show the top one concern of both employers and employees is the need for housing and; there is a need to accommodate young tech workers or they will be lost to him and other communities · The project is one of excellent quality and will be an asset to the east side of the community as well as provide a new gateway and a community meeting room · School management is confident that the number of students generated by the project can be effectively managed · Encourage green building principals in both design and construction · Consider a community garden in the public park and in private open space Jennifer Griffin showed photographs of some existing trees and asked that special consideration be given to their survival. She also suggested that the Calabazas Creek not have any permanent buildings put over it in case the City wishes to make bring it back to ground level in the future. She noted some trees that should be replaced, and others that should be especially protected. Al De Ridder said a lot of the project looked good but he had grave concerns about diagonal parking on Finch taking up too much room. He said the density should be reduced and the parking taken off of the streets. 4-7 February 7, 2006 Cupertino City Council Page 8 The following people spoke in opposition to the project: Michael Greenfest Dennis Whittaker Julie Bay Shilpa Joshi Nelson D'Souza Keith Murphy Tom Hugunin Their comments included: · The student generation numbers are skewed or unrealistic · HP should donate the entire area to the City and write the donation off on their taxes · Density and height are too much; Council should slow plans for housing · Not enough park land is being provided for the community on that side of town · There should be a comprehensive impact study done on the thousands of condos being approved in the community, and the resultant impacts on schools, traffic, and the environment · The community puts a high value on open space; so don't convert industrial uses to residential and keep this project low density · Don't set a precedent by allowing a smaller setback · There is inadequate covered parking for the senior development; consider providing extra bedrooms for caretakers · Council member Mahoney should abstain from voting because he is a consultant for Hewlett Packard Orrin Mahoney said that because of his employment with Hewlett Packard, he requested a legal opinion from the Fair Political Practices Commission (FPPC) regarding his ability to vote on this project. The FPPC opinion was that Mahoney could participate because his employment was through a temporary agency and this project would have no direct financial impact. The public hearing was closed, and Council was in recess from 10:30 p.m. to 10:40 p.m. The applicants answered Council questions related to existing senior housing in the community; the feasibility of changing the location of senior housing as proposed on this site; the feasibility of lowering the height of some of the residential units that are close to the street; alternative park locations and sizes; and the feasibility of using some of the money earmarked for parks at this site to purchase the San Jose Water Company land which could be swapped or used to purchase a park for the Rancho Rinconada area. Dolly Sandoval said that bike racks should be integrated into the entire development; she liked the cornmunity garden idea and the suggestion for a historical theme to the park; "green" buildings and sustainability should be emphasized, and restaurants should recycle their plastic items; retail delivery should begin later than 7 a.m. on Sundays; and the developer should be asked to help out with the school's one-time loss of$411,000. 4-3 February 7, 2006 Cupertino City Council Page 9 Kris Wang was opposed to converting this industrial site to housing; felt that the project location treated seniors as second-rate citizens; disagreed with the financial estimates; and wanted another look at school enrollment issues. She said that 163 units is the most housing she could support on this site. Patrick Kwok listed concerns about using public land for parking credits; that the density of the project was too high; wouldn't support an exemption for a 30-foot setback; insisted upon only 3 levels on the road frontage; and was looking for $1 million -$2 million to offset school impacts. Orrin Mahoney said that conceptually this is the right project for the area; agreed that the park spaces should be made contiguous; would encourage voluntary solutions to address concerns about school impacts; was receptive to lowering the number of units but not as low as 163; and this location is a good place for on-street parking to slow down traffic. Richard Lowenthal said he thought the appropriate number of units was 300 market rate units and 80 senior units, especially because those 80 have no school impacts; he liked the idea of a shuttle or some other transportation solution for the senior development; thought the park size should be at least 3.5 acres; he liked the suggested on-street parking green building standards; the trees should be protected; and the CC&R's should notify future residents that there will be a trail on Calabazas Creek some day. Sandoval said in order to make some progress on the discussion, she wanted to take action on the zoning portion only. She moved to approve agenda item 15 (e), the rezoning, to allow for a commercial and residential development consisting of approximately 113,000 square feet of commercial shopping center, up to 380 residential units and a 3.5-acre public park. Orrin Mahoney seconded the motion, and offered an amendment that 80 of those units be designated for senior housing. Sandoval accepted the amendment. Kwok offered an amendrnent to allow up to 360 residential units, of which 80 units are senior housing. Wang seconded, and the motion failed with Sandoval, Lowenthal, and Mahoney voting no. A vote was taken on the main motion, to allow up to 380 units of which 80 units will be senior housing. The motion carried with Wang and Kwok voting no. The City Clerk read the title of the ordinance No. 1977, rezoning the 32.58 gross acre parcel. Sandoval/Mahoney moved and seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the first reading thereof. Ayes: Lowenthal, Mahoney, and Sandoval. Noes: Kwok and Wang. Sandoval suggested that another item for consideration in the use permit would be to require the future homeowners association to purchase annual transit passes for future residents. 4-q February 7,2006 Cupertino City Council Page 10 Community Development Director Steve Piasecki reviewed some of the other items that had been discussed during the meeting, which Council may wish to require as part of the use permit, and they included: · Encourage "green" building standards · Senior housing can be concentrated at north end · Allow a 3 to 4 story offset, and possibly consider an all 3-story section on the east terrace · Ifunits must be relocated to the villa site, provide direction as to whether there should be 3-story villas on Vallco parkway? · The "panhandle" section may also be an appropriate place for some units Kwok and Wang moved and seconded to continue the remaining items to March 21. Kwok offered a substitute motion to continue the ordinance to March 21, and to remand the remaining items back to the Planning Commission and the Parks and Recreation for a report back to the City Council on March 21. Mahoney seconded, and the motion carried 4-1 with Sandoval voting no. UNFINISHED BUSINESS - None NEW BUSINESS Sandoval/Mahoney moved and seconded to hold a meeting on February 27 at 5:00 and to continue items 17, 18, 19, and 20 to that agenda. Wang offered a friendly amendment to the motion to hear items 17, 18 and 19 at 6:30 p.m. Sandoval and Mahoney accepted the amendment, and the motion carried unanimously. Item 16 was taken up next. 16. Consider Application Nos. U-2005-09, ASA-2005-06 (EA-2005-06), KCR Development, Inc. (Evershine), 19620-19780 Stevens Creek Blvd. (Marketplace), APN Nos. 369-06- 008,009 and 010: a) Mitigated Negative Declaration b) Use Permit to demolish approximately 15,300 square feet of existing commercial space and construct a new 34,300 square foot two story building at the Marketplace shopping center c) Architectural and Site approval for demolition of approximately 15,300 square feet of existing commercial space and construction of a new 34,300 square foot two story building at the Marketplace shopping center d) Amended gateway design for South Portal A venue by the Marketplace Shopping Center Community Development Director Steve Piasecki reviewed the staff report and said that the Planning Commission recommends approval, and staff recommends adding a 4- {C> February 7, 2006 Cupertino City Council Page 11 condition for a parking management strategy. He showed the design rendering and said that it still needs to go back to the Design Review Committee for some fine details. Applicant Wayne Okubo, representing the Evershine Group, said that they had worked with the staff to address the issues regarding parking and worked with architectural advisory Larry Cannon to create a more interesting face by adding some relief to the building. He said they also increased the amount of parking and shortened the building. Virginia Tamblyn repeated comments which she had also made to the Planning Commission, which included: the developer and owners were taking steps to alleviate issues such as cooking odors, traffic problems, and any operational procedures. She said the neighbors have attended meetings about the project and as a result all have benefited. Keith Murphy concurred that the owners have done a good job of addressing problems, and he also talked about the palm trees on the site. He said that if these trees were to be identified as heritage trees, it is important that the correct trees be documented. He noted that the dead palm now on the site is a Canary Palm, which is not the correct type for this area, and that the original trees were California Fan Palms. Wayne Okubo talked about the varieties of palm trees on the site, and said that they would like to plant species that grow slowly and are easy to maintain. Dolly Sandoval requested that a 3-dimensional review of the architecture be provided to insure consistency with the existing shopping center, so that she would have a better understanding what the project would look like. Mahoney/Kwok moved and seconded to adopt the negative declaration. The motion carried unanimously. Mahoney/Kwok moved and seconded to approve the use permit with the additional caveats that the Design Review Committee will resolve the palm species issue and provide shade trees in the parking lot; that the architecture shall be reviewed to achieve consistency with the existing shopping center. Dolly Sandoval offered a friendly amendment to including additional wording regarding construction phasing and penalties, as prepared by the Community Development Director and viewed onscreen at the meeting. Mahoney and Kwok accepted the amendment, and the motion carried with Wang and Sandoval voting no because they did not have a clear idea of what the building would look like. Council concurred to adopt a minute order asking for staff to bring back a proposal to add the construction phasing language as a standard condition to be placed on all applications. Mahoney/Kwok moved and seconded to approve the Architectural and Site application for demolition of approximately 15,300 square feet of existing commercial space and LT- (I February 7,2006 Cupertino City Council Page 12 construction of a new 34,300 square foot two story building at the Marketplace shopping center. The motion carried with Wang and Sandoval voting no. Sandoval/Wang moved and seconded to approve the amended gateway design for South Portal Avenue by the Marketplace Shopping Center as stipulated by the Public Works Director. The motion carried unanimously. ORDINANCES 17. Conduct the second reading of Ordinance No. 1974: "An Ordinance of the City Council of the City of Cupertino Amending Sections of the Cupertino Municipal Code Changing the Term Expiration Date for Advisory Commissions from January 15 to January 30." This item was continued to February 27 at 6:30 p.m. 18. Conduct the second reading of Ordinance No. 1975: "An Ordinance of the City Council of the City of Cupertino Rezoning of a 5.19-Acre Parcel From Planned Development (Regional Shopping) to Planned Development (Regional ShoppingjResidential) at 10123 N. Wolfe Road." (Vallco). This item was continued to February 27 at 6:30 p.m. 19. Conduct the second reading of Ordinance No. 1976: "An Ordinance of the City Council of the City of Cupertino Modifying a Development Agreement (I-DA-90) to Encompass the Development Proposed in U-2005-16, ASA-2005-ll, Z-2005-05 and TR-2005-04 for a 137 Unit, Two- and Three- Story Residential Condorninium Development at 10123 N. Wolfe Road." (Vallco). This item was continued to February 27 at 6:30 p.m. STAFF REPORTS 20. Report on the City's Fiscal Strategic Plan. (No documentation in packet). This item was continued to February 27 at 6:30 p.m. COUNCIL REPORTS - None 4-/'2. February 7, 2006 Cupertino City Council Page 13 ADJOURNMENT At 1:45 a.m. Council adjourned to Tuesday, Feb. 13, at 7:30 p.m. for Planning and Public Safetv Commission interviews, Conference Roorn A, 10300 Torre Avenue, Cupertino. Kimberly Smith, 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. '1-/3 CUPERJINO DRAFf MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Monday, February 27,2006 PLEDGE OF ALLEGIANCE At 5:03 p.m. Mayor Richard Lowenthal called the meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California, and led the Pledge of Allegiance. ROLL CALL Present: Mayor Richard Lowenthal, Vice-Mayor Kris Wang (5:05 p.m.), and Council members Patrick Kwok, Orrin Mahoney, and Dolly Sandoval. Absent: none. CEREMONIAL MATTERS - PRESENTATIONS I. Proclamation for Silicon Vallev Reads program. Mayor Lowenthal presented the proclamation to Kathy Stakey, who represented the Cupertino Library Commission. 2. Proclamation for the World Journal's 30th Anniversarv. (No documentation in packet). Mayor Lowenthal presented the proclamation to Peter Ho, Public Relations Manager for the World Journal, and also acknowledged reporter/photographer Mei Wei Huang. Mayor Lowenthal reordered the agenda to take up items 23 and 24 next. NEW BUSINESS 23. Discuss adding Citv Council meetings on March 8 and 9 beginning at 6:00 p.m. (No documentation in packet). Council concurred to add those two meetings. 24. Discuss setting aside the Wednesday after each regular meeting at 6:45 p.rn. for additional meetings, as necessary. (No documentation in packet). Council members conclirred to set aside the Wednesday after each regular meeting for an additional meeting, beginning at 6:45 p.m., as needed. Council member Kris Wang serves If-I</- February 27,2006 Cupertino City Council Page 2 on a County Parks and Recreation Commission, and will set aside only the Wednesday that follows the second regular meeting of the month. POSTPONEMENTS Sandoval/Wang moved and seconded to continue item 15 (Taylor Woodrow) to March 8 at 6:00 p.m. The motion carried unanimously. Kwok/Sandoval moved and seconded to continue item No. 17, an appeal by David and Margaret Critzer and Jowei Chen, to April 4. The motion carried unanimously. Kwok/Sandoval moved and seconded to continue item No. 18, proposal by the Santa Clara Valley Water District, to the meeting of March 7, and to make it the first item under the New Business agenda. The motion carried unanimously. WRITTEN COMMUNICATIONS The City Clerk noted that the following written communications had been received: · An amended Ordinance No. 1978 for item 15, Taylor Woodrow Homes · Email from Kam Chung opposing item 15 · A letter supplementing the Critzer appeal from Eller & Associates, Attorneys at Law · A request frorn the Water district to continue their item 18 to March 7 Staff was directed to place these written communications back into the packet on the date when the items would be heard. Council member Sandoval read into the record a letter from Joe Alfaro, President of the De Anza Youth Soccer League, which included a check in the amount of $4,000 as a donation toward the maintenance of Cupertino athletic fields. Council concurred to agendize this matter for the meeting of March 7. ORAL COMMUNICATIONS - None CONSENT CALENDAR Sandoval/Kwok moved and seconded to approve the items on the Consent Calendar as recommended, with the exception of item 3, which was pulled for discussion. Ayes: Kwok, Lowenthal, Mahoney, Sandoval, and Wang. Noes: None. 4. Adopt resolutions accepting Accounts Pavable for February 3 and 10, Resolution Nos. 06-034 and 06-035. 5. Adopt a resolution accepting Payroll for February 10, Resolution No. 06-036. 6. Adopt a resolution authorizing the destruction of records from the Parks and Recreation department, Code Enforcement, and City Clerk's Office, Resolution No. 06-037. t..f-IS February 27, 2006 Cupertino City Council Page 3 7. Adopt a resolution supporting the renewal of the County's Park Charter, Resolution No. 06-038. 8. Adopt a resolution approving an improvement agreement with Mu Wai Lui and Yuet-Lin Z. So, 10111 Santa Clara Avenue, APN 326-24-025, Resolution No. 06-039. 9. Adopt a resolution approving a grant of easement for roadway purposes, Mu Wai Lui and Yuet-Lin Z. So, 10111 Santa Clara Avenue, APN 326-24-025, Resolution No. 06-040. 10. Adopt a resolution acknowledging the irrevocable offer of dedication for roadway purposes and reserving the right to accept at a later time, Mu Wai Lui and Yuet-Lin Z. So, 10111 Santa Clara Avenue, APN 326-24-025, Resolution No. 06-041. II. Adopt a resolution acknowledging the irrevocable offer of dedication for roadway purposes and reserving the right to accept at a later time, Robert A. Rickman, 10200 Empire Avenue, APN 326-23-033, Resolution No. 06-042. 12. Adopt a resolution approving an irnprovement agreement with Sasha Cukic and Aida Cukic, 21796 Stevens Creek Boulevard, APN 357-16-011, Resolution No. 06-043. 13. Adopt a resolution in support of a state constitutional amendrnent (proposition 42) dedicating the existing state sales tax on gasoline to fund transportation projects, Resolution No. 06-044. ITEMS REMOVED FROM THE CONSENT CALENDAR (above) 3. Approve the minutes from the January 30,31, and February 13 City Council meetings. Sandoval/Wang moved and seconded to adopt the minutes of January 30 and February 13 as presented, and the minutes of January 31 with a correction on page 5 to read "construct a shopping center sign on the north portion of the Vallco property off Highway 280." Ayes: Kwok, Lowenthal, Mahoney, Sandoval, and Wang. Noes: None. Mayor Lowenthal re-ordered the agenda to take up item 16 next. UNFINISHED BUSINESS 16. Consider the Valley Transportation Agency's (VTA) proposed Quarter cent sales tax measure. Public Works Director Ralph Qualls reviewed the staff report and said that the VTA may be proposing a ballot measure for a quarter-cent sales tax increase from 2008-2038. Some of the items that would receive additional funding include a bus rapid transit system; an unspecified increase up to 24% of current levels of service; some senior disabled services; $3.3 million per year for improvements to county expressway system; and a bicycle/pedestrian program of $1.4 million per year. He said that projects, which If-I"- February 27,2006 Cupertino City Council Page 4 would directly benefit Cupertino include $130 million for a new bus rapid transit for Cupertino and Sunnyvale in the year 2021 and $10 million per year for local streets and roads. He said that if the same formula were used from the 1996 Measure A distributions, the City would see an increase in revenues of about $200,000 per year. Sandoval explained that on March 2, the VT A board would discuss their IO-year plans, and at that time they might also discuss the proposal for the quarter-cent sales tax increase. She noted that the Santa Clara County Board of Supervisors was also considering a half-cent sales tax increase, and in that case the VTA would probably not pursue the quarter-cent sales tax at this time. Jack Collins, representing the Valley Transportation Authority, said that Measure A included enough funds for capital projects but not an operating subsidy. He said this new proposal would include an operating subsidy up to the year 2038, as well as a new pavement management program and a new senior disabled program. The largest component of the proposal is to increase service on the street, which has been cut back 18 percent in the last two years. Orrin Mahoney said that he was not in favor of increase sales taxes up again, although at least Cupertino would get some additional benefits. Council members discussed the estimated increase in revenue to the City if the measure were to pass. Orrin Mahoney said that the transit service was already heavily subsidized but ridership was low. Richard Lowenthal said that the residents were probably most concerned about freeway crowding so they may be in favor of additional transit services. Collins said that if the ballot rneasure didn't pass, then the VTA would have to adopt an expenditure plan that would work with available revenues, which would require some tough decisions about what services to cut. No action was taken by the City Council. Mayor Lowenthal reordered the agenda to take up item 19 next. NEW BUSINESS 19. Adopt a resolution requesting that San Jose refer the proposed development on Kentwood at De Anza (located in the City of San Jose) to the City of Cupertino for review and comment, Resolution No. 06-046. Sandoval/Wang moved and seconded to adopt the resolution. The motion carried unanimously. Staff was directed to put notification of this item in the Cupertino Scene so that residents understand they have the opportunity to address it at the City of San Jose meetings, and to Lj-n February 27,2006 Cupertino City Council Page 5 also list the information about the Kentwood project on the City of Cupertino's home page. Mayor Lowenthal reordered the agenda to hear 21 and 22 next. 21. Select an interview date of March 21 at 5:30 p.m. for the Parks and Recreation Commission unscheduled vacancv. Sandoval/Kwok moved and seconded to schedule interviews for March 21 at 5:00 p.m. The motion carried unanimously. 22. Select application deadline and interview date for the Teen Commission. Sandoval/Kwok moved to schedule the interviews for Teen Commission on May 30 at 3:00 p.m. The motion carried unanimously. RECESS Council was in recess from 6:03 p.m. to 6:32 p.m. Mayor Lowenthal reordered the agenda to hear items 26 and 27 at their scheduled time of 6:30 p.m. ORDINANCES 26. Vallco ordinances and noise status report (Continued from February 7 to a time certain of 6:30 p.m.): a) Conduct the second reading of Ordinance No. 1975: "An Ordinance of the City Council of the City of Cupertino Rezoning of a 5.19-Acre Parcel From Planned Development (Regional Shopping) to Planned Development (Regional Shopping/Residential) at 10123 N. Wolfe Road." (Vallco) b) Conduct the second reading of Ordinance No. 1976: "An Ordinance of the City Council of the City of Cupertino Modifying a Development Agreement (I-DA-90) to Encompass the Development Proposed in U-2005-16, ASA-2005-11, Z-2005- 05 and TR-2005-04 for a 137 Unit, Two- and Three- Story Residential Condominium Development at 10123 N. Wolfe Road." (Vallco) c) Noise status report on Vallco (No documentation in packet) The following individuals spoke in opposition to the project: Janice Ishi Ruby Elbogen Paul Poon Patty Chi Ed Puccinelli Linda Soohoo Stuart Chessen L(-tg February 27,2006 Cupertino City Council Page 6 Debi Chessen Nelson D'Souza Varsha Joshi Kapil Agarwal Lloyd Martin Julie Bay Edith Pederson Lisa Warren Shilpa Joshi Sue Chang Jennifer Griffin Helam Luk Kathy Di Francesco Henry Huang Ms. Puranik Their comments included: · Density is too high · The five acres of this parcel could be used for other things; The commercial lots would be permanently lost · Don't give away the park · Adding condos will change the character of the neighborhood, and those impacts should be give the most weight; property values will go down, but the mall shareholders will profit · Wait to see if the mall is successful; the Rosebowl site should be developed first; if the mall doesn't succeed, there will be detrimental impacts to the condos · More sales tax revenue is needed, not more condos; The retail zoning should not be changed · The garage should be built underground or relocated; Council should consider V allco' s claims more closely; PG&E is willing to work with customers whenever it is safe. There is no reason that the parking cannot be located underground and PG&E has been in touch with Vallco and City Council about that; Federated Department stores have provided email saying that had no policy against underground parking and were not aware that it had been requested · The Planning Commissioners did think it wasn't the best location · Don't rush the decision; information from the developers comes to residents too late · A comprehensive study should be done on all development projects within the city · Collins School is already overcrowded and the district may not be giving accurate information; if the condos are built, students will be bused to other schools · Residential development north of the Macy's parking lot will cause too much pressure to open up the wall and that would be bad for the neighborhood · Council should always deny a project when it has the chance · A 40-foot setback is too small between two-story condos and the dividing wall; a fire could easily spread from the condos to the existing trees and then into the single family neighborhood · It is not a good precedent to have condominiums in this retail area; the housing market is sliding · Vallco owners have provided false and misleading information · Only two formal meetings have been held with the neighborhood residents · Are the City Council and Planning Commission exercising their fiduciary responsibility to review the plan; why have so many significant changes been added to plan in last few months; are the good intentions to redevelop the mall being exploited by the developers 'f-t'l February 27, 2006 Cupertino City Council Page 7 Scott Anderson, Panko Builders, said that he had worked with this developer for almost two years, and even at the first meeting with the Federated Group (Macy's) the developers discussed options for below-grade parking and Federated shot that down. He noted other complications with an underground garage, which include an existing high voltage lines, water main, and a telephone cable run. Anderson said that his experience with the developers shows them to be people of honor and integrity doing their best to satisfy a large group of people with different goals and concerns. Christopher Shumb, the developer's attorney, said that the he had prepared a draft covenant that would be part of the CC&Rs to limit the condorninium owners from ever seeking any access through the neighborhood through the masonry wall unless the residents on the other side of the wall agree to a change by majority vote. He said they would also be willing to have a restrictive easement signed by the other entities of the mall, and all of those protections guarantee that on the mall side there will never be any attempt to open up the wall. Emily Chen, Vallco International, LLC, said that they had been assigned a project manager by Macy's, and that person, the Macy's architect, the developer's engineer, and the Vallco manager Mike Rohde had been working together since the beginning, and Vallco was given clear guidelines about what would be acceptable to Macy's. She said that Sears and Penney's have already agreed to sign the real estate agreements, but Macy's representatives are dragging their feet. She also said that PG&E response time even for new single-family homes can exceed six months, and it would be impossible for them to complete a project of this size in six months. Christopher Shumb said that the Council's decision on this matter was crucial. He cautioned that the Vallco representatives are currently negotiating the real estate agreements, so if the other parties know that Council's approval hinges on getting those documents signed, it will make negotiating tougher. He said that Vallco owners would invite a two-week continuance in order to validate their credibility. He noted that if the parking garage were not permitted, there would be a huge problem with the AMC theaters, because the garage must be built by Thanksgiving. Sandoval/Mahoney moved and seconded to continue both ordinances to Thursday, March 9, at 6 p.m. and that the applicant shall meet the requirements listed below. The motion carried unanimously. By Tuesday, March 7, applicant shall provide and staff will deliver to the City Council the following items: · Signed copies of at least two of the three real estate agreements (REA's) with the mall anchor stores (Macy's, Sears, and J.C. Penney's). · The CC&R language and easement language related to the wall between the mall and the neighborhood · A design for a parking garage that is a maximum of 32 feet high (excluding the elevator tower), and which meets the required number of parking spaces If - 20 February 27,2006 Cupertino City Council Page 8 . Staff shall provide written notice to the neighborhood in a half-mile radius, and at least as far as Portal Avenue Administrative Services Director Carol Atwood reviewed a document titled "Vallco Construction Status Report as of 2-27-06" and explained the steps that had been taken to address the neighbor's noise complaints about the steel construction noise. She reviewed the original request, the construction tirneline and the logistics plan. She then addressed the status of each condition of approval, and stated that noise levels were in compliance with the conditions required by Council, and the Vallco & DPR Construction had taken additional measures to decrease disturbances even further through quality control on steel cuts as well as refuse and leave blower noise control. Philip Sanders, noise consultant with Charles M. Salter Associates, Inc., answered technical questions by Council. He agreed to provide data about the time and volume of noises that exceed 66 decibels. Council concurred to accept the report, and directed the Vallco representatives to record hotline telephone calls in the future to verify customer service compliance. RECESS Council was in recess from 9:05 to 9: 16 p.m. Mayor Lowenthal reordered the agenda to take up item 14 next: PUBLIC HEARINGS 14. Consider adopting a resolution updating the Nexus Studv and new mitigation fees for the Cupertino Below Market Rate (BMR) Housing program and direct staff to draft an inclusionary housing ordinance, Resolution No. 06-045. Senior Planner Vera Gil reviewed the staff report. Consultant Kate Funk a consultant with Keyser Marston Associates, described the jobs housing linkage analysis and fee, and explained that the analysis is designed to quantify the linkages from new buildings to housing demand. Mahoney/Sandoval moved and seconded to adopt the updated Nexus Study and adopt new mitigation fees in April, when adopting the user fees, for the Cupertino BMR program, and direct staff to draft an Affordable Housing Ordinance as set forth in Resolution No. 06-045. The motion carried unanimously. PUBLIC HEARINGS 15. Consider Application Nos. U-2005-01, ASA-2005-02, TM-2005-01, Z-2005-01 (EA- 2005-01), Alan Loving (Tavlor Woodrow Homes), Bubb Road and Imperial (a portion of Results Way Corporate Park), APN Nos. 357-18-035, 357-20-041, 042 and 043. (The If- 2/ February 27,2006 Cupertino City Council Page 9 Planning Commission recommends denial). (Due to the number of items on tonight's agenda, the Taylor Woodrow representatives agreed to a continuation): a) Mitigated Negative Declaration b) Use Permit to demolish 175,000 square feet of industrial buildings and construct 94 single-family residential units and recreation areas c) Architectural and Site Approval for 94 single-family residential units and recreation areas d) Tentative Map to subdivide a 12-acre site into 94 lots + I held in common e) Rezoning of a 12-acre site from Planned Industrial - P(ML) to Planned Residential- P(Res) Conduct the first reading of Ordinance No. 1978: "An Ordinance of the City Council of the City of Cupertino Rezoning of a 12-Acre Site from ML (Light Industrial) Zoning District to P(RES) (Planned Residential) for a 94-Unit Planned Residential Development on Results Way, West of Bubb Road and East of Imperial Avenue." Sandoval/Wang moved to continue item 15 (Taylor Woodrow) to March 8 at 6:00 p.m. The motion carried unanirnously. 17. Consider an appeal by David and Margaret Critzer and Jowei Chen of the Notice of Determination by the City Manager denying the appeal of the Community Development Director's decision regarding the installation of a bathroom window at 20272 Northcove Square. (Continued from January 17). Kwok/Sandoval moved and seconded to postpone this item to April 4. The motion carried unanimously. 18. At the request of Council member Kwok, consider the Santa Clara Valley Water District's (SCVWD) proposal to become an independent agency from the County. Kwok/Sandoval rnoved and seconded to postpone this item to March 7 and to make it the first item on the New Business agenda. The motion carried unanimously. 20. Approve year-end budget adìustments for fiscal year 2004/05 and mid-year budget adjustments for fiscal year 2005-06. Finance Director David Woo reviewed the staff report. Wang/Sandoval moved and seconded to approve the budget adjustments. The motion carried unanimously. Lf- 22 February 27,2006 Cupertino City Council Page 10 25. Select a date and time for a Council workshop on personal emergencv preparedness (3- hour course). (No documentation in packet). The Council members asked that Emergency Preparedness Coordinator Marsha Hovey notify when she schedules the next set of courses, because the Council already had commitments for the training days on the current schedule, and they would prefer a session just with the Council members. ORDINANCES 27. Conduct the second reading of Ordinance No. 1974: "An Ordinance of the City Council of the City of Cupertino Amenßing Sections of the Cupertino Municipal Code Changing the Term Expiration Date for Advisory Commissions from January 15 to January 30." (Continued from February 7 to a tirne certain of6:30 p.m.) Kwok/Wang moved and seconded to read the ordinance by title only and that the City Clerk's reading would constitute the second reading thereof. Ayes: Kwok, Lowenthal, Mahoney, Sandoval, and Wang. Noes: None. Kwok/Wang moved and seconded to enact Ordinance No. 1974. Ayes: Kwok, Lowenthal, Mahoney, Sandoval, and Wang. Noes: None. STAFF REPORTS 28. Report on the City's Fiscal Strategic Plan. (No documentation in packet). Council member Orrin Mahoney gave a brief report and said the committee would be meeting each Thursday. 29. Receive status report on General Fund Revenue and Expenditures. (No documentation in packet). This item was discussed as a part of item 20 and Council concurred to receive the report. COUNCIL REPORTS Council members highlighted the activities of their committees and various community events. 4-23 February 27, 2006 Cupertino City Council Page II ADJOURNMENT At 10:37 p.m. the meeting was adjourned to Tuesday, March 7, 2006, at 5:30 p.m. for a study session regarding industrial business in Cupertino. Kimberly Smith, 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. If-21./ CUPERJINO DRAFf MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Tuesday, March 7, 2006 ROLL CALL At 5:30 p.m. Mayor Richard Lowenthal called the meeting to order in the Council Chamber, 10350 Torre A venue, Cupertino, California. Present: Mayor Richard Lowenthal, Vice-Mayor Kris Wang, and Council members Patrick Kwok, Orrin Mahoney, and Dolly Sandoval. Absent: none. STUDY SESSION I. Conduct a study session regarding industrial business in Cupertino. Community Development Director Steve Piasecki reviewed the staff report and made a PowerPoint presentation. He highlighted: I) Maintaining cohesive commercial centers and office parks; 2) Areas to consider for removal of residential overlay; 3) Top 100 sales tax producers; 4) Functionally obsolete buildings. Jennifer Griffin talked about the boom and bust cycle of the tech market, and that the City Council should take the approach of creating a healthy mix of both industrial and housing. She urged Council to protect the tech parks. Planning Commissioner Gilbert Wong, representing the Chamber of Commerce, said that industrial areas should be reserved and urged Council to save room for industrial parks. Beverley Bryant, representing the Homebuilders Association of Northern California, said that Cupertino should have a balance of residential and industrial, but as much residential as possible since employees need places to live. She urged Council to continue to look carefully at areas to be converted, including Bubb Rd. Council concurred to continue doing study sessions on this topic and each noted important issues to staff: preserving large blocks of space for contiguous campuses; maintaining definitive boundaries between industrial and non-industrial space; revenue generating vs. non-revenue generating; updating the rezoning map for the long-term and '1~25 March 7, 2006 Cupertino City Council Page 2 bringing a history for comparison; assigning risk to each decision and the impact it would have; getting rid of the housing overlay wherever possible. RECESS The Council was in recess from 6:35 p.m. to 6:48 p.m. PLEDGE OF ALLEGIANCE At 6:48 p.m. Mayor Richard Lowenthal called the meeting to order again in the Council Chamber and led the Pledge of Allegiance. CEREMONIAL MATTERS - PRESENTATIONS - None POSTPONEMENTS City Attorney Charles Kilian noted that T-Mobile had requested that their item (number II) be remanded back to the Planning Commission. Sandoval/Kwok moved and seconded to remand the item back to the Planning Commission with direction to staffto re-notice at that level. The motion carried unanimously. WRITTEN COMMUNICATIONS Deputy City Clerk Grace Schmidt noted that a letter dated March 3, 2006, was received from Ron Walker regarding construction noise at Vallco. ORAL COMMUNICATIONS John James talked about drain issues on Lindy Lane coming frorn Moxley Drive. He gave some suggestions for how to solve the problem, and asked staff to solve the issue. He distributed pictures showing the water buildup. Public Works Director Ralph Qualls showed pictures of the drain issues on Lindy Lane. He said that the road would be re-graded and asphalt berms would be put in. He said that the improvements would solve nearly 100% of the issue, and would be finished sometime in the spring. Eric Huang said that his organization's booth application (NTDTV - New Tang Dynasty Television) was nearly rejected because of allocations that they were affiliated with a religious organization (Falun Gong). He noted that the practitioners of Falun Gong are persecuted and labeled as both political and religious. He showed pictures of past parades and said that the participants are without any religious connotation. He said that the organizers of the festival reinstated their booth participation, but that they weren't in time to participate in the parade. Lf-2fo March 7, 2006 Cupertino City Council Page 3 Cathy Zhang with NTDTV also talked about the booth application to the Unity Parade. She noted that they are not a religious group, but a local language TV network that promotes traditional, Chinese culture. She asked the Council to take time to understand their media and its contribution to the community, and to spread information about their station. Mike Rohde, Vallco Fashion Park representative, gave an overview and update on the crane accident at Vallco. He said that no one was injured in the accident and said he appreciates the community's support. He noted that emergency procedures were activated, and the mall opened the next morning thanks to Cupertino Building Official Greg Casteel and Deputy Fire Chief Dirk Mattern. As a result of the crane accident, he asked for a continuance of the condominium application that was scheduled for March 9. Mayor Lowenthal noted that the continuance would be taken up at the March 8 rneeting since the item was not on tonight's agenda. George Hurley from DPR Construction talked about the Vallco crane accident. He said that every safety mechanism was put in place, and that the engineering team worked together to keep the mall as safe as possible. He said he sees no interruption to the November 17 date for the opening of the theaters. In response to Council's question, he said there is a complete forensic investigation going on to re-create the event. He noted that from now on, the boom would remain in the down position while at rest, to prevent this from happening in the future. Council asked to have the investigation results brought back. Patty Chi suggested that the crane should be lowered when not in use. CONSENT CALENDAR Sandoval/Wang moved and seconded to approve the items on the Consent Calendar as recommended, with the exception of items 7 and 8, which were pulled for discussion. Ayes: Kwok, Lowenthal, Mahoney, Sandoval, and Wang. Noes: None. 2. Adopt resolutions accepting Accounts Pavable for February 17 and 24, Resolution Nos. 06-047 and 06-048. 3. Adopt a resolution accepting Payroll for February 24, Resolution No. 06-049. 4. Accept the Treasurer's Investment and Budget report for January 2006. 5. Authorize the Public Works Director to negotiate and execute a contract amendment with Professional Turf Management for interim maintenance at Blackberry Farm in an amount not to exceed $40,000.00. 6. Adopt a resolution approving improvement agreement with Gregg C. Bunker, 1375 S. De Anza Boulevard, APN 366-19-071, Resolution No. 06-050. 4-27 March 7, 2006 Cupertino City Council Page 4 ITEMS REMOVED FROM THE CONSENT CALENDAR (above) 7. Accept municipal improvements for Lynn M. Ching (Curb and Gutter, Driveway, Sidewalk, and Sewer), 10568 San Leandro Avenue, APN 357-05-029. (No documentation in packet). Wang/Sandoval moved and seconded to accept the improvements. The motion carried unanimously. 8. Approve the amendment to the Agreement for Professional Services with Greg Sellers Associates regarding Tax Equity Allocation (TEA) legislation. Sandoval/Mahoney moved and seconded to approve the amendment to the agreement. The motion carried unanimously. PUBLIC HEARINGS 9. Conduct the first of two public hearings to consider the City of Cupertino Communitv Development Block Grant (CDBG) Program draft Consolidated Plan. Senior Planner Vera Gil introduced Diana Elrod from D.R. Elrod and Associates who made a PowerPoint presentation regarding the consolidated plan. Council noted some inconsistencies in the Consolidated Plan document and asked staff to update the language, or cite the change in the language and note when it will be updated: · Nurnbers not matching in the analysis of population and households · Page 9-25 Implementation Program #11 is no longer Council policy · Page 9-28 date mentions 2004 · Page 9-27 Implementation Program #19 needs to be updated · Page 9-24 Implementation Program #6 needs to have the BMR numbers updated · Page 9-23 Implementation Program #1 is not a Council policy · Page 9-15 - vacancy rates has conflicting language and needs updating · Page 9-22 Policy 3-1 needs to be updated Staff noted that the Housing Commission would update the document before the second public hearing, and staff would make sure the document is qualified properly in conjunction with the Housing Element. At 7:50 p.m. Mayor Lowenthal opened the hearing. No speakers were heard and the public hearing was closed. Council received the report, and continued this item to March 21, 2006, for a second public hearing. '1-21 March 7, 2006 Cupertino City Council Page 5 10. Consider adopting a resolution ordering a vacation of an air rights easement for transit parking and station facilities within the City of Cupertino, Vallco Park adjacent to Interstate 280 and Wolfe Road, Resolution No. 06-051. (Continued from February 7). Public Works Director Ralph Qualls reviewed the staff report. At 7:51 p.m. Mayor Lowenthal opened the public hearing. No speakers were heard and the public hearing was closed. Kwok/Sandoval moved and seconded to adopt Resolution No. 06-051. The motion carried unanimously. 11. Consider an appeal of the Planning Commission's decision to deny a Use Permit to erect a 35-foot tall slim-line monopole with three panel antennas and an equipment shelter for wireless phone service, Application No.U-2005-14, William Stephens (T-Mobile), 20041 Bollinger Road, APN No. 369-34-052. This item was taken up under postponements. 12. Consider an appeal of TR-2006-01, a Community Development Director's Decision to deny the removal of two Canary Island pine trees located along Alves Drive and Anton Way, in a planned residential development known as the Cupertino Commons, APN Nos: 326-53-025 and 326-53-035. The appellants are Nancy Hurtienne and Milton & Dorothy Levitan. Senior Planner Colin Jung reviewed the staff report via a PowerPoint presentation. Appellant Dorothy Levitan said she was concerned about the number of dry needles falling on her roof during the fall and winter, and that there have been two serious fires in her neighborhood. She said that removing the one tree wouldn't affect the character of the neighborhood as reported in the staff report. Appellant Nancy Hurtienne said that she is on the landscaping committee in her complex and knows about the trees on the property. She said the tree has many heavy pinecones that fall directly onto her property, and are dangerous. She asked Council to have the tree removed. At 8: I 0 p.rn. Mayor Lowenthal opened the public hearing. Parks and Recreation Cornrnissioner Jeanne Bradford, former president of the Homeowners Association of the Cupertino Commons, said that some of the trees in her area are inappropriately planted, and the issue is to give residents some remedy with large trees that were okay 20 years ago, but now are inappropriate. She suggested replacing the tree with something else. 1.f-2Jf March 7, 2006 Cupertino City Council Page 6 Jennifer Griffin said that trees are important to Cupertino. If the tree is part of the landscape of the complex, then the ongoing maintenance of the tree is the Homeowners Association's responsibility. She said she hopes that rnitigation measures could be done like putting collars on the trees or trimming back the tree. At 8:25 p.m. the public hearing was closed. Council discussed setting a precedent of people wanting to remove trees. Dolores Carson, Commons resident, said that this would not set a precedent and these are the only trees causing a problem. Sandoval/Kwok moved and seconded to uphold the appeal and approve the tree removal request with the following specifications: I) When the trees are removed they will be replaced with 48-inch box trees, the species to be decided on between the Commons arborist and City staff; 2) The new trees become part of the approved landscaping plan. The motion carried unanimously. Council recessed from 8:37 p.m. to 8:47 p.m. UNFINISHED BUSINESS NEW BUSINESS 13. At the request of Council member Kwok, consider the Santa Clara Valley Water District's (SCVWD) proposal to become an independent agency from the County. (Continued from February 27). Council member Kwok reported that since 1968, the County has been overseeing the District, approving the budget and appointing two directors at large. The District has demonstrated that they are well managed under the current board of directors, and are seeking change in the legislation with AB 2435. He noted that the County Board of Supervisors have already approved the change, and the District is seeking support from the cities. SCVWD Chairman of the Board Larry Wilson asked for support for AB 2435. Kwok/Mahoney moved and seconded to support AB 2435. The motion carried unanimously. 14. Adopt a resolution approving a semi-rural designation to eliminate the requirement for sidewalks and streetlights for portions ofPhar Lap Drive, Resolution No. 06-052. Public Works Director Ralph Qualls reviewed the staff report. 4~30 March 7, 2006 Cupertino City Council Page 7 Sandova1/Wang moved and seconded to adopt Resolution No. 06-052. The motion carried unanimously. 15. Request from the Cupertino Union School District (CUSD) to amend the eligibility requirements for the Below Market Rate (BMR) program to give CUSD teachers a point for working within the City of Cupertino limits, regardless of the city they are working in, as long as they are employed by CUSD. Senior Planner Vera Gil reviewed the staff report. CUSD representative William Bragg asked for Council support in allowing the extra point in order to obtain good teachers who can't afford to live in Cupertino. He said that currently CUSD couldn't guarantee that teachers who work for the school district will work in a Cupertino school. He noted, however, that the CUSD business office is located within Cupertino. Council discussed the possibility of a timeframe for having to transfer to a Cupertino school, and also discussed adding language regarding being eligible for another point if the person's primary business address is in Cupertino. Council concurred to send the item back to the Housing Commission and to come back to City Council on April 4. 16. Authorize the City Manager to execute a Professional Services Agreement with Lifetime Tennis. Parks and Recreation Director Therese Smith reviewed the staff report. Recreation Supervisor Don McCarthy answered questions from Council. Administrative Services Director Carol Atwood discussed financial issues, and answered questions from Council regarding the City's net profit from the agreement. Mahoney/Sandoval moved and seconded to authorize the City Manager to execute the agreement with terms outlined within the staff report. Wang offered a friendly amendment to keep 20% of the revenue up to $300,000 and 40% above $300,000. Kwok seconded the amendment. The amendment motion failed with Kwok and Wang voting yes. The original motion to authorize the agreement carried with Kwok and Wang voting no. The Mayor reordered the agenda to take up item number 19 next. 19. Authorize the transfer of $125,000 from the Sports Center Fund Balance to project account 570-9231 for swimming pool improvements. Parks and Recreation Director Therese Smith reviewed the staff report. 4- 31 March 7, 2006 Cupertino City Council Page 8 Kwok/Wang moved and seconded to authorize the transfer of $125,000 for swimming pool improvements. The motion carried unanimously. The Mayor reordered the agenda to take up item number 17 next. 17. Approve the Planning Commission 2006 Work Program. City Planner Ciddy Wordell reviewed the staff report via a PowerPoint presentation. Jennifer Griffin said she has seen a number of street trees damaged during construction and urged Council to protect the trees. Sandoval/Kwok moved and seconded to approve the Work Program with the following additions: I) Amend the tree ordinance to protect trees during construction; 2) Merge the Planning Commission's study of obsolete research and development properties into the City Council's industrial building initiative. The motion carried unanimously. 18. Amend Chapters 16.28 (Fences) of the Cupertino Municipal Code, Application No. MCA-2005-01, City of Cupertino, Citywide. Conduct the first reading of Ordinance No. 1979: "An Ordinance of the City Council of the City of Cupertino Amending Chapter 16.28 of the Cupertino Municipal Code Related to Regulations Affecting Fences." Senior Planner Aki Honda reviewed the staff report via a PowerPoint presentation. Council directed staff to amend the ordinance before the second reading to: I) Take out language waiving the fence exception fees where applicants are requesting a higher residential fence without adjacent neighbor approval; 2) Not allow gates at the back of sidewalks along street frontages where security and safety reasons are not demonstrated. These items were discussed on page 18-6 ofthe staff report. The Deputy City Clerk read the title of the ordinance. Kwok/Sandoval moved and seconded to read the ordinance by title only, and that the Deputy City Clerk's reading would constitute the first reading thereof. Ayes: Kwok, Lowenthal, Mahoney, Sandoval, and Wang. Noes: None. ORDINANCES 4-32 March 7, 2006 Cupertino City Council Page 9 STAFF REPORTS 20. Report on the City's Fiscal Strategic Plan. (No documentation in packet). Council member Orrin Mahoney gave a report on the progress of the subcomrnittee. He said that he and Council member Kris Wang are making progress. He noted that the biggest issue is to put a risk assessment on the top 100 sales tax producers and to analyze how sensitive they are to risk. He said that they would be meeting again this week. COUNCIL REPORTS Dolly Sandoval gave an update regarding the Valley Transportation Authority's (VTA) expenditure plan and the possibility of putting a \4-cent sales tax on the November ballot. She said that the Board put together an ad hoc committee to look at the proposals and reprioritize the projects for different funding options. She noted that the Board didn't vote on the expenditure plan at its last meeting and doesn't plan on putting any tax measure on the ballot in the near future. The ad hoc committee will report back to the Board in about two months with a definitive action. Council members discussed protocol regarding approving contract agreements. ADJOURNMENT At II :26 p.m. the meeting was adjourned to Wednesdav. March 8 at 6:00 p.m. to discuss the Tavlor Woodrow Homes application. 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. 4-33 CUPERJINO DRAFf MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Wednesday, March 8, 2006 ROLL CALL At 6:00 p.m. Mayor Richard Lowenthal called the meeting to order in the Council Chamber, 10350 Torre A venue, Cupertino, California, and led the Pledge of Allegiance. Present: Mayor Richard Lowenthal, Vice-Mayor Kris Wang, and Council members Patrick Kwok, Orrin Mahoney, and Dolly Sandoval. Absent: none. ORAL COMMUNICATIONS - None Mayor Lowenthal reordered the agenda to discuss adjournment dates next. He said that the Valko owners had asked for a continuance of their item which was scheduled to be heard on March 9. He noted that the expectation would be to hear the Valko item on March 22, but that Council couldn't decide that tonight since the item wasn't on the agenda. Kwok/Sandoval moved and seconded to adjourn tonight's meeting to March 21 at 5:00 p.m. Council directed staff to post a notice at the Community Hall, City Hall, and on the website regarding the cancellation of the March 9 meeting. PUBLIC HEARINGS 1. Consider Application Nos. U-2005-01, ASA-2005-02, TM-2005-0l, Z-2005-01 (EA- 2005-01), Alan Loving (Tavlor Woodrow Hornes), Bubb Road and Imperial (a portion of Results Way Corporate Park), APN Nos. 357-18-035, 357-20-041, 042 and 043. (Continued from February 27): a) Mitigated Negative Declaration b) Use Permit to demolish 175,000 square feet of industrial buildings and construct 94 single-family residential units and recreation areas c) Architectural and Site Approval for 94 single-family residential units and recreation areas d) Tentative Map to subdivide a 12-acre site into 94 lots + I held in common '1-j'f March 8, 2006 Cupertino City Council Page 2 e) Rezoning of a 12-acre site from Planned Light Industrial - P(ML) to Planned Residential- P(Res) Conduct the first reading of Ordinance No. 1978: "An Ordinance of the City Council of the City of Cupertino Rezoning of a 12-Acre Site from P(ML)(Planned Light Industrial) Zoning District to P(RES) (Planned Residential) for a 94-Unit Planned Residential Development on Results Way, West of Bubb Road and East of Imperial Avenue." Mayor Lowenthal said that he felt conflicted about this development for many reasons: I) He lives in the neighborhood where the project is proposed; 2) His daughter goes to Monta Vista High School which is affected by the development and which would receive a large amount of money from the developer if the project were approved; 3) He drives through the traffic in that area everyday; and 4) His neighbors have been talking to him about the development. He said he didn't feel confident that he could be objective on this issue, and recused himself from participating. Assistant City Attorney Eileen Murray said that this conflict had been discussed with the City Attorney's office, and it was determined that there was no conflict of interest financially or in any other way. She noted, however, that where decision- makers feel that they can't make an impartial decision, or if there would be the appearance that they couldn't make an impartial decision, due process required that they recuse themselves. Mayor Lowenthal left the meeting at 6:10 p.m. and Vice-Mayor Kris Wang took over running the meeting. Dolly Sandoval said for the record that she respects the mayor's decision, but everyone on the Council has issues in their neighborhood that they deal with and it's their job to take all the facts, and make an impartial decision that is hopefully in the best interest of the City. Community Development Director Steve Piasecki reviewed the staff report via a PowerPoint presentation. Rick Hausman, Cupertino Union School District (CUSD) Assistant Superintendent answered questions regarding school impacts on Lincoln and Kennedy schools. He said that either campus would have ample roorn to house any number of students that could be foreseen for this project and for future growth. He noted that demographers analyze the numbers based on past history and new data. He said that the schools are financially secure for the future as well. Project architect Jim Yee showed a video on the details of the project titled, "The Parks at Monta Vista." He highlighted: 4-35 March 8, 2006 Cupertino City Council Page 3 · Parkland and open space · The homes would be along the front of the park · Traditional, community architecture with porches · Specimen trees · Pedestrian and bicycle friendly · Water feature with trellis and stone · The homes will front the McClellan Trail creating a sense of neighborhood and community Applicant Phil Mader from Taylor Woodrow Homes made a PowerPoint presentation and highlighted four criteria of the project: 1) The schools will not be harmed; 2) Traffic impacts will be addressed; 3) The project is beneficial to the City; 4) The developers will demonstrate public support. At 7:45 p.m. Vice-Mayor Wang opened the public hearing. The following people spoke in favor of the project: Brent Johnson Kathy Robinson Alan Chamorro Eamon Murphy Scott Schultz Carlos Romero Mark Burns James Mullen Beverley Bryant Debbie Mendelson Stanley Tseng Charlie Ahern Dave Rodriguez Paul Fong Their comments included: · The developer addressed all the concerns and needs ofthe community · The developer is mitigating existing problems, including traffic · A beautiful new neighborhood will be created · The existing buildings are obsolete manufacturing buildings and will be demolished regardless of the outcome of this application · The owner must have the right to develop a property as the times change · Taylor Woodrow has gone over and above what is required and the company has a good reputation · This is an example of where industrial/residential conversion really works · Housing pays for itself, drives retail increases in sales tax, and is a net value to any cornmunity · Parks and trails are being added, and improvements are being made to the schools · The project would improve the area's quality oflife · 14 Below Market Rate (BMR) homes would be built · 70 more children would have a good education · Lack of new housing has created a division between those who already live here and those who want to live here, and between those who rent Lj - 3Ce> March 8, 2006 Cupertino City Council Page 4 · The community needs affordable homes and not more empty office space The following people spoke against the project: Steve Wu Vika Sachdeva Ed Ford Rich Parker Rhoda Fry Bernal Lewis Glen Lynch Robert Yu Laura Genovesi Jennifer Griffin Surendra Muthye Steve Bernstein James Ho Rich Madden David Cheng Champion Chen Dean Sayre Barbara Corriero Cecil Coe Rattehalli S udesh Hema Kundargi Henry Huang Ben Chia Doris Yeh Louie Liu Philip Tsai Carlos McEvilly Lewis Tseng Patty Chi Shilpa Joshi K.Y. Ho Norm Hackford Diana Wu Sherry Hsu Jun Ma Bee Liew Jill Lin Keith Murphy DannyKuan Steven Scharf Their comments included: · The land should be preserved for industrial uses · Housing doesn't provide sales tax revenue, and it wouldn't be near public transportation · There was concern about the developer's credibility and accuracy of the information provided · This would not be an affordable development and would create a BMR deficit · There were concerns about worsening the traffic, and no studies have been done to prove that the traffic mitigation measures would work · CC&R language should notify buyers that their homes are in an industrial/commercial area · Taylor Woodrow hasn't worked with the neighbors in locating the trails as stated in the General Plan; and the homeowners would face safety and privacy issues from proximity to the trails · The schools are already overcrowded · The letter from Paul Fong was misleading and untrue · The timing for the project is bad because Cupertino is growing too fast · Money is the motivator for the developer and the schools 4-37 March 8, 2006 Cupertino City Council Page 5 · The majority of the supporters don't live in the area, and this project would reduce the quality oflife for current residents · Discuss the housing overlay first before industrial business, and consider the long-term fiscal implications of rezoning Fremont Union High School District (FUHSD) Chief Business Officer Geoffrey Kiehl answered questions from Council. He said that the district was satisfied with the agreement made with Taylor Woodrow regarding the student generation from the project and the traffic flow mitigations. He noted that the Board made a careful decision to neither support or oppose the project, and the Board's interest is in the impact on the school district. He said that Monta Vista is slightly over ideal capacity until some facility projects are finished at the school. He said that over time the situation would correct itself, but it's an educated guessing game right now. He commented that any additional dollars generated from projects go directly into the schools. Council was in recess from 9:20 p.m. to 9:31 p.m. At 10:44 p.m. the public hearing was closed. The applicant spoke again and said that most people aren't complaining about the project, but about the schools and the traffic. He noted that they have mitigation measures for both of those issues. He said that Taylor Woodrow would be willing to provide the City with $900,000 to acquire a park site for the Rancho Rinconada neighborhood. In return, the developer asked for a 33% refund as park credit from their park fee of $729,000. He noted that under the park ordinance, they are allowed to receive up to a 50% refund. Sohrab Rashid, traffic consultant, answered questions from Council. He said the bike lane would be on the opposite side frorn the school drop-off lane. He noted that with mitigation measures planned, traffic flow would be most improved at McClellan and Bubb. Council member comments included: · There is no need to save industrial land when no businesses are asking to either reserve space or increase space · Other uses of the land include smaller offices, big box retail, smaller retail, and churches, but traffic and quality of life would be more impacted by those types of uses · One of the benefits of the project is the traffic mitigation measures that are being planned. The City has not been able to afford these and the project would make them possible · State law states that Council can't take school impacts into account when deciding on approving a development project · The schools say the mitigation measures far outweigh the number of students, and they said they could also absorb many more students Lf-38 March 8, 2006 Cupertino City Council Page 6 · There would be the environmental benefits of tree-filled landscapes and turnkey parks that are maintained by future residents, but open to the whole community · Industrial uses should be maintained, but in the right places throughout the City · Cupertino's top sales tax producers aren't located in industrial areas · The landowner has a right to do certain things with their land, and the Council can only shape how the development happens · McClellan Trail is a potential problem and should be taken out ofthe plan. · Parking is also a concern · The timing of the traffic scenarios should be set when school starts · For the record, after the 10-year funding cycle runs out for crossing guards and car patrols, the City isn't obligated to continue those services and future arrangements must be worked out between the City and school district · The trail in front of the resident's homes shouldn't be imposed on them · Concern about the conversion of industrial into residential · The development should be placed along the major corridor where there is public transportation · Concern about neighborhood impacts · More people opposed the project than supported it · The schools and traffic are already too congested · Concern over high-density vs. single-family · Suggestion to rezone to Rl and reduce the number of units to 45 to help with school and traffic congestion Mahoney/Kwok moved and seconded to adopt the mitigated negative declaration. The motion carried with Lowenthal absent and Wang voting no. Mahoney/Sandoval moved and seconded to approve the rezoning application. The motion failed with Lowenthal absent, and Wang and Kwok voting no. Since the rezoning application failed, the mitigated negative declaration adoption was moot. ADJOURNMENT At II :52 p.m. the meeting was adjourned to March 21 at 5:00 p.m. for commission vacancy interviews. The regular meeting will begin at 6:45 p.m. Grace Schmidt, Deputy City Clerk 1-f-3'f March 8, 2006 Cupertino City Council Page 7 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. '-/-46