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CC 02-07-06 ." o CUPEIQ1NO APPROVED 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 (Vallco 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. 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 moved 3- 1 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, from the Fremont Union High School District ORAL COMMUNICATIONS Janice Ishii complained of noise from the nighttime construction at Vallco, 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. 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 SandovallKwok 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/Deputy Treasurer appointment, Resolution No. 06-031. 7. Approve the City Investment Policy 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. 11. Approve an application for an Alcoholic Beverage License for Wahoo's Fish Taco, 19626 Stevens Creek Boulevard (Marketplace). February 7, 2006 Cupertino City Council Page 4 ITEMS REMOVED FROM THE CONSENT CALENDAR (above) 3. Adopt resolutions accepting Accounts Payable 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 Enterprises 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 must 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. WanglKwok moved and seconded to deny the appeal and uphold the Planning Commission's decision. The motion carried unanimously. February 7, 2006 Cupertino City Council Page 5 RECESS Council was in recess from 8:10 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: V-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 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 complement 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 ofthe 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. February 7, 2006 Cupertino City Council Page 7 The following people spoke in favor ofthe 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 ofthe Cupertino Senior Commission Beverly Bryant, Executive Director of the Southern Division ofthe Homebuilders Association Their comments included: · The need for a variety of the housing options in the community, 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. AI 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. 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 community 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. 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 amendment 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. 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 · If units 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. K wok 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 February 7, 2006 Cupertino City Council Page II 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. MahoneylKwok moved and seconded to adopt the negative declaration. The motion carried unanimously. MahoneylKwok 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. MahoneylKwok moved and seconded to approve the Architectural and Site application for demolition of approximately 15,300 square feet of existing commercial space and 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 Advisorv 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 Shopping/Residential) 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 (l-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). 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 February 7, 2006 Cupertino City Council Page 13 ADJOURNMENT At I :45 a.m. Council adjourned to Tuesday, Feb. 13, at 7:30 p.m. for Planning and Public Safety Commission interviews, Conference Room A, 10300 Torre Avenue, Cupertino. Kimberly Smi , ity 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.