CC 02-27-06
I F
CUPERJINO
APPROVED 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
1. 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 City 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.m. for
additional meetings, as necessary. (No documentation in packet).
Council members concurred 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
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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 from 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
SandovallK wok 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 Pavroll 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.
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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.
11. 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 improvement 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 amendment (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 CYIA) 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
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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 10-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 VT A 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 measure 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
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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.
SandovallKwok 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.
SandovallKwok 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
ShoppinglResidential) 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-2005-1l, 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
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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
Vallco'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; ifthe condos are built, students will be bused to other schools
· Residential development north ofthe 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
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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 condominium 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
VaIlco 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
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. 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 timeline 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 Study 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 Oil 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 (Taylor 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
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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 + 1 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 peRES) (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 unanimously.
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 moved 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 adiustments 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.
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25. Select a date and time for a Council workshop on personal emergency 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 Amending Sections of the Cupertino Municipal Code Changing
the Term Expiration Date for Advisorv Commissions from January 15 to January 30."
(Continued from February 7 to a time certain of 6:30 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.
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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.
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.