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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 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 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. 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. 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 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 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 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. 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 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 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 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 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 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 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 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 + 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. February 27, 2006 Cupertino City Council Page 10 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. February 27, 2006 Cupertino City Council Page 11 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.