04. Draft Minutes 04-04-06
DRAFf MINUTES
CUPERTINO CITY COUNCIL
Regular Meeting
Tuesday, April 4, 2006
CUPEIQ1NO
ROLL CALL
At 5:30 p.m. Mayor Richard Lowenthal called the meeting to order in the Council Chambers,
10350 Torre Avenue, Cupertino, California.
Present: Mayor Richard Lowenthal, Vice-Mayor Kris Wang, Council members Patrick
Kwok, Orrin Mahoney and Dolly Sandoval.
STUDY SESSION
1. Conduct a study session on industrial business in Cupertino (continuing discussion
from March 7).
Community Development Director Steve Piasecki presented an analysis of properties
that are on the edge of the office, commercial, and industrial land use designations
and abutted residential uses. The identified edge properties included: North Valleo,
South Valleo, North De Anza, and Bubb Road. Staff recommended that the
residential overlay be retained on these properties noting that the eventual conversion
of these properties to residential use would draw clearer boundaries between revenue
generating and non-revenue generating uses. Removal of these industrial/office
buildings would constitute 13.43% of the total industrial/office square footage in the
City. Concerning the housing element, Mr. Piasecki stated that the housing element
of the General Plan was not dependent on the residential overlay since there was
sufficient inventory of adequate sites to accommodate the units that are in the General
Plan.
Planning Commission Chairman Marty Miller noted that part of the Commission's
2006 work program was the study of obsolete research and development properties in
the City to determine appropriate long-term use. Specifically, the Commission was
recommending that the Council authorize the preparation of a master plan for the
north Valleo area. Commissioner Miller believed it was important to have a
systematic approach to these properties and to the connectivity between them. It was
also important to involve the community in these discussions.
Council discussed the following issues: the impact on the financial value of the
property; the protection of campus oriented businesses; the idea of contiguous
campuses; the possibility of a moratorium while this issue was being reviewed (about
six months); the schedule for Planning Commission review, joint meetings with the
Planning Commission and study sessions; direction to staff to discuss with Apple
Computer the issue of a residential overlay; impact on infrastructure; impact on
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community; impact on quality of life; suggestion that Council focus on one particular
section while the Planning Commission focused on North Valleo; plan for reviewing
all residential overlays in the City - not just these four identified properties; and what
the impact would be if all residential overlays in the City were removed.
Council agreed that the Planning Commission would prepare a Master Plan for the
North Vallco area aiming for completion by the beginning of July. In the meantime,
the Commission would provide Council with periodic updates, and study sessions
would be ongoing with the possibility of a joint meeting of the City Council and
Planning Commission. In addition, Council asked the Planning Commission to pay
particular attention to the economic and quality of life impacts of this issue and to
include the Chamber of Commerce, community and property owners in their
discussions.
Jennifer Griffin urged that the Council not allow the conversion of industrial/tech
lands into housing. She said that she believed industry and technology were an
important part of the community and important to the growth of the community. She
noted that once these lands were converted to housing they could never be changed
back to industrial/tech land. She supported Council removing the residential overlay
on the North and South Valleo land.
Kevin Wu, Pacific Resources, commented on the current state of the commercial
market. He noted that he had acquired property in the city, which was very difficult
to lease in the current market conditions. Mr. Wu stated that there was a disparity
between classes A, B and C properties. Class A were the spaces sought after by
tenants, such as Apple, but Class B and C spaces tended to be vacant for a long time.
In order for these functionally obsolete sites to be useful, the buildings needed to be
demolished to pursue other options for the best use of the property.
David Sass stated that he was seeing more of a trend to high-end office space. He
was not seeing a lot of tech use. Mr. Sass said that he believed housing was
important for the current needs of the community.
Martin Bishop recommended that the largest high tech employers in the City purchase
some of the outdated commercial facilities and convert them into housing for their
employees. He suggested that they could also provide childcare for their employees.
Council recessed until 6:45 p.m.
PLEDGE OF ALLEGIANCE
At 6:45 p.m. Mayor Richard Lowenthal called the meeting to order in the Council Chambers,
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.
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PUBLIC COMMENTS REGARDING CLOSED SESSION
Joseph Ye spoke on behalf of the California Dolphin Swim School (CDSS) on the subject of
the lease and upgrade of the pool at the Cupertino Sports Center. He noted that this project
had gone through some challenging times and was presently downsized from the scope of the
original project. The existing pool enclosure would be used and the pool house would be
updated only for compliance with ADA requirements. Mr. Ye believed this was a win-win
situation for the City as well as for the CDSS. He noted that it would attract world-class
Olympic swimming instructors and the City could use up to $130,000 funding from the
private sector tenant to upgrade the pool. Mr. Ye also stated that this was a profitable long-
term arrangement from a real estate point of view.
CLOSED SESSION
2. Negotiations for purchase. sale. exchange or lease of real property - Govermnent
Code Section 54956.8, California Dolphin Swim School Lease, Therese Smith, Don
McCarthy, Charles Kilian, Terry Greene.
Council agreed to move item 15 forward on the agenda.
Sandoval/Kwok moved and seconded to agree to accept Mr. Ye's offer in his 3/28/06
letter to cancel the lease between the California Dolphin Swim School and the
Cupertino Sports Center. This was done without prejudice to negotiate a new and
different lease with CDSS, which may include items raised by Mr. Ye in his 4/4/06
letter. Staff will bring a status report to the May 2, 2006 Council Meeting on this
issue. It was further noted that discussions at this time would be limited to CDSS.
CEREMONIAL MATTERS - PRESENTATIONS
3. Presentation from Board member Tony Estremera of the Santa Clara Valley Water
District for Cupertino's membership in the Water Resources Protection Collaborative,
"Escaping the Constraints A ward" from the Public Officials for Environmental
Reform (POWER) (continued from January 3).
Tony Estremera thanked the Council for its continued support of the Water Resources
Protection Collaborative and presented them with a 2005, "Breaking the Constraints
Award" from the Public Officials for Water and Environmental Reform. This award
was given to those who had overcome obstacles to move California Water Reform
forward.
4. Presentation of a donation from the Monta Vista High School Future Business
Leaders of America for the Library donation campaign.
Barbara Rogers, on behalf of the Library Foundation Board, introduced four members
of the Future Business Leaders of America. She noted that they organized two
cultural events at the Quinlan Center as a fundraising event for the library. Mrs.
Rogers also introduced other members of the Board who were present. Mayor
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Lowenthal accepted a check in the amount of $3,850 from the members of the Future
Business Leaders of America and thanked them for this accomplishment.
POSTPONEMENTS
Regarding item 25, the City Attorney noted that Val leo's attorney had requested a
continuance to the May 2 meeting and he agreed with this request.
MahoneylKwok moved and seconded to continue item 25 to the May 2 Council Meeting.
The motion carried unanimously.
Regarding item 15, staff was requesting a continuance to May 2 as the staff person handling
this issue had just had a baby. It was also pointed out that a continuance would give the
Housing Commission the opportunity to discuss this matter at its next meeting.
Kwok/Mahoney moved and seconded to continue item 15 to the May 2 Council Meeting.
The motion carried unanimously.
Regarding item 23, Councilmember Kwok asked that it be removed from the agenda. He
noted that he had originally requested that the matter be discussed but he now suggested that
this matter be brought back when Council discussed criteria for the awards.
Kwok/Wang moved and seconded to take item 23 off the calendar. The motion carried
unanimously.
WRITTEN COMMUNICATIONS
ORAL COMMUNICATIONS
Paul Poon stated that a referendum against the Council's approval of housing at both the
Valleo project and Toll Brothers project (Ordinances #1975 and #1977) was being circulated.
The referendum would place these ordinances on hold and the matter would go to the voters
on the November 2007 ballot at very little or no cost to the City. Mr. Poon noted that they
needed 3,000 signatures within 30 days and he urged everyone to go to the library and sign
the referendum.
Lola Kashyap urged the City to support solar energy as a renewable resource.
Charlie Ahern first clarified a statement he made at an earlier meeting. Specifically, he
suggested removal of a tree at Finch and Stevens Creek, and not the sycamore on the Toll
Brothers' property. Second, he urged everyone to not support the referendum. He questioned
the method of collecting signatures, noting that those circulating the referendums were
refusing to give copies of the document and would not let people read what they were
signing. He also urged Council to clarifY the issue of the impact on the schools. Mr. Ahern
referred to an article in the 11/10/05 issue of the San Jose Mercury on the defeat of Measures
A,BandC.
Rahul Vadodkar supported the referendum and clarified that no one had asked for a copy but
certainly would be given one if they had. He also stated that everyone was welcome to read
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the entire document. On the subject of the school issue he said he appreciated that the
Council was unable to judge an application based on its impact on the schools but the
residents were not so prohibited. The overcrowding of schools was an important issue to
many.
Nelson D'Souza noted that he was collecting signatures for the referendum and anyone was
weleome to see these documents at any time. He stated that the citizens had a right to vote
on this.
Shilpa Joshi supported the referendum and urged everyone to sign it.
CONSENT CALENDAR
Sandoval!Kwok moved and seconded to approve the items on the Consent Calendar as
recommended, with the exception of item 9, which was pulled for discussion. The motion
carried unanimously.
5. Adopt resolutions accepting Accounts Payable for March 17 and 24, Resolution
Nos. 06-057 and 06-058.
6. Adopt a resolution accepting Payroll for March 24, Resolution No. 06-059.
7. Accept the Treasurer's Investment Report for February 2006.
8. Approve budget adjustment to cover costs of additional City Council and Planning
Commission March meetings.
10. Adopt a resolution setting a public hearing date of April 18 to consider abating ª
public nuisance at 10630 Carver Drive, APN No. 375-32-020, Patrick W. McGrath
property owner, Resolution No. 06-060.
11. Adopt resolutions approving an improvement agreement with Sandra L. Delgado,
10739 Santa Lucia Road, APN 342-17-100:
a) Lot 1, Resolution No. 06-061
b) Lot 2, Resolution No. 06-062
12. Adopt a resolution supporting AB117 (Cohn) to restore full property tax TEA
Funding to the City of Cupertino, Resolution No. 06-063.
ITEMS REMOVED FROM THE CONSENT CALENDAR
9. Authorize recruitment of a part-time Disaster Preparedness position to assist with the
existing training courses, outreach and volunteer management.
Robert Levy stated that he was an emergency preparedness volunteer and with all the
programs being included under the umbrella of disaster preparedness, he did not think
a part-time position was enough. He urged Council to consider more than just a part-
time position.
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Council commented on budgetary constraints and also noted that they were now
being trained in emergency preparedness.
Sandoval/Wang moved and seconded to authorize recruitment of a part-time disaster
preparedness position to assist with the existing training courses, outreach and
volunteer management. The motion carried unanimously.
PUBLIC HEARINGS
13. Consider adopting a resolution adopting the 2006-07 Annual Action Plan and the use
of fourth program year (2006-07) Communitv Development Block Grant CDBG)
Funds and Human Service Grants, Resolution No. 06-064.
Kwok/Sandoval moved and seconded to adopt Resolution No. 06-064. The motion
carried unanimously.
14. Consider adopting a resolution accepting the 2006-07 Fee Schedule, Resolution No.
06-065.
Director of Administrative Services Carol Atwood reported that staff had reviewed
the user fees with the goal of cost recovery in place. Except for the following specific
fees, she noted that all other fees were either increased by a cost of living factor of
3% or kept at the same level as last year. The four fees for separate consideration
were: parking permit fees, solar permit fees, reconsideration fees and tree removal
fees. The issues involved whether or not Council wanted to keep the parking permit
fees at a cost recovery level ($22.50 per year) or remove this fee; charge a flat fee for
solar installations; charge $500 for reconsideration requests of Council decisions to
cover additional staff time, noticing, etc.; and increase the fine for removal of heritage
trees (currently $2,536 for a permit to remove tree and a $2,536 fine for removal
without permit). In addition Ms. Atwood noted that the building fees were under
separate review and would be brought to Council in August/September.
City Attorney Charles Kilian noted that Cupertino was a General Law city and was
covered by different rules than Charter cities. Regarding the tree removal issue and
fines in place in other cities, he recommended that comparisons be made with other
General Law cities for a more effective comparison.
Council directed staff to review other General Law cities and to have the consultant
review tree removal without a permit for heritage and protected trees in conjunction
with the review of building fees. In addition Council requested that the housing in-
lieu mitigation fee for residential housing be reviewed in conjunction with the
consultant's study.
Director of Public Works Ralph Qualls referred to the parking permit fees and noted
that the consultant, in line with the cost recovery goal, had recommended this fee. He
noted that there were 539 parking permits in the City. The process whereby residents
in a neighborhood requested parking permits was simply reversed if they wanted to
remove permit parking. They signed a petition and submitted it to the City requesting
no more permit parking.
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Robert Levy commented on the tree removal issue and the permit costs involved in
replacing a home lost, for example, in a fire. He suggested the City was trying to
replace monies, which had been taken away by the State by issuing such fees. He
noted that with the lack of a citywide tax, the Council was placing the burden on
individuals with such fees.
Kurt Newick stated that it was critical that everyone paid attention to the sun as our
energy source. He supported the Sierra Club's recommendation of a flat rate of $300
or less for solar permits.
The following spoke against the parking permit fees: Suzanne Ford, Michael Jordan,
Ed Ford and Bill Kuncz. They raised the following issues: inequitable - some
residents have to pay for what others get for free; problem with inadequate number of
permits per household and stolen guest permits and stickers; inadequate notification
when this fee was put in place; poor response from Sheriff's Department; and this fee
should not be a source of revenue for the city.
Dan Marshall supported the flat $300 fee for solar installations particularly as he
believed such installations were furthering the public good. He also suggested that
some inspections might be waived for these installations. For example, he
commented that the plans for all solar systems were basically the same, which would
reduce inspection time.
Darrel Lum stated his opposition to any fee for a reconsideration hearing.
Mahoney!Kwok moved and seconded to adopt a resolution accepting the 2006-07 Fee
Schedule, Resolution No. 06-065 with the following changes: 1) the solar installation
fee shall be a $300 flat fee for a residential system and the fee for larger solar systems
(non-residential) shall be based on the current fee structure; and 2) the petition for
reconsideration fee shall be set at $500. The motion carried unanimously.
Kwok/Lowenthal moved and seconded to eliminate the parking permit fee. The
motion failed.
Wang/Sandoval moved and seconded to continue discussion of the parking permit fee
issue to the May 2 meeting to allow staff time to provide additional information. The
motion carried unanimously.
UNFINISHED BUSINESS
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 (continued from March 7).
This item was continued to the May 2 meeting.
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NEW BUSINESS
16. Consider terminating the lease with California Dolphin Swim School.
This item had been discussed with item 2 on the agenda.
17. Consider adopting a resolution authorizing the City Manager to negotiate and execute
a non-exclusive encroachment agreement between the City and Infor-Tech
Communications, a wholly-owned subsidiary of OnFiber Communications, Inc., for
the installation and maintenance of telecommunications system throughout the City,
Resolution No. 06-066.
Kwok/Wang moved and seconded to adopt Resolution No. 06-066. The motion
carried unanimously.
18. 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 February 27).
Director of Public Works Ralph Qualls reviewed the staffreport and a chronology of
the events.
James Eller, appellants' attorney, showed pictures of the bathroom window, and
explained that it was a visual intrusion into his clients' backyard and interior space.
He requested that Council revoke or amend the permit, or declare the window a
nuisance and remove it. He further suggested possible solutions including: removing
the window, sealing the window, raising the fence or placing awnings over the
window to block the window. Mr. Eller stated that this matter had been going on
since 2003 and was not a minor modification, but an intrusion on his clients' privacy,
and his clients' had received no notification regarding the permit.
Margaret Critzer explained the visual intrusion into their home noting that from the
bathroom window one could see directly through their home to the front door. She
said that in mediation they had agreed to an opaque bathroom window that opened
only at the bottom but the owner of the condo at that time did not agree with this
option.
Council discussed the appeal before them and said that this was a matter between the
appellants and the homeowners association, and that a lawsuit had been filed.
Kwok/Mahoney moved and seconded to deny the appeal and that the Community
Development Director acted property and in full compliance with the code in issuing
a building permit for the bathroom window. The motion carried unanimously.
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19. Consider adopting a resolution authorizing the City Manager to execute a second
amendment to the City's existing agreement with the Santa Clara Valley Water
District for the reconstruction of the bridge on Bollinger Road over Calabazas Creek,
Resolution No. 06-067.
Mr. William Springer, Santa Clara Valley Water District, commented that the
physical model study was taking longer than they expected which was why the
project would not be completed this year. They were requesting a two year extension
but hoped the project would only take a year or less. He noted that a mailer was
being prepared notifying the neighbors of this delay.
Kwok/Sandoval moved and seconded to adopt Resolution No. 06-067 with the
condition that the notice to the neighbors is sent within two weeks. The motion
carried unanimously.
20. Consider Application Numbers U-2006-02, ASA-2006-04, (EA-2006-04) for Valleo
restaurants, Mike Rohde (Valleo Fashion Park), 10123 N. Wolfe Road, APN 316-20-
064 (continued from March 22):
a) Negative Declaration
b) Use Permit and Architectural and Site Approval applications to construct a
5,910 square foot restaurant (Islands Restaurant) and a 6,020 square-foot
restaurant (California Pizza Kitchen) on the northwest corner of Stevens
Creek Boulevard and N. Wolfe Road
Community Development Director Steve Piasecki reviewed the staff report.
Mike Rohde, Vallco Fashion Park Representative, stated that these two
restaurants would help the viability of the center. He also noted that this was
a regional shopping center and not a strip mall, and that there was more than
enough parking. In response to an inquiry from Council, Mr. Rohde stated that
the restaurants planned on being open by Thanksgiving when the theatres
would be open. He said that there was no further agreement with Sears for
additional restaurants in this area. Mr. Rohde concurred with the Planning
Commission recommendations.
Kurt Ellis, P&R Architects, made a PowerPoint presentation on the master
plan, the site plan, the sidewalk system, the height of the buildings, and the
courtyard shared by the restaurants.
Ching Shyu expressed her concerns about privacy and the impact on the East
Estates Drive area. She requested a change in the site plan.
Jennifer Griffin shared her concerns about the impact on the neighborhoods
but hoped that this would be a quality project that would fit in with the
surrounding area. She particularly supported no glaring colors, no palm trees,
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the protection of the ash trees, no 30-foot towers on the restaurants, and
protection of the greenbelt along Stevens Creek and Wolfe.
Council raised the issue of a pedestrian path through the Sears parking lot and
a discussion followed of ways this could technically be achieved (i.e. angled
vs. perpendicular parking). Council agreed this walkway was extremely
important.
Sandoval/Mahoney moved and seconded to adopt the negative declaration.
The motion carried unanimously.
Sandoval!Kwok moved and seconded to approve Use Permit and
Architectural and Site Approval applications to construct a 5,910 square foot
restaurant (Islands Restaurant) and a 6,020 square foot restaurant (California
Pizza Kitchen) on the northwest corner of Stevens Creek Boulevard and N.
Wolfe Road, including the Planning Commission's recommendations and the
added condition that a 4-foot wide pedestrian path be placed through the Sears
parking lot. The motion carried unanimously.
Sandoval!Kwok moved and seconded to approve the tree removal permit (EA-
2006-04). The motion carried unanimously.
21. Receive a resignation letter from Parks and Recreation Commissioner Rod Brown
and select an application deadline and interview date.
Council agreed to accept applications until Friday, May 5 and to conduct interviews
on Tuesday, May 16 at 5:00 p.m.
22. Discuss the Santa Clara County Cities Association Selection Committee appointment
to the Bay Area Air Quality Management District Board.
Councilmember Kwok recommended that Council support Monte Sereno
Councilmember Eric Garner for reappointment to the Bay Area Air Quality
Management District Board. It was agreed that Vice Mayor Wang would take this
recommendation to the Santa Clara County City Selection Committee.
23. Discuss the Crest Award process and policy.
This item was removed from the agenda.
24. Report on the City's Fiscal Strategic Plan and set a study session date of May 2, at
5:30 p.m.
Council scheduled the study session for May 2 at 5:30 p.m.
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ORDINANCES
25. 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 Rod." (Valleo) (continued from March 22).
This item was continued to the May 2 meeting.
STAFF REPORTS
COUNCIL REPORTS
ADJOURNMENT
The meeting was adjourned at 11 :50 p.m.
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 and 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.
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