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CC 03-06-95 CC-897 MINUTES Cupertino City Council Regular Meeting March 6, 1995 PLEDGE OF ALLEGIANCE At 6:46 p.m., Dean called the meeting to order and led the Pledge of Allegiance. ROLL CALL Council members present: John Bautista, Don Burnett, Barbara Koppel, Lauralee Sorensen and Wally Dean. Council members absent: None. Staff present: City Manager Don Brown; City Clerk Kimberly Smith; Administrative Services Director Carol Atwood; Community Development Director Bob Cowan; City Attorney Charles Kilian; Parks and Recreation Director Steve Dowling; Public Information Officer Donna Krey; and Public Works Director Bert Viskovich. CEREMONIAL MATTERS - PRESENTATIONS POSTPONEMENTS The Community Development Director recommended that Item No. 12, second reading of Ordinance No. 1680, be continued to April 17. Mr. Jim Sisk, representing the applicant, said it was a normal zone change and that final development of the project was subject to cancellation of the Williamson Act provisions. The applicant was in the middle of designing and funding the project and would like to have an approved zone change. The Commtmity Development Director explained that the city may be able to use the San Jose model of school fees. If the Council enacts the zone change this evening, they will be unable to take advantage of a similar condition. It was moved by Sorensen, seconded by Burnett and passed unanimously to postpone Item No. 12, the second reading of Ordinance No. 1680, to the meeting of April 17 to allow staff to analyze school impact fees. ORAL COMMUNICATIONS None. March 6, 1995 Cupertino City Council Page 2 CONSENT CALENDAR Koppel moved and Sorensen seconded to approve the Consent Calendar as presented. The motion carried 5-0. 1. Resolution No. 9292: Accounts Payable, Februa~ 17, 1995. 2. Resolution No. 9293: Accounts Payable, Febwary 24, 1995. 3. Resolution No. 9294: Payroll, February 24, 1995. 4. Approval of February 6 and February 21, 1995, City Council minutes. 5. Resolution No. 9295: Setting date for consideration of annexing area designated "Lomita 94-09" located on the south side of Lomita Avenue between Orange Avenue and Pasadena Avenue, approximately 0.30 acre, Hellesoe/House (APN 357-18-001). 6. Resolution No. 9296: Accepting quitclaim deed and authorization for underground water rights, John A. Bartas and Jenny Lee, APN 342-14-014, 10230 Lebanon Drive. 7. Resolution No. 9297: Accepting grant of easement for roadway purposes from Ching '~"~ Sung Kuo and Kuei Lee, husband and wife, APN 359-20-034, McClellan Road. 8. Acceptance of city project performed under contract: Landscape Improvements by Route 85, Project 94-109 (B&B Landscaping). Vote Members of the City Council AYES: Bantista, Bumett, Dean, Koppel, and Soreusen. NOES: None ABSENT: None ABSTAIN: None NEW BUSINESS 9. Consideration of amendments to the Housing Mitigation Manoal regarding the priority system for selection of participants. The Community Development Director reviewed the staff report and showed a chart which illustrated changes that the Planning Commission recommended in their minute order of Febrnary 27, 1995. '-- Koppel moved and Soreusen seconded to approved text changes to sections 1.2.7, 1.4.3, 1.5.5, 1.8.1, 2.2.5, 2.4.3, 2.5.1, and 2.8.1 of the Housing Mitigation Procedural Mannal. The motion carded unanimously. March 6, 1995 Cupertino City Council Page 3 10. Consideration of scope of review for possible general plan amendments regarding Tier II The Community Development Director reviewed the staff report and the options and procedures available to the Council Burner reviewed a series of overheads which he had prepared regarding the Tier II subject. He said that it would affect the look of the community, transportation, and how much housing would be needed, and that it was the source of most of the growth that he felt was excessive. He felt that all three aspects of the tier system could be deleted with little ripple effect because it was grafted onto the General Plan. Burnett reviewed overheads entitled, "Cupertino General Plan Non-residential Growth", "Cupertino Land Availability", "Direct Job Estimates Per Cupertino Nexus Study", "Housing Needs Estimate Per Cupertino Nexus Study", "Floor Area Ratio Examples" and a chart listing the 1993 General Plan growth square footage, as well as a chart showing office/industrial development priorities. He said that less than 3% of the flat land in Cupertino is now vacant. With the Tier II system, there would be almost a 50% increase in non-residential growth, which would change the appearance of the city. Bumett said he believed Council could handle any reasonable request coming up under the General Plan by carefully watching where it is placed and trying to achieve a balance in the city without the tier system, and they will have removed the possibility of going into the overload that the tier system would cause. Virginia Tamblyn, 19721 Bixby Drive, speaking on behalf of Cupertinians Urging Restraint in Building (CURB), said that they were concerned about the quality of life and traffic impacts in Cupertino. Council members were elected whose campaigns featured controlled growth, and CURB was concerned about the potential growth allowed by the General Plan adopted in 1993. They urged the amount of non-residential building be limited. Mr. Dick Rosemeier, Operations Manager for Hewlett Packard, said the last General Plan review been a long, complex process and the components were intricately mixed. Reopening it and changing any part would weaken the entire structure. He pointed out that traffic created in Tier II must be mitigated, and must be proved in advance. Regarding jobs, the numbers and used in the nexus study were not indicative of what was already going on in the city. Even though Hewlett Packard would have the most favorable impact if Tier II were taken away, they were opposing it because they had been asked to work together with the other two big companies to come up with workable methods. Removal of Tier II would make the companies work at odds, or would make a stronger case for one of them. Mr. Rosemeier said these had been long term plans and they wanted to continue working under the framework of the current General Plan. ~-- Hewlett Packard could have a positive impact on many different areas of the community through their work at the regional and state levels. He asked that Council continue to let them focus on those issues and not divert their efforts. March 6, 1995 Cupertino City Council Page 4 Mr. Dick Carey, 10138 Barbara Lane, said that he had followed the General Plan discussions, and did not know of any other community that had successfully used a tier system. Mr. John Statton, representing the Cupertino Chamber of Connnerce, said that the City Council already has the power to halt development, especially if it is not in the long-term interests of the city. This current General Plan is the result of three years of public policy development which sent a strong signal to the firms that they are welcome here and they have value in the community. This gives them some certainty in their future and allows planning for future growth. It did not provide an entitlement or guarantee that it would happen at a particular time. There are no plans to develop even a fraction of the total allowed, but having it in the plan provides security that corporations need. Responsible growth is important to the city's economic future. If the General Plan is to be reopened, it should include the public process, and be as far-reaching as before to discuss the needs of both businesses and residences. Mr. Glenn Barber, 10257 Vista Knoll, representing Apple Computers, said that he was also speaking as a resident of Cupertino. He said the executive management team of Apple has their headquarters here and they want to continue to do so. However, they are very disappointed that Council would consider re-opening the General Plan process because of the process involved. The General Plan was crafted to give a look to the next decade and beyond, but slightly more than a year later, they are faced with going through the review process again. He said they felt a sense of betrayal that some newly-elected members and some members previously on Council are eliminating an opportunity for Apple to have responsible control of growth. Although Apple's executive management team wants to build a new headquarters building here, if the General Plan is reopened, they are unlikely to do that. Mr. John Hailey, representing Tandem Computers, said that removal of the Tier II system represents a devaluation of a significant effort and commihaent made by all three parties over three years. It was done in good faith, recognizing it was a once-in-ten-year process. They cannot afford to participate in that type of process again, particularly if there is no reasonable degree of certainty that agreements won't last longer than a year or two. There appears to be no new compelling information to cause the General Plan to be re- opened. He said this issue is related to goodwill and long-term relationships. In the late 1980s, they were encouraged to purchase buildings in the city, thereby demonstrating long-term commitment to the community. Tandem did that, and is now asking if that was a good idea. Mr. Howard Johnson said that he was representing the Sierra Club, Loma Prieta Chapter, and that he was chaiiman of the political committee. Mr. Johnson expressed concern about air quality standards and the jobs/housing balance. He said that Council's approval the 204-unit apartment complex was an example of a way to correct the jobs/housing imbalance, and the project would help to reduce driving. Mr. Johnson said that in the last March 6, 1995 Cupertino City Council Page 5 City Council election, those who won the most votes were those who voted to correct the housing imbalance. He said that the ability to telecommute means workers can live all over the valley. He urged that Council re-open the General Plan and eliminate the extra 2 million square feet of development for which there is no housing. Mr. Julian Rice, 1022 Phar Lap Drive, said that two things he most heard people saying during the election was that the Heart of the City wasn't very realistic and that they were very concerned about the mount of indu~ixlai growth. He urged that the Council re-open the General Plan as far as Tier II because that was not responsible growth. Ms. Sue Mirch-Kretschmann, 20568 Blossom Lane, said that Council's present responsibilities to residents and employees include trying to meet housing numbers in the General Plan and at the same time providing a means of controlling traffic. She was concerned about the ability to provide housing, schooling and recreation sites for growth permitted in Tier II. Council should focus on providing adequate housing, reduction in traffic and provisions for schools. Mr. Farokh DeBoo said he felt that there were new facts to cause the reopening of the General Plan. Many people are opposed to the growth allowed and they did speak up about traffic mitigation that came out after Tier II. He discussed the reduced parking at Chateau Cupertino and said that a lot of parking was taken by staff and traffic was generated by service providers. He said Council should not be held hostage by the large companies and what they might not build here. Mr. Albert Hoffixxan, 10209 Nile Drive, said he was an employee of a large company which was continually updating its business plan and it was appropriate for a city to do the same. It is not good enough to wait ten years and then reopen the General Plan. He said that calculations show that the maximum growth would require an average of 55- story buildings for all commercial development and an average of 45 units per acre for the valley land. The Public Information Officer reviewed electronic messages received. Two were from Ms. Nadine Grant. She voiced her concern at the fiscal impact of opening the General Plan. Council should use the methodology of amendments with the understanding they will be implemented fmmally in the next General Plan review. Even if the plan is reopened, important additions such as the hillside protection policy need to be preserved. She felt it was too costly a process to undertake as defined and if such a major overhaul is required, the City needs to allocate more time before the next revision. An electronic message was received from Ms. Deborah Jamison. She said that the newest members of the Council were elected because of their opposition to the General Plan. There is a large constituency in the City for eliminating the tier system and t~lucing the allowable industrial buildout. Fundamentally, Cupertino should be for the residents and a good quality of life with a healthy balance of business that will not jeopardize the environment. March 6, 1995 Cupertino City. Council Page 6 An electronic message was received from Bob Condon who asked if the additional expense involved in re-opening the General Plan at this time is consistent with sound fiscal management. Koppel said that companies are being lured to g9 to other communities. With the down turn in the economy, the city needs to hang on to the great companies they already have and encourage them to expand because additional square foot_age means new jobs. The possibility of expansion along Highway 85 is as it should be. The "Big Three" companies were the fzrst in line to support Highway g5 and the open space tax measure. They are bearing the brunt of the utility tax and they pay more than their fair share. One of Council's goals is to be friendly to business. The General Plan was approved after nearly four years of community, Council and Planning Commission debate, and if it is reopened, Council must question their own credibility. Also, Senator Campbell is receptive regarding housing requirements and may be making some changes in the legislature to ease those requirements. Bautista said there are significant quality of life issues that are threatened by the current General Plan. Cupertino citizens feel that the quality of life was threatened from a variety of viewpoints including traffic, which is a direct result of the industrial and residential growth, industrial and housing densities, and building heights. He said he believed in limited growth in industrial and housing and would like to see an addition to the re- evaluation of Tier II. The community and Council should push the legislators to fred ways to fund mandates or eliminate the anfunded mandates that the state imposes. The relationship between the jobs/housing balance is the reason that he voted against the high density on the Forge development. Council should look at the quality of each project and lower densities on housing sites which directly impact the quality of life. Baufista said he also has a concern about traffic demand management and its effect, since it would require constant surveillance and monitoring by the City Council. The other part of the problem is the ABAG numbers and the housing densities are allocated in the General Plan. Hopefully, those will be covered within his term. Sorensen said she had a concern in three areas. One is the severe decrease in traffic services limit, but Tier II does provide for mitigation. In future years, there may be more mass transit. Increased housing mandates are another concern. If Council start changing the General Plan, the city may lose its state endorsement of the Housing Element. Fundamental changes in the city's appearance is another concern, but Council can control that through long-term planning, and can control density and height of buildings. She felt that residents wanted to keep the economic vitality of our city. Soreusen said the General Plan is an instrument of compromise and should not be changed every election. She said she could not vote for re-opening the General Plan. She valued the high tech companies and the values they provide. She asked that Council walt until the normal revision period which occurs in five years. Burner said that his concerns were with the appearance of the city, traffic problems and housing. The appearance will change drastically when the last portion under Tier II is built out. Regarding traffic mitigations, he felt Council should stay with the old General March 6, 1995 Cupertino City Council Page 7 Plan and demonstrate .under that plan that the traffic impacts have been mitigated. The only mass transit to be put in place will probably be buses, because even if Measure A is upheld there will be difficulty in providing the systems and services for the projects that are already approved. He said that growth creates a need for housing. There is a point at which the interest of the community becomes paramount and the city has reached that point. Dean summarized the other Council members' comments. He suggested that they removed the words "Tier II" and tell the companies that when they are ready to build, present it to Council and at that time it will be evaluated on its own merits. The City Manager said it seemed that Council was not only talking about Tier II issues, but the basic General Plan below the Tier II level. Burner said that the housing issues were fundamental, and not just related to the state mandate. There must be some place to live and it doesn't matter whether the state says so or not. If housing is not provided here, it will be provided in the valley, which will result in the worst aspects of urban sprawl. People and companies are leaving California because prices are too high. The tier system sends us towards a bad urban planning situation. Dean proposed that Council modify the term "Tier II" and add wording that says the goal is that the three big companies still have the oppommity to present plans whenever they are prepared to build and at that time Council will make the decision if it will work or not. Dean stated that if the General Plan were to be opened up, it would be in a very specific manner. Burner stated that Council could direct the Planning Commission to hold hearings to determine whether Tier II should be eliminated or not. The City Manager suggested that clearer direction be given to the commission. He said the staff could bring back some language for Council review. Dean agreed with that suggestion and said that Council could then make a decision on what they want to do with it. Bautista stated if Council has six or seven options and gets public input, they could find something that meets the majority of the city's needs. They don't need to say tonight that we will necessarily open the General Plan, but they should solicit public input in evaluating a set of options presented by Council and staff. One option is to keep Tier II the way it is. Another option is to delete it. Koppel said there had been 1 O0 people on the Goals Committee which represented a lot of public comment. Some were satisfied and some were dissatisfied. The General Plan was approved. Council must make a decision and stick to it. March 6, 1995 Cupertino City Council Page The Director of Community Development said his understanding was that staff should come back in two weeks on March 20 with a set number of approaches for how this General Plan could be amended and allow public input at that time, but to not start the General Plan process with all the CEQA requirements. The City Attorney discussed his concerns regarding the risk of a pre-hearing on the General Plan and said it would be acceptable if there are a series of limited approaches. The City Manager said that Dean is suggesting that Council allow mitigation at some figure above the General Plan without defining it. Burnett is saying that he wants no growth above Tier I. There appears to be a fundamental conflict and therefore there are not three votes at this point. Koppel moved to not re-open the General Plan. Sorensen seconded, and the motion failed 2-3 with Bautism, Burnett and Dean voting no. Bautista moved to open the General Plan to discuss a number of options that may include elimination of Tier II as one of the options, but that there would be other options that Council will put on the table. They would discuss those options in the public context and not send them to the Planning Commission at this time. As an example, one of the options could be the elimination of Tier II from the General Plan. Dean seconded and the motion carried 3-2 with Koppel and Sorensen voting no. The City Manager said that the options could be developed prior to the next meeting, but Council should consider the next step and be sure there is no fundamental disagreement. At 8:50 p.m., the Council recessed. At 9:05 p.m., Council reconvened. 11. Request for authorization to demolish permanent structures at Fremont Older site. The Public Works Director reviewed the staff report and discussed the damage caused by recent winter storms. He said that approximately 46,000 square feet would be demolished at a cost of $200,000 - $250,000, but the portable modules would be retained. Actual figures will be provided at the time of the bids. Koppel moved and Sorensen seconded to authorize staff to proceed with advertising and receiving bids for the demolition of the structures at the Fremont Older site. The motion passed unanimously. March 6, 1995 Cupertino City Council Page 9 ORDINANCES 12. Second reading and enactment of Ordinance No. 1680: "An Ordinance of the City Council of the City of Cupertino Approving a Zone Change of a 9.26 Acre Parcel from A-215 to P (Res. 10-20), Planned Residential Development for 10-20 Units Per Gross Acre (Application 3-Z-94)." This item was previously continued to the meeting of April 17. 13. Second reading and enactment of Ordinance No. 1681: "An Ordinance of the City Council of the City of Cupertino Amending Condition 7 of Ordinance 1223 and Revising Ordinance 1248 Also Known As the Stevens Creek Boulevard Conceptual Zoning Plan for the Parcels Located on the Southwest Comer of Stevens Creek Boulevard and Tantau, Also Known As APN 375-07-002 and 375-07-003." The City Clerk read the title of the ordinance. Bumett moved and Koppel seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the second reading thereof. The motion carded 5-0. Burner moved and Koppel seconded to enact Ordinance No. 1681. The motion carded 5-0. 14. Second reading and enactment of Ordinance No. 1682: "An Ordinance of the City Council of the City of Cupertino Amending Ordinance No. 1426 and Adding Chapter 19.82 to the Cupertino Municipal Code to be Entitled 'Beverage Container Redemption and Recycling Centers'." The City Clerk read the title of the ordinance. Bumett moved and Koppel seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the second reading thereof. The motion carded 5-0. Burner moved and Koppel seconded to enact Ordinance No. 1682. The motion carried 5-0. 15. Second reading and enactment of Ordinance No. 1683: "An Ordinance of the City Council of the City of Cupertino Amending Chapter 11.24.150 of the Cupertino Municipal Code Relating to the Establishment of Parking Prohibition on Franco Court from Homestead Road to the Southerly Temtinus." The City Clerk read the title of the ordinance. Bumett moved and Koppel seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the second reading thereof. The motion carded 5-0. Burnett moved and Koppel seconded to enact Ordinance No. 1683. The motion carded 5-0. March 6, 1005 Cupertino City Council Page 10 STAFF REPORTS A. Oral reports by staff members and submission of written reports. None. B.' Sales tax updates and budget adjustments - Joint Venture Silicon Valley and fireworks. The Administrative Services Director distributed and reviewed a surmnary report dated March 6, 1995 regarding budget adjustments and a chart illustrating updated revenue figures. Koppel moved and Sorensen seconded to appropriate $1t,000 for Joint Venture Silicon Valley without a three year commitment and to put fireworks in the next budget for consideration. The motion carried 4-1 with Dean voting no. Staff agreed to put Joint Venture Silicon Vailey's request for funds in with the regular budget cycle next year. C. Monthly Treasurer's Report and Budget Update format changes. The Administrative Services Director reviewed the staff report and proposed format changes. Council concurred to accept the format changes to the monthly treasurer's report and the budget update. COUNCIL REPORTS · Koppel reported that the sales tax will be dropping 1/2 cent beginning April 1 to 7.75%. If Measure A is approved by the Supreme Court, it will go back up again. Sorensen reported that the Manufacturer's Crroup meeting was excellent. Bautista agreed and said that they support the concept that the overall density of 14 units per acre is considered acceptable. Burner reported on a workshop scheduled for June 9 regarding elected officials' fiscal responsibility. City Manager reported on the Legislative Review Committee recommendations. March 6, 1995 Cupertino City Council Page 11 Bautista moved to take the following actions: Support SB43 (Johnston) concealed weapons pe~iiaits: oppose SB282 (Petris) public safety officers procedural bill of fights; oppose cellular tower zoning preemption by writing to the PUC and FCC; support AB1340 (Sweeuey) and write to Assemblyman Jim Cunneen and ask him to support the bill and expand it to include Santa Clara County in binding land use agreements. Bumett seconded and the motion carried unanimously. CLOSED SESSION At 9:37 p.m., Council recessed to a closed session to consider negotiations for purchase of real property at 10471 Miller Avenue pursuant to Government Code Section 54956.8. At 9:40 p.m., Council reconvened in open session. Koppel moved to approve the acquisition at 10471 Miller Avenue in the amount of $220,000 including closing costs; that Council appropriate that amount from the park dedication fund; and that they adopt a resolution authorization the recordation of a grant deed. Sorensen seconded and the motion carded unanimously. ADJOURNMENT At 9:40 p.m., the meeting was adjourned. City Clerk