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CC 09-04-2012 (Special) SST 19SJ, CUPERTINO APPROVED MINUTES CUPERTINO CITY COUNCIL SUCCESSOR TO THE REDEVELOPMENT AGENCY Special Meeting Tuesday, September 4, 2012 CITY COUNCIL MEETING ROLL CALL At 5:30 p.m. Mayor Mark Santoro called the special meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California. Present: Mayor Mark Santoro, Vice-Mayor Orrin Mahoney, and Council members Barry Chang, Rod Sinks, and Gilbert Wong. Absent: none. CLOSED SESSION 1. Subject: Conference with legal counsel — anticipated litigation; Significant exposure to litigation pursuant to Gov't Code 54956.9(b): (one case) 2. Subject: Conference with Labor Negotiator (Government Code 54957.6); Agency negotiators: Carol Atwood and Amy Chan; Employee organizations: 0E3; CEA; City Attorney's Group; Unrepresented At 5:30 p.m. Council recessed to a closed session, and reconvened in open session at 6:57 p.m. Mayor Santoro announced that for item number one Council obtained briefing from staff and no action was taken, and for item number two Council obtained briefing, gave direction to staff, and no action was taken. Mayor Santoro also reported out from the Aug 21 closed session regarding Conference with Labor Negotiator (Government Code 54957.6); Agency negotiators: Carol Atwood and Amy Chan; Employee organizations: 0E3; CEA; City Attorney's Group; Unrepresented and said that Council obtained briefing, gave direction to staff, and no action was taken. JOINT MEETING OF CUPERTINO CITY COUNCIL AND SUCCESSOR TO REDEVELOPMENT AGENCY PLEDGE OF ALLEGIANCE At 6:57 p.m. Mayor Mark Santoro called the joint City Council and Successor to the Redevelopment Agency meeting to order and led the Pledge of Allegiance. Tuesday, September 4, 2012 Cupertino City Council Successor to the Redevelopment Agency ROLL CALL Present: Mayor Mark Santoro, Vice-Mayor Orrin Mahoney, and Council members Barry Chang, Rod Sinks, and Gilbert Wong. Absent: none. Present: Chairman Mark Santoro, Vice-Chair Orrin Mahoney, and Agency members Barry Chang, Mark Santoro, and Rod Sinks. Absent: None. CEREMONIAL MATTERS AND PRESENTATIONS 3. Subject: Presentation by Cupertino Toyokawa Sister City Committee and student delegates Recommended Action: Accept presentation Anjali Kausar, Jackie Summerfield, and Tammy Fox thanked the Council and introduced members of the 2011-12 student delegation. Members of the delegation said that they enjoyed spending time with their host families, making new friends, and learning about the cultural differences. Ms. Kausar also presented Council with handmade shells as a thank you for the Tsunami relief and invited them to a barbeque scheduled for September 28 at 6:00 p.m. at Memorial Park to welcome delegates arriving in September. Council member Wong thanked the Sister City Committee for its efforts and Mayor Santoro announced that a Leveraging Ethnic Diversity workshop would be held on September 20 at 10:30 a.m. in the Community Hall. Mayor Santoro presented a proclamation and other gifts to Interim City Manager Amy Chan since this was her last Council meeting as Interim City Manager. POSTPONEMENTS - None ORAL COMMUNICATIONS Sunil Nethisinghe and Gauri Gularia from Cupertino Rotary gave a PowerPoint presentation regarding the Silicon Valley Fall Festival which will be held on September 22 at Memorial Park from 10a.m to 6p.m. They highlighted many of the groups attending and what the entertainment would be. Ricky Shen and his wife Ella said that they submitted a construction plan to the City for review. Mr. Chen noted that different layouts were examined but none of them were satisfactory or practical. He said that after three months, they had an architectural plan drawn up. He showed pictures of other homes in his neighborhood that were approved to have the eating areas behind the garage. He explained that he could not see any reason why his remodel plans should not be approved when other, similar plans have been approved in the past and he said that he wasn't satisfied with the answers he received from the planners. He stated that it is very expensive to build or remodel a home in Cupertino and requested that his plans be approved with the same style as his neighbors. Council requested that staff provide information to them about this project. Tuesday, September 4, 2012 Cupertino City Council Successor to the Redevelopment Agency Lance Dursi proposed a designation for an area called Cupertino Heights to establish an area in Cupertino with increased property sale and value. He said this would be minimum cost to the City and would probably just need signage and an area code. He also said he would like to create a Sister City relationship with the town in Italy called Copertino noting this would show honor to our Italian heritage. Council member Wong noted that Cupertino's first Sister City relationship was with Copertino, Italy. He said he received an invitation to visit the city last year and hopes to go at a later time. He noted that the City is looking for volunteers to resurrect this Sister City committee again and would be interested in working with someone on that. Wong noted that a postal code change would need to be done on the Federal level. He suggested that Mr. Dursi speak with staff regarding his other idea. CONSENT CALENDAR Wong moved and Mahoney seconded to approve the items on the Consent Calendar as recommended. Ayes: Chang, Mahoney, Santoro, Sinks, and Wong. Noes: None. Abstain: None. 4. Subject: August 21 joint Council and Successor Agency minutes Recommended Action: Approve minutes 5. Subject: August 21 City Council minutes Recommended Action: Approve minutes 6. Subject: Accounts Payable for period ending August 17, 2012 Recommended Action: Adopt Resolution No. 12-095 7. Subject: Annual Report: Review of the City's activities over the past fiscal year (FY12), from July 2011 through June of 2012 Recommended Action: Receive report 8. Subject: City's Response to the Civil Grand Jury report Recommended Action: Authorize City Manager to sign the City's response to the Civil Grand Jury report 9. Subject: Unscheduled vacancy Parks and Recreation Commission Recommended Action: Accept resignation of Marcia St.Clair, set application deadline date of Friday September 21 and schedule interview date for October 2 beginning at 5:30 pm 10.Subject: Improvement Agreement for the Rose bowl Project, Cupertino Property Development I, LLC, 19800 Vallco Parkway, APN: 316-20-037 Recommended Action: Adopt Resolution No. 12-096 Description: Through the improvement agreement with the City, the applicants for a building permit for a mixed use commercial and residential development will be obligated to bond and construct city-specified street improvements, including curb, gutter, sidewalk, driveway approaches, pavement rehabilitation and traffic signal improvements along the frontage of their building site Tuesday, September 4, 2012 Cupertino City Council Successor to the Redevelopment Agency 11. Subject: Professional Services Agreement for the 2012 Pavement Maintenance Projects Recommended Action: Authorize the Director of Public Works to execute an Agreement for Contract Administration, Inspection and Testing services for the 2012 Pavement Maintenance Projects 12. Subject: Don Burnett Pedestrian-Bicycle Bridge—Donation for Landscape Enhancements Recommended Action: Authorize staff to accept a donation from the Friends of Don Burnett and allocate it toward installation of landscaping enhancements at the south side of the bridge ADJOURNMENT SUCCESSOR TO THE REDEVELOPMENT AGENCY At 7:35 p.m. the Successor to the Redevelopment Agency was adjourned. CITY COUNCIL MEETING CONTINUED SECOND READING OF ORDINANCES -None PUBLIC HEARINGS 13. Subject: First reading amending Chapter 16.58 of the Cupertino Municipal Code regarding Green Building standards and amendment to the City's fee schedule Recommended Action: a. Conduct the first reading of Ordinance No. 12-2099: "An Ordinance of the City Council of the City of Cupertino amending Chapter 16.58 of the Cupertino Municipal Code to amend the Green Building Standards Code to include local green building requirements"; b. Adopt Resolution No. 12-097 incorporating Green Building deposit fees Description: Application: MCA-2010-04; Applicant: City of Cupertino; Location: citywide; Municipal Code Amendment to adopt a Green Building Ordinance Written communications for this item included a letter from Adam Montgomery of the Silicon Valley Association of Realtors; a letter from the Cupertino Chamber of Commerce; and a staff PowerPoint presentation. City Planner Gary Chao reviewed the staff report via a PowerPoint presentation. Mayor Santoro opened the public hearing. Lisa Giefer said she supports the amendment to the Green Building Standards Code. Jennifer Griffin commended staff and the consultant for their efforts and said it was a good idea for the City to stay on top of green building issues and supports some type of green building ordinance. She said that she supports a changing and evolving ordinance that is not set in stone. She noted that doesn't support giving incentives to developers such as building height, parking code changes and FAR (floor area ratio), but would support some type of incentive to maintain the integrity of historical buildings. Tuesday, September 4, 2012 Cupertino City Council Successor to the Redevelopment Agency Mark Lee said that he supports the green building ordinance and all of the amendments. He urged Council to start now to try and exceed the standards without pushing so far that it's too difficult to get involved. David Kaneda, past Planning Commissioner, member of the Santa Clara County Cities Association Green Task Force and currently serving on the Green Building Advisory Code at the State level, said that he is concerned that Cupertino is not in the middle of the pack in the Bay Area and encouraged Council to take action. He noted that he supports passage of the ordinance, and encouraged Council to consider not exempting single-family homes and to have a higher requirement for very large homes in future updates of the ordinance. Mark Matsumoto, Chamber of Commerce, said that the Chamber is concerned about the adverse affect of the green building ordinance on businesses. He urged Council not to place requirements above and beyond CalGreen standards. He encouraged Council to include a City review option and to hire a consultant to ensure that projects are planned properly and comply with CalGreen requirements, and to adopt a broad interpretation in amending the language of the alternate green building standards to allow flexibility. He noted that the Chamber supports going back to 10,000 to 50,000 square feet with City review without LEED certification and 50,000+ square feet for LEED certification. He summarized that the Chamber's position is for greater flexibility, an option for City review, enable applicants to meet the intent of the Green Building Ordinance, and be limited to the scope of CalGreen standards. Consultant Walker Wells noted that a list of items is used within the scope of the project such as paint or lights. He explained that CalGreen only addresses things within the scope of the project so for example if a toilet is being replaced, one would have to replace it with a low- flow toilet. He also said that CalGreen does not require certification but it would be part of the plan check process. Adam Montgomery from Silicon Valley Association of Realtors said that their main concerns deal with compliance. He said that he supports compliance with penalties rather than a deposit and does not support hiring a third party from the beginning to ensure compliance. He noted that City staff would be more reliable with respect to verifying compliance rather than using a third party that is hired by the developer. Mayor Santoro closed the public hearing. Mahoney moved and Wong seconded for discussion to approve Application No. MCA-2010- 04 with the following amendments: raise the threshold for triggering LEED/GPR certification for major non-residential and multi-family renovation/addition projects to 30,000 square feet; non-residential renovation/addition project defined as minor in size in the Green Building Ordinance shall adhere to CALGreen's minimum thresholds for triggering CALGreen building requirements; accept the proposed wording revisions to Section 101.10.2 — Alternative Green Building Standards in the Green Building Ordinance from the Chamber of Commerce with the exception of Subsection C. Tuesday, September 4, 2012 Cupertino City Council Successor to the Redevelopment Agency Mayor Santoro offered a friendly amendment to revise the threshold language regarding major non-residential and multi-family renovation/addition project to add the word "substantial" to clarify that the applicable green requirements would be triggered if the project is either replacing or substantially altering the HVAC system and the other defined criteria listed in the Green Building Ordinance Mahoney offered a friendly amendment to increase the triggering threshold to 35,000 square feet and above. The mover and seconder accepted the friendly amendments. The complete motion noted below carried with Council member Chang voting no: • The threshold for triggering LEED/GPR certification for major non-residential and multi- family renovation/addition projects shall be set at 35,000 square feet and above • Non-residential renovation/addition project defined as minor in size in the Green Building Ordinance shall adhere to CAT Green's minimum thresholds for triggering CALGreen building requirements • Accept the proposed wording revisions to Section 101.10.2 —Alternative Green Building Standards in the Green Building Ordinance from the Chamber of Commerce with the exception of Subsection C • Revise the threshold language regarding major non-residential and multi-family renovation/addition project to add the word "substantial" to clarify that the applicable green requirements would be triggered if the project is either replacing or substantially altering the HVAC system and the other defined criteria listed in the Green Building Ordinance Council member Chang said that he was voting no because the ordinance isn't strict enough and defeats the whole purpose of having a Green Building Ordinance. Mahoney moved and Wong seconded to read the ordinance by title only and that the City Clerk's reading would constitute the first reading thereof. Ayes: Mahoney, Santoro, Sinks and Wong. Noes: Chang. Mahoney moved and Wong seconded to adopt Resolution No. 12-097 amending the fee schedule to be effective when the ordinance goes into effect which is July 1, 2013. The motion carried unanimously. Council recessed from 10:25 p.m. to 10:32 p.m. 14. Subject: Modification to the Main Street Cupertino mixed-use development Recommended Action: Staff recommends approval of: 1. Adopt Resolution No 12-098 approving Modification (M-2012-03) to the previously- approved Master Use Permit (U-2008-01 and M-2011-09) and Architectural and Site Approval (ASA-2011-24) for a mixed-use project consisting of 130,500 square feet of retail, a 180-room hotel, 260,000 square feet of office and a 120-unit market-rate live/work rental loft residential development, including the modifications to the parking garage and retail Tuesday, September 4, 2012 Cupertino City Council Successor to the Redevelopment Agency 2. Adopt Resolution No. 12-099 approving Architectural and Site Approval (ASA-2012-10) for the conceptual approval of 120 market-rate rental residential live/work rental loft units and modifications to the parking garage and retail 3. Adopt Resolution No. 12-100 approving Modification to the previously-approved Tentative Map (TM-2012-04) to subdivide five (5) parcels into six (6) parcels including one lot for the retail, park and town square; one lot for each of the two office buildings; one lot for the hotel; one lot for the market-rate rental residential units; and one common area parcel for the parking garage to serve the retail, hotel and office buildings 4. Second Addendum to the Final Certified 2009 Environmental Impact Report EA-2012-05 Description: Application: M-2012-03, ASA-2012-10, TM-2012-04 (EA-2012-05); Applicant: Kevin Dare (500 Forbes, LLC); Location: Main Street - 3 lots on Stevens Creek Blvd between Tantau Ave and Wolfe Rd; Modification to the previously-approved Master Use Permit (U-2008-01 and M-2011-09), Architectural and Site approval (ASA-2011-24) and Tentative Map (TM-2011-04) for a mixed-use project consisting of retail, hotel, office and residential development, including consideration of removal of the age-restriction on the market-rate residential units and modifications to the parking garage, retail and the tentative map; Environmental Recommendation: Second Addendum of the Final Certified Environmental Impact Report Written communications for this item included emails from Darrel Lum, Lisa Warren, and Kevin Dare; a modified Tentative Map exhibit from staff; parking information from staff, and a staff PowerPoint presentation. Senior Planner Aki Snelling reviewed the staff report via a PowerPoint presentation. Mayor Santoro opened the public hearing. Randy Shingal said that his son goes to Cupertino High School and it is very crowded. He said he would like to see the senior housing be a part of the project. He also said that he feels it is wrong to change the plans at this time after everyone agreed to accept senior housing as a compromise to this project. Mayor Santoro asked the applicants to speak next. Kevin Dare said that the investment partners were not comfortable moving forward with a senior housing component. He indicated that they could build either a medical/professional office or 120 units of loft apartments which he feels is a better fit for the project and would match the demographics of Cupertino without age limitations. He said that they are aware of the community's concern of potential impact to schools. He noted that although he can't guarantee the units would be child-free, the layout they are proposing discourages families living there as much as possible. He noted that only the loft apartments would enable them to build the project in one phase and that they would like to break ground this year or early next. He said that the traffic study findings show that even with reduced lanes on Vallco Parkway, it would provide sufficient capacity creating a vibrant downtown area that is pedestrian friendly. Tuesday, September 4, 2012 Cupertino City Council Successor to the Redevelopment Agency Ken Rodrigues said that at the meeting in May, Council and speakers said the parking garage was too big. He noted that they eliminated 30,000 square feet of massive bulk and took out the parking over the retail. He indicated that staff's requirements were accurate at 2,009 parking stalls, which is unshared parking and 2,107 stalls were approved. He said that studies show a need for 1,928 stalls only and that they are proposing 1,984 stalls, which exceeds the demand required. He urged Council to approve the 1,984 stalls they are requesting and noted that it would set the project back another three months if they had to redesign the parking garage again. He also suggested providing additional spaces under the housing if needed, prefers having more outside open space for people to sit outside and dine without the extra parking spaces, and would like parallel parking for the restaurants. Mayor Santoro continued with public comment. Jennifer Griffin commended Sand Hill for going above and beyond obtaining input from the public. She said she supports keeping senior housing as part of the project. Lisa Warren expressed concern about discussing what type of parking is available before anyone knows what the use is at this point. She expressed concern that parking will bury other important aspects of the project such as building height and lighting. Al DiFrancesco said that three years ago age restricted housing was approved and now the need for building it in one phase and considering taking senior housing out of the project is a disservice to the public. He said that the public has been patient and if it takes longer to include senior housing then that's fine. Bob McKibbin, representing the Concerned Citizens of Cupertino (CCC) said he supports the project as long as it is approved with the age-restricted housing. He reminded Council about the referendum in 2005 in which people voted to have no housing on the site and then three years ago Main Street was started again, but a compromise was made to include age- restricted housing. He noted that the community was okay with age-restricted housing and urged Council to keep the senior housing in the project. He said that the next speaker, Norm Hackford, had to leave early but held a similar opinion. Steve Scharf said that angled parking is a bad idea and that two lanes are needed on Vallco Parkway in each direction. He noted that every time housing is approved, students move in and that he was okay with age-restricted housing for the project as a compromise. He said that the project is being rushed through with little thought and suggested that the parcel could be left undeveloped or sold off and developed in the future. He suggested that any Council member who received money from this develo per recuse themselves from the vote. Tom Hugunin reminded Council that people voted to refuse housing on the project. He indicated that he was in favor of a staged approach to the project and that the developer previously said they could build the whole project except that one component. He said that he wanted to see the project built and that he likes the new garage. Christine Evans submitted her comments in writing asking Council to not approve the proposed change from senior housing to market rate housing. Tuesday, September 4, 2012 Cupertino City Council Successor to the Redevelopment Agency Mayor Santoro closed the public hearing. Dave Van Atta attorney for Sand Hill who does the real estate documentation explained to Council that he would work with the City Attorney to create covenants and declarations running with the land to create a common area parcel owned by an association whose members consist of retail, hotel, and office owners. He noted that the covenants couldn't be modified without Council's consent. Mahoney moved and Wong seconded, and the motion carried unanimously to adopt Resolution No. 12-098 approving the Modification (M-2012-03) to the previously-approved Master Use Permit (U-2008-01 and M-2011-09) and Architectural and Site Approval (ASA- 2011-24) for a mixed-use project consisting of 130,500 square feet of retail, a 180-room hotel, a five-level parking garage with two levels of underground parking, a total of 1,984 parking spaces (including 85 on-street parking spaces along Vallco Parkway), 260,000 square feet of office, a 120-unit market-rate live/work rental loft residential development with a 9,146 square foot retail condominium unit, modifications to the parking garage and retail square footages and footprints, and the following additional conditions: a. Remove the age-restriction on the housing component of the project, and approve as a live/work loft rental apartment complex. b. Include the following condition for the apartment complex: Require that the live/work loft apartment complex remain as rental units and may not be converted to condominium units. c. Require the live/work loft apartment complex to provide parking at 1.8 parking spaces/unit (add 12 additional parking spaces in the residential underground garage) for a total of 216 parking spaces. d. The applicant shall also provide an additional 32 parking spaces on site (either in the shared parking garage or surface parking). This balance is based upon the difference between the City's unshared parking rate required for the hotel, retail and office buildings (1,769 spaces), credit of 42 on-street parking spaces along Vallco Parkway, and the applicant's proposal for the hotel, retail and office parking (1,695 spaces). (1,769 — 42 — 1,695 = 32 spaces). The applicant shall work with staff to incorporate the additional spaces on site that may include enlarging the parking garage by extending the upper story over alley to the east of the garage. e. Retain the proposed 85 angled parking spaces and street improvements along the south side of Vallco Parkway along the project frontage as approved in 2009 in association with this project, until such time in the future the City decides to modify the parking and street improvements along Vallco Parkway. f. Include the following condition regarding the spaces on Vallco Parkway: All on- street parking along Vallco Parkway remains public: The parking spaces along Vallco Parkway are public parking spaces which shall always be available to the public. These spaces cannot be limited to use by patrons or tenants of the Main Street Development. The City may eliminate some or all of this parking at any time at its sole discretion. g. Include the following condition regarding a "Parking Conversion" Fund: Prior to issuance of any building permit for the project, require that the applicant provide a "Parking Conversion" fund that will allow the City to convert the angled parking Tuesday, September 4, 2012 Cupertino City Council Successor to the Redevelopment Agency spaces with one lane of eastbound traffic and a bike lane approved in association with the project along Vallco Parkway to parallel parking spaces with two lanes of eastbound traffic and a bike lane, if and when the City desires. Staff will work with the applicant on the amount to be collected by the applicant. h. Require the applicant to work with the applicant on an auto, bike and pedestrian circulation plan. i. The applicant shall provide free parking in the parking garage and on the surface parking spaces for the retail and office uses. However, the hotel may charge parking fees for its customers to park in the parking garage. j. Include the following condition regarding the inspection of Calabazas Creek: The developer agrees to have all bays of the Calabazas Creek Culvert, from Stevens Creek through Vallco Parkway, inspected and videotaped prior to start of any construction on site. An inspection report and 2 copies of the inspection video are to be provided to the City prior to issuance of a permit to begin any work on site. The developer is responsible for coordinating with and obtaining and permits from the Santa Clara Valley Water District prior to beginning inspection operations. k. The applicant shall add a Sheriff's substation. The applicant shall work with staff on the appropriate location and size of the substation. I. The Phasing condition shall be modified to: 1. Clarify that the permits for the entire project shall be valid for three years; 2. The project will be constructed in one phase; and 2. Clarify in Condition No. 25C that certificates of completion for the shell, core, exterior facades and related landscaping and improvements shall be obtained for all retail buildings (remove reference to "east of Finch Avenue) prior to the certificate of occupancy of the hotel or office buildings. m. The 0.75 acre park is inclusive of the park area and the 20-foot wide landscape buffer along the western perimeter of the site adjacent to the Metropolitan mixed-use development. Wong moved and Mahoney seconded, and the motion carried unanimously to adopt Resolution No. 12-099 approving the Architectural and Site Approval (ASA-2012-10) application for the conceptual approval of the 120-unit market-rate rental residential live/work rental building with a 9,146 square foot retail condominium unit attached to the residential building, and modifications to the parking garage and retail building footprints and sizes with the same conditions as noted above. Wong moved and Mahoney seconded, and the motion carried unanimously to adopt Resolution No. 12-100 approving the Modification to the Tentative Map (TM-2012-04) to subdivide the five (5) parcels into six (6) parcels including one lot for the retail, park and town square, one parcel for each of the two office buildings, one lot for the hotel, one lot for the market-rate rental residential building with 9,146 square foot retail condominium unit, and one common area parcel for the parking garage to serve the retail, hotel and office buildings with the same conditions as noted above. Mahoney moved and Wong seconded to approve the second addendum to the Final Certified 2009 Environmental Impact Report EA-2012-05. The motion carried unanimously. Tuesday, September 4, 2012 Cupertino City Council Successor to the Redevelopment Agency ORDINANCES AND ACTION ITEMS -None REPORTS BY COUNCIL AND STAFF Council members highlighted the activities of their committees and various community events. ADJOURNMENT At 2:10 a.m. on Wednesday, September 5, the meeting was adjourned to Sept 18 beginning at 5:15 p.m. in honor of Council member Chang's mother Liao-In Chang who recently passed away. - -- C-4*VCGA-5:0; Grace Schmidt, City Clerk Staff reports, backup materials, and items distributed at the City Council 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, then click on the appropriate Packet. Most Council meetings are shown live on Comcast Channel 26 and AT&T U-verse Channel 99 and are available at your convenience at www.cupertino.org. Click on Agendas & Minutes, then click Archived Webcast. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364.