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CC 09-02-08 CUPERTINO APPROVED MINUTES CUPERTINO CITY COUNCIL Regular Meeting Tuesday, September 2, 2008 PLEDGE OF ALLEGIANCE At 6:45 p.m. Mayor polly Sandoval called the regular meeting to order in the Council Chamber, 10350 Torre Avenue, Cupertino, California, and led the Pledge of Allegiance. ROLL CALL Present: Mayor polly Sandoval, Vice-Mayor Orrin Mahoney, and Council members Mark Santoro, Kris Wang and Gilbert Wong. Absent: none. CLOSED SESSION - None CEREMONIAL MATTERS - PRESENTATIONS 1. Presentation of a commissioner's award to Councilmember Won~ for his service on the Planning Commission. (No documentation in packet). Mayor polly Sandoval presented the award in appreciation for Gilbert Wong's years of service as a city commissioner prior to his term on the City Council. lA. Mayor polly Sandoval presented a proclamation to Kathleen Elliot for the loan of her art work to the Hsinchu City International Glass Art Festival. Mayor Sandoval commended Ms. Elliot for her contributions to the community and for her efforts to build community across the globe. POSTPONEMENTS - None WRITTEN COMMUNICATIONS The City Clerk announced written communications received for item No. 6. ORAL COMMUNICATIONS Fari Aberg reminded Council of the Cupertino Fall Festival scheduled for September 13-14. This year the Health and Safety Fair was being combined with the Fall Festival and many activities were scheduled for all ages. Ms. Aberg encouraged all to attend. September 2, 2008 Cupertino City Council Page 2 Vernon Bollesen addressed the Council on behalf of Bethel Lutheran Church. He noted that they had put in solar and had received rebates from the State and from PG&E. However they were required to pay the city $5,739 in solar fees and he was asking Council to reconsider these fees. He noted that residential customers already received a subsidy for solar installation and he suggested the formation of a new category for quasi-public buildings to receive such a subsidy. Council agreed to agendize this issue for Council consideration. Dave Nyberg addressed the Council on this issue of solar fees for Bethel Lutheran Church and asked Council for a solar fee reduction for such groups. He also requested that this fee reduction . be made retroactive for the church. He noted that he worked for General Electric in the renewable energy group and he would be glad to work with the Council on this matter. Cindy McArthur, Communications Manager for the Fremont Union School District, distributed posters on the upcoming 50`h Anniversary of Cupertino High School. Ms. McArthur noted that Cupertino High was the first high school in Cupertino and it opened in 1958. Ruby Elbogen urged Council to work with businesses and developers as well as with residents concerning water conservation. In particular she noted that some restaurants only served water upon request. Ms. Elbogen believed that by taking such steps water conservation could be achieved. Sparky Cohen stated that the loudspeaker announcements at the library were too frequent and too loud. He urged Council to speak to the appropriate staff inembers at the library to correct this situation as his efforts had not been successful. Lyn Faust referred to the Cupertino Scene and noted that the response page was no longer available. She stated that she had used this opportunity often to thank the City for certain services, to offer comments, etc. At this time she particularly wanted to thank Code Enforcement, Public Works Director Ralph Qualls and City Clerk Kimberly Smith for outstanding service to the community. CONSENT CALENDAR Wong/Mahoney moved and seconded to approve the items on the Consent Calendar as recommended. Ayes: Mahoney, Sandoval, Santoro, Wang, and Wong. Noes: None. Abstain: None. 2. Approve the minutes from the August 5 and 19 City Council meetings. 3. Adopt resolutions accepting Accounts Pavable for August 15 and 22, Resolution Nos. 08- 119 and 08-120. 4. Adopt a resolution accepting Payroll for August 22, Resolution No. 08-121. 5. Accept the Treasurer's Bud e~ t Report for July 2008. September 2, 2008 Cupertino City Council Page 3 ITEMS REMOVED FROM THE CONSENT CALENDAR (above) PUBLIC HEARINGS 6. Consider Application Nos. U-2007-04, ASA-2007-06 (EA-2007-06), TM-2007-09, EXC- 2008-07, TR-2008-02, Applicant Karen Ngo (The Oaks Sh~pin Cg enter), 21265 Stevens Creek Blvd., APN 326-27-035 (a-e). Continued from Au ug st 5: The City Clerk distributed the following written items: • An email from Alice Ramsauer opposed to the 3-story mixed use building because of the size • An email from Hamid Ghazvini in favor of the project • An email from Ebrahim Khorasani in favor of the project Senior Planner Colin Jung reviewed the staff report using a PowerPoint presentation. He highlighted the changes that had been made to the site plan since it last came to the Council. • Changed setbacks to meet standards • Reduced mixed use building by approximately 5,000 square feet and shifted the building • Discussed staff recommended conditions regarding subdivision/phasing/property ownership • Addressed parking analysis summary • Addressed other development issues that needed council resolution (architectural detailing of hotel, especially on west side; commercial development allocation for the hotel; extent of any Mary Avenue landscaping and acceptance of street parking loss on Mary; and extent of Heart of the City landscape improvements on Stevens Creek Boulevard) • Changed elevation to add balcony grilles • Requested direction on Heart of the City street and landscape improvements • Reviewed Mary Avenue landscape finger islands for softer visibility from street • Considered General Plan Commercial Development Allocation Senior Planner Colin Jung stated that the staff's recommendation was to adopt the Planning Commission's recommended approval of this project with the following changes: deny the Heart of the City exception as it was not needed; require CC&Rs that restricted ownership of parcel one and the condo lots for four years and until mixed use building was built. Otherwise ownership of mixed use area reverted back to shopping center. Subject to City Attorney review; require further architectural detailing - balcony grilles on the westerly second floor of the hotel; require Heart of the City landscaping improvements modified when necessary for the westerly driveway (Stevens Creek Boulevard) to Mary Avenue; require a mix of three large finger islands of landscaping with 36" box trees on Mary Avenue; and establish commercial development allocation for hotel discounted or not discounted for peak hour traffic_ difference September 2, 2008 Cupertino City Council Page 4 Council asked staff for additional information and clarification on several issues including the following: siting of buildings, tree plantings, location of driveway on Mary Avenue, parking on Mary Avenue, use of common area, parking analysis, commercial development discount, parking under hotel, square footage of mixed use building, Heart of the City exception, restrictions on lot 2 and the condo area and the hotel occupancy tax benefit to the city. Karen Ngo, representing the applicant, noted that their application had been reviewed by the Fire Marshall and had met all of their requirements. Ms. Ngo also commented on the placement of trees, the location of the garage and noted that they met the city's setback requirements. Concerning the subdivision portion of their application she stated that this was requested for the financing required for the project. Ms. Ngo stated that they did not agree with the Heart of the City recommendations along Stevens Creek. They agreed to make improvements in front of the Shane Company but not on the entire Stevens Creek Boulevard frontage. They also did not agree with the recommended enhancements to the second floor. Ms. Ngo confirmed that the square footage they were requesting for the mixed use building was 51,000 square feet. John Yu, representing the applicant, explained the footprint of the hotel and confirmed that the garage did not go beyond the hotel. The following speakers expressed their concerns about the project before Council: Dick Weaver stated that there were public health issues and an environmental impact report should be done before approval. Darrel Lum stated his support for compliance with the Heart of the City Plan. He also believed the data submitted was incorrect and the tentative map should be redone and he further believed that the estimated tax revenues to the city were high. Jennifer Griffin noted that this was a high visibility project and urged the Council not to compromise on anything and to use the land wisely. She commented on the traffic issue and believed the scope of the project should be reduced. The end result should be a quality project with a lot of trees. Keith Murphy supported compliance with the Heart of the City Plan and he also questioned what exactly was being considered at this meeting as the applicant continued to bring forward new information. The following speakers stated their support for the project: Mary Mo, Yin Chan, Henry Lai, Hossein Sadri, Jennif:,r Boldrini, Hanna Parsano, Andrew Reddy, Michael Sadri, Martin Chiechi and Marily Hansen. They believed this project would revitalize the Oaks Center, would provide revenue to the city and would create jobs. Community Development Director Steve Piasecki responded to issues raised.earlier by Councilmembers and to comments made during the public input part of the meeting. An environmental impact report was not required for this project. It was noted that the Heart of the City plan required landscaping all along Stevens Creek Boulevard in front of this project but the applicant just wanted to make improvements in front of the Shane Company. It was more difficult to put in the improvements the entire way because of a slope and according to the applicant it was a difference in cost of approximately $100,000 (in front of the Shane Company) to $500,000 (entire frontage). Concerning the height September 2, 2008 Cupertino City Council Page 5 issue the General Plan allowed for 45' height and the Heart of the City allowed for 36'. When two city documents conflicted the General Plan took precedence. Regarding the land use issue, there were restrictions on the mixed use building and any changes would have to come back to Council for approval as parking would be affected. Staff stated that they would research the parcel map data for accuracy but as this did not affect the floor area ratio the proposed project before Council was not impacted. The hotel and mixed use building were separate from the subdivision. The subdivision process was chosen rather than a development agreement as the less complicated method of achieving the desired result. Council addressed the issues pertaining to this project and reached general consensus on many of the items. Councilmember Santoro stated that while he liked this project he felt it was just too large. If the elements of the project were changed for example to include no mixed use building with a larger hotel or relocation of the hotel he believed it would be a better project, but as proposed it was too much development. Councilmember Wong stated that his major concern was the intensity of the project. While he believed the hotel was an asset, he thought it should be relocated. He also suggested the mixed use building be smaller with more landscaping and parking. Mahoney moved and Wong seconded to adopt a negative declaration. The motion carried unanimously. Mahoney moved and Wong seconded to approve the Heart of the City exception, File No. EXC 2008-07 to reduce one side yard setback to 15 feet for the proposed 4-story, 122- room hotel and a 3-story, 51,000 square foot mixed use retail/office/conference center building at an existing shopping center. The motion carried unanimously. Mahoney moved and Sandoval seconded to approve a use permit and architectural and site approval to demolish a theater and 2,430 square feet of commercial space, and construct a 4-story, 122-room hotel and a 3-story 51,000 square foot mixed-use retail/office/conference center building over an underground parking podium and site improvements in two development phases at an existing shopping center with the following amendments: • Require a CC&R that restricts ownership of parcel #1 and condo lots for 4 years unless building permits are obtained and substantial construction is commenced. Otherwise, ownership of mixed-use area reverts back to shopping center owner. Both condo lots 1 and 2 must be under the same ownership subject to city attorney review • The term of expiration of the use permit and architectural and site approval is extended from two years to four years • Require further architectural detailing of the west elevation, that is, balcony grills on the 3`d and 4th floor of the hotel • Require Heart of the City landscape improvements, modified where necessary, ' from the westerly Stevens Creek Boulevard driveway to Mary Avenue September 2, 2008 Cupertino City Council Page 6 • Trees are to meet the current Heart of the City Specific Plan requirements and one field-grown oak must be placed in the front driveway area The motion carried with Council member Santoro voting no. Mahoney moved and Wang seconded to approve a Tentative Map to subdivide an 8.1 net acre parcel into two parcels of 2.6 acres and 5.5 acres in size, with one parcel to be further subdivided into two commercial condominium units and a common area lot. The tentative map is also subject to the restrictions that are incorporated into U-2007-04 and ASA 2007-06. The motion carried with Council member Wong voting no. Mahoney moved and Wong seconded to approve the tree removal request to remove 47 trees and replace approximately 67 trees that are part of an approved landscape plan for an existing shopping center. The motion carried unanimously. 7. Consider a Municipal Code Amendment of Chapter 17 allowing temporary outdoor signs or displays, Application No. MCA-2008-02, City of Cupertino, Citywide. (Continued from Aug_19). This ordinance would amend Sections 17.08.010 and 17.32.090 relating to temporary special event banners, promotional devices and portable signs and displays. Jennifer Griffin noted that the quality of life should not be compromised in Cupertino and . to this end tacky signs should not be allowed. She believed that the highest quality of signs should be required and suggested that residents be required to register their signs. The City Clerk read the title of the ordinance No. 08-2030. Wang 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, Sandoval, and Wang and Wong. Noes: None. UNFINISHED BUSINESS - None NEW BUSINESS 8. Approve the Senior Citizens' Commission Work Program for 2008-09. Ralph Otte, Chairman of the Senior Citizens' Commission, recommended that the proposed work plan items which required funding be deleted from the list of goals at this time and not be considered during the 2009-2010 budget discussions. Mr. Audi noted that this recommendation did not come from the commission but was his personal recommendation. Mr. Audi commented that he was new to the commission but was looking forward to increased communication between the commission and the city. Wong moved and Santoro seconded to approve the following items for the Senior Citizens Commission work plan for FY 2008-2009. The staff-recommended suggestion to consider funding for other items was not adopted. The motion carried unanimously. September 2, 2008 Cupertino City Council Page 7 • Study the Senior Housing Component of the General Plan • Review the proposed City policy matters to obtain seniors' input • Conduct a senior program site survey 9. Approve the extension of the lease for the Blue Pheasant Restaurant, 22100 Stevens Creek Blvd. City Council members discussed the type of community contributions Mr. Tsacres was willing to make, which included 50% off of food items for Blackberry Farm golfers, 25% off for seniors, and 25% off for events sponsored by Cupertino-based non-profit organizations at the restaurant. Staff will ask Mr. Tsacres if he will also make a similar offer to members of the Sports Center. Mahoney moved and Wang seconded to authorize the City Manager to execute a lease extension agreement with Mr. Mike Tsachres, the current operator of the Blue Pheasant Restaurant, with the terms for monthly base rent for a five-year period to be $500 above the 2008 base rent with a 3% annual increase. The motion carried with Council member Wong voting no. 10. Consider a request from Library Commission Chair Ron Miller to waive the attendance requirement for Libr~rv Commissioner Janet Riddell until the end of her term in January 2009. Mahoney moved and Wong seconded to waive the attendance requirement for Library Commissioner Janet Riddell through the remainder of her term (until January 2009). The motion carried unanimously. Staff was asked to inform Council members how the city has been advertising the existing vacancies on the Public Safety Commission. ORDINANCES 11. Conduct the second readin~ of Ordinance No. 08-2029: "An Ordinance of the City Council of the City of Cupertino Amending Table 11.24.160 of the Cupertino Municipal Code Relating to Prohibition of Parkin~ During Certain Hours, on the East Side of ~ Avenue, Between 2 A.M. and 5 A.M., Between a Point 340 Feet North of Stevens Creek Boulevard and a Point 1000 Feet South of Lubec Street". Mahoney moved and Wang seconded to read the ordinance by title only and that the City Clerk's reading would constitute the second reading thereof. Ayes: Mahoney, Sandoval, Santoro, Wang, and Wong. Noes: None. Mahoney moved and Wang seconded to enact Ordinance No. 08-2029. Ayes: Mahoney, Sandoval, Santoro, Wang, and Wong. Noes: None. September 2, 2008 Cupertino City Council Page 8 STAFF REPORTS - None COUNCIL REPORTS Council members highlighted the activities of their committees and various community events. Council also discussed when they would consider the ordinances related to the offices of the City Manager and City Attorney. It was agreed that the City Manager's office would contact Councilmembers with potential dates for a study session on this issue. Council also agreed that members could submit their comments to the City Manager who would then submit them on an agenda for the full Council's review. ~ ADJOURNMENT At 11:56 p.m. the meeting was adjourned ' ~ Kimberly Smith ' Clerk 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.or~. Click on Agendas & Minutes/City Council/ Packets. Most Council meetings are shown live on Cable Channel 26, and are available at your convenience on the web site: Visit www.cupertino.or~ and click on View Meetings Online. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364.