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CC 06-21-04 I CUPERJINO APPROVED MINUTES CUPERTINO CITY COUNCIL Regular Adjourned Meeting Monday, June 21, 2004 CALL TO ORDER At 4:35 p.m. Mayor James called the meeting to order in the Council Chambers, 10300 Torre Avenue, Cupertino, California. ROLL CALL City Council members present: Mayor Sandra James, Vice-Mayor Patrick Kwok, and Council members Richard Lowenthal, Dolly Sandoval, and Kris Wang. Council members absent: none. Staff present: City Manager David Knapp, City Attorney Charles Kilian, and City Clerk Kimberly Smith. CLOSED SESSION At 4: 38 p.m. Council recessed to a closed session to discuss the following items: 1. Initiating litigation - Government Code Section 54956.9(c). Possible action against Edward Britt, Norman Hackford, and Gerald Cooley related to Initiative measures (building height, density, and setbacks). 2. Negotiations for lease of real property - Government Code Section 54956.8 - consultation with City representatives David Knapp, Carol Atwood, and Charles Kilian regarding the Blue Pheasant Restaurant. 3. Labor negotiations - Government Code Section 54957.6. The purpose of the closed session is to consult with City management representatives David Knapp, Carol Atwood, Carol Augustine, and Sandy Abe concerning labor negotiations with Operating Engineer's Local No.3 and Cupertino City Employee's Association. At 5:50 p.m., the Council reconvened in the Council Chambers. City Attorney Charles Kilian announced that the City Council had decided not to proceed with any pre-election lawsuit associated with the Initiative measures. He said that the Council had taken no action on the other two closed session items. RECESS Council recessed from 5:50 p.m. to 6:45 p.m. June 21, 2004 Cupertino City Council Page 2 PLEDGE OF ALLEGIANCE At 6:45 p.m. Mayor James called the meeting to order in the Council Chambers, 10300 Torre A venue, Cupertino, California, and led the Pledge of Allegiance. ROLLCALL City Council members present: Mayor Sandra James, Vice-Mayor Patrick Kwok, and Council members Richard Lowenthal, Dolly Sandoval, and Kris Wang. Council members absent: none. Staff present: City Manager David Knapp, Administrative Services Director Carol Atwood, City Attorney Charles Kilian, Public Works Director Ralph Qualls, Community Development Director Steve Piasecki, Recreation Supervisor Julia Lamy, Assistant Planner Gary Chao, Public Information Officer Rick Kitson, and City Clerk Kimberly Smith. CEREMONIAL MATTERS - PRESENTATIONS 4. Presentation regarding Association of Bay Area Governments (ABAG) Regional housing requirements. (No documentation in packet). Alex Amoroso, Principal Planner with ABAG, said his organization was responsible to 109 cities and counties in the Bay area. He reviewed his handout materials about the Regional Housing Needs Allocation (RHNA) process, and said it was part of a State Housing Element law. He said that ABAG builds the methodology to distribute housing by four income categories without overburdening anyone community with a certain type of housing. He explained that the methodology includes income categories, housing and employment markets, and commuting patterns. He clarified that the requirement is only to plan for a certain number of units in the local General Plans, not to build them. Amoroso explained that there are serious legal ramifications if the city does not have a certified Housing Element that creates opportunities for lawsuits from outside parties and funds coming from the state level. He said that some of the cities that have been sued including Gilroy, Corte Madera, Sonoma County, and Alameda. Community Development Director Steve Piasecki said the City of Cupertino historically has had a conforming Housing Element, and the current one was certified in 2001. He said that the new cycle in 2007 will reassess the area and may take into consideration the job losses in Silicon Valley, but there is a fundamental undersupply of housing to jobs in Cupertino. Lowenthal asked what impacts there would be on meeting the ABAG housing numbers if the Initiatives passed and there were housing density restrictions. Piasecki answered that the city has hired a consultant who is preparing a series of alternatives to address that question. Some of those alternatives may include allocating more land for housing, increasing the below-market-rate strategies, encouraging conversion of office and industrial lands to residential uses, and pushing more housing out into the suburban areas. June 21, 2004 Cupertino City Council Page 3 Council received the report, and no action was taken. POSTPONEMENTS-None WRITTEN COMMUNICATIONS - None ORAL COMMUNICATIONS Rhoda Fry, San Fernando Avenue, said the city was creating a double standard by allowing situations that would not be tolerated on private property. These included allowing cars to be parked in the fire lanes during major events at the Quinlan Center. She said that at Blackberry Farm the bridges have dangerously wide gaps between planks, visitors are allowed to park on the roots of the trees, and there are unresolved issues with trash handling. She showed photographs of overflowing trash cans at the park and talked about how the trash attracts a troublesome wildlife population including rats, mice, ground squirrels, skunks and coyotes. Mike Phillips, Santa Clara County Vector Control wildlife specialist, said that last year his department had served an abatement notice for the City to correct trash handling problems. The City responded on October 3 and some items had been corrected. He said he did a surprise inspection over last weekend and there is still a problem with the garbage, because the containers are not large enough, lids do not close properly, and rodents are chewing away recycling bin lids. He also talked about increasing problems in California with coyote attacks on pets and people. CONSENT CALENDAR Sandoval/Lowenthal moved and seconded to approve the items on the Consent Calendar as recommended, with the exception of item Nos. 5 and 8, which were pulled for discussion. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. 6. Adopt a resolution approving the Final map for Civic Park, Phase II, Resolution No. 04- 339. 7. Adopt a resolution approving the final Tract map (9547) and improvement plans, for Murano Homeowners Association, 7308 and 7310 Rainbow Drive at Poppy Way, Resolution No. 04-340. ITEMS REMOVED FROM THE CONSENT CALENDAR (above) 5. Accept the Treasurer's Budget Report for April 2004. Wang asked about the increase to the "operating transfers in" for 2003-2004. Kwok asked about the 4.66 % increase in "community services." Administrative Services Director Carol Atwood said she would bring the budget detail back on both of those items in her next report on revenues, as well as providing detail on the differences in revenues and expenditures. June 21,2004 Cupertino City Council Page 4 8. Adopt a resolution approving an application for Bay Area Air Quality Management District (BAAQMD) Transportation Fund for Clean Air Grant for the Mary Avenue Gateway Pedestrian Crossing Project, Resolution No. 04-341. Public Works Director Ralph Qualls said that council had directed staff to find a grant for this project. If the grant is not awarded, the City Council can consider whether to fund the project with General Fund monies. WangIKwok moved and seconded to accept the Treasurer's Report and adopt Resolution No. 04-341. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. PUBLIC HEARINGS 9. Receive public comments, discuss, and adopt the 2004-05 budget: Administrative Services Director Carol Atwood discussed a handout titled "Changes to the Proposed Budget", which included costs for the Senior Center Case Manager position, Drug Abuse Resistance Education (DARE) Officers, one/half Patrol Officer for the Midnight Shift, and School Resource Officers (SRO). She explained the true cost of one SRO is $150,000, and the $40,000 COPS grant funds could only be used if Council were to hire the second SRO. Other items on the list included potential new revenues such as 9-1-1 emergency phone service fees, raising recreation fees, and charging for the holiday tree lighting. Mayor James opened the public hearing. There were no speakers, and the hearing was closed. Council discussed the increased recreation fees. Kwok and James said that residents should pay a substantially lower rate than non-residents. Lowenthal said that he would support the list of proposed changes, because many of the proposed additions were associated with public safety. He did not think the Case Manager position was required right now, but he could approve it because Senior Center members will pay for that partly out of increased fees. He was concerned about raising non-resident fees too high and losing participants, and felt that the decision should be left to staff which is more sensitive to market fluctuations. Wang said that she was uncomfortable with the amount of the deficit. Kwok suggested funding both SROs with a warning to the schools that the city may not be able to fund them at all in the future. Sandoval said the city has a fundamental infrastructure problem in that it is spending more than it takes in. She said she was not pleased to have to use reserves for an unexpected, additional $40,000 for an SRO. June 21,2004 Cupertino City Council Page 5 Lowenthal/Sandoval moved and seconded to adopt the proposed changes as shown in the budget handout. Wang offered an amendment to the motion to cut one-half of the teen center hours and programs and have staff revisit the operating expenditures as a way of subsidizing the SRO. Kwok seconded the amendment. It was noted that the statutory deadline had been reached and the budget must be adopted at this meeting. Kwok offered a friendly amendment to make the cuts to the teen center and programs as suggested by Wang but without further staff review of operating expenditures. Wang accepted the friendly amendment. The motion failed with Wang and Kwok voting aye, and James, Lowenthal, and Sandoval voting no. Council members voted on the original motion offered by LowenthallKwok, which was to adopt Resolution No. 04-342 that established the operating and capital budget for fiscal year 2004-05, with the proposed changes recommended by staff, including the Case Manager position, and with the condition that the tree-lighting ceremony be held only if it can be self-sustaining. Vote: Ayes: James, Kwok, Lowenthal, and Sandoval. Noes: Wang. Absent: None. Lowentha1!Kwok moved and seconded to grant a negative declaration. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. Lowentha1!Kwok moved and seconded to adopt Resolution No. 04-343 consistent with 04-342, establishing an appropriation limit for fiscal year 2004-05. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. Lowentha1!Kwok moved and seconded to adopt Resolution No. 04-344 regarding Parks and Recreation and Planning fee adjustments for fiscal year 2004-05, Resolution No. 04- 344. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. 10. Consider Application No.(s) MCA-2001-03, EA-2003-20 (Modifications to on-site parking regulations), City of Cupertino, Citywide: A. Conduct the first reading of Ordinance No. 1940: "An Ordinance of the City Council of the City of Cupertino Amending Chapter 19.100 and 11.29 of the Cupertino Municipal Code Related to Parking Regulations." Assistant Planner Gary Chao reviewed the staff report and detailed the modifications that were proposed to the parking regulations. The City Council concurred to strike the phrase "building improvements" in 19.100.050 of the proposed ordinance. June 21, 2004 Cupertino City Council Page 6 Kwok inquired about the feasibility of a parking agreement between BJ's Brewery and Apple Computers. Community Development Director Steve Piasecki said that staff had met with Apple and they were opposed to such an agreement, but B1's has been encouraged to return to the Planning Commission with some alternatives other than valet parking for their entire lot. Penny Whittaker, Cheryl Drive, said she was in favor of increased landscaping and unisize stalls, but she still had a concern with the ratio of parking stalls required for businesses. She noted that Le Boulanger would be moving to a location that has 5 businesses and only 25 parking spaces for the public. She said that B1's Brewery, Quizno's, and Panda Express are other examples where sufficient parking is not available. Kwok and Lowenthal agreed that the ratio of business parking spaces might be inadequate. LowenthallKwok moved and seconded to approve this application and directed staff to specifically ask Council at the next goal-setting session whether they wished to fund an analysis of parking ratios. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. Lowentha1!Kwok moved and seconded to grant a negative declaration. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. The City Clerk read the title of the ordinance. Lowentha1!Kwok moved and seconded to read the ordinance by title only, and that the City Clerk's reading would constitute the first reading thereof. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, Wang. Noes: None. Absent: None. 11. Consider adopting a resolution for the annual renewal of fees for the Storm Drainage Nonpoint Source Program for 2004-05, Resolution No. 04-345. Public Works Director Ralph Qualls said that the fees have not changed in 13 years, and recommended adoption of this resolution. KwoklWang moved and seconded to adopt Resolution No. 04-345. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. PLANNING APPLICATIONS - None UNFINISHED BUSINESS - None NEW BUSINESS 12. Report from the Cupertino Public Safety Commission regarding flooding in the McClellan and Bubb Road neighborhood. (No documentation in packet). June 21,2004 Cupertino City Council Page 7 There were no representatives from the Public Safety Commissioner present to present the report. Shing Shwang Yao, Elm Court, said that he had been present at the last Public Safety Commission meeting, and so could report that they had adopted two resolutions. The first was a recommendation to bolt down the manhole cover at Bubb Road near Elm Court. The second was to ask City Council to revisit the cost of parallel pipes along Bubb Road and McClellan Rood. Yao then talked about the safety hazard at the intersection of Bubb and McClellan created by the recurring flooding, and said he did not understand why the city has not funded the plan to address the problem for 12 years. Lee Shodiss, Ehn Court, said he had received a letter from Council in April that characterizes the flooding as a nuisance and a 10-year event, but the problem was happening twice a year and it was far from a nuisance situation, since in the last flooding incident the manhole cover had been blown off. He asked that the Council be proactive and take care ofthe problem, and offered to provide home videos of the flooding. Public Works Director Ralph Qualls showed a PowerPoint list of the steps the City has taken in the last couple of years to address this problem. These steps included: an engineering study to evaluate the situation; an engineering design for an expanded drain; construction of new inlet and outfall connections at a cost of $12,000; annual maintenance and cleanout ofthe extended storm line; and considerable monitoring of Elm Court drain during rainfall by city staff, including the City Manager and himself. He also said that sandbags have been made available, and the Major Storm line project has been identified and included as an unfunded item in the 2005-2009 Capital Improvement Projects (CIP) budget. 13. Approve an offer of settlement for release and indemnity of liability at a cost to the City of $9,596.00 for cleanup at the Gibson Enviromnental Site (Bakersfield, CA), and authorize the City Manager to execute the settlement agreement. KwoklLowenthal moved and seconded to approve the offer of settlement and authorize the City Manager to execute the settlement agreement. Vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: None. Absent: None. 14. Review and approve the assignment of the Blue Pheasant Lease to Giti Majdy and Kianoush Kakavand, dba San Jose Teamsters. City Attorney Charles Kilian gave a brief background on the city's acquisition of the Blue Pheasant Restaurant, its earlier status as a legal, non-conforming use, and the recent renegotiation of the lease with the Rasmussens. Giti Majdy, the applicant, said that she is the sole owner of the corporation doing business as the San Jose Teamsters. She described her training and expertise in the food industry, and said she had been a franchisee for both Domino's Pizza and Quizno's. She discussed her plans for the Restaurant and said the focus would be on the menu. June 21,2004 CupertIno CIty CouncIl Page g The Council members asked questions about the applicant's experience in a full-service restaurant, the number of employees she has supervised in the past, her hiring experience, and her experience in running a bar that required an Alcoholic Beverage Control license for liquor. Majdy acknowledged that she had not had any experience running a full- service bar with a liquor license, and explained that her experience had all been in fast- food service. She said she had supervised as many as 40 employees at one time in very high-volume businesses. She anticipated that the Blue Pheasant would have about 25 full-time employees. She hoped to attract about 200 customers per day, and the average meal price would be $25 for food and wine or beer, with a small amount of liquor sales. She explained that her corporation was not affiliated with the Teamsters Union, but instead was named after a character in a movie about the life of Jimmy Hoffa. Terry Hertel, resident of Byrne Avenue, asked for more information about the kind of food that would be served and the clientele that would be targeted. He also asked that the closing time remain at 11 :00 p.m. since that has been a great improvement for the neighborhood, and asked that the restaurant provide sufficient parking. Paul Hogan said he is the lawyer for Mr. And Mrs. Rasmussen who are the current lessees. He said that Mr. Rasmussen has provided a personal guaranty and he trusts the applicant to run a successful business. Also, the Rasmussens' daughter will be available during the transition to provide training. He said that Ms. Majdy's experience in fast food service has provided basic training in how to deal with both personnel and business issues. Sandoval said that there was a difference between the two types of restaurants, and that in a fast food restaurant the corporate headquarters provide reliable delivery of food and supplies as well as the dictating the staffing levels. Sandoval said that the Blue Pheasant is a City asset and it is important that the tenants are well equipped to meet the demands they will be facing, and she was not comfortable with the level of experience of the applicant. Patrick Kwok said he believed there is a sharp distinction between the demands of a fast- food restaurant and a full-service restaurant, because the full-service business relies on the quality of the menu and the level of customer satisfaction. He said he appreciated the applicant's interest and motivation but he was not convinced she had the necessary expenence. Wang concurred, and said this would not be an issue of it were a private sector business. She also noted that the new owner proposes to open the restaurant for breakfast and lunch, and Wang was concerned about conflicting parking demands between the restaurant and the golf course. Lowenthal said he was in favor of the application and looked forward to the continuation of the restaurant. He said he liked that the proposed use would be compliant with neighborhood desires, and he urged the other Council members to support it. June 21, 2004 Cupertino City Council Page 9 James said she had serious concems about the applicant's qualifications. She was concerned that the applicant did not feel there was a significant difference between running a fast food versus a full-service restaurant. Lowenthal moved for assignment of the lease to Giti Majdy and Kianoush Kakavand, dba San Jose Teamsters. The motion died for lack of a second. Kwok moved to deny the application. Wang seconded and the motion carried by the following vote: Ayes: James, Kwok, Lowenthal, Sandoval, and Wang. Noes: Lowenthal. Absent: None. ORDINANCES-None STAFF REPORTS - None Rick Kitson, Public Information Officer, reported on upcoming events in the community. They include the Art and Wine Festival this weekend, the Cali Mill Plaza opening on July 24, 10:30 a.m., and opening celebrations for the Library/Civic Center Plaza on October 29 and 30. COUNCIL REPORTS Council members highlighted the activities of their committees and various community events, including a library fundraising activities; HsinChu sister city; the grand opening of the Chinese Performing Artists of America at Vallco; closing ceremony of the Cupertino Little League; and welcoming new Parks and Recreation summer employees. Thanks were given to Darryl Stow for his leadership as the Executive Director of the Leadership Cupertino program, as well as to the staff and employees for their work on the budget and the cuts they have made in their pay and in the departmental operating budgets. ADJOURNMENT At 10:37 p.m. the meeting was adjourned. For more information: Staff reports, backup materials, and items distributed at the meeting are available for review at the City Clerk's Office, 777-3223, and also on the Internet at www.cupertino.org. Click on Agendas & Minutes/ City Council/ Packets. Most Council meetings are shown live on Cable Channel 26, and are available at your convenience from our web site. Visit www.cupertino.org and click on Watch Meetings. Videotapes are available at the Cupertino Library, or may be purchased from the Cupertino City Channel, 777-2364.