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.
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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.
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Cupertino City Council
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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
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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.
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Cupertino City Council
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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
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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
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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.