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M06-16-081 MINUTES OF THE TOWN COUNCIL/PARKING AUTHORITY/REDEVELOPMENT AGENCY JUNE 16, 2008 The Town Council of the Town of Los Gatos conducted a Regular Meeting on Monday, June 16, 2008 at 7:00 P.M. TOWN COUNCIL/PARKING AUTHORITY/REDEVELOPMENT AGENCY MEETING CALLED TO ORDER ROLL CALL Present: Mayor Barbara Spector, Vice Mayor Mike Wasserman, Council Member Steve Glickman, Council Member Diane McNutt, and Council Member Joe Pirzynski. Absent: None. PLEDGE OF ALLEGIANCE - LED BY FUTURE LEADER Steven Zierk, A 9th grade student from Los Gatos High School led the Pledge of Allegiance. The audience was invited to participate. CLOSED SESSION REPORT CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Government Code section 54956.9(a) Hunter v. Town of Los Gatos, Case No. 1-06-CV-074414 Mr. Korb, Town Attorney stated that direction was given to settle the matter. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Government Code section 54956.9(b) Claims of State Farm Insurance for Ciampossin/Stephanie MacLean Mr. Korb, Town Attorney stated that direction was given to settle the matter. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code Section 54957) Title: Town Manager Mr. Korb, Town Attorney stated that direction was given and no action was taken. 2 BOARDS/COMMISSION/COMMITTEES APPOINTMENTS Planning Commission (3 applicants, 1 vacancy) Marcia Jensen was appointed to the Planning Commission. General Plan Advisory Committee (23 applicants, 10 vacancies) The Following Applicants were appointed to the General Plan Update Advisory Committee:  Melanie Hanssen  Dan Ross  Kevin Kelly  Deborah Weinstein  Perry Hariri  Tim Lundell  Gordon Yamate  James Foley  Libby Lane  Thomas Spilsbury PRESENTATIONS Commendations - Community/Business Recognition Mayor Barbara Spector presented commendations to Mary Ann Cook, George Sakkestad and Leigh Weimers for their dedication to the community. TOWN COUNCIL CONSENT ITEMS (TO BE ACTED UPON BY A SINGLE MOTION) 1. Ratify payroll for the month of May 2008 2. Ratify accounts payable for May 2008 3. Approve the 2008 Council/Commission Retreat Issue Matrix 3 Consent Items - Continued 4. Adopt resolution granting an appeal of a Planning Commission decision and approving applications to demolish a single family residence build prior to 1941, and a 3,250 square-foot office building, merge two existing parcels and construct a new 15,510 square-foot office building on property Zoned O. RESOLUTION 2008-078 5. Adopt resolution supporting "Extended Producer Responsibility" a state-wide effort aimed at shifting responsibility for producer waste from government to industry. RESOLUTION 2008-079 6. Adopt a resolution authorizing the Town Manger to enter an agreement with Design, Community and Environment (DC & E) to prepare the General Plan Update. RESOLUTION 2008-080 7. PPW Job No. A08-017 - Los Cerritos Drive Storm Drain Project 816- 0406. RESOLUTION 2008-081 a. Authorize establishment of the Los Cerritos Drive Storm Drain Project No. 816-0406. b. Authorize project budget in the amount of $27,500 payable from Storm Drain Basin #1. c. Adopt resolution declaring MSI Underground Improvements, Inc. to be the lowest responsible bidder on the project and award a construction contract in the amount of $27,500. 8. Adopt resolution authorizing the Town Manager to execute an agreement with the County of Santa Clara, "Joint Exercise of Powers Agreement and Cooperation Agreement to undertake or to assist in the undertaking of essential activities pursuant to Title I of the Housing and Community Development Act of 1974, as amended, for the period of October 1, 2008 to September 30, 2011" RESOLUTION 2008-082 4 Consent Items – Continued REDEVELOPMENT AGENCY 9. Ratify accounts payable for May 2008. TOWN COUNCIL/REDEVELOPMENT AGENCY 10. Approve Council/Agency minutes of June 2, 2008. 11. Debit/Credit Card Acceptance a. Approve new Town cash and credit card policy b. Authorize Town to execute a Merchant Services Agreement with Wells Fargo Bank through a Master Service Agreement (MSA) with the State of California Mr. NcNeill pulled Consent Item #4. Mr. Davis pulled Consent Item #3. Mayor Barbara Spector stated that the pulled Consent Items would be heard after Other Business. MOTION: Motion by Council Member Steve Glickman to approve Consent Items #1, 2, and #5 -11. Seconded by Council Member Joe Pirzynski. VOTE: Motion passed unanimously. VERBAL COMMUNICATIONS Mr. Davis  Stated that the Monte Sereno City Council rejected using park funds to upgrade the Town Plaza fountain.  Suggested that Monte Sereno use funds to build a parking lot at Baggerly.  Commented against the sale of the Town-owned property at Vasona Park. Closed Verbal Communications 5 Mayor Barbara Spector and Mr. Larson, Town Manager, advised the audience that staff is recommending a continuance on Item #14. PUBLIC HEARINGS 12. Abatement of Hazardous Vegetation (Brush) Adopt resolution overruling objections and ordering hazardous vegetation abatement(brush) RESOLUTION 2008-083 Staff report made by Todd Capurso, Director of Parks and Public Works. Open/Close Public Hearing MOTION: Motion by Council Member Steve Glickman to approve Abatement of Hazardous Vegetation (Brush) and adopt resolution overruling objections and ordering hazardous vegetation abatement (brush). Seconded by Council Member Joe Pirzynski. VOTE: Motion passed unanimously. 13. Consider whether to approve a General Plan Amendment from Medium Density residential (5-12 Dwelling Units Per Acre) to High Density Residential (12-20 Dwelling Units Per Acre) and Introduce an ordinance making a Zone Change from RM:5-12 to RM:5-20:PD for a fifty-six lot residential subdivision to convert the existing apartments to condominiums. Planned Development Application PD-07-02 APN 510-14-004. Property location: 347 Massol Avenue. Property owner: Lyon Baytree Apartments LLC. Applicant: Lyon Realty Advisors File#GP-08-01 & PD-07-02. RESOLUTION 2008-084 Staff report made by Bud Lortz, Director of Community Development. Council Member Glickman recused himself from Item #13 due to the location of his residence. 6 Public Hearing Item #13 – Continued Council Comments  Questioned the monthly principle payment of a condo and if the homeowners dues and taxes were included.  Questioned the number of vehicles restricted to owner occupied units.  Questioned the proposed tandem parking at the location.  Stated that all five Council Members had visited the location and spoke with the owners. Mr. Korb, Town Attorney  Commented that he would have to research the questions relating to restricted parking. Mr. Larson, Town Manager  Suggested that the homeowners association could limit the amount of parking permits given to the owners. Open Public Hearing Mr. Cole, Applicant  Commented that his team has been working on recommendations on the project provided by staff.  Commented about the Below Market Priced units (BMP) and affordable housing issues.  Commented that the parking plan for the new development would improve the parking situation on Massol Avenue.  Commented that the current apartment complex has not had any parking complaints.  Commented on the buyer profile for Los Gatos and that there is a need for smaller homes.  Commented that the existing residents will receive relocation assistance at no charge and have been introduced to the relocation coordinator.  Commented that more than 70% of the current residents received a notice when they moved in notifying them about the process.  Commented that 7 residents at the location qualify for the BMP program. 7 Public Hearing Item #13 – Continued Council Comments  Questioned if the estimated mortgage cost for BMP units include association maintenance fees.  Questioned if current residents will receive priority status for BMP units at that location.  Questioned if the applicant would be willing to use 360 degree architecture.  Questioned the phasing plan for converting the units.  Questioned the relocation options for the current tenants. Mr. Cole  Clarified that a 1% property tax fee and a $300 Home Owners’ Association (HOA) fee was included in the estimated BMP cost.  Commented that he is not aware of any 360 degree architecture requirements or proposed plans for the project.  Commented on the phasing process for conversion of the units.  Clarified the percentage of residents that typically leave the premises when a conversion takes place. Mr. Lortz  Clarified that the 360 degree architecture would be reviewed during the Architecture and Site process.  Clarified the point system associated with the BMP application process. Council Comments  Asked for clarification as to when to expect the BMP requirements to take effect. Mr. Cole  Clarified the anticipated timing of the process to allow the BMP requirements to take effect. Ms. Robin  Commented that she chose Bay tree Apartments because the complex is close to her family.  Commented that there are not many apartments in the community that fit her needs. Mr. Davis  Commented about condo conversions and stated that the industry fell apart about 15 years ago because developers did not do a proper job remodeling the properties.  Commented that the Town needs a system to evaluate condo conversions. 8 Public Hearing Item #13 – Continued Ms. Porter  Commented that she is the relocation coordinator who will be assisting residents with their relocation process. Mr. Houde  Commented against the condo conversion.  Commented that parking is a problem around the Bay Tree Apartments and on Massol Avenue.  Commented that there would be more cars with the new development. Mr. Trapani  Commented that the real estate market is strong in Los Gatos and that condo conversions would be received favorably.  Commented that the demand for smaller homes in Town is increasing. Mr. Schloh  Commented on the architecture of the Bay Tree Apartments.  Commented that the complex could use an uplift and that the architecture should blend with the neighborhood. Mr. Silva  Commented that the neighbors approved the project. Mr. Forbes  Commented against the condo conversions.  Commented that he is on a fixed income and does not qualify to purchase a condo. Council Comments  Questioned if Mr. Forbes has had the chance to look at other apartments in the community. Mr. Kaschub  Questioned vacancy rates for apartments in Los Gatos.  Questioned the Town’s requirements for multi-family homes.  Commented that there are no plans for a parking structure in the proposed development.  Questioned the 360 degree architecture for the proposed development. Ms. Kaschub  Questioned the proposed parking and 360 degree archite cture for the proposed project.  Recommended that the applicant use their capital to repair existing structures and invest in providing significant resident parking. 9 Public Hearing Item #13 – Continued Ms. McGrath  Commented against the condo conversation project.  Commented that she would have to move from the Bay Tree Apartment complex if the project is approved. Ms. de Mos  Commented against the condo conversion process.  Commented that she can not afford to purchase a condo and does not want to move. Mr. Bohm  Commented against the condo conversion.  Stated that there is a need for rentals in the community. Mr. Knowles  Commented on supporting the condo conversion project. Mr. Kane  Commented that the Planning Commission stated that the existing residents would be made a priority and relocated. Ms. Smith  Commented on supporting the condo conversion project and read a letter from Ms. O’Laughlin supporting the condo conversion project. Ms. Ferguson  Commented on alternative housing for residents who would need to relocate and want to stay in the immediate area. Council Comments  Questioned if Maison Massol apartments would want to turn their apartments into condos.  Questioned the price comparisons for Maison Massol verses Bay Tree Apartments.  Questioned the vacancy rate at the Maison Massol apartments. Ms. Grabill  Commented on supporting the condo conversion project.  Commented that there is a shortage of affordable housing in the Town. Mr. Jillo  Commented in support of the condo conversion project. 10 Public Hearing Item #13 – Continued Ms. Lynner  Commented in support of the condo conversion project. Mr. Whitter  Commented in support of the condo conversion project and that the applicants have done a great job with other rental locations.  Commented that the Town would benefit from the 8 BMP units. Mr. Cole, applicant  Commented that the Lyon Corporation will make the relocation of residents a priority and that the project will be key in providing additional affordable housing. Council Comments  Requested that the applicant address the parking issues raised by the community.  Questioned green building alternatives associated with the proposed project.  Recommended that the Lyon Corporation look at a more restricted parking plan. Mr. Cole  Clarified that the proposed parking for the project is ample and that parking in the area was never at capacity.  Commented that 1.4 parking spaces per unit were required for the project and that the project has proposed 1.6 spaces per unit.  Commented that a reduction in parking would be a good idea and could be achieved by reducing the amount of vehicles for the one bedroom units.  Commented on the design for enclosed bike lockers at the location as a green alternative.  Clarified that they are not looking to off-set parking on Massol Avenue.  Commented that the applicants are open to working on the architecture for the proposed project. Council Comments  Commented that the ordinance requires 3 parking spaces per unit and inquired why the applicant stated that 1.46 parking spaces per unit are sufficient for the project.  Expressed concern about the relocation.  Questioned if there are any conditions of approval for the relocation process. 11 Public Hearing Item #13 – Continued Mr. Cole  Clarified the process used by the Lyon Corporation for relocation of residents. Council Discussion  Requested clarification about the process for approving the ordinance.  Questioned if approving the condo conversion at Bay Tree apartments would encourage other apartment complexes to do the same. Mr. Lortz  Clarified the Planned Development process and stated that the development does not set a precedence for other properties to follow the condo conversion process. Mr. Larson, Town Manager  Requested clarification from the applicant about State requirements governing the relocation of residents. Closed Public Hearing Council Discussion  Concerned that there would be an overflow of parking onto Massol Avenue.  Questioned preferred parking as an alternative on Massol Avenue. Mr. Lortz  Commented that the Transportation and Parking Commission would recommend alternatives for parking along Massol Avenue.  Commented that the existing residents be participants in a relocation program if they choose and that issue would be referred to the Community Services Commission with a recommendation back to Council for consideration. Council Discussion  Questioned the timeline for the Commission recommendations to come back to Council. 12 Public Hearing Item #13 – Continued Mr. Lortz  Suggested that one option would be to continue the item to a date certain to allow time for the commissions to address outstanding issues.  Another option would be to approve the project as it is with the two bedroom units receiving two parking spaces and one bedroom units receiving one parking space.  Commented that staff and the Commissions would be able to recommend options for the on-street parking issues.  Suggested that the Community Service Commission can help clarify the relocation process and provide assistance on availability rentals. Council Discussion  Questioned if the applicant could come up with the additional parking spaces requested by staff.  Questioned if the conditions of approval allocates parking spaces for home-owners associations.  Questioned if the Community Services staff could assist with the relocation issue in lieu of the Community Services Commission. Mr. Lortz  Commented that the applicant could come up with additional spaces if they build a large retaining wall.  Suggested ideas for the reduction of parking spaces for the proposed project.  Commented that bike lockers are strongly encouraged as part of the proposed project through the Architecture and Site process.  Commented that staff would be able to provide direct assistance through the BMP program. Council Discussion  Suggested a condition that states that the HOA limit resident parking to 92 spaces and the HOA could allocate the spaces.  Suggested that Community Service staff involvement may help expedite the process. Mr. Lortz  Clarified the process for evaluating tandem parking spaces. 13 Public Hearing Item #13 – Continued Council Discussion  Questioned the value of condo conversions in the community.  Commented that there is a demand for the smaller-sized homes and condos.  Commented that the applicant has fulfilled the BMP requirements at the location.  Commented that the architecture could be solved through the Development Review Committee and Planning Commission.  Commented on the open parking spaces along Massol Avenue and that there have been no complaints about parking in the area.  Suggested capturing a majority of parking within the location of the condo development.  Commented that there are currently 56 parking spaces at Bay Tree apartments and that the project suggests that there should be about 90 spaces with the condo conversion.  Commented that some Bay Tree residents did not receive a notice.  Commented in favor of the architecture going back to the Development Review Committee.  Suggested slowing the process down and requesting more studies on parking and the relocation of its residents.  Expressed concern about expanding the permit parking area to Massol Avenue.  Council Member Diane McNutt made a conceptual motion to approve the project.  Council Member Pirzynski seconded the conceptual motion. Council Discussion  Questioned if the 360 degree architecture would go to the Development Review Committee or to the Planning Commission.  Commented that if the studies were done with a date-certain timeframe, Council may have more information and clarification about parking and relocation.  Requested more information about the required parking spaces.  Commented that the studies conducted by the Transportation and Parking Commission should help the decision-making process. Mr. Larson  Commented that with the summer recess, Council could expect information from the Commission within 3 to 4 months. 14 Public Hearing Item #13 – Continued Mr. Korb  Stated that the action before Council tonight would only approve the zone change.  Suggested that staff report back to Council in August 2008 about the concerns addressed by Council. Mayor Barbara Spector called for a recess at 10:20 p.m. Meeting resumed at 10:30 p.m. Mr. Korb  Commented that staff is proposing to add two conditions and to modify a third condition.  Commented that Condition 8(a) would direct the applicant to prepare a tenant relocation assistance program to the satisfaction of the Director of the Community Development.  Commented that Condition 8(b) would direct the applicant to prepare a residential parking allocation plan to the satisfaction of the Director of Community Development.  Commented that the modification would be to Condition 24 which would add a second sentence stating that the CC&R shall be consistent with the Residential Parking Plan required in Condition 8(b).  Clarified the type of restrictions enforced by the HOA relating to common areas within the developments. Council Member McNutt withdrew the conceptual motion from the table and the seconder agreed. MOTION: Motion by Council Member Diane McNutt to adopt a resolution approving the General Plan Amendment (Attachment 4) with the findings as recommended under Environmental (Attachment 3): a. Find that the proposed project is categorically exempt pursuant to Section 15301 (k) of the State Environmental Guidelines as adopted by the Town because there is no expansion of the existing use and there are no physical changes involved that would not otherwise be exempt. b. Make the required findings for the General Plan amendment and zone change (attachment 3). Seconded by Council Member Joe Pirzynski. 15 Public Hearing Item #13 – Continued VOTE: Motion passed unanimously. MOTION: Motion by Council Member Diane McNutt to wave the reading of the ordinance (attachment 5). Seconded by Council Member Joe Pirzynski. VOTE: Motion passed unanimously. Mayor Barbara Spector directed Jackie Rose, Clerk Administrator to read the title of the ordinance. MOTION: Motion by Council Member Diane McNutt to introduce an ordinance making a Zone Change from RM:5-12 to RM:5- 20:PD for a fifty-six lot residential subdivision to convert the existing apartments to condominiums. Planned Development Application PD-07-02 APN 510-14-004. Property location: 347 Massol Avenue. Property owner: Lyon Baytree Apartments LLC. Applicant: Lyon Realty Advisors File#GP-08-01 & PD-07-02. with conditions as follows: Condition 8(a) - applicant to prepare a tenant relocation assistance program to satisfaction of the Director of the Community Development. Condition 8(b) - applicant shall prepare a residential parking allocation plan to the satisfaction of the Director of Community Development. Condition 24 - add a second sentence stating that the CC&R shall be consistent with the Residential Parking Plan required in Condition 8(b). Condition 5 - the Architecture and Site plans go directly to the Planning Commission. Seconded by Council Member Joe Pirzynski. VOTE: Motion passed unanimously. 16 Public Hearings - Item #14 Council Member Steve Glickman re-joined the meeting. 14. Update and merge the pre-1941 Design Guidelines and the Residential Development Standards for all single family and two family dwellings in all zones except the Resource Conservation and the Hillside Residential Zones Zoning Ordinance Amendment A-08-01. Historic District Designation Applications HD-08-01, HD-08-02, HD-08-03 and HD-08-04. Applicant: Town of Los Gatos - STAFF RECOMMENDS CONTINUANCE TO 8/4/08 Staff report made by Bud Lortz, Director of Community Development. Open/Close Public MOTION: Motion by Council Member Diane McNutt to continue the update and merge of the pre-1941 Design Guidelines and the Residential Development Standards for all single family and two family dwellings in all zones except the Resource Conservation and the Hillside Residential Zones Zoning Ordinance Amendment A-08-01 to the August 4, 2008 Town Council meeting. Seconded by Council Member Joe Pirzynski. VOTE: Motion passed unanimously. OTHER BUSINESS 15. Accept staff report on evaluation process for Town Code Ordinance 2155 regarding the regulation of massage therapy establishments and massage therapy practitioners. Staff report made by Pamela Jacobs, Assistant Town Manager. Council Comments  Commented that the goal for the education requirement is to make sure that the therapists are properly trained.  Questioned if the 300 hour requirement is realistic for therapists.  Questioned the cost for the education classes at West Valley College. 17 Other Business Item #15 – Continued Ms. Jacobs  Clarified that the classes would be at no cost to the therapists. Captain Alana Forrest  Commented that the 300 hours of education is a best practice throughout the County. Opened Public Comment Mr. Atwell  Commented that massage therapists in the community need a voice and that the Town needs to have a complaint process. Ms. Granger  Commented on the courses offered by West Valley College and that a grant was awarded to West Valley College to implement the curriculum.  Would like more input from the Town and local therapists in to better improve the courses offered by the College. Ms. Asplund  Commented on the art of Rolfing and how Rolfing is used as alternative medicine.  Commented on practices that touch the human body, but are not considered massage.  Commented that many States are beginning to exempt Rolfing from their massage ordinances.  Commented that Rolfing has been exempt from the massage ordinance in Modesto California since 2001. Closed Public Comments MOTION: Motion by Vice Mayor Mike Wasserman to accept staff report on the evaluation process for Town Code Ordinance 2155 regarding the regulation of massage therapy establishments and massage therapy practitioners. Seconded by Council Member Steve Glickman. VOTE: Motion passed unanimously. 18 Other Business – Continued 16. Introduce ordinance to implement the provisions of the Digital Infrastructure and Video Competition Act of 2006 (DIVCA). Staff report made by Jenny Haruyama, Administrative Programs Manager. Council Comments  Questioned if there are any time constraints associated with the ordinance. Opened Public Comments Mr. Beachman  Suggested the Town delay adopting the ordinance to allow AT&T to work with staff on the issues to refine the ordinance. Closed Public Comments MOTION: Motion by Vice Mayor Mike Wasserman to introduce ordinance to implement the provisions of the Digital Infrastructure and Video Competition Act of 2006 (DIVCA). Seconded by Council Member Steve Glickman. VOTE: Motion passed unanimously. MOTION: Motion by Vice Mayor Mike Wasserman to waive the reading of the ordinance. Seconded by Mayor Barbara Spector. VOTE: Motion passed unanimously. Mayor Barbara Spector directed Jackie Rose, Clerk Administrator to read the title of the ordinance. 19 PULLED CONSENT ITEMS 3. Approve the 2008 Council/Commission Retreat Issue Matrix. Mr. Davis  Commented that he attended the Council/Commission Retreat and expressed disappointment in Council’s relationship with the Youth Commission.  Commented on the Council Code of Conduct as it relates to Boards and Commissions. MOTION: Motion by Council Member Joe Pirzynski to approve the 2008 Council/Commission Retreat Issue Matrix. Seconded by Vice Mayor Mike Wasserman. Council Discussion  Commented that the Youth Commissioners expressed concerns about their role as commissioners. VOTE: Motion passed unanimously. 4. Adopt resolution granting an appeal of a Planning Commission decision and approving applications to demolish a single family residence build prior to 1941, and a 3,250 square-foot office building, merge two existing parcels and construct a new 15,510 square-foot office building on property Zoned O. Mr. Korb  Clarified the process for Consent Item #4. Mr. McNeill  Commented on the Architecture and Site approval for the proposed project.  Commented against the proposed project and stated that it does not fit in with the neighborhood. Mr. Whittaker  Commented against the proposed project and that the project is not environmentally sensitive to the neighborhood. 20 Pulled Consent Item #4 – Continued Mr. Mekechuk  Commented against the proposed project.  Commented that he is speaking on behalf of Colleen Marchbank and that she is against the proposed project.  Commented that the proposed development does not fit with the surrounding neighborhood. MOTION: Motion by Council Member Steve Glickman to adopt resolution granting an appeal of a Planning Commission decision and approving applications to demolish a single family residence build prior to 1941, and a 3,250 square-foot office building, merge two existing parcels and construct a new 15,510 square-foot office building on property Zoned O. Seconded by Council Member Joe Pirzynski. VOTE: Motion passed 4/1 with Mayor Barbara Spector voting no. COUNCIL/TOWN MANAGER REPORTS 17. Council Matters Council Member Steve Glickman  Invited the Community to attend the Shakespeare Festival at Oak Meadow Park in July. Mayor Barbara Spector  Thanked staff and Council for a great job over the past 9 months. 18. Manager Matters Mr. Larson, Town Manager  Reported on the capture of a coyote by Vector Control over the weekend. ADJOURNMENT Attest: /s/ Jackie D. Rose, Clerk Administrator