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Minutes - 04-24-13 - PCPlanning Commission Minutes Page 1 April 24, 2013 TOWN OF LOS GATOS PLANNING COMMISSION MEETING ACTION MINUTES TOWN COUNCIL CHAMBERS 110 E. MAIN STREET WEDNESDAY, APRIL 24, 2013 ROLL CALL Present: Chair Charles Erekson, Vice Chair Margaret Smith, Commissioner John Bourgeois, Commissioner Kendra Burch, Commissioner Thomas O'Donnell, Commissioner Joanne Talesfore, and Commissioner Marico Sayoc. Absent: None Others: Town Attorney Judith Propp, Acting Community Development Director Todd Capurso, Assistant Community Development Director Sandy Baily, Principal Planner Joel Paulson, Asst. Parks and Public Works Director Kevin Rohani, Associate Civil Engineer Fletcher Parsons, Attorney James Moose, Fritz Geier and Valerie Geier, Environmental Consultants, and Recording Secretary Linda Rowlett. PLEDGE OF ALLEGIANCE Led by Commissioner Marico Sayoc. APPROVAL OF MINUTES OF APRIL 10, 2013 Motion by Commissioner Joanne Talesfore and seconded by Commissioner Thomas O'Donnell to approve meeting minutes of April 10, 2013. Motion carried 7-0. WRITTEN COMMUNICATIONS Chair Charles Erekson noted that there is a desk item for Item #1. REQUESTED CONTINUANCES - NONE Planning Commission Minutes Page 2 April 24, 2013 SUBCOMMITTEE REPORTS Historic Preservation Committee - Commissioner Thomas O'Donnell reported that the committee met earlier today and approved the addition of a widow's walk at 207 Los Gatos Boulevard, approved an awning modification and reviewed paint samples for 109 W. Main Street, approved a proposal for the repair of exterior siding and stair at 254-256 Bachman Avenue, and reviewed a request to demolish a pre-1941 residence at 60 Central Avenue. VERBAL COMMUNICATIONS (AUDIENCE) - NONE CONSENT CALENDAR - NONE CONTINUED PUBLIC HEARINGS - NONE NEW PUBLIC HEARINGS (Heard Out of Order) 1. 90-160 Albright Way and 14600 Winchester Boulevard - Planned Development Application PD-12-001, Architecture and Site Application S-12-078, Environmental Impact Report EIR-12-003. Requesting approval to modify the existing Planned Development to allow for redevelopment of the existing site with up to 550,000 square feet of new office/commercial buildings and approval to construct the improvements represented in the Planned Development. An Environmental Impact Report (EIR) has been prepared as required by the California Environmental Quality Act (CEQA). APN's 424-31-053, 054, 063, 424-32-038, 045, 049, 054, 059, 060, 063. PROPERTY OWNER: LG Business Park LLC. APPLICANT: John R. Shenk. PROJECT PLANNER: Joel Paulson Chair Charles Erekson opened the public hearing. Principal Planner Joel Paulson presented the staff report. James Moose, Representing Town of Los Gatos, gave an overview of the process for CEQA (California Environmental Quality Act) involving a Mitigated Negative Declaration and Environmental Impact Report (EIR). Commissioner John Bourgeois • Asked if previous rulings have any bearing on tonight's hearing. • Asked about recommendations available to the Commission and if sending it back for redesign is an option. James Moose • Commented that previous documents have no relevance. The court directed the Town to prepare an EIR addressing aesthetics and traffic at a minimum. Town Attorney Judith Propp • Commented that Town Council rescinded the prior approvals and this is a new project. Planning Commission Minutes Page 3 April 24, 2013 Principal Planner Joel Paulson • Commented that staff is recommending approval of the project, but there is always an option to recommend sending it back for redesign. Commissioner Marico Sayoc • Asked if the court changes the process on how the Town evaluates the EIR. James Moose • Commented that the Commission should proceed as normal, but if the Town Council approves the project, the matter will go back to court to ensure the adequacy of the EIR. Commissioner John Bourgeois • Asked about the thresholds of significance for aesthetics in the EIR and how it was assessed and analyzed. • Commented on his idea of the Los Gatos aesthetic. There is a stark contrast between the aesthetics of Los Gatos and San Jose. • Referred to Section 5.5 Alternative Analysis and asked why the environmentally superior alternative was not selected. James Moose • Commented that the thresholds of significance are derived from the questions in the initial study checklist. It is a common practice to use that process. • Commented that the alternative was not rejected it just did not meet all of the objectives. Fritz Geier, Environmental Consultant • Commented that the analysis for visual and aesthetic impacts is the most difficult in the EIR process. They look for guidance from the Town because standards vary in communities. They used their past experience with the Town and their professional judgment. Commissioner Joanne Talesfore • Asked when zoning changes need to be consistent with the General Plan (GP). Principal Planner Joel Paulson • Commented that zoning changes always need to be consistent with the GP. John Shenk, Applicant, gave a presentation on the proposed project. Commissioner John Bourgeois • Asked for clarification of the site plan on the location of the buildings. • Commented that he hoped for a better connection with the Los Gatos Creek Trail. • Commented that headlights shining onto the trail are a concern. • Asked about the location of the added cherry picker. Planning Commission Minutes Page 4 April 24, 2013 John Shenk • Commented they moved the buildings further away from the creek trail and along Winchester Boulevard using existing tree screening. The site plan considered the existing trees. There is more green; less coverage. This project is less intense than the Gateway project. The four stories provide more building square footage while covering less land. • Commented that the 2010 plan had a formal access point to the creek trail. The Santa Clara Valley Water District desires minimal access points. The Netflix employees currently use the trail to go between buildings. • Commented that there will be landscaping to screen the headlights onto the trail and they will ensure that they are compliant with the standards for being near the waterway. • Demonstrated the location of the cherry pickers for height demonstration on the overhead. Commissioner Kendra Burch • Asked if this is the final site plan. • Asked if underground parking was considered. John Shenk • Commented that this plan shows the zoning with conceptual ideas and it has the potential for change. The Architectural and Site (A&S) package shows the actual project and is concrete. • Commented that they considered underground parking but decided against it because of delays associated with the environmental impacts and the additional expense. They believe that this plan works better because it provides more open space, less coverage and plenty of green space around the buildings. Commissioner Marico Sayoc • Asked about trail access from the proposed project. • Asked if the parking lot will be fenced and if there will be an issue with the public using their parking lot. • Asked about screening of the headlights. John Shenk • Commented that the proposed creek trail access is an existing public access point. • Commented they do not plan to use a fence. They plan to use landscaping to dissuade people from walking through to the parking lot. Rich Sharp, Landscape Architect • Commented that they will be using18-30 inch tall dense grasses to prevent walking through the bioswale. They will use a more aggressive planting along the curbside as a deterrent. • Commented that less than 30 percent of the removed trees are heritage species. They are parking lot trees and are not a great landscape aesthetic. They want to replace them with more native species of trees. There will be 100 more trees in the end. • Commented they will be using fairly mature native plants for screening the headlights. Planning Commission Minutes Page 5 April 24, 2013 Commissioner Joanne Talesfore • Asked if other building placements were explored. • Asked what the distance is between the edge of the property and the building on the freeway side. John Shenk • Commented that they looked at many site plans but this is the best plan. The building placement helps to bookend the campus and they will put in 12 mature trees to block the broad side view of the building from Highway 85. • Commented that there are 57 feet between the building and the edge of the property at the tightest spot. Commissioner Thomas O'Donnell • Asked for the applicant's argument in favor of intensity. • Asked about landscaping phasing during construction. John Shenk • Commented that this intensity meets their target market. Efficiency requirements of the building are a consideration. A smaller building would not meet the critical mass needs of Class A tenants. • Commented that the perimeter landscaping for the project will be done in Phase 1. There is an interim landscaping plan during phasing. They do not plan to bring down all the buildings at the same time and any existing landscaping around existing buildings will stay. Commissioner Kendra Burch • Asked if they plan to prolong the overall build out after Phase 1 if they do not have tenants for the other buildings. • Asked about the overall phasing for the project at this time. John Shenk • Commented that the other buildings have longer leases on them and they are not committing to build out the other buildings because they do not know what the world will look like in five years. They will continue to move forward to the degree possible with required approvals. • Commented that the first phase of construction is about 16 months. Subsequent phases could be 13 or 14 months for one building, or 16 months for two buildings. Commissioner Margaret Smith • Asked when the parking garage will be built. • Asked about electric charging stations in the garage. • Asked if there will be a designated driveway for Netflix buses in this complex. • Asked about the building design of Building 4 and the upper decks. Planning Commission Minutes Page 6 April 24, 2013 John Shenk • Commented that the parking garage will be constructed in Phase 2 with the third building. • Commented that electric charging stations are not in the plans at this time. They will wait to meet tenant demands. • Commented that buses are expected but there is no designated access point. • Commented that the upper decks of Building 4 do not present a privacy issue for Charter Oaks neighbors, but they will look at that further. Commissioner Marico Sayoc • Asked about perimeter landscaping. • Asked how the new landscaping will look aesthetically pleasing alongside the existing landscaping. • Asked about phasing and not exceeding limits in the EIR. John Shenk • Commented that they will be landscaping the perimeter of the entire project in Phase 1. Rich Sharp • Commented that hydroseed is more of an application process where native grasses are introduced to get a natural looking mix. They will transition with some shrubs. They want to avoid planting trees that would need to be removed in a few years when building occurs. John Shenk • Commented that when they pull a building permit for a phase that is not identical to a phase that has been analyzed, they must supplement the application with analysis showing that no impact has been created. Achilles Malisos, RBF Consulting • Commented that they worked with the applicant to determine what the most conservative phasing schedule would be and they will capture the most aggressive construction schedule from an air quality perspective. If it is different, then the impact would likely be less and the emissions on a daily basis would be lower. There is a stipulation to submit monthly logs to the Town. Commissioner Joanne Talesfore • Asked why the buildings all look alike. John Shenk • Commented that the buildings are cousins rather than identical. Bob Giannini, Architect • Commented that there is a great deal of articulation on each elevation. By rotating the buildings they are seen differently from different angles. Planning Commission Minutes Page 7 April 24, 2013 Commissioner John Bourgeois • Commented that he likes the building design, but the concern is the view from a distance. It comes across as a massive wall from Highway 85. Bob Giannini • Commented that the buildings will have deep shadows from the articulation on the buildings so it will not look like a flat sided office building. Commissioner Marico Sayoc • Asked what factor determined the new design. • Asked about nighttime lighting and how much will be cast onto the creek. Bob Giannini • Commented that they wanted to maintain the colors and scale of the Netflix buildings. It is in keeping with the feeling of the Town but moving away from keeping it pure historicism. • Commented that lights in the windows will be seen, but no light will spill off the site. • Commented that the light source will not be seen. The reflective glow will be seen through the windows but screening will block some of it. The exposure on Highway 85 is the greatest. It will be similar to the existing Netflix. Commissioner Kendra Burch • Asked about exit lighting. Bob Giannini • Commented that exit lighting will be low bollards, pedestrian lighting and pole lights with cut off features. Eric Stenberg • Commented his main issues are traffic and building height. • Commented that the additional tenants will significantly impact traffic. • Commented that the panels do not begin to address the size of the building. The impact is big, massive, and heavy and it will have a detrimental effect on the traffic in that area. Simone Steinhaus • Commented that she is speaking in favor of the project. She has 24 years in the corporate real estate business. This project is exactly what tenants are looking for to grow and stay together. • Commented that the parking requirements are very standard and the landscaping is a cut above what is out there in the valley. Eric Hallgrimson • Commented that he has been a commercial broker for 15 years and represents about 25 percent of the Town's total office product. He is speaking on behalf of the Boccardo Corporation and they believe that this project will be a great addition to the Town. The project size is needed to attract corporate tenants. Planning Commission Minutes Page 8 April 24, 2013 Commissioner Marico Sayoc • Asked the height of the Boccardo buildings. Erik Hallgrimson • Commented that the Boccardo buildings on Lark and University Avenues are one- and two- story buildings. Their buildings could not provide the scale that Netflix needed. They also have expansion concerns with another tenant. Anne Robinson • Commented that she has lived on Charter Oaks Circle for 20 years and showed pictures of the buildings from her home noting a significant visual impact. • Commented that the major traffic circulation will come along the Charter Oaks border creating noise and pollution and that there will be headlights shining into the neighborhood. Commissioner Joanne Talesfore • Asked Ms. Robinson about the impact of the present buildings when they were occupied. Anne Robinson • Commented that she does not recall any impact from existing buildings. There are no windows on the building behind her. • Commented that there are four units per building in her development and there are 101 units in Charter Oaks. There are four units that will be impacted by Building 4. Commissioner Margaret Smith • Asked Ms. Robinson if she attended the outreach meeting. Anne Robinson • Commented that she has attended several outreach meetings and the cherry pickers were not in place at the time. These are new photos since the cherry pickers were moved. John Shenk did a tour of the photo simulations. Charles Wade • Commented that he has lived in Los Gatos for 33 years. His concern is the height of the building that will bring in more traffic. • Commented that traffic and the quality of life are impacted. Mary Kairis • Commented that she has lived in Charter Oaks since 1975. She is an avid cyclist and uses Lark Avenue. She already must use the sidewalk due to traffic. • Asked the Commission to reconsider the negative impact of more traffic on Lark Avenue. Jak VanNada • Commented that everyone loves Los Gatos and Netflix, but overbuilding will block the hills and views. • Commented that this project will not happen within a reasonable period of time to be of use to this site or this end of the valley. Planning Commission Minutes Page 9 April 24, 2013 • Commented that he does not believe the traffic data. • Commented that he would encourage that the project remain within the bounds of the GP and not the PD. Elle Stern • Commented that she has lived in Los Gatos for 45 years. • Asked about planting in the green area between the parking spots. • Commented that four four-story buildings are awful. • Commented that the traffic on Lark Avenue will be impacted. Gregory Snow • Commented that he lives in Charter Oaks. • Referred to Exhibit 12 with its 32 respondents. The proponents all spoke to the $1 million in annual property taxes and they all live in other areas of the Town. • Commented that focusing on a single tenant like Netflix is dangerous if they should decide to leave. Jim Erickson • Commented he has lived in Los Gatos for two years and is in favor of the project because he believes the tax revenue is great and he would like to see Netflix stay in Los Gatos. Daisy Pereira • Commented that she has lived in Los Gatos for close to 30 years and that she supports the project because of the tax revenue and for keeping Netflix in town. Tony Aghazarian • Commented that he is the president of the Charter Oaks Board of Directors. They are worried about how they will feel about this project in the future. • Commented that hard constraints need to be put in place to solve the problems that exist. Robert Schwimmer • Commented that he lives on Charter Oaks Circle and that the proposed density is too high and will affect the quality of life of Charter Oaks and stretching the limits for building heights can extend to other areas of Town. • Commented that Charter Oaks is 15 feet below Winchester Boulevard and the 65-foot high buildings are going to look like 80 feet. • Commented that there is a conflict between quality of life and profit. • Asked the Commission to consider the residents of Charter Oaks. Phil Albanese • Commented that he has lived in Los Gatos for two years and they are in support of the project. They believe the project will have a positive economic impact. It is an opportunity for Los Gatos to attract talent that is moving north in the bay area. • Commented that the development team is acting responsibly in answering community concerns. Planning Commission Minutes Page 10 April 24, 2013 Amy Dee • Commented she is director of facilities for Netflix. They are at 95 percent capacity and are running out of space. The small building model does not meet their needs. • Commented that Netflix goes out of their way to reduce the impact on traffic by offering shuttle service, flexible work schedules, and bringing in lunch for employees. • Encouraged approval of the project. Commissioner John Bourgeois • Asked what the current square footage is for Netflix. Amy Dee • Commented that current square footage is 250,000 square feet. They are a mid-size company and are already occupying that much space. The 550,000 square feet is attractive because they have outgrown their current buildings and the floor plates and height of the buildings are attractive for collaborative environments. They have temporarily reduced their cubicle space to 250-300 square feet per employee. David Wells • Commented that he is the CFO for Netflix. There have been numerous hearings on this and they would like for it to move forward. They are committed to staying in Los Gatos and would love to stay, but they are out of options at this point. • Commented that multiple buildings are attractive for future expansion space. • Commented that traffic is fairly mitigated for their size. Commissioner Margaret Smith • Asked what Netflix is looking at for office layout for the future. David Wells • Commented that they are flexible for office layouts and they are likely to stay like they are today. Larry Arzie • Commented on the intent of the zoning code and noted that he does not see good design. The project is not meeting the needs of parking or open space and is not in harmony with the surrounding neighborhood. It is also not in keeping with the small town character of Los Gatos. • Suggested that two floors be put underground to meet GP requirements. Anna Hellmer • Commented she has lived here for 15 years and she would hate to lose the views of the hillsides. • Commented that it is hard to visualize what the project will look like and she is concerned about seeing a big blank wall. • Commented that Judge Huber's order recognizes problems with the aesthetics of this size of project. Planning Commission Minutes Page 11 April 24, 2013 • Encouraged that the project be kept to a smaller scale and in keeping with the Town's character. Mike Gibbs • Commented that he has lived here for 20 years and he is in favor of the project. • Commented that traffic means people are utilizing small businesses. • Commented that some of the tall buildings in the area are providing vital services for the community. • Commented that Netflix is beneficial to the Town. Richard Minert • Commented he has lived here for 30 years and he is an architect. • Commented that the in terms of economics, the loss of revenue from the auto dealerships leaving creates lack of funding for schools. Housing does not provide the needed revenue. • Commented that the project is appropriately sited with flex hours that will reduce traffic impacts. Raphael Oliveira • Commented that his family lives near Netflix and supports the project. The new buildings are beautifully designed and will save more energy and use less water. • Commented that it is important for businesses to retain customers and Netflix employees shop and eat in Los Gatos. • Commented that he never has parking issues at his home. Andy Wu • Commented that he wrote the commentary on behalf of Los Gatos Citizens for Responsible Development that was responsible for the EIR. • Commented that tonight he is here as a private citizen and has no vested interest in Netflix. • Commented that there is a better plan that was discounted, but this proposal is about dollars. The reduced intensity plan will satisfy Netflix's needs for immediate expansion. No one knows what Netflix's needs will be in the future. • Asked the Commission to protect the citizens of Los Gatos. Linda Sundberg • Commented that she lives in Charter Oaks very close to the development. She will lose filtered light and she feels helpless. • Commented that she is not against development in Los Gatos but she is against the magnitude of this development. • Commented that she is also worried about traffic when trying to get in and out of her community. • Commented that she hopes the development can be a little bit smaller. Jeff Loughridge • Commented he is concerned about the project because the buildings are too tall and the project is too massive for the neighborhood. The skyline will disappear. Planning Commission Minutes Page 12 April 24, 2013 • Commented that this project is not in harmony with the neighborhood. • Commented that the present industrial park is perfect and blends into the neighborhood. • Asked that the Commission reject the project as it stands and preserve the gateway to Los Gatos. Eric Connor • Commented that he has lived in Los Gatos for six years and he came here because it reminds him of Ireland. • Commented that the traffic problems will grow and they will be living in the shadow of these buildings. Presented a slide presentation on traffic flow noting huge traffic issues on Lark and University Avenues and Winchester Boulevard. • Commented that there is limited access to freeways in the morning and evening commute hours. Lark Avenue is almost like a parking lot. Laura Saunders • Commented that she supports the expansion of Netflix mostly because of bringing more jobs into the community and increased revenue. The money coming in for schools is beneficial. • Urged the Commission to approve the project. Dean Westman • Commented that he is a resident of Los Gatos and is in favor of the project. • Commented that the aesthetic improvement and increased revenue is dramatic. • Commented that the project will improve the quality of life in Los Gatos by additional customers for its businesses and extra funds for its schools. Lezli Logan • Commented that her family has lived in Los Gatos since 1932. • Commented that she is speaking on behalf of her family and the group We Support Los Gatos and they all support the project. • Commented that the project is consistent with the Town's plans and it will benefit the schools, the Town, and local businesses. • Commented that the data used to evaluate this project is clearly represented in the EIR rather than personal perceptions. • Commented that the traffic issues can be addressed and the size of the project allows Netflix to stay in the community. • Commented that she has a preliminary petition to the Town Council in support of the project with 266 signatures and more people are signing every day. John Shepardsen • Commented that the project should be left at the 35-foot building height. • Commented that he is in favor of Netflix and the reduced size avoids gridlock risk, protects vistas and views, provides school funding, and follows the EIR. • Commented that they want Netflix and businesses but they do not want to break the law in the process. • Commented that underground parking will be a better solution. Planning Commission Minutes Page 13 April 24, 2013 Dianne Anderson, President, Los Gatos Chamber of Commerce • Commented that she is representing her board of directors who strongly support the project and requests that the Commission and Town Council approve the proposed project. • Commented that the project creates vital revenue for the town. • Commented that the project allows Netflix to stay in the community. • Commented that the developer has made significant changes to the project in response to the community. • Commented that major traffic improvements will be made to address traffic concerns. • Commented that Class A office space is needed in Town and that Los Gatos is not just a residential community. • Commented that it is time for Los Gatos to be business friendly if it wants to maintain the things that make it the place to live and do business. If this project is not approved, it will be a resounding signal that Los Gatos is not the place to locate and build a state-of-the-art company. Joanne Bosomworth • Commented that she has lived in Charter Oaks for 38 years. • Commented that over the past three years, there has been a lot more discussion with the Charter Oaks neighborhood and the Albright Business Park. The developers have listened to their concerns and have showed sensitivity to their needs. • Commented that the development will be an improvement and the revenue will benefit the schools and the Town. • Commented that safety and the impact on their privacy and way of life are the concerns of the Charter Oaks neighbors. She asked that the Commission keep the needs of her neighborhood in mind. William Burns • Commented that he lives on Newell Avenue close to the project and has not had any contact from the Town or the developer. He is violently opposed to the project. • Commented that traffic is already terrible at that location and that the Town puts anything that they want to dump in the north end of town. • Commented that the Netflix building is not even close to the character of the Town. • Commented that the Town does not need to increase the number of people into the Town that is proposed by the development. • Commented that the buildings are massive and they are too tall. The Town plans should not have to change to accommodate this development. • Commented that the Town cannot plan everything around Netflix staying in Los Gatos. Peggy Gibbs • Commented she and her husband have lived in Los Gatos for over 20 years and are business owners in Town. • Commented that the developer has attempted to address the concerns of the Town and community. Planning Commission Minutes Page 14 April 24, 2013 • Commented that Los Gatos is a vibrant Town because of its residents and businesses. The Town needs to continue to draw those kinds of vibrant people. Change is difficult, but change is necessary. • Commented that the property currently in use by Netflix is not up to standards and that great companies bring great companies. • Commented that Los Gatos is a vibrant town and it only stays vibrant if it keeps drawing innovative people with creativity. • Urged approval of the project. Jennifer Grewal • Commented they have lived in Charter Oaks since 2000. • Commented that she has been vice president of the Charter Oaks board for the past five years and the board agrees that the scope of the project needs to be reduced for traffic and visual impact reasons. • Commented that her main concern is traffic and there will be increased traffic. • Commented that the merge between the Highway 17, Lark Avenue and Oka Road area is a nightmare around 4:15 p.m. to turn onto Oka Road. • Commented that the intersection at Charter Oaks Drive and Lark Avenue has a blind spot that prevents visibility when trying to turn onto Lark Avenue. • Commented on numerous traffic issues already existing on Lark Avenue. • Commented that they support the development but urge the Town to oversee the development to keep it in line with the current Town standards. Commissioner John Bourgeois • Asked if the new stoplight at Lark and University Avenues has helped the traffic situation. Jennifer Grewal • Commented that the stoplight has not helped or hurt the situation; it has created different issues. Jeff Black • Commented that he is in commercial real estate and supports the project. • Commented that the design provides needed space for collaboration. • Commented that high technology companies need the ability to expand as needed. • Commented that this project replaces 10 functionally obsolete buildings. • Commented that the traffic generated by this project will be mitigated by acceptable levels to satisfy the Town. • Commented that this project is exactly what the Town needs to retain its small town feel for the future. Erik Eastland • Commented that he lives in Charter Oaks. • Commented that the VTA (Valley Transportation Authority) Vasona Line is a major goal of the Town and this project will not help further that goal. VTA is struggling and the proposed VTA station may never be built. Planning Commission Minutes Page 15 April 24, 2013 • Commented that the Town should not trust Netflix for this project and he questions its loyalty to Los Gatos. • Commented that business fluctuates and the best solution is the proposed compromise that meets the standards of the Town and keeps Netflix in Los Gatos. Jonathan Noble • Commented that he supports the project as critical for the schools and Town services. It is a well designed project with appropriate setbacks. Stephan McNulty • Commented that they urge approval of the plan. It is suitable to the location and the collaborative work environment lends itself to the use. • Commented that Netflix will provide revenue needed for Town services. • Commented that the developer compromised as requested. Bill Puterbaugh • Commented that he has been a resident in Los Gatos for over 40 years. • Commented that before the earthquake the downtown was dying; now it is a vibrant city center. • Commented that the Town is dependent on businesses and in creating jobs. • Commented that with Netflix or another company, the Town needs that facility to house that size company. • Urged support of the project. Shiloh Ballard • Commented that she is representing the Silicon Valley Leadership Group who supports approval of the project. • Commented that Los Gatos is part of the Silicon Valley region and this is an important economic development opportunity for the region and the Town. It will bring new high tech jobs and opportunities that benefit the Town and the region. Chair Charles Erekson • Thanked the speakers who took the time to come and speak to the Commission. He called for a short recess at 10:47 p.m. and reconvened the meeting at 10:52 p.m. John Shenk • Deferred some of his time to David Wells of Netflix to address some of the comments. David Wells • Commented that when they chose to split off the DVD division of Netflix, the lead person chose to move it closer to the northern California distribution center in Fremont. That decision was made prior to seeking an agreement with San Jose. Finding an agreement with San Jose for sales tax abatement was made after Netflix had chosen to move there. On top of that, that decision was ill fated and the sales taxes never moved out of Los Gatos. Planning Commission Minutes Page 16 April 24, 2013 John Shenk • Commented that regarding aesthetics, the significance criteria in the EIR are based on CEQA and Town policies. The EIR concludes that the project will not have a significant impact under the Town's criteria. They are not changing the use; this is the best location for this market today and in the future. Robert Del Rio, Traffic Engineer • Commented that his company prepared the traffic study for the project. • Commented that the trip rates in the traffic study are based on ITE (Institute of Transportation Engineers) rates which are the most accurate and reliable in the industry. • Commented that he has not seen any data that supports the occupancy trends and associated trip rates mentioned this evening. John Shenk • Commented that the traffic information presented by the public this evening is inaccurate. • Commented that his company has compiled information in agreement with the Town's guidelines and urges that his information be used as a resource. Commissioner Marico Sayoc • Asked if there is localized data that can be used to make trip rates data more specific to this area. • Asked about traffic study density. Robert Del Rio • Commented that there is no localized data available. They do trip generation surveys when they do traffic studies of existing buildings to estimate the amount of traffic being added. In looking at a recent area study he found that the average rates of the buildings today are actually less than what ITE is providing. • Commented that traffic studies are not identified with a tenant. ITE does offer trip rates based on employees, but it is not recommended that it be utilized. John Shenk • Commented that there is not a direct correlation between head counts in a building and traffic because of the various means of transportation to and from work and flexible work hours. Chair Charles Erekson called for motion to extend the meeting beyond 11:30 p.m. Motion by Commissioner Margaret Smith and seconded by Commissioner Thomas O'Donnell to extend the meeting past 11:30 p.m. Motion carried 7-0. Commissioner Thomas O'Donnell • Asked about busing of employees. Planning Commission Minutes Page 17 April 24, 2013 John Shenk • Commented that he is not aware of specific studies on busing, but where there are buses going in and out, they would be counted in a traffic study. Commissioner John Bourgeois • Asked Mr. Shenk if they are open to reduced intensity. John Shenk • Commented that they are not open to reduced intensity. Chair Charles Erekson closed the public input portion of the hearing and returned to the Commission for deliberations. He confirmed the Commissioners' preference to continue on with the hearing this evening. Commissioner Marico Sayoc • Asked about neighborhood compatibility in the EIR. • Asked about setbacks and if increasing density and intensity will affect the riparian corridor. Valerie Geier, Environmental Consultant • Commented that since the property is zoned industrial, they looked primarily at its consistency with land use patterns in the area and General Plan land use policies. They looked at a combination of factors including noise and setbacks. This project has larger setbacks in the parking areas than the existing buildings. • Commented that the simulations represent the visual impact. • Commented that they looked at the direct and indirect impact on the creek. Additional people on the site would not affect the creek; they would not all be on the trail. Disruption to wild life would be the same. Commissioner Thomas O'Donnell • Commented that this is a difficult decision. If the Town wants Class A office buildings, he believes what was presented tonight is the best location for Class A buildings. • Commented that he believes that there should be some Class A buildings in Los Gatos. If the Town decides that it does not want that, there will be substantial long term repercussions on the Town and it should be decided by the elected officials. • Commented that he believes that the EIR is more than adequate and that he supports the project. Commissioner John Bourgeois • Commented that he agrees with Commissioner O'Donnell's comments but he comes to the opposite conclusion. He does not believe that it is good planning to plan out of fear of losing one tenant. PDs are to accommodate excellence in planning and optimize open space. It is not a mechanism to circumvent the underlying zoning. This is a significant deviation to our existing zoning. • Commented that he is not sure that the Town wants to attract Class A office space at the cost of the GP fundamentals and the zoning codes. Planning Commission Minutes Page 18 April 24, 2013 • Commented that he thinks there is a solution here to redevelop the site to more wholly meet the zoning. He leans towards denial. Commissioner Thomas O'Donnell • Commented that he is not supporting Netflix in particular, but he is supporting Class A office space. The existing Netflix building is close in height to this development. Commissioner Marico Sayoc • Commented that the majority of the buildings at 100 Winchester Boulevard top off at 43 feet; what is being proposed tops off at 63 feet. That is a 20-foot difference. This is a good location for Class A office space, but we need to be careful to look at Town codes and policies on what is wanted by the general population. • Commented that the GP states 35 feet for building height. Blocking the vistas to the mountains is a significant impact. • Commented that she is having a hard time making the findings. Commissioner Kendra Burch • Commented that she agrees with Commissioners Bourgeois and Sayoc. Guidelines have been developed for a reason and the Commission is tied to those guidelines. The Town would benefit from Class A office space but there is a compromise here. • Commented that she knows there are companies that are renovating and renting out two-story buildings and they are flourishing. • Commented that she would look for compromise and change. Commissioner Joanne Talesfore • Commented that she would support the redevelopment of this area but within the height limits in the GP. A PD is for a specific site design to mitigate traffic and that does not happen with Lark Avenue. Compromise is needed, but the neighbors cannot be ignored. • Commented that underground parking is a viable alternative and she is sorry that it was dismissed. • Commented that the freeway sign is disturbing to her. Chair Charles Erekson • Commented that the guidance provided by the Town Council is to contemplate overlay zones is some circumstances. He believes that the quality of design and excellence in planning has been accomplished for Class A office space and he believes the Commission has received direction that would allow it to move in that direction. Commissioner Margaret Smith • Commented that this process is a balancing act of the present and the near and further future. She does not quantify this as the Netflix project, but as the need for Class A office space. This is the best location for the project. She is not disturbed by the height of the buildings. The landscaping will hide the bulk and mass. • Commented that she would recommend that it move forward to the Town Council. Planning Commission Minutes Page 19 April 24, 2013 Commissioner John Bourgeois • Commented that everyone is in support of Netflix and he is in support of developing this space into Class A office space, but he has issues with the current design. Motion by Commissioner John Bourgeois and seconded by Commissioner Marico Sayoc to forward a recommendation of denial to Town Council of Planned Development Application PD- 12-001 and Architecture and Site Application S-12-078 due to the height being too much of an exception over the existing zoning and it is not within the spirit of the Planned Development, the height, mass and scale are not consistent with the Town character, it is not compatible with the neighborhood, and the intensity of the use creates an increase in traffic. Commissioner Joanne Talesfore • Commented that she will support the motion and would encourage the Town Council to look at the reduced alternative. The maker and seconder of the motion agreed to add Commissioner Talesfore's comment to the motion. Motion carried 4-3 with Chair Charles Erekson, Vice Chair Margaret Smith and Commissioner Thomas O'Donnell dissenting. NEW OTHER BUSINESS 2. Consider Five Year Capital Improvement Program for Fiscal Years July 1, 2013 to June 30, 2018 - Parks and Public Works. (Heard Out of Order) Chair Charles Erekson opened the public hearing. Assistant Parks and Public Works Director Kevin Rohani gave an overview of the Five Year Capital Improvement Program for Fiscal Years July 1, 2013 to June 30, 2018. Commissioner John Bourgeois • Asked if the Quito Road bridge replacement is in 2016. • Asked why the cost share for the Quito Road bridge has increased. Assistant Parks and Public Works Director Kevin Rohani • Commented that there are two bridges on Quito Road that are primarily in Saratoga with portions in Los Gatos. Saratoga has the lead on this project and is working with the Town of Los Gatos and the Santa Clara Valley Water District (SCVWD). There have been some right of way complications that have delayed the project, but Saratoga has hired a new structural consultant to do the environmental clearance. The goal is to start construction in 2015. • Commented that the cost share for the Quito Road bridge has stayed the same. Saratoga has asked for funding from Caltrans who pays 88 percent and the remaining 12 percent is shared between Los Gatos, Saratoga and the SCVWD. No adjustments are expected until the next fiscal year. Planning Commission Minutes Page 20 April 24, 2013 Commissioner Marico Sayoc • Asked about street improvements on the Winchester Boulevard and Knowles Drive intersection and Los Gatos Boulevard and Lark Avenue. • Asked if road improvements occur on an as needed basis. Assistant Parks and Public Works Director Kevin Rohani • Commented that the Winchester Boulevard/Knowles Drive project is now out to bid with construction to start this summer. It is paid for by traffic mitigation. The type of mitigation needed for the Lark Avenue/Los Gatos Boulevard intersection is dependent upon the outcome of the North 40 process. • Commented that the traffic mitigation funds are used to address various traffic improvements. All of the projects look at the specific projects as well as all of the streets/intersections in the area. Commissioner Joanne Talesfore • Asked if Broadway will be included in the program. Assistant Parks and Public Works Director Kevin Rohani • Commented that half of the asphalt streets in the Almond Grove area were finished last year and there is a bid out to complete the remaining asphalt streets. The 11 remaining concrete streets, including Broadway, will be discussed and prioritized with the neighbors. Chair Charles Erekson closed the public input portion of the hearing and returned to the Commission for deliberations. Motion by Commissioner John Bourgeois and seconded by Vice Chair Margaret Smith to recommend approval of the Capital Improvement Program Projects for Fiscal Years July 1, 2013 to June 30, 2018, and to forward to Town Council for final consideration. The Program is consistent with the General Plan and Hillside Specific Plan. Motion carried 7-0. Chair Charles Erekson called for a short recess at 7:22 p.m. and reconvened the meeting at 7:40 p.m. 3. Report from Director of Community Development a. Principal Planner Joel Paulson reported that the Development Review Committee met on April 23 and approved Architecture and Site applications for 15640 Shannon Heights Road and 238 Vista Del Monte. 4. Commission Matters - None ADJOURNMENT Meeting was adjourned at 12:00 a.m. Planning Commission Minutes Page 21 April 24, 2013 TOWN OF LOS GATOS PLANNING COMMISSION Wednesday, April 24, 2013 ___________________________________________ Charles Erekson, Chair APPROVED AS TO FORM AND ATTEST: _____________________________ Joel Paulson Principal Planner