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2011081511 - Minutes of the Town Council Meeting August 1, 2011DRAFT Council/Agency Meeting 8115/11 Item # 11 MINUTES OF THE TOWN COUNCIL/PARKING AUTHORITY/REDEVELOPMENT AGENCY MEETING AUGUST 1, 2011 The Town Council of the Town of Los Gatos conducted a Regular Meeting on Monday, August 1, 2011 at 7:00 P.M. TOWN COUNCIL/PARKING AUTHORITY/REDEVELOPMENT AGENCY SPECIAL MEETING CALLED TO ORDER TO CONDUCT COMMISSION/COMMITEE INTERVIEWS - 5:45 PM BOARD/COMMISSION/COMMITTEE INTERVIEWS General Plan Committee (1 vacancy, 3 applicants) Planning Commission (1 vacancy, 9 applicants) REGULAR MEETING CALLED TO ORDER - 7:00 P.M. ROLL CALL Present: Mayor Joe Pirzynski, Vice Mayor Steve Rice, Council Member Steven Leonardis, Council Member Diane McNutt, and Council Member Barbara Spector. Absent: None. PLEDGE OF ALLEGIANCE Christina Noskowski from Fisher Middle School led the Pledge of Allegiance. The audience was invited to participate. BOARD/COMMISSION/COMMITTEE APPOINTMENT Matthew Nudes was appointed to the General Plan Committee by a 5/0 vote. Margaret Smith was appointed to the Planning Commission by a 4/1 vote. CLOSED SESSION REPORT There was no Closed Session for this meeting. Page 1 COUNCIL/TOWN MANAGER REPORTS Council Matters There were no Council Matters for this meeting. Manager Matters Greg Larson, Town Manager - Introduced Melissa Maglio, Assistant Librarian, as the Town's Rotating Talent. - Commented that the Los Gatos Chamber of Commerce is hosting the Girls Night Out event on August 18, 2011. - Commented that Leadership Los Gatos is currently accepting applications. - Commented that Fiesta de Artes will take place on August 13-14, 2011. - Commented that Library is concluding its Summer Reading Program. Did You Know?? - Alana Forrest, Los Gatos -Monte Sereno Police Department Captain - Described the Victim Services Unit (VSU), which is comprised of 15 community volunteers who contact and support victims of crime that occur in Los Gatos and Monte Sereno. - Commented that more information is available at www.Igmspd.org. CONSENT ITEMS (TO BE ACTED UPON BY A SINGLE MOTION) 1. Adopt resolution setting date for consideration of reorganization of an uninhabited area designated as Englewood Avenue No.6, approximately .48 acres located at 16583 Englewood Avenue (APN: 532-07-098); File #AN11-001. RESOLUTION 2011-053. TOWN COUNCIL/REDEVELOPMENT AGENCY 2. Approve Council/Agency minutes of July 25, 2011 Special Meeting. MOTION: Motion by Council Member Diane McNutt to approve Consent Items #1 and #2. Seconded by Vice Mayor Steve Rice VOTE: Motion passed unanimously. VERBAL COMMUNICATIONS (Up to three minutes may be allotted to each speaker to address matters that are not on tonight's agenda.) Mr. Novillo - Commented that rules in his neighborhood were not followed as neighbors are cutting trees. Page 2 Verbal Communications — continued Ms. Kankel - Commented that she attended a community meeting with ROEM regarding the Dittos Lane project and requested a meeting with staff. Mr. Steigman - Commented that Americans for Safe Access supports repeal of an ordinance that bans medical marijuana dispensaries in Los Gatos. TOWN COUNCIL PUBLIC HEARINGS 3. Abatement of Hazardous Vegetation (Weeds) a. Conduct public hearing to consider the report of the County Agricultural Commissioner's Office on the abatement of hazardous vegetation (weeds). b. Approve said commencement report. Staff report made by Mr. Larson. Open/Closed Public Hearing MOTION: Motion by Vice Mayor Steve Rice to conduct public hearing to consider the report of the County Agricultural Commissioner's Office on the abatement of hazardous vegetation (weeds) and to approve said commencement report Seconded by Council Member Barbara Spector VOTE: Motion passed unanimously. 4. Abatement of Hazardous Vegetation (Brush) a. Conduct public hearing to consider objections to hazardous vegetation abatement (brush). b. Overrule objections and order hazardous vegetation abatement (brush). Open/Closed Public Hearing Page 3 Public Hearing Item #4 — Continued MOTION: Motion by Vice Mayor Steve Rice to conduct public hearing to consider objections to hazardous vegetation abatement (brush) and to overrule objections and order hazardous vegetation abatement (brush). Seconded by Council Member Barbara Spector VOTE: Motion passed unanimously. 5. Planned Development Application PD-10-005, Mitigated Negative Declaration ND- 11-004. Property Location: 90-160 Albright Way and 14600 Winchester Boulevard. Property Owner: LG Business Park, LLC Applicant: John R. Shenk (Continued from 6/20/11) a. Consider a request for approval to modify the existing Planned Development to allow the potential for a mix of land uses. The project may consist of office alone or a mix of office and multi-family/senior residential uses, subject to defined triggers. The project could include up to a maximum of 550,000 square feet of office space or a combination of less office space with residential uses. Residential uses could include multi -family and/or senior units up to a maximum of 168 units on Property zoned CM:PD. APN?s 424-31-053, 054, 063, 424-32-038, 045, 049, 054, 059, 060, and 063. b. Consider a request for approval of a development agreement. c. Consider adoption of the resolution certifying the environmental document and mitigation monitoring and reporting program. Staff report made by Wendie Rooney, Director of Community Development and Mr. Larson. Joel Paulson, Senior Planner, was available to answer questions. Council Comments - Questioned the change on the timing of the trigger date for senior housing. - Questioned the length of the setback for each of the two proposed buildings. - Questioned the source of the increased property tax benefits. - Questioned what proportion of property tax revenue accrues because of the sale of the property. - Questioned how much of the 21.5 acres would be covered at full build -out. Questioned the scope of Phase 1, in terms of land coverage. Page 4 Public Hearing Item #5 — Continued Mr. Larson - Clarified that staff is recommending January 1, 2016 as a trigger date for residential development because Council requested a date specific. Clarified that the amount of property tax revenue would be dependent on the final sale price of the land. - Clarified that a small portion of the property tax revenue accrues from the land sale, but the majority accrues from the construction of the buildings. - Clarified that Phase 1 would be roughly half of the build -out of the site, if Council approves the project. Ms. Rooney - Clarified that the setback was approximately 80 feet for Building B and about 90 for Building E, when measured from the property line. - Clarified that Phase 1 comprises just under 10 acres. Open Public Hearing John Shenk, Applicant Commented that multi -family housing has been eliminated, resulting in a financial benefit to schools through community benefits, without an increase in the number of students. Commented that the proposed height of the senior residential building has been lowered from 70 feet to 50 feet. - Commented that the proposed height allows for the creation of green spaces. - Commented that the setbacks from the back curb of Winchester Boulevard will be 133 feet for Building D; 144 feet from building E; and 275 feet to the nearest home. - Commented that the length of the Development Agreement is critical and that it could be shortened to 10 years, with a 10-year extension. - Commented that the zoning is consistent with Town's General Plan. Commented that Condition 10 sets forth the maximum heights of the buildings. Mr. Wells - Commented that Netflix wants to remain in Los Gatos. - Commented that Netflix supports the proposed heights of the buildings. - Commented that Netflix will continue to mitigate traffic impacts. Page 5 Public Hearing Item #5 — Continued Council Comments Questioned whether the applicant is amendable to a 60 month trigger date for residential development or whether a date certain of January 1, 2016 is preferred. - Questioned whether Phase 1 included moving an entrance and installing a signal on Winchester Boulevard. - Questioned whether financing is dependent on passage of the Development Agreement. Mr. Shenk - Clarified that the applicant is amenable to either a 60 month trigger for residential development or a January 1, 2016 date certain trigger. - Clarified that the installation ofa signal and the addition of an entrance is still being analyzed and may not occur during Phase 1. - Clarified that securing financing for Phase 1 is dependent on the execution of the Development Agreement. Public Comments Mr. Mosher - Expressed concern about the proposed re -zoning of the property and traffic. Mr. Johnson - Expressed concern about the proposed project. Ms. Abbatti - Expressed support for the proposed project as the new Superintendent of the Los Gatos Union School District. Mr. Allen - Expressed support for the proposed project if the land is used only for office space. - Expressed concern about the proposed height of the project. Mr. Van Nada - Commented that the Los Gatos Community Alliance supports the project, if the land is only used for office space. Page 6 Public Hearing Item #5 — Continued Ms. Kankel - Expressed concern about the length of the Development Agreement. Mr. Aiello - Expressed concern about the proposed height of the project and potential traffic congestion. Mr. Miller - Commented that Planning Commission provided a compromise to limit the height of the proposed project. Ms. Hourani - Expressed concern about the proposed re -zoning of the property. Mr. Larko - Expressed support for the proposed project. Ms. Ballard - Commented that the Silicon Valley Leadership Group supports the proposed project. Mr. Shepardson - Expressed concern about the proposed re -zoning of the property and about the length of the Development Agreement. Mr. Ventura - Expressed concern about the timeline for this project. Mr. Wu - Expressed concern about the traffic impacts created by the proposed project. Ms. Sullivan - Expressed concern about the proposed re -zoning of the property. Mr. Anderson - Expressed concern about the proposed re -zoning of the property and the height of the proposed project. Mr. Wong - Expressed concern about the traffic congestion created by the proposed project. Page 7 Public Hearing Item #5 — Continued Ms. Paulides - Expressed support for the proposed project as the Assistant Superintendent of the Los Gatos Union School District, if the residential component only included senior housing. Council Comments - Questioned whether senior housing would add to the student count. - Questioned whether senior housing that restricts children is legal. Judith Propp, Town Attorney - Commented that other projects in the community have restrictions on age in senior housing facilities. Mr. Larson - Commented that the student generation rates from senior housing would likely be negligible. Mr. Shepherd - Expressed support for the proposed project. Mr. Arzie - Expressed concern about the height of the proposed project. Mr. Nedom - Expressed concern about the proposed re -zoning of the land. Mr. Updyke - Expressed support for the proposed project. Ms. Decker - Expressed concern about the proposed re -zoning of the land. Ms. Quintana - Expressed concern about the re -zoning of the property and the height of the proposed project. Mr. Erbst - Expressed concerns about the proposed project. Page 8 Public Hearing Item #5 — Continued Mayor Joe Pirzynski requested a recess at 9:15 p.m. The meeting commenced at 9:22 p.m. Mr. Wells - Commented that the project has spanned at least 14 months. - Commented that a three-story building would reduce green space. Mr. Shenk - Commented that the creation of senior housing is compatible with the Town's General Plan. - Commented that Town staff and outside consultants conducted numerous traffic studies. - Commented that Netflix desires the proposed project to be approved. - Commented that the term of the Development Agreement is standard and that it vests only the zoning element. - Commented that the Town has been represented by the Town Attorney, who has experience with development agreements. Council Comments - Questioned whether Netflix has signed a lease to occupy the proposed buildings. Questioned whether the five -story building is a deal breaker. - Questioned whether the applicant has been requested by staff to install visual impact indicators, such as story poles or balloons. - Questioned whether a maximum height of 55 feet would accommodate a four- story building. - Questioned the outcome of a meeting between the project architect and Larry Cannon, the Town's Consulting Architect. - Questioned whether Mr. Cannon supported the proposed height of the project. - Questioned whether Phase 2 will eradicate open space. - Questioned the size of the open space in the middle of the project site. - Questioned why the applicant cannot proceed without the residential component of the project. Mr. Wells - Clarified that Netflix has not signed a lease to occupy the proposed buildings, but they are close to doing so. - Clarified that the five -story height is an important element of the project. Mr. Shenk - Clarified that visual impact indicators are not helpful or practical for this project. - Clarified that 55 foot tall building would not allow for a four-story building. - Clarified that the residential component allows for diversity of uses, if 550,000 square feet of commercial space is not needed. Page 9 Public Hearing Item #5 — Continued Bob Gianinni, Architect - Clarified that the present design of the buildings incorporated Mr. Cannon's suggestions. - Clarified that reducing the height of the buildings would reduce the green space. - Clarified that the many of the mature trees are being incorporated into the site plan. - Clarified that the construction of buildings in Phase 2 will not eradicate open space. - Clarified that the open space in the middle of the site is about 5 acres. Kevin Rohani, Town Engineer - Clarified that the proposed project has been studied extensively to adhere to the Town's guidelines and goals. - Clarified that the cumulative impacts of traffic are studied in relation to other proposed projects. - Clarified that Phase 1 would likely require a new entrance and installation of a signal on Winchester Boulevard. Council Comments Questioned how 550,000 square feet of office space and increased residential development would cumulatively increase traffic. - Commented that the screening of the trees and the downward slope of the land allows for the accommodation of a four or five -story building. - Commented that issues of height are about preserving the views of the hillsides and appropriate architecture. Mr. Larson Clarified that the combination of office and residential uses shall not result in new or substantially more severe environmental impacts than disclosed in the mitigated negative declaration. - Clarified that the Town's policy requiring visual impact indicators includes an exception, which was granted for this project. - Clarified that staff did not rescind its previously granted exception; however, staff informed the applicant that at least two Council members requested installation of visual indicators. Closed Public Hearing Mayor Joe Pirzynski directed Mazarin Vakharia, Clerk Administrator, to read the title of the proposed ordinance. Page 10 Public Hearing Item #5 — Continued MOTION : Motion by Council Member Diane McNutt to adopt the Mitigation Monitoring and Reporting Program (MMRP) (Attachment 18) and adopt the resolution certifying the environmental document (Attachment 34). Seconded by Vice Mayor Steve Rice VOTE: Council Member Diane McNutt withdrew the motion. Council Comments - Clarified that this motion is not associated with an approved project. Ms. Propp - Commented that the Council could move through the project and then adopt the MMRP, if a project is approved. Council Comments - Requested clarification of the site coverage at its maximum build -out. Ms. Rooney - Clarified that the maximum of both residential and office space would have to fit into 50% coverage, which is standard for Los Gatos. MOTION : Motion by Council Member Diane McNutt to adopt the MMRP and Resolution (Attachment 34); to approve staff recommendations and to make the findings in Attachment 40; to approve the Planned Development Ordinance (Attachment 29) and Development Agreement Ordinance (Attachment 14), including terms and conditions in the Desk Item (Attachment 41), but to eliminate the Conditional Use Permit requirement (page one of Attachment 41, 5th bullet); to adopt a 60-month trigger date for senior housing; to adopt the term of the Development Agreement as 10 years plus a 10 year extension; and in Mitigation Measure 26, to adopt both sections (a) and (b) and to incorporate the Architecture & Site recommendations on page 2, Section C of the Desk Item. Seconded by Vice Mayor Steve Rice. RESOLUTION 11-054 VOTE: Motion carried by a vote of 3/2. Council Member Steven Leonardis and Council Member Barbara Spector voted no. Page 11 Public Hearing Item #5 — Continued MOTION: Motion by Council Member Diane McNutt to accept the additional phased community benefit of $900,000 from Netflix and direct staff to negotiate and execute the agreement. Seconded by Vice Mayor Steve Rice. VOTE: Motion carried by a vote of 3/2. Council Member Steven Leonardis and Council Member Barbara Spector voted no. MOTION: Motion by Council Member Diane McNutt to adopt the Mitigation Monitoring and Reporting Program (Attachment 18) and adopt the resolution adopting the mitigated negative declaration (including errata sheet) and mitigation monitoring and reporting program and certifying the environmental document (attachment 34). Seconded by Vice Mayor Steve Rice. VOTE: Motion carried by a vote of 3/2. Council Member Steven Leonardis and Council Member Barbara Spector voted no. Council Comments - Commented that the proposed project is compatible with the General Plan. - Commented that the Planning Commission could have, but chose not to, approve a higher than 55-foot building under the planned development ordinance. - Commented that the public participated heavily in the process and commended the public for its participation. - Commented that story poles may have helped to override concerns about height. - Commented that the Development Agreement is very narrowly defined. - Commented that senior housing is misplaced on the proposed project site. Commented that senior housing would be backed up against other residential. - Questioned how 550,000 square feet of office space and increased residential development would cumulatively increase traffic. - Commented that the screening of the trees, the proposed setbacks, and the downward slope of the land allows for the accommodation of a four or five -story building. - Commented that the development would create a business campus that would be a unique asset to Los Gatos. Page 12 Public Hearing Item #5 — Continued Mr. Larson - Commented that the Planning Commission will review the Architecture and Site application on August 24, 2011. - Commented that the Town Council will consider final approval of the Architecture and Site application on September 6, 2011. OTHER BUSINESS There is no Other Business scheduled for this meeting. ADJOURNMENT Attest: Mazarin A. Vakharia Clerk Administrator Page 13 THIS PAGE INTENTIONALLY LEFT BLANK