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2010051710 - Town Council-Redevelopment Agency Metting Minutes of May 3, 2010DRAFT Council/Agency Meeting 05/17/10 Item # '~ MINUTES OF THE TOWN COUNCIL/PARKING AUTHORITY/REDEVELOPMENT AGENCY MAY 3, 2010 The Town Council of the Town of Los Gatos conducted a Regular Meeting on Monday, May 3, 2010 at 7:00 P.M. TOWN COUNCIL/PARKING AUTHORITY/REDEVELOPMENT AGENCY MEETING CALLED TO ORDER ROLL CALL Present: Mayor Diane McNutt, Vice Mayor Joe Pirzynski, Council Member Steve Rice, Council Member Barbara Spector, Council Member Mike Wasserman Absent: None. PLEDGE OF ALLEGIANCE • Kaitlyn Cook, Blossom Hill Elementary and Kirsten Cook, Fisher Middle School led the Pledge of Allegiance. The audience was invited to participate. PRESENTATION Proclamation -Foster Care Month • Mayor Diane McNutt proclaimed May 2010 as Foster Care month. • Ms. Rapp accepted the proclamation on behalf of the foster families in Town and thanked the community for their support. CLOSED SESSION REPORT • Mr. Martello stated that there was no Closed Session to report for this meeting. 1 TOWN COUNCIL COUNCIL/TOWN MANAGER REPORTS Council Matters Council Member Barbara Spector • Reported that she had the opportunity to attend the Santa Clara University Law Alumni Recognition event honoring alumni who have achieved and contributed to the community. Two of the honorees were Los Gatans: Courl Federal Judge, Ronald White and Attorney, Gordon Yamate. • Commented that she wanted to acknowledge them because they exemplify the people in Los Gatos who contribute to the Town and community. Vice Mayor Joe Pirzynski • Commented that on Friday, April 30, 2010 the Town celebrated Arbor Day by planting trees at Bel Gatos Park, with another planting ceremony at Fisher Middle School. • Acknowledged that the Town has been awarded the Tree City USA award for the 30th year in a row. Mayor Diane McNutt • Commented that the deadline to submit applications for the Senior of Distinction Award is coming up. Manager Matters Mr. Larson • Commented on the success of the Town's Volunteer Recognition event. • Commented that the Town has once again won the Cities Association Bocce Ball tournament. • Commented that the Town and the Chamber of Commerce kicked off a new program which began with Fashion Week and ended with a Wine Walk. The event was a tremendous success for both the Town and the Chamber of Commerce. • Commented that the Los Gatos Parents Co-operative Pre-school held their annual Fantasy Faire for the first time on the Civic Center main lawn and the event was attended by many. • Expressed appreciation of support from the Los Gatos Library, Los Gatos- Monte Sereno Police Department, and Parks and Public Works in helping to make the event a success. • Commented that the new lights on the expanded parking lot 6 are up and operating. • Requested applicants for the Town's Boards and Commissions including the Town's Youth Commission. Deadline to apply to the Youth Commission is May 14, 2010 and the deadline to apply to the Town's .other Boards and Commissions will be June 11, 2010. Manager Matters -Continued Mayor Diane McNutt • Commented on the successful Dining for Life event which took place in Town last Thursday night to support Aids services. Did You Know...? Nancy Dawn, Administrative Services Manager • Made a presentation on the Police Department's On-line Reporting program which can be used to report crimes where an officer would not need to come out to take a report, to report lost and found items, to report abandoned vehicles, to report graffiti, and for vacation house checks. • Commented that more information can be found at www.losgatosca.gov. CONSENT ITEMS (TO BE ACTED UPON BY A SINGLE MOTION) 1. Approve CouncillCommission Retreat Minutes of April 19, 2010. 2. Adopt ordinance of the Town of Los Gatos amending Article IX of Chapter 15 of the Town Code relating to the mitigation of road impacts caused by construction projects. ORDINANCE 2189 3. Accept informational report on proposed refuse collection rate changes. TOWN COUNCIL/REDEVELOPMENT AGENCY 4. Approve Council/Agency minutes of April 19, 2010. MOTION: Motion by Council Member Steve Rice to approve Consent Items #1-4. Seconded by Vice Mayor Joe Pirzynski. Council Member Mike Wasserman recused from Consent Items #1, #2, and #4 due to the fact that he was absent from the Town Council meeting of April 19, 2010. VOTE: Consent Item #3 motion passed unanimously. Consent Items #1, #2, and #4 motion passed 4/0. 3 VERBAL COMMUNICATIONS Safe Routes to School Committee • Commented that the Committee has made a difference in the community by working to make the streets safer for pedestrians and bicyclists and recognized Council, staff and the community for their help and support for the project. Closed Verbal Communications TOWN COUNCIL/REDEVELOPMENT AGENCY PUBLIC HEARINGS 5. Library Project a. Hold a public hearing pursuant to Health and Safety Code Section 33679 and adopt resolution adopting findings required by California Health and Safety Code Section 33445 authorizing allocation of Redevelopment Agency funds to the new library building. RESOLUTION 2010-044 b. Adopt resolution of the Los Gatos Town Council authorizing the execution, sale and delivery of not to exceed $16,500,000 Certificates of Participation, authorizing and directing execution of related lease financing documents and trust agreement, approving official statement, and authorizing official actions. RESOLUTION 2010-045 c. Adopt resolution of the Los Gatos Redevelopment Agency authorizing the execution and delivery of not to exceed $16,500,000 Certificates of Participation, authorizing and directing execution of related lease financing documents, approving official statement, and authorizing official actions. RESOLUTION 2010-046 Staff report made by Steve Conway, Finance Director and Emily Wagner, E. Wagner and Associates. Council Comments Questioned if there were pros and cons in considering in which document the future tax increment wording should be located. Questioned if the risk is greater with this recommendation verses the alternative. 4 Public Hearing Item #5 -Continued Mr. Conway • Clarified that the escrow for future tax increments is currently written into the re-imbursement agreement which was the recommendation from the Finance Committee. • Clarified that the wording in the recommended re-imbursement agreement is extra protection that is probably not found in a typical Certificate of Participation, but the Town imposed that extra protection to ensure that money is set aside to pay the debt service obligation over the next 20 years. Mr. Larson Clarified that during the Finance Committee meeting it was discussed that there should not be a determination simply under budget adoption to spend early received tax increment money for a new project, rather that it be saved for the lease re-payment. Commented that the requirement to change the document once approved, is an extraordinary act by the Council either through an ordinance amendment or lease amendment which would require a separately noticed public meeting. Open Public Hearing Mr. Glickman • Commented that the Town is not being fiscally responsible when borrowing monies from the Redevelopment Agency. • Expressed concerns that with property taxes dropping the Town might not be able to repay the debt. • Commented that the Town should not borrow money without tax payer approval. • Commented that a past survey showed that there would not be voter approval to support bonds. Closed Public Hearing Council Discussions Questioned if Council has the ability to raise taxes without taxpayer approval under any circumstances. Requested clarification on what basis the Finance Committee made their determination that the 2% property tax increase would occur and therefore .pay for the indebtedness. Public Hearing Item #5 -Continued Mr. Larson • Clarified that any new tax or tax increase would require a vote of the public and no action tonight authorizes any future tax increase. • Clarified that the financing mechanism the Town is using is no different from the financing mechanism used by the Town in 1992 and 2002 and is the most commonly used mechanism by municipalities across the State. Mr. Conway • Clarified that the property taxes for the Town's Redevelopment Agency area have increased in the last 20 years and staff has used the lowest property tax increase on which to base the increment figure. Commented that based on the Town's history and the strength of the downtown, the Town should meet the 2% needed to generate the revenue to make the debt service payment. Mr. Larson • Clarified that the basis for the full discussion on the extraordinary act is that the Town anticipates exceeding the 2% growth rate therefore placing some restrictions on future staff and even future Council regarding how to spend that higher than 2% return earlier than it should be spent. • Commented that the additional reality is that the Town has a $250 million dollar cap of which the Town is allocating all of that basically to pay-off the bonds for the new Library. Mr. Martello • Recommended that Council incorporate the full staff report as part of the motion since it has more extensive information than the resolution. MOTION: Motion by Vice Mayor Joe Pirzynski to approve a Los Gatos Town Council/Los Gatos Redevelopment Agency resolution making the necessary findings and determinations in accordance with Health and Safety Code Section 33445 for the financing of the new library which will be partially funded by the Los Gatos Redevelopment Agency and to incorporate the full staff report as part of the resolution. Seconded by Council Member Barbara Spector. VOTE: Motion passed unanimously. Public Hearing Item #5 -Continued MOTION: Motion by Vice Mayor Joe Pirzynski to approve a Los Gatos Town Council resolution authorizing the execution and delivery of not to exceed $16,500,000 Certificates of Participation, authorizing and directing execution of related lease financing documents, trust agreement, and certificate purchase agreement, approving official statement and authorizing official actions. Seconded by Council Member Barbara Spector. VOTE: Motion passed unanimously. MOTION: Motion by Vice Mayor Joe Pirzynski to approve a Los Gatos Redevelopment Agency resolution authorizing the execution and delivery of not to exceed $16,500,000 Certificates of Participaticn, authorizing and directing execution of related lease financing documents, trust agreement, and certificate purchase agreement, approving official statement and authorizing official actions. Seconded by Council Member Barbara Spector. VOTE: Motion passed unanimously. TOWN COUNCIL General Plan Amendment GP-07-001; Planned Development PD-07-142; and Negative Declaration ND-07-143. Project Location: Placer Oaks Road. Property OwnerlApplicant: Cupertino Development Corporation. RESOLUTION 2010-047 a. Consider rescission of Planned Development Ordinances 2081 and 2122 to construct 49 apartment units. APNS: 529-16-042, 026, 073, 529-14-012 and 067. Property Locations: 517 and 615 Blossom Hill Road and Placer Oaks Road. Property Owners: Greenleaf Associates LLC, Dunn Properties, LP, Cupertino Development Corporation. Applicant: Cupertino Development Corporation. b. Consider approval of a General Plan Amendment to change the land use designation from Medium Density Residential to Low Density Residential. c. Consider approval of a Planned Development to change the zone from RM:S-12:PD to R-1 :8: PD, to construct ten single family houses. APNS 529-16-073, 529-14-012 and 067. Public Hearings Item #6 -Continued Staff report made by Sandy Baily, Interim Assistant Director of Community Development. Clerk's Note for the Record • All five Town Council Member's disclosed visiting the site and meeting with the applicant. Council Comments • Commented that the Historic Preservation Committee had recommended that the Fiesta House was not suitable for the Placer Oaks site. • Questioned if Council could remove the option of locating the Fiesta House at the site from the Planned Development Ordinance. Ms. Baily • Clarified that staff could remove the option of locating the Fiesta House at the site from the Planned Development Ordinance if that was Council's preference. Council Comments Consensus by Council to remove the Fiesta House site from the Planned Development Ordinance and all discussions regarding a location for the Fiesta House at the Placer Oaks Development. Questioned if the BMP unit for the proposed project is a unit for purchase only and not to be used as a rental unit. Ms. Baily • Clarified that the BMP unit is an owner occupied unit only. Open Public Hearing Mr. Griffin, Applicant • Commented about the history of the site and why they are presenting a new design. Commented that the sound wall along Highway 17 has set-back allowances for landscaping to be installed and maintained by the property owner. Commented that planting ahead of time will allow the foliage and trees to mature and help to camouflage the wall as well as help to create a noise buffer. Public Hearing Item #6 -Continued Mr. Griffin, Applicant -Continued • Commented that the site plans and Architecture and Site application will be brought back to the Planning Commission for their approval. • Commented that they are proposing only 9 market rate homes and one BMP home instead of a 49 unit apartment complex. • Commented that the BMP home is integrated into the neighborhood on lot #3 and is not intended to be a rental • Commented that the developer is providing $15,000 towards a traffic calming project of the Town's choice. • Commented that the project is of proper scale, complies with the General Plan, and is compatible with the existing neighborhood. Council Comments • Questioned if the size of the BMP unit was increased to be more compatible with the other units in the neighborhood. Mr. Griffin • Clarified that as part of the Architecture and Site process the applicant will be submitting revised plans for the BMP unit that is more significant in size, mass, and scale. This will make the BMP unit more compatible with the other homes in the sub-division. Mr. Patel • Questioned if studies have been conducted to determine the levels of noise that could be created by the proposed sound walls for the development. • Expressed concerns about the type of retaining wall that would be constructed in order to build the road to the development. • Commented that it is unfortunate that the only access to the development is Placer Oaks Road. • Questioned if the sound wall would change the acoustic patterns at the site. • Expressed concerns that the sound will travel over the sound wall and be deflected towards his home. Council Comments Questioned if Mr. Patel was concerned about the noise from the wall along Highway 17 or concerned about noise within the development. Questioned if his concerns were that the noise would travel over the sound wall. Mr. Patel • Clarified that his concern was about the noise reverberating off the wall next to Highway 17 and deflecting towards his home. 9 Public Hearing Item #6 -Continued Ms. Greene • Expressed concerns about the lack of geophysical studies for the site. • Expressed concerns about the removal of trees that help to retain soil. • Expressed concerns about cracks in the street that follow the hillside and fears that the ground is moving toward the hillside. • Commented that CEQA guidelines need to be completed prior to approving a negative declaration; suggested withholding the approval until studies have been done. • Commented that she feels that the land is unstable because of liquefaction which may occur during an earthquake. Council Comments • Questioned if Ms. Greene recollects when the road was last re-paved. • Clarified that cracking does occur on pavements even on flat areas. • Clarified that the geotechnical report has a very standard response for earthquake zones such as this area. Ms. Greene • Commented that she thought that it has been at least 15 years since the road was last repaved. Council Comments • Questioned if the recommendations from the geotechnical study are being applied to the proposed project. Ms. Baily • Clarified that the recommendations are being applied and are incorporated under the performance standards of the proposed Planned Development Ordinance. Mr. Larson • Clarified that these recommendations could be found on Page 14, Item #7 of the Initial Study and Condition #102 of the Planned Development Ordinance. Mr. Greene • Expressed concerns that the proposed project will be built on sand and it is an unsafe area for a development. • Suggested that Council should have more information about the area before moving forward with an approval. • Expressed concerns about the acoustics for the area and that his studies show that the levels of noise would be devastating to public health. 10 Public Hearing Item #6 -Continued Council Comments • Requested clarification on the basis of the studies that Mr. Greene conducted on acoustics for the area. • Questioned if his analysis took into consideration the future landscaping and sound walls for the proposed project. Mr. Greene • Commented that he felt that the sound at those levels would be dangerous even with any landscape or sound wall. • Commented that he would like to see more studies done before any decisions are made to approve the project. Mr. Rong • Expressed concerns about the noise levels being deflected from the proposed sound walls towards his home. • Expressed concerns about the removal of trees that act as a sound barrier. Ms. Quintana • Commented on slope stability and stated that a slope analysis study should be required for the development. • Suggested that a liquefaction study should be done prior to approval. • Expressed concerns about the increased noise levels coming off the sound walls. Mr. Griffin, Applicant • Commented that noise is a line of sight issue and Mr. Patel's property is at least 60 feet above the Highway. As long as you can see the tires on the vehicles you would get the noise. • Commented that landscaping is ineffective with regard to noise continuation and suggested 71bs. per square feet of wall surface to diminish noise levels. • Commented that the proposed wall is greater than 71bs. per square foot and it will diminish the noise immediately on the site and will have no effect on the sites above. • Clarified that the environmental review pertaining to the liquefaction and geological study on the site was prepared by Geoforensics during a peer review in 2008. At the request of Geomax, which is the consultant for the Town, they did the peer review which recommended that the developers conduct more studies for liquefaction. • Commented that a report was written for liquefaction with the suggestion for ground grouting which is the insertion of concrete pillars at deep levels in the earth to hold back liquefaction potential at that point. 11 Public Hearing Item #6 -Continued Mr. Griffin, Applicant -Continued • Commented that when the final report was submitted to Geomax with recommendations, it was indicated that those pillars may not be required and that solution was satisfactory to the consultants.. • Commented that ten borings were done at the sight and two of those were done by the road. • Commented that the developers are cleaning up the dead trees and making the hillside safer. • Commented that high rating windows and treatment to the exterior of the building would be added to the homes. Council Comments • Requested clarification on the trees being removed along the north end of the property. Mr. Griffin • Clarified that at the Planning Commission's request to straighten the roadway; some of the trees would need to be removed along that northside. • Clarified that the large Oak tree would remain as requested by the neighbor. • Clarified that there are no trees being removed from the hillside area. Closed Public Hearing Mr. Martello • Commented that all the work/studies that have been done for the site meet the legal burden and then some and in addition all those requirements that were identified have been incorporated as mitigation measures within the project should the project move forward. • Commented that there are approximately a dozen or more Conditions requiring further soil reports, investigations, and in-field studies while work is being done. This information is required to come back to the Planning Commission for review. Clarified that in respect to the noise issues, the Planning Commission was concerned about the end users of the project. The applicant has been conditioned or volunteered to come back to Planning Commission with information on the mitigation of noise at the development. Council Discussions • Commented that the site is a challenging site and that they are pleased with the Planning Commission's recommendations and the developer's cooperation for the proposed project. Mayor Diane McNutt directed Jackie Rose, Clerk Administrator to waive the reading of the title of the ordinance. 12 Public Hearing Item #6 -Continued MOTION: Motion by Vice Mayor Joe Pirzynski to: 1. Accept the Planning Commission's findings and recommendations in the form of meeting minutes (Attachment 2). 2. Adopt the mitigated Negative Declaration (Exhibit 5 of Attachment 8) and the Mitigation Monitoring Plan (Exhibit 6 of Attachment 8). 3. Find that the General Plan Amendment is consistent with the General Plan (Attachment 11) and adopt a resolution to change the designation from Medium Density Residential to Low Density Residential at Placer Oaks Road (Attachment 12). 4. Adopt findings supporting the zone change (Attachment 11) and approve the application subject to the performance standards included in the Planned Development Ordinance (Attachment 13). to exclude the Fiesta House from the Planned Development Ordinance and the Placer Oaks site. 5. Introduce an ordinance of the Town of Los Gatos rescinding Ordinances 2081 and 2122 (Exhibits 3 and 4 of Attachment 8) and effecting a Zone Change from RM:5-12:PD to R:1:8:PD, at placer Oaks Road, to be read in title only, further reading waived (Attachment 13). Seconded by Council Member Mike Wasserman. Vote: Motion passed unanimously. Mr. Martello • Clarified for the record that the motion included staff recommendations #1-5 in the staff report on Pages 1 and 2 and secondly, that anyone wishing to challenge any of these actions will have as little at 30 days and as much as 90 days to file a challenge. OTHER BUSINESS • There was no Other Business Scheduled for this meeting. ADJOURNMENT Attest: Jackie D. Rose, Clerk Administrator 13