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HomeMy WebLinkAbout2008-02-19 City Council Agenda Packet 1 02/19/08 Agenda posted according to PAMC Section 2.04.070. A binder containing supporting materials is available in the Council Chambers on the Friday preceding the meeting. Special Meeting Council Chambers February 19, 2008 – 6:15 pm ROLL CALL CLOSED SESSION 1. CONFERENCE WITH REAL PROPERTY NEGOTIATOR Authority: Government Code Section 54956.8 Property: 4000 Middlefield Avenue, Assessors Parcel Number: 147-08-052 Negotiating Party: Andy Dunn, Vice Chancellor Business Services, Foothill De Anza Community College District” City Negotiator: Frank Benest, Donald Larkin, Steve Emslie, Lalo Perez,MarthaMiller Subject of Potential Negotiations: Price and Terms of Payment for Sale or Lease SPECIAL ORDERS OF THE DAY 2. RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO SHARON WINSLOW ERICKSON UPON HER DEPARTURE Resolution ORAL COMMUNICATIONS Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the right to limit the duration or Oral Communications. APPROVAL OF MINUTES December 10, 2007 December 17, 2007 02/19/08 2 CONSENT CALENDAR Items will be voted on in one motion unless removed from the calendar by two Council Members. 3. Adoption of a Resolution Scheduling the City Council Vacation and Winter Closure in Calendar Year 2008 REPORT 4. Utilities Advisory Commission Recommendation to Adopt a Resolution Approving the Utilities' Legislative Priorities for 2008 CMR:138:08 Attachments 5. Adoption of a Resolution Approving the Northern California Power Agency Third Phase Agreement for Western Geopower Incorporated Renewable Energy Power Purchase Agreement for the Acquisition of Up to Five Average Megawatts of Energy Over 20 Years at an Estimated Cost Not to Exceed $86 Million CMR:141:08 Attachments 6. Adoption of an Ordinance Approving and Adopting a Park Improvement Plan for Alexander Peers Park; Adoption of a Budget Amendment Ordinance Amending the Budget for the Fiscal Year 2007-08 to Provide an Additional Appropriation of $71,556 to Capital Improvement Program (CIP) Project PE- 08002, Peers Park Improvements and Approval of a Contract with Santa Clara Construction & Engineering, Inc., in the Amount of $444,326 for Construction of Alexander Peers Park Improvements – CIP Project PE-08002 CMR:142:08 Attachments AGENDA CHANGES, ADDITIONS, AND DELETIONS HEARINGS REQUIRED BY LAW: Applications and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and put up to three minutes for concluding remarks after other members of the public have spoken. OTHER AGENDA ITEMS: Public comments or testimony on agenda items other than Oral Communications shall be limited to a maximum of five minutes per speaker unless additional time is granted by the presiding officer. The presiding officer may reduce the allowed time to less than five minutes if necessary to accommodate a larger number of speakers. UNFINISHED BUSINESS PUBLIC HEARINGS 7. Adoption of an Ordinance Amending Section 18.08.040 of the Palo Alto Municipal Code (the Zoning Map) to Change the Classification of Property Known as 449-451 Addison Avenue from R-2 to Planned Community to Allow the Subdivision of the 02/19/08 3 9.995 Square Feet Parcel with Two Residences on the City’s Historic Inventory into Two Separate Parcels CMR:147:08 Attachments 8. Approval of a Tentative Map and Record of Land Use Action to Create Six Residential Condominium Units on a .57 Acre Lot at 433 West Meadow Drive (TO BE CONTINUED BY COUNCIL MOTION TO MARCH 24, 2008) 9. Finance Committee Recommendation to Consider Midyear Changes to the 2007-08 Municipal Fee Schedule, Including Adoption of New Fees, and Increasing Existing Fees, Rates or Assessments; Adoption of: (1) Budget Amendment Ordinance Amending the Budget for the Fiscal Year 2007-08 to Adjust Budgeted Revenues and Expenditures in Accordance with the Recommendations in the Midyear Report; (2) Resolution Amending the Compensation Plan for Management and Professional Personnel and Council Appointees Adopted by Resolution No. 8748 to Add Two New Classifications; and (3) Resolution Amending the Compensation Plan for the Service Employees International Union (SEIU) Adopted by Resolution No. 8658 to Add One New Classification CMR:151:08 Attachments REPORTS OF COMMITTEES AND COMMISSIONS ORDINANCES AND RESOLUTIONS REPORTS OF OFFICIALS COUNCIL MATTERS 10. Request for Authorization to Engage an Executive Recruiting Firm for City Auditor Search; and for Direction on Scope of Services/Timeline for Recruitment CMR:149:08 Attachments 11. Direction to Recruiter Regarding Process for City Manager Recruitment COUNCIL COMMENTS, ANNOUNCEMENTS, AND REPORTS FROM CONFERENCES Members of the public may not speak to the item(s). CLOSED SESSION This item may occur during the recess or after the Regular Meeting. Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per speaker. ADJOURNMENT 02/19/08 4 Persons with disabilities who require auxiliary aids or services in using City facilities, services, or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact 650-329-2550 (Voice) 24 hours in advance. CMR: 138:08 Page 1 of 2 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: UTILITIES DATE: FEBRUARY 19, 2008 CMR: 138:08 SUBJECT: UTILITIES ADVISORY COMMISSION RECOMMENDATION TO ADOPT A RESOLUTION APPROVING THE UTILITIES’ LEGISLATIVE PRIORITIES FOR 2008 RECOMMENDATION Staff and the Utilities Advisory Commission (UAC) recommend that the City Council adopt the attached resolution approving the Utilities’ Legislative Priorities for 2008. DISCUSSION The Utilities Department advocates energy and water-related issues within Federal and State legislative forums to facilitate the strategic mission of providing valued utility services to customers and dependable returns to the City, and key objectives, which include the goal to employ balanced environmental solutions. The legislative priorities, shown in Attachment B, provide direction to the Utilities Department in addressing recent legislative and regulatory trends. These proposed legislative priorities also correspond with the City Council’s inclusion of “Environmental Protection” as a 2008 Top 4 Priority, and the recommendations of the Green Ribbon Task Force on Climate Protection. As in past years, action on some of these energy and water-related issues may require active involvement of Palo Alto elected officials, and the legislative priorities are intended to elucidate approved policy and advocacy direction. BOARD/COMMISSION REVIEW AND RECOMMENDATIONS The Utilities Legislative Priorities for 2008 were presented to the UAC at the January 9, 2008 meeting. The UAC voted unanimously to recommend that the City Council approve the Utilities’ Legislative Priorities. Excerpted minutes from the UAC meeting are included as Attachment D. 4 CMR: 138:08 Page 2 of 2 RESOURCE IMPACT There is no incremental resource impact associated with advocating these legislative priorities. POLICY IMPLICATIONS This recommendation is consistent with the Council-approved Utilities Strategic Plan to: 1. Enhance customer satisfaction and utility infrastructure; 2. Employ balanced environmental solutions; 3. Provide fair and reasonable returns to the City and competitive rates to customers through municipal ownership; and 4. Ensure a safe and engaged workforce. The recommendation is also consistent with the Council’s 2008 Top 4 Priority of Environmental Protection. ENVIRONMENTAL REVIEW Approval of the Utilities Legislative Priorities for 2008 does not meet the definition of a project pursuant to Section 21065 of the California Environmental Quality Act (CEQA), thus, no environmental review is required. ATTACHMENTS A: Resolution Approving the Utilities Legislative Priorities for 2008 B: Utilities Legislative Priorities for 2008 C: UAC Report of January 9, 2008 with Attachment A D: Excerpts of the UAC Meeting Minutes of January 9, 2008 - Draft PREPARED BY: DEBRA LLOYD Senior Resource Planner DEPARTMENT APPROVAL: ________________________________ VALERIE O. FONG Director of Utilities CITY MANAGER APPROVAL: ________________________________ EMILY HARRISON Assistant City Manager CMR: 141:08 Page 1 of 4 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: UTILITIES DATE: FEBRUARY 19, 2008 CMR: 141:08 SUBJECT: ADOPTION OF A RESOLUTION APPROVING THE NORTHERN CALIFORNIA POWER AGENCY THIRD PHASE AGREEMENT FOR WESTERN GEOPOWER INCORPORATED RENEWABLE ENERGY POWER PURCHASE AGREEMENT FOR THE ACQUISITION OF UP TO FIVE AVERAGE MEGAWATTS OF ENERGY OVER TWENTY YEARS AT AN ESTIMATED COST NOT TO EXCEED $86 MILLION RECOMMENDATION Staff recommends that the City Council adopt a resolution approving the Northern California Power Agency (NCPA) Third Phase Agreement for Western Geopower Incorporated renewable energy power purchase. Additionally, for this agreement, staff recommends Council waive the investment-grade credit rating requirement under Section 2.30.340(d) of the Palo Alto Municipal Code. BACKGROUND In 2002, the Council adopted a renewable resource portfolio standard with the objective of meeting 20 percent of the City’s electrical load with renewable resources by 2015, while ensuring the retail rate impact does not exceed 0.5 cents per kilowatt-hour (¢/kWh) on average, or approximately 5 percent of the average retail rate premium (CMR:398:02). In March 2007, Council advanced and increased the renewable portfolio standard with a target to meet 20 percent of City loads with renewable resources by 2008 and 33 percent by 2015. The new target was to be achieved while maintaining the retail rate impact measure of 0.5¢/kWh (CMR:158:07). It should be noted that the City’s renewable portfolio standard measure excludes large hydro-electric resources that account for approximately 50 percent of the City’s electric supply in an average hydro year. 5 CMR: 141:08 Page 2 of 4 The City made considerable renewable resource commitments in 2004 and 2005 at prices of 5 to 6 ¢/kWh, and should reach the 20 percent renewable portfolio goal by 2008 with minimal impact on retail rates. The City is still seeking new amounts of renewable energy equal to approximately 13% of annual usage to meet the 33 percent renewable portfolio goal by 2015. The search is proceeding in 3 venues: through City requests for proposals, through NCPA’s Green Power Project, and through NCPA’s full membership participation opportunities. The current recommendation is one of NCPA’s full membership opportunities. DISCUSSION NCPA owns and operates two geothermal plants in the Geysers area of Sonoma County and Lake County, California and was recently approached by a British Columbia corporation, Western GeoPower Incorporated (WGI), which has rights to develop a geothermal project roughly sized between 15 to 35 megawatts (MW) in the Geysers area not far from NCPA’s other facilities. WGI would like to enter into a Power Purchase Agreement (PPA) with NCPA to sell all output from the plant to NCPA for a fixed price of $98/MWh for a term of 20 years. The plant, which qualifies as a renewable power project under state-adopted definitions, would be electrically connected to the California Independent System Operator-managed transmission system. The plant would be built on the site of a former Pacific Gas and Electric Company (PG&E) 62 MW plant that operated from 1979 to 1989 before being dismantled. As a power output purchaser rather than as an investor-owner, NCPA and its members would not be taking the risk that power production levels may decline, as happened with PG&E’s former 62 MW plant at this location. Under the terms of the PPA, NCPA members pay a fixed rate for any energy delivered. If delivered volumes decline, NCPA’s payments to WGI, and thus Palo Alto’s payments to NCPA, would be reduced proportionately, freeing up money to purchase replacement renewable energy from other sources. Eleven members of NCPA, including Palo Alto, expressed interest in purchasing shares that totaled more than 400% of the PPA. NCPA allocated participation shares to the interested members in proportion to those members’ loads with the result that Palo Alto’s share would be 11.28% of the output if all other interested members receive their governing board approvals for their shares. At that participation level and expected plant output, Palo Alto’s share would amount to about 2.8 average megawatts equaling roughly 2% of its load. If one or more other participants do not receive approvals for their full shares, there may be additional shares available for consideration. In light of the relative economic attractiveness of the WGI proposal compared to other renewable resource offerings, staff is seeking Council authority to participate in up to 5 average MW of the project even though preliminary estimates are that Palo Alto’s nominal share is likely to be about 2.8 MW (11.28% times 25 MW). More output may materialize for Palo Alto in two ways: it is possible some members may decrease their share giving Palo Alto a chance to increase its share, and it is possible the steam field may be more productive than estimated. Even if Palo Alto were able to get 5 average MW from the WGI project, the City would still need 8 more average MW to reach its renewable energy procurement goals for 2015. CMR: 141:08 Page 3 of 4 The Third Phase Agreement has been reviewed by staff and approved by the City Attorney’s Office (Attachment B). The Pro Forma Power Purchase Agreement between NCPA and WGP has also been reviewed (Attachment C). Western GeoPower is a relatively small company that does not have a credit rating by Moody’s or Standard and Poor’s. Since energy deliveries will be tied to a specific generator at a specific location, as opposed to market contracts whose deliveries are often backed by financial strength or collateral rather than a physical asset, staff recommends that Council waive the investment- grade credit requirement for public agency contracts required under Section 2.20.340 (d) of the Palo Alto Municipal Code. This conforms to Council action on prior renewable resource contracts (CMR: 461:04). This waiver is intended only for small companies that do not have credit ratings. The PPA was reviewed by NCPA staff, Palo Alto Utilities staff, and Palo Alto’s Energy Risk Manager to determine that the combination of value, price, terms, credit worthiness of provider, and any credit assurances warrant Palo Alto’s participation. RESOURCE IMPACT The cost of renewable supplies under the Agreement is expected to be $46 million over 20 years. This assumes that Palo Alto’s participation level and the plant output would provide 2.8 aMW (about 2% of Palo Alto’s load). If, however, Palo Alto is able to get an increased allocation of the project up to a maximum of 5.0 average MW, then the cost is estimated to be $86 million. In ether case, the incremental rate impact will remain within the 0.5¢/kWh limit adopted by Council. POLICY IMPLICATIONS Adoption of this resolution allows the City to participate in the NCPA Third Phase Agreement to purchase renewable energy and thereby is consistent with the Council Top Four Priority of Environmental Protection. Participating in the Agreement is also consistent with the following City policies and guidelines: 1. The Council-approved Climate Protection Plan adopted December 3, 2007 containing Utilities Goal 2: Reduce carbon intensity of energy supply provided by Utilities; 2. The Council-approved Utilities Strategic Plan with regard to employing balanced environmental solutions; 3. The energy risk management policies; 4. The rate impact limits and the renewable portfolio targets in LEAP Guideline #6; 5. The portfolio diversification goals in LEAP Guideline #3; and 6. The City’s Sustainability Policy Statement, adopted April 2, 2001 (CMR 175:01) and revised June 18, 2007 (CMR 260:07), the Green Government Pledge, adopted July 19, 1999 (CMR 284:99); 7. The US Mayors’ Climate Protection Agreement; 8. The Comprehensive Plan, specifically: a. GOAL N-9: A clean, efficient, competitively-priced energy supply that makes use of cost-effective renewable resources. b. POLICY N-44: Maintain Palo Alto’s long-term supply of electricity and natural gas while addressing environmental and economic concerns. c. POLICY N-48: Encourage the appropriate use of alternative energy technologies. CMR: 141:08 Page 4 of 4 ENVIRONMENTAL REVIEW Execution of the agreement does not meet the definition of a project, pursuant to section 21065 of the California Environmental Quality Act (CEQA). However, the City and other participating members intend to receive output from projects that will constitute a project for the purposes of CEQA. Project developers will be responsible for acquiring necessary environmental reviews and permits on projects to be developed. ATTACHMENTS A: Resolution approving NCPA Third Phase Agreement for Western GeoPower Power Purchase Agreement B: NCPA Third Phase Agreement for Western GeoPower Power Purchase Agreement C: Renewable Energy Power Purchase Agreement between Northern California Power Agency and Western GeoPower Incorporated D: NCPA Staff Report and Resolution 08-07 Approving both the 3rd Phase Agreement between NCPA and members for Western GeoPower Power Purchase Agreement and the NCPA/ Western GeoPower Power Purchase Agreement PREPARED BY: TOM KABAT Senior Resource Originator DEPARTMENT APPROVAL: ________________________________ VALERIE O. FONG Director of Utilities CITY MANAGER APPROVAL: ________________________________ EMILY HARRISON Assistant City Manager CMR:142:08 Page 1 of 4 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: FEBRUARY 19, 2008 CMR:142:08 SUBJECT: ADOPTION OF AN ORDINANCE APPROVING AND ADOPTING A PARK IMPROVEMENT PLAN FOR ALEXANDER PEERS PARK; ADOPTION OF A BUDGET AMENDMENT ORDINANCE AMENDING THE BUDGET FOR THE FISCAL YEAR 2007-08 TO PROVIDE AN ADDITIONAL APPROPRIATION OF $71,556 TO CAPITAL IMPROVEMENT PROGRAM (CIP) PROJECT PE-08002, PEERS PARK IMPROVEMENTS AND APPROVAL OF A CONTRACT WITH SANTA CLARA CONSTRUCTION & ENGINEERING, INC., IN THE AMOUNT OF $444,326 FOR CONSTRUCTION OF ALEXANDER PEERS PARK IMPROVEMENTS – CIP PROJECT PE-08002 RECOMMENDATION Staff recommends that Council: 1. Adopt the attached Park Improvement Ordinance (Attachment A) authorizing substantial landscape maintenance improvements at Alexander Peers Park (Peers Park). 2. Adopt the attached Budget Amendment Ordinance (BAO) in the amount of $71,556 (Attachment B) to provide an additional appropriation for the Peers Park Improvements, Capital Improvement Program (CIP) project PE-08002. 3. Approve and authorize the City Manager or his designee to execute the attached contract (Attachment C) with Santa Clara Construction & Engineering, Inc., in the amount of $444,326 for construction of the Peers Park Improvements; and 4. Authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with Santa Clara Construction & Engineering, Inc., for related, additional but unforeseen work that may develop during the project, the total value of which shall not exceed $22,250. CMR:142:08 Page 2 of 4 BACKGROUND Peers Park improvements were included in the Infrastructure Management Plan (IMP) approved by the City Council in 1998. Funding for improvements to Peers Park was included in the 2007- 08 Adopted Capital Budget. The existing play area equipment is past due its cycle for replacement, and the neighborhood input that was solicited during the design development phase was strongly in favor of the proposed improvements. Special attention was given by members of the public to the design of the play areas. DISCUSSION Peers Park improvements will consist of: removal and replacement in kind of most children’s play equipment, some pathways and the entire picnic area, including replacement of site furniture and paving surfaces; replacement of play area safety surfacing; and miscellaneous landscape improvements including new trees, shrubs and decorative boulders. The proposed project includes three add alternate bid items, including replacement of the basketball court fence, repairs to the tennis court fence and installation of an additional bench in the south end of the park. The Alexander Peers Park Improvement Plan (Attachment A, Exhibit A-1) summarizes the Park Improvement Ordinance. Bid Process A notice inviting formal bids for the Peers Park Improvements Project was posted at City Hall on December 11, 2007 and sent to 10 builder’s exchanges and 25 general contractors. The bidding period was 28 days, and bids were received from 14 qualified contractors on January 15, 2008 (see Attachment E for a summary of all bids received on the project). Base bids ranged from a low of $431,788 to a high of $596,520. Summary of Bid Process Bid Name/Number IFB # 125087 Peers Park Improvements Proposed Length of Project 90 days No. of Bids Mailed to Contractors 25 No. of Bids Mailed to Builder’s Exchanges 10 Total Days to Respond to Bid 28 Pre-Bid Meeting? Yes Number of Company Attendees at Pre-Bid 12 Number of Bids Received: 14 Bid Price Range with no add alternates From a low of $431,788 to a high of $596,520 *Detailed bid summary provided in Attachment E. Staff has reviewed the bids submitted and recommends that the bid of $431,387 and three add alternates totaling $12,939, submitted by Santa Clara Construction & Engineering, Inc., be accepted and that it be declared the lowest responsible bidder. This contractor has satisfactorily completed similar projects for the City in the recent past. Staff also checked references supplied by the contractor and found no significant complaints. Staff also checked with the Contractor's State License Board and found that the contractor has an active license on file. The required Certification of Nondiscrimination is included as Attachment F. CMR:142:08 Page 3 of 4 The low bid is 18% percent above the engineer's estimate of $365,500. Although the amount of this contract exceeds the original budget due to higher than expected costs for site preparation and the children’s play structures, it is recommended that the project move forward. The three add alternates totaling $12,939 involve needed repair and replacement of fencing adjacent to the children’s play area, and given the relatively low cost of these improvements staff recommends their inclusion in the contract. Contingent upon additional funds becoming available for the project through the proposed Budget Amendment Ordinance, staff recommends awarding the base bid and three add alternate bid items in the amount of $444,326 to Santa Clara Construction & Engineering, Inc. The contingency amount of $22,250, which equals 5% percent of the total contract, is requested to resolve unforeseen problems and/or conflicts that may arise during the construction period. RESOURCE IMPACT In fiscal year 2007-08, the City Council appropriated $444,000 for CIP Project PE-08002, Peers Park Improvements (Project) to cover the costs of the design and construction. After completion of the design, $397,020 is left from the original appropriation for the construction cost of the Project. Additional funds totaling $71,566 are needed to award the construction contract. A Budget Amendment Ordinance is necessary to increase the appropriation for the Project (Attachment B). There is sufficient balance in the Infrastructure Reserve to provide the funding for the additional appropriation. POLICY IMPLICATIONS The proposed Peers Park Improvements project is consistent with existing City policies. ENVIRONMENTAL REVIEW This project is exempt as defined by the California Environmental Quality Act (CEQA) pursuant to the provisions of Sections 15201 and 15302 of the CEQA Guidelines. ATTACHMENTS Attachment A: Park Improvement Ordinance Attachment B: Budget Amendment Ordinance Attachment C: Contract Attachment D: CIP Page Attachment E: Bid Summary Attachment F: Certification of Nondiscrimination PREPARED BY: _________________________________ CHRIS RAFFERTY Landscape Architect CMR:142:08 Page 4 of 4 DEPARTMENT HEAD: _________________________________ GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL: _________________________________ EMILY HARRISON Assistant City Manager ______________________________________________________________________________ CMR: 149:08 Page 1 of 5 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: FEBRUARY 19, 2008 CMR:147:08 SUBJECT: ADOPTION OF A PLANNED COMMUNITY ORDINANCE FOR A 9,995 SQUARE FOOT R-2 DISTRICT PARCEL AT 449 ADDISON AVENUE CURRENTLY DEVELOPED WITH TWO RESIDENCES ON THE CITY’S HISTORIC INVENTORY, TO CREATE PLANNED COMMUNITY ZONE REGULATIONS ALLOWING THE SUBDIVISION OF THE PARCEL TO INTO TWO SEPARATE PARCELS, FOR THE BENEFIT OF PRESERVING BOTH HISTORIC RESIDENCES BY LEGAL COVENANT AND RESTRICTION RECOMMENDATION The Planning and Transportation Commission (Commission) and staff recommend that the City Council: 1. Adopt the Planned Community Ordinance (Attachment A), which will: a. Allow for the creation of a new lot, and the reduction in size of an existing lot in the R- 2 zoning district that will have resultant sizes of at least 6,000 square feet; b. Allow for the creation of a lot in the R-2 zoning district that will not have at least 60 feet of street frontage and will not be at least 60 feet in width; c. Allow for the required off-street parking spaces for the rear lot to be located within the required front-yard setback; d. Allow for the location of a detached accessory structure for required covered parking to be located in the required front-yard setback of the rear property; and e. Require the property owner to record legal covenants and restrictions requiring the two newly created properties and their existing historically designated structures to be maintained in accordance with the (Secretary of the Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings) (Attachment B). BACKGROUND The property at 449-451 Addison Avenue is an R-2 zoned, 9,995 square foot parcel containing two separate legal dwellings. The front dwelling, a Queen Anne style home, has been designated as a significant historic structure (Category II) on the City’s historic inventory. The rear structure, which was originally a stable for the front building and has since been legally ______________________________________________________________________________ CMR: 149:08 Page 2 of 5 converted to a dwelling, has been designated as a contributing historic structure, with a designation of Category IV. For reference, the City’s historic category definitions are included below: • Category 2: A "major building" of regional importance. These buildings are meritorious works of the best architects, outstanding examples of an architectural style, or illustrate stylistic development of architecture in the state or region. A major building may have some exterior modifications, but the original character is retained. • Category 3 or 4: A "contributing building" which is a good local example of an architectural style and relates to the character of a neighborhood grouping in scale, materials, proportion or other factors. A contributing building may have had extensive or permanent changes made to the original design, such as inappropriate additions, extensive removal of architectural details, or wooden facades resurfaced in asbestos or stucco. These properties were designated by the Historic Resources Board on June 1, 2005. These homes are currently owned in common. The current owners are pursuing the possibility of subdividing the property into two legal lots, with the goal of keeping and residing in the rear dwelling, while selling off the front parcel and associated dwelling. R-2 zoning regulations currently prohibit this property from being subdivided into two separate parcels. Planned Community (PC) Zoning As the R-2 zoning does not permit subdivision, due to lot width, lot size and street frontage requirements, a Planned Community zone designation is sought to allow for the resolution of the owner’s outstanding issues in a way that preserves the historic character of the property. Section 18.68.060, Required Determinations, identifies the following three required findings for a PC zone: 1. The site is so situated, and the use or uses proposed for the site are of such characteristics that the application or general districts or combining districts will not provide sufficient flexibility to allow the proposed development: In this case, the current R-2 zoning designation does not allow for the creation of a lot with area less than 6,000 square feet, with width less than 60 feet, with street frontage of less than 60 feet and with required parking located in the front-yard. The Planned Community is the most appropriate vehicle to ensure that the resultant properties, while not meeting the underlying R-2 zoning development standards as detailed above, will retain their historic character. 2. Development of the site under the provisions of the PC planned community district will result in public benefits not otherwise attainable by application of the regulations of general districts or combining districts. In making the findings required by this section, the Planning Commission and City Council, as appropriate, shall specifically cite the public benefits expected to result from use of the planned community district: There is no general or combining district in the City that would require the application of covenants requiring compliance with the Secretary of the Interior’s Standards for ______________________________________________________________________________ CMR: 149:08 Page 3 of 5 Rehabilitation and Guidelines for Rehabilitating Historic Buildings. The public benefit resulting from the approval of the Planned Community is the perpetual maintenance of the two historically designated structures, which contribute to the character of the immediate neighborhood and the larger Palo Alto community. 3. The use or uses permitted, and the site development regulations applicable within the district, shall be consistent with the Palo Alto Comprehensive Plan, and shall be compatible with existing and potential uses on adjoining sites or within the general vicinity: As there is no development associated with this application, the nature and character of the on-site uses will remain unchanged. The current and future permitted use on this site, single- family residential, is compatible with the adjoining sites and the general vicinity. The development program statement, as provided by the applicant, can be found as Attachment C to this staff report. COMMISSION REVIEW AND RECOMMENDATION The Planning and Transportation Commission has recommended approval of this Planned Community zone designation. The staff report and minutes for the November 28, 2007 Commission meeting are provided as Attachments G and H. These attachments are also available on the City’s website and in City files for public review. During the Commission hearing, two members of the public, Ms. Beth Bunnenberg, representing the Historic Resources Board said that the existing historic regulations are largely voluntary and that the only way to ensure that these historic structures are maintained would be through the recordation of legal covenants against the property, which can be achieved as the public benefit portion of the proposed Planned Community ordinance. There were a few issues raised by Commission during the hearing. The first related to the location of the property within the SOFA I coordinated area plan, and the application of an existing SOFA I zoning designation rather than the proposed Planned Community designation. During the hearing, Staff and the Deputy City Attorney addressed this issue, concluding that application of a SOFA I designation would not require the applicant to maintain the historic structures, as the implementation of covenants would not be required and only the City’s historic ordinance would govern. The Planned Community ordinance with the associated public benefits, conversely, does enable the City to place further restrictions on the property. Finally, the Commission addressed the precedent setting nature of the use of the Planned Community ordinance to achieve historic preservation. Due to the inherent limitations of the existing historic preservations regulations and the importance of the structures on the City’s historic inventory to the character of their neighborhoods, there was unanimous support to define historic preservation as a public benefit. The Commission strongly supported the use of the Planned Community process to help preserve and maintain the City’s historic housing stock. Commissioners also noted that it might be worthwhile to evaluate revisions to the zoning ordinance that would allow such projects in the future without the need for a Planned Community zone designation to encourage historic preservation. ______________________________________________________________________________ CMR: 149:08 Page 4 of 5 The Commission voted 5-0-1-1, (Chair Holman not participating and Commissioner Burt absent) to recommend that the City Council adopt an ordinance rezoning the parcel to Planned Community with the application of the associated legal covenants. POLICY IMPLICATIONS Zoning and Comprehensive Plan compliance tables are attached to this report as Attachment E. This will be the first application for a Planned Community designation to allow the eventual creation of small lots with a public benefit of historic preservation of the structures on said lots. If this is an acceptable approach, staff and the Commission will evaluate the potential to update the zoning ordinance to allow such projects when historic structures are preserved. ENVIRONMENTAL REVIEW No environmental impacts are anticipated as a result of this project, and it is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15305, Minor Alterations in Land Use Limitations. The rezoning would not result in any changes in land use or density, given that the two existing single-family residential structures would remain on the property as is. The resulting parcel map to create the smaller parcels would also be exempt from CEQA. RESOURCE IMPACT While there is no new development associated with this proposed zone change, it is implied that the Planned Community will allow for future subdivision and sale of one of the properties. Once the second parcel is sold, the City will realize a one-time documentary transfer tax and higher property taxes. Since the assessed value cannot be determined until sale of this parcel, incremental revenues cannot be calculated at this time. Staff time spent on the development review of this project is fully recoverable through fees charged to the applicant. PREPARED BY: _____________________________________________ PAUL MENNEGA Planner DEPARTMENT HEAD REVIEW: ________________________________________ STEVE EMSLIE Director of Planning and Community Environment CITY MANAGER APPROVAL: ____________________________________________ EMILY HARRISON Assistant City Manager ATTACHMENTS A. Ordinance Amending the Zoning Map B. Historic Preservation Covenants ______________________________________________________________________________ CMR: 149:08 Page 5 of 5 C. Development Program Statement D. Project Aerial and Zone Map E. Zoning & Comprehensive Plan Compliance Tables F. Neighbor Correspondence G. Applicant Submitted Materials H. Commission Staff Report of November 28, 2007 (w/o attachments, Council only) I. Commission Meeting Minutes, November 28, 2007 (Council only) J. Project Plans (Council only) COURTESY COPIES Jim Baer Margo Schmidt CMR: 151:08 Page 1 of 2 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE: FEBRUARY 19, 2008 CMR: 151:08 SUBJECT: FINANCE COMMITTEE RECOMMENDATION REGARDING MIDYEAR CHANGES TO THE 2007-08 MUNICIPAL FEE SCHEDULE, INCLUDING ADOPTION OF NEW FEES, AND INCREASING EXISTING FEES, RATES OR ASSESSMENTS; ADOPTION OF: (1) BUDGET AMENDMENT ORDINANCE AMENDING THE BUDGET FOR THE FISCAL YEAR 2007-08 TO ADJUST BUDGETED REVENUES AND EXPENDITURES IN ACCORDANCE WITH THE RECOMMENDATIONS IN THE MIDYEAR REPORT; (2) RESOLUTION AMENDING THE COMPENSATION PLAN FOR MANAGEMENT AND PROFESSIONAL PERSONNEL AND COUNCIL APPOINTEES ADOPTED BY RESOLUTION NO. 8748 TO ADD TWO NEW CLASSIFICATIONS; AND (3) RESOLUTION AMENDING THE COMPENSATION PLAN FOR THE SERVICE EMPLOYEES INTERNATIONAL UNION (SEIU) ADOPTED BY RESOLUTION NO. 8658 TO ADD ONE NEW CLASSIFICATION RECOMMENDATION The Finance Committee recommends that Council: 1. Adopt a Budget Amendment Ordinance, (Attachment 2) which includes: a. Proposed midyear adjustments to the 2007-08 Budget for the General Fund, Enterprise Funds, Special Revenue Funds, Internal Service Funds, and Capital Improvement Fund. b. New or amended 2007-08 Capital Improvement Program project descriptions. c. Amendments to the 2007-08 Adopted Municipal Fee Schedule. d. Amendments to the 2007-08 Table of Organization. 2. Adopt Resolution amending the 2007-08 Management/Professional Compensation Plan (Attachment 4 to CMR 132:08); and 3. Adopt Resolution Amending SEIU Compensation Plan (Attachment 4) COMMITTEE REVIEW AND RECOMMENDATIONS On February 5, 2008 the Finance Committee reviewed the 2007-08 Adjusted Budget-Second Quarter Financial Results, Midyear Amendments and Capital Improvement Program Status. The CMR:151:08 Page 2 of 3 Finance Committee’s review included questions about the Transit Occupancy Tax increase calculation and the historical levels of the Budget Stabilization Reserve. Also at the February 5, 2008 meeting, staff presented an additional position reclassification to the Finance Committee-(Attachment 3). Given this change, the Budget Amendment Ordinance (BAO) was revised – (Attachment 2). Additionally, a resolution to amend the compensation plan for the Service Employees International Union is also attached – (Attachment 4). The Committee voted unanimously to accept staff’s recommendation. PREPARED BY: DAVID RAMBERG Budget Manager DEPARTMENT HEAD APPROVAL: LALO PEREZ Director, Administrative Services CITY MANAGER APPROVAL: EMILY HARRISON Assistant City Manager ATTACHMENTS Attachment 1: CMR 132:08 Attachment 1: Amendment Ordinance with the following exhibits; Exhibit A Fund Summaries and detail changes to the General Fund, Enterprise Funds, Special Revenue Funds, Internal Service Funds, and Capital Improvement Fund. Exhibit B 2007-08 Midyear CIP Adjustments Exhibit C Amendments to the 2007-08 Adopted Municipal Fee Schedule Exhibit D Amendments to the 2007-08 Table of Organization Attachment 2: 2007-08 Midyear Capital Improvement Program Projects Status Attachment 3: List of Continuous Capital Projects Attachment 4: Resolution of the Council of the City of Palo Alto amending the Compensation Plan for Management and Professional Personnel and Council Appointees Adopted by Resolution No. 8748 to add two new classifications Exhibit A: 2007-08 Compensation Plan Changes for Management/Professional Personnel Attachment 2: Revised Budget Amendment Ordinance (BAO) Attachment 3: At Places Memo Attachment 4: Resolution of the Council of the City of Palo Alto Amending the Compensation CMR:151:08 Page 3 of 3 Plan for the Service Employees International Union (SEIU) Exhibit A: 2007-08 Compensation Plan Changes for Service Employees International Union (SEIU) ________________________________________________________________________ CMR 149:08 Page 1 of 4 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: City Manager’s Office DATE: February 19, 2008 CMR: 149:08 SUBJECT: REQUEST FOR AUTHORIZATION TO ENGAGE AN EXECUTIVE RECRUITING FIRM FOR CITY AUDITOR SEARCH; AND FOR DIRECTION ON SCOPE OF SERVICES/TIMELINE FOR RECRUITMENT RECOMMENDATION Staff recommends that the Council review the proposed elements for a solicitation for an executive recruiting firm to conduct a search for a new city auditor, provide direction on the proposed process and authorize staff to issue the solicitation. DISCUSSION City Auditor Sharon Erickson has informed the City Council that she has accepted the position of City Auditor with the City of San Jose. Her last day with the City will be March 6, 2008. Executive recruitments can be anticipated to take 4-6 months so staff proposes to begin the process immediately to engage an executive recruiter. Attachment A is a scope of services which staff proposed to use, as was done with the current City Manager recruitment, for an email solicitation process. Consultants who responded would be asked to submit a proposal as shown below: The City of Palo Alto is seeking proposals for executive search services to hire a new city auditor. The City’s current city auditor has accepted the position of city auditor with another city and will be leaving the city effective March 6, 2008. The City Council is interested in conducting and completing a full search as quickly as possible, in order to allow the new city auditor to be on board when Council returns from its vacation on September8, 2008.. Please submit a proposal by March 10, 2008 to Emily Harrison, Assistant City Manager. Earlier proposals will be greatly appreciated. Emailed proposals are acceptable and, in fact, preferred. In your proposal, please cover the following items: ________________________________________________________________________ CMR 149:08 Page 2 of 4 1. Outline of proposed process and timeline. Included in this outline, please be sure to note: a) specific options for when/how to gather input on the key attributes desirable for Palo Alto’s new auditor from the City Council, the executive staff and the public; and b) a summary of your firms’ understanding of the city auditor hiring market and your firm’s approach and strengths in identifying candidates. 2. Summary of the services your firm will provide and what assistance you would expect from the City staff. 3. Cost of proposed services. 4. Qualifications of your firm and the lead recruiter who will be working on the Palo Alto recruitment. 5. Your availability to participate in interviews with the city council in date to be determined). 6. Anything else you feel would be relevant for us to consider. If you have any questions, please feel free to contact Assistant City Manager Emily Harrison – contact information provided). Request for Council Direction Staff is requesting Council direction on whether to structure the process for the recruitment for the city auditor to include the same milestones in the timeline, including the opportunity for public input on the key attributes for a successful candidate, as were required for the city manager? RESOURCE IMPACT Staff has already requested Council approval in the Midyear Budget process to place $50,000 in the Council’s budget for the city manager recruitment, and anticipates that this will be sufficient for both recruitments. POLICY IMPLICATIONS This recommendation is consistent with prior Council policy of using an executive recruiter for Council Appointed Office recruitments. ATTACHMEMTS Attachment A: Scope of Services PREPARED BY ______________________________________ Emily Harrison, Assistant City Manager CITY MANAGER APPROVAL ______________________________________ Frank Benest, City Manager ________________________________________________________________________ CMR 149:08 Page 3 of 4 ATTACHMENT A SCOPE OF SERVICES Executive Recruitment Services for the Position of City Auditor The City of Palo Alto is seeking proposals from well-qualified consulting firms to conduct executive recruitment search services for the position of City Auditor. The City’s current City Auditor will be leaving March 6, 2008. The City Council is interested in conducting and completing a full search as quickly as possible. The selected firm would also assist in developing a thorough assessment process of the candidates who are seeking to fill the position. The selected recruitment firm will work for the City Council. The Assistant City Manager will act as staff liaison. Listed below are the services to be completed during the term of the contract: 1. In conjunction with the City Council, develop a plan schedule and budget for the City Auditor recruitment. 2. Subject to the approval of the City Council, develop a candidate profile, position description and applicant qualifications. The candidate profile, position description and applicant qualifications will be developed by the selected consultant based on interviews with the City Council, staff, as well as input from the community. 3. Develop, recommend and place appropriate advertising and marketing materials for the position that targets qualified candidates. 4. Attract top candidates who have extensive knowledge of local government auditing who best satisfy the requirements and qualifications of the position through fair and effective solicitations. 5. Conduct personal outreach recruitment to ensure that competitive candidates from diverse backgrounds apply for the position. 6. Review and screen applicants, including verification of credentials, qualifications and recommendations. Evaluate candidates against the approved candidate profile, position description and applicant applications; conduct preliminary interviews and background checks on selected candidates and recommend superior candidates to the appointing authority for review. Prepare profile of ________________________________________________________________________ CMR 149:08 Page 4 of 4 experience, skills assessment and analysis of strengths and weaknesses for each candidate to be reviewed. 7. Coordinate, attend and facilitate the City’s interview process of selected candidates. Assist in preparing interview questions and other techniques to evaluate candidates. 8. Conduct background and reference checks on final candidates and prepare a confidential reference report on each. Firm shall assist City with identifying former co-workers, supervisors, Council members and community members of top two (2) or three (3) candidates as part of completing the reference checks. Other Services: In addition, please provide information and costs related to all other reasonable and customary duties associated with an executive search. Also provide any guarantees your firm may provide regarding the appointment made as a result of this recruitment and any guarantees your firm may provide should the recruitment be unsuccessful during any stage of this process.