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HomeMy WebLinkAbout2008-06-16 City Council Agenda Packet 1 06/16/08 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL DURING NORMAL BUSINESS HOURS. 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 June 16, 2008 6:00 PM ROLL CALL 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. 1. Public Employment Title: City Manager Authority: Government Code section 54957(b) 7:00 PM or as soon as possible thereafter SPECIAL ORDERS OF THE DAY 2. Presentation About 2009 Senior Games 2A. Proclamation Recognizing the Palo Alto Humane Society for 100 Years of Service to Palo Alto Attachment 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 CONSENT CALENDAR Items will be voted on in one motion unless removed from the calendar by two Council Members. 06/16/08 2 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL DURING NORMAL BUSINESS HOURS. 3. Approval of a Utilities Enterprise Fund Contract with D'Arcy & Harty Construction, Inc. in an Amount Not to Exceed $1,177,695 for Wastewater Collection System Rehabilitation Capital Improvement Program Project WC-06003 Project 19B CMR 273:08 Attachment 4. Approval of a Utilities Enterprise Fund Contract with Roto Rooter Services Company for Sewer Lateral Cleaning Services in an Amount Not to Exceed $160,000 Per Year and a Term of Up to Three Years CMR 258:08 Attachment 5. Adoption of a Resolution Summarily Vacating a Public Service Easement for Utilities at 780 Rosewood Drive CMR 274:08 Attachment 6. Adoption of a Resolution of the Council of the City of Palo Alto Establishing its Future Intention to Appoint a City Manager CMR 287:08 Attachment 7. Approval of a Contract Amendment Between the City of Palo Alto and Telecommunications Engineering Associates (TEA) in an Amount of $128,930 Per Year for Annual Maintenance Services of Radio Infrastructure for Five Years CMR 230:08 Attachment 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 06/16/08 3 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL DURING NORMAL BUSINESS HOURS. 8. Approval of a Mitigated Negative Declaration and Adoption of an Ordinance Amending the Zoning Map of the City Of Palo Alto to Change the Zone Designation for Approximately 0.45 Acres, Located at 2995 Middlefield Road, from Planned Community (PC 3779) to Neighborhood Commercial (CN) Zone District with a Retail Shopping (R) Combining District CMR 270:08 Attachment 9. Approval of a Site and Design, Mitigated Negative Declaration and Record of Land Use Action for a New Spa and Fitness Facility, Below Grade Parking, Tennis Court, Additional Floor Area for Accessory Uses Including Offices, Bar, Banquet and Storage Areas and Other Site Improvements Located Within the Open Space (OS) Zone District at 3000 Alexis Drive (Staff requests item be continued by Council Motion to a date uncertain) Attachment REPORTS OF COMMITTEES AND COMMISSIONS ORDINANCES AND RESOLUTIONS REPORTS OF OFFICIALS 10. Approval of Letter of Intent with the Friends of Lytton Plaza Park, L.L.C., for the Design, Construction and Installation of Trees, Fountain, Park Amenities and Other Improvements at Lytton Plaza – Capital Improvement Program Project PE-08004 CMR 281:08 Attachment COUNCIL MATTERS COUNCIL COMMENTS, ANNOUNCEMENTS, AND REPORTS FROM CONFERENCES Members of the public may not speak to the item(s). ADJOURNMENT 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: 273:08 Page 1 of 3 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: UTILITIES DATE: JUNE 16, 2008 CMR: 273:08 SUBJECT: APPROVAL OF A UTILITIES ENTERPRISE FUND CONTRACT WITH D’ARCY & HARTY CONSTRUCTION, INC. IN AN AMOUNT NOT TO EXCEED $1,177,695 FOR WASTEWATER COLLECTION SYSTEM REHABILITATION CAPITAL IMPROVEMENT PROGRAM PROJECT WC-06003 PROJECT 19B RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or his designee to execute the attached contract with D’Arcy & Harty Construction, Inc. (Attachment A) in an amount not to exceed $1,177,695 for Wastewater Collection System Rehabilitation Capital Improvement Program WC-06003 (WWC Project 19B). Staff also recommends that Council approve and authorize the City Manager or his designee to negotiate and execute one or more change orders to the contract with D’Arcy & Harty Construction, Inc. for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed $117,770. DISCUSSION Project Description The work to be performed under the contract is for the replacement of approximately 8,100 linear feet of sanitary sewer mains of various sizes, 30 sewer manholes, and 200 sewer service laterals. The scope includes the replacement of sewer mains, manholes, and laterals on Arastradero Road and adjacent streets, as well as the replacement of sewer laterals on California Avenue in the business district. 3 CMR: 273:08 Page 2 of 3 Summary of Bid Process Bid Name/Number Project 19B Sanitary Sewer Rehabilitation/126462 Proposed Length of Project 180 calendar days Number of Bids Mailed to Contractors 8 Number of Bids Mailed to Builder’s Exchanges 3 Total Days to Respond to Bid 21 Pre-Bid Meeting? Yes Number of Company Attendees at Pre-Bid Meeting 1 Number of Bids Received: 2* Bid Price Range From a low of $1,177,695 to a high of $1,221,306 *2 responsive bids were received out of a total of 6 submittals. Bid summary is provided in Attachment B. Staff has reviewed all bids submitted and found that four out of six bids were non-responsive because they failed to submit the required documentation for pipe-bursting experience. Staff recommends that the bid of $1,177,695 submitted by D’Arcy & Harty Construction, Inc. be accepted and that D’Arcy & Harty Construction, Inc. be declared the lowest responsive and responsible bidder. The bid is eighteen percent below the engineer's estimate of $1,438,750. The change order amount of $117,770, which equals 10 percent of the total contract, is requested for unforeseen additional work that may develop during the project. Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. Staff checked references supplied by the contractor for previous work performed and found no significant complaints. PROJECT COORDINATION The work will be coordinated with the Public Works Department at the monthly department coordination meetings and by meeting independently with Public Works’ project managers whose projects may directly impact this project. During the coordination meetings, staff is aggressively targeting areas such as Arastradero Road and California Avenue to more closely plan and coordinate underground infrastructure into future street maintenance phases. The targeted streets will be resurfaced in Public Works Engineering’s upcoming projects after utility work is completed to prevent trenching in newly repaved streets. RESOURCE IMPACT Funds for this project are available in the Wastewater Collection Funds Capital Improvement Program budgets. CMR: 273:08 Page 3 of 3 POLICY IMPLICATIONS This recommendation is consistent with the Council-approved Utilities Strategic Plan, Key Strategy #2, “Invest in utility infrastructure to deliver reliable service.” ENVIRONMENTAL REVIEW This project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Sections 15301 (b) repair and maintenance of existing public utility facilities and 15302 (c) replacement or reconstruction of existing utility facilities involving no expansion of capacity. ATTACHMENTS A: Contract B: Bid Summary C: Certificate of Non-Discrimination PREPARED BY: Silvia Santos, Project Engineer Edward Wu, Senior Project Engineer Roger Cwiak, Engineering Manager DEPARTMENT HEAD: __________________________________ VALERIE O. FONG Director of Utilities CITY MANAGER APPROVAL: __________________________________ STEVE EMSLIE/KELLY MORARIU Deputy City Managers CMR: 258:08 Page 1 of 3 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: UTILITIES DATE: JUNE 16, 2008 CMR: 258:08 SUBJECT: APPROVAL OF A UTILITIES ENTERPRISE FUND CONTRACT WITH ROTO ROOTER SERVICES COMPANY FOR SEWER LATERAL CLEANING SERVICES IN AN AMOUNT NOT TO EXCEED $160,000 AND A TERM OF UP TO THREE YEARS RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or his or her designee to execute the attached contract with Roto Rooter Services Company in an amount not to exceed $160,000 for the first year of Sewer Lateral Cleaning Services. Staff also recommends that Council approve and authorize the City Manager or his or her designee to exercise the option to renew the contract for the second and third years (in an amount not to exceed of $160,000 per year), provided the funds are appropriated in the budget for subsequent fiscal years, the contractor is responsive to the City's needs, and the quality of the contractor's work product is acceptable during each year of the contract. DISCUSSION Project Description The work to be performed under this contract is for cleaning sewer laterals when a customer reports a sewer back-up. The Contractor is required to provide a timely response to the City’s requests and to be available to clean the sewer laterals 24-hours a day, 365 days a year on an as- needed basis. This contract will allow the City’s Utilities Wastewater Operations staff to focus on scheduled maintenance and repairs to the 200-miles of collection system mains and will reduce the City’s overtime costs for responding to sewer blockage calls during the holidays. 4 CMR: 258:08 Page 2 of 3 Summary of Bid Process Bid Name/Number Sewer Lateral Cleaning Services/RFQ #126818 Proposed Length of Project 36 months Number of Bids Mailed to Contractors 4 Number of Bids Mailed to Builder’s Exchanges 0 Total Days to Respond to Bid 14 Pre-Bid Meeting? yes Number of Bids Received: 2* *Bid summary provided in Attachment B. Staff has reviewed the bids submitted and recommends that the bid submitted by Roto Rooter Services Company be accepted and that Roto Rooter Services Company be declared the lowest responsible bidder. Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. Staff checked references supplied by the contractor for previous work performed and found no significant complaints. RESOURCE IMPACT The first year of funding, $160,000, has been budgeted in FY 08/09. POLICY IMPLICATIONS This recommendation is consistent with the Council approved Utilities Strategic Plan Key Strategy #2, “Invest in utility infrastructure to deliver reliable service.” ENVIRONMENTAL REVIEW This project is categorically exempt from California Environmental Quality Act (CEQA) pursuant to CEQA Guideline Sections 15301 (b) repair and maintenance of existing utility facilities and 15302 (c) replacement or reconstruction of existing utility facilities. CMR: 258:08 Page 3 of 3 ATTACHMENTS A: Contract B: Bid Summary C: Insurance Certificate PREPARED BY: Silvia Santos, Project Engineer, Engineering WGW Frank Alvarado, Supervisor, Operations WGW Javad Ghaffari, Manager, Operations WGW DEPARTMENT HEAD: __________________________________ VALERIE O. FONG Director of Utilities CITY MANAGER APPROVAL: ________________________ ____ STEVE EMSLIE/KELLY MORARIU Deputy City Managers CMR: 274:08 Page 1 of 2 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES DATE: JUNE 16, 2008 CMR: 274:08 SUBJECT: ADOPTION OF A RESOLUTION SUMMARILY VACATING A PUBLIC UTILITY EASEMENT AT 780 ROSEWOOD DRIVE RECOMMENDATION Staff recommends that Council adopt the attached Resolution summarily vacating a public service utilities easement located at 780 Rosewood Drive. DISCUSSION The owners of the property at 780 Rosewood Drive have requested that the City vacate a 10-foot public utilities easement (PUE) which runs across their property. The owners plan to install a pool in their back yard which will encroach into the 10-foot PUE. Staff has notified AT&T (formerly SBC) Communications, City Utilities, Public Works and the Planning Department of the proposal to vacate the PUE, and all concur with the vacation, subject to a Utilities Department condition requiring the owners to grant the City a new 5-foot PUE to replace the existing 10-foot PUE, and to pay for the relocation of the utilities located within the PUE to be vacated. The owner has granted the new 5-foot PUE, and the utility facilities have been relocated at the owner’s cost. Therefore, the 10-foot PUE to be vacated is not necessary for any present or future use and it may be summarily vacated in accordance with Section 8333 of the California Streets and Highways Code. RESOURCE IMPACT The easement vacation processing fee of $1,260.00, as set forth in the Municipal Fee Schedule is not applicable when a new PUE easement is granted in exchange. POLICY IMPLICATIONS The recommendation does not represent any change to City policies. The Planning Department has determined that the vacation of the PUE is in conformity with the Palo Alto Comprehensive Plan. CMR: 274:08 Page 2 of 2 ENVIRONMENTAL REVIEW The proposed summary vacation of the PUE is categorically exempt from review under the California Environmental Quality Act (CEQA) pursuant to Title 14 California Code of Regulations Section 15305 as a minor alteration in land use limitations. ATTACHMENTS Attachment A: Summary Vacation cc: Property Owners PREPARED BY: DONNA HARTMAN Sr. Financial Analyst, Administrative Services DEPARTMENT HEAD APPROVAL: LALO PEREZ Director, Administrative Services CITY MANAGER APPROVAL: STEVE EMSLIE and KELLY MORAUIU Deputy City Managers CMR:287:08 Page 1 of 2 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: CITY MANAGER’S OFFICE DATE: JUNE 23, 2008 CMR: 287:08 SUBJECT: ADOPTION OF A RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ESTABLISHING ITS FUTURE INTENTION TO APPOINT A CITY MANAGER RECOMMENDATION Staff recommends that the City Council adopt the attached resolution (Attachment A) establishing the Council’s future intention to appoint a City Manager. BACKGROUND/DISCUSSION Article IV, Section 3 of the Palo Alto City Charter requires the City Council to adopt a resolution of its intent to appoint a city manager no less than (30) days before any appointment to the office can be made. The current City Manager has announced his intent to retire in July/August 2008 pending the appointment by the Council of his successor. The Council has initiated the recruitment process for the new city manager and anticipates making an appointment in July or August 2008. Following Council adoption of this resolution, the City Clerk will publish the resolution once in the official newspaper of the City to meet the noticing requirements of the Charter. RESOURCE IMPACT There will be a minor expense to publish this resolution in the paper. This expense will be absorbed as part of the City Clerk’s operating budget. POLICY IMPLICATIONS This recommendation is consistent with existing City Council policies and the City Charter. ENVIRONMENTAL REVIEW This recommendation is not a project requiring environmental review under the California Environmental Quality Act (CEQA). CMR:287:08 Page 2 of 2 Attachment A: Resolution of the Council of the City of Palo Alto Establishing Its Future Intention to Appoint a City Manager PREPARED BY: _________________________________ KELLY MORARIU Interim Deputy City Manager APPROVED BY: _________________________________ FRANK BENEST City Manager CMR:230:08 Page 1 of 3 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: POLICE DEPARTMENT DATE: JUNE 16, 2008 CMR:230:08 SUBJECT: APPROVAL OF A CONTRACT AMENDMENT BETWEEN THE CITY OF PALO ALTO AND TELECOMMUNICATIONS ENGINEERING ASSOCIATES (TEA) IN AN AMOUNT OF $128,930 PER YEAR FOR ANNUAL MAINTENANCE SERVICES OF RADIO INFRASTRUCTURE FOR FIVE YEARS RECOMMENDATION Staff recommends that the City Council authorize the City Manager to execute an amendment extending the contract with Telecommunications Engineering Associates (TEA) in the amount of $128,930 per year. The contract will provide for annual maintenance services for the City’s radio infrastructure and related console radio equipment. BACKGROUND As part of the Fiscal Year 2003-05 budget process, the Police Department proposed contracting out portions of the City’s Radio Shop as part of its cost-cutting efforts. The contracting enabled the elimination of a full-time Communications Technician and outsourcing of the related engineering and maintenance services. This was approved by City Council as part of the budget process in June 2003. On June 24, 2003, the Police Department executed a five-year contract (Contract No. S3147499) with Telecommunications Engineering Associates in the amount of $51,008 for Fiscal Year 2003-04, $56,996 for Fiscal Year 2004-05, and $99,338 for Fiscal Years 2005-2008 for professional maintenance and repair services for the City’s two-way radio infrastructure and related console equipment (CMR:295:04). The increased costs were related to additional equipment added for maintenance coverage under the contract. Since 2003, TEA has provided quality engineering and maintenance services to the City of Palo Alto. As such, the Police Department is seeking sole-source approval by the Council for the CMR:230:08 Page 2 of 3 agreement because of TEA’s excellent service, high-quality work product, and thorough knowledge of the City’s current radio systems, its equipment, how the telecommunications systems are interconnected and function, and due to their more than 25 years of experience installing and maintaining these types of systems. TEA also provides maintenance services under contract for the Cities of Los Altos and Mountain View. Since the public safety personnel from each of our three jurisdictions interact nearly daily for law enforcement and fire operations, there is an additional benefit of using the same vendors maintaining our systems as personnel operate on all three radio systems. DISCUSSION It is imperative that the City’s radio infrastructure and related equipment be maintained and equipment engineered and installed at the highest levels of service. Continuing to contract out these services provides a more efficient means of meeting the service level demands of the user departments and a more cost-effective approach for delivering these essential services. Through the extension of this contract for an additional five years, TEA would continue to provide professional telecommunications engineering services to maintain the City’s radio infrastructure and related equipment 24 hours a day, 365 days a year. All equipment covered under this agreement will be maintained by TEA and kept in premium working condition, utilizing contemporary industry standards and modern preventative maintenance techniques. Staff feels that it would not be cost-effective for the City to conduct another competitive bid process as it would take several months to complete a competitive bid process. Continuing to receive high-quality maintenance services through the TEA agreement will ensure that our first responders and other users of the City’s radio systems will be able to operate on radio systems that are well-maintained and reliable. RESOURCE IMPACT The annual cost of $128,930 is covered in the Police Department’s operating budget. By entering into an extension, the City receives a reduction of two percent per year, for a maximum of 10 percent monthly cost reduction. The annual maintenance cost of $128,930 will remain constant for the duration of the five-year agreement. POLICY IMPLICATIONS This amendment is consistent with existing City policy, including the City Manager’s commitment to cost-saving efforts. CMR:230:08 Page 3 of 3 ENVIRONMENTAL REVIEW: This contract is exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to Section 15301 of the CEQA guidelines. PREPARED BY: ______________________________________________ CHARLES CULLEN Acting Director, Police Technical Services REVIEWED BY: ______________________________________________ LYNNE JOHNSON Police Chief CITY MANAGER APPROVAL: __________________________________ STEVE EMSLIE and KELLY MORARIU Deputy City Managers ______________________________________________________________________________ CMR: 270:08 Page 1 of 4 8 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: JUNE 16, 2008 CMR: 270:08 SUBJECT: APPROVAL OF A MITIGATED NEGATIVE DECLARATION AND ADOPTION OF AN ORDINANCE AMENDING THE ZONING MAP OF THE CITY OF PALO ALTO TO CHANGE THE ZONE DESIGNATION FOR APPROXIMATELY 0.45 ACRES, LOCATED AT 2995 MIDDLEFIELD ROAD, FROM PLANNED COMMUNITY (PC 3779) TO NEIGHBORHOOD COMMERCIAL (CN) ZONE DISTRICT WITH A RETAIL SHOPPING (R) COMBINING DISTRICT. RECOMMENDATION Staff and the Planning and Transportation Commission (PTC) recommend that the Council: 1. Approve the proposed Mitigated Negative Declaration (Attachment B) and; 2. Adopt the Ordinance to change the zoning classification of 2995 Middlefield Road from Planned Community (PC-3779) to Neighborhood Commercial Zone District (CN) with a Retail Shopping Combining District (R) (Attachment A). PROJECT DESCRIPTION The applicant, Old Trace Middlefield Partners, represented by Eric Corrigan, is requesting that the City consider rezoning the property at 2995 Middlefield Road, as shown on the location map (Attachment C), from Planned Community (PC-3779) to Commercial Neighborhood. The applicant is requesting the change from a designation that specifically allowed a gas station to a more general commercial designation to accommodate a broader range of retail and commercial uses. The applicant intends to submit an application for review of the removal of the gas station and development of a commercial building on the site. A subsequent environmental review document would be prepared and circulated for any new development resulting from this rezoning. The subject property was rezoned to Planned Community (PC-3779) on November 9, 1987 from RM-2 (Low Density Multiple Family Residential) to allow the continued operation of an existing gas station and associated improvements. ______________________________________________________________________________ CMR: 270:08 Page 2 of 4 The project site is comprised of 0.45 acre of land, located on the north side of Middlefield Road, approximately 65 feet southeast of Matadero Creek. The site is developed with a gas station that has been inoperative since 2004. The property was purchased by the current owner, Old Trace Middlefield Partners, from BP West Coast Products, LLC, in December 2007. The conditions of the property sale include that the new owner cannot re-establish a gas station on the site. The property is bounded by the Winter Lodge, a community/non-profit recreational use on City- owned land, on the north, east and west. BOARD/COMMISSION REVIEW AND RECOMMENDATIONS On January 30, 2008, the PTC reviewed the proposal. Four members of the public spoke on the project. One member of the public spoke to the PTC regarding this item, expressing his support for the proposal and noting that the proposed zoning was suited for the building and site and a new tenant could then use the building more appropriately. Sheri Furman, representing the Midtown Residents Association, also spoke in favor of the rezoning. The third speaker spoke about concerns with the potential impacts, including aesthetics and parking lot landscaping. The fourth member of the public stated that the site should be zoned residential given that the majority of the properties surrounding the subject site are residentially zoned. The PTC voted 3-2-1-0 (Keller and Garber voted no and Tuma absent) to recommend that the City Council approve the Mitigated Negative Declaration and adopt an ordinance to change the zoning designation from Planned Community (PC 3779) to Neighborhood Commercial (CN) with a Retail Shopping Combining District (R). The staff report and minutes of the PTC meeting are attached (Attachments G and H). The PTC expressed concern about the unique configuration of the subject parcel. The site is surrounded on the north, east and west by City-owned land, which has a zoning designation of Public Facility (PF) and is occupied by the Winter Lodge. The driveway for the site is located between two driveways that serve the surrounding Winter Lodge. The PTC voted 5-0-1 (Tuma absent) to request City staff to engage the applicant and Council to investigate better utilization of the property and the Winter Lodge property. The purpose would be to maximize built area of retail and office, to reduce the number of driveways and to accommodate a use that would be compatible and benefit the Winter Lodge. Per Linda Jensen, executive director of Winter Lodge, and Bill Fellman of the City’s Administrative Services Department, the Winter Lodge had attempted to purchase the property from the original owner but was unable to come to an agreement due to costs. City staff will continue to work with the applicant on the subsequent development application to maximize retail uses and reduce driveways should the rezoning be approved. In response to the PTC’s motions and concerns regarding utilization of the subject site and the adjacent Winter Lodge property, the applicant has notified staff that although they are not interested in selling the property to the City, they are interested in working with staff to reconfigure the site to maximize efficient use of the property (see Attachment I). The applicant has indicated that if the rezoning is approved, he will work with staff to reduce the number of driveways as part of any new development proposal. The goal is to redesign the subject site so that driveways can be shared with the Winter Lodge, which will reduce the number of driveway cuts. The reduction in the number of driveway cuts offers an opportunity to increase circulation ______________________________________________________________________________ CMR: 270:08 Page 3 of 4 efficiency, maximize buildable land, and provide for greater design compatibility with the adjacent Winter Lodge. RESOURCE IMPACT Between $1,000 and $1,500 in sales and utility users’ tax is projected from this project. All planning and other fees associated with the rezoning and building are cost reimbursed. Other city costs to support this facility such as public safety are marginal and will not impact the budget. POLICY IMPLICATIONS The Comprehensive Plan designation for this site is Neighborhood Commercial. The proposed zone district and Combining District are consistent with the land use designation. Any future development will be required to comply with the development standards and requirements of the Neighborhood Commercial (CN) and Retail Shopping Combining Districts (R). ENVIRONMENTAL IMPACTS A draft Initial Study and Mitigated Negative Declaration, which reviewed the environmental issues related to the rezoning, as required by the California Environmental Quality Act (CEQA), was circulated for a 20-day public review period that began January 18 and ended on February 7, 2008. A revised Initial Study and Mitigated Negative Declaration was completed and circulated analyzing the addition of the Retail Shopping Combining District (R) for a 20-day public review period that began April 7 and ended on May 1, 2008. A copy of the revised environmental document is provided as Attachment B. Key mitigation measures include the requirement of obtaining written approval from the Santa Clara Valley County Department of Health prior to any development approvals and any construction activity. The Draft Initial Study and Mitigated Negative Declaration must be adopted prior to the Council decision on this project application. PREPARED BY: _________________________________ ELENA LEE Senior Planner DEPARTMENT HEAD: _________________________________ CURTIS WILLIAMS Interim Director of Planning and Community Environment CITY MANAGER APPROVAL: _________________________________ STEVE EMSLIE/KELLY MORARIU Interim Deputy City Managers ______________________________________________________________________________ CMR: 270:08 Page 4 of 4 ATTACHMENTS A. Draft Ordinance B. Draft Initial Study and Draft Mitigated Negative Declaration C. Location Map D. Planned Community (PC-3779) Zoning District E. Neighborhood Commercial District (CN) Regulations F. Retail Combining District (R) Regulations G. January 30, 2008 Planning & Transportation Commission staff report w/o attachments H. Planning & Transportation Commission Minutes of January 30, 2008. I. Correspondence from Old Trace Middlefield Partners, dated May 6, 2008 COURTESY COPIES Project Applicant and Owner Sheri Furman, Midtown Residents Association _____________________________________________________________________________________________ CMR:281:08 Page 1 of 3 TO: HONORABLE CITY COUNCIL 10 FROM: CITY MANAGER DEPARTMENT: COMMUNITY SERVICES DATE: JUNE 16, 2008 CMR:281:08 SUBJECT: APPROVAL OF A LETTER OF INTENT WITH THE FRIENDS OF LYTTON PLAZA PARK, L.L.C., FOR THE DESIGN, CONSTRUCTION AND INSTALLATION OF TREES, FOUNTAIN, PARK AMENITIES AND OTHER IMPROVEMENTS AT LYTTON PLAZA – CAPITAL IMPROVEMENT PROGRAM PROJECT PE-08004 RECOMMENDATION Staff recommends that Council authorize the City Manager or designee to sign the attached Letter of Intent with the Friends of Lytton Plaza Park, L.L.C., for improvements located within Lytton Plaza Park, including the installation of trees, a fountain, site amenities and other improvements. BACKGROUND On June 11, 2007, Council approved the allocation of $50,000 from the Infrastructure Reserve Fund to Capital Improvement Project PE-08004 for preliminary design for the renovation of Lytton Plaza Park (200 University Avenue at Emerson Street). On June 9, 2008, Council approved a supplemental allocation for construction expenses of $300,000 for the City’s share of a public/private partnership to renovate the Plaza. The Friends of Lytton Plaza Park, LLC, have legally incorporated in order to eventually enter into an agreement with the City to occupy the Plaza for a period of approximately three months so that the Plaza can be rebuilt. The Friends have worked with landscape architects to create a conceptual plan for the Plaza that will make the park inviting, family oriented, and a community gathering spot. Original round benches/planters would be replaced with movable tables and chairs under an expanded canopy of trees that will allow visitors to read, converse and enjoy their lunches in a relaxed setting. The concept of improving Lytton Plaza was reviewed by the Parks and Recreation Commission on October 23, 2007. The Commission supported the initial concept of the renovations. A publicly noticed meeting was held at City Hall on May 28, 2008 to receive comments and suggestions from the public on the project. _____________________________________________________________________________________________ CMR:281:08 Page 2 of 3 DISCUSSION Staff has worked cooperatively with the Friends to develop a Letter of Intent (Attachment A) that lays out the responsibilities and expectation of both parties. Similar to Letters of Intent with the Friends of Heritage Park and the Palo Alto Art Foundation, the letter describes the scope of the renovation project, the amount of money that will be contributed by each partner, and the responsibilities for the on-going maintenance of the park once it is improved. Once the Letter of Intent is executed by both parties, the Friends will work with design consultants to prepare detailed construction plans and specifications for the project. The Friends will return to the City with plans to be submitted for Planning Department, Architectural Review Board, and Planning & Transportation Commission review. The Friends will then develop a budget for the project, ensuring that there are adequate funds to successfully complete the project, a detailed construction timeline and evidence of insurance. Staff will then return to Council with a Park Improvement Ordinance, Budget Amendment Ordinance, and Agreement To Enter documents for review and approval. The Agreement To Enter specifies policy and procedural guidelines for the Lytton Plaza Park, LLC to follow regarding construction, safety, liability, and payment details. The agreement follows similar public/private partnership agreements that provide for authorized non-profits to manage the improvement of City facilities. Other examples of such partnerships include the Friends of the Children’s Theatre for the construction of the Magic Castle, and an agreement with Perry-Arrillaga for the construction of a refreshment stand at the Baylands Athletic Center. Once the project is successfully constructed and accepted by the City, the City will complete the payment of project-related invoices, the Agreement To Enter will terminate, and the City will resume maintenance responsibilities for the Plaza. If the Friends or the City determine that it is not in their best interest to proceed with construction of the Project, then the City will share in one-half of the design costs of the project up to, but not exceeding, the amount of $50,000. RESOURCE IMPACT Funds for the City’s share of this project are included in Capital Improvement Program Project – PE-08004 (Lytton Plaza Renovation). Funds for this project will be matched by the Friends of Lytton Plaza Park, LLC. The LLC estimates the total cost of the renovations to be $700,000. The Letter of Intent caps the City’s financial participation for design and construction of improvements at $350,000. The current maintenance and utilities cost of the Plaza is approximately $4,235. The projected annual cost to the City for maintaining and operating the plaza is estimated at $8,600. This cost includes the maintenance and operational costs of a water feature which will be added to the Plaza. POLICY IMPLICATIONS This project is consistent with the recently approved (Policies & Services Committee) public/private partnership policy as a “joint partnership project.” _____________________________________________________________________________________________ CMR:281:08 Page 3 of 3 The proposed project is consistent with existing City policy, including C-26: Maintain and enhance existing park facilities. A Park Improvement Ordinance will be required for park development. The Ordinance will be prepared and presented to the Council at the point when the actual project agreement is ready for Council approval. ENVIRONMENTAL REVIEW Environmental review will be performed at the time the project is presented to Council for approval. ATTACHMENTS Attachment A: Letter of Intent PREPARED BY: ____________________________________________________________ GREG BETTS Open Space and Parks Division Manager DEPARTMENT HEAD:_______________________________________________________ RICHARD JAMES Director of Community Services CITY MANAGER APPROVAL:________________________________________________ STEVE EMSLIE/ KELLY MORARIU Deputy City Managers