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HomeMy WebLinkAbout2009-03-02 City Council Agenda Packet 1 03/02/2009 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, 250 HAMILTON AVE. 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 March 2, 2009 6:00 PM ROLL CALL UNFINISHED BUSINESS: 1. Review of the Transportation Analysis for the Proposed Stanford University Medical Center and Stanford Shopping Center Expansions (Item Continued from 2/9/09 – Public Testimony Closed) ATTACHMENT 7:00 PM or as soon as possible thereafter SPECIAL ORDERS OF THE DAY 2. Appointment of Nine Members to the Blue Ribbon Task Force on Composting ATTACHMENT 3. Selection of Candidates to be Interviewed for the Library Advisory Commission Unexpired Term of Sanford Forte 2 03/02/2009 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, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. ATTACHMENT 4. Selection of Candidates to be Interviewed for the Human Relations Commission for Three, Three-Year Terms Ending March 31, 2012 ATTACHMENT CITY MANAGER COMMENTS 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 period to 30 minutes. APPROVAL OF MINUTES January 26, 2009 CONSENT CALENDAR Items will be voted on in one motion unless removed from the calendar by two Council Members. 5. Adoption of (1) Resolution Declaring Intention to Reimburse Expenditures from the Proceeds of Bonds to be Issued by the City; and (2) Ordinance Amending the Budget for Fiscal Year 2009 to Establish Capital Improvement Program Project Number PE- 09005, Downtown Library Improvements, and to Provide an Appropriation in the Amount of $411,056; Establish Capitol Improvement Program Project Number PE-09006, Mitchell Park Library and Community Center New Construction, and to Provide an Appropriation in the Amount of $3,390,309; Establish Capital Improvement Program Project Number PE- 09010, Library and Community Center Temporary Facilities, and to Provide an Appropriation in the Amount of $79,525; and Approval of Contract C09130744 with Group 4 Architecture, Research + Planning, Inc., in a Total Amount Not to Exceed $3,827,280 for Architectural and Engineering Design Services for the Mitchell Park Library and Community Center, Downtown Library and Library and Community Center Temporary Facilities CMR 149:09 ATTACHMENT 3 03/02/2009 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, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. 6. Approval of a Conditional Use Permit and Record of Land Use Action to Allow the Sale of Alcohol for Onsite Consumption at Theater Performances for TheatreWorks at 1305 Middlefield Road (Lucie Stern Community Center) *This item is quasi-judicial and subject to Council's Disclosure Policy CMR 140:09 7. Approval of Amendment No. 1 to Contract No. C08122241 with Rodan Builders, Inc., in the Amount of $39,332 for the Renovation of the Open Space Maintenance Building at Foothills Park, Capital Improvement Program (CIP) Project OS-07003 for a Total Not to Exceed Amount of $272,232; and Adoption of a Budget Amendment Ordinance for the Fiscal Year 2009 to Reappropriate $20,000 from CIP OS-00001 and $19,332 from CIP OS-09001 to CIP Project OS-07003 for a Total of $39,332 CMR 113:09 8. Adoption of a Budget Amendment Ordinance for the Fiscal Year 2008-09 to Provide an Appropriation of $2,000,000 for the Acquisition of Residential Property In Accordance with the Housing Assistance Provision of the City Manager’s Employment Agreement; Authorization to Mayor to Sign Necessary Documentation to Complete City Manager Home Purchase CMR 155:09 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 9. Acceptance of Service Efforts and Accomplishments Report FY 2007-08 4 03/02/2009 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, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. (Item Continued from 1/26/09) ATTACHMENT PUBLIC HEARINGS 10. Adoption of the 2008-09 CDBG Annual Action Plan Amendment to the 2005-10 Consolidated Plan to Provide: (a) Pre-award Authorization to Expend $300,000 from the City’s 2009-10 CDBG Grant for Additional Site Acquisition Funding for the Affordable Housing Project at 488 West Charleston Road; and (b) An Additional Allocation to InnVision the Way Home for Homeless Shelter and Services of $80,000; Adoption of an Ordinance Amending the Budget for the Fiscal Year 2008-2009 to Provide an Additional Appropriation of $300,000 from the Residential Housing Fund for the Acquisition of 488 West Charleston Road and Development of the Site into an Affordable Housing Project; and Approval of Two Contract Amendments with InnVision the Way Home to (1) Add $56,000 for Services at the Opportunity Center for a Total Not to Exceed Amount of $86,000, and (2) Add $24,000 for Services at the Clara Mateo Alliance Shelter for a Total Not to Exceed Amount of $59,000 CMR 147:09 ATTACHMENT REPORTS OF OFFICIALS 11. Status Report and Review of Draft Scoping Comments Regarding California High Speed Train (HST) San Francisco to San Jose Project EIR/EIS, and Authorization to Proceed with Next Steps CMR 146:09 12. Approval of 2009 Citywide Legislative Principles and Priorities and Referral of Legislative Program to Policy & Services Committee CMR 144:09 ATTACHMENT 5 03/02/2009 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, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. PUBLIC HEARINGS 13. Consider the Approval of Water Supply Assessment for Stanford Medical Center and Stanford Shopping Center Expansion Project (Item Continued from 2/9/09 –Staff Requests by Council Motion that this Item be Continued to 04/06/09) ATTACHMENT COUNCIL MATTERS 14. Colleagues Memo from Mayor Drekmeier, Vice Mayor Morton, and Council Member Burt Requesting Clarification of Staff and Public Art Commission Roles in Approving Artwork at the Mitchell Park Library and Community Center ATTACHMENT 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 650-329-25p50 (Voice) 24 hours in advance. CMR:113:09 Page 1 of 2 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: COMMUNITY SERVICES DATE: MARCH 2, 2009 CMR:113:09 REPORT TYPE: CONSENT SUBJECT: Approval of Amendment No. 1 to Contract No. C08122241 with Rodan Builders, Inc., in the amount of $39,332 for the Renovation of the Open Space Maintenance Building at Foothills Park, Capital Improvement Program (CIP) Project OS-07003 for a total not to exceed amount of $272,232; and Adoption of a Budget Amendment Ordinance for the Fiscal Year 2009 to Reappropriate $20,000 from CIP OS-00001 and $19,332 from CIP OS-09001 to CIP Project OS-07003 for a total of $39,332 . RECOMMENDATION Staff recommends that Council: 1. Approve Amendment No. 1 to Contract No. C08122241 with Rodan Builders, Inc and Authorize the City Manager or his designee to execute the Amendment No. 1 to Contract No. C08122241 (Attachment A) to add $39,332 for the renovation of the Open Space Maintenance Shop at Foothills Park, Capital Improvement Program (CIP) Project OS-07003, for a total contract amount not to exceed $272,232; and, 2. Approve a Budget Amendment Ordinance (Attachment B) for Fiscal Year 2009 to reallocate $20,000 from CIP-OS-00001 (Open Space Trails and Amenities) and $19,332 from CIP- 09001 (Off Road Trails and Pathways) to CIP Project OS-07003 (Open Space Maintenance Shop Rehabilitation) for a total of $39,332. DISCUSSION In April 2008, Council approved a contract with Rodan Builders, Inc., (CMR:189:08) for the renovation and improvement of the Open Space Maintenance Building at Foothills Park. Due to the building’s original 1968 barn-like construction, more work was required to improve the stability and structural integrity of the building that staff originally anticipated. Designs were also modified during construction to improve the energy efficiency of the building by adding supplemental bracing and insulation. These costs were not anticipated when the contract with Rodan Builders was approved by Council. In addition, during permitting and inspections of the project, additional work for accessibility, fire sprinkler and related electrical work was identified, which was not included in the original design and which exceeds the original contract amount. CMR:113:09 Page 2 of 2 RESOURCE IMPACT Additional funds for this project are available in the CIP Project OS-00001, Open Space Trails and Amenities and CIP Project OS-09001, Off Road Trails and Pathways. A Budget Amendment Ordinance in the amount of $39,332 is needed to cover the supplemental construction costs. Staff recommends transferring funds between three open space infrastructure projects so as to not impact other projects in the City’s Infrastructure Reserve. Staff will be deferring the replacement of a wooden bridge at Foothills Park in the amount of $19,000 and decreasing repairs for off road trails by 10 percent. POLICY IMPLICATIONS This recommendation does not represent any change to existing City policies. The proposed project is consistent with existing City policy, including Comprehensive Plan Policy C-26: Maintain and enhance existing park facilities. ENVIRONMENTAL REVIEW This project has been determined to have no significant effect on the environment and to be categorically exempt from review under the California Environmental Quality Act (CEQA) as repair and maintenance of existing streets and similar facilities pursuant to CEQA Guidelines, Section 15301 (c). ATTACHMENTS Attachment A: Amendment No. 1 to Agreement C08122241 Attachment B: Budget Amendment Ordinance Attachment C: Open Space Maintenance Shop Rehabilitation (OS-07003) Capital Improvement Project Description and Budget PREPARED BY:______________________________________________________________ LESTER HODGINS Supervisor, Open Space DEPARTMENT HEAD:________________________________________________________ GREG BETTS Interim Director of Community Services CITY MANAGER APPROVAL:_________________________________________________ JAMES KEENE City Manager ______________________________________________________________________________ CMR:147:09 Page 1 of 7 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: MARCH 2, 2009 CMR: 147:09 REPORT TYPE: PUBLIC HEARING SUBJECT: Adoption of the 2008/09 CDBG Annual Action Plan Amendment to the 2005-10 Consolidated Plan to Provide: (a) Pre-award Authorization to Expend $300,000 from the City’s 2009/10 CDBG Grant for Additional Site Acquisition Funding for the Affordable Housing Project at 488 West Charleston Road; and (b) An Additional Allocation to InnVision the Way Home for Homeless Shelter and Services of $80,000; Adoption of an Ordinance Amending the Budget for the Fiscal Year 2008-2009 to Provide an Additional Appropriation of $300,000 From the Residential Housing Fund for the Acquisition of 488 West Charleston Road and Development of the Site Into an Affordable Housing Project; and Approval of Two Contract Amendments with InnVision the Way Home to (1) Add $56,000 for Services at the Opportunity Center for a Total Not to Exceed Amount of $86,000, and (2) Add $24,000 for Services at the Clara Mateo Alliance Shelter for a Total Not to Exceed Amount of $59,000 EXECUTIVE SUMMARY Council action is requested to amend the City’s Annual CDBG Action Plan in order to provide an additional $80,000 in CDBG funding from Fiscal Year 2008/2009 to InnVision the Way Home to address an emergency funding gap in local programs providing shelter and supportive services to homeless persons; and an additional $300,000 in CDBG funding from fiscal year 2009/10 for the Tree House affordable housing project at 488 W. Charleston Road. The $300,000 for the Tree House project would first be paid from the City’s Residential Housing Fund, and then reimbursed from 2009/10 CDBG funding as soon as possible after the start of the July 1, 2009 program year. The contract amendments will provide InnVision the Way Home with a total of $80,000 in additional funding for homeless services in the current fiscal year. InnVision’s CDBG contract for services at the Opportunity Center will increase from $30,000 to $86,000, and their CDBG contract for services at the Clara Mateo Alliance Shelter will increase from $35,000 to $59,000. ______________________________________________________________________________ CMR:147:09 Page 2 of 7 The allocation of additional CDBG money to these projects will help the City meet its housing and community development goals; assist local non-profits in the provision of housing, shelter and supportive services to low-income persons; and help the City meet HUD’s timely expenditure standard for the CDBG program. RECOMMENDATIONS Staff recommends that the City Council: 1. Approve and authorize submittal to the Department of Housing and Urban Development (HUD) the attached 2008/09 Annual Action Plan Amendment to the 2005-2010 Consolidated Plan to authorize the pre-award expenditure of $300,000 in 2009/10 CDBG funds for additional site acquisition costs for the Tree House affordable housing project at 488 West Charleston Road; and an allocation of $80,000 in additional 2008/09 CDBG funds to InnVision the Way Home to fill an emergency funding gap in homeless supportive and shelter services. 2. Adopt the attached Budget Amendment Ordinance to provide an additional appropriation of $300,000 in interim funding from the City’s Residential Housing Fund for the Tree House project acquisition costs which will be reimbursed from 2009/10 CDBG funding when it is available. 3. Authorize the City Manager or designee to request $300,000 in fiscal year 2009/10 CDBG funds from HUD in order to reimburse the City’s Residential Housing Fund for the additional Tree House acquisition costs. 4. Approve and authorize the City Manager or his designee, to execute the attached contract amendments with InnVision the Way Home to allocate the additional CDBG funds to existing agreements as follows: a) to add $56,000 to the Opportunity Center for case management and supportive services for a total not to exceed amount of $86,000; and b) to add $24,000 to Clara Mateo Alliance Shelter for shelter and supportive services for homeless individuals and families for a total not to exceed amount of $59,000. InnVision operates both of these programs. BACKGROUND The City approved the 2008/09 CDBG Annual Action Plan of the 2005-2010 CDBG Consolidated Plan on May 5, 2008. Two changes are being proposed to the 2008/09 CDBG Action Plan: 1) pre-award notification that the City intends to expend $300,000 of its expected 2009/10 CDBG funding allocation within the current fiscal year to increase the City’s contribution to the “Tree House” Apartments project site acquisition costs; and 2) an emergency allocation of $80,000 in fiscal year 2008/09 CDBG funds to InnVision the Way Home to address an urgent funding shortfall in mid-peninsula programs that provide shelter and supportive services to the area’s homeless and low-income populations. The CDBG Citizens Advisory Committee unanimously voted to support the two proposed changes to the 2008/09 Annual Action Plan at their meeting on February 19, 2009. ______________________________________________________________________________ CMR:147:09 Page 3 of 7 DISCUSSION The CDBG Action Plan is proposed to be amended to provide funding for two projects, the Tree House Affordable Housing Project and InnVision the Way Home for homeless shelter and services. The amended 2008/2009 Action Plan for these two projects was circulated for public review for 30 days beginning January 30, 2009. No comments were received. The Tree House Affordable Housing Project: Tree House Apartments, L.P., a subsidiary of the Palo Alto Housing Corporation (PAHC), is in contract to purchase a 0.7 acre site at 488 West Charleston Road in Palo Alto for the purpose of developing 35 rental housing units affordable to extremely-low and very-low income households earning between 20% and 50% of the area median income. The total development cost of the project is anticipated to be $13.2 million. The project will include thirty-three (33) studio apartments and two (2) one bedroom apartments and an indoor common area to accommodate a recreation room, a lounge/library, laundry room, common bathroom, a resident service office and a management office. The total proposed floor area is 21,903 feet. At their March 16, 2009 meeting, the City Council will consider approval of a Mitigated Negative Declaration, architectural review and the adoption of an ordinance for a zone change to “Planned Community” for the Tree House project. At that meeting the Council will also consider the funding agreement for the project. Last year, PAHC approached the City seeking financial assistance for site acquisition, and submitted an application for funding from the City’s CDBG and housing development funds. The City Council approved 2008/09 budget allocations for a total of $2,538,577 for PAHC’s acquisition of the project site with $1,538,577 from 2008/09 CDBG funds and $1,000,000 from the City’s Residential Housing Fund. In the fall of 2008, PAHC requested additional financial assistance (Attachment C) in the amount of $300,000 from the City to help defray their out of pocket costs for sit acquisition. The estimated property acquisition costs of $2,865,000 are described below. Site Acquisition Costs Acquisition Price $2,850,000 Closing Costs 15,000 Total $2,865,000 Proposed Sources of Funds City of Palo Alto Residential Housing Fund $1,000,000 2008/09 CDBG Funding 1,538,577 2009/10 CDBG Pre-Award 300,000 Palo Alto Housing Corp. (Deposit) 26,473 Total $2,865,000 Due to HUD regulatory restrictions, CDBG funds cannot be used to pay for the costs of new housing construction, but are limited to land acquisition and a few very specific off-site improvements and pre-development expenses. In an affordable housing project, it is beneficial to use as much CDBG money as possible for the eligible land acquisition costs. This provides ______________________________________________________________________________ CMR:147:09 Page 4 of 7 greater flexibility with other funding sources that may not be as restrictive and can be used for other project costs. By providing the additional $300,000 in CDBG pre-award funds, the City will utilize its CDBG funding more effectively to subsidize the project’s development budget and allow for greater flexibility in other funding sources. HUD regulations also require that the City expend its CDBG funds in a timely manner or risk permanent funding reductions. In order to meet the timeliness requirement this year, the City must expend the funds for the acquisition of the Tree House project site by April 30, 2009. Escrow for the site acquisition will close as soon as possible after Council action on the City’s loan and regulatory agreements, which is tentatively scheduled for March 16, 2009. The additional $300,000 will be funded from the Residential Housing Fund, which will be reimbursed with 2009/10 CDBG funds after the grant agreement with HUD is finalized after July 1, 2009. InnVision the Way Home for Homeless Shelter and Services: InnVision is the current provider of support services and shelter for the local low-income and homeless population. Staffing and extensive support services are provided at the Opportunity Service Center (OSC) at 33 Encina Way in Palo Alto, and also at the Clara-Mateo Alliance (CMA) shelter located on the grounds of the Veterans Administration campus at 795 Willow Road in Menlo Park. Due to a combination of factors, including the downturn in the economy, a lack of ongoing, regular government funding, a surge in the number of people seeking services, and a decline in corporate and individual donations, InnVision is facing a budget shortfall in its mid-peninsula programs that may necessitate program cut-backs or even closures. The attached December 17, 2008 letter (Attachment D) from InnVision to the City Manager addresses the urgent issues facing the organization and local programs in the current fiscal year and requests emergency funding in the amount of $100,000 to help with a year-to-date budget shortfall of $500,000 in its mid-peninsula programs. To help raise funds, InnVision has: sent out appeals to major donors and the local faith community, soliciting private donations through urgent appeals and extensive media coverage; requested emergency funding from Santa Clara and San Mateo Counties, and the City of Menlo Park; requested an emergency rent reduction from the Veterans Administration; and discussed possible assistance from the Housing Authority of Santa Clara County. They have applied for an equity line of credit on unencumbered property, eliminated 2 key management positions, and reduced top salaries by 12.5%. They are planning a major fundraising event on the peninsula, and to yield cash savings, are attempting to arrange an equity share on their administrative headquarters in San Jose. Although these efforts have produced some positive results, the budget gap predicted for January to June 2009 is still significant enough to require reduced hours at the Opportunity Service Center and a possible total closure of the CMA shelter after March 2009. These two programs, with a combined annual budget of $2 million, are the only ones providing emergency shelter and extensive support services to low-income and homeless persons in the Palo Alto/Menlo Park area. InnVision states that past experience has shown private donations are not generated as ______________________________________________________________________________ CMR:147:09 Page 5 of 7 readily in the post-holiday period, and that additional funding for staffing in the current fiscal year is crucial for the continuation of these “safety net” services. The OSC has been operating for approximately two years at its current location at 33 Encina Way in Palo Alto. The hours of operation were increased from half day to full day when the center’s functions moved to Encina Way from its former site behind the Red Cross building. InnVision has not been able to generate sufficient on-going funding sources to meet the program’s operating budget. Although they have utilized an agency-wide unrestricted reserve fund to fill the OSC budget shortfall in the past, it is no longer possible due to the depletion of the fund. InnVision reports an agency-wide 20% increase in the number of people seeking housing and other services. The City of Palo Alto currently provides $30,000 and $35,000 in CDBG funding for operational expenses at the OSC and Clara Mateo Alliance respectively. Due to the restricted cap (15% of total grant plus CDBG program income) on public service funding, very little additional funding is available for allocation from CDBG funds on an on-going basis. However, due to an unusual and large influx of program income in the 2007/08 fiscal year from loan repayments from Palo Alto Gardens Apartments and the Sheridan Apartments, the public service cap for the current 2008/09 program year could be adjusted to increase spending in this category on a one-time-only basis by up to an additional $80,000. A maximum total of approximately $206,300 could be expended on public service projects in the 2008/09 fiscal year of which $126,300 has already been allocated leaving a balance of $80,000. Funds are available for allocation in the current fiscal year due to excess program income and the reallocation of funds from other projects. If the available funds are not used for a public service project this year, they will roll over for allocation to a capital project in fiscal year 2009/10. They could not, however, be used to address a public service need after June 30, 2009 due to the limitations on the public service cap for 2009/10. Additional funding on a one-time emergency basis will provide InnVision with time to increase private donor contributions and to develop stable, on-going funding sources for these crucial safety net programs. The additional money from the City of Palo Alto may also help InnVision leverage emergency funding from other local or governmental sources. The attached Amendments to two existing InnVision contracts (Attachments E and F) provide additional funding in the amount of $56,000 for a total not to exceed $86,000 for the Opportunity Service Center and $24,000 for a total not to exceed $59,000 for Clara Mateo Alliance. The additional funds would be used to pay on-site program staff salaries to continue the current levels of service. RESOURCE IMPACTS Currently, the 2008/09 budget includes a total of $2,538,577 to the Palo Alto Housing Corporation for acquisition of the Tree House project site, of which $1,538,577 will come from CDBG funds, and $1,000,000 will come from the Residential Housing Fund. A Budget Amendment Ordinance (BAO) is needed to transfer $300,000 from the Residential Housing Fund unallocated balance to the Tree House site acquisition account in the Residential Housing Fund. The Residential Fund would be replenished with 2009-10 CDBG funds. The $300,000 ______________________________________________________________________________ CMR:147:09 Page 6 of 7 interim loan would be needed from the City’s Residential Housing Fund from the date of the close of escrow (approximately April 1, 2009) and the reimbursement from HUD from 2009/10 CDBG funds (approximately late summer 2009). These changes would bring the City’s total contribution to $2,838,577 for the Tree House site acquisition with $1,838,577 from CDBG funds and $1,000,000 from Residential Housing Funds. The $300,000 transaction will reduce the unallocated Residential Housing Fund balance from $927,458 to 627,458. The $80,000 in CDBG funds for InnVision are currently available as unused funds reallocated from other projects. POLICY IMPLICATIONS The actions recommended in this report implement the City’s adopted Housing Element policies and programs supporting the development of very low and extremely low income housing. The 35 Tree House affordable units would be counted towards the City’s housing production goals for the 2007 to 2014 Housing Element period. Both of the actions identified in the proposed 2008/09 Action Plan Amendment are consistent with the City’s adopted 2005 – 2010 Consolidated Plan’s identified priorities of affordable housing and housing-related supportive services adopted by the City Council on May 9, 2005. ENVIRONMENTAL REVIEW Council approval of the 2008/09 Amended Action Plan, adoption of the Budget Amendment Ordinance, and allocation of additional CDBG funds to InnVision are exempt from the California Environmental Quality Act (CEQA) and the National Environmental Policy Act (NEPA) because allocation of funding is not considered a project under CEQA guidelines Section 15061(b)(3). For the Tree House Apartments project, a combined Initial Study/Mitigated Negative Declaration and Environmental Assessment/Finding No Significant Impact (EA/FONSI) has been prepared to satisfy the requirements of both the CEQA and NEPA and will be presented for Council approval with the development application on March 16, 2009. A completed environmental document was available for public review between December 12, 2008, and January 12, 2009. No public comments were received during this period. PREPARED BY: __________________________________ SUZANNE BAYLEY Contract CDBG Coordinator DEPARTMENT HEAD: __________________________________ CURTIS WILLIAMS, Interim Director Planning and Community Environment CITY MANAGER APPROVAL: __________________________________ JAMES KEENE City Manager ______________________________________________________________________________ CMR:147:09 Page 7 of 7 ATTACHMENTS A. Draft Amended 2008/09 Annual Action Plan B. Budget Amendment Ordinance C. Letter from Palo Alto Housing Corporation dated December 15, 2008 D. Letter from InnVision the Way Home dated December 17, 2008 E. Amended Agreement between the City of Palo Alto and InnVision the Way Home for the Opportunity Center F. Amended Agreement between the City of Palo Alto and InnVision the Way Home for the Clara Mateo Alliance Shelter COURTESY COPIES Palo Alto Housing Corporation InnVision the Way Home CDBG Citizens Advisory Committee City of Palo Alto COLLEAGUES MEMO DATE: March 2, 2009 TO: City Council Colleagues FROM: Mayor Drekmeier, Vice Mayor Morton and Council Member Burt SUBJECT: Clarification of Staff and Public Art Commission Roles in Approving Artwork at the Mitchell Park Library and Community Center. On November 10, 2008, Council passed a motion instructing Staff to evaluate the placement of the Bruce Beasley water sculpture originally proposed for California Avenue at the new Mitchell Park Library. The motion approved use of the One Percent for Art funds included in the library bond to fund the Beasley piece. The motion also included the direction to “have Mr. Beasley evaluate a piece for the Mitchell Park Library.” The wording of the motion has created some confusion concerning the roles the Council expects of Staff, the Public Art Commission and Mr. Beasley himself and the compatibility of the Council’s direction with the Palo Alto Municipal Code. Municipal Code Section 2.18.70 assigns to the Public Art Commission the responsibility both of “advising the City in matters pertaining to the quality, quantity, scope and style of art in public places” as well as of "advising the City regarding amounts to be expended on art in public places." However, the motion adopted on November 10 is not clear regarding the role of the Art Commission in this new project. To ensure that artistic decisions are made by those most skilled to make them, Section 2.26.060 of the Municipal Code states that “decisions on artistic matters pertaining to the Art in Public Places programs will be made by the City Staff and the Palo Alto Art Commission.” The Code explicitly states that the City Council will not exercise its independent judgment on artistic matters unless the City Council requests that the artistic matter be separately agendized. That section also directs the City Council to refer “questions, suggestions, complaints, and similar items pertaining to the Art in Public Places program to City Staff and the Public Art Commission for their review and response.” To clarify the Council’s intent, we request that the Council affirm its intent to abide by the Municipal Code with regard to the art at Mitchell Park and to instruct Staff and the Public Art Commission to evaluate engaging artist Bruce Beasley to create the centerpiece sculpture using an amount of the ‘One Percent for Art’ fund to be decided by the Public Art Commission.