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HomeMy WebLinkAbout2004-05-03 City Council Summary Minutes Special Meeting May 3, 2004 1. Public Employment .........................................................................354 ADJOURNMENT: The meeting adjourned at 7:20 p.m. .................................354 ORAL COMMUNICATIONS ........................................................................355 APPROVAL OF MINUTES ..........................................................................355 1. Ordinance 4824 entitled “Ordinance of the Council of the City of Palo Alto Amending Palo Alto Municipal Code Sections 16.52.040 and 16.52.130 of Chapter 16.52 Pertaining to Flood Hazard Regulations” ....356 2. Appointment of the Board of Directors of the Palo Alto Downtown Business and Professional Association (PADBPA) as the Advisory Board for the Downtown Palo Alto Business Improvement District (BID) .........356 3. The Amount of $67,710 for the Junior Museum Fire Sprinkler Installation – Capital Improvement Program Project PF04011 ..............356 4. Indemnity Agreement Between the City of Palo Alto and DME Properties .....................................................................................356 5. Ratification of Mayor’s Appointments to Stanford Liaison and Council/Council Appointed Officers Committees ..................................356 6. Public Hearing: The City Council will consider a request by Peter Baltay of TOPOS Architects, on behalf of Jeff and Mary Thomas, for a Site and Design application for the construction of a new 5,008 square-foot, two-story single-family residence on a 10-acre parcel (435,000 square feet) within the Open Space zoning district of which the total impervious surface area would be 11,350 square feet including a 6,851 square-foot asphalt driveway located at 3849 Page Mill Road. ......................................................................................357 05/03/04 97- 352 7. Public Hearing: The City Council will consider an application by Sunrise Development Inc. on behalf of Morris Page Mill, LLC for a Zone Change request for 2701 El Camino Real ......................................................361 8. Public Hearing: The City Council will consider adoption of the 2004/2005 Community Development Block Grant (CDBG) funding allocations (one year Action Plan) .....................................................370 COUNCIL COMMENTS, QUESTIONS, AND ANNOUNCEMENTS ........................372 ADJOURNMENT: The meeting adjourned at 10:35 p.m. ...............................372 05/03/04 97- 353 The City Council of the City of Palo Alto met on this date in the Council Chambers at 6:00 p.m. PRESENT: Beecham, Burch, Cordell, Freeman, Kishimoto, Kleinberg, Morton (arrived at 6:30 p.m.), Mossar, Ojakian CLOSED SESSION 1. Public Employment Position: City Attorney Authority: Government Code Section 54957 The City Council met in Closed Session to discuss matters involving public employment as described in Agenda Item No. 1. Mayor Beecham announced there was no reportable action. ADJOURNMENT: The meeting adjourned at 7:20 p.m. 05/03/04 97- 354 Special Meeting May 3, 2004 The City Council of the City of Palo Alto met on this date in the Council Chambers at 7:30 p.m. PRESENT: Beecham, Burch, Cordell, Freeman, Kishimoto, Kleinberg, Morton (arrived at 8:05 p.m.), Mossar, Ojakian ORAL COMMUNICATIONS Jeff Levinsky, 1682 Hamilton Avenue, spoke regarding the library. Sylvia Smitham, 2514 Birch Street, spoke regarding more “walk” signs at California Avenue crosswalks. Paul F. Garrett, 890 California Avenue, spoke regarding the DNAX sign. Eugene Bradley, 965 E. El Camino Real #B6, spoke regarding a Valley Transportation Authority/Caltrain issue. Debra Griffin, on behalf of Stevenson House, 455 E. Charleston Road, spoke regarding Council’s consideration of their project. Anne Marquart, Executive Director of Project Sentinel, spoke regarding an art contest. APPROVAL OF MINUTES MOTION: Vice Mayor Burch moved, seconded by Kishimoto, to approve the minutes of March 29, 2004, as submitted. MOTION PASSED 8-0, Morton absent. CONSENT CALENDAR Council Member Freeman asked if the language on page 4 of the Ordinance to staff report (CMR:249:04) gave the Floodplain Administrator the right to choose the appraiser or the depreciation formula rather than the applicant. Senior Engineer Joe Teresi said the applicant had the choice. The Floodplain Administrator reviewed the appraisal to ensure that it had been completed in accordance with the correct methodology. 05/03/04 97- 355 Council Member Freeman asked the Interim City Attorney if the language was legal. Interim City Attorney Wynn Furth said it was legal. MOTION: Vice Mayor Burch moved, seconded by Mossar, to approve Consent Calendar Item Nos. 1 through 5. LEGISLATIVE 1. Ordinance 4824 entitled “Ordinance of the Council of the City of Palo Alto Amending Palo Alto Municipal Code Sections 16.52.040 and 16.52.130 of Chapter 16.52 Pertaining to Flood Hazard Regulations” (1st reading 04/12/04, Passed 5-3, Cordell, Freeman, Morton, “no,” Kleinberg absent) 2. Appointment of the Board of Directors of the Palo Alto Downtown Business and Professional Association (PADBPA) as the Advisory Board for the Downtown Palo Alto Business Improvement District (BID) Resolution 8416 entitled “Resolution of the Council of the City of Palo Alto Appointing an Advisory Board and Directing the Preparation of a Report for Fiscal Year 2004-05 in Connection with the Downtown Palo Alto Business Improvement District” ADMINISTRATIVE 3. The Amount of $67,710 for the Junior Museum Fire Sprinkler Installation – Capital Improvement Program Project PF04011 4. Indemnity Agreement Between the City of Palo Alto and DME Properties 5. Ratification of Mayor’s Appointments to Stanford Liaison and Council/Council Appointed Officers Committees MOTION PASSED 8-0, Morton absent. UNFINISHED BUSINESS 6. Public Hearing: The City Council will consider a request by Peter Baltay of TOPOS Architects, on behalf of Jeff and Mary Thomas, for a Site and Design application for the construction of a new 5,008 square-foot, two-story single-family residence on a 10-acre parcel 05/03/04 97- 356 (435,000 square feet) within the Open Space zoning district of which the total impervious surface area would be 11,350 square feet including a 6,851 square-foot asphalt driveway located at 3849 Page Mill Road. Approval of a Mitigated Negative Declaration is requested in accordance with California Environmental Quality Act (CEQA) Guidelines (Item continued from April 19, 2004) *This item is quasi-judicial and subject to Council's Disclosure Policy Council Members Freeman, Kishimoto, and Ojakian said they had visited the property. Council Member Kleinberg said she had visited the site and had a lengthy discussion with one of the Planning and Transportation Commissioners but did not finalize her views on the matter. Project Planner Chris Riordan gave a presentation on the material outlined in staff report (CMR:199:04) Council Member Kishimoto said the Williamson Act was equivalent to Open Space District (OS). The zoning law allowed 30,000 square foot houses and parcels to qualify for property tax reduction. She asked if the Williamson Act specified what the minimum parcel size was to qualify for tax benefits and if the property owners qualified for tax exemptions. Director of Planning and Community Environment Steve Emslie said tax entitlement had not been calculated but there would be a substantial property tax reduction. Should the contract terminate early; property owners would be liable for any tax reductions. Council Member Kishimoto asked if the property was subdivided when the Williamson Act was signed. Mr. Emslie said it was not. Council Member Kishimoto asked if there had been discussions of changing the Williamson Act. Interim City Attorney Furth said she had not seen any records on that. The parcel was smaller than what was permitted under the state standards for the Williams Act contract. State standards were adopted in the mid-1980s, and the land was subdivided in the 1970s. The contracts dated back to 1970s. The property owner had the right to send a “notice of non-renewal” each year, and the City could also decide whether to extend the contract for an additional year. 05/03/04 97- 357 Council Member Freeman asked whether it was part of the Zoning Ordinance Update (ZOU) to apply the Williamson Act exceptions on a development of this size. She felt the tax exception benefits were inappropriate during hard economic times when property taxes were needed for the schools. Mr. Emslie said the Williamson Act was a separate contract between the property owner and the City. The ZOU reviewed OS uses to determine proper development standards. Zoning did not supersede the Williamson Act contract. Ms. Furth said, every fall, the Council reviewed Williamson Act contracts to determine whether they were to be extended or not. Unless a written "notice of non-renewal” was issued by the owner 90-days prior to the renewal date, or by the City at least 60-days prior to the renewal date, the contract would be considered renewed and would be extended for another rolling 1-year on the ten-year term. She would need to verify when the City executed the contract. Council Member Freeman asked when could the contract be brought forward to Council with a 60-day timeframe to determine continuation of the contract and to consider tax revenue loses from large homes. Mayor Beecham said staff could be directed during the meeting to bring contracts forward for discussion, but could not discuss the policy that evening since it had not been agendized. Mayor Beecham declared the Public Hearing open at 7:56 p.m. Peter Baltay, principal architect of TOPOS Architects, Palo Alto, said the project had great environmental impacts. The project was designed to minimize the impacts and great measures had been taken to minimize removal of trees. When Jeff and Mary Thomas purchased the property they were completely unaware of the Williamson Act or its ramifications and had no intensions of evading property taxes. They supported Councils concerns regarding property taxes, but felt it was unfair to hold the owners hostage to the issue. Herb Borock, P.O. Box 632, stated in staff’s annual report, dated October 14, 2003, stated that a number of properties in the subdivision were developed and one of the ten acres was deleted from the Williamson Act for the location of the house. It should be noted that a claim was made on the Williamson Act contract that the original 95 acres applied to anything on the OS District and multiple properties and that one-acre was deleted to cover development of a house. By deducting the access road (Shotgun Lane) 05/03/04 97- 358 under the subdivision ordinance, meant it was less than ten acres of developable parcel. Since the site had been approved for a house, a condition should be made that a house cannot be build on parcels less than 10 acres. Mayor Beecham declared the Public Hearing closed at 8:05 p.m. Planning and Transportation Commissioner Michael Griffin, Chairperson, said the P&TC approved the project unanimously with seven new conditions that were approved as listed in staff report (CMR:199:04). Council Member Freeman asked if it was legal for Council to approve the request since “cumulative considerable impacts” were not checked nor documented in the California Environmental Quality Act (CEQA) Report. Mr. Riordan said staff did discuss “cumulative considerable impacts” and was mentioned in the section entitled “Mandatory Findings of Significance” of the report. He assured the impacts would be checked in the final report to the County. Council Member Freeman asked how cumulative impacts were reviewed. Mr. Emslie said a variety of factors went into the analysis. A site location minimizing visual intrusion on the hillside, structure location in a natural environment, hydrology, soil conditions and the proximity of the structure to recent developments in the area were taken into consideration. Council Member Freeman asked if the parcel was less than ten acres. Mr. Riordan said the road was an easement and was not included in the calculation of the lot area. He confirmed it was a ten-acre parcel. MOTION: Council Member Kishimoto moved, seconded by Ojakian, to approve the staff and Planning and Transportation Commission recommendation to approve the Mitigated Negative Declaration (Attachment B of CMR199:04) for 3849 Page Mill Road, with a finding that the project will not result in significant environmental impacts; and approve the Site and Design Review application to construct a new single-family residence on ten acres with the Open Space Zoning District. The recommendation for approval is based upon the findings and subject to the conditions in the Record of Land Use Action (Attachment A). Action No. 2004-01 entitled “Record of the Council of the City of Palo Alto Land Use Action for 3849 Page Mill Road: Site and Design Review 05/03/04 97- 359 03-D-03 and Environmental Impact Assessment 03-EIA-04 (Topos Architects, Applicant) Council Member Kishimoto raised concerns regarding the Williamson Act, with respect to more paving of access roads in the OS zone and growth inducing and construction impact. Council Member Ojakian raised concerns regarding the lighting plan but knew it would be addressed, and he supported the motion. MOTION PASSED 9-0. MOTION: Council Member Kishimoto moved, seconded by Freeman, to direct staff to bring back an analysis of current Williamson Act contracts with an appropriate timeline for the purpose of allowing Council to make a decision to renew Williamson Act contracts with special attention to sites smaller than 40 acres and those not in active agriculture use. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER that the analysis also include tax implications under the Williamson Act. Council Member Kleinberg had concerns regarding the review of the Williamson Act for potential tax dollars rather than the preserving the Green Belt, historical values, and principles honored by the community through the Act. INCORPORATED INTO THE MOTION WITH CONSENT OF MAKER AND SECONDER that the item be referred to Policy and Services Committee. SUBSTITUTE MOTION: Council Member Mossar moved, seconded by Kleinberg, to refer issues regarding the Williamson Act for discussion of policy review by the Policy and Services Committee. Mayor Beecham did not support the motion since the issue would be returning to Council in the fall for review Vice Mayor Burch said when the item returned in the fall, the Williamson Act would be reviewed not only for tax advantages to the City but also on issues raised by his colleagues. Council Member Mossar withdrew the substitute motion. SUBSTITUTE MOTION WITHDRAWN BY THE MAKER 05/03/04 97- 360 Council Member Morton did not support the motion. MOTION FAILED 2-7, Freeman, Kishimoto “yes.” PUBLIC HEARINGS 7. Public Hearing: The City Council will consider an application by Sunrise Development Inc. on behalf of Morris Page Mill, LLC for a Zone Change request for 2701 El Camino Real from Neighborhood Commercial (CN) and High Density Multiple-Family Residence District (RM-40) to a Planned Community District for the construction of a four-story 63,500-square-foot senior assisted living facility with 81 units, one level of underground parking (44 spaces) and associated site improvements. Environmental Assessment: A Mitigated Negative Declaration has been prepared for this project Council Member Freeman stated she could not participate in the item due to a conflict of interest because of property ownership at 410 Sheridan Avenue that was within 500 feet of location for the Sunrise development. Planning Director Steve Emslie summarized the analysis of the land use proposal. The application represented rezoning a parcel from the Neighborhood Commercial (CN) and High Density Multiple-Family Residence District (RM-40) to a Planned Community District (PC). Changes were based on several factors. The project served to further meet the needs of City’s housing goals and production requirement of the Housing Element in the Comprehensive Plan. In addition to Market Rate Housing, it provided 12 Below Market Rate (BMR) units. The units provided lower unit rents for a variety of income range. Four units for very low income of $36,000 per year; four units for lower income of $44,000 per year, and four units for low income of $59,000. Income levels were based on accepted industry and housing standards based on countywide median incomes not specific to Palo Alto. In addition to the reduced rent, assisted living services were also calculated and capped at below income levels. Staffed viewed the services as a very strong public benefit providing stable and predictable housing for the elderly population. The project provided housing for the aging population to include senior housing opportunities within the community so ties could remain with family and community contacts in the City. A regional survey found an extremely low or zero vacancy rates with a waiting list. The average vacancy rates were less than 10 percent. The CN zone allowed numerous uses without minimal review at a design level that produced more traffic than anticipated by the assisted living project. Parking would match the intensity of the use since many of the residents did not drive or own vehicles. 05/03/04 97- 361 Associate Planner Russell Reich gave a summary of the major aspects of the proposal as outlined in staff report (CMR:243:04) Planning and Transportation Commission Chairman Michael Griffin said the P&TC felt there was a need for senior housing in Palo Alto. The proposed uses would be a low traffic generator. The P&TC held three hearings and the applicant addressed a number of the neighbors complaints, such as noise potential, height of the project adjacent to other buildings, and placement of building on the site. A condition was added to the evaluation or the parking situation for six months after the facilities opened. Based on parking conditions, a two-hour parking zone could be established along Sheridan Avenue. Anticipated trip distribution routes were discussed in the Fehr & Peers transportation consultant’s memorandum and in the Institute of Transportation Engineers (ITE) report outlined in staff report (CMR:243:04) Council Member Cordell asked if the BMR units were based on Countywide median incomes and not specific to Palo Alto, and were they based on retired persons. Mr. Emslie said no. It was based on an aggregate of the total County and not of special needs. Council Member Cordell said if they were based on the median income of retired persons, were incomes considerably lower than the Countywide median income. Council Member Cordell referred to Joy Ogawa’s correspondence and wanted to know who were the owners of Sunrise Development Inc. Mr. Emslie said the applicant provided proof of site control and property ownership, which were sufficient for proceeding with the application. Council Member Cordell asked if traffic impacts included employees working at the facilities. Mr. Emslie said the sum total of trips included visitors, residents and employees. Council Member Cordell asked since the applicant agreed to provide preferential residency to Palo Alto residents, would it be acceptable to add the condition to the project. If not, was there a way to give preference to Palo Alto residents. Mr. Emslie said mutual agreements could be included as conditions. They 05/03/04 97- 362 would not be held to those conditions if a change were to be made at a later date. Council Member Mossar questioned how a two-hour parking zone would cure a potential parking problem in the area. Mr. Reich said the public had issues regarding employees from local businesses parking along Sheridan Avenue during the day. A two-hour limitation would free up the parking for visitors. Council Member Mossar said residents in the area found two-hour parking to be a problem. Mr. Reich said residential projects were well parked with very little on-street parking during early morning and evening hours. Mr. Emslie said it was not a mandate to change the parking but a study would be completed after the project was established. Council Member Kleinberg asked why the residents on the dementia floor were not included in BMR units. Mr. Emslie said the level of care for dementia residents moved from residential to clinical or medical care. It was difficult to quantify and provide long-term stability since the needs and care varied greatly. Council Member Kleinberg questioned why the P&TC passed a recommendation to conditionally certify the Mitigated Negative Declaration (MND), although there were certain assumptions about travel and transportation that were not completely determined. She felt it was a backdoor approach of approving a MND. Ms. Furth said the P&TC recommended that Council act on an environmental document. Since it was a conditional approval that requested further documentation for Council’s decision, Council could evaluate both the P&TC’s recommendation in the light of what they knew and the recommendation in the light of further information. Because the added information did not identify new difficulties, she did not find the approach to be a problem. Council Member Kleinberg asked how Council could rely on recommendations made by any of the commissions when the process was so loose. Ms. Furth said the Council should look at their discussion and determine whether sufficient information was provided. Recommendations with 05/03/04 97- 363 insufficient information could always be referred back to the P&TC . Council Member Morton stated for the record that his office was located at 385 Sherman Avenue, which was not 500 feet from the project and had no economic interest in the building. He asked if a two-hour parking zone were established along Sheridan Avenue, where would those vehicles go to park since this was the only unrestricted parking in the area. Mr. Emslie said a study had not been completed. Staff felt the parking on- site would be adequate for the need because of the low parking demand generated by the use. As a fallback measure, the P&TC would conduct an analysis that would involve origins of the vehicle and determine the amount of employee parking. The P&TC would report back within six months after the project was completed. Council Member Kishimoto referred to Council Member Kleinberg’s concern and said it would be helpful to the Council if the summary had indicated that P&TC made a conditional approval and further analysis would be completed. In referring to John K. Abraham’s correspondence regarding noise levels she asked why a State of California Building Code (SBC) interior noise analysis was not submitted on the project. Mr. Reich said the noise consultant had prepared a response to Mr. Abraham’s comments but not timely enough to get into Council’s packet. There was a condition of approval that interior noise not exceed a specific level. It was not required as a mitigation but the building permit required it be met. Mayor Beecham declared the Public Hearing open at 8:52 p.m. Daniel Zemanek, Senior Vice President of Sunrise Development, Inc., gave a summary of the BMR Program and related assisted living public benefits as described in the attachment to staff report (CMR: 243:04). Roger V. Smith, 425 Grant Avenue, #27, supported the project. He, as a 30-year resident of Palo Alto, would like to remain in Palo Alto should he require assisted living services. The project was located to all public transportation systems, accessible to the employees and no parking required. Palo Alto could benefit from hotel taxes when residents’ families came to visit. John K. Abraham, 736 Ellsworth Place, requested that the SBC noise analysis be included in the MND making it mandatory for compliance. 05/03/04 97- 364 Bob Cutler, 435 Sheridan Avenue, #303, supported the project. He confirmed that parking was an issue on Sheridan Avenue due to employee usage. He felt the two-hour parking limitation would create a problem for residents with an extra car. Joe Villareal, 360 Sheridan Avenue, spoke regarding a parking problem on Sheridan Avenue. He suggested the project entrance be made from El Camino Real instead of Sheridan Avenue to discourage parking in the area. Robert Moss, 4010 Orme Street, spoke regarding health hazards to occupants due to underground water causing indoor air contamination. He suggested imposing three additional conditions: 1) have an impervious air tight barrier between the ground and underground of the garage, 2) require indoor air samples to prove that barrier was effective after building was constructed; and 3) require Well F-40A be protected during construction with no driveway impingements. Angelica Volterra said there was insufficient documentation on traffic impacts and a traffic analysis was needed to accurately disclose the traffic impacts. She felt the project should not be approved and the MND not certified until accurate and adequate documentations were made of the true traffic impacts. Chuck Marsh, 2557 Park Boulevard, had concerns regarding the traffic impacts but felt there were no practical alternatives for the site that would not result in traffic and parking impacts. He supported the project and urged the Council to approve the project. Joy Ogawa, Yale Street, spoke regarding the rezoning of the property and BMR units. The project was twice the square footage allowed under current Neighborhood Commercial Zoning (CN). The BMR contribution did not meet the minimum requirements of Palo Alto’s BMR program. She asked that the BMR program be implemented correctly. Viviana Tul, 410 Sheridan Avenue, supported the project. She felt the senior assisted living combined with BMR units was a good public service to the community. Lynn Chiapella, 631 Colorado, said applicants should adhere to the 15 percent BMR requirement. Conditions should be included to provide on-site parking for employees and visitors. Mayor Beecham declared the Public Hearing Closed at 9:33 p.m. 05/03/04 97- 365 MOTION: Council Member Morton moved, seconded by Burch, to approve the staff and Planning and Transportation Commission recommendation to approve the Planned Community for 2701 El Camino Real and the environmental document by approving the draft Planned Community Ordinance and exhibits (Attachment A of CMR:243:04). The draft Ordinance describes the permitted uses and site development regulations, and includes both Findings for Approval and a certification of the Mitigated Negative Declaration in accordance with the California Environmental Quality Act (CEQA). Ordinance 1st Reading entitled “Ordinance of the Council of the City of Palo Alto Amending Section 18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Change the Classification of Property Known as 2701 El Camino Real From CN and RM-40 to PC Planned Community _____” Council Member Morton questioned the 15 percent BMR units and asked whether it was 15 percent of the residents or 15 percent of the units. Mr. Emslie said the BMR calculation was based on residents. It was staff’s decision to use that as a guide to implement the BMR agreement. That was the package the developers agreed to and signed. Council Member Morton clarified it was 12 residents that were agreed upon even though it was a lower percentage than the project population of 97. Mr. Emslie said that was correct. Council Member Morton said there were cases in assisted living where a patient could go from one type of unit to another. He asked with regard to a dementia care resident that qualified for a BMR unit, was there a guarantee that they would receive continued care through the normal process. He felt it was fair that if a resident qualified for a BMR unit, then they should qualify for a full paying resident. Mr. Emslie said it was not included in the package. Staff felt the BMR program was a strong package that accommodated both the needs of low- income renters and consumers of the services. The package outweighed the inclusion of the dementia care. Interim City Attorney Wynne Furth explained the reason why dementia care was excluded from the package was because the agreement was a BMR housing program and not a BMR assisted living program. When medical care was required as in a dementia ward, it was added services classified as 05/03/04 97- 366 medical and not services included in assisted living housing. Council Member Morton said he was concerned about the 15 percent BMR program requirement that developers needed to meet and yielded to the lower side ending with 12 residents. He supported the project, but would have liked to see the number raised to 14. Vice Mayor Burch said many people lived alone in Palo Alto and had no other options. There was a great need for the development and the facility was a valuable service to the community. It would free up housing and enabled other families to move into Palo Alto. Council Member Mossar asked if the project had on-site parking for employees and visitors. Mr. Emslie said yes. Council Member Mossar asked whether it was a condition of approval to have on-site parking for employees. Mr. Emslie said it was not explicit but could be. Council Member Mossar suggested an amendment for on-site parking for employees be dedicated in a condition of approval. Council Member Morton asked if it was to override the visitor parking. Council Member Mossar said no. It would be to provide available parking for all facility employees at all times. Ms. Furth stated 23 spaces shall be available for employee parking as approved by the Director of Planning. INCORPORATED INTO THE MOTION WITH CONSENT OF THE MAKER AND SECONDER that Ordinance Section 6 (a) (iv) be changed to add to the end of the sentence, “23 spaces or such lesser number as the Director of Planning and Community Environment shall approve shall be reserved for the use of employees.” Ms. Mossar asked if staff had a response to Mr. Moss’s issue regarding ground water contamination. Mr. Emslie said the applicant prepared a soil and toxic report. It was reviewed by the Regional Water Quality Control Board and concluded there 05/03/04 97- 367 was not a concern. With Council’s direction, staff would do a follow up on the suggested conditions. The Fire Department and building officials would need to review the conditions prior to incorporating them into the project design. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER that a condition be added that would require the review of suggested mitigated measures for toxic issues on water and emission seepage. Council Member Cordell felt the 22 percent traffic increase was based on faulty methodology. She said the logical route was from Highway 101, Oregon Expressway, to Page Mill Road and not Highway 101, exiting on to San Antonio Road and north on the El Camino Real. She asked the Planning Commission to revisit and use the correct methodology and provide corrected traffic increases. She could not provide cases to support her conclusion but felt she was correct. She also questioned why BMR’s were not based on the immediate incomes of retired persons, which were lower than the levels that were projected. Mr. Emslie said the traffic distribution assumptions were modified to reflect more heavy use on Oregon Express Way and Page Mill Road. The BMR agreement included a table to adjust income. The Countywide income were the maximums and would use 17 different factors to adjust the income to fit retirees. Chief Transportation Official Joe Kott said the analysis outlined in the April 19, 2004, Fehr & Peers Transporation Consultants memorandum was adequate. Council Member Ojakian said he could not recall any other senior housing project in Palo Alto that required BMR units. He asked if BMR units were part of the negotiation for the public benefits. Mr. Emslie said the assisted living units in the BMR units were limited to the rent. One of the reasons that staff included the services component was because rents could be controlled but actually became a small percentage of the monthly charge. To his knowledge there only had been rent subsidies, but services had never been included in BMR units. Council Member Ojakian asked about the environmental issue addressed by Mr. Moss, “if other buildings had been built in the area since plume had been determined to have toxic waste.” 05/03/04 97- 368 Mr. Emslie replied within the last eight years there had been recent construction adjacent to the site. Council Member Ojakian said regarding the traffic impact, he recalled the original data used was completed on visits to three of the sites and the new data was actually using the standardized method, which was the Transportation Impact Analysis (TIA). Mr. Emslie said that was correct. The Institute of Transportation Engineers (ITE) did not have a trip generation rate for this use. The rates were based on actual observations. Council Member Ojakian supported the motion and did not see a problem with parking or traffic. In regard to the toxic water situation, he was aware of projects that had been built in the area with underground garages having mitigated situation. He commended the public benefit and felt by adding the services to the BMR units there was a significant benefit. Council Member Kleinberg raised concerns about the toxic water issue and asked whether there were any measures to reduce the likelihood of seepage. She had reservations regarding traffic issues but supported the motion. Mr. Emslie recommended adding a condition requiring a review of suggested mitigated measures for toxic issues. Council Member Kishimoto echoed Council Member Cordell’s concerns regarding the faulty methodology used to determine traffic impact. She asked the project provide fully paid transit passes through the Eco-Pass program. She supported the project. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER that the project shall offer and provide fully paid transit passes through the Eco-Pass program. AMENDMENT: Council Member Morton moved, seconded by Cordell, to raise the Below Market Rate (BMR) occupancy to either 15 percent of units or 14 residents. Council Member Morton said his reason for raising the BMR units from 14 to 15 percent was because many of the long-time Palo Alto residents and their parents would need the services. Mr. Emslie said it would require renegotiations with the applicant and revising the financial portion of the agreement. 05/03/04 97- 369 Council Member Cordell said she supported the project and asked if the applicant would give special preference to Palo Alto residents. Mr. Zemanek said yes. Mayor Beecham opposed raising the BMR requirements to 15 percent. He said every other BMR setup required subsidized capital. The agreement was to not only subsidize the construction, but to continue subsidizing the services. Vice Mayor Burch opposed rising the 15 percent requiring. AMENDMENT FAILED: 2-6, Cordell, Morton “yes,” Freeman “not participating.” INCORPORATED INTO MOTION BY THE MAKER AND SECONDER that there be preference given to Palo Alto residents for Below Market Rate and Market Rate units to the extent permitted by Federal and State law. Ms. Furth addressed Council Member Cordell’s concerns regarding faulty methodology used to determine traffic impact. Palo Alto gave advisory bodies more responsibility than the law required in reviewing environmental documents. The law only required that the advisory bodies review drafts of MNDs and Environmental Impact Reports (EIR). The P&TC felt they had sufficient information to recommend approval to Council, but asked staff to give more detailed response to the concerns in order to provide Council with a higher level of assurance. MOTION PASSED: 8-0, Freeman “not participating.” 8. Public Hearing: The City Council will consider adoption of the 2004/2005 Community Development Block Grant (CDBG) funding allocations (one year Action Plan) Planning Manager Julie Caporgno, gave an overview of the recommendations regarding Community Development Block Grant (CDBG) funding allocations outlined in staff report (CMR:239:04). Jeff Rensch, Citizens Advisory Committee (CAC), provided a brief statement on the CDBG funding recommendation, that included the $30,000 decreased in Housing Development Fund. Mayor Beecham declared the Public Hearing open at 10:30 p.m. 05/03/04 97- 370 John Holland, Chief Operating Officer at InnVision, 974 Willow Street, San Jose, said InnVision and the Urban Ministry had merged services two years ago due to budget cuts. InnVision had been in service for 31 years and the Urban Ministry for 27 years. The funding that they received was about 30 percent of the originally request due to County budget cut impacting social service providers. He urged Council to continue working with social services for creative solutions to help address operations cost. Sally Probst, 735 Coastland Drive, spoke regarding affordable housing and using CDBG funds to help acquire a site for affordable housing. She urged Council to follow through with the Department of Housing and Urban Development (HUD) requirements to expedite the project. Mayor Beecham declared the Public Hearing closed at 10:35 p.m. Council Member Morton stated he would not participate in the portion of the item relating to Urban Ministry and Project Sentinel because his firm had been auditors for applicants in those organizations, but he would support Community Development Block Grant (CDBG). MOTION: Vice Mayor Burch moved, seconded by Kleinberg, that the Finance Committee recommends to the City Council regarding the Proposed Fiscal Year 2004-05 CDBG Funding Allocations and Draft Action Plan approval of the following: 1. Allocate CDBG funding as recommended by staff and the Citizens Advisory Committee (CAC) in the final 2004/05 Action Plan update to the Consolidated Plan for the period 2000 to 2005. 2. Commit CDBG funds to repay the General Fund for a portion of the CDBG-eligible site acquisition costs in connection with a new affordable housing project if a site can be identified and acquired in 2004-2005. 3. Authorize staff to submit the 2004/05 Action Plan to the Department of Housing and Urban Development (HUD) by the May 15, 2004 deadline. 4. Authorize the City Manager, on behalf of the City, to execute the 2004/05 application and Action Plan for CDBG funds and any other necessary documents concerning the application, and to otherwise bind the City with respect to the application and commitment of funds. 05/03/04 97- 371 Further, the addition of a $30,000 grant to Economic and Social Opportunities (ESO) be reviewed mid-fiscal year and, if the funds are proven to have been usefully spent, an additional $30,000 could be spent in the balance of the year. The Council would consider funding at a higher level for the second half of the year. Funding would come from the Housing Fund. Resolution 8417 entitled “Resolution of the Council of the City of Palo Alto Approving the Use of Community Development Block Grant Funds for Fiscal Year 2004-2005” MOTION PASSED 8-0, Freeman absent. Council Member Kleinberg responded to Mr. Holland’s comment and said Council was aware of the diminishing amount of money from public coffers for public and non-profit services but Council did not have the resources to provide the assistance they were seeking. COUNCIL COMMENTS, QUESTIONS, AND ANNOUNCEMENTS Vice Mayor Burch thanked staff for their success on the May Fete Parade. ADJOURNMENT: The meeting adjourned at 10:35 p.m. ATTEST: APPROVED: City Clerk Mayor NOTE: Sense minutes (synopsis) are prepared in accordance with Palo Alto Municipal Code Sections 2.04.180(a) and (b). The City Council and Standing Committee meeting tapes are made solely for the purpose of facilitating the preparation of the minutes of the meetings. City Council and Standing Committee meeting tapes are recycled 90 days from the date of the meeting. The tapes are available for members of the public to listen to during regular office hours. 05/03/04 97- 372