Loading...
HomeMy WebLinkAbout2007-05-14 City Council Summary Minutes 05/14/2007 101-499 Special Meeting May 14, 2007 STUDY SESSION....................................................................................501 1. Stanford Shopping Center: Review of the Conceptual Plans and Status for the Expansion of the Stanford Shopping Center............................501 2. Stanford Medical Center: Review of the Update of the Stanford Medical Center Area Plan and Conceptual Plans for the Expansion and Modernization of the Medical Center ................................................501 ORAL COMMUNICATIONS.......................................................................502 CONSENT CALENDAR.............................................................................502 3. Approval of a Lease Amendment to Relocate from 1003 Elwell Court to 1005 Elwell Court and to Extend the Term for 1005 and 1007 Elwell Court to 2013...............................................................................502 5. Approval of Amendment No. 2 to Management Agreement with Brad Lozares for Golf Professional Services at 1875 Embarcadero Road, Palo Alto ............................................................................................502 6. Approval of a First Amendment to Lease for 300 Hamilton Avenue, Suite B, to Exercise Second Option to Extend....................................502 7. Approval of Amendment No. 2 to Lease with the Elizabeth Gamble Garden for Property Located at 1431 Waverley Street, Extending the Term for Twenty Years ..................................................................502 8. Ordinance 4946 entitled “Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 2006-07 to Provide an Additional Appropriation of $121,000 from the Infrastructure Reserve into Capital Improvement Program (CIP) Project Number PL-02005, El Camino Real/Ventura Intersection Improvements”......................................................503 05/14/2007 101-500 9. Recommendation from the Historic Resources Board at the Request of Aida Merrill, Owner, to Reclassify a Category 4 Building on the City of Palo Alto’s Historic Inventory to Category 2 Pursuant to Municipal Code Chapter 16.49 at 564 University Avenue ..........................................503 10. Agenda Number Intentionally Not Used............................................503 10A. (Old Item No. 4) 1st Reading - Adoption of an Ordinance Amending Section 18.08.040 of the Palo Alto Municipal Code (the Zoning Map) to Change the Classification of Property known as 3401, 3415 and 3445 Alma Street from PC Planned Community 1362 to PC Planned Community _____...............................................503 11. Roth Building, 300 Homer Avenue – Reject $300,000 Contribution Condition - Approval of Option Agreement and Lease, and Consideration of Addendum to the Environmental Impact Report (EIR) for the South of Forest Area Coordinated Plan...................................511 12. Resolution 8711 entitled “Resolution of the Council of the City of Palo Alto Appointing a Council Member to the Boards of the Bay Area Water Supply and Conservation Agency and the San Francisco Bay Area Regional Water System Financing Authority”.....................................517 COUNCIL COMMENTS, ANNOUNCEMENTS, AND REPORTS FROM CONFERENCES .............................................................................517 FINAL ADJOURNMENT: The meeting adjourned at 12:01 a.m. .....................517 05/14/2007 101-501 The City Council of the City of Palo Alto met on this date in the Council Chambers at 6:05 p.m. Present: Barton, Beecham, Cordell (arrived 7:00 p.m.), Drekmeier, Kishimoto, Klein (arrived 7:00p.m.), Kleinberg, Morton Absent: Mossar City Attorney Baum noted Council Members Cordell and Klein would not be able to participate in the Study Session due to conflicts. STUDY SESSION 1. Stanford Shopping Center: Review of the Conceptual Plans and Status for the Expansion of the Stanford Shopping Center 2. Stanford Medical Center: Review of the Update of the Stanford Medical Center Area Plan and Conceptual Plans for the Expansion and Modernization of the Medical Center City Manager Frank Benest provided an update on the Stanford Shopping Center project. The applicant and architect gave a presentation on the proposed addition of 240,000 square feet of retail/restaurant space, 120- room hotel and the modified parking structure. Mr. Benest noted the project was key to the City’s economic development. Mr. Benest gave an update on the Stanford University Medical Center project. The project has been divided up into two phases. Additional work to be performed in Phase I includes a community meeting in June, and the Planning and Transportation Commission and City Council would review the draft area plan in June and July. Phase II would start with the submittal of formal applications in June and July, followed by an Environmental Impact Report (EIR) scoping session in August. Staff has identified five key area plan objectives for which they are seeking Council feedback. These area plan objectives include: 1) Transportation – Goal of producing no net new trips. 2) Housing – strategies for accomplishing below-market rate units. 3) Open Space – open space within the campus area and the surrounding area to ensure maintenance of the views and access are available to pedestrians and bicyclists. 4) Linkages – promote use of existing transit areas and non-vehicular forms of transportation; and to ensure that alternative forms of transportation are used. 5) Sustainability – encourage a high level of LEED designed buildings. 05/14/2007 101-502 Mark Tortorich, Vice President of Planning Design and Construction for Stanford Hospital, gave a presentation for the Medical Center. Jean McCown, Stanford University Director of Community Relations, requested the Council consider the existing language in the City’s Comprehensive Plan regarding the Medical Center. Her concern is that the expansion of the area plan geographically and in scope could create a delay of the process. She asked the Council to be open to how the identified objectives are applied until the EIR is prepared with broader public input. ORAL COMMUNICATIONS Sheri Furman, 3094 Greer Road, spoke regarding the importance of maintaining the VTA Bus Route No. 88. Mayor Kishimoto mentioned on June 4, 2007 there would be a study session with VTA. Stephen Ames, 515 Laurel Avenue, Menlo Park, spoke regarding revisions to the massage therapy ordinance. CONSENT CALENDAR MOTION: Council Member Klein moved, seconded by Kleinberg, to remove Item No. 4 from the Consent Calendar to become Item 10a. MOTION: Council Member Morton moved, seconded by Beecham, to approve Consent Agenda Item No. 3 and Agenda Item Nos. 5 through 9. 3. Approval of a Lease Amendment to Relocate from 1003 Elwell Court to 1005 Elwell Court and to Extend the Term for 1005 and 1007 Elwell Court to 2013 5. Approval of Amendment No. 2 to Management Agreement with Brad Lozares for Golf Professional Services at 1875 Embarcadero Road, Palo Alto 6. Approval of a First Amendment to Lease for 300 Hamilton Avenue, Suite B, to Exercise Second Option to Extend 7. Approval of Amendment No. 2 to Lease with the Elizabeth Gamble Garden for Property Located at 1431 Waverley Street, Extending the Term for Twenty Years 8. Ordinance 4946 entitled “Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 2006-07 to 05/14/2007 101-503 Provide an Additional Appropriation of $121,000 from the Infrastructure Reserve into Capital Improvement Program (CIP) Project Number PL-02005, El Camino Real/Ventura Intersection Improvements” Resolution 8710 entitled “Resolution of the Council of the City of Palo Alto Authorizing Execution of an Agreement with the State of California Department of Transportation for the Installation of Traffic Control Signals and the Construction of Roadway Improvements at the Intersection of El Camino Real (Route 82) and Ventura Avenue” 9. Recommendation from the Historic Resources Board at the Request of Aida Merrill, Owner, to Reclassify a Category 4 Building on the City of Palo Alto’s Historic Inventory to Category 2 Pursuant to Municipal Code Chapter 16.49 at 564 University Avenue 10. Agenda Number Intentionally Not Used MOTION PASSED 8-0 Mossar absent. 10A. (Old Item No. 4) 1st Reading - Adoption of an Ordinance Amending Section 18.08.040 of the Palo Alto Municipal Code (the Zoning Map) to Change the Classification of Property known as 3401, 3415 and 3445 Alma Street from PC Planned Community 1362 to PC Planned Community _____ Director of Planning and Community Environment Steve Emslie stated the Ordinance was brought to the Council with the changes requested. Council Member Morton asked if it would be possible for the Planning and Transportation Commission (P&TC) to change the location of a unit. Mr. Emslie stated the change could not reduce the number of units or housing type. Council Member Morton asked if the P&TC could add commercial space to the main mixed use buildings. Mr. Emslie stated the square footage parameters needed to remain the same for retail, community, and Below Market Rate (BMR) units. Council Member Morton asked whether the Council could amend the plans during the meeting. Mr. Emslie stated yes. 05/14/2007 101-504 Council Member Morton asked whether the square footage was limited to the minimum of 10,000. City Attorney Gary Baum stated the Council had the ability to change, accept, or reject the project. Council Member Drekmeier asked when the Quimby Act would apply. Mr. Emslie stated the Quimby Act applied to residential subdivisions of land and was imposed at the time of the sub-division. Also, projects of less than fifty units do not require an outright dedication of land. Council Member Drekmeier asked whether the Quimby Act related to the size of the project and who would actually own the BMR units. He questioned if the location of the BMR units could be changed. Mr. Emslie stated the option of a 59-year lease held by the City or the Palo Alto Housing Corporation had been considered and that Council could make the decision on the location of the units. Len Filppu, 3621 Ramona Circle, stated the Friends of Alma Plaza continued to support the P&TC recommendation. Sheri Furman, 3094 Greer Road, stated retail should be primary and housing secondary. John Grant, 3583 South Court, stated his support for retail space. Patricia Saffir, 2719 Bryant Street, supported the wrap-up discussion and urged the Council to move forward. Greg Schmidt, Janice Way, requested the Council inform the community what was planned for Alma Plaza. Robert Moss, 4010 Orme St., stated he supported the P&TC recommendation. Marilyn Keller, 3476 Waverley Street, said she supported the P&TC recommendation. Jeff Greenfield, 3476 Waverley Street, stated he supported the P&TC recommendation. Rex Garr, 353 Whitclem Drive, recommended the Council not accept the developer’s plan. 05/14/2007 101-505 Ellen Wyman, 546 Washington Ave., urged the Council to reject the current plan. E.T.Perkins, 514 Thain Way, stated he supported the P&TC recommendation. Lawrence Clark stated he supported the current plan. John McNellis, Developer, 419 Waverley, stated his appreciation for the community support. Karen Kalinsky, 210 E. Meadow Drive, stated she supported the P&TC recommendation. Beverley B. Bryant, 675 North 1st Street, San Jose, stated she supported the current plan. Rita Sodos, 3612 Arbutus Avenue, said she supported primarily retail on the site. Rudy Battier, 3503 Emerson Street, stated he supported the current plan. Pat Constance, 43160 Osgood Road, Fremont, stated the plan had multiple compromises. The community had been consulted and considered greatly in the changes made. Tom Jordan, 474 Churchill Avenue, stated the current plan did not comply with the Comprehensive Plan adopted by the City. James DeVoy stated he supported the current plan. Marlene Prendergast, 725 Alma Street, stated she supported the current plan. Maria Urruela, 2074 Sandlewood Court, stated she supported the current plan. Cindy Patrick, 54 Roosevelt Circle, stated she hoped there would be a full service grocery store. Ellie Gioumousis, 992 Loma Verde Avenue, stated she supported the P&TC recommendation. Jeff Yao, Moser Avenue, stated he supported the current plan. Brendan Galvin said he supported the current plan. 05/14/2007 101-506 MOTION: Vice Mayor Klein moved, seconded by Kleinberg, to approve staff’s recommendation to adopt the first reading of an ordinance that approves Planned Community (PC) zoning for the three properties located at 3401, 3415, and 3445 Alma Street, subject to public benefits and conditions of approval, as outlined by the City Council at its April 16, 2007 meeting, and refer the project to the Architectural Review Board and Planning and Transportation Commission for site development plan review with the following changes: 1) The three commercial out-buildings, “D” Street and associated removable bollards shall be sited to enhance the retail quality of this portion of the property. The Applicant and staff may consider alternative configurations provided that an equivalent ratio of ground floor commercial is provided; 2) Change the minimum size of the grocery store to 15,000 square feet. The 15,000 square feet may include retail subtenants and services that are compatible with the intended use of the grocery store to provide food services, and shall be more specifically defined as part of the approval of the site development plan; 3) No building permit shall be approved (other than for up to 4 model homes) for residential development prior to submittal to the Director of a lease agreement or other legally binding commitment from a grocery operator to occupy the 15,000 square feet of grocery store used in the mixed use building. Occupancy of the grocery store shall occur not later than 15 months after issuance of building permits for the retail development. No final inspection and occupancy (other than for up to 4 model homes) of residential development mixed use building shall be permitted prior to final inspection and occupancy approval for the grocery use. Bonding or other financial security may be considered in lieu of these requirements only upon review and approval by the City Council as an amendment to the Planned Community (PC) ordinance; 4) Regarding the community room, add the language proposed by staff that basically states that prior to approval of the site development plan, the Developer would provide written documentation as to how the room would be used, for how long and appropriate enforcement mechanisms; 5) Add the suggested language by staff to Section 4(d) of the proposed Ordinance to assure compliance to LEED Silver standards with appropriate City inspections (at Applicant’s expense); and 6) If the Applicant does not accept the proposed ordinance in writing prior to second reading of the ordinance, and within 30 days of the Council’s adoption, the question of the appropriate zoning of the Alma Plaza site shall be referred to the Planning and Transportation Commission for the consideration and recommendation, which may include the CN zone, the CN zone plus various overlays, a newly crafted zone 05/14/2007 101-507 applicable to neighborhood centers or such other zone as the Commission deems appropriate. Council Member Kleinberg stated although not every person in the community would agree with the decision, this was a compromise to satisfy a large portion of the community. Council Member Drekmeier stated concern that the retail space was located in the rear of the project. Planning and Transportation Commissioner Lee Lippert asked whether the proposal included parcelization of the land and whether the proposal included the 12,000 square feet of parkland and open space combined. Vice Mayor Klein stated the current proposal did not include parcelization and the 12,000 square feet was combined. AMENDMENT TO THE MOTION: Council Member Morton moved to convert the housing unit identified as Lot 26 from Commercial Space to Open Space. AMENDMENT FAILED FOR LACK OF A SECOND. Council Member Cordell stated she wanted to consider the plan presented by the developer at this evening’s meeting before making a rushed decision. Council Member Beecham asked staff whether there was flexibility to modify the building to have a more useful and functional design for commercial capacity. Director of Planning and Community Services Steve Emslie stated that would be included in the site and design review. Council Member Barton asked if the zone was accepted as a CN, would there be a way to compel a grocery store to lease the space. Mr. Emslie stated no. Council Member Barton asked how many housing units could be build in a CN zone. Commissioner Lippert stated fifteen housing units per acre were allowed in a CN zone. AMENDMENT TO THE MOTION: Council Member Beecham moved to modify the language in No. 6 to indicate the item return to the Planning and Transportation Commission for initiation of a CN Zone Change. 05/14/2007 101-508 AMENDMENT FAILED FOR LACK OF A SECOND. Council Member Drekmeier asked the number of votes required to move forward. City Attorney Gary Baum stated five votes were required. Council Member Drekmeier asked whether the current proposed plan was consistent with the comprehensive plan. Assistant Director of Planning and Transportation Curtis Williams stated the language in the Comprehensive Plan was not specific to consistency. Mr. Baum stated charter cities were not generally required to follow the General Plan. Council Member Drekmeier requested the Alma Street turn lane be lengthened for a smoother traffic merge. AMENDMENT TO THE MOTION: Council Member Drekmeier moved to modify the wording of No. 1 to “delete one housing unit and add 1,865 square feet of retail services/offices.” AMENDMENT FAILED FOR LACK OF A SECOND. AMENDMENT TO THE MOTION: Vice Mayor Klein said the language in No. 1 should remain as stated, but add a sentence stating that the applicant and staff may agree on a substitute as long as it produces the same amount of additional ground floor retail. AMENDMENT FAILED FOR LACK OF A SECOND. Council Member Drekmeier stated he cut the square footage of the building in half and what was suggested was less commercial with all ground floor retail. Vice Mayor Klein stated the ground floor square footage was the same ratio as the other two sites. Council Member Drekmeier stated each building had a total of 1,860 square feet with half on the ground level and half on the upper level. To be consistent, 930 square feet of retail would be required with an equal amount of 2nd floor retail. Mr. Williams stated that was correct. 05/14/2007 101-509 Vice Mayor Klein stated in some cases the ground floor may have more square footage due to stair cases. Mr. Baum asked for clarification on the identification of Lot 26 as land whereas the motion implied it would be building area. Mayor Kishimoto asked whether the Council was leaving parcelization open for the P&TC and the Architectural Review Board (ARB). Mr. Williams stated parcelization was a portion of the site design and the tentative map. Mayor Kishimoto asked about the possibility to alter the housing types and sizes from the proposed development plan and noted that the proposed plan referred to Attachment A but there was no attachment. Mr. Williams stated generally the house size was specified and the location was determined by the site development review process. Attachment A was marked as Attachment D. Council Member Cordell asked if the current Motion was approved would the City Attorney draft a new Ordinance consistent with the approved language. Mr. Baum stated Planning would draft the Ordinance for editing by the City Attorney’s Office. Mayor Kishimoto requested a more integrated mix of housing designs. Council Member Kleinberg was concerned with another last minute change presented to the community. Council Member Morton requested an amendment to the minimum size of the grocery store. AMENDMENT TO THE MOTION: Council Member Morton moved, seconded by Drekmeier, to reduce the minimum size of the grocery store to 12,000 square feet. Council Member Drekmeier stated there was a set amount of ground floor square footage of 17,300. Council Member Kleinberg asked if the minimum square footage was set at 15,000, what was the probability of subleasing to a secondary food service. She commented the goal was to increase the amount of service space with the maximum amount of flexibility. 05/14/2007 101-510 Mr. Baum stated the language refers to 15,000 square feet, which may include sub-tenants compatible with grocery stores, including services to be approved through site and design review. Council Member Morton stated the wording needed to specify the minimum size for a grocery store. Vice Mayor Klein stated his support for the language. AMENDMENT FAILED 4-4 Kleinberg, Klein, Kishimoto, Cordell no, Mossar absent. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER that the 15,000 square foot grocery store may include sub-tenants compatible with grocery stores including services to be approved through site and design. Mr. McNellis stated a 12,000 square foot market was an acceptable request. Council Member Kleinberg asked why the usable square footage was 11,500 of the total 12,000 square foot store. Mr. McNellis stated the basement was added space. When the square footage was set it was a total amount of usable area. Pat Constance, Green Briar Homes, confirmed the removal of the occupancy language and the 180-day clause. Mr. Baum said the developer could pull the building permit only when there was a signed one-year lease. Mr. McNellis stated the necessary timeline for construction to secure a tenant lease was approximately fourteen months and the lease was usually tied to the completion of the building. Mr. Baum commented the Council had discretion to determine the timeline and he suggested going out further than one year. Mayor Kishimoto asked whether the changed language would return with the 2nd reading of the Ordinance. Vice Mayor Klein stated concern that a lessee would terminate the lease prior to the completion of the building. Council Member Beecham suggested a two-year period built into the lease. 05/14/2007 101-511 Vice Mayor Klein said with the current proposal the two-year period was unacceptable because at that point the houses would be occupied. He stated the Council’s plan was for a grocery store with the leverage of occupancy. Council Member Beecham asked whether the suggestion was to not have housing until after the grocery store was complete. Vice Mayor Klein stated there would be no building permit until after a signed lease and requested the developer to propose a new plan that guaranteed a grocery store. Mr. McNellis stated the ideal project would be for a simultaneous build. Mr. Baum asked for the requested language prior to the vote and he suggested the language be clear that item no. 6 not return for a 2nd reading unless the project had been accepted. Mr. McNellis stated if the lease was signed as a pre-condition to the building permit being issued, and the space was delivered to the market within 30- days of completion, it would be fine. He said the lease would read “as soon as the building was complete in accordance with the plan, scheduled payments began.” Council Member Kleinberg asked how to lock-in the occupancy of the market and not the rental payment. Mr. McNellis stated the lease language provided for specific move-in time, scheduled payment time, and the duration of tenancy. He requested a fifteen month schedule. Mr. Baum asked whether fifteen months was acceptable to the Council. Council Member Kleinberg stated that was acceptable. Vice Mayor Klein stated that was acceptable MOTION PASSED 8-0 Mossar absent. REPORTS OF OFFICIALS 11. Roth Building, 300 Homer Avenue – Reject $300,000 Contribution Condition - Approval of Option Agreement and Lease, and Consideration of Addendum to the Environmental Impact Report (EIR) for the South of Forest Area Coordinated Plan 05/14/2007 101-512 Manager for Administrative Services Real Estate Bill Fellman stated staff and the Museum had agreed to all terms except for the use of additional City funds for the repair of a leak. Council Member Cordell asked what repairs were made costing $415,000. Director of Public Works Glenn Roberts stated numerous repairs had been completed since the City acquired the building. He noted the roofing, electrical, ventilation and the water proofing in the basement were the main repairs. Council Member Cordell asked whether the leaks in the basement came from the removal of the wings and whether the work of the contractor who removed the wings caused the problem. Mr. Roberts stated his belief was the removal of the wings and the retention of the spine caused the leaks. City Manager Frank Benest stated the basement leaked and flooded on a regular basis prior to the repairs. Council Member Cordell asked whether the City was unaware of the problem prior to the acquisition. Mr. Roberts stated the City had knowledge of basement leaks and the decision was to continue with the acquisition. Council Member Cordell inquired as to why additional funds were not requested up front for the project. Mr. Roberts stated the intent was to remove both the wings and the spine to alleviate the concern. The City Council directed to retain the spine and the original basement, which in turn produced the leakage. Council Member Barton asked whether other parties were interested in the Roth Building. Mr. Fellman stated no. Council Member Barton asked regarding the cost to complete the Museum, how much has been raised and how long has it taken to raise the funds. Robin Robinson, 101 Alma, stated the estimated cost was $145,000 to $300,000 to complete the upgrades. The current funds available to the 05/14/2007 101-513 museum are $1 million from pledges and cash. Raising funds has been difficult without a lease in place. Council Member Barton asked the amount of the contractors estimated list for completion. Ms. Robinson stated $7 million. Council Member Kleinberg asked why the Museum was authorized to charge admission. Mr. Fellman stated the change was made by the Museum with staff’s agreement. Council Member Kleinberg stated the Council had not seen or agreed to the change. Mr. Fellman stated it has been brought before the Council for discussion. Council Member Kleinberg questioned the term habitability; there was no discussion of someone residing in the museum. Mr. Fellman stated the lease authorized custodial personnel to reside in the building. Council Member Morton stated the Museum was required to undertake the improvements prior to the City’s consideration to pay the $145,000 to $300,000 estimate. Mr. Fellman stated usually the work was completed and the Museum would submit invoices for reimbursement. Council Member Morton stated the upfront cost to the City for the improvements was negligent. Mr. Fellman stated the City gained the improvements by the Museum for the cost of the liability for a pre-existing condition. Council Member Morton recommended acceptance of the request of the Museum and improving the option with the understanding that once they have improved the building the City would reimburse up to $300,000. MOTION: Council Member Morton moved, seconded by Cordell, to accept the request of the Palo Alto History Museum and approve the option agreement and, once the building has been completed, the City would 05/14/2007 101-514 reimburse up to $300,000 for waterproofing to the Palo Alto History Museum. Council Member Drekmeier asked the accuracy of the Heritage Park drainage and the roof drainage, which flow directly to the rear of the Roth Building. Mr. Fellman stated that was corrected as part of the $415,000. Council Member Drekmeier asked about grading Heritage Park away from the Roth Building. Mr. Roberts stated the grading had been completed. He added there were a number of cracks in the concrete and ground water surfaces through the floor of the basement. Council Member Drekmeier asked whether there were basement repairs as part of the $415,000. Mr. Roberts stated some repairs were made at the time with further work necessary. Council Member Drekmeier asked the confidence level of waterproofing with further work. Mr. Roberts stated the building was a 70-year old concrete structure with a large amount of cracking. He believed there will continue to be a support system for drainage to the basement. Council Member Drekmeier asked the possibility of bypassing the usage of the basement and the probability of filling it in. Mr. Roberts stated the basement was an intricate part of the spine for the building and it may not be possible to fill it in. Ms. Robinson stated the fix for the basement was to put a membrane on the floor and up the walls to prevent seepage. The basement was necessary for storage. Council Member Beecham stated there is a shared responsibility for the pre- existing leakage and he recommended the City pay a portion not to exceed $150,000 for repairs. SUBSTITUTE MOTION: Council Member Beecham moved, seconded by Kishimoto, to share the costs of the repairs where the City would contribute the maximum amount of $150,000 for waterproofing. 05/14/2007 101-515 Vice Mayor Klein asked about the timeline to comply. Mr. Fellman stated the option was for two years. Vice Mayor Klein asked during the two years, was the City was required to maintain the building. Mr. Fellman stated yes. Vice Mayor Klein stated the City, as the owner, had all responsibilities for the building. Mr. Roberts stated ventilation, pumps and an electrical system has been installed to prevent further water damage. Vice Mayor Klein asked whether the $300,000 was for further upgrades and improvements. Mr. Roberts stated the funds were to waterproof the basement. Vice Mayor Klein asked if the City was at risk for the upcoming two years prior to the Museum taking over the building. Mr. Roberts stated the $415,000 already spent will maintain the building in status quo condition without further deterioration for the next few years. Vice Mayor Klein stated he would vote against the Motion. Council Member Beecham mentioned the Motion may pass if the Substitute Motion fails. Council Member Kleinberg proposed removal of references for fees for admission. Council Member Beecham stated the fees were to accommodate the funds required to complete the upgrades. SUBSTITUTE MOTION APPROVED 6-2 Klein, Cordell no, Mossar absent. MOTION: Council Member Kleinberg moved, seconded by Klein, that admission to the Museum would be open to the public without charge. Mr. Robinson stated the intent was to have free admission to the Museum. The admission fee was for special events. 05/14/2007 101-516 Council Member Kleinberg said special event fees were acceptable and asked staff to correct the language in the lease. INCORPORATED INTO MOTION WITH THE CONSENT OF THE MAKER AND SECONDER that there would be no admission fee charged unless for a special event. Council Member Kleinberg stated concern for the residence in the Museum for security risk and the loss of square footage to the Museum. Mr. Fellman stated the plans showed a space for a museum curator. Council Member Kleinberg asked the total square footage allocated for the space and the cost to convert the space. Steve Staiger stated the idea was to provide 700 to 900 square feet of living quarters to compensate for the low salary for a custodian. Council Member Kleinberg asked why not rent the space to small non-profits. Council Member Morton stated numerous other non-profit organizations in City limits charge fees. The Council had restricted them to charging fees only during special events. Council Member Beecham stated their original intent was to charge only for special events. Mayor Kishimoto asked for specific timeframes for the Museum hours of operation. Mr. Fellman stated the CMR showed operation hours but the City was not holding them to it since the Museum may want to expand the hours. Mayor Kishimoto asked whether the Museum would be amenable to a minimum number of hours for operation such as 20 hours per week. Mr. Staiger stated the minimum number of hours was acceptable and the days of operation would depend on the traffic flow for the Museum. INCORPORATED INTO MOTION WITH THE CONSENT OF MAKER AND SECONDER that the Museum would be open to the public a minimum of 20 hours per week. MOTION PASSED 8-0 Council Member Mossar absent. 05/14/2007 101-517 12. Resolution 8711 entitled “Resolution of the Council of the City of Palo Alto Appointing a Council Member to the Boards of the Bay Area Water Supply and Conservation Agency and the San Francisco Bay Area Regional Water System Financing Authority” MOTION: Council Member Beecham moved, seconded by Kishimoto, to accept staff recommendation to approve a resolution appointing Vice Mayor Larry Klein as a member of the City Council as a director of the Bay Area Water Supply and Conservation Agency and as a director of the San Francisco Bay Area regional Water System Financing Authority. MOTION PASSED 8-0 Mossar absent. COUNCIL COMMENTS, ANNOUNCEMENTS, AND REPORTS FROM CONFERENCES Mayor Kishimoto reported that Bike to Work Day would be on Thursday, May 17, 2007. FINAL ADJOURNMENT: The meeting adjourned at 12:01 a.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.