HomeMy WebLinkAbout2004-09-13 City Council Summary Minutes
Regular Meeting
September 13, 2004
ORAL COMMUNICATIONS ........................................................................119
APPROVAL OF MINUTES ..........................................................................119
1. Ordinance 4839 entitled “Ordinance of the Council of the City of Palo
Alto Amending Exhibit A-17 and Map to Exhibit A-17 to Section
22.08.210 of Chapter 22.08 of Title 2 of the Palo Alto Municipal Code
Correcting the Boundaries of Rinconada Park and Adjoining City
Property Adjacent to the Junior Museum and Zoo and Girl Scout
Building” (1st Reading 08/09/04 Passed 7-0, Freeman, Ojakian absent) .............................120
2. The Finance Committee Recommends the City Council Adopt the
Resolution Approving a Request for Assignment of Palo Alto’s Base
Resource Percentage to Northern California Power Agency 04-SNR-
00XXX with the United States Department of Energy, Western Area
Power Administration ......................................................................120
3. Adoption of a Resolution to Change Utility Rate Schedule C-1 “Utility
Service Calls” Effective 9/13/04 .......................................................120
4. The Finance Committee Recommends to the City Council Approval of
the Following Six Gas Utility Long-Term Plan (GULP)
Recommendations: .........................................................................120
5. Agreement Between the City of Palo Alto and the City of Morgan Hill
for Information Technology Services in the Amount of $150,000 ..........121
6. Professional Services Agreement Between the City of Palo Alto and
Geodesy in the Amount of $130,000 for Development Support of New
Computer Applications Linked to the Geographic Information System
(GIS) ............................................................................................121
8. Response to 2003-04 Santa Clara County Civil Grand Jury Report,
Inquiry into the Board Structure and Financial Management of the
Valley Transportation Authority ........................................................121
09/13/04 98-117
9. Cancellation of November 1, 2004 City Council Meeting ......................121
10A. Appointment of Judith Wasserman as the City's Representative to the
VTA Valley Transportation Plan Design Enhancement Committee ..........121
11. Endorsement of the Blue Ribbon Storm Drain Committee’s
Recommendations for Storm Drain Funding and Direction to Pursue a
Storm Drainage Fee Election in February/March 2005 .........................121
12. Request to Preliminarily Approve 2003-04 Reappropriation Requests ....128
13. Colleagues Memo from Mayor Beecham and Council Member Mossar re 129
13A. (Old Item No. 10) Three-Year Agreement Between the City of Palo Alto
and the United States Geological Survey in the Amount of $186,000
for San Francisco Bay Monitoring .....................................................132
13B. (Old Item No. 7) Award of Option to Lease to JSRFIT, L.L.C., D.B.A.
Form Fitness Health Center at Lot S/L Site Non-Parking Area, 445
Bryant Street .................................................................................133
14. Conference with City Attorney -- Potential/Anticipated Litigation ..........135
FINAL ADJOURNMENT .............................................................................136
09/13/04 98-118
The City Council of the City of Palo Alto met on this date in the Council
Chambers at 7:01 p.m.
PRESENT: Beecham, Burch, Cordell, Freeman, Kleinberg, Kishimoto,
Morton, Mossar, Ojakian
ORAL COMMUNICATIONS
Moose Wesler spoke on art studios at Cubberley.
Marquerite Fletcher thanked the Council for use of artists’ studios at
Cubberley.
Becky Swanson, teacher at the Junior Museum, spoke regarding recognition
of hourly workers in Palo Alto.
Arlyn Sharpe, Library System, spoke regarding recognition for Palo Alto
hourly workers.
Lynn Krug, Water Gas Wastewater Inspector, spoke regarding recognition
for Palo Alto’s temporary hourly employees.
Gail Sredanovic, Peninsula Chapter, Womens’ International League for Peace
and Freedom, spoke in support of hourly workers’ recognition.
Monsignor Eugene Boyle, Santa Clara Interfaith Council of Religion,
supported the rights of workers to organize and form unions.
Lois Salo, Womens’ International League for Peace and Freedom, spoke
regarding the SEIU organizing committee.
Wayne Swan, 240 Kellogg Avenue, spoke regarding his ten recommendations for Palo Alto projects.
APPROVAL OF MINUTES
Assistant City Clerk Deanna Riding requested the minutes of August 2, 2004,
be removed from the agenda.
MOTION: Council Member Morton moved, seconded by Cordell, to approve
the minutes of July 19 and August 9, 2004, as submitted.
MOTION PASSED 9-0 for the July 19, 2004 minutes.
MOTION PASSED 8-1 for the August 9, 2004 minutes, Freeman abstaining.
09/13/04 98-119
CONSENT CALENDAR
Council Member Ojakian moved, seconded by Kleinberg, to remove Agenda
Item No. 7 to become Item No. 13A.
Council Member Freeman moved, seconded by Cordell to remove Agenda
Item No. 10 to become Item No. 13B.
MOTION: Council Member Morton moved, seconded by Mossar, to approve
Consent Calendar Item Nos. 1-6 and 8, 9 and 10A.
LEGISLATIVE
1. Ordinance 4839 entitled “Ordinance of the Council of the City of Palo
Alto Amending Exhibit A-17 and Map to Exhibit A-17 to Section
22.08.210 of Chapter 22.08 of Title 2 of the Palo Alto Municipal Code
Correcting the Boundaries of Rinconada Park and Adjoining City Property Adjacent to the Junior Museum and Zoo and Girl Scout
Building” (1st Reading 08/09/04 Passed 7-0, Freeman, Ojakian absent)
2. The Finance Committee Recommends the City Council Adopt the
Resolution Approving a Request for Assignment of Palo Alto’s Base
Resource Percentage to Northern California Power Agency 04-SNR-
00XXX with the United States Department of Energy, Western Area Power Administration
Resolution 8456 entitled “Resolution of the Council of the City of Palo
Alto Approving a Request for Assignment of Palo Alto’s Base Resource
Percentage to Northern California Power Agency 04-SNR-00XXX with
the United States Department of Energy, Western Area Power
Administration”
3. Adoption of a Resolution to Change Utility Rate Schedule C-1 “Utility
Service Calls” Effective 9/13/04
Resolution 8457 entitled “Resolution of the Council of the City of Palo
Alto Amending Utility Rate Schedule C-1 of the City of Palo Alto
Utilities Rates and Charges Pertaining to Service Calls”
ADMINISTRATIVE
4. The Finance Committee Recommends to the City Council Approval of
the Following Six Gas Utility Long-Term Plan (GULP)
Recommendations:
1. Do not contract for natural gas storage capacity at this time.
09/13/04 98-120
2. Do not acquire additional natural gas pipeline capacity at this
time.
3. Approve staff undertaking initial steps related to gas reserve
acquisition including:
a. Identifying and evaluating potential consortiums including
joint action opportunities;
b. Entering into consortium agreement to scout properties;
c. Through the consortium, employing an investment bank and
consultants to scout properties and spend up to $65,000 in FY
04-05 related to this effort; and
d. Through the consortium, identifying attractive, feasible
opportunities.
4. Do not participate in a gas prepay deal at this time.
5. Pursue any low-cost, high-value prospects to acquire supply-
related resources that may arise from time to time.
6. Develop comprehensive demand-side management goals and
implementation plan by Fall 2004 in time for incorporation into
FY05-06 and future ratemaking and budget decisions. In the
interim, continue implementation of current and planned FY 04-05
demand-side management programs.
5. Agreement Between the City of Palo Alto and the City of Morgan Hill
for Information Technology Services in the Amount of $150,000
6. Professional Services Agreement Between the City of Palo Alto and Geodesy in the Amount of $130,000 for Development Support of New
Computer Applications Linked to the Geographic Information System
(GIS)
8. Response to 2003-04 Santa Clara County Civil Grand Jury Report,
Inquiry into the Board Structure and Financial Management of the
Valley Transportation Authority
9. Cancellation of November 1, 2004 City Council Meeting
10A. Appointment of Judith Wasserman as the City's Representative to the
VTA Valley Transportation Plan Design Enhancement Committee
MOTION PASSED 9-0.
REPORTS OF OFFICIALS
11. Endorsement of the Blue Ribbon Storm Drain Committee’s
Recommendations for Storm Drain Funding and Direction to Pursue a
Storm Drainage Fee Election in February/March 2005
09/13/04 98-121
Director of Public Works Glenn Roberts said staff agreed with the
recommendations from the Storm Drain Committee. The initial Capital
Improvement Projects (CIPs) totaled 17 million dollars and were proposed to
be implemented over a 12-year period. The program would increase the
Storm Drainage fee by $5.75 or $10 per month per residence. Pictures of
the locations of the CIPs and a map were shown. If the Council concurred,
staff would return in December to request an ordinance for adoption
authorizing an election process, which would be certified in April 2005.
Larry Klein, Blue Ribbon Storm Drain Committee, said because the City was
paying its share of the Storm Drain fees upfront, more projects would be
completed in the first few years.
Richard Alexander, 435 Santa Rita Avenue, asked why money had not been
spent annually to maintain the storm drains. Taxpayers should not be asked
to make contributions to an enterprise fund.
Elliott Bolter, 286 Walter Hays Drive, asked the Council to address how the
General Fund was distributed.
Herb Borock, P.O. Box 632, said residents would not vote for projects that
did not benefit their neighborhood. Each neighborhood should pay for its
own work.
Gary Lindgren, 585 Lincoln Avenue, asked whether the project to place a trunk line down Lincoln Avenue would include catch basins.
Joan Larrabee, 777 San Antonio Road, said the current storm drains were
not a complete system and were in need of repair. The additional $69
increase per year for the Storm Drain project was a small price to pay to
avoid flooding.
Bob Moss, 4010 Orme Street, said the entire community should support any
fee or tax that helped a specific neighborhood.
MOTION: Council Member Morton moved, seconded by Burch, to approve
the staff recommendation to: 1) Endorse the recommendations of the Blue
Ribbon Storm Drain Committee; and 2) Direct staff to pursue a property
owner election in February/March 2005 for approval of an increase in the
monthly Storm Drainage Fee to $10.00 per Equivalent Residential Unit (ERU)
to fund the proposed enhanced storm drain program.
Council Member Morton said the residences that benefited from the project
should share the cost. He felt it was time to take an antiquated system and
attempt to add enhancements.
09/13/04 98-122
Vice Mayor Burch said it was an excellent idea for the City to pay up front.
The project would benefit the entire City.
Council Member Kishimoto asked staff how integral was the repair of
damaged curbs and gutters to the solution of the problem. Damaged gutters
were the most common source of resident complaints regarding poor
drainage.
Mr. Roberts said it was decided the curb and gutter element would not be
included in the first phase. There were other resources available in the
street and sidewalk programs to repair curbs and gutters.
Council Member Kishimoto asked whether preventative work on curb and
gutters could be made out of the $2,000,000 street maintenance budget and
still remain within the budget.
Mr. Roberts said he did not recommend a significant diversion of the street
maintenance budget be removed and put into curb and gutter work.
Council Member Cordell asked why it was thought the electorate would vote
in favor of the Storm Drain fee increase.
Mr. Roberts said the sunset clause addressed a major concern; there was a
Citizens Oversight Review Committee to ensure the funds would be spent
efficiently; there was the Blue Ribbon Task Force; and also the participation of interested members of the public.
Mayor Beecham said the initial proposal did not clearly define the projects,
and the current proposal was more definitive.
Council Member Freeman said the cost was reduced because the public was
borrowing funds from the City without interest or debt financing.
Council Member Cordell asked whether there had been a survey to
determine the mindset of the electorate.
Mr. Roberts said no formal survey had been conducted.
Council Member Cordell said the Council should take a leadership role in an
aggressive campaign to promote the Storm Drain Funding to the community.
City Attorney Gary Baum said there were limitations to what the City or the
Council could do in an election. As individuals, Council Members could do
what they wanted. The Council was limited to providing information to the
public, as opposed to advocacy.
09/13/04 98-123
Council Member Ojakian said there were laws restricting the activity of the
Council.
Mr. Baum said the law restricted advocacy by the City or the City Council.
Council Member Ojakian asked about the catch basins around Lincoln
Avenue.
Mr. Roberts said all of the new storm drains and lines would include inlets,
catch basins, and additional drainage capacity.
Council Member Ojakian said it would be difficult to pass the legislation.
Council Member Kleinberg asked about the General Fund’s $800,000 direct
subsidy to the Storm Drainage Fund, which would be eliminated.
Director of Administrative Services Carl Yeats said the money would be
returned to the General Fund. The $800,000 was transferred out of
operations in the General Fund each year to support the Storm Drain Fund.
Therefore, the money would not transfer.
City Manager Frank Benest said the funds could be used for other needed
operational or infrastructure capital improvements.
Council Member Kleinberg asked about the opportunity cost for prepayment.
Mr. Yeats said if there was a prepayment, an amount of money in interest
would be lost if a loan were created for the Storm Drain Fund. The City
would not pay the inflationary growth in the storm drain rate over the 12
years because there would be a lump sum payment. The General Fund’s
reserves would be drawn down, and the City would lose what would have
been earned.
Council Member Kleinberg asked for the financial bottom line.
Mr. Yeats said the Budget Stabilization Reserve would be brought below the
18.5 percent level. Surplus funds from operations would go back into the
Stabilization Reserve.
Council Member Kleinberg said it was time to move forward, make the
environment safer, and protect community property.
Council Member Freeman said the fee charged would begin at $10 and climb
to $14.26 over the 12 years. She asked about the sunset clause.
09/13/04 98-124
Mr. Roberts said $14.26 was an estimate based on the potential inflationary
increases of 3 percent per year. The sunset clause was structured to return
to the current $4.25 per residence per month at the end of 12 years.
Council Member Freeman said there was approximately $883,000 per year in
maintenance in the plan, and $500,000 per year would be spent on storm
drain infrastructure repair.
Mr. Roberts said maintenance was the cleaning of the lines, which included
removal of sediment, debris and leaves. Repairs were refurbishing
deterioration of the lines.
Council Member Freeman asked whether the two values were higher than
what was currently budgeted.
Mr. Roberts said it was approximately $100,000 per year increase in
maintenance and $500,000 per year increase in repairs.
Council Member Freeman asked whether there were Proposition 218 issues
when fees were collected in areas where there were no direct benefits.
Mr. Baum said it was consistent with Proposition 218. There was a concept
of Citywide benefits.
Council Member Freeman said she had concerns that the Rate Stabilization Reserve had been removed and suggested it be included in the solution.
Mr. Roberts said it would take an increase of another dollar to include a Rate
Stabilization Fund.
Mr. Yeats said in order to establish a Rate Stabilization Reserve, a policy
would need to state the low and high parameters.
Council Member Freeman said there was a General Fund distribution issue.
It was important to have a reserve.
AMENDMENT: Council Member Freeman moved, seconded by Kishimoto,
to increase the proposed rate increase by $1 for the specific purpose of
establishing a Reserve Fund.
Council Member Morton asked whether the fee could be adjusted in the
future.
Mr. Roberts said a formal action would need to return on December 6, 2004,
for Council’s approval to set parameters of the election.
09/13/04 98-125
City Manager Frank Benest said staff would return with more information,
and the Council would have another opportunity to make changes.
Council Member Morton said before an election, the City should be clear to
identify what was considered information. The information should not be
considered advocacy because it was positive.
AMENDMENT WITHDRAWN BY MAKER AND SECONDER
Mr. Baum said he would provide a memorandum to the Council and to staff.
There was a distinction between advocacy and providing information. There
were no prohibitions to providing information via the City and the City
Council. As individuals, a Council Member could, with their own campaign
committee, be for or against.
Assistant City Manager Emily Harrison said in order to have an election in
February or March, the Committee would need a solid proposal in a timely
manner.
Council Member Morton said he would decline adding to the fee.
AMENDMENT: Council Member Morton moved, seconded by Freeman, to
consider a second measure to request additional monies for gutters and
curbs.
Council Member Freeman asked whether there was a cost difference to have
one item versus two items on the ballot.
Ms. Harrison said she did not believe there would be a cost difference.
Council Member Mossar said storm drains meant property, transportation,
and natural resource protection. Upgrades were needed for clean water, the
bay, and creeks.
Mayor Beecham said his goal was to invest in infrastructure. The current
proposal had a defined timeframe, projects, and contribution. He felt, as
individuals, the Council Members needed to campaign for storm drains and
to explain the necessity for them.
Council Member Cordell said it was still unknown what residents’ thoughts
were on the subject. She queried whether the timeframe to adjust the
proposal was until December.
Ms. Harrison confirmed.
09/13/04 98-126
Council Member Cordell asked whether there should be focus groups for
awareness of the public sentiments.
Ms. Harrison suggested using the web to engage the public on the storm
drain issue.
Council Member Morton believed a second measure on the ballot would
lower the chance of passage.
AMENDMENT WITHDRAWN BY MAKER AND SECONDER
City Manager Frank Benest said political consultants suggested keeping the
measures clean and clear.
Vice Mayor Burch suggested the current $10 fee proposal remain as it was.
MOTION PASSED 9-0.
MOTION: Council Member Freeman moved, Cordell seconded, to do a web-
based survey to assess the level of public support.
Council Member Freeman said there should be the ability to maintain and
upgrade storm drains in the future.
Council Member Cordell said the web-based survey should include whether
residents would be willing to pay $12 versus $10.
Vice Mayor Burch felt it would be difficult to provide adequate information on
a web-based survey.
Council Member Mossar said it was important to be decisive and clear when
putting an item on the ballot.
MOTION PASSED 6-3, Beecham, Burch, Mossar voting no.
Council Member Morton suggested the neighborhood groups be the initial
focus groups to advise the public of the web-based survey.
Ms. Harrison said the first task would be to work with the Storm Drain
Committee, and the neighborhood groups would be a place to start the
education process.
RECESS: 9: 00 p.m. to 9:05 p.m.
REPORTS OF COMMITTEES AND COMMISSIONS
09/13/04 98-127
12. Request to Preliminarily Approve 2003-04 Reappropriation Requests
Mayor Beecham stated he would not participate in the item due to a conflict
of interest because his residence was within 500 feet in proximity.
Vice Mayor Burch recommended dividing the agenda item into two motions.
MOTION: Council Member Kleinberg moved, seconded by Cordell, to
approve the 2003-2004 reappropriation requests that do not include the
Downtown North and Lytton traffic calming expenditures and the Parking
District Educational Brochure.
Council Member Kleinberg said staff and the Finance Committee evaluated
the items carried forward.
MOTION PASSED 9-0.
Chop Keenan, 700 Emerson Street, asked for the second half of the color
brochure funding in order to print it.
Barbara Gross, 122 Hamilton Avenue, read a letter from John Barton,
Chairman of the Board of the Palo Alto Chamber of Commerce, encouraging
the Council to fully fund the brochure.
Roxy Rapp, 261 Lytton Avenue, said property owners and leaders of the Parking Committee authorized the money to be spent to educate the
community and out of town visitors.
Council Member Kleinberg said the Finance Committee did not feel the
brochure was ready to be reprinted if there were outstanding Downtown
improvements.
Director of Administrative Services Carl Yeats said it would be difficult to
correlate direct sales tax revenue to street parking.
Council Member Kleinberg said the Finance Committee had concerns about
enhancing the opportunities for individuals to shop Downtown for an extra
hour.
MOTION: Council Member Kleinberg moved, seconded by Morton, to
approve the reappropriation of $43,000 for the Parking District Educational
Brochure.
Council Member Kleinberg said there was a willingness of the business
community to review and improve the signage for color zones.
09/13/04 98-128
Council Member Morton recommended the two-hour parking be extended to
three-hour parking.
Council Member Kishimoto said Council received a comprehensive
informational report about Downtown parking and asked whether there
would be follow-up to the ideas suggested in the report.
Assistant City Manager Emily Harrison said staff would continue dialogue
with the Chamber Parking Committee and the Council.
Council Member Kishimoto said she supported the idea of parking permit
machines to allow individuals the flexibility to pay for an extra hour of
parking.
Council Member Freeman asked whether there would be any changes and if
Council would have further input. She noted there had been consistent
comments about the color zones.
Ms. Harrison said the comments and concerns had been discussed with the
Chamber Parking Committee. Staff supported their recommendation that
the parking brochure be printed.
Council Member Mossar said there was interest in looking for new and better
ways to manage Downtown parking.
Council Member Kleinberg said the brochure would continue to alert
individuals to the current parking conditions.
MOTION PASSED 9-0.
MOTION: Council Member Kleinberg moved, seconded by Morton, to
approve the reappropriation of $86,600 for Downtown North and Lytton
neighborhood traffic calming expenditures to only be used for devices
already authorized by City Council.
MOTION PASSED 8-1, Beecham not participating.
COUNCIL MATTERS
13. Colleagues Memo from Mayor Beecham and Council Member Mossar re
Proposed Public/Private Partnership for Renovation of Lytton Plaza
Council Member Mossar asked Council to join her and Mayor Beecham in
asking staff to work with private proponents to determine whether there was
an opportunity for a public/private partnership to renovate Lytton Plaza.
09/13/04 98-129
Norman Carroll, Emerson Street and University Avenue, said he did not
agree with dedicating $250,000 to enhance Lytton Plaza when it could be
upgraded for less.
Herb Borock, P.O. Box 632, said the proposal violated the Charter provisions
for use of dedicated parkland.
Elaine Meyer, 609 Kingsley Avenue, said the design of Lytton Plaza made it a
functional public plaza where individuals of all ages congregated.
MOTION: Vice Mayor Burch moved, seconded by Morton, to direct staff to
review the proposal for Lytton Plaza and to bring a recommendation back to
the Council. Specifically, for staff to return with:
• Verification of Established cost estimates
• Recommendation on potential funding options
• Possible implementation timeline, including staff and board and
commission review process
Vice Mayor Burch said the cost of the renovation needed to be defined.
Council Member Morton said he had concerns about an open fountain in the
plaza.
Council Member Ojakian said he would like feedback on the project from the
individuals who were part of the Downtown Urban Design Improvement Plan. The Park and Recreation Commission (PARC) should review the current
proposal.
Council Member Cordell asked whether a design already existed for the Plaza
and asked about the 1997 proposed design improvements.
Mayor Beecham said there was a preliminary sketch.
Council Member Cordell asked whether the City had generated the designs.
Mayor Beecham said it was currently a concept. The concept would be sent
to the appropriate boards and commissions for input, it would be sent on to
staff, then back to the Council for a final decision.
Council Member Cordell asked whether the Council would see the sketch
prior to making a recommendation.
Council Member Mossar said a concept existed.
09/13/04 98-130
Council Member Cordell asked whether the concept was in Council Member
Mossar’s memo, which indicated improvements of water, greenery, and
seating.
Council Member Mossar confirmed that was the concept. She said
preliminary studies did not provide detailed plans.
Council Member Cordell said Lytton Plaza was not one of the Top 5 priorities
for the City and there were many other projects where the monies could be
dedicated.
Council Member Morton suggested a change of words from “verification” to
“establish” cost estimates.
Council Member Kishimoto said she had questions about the sketch from the
previous study. She asked the meaning of a public/private partnership and
an explanation for the distinction between a partnership and a donation of
$250,000.
Ms. Harrison said the Council policy referred to private or non-profit
organizations that went forward with a proposal to improve City-owned
property.
Council Member Kishimoto asked whether the private partner was the
initiator of the first design.
Ms. Harrison said the policy contemplated it either way; however, the
private sector usually approached the City.
Council Member Kishimoto asked whether the public had access to the Plaza
24 hours a day.
Ms. Harrison said the focus would be on the Plaza as dedicated parkland.
Council Member Kishimoto said when the proposal went to the PARC, it
should go with no restraints, and she asked whether it would be the concept
of the private partner or from the earlier concept.
Ms. Harrison said she would ask staff to review both concepts.
Council Member Kishimoto asked whether operating and maintenance costs
would be examined.
Council Member Freeman said she was conflicted about the acceptance of
funds from the private party.
09/13/04 98-131
Council Member Kleinberg said the Council’s priorities did not support the
proposal.
Council Member Morton said the vote was for allowing staff to review the
offer of $250,000 of private funds to upgrade the Lytton Plaza.
MOTION PASSED 6-3, Cordell, Freeman, Kleinberg no.
13A. (Old Item No. 10) Three-Year Agreement Between the City of Palo Alto
and the United States Geological Survey in the Amount of $186,000 for San
Francisco Bay Monitoring
Council Member Freeman said she requested the item be removed because it
was a sole source contract, which should have been put out to bid.
Council Member Morton said staff indicated the City had benefited from the
intellectual effort of a world-renowned affiliate. There had been a long-term
relationship between the United States Geological Survey (USGS) and the
City.
Council Member Mossar said in a competitive bidding process, USGS would
win as the City was paying an incremental cost.
MOTION: Council Member Morton moved, seconded by Mossar, to authorize
the Mayor to execute the agreement with the USGS in the amount of $186,000 to monitor pollutants in clam tissue and sediments and to monitor
ecosystem diversity in the Palo Alto Baylands area of San Francisco Bay
during calendar years 2004-2006.
Mayor Beecham asked whether it was legally permitted.
City Attorney Gary Baum said there were no legal limitations to the award to
the USGS.
SUBSTITUTE MOTION: Council Member Freeman moved to offer the
agreement out to bid and obtain the best solution for the contract.
SUBSTITUTE MOTION FAILED DUE TO LACK OF A SECOND
Council Member Kishimoto asked whether the work was lab work, and how
to determine whether the subcontracting was lab work directed by the City
or were they Research and Development partners.
09/13/04 98-132
Director of Public Works Glenn Roberts said the City was achieving a
significant cost savings by partnering with the USGS. They were partnered
with the City in the regulatory environment.
Council Member Kishimoto said clarification wording should have been
included in the agreement.
MOTION PASSED 8-1, Freeman no.
13B. (Old Item No. 7) Award of Option to Lease to JSRFIT, L.L.C., D.B.A.
Form Fitness Health Center at Lot S/L Site Non-Parking Area, 445 Bryant
Street
Council Member Ojakian requested a reissue of the Request for Proposal
(RFP) after receipt of a letter from Byron Mellberg, representing Heptagon
Individual Fitness, who placed a higher bid.
Byron Mellberg, 1717 Embarcadero Road, Ritchey Fisher Whitman and Klein,
representing Jason White and Heptagon Individual Fitness, urged the Council
to reopen the leasing process and consider Heptagon’s offer and any other
offers submitted.
Jason White, 131 Lytton Avenue, said he was informed the rent at 445
Bryant Street would be between $3 and $3.50 per square foot and,
therefore, he did not submit a bid proposal.
Herb Borock, P.O. Box 632, suggested the staff and Council follow the policy.
Norman Carroll, Emerson Street and University Avenue, said the City should
not subsidize a volatile business.
Sassan Golafsham, 203 Forest Avenue, said he was ready to fulfill the
obligation as a tenant of 445 Bryant Street. He asked that Form Fitness be
granted the space.
Jeff Manashe, 948 Cowper Street, said there had been a competitive process
and six parties had participated.
Frank Small, 285 Hamilton Avenue, said the late proposal from Heptagon
raised legal issues.
Shahram Seyedin-Noor, 3000 El Camino Real, said it did not appear there
was a decisive reason to reopen the process.
Jeff Ramona said he was surprised at the last minute request from Heptagon
09/13/04 98-133
Individual Fitness.
Mayor Beecham asked the City Attorney what options were available to the
Council that evening.
City Attorney Gary Baum said the Council could either approve or reject the
lease with Form Fitness. Another Request for Proposal (RFP) could
commence with new terms established.
MOTION: Council Member Ojakian moved, seconded by Burch, to reject the
option to lease with JSRFIT, L.L.C. d.b.a. Form Fitness Health Center and to
reopen the leasing process.
Council Member Ojakian said there were individuals who misunderstood the
application process for the lease. The Council would have the opportunity to
delineate the criteria to apply to the space.
SUBSTITUTE MOTION: Council Member Cordell moved, seconded by
Morton, to approve the staff recommendation to authorize the Mayor to
execute the option to lease with JSRFIT, L.L.C. d.b.a. Form Fitness Health
Center, for a 7,410 square foot space in the non-parking portion of the Lot
S/L site, 445 Bryant Street.
Council Member Cordell said the Council had voted and made a decision, and
she asked the Council to go forward.
Council Member Morton said the Council needed to stand by their decision.
Council Member Mossar felt it would be unscrupulous of the Council to look
at a new proposal at that point.
Council Member Ojakian said $400,000 would be lost on the lease to Form
Fitness. There would be $500,000 lost in the first five years of the lease.
There could be other potential applicants interested in the property.
Council Member Kishimoto asked staff about the $400,000 loss.
Director of Administrative Services Carl Yeats said staff’s position had not
changed. The $400,000 was the difference between the cash flows of the
rent payments and would change over time. Mr. Yeats said 240 real estate
agents and brokers in the Bay Area had received flyers about the space. A
public hearing had been held and the top two proposals had been brought to
the Council.
Council Member Kishimoto said there were lessons learned from the process,
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and she would support the substitute motion.
Council Member Freeman asked whether the $400,000 loss on the lease
would come from the General Fund.
Mr. Yeats said during the ten-year proposed lease, the current proposed
debt service was approximately $320,000 per year. Over the life of the
lease, Form Fitness had proposed to pay approximately $2.8 million in rent
payments, which would graduate over time.
Council Member Freeman said the City was leasing the property with the
knowledge it would be losing money.
Mr. Yeats confirmed.
Council Member Freeman said although she did not believe it was a good
arrangement for the City, the Council had made a decision.
Vice Mayor Burch said the original commitment was to use lease income for
teen programs since their space had been removed.
Council Member Kleinberg said although the process had not been perfect,
the Council should move forward with the lease to Form Fitness.
Council Member Morton said there was a capital investment differential up front, which offset the rent differential between the restaurant and Form
Fitness.
Mayor Beecham said an honest effort was made to get the best bid.
SUBSTITUTE MOTION PASSED 6-3, Burch, Freeman, Ojakian no.
CLOSED SESSION
The meeting adjourned at 11:15 p.m. to a Closed Session.
14. Conference with City Attorney -- Potential/Anticipated Litigation Subject: Significant Exposure to Litigation on One Matter (Claim of Jameel
Douglas)
Authority: Government Code Section 54956.9 (b)(1) & (b)(3)(C)
Andrew Pierce, 2465 E. Bayshore Road, Attorney for Jameel Douglas, said witnesses saw Officer Kilpatrick shake Jameel Douglas, lift him, and push
him to the ground. The use of force was unjustified.
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The City Council met in Closed Session to discuss matters of
potential/anticipated litigation and labor negotiations, as described in
Agenda Item No. 14.
Mayor Beecham announced there was no reportable action taken.
FINAL ADJOURNMENT: The meeting adjourned at 12:02 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.
09/13/04 98-136