HomeMy WebLinkAbout2002-03-04 City Council Summary Minutes Regular Meeting March 4, 2002
ORAL COMMUNICATIONS..............................................392
1. Recommendations to Demolish the Basement of the Roth Building Associated with the Non-Historic Wings; to Retain the “Spine” of the 1947 Addition to the Building; and to Issue a Request for Proposals for Non-Profit Organizations to Lease and Renovate the Building..........................392
2. Approval of the City Clerk’s Appointment of Deanna Riding as the Assistant City Clerk....................................400
3. Contract Between the City of Palo Alto and Vanguard in the Amount of $543,420 for Fiscal Year 2001-02 Phase 2 Sidewalk Replacement Project.........................................400
4. Change Order No. 1 to Contract No. S2134507 Between the City of Palo Alto and D.H.R. Construction in the Amount of $100,444 to Complete the Cart Paving Services Project at the Palo Alto Golf Course.......................................400
5. Contract Between the City of Palo Alto and Del Conte’s Landscaping, Inc., in the Amount of $268,645 for Seale Park Facilities Improvements and Irrigation Improvements.........400
6. Contract Between the City of Palo Alto and Mark Cavagerno Associates in the Amount of $153,000 for Conceptual Architectural Design Services for the Art Center Expansion and Site (CIP Project 10204)................................400
7. Contract Between the City of Palo Alto and ELS Architecture and Urban Design in the Amount of $191,144 for the Main Library Conceptual Design (CIP Project 10204)...............400
8. 2475 Hanover Street: City Council Review and Adoption of Revised Mitigated Negative Declaration and Approval of Conditions for the Demolition of two buildings of a 4.7 acre site in the LM Zoning District and the Construction of a two-story Office Building Comprising 81,928 square feet. Parking Facilities include 146 Underground Parking Spaces and 127 Surface Parking Spaces (continued from 2/19/02).....400
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9. Approval of a Resolution which Authorizes: 1) Issuance and Sale of Not to Exceed $36,418,000 Principal Amount of 2001 University Avenue Off-Street Parking Assessment District Limited Obligation Improvement Bonds to Construct Two New Parking Garages; and 2) Official Actions Related to the Bond Issuance....................................................401
10. Vice Mayor Mossar and Council Members Beecham, Burch and Kleinberg regarding the appropriate Council interface with City staff..................................................401
COUNCIL COMMENTS, QUESTIONS, AND ANNOUNCEMENTS...................402
The meeting adjourned to a Closed Session at 9:15 p.m............402
11. Conference with City Attorney -- Existing Litigation.........402
12. Conference with City Attorney – Existing Litigation..........402
FINAL ADJOURNMENT: The meeting adjourned at 9:25 p.m.............402
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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, Freeman, Kishimoto, Kleinberg, Lytle, Morton, Mossar, Ojakian ORAL COMMUNICATIONS Bob Moss, 4010 Orme, spoke regarding historical oddity. Ed Power, 2254 Dartmouth Street, spoke regarding good government. John K. Abraham, 736 Ellsworth Place, spoke regarding Shoreline noise in staff report (CMR:173:02) not on the agenda. REPORTS FROM COMMITTEES AND COMMISSIONS 1. Recommendations to Demolish the Basement of the Roth Building Associated with the Non-Historic Wings; to Retain the “Spine” of the 1947 Addition to the Building; and to Issue a Request for Proposals for Non-Profit Organizations to Lease and Renovate the Building Assistant Director of Public Works Kent Steffens gave an overview of the Roth Building that covered the background, building components, demolition issues, basement analysis, cost estimates, schedules and staff recommendations. In April 2000, the City Council approved the purchase of the Roth Building and entered into a development agreement with the Palo Alto Medical Foundation (PAMF). It stipulated that the non-historic wings would be demolished and removed by July 2003. In November 2000, Stucker and Northway Architects were hired to analyze the basement under the wings for potential reuse. In December 2001, the Policy and Services (P&S) Committee determined options for the use of the building and recommended that staff develop an Request for Proposal (RFP) so that nonprofit organizations could possibly lease and renovate the building. The building was located at the corner of Homer Avenue and Bryant Street and shared the site of the future South of Forest Area (SOFA) Park. The original portion of the building was approximately 10,000 square feet. Estimated renovation costs for that portion of the building was $4.5 million. The spine had three levels, a total of 7,000 square feet, and would cost approximately $2,000,000 to renovate. The wing areas also had three levels, but the first and second levels were demolished. The basement in the wing areas and courtyard was approximate 9,000 square feet and cost approximately $3.7 - $5.7 million. Staff recommended retaining the building and the spine that was approximately 17,000 square feet of useable area. The development agreement specified that the wings should be demolished, but did not address the basement, courtyard, or spine. The three options to retain the basement were to: (1) keep the basement as it was and incorporate the sunken courtyard into the basement, which would net about 11,000 square feet of useable area with an estimated cost of
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$3.7 million dollars; (2) add two feet to the basement to create more head to ceiling room that extended the basement walls up making the roof of the basement four feet above the adjacent grade of the park with an estimated cost of $3.8 million; (3) completely remove and rebuild the basement by excavating down four feet, and build a new basement with a comfortable ceiling height and the roof level with surrounding grade of Bryant Street and future park with a cost of $5.8 million. Staff recommended that all the existing basement be removed except under the spine, which complied with the development agreement. The existing basement space was not adequate for lighting, ventilation, and ceiling height, and waterproofing was difficult with a park or civic use on top of the basement space. Removal of the basement did not impact the future park use at the site. The estimated cost for removing and filling the basement was approximately $300,000. Staff’s recommendation was to demolish the basement associated with the non-historic wings, retain the spine and basement area and issue an RFP for nonprofit use. Vice Mayor Mossar said that the P&S Committee reviewed the request in December 2001. The action taken was to maximize the preserved basement space for nonprofit organizations to use. The P&S Committee approved the retention of the spine and moved forward with an RFP for nonprofit organizations to lease and renovate the Roth Building. Multiple organizations could partner together to use the building and raise funds to remodel. The P&S Committee agreed to share an arrangement with the Development Center and non-profit organizations. Council Member Lytle was in favor of a nonprofit concept only if it was cost-neutral to the City. Building renovation was diminishing in area of the park. Vice Mayor Mossar said that the P&S Committee forwarded the recommendation of the Council. Council Member Lytle said that was correct, and she wanted to disclose that. Karen Holman, 725 Homer Avenue, expressed her hope for a historic museum in the Roth Building. The Palo Alto Historical Association (PAHA), the Museum of American Heritage, University of South Neighborhoods Group and Palo Alto Stanford Heritage supported that vision. Palo Alto did not have a historical museum, and the Roth Building was an ideal site since it was located across the street from the Museum of American Heritage, next to a future park, and close to the downtown area. Dick Rosenbaum, 717 Garland Drive, spoke on the current organizational goals and activities to establish program needs for the museum, space requirements, restoration, rehabilitation and fund-raising assistance.
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Tom Wyman, 546 Washington Avenue, spoke on behalf of the Palo Alto Historical Association in support of saving the basement space. He suggested that the basement space be utilized by departments that required minimum walk-in activities or for long-term storage that required infrequent access. Shalamith Rubenfien, 501 Kingsley Avenue, spoke on behalf of the PAHA Committee. Three amenities were lost through demolition and filling the basement. Basement windows that provided natural light into the building, a large paved courtyard, and a three-story Jacaranda Tree, one of Palo Alto’s finest. The PAHA asked for additional time to develop designs and ideas so the building could be utilized in other ways and to retain valued amenities. Council Member Kishimoto asked whether the $4.5 million for the 10,000 square feet of the original building included the original cost for the stairwell and elevator since that was part of the spine. Mr. Steffens said the $4.5 million did not include renovation of the spine, which was another $2,000,000, nor did it include the $930,000 to demolish the wings. Council Member Kishimoto asked whether the cost of the stairwell and elevator were double counted. Also, regarding the asbestos abatement for $130,000, she asked that staff consult with the applicant before proceeding. Assistant City Manager Harrison stated her concerns about asbestos in the building walls. A tenant could choose to remove some walls and the question was whether the City could do abatement in concert with the tenant’s specific needs. Council Member Kishimoto asked whether access to public restrooms for the SOFA Park could be included in the RFP. Ms. Harrison said it would be included with Council’s approval. Council Member Kishimoto suggested a “letter of intent” that allowed people to return in two to three months to bid on whether to keep the basement or not. Ms. Harrison explained that the City ran into a dilemma when a long period of time was allowed for responding to an RFP. Staff experienced a strong level of expense when groups were asked in terms of money to renovate the building. In following Council’s direction, groups were encouraged to cooperate with the City when given maximum time to show financial viability and to explore every opportunity for partnership. Council Member Burch asked clarified that the basement area with the courtyard totaled 11,000 square feet.
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Mr. Steffens said that was correct. Council Member Burch asked whether grass or a tennis court was being placed on top of the raised platform. Mr. Steffens said the retained basement would be developed into an urban plaza to fit in with the park. Council Member Burch asked whether a plaza would still be on top if they dug down four feet. Mr. Steffens confirmed that the basement roof would be level with the park. Light wells would be removed and natural light brought in, but it would be a more expensive design. Council Member Burch asked what the dollar figure would be on that design. Mr. Steffens confirmed $5,700,000, just for the basement area. Council Member Burch asked the amount of square footage. Mr. Steffens said 9,000 square feet. Council Member Burch confirmed that would be the cost of $633 a square foot. Mr. Steffens said that was correct. Council Member Burch asked whether the park area of two acres included the plaza area. Mr. Steffens said the entire portion of the block was 2.4 acres. Council Member Burch asked whether the Roth Building was included. Mr. Steffens confirmed the Roth Building and wings combined consumed approximately .6 acres. If the Roth Building and basement were not counted as the park, it would be a 1.8-acre park, and 2 acres if the basement area were used. Council Member Morton stated he would authorize staff for an RFP, delay demolition until specific plans were made and there was a parking problem, besides the park, which needed to be worked out. MOTION: Council Member Morton moved, to delay demolition, go out for an RFP, commit to the successful bidder in the RFP that the City will do the demolition of the wings. Mayor Ojakian asked for a second on that motion. Vice Mayor Mossar suggested prior to considering the motion, that staff explain the legal obligation before demolishing begins.
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MOTION FAILED FOR LACK OF A SECOND Council Member Beecham asked whether there was any expectation of the developer’s schedule and if developers needed the City to demolish on any time schedule. Ms. Harrison said that SummerHill Homes was on schedule and the City’s deadline was July 2003. Council Member Kleinberg said another alternative not discussed in the staff report (CMR:161:02) was to lower the basement ceiling roof by two feet creating a useful park area. She asked if the ceiling height was lowered, could space be legally used, for example, storage space instead of office workspace. Mr. Steffens said staff had not looked into that possibility. A more specific analysis would need to be done depending on the use of the space. Council Member Kleinberg said if the ordinance allowed it, then the space could be used in other ways rather than just office workspace. She also wanted to know to what extent did public benefits and needs have to be defined in the RFP. Ms. Harrison said staff tried to emphasize having the building compatible to the park. Council Member Kleinberg said it was beneficial to give the non-profit organizations examples and guidance about park compatibility. It would help those interested in refurbishing the building and aid in enhancing the neighborhood. Ms. Harrison said that staff had made a more optimistic timeframe on getting that RFP out since the City’s policies and procedures required another public hearing on the RFP. That gave staff an opportunity to incorporate all of Councils’ comments, but it did add to the time when the RFP was actually issued. Mayor Ojakian asked why the motion was rejected for moving the Development Center or a City service into the building. Vice Mayor Mossar said that the Development Center was viewed as a commercial office use and would not be compatible to the park. There was greater enthusiasm for using the building as a history museum. Mayor Ojakian added that perhaps the Development Center would bring heavy foot traffic. Vice Mayor Mossar added that the Development Center was office use and the two acres were viewed as being a community resource. Mayor Ojakian asked about the possibility of other less intrusive City services moving into the Roth building.
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Ms. Harrison said a library was considered since it would blend in nicely with the park. However, when it was discussed with the Library Advisory Commission, they showed no enthusiasm. The focus was on the implementation of the Library Master Plan. Another consideration was the Development Center but staff was not too enthusiastic about that plan either. Mayor Ojakian asked about moving the Utilities function into the Roth Building. Ms. Harrison said the Director of Utilities was not interested because the space was not big enough and would be too expensive to renovate. Mayor Ojakian asked what would happen if a cost-neutral operation was not found to put into that building to recover the costs for purchasing the building. Ms. Harrison said staff would need to return to Council and recommend a cost-neutral solution. Mayor Ojakian asked for clarification on what amount of space was needed for the museum. Ms. Harrison believed the Palo Alto Historical Association (PAHA) agreed to go into partnership with another agency. Mayor Ojakian asked Ms. Holman how much space PAHA would need for the museum. Ms. Holman said it would be determined in the program proposal. MOTION: Vice Mayor Mossar moved, seconded by Beecham, to: 1. Approve the demolition of the basement associated with the non-historic wings of the 1947 addition to the Roth Building; 2. Approve the retention of the spine of the 1947 addition to the Roth Building; and 3. Review and comment on the summary of a Request for Proposal (RFP) for non-profit organizations to lease and renovate the Roth Building. Vice Mayor Mossar regretted loosing the basement space, but agreed that it was a very expensive project. She hoped that the nonprofits would be able to fund raise and renovate the building for their own use. Council Member Beecham said the primary concern was the impact on the Park and the end use for this location should have low traffic.
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The space was expensive and nonprofits might have difficulty in coming up with the funds to renovate the building. Restrooms could be incorporated in the park. He would like to have the Library move into that location. Council Member Morton supported the motion only if a statement was made for demolition not to take place before October and that nonprofits should be given time to come up with ways to utilize the basement. Mayor Ojakian asked whether the maker and a seconder could make an amendment to the motion. Vice Mayor Mossar asked for staff’s reaction to that request. Mr. Steffens said that additional time would be required for redesigning, bidding, and building the project. Council Member Morton asked whether October was enough time if the motion included restriction. He had no objections to moving forward and spending the $100,000. Vice Mayor Mossar felt that Council should support staff by moving forward and not leaving that decision open-ended. She did not accept the amendment to the motion. Ms. Harrison said staff would not get funds for design and other work until July. Council Member Morton would accept the commitment of no demolition before July instead of leaving it open-ended. Council Member Freeman wanted clarification as to whether monies would not be spent on the project until July and if additional RFP’s would be worked on to determine if more work was needed to be done on the basement and the building. Ms. Harrison confirmed that monies would not be spent until July, but could not process an RFP by mid- or late-May. Council Member Kishimoto would like to add as an incorporation to the motion the restrooms for the public INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to include public access to restrooms. Council Member Lytle agreed with Council Member Beecham and supported the P&S Committee recommendation for an open and competitive RFP for entering into a private-public partnership. Council Member Kleinberg asked that any proposal must include a community room.
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Ms. Harrison said it could be added if Council approved. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER for the encouragement of a community room as part of the project. Council Member Kleinberg asked staff to use a design to save the Jakaranda tree. Mr. Steffens said the tree was 12 feet below-grade and the bottom of the sunken courtyard; one full level below-street level. Mayor Ojakian asked whether City Arborist Dave Dockter wanted to comment on the tree since he was present. City Arborist Dave Dockter said that the tree would be unsalvageable since it was 12 feet below-grade. Council Member Kleinberg asked whether during the processing of the RFP what legal responsibilities did Council have in remaining neutral. Mr. Calonne explained the purpose of an RFP was to have fair opportunities for access to City properties. Council’s responsibility was to judge each proposal on how well they met the objectives for improvements. Council Member Kleinberg asked how mulch the Council could help a group before it crossed the line of no longer being neutral. Mr. Calonne said that Council should not get so involved to a point of disregarding a better proposal. He advised the Council to remain independent of the proposers and to keep an open mind until all proposals were reviewed. Vice Mayor Mossar concurred with Council Member Kleinberg that the Council Members should not give assistance to the bidders on the Request for Proposal’s for the Roth Building. Council Member Lytle asked Mr. Calonne whether it were best to offer help to those making a proposal. Mr. Calonne said in the context of competitive bidding it was suggested that a preapplication workshop be held where everyone would get the same help. Mayor Ojakian said his main concern was not to end up in a process where full cost could not be recovered. MOTION PASSED 9-0. CONSENT CALENDAR Council Member Kleinberg would not participate in Item No. 8
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Council due to a conflict of interest because her husband’s law firm represented Stanford in land use matters. Vice Mayor Mossar would not participate in Item No. 8 due to a conflict of interest because Stanford University employed her husband. Mayor Ojakian announced that the public hearing was closed on Agenda Item No. 8 and no further public comments would be accepted. City Attorney Calonne advised that if Council needed to get new evidence, they would need to reschedule a new public hearings for Agenda Item No. 8. MOTION: Council Member Morton moved, seconded by Burch, to approve Consent Calendar Item Nos. 2-8. ADMINISTRATIVE 2. Approval of the City Clerk’s Appointment of Deanna Riding as the Assistant City Clerk 3. Contract Between the City of Palo Alto and Vanguard in the Amount of $543,420 for Fiscal Year 2001-02 Phase 2 Sidewalk Replacement Project 4. Change Order No. 1 to Contract No. S2134507 Between the City of Palo Alto and D.H.R. Construction in the Amount of $100,444 to Complete the Cart Paving Services Project at the Palo Alto Golf Course 5. Contract Between the City of Palo Alto and Del Conte’s Landscaping, Inc., in the Amount of $268,645 for Seale Park Facilities Improvements and Irrigation Improvements 6. Contract Between the City of Palo Alto and Mark Cavagerno Associates in the Amount of $153,000 for Conceptual Architectural Design Services for the Art Center Expansion and Site (CIP Project 10204) 7. Contract Between the City of Palo Alto and ELS Architecture and Urban Design in the Amount of $191,144 for the Main Library Conceptual Design (CIP Project 10204) 8. 2475 Hanover Street: City Council Review and Adoption of Revised Mitigated Negative Declaration and Approval of Conditions for the Demolition of two buildings of a 4.7 acre site in the LM Zoning District and the Construction of a two-story Office Building Comprising 81,928 square feet. Parking Facilities include 146 Underground Parking Spaces and 127 Surface Parking Spaces (continued from 2/19/02) MOTION PASSED 9-0 for Item Nos. 2-7.
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MOTION PASSED 7-0 for Item No. 8, Kleinberg, Mossar “not participating.” REPORTS OF OFFICIALS 9. Approval of a Resolution which Authorizes: 1) Issuance and Sale of Not to Exceed $36,418,000 Principal Amount of 2001 University Avenue Off-Street Parking Assessment District Limited Obligation Improvement Bonds to Construct Two New Parking Garages; and 2) Official Actions Related to the Bond Issuance Council Member Beecham would not participate in the item due to a conflict of interest because of the location of his residence to the project area. Deputy Director of Administrative Services Joe Saccio said there was a second series of bonds for the assessment district and brought to the Council’s attention a correction to the agenda. The agenda showed sale of bonds not to exceed $36,418,000, and the correct figure was $35,460,000 shown in the City Managers Report (CMR: 145:02). MOTION: Council Member Morton moved, seconded by Burch, to: 1. Adopt a Resolution Authorizing Issuance of Limited Obligation Improvement Bonds; and 2. Authorize staff to implement the sale of bonds of an amount not to exceed $35,460,000 for acquisition, construction, management, and bond issuance expenditures. Resolution 8131 entitled “Resolution of the City Council of the City of Palo Alto Authorizing Issuance of Limited Obligation Improvement Bonds University Avenue Area Off-Street Parking Assessment District” Council Member Freeman would abstain from the item due to the length of time the issue had been going on previous to her knowledge. Council Member Kishimoto stated she would oppose the motion. MOTION PASSED 6-1-1, Kishimoto “no,” Freeman “abstaining,” Beecham “not participating.” COUNCIL MATTERS 10. Vice Mayor Mossar and Council Members Beecham, Burch and Kleinberg regarding the appropriate Council interface with City staff.
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MOTION: Council Member Beecham moved, seconded by Morton, to refer the issue to the Policy and Services Committee for assessment and possible recommendations for Council policy. MOTION PASSED 9-0. COUNCIL COMMENTS, QUESTIONS, AND ANNOUNCEMENTS Council Member Lytle noted that Santa Clara County staff released a draft of the Stanford Open Space Field Research District, which should go to the Planning and Transportation Commission for review. MOTION: Council Member Lytle, seconded by Burch, to refer to the Planning and Transportation Commission review of the draft of the Stanford Open Space Field Research District and submit comments to Santa Clara County. MOTION PASSED 9-0. Mayor Ojakian asked whether there was an issue in referring the draft to Planning and Transportation Commission. City Attorney Calonne said “no,” but it was a scheduling item. Council Member Beecham passed out a commission report of the Northern California Power Agency . He also noted that the past week was “Engineer's Week.” Council Member Morton noted that the State of the City Address would be held on April 3, 2002 at 6:30 p.m. CLOSED SESSION The meeting adjourned to a Closed Session at 9:15 p.m. 11. Conference with City Attorney -- Existing Litigation Subject: Christine Lasich v. City of Palo Alto; SCC #CV783615 Authority: Government Code 54956.9(a) 12. Conference with City Attorney – Existing Litigation Subject: Morgan McShan v. City Of Palo Alto; SCC #CV797243 Authority: Government Code 54956.9(a) The City Council met in Closed Session to discuss matters involving existing litigation as described in Agenda Item Nos. 11 and 12. Mayor Ojakian announced that no reportable action was taken on Agenda Item Nos. 11 and 12. FINAL ADJOURNMENT: The meeting adjourned at 9:25 p.m.
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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.
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