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HomeMy WebLinkAbout2018-05-29 City Council Summary MinutesCITY OF PALO ALTO CITY COUNCIL FINAL SENSE MINUTES Page 1 of 32 Special Meeting May 29, 2018 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:01 P.M. Present: DuBois, Filseth, Fine; Holman arrived at 5:07 P.M., Kniss; Kou arrived at 8:10 P.M., Scharff; Tanaka arrived at 5:03 P.M., Wolbach Absent: Closed Session 1. CONFERENCE WITH CITY ATTORNEY-POTENTIAL LITIGATION Significant Exposure to Litigation (One Potential Case, as Plaintiff/Defendant) – Issues Relating to the Cable Franchise and Public, Education and Government (PEG) Fee Audit (May 10, 2016) Authority: Government Code Section 54956.9(d) (2) 2. PUBLIC EMPLOYMENT Title: City Manager Authority: Government Code Section 54957(b) MOTION: Council Member Wolbach moved, seconded by Vice Mayor Filseth to go into Closed Session. MOTION PASSED: 5-0-1 Scharff abstain, Holman, Kou, Tanaka absent Council went into Closed Session at 5:02 P.M. Council returned from Closed Session at 7:12 P.M. Mayor Kniss announced no reportable action. Agenda Changes, Additions and Deletions MOTION: Council Member Fine moved, seconded by Council Member Holman to continue Agenda Item Number 7 - Adoption of an Updated Salary Schedule and Revised Compensation Plan … to June 18, 2018. FINAL SENSE MINUTES Page 2 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 MOTION PASSED: 8-0 Kou absent City Manager Comments Ed Shikada, Assistant City Manager, announced the Utilities Department was named Tree Line U.S.A. for the fourth year. Fire personnel recently assisted a young lady with repairs to her bike so that she could continue home. Girl Scout Troop 60016 received a Bronze Award for its efforts to reduce or eliminate the use of plastic straws. The City was partnering with the Teen Arts Council and the Art Center Teen Leadership Committee to present the annual Buoyancy Music and Art Festival on June 3 at 4:30 p.m. Oral Communications Bruce McHenry was searching for politicians to lead a global effort to develop a 50-year plan for road and rail systems. The first step was charging tolls on all roads of two or more lanes. Ken Horowitz was anticipating polling results. He suggested the Council consider a 2¢ tax on sugar-sweetened beverages. The Palo Alto Parent Teacher Association (PTA) Council supported the tax. Fred Balin commented regarding the behavior of a Planning and Transportation Commissioner during a recent meeting of the Planning and Transportation Commission (PTC). He would be updating his formal complaint with the Fair Political Practices Commission. Sea Reddy would be leaving Palo Alto and expressed admiration for the people who lived and worked in Palo Alto. Brian Strope felt the Ross Road bike project was a failure because people felt less safe on it after improvements. The extra curbs should be removed. Stephanie Munoz remarked regarding Stanford University's demolition of ghost houses. Stanford University needed to house its low-income workers. Minutes Approval 3. Approval of Action Minutes for the May 14, 2018 Council Meeting. MOTION: Council Member Scharff moved, seconded by Vice Mayor Filseth to approve the Action Minutes for the May 14, 2018 Council Meeting. MOTION PASSED: 8-0 Kou absent FINAL SENSE MINUTES Page 3 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 Consent Calendar Council Member Holman registered a no vote on Agenda Item Number 4. Council Member Tanaka registered a no vote on Agenda Item Number 6. MOTION: Vice Mayor Filseth moved, seconded by Council Member Scharff to approve Agenda Item Numbers 4-6, 8. 4. Preliminary Approval of the Downtown Business Improvement District (BID) 2018-2019 Annual Report; and Resolution 9758 Entitled, “Resolution of the Council of the City of Palo Alto Declaring an Intention to Levy an Assessment Against Businesses Within the BID for Fiscal Year 2019 and Setting a Time and Place for a Public Hearing on June 11, at 6:00 PM or Thereafter, in the City Council Chambers.” 5. Approval of Amendment Number One to Contract Number C17167868 With Artist Mary Lucking to Increase the Contract Amount by $10,000 for the Completion of the Public Art for the Highway 101 Bike and Pedestrian Bridge. 6. Approval of Three Contracts: 1) a Five-year Contract With BrightView Landscape Services in the Amount of $5,821,106 for Landscape Maintenance Services; 2) a Five-year Contract With Gachina Landscape Management, in the Amount of $376,842 for Landscape Maintenance Services; and 3) a Five-year Contract With Acterra in the Amount of $298,456 for Habitat Restoration in Foothills Park. 7. Adoption of an Updated Salary Schedule and Revised Compensation Plan for Unrepresented Limited Hourly Employees Effective July 1, 2017 - June 30, 2021. 8. Approval of a Construction Contract With State Roofing Systems, Inc. in an Amount Not-to-Exceed $775,506 in the Roofing Replacement (PF-00006) Capital Improvement Program Project to Provide Construction Services to Replace the Existing Roofs at Ventura Community Center Units 1, 2, & 3 and Repair the Water Damaged Soffit Areas and Stucco Under all Three Roof Overhangs. MOTION FOR AGENDA ITEM NUMBER 4 PASSED: 7-1 Holman no, Kou absent MOTION FOR AGENDA ITEM NUMBER 6 PASSED: 7-1 Tanaka no, Kou absent FINAL SENSE MINUTES Page 4 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 MOTION FOR AGENDA ITEM NUMBERS 5 AND 8 PASSED: 8-0 Kou absent Action Items 9. Resolution 9759, Entitled “Resolution of the Council of the City of Palo Alto Designating 450 Bryant Street, Known as the Avenidas Building, as a ‘Sender Site’ in the Transfer of Development Rights (TDR) Program; Direction to Staff to Issue Requests for Proposals for Avenidas and College Terrace Building TDRs; and Approval of Commitment of Additional $2 Million for Enhancements to the New Junior Museum and Zoo.” Rob de Geus, Deputy City Manager, reported in October 2015 the Council agreed to contribute $5 million to Avenidas' efforts to renovate 450 Bryant Street, a building owned by the City and leased to Avenidas. Avenidas had raised $13 million to renovate the building. Staff recommended the $5 million be comprised of $2.5 million from the Community Center Impact Fee Fund and $2.5 million from the sale of Transfer of Development Rights (TDR). In 2015, the Council approved the contribution but not the sale of TDRs. On December 4, 2017, the Council approved funding support for the Junior Museum and Zoo (JMZ). In addition, the Infrastructure Plan had a funding gap. If the Council approved the sale of TDRs, the $2.5 million from the Community Center Development Impact Fee Fund (Fund) could be used to fund the City's commitments to the JMZ. Hamid Ghaemmaghami, Real Property Manager, advised that the sale of 9,188 square feet of TDRs from 450 Bryant Street and 2,500 square feet from the College Terrace Building would complete funding of the City's commitment to Avenidas. The Avenidas building was a listed Historical Category 2 building and was eligible for TDRs equal to 50 percent of its square footage. The Council declared the College Terrace Building as a sender site in April 2009, and the action generated TDRs of 2,500 square feet. The City sold TDRs for the Sea Scout Building for $405 per square foot. TDRs for the Roth Building sold for approximately $325 per square foot. If TDRs were sold for the proposed minimum price, they would generate approximately $3,124,200. At a sale price of $350 per square foot, the sale would generate approximately $4 million. Lalo Perez, Chief Financial Officer/Administrative Services Department Director, disclosed that the City had paid $2.5 million of the $5 million Avenidas commitment from the Fund. Assuming TDRs were sold for $275 per square foot, it would generate approximately $3.12 million. The resulting Fund balance would be approximately $6.7 million. The FINAL SENSE MINUTES Page 5 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 $6.7 million balance would be reduced by allocating $2.5 million to the Avenidas commitment and $3.9 million to the JMZ commitment, leaving a Fund balance of approximately $275,000. Staff requested approval of a $2 million commitment to the JMZ, of which $1 million would be raised by the Friends of the Junior Museum and Zoo (Friends). The Fund balance after payment of the $2 million commitment would be negative $1.7 million. The deficit would be $724,000 if the Friends succeeded in raising $1 million. Staff expected additional Community Center Development Impact Fees (Impact Fees) would be collected, which would reduce the deficit. Assuming no other funding sources were available, Staff would recommend Infrastructure Reserve funds be used to make up any difference. Alternatively, the Council could choose to make up the difference with funds from the Operating General Fund. Mr. de Geus disclosed that Staff felt the Friends would raise $1 million because of their focus on netting the Zoo. Rebuilding the JMZ would not be possible without the generous support of many donors. Mr. Dick Peery made contributions of $15 million to the JMZ project. Due to escalating costs and the need for redesigns and value engineering, elements of the project were eliminated. Staff requested an additional $2 million commitment to the JMZ for a courtyard treehouse and netting the Zoo, which Mr. Peery strongly wanted to retain in the project. The Friends had pledged to raise $1 million of the $2 million commitment. The City would fund its $1 million by 2020. Mr. Ghaemmaghami recited next steps. Staff would issue a Request for Proposals (RFP) in June with a submission deadline of July. In September, Staff would present the results. Following Council approval, Staff would close the sales in October. Mayor Kniss announced she would accept a Motion for sale of the TDRs and a second Motion for a commitment to the JMZ. Council Member Holman noted an initial City commitment of $3.9 million to the JMZ and a second commitment to the JMZ in February. She questioned whether the proposed $1 million commitment was in addition to the earlier commitments. Mr. de Geus replied yes. The City had committed $7.2 million to the JMZ in earlier commitments. Council Member Holman inquired about a clear description for the use of Impact Fees. She questioned whether the JMZ charging an entry free would disqualify it from use of Impact Fees. FINAL SENSE MINUTES Page 6 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 Mr. de Geus reported Staff had worked closely with the City Attorney's Office regarding use of the Impact Fees. Use of the Impact Fees were subject to strict rules and regulations. Molly Stump, City Attorney, reported charging an entry fee would not make it inappropriate to utilize Impact Fees. Council Member Holman inquired about the rationale for setting the base price for TDRs at $275. Mr. Ghaemmaghami indicated the average price for TDRs sold by the City was approximately $325. At a price of $275, the TDRs would be attractive to potential buyers. The minimum price for the Roth Building TDRs was set at $200, and the TDRs sold for $300. Mr. Perez advised that the Council could set a different minimum price. Council Member Holman did not believe $275 was high enough. Mr. Ghaemmaghami disclosed that the City was not required to accept a bid at $275. Ms. Stump reported bids below $275 would not be accepted. Bids would be brought to the Council, at which time the Council could select the highest bid amount, select another bid amount, or decline all bids and cancel the RFP. Council Member Holman stated the excess TDR sale proceeds should be utilized specifically for seismic and historic rehabilitation, but that was not explicitly stated in the Staff Report. Mr. Perez reported Staff intended the excess funds be used for seismic and historic rehabilitation. Mayor Kniss asked if Council Member Holman wished to suggest a minimum price. Council Member Holman responded yes, a minimum price of $300 per square foot. Council Member Scharff voiced pleasure that both projects were proceeding. People would benefit from the projects and notice the benefits of the projects. Completing both projects was a testament to the Palo Alto spirit. Council Member DuBois asked if monies in the Sea Scout fund were being used or held. FINAL SENSE MINUTES Page 7 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 Mr. Perez recalled the Council's identification of those funds as a potential funding source for the Roth Building if its supporters met the goals the Council set forth. If the Roth Building supporters did not meet the goals, then the funds could be used for some purpose related to historical restoration. Staff did not consider the Sea Scout funds available for the Avenidas or JMZ projects. The Roth Building project had a deadline of November 2018 to demonstrate compliance with the goals. Council Member DuBois concurred with Council Member Holman's comments regarding the minimum price for TDRs. He would prefer to review Infrastructure Plan projects altogether when considering allocation of funds. He inquired whether Staff considered using Impact Fees for any other project. Mr. de Geus reported Staff had been working on the JMZ project for many years, and it was probably the highest priority for funding at the current time. Council Member DuBois asked if Staff used a process to set the priority of projects. Mr. Perez clarified that the Impact Fees could not be used for just any community facility. Council Member DuBois was thinking particularly of using the Impact Fees for Cubberley Community Center. Mr. Perez agreed that Impact Fees could be utilized for the City's 8 acres at Cubberley. Council Member DuBois asked if Impact Fees could fund the Animal Shelter. Mr. Perez advised that Impact Fees could fund some element of the Animal Shelter. Ed Shikada, Assistant City Manager, suggested the Staff recommendation reflected Staff's attempts to pull together funding and meet the interests of all parties. Staff wanted to present items to the Council as the items were ready for Council action. Council Member DuBois inquired about efforts to prevent cost overruns. Mr. de Geus advised that the Council had approved an extensive contract to lease the site to the Friends so that the Friends could manage the construction project. Vance Brown was an excellent contractor. The City FINAL SENSE MINUTES Page 8 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 had a 10 percent contingency fund for the project, which potentially could be used to support some of the extra elements. Council Member DuBois asked if the $2 million could be treated as a loan that would be repaid from JMZ entry fees. Mr. de Geus reported entry fees would support the operations of the JMZ. Even with entry fees, the General Fund would be used to subsidize the JMZ. Mayor Kniss inquired about a groundbreaking for the JMZ project. Mr. de Geus hoped to break ground at the end of June. Aletha Coleman, Friends of the Junior Museum and Zoo Board President, remarked that all parties wanted the best and most wonderful JMZ that could be built for the children of Palo Alto. MOTION: Council Member Scharff moved, seconded by Council Member Wolbach to: A. Adopt a Resolution designating 450 Bryant Street, known as the Avenidas Building, to be eligible as a “Sender Site” for 9,188 square feet in the Transfer of Development Rights (TDR) program; B. Direct the City Manager or his designee to issue a Request for Proposals (RFP) for the sale of 9,188 square feet of TDRs from the Avenidas Building at the minimum starting price of $275 per square foot; C. Direct the City Manager or his designee to issue a Request for Proposals (RFP) for the sale of 2,500 square feet of TDRs from the College Terrace Building located at 2300 Wellesley Street at the minimum starting price of $275 per square foot and direct Staff to return to City Council with the results of the RFP; D. Authorize the City Manager or his designee to transfer $2.5 million in proceeds from the sale of the TDRs to Avenidas, to be used for the cost of historic and seismic rehabilitation of the Avenidas Building (this $2.5 million contribution will fulfill the remaining portion of the City’s pledge to contribute a total of $5 million towards the historic and seismic rehabilitation of the Avenidas building); and E. Approve the commitments described in Staff Report Attachment B from the City Manager to Dick Peery in support of the Junior Museum and Zoo (JMZ) project, stating that the City supports construction of $2 million in enhanced features and will contribute an additional $1 FINAL SENSE MINUTES Page 9 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 million toward the cost, with the Friends of the Junior Museum and Zoo conducting private fundraising for $1 million, by fiscal year 2020. Stephanie Munoz did not feel the Avenidas' project was needed. Proceeds from the sale of TDRs should be used to fund low-income housing. MOTION SPLIT FOR THE PURPOSE OF VOTING MOTION 1: Council Member Scharff moved, seconded by Council Member Wolbach to: A. Adopt a Resolution designating 450 Bryant Street, known as the Avenidas Building, to be eligible as a “Sender Site” for 9,188 square feet in the Transfer of Development Rights (TDR) program; B. Direct the City Manager to issue a Request for Proposals (RFP) for the sale of 9,188 square feet of TDRs from the Avenidas Building at the minimum starting price of $275 per square foot; C. Direct the City Manager or his designee to issue a Request for Proposals (RFP) for the sale of 2,500 square feet of TDRs from the College Terrace Building located at 2300 Wellesley Street at the minimum starting price of $275 per square foot and direct Staff to return to City Council with the results of the RFP; and D. Authorize the City Manager or his designee to transfer $2.5 million in proceeds from the sale of the TDRs to Avenidas, to be used for the cost of historic and seismic rehabilitation of the Avenidas Building (this $2.5 million contribution will fulfill the remaining portion of the City’s pledge to contribute a total of $5 million towards the historic and seismic rehabilitation of the Avenidas building). Council Member Scharff believed the sale of TDRs was a good way to fund the Avenidas commitment. In 2006, the minimum asking price was $85, and the City received $95. In 2010, the minimum asking price was $90, and no one submitted a bid. When the minimum price was $200, the City received a $300 bid. In 2016, the minimum price was $225 for two sales, and the City received $405 and $300. The right market price was probably $300 in 2016 given the small number of bidders. The minimum asking priced seemed to have very little relationship to the market price. The question was whether the Council wanted to take the market price or hold the TDRs for a better market price in the future. A minimum price of $275 was probably the correct price for the proposed sale of TDRs. Setting a price at $275 or $300 would not make a difference in the amount the City FINAL SENSE MINUTES Page 10 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 received. The Council could decide whether it liked the market price when the bids were presented to the Council. Mayor Kniss noted the current market was good. Council Member Wolbach emphasized the importance of taking care of community assets and of the services provided by Avenidas. He requested the estimated date for completion of the Avenidas project. Mayor Kniss indicated Avenidas hoped to open the building at the end of 2019. Council Member Wolbach felt the building needed upgrades so that Avenidas could continue to provide quality services. Council Member Tanaka inquired about the number of unsold TDRs in the City's possession. Mr. Ghaemmaghami answered 2,500 square feet from the College Terrace Building. The Avenidas TDRs would become available if the Council approved the Staff recommendation. Council Member Tanaka requested the number of TDRs the City could have if it designated more sender sites. Mr. Ghaemmaghami did not have that information at the current time. Council Member Tanaka requested Staff comment on the feelings of College Terrace residents about the College Terrace Building TDR sale proceeds being used for another site. Mr. Perez clarified that renovation of the College Terrace Library was funded with General Fund monies. Council Member Tanaka understood a sale of TDRs for $275 would result in a $300,000 shortfall. Mr. Perez clarified that a sale at $275 would result in a profit of approximately $275,000 for the four items contained in the Motion. The Council approved the $5 million commitment to Avenidas in 2015. Council Member Tanaka did not understand the Staff Report statement regarding an infrastructure funding deficit when the Finance Committee reviewed a balanced CIP budget. FINAL SENSE MINUTES Page 11 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 Mr. Perez explained that the City needed $76 million to fund the Infrastructure Plan. If the revenue projections for new hotels became reality, the City could balance the budget. Mr. Shikada added that the budget was balanced for the upcoming fiscal year. Beyond the upcoming fiscal year, the Infrastructure Plan was much larger than the budget. Mr. Perez advised that the funding gap would grow if the Council did not approve the sale of TDRs. Council Member Holman recalled the City identified sufficient funding for the College Terrace Library project without the use of TDRs. She suggested the Avenidas TDRs be broken into lots of 2,500 square feet. She asked why Staff did not recommend that. Mr. Ghaemmaghami disclosed that Staff would sell the TDRs in portions but had not decided the amount of square footage in each portion. Council Member Holman did not wish to sell 9,000 square feet in TDRs that would create issues for designing and reviewing a project. She felt a minimum of $300 per square was appropriate as the market had not grown soft. AMENDMENT TO MOTION 1: Council Member Holman moved, seconded by Council Member XX to replace in Motion 1 Parts B and C, “$275” with “$300.” AMENDMENT TO MOTION 1 FAILED DUE TO THE LACK OF A SECOND Council Member DuBois expected to receive bids at a much higher price. He inquired whether a bidder could bid one amount provided he was allowed to purchase two lots of TDRs at that amount. Mr. Perez advised that bidders submitted their bids based on their needs. Council Member DuBois asked if a bidder could submit multiple bids. Mr. Perez replied no. Mr. Ghaemmaghami revealed that the City could ask bidders for a higher price. Vice Mayor Filseth supported the projects but not the use of TDRs as a financing vehicle. FINAL SENSE MINUTES Page 12 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 Mayor Kniss remarked that the Senior Center was the City's only program for senior citizens. The number of program participants had outgrown the capacity of the building. The Senior Center was an important part of the community. The Avenidas project was one of the better uses of City money. Council Member Fine felt the sale of TDRs was a perfect way to fund the projects and a natural way of doing business. New buildings and new development funded City services and facilities. Council Member Kou believed the style of the addition was not consistent with the existing building. The difference in styles desecrated the historical aspect of the building. She concurred with Vice Mayor Filseth's comments regarding TDRs. In addition, parking was not adequate for the site. Council Member Tanaka inquired whether the $5 million commitment was contained in the budget. Mr. Perez explained that $2.5 million of the $5 million had been paid. If the Council did not approve the Motion to sell TDRs, then Staff would probably recommend funding the $2.5 million commitment with the remaining balance in the Fund. MOTION 1 PASSED: 7-2 Filseth, Kou no MOTION 2: Council Member Scharff moved, seconded by Council Member Wolbach to: E. Approve the commitments described in Staff Report Attachment B from the City Manager to Dick Peery in support of the Junior Museum and Zoo (JMZ) project, stating that the City supports construction of $2 million in enhanced features and will contribute an additional $1 million toward the cost, with the Friends of the Junior Museum and Zoo conducting private fundraising for $1 million, by Fiscal Year 2020. Council Member Scharff reiterated that he was happy to see this project and the netting component move forward. Council Member Wolbach had been impressed with Friends, Staff, and the donor community working together to create an incredible vision and modifying the project to meet the timeline and budget. The proposed project was a good one. Council Member DuBois supported the Motion, but he expressed concern regarding overages. Vance Brown as the contractor provided some comfort. FINAL SENSE MINUTES Page 13 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 He encouraged Staff to work with Vance Brown to ensure it did not incur additional expense. Mr. de Geus indicated Staff would do everything they could to be efficient and effective in partnership with Vance Brown. Council Member Holman expressed concern about the Council having to decide between worthwhile projects and fiscal responsibility. The Council was not well served by not having contextual information to make decisions. Council Member Kou concurred with Council Member Holman. The Council needed to take a comprehensive look at projects and funding. Council Member Scharff suggested a number of Council Members misunderstood the process. The City had an Infrastructure Plan, which included the JMZ. Staff presented a funding plan for the City's commitment to Avenidas and the JMZ. The Council had decided to review the issue of requesting voter approval of a Transient Occupancy Tax (TOT) increase to fund the Infrastructure Plan. If the Council decided not to place a measure on the ballot, then the City would have a shortfall, and the Council would have to determine the priority of infrastructure projects. Theoretically, if everything went right, the City could fund all infrastructure projects without a TOT tax. It was unlikely everything would go right. The cost of projects could not be known until bids were received. There was no reason to review each project for reductions until the Council knew the City would not have sufficient funding. Staff would present the Public Safety Building project without contextual information in June, but it was important for the Council to proceed with the project because of the cost of delaying the project. The Council should execute the Infrastructure Plan as it promised it would. Complaining that Staff was not doing the right thing was wrong. Council Member Tanaka asked if the funding for Avenidas and JMZ was contingent on sale of the TDRs. Mr. Perez responded yes. Council Member Tanaka felt the list of projects lacked prioritization. To request additional funding from the voters without prioritizing projects and ensuring sufficient funding was available was misguided. The Council had talked about prioritizing projects but had not actually done it. Council Member Wolbach concurred with Council Member Scharff's comments. The Council delegated funding of infrastructure projects to the Finance Committee. FINAL SENSE MINUTES Page 14 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 Mayor Kniss advised that a $15 million donation was a first for the City. The JMZ would be a unique landmark in the City. She inquired whether Mr. Peery's name would be on the building. Mr. de Geus referred to the City's policy for naming facilities and indicated a name for the JMZ would be presented to the Council. Mayor Kniss was confident Staff would find funding for Avenidas and the JMZ. MOTION 2 PASSED: 8-1 Kou no Mayor Kniss reported Council Member Tanaka wished to speak to his no vote on a Consent Calendar item. Council Member Tanaka advised that he voted no on Agenda Item Number 6 because of the 30 percent increase in the contract cost. This type of contract increase made it difficult for the Council to balance the City's budget. Vice Mayor Filseth believed the Council would not accomplish any projects if it waited for all the information it needed to make decisions. The Council made decisions the best it could with the information it had. Council Member DuBois noted the interest in understanding the $76 million infrastructure deficit. The Council did not refer items to Council Committees for decisions but for recommendations. As a Council Member, he had difficulty considering projects one at a time when the cost of each project was over budget. Council Members not on the Finance Committee probably did not have a clear understanding of how the City would meet the $76 million deficit. Mayor Kniss inquired whether the Council would learn more during the Budget hearing. Council Member Scharff responded no. Budget hearings were not the right vehicle to discuss infrastructure projects. Mayor Kniss understood Council Members were interested in having a list of infrastructure projects and their costs. 10. Connecting Palo Alto Rail Program Status Update and Initial Screening of Ideas for Further Study (Continued From May 14, 2018). Mayor Kniss advised she would not participate in the Agenda Item because she owned real property within 500 feet of the Caltrain rail corridor. FINAL SENSE MINUTES Page 15 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 Vice Mayor Filseth advised he would not participate in the Agenda Item because he owned real property within 500 feet of the Caltrain rail corridor. Council Member DuBois advised he would not participate in the Agenda Item because he lived within 500 feet of the Caltrain rail corridor. Molly Stump, City Attorney, clarified that Council Member DuBois held a rental interest in real property located within 500 feet of the rail corridor. Vice Mayor Filseth and Mayor Kniss held ownership interests in real property close to the rail line. Mayor Kniss, Vice Mayor Filseth, and Council Member DuBois left the meeting at 9:09 P.M. Council took a break from 9:09 P.M. to 9:21 P.M. Ed Shikada, Assistant City Manager, noted the City Manager's Office had taken the lead role with respect to grade separations. A small group of community members had expressed interest in a higher level of engagement with Staff, and Staff was reviewing a means to accomplish that while maintaining communications with the entire community. Josh Mello, Chief Transportation Official, reported Staff held a series of community workshops and roundtables in 2017 to educate and empower the public and to share information. In 2018, Staff established 2028 as the date by which they wanted to complete construction of grade separations. In addition, High Speed Rail could begin operations in 2028. The City needed to identify a preferred alternative in 2018 and begin the environmental analysis in 2019 followed by final design and acquisition of rights-of-way. Staff anticipated beginning construction in 2023 with a five-year construction window. A preferred solution would include one preferred alternative for each of the four grade-crossing locations, which were Palo Alto Avenue, Churchill Avenue, Meadow, and Charleston. The first option for grade crossings was to leave them as-is or leave them as-is but make minor safety improvements. The second option was to close at-grade crossings to all vehicles or to motor vehicles only. The roadway could be located underneath the existing rail line, over the rail line, or a hybrid of the two. The rail line could be located underneath the roadway via a tunnel or trench or over the roadway via a berm or viaduct. If the Alma Street crossing remained at the existing grade, there would be complications with the interaction of side streets and the rail crossing. Following all community workshops and roundtables, Staff compiled a master list of 34 Ideas. To reduce the number of Ideas, Staff utilized an initial screening technique and attempted to advance more feasible ideas. Screening criteria were separated into three categories: technical, financial, and property and FINAL SENSE MINUTES Page 16 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 construction. Staff did not assign a different weight to Tier 1 and Tier 2 during the initial screening. There had been discussion as to whether property impacts needed to be moved into Tier 1, but that would not affect the results of the initial screening. Staff identified funding feasibility and constructability as fatal flaws and considered whether an Idea could be constructed within the existing political and agency framework. Staff presented 16 Ideas to the Rail Committee in March and subsequently eliminated four Ideas, combined six Ideas into three, and added one Idea. At the April 18 Rail Committee meeting, two Ideas were modified, three were removed, and three were added. The Rail Committee recommended ten ideas. Next steps included reducing the number of ideas to six to eight with community engagement. Rob de Geus, Deputy City Manager, advised that Staff had worked with community members who had worked on the project or who had expertise. In the next phase, funds would be expended to study options. Staff was working with the consultant to develop a revised community engagement process. Community members had time to become engaged in the process. Council Member Wolbach disclosed that the Rail Committee focused on what was classified as Tier 2 projects. He inquired about the next step to reduce the number of Ideas from ten to four. Mr. Shikada revealed that science such as baseline information and existing conditions was critical to progress. At the Rail Committee meeting in June, Staff hoped to provide additional information that would help eliminate a number of alternatives. Because of the short time between the June 20 Rail Committee meeting and the June 25 Council meeting, Staff would probably present a Rail Committee recommendation to the Council in August. Council Member Wolbach suggested the Rail Committee meeting be held earlier, if possible, so that a recommendation could be presented to the Council prior to its summer break. Mr. Shikada reminded Council Members of the need to allow the community time to review materials and recommendations so that they could participate in Council meetings. In addition, the Council's June agendas were filled. Council Member Wolbach noted freight rail on the Caltrain corridor affected actions the City could take. He asked when the Council might receive information regarding the future of freight rail on the corridor. Mr. Mello clarified that freight operations would affect alternatives that required a grade greater than 1 percent. The City could request variances. FINAL SENSE MINUTES Page 17 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 Mr. Shikada indicated the cost of changing a grade from 1 percent to 2 percent would significantly impact alternatives that proposed a significant vertical dimension. Council Member Wolbach inquired whether the City Council could encourage flexibility in any requirements for grade. Mr. Mello stated Staff could inquire as to the status of Caltrain's negotiations regarding freight rail. The City had limited ability to influence negotiations or requirements. The Rail Committee inquired about purchasing the freight rights, but an estimate of the cost had not been generated. Mr. Shikada added that freight changes were not imminent. Council Member Wolbach suggested the Rail Committee consider alternatives with a 1-percent and a 2-percent grade. Council Member Kou inquired whether the California Public Utilities Commission's (CPUC) assertion that there was no prohibition on rail capacity expansion was correct. Mr. Mello explained that the CPUC was responsible for regulating the safety of railroads. The CPUC would only have input as to the frequency of trains related to the safety of the operation of the corridor. He was not aware of any such ruling. Council Member Kou requested Staff look into it because she wanted the assertion confirmed or denied. She inquired whether Staff had planned any public outreach regarding selection of four to eight alternatives before the next Rail Committee meeting. Mr. Shikada reported Staff had not scheduled any outreach, but Staff wanted to discuss with consultants a strategy for community engagement in the next phase. Staff anticipated outreach would be most effective once the final four to eight alternatives had been selected. Based on initial work, Staff anticipated some of the alternatives would be eliminated because of extensive property impacts. Council Member Kou wanted to see community engagement on the Council's calendar. She asked if Staff considered the proposal for passenger lines to travel in a tunnel underneath freight lines. Mr. Mello indicated that proposal could be a variation of one of the ten Ideas. Mr. Shikada noted the advantage of the tunnel alternative was the opportunity to develop the real property above a tunnel. The Rail FINAL SENSE MINUTES Page 18 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 Committee had discussed developing the real property above a tunnel to generate revenue or for parks. Council Member Kou requested Staff analyze the variation before indicating it was not feasible. Mr. Mello returned to the question regarding CPUC. Caltrain utilized fixed- block signaling, which could limit capacity. However, Caltrain was upgrading its signaling to rolling block technology. Caltrain had stated that it could run at most 20 trains per hour with or without High Speed Rail. Council Member Fine understood the CPUC would require grade separations at a certain frequency of trains rather than prohibit expansion of rail capacity. Mr. Mello reported the CPUC could not mandate an action without providing funding to support the action. The CPUC had a list of at-grade crossings with the greatest safety concerns, and those crossings were eligible for State and Federal funding. Council Member Fine encouraged Staff to continue defining the enhanced engagement piece. He suspected many public speakers would inquire about public engagement and a stakeholder group. He would appreciate seeing public outreach on the Council's agenda. Mr. Shikada advised that outreach was listed on the Council's June 20 agenda. Council Member Fine inquired about activities at the State level or partnerships for funding mechanisms that might accomplish grade separations. Mr. Shikada disclosed that Staff had not focused on State funding. Staff was increasing their participation with all cities along the corridor through the Local Policy Maker Group. Council Member Fine suggested Staff consider engaging lobbyists on the topic of grade separations. Mr. Mello added that Staff suggested funding be allocated to grade separations at every opportunity. Council Member Tanaka believed the Council needed a comprehensive list of potential funding sources and to learn the community's support for those sources in parallel to narrowing the alternatives. He inquired about a process for the Council to learn which funding mechanisms were feasible. FINAL SENSE MINUTES Page 19 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 Mr. Mello reiterated that one of the fatal flaws during the initial screening process was funding feasibility. Staff reviewed all the potential funding sources in the 2017 financing White Paper and State and Federal funding opportunities for each Idea. If the total of all those funding sources was well below the estimated cost of the Idea, then Staff gave it a poor score for funding feasibility. Council Member Tanaka requested the rationale for not following a process to narrow funding sources similar to the process to narrow Ideas. The White Paper could not indicate the community's willingness to support different funding sources. Mr. Shikada reported Staff was investigating different methods to attack the funding issue, such as available funding and Caltrain's role in grade separation. Part of the calculus was obtaining sufficient clarity around projects so that Palo Alto could compete for funding. It was difficult to ask the public about its willingness to fund alternatives when the alternatives were not clearly defined. Council Member Tanaka inquired about the status of the true cost of alternatives including potential litigation. Ms. Stump clarified that the acquisition of private property required payment of the market rate for the property. Hopefully the market rate could be set through negotiation and a voluntary sale. If there was not a voluntary sale, then the government could initiate a process that would also involve the payment of market rate. A question about market rate could be litigated. Council Member Tanaka asked if the total cost of alternatives would include the market rate payment and the cost of litigation should the eminent domain process be necessary. Mr. Mello advised that a detailed cost estimate would be prepared for each of the four to eight alternatives. Mr. Shikada added that eminent domain could involve property rights rather than property acquisition. Council Member Tanaka asked if Staff had responded to the City of Menlo Park's letter. Mr. Mello was coordinating with Menlo Park staff regarding collaboration on projects. FINAL SENSE MINUTES Page 20 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 Council Member Scharff asked if the Palo Alto Avenue viaduct would require collaborating with Menlo Park to be at the higher level. Mr. Mello replied yes. The consultant was reviewing the alternative to determine if grades and right-of-way were sufficient. Council Member Scharff asked if the viaduct alternative was easier than the hybrid alternative for Palo Alto Avenue. Mr. Mello indicated Staff was reviewing all the details and hoped to have preliminary information to present to the Rail Committee on June 20. Council Member Scharff did not believe evaluation of all the alternatives would require community expertise. The Citywide tunnel should be in a class by itself. He requested the cost of the City-wide tunnel as reported in the White Paper. Mr. de Geus seemed to recall the amount was $3.4 billion. Council Member Scharff recalled a prior Rail Committee determining that imposing all possible taxes would not generate sufficient revenue to fund a City-wide tunnel. Staff previously indicated that the Council could spend $250,000 for each option it chose to study. The Council could decide some alternatives were infeasible based solely on an estimated cost of the alternative. Parag Patkar, speaking for Swati Solank, Lisa Marcacci, Mandar Borkar, Khurskid Gandhi, shared a petition with approximately 300 signatures. The residents strongly opposed the use of eminent domain, opposed all raised options, supported lowered rail options, and supported pedestrian and bicycle safety. The residents requested the costs, funding sources, property loss, and traffic impact of options for a trench with and without freight, tunnel with and without freight, and road under rail. The residents wanted to be proactive in future discussions. Neva Yarkin remarked that grade separations needed to be complete by 2023. An underpass at the Churchill crossing would require the taking of 36 homes. An underpass for pedestrians and cyclists at Churchill would not require the taking of homes. Surely the other three crossings would require the taking of property. The Council should weigh the train options carefully. Carolyn Schmarzo opposed the use of eminent domain to propel the train project. Eminent domain was a poor use of City funds; would result in loss of revenue, air pollution, and noise pollution; made the City vulnerable to FINAL SENSE MINUTES Page 21 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 lawsuits; would discourage investing in residential property; and would eradicate history. Bob Moss advised that cost estimates for each alternative and the potential number of homes subject to eminent domain were not included in the Staff Report. He opposed the closure of Palo Alto Avenue and Churchill Avenue because it would divert more than 25,000 vehicle trips per day to other streets. Real property along the rail right-of-way could be sold to help fund the tunnel. The rail under the road option, particularly at Meadow and Charleston, preserved much of the environment and caused less damage to neighborhoods. Mary Sylvester opposed the use of eminent domain and widening Embarcadero Road. Pedestrian and bike safety must be given the highest priority. The integrity of community neighborhoods must be protected. Barbara Hazlett vehemently opposed any proposal involving the widening of Embarcadero Road. Widening the underpass would attract many thousands of car trips along the entire road and encourage more speeding. Widening Embarcadero was a direct safety concern and directly contradicted the Comprehensive Plan. Community engagement was missing from the process. Ryan Globus commented that accidents at grade crossings caused disruption for tens of thousands of people. The tunnel was far too expensive to be constructed. A tunnel would need ventilation because some trains would continue to utilize diesel engines. Rachel Kellerman expressed concern regarding the current traffic safety issues on the 1100 block of Emerson and was alarmed by the potential for greatly increased traffic if the Churchill crossing closed. The 1100 block of Emerson was not designed to be a cloverleaf. Tom Kellerman suggested the Council study the impact of projects on the location and other neighborhoods and streets. The Council could not determine the best proposal without that data. David Shen presented North Old Palo Alto Community Group's latest petition with a total of 456 signatures. The petition supported the highest priority for bicycle and pedestrian safety, reducing traffic congestion, and maintaining neighborhoods' integrity and opposed eminent domain, raised rail options, and any underpass or overpass option. He urged the Council to avoid any delays. FINAL SENSE MINUTES Page 22 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 Richard Purkey supported the principles of the North Old Palo Alto Community Group. Cedric de la Beaujardiere urged the Council to consider viaducts as options that achieved full grade separation at an affordable price and did not require the use of eminent domain. Viaducts could be designed to be quieter than at-grade trains and to protect residents' privacy. Stephen Rosenblum urged the Council to carefully consider an option that was equitable for all parts of Palo Alto and that complied with the Comprehensive Plan. Staff should obtain appropriate community feedback. He did not recall the Rail Committee discussing the White Paper. Jason Matlof reiterated the North Old Palo Alto Community Group's adamant opposition to the use of eminent domain and the destruction of neighborhoods. Two options for hybrid underpasses remained under consideration even though there was tremendous opposition to the use of eminent domain. The group supported lowered rail options if they were feasible based on finances and engineering. The North Old Palo Alto area should be considered a system that included Embarcadero Road. Jeff Wolfeld expressed interest in an ongoing dialog among the City, its contractors, and stakeholders. The project needed a formal stakeholder group composed of business representatives, members of the community, and representatives of neighborhoods directly impacted by the chosen alternatives. Monica Tan Brown reiterated the North Old Palo Alto Community Group's comments. Taking real property at Churchill was untenable. She urged the Council to choose the option that had the least impacts. Rachel Croft suggested Staff work with other cities to develop a regional solution. She supported North Old Palo Alto Community Group's proposals. David Epstein requested the Council not close crossings without understanding the impacts on neighborhoods. Widening Embarcadero Road would not solve any problems. Jason Stinson opposed the use of eminent domain and raised rail. He expressed concerns about increased traffic on Churchill. Neil Shea cautioned the Council against anything that would delay or put at risk Measure B funding. Solutions should emphasize trains and bicycles. He supported closure of some streets and raised rail. FINAL SENSE MINUTES Page 23 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 Martin Bernstein concurred with retaining viaduct options. Options for economic capture could offset the economic loss to the City. Keith Reckdahl remarked that the grade limitations due to freight could impact the trade study. Freight lines should accommodate the City's design of crossings to minimize costs for the City. Nadia Niak, Californians Advocating for Responsible Rail Design (CARRD), encouraged community participation in selecting alternatives. Building community consensus would lay the foundation for community support and any potential additional funding. Florence Keller questioned whether the Charleston-Arastradero Corridor would have to be reconstructed to facilitate grade separations. The Council should weigh financial concerns, community cohesiveness, safety of pedestrians and bicyclists, acoustical blight, and visual blight in reaching a solution. Adina Levin, Friends of Caltrain, advised that Friends of Caltrain did not take positions on local grade separations. Grade separations were good to support more rail services over time and cross-town connectivity. Friends of Caltrain supported regional partnerships to look at regional funding for large-scale projects. A 2-percent grade for freight could be advantageous. Closing Palo Alto Avenue could impact commuters from Menlo Park into Palo Alto. Roberto Peon suggested more community outreach could result in more coherent public comments. Widening Embarcadero Road would greatly impact residents along Embarcadero Road. A one-lane underpass on another street could be beneficial to traffic congestion. Rob Levitsky did not believe widening Embarcadero Road would improve traffic flow. Council Member Fine advised that the Council was moving forward with the process rather than judging individual options. He encouraged the two Council Members not on the Rail Committee to review Rail Committee actions and outreach. The Council wanted to avoid the use of eminent domain as much as possible; however, excluding its use would preclude most of the alternatives. MOTION: Council Member Fine moved, seconded by Council Member Wolbach to: FINAL SENSE MINUTES Page 24 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 A. Approve moving forward with the following specific grade separation options, and authorize polling if Staff deems appropriate: i. CAH - Churchill Avenue roadway under railroad hybrid; ii. CAR - Churchill Avenue roadway over railroad reverse hybrid; iii. CAX - Churchill Avenue crossing closed; improvement options include: widen existing Embarcadero Road undercrossing, add new traffic signals at Embarcadero Road ramps, build bike/pedestrian crossing at Churchill Avenue, and/or build Seale Avenue bike/pedestrian crossing to connect to Peers Park and Stanford Avenue bicycle boulevard; iv. MCL - Meadow Drive and Charleston Road railroad over roadway hybrid and build Loma Verde Avenue bike/pedestrian crossing to connect to Margarita Avenue bicycle boulevard; v. MCR - Meadow Drive and Charleston Road roadway over railroad reverse hybrid and build Loma Verde Avenue bike/pedestrian crossing to connect to Margarita Avenue bicycle boulevard; vi. MCT - Meadow Drive and Charleston Road roadway over railroad trench or tunnel; Alma Street would not be within trench or tunnel (maintains Alma Street connections to Meadow Drive and Charleston Road); vii. MCV - Meadow Drive and Charleston Road railroad over roadway viaduct; viii. PAH - Continue proposed Menlo Park railroad over roadway hybrid and/or viaduct across San Francisquito Creek and Palo Alto Avenue; ix. PCX - Palo Alto Avenue crossing closed; improvement options include: build an Everett Avenue bike/pedestrian undercrossing and widen University Avenue; and x. WBP - City-wide deep-bore railroad under roadway tunnel within Palo Alto city limits with two new underground rail stations. Council Member Fine recommended Staff analyze system circulation and alternatives and provide more information regarding freight buyout and grade percentage, enhanced community engagement, funding options for alternatives, and alternative analyses. The ten alternatives did not have any FINAL SENSE MINUTES Page 25 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 fatal flaws, but they aligned with Council's criteria, priorities, and tiers. There was something for everyone in the set of alternatives. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “direct Staff to return to the Rail Committee and/or Council with an enhanced community engagement plan in June.” (New Part B.i.) INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “direct Staff to continue exploring the future of freight and the possibility of 2 percent grade.” (New Part B.ii.) Council Member Wolbach inquired whether the Council would narrow the alternatives to four to eight prior to its summer break. Mr. Shikada was unsure whether Rail Committee recommendations could be presented to the Council in June. Mr. Mello reported the consultant could provide additional information that could assist the Rail Committee with eliminating some of the alternatives. Council Member Wolbach concurred with Council Member Scharff's comments regarding the ability to eliminate some alternatives with a cursory review, but more analysis was needed for other alternatives. He supported minimizing the use of eminent domain as much as possible and financial feasibility. Some level of grade separation was necessary for improved mobility and safety. A stakeholder advisory group in addition to the technical advisory group would be good as long as it did not cause delay. Council Member Holman inquired whether Staff would provide illustrations of alternatives in addition to engineering drawings. Mr. Mello reported the scope of work for the consultant included visualization materials, including photo simulations, plan lines, video flyovers, and 3D renderings, for four to eight alternatives. Council Member Holman suggested renderings were needed for the public to visualize the alternatives before the four to eight alternatives were selected. Mr. Shikada felt Staff could accomplish the goal of communication and understanding across a variety of stakeholders. Council Member Holman requested the status of the hydrology study. FINAL SENSE MINUTES Page 26 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 Mr. Mello advised that the hydrology study was rolled into the trenching and tunneling White Paper, which was revised in early 2018 after comments from the public and the Rail Committee. A chapter in the White Paper addressed groundwater. Council Member Holman did not believe people were aware of the study and, thus, not considering it when reviewing alternatives. Mr. Shikada indicated Staff identified it as a key issue with respect to trenching, particularly in South Palo Alto. Staff would match analyses with alternatives they brought forward. Council Member Holman expressed concern regarding receipt of greater community input and narrowing the alternatives by June. Mr. Shikada clarified that Staff could recommend elimination of an alternative if the Rail Committee demonstrated the alternative would cause severe property impacts. Council Member Holman indicated the Council needed to know the number of vehicle trips on Churchill that crossed Alma to consider the partial closing of Churchill. Mr. Mello stated Staff would provide detailed traffic circulation studies for each of the final alternatives. Council Member Holman commented that a piece of critical information was the specific consequences of widening any portion of Embarcadero Road. Those consequences should be described and illustrated. She was disappointed the Council was not considering a business license tax or employee head count tax. She asked what it would take for the City to hire a lobbyist to obtain information and movement regarding freight questions. Mr. Mello did not know if lobbying would be effective as Union Pacific was a private corporation. From a regulatory perspective, little could be done to move and/or terminate freight on the Peninsula without purchasing Union Pacific's vested freight rights. Staff would utilize their best efforts to obtain the status and plans for freight and any options for the City. Council Member Holman did not find any information regarding a partial trench. Mr. Mello explained that a shallow trench would be a rail under road hybrid, and those were proposed for both Charleston and Meadow and Churchill. FINAL SENSE MINUTES Page 27 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 Council Member Holman inquired whether the shorter trench had been eliminated. Mr. Mello advised that the list of ten included a shorter trench underneath Charleston and Meadow. Council Member Holman asked if information regarding the estimated cost of each alternative and the number of homes that would be lost would be presented to the Rail Committee. Mr. Mello answered yes, during the alternatives analysis phase. Council Member Holman encouraged Staff and the Rail Committee to be more inclusive than exclusive when considering that information. She asked why Staff was not considering alternatives from a regional perspective. Mr. Shikada reported Staff was working with immediate neighbors and cities of common interest along the Caltrain corridor. However, each city had individual interests and an interest in prioritizing local needs. Council Member Holman inquired whether it would be possible to involve the State in getting action. Mr. Shikada opined that that would not be effective. Because Union Pacific operated under Federal regulations, the likelihood of engaging the State to influence Union Pacific was difficult to anticipate. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion, “direct Staff to engage with our lobbyists to help with freight, funding, and other matters.” (New Part B.iii.) Council Member Holman asked if the City's lobbyist could handle this matter. Mr. Shikada would follow up with the lobbyist. Consultants would be a helpful resource given their experience with the parties involved. Council Member Kou requested Staff provide information regarding funding described by Mr. Bernstein during public comment. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER OR SECONDER to add to the Motion Part A.x., “with or without freight.” FINAL SENSE MINUTES Page 28 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER OR SECONDER to add to the Motion Part A.xi., “with Alma Street in its existing alignment or a new alignment.” Council Member Wolbach inquired whether Staff was comfortable with the addition of the partial trench. Mr. Mello would consider benefits and possible improvement of quality of life. Council Member Kou asked if the Council could advocate for T-style poles. Mr. Mello explained that center poles were reserved for areas with sufficient width between the tracks. The space between tracks in most of Palo Alto would not accommodate center poles. If the City rebuilt the tracks as part of grade separation, it could consider center poles as part of the rebuild. Mr. Shikada clarified that the catenary system was a component of Caltrain electrification. Council Member Kou asked if Staff would contact Elon Musk regarding the benefits of tunneling. Council Member Scharff reported he had spoken with the boring company. The company stated it would not get involved in grade separations and had no interest in getting involved. Council Member Kou inquired about the impact of H-style poles on trees. Mr. Shikada advised that Staff would consider that impact when Caltrain progressed with design. Caltrain had indicated it might consider a couple of variations for individual locations. AMENDMENT: Council Member Tanaka moved, seconded by Council Member Kou to add to the Motion, “take permanent eminent domain off the table.” Council Member Fine referred to the September 6 Council endorsement to minimize right-of-way acquisition through eminent domain. He asked which of the alternatives would remain if the possibility of eminent domain was eliminated. Mr. Shikada responded none. Mr. Mello clarified that the process of eminent domain occurred when a property owner was not willing to sell his property. Any referral to eminent domain should be specific. FINAL SENSE MINUTES Page 29 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 AMENDMENT RESTATED: Council Member Tanaka moved, seconded by Council Member Kou to add to the Motion, “take full permanent property takings off the table.” Council Member Tanaka felt the use of eminent domain should be the highest priority in considering alternatives. The City should be able to purchase real property if the owner was willing to sell it. Mr. Shikada recommended the Council consider a scenario where all but one adjacent property owners agreed to sell, which according to the Amendment would prohibit the City from acquiring any of the properties. Council Member Holman supported the intention of the Amendment, but it was premature. Council Member Wolbach reiterated that the Council wished to limit the use of eminent domain as much as possible. The Amendment could reduce the number of alternatives by half. The Amendment was premature. AMENDMENT AS AMENDED FAILED: 2-4 Kou, Tanaka yes, DuBois, Filseth, Kniss absent Council Member Tanaka agreed with public comment regarding pushing problems from one area to another. AMENDMENT: Council Member Tanaka moved, seconded by Council Member XX to add to the Motion, “take widening Embarcadero Road off the table.” Council Member Fine asked if widening Embarcadero Road was a component of any alternative. Mr. Mello explained that Staff intended to write the Churchill Avenue crossing alternative as broadly as possible. A possible mitigation measure could be widening the Embarcadero underpass or adding signals. AMENDMENT FAILED DUE TO THE LACK OF A SECOND Council Member Tanaka suggested the vision should be bigger for a multigenerational project. Staff should consider other types of funding sources, such as the sale of Transfer of Development Rights (TDRs). Mr. Mello reported the financing White Paper included a review of development value capture for a tunnel alternative. If the Council advanced any alternatives that provided an opportunity for value capture, Staff would review that as part of the funding package for the project. Although the FINAL SENSE MINUTES Page 30 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 numbers in the White Paper were based on quite a bit of development, they did not generate a significant amount of revenue in comparison to billion- dollar expenditures. Council Member Tanaka felt this type of decision should be decided by the voters. Giving the community the choice was important because the project would impact multiple generations. Mr. Shikada reminded Council Members that Caltrain owned the surface right-of-way. Any potential for value capture would need to be negotiated with Caltrain. Council Member Tanaka understood the complexities and difficulties of the situation. Giving the community the option was important. He asked if the Motion contained Council Member Wolbach's proposal for a community stakeholder group. Council Member Wolbach responded Item B.i. directed Staff to consider a community advisory group. Council Member Tanaka inquired whether the language of the Motion was sufficiently explicit. Council Member Wolbach indicated it was sufficiently general for Staff to work with a consultant to prepare a proposal for Council review. Council Member Scharff advised that the Rail Committee included the City- wide tunnel for Council discussion even though it had a fatal flaw. No one lived adjacent to the Palo Alto Avenue crossing; therefore, the community would prefer it not be closed, if possible. If Staff could clarify the likelihood of use of eminent domain for the Churchill Avenue crossing, they could probably be eliminated. It was unclear whether the Meadow and Charleston trench or tunnel had a fatal flaw. Flyover visualizations of a trench would likely sway the community against it. The Citywide tunnel would never be constructed. MOTION AS AMENDED RESTATED: Council Member Fine moved, seconded by Council Member Wolbach to: A. Approve moving forward with the following specific grade separation options, and authorize polling if Staff deems appropriate: i. CAH - Churchill Avenue roadway under railroad hybrid; ii. CAR - Churchill Avenue roadway over railroad reverse hybrid; FINAL SENSE MINUTES Page 31 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 iii. CAX - Churchill Avenue crossing closed; improvement options include: widen existing Embarcadero Road undercrossing, add new traffic signals at Embarcadero Road ramps, build bike/pedestrian crossing at Churchill Avenue, and/or build Seale Avenue bike/pedestrian crossing to connect to Peers Park and Stanford Avenue bicycle boulevard; iv. MCL - Meadow Drive and Charleston Road railroad over roadway hybrid and build Loma Verde Avenue bike/pedestrian crossing to connect to Margarita Avenue bicycle boulevard; v. MCR - Meadow Drive and Charleston Road roadway over railroad reverse hybrid and build Loma Verde Avenue bike/pedestrian crossing to connect to Margarita Avenue bicycle boulevard; vi. MCT - Meadow Drive and Charleston Road roadway over railroad trench or tunnel; Alma Street would not be within trench or tunnel (maintains Alma Street connections to Meadow Drive and Charleston Road) with Alma Street in its existing alignment or a new alignment; vii. MCV - Meadow Drive and Charleston Road railroad over roadway viaduct; viii. PAH - Continue proposed Menlo Park railroad over roadway hybrid and/or viaduct across San Francisquito Creek and Palo Alto Avenue; ix. PCX - Palo Alto Avenue crossing closed; improvement options include: build an Everett Avenue bike/pedestrian undercrossing and widen University Avenue; x. WBP - City-wide deep-bore railroad under roadway tunnel within Palo Alto city limits with two new underground rail stations with or without freight; B. Direct Staff to: i. Return to the Rail Committee and/or Council with an enhanced community engagement plan in June; ii. Continue exploring the future of freight and the possibility of 2 percent grade; iii. Engage with our lobbyists to help with freight, funding, and other matters. FINAL SENSE MINUTES Page 32 of 32 Sp. City Council Meeting Final Sense Minutes: 5/29/18 MOTION AS AMENDED PASSED: 6-0 DuBois, Filseth, Kniss absent State/Federal Legislation Update/Action None. Council Member Questions, Comments and Announcements None. Adjournment: The meeting was adjourned at 12:19 A.M.