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HomeMy WebLinkAbout2018-06-25 City Council Summary MinutesCITY OF PALO ALTO CITY COUNCIL MINUTES Page 1 of 22 Special Meeting June 25, 2018 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:04 P.M. Present: DuBois, Filseth, Fine, Holman, Kniss, Kou, Tanaka, Wolbach Absent: Scharff Closed Session 1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Government Code Section 54956.9(d)(2) and (e)(1): Four Potential Cases MOTION: Vice Mayor Filseth moved, seconded by Council Member Wolbach to go into Closed Session. MOTION PASSED: 8-0 Scharff absent Council went into Closed Session at 5:05 P.M. Council returned from Closed Session at 6:47 P.M. Mayor Kniss announced no reportable action from the Closed Session. The City Council selected Ed Shikada as the next City Manager effective January 2019. The City Council moved rapidly because of the competitive market for City Manager candidates, other cities' interest in Mr. Shikada, and Mr. Shikada's experience with the City. Ed Shikada, Assistant City Manager, thanked the Council for moving rapidly as it allowed Staff to focus on key priorities and challenges. Mr. Shikada thanked City Manager Keene for hiring him and looked forward to serving as City Manager. Council Member DuBois welcomed Mr. Shikada to his new role with the City. The City is in a fantastic position with Mr. Shikada and Mr. Keene working together over the next six months. Mayor Kniss noted four leadership positions within the City are vacant. FINAL MINUTES Page 2 of 22 City Council Meeting Final Minutes: 6/25/18 Special Orders of the Day 1A. Proclamation Recognizing the Month of June 2018 as Lesbian, Gay, Bisexual, and Transgender Pride Month. Council Member Wolbach read the Proclamation into the record. Agenda Changes, Additions and Deletions Beth Minor, City Clerk, reported Staff recommended Agenda Item Number 32 be continued to a date uncertain. MOTION: Vice Mayor Filseth moved, seconded by Council Member Kou to continue Agenda Item Number 32 - Recommended Terms of Agreement for Fire Protection Services to Stanford University … to a date uncertain. MOTION PASSED: 8-0 Scharff absent City Manager Comments James Keene, City Manager, announced the retirements of Chief Financial Officer Lalo Perez effective July 5, and Public Works Director Mike Sartor effective July 7. Kiely Nose was appointed Administrative Services Department Interim Director, and Brad Eggleston was appointed Public Works Interim Director. Planning Staff would hold an open house regarding implementation of the City's Housing Work Plan, Housing Element, and Comprehensive Plan housing policies on June 28 at the Downtown Library. The Santa Clara County Civil Grand Jury's analysis of the affordable housing crisis contained a series of findings to which the City would respond formally. The 37th Annual Chili Cook-Off and Summer Festival would begin at noon on July 4 at Mitchell Park. The Police Department's Technical Services Director, Charlie Cullen, was recently elected to the Board of the National Emergency Number Association as a Western Regional Director. The Junior Museum and Zoo was finding new homes for objects in its collection in preparation for vacating its building. Oral Communications Pilar Lorenzana, Silicon Valley @Home, urged the Council to negotiate a more meaningful relocation package for tenants of the Hotel President, including six months' of rent and a longer period before eviction. Stephen Levy remarked that protection and preservation of housing should be considered along with increasing housing supply. Affordable housing could be built if the City considered special rules for affordable housing projects. FINAL MINUTES Page 3 of 22 City Council Meeting Final Minutes: 6/25/18 Mark Mollineaux commented that the City made constructing affordable apartments illegal. People should be searching for solutions to the lack of affordable housing. Max Kapczynski, Palo Alto Forward, commented that the loss of the Hotel President was a shame. The loss of 75 affordable units would not be offset by the goal of producing 70 affordable units in 2018. Stephanie Munoz stated the value of real property was determined by what could be built on it. The City Council was biased against small, dense units. Minutes Approval 2. Approval of Action Minutes for the June 11, 12, 18, and 19, 2018 Council Meetings. MOTION: Council Member DuBois moved, seconded by Council Member Holman to approve the Action Minutes for the June 11, 12, 18, and 19, 2018 Council Meetings. MOTION PASSED: 8-0 Scharff absent Consent Calendar Neilson Buchanan spoke regarding Agenda Item Number 17. The contract with Dixon should be approved, and Dixon's services were badly needed. Melanie Liu spoke regarding Agenda Item Number 21. Thanks to Lalo Perez for beginning the process to divest the City of fossil-fuel holdings and to develop social and environmental investment policies. Stephanie Munoz spoke regarding Agenda Item Number 23. The City Council should plan for the whole population and was obligated to ensure each individual had housing. Bob Moss spoke regarding Agenda Item Number 24. The statement of work should contain a goal of preserving the integrity of existing housing in Ventura and a requirement for any development in the Ventura neighborhood to provide public park space. Joe Simitian spoke regarding Agenda Item Number 26. The item was not a funding commitment or a funding disbursement. Within the past six months, the Santa Clara County Board of Supervisors had stated its willingness to set aside real property and $6 million for possible teacher housing. The project could be a model for additional affordable housing. FINAL MINUTES Page 4 of 22 City Council Meeting Final Minutes: 6/25/18 Council Member Holman registered a no vote on Agenda Item Number 23 - SECOND READING: Adoption of an Ordinance Amending Palo Alto Municipal Code Title 18 (Zoning) Chapter 18.30 (Combining Districts) to add a new Combining District to Allow for Higher Density Multi-family Housing … . Council Member Kou registered no votes on Agenda Item Numbers 8 - QUASI- JUDICIAL/PUBLIC HEARING 2515-2585 El Camino Real [17PLN-00448] …, 18 - QUASI-JUDICIAL/PUBLIC HEARING. 3225 El Camino Real [17PLN-00007] …, 23 - SECOND READING: Adoption of an Ordinance Amending Palo Alto Municipal Code Title 18 (Zoning) Chapter 18.30 (Combining Districts) to add a new Combining District to Allow for Higher Density Multi-family Housing …, and 24 - Approval of Contract Number C18171717 With Perkins + Will … . Council Member Tanaka registered no votes on Agenda Item Numbers 10 - Approval and Authorization for the City Manager or his Designee to Execute the Following six Utilities Public Benefits Program Contract Amendments …, 14 - Adoption of a Memorandum of Agreement and Salary Schedule …, 16 - Approval of a Contract With Summit Uniforms …, and 22 - Approval of a Five- year Contract With All City Management Services, Inc … . MOTION: Council Member Fine moved, seconded by Council Member DuBois to approve Agenda Item Numbers 3-28A, including changes to Agenda Item Number 8 - QUASI-JUDICIAL/PUBLIC HEARING 2515-2585 El Camino Real [17PLN-00448] … outlined in the At Place Staff Memorandum. 3. Approval of Contract Number C18171689 With Toubar Equipment Company, Inc. for a Not-to-Exceed Amount of $716,030 for Landfill Gas Collection and Control System and Leachate Collection System Improvements at the Palo Alto Landfill Over a Term of 90 Days. 4. Approval and Authorization for the City Manager to Execute an Electric Enterprise Fund Professional Services Contract With Activu Corporation in the Amount of $438,006, Including Change Orders for Additional Related but Unforeseen Work in the Amount of $43,800, for a Total Not- to-Exceed Amount of $481,006, for the Utility Control Room Upgrade Project. 5. Approval of a General Services Contract With O'Grady Paving, Inc. for Maintenance of the Renzel Marsh Freshwater Pond for a Total Not-to- Exceed Amount of $511,500 Over a Four-month Term. 6. Approval of a Five-year Contract With Telecommunications Engineering Associates (TEA) in a Total Not-to-Exceed Amount of $500,000 for Annual Maintenance Services of Legacy Radio Infrastructure Plus a FINAL MINUTES Page 5 of 22 City Council Meeting Final Minutes: 6/25/18 Contingency Not-To-Exceed Amount of $25,000 per Year for Additional Services. 7. Approval of Contract Number C18172268 With Municipal Resources Group for Council Appointed Officers Performance Evaluation for a Duration Through June 30, 2019 With the Option to Extend two Additional Years for a Total Not-to-Exceed Amount of $180,000. 8. QUASI-JUDICIAL/PUBLIC HEARING 2515-2585 El Camino Real [17PLN- 00448]: Recommendation on Applicant’s Request for Approval of a Vesting Tentative Map to Merge two Lots and Subdivide the Combined 39,953 Square Foot lot Into 13 Residential Condominiums and up to 13 Retail Commercial Units. The Subdivision Map Would Facilitate Construction of the Previously Approved 39,858 Square Foot Mixed-use Development Project (15PLN-00170). Environmental Assessment: Reuse of a Previously Adopted Initial Study/Mitigated Negative Declaration Prepared for the Associated Development Application (15PLN-00170). Zoning District: Neighborhood Commercial (CN) and Community Commercial (CC) (2) Zoning District. 9. Approval of Amendment Number 1 to the Agreement With Palo Alto Unified School District (PAUSD) for PAUSD Athletic Field Brokering and Maintenance Cost-sharing to Extend the Term to December 2019. 10. Approval and Authorization for the City Manager or his Designee to Execute the Following six Utilities Public Benefits Program Contract Amendments: 1) Amendment Number 1 to CLEAResult Consulting, Inc. C15159135 Increasing Compensation by $910,000 and Extending the Term for Three Additional Years; 2) Amendment Number 1 to Eagle Systems International, Inc. DBA Synergy Companies C15159126 Number 2 to Eagle Systems International, Inc. DBA Synergy Companies C15159125 Increasing Compensation by $900,000 and Extending the Term for Three Additional Years; 4) Amendment Number 1 to Ecology Action of Santa Cruz C15155144A With no Increase in Compensation and Extending the Term for two Additional Years; 5) Amendment Number 1 to Enovity, Inc. C15155144B With no Increase in Compensation and Extending the Term for two Additional Years; and 6) Amendment Number 1 to BASE Energy, Inc. C15155144C With no Increase in Compensation. 11. Policy and Services Committee Recommends Approval of the Status Update of the Community Services Department: Fee Schedule Audit. FINAL MINUTES Page 6 of 22 City Council Meeting Final Minutes: 6/25/18 12. Resolution 9779 Entitled, “Resolution of the Council of the City of Palo Alto Determining the Proposed Calculation of the Appropriations Limit for Fiscal Year 2019.” 13. Approval of a Construction Contract With Vortex Marine Construction, Inc. in the Amount of $1,097,281 for the Baylands Boardwalk Improvements Capital Improvement Project PE-14018 and Approve Budget Amendments in the Capital Improvement Fund and the Parkland Dedication Fee Fund. 14. Adoption of a Memorandum of Agreement and Salary Schedule Between the City of Palo Alto and the Palo Alto Peace Officers' Association Effective July 1, 2018 to June 30, 2021. 15. Approval of the Renewal of Three Public-private Partnership Agreements Between the City of Palo Alto and TheatreWorks, Palo Alto Players, and West Bay Opera for the use of the Lucie Stern Community Theatre. 16. Approval of a Contract With Summit Uniforms for Five-years for a Maximum Compensation Amount Not-to-Exceed $520,000 ($104,000/Year) for the Purchase of Police, Fire, and Park Ranger Uniforms and Related Equipment. 17. Approval of Contract Number C18172676 With Dixon Resources Unlimited for a Total Not-to-Exceed Amount of $285,126 for Support of the City's Parking Programs for a One-year Term, and Exemption of the Contract From Competitive Solicitation Requirements. 18. QUASI-JUDICIAL/PUBLIC HEARING. 3225 El Camino Real [17PLN- 00007]: Request for a Vesting Tentative Map to Subdivide a 29,962 Square Foot Parcel Into two Parcels Comprised of one Commercial Parcel and one Residential Parcel for Condominium Purposes. Environmental Assessment: An Initial Study Mitigated Negative Declaration (IS-MND) was Previously Prepared for an Associated Development Application (15PLN-00003) That was Approved by the Director of Planning and Community Environment on April 21, 2016. Zoning District: Service Commercial (CS). 19. Approval of Amendment Number 4 to the Agreement With the Peninsula Corridor Joint Powers Board for Rail Shuttle Bus Service Administration to Extend the Term of the Agreement for One-year and for the City to Provide an Additional $130,600 for Community Shuttle Service on the Existing Embarcadero Shuttle Route From July 2018 Until June 2019. FINAL MINUTES Page 7 of 22 City Council Meeting Final Minutes: 6/25/18 20. Approval of Contract Amendment Number Three to Contract Number C15158029 With Schaaf & Wheeler Consulting Civil Engineers to Increase the Construction Support Budget in the Amount of $21,000 for Additional Work and to Extend the Contract Term for the Matadero Creek Storm Water Pump Station Capital Improvement Program Project SD- 13003. 21. Resolution 9780 Entitled, “Resolution of the Council of the City of Palo Alto Expressing Appreciation to Lalo Perez Upon his Retirement.” 22. Approval of a Five-year Contract With All City Management Services, Inc., Effective August 1, 2018, in the Not-to-Exceed Amount of $3,096,779 for Crossing Guard Services for the Palo Alto Unified School District and Approval of a Budget Amendment in the General Fund. 23. Ordinance 5443 Entitled, “Ordinance of the Council of the City of Palo Alto Amending Palo Alto Municipal Code Title 18 (Zoning) Chapter 18.30 (Combining Districts) to add a new Combining District to Allow for Higher Density Multi-family Housing That Includes a Workforce Housing Component to be Located on Public Facilities Zoned Properties Within 0.5 Miles of Fixed Rail Transit Stations;” and Ordinance 5444 Entitled, “Ordinance of the Council of the City of Palo Alto Amending the Zoning Map to Apply the new Combining District to the Subject Property at 2755 El Camino Real (FIRST READING: June 4, 2018 PASSED: 7-2 Holman, Kou no).” 24. Approval of Contract Number C18171717 With Perkins + Will for the Professional Services Related to the Preparation of the North Ventura Coordinated Area Plan for an Amount Not-to-Exceed $769,068 Over a 2.5-Year Term. 25. Policy and Services Recommendation to Accept the Continuous Monitoring Audit: Overtime. 26. Direction to the City Manager to set Aside $3 Million in Affordable Housing Funds for a Potential Teacher Housing Project at 231 Grant Avenue. 27. Ordinance 5445 Entitled, “Ordinance of the Council of the City of Palo Alto Amending Palo Alto Municipal Code (PAMC) Title 18 (Zoning), Chapter 18.28 (Special Purpose (PF, OS and AC) Districts), Sections 18.28.050, 18.28.060, and 18.28.090 to Revise the Public Facilities (PF) Zone Parking and Development Standards to Allow Council Approval of Exceptions to PF Development Standards, Including Setback Lines Imposed by a Special Setback Map, and Required Parking Location for FINAL MINUTES Page 8 of 22 City Council Meeting Final Minutes: 6/25/18 City Parking Facilities in the Downtown and California Avenue Business District and for Essential Services Buildings, and Make Other Clerical or Technical Corrections (FIRST READING: June 11, 2018 PASSED: 8-0 Tanaka not Participating).” 28. Approval of Amendment Number One to Professional Services Contract Number C16161182 With Freytag & Associates to Extend the Term of the Agreement for One and a Half Years (1.5 years) to end December 31, 2019 with no Additional Cost to the City for Professional Services Related to Airplane Noise Assessment and Mitigation. 28A. Approval of a Contract With MNS Engineers, Inc. in an Amount Not-to- Exceed $267,000 for a One-year Term for Operation Group Support Services at the Regional Water Quality Control Plant. MOTION FOR AGENDA ITEM NUMBERS 3-7, 9, 11-13, 15, 17, 19-21, 25-28A PASSED: 8-0 Scharff absent MOTION FOR AGENDA ITEM NUMBERS 8, 18, AND 24 PASSED: 7-1 Kou no, Scharff absent MOTION FOR AGENDA ITEM NUMBERS 10, 14, 16, AND 22 PASSED: 7- 1 Tanaka no, Scharff absent MOTION FOR AGENDA ITEM NUMBER 23 PASSED: 6-2 Holman, Kou no, Scharff absent Council Member Kou wanted Agenda Item Numbers 8 and 18 moved to the Action Calendar. The proposed Ordinance in Agenda Item Number 23 was essentially spot zoning. Developments utilizing the proposed Ordinance would not provide below market rate housing and could affect neighborhood retail shops. She wished the City Council had been given an opportunity to interview the consultants who submitted bids for Agenda Item Number 24. Council Member Tanaka opposed Agenda Item Number 10 because the City just increased utility rates for ratepayers, the City Council directed Staff to reduce the Budget by $4 million, and the Council had not discussed the item. Council Member Tanaka supported a pay increase for police officers, but the 5 percent increase was not appropriate when the General Fund Budget increased by only 1.7 percent. He questioned the need to change the vendor for crossing guards because of the increased cost of the proposed contract and the lack of complaints about the existing vendor. The Staff Report for Agenda Item Number 16 did not provide the amount of the existing contract. FINAL MINUTES Page 9 of 22 City Council Meeting Final Minutes: 6/25/18 Council Member Fine remarked that Agenda Item Number 23 was not spot zoning as the overlay applied to all parcels zoned Public Facilities (PF). The Municipal Code provided definitions for affordable housing. Action Items 29. PUBLIC HEARING: Resolution 9781 Entitled, “Resolution of the Council of the City of Palo Alto Confirming Weed Abatement Report and Ordering Cost of Abatement to be a Special Assessment on the Respective Properties Described Therein.” James Keene, City Manager, reported this Item fulfilled an annual requirement. Public Hearing opened and closed without public comment at 7:50 P.M. MOTION: Vice Mayor Filseth moved, seconded by Mayor Kniss to adopt a Resolution confirming the report and ordering abatement costs to be a special assessment on the properties specified in the report. MOTION PASSED: 8-0 Scharff absent 30. Resolution 9782 Entitled, “Resolution of the Council of the City of Palo Alto Related to the Downtown Residential Preferential Parking (RPP) Program Reducing or Otherwise Amending the Number of Employee Parking Permits and Making Related Changes, Modifying or Maintaining the Prohibition on Re-parking in the RPP District More Than two Hours After Initially Parking, and Making Other Clarifying Modifications to Resolution 9671. California Environmental Quality Act (CEQA): Exempt Pursuant to CEQA Guidelines Section 15061(b)(3) (Continued From April 2, 2018).” Joshuah Mello, Chief Transportation Official, reported on February 26, Staff presented an update regarding the Downtown Residential Preferential Parking (RPP) Program, and the Council directed Staff to draft an Ordinance that reduced the number of employee parking permits from 1,500 to 1,000 with 100 of those held in reserve. The proposed Resolution clarified the two-hour re-parking restriction, tied permit fees to the Municipal Fee Schedule, and reduced the total inventory of employee parking permits to 1,000 with an additional 100 employee parking permits held in reserve. At the Council's direction, Staff reduced the number of parking permits allocated to Zones 8, 9, and 10. After implementation of the permit reductions, businesses proximate to Zone 8 and Middlefield Road voiced concerns. Under the authority granted to the Planning Director, Staff reallocated employee parking FINAL MINUTES Page 10 of 22 City Council Meeting Final Minutes: 6/25/18 permits from Zones 3 and 4 to Zone 8. The number of permits allocated to each zone was provided in an At-places Memorandum. Molly Stump, City Attorney, advised that the Vehicle Code required notice of parking requirements prior to the issuance of citations. Signage installed initially in the district did not describe the re-parking restriction. Mr. Mello explained that an individual could not park his vehicle for longer than two hours in one zone, and the two-hour period began at the time of initial parking. Prior to enforcing the restriction, Staff needed to install additional signage in all the RPP Districts. Staff requested any Motion to adopt the Resolution include the permit numbers provided in the At-places Memorandum rather than the Staff Report. Mayor Kniss clarified that the Resolution could be adopted, not adopted, or adopted with different numbers. Ms. Stump recited the Resolution requirements of one reading and five or more Council Members voting in support of adoption. The Council could adopt the Resolution or amend it. If the Council chose not to adopt the Resolution, then the existing Resolution would remain in effect. Mr. Mello added that Staff reallocated parking permits to Zone 8 based on observations of streets and concerns from employees and business owners. Mayor Kniss noted permits for Zones 1, 2, 4, and 5 were completely sold. Council Member Holman requested a color map of the zones. Mr. Mello provided a color map on the public screen in Chambers. Council Member Holman requested clarification of the reference to the area east of the South of Forest Area (SOFA). Mr. Mello explained that Zone 8 was located south of the SOFA District but within walking distance. Many employees who work in SOFA purchased permits for Zone 8. Council Member Holman asked Staff to comment on the loss of public parking at 800 High Street. Mr. Mello would look into the situation. Council Member Holman seemed to recall Council direction for permits to be sold to community-serving businesses first, but that direction did not appear to be in effect. FINAL MINUTES Page 11 of 22 City Council Meeting Final Minutes: 6/25/18 Ms. Stump recounted the Council's interest in exploring such an option. Staff advised the Council at the time that implementing such an option would be challenging and premature. The option was not a part of the current program and was not noticed to the public. Council Member Holman expressed concern about the loss of employees and potential loss of businesses because of the lack of parking. She hoped parking signage would be added to existing signage. Mr. Mello intended to utilize existing sign posts, but the signs would have to be large to accommodate the required language. Council Member Kou inquired whether the notification pertained to the RPP Program only. The re-parking restriction was discussed with color zones. Mr. Mello explained that signage for color zones contained the re-parking restriction. Staff hoped to find shorter language to utilize for the RPP Program. Council Member Kou asked if the color zone signage could be carried over to the RPP Program. Ms. Stump responded no. Simon Cintz, speaking for Melissa Auonoff, Benjamin Cintz, Elizabeth Eastman, and David Cintz, related the lack of public notice that parking permits were available for Zone 8. More permits were needed in the Downtown RPP, and the permits should be transferrable among a company's employees. Chris Joy, speaking for Mary Ann Michel, Holly Aspiras, Anita Joy, Stan Bjehjic, asked the Council to provide 1,500 parking permits unless it could guarantee parking permits for community-serving businesses and employees. Charlene Gibson remarked that the reduction of parking permits for Zone 8 was draconian. Employee turnover further reduced the number of permits available for employees. Susan Nightingale felt a further reduction in the number of parking permits was not necessary when Staff stated the RPP Program was working. Rob Fischer commented on the difficulty of finding employees and purchasing a parking permit. The lack of parking and parking permits contributed to the difficulty of retaining employees. Mel Matsumoto asked the Council to provide more time for Staff to refine the RPP Program and not to reduce the number of parking permits. FINAL MINUTES Page 12 of 22 City Council Meeting Final Minutes: 6/25/18 Jenny Yoo advocated for priority purchasing of permits and transferrable permits. Public transportation was often not an option for employees. Neilson Buchanan stated not all employees would be able to park close to their employment. Preference should be given to low-wage workers and community-serving businesses. The parking garages and Zone 3 had parking spaces available. Michael Hodos remarked that the number of parking permits was not distributed evenly across all zones. Chris Lee reiterated concerns about hiring and retaining employees. Mayor Kniss recalled Mr. Mello's February suggestion to maintain 1,400 permits. Mr. Mello indicated Staff did not recommend any changes in February. MOTION: Mayor Kniss moved, seconded by Council Member Fine to: A. Adopt a Resolution to amend the Downtown Residential Preferential Parking (RPP) Program Resolution No. 9671, reducing the number of employee permits to 1,200 and making other clarifying changes; B. Direct Staff to make corresponding changes to the Administrative Guidelines for the residential preferential parking programs; C. Direct Staff to amend the Resolution to modify the prohibition on “re- parking” in the RPP District after two hours has expired from the time of initial parking; and D. Find these actions exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Sections 15061(b)(3) and 15301 (Existing Facilities) of Title 14 of the California Code of Regulations. Mayor Kniss learned firsthand the difficulties of obtaining a parking permit for her intern. Reducing the number of permits to 1,000 was too great. Council Member Fine agreed that the reduction of parking permits to 1,000 was too aggressive. Since February, the Council had received approximately 100 emails regarding parking concerns. The Council had not set objective targets for each of the RPP Districts. The re-parking restriction should be included but not enforced. He inquired whether Staff had the authority to reallocate permits among the zones. FINAL MINUTES Page 13 of 22 City Council Meeting Final Minutes: 6/25/18 Mr. Mello advised that the Planning Director had authority to redistribute permits among zones. Council approval was not needed; however, Staff would reserve the ability to redistribute permits for extraordinary circumstances. Council Member Fine asked about progress on the ability to transfer permits. Mr. Mello reported hangtags were available for employers and employees in the Downtown RPP. Low-income employees must purchase decals because the decal was associated with the employee. Council Member Fine suggested hangtags be the default option for purchase. SUBSTITUTE MOTION: Vice Mayor Filseth moved, seconded by Council Member DuBois to: A. Adopt a Resolution to amend the Downtown Residential Preferential Parking (RPP) Program Resolution No. 9671, reducing the number of employee permits to 1,000, and making other clarifying changes, including permit allocation as outlined in the At-Places Staff Memorandum; B. Direct Staff to make corresponding changes to the Administrative Guidelines for the residential preferential parking programs; C. Direct Staff to amend the Resolution to modify the prohibition on “re- parking” in the RPP District after two hours has expired from the time of initial parking; and D. Find these actions exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Sections 15061(b)(3) and 15301 (Existing Facilities) of Title 14 of the California Code of Regulations. Vice Mayor Filseth recalled the Council's promises to provide parking relief for residents and to reduce the number of permits. Parking would always be a scarce resource, and someone would always have to walk to work. The Council knew the parking permit system needed improvements, community- serving businesses and low-wage workers needed priority, and the garages had available spaces. Council Member DuBois inquired about the current garage situation. Mr. Mello responded that all permits for garages had been sold and wait lists created. FINAL MINUTES Page 14 of 22 City Council Meeting Final Minutes: 6/25/18 Council Member DuBois inquired whether more permits could be sold for the garages as spaces were vacant. Mr. Mello advised that Staff would present the Council with a new valet contract to improve the use of garage spaces. Council Member DuBois believed that the RPP Program had been relatively successful. In 2014, the Council approved 1,400 permits with a reduction of 200 permits in each successive year. In March 2017, the Council approved a 1,400 limit based on trial data. The 100-permit reserve had not been utilized. Commuter traffic should be removed from the neighborhoods. Permits were available for purchase; yet, businesses reported they could not purchase permits. The problems seemed to be allocation and transferability of permits. Perhaps medical and dental businesses could be prioritized after low-income workers, and permits revoked and resold once an employee left his employment. He inquired about the impact of the re-parking restriction as stated in the Motion. Mr. Mello explained that the proposed Resolution clarified the language regarding re-parking to be more consistent with the language for color zones. The Council could direct Staff to proceed with posting signage and beginning enforcement. Council Member DuBois believed nonpermitted parking should be limited to two hours in the entire residential area. Ms. Stump advised that the language did not do that. Council Member DuBois asked if Staff planned to streamline and simplify the RPP Districts. Mr. Mello indicated the Council's approval of the Dixon contract would enable Staff to proceed with the comprehensive permit and citation system, which would correct many of the problems voiced by employees and employers. Council Member DuBois inquired whether the current re-parking restriction would allow vehicles to park for two hours in each zone. No other California city allowed commuters to park in neighborhoods. Council Member Kou inquired about implementation of priority purchasing of permits for community-serving businesses. Mr. Mello advised that priority had not been provided for community-serving businesses. Staff's prior recommendation was to implement the comprehensive permit and citation system and improve the Business Registry FINAL MINUTES Page 15 of 22 City Council Meeting Final Minutes: 6/25/18 so that permits could be linked to the Business Registry. Staff did not have the capacity to determine whether a business served the community in order to allow it priority purchasing. Council Member Kou asked when Staff anticipated implementing priority purchasing. Mr. Mello reported Staff had received proposals for a new permit system. Conservatively, a new system could be in place by June 2019. Improvements were underway for the Business Registry. Ms. Stump reminded the Council that the State Legislature authorized RPP Programs, and any RPP Program had to fit within the parameters set by the State. On-street parking, even in residential neighborhoods, was governed by State law. Council Member Wolbach inquired whether the first reading of the Resolution occurred in February. Mr. Mello replied no. Council Member Wolbach asked if the Council passed anything directing Staff to reduce the number of permits to 1,000. Mr. Mello clarified that the Council adopted a Motion directing Staff to return with a Resolution that reduced the number of permits. Council Member Wolbach seemed to recall the Council removing the item from the April Consent Calendar because of concerns about unintended consequences. Ms. Stump reported she advised the Transportation Division to operate and administer the program in compliance with the Council's majority vote to reduce the number of permits to 1,000 unless and until a majority of the Council decided otherwise. If the Council did not pass a Resolution during the meeting, then the existing Resolution, which set the number of permits at 1,500, would govern. Council Member Wolbach was struggling with the availability of permits and public comments that permits were not available. He requested Staff comment on the number of permits still available for purchase, including reserve permits. Mr. Mello explained that Staff notified permit accountholders of available permits by email. Staff struggled with notifying the public generally about permits and helping the public navigate the online system. Staff worked with FINAL MINUTES Page 16 of 22 City Council Meeting Final Minutes: 6/25/18 the Chamber of Commerce and the business community to spread information about available permits. Staff attempted to reserve half of permits for low- income workers and had to manually allocate permits to each group. At times, a full-price employee could attempt to purchase a permit only to learn one was not available because Staff had not reallocated permits. Council Member Wolbach was not aware of the constant reallocation of permits. He preferred to give Staff an opportunity to work with emerging challenges to achieve policy objectives. Vice Mayor Filseth requested the zones for which Staff would release reserve permits. Mr. Mello advised that Staff would balance the number of reserve permits across zones and consider the prevalence of two-hour parking spaces closer to Downtown and the current occupancy of block faces. Before releasing reserve permits, Staff would reallocate permits from one zone to another zone. Council Member DuBois inquired about unique features of Zone 8 that caused a shortage of permits. Mr. Mello suggested Zone 8 was popular because of its proximity to SOFA and businesses on Middlefield Road, which were ineligible for the University Avenue Parking Assessment District. INCORPORATED INTO THE SUBSTITUTE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Substitute Motion Part A, “with 200 permits in reserve” after “to 1,000.” Council Member Wolbach encouraged Staff to be proactive and responsive when reallocating parking permits across zones. He did not want to initiate priority purchasing for community-serving businesses because of the difficulty of defining a community-serving business. Mayor Kniss inquired about the difference between 1,000 permits with 200 reserve permits and 1,200 permits and which of the two was easier or harder for Staff to administer. Mr. Mello clarified that 1,200 permits would cause Staff to make 1,200 permits available for purchase. One thousand permits with 200 in reserve would cause Staff to make 1,000 permits available for purchase. The 200 reserve permits would not be released until Staff felt they were needed to address a shortage of permits. The Council would have to grant Staff discretion to release the 200 reserve permits. FINAL MINUTES Page 17 of 22 City Council Meeting Final Minutes: 6/25/18 Mayor Kniss asked if Staff would hesitate to release the reserve permits. Mr. Mello agreed that Staff would be deliberate about releasing reserve permits. The Council could require stakeholder involvement in releasing reserve permits. Council Member Holman inquired about methods to notify the public that permits were available. Mr. Mello could utilize the Business Registry email list and work with the Chamber of Commerce. Council Member Holman asked if Staff could utilize addresses for utility customers to notify the community. Mr. Mello agreed to explore the possibility; however, Staff had to consider the amount of resources dedicated to notifying the public about a limited number of permits. Council Member Holman was unsure whether the number of permits dedicated to low-income workers should be equal to the number of permits dedicated to other employees as the Council wanted to support retail and personal service businesses. Mr. Mello advised that the new permitting and citation system could utilize virtual permitting, which would allow the online transfer of a permit from one license plate to another. The feature would require the use of license plate recognition enforcement. Council Member Holman suggested the Downtown RPP Program convert to all hangtags to allow transfer of the permits. Importantly, employee permits should be issued for zones close to the place of employment. Council Member Tanaka inquired whether the Substitute Motion would resolve some of the issues. Mr. Mello reported 860 permits had been sold to date. Immediately, the issues would not be made worse. Staff would watch for impacts caused by the reduction in the number of permits. Council Member Tanaka asked if Staff had an estimate of the number of vehicles being re-parked. Mr. Mello answered no. Staff had to balance the cost of permits with the number of permits to prevent cars moving into the outer neighborhoods and the re-parking of vehicles. FINAL MINUTES Page 18 of 22 City Council Meeting Final Minutes: 6/25/18 Council Member Tanaka expressed concern that reducing the number of permits would cause more people to re-park their cars. He questioned whether the challenges were so severe that the RPP Program needed refinement. Vice Mayor Filseth speculated that re-parking was related to the price of permits. The reserve system provided some increasing resistance in the system. Mayor Kniss noted the Council had reduced the number of permits by one- third since the inception of the RPP Program. While Mr. Mello stated the RPP Program was working, she did not believe it was working so well based on her recent experience with the Program. She was uneasy with the Substitute Motion's provision to reserve 200 permits. SUBSTITUTE MOTION AS AMENDED RESTATED: Vice Mayor Filseth moved, seconded by Council Member DuBois to: A. Adopt a Resolution to amend the Downtown Residential Preferential Parking (RPP) Program Resolution No. 9671, reducing the number of employee permits to 1,000, with 200 permits in reserve, and making other clarifying changes, including permit allocation as outlined in the At-Places Staff Memorandum; B. Direct Staff to make corresponding changes to the Administrative Guidelines for the residential preferential parking programs; C. Direct Staff to amend the Resolution to modify the prohibition on “re- parking” in the RPP District after two hours has expired from the time of initial parking; and D. Find these actions exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Sections 15061(b)(3) and 15301 (Existing Facilities) of Title 14 of the California Code of Regulations. SUBSTITUTE MOTION AS AMENDED PASSED: 5-3 Fine, Kniss, Tanaka no, Scharff absent 31. Review and Provide Direction to Staff on the Stanford University General Use Permit 2018 Re-circulated Draft Environmental Impact Report. Jonathan Lait, Planning and Community Environment Interim Director, reported the County of Santa Clara (County) recirculated a Draft Environmental Impact Report (DEIR) that added two alternatives to the 2018 FINAL MINUTES Page 19 of 22 City Council Meeting Final Minutes: 6/25/18 Stanford General Use Permit (GUP) DEIR. Alternative A placed the amount of anticipated housing generated from the project within the Academic Growth Boundary (AGB). Alternative B halved the amount of anticipated housing and placed the housing within the AGB. Staff did not prepare a comment letter for the Council's review but highlighted impacts and provided links to the report and appendices. Staff requested the Council provide comments for inclusion in the comment letter, which had to be submitted on or before July 26. James Keene, City Manager, advised that Stanford University added the alternatives in response to public comments. Placing the housing within the AGB could worsen traffic impacts and increase the density of housing. Because of time constraints, the Council may not have an opportunity to review the City's draft comment letter. Mayor Kniss inquired whether the Council could review a draft comment letter in its meeting scheduled for July 30. Mr. Keene responded yes. Staff could seek an extension to submit its comment letter. Council Member DuBois believed the new alternatives were logical. This was an opportunity for the City to reiterate the need for transportation mitigations. The letter should contain a summary of previous Council comments with an emphasis on transportation mitigations, a request to update the circulation study around grade separations, a request to extend the protections for open space, a request to maintain the setbacks along El Camino Real, and a suggestion to increase funding for recycled water pipelines. The letter should emphasize the need for an additional school and potentially park space. Staff should draft a letter and submit it without presenting it for Council review during a Council meeting. Courtney Pal emphasized that the Stanford University GUP was an opportunity for local governments to have transit-oriented development. Stanford University as an employment hub had a wealth of transportation resources. She supported Alternative A. MOTION: Council Member DuBois moved, seconded by Council Member Fine to direct Staff to draft a letter in response to the Stanford University General Use Permit 2018 Re-circulated Draft Environmental Impact Report emphasizing previous Council Member comments and incorporating comments from Council Members. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion “if Santa Clara County agrees FINAL MINUTES Page 20 of 22 City Council Meeting Final Minutes: 6/25/18 to a deadline extension, direct Staff to return the draft letter to Council on Consent on July 30, 2018.” Council Member Fine remarked that the County Board of Supervisors held Stanford University to criteria that were important to the community. He concurred with Council Member DuBois' comments except for maintaining setbacks along El Camino Real. Staff's comments seemed overly focused on traffic impacts. AMENDMENT: Council Member Holman moved, seconded by Council Member XX to add to the Motion, “if an extension is not granted, direct Staff to forward the draft letter to Council Members.” Council Member Fine preferred Staff write and submit the letter as the Council had discussed the issues several times. Council Member Holman disagreed in that the Council had not reviewed the new alternatives. AMENDMENT FAILED DUE TO THE LACK OF A SECOND Mr. Keene suggested the Council plan on reviewing a draft letter and revising it publicly on July 30. If Council Members wished to provide written comments, then they should do so within the next few weeks. If the County did not agree to an extension, then Staff would draft and submit the letter without Council review. Council Member Holman concurred with Council Member DuBois' comments. Stanford University affiliates' use of City parks would increase the City's maintenance costs and the need for parks. Building heights of 100-130 feet were a problem and would have environmental impacts. Construction impacts on air quality, traffic, and noise were not mentioned. Council Member Wolbach favored either Alternative A or Alternative B over the original proposal. The traffic impacts shown under Alternatives A and B may be exaggerated. The growth in use of motorized small personal vehicles could mitigate many of the mid-distance vehicle trips described as negative impacts. At the current time, he was not comfortable with denigrating Alternatives A and B because of traffic impacts. Addressing the housing issue was critical. Stanford University should be allowed to construct taller buildings on its lands. Large setbacks were not necessary if Stanford University was willing to house more of its affiliates. Stanford University should work with Palo Alto Unified School District (PAUSD) to plan new schools, if needed. Stanford University should provide park space and recreation opportunities. FINAL MINUTES Page 21 of 22 City Council Meeting Final Minutes: 6/25/18 Council Member Kou wanted the California Avenue and Town and Country stations assessed for demand capacity and utilization of Caltrain. Vice Mayor Filseth appreciated the realism shown in the DEIR. Mayor Kniss remarked that not providing all or some housing within the AGB meant housing would be provided in the Foothills or Menlo Park. Mr. Lait reported that the appendices noted housing placed on the periphery of the AGB would stress other areas that the Council was interested in protecting. The Staff comment related to placing housing in the built-out areas of adjacent cities. Mayor Kniss suggested Staff refine the comment. Mr. Lait clarified that Staff's comment was a response to the new significant and unavoidable impact documented for the project and the alternative. Language in Alternative A suggested that vacant housing units could be offered to the public. Mayor Kniss was intrigued by the statement that Stanford University could develop outside the AGB after 2035. The City had no control over traffic to and from Stanford University. She inquired whether densities of 40-80 dwelling units per acre, building heights of 100-130 feet, and setbacks less than 20 feet would equate to the new hospital. Mr. Lait answered yes. Mayor Kniss could not imagine Stanford University constructing 130-foot tall buildings on El Camino Real across from Town and Country; however, the proposals alluded to that. Mr. Lait advised that Staff continued to review and find inconsistences in the DEIR. He requested the Council provide guidance regarding support for Alternative A or Alternative B. Council Member Wolbach did not believe the Council should oppose the construction of buildings taller than 50 feet outside Palo Alto. Mayor Kniss suggested the location of the buildings was the issue. Council Member Wolbach noted housing in Town and Country was not a possibility; therefore, no one would be affected by tall buildings across the street from Town and Country. FINAL MINUTES Page 22 of 22 City Council Meeting Final Minutes: 6/25/18 MOTION AS AMENDED RESTATED: Council Member DuBois moved, seconded by Council Member Fine to direct Staff to draft a letter in response to the Stanford University General Use Permit 2018 Re-circulated Draft Environmental Impact Report emphasizing previous Council Member comments and incorporating comments from Council Members, if Santa Clara County agrees to a deadline extension, return the draft letter to Council on Consent on July 30, 2018. MOTION AS AMENDED PASSED: 8-0 Scharff absent 32. Recommended Terms of Agreement for Fire Protection Services to Stanford University for the Period January 1, 2018 - June 30, 2023 and Settlement of Prior Claim for Overpayment (Staff Requests This Item be Continued to a Date Uncertain). State/Federal Legislation Update/Action None. Council Member Questions, Comments and Announcements Mayor Kniss reported she attended a California League of Cities meeting. Adjournment: The meeting was adjourned at 10:18 P.M.