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HomeMy WebLinkAbout2018-07-30 City Council Summary Minutes CITY OF PALO ALTO CITY COUNCIL MINUTES Page 1 of 21 Special Meeting July 30, 2018 The City Council of the City of Palo Alto met on this date in the Council Chambers at 5:13 P.M. Present: DuBois, Filseth, Fine, Holman, Kniss, Kou, Scharff, Tanaka, Wolbach Absent: Agenda Changes, Additions and Deletions None. City Manager Comments James Keene, City Manager, reported signs indicating the Citywide speed limit of 25 miles per hour would be posted during the week of August 13. Temporary markings for the Charleston-Arastradero Corridor project had been installed. Based upon public comments, Staff planned to revise improvements for the intersections of Charleston and Carlson Court and Arastradero and Coulombe Drive. A "What's Happening Here?" sign was placed at each location of temporary markings. Questions or requests for information about the project should be submitted to pwecips@cityofpaloalto.org or 650-329-2295. Construction along school frontages at Ellen Fletcher Middle School and Hoover Elementary School was expected to be complete by August 13. The intersection of Park Boulevard and Page Mill Road began operating as a signalized intersection on July 25. The Metropolitan Transportation Commission (MTC) awarded a grant to the City of Palo Alto, the City of East Palo Alto, and Caltrans to coordinate traffic signals along University Avenue from the Dumbarton Bridge to Middlefield Road. Signal coordination could improve travel time by 20-40 percent and reduce the number of transit stops. Fire Department Engine 26 and personnel spent two days at the Cranston Fire as part of a strike team from Santa Clara County. National Night Out was scheduled for August 7, 5:00-8:00 p.m. Mayor Kniss inquired regarding the length of time since Palo Alto last participated in National Night Out. Mr. Keene responded approximately a decade. He expected the event to grow over the next few years. Locations and additional information would be posted to the City website. MINUTES Page 2 of 21 City Council Meeting Minutes: 7/30/18 Council Member Holman asked if the Council would send letters to Fire Department personnel who participated on the strike team. Mr. Keene answered yes. In the last few years, Fire Department personnel had been invited to a Council meeting to recognize their service on the strike team. Oral Communications Andy Coe, Stanford Health Care Chief Government and Community Relations Officer, remarked that the healthcare initiative used residents' access to healthcare as a bargaining chip to negotiate with Stanford Health Care. If approved, the initiative would force healthcare providers to reduce services or close operations, place a regulatory and financial burden on the City of Palo Alto, and provide rebates to out-of-state for-profit insurance companies. Christopher Joy, Mid-Peninsula Dental Society President, expressed concern regarding the City of Palo Alto regulating fees charged to healthcare patients. Providing high-quality healthcare in Palo Alto would be impossible if the healthcare initiative was passed. Gregory Zicarelli advised that a construction project near his home was not required to comply with the City's dewatering regulations and caused damage to his home. James Keene, City Manager, indicated Staff would follow up with Mr. Zicarelli. Angela Evans expressed support for the residents of the Hotel President. The loss of housing at the Hotel President demonstrated the need for affordable housing in Palo Alto. Tenant protections were also needed. Todd Collins commented that Stanford University's proposed rental housing could generate up to 1,500 new students for Palo Alto Unified School District (PAUSD) without providing any property tax revenue. The budget impact to PAUSD could be as high as $34 million annually. Stanford University had to provide annual payments that covered the costs of students generated by its rental housing. David Meyer, SV@Home, stated the City's efforts to create new affordable housing were offset by the loss of affordable housing at the Hotel President. The City should expand land use and zoning regulations to encourage low- impact, transit-accessible, and walkable projects. MINUTES Page 3 of 21 City Council Meeting Minutes: 7/30/18 Pilar Lorenzana, SV@Home, shared the need to produce, preserve, and protect affordable housing. She urged the City to protect the residents of the Hotel President. John Vermes requested the Council determine a politically, legally, logically, and emotionally viable solution for residents of the Hotel President. Michelle Kraus reported residents of the Hotel President hired a land-use attorney, who concurred with the Planning Department's opinion that the conversion of the Hotel President was not permitted. She urged the Council to enact an urgency Ordinance instituting renter protections. Dennis Backlund related recent events affecting residents of the Hotel President. He supported the Council adopting an urgency Ordinance or a moratorium to delay eviction of residents from the Hotel President. Alex Smaliy encouraged the Council to consider an urgency Ordinance to protect renters. Diane Boxill wanted the new owner of the Hotel President to consider allowing Hotel President residents to remain onsite or relocating residents as a community within Palo Alto. Hotel President residents needed an immediate intervention. Katya Priess noted community support for residents of the Hotel President. The Council should adopt an urgency Ordinance to protect the residents from lease termination and eviction without just cause. Mary Riordan urged the Council to consider the long-term ramifications of granting a variance to the new owner of the Hotel President. Palo Alto City Ordinance 9.72.070 provided tenants protection through a one-year lease. Scott Keith recounted the Planning Department's recent community meeting regarding the Hotel President. The Hotel President met all criteria for affordable housing. Tucker Berckmann asked the Council to uphold existing Ordinances and to enact any additional measures to protect residents of the Hotel President. Peter Drekmeier, Tuolumne River Trust, recalled the City's opposition to an update of the Bay Delta Water Quality Control Plan based on erroneous information. The Council should request an agenda item to discuss the plan. Keith Bennett reported the project at 3428 Cowper Court was exempted from many of the dewatering regulations because the builder did not expect to hit groundwater. Granting the exemption was inexcusable. MINUTES Page 4 of 21 City Council Meeting Minutes: 7/30/18 Winter Dellenbach remarked that renter protections could have been implemented if the Council had not voted against them. Resident protections were needed. Jason Uhlenkott concurred with prior comments regarding the Hotel President. The Hotel President offered naturally affordable housing that should not be converted to a hotel in a housing crisis. The Council should take any action necessary to retain the Hotel President as housing. Matthew Warren, Law Foundation of Silicon Valley, encouraged the Council to preserve the housing units at the Hotel President and to ensure displacement of residents was mitigated with relocation payments. Ken Joye looked forward to Phase II improvements in the Neighborhood Traffic Safety and Bicycle Boulevard project and hoped they would be instituted as soon as possible. Cedric de La Beaujardiere supported retaining affordable housing at the Hotel President and the Bay Delta Plan, specifically Alternative 4. The decline in native fishes needed to be addressed. Mark Weiss felt City leadership did not listen to soft or dissenting voices at times. Rita Vrhel wondered if a Council discussion of renter protections could have prevented the sale of the Hotel President. She questioned the appearance of an item regarding repeal of Municipal Code Section 18.18.040 on the Planning and Transportation Commission's (PTC) agenda. Roberta Ahlquist, Women's League for Peace and Freedom, commented that the City and Stanford University had failed to provide affordable housing. The City needed to build new affordable housing and protect existing affordable housing. Stephanie Munoz did not believe the Hotel President should be allowed to convert to a hotel because it was taller than the maximum building height. Ruth Chippendale questioned the need for another hotel in Palo Alto. She supported retaining the Hotel President as affordable housing. Arthur Keller clarified that rents charged for apartments in the Hotel President were market rate. Preserving existing housing was less expensive than constructing new housing. He supported the Council passing an urgency Ordinance that allowed eviction for just cause only. MINUTES Page 5 of 21 City Council Meeting Minutes: 7/30/18 Vijay Varma remarked that the roundabouts on Ross Road were unsafe for bicyclists because of bicyclists' position in the roundabout and driver's inability to navigate the roundabouts. Kelsey Banes shared her experience with being displaced from her rental home in Palo Alto. Down-zoning parcels caused displacement of Palo Alto residents. The City needed to legalize multifamily housing and enact demolition controls. Mary Sylvester supported the residents of the Hotel President and recounted information regarding AJ Capital. Iqbal Serang stated the Council had an opportunity to protect the residents of the Hotel President. Some residents would be homeless if the Hotel President converted to a hotel. Max Kapczynki suggested the Council allow construction of taller buildings with higher densities for multifamily housing. Mr. Keene advised that Staff was exploring a range of potential Council actions regarding the Hotel President. The repeal of the Code section on the PTC's agenda was a follow-up item. The number of help wanted signs in businesses was an indication of the harm caused by the lack of affordable housing in Palo Alto. The sense of urgency around the Hotel President situation should be expanded to the wider array of housing needs. Staff would prepare for a Council discussion of the Hotel President in August. Council Member Holman inquired whether a Council discussion of the Bay Delta Water Quality Control Plan would be agendized for the Council's first meeting in August. Mr. Keene agreed to work with the Mayor to schedule a discussion for the Council. Mayor Kniss explained that the Council could not respond to public comments during Oral Communications. Minutes Approval 1. Approval of Action Minutes for the June 25, 2018 Council Meeting. MOTION: Council Member Scharff moved, seconded by Council Member Wolbach to approve the Action Minutes for the June 25, 2018 Council Meeting. MOTION PASSED: 9-0 MINUTES Page 6 of 21 City Council Meeting Minutes: 7/30/18 Consent Calendar MOTION: Council Member Scharff moved, seconded by Council Member Fine to approve Agenda Item Number 2. 2. PUBLIC HEARING / QUASI-JUDICIAL. 999 Alma Street [18PLN-00060]: Request for a Hearing on the Director's Tentative Approval of a Conditional Use Permit for a Commercial Recreation (Gym) Use in an Existing Building on the Site. The Project Includes a Request to Begin Operations at 5:00 A.M. and end at 11:00 P.M. The South of Forest Area (SOFA) Coordinated Area Plan Permits By-right Hours of Operation From 6:00 A.M. to 11:00 P.M. Environmental Assessment: Exempt From the Provisions of the California Environmental Quality Act (CEQA) per Guidelines Section 15301. Zone District: RT-35 (SOFA II). (Appellants Have Withdrawn Requests for a Public Hearing). MOTION PASSED: 7-2 Holman, Kou no Council Member Kou noted the project did not propose any Traffic Demand Management (TDM) measures. Granting the Conditional Use Permit without TDM measures would benefit future businesses at the site. Council Member Holman could not make the finding that the project would not harm the neighboring community because negative impacts to the neighboring community were unclear. Action Items 3. Adopt the Initiative Measure to Reduce the Comprehensive Plan’s Citywide Cumulative Cap on Office/R&D Development (Initiative Measure) as an Ordinance 5446 Entitled, “Initiative Measure to Reduce the Comprehensive Plan’s Citywide Cumulative Cap on Office/R&D Development,” or Adopt a Resolution Placing the Initiative Measure on the November 6, 2018 Ballot. Suzanne Keen, speaking for Michael Lowy, Ruth Lowy, Betty Jo, and Stan Lavin, read Joe Hirsch's comments on behalf of Palo Altans for Sensible Zoning. The initiative remained sound and eminently reasonable following review by the City's consultant and the Council ad hoc committee. The initiative proposed a 50-percent reduction in the amount of office/research and development (R&D) square footage stated in the 2030 Comprehensive Plan. The initiative would provide the first step in preventing excessive growth and time to resolve growth issues. The consultant's economic analysis did not include quality of life factors. MINUTES Page 7 of 21 City Council Meeting Minutes: 7/30/18 Greg Schmid, speaking for Anna Balin, Eileen Stolee, Winter Dellenbach, and Jeff Levinsky, noted the consultant's report did not focus on non-economic impacts and did not mention congestion, which had the most important economic implications. Impacts of congestion were traffic delays, housing prices, and land costs. Residents paid 75 percent of property taxes despite the jobs to employed resident ratio. The consultant's over-statement of sales tax paid by businesses was marked. The goal of the initiative was a public debate of economic issues around land, congestion, and pricing. Judy Kleinberg believed the initiative was not the correct method to resolve traffic problems as it undermined the democratic process and posed a grave danger to the business climate in Palo Alto. The economic analysis clearly stated the potential damage that could be caused by the initiative. Joan Larrabee urged the Council to adopt the initiative as written. Office/R&D growth caused the loss of small businesses. Reducing the cap was an attempt to reduce the wild growth that was detrimental to residents. Mayor Kniss clarified that the Council could not alter the initiative in any way. The Council could either adopt the initiative or place it on the November ballot. Neva Yarkin commented on the Planning and Transportation Commission (PTC) meeting held the prior week. Low-cost housing and traffic should be priorities for the Council. Keith Bennett advised that increased commercial development and associated increases in the number of jobs led to increased land prices and increased demand for local housing and increased rents. Commercial properties contributed progressively less to the cost of operating the City. He questioned whether the minimal potential increase in City revenues as projected by the consultant would cover all short-term and long-term costs of development. He requested the Council adopt the initiative. Herb Borock urged the Council to adopt the initiative. The Staff Report's procedure for adopting the initiative was incorrect. An entire neighborhood would be needed if Stanford University built the amount of housing proposed in its General Use Permit (GUP) in the Stanford Research Park, which would reduce the amount of office/R&D space available for development in the Research Park. Rita Vrhel supported the initiative. Palo Alto residents were tired of traffic congestion. Annette Ross remarked that Palo Alto had more traffic demand than traffic demand management. Increased use of Caltrain was a partial answer to traffic MINUTES Page 8 of 21 City Council Meeting Minutes: 7/30/18 congestion, but Caltrain's capacity was finite. One answer to traffic congestion was a reduction in the amount of allowable office growth. Paul Machado clarified that the initiative asked to maintain the amount of historical office growth over the next 15 years. Housing stock would never be sufficient if office growth continued at an ever-increasing rate. Stephanie Munoz understood that the lack of housing was a direct result of improving real parcels to their best economic use. Large companies should be required to provide living space for its workers. Rainer Pitthan reported traffic over the three bridges increased by 10 percent in each of the last seven years. An additional 500,000 square feet of office space would require 1.5 million square feet of housing for employees. Bob Moss urged the Council to adopt the initiative. Palo Alto residents overwhelmingly supported office regulation and limits. The initiative would apply the office cap Citywide. Additional office space would worsen the jobs/housing imbalance and traffic congestion and cost the City more money. Beth Rosenthal concurred with the comment that the number of office workers per 1,000 square feet was increasing. She urged the Council to adopt the initiative and to require a popular vote to modify the office cap. The jobs/housing imbalance and rising real estate costs exacerbated traffic congestion and the housing shortage. Lieve Moortgat shared the increasing difficulties of traveling in Palo Alto, the increasing amount of office space, the increasing number of office workers, and the need for housing. Hugo Moortgat related that job growth over the last 15 years caused substantially increased traffic congestion. Traffic delays had increased by 55 percent. Housing more workers within Palo Alto would not improve intercity traffic congestion. Roberta Ahlquist believed the increase in office growth had a direct bearing on housing costs. Increasing land costs made housing unaffordable. The Council should adopt the initiative so that funds were not spent unnecessarily for an election. Margaret Heath reiterated that the percentage of property tax paid by businesses was declining year over year because of laws around ownership of commercial property and the exemption for Stanford University. MINUTES Page 9 of 21 City Council Meeting Minutes: 7/30/18 Fred Balin stated large companies' occupation of Palo Alto office space prevented small businesses from locating in Palo Alto and increased congestion, both of which were reasons to reduce the amount of the office cap. Tiffany Griego, Stanford Research Park Managing Director, clarified that Stanford Research Park accounted for 24 percent of office growth in Palo Alto since 2001. The 2030 Comprehensive Plan did not increase the City's longstanding cumulative commercial growth cap. In 2017, Stanford Research Park businesses contributed $16.5 million to the City of Palo Alto's General Fund and $18.8 million to Palo Alto Unified School District (PAUSD). Arthur Keller remarked that reducing the growth of jobs would affect the jobs/housing imbalance more directly than building more housing. The initiative would reduce the amount of impact fees paid to the City by $60 million; however, a savings potentially greater than $60 million could be realized because impact fees did not recover the full cost of services provided. Mark Weiss expressed concern regarding the quality of the discourse. John Kelley felt a reasoned debate of the issues was needed before the public voted on the initiative in November. James Keene, City Manager, reported the consultant applied the approaches and methodologies utilized in the Comprehensive Plan analysis to the initiative. The initiative could result in the loss of $30 million in affordable housing funds. The initiative could result in the loss of $3 million a year for PAUSD. Over the past 18 years, on average less than 14,000 square feet of net office space had been constructed each year. Mr. Keene did not believe a correlation existed between rising housing prices and the market for office space. The change in employee density could not be managed directly by a cap based on square footage. Office development over which the City had no control likely generated more impacts and concerns than office development the City could control. Reducing the cap would not affect the issues raised by the public. An important question was whether the initiative would disproportionately affect Stanford Research Park. The initiative would extend the cap to Stanford Research Park, where businesses paid property taxes and leasehold interests changed. Council Member Kou inquired whether demolishing one building and constructing a new building of the same square footage generated new revenue for the City. MINUTES Page 10 of 21 City Council Meeting Minutes: 7/30/18 Ben Sigman, EPS Consulting, responded generally no. The analysis considered fees on net new space, which was office space in excess of any that was demolished. Council Member Kou remarked that construction of buildings in Stanford Research Park did not provide net new space and consequently did not generate new revenue for the City. Mr. Keene clarified that a change in the property valuation could generate property tax revenue, but not additional impact fees. Council Member Kou stated the increase in employee density increased the number of commuters and could increase the need for affordable housing. She inquired whether Council's adoption of the initiative would require a second reading of the Ordinance. Terence Howzell, Chief Assistant City Attorney, replied no. The Municipal Code authorized adoption of the Ordinance with a single reading. Council Member Kou requested an explanation of Mr. Borock's email. Mr. Howzell suggested he respond to all questions of a legal nature at one time. Council Member Scharff concurred with the City Manager's comments. He supported holding a community discussion of the initiative and placing it on the ballot. Adopting the initiative would not affect housing production or prices. Mayor Kniss believed some reports of traffic congestion were exaggerated because alternative routes were not heavily congested. Hopefully, the community would not allow the issue to become divisive and would see the benefits that resulted from growth. Council Member Fine asked if Staff foresaw any challenges under the terms of the initiative with the Council proposing a modification of the cap. Mr. Howzell indicated a modification of the cap would require a popular vote under the terms of the initiative. Council Member Fine suggested the initiative removed the Council's ability to modify the cap. Mr. Howzell concurred. Council Member Fine inquired about the effects of the initiative on housing. MINUTES Page 11 of 21 City Council Meeting Minutes: 7/30/18 Mr. Keene remarked that the initiative was not directly focused on providing more housing. Mr. Sigman added that any economic connection between the initiative and housing would be conjecture because of the many regional interactions. The analysis looked at fee revenue that would not accrue if the cap was reduced. Council Member Fine referred to the construction of millions of square feet of commercial space in neighboring cities, which would generate commute trips through Palo Alto. The initiative would not affect traffic issues. Council Member Holman corrected public comments regarding the Council's unanimous adoption of the Comprehensive Plan. The City should not allow construction of office space simply because neighboring cities allowed construction of office space. Council Member DuBois requested a synopsis of the Council subcommittee's thoughts and actions. Council Member Scharff advised that the subcommittee discussed numerous possibilities; however, the subcommittee thought the possibilities would confuse voters. Council Member DuBois asked if the subcommittee reviewed polling data. Council Member Scharff replied no. Council Member DuBois recalled the Council's discussion and votes to adopt the Comprehensive Plan. Mayor Kniss recapitulated comments regarding a community conversation. The public deserved an opportunity to vote on the issue. The initiative would dramatically alter the Comprehensive Plan. MOTION: Mayor Kniss moved, seconded by Council Member Fine to adopt a Resolution calling an election to submit the Initiative Measure to Reduce the Comprehensive Plan’s Citywide Cumulative Cap on Office/R&D Development to the voters at the next general municipal election on November 6, 2018. Mayor Kniss recalled the lengthy process for updating and adopting the Comprehensive Plan. Adopting the initiative would disrespect the democratic process. Even though 3,100 voters signed the petition, 38,000 voters deserved the opportunity to vote on the initiative. Stanford Research Park generated major income for the community and housed a number of companies that were closely associated with Palo Alto. The Fry's site appeared to be included in the initiative, which could affect development of the site. MINUTES Page 12 of 21 City Council Meeting Minutes: 7/30/18 Council Member Fine believed the Comprehensive Plan represented a compromise of community concerns. Land use and transportation issues were a concern across Palo Alto; consequently, voters should discuss and vote on the initiative. Financial data presented in the consultant's report was worrying. Updating the Comprehensive Plan required an enormous financial and time investment. He was disappointed that the community proposed revising the Comprehensive Plan so soon after its adoption, especially as changes proposed in the Comprehensive Plan were just beginning. Council Member Scharff commented that a signature on a petition did not equate to support for the issue. Adopting the initiative would stifle community engagement and transparency. A community discussion of the initiative could determine the effect of the initiative on the City. Council Member DuBois felt a discussion of full build-out and revenue generated assumed the cap was a goal. Caps were meant to ensure quality of life and rate of growth. The consultant's analysis did not consider non- economic factors, spanned a range of years that included a couple of big recessions, and concluded that the initiative would not take effect if the current development pattern continued. Placing the initiative on the ballot was the right thing to do. Council Member Kou described the initiative as a reflection of the community's lack of confidence in the City's management of traffic and finances. Balancing jobs and housing was impossible because of the amount of office space in Palo Alto. Housing should be constructed with retail space so that projects could include below market rate (BMR) housing. The initiative should be adopted so that the City can proceed with meaningful Transportation Demand Management (TDM) plans and purposeful taxes to fund infrastructure needs. SUBSTITUTE MOTION: Council Member Kou moved, seconded by Council Member Holman to adopt an Ordinance amending the Comprehensive Plan and Title 18 (Zoning) of the Palo Alto Municipal Code, as proposed by the Initiative Measure to Reduce the Office/R&D Development Cap, to reduce the citywide cumulative cap on new office/R&D development to 850,000 square feet. Council Member Holman remarked that impact fees never fully paid for the impacts created by development. The initiative was a rational approach to limiting office growth for a period of time. Neighboring cities did not cause Palo Alto's jobs/housing imbalance, and continued growth would exacerbate the imbalance. Employer subsidies for employee housing increased housing costs. The Council had taken no action to prevent the erosion of housing stock. The 850,000-square-foot cap would not cause any harm. The reported MINUTES Page 13 of 21 City Council Meeting Minutes: 7/30/18 amount of office/R&D space constructed each year changed constantly. The amount of existing office/R&D space was over abundant. The initiative process was a democratic process. Mr. Keene advised that a cap in any amount was not a goal. The initiative would eliminate flexibility. The issue was 850,000 square feet versus anything above 850,000 square feet over the next 12 years. Council Member Holman felt there had to be a limit at some point. Mr. Keene wanted to provide the Council with flexibility to make a range of decisions within the economic ecosystem. SUBSTITUTE MOTION PASSED: 5-4 Fine, Kniss, Scharff, Tanaka no 4. Resolution 9783 Entitled, “Resolution of the Council of the City of Palo Alto Placing a Measure on the November 6, 2018 General Election Ballot to Increase the City’s Transient Occupancy Tax (TOT) by One and One- Half Percentage Points to Make Minor Revisions to the Ballot Language.” MOTION: Council Member Scharff moved, seconded by Council Member Wolbach to adopt a Resolution to: A. Rescind previously-adopted Resolution No. 9778 that submitted a measure to the voters at the general election on November 6, 2018 to increase the City’s Transient Occupancy Tax (TOT) by one and one-half percentage points, using ballot language that would have been required under a potential statewide initiative Constitutional measure that has since been withdrawn; and B. Submit the same measure to the voters at the general municipal election on November 6, 2018 to increase the City’s Transient Occupancy Tax (TOT) by one and one-half percentage points, using updated ballot language. Council Member Tanaka inquired whether the Transient Occupancy Tax (TOT) applied to Airbnb-like operations. James Keene, City Manager, responded yes, the TOT applied to Airbnb and similar enterprises. Council Member Tanaka noted community concern regarding Airbnb-like businesses not paying the TOT and inquired about the Council's ability to increase penalties shown in Subpart d on packet page 85. MINUTES Page 14 of 21 City Council Meeting Minutes: 7/30/18 Terence Howzell, Chief Assistant City Attorney, reported the Council could discuss penalties and enforcement matters at a future meeting when the issue had been noticed. Mr. Keene added that penalties and enforcement were not part of the ballot initiative. Staff's ability to monitor and ensure receipt of tax revenues was challenging with non-hotel businesses. The Council could have a robust discussion regarding the issue. Council Member Tanaka asked if the Policy and Services Committee would be willing to review the issue. Council Member Fine replied yes. Council Member Tanaka requested the rationale for showing the increase in the ballot language as 1.5 percent. Mr. Keene suggested 1.5 percent was utilized because poll questions referred to 1 percent and 2 percent. Mr. Howzell clarified that the limit on the number of words was a factor in the language selected for the ballot. Council Member Tanaka understood the purpose of increasing the TOT was to fund infrastructure improvements; yet, the language referred to 9-1-1 communications. Mr. Keene explained that the listed uses polled well. The TOT increase was proposed as a general tax, which did not mandate use of the revenue. Council Member Tanaka felt the language was misleading given the Council's discussion of use of the tax revenues. Mr. Keene elucidated that the listed uses were components of the Public Safety Building, which was an infrastructure project. The listed uses were more effective with the public. Council Member Tanaka questioned whether an unstable 9-1-1 communications system was accurate or true. Mr. Keene related that 9-1-1 communications would be lost in an earthquake if the Emergency Operations Center was not moved to a building that complied with essential services standards. The listed uses resonated with the public during polling, and the pollster recommended including the uses in the ballot language. MINUTES Page 15 of 21 City Council Meeting Minutes: 7/30/18 AMENDMENT: Council Member Tanaka moved, seconded by Council Member XX to add to the Motion, “update the Ballot Question to more transparently reflect infrastructure concerns.” AMENDMENT FAILED DUE TO THE LACK OF A SECOND Council Member Tanaka related that a TOT of 15 percent would be the highest in the state. Council Member Scharff indicated Healdsburg's TOT rate was 16 percent. Mayor Kniss added that several other cities were contemplating increasing their rates to 16 percent. Council Member DuBois requested the estimated gap in infrastructure funding if the voters did not approve the TOT increase. Vice Mayor Filseth seemed to recall the gap would be $25 million. MOTION PASSED: 6-3 Holman, Kou, Tanaka no 5. Policy and Services Committee Recommends Council Adopt an Ordinance Adding Chapter 10.62 to Title 10 (Vehicles and Traffic) of the Municipal Code to Regulate Unnecessary Idling of Vehicles (Continued From April 2, 2018 and June 12, 2018). Rob de Geus, Deputy City Manager, reported the Colleagues' Memo suggested an Ordinance require drivers to shut off their engines after two to three minutes of stationary idling. The measure would support the Sustainability and Climate Action Plan (S/CAP), the Comprehensive Plan, and the Healthy City Healthy Community Plan. Staff drafted an Ordinance and presented it to the Policy and Services Committee in December 2017. The Policy and Services Committee generally supported the Ordinance and discussed enforcement and possible penalties associated with the Ordinance. The Policy and Services Committee recommended by a 3-1 vote a warning for the first violation, a maximum fine of $100 for the second violation, and a maximum fine of $150 for the third violation. The pilot program would extend for one year, at which time Staff would return to the Council with any issues. Council Member Holman advised that most people were amenable to shutting off their engines after a simple prompt. MOTION: Council Member Holman moved, seconded by Mayor Kniss to: MINUTES Page 16 of 21 City Council Meeting Minutes: 7/30/18 A. Adopt an Ordinance amending the Municipal Code to add Chapter 10.62 to Title 10 (Vehicles and Traffic) to regulate unnecessary idling of vehicles; and B. Direct Staff to create cards detailing negative air quality impacts of vehicle idling and fuel savings from turning the engine off and restarting. Council Member Holman requested Staff prepare the cards to facilitate public education. Mayor Kniss suggested enforcement be handled gently at the beginning of the program. She inquired whether Staff or Police Officers would enforce the Ordinance. James Keene, City Manager, felt citizens could distribute the cards. Council Member Holman requested the City logo be included on the card so that the card would be an official communication. Council Member Scharff recommended the Ordinance contain language regarding the City Council's intent to administratively enforce provisions of the chapter instead of a penalties section. Perhaps signage stating no idling could be placed in locations where idling commonly occurred. Mr. Keene agreed to install signage. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion Part A, “including Municipal Code Section 10.62.040, Option 2.” Mr. de Geus explained that Staff originally recommended public education because the City could not enforce the Ordinance. Council Member Holman inquired about the impact of increased traffic patrols on enforcement of the Ordinance. Mr. Keene indicated Police Officers as well as citizens could educate the public. Council Member Holman hesitated to accept the proposed amendment because construction vehicles frequently idled around construction sites. Council Member Scharff suggested the Council could amend the Ordinance to include penalties if education proved ineffective with construction vehicles. Mr. Keene added that the Council could direct Staff to return after a year to share results of the pilot program. MINUTES Page 17 of 21 City Council Meeting Minutes: 7/30/18 Council Member Holman asked if including "except construction vehicles" in the language would be feasible. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the Motion Part A, “(with Option 3 applying to construction vehicles).” Mr. Keene noted the Ordinance contained some exceptions. Council Member Scharff inquired whether including "except construction vehicles" would change the exceptions listed in the Ordinance. Mr. Keene responded no. He inquired whether the Motion was intended to grant Staff discretion to utilize the schedule of penalties for construction vehicles. Council Member Holman answered yes. Terence Howzell, Chief Assistant City Attorney, recalled concerns about the use of an escalating schedule of penalties because of the need to track each violation, the administrative cost of tracking violations, and the need for an appeal process. The Ordinance provided an exception for construction vehicles when they were actively in use. The exception language contemplated certain types of construction vehicles being subject to a penalty if they were not in use. Mr. Keene recommended the Council direct Staff to return in 90 or 120 days with findings regarding construction vehicle behavior. At that time, the Council could amend the Ordinance as needed. Council Member Holman inquired about the method for collecting data in 90 days. Mr. Keene advised that Staff would notify the drivers and determine whether they complied. In addition, the public could complain and share anecdotal information. Staff did not have the ability to track and report the number of violations incurred by an individual in real time. Council Member Scharff agreed with granting Staff discretion to issue citations. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to remove from the Motion Part A, “(with Option 3 applying to construction vehicles).” Council Member Wolbach supported the Motion as amended. MINUTES Page 18 of 21 City Council Meeting Minutes: 7/30/18 Council Member DuBois noted the exceptions stated in the Ordinance and recalled the Policy and Services Committee's discussion of issuing citations for repeat offenders. Council Member Kou asked if Staff would coordinate with Palo Alto Unified School District (PAUSD) and provide PAUSD personnel with cards. Mr. de Geus replied yes. Council Member Tanaka inquired whether power generators were allowed to remain on a truck while in use at a construction site. Mr. Keene would provide information at a later time. Council Member Tanaka asked if the Ordinance could be applied to that situation as the intent of the Ordinance was to reduce CO2 emissions. Mr. Keene believed the Ordinance would have to be revised to apply to power generators. Mr. de Geus seemed to recall an existing Ordinance that applied to power generators. Mr. Keene clarified that Staff would provide the Council with information regarding the location of power generators at construction sites and any existing regulation of power generators. Council Member Tanaka expressed concern about enforcing the Ordinance. Mr. de Geus agreed that enforcement would be difficult. If construction vehicles consistently violated the Ordinance, then perhaps the Development Center could issue education along with construction permits. MOTION AS AMENDED RESTATED: Council Member Holman moved, seconded by Mayor Kniss to: A. Adopt an Ordinance amending the Municipal Code to add Chapter 10.62 to Title 10 (Vehicles and Traffic) to regulate unnecessary idling of vehicles, including Municipal Code Section 10.62.040, Option 2; and B. Direct Staff to create cards detailing negative air quality impacts of vehicle idling and fuel savings from turning the engine off and restarting. MOTION AS AMENDED PASSED: 9-0 MINUTES Page 19 of 21 City Council Meeting Minutes: 7/30/18 State/Federal Legislation Update/Action None. Council Member Questions, Comments and Announcements Council Member Kou reported the San Francisco Roundtable Technical Working Group met in July to discuss the new Ground-Based Augmentation System (GBAS) and innovative approaches to reduce airplane noise. She requested creation of a process to provide feedback to the San Francisco Roundtable. James Keene, City Manager, would work with Staff to develop a process. Council Member Kou advised that the Roundtable set a September deadline to create innovative approaches. Staff should hold a Town Hall or invite a San Francisco airport representative to present the GBAS to the Palo Alto community. Michelle Flaherty, Deputy City Manager, indicated Staff could prepare a position letter based on previous policy guidance from the Council as feedback to the Roundtable. Council Member Kou clarified that feedback was needed for the GBAS. Mr. Keene agreed to review the information and other airplane noise issues and return to the Council. Council Member Kou related that two new Federal Aviation Administration (FAA) procedures were forthcoming, and noise monitors should be in place. Mr. Keene wished to ensure that any feedback complied with Council guidance. The Council rather than one Council Member needed to provide direction to Staff. Council Member Kou wanted to ensure the City did not miss the deadline for providing feedback. Vice Mayor Filseth cautioned Council Member Kou that the matter had not been agendized for Council discussion. He suggested Staff agendize the status report mentioned during a May Council meeting. Council Member Kou requested the status of the City joining the San Francisco Roundtable. MINUTES Page 20 of 21 City Council Meeting Minutes: 7/30/18 Mr. Keene reported the matter was tentatively scheduled for the August 20 Council meeting. Council Member Kou inquired whether Staff could present an emergency Ordinance for the Hotel President for Council consideration. Mr. Keene reiterated that Staff was working on alternatives. Staff could return to Council with adjustments to the existing Ordinance to enhance renter protections. Council Member Kou was more concerned with relocation costs. Mr. Keene clarified that Staff could return with adjustments that could ensure reasonable eviction mitigations for tenants facing displacement. Council Member Scharff suggested an Ordinance could be limited to tenants of the Hotel President. Council Member Wolbach noted Council Members prepared and submitted a Colleagues' Memo regarding renter protections. Mr. Keene explained that the Colleagues' Memo would follow the typical process for Colleagues' Memos. He would work with the Mayor to agendize adjustments to the existing Ordinance. Council Member Holman disclosed that Stanford University would accept comment letters even though the comment period for the General Use Permit (GUP) had closed. Mr. Keene interpreted the informal extension of the comment period as Staff had time to present an item for the Council. Staff would agendize an item after considering the County of Santa Clara's (County) reception and acceptance of the City's letter and Staff's ability to prepare an item along with items already scheduled for the Council. Council Member Holman related that the Planning and Transportation Commission (PTC) meeting the prior week generated controversy and comment. She expressed concern that specific comments had been made to The Weekly regarding the renter protections Colleagues' Memo prior to it being presented to Staff. Daisy Day, a fundraiser for Palo Alto Humane Society, was scheduled for September 16 at the Stanford Barn. Council Member DuBois requested the Mayor and City Manager fast track a Council discussion of adjustments to the renter protections Ordinance. MINUTES Page 21 of 21 City Council Meeting Minutes: 7/30/18 Council Member Scharff attended the Northern California Power Agency (NCPA) meeting and was reelected to its Executive Board. Mayor Kniss noted the California League of Cities' annual meeting was scheduled for September in Long Beach. Adjournment: The meeting was adjourned at 10:10 P.M.