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HomeMy WebLinkAbout2018-09-17 City Council Summary MinutesCITY OF PALO ALTO CITY COUNCIL MINUTES Page 1 of 24 Special Meeting September 17, 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 arrived at 5:15 P.M., Kniss, Kou, Scharff; Tanaka arrived at 5:09 P.M., Wolbach Absent: Closed Session 1. CONFERENCE WITH LABOR NEGOTIATORS City Designated Representatives: City Manager and his Designees Pursuant to Merit System Rules and Regulations (James Keene, Ed Shikada, Kiely Nose, Rumi Portillo, Sandra Blanch, Nicholas Raisch, Molly Stump, Terence Howzell, and Michelle Flaherty) Employee Organizations: 1) Service Employees International Union, (SEIU) Local 521; 2) Palo Alto Fire Chiefs’ Association (FCA);3) International Association of Fire Fighters (IAFF), Local 1319; 4) Utilities Management Professional Association of Palo Alto (UMPAPA); and 5) Palo Alto Police Managers’ Association (PAPMA) Authority: Government Code Section 54957.6(a). MOTION: Council Member Scharff moved, seconded by Council Member Wolbach to go into Closed Session. MOTION PASSED: 7-0 Holman, Tanaka absent Council went into Closed Session at 5:04 P.M. Council returned from Closed Session at 6:20 P.M. Mayor Kniss announced no reportable action. Special Orders of the Day 2. Proclamation Honoring Mary D. Gordon. Mayor Kniss read the Proclamation into the record. FINAL MINUTES Page 2 of 24 City Council Meeting Final Minutes: 9/17/18 Council Member Holman remarked that real estate ads sometimes promoted a property as having a garden designed by Mary Gordon. Ms. Gordon's work over the decades was admirable. The community was indebted to Ms. Gordon. Mary Gordon felt fortunate to live in Palo Alto. She had spent many hours in Council Chambers. She thanked the Council for the Proclamation. Anne Ingels advised that Ms. Gordon was her mentor and friend. She was documenting Ms. Gordon's history as a planner and landscape architect. Ms. Gordon was truly loved by her friends, clients, and colleagues. Emily Renzel related a history of Ms. Gordon's civic activities. The citizens of Palo Alto and the county were indebted to Ms. Gordon for her service. Enid Pearson shared memories of activities with Ms. Gordon. Ms. Gordon's spontaneity, leadership, and knowledge of the land produced Palo Alto's first Comprehensive Baylands Master Plan. Don Weden commented that the numerous urban trails resulted from the trails and pathways plan developed by Ms. Gordon. Ms. Gordon's legacy would benefit current and future generations. Ruth Gordon read a statement from Pat Sanders regarding the beauty of Ms. Gordon's gardens. Council Member Scharff thanked Ms. Gordon for her service to the City and community. Very few people had shaped the community in such a way that the results lasted and were for the good of the community. 3. Recognition of Businesses Participating in the Clean Water Action "Rethink Disposable" Program. Phil Bobel, Public Works Assistant Director, reported eight local businesses had participated with the City and Clean Water Action, an environmental advocacy group, to institute a program called ReThink Disposable. Chris Slafter, Clean Water Action, advised that the event recognized the first certified food service businesses for reducing foodware packaging and waste and applauded them for being environmental stewards and business leaders. Foodware packaging was a primary pollutant in the environment. To prevent the flow of trash pollution, Clean Water Action developed the ReThink Disposable certification program for food service operators as a way to stop waste before it starts. Clean Water Action offered recommendations and technical assistance to transition restaurants from single-use foodware to reusable foodware for onsite dining. Changing to reusable foodware saved FINAL MINUTES Page 3 of 24 City Council Meeting Final Minutes: 9/17/18 money and reduced litter. The ReThink Disposable service was part of a larger effort by Palo Alto Environmental Services Staff to develop a plastic reduction plan, which would include fast food restaurants. Four of the five certified businesses had prevented the use of more than half a million single-use foodware items each year, saved more than $13,000 a year, and prevented 8,000 pounds of trash each year. Mayor Kniss recognized Gelataio, Kirk's SteakBurgers, New York Pizza, Palo Alto Baking Company, Sprout Café, Teaspoon, The Counter, and Nourish Café in the Oshman Family Jewish Community Center and presented certificates to those present. Mr. Bobel noted The Counter's participation in the Girl Scouts' program to use reusable straws. Agenda Changes, Additions and Deletions None. Oral Communications Roger Smith requested help with cut-through traffic in neighborhoods. Perhaps a temporary roundabout could be installed to reduce traffic speed. Stephanie Munoz stated the Council had allowed AJ Capital to think it could convert the Hotel President Apartments to a hotel when it could not. Granting AJ Capital a variance would divide the community. Herb Borock provided suggested revisions to Municipal Code sections, which would effect termination of the Planned Community (PC) Zoning District and continue enforcement of existing PC Zoning Districts, and Bob Moss' article written 40 years ago. David Coale invited Council Members to Bike Palo Alto on September 30. Frequent rider cards would be available for participants to earn an invitation to a celebration with prizes. Iqbal Serang referred to an editorial and articles published in the Palo Alto Weekly. He was disappointed by the Council's action on rent protections. John Vermes stated the issue around the Hotel President was properly managing the existing housing stock. FINAL MINUTES Page 4 of 24 City Council Meeting Final Minutes: 9/17/18 Study Session 4. Study Session on Airplane Noise. THIS ITEM IS CONTINUED TO A DATE UNCERTAIN. 5. Request for a Pre-screening of a Proposal to Rezone the Property at 788 San Antonio Road From Service Commercial (CS) to Multiple-Family Residential (RM-40) and to Redevelop the Site With a Three-story, Approximately 46,000 Square Foot, 48-unit (Including Five Below Market Rate Units) Residential Project and a Below-grade Parking Garage. Environmental Assessment: Not a Project; any Subsequent Formal Application Would be Subject to the California Environmental Quality Act (CEQA). THIS ITEM IS CONTINUED TO A DATE UNCERTAIN. 6. Review of Public Safety Building Design and Project Status. James Keene, City Manager, reported Staff presented the item to inform the Council regarding the new Public Safety Building (PSB). The final Architectural Review Board (ARB) hearing was scheduled for September 20. Brad Eggleston, Public Works Interim Director, related the history of the PSB since 1970. Early in 2018, an Environmental Impact Report (EIR) for the PSB and the parking garage was certified, and the ARB approved the parking garage project. Staff expected to receive ARB approval of the PSB at the hearing on Thursday. The design for the PSB and a construction contract for the California Avenue parking garage should be presented to the Council for approval in a few months. Michael Ross, Ross Drulis Cusenbery Architecture, disclosed that the PSB project had been vetted approximately seven times. The project had three primary components: the new 636-space California Avenue parking garage, a new 47,500-square-foot PSB, and a surface operational yard with accessory buildings constructed over two levels of secure parking. The PSB site was located within an evolving neighborhood. The PSB was a specialized building that balanced security with openness. The building was designed to feel as though it was part of the civic fabric of the community. The building would be surrounded by a landscape frame, which would provide seat walls, plantings, and security. The entry would be located off Birch Street. The accessory buildings would screen the large-vehicle parking areas from the street. He reduced the scale of the building and brought the multipurpose room closer to the street edge and made it a one-story element at the street. The landscape and architecture formed a continuous, single-story pedestrian realm as FINAL MINUTES Page 5 of 24 City Council Meeting Final Minutes: 9/17/18 identified by a terracotta-colored concrete element. Vertical inflections were the terracotta-colored wall at the entry and the communications tower. The landscape would emphasize native plantings and drought-tolerant plant material. The first floor would be terracotta-colored concrete, the second floor tile, and the third floor tile and glazing. At night, the PSB would softly glow. The PSB would house the Emergency 9-1-1 Communications Center, the Emergency Operations Center (EOC), property and evidence processing, and prisoner processing and holding. Mayor Kniss requested the rationale for designing a mostly flat roof. Mr. Ross explained that the City's height limitation was the major factor. The PSB had a higher floor-to-floor height than most buildings. Virtually all mechanical equipment was located in accessory structures rather than on the rooftop. Mayor Kniss remarked that pedestrians would not notice the roof from the street. Mr. Ross consciously designed a simple roof with fenestration and detailing beneath it. Council Member Scharff asked if the proposed building would meet the Police Department's needs. Patty Lum, Assistant Police Chief, answered yes. Council Member Scharff indicated the PSB was not attractive in the renderings, but attractiveness was difficult to judge. Mr. Ross believed it would be attractive and feel as though it belonged on the site. The ARB process had improved the design. It would be an attractive neighbor to other buildings in the neighborhood. Council Member Scharff requested Mr. Ross share the ARB's comments and his responses. Mr. Ross shared ARB comments of create a softer and warmer approach; relocate the garage ramp, which he did; create a human-scale and welcoming presence, for which he reduced the entrance to a single-story; integrate the communications tower into the building design, which he did; use a warmer materials palette, for which he changed to warm buff and terracotta colors; articulate the building form and reduce blockiness, for which he carved ins and outs and added textures, colors, and window features; and consider a smaller plaza area, for which he pulled the multipurpose room out. FINAL MINUTES Page 6 of 24 City Council Meeting Final Minutes: 9/17/18 Council Member DuBois asked if the project included planting additional trees. Mr. Ross replied yes. The project included planting twice the number of trees removed both on the site and elsewhere in the City. Council Member DuBois cautioned staff to ensure the trees planned for the Ventura area would not be removed as part of the Ventura area plan. He expressed concern about the mass of the antenna and inquired whether it could be located offsite or camouflaged. Charles Cullen, Technical Services Division Deputy Director, explained that the system operated over a microwave network. Both Palo Alto and Los Altos were host sites for the 9-1-1 communications system, but Mountain View was a remote site. The tower was essential for communication capabilities, particularly for continuity of operations following a catastrophic event. Locating the tower offsite increased the risk of its failure if it was not built to public safety standards. In addition, high voltage lines on or near an offsite location could interfere with radio and data transmissions. Backhaul could be severed in a major event. The architects had done a good job of mitigating aesthetic concerns. Following a catastrophic event, an onsite tower could provide the radio communications necessary for emergency services. Without radio communications, the City would be unable to provide emergency services to the community. Mr. Ross advised that the 135-foot communications tower had been integrated into the building, such that the height of the tower above the building was much less than 135 feet. The tower was emblematic of the PSB's role in public safety communications and dispatch. Council Member DuBois inquired whether the depiction of the tower in Slide 10 was accurate. Mr. Ross replied yes. The concrete base of the tower was part of the architecture of the building. Approximately 60 feet of tower would be visible. Council Member DuBois asked if dishes would be attached to the tower. Mr. Ross answered yes. The tower would have dishes and whip antennas. Council Member DuBois inquired about the effect of nighttime lighting on residential buildings across the street. Mr. Ross clarified that the PSB would not be heavily lit. Lighting would be bright enough to provide safety in the entry area. FINAL MINUTES Page 7 of 24 City Council Meeting Final Minutes: 9/17/18 Council Member Holman asked how Staff and the architects would handle Council Members' comments from the Study Session. Mr. Keene reported actions would depend upon whether comments were suggested directives or general feedback. Council Members could indicate individual perspectives or shared concerns. Council Member Holman remarked that she liked the building generally. She liked the amount of open space, the plaza space, the wider sidewalks, and accessibility to the site, but there were a lot of hardscape, heat, and impermeability. She appreciated the step downs. Some parts of the building appeared to be soft stories. She questioned whether the ARB commented on that. Mr. Ross indicated the PSB was not a soft-story building. It included state-of- the-art engineering to comply with essential facility standards. At the entry, the canopy was supported by a wing wall. Council Member Holman asked if the building was engineered such that the elements that appeared to be soft story were not structural elements. Mr. Ross responded yes. The PSB was designed to be extremely robust and available for immediate occupancy following a major earthquake. Council Member Holman requested the rationale for using a reflective tile. Mr. Ross suggested the word reflective was not accurate. The tile would have a glossy white finish that would have a reflectivity similar to nearby glass and that would be similar to tiles used in the California Avenue parking garage. The EOC would be located behind the tile facade, and the EOC was not a window-rich environment. A reflective tile would give the appearance of window glass. Council Member Holman did not find it to be a positive element and did not believe the public's reception would be positive either. Perhaps the finish could be less glossy or less reflective. At the third level, the tile would catch the sun more than other levels. Mr. Ross suggested the tile would reflect the cityscape rather than sunlight. He would discuss it with the ARB. Council Member Holman asked if the horizontals on the windows at the left end of the top floor were design elements or shades. Mr. Ross indicated they were screens that could be turned to control privacy and glare. FINAL MINUTES Page 8 of 24 City Council Meeting Final Minutes: 9/17/18 Council Member Holman inquired about ventilation. Mr. Ross advised that the windows did not provide ventilation. Council Member Holman asked if any of the windows provided ventilation. Mr. Ross answered only the windows in breakroom areas and places like that. Council Member Holman found the facade shown in Slide 13 to be unfriendly and off-putting. There was not a break in the long facade. Mr. Ross explained that the structure was located above the garage, which created problems for landscaping. He proposed a series of deep planting wells. Where possible, larger trees would be planted. The surface parking area, which was screened by landscaping, was a necessary feature. Council Member Holman felt the area would be appropriate for public art and inquired about public art for the PSB. Ms. Lum reported the artist was identifying his preferred locations for artwork. She could suggest the wall location to the artist. Council Member Holman commented that artwork should be designed with the building rather than applied to the building. Ms. Lum advised that the artist and architect were collaborating. Council Member Holman noted the public's negative response to towers, and the City should set the standard for good design. The tower could appear better than depicted and could accomplish the same tasks while appearing more artful. Mr. Keene asked if she meant to separate the appearance of the pole from the appearance of the attachments. Council Member Holman responded yes. Mr. Ross understood the challenges associated with designing attachments and would work with the communications team and Police Department to design a more pleasing antenna array. Council Member Holman suggested the communications team and Police Department would not have knowledge of more appealing designs. Council Member Wolbach requested the number of parking stalls for motorcycle parking. FINAL MINUTES Page 9 of 24 City Council Meeting Final Minutes: 9/17/18 Mr. Ross replied seven. Council Member Wolbach believed the number should be higher. He requested the number of motorcycle parking spaces in the California Avenue parking garage. Mr. Eggleston advised that motorcycle parking spaces would be included in the garage, but the number had not been determined. Council Member Wolbach recommended inclusion of electric charging for as many vehicles as possible. The appearance of the communications tower was appropriate to a PSB. He had seen other ways to camouflage antennas, but they were ugly. Attempts to camouflage the tower would only increase its visibility. He preferred the tower be as simple and clean as possible. Council Member Kou inquired about parking for the Mobile Emergency Operations Center (MEOC). Ms. Lum reported the MEOC could be deployed on the PSB site, but it would not park permanently on the site. Council Member Kou requested the location of parking for deployment of the MEOC. Ms. Lum advised that the MEOC could park on Sherman or Jacaranda. Staff would not close streets to park the MEOC because cut-outs would be available. Council Member Kou inquired about radiation from the tower. Mr. Cullen explained that the height of the tower would limit exposure. He would explore lower-profile antennas and smaller dishes for the tower with the City's radio consultants, who were smart and well-informed. Council Member Fine asked if bicycle racks would be located along Park Boulevard only. Mr. Ross related that bicycle parking was provided at the front of the building. A bicycle repair station was planned for the corner of Park and Jacaranda. Council Member Fine encouraged Staff to consider additional bike parking. The function should drive the form of the communications tower. Increasing the building's identity as an important public space would be appreciated. Council Member Tanaka requested the role of the MEOC in 9-1-1 communications and in ensuring the community's safety. FINAL MINUTES Page 10 of 24 City Council Meeting Final Minutes: 9/17/18 Mr. Cullen advised that the MEOC is used for a variety of purposes and served as a 9-1-1 center and a mobile command center. The MEOC provided outstanding redundancy for the City and was a fourth component for responding to emergencies and catastrophic events. Council Member Tanaka wanted to ensure the community was aware of the MEOC's capabilities while the PSB was under construction. The community should not be concerned about the possibility of a 9-1-1 communications outage while the MEOC was available. Mr. Cullen reiterated that the MEOC could provide 9-1-1 communications should the Communications Center fail for some reason. Council Member Tanaka inquired about the possibility of including a public rooftop garden on the PSB. Mr. Ross advised that rooftop gardens were not typically designed on police stations for security reasons. However, the entire ground plane was a roof garden for the underground garage. Council Member Tanaka asked if Mr. Ross was referring to what appeared as a basement cover. Mr. Ross answered yes. The single-story roof canopy hid large vehicles and could support a garden. There would be an additional cost for a garden. Mr. Keene reiterated that Council Members' comments would be shared with others as requested. Staff planned to return to the Council by the end of November for a decision on the project itself, at which time the Council could provide directions to Staff. Mr. Eggleston reported the initial 2012 cost of $57 million was a rough estimate and included the cost of land but did not include cost escalation. The 2016 cost estimate was based on simple conceptual plans and included more costs and cost escalation to the midpoint of construction. Since the 2017 estimate of $91 million, cost increases had occurred due to revisions for ARB requests, cut-off walls, and a design contingency. The need for underground basement levels added approximately $25 million to the cost of the project. The total cost estimate was now $106 million, which included cost escalation through the spring of 2022 and a design contingency. Staff did not expect any significant changes to costs. The Capital Improvement Program (CIP) budget for fiscal years (FY) 2019-2023 totaled $356 million while the FY 2019 CIP budget totaled $133 million. The 2014 Infrastructure Plan projects were included in the CIP for FY 2019-2023. The CIP budget for FY 2018-2022 included a cost of $180 million for Infrastructure Plan projects. The revised FINAL MINUTES Page 11 of 24 City Council Meeting Final Minutes: 9/17/18 cost for all Infrastructure Plan projects totaled $265 million. The cost of unfunded projects such as the Junior Museum and Zoo, the Animal Shelter, and parks was estimated at $55-$65 million. Potential sources for funding the $85 million gap for Infrastructure Plan projects were $28 million from the balance of the CIP fund; $6 million from other funds such as the In-Lieu Parking Fee Fund, the Charleston-Arastradero Impact Fee Fund, and SB 1 funding; and $35 million from leveraging the projected Transient Occupancy Tax (TOT) generated by the new San Antonio Marriott hotels. With use of the funding stated, the funding gap for Infrastructure Plan projects would total $16 million. Use of the funding stated would not leave any funding for unexpected increases in other CIP projects. If the TOT increase was not approved in November, Staff would have to reprioritize projects in the General Fund CIP. Mr. Keene advised that the Council adopted the five-year CIP plan every five years but appropriated funding for the first year of the CIP plan every year. The projects contained in each year of the CIP plan could be revised. The City had made a concentrated, determined effort to make the Infrastructure Plan the central investment. Approval of the TOT increase would ensure Infrastructure Plan projects and CIP projects proceeded as planned. Staff had not begun any design for Fire Station 4, and the Council had not reviewed the preliminary designs for the Downtown parking garage. The unfunded projects could be described more accurately as emergent but known possible projects. Mayor Kniss recalled Council Members Holman and Kou's prior requests for information regarding the funding stream for projects. She noted the rapid and ongoing increase in construction costs. Mr. Keene clarified that the $28 million fund balance was an assessment of the amount Staff expected to receive through 2022. The $28 million included the yearly contributions to the Infrastructure Reserve Fund. Mr. Eggleston advised that Staff focused value engineering on architectural aspects while carefully limiting changes to anything that impacted the operations and security of the PSB. Staff had considered consolidating the two basement levels into one larger basement level, which could save approximately $10 million. If the second level was eliminated, employee parking could be relocated to the California Avenue parking garage and would occupy one full level of the parking garage. The Council did not approve the idea when reviewing the California Avenue parking garage plans. The team had many concerns about a preliminary design that eliminated the second basement level. Currently, the first basement level was dedicated to patrol operations and parking. The second basement level housed much less program area and more parking. FINAL MINUTES Page 12 of 24 City Council Meeting Final Minutes: 9/17/18 Mr. Keene indicated he had pushed Staff to eliminate the second level and relocate employee parking. Mr. Eggleston related that a single basement level would extend farther, even underneath the sidewalk along Park Boulevard. The building was more constrained, and components of the project appeared to be pushed into the site. Ms. Lum remarked that the design for a single basement level appeared very busy. Staff wanted an operational basement where everything related to patrol could be located without interference from non-patrol vehicles and other City Staff. The design for a single basement level narrowed drive aisles to one-way traffic and a width of 10 feet; created an overlap between people, custody and non-patrol Staff; relocated program space into B1 and the building; provided access and doorways to rooms via drive aisles; could impact the opportunities for backup emergency power and electric vehicle charging; and would limit future expansion. Mr. Keene added that the constraints of the site and the height and mass of the PSB warranted an investment in two basement levels. Mr. Eggleston related that bid specifications for the California Avenue parking garage would be released the following day. Staff anticipated presenting a construction contract to the Council for approval by the end of 2018 and breaking ground in January 2019. Upon completion of the parking garage in 2020, Staff anticipated breaking ground for the PSB and having construction completed near the end of 2021. The construction cost escalation for the PSB was $350,000 per month. Council Member Wolbach requested the reasons for the ARB comments costing $4-$5 million. Mr. Eggleston explained that $4-$5 million was the estimated construction cost for the design features added in response to ARB comments. Council Member Wolbach inquired about the delay that resulted from ARB comments. Mr. Eggleston did not believe ARB comments resulted in a delay because Staff had included float time between completing PSB design and construction of the parking garage. Council Member Wolbach noted the proposed sources of funds for Infrastructure Plan projects could be used for the unfunded projects or affordable housing. He did not believe any Council Members would be willing FINAL MINUTES Page 13 of 24 City Council Meeting Final Minutes: 9/17/18 to eliminate projects for Fire Stations 3 and 4 and Byxbee Park. The PSB had to proceed. Everyone valued bike and pedestrian safety. The California Avenue parking garage dwarfed the PSB, which could be interpreted as a priority for parking. He would never support the Downtown parking garage project. The site should be used for affordable housing. Council Member Scharff recommended Staff obtain ARB approval of the PSB and move forward with the project as quickly as possible. Staff's decision regarding the two basement levels was correct. The need for a new PSB was strikingly obvious. Council Member DuBois asked if approval of the TOT increase would fully fund the Infrastructure Plan. Mr. Eggleston clarified that approval of the TOT increase and use of the other funding sources would fund the Infrastructure Plan. Council Member DuBois believed the Council promised voters it would implement the Infrastructure Plan. The TOT ballot arguments listed the projects including two parking garages. Cubberley Community Center should be added to the list of unfunded projects. The impacts from both public and private construction projects in the neighborhood should be considered. He questioned whether the Council should institute a moratorium in the area because construction was occurring before the Council developed a specific plan. Council Member Kou inquired about inclusion of costs for Staff time in the cost estimates. Mr. Eggleston advised that the $106 million did not include costs for Staff time. Staff time is included in the $265 million cost for the Infrastructure Plan. Earlier cost estimates for individual projects did not include Staff time; therefore, he did not included Staff time in current cost estimates for individual projects. Council Member Kou supported construction of a new PSB; however, the site was one of the highest and best use sites for housing and retail. She did not understand why the Council did not consider constructing the PSB on the AT&T site off West Bayshore, where the cost could be less. Public safety vehicles accessing the PSB would create more traffic congestion. Council Member Tanaka suggested a bridge between the PSB and the parking garage with parking over the street. He asked Staff to explain the cost escalation amount of $350,000. FINAL MINUTES Page 14 of 24 City Council Meeting Final Minutes: 9/17/18 Mr. Eggleston indicated the amount was based on the construction cost for the PSB and assumed a construction cost escalation of 4 percent annually. Council Member Tanaka asked if construction costs increased by 4 percent each year. Mr. Eggleston replied no. In recent years, construction costs had increased by 6 and 7 percent. Council Member Tanaka asked if construction costs ever decreased. Mr. Keene noted the cost escalation amount was based on a limited time. The project cost had not been inflated by $350,000. Staff was merely stating the potential cost. The target date for awarding the contract was mid-2020 and, at that point, the City would commit to the project cost. If the timeline extended beyond 2020, additional costs would be included. Council Member Tanaka remarked that the cost escalation assumed costs would increase indefinitely. He questioned the wisdom of proceeding with projects when construction costs were so high. There was no proof that construction costs would continue to increase over the next ten years. Mr. Keene related that Staff's intention was to recommend the project proceed as planned. If a recession occurred in the next year, then Staff could provide new estimated costs. For planning purposes, Staff relied on the recent history of construction costs. Council Member Tanaka wished to ensure the public received accurate and factual information. Mr. Keene clarified that Staff planned for the worst impact. Mayor Kniss noted that City parking lots across the community could be utilized for housing. Joe Simitian identified a site one block from the PSB site for housing. Council Member Fine concurred with plans for two basement levels. He asked if Staff had explored public-private partnerships or naming rights. Mr. Eggleston answered no. Council Member Fine recommended Staff consider that in the future. Vice Mayor Filseth was disappointed that the second basement level could not be eliminated. He inquired whether the design of the parking garage was the main reason the second basement level could not be eliminated. FINAL MINUTES Page 15 of 24 City Council Meeting Final Minutes: 9/17/18 Mr. Eggleston indicated that was true a while ago. The schedule showed PSB design continuing and construction beginning at the completion of the parking garage. Vice Mayor Filseth noted a recession could occur in the next year or so, which could affect funding. He requested the final date that the design could be altered. Mr. Eggleston guessed the final date would be in 6-12 months. Altering the design in 6-12 months would impact the overall schedule somewhat but would be possible. The prequalification and bidding process was scheduled to begin in 12 months. Roger Smith remarked that the PSB project had to proceed because of the risk of lawsuits and increasing costs. In 2014, the Council promised the TOT increase would fund a new PSB. Hamilton Hitchings concurred with funding critical infrastructure projects. Any site in the Baylands would be compromised by sea level rise, soft soil, and separation by the bridge. The entire community did not support relocating parking for the PSB to the parking garage. He suggested plans include seven days of power, bollards, and bullet-proof glass in the lobby. Stephanie Munoz remarked that the Council never held a discussion of the need for a new PSB. Housing should be included on the site. Nielson Buchanan suggested the Council commit to the number of cars removed from the Residential Preferential Parking Permit (RPP) program and to eliminate free parking. The communications tower could have any appearance, but it had to function. Kelsey Benes felt the site was a missed opportunity for dense housing near public transit. Council Members should not focus on minor details of a project when members of the public were waiting to speak and when many important topics needed Council discussion. Bret Anderson expected costs to be flat or decrease soon. Eliminating the parking garage could solve the funding deficit. Parking fees should fund the parking garage. David Coale, Carbon Free Palo Alto, recommended the Council revisit the parking garage project. Eliminating the parking garage from the Infrastructure Plan would eliminate the funding deficit. The Transportation Management Agency (TMA) could reduce parking congestion at one-tenth the cost of the garage. FINAL MINUTES Page 16 of 24 City Council Meeting Final Minutes: 9/17/18 Jack Morton, California Avenue merchants, believed the parking garage was the one way to provide parking in the California Avenue area. Eliminating the PSB project would balance the cost of the Infrastructure Plan. He encouraged the Council to fully park the PSB and fulfill its agreement to fully fund the parking garage. Rita Vrhel remarked on the many assumptions of the budget for the Infrastructure Plan. She did not support an increase in the TOT as it would affect hotels' prosperity and employees. City Manager Comments James Keene, City Manager, reported bookmarks for the anti-idling Ordinance would be distributed to schools and other groups. The City was hosting a public workshop on October 2 for San Francisco airport staff to present the new landing system. Following the airplane crash near the Palo Alto Airport, Staff contacted multiple Federal and State agencies regarding the crash and the potential for hazardous materials to enter the marsh. The Fire Department took measures to ensure hazardous materials were contained during removal of the airplane. Staff did not find any fuel, oil, or other fluids leaking into the marsh. A small number of native plants was damaged by removal of the plane, and they would be replaced. Bike Palo Alto was scheduled for September 30. Community members should RSVP for the September 27 community meeting regarding the co-design of Cubberley Community Center. Visitors from Sister City Heidelberg and Chief Sustainability Officer Gil Friend attended the Global Climate Action Summit in San Francisco the prior week. The Moonlight Run 5K walk, half marathon, and 5K and 10K runs were scheduled for September 21. Minutes Approval 7. Approval of Action Minutes for the August 27, 2018 Council Meeting. MOTION: Council Member Scharff moved, seconded by Vice Mayor Filseth to approve the Action Minutes for the August 27, 2018 Council Meeting. MOTION PASSED: 9-0 Consent Calendar Council Member Kou registered a no vote on Agenda Item Number 8. Council Member Holman registered a no vote on Agenda Item Number 8. Rita Vrhel, speaking regarding Agenda Item Number 8, expressed concern regarding the $25,000 payment to Cool Block when all other organizations FINAL MINUTES Page 17 of 24 City Council Meeting Final Minutes: 9/17/18 were not paid. The program may not be needed because the Electric Utility was carbon free. The City Manager's relationship to the Empowerment Institute should be discussed. Neva Yarkin, speaking regarding Agenda Item Number 8, stated the City had neither funding nor Staff time to support the Cool Block program. Other avenues were available for neighbors to meet one another. Rebecca Sanders, speaking regarding Agenda Item Number 8, did not believe proceeding with the Cool Block program was logical at the current time. The agenda item should be an Action Item. Elaine Meyer, speaking regarding Agenda Item Number 8, requested the item be removed from the Consent Calendar as the contract was complex and costly. A.C. Johnston, speaking regarding Agenda Item Number 8, shared his experience with the Cool Block program. He urged the Council to support the program. Eleanor Laney, speaking regarding Agenda Item Number 8, related that the program was focused on actions taken by neighbors jointly. The program was very effective. Kathryn Johnston, speaking regarding Agenda Item Number 8, shared her experience with the Cool Block program. Bret Andersen, speaking regarding Agenda Item Number 8, commented regarding neighbors working together to achieve goals and the benefits of the Cool Block program. Gail Price, speaking regarding Agenda Item Number 8, supported the Cool Block program as it supported many of the City's policies and programs. Sandy Slater, speaking regarding Agenda Item Number 8, clarified that the Cool Block program was intended to drive residents to City services and programs. Kayla Skidmore, speaking regarding Agenda Item Number 8, stated her participation in the Cool Block program enhanced her ability to serve as an Emergency Services Volunteer. Annette Isaacson, speaking regarding Agenda Item Number 8, supported the Cool Block program and read Sharon Elliott's letter in support of the program. FINAL MINUTES Page 18 of 24 City Council Meeting Final Minutes: 9/17/18 Lisa Van Dusen, speaking regarding Agenda Item Number 8, concurred with prior comments regarding the positive benefits of the Cool Block program. The requested funds would support Cool Block's intention to lead residents to adopt City programs. Hilary Glann, speaking regarding Agenda Item Number 8, stated the Cool Block program successfully supported and encouraged behavior changes that reduced carbon creation. John Kelley, speaking regarding Agenda Item Number 8, was surprised by the amount of information he gained through the Cool Block program. The program was a force multiplier for City programs. MOTION: Council Member Scharff moved, seconded by Vice Mayor Filseth to approve Agenda Item Numbers 8-9. 8. Approval of a Contract With the Empowerment Institute for $25,000 for the Community Engagement Block Program (Continued From April 2, 2018). 9. Approval of Amendment Number 1 to Contract Number C16161210 With Shah Kawasaki Architects, Inc., in an Amount Not-to-Exceed $97,626 to Provide Continued Construction Administration and LEED Certification Services for Fire Station 3 Replacement Project (PE-15003), for a new Total Not-to-Exceed Amount of $696,678, and to Extend the Term Through May 17, 2019. MOTION FOR AGENDA ITEM NUMBER 8 PASSED: 7-2 Holman, Kou no MOTION FOR AGENDA ITEM NUMBER 9 PASSED: 9-0 Council Member Holman felt the community was divided with respect to the Cool Block program. She expressed concern regarding the amount of Staff time that would be needed for the program. Council Member Kou concurred with Council Member Holman's comments. Funding the program would set a precedent for other programs and could offend the many volunteers who were not paid. James Keene, City Manager, reported he had no formal relationship with the Cool Block Board. His support of the Cool Block program was no different than his support and engagement with other programs. The Office of Emergency Services provided ongoing Staff support to volunteer programs. The $25,000 payment would support community efforts. FINAL MINUTES Page 19 of 24 City Council Meeting Final Minutes: 9/17/18 Action Items 10. Adoption of an Ordinance Amending Chapter 9.68 (Rental Housing Stabilization) of Title 9 (Public Peace, Morals, and Safety) of the Palo Alto Municipal Code to Require Relocation Assistance for No-fault Eviction for Multifamily Housing Developments Containing 50 or More Rental Units, Either on SECOND READING of the Ordinance Adopted on FIRST READING on August 27, 2018 (PASSED 7-1 Tanaka no, Fine absent), or on FIRST READING of a Modified Ordinance on the Same Topic (Removed From Consent on September 10, 2018). Molly Stump, City Attorney, reported the item removed from the Consent Calendar on September 10 was a second reading. If the Council adopted the Ordinance on second reading, the Ordinance would become effective in 31 days. In response to public comment, Staff eliminated the means testing provisions as a second option for the Council. If the Council eliminated the means test or made additional significant revisions, the current agenda item would be treated as a new first reading, and the Ordinance would be scheduled for a second reading. In an uncodified section, Staff clarified the Council's intention for full relocation assistance payments to be applicable to any no- fault eviction that occurred after the effective date of the Ordinance regardless of when tenants were informed of the tenancy's end. In other words, the language clearly stated the Council's intent for relocation payments to apply to evictions that had not been finalized prior to the effective date of the Ordinance. Should the emergency Ordinance be challenged and invalidated by a court, Staff added procedural language to ensure that the Ordinance would replace rather than amend the emergency Ordinance. Michelle Kraus appreciated the option for the Council to remove the means test and urged the Council to select that option. Matthew Warren, Law Foundation of Silicon Valley, stated the Council should adopt the proposed Ordinance contained in Attachment B and recommended Section 9.68.035(b)1 be stricken. The Council should enforce existing laws and prevent the eviction of Hotel President residents who had been denied one-year leases. Stephanie Munoz realized that all tenants participated in a community effort to aid economic rising. Dennis Backlund recommended the Council add that no-fault evictions at the Hotel President shall not be carried out until the new owner had submitted a project application and all required permits had been approved. The addition of a requirement for Hotel President residents to be offered one-year leases would be appreciated. FINAL MINUTES Page 20 of 24 City Council Meeting Final Minutes: 9/17/18 Kevin Goulding requested the Council remove the means test for displacement assistance. Mary Riordan requested the means test be removed from the emergency Ordinance and the Ordinance; the relocation benefit be defined as three months of the current market rate rent; and Number 10 from Section 2b be removed. Jeffrey Jones noted the Council had not upheld the one-year Ordinance, had not upheld the ruling on the intended use of the Hotel President, and had not supported affordable housing. Hotel President residents would take the matter to the courts if necessary. Owen Lewis, California Apartments Association, suggested relocation benefits be based on a means test. The parameters that triggered relocation payments should focus on when a property was removed from the market or had undergone a change of use. Kelsey Banes supported revisions to the emergency Ordinance and the elimination of means testing. Mary Sylvester urged the Council to adopt Attachment B and to reduce the number of units from 50 to four. Chris Kellogg requested the Council remove the means test and enforce the requirement for a one-year lease. Matthew Reed, Silicon Valley @Home, urged the Council to raise the income restrictions for households otherwise eligible for relocation assistance under the Ordinance. Roberta Ahlquist believed the City needed rent control. Iqbal Serang remarked that not keeping rental properties accessible would block workforce renters from living in Palo Alto. The three-month benefit was needed for a security deposit, first-month rent, and last-month rent. L. David Baron supported raising the level of income qualification for the relocation benefit and expanding the Ordinance to buildings with less than 50 units. Simone Boswell read from Resolution 9653 and requested the Council support and protect renters by removing the means test and increasing the relocation benefit. Steve Rudinsky requested the Council remove the means test. FINAL MINUTES Page 21 of 24 City Council Meeting Final Minutes: 9/17/18 Herb Borock believed the Ordinance should apply to structures of five units or more and the means test should be removed. Staff should respond to comments made by the attorney for the Hotel President. He questioned whether language of 50 or more rental units referred to a structure with 50 or more units or the number of renters. Jeff Brown commented that Palo Alto could not afford to lose the affordable housing provided by the Hotel President. He asked the Council to delay the eviction of Hotel President residents so that the community could find a solution. Council Member Fine felt the Council erred by imposing a means test. Those impacted by an eviction deserved some type of subsidy. MOTION: Council Member Fine moved, seconded by Council Member Wolbach to adopt, on First Reading, a revised Ordinance (Staff Report, Attachment B) amending Chapter 9.68 (Rental Housing Stabilization) of the Palo Alto Municipal Code to require relocation assistance payments for no-fault evictions for Multifamily Housing Developments containing 50 or more rental units. Council Member Fine requested an explanation of Item 10, no specified cause. Ms. Stump clarified that the first six reasons under Section 9.68.035(b) were considered renter error or poor behavior that would justify a fault eviction. The second sentence in Number 6 should have been placed at the left margin. Cities were required to include Numbers 7-9 as reasons for eviction. Number 10 reflected the current status quo in Palo Alto in that the City did not prohibit evictions with no cause given. Changing the policy would be a significant item, and the Council previously decided not to refer it to committee. Council Member Fine reiterated that Number 10 allowed no-fault evictions for no specified cause. Ms. Stump responded yes. If a landlord with 50 or more units did that, they needed to pay relocation benefits. Council Member Wolbach noted on August 27 a supermajority of the Council supported an Ordinance as proposed in the Motion. He hoped the vote was unanimous in support of the Motion. Council Member DuBois did not believe the Motion was radical as it mirrored actions taken in other communities. The means test meant most renters would not receive a relocation benefit, and he supported removal of the means test. The Ordinance was meant to help all residents faced with eviction. The FINAL MINUTES Page 22 of 24 City Council Meeting Final Minutes: 9/17/18 Ordinance provided a disincentive to remove a large amount of housing from the community. Council Member Holman was pleased with the Motion. She inquired whether the Ordinance should require the landlord to obtain building permits before evicting tenants to renovate the building in an effort to prevent landlords from evicting tenants and not performing the renovations. Ms. Stump related that the Ellis Act allowed jurisdictions with full rent control to enact protective measures to prevent that type of gaming, including requiring right of first refusal at the same rent if the unit was offered for rent within a certain period of time. The City of Palo Alto could not utilize those types of requirements at the current time. Council Member Holman asked if jurisdictions with rent protections could utilize those types of requirements. Ms. Stump indicated jurisdictions must have rent control. Council Member Holman requested the actions that triggered relocation benefits. Ms. Stump explained that Staff added language to clearly state the Council's intention for relocation benefits to apply to any eviction that had not been finalized, meaning the date of eviction had not passed, before the effective date of the Ordinance. The Ordinance defined two stages. Half the payment would be paid at the time the landlord provided a notice of eviction. The remainder would be paid to each tenant when the tenant vacated the unit. Additional payments for tenants over age 60, with disabilities, or having low income were payable at the time of the eviction notice or within 15 days of the landlord receiving notice of the tenant's qualification for the payments. Council Member Holman recalled the City Attorney's comment that the payment was divided so that tenants would have funds to secure another unit. Hopefully, the Council would lower the number of units from 50 to at least 20 at some future time. Council Member Kou indicated Section 1(i) of Attachment B should state "50 or more rental units." Council Member Tanaka requested the City Attorney's opinion regarding application of the Ordinance to residents of the Hotel President. Ms. Stump reported the City Attorney's Office reviewed letters from AJ Capital's attorney and did not believe any issues raised in the letters should FINAL MINUTES Page 23 of 24 City Council Meeting Final Minutes: 9/17/18 prevent the Council from taking action for policy reasons. Case evaluations and legal advice were presented to the Council through confidential memoranda or Closed Sessions. Council Member Tanaka expressed concern about exposing the City to significant legal liability. He inquired whether the Council should hold a Closed Session. Ms. Stump opined that the Ordinance would not expose the City to significant legal liability or any legal liability. The Ordinance would be legal and enforceable. The Ordinance regulated third-party behavior. It did not create an administrative process by which conduct was enforceable before an administrative tribunal operated by the City. The Ordinance would be enforceable elsewhere by others, and disputes could arise around that. Council Member Tanaka suggested the Council should have held a Closed Session to understand the legal arguments of AJ Capital and the City Attorney. The timing and construction of the Ordinance was targeted to the Hotel President as mentioned clearly in the letters from AJ Capital's attorney. He wanted to seek the City Attorney's expert legal advice regarding the significant risks created by adopting the Ordinance. Vice Mayor Filseth called the question. Ms. Stump stated that the Ordinance generally applied to landlords of buildings with 50 or more units. She took issue with the comment that the Ordinance was directed at a particular property. She scheduled Closed Sessions with the Council or submitted confidential legal advice when she believed they were warranted. The Ordinance was lawful and did not place the City in legal jeopardy. She could provide detailed follow-up to the Council but not during an Open Session. Council Member Tanaka felt it would be a good for the City Attorney to provide an analysis in a Closed Session or offline. He inquired whether the City Attorney was suggesting the Council delay the item until it received a memorandum. Council Member Wolbach advised that the Council received the referenced letter three weeks prior to the meeting. Council Members had ample opportunity to discuss the letter with the City Attorney in a private setting during the prior three weeks. As stated by the City Attorney, the Ordinance was a policy matter directed at a class of properties. It did not apply to any particular property. The Ordinance would apply to a number of properties in Palo Alto. FINAL MINUTES Page 24 of 24 City Council Meeting Final Minutes: 9/17/18 Mayor Kniss believed the Council was flirting with rent control by adopting the Ordinance. She did not support rent control. She anticipated the issues would be raised in some other form at a later time. MOTION PASSED: 8-1 Tanaka no State/Federal Legislation Update/Action None. Council Member Questions, Comments and Announcements Vice Mayor Filseth attended financial sessions during the California League of Cities meeting, where he learned that the California Public Employees Retirement System's (CalPERS) rates were expected to continue to increase. Council Member Holman reported neighborhood events over the weekend were successful and well-attended. She suggested bookmarks for the anti- idling Ordinance be distributed to Downtown and California Avenue shopping areas. Council Member Fine attended a Caltrain webinar regarding Caltrain's business plan. Council Member Wolbach indicated he voted as directed during the California League of Cities meeting. While there, he spoke with the City's lobbyist regarding the Council engaging with the lobbyist about grade separations. The City may need to send a letter to Caltrain to request clarification of the external constraints that would influence the Council's decisions. Caltrain staff had offered to attend a Rail Committee meeting to discuss the business plan and grade separations. Mayor Kniss advised that the Bay Area Air Quality Management District held a kickoff event for the goal of being diesel free by 2033. She suggested the anti-idling Ordinance bookmark be translated into Mandarin. James Keene, City Manager, reported the Mayor signed a letter to the Federal Communications Commission (FCC) opposing changes to local authority over review, timelines, and fees for small cell antenna installations and requesting a continuance until January. Mayor Kniss added that the Mayor of Heidelberg visited Palo Alto on his way to the Global Climate Action Summit. Adjournment: The meeting was adjourned at 11:09 P.M.