HomeMy WebLinkAbout1994-11-14 City Council Summary Minutes
Regular Meeting November 14, 1994 1. Webelos Scouts of Den 7 of Stanford District's Pack 14 - Flag Ceremony ....................................... 74-95 2. Resolutions of Appreciation to the Centennial Committee 74-95 ORAL COMMUNICATIONS ......................................... 74-99 3. Resolution 7412 entitled "Resolution of the Council of the City of Palo Alto in Support of the San Francisquito Creek Watershed Coordinated Resources Management and Planning Process ....................... 74-100 4. Ordinance 4244 entitled "Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1994-95 to Provide an Additional Appropriation to the Arts and Culture Division's Visual Arts Program to Receive Matching Grant Funds From the Arts Council of Santa Clara County .................... 74-100 5. Ordinance 4245 entitled "Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1994-95 to Provide an Additional Appropriation to the Arts and Culture Division's Visual Arts Program to Receive Fee Deposits for a Traveling Art Exhibition ........................................ 74-100 6. Conference with City Attorney--Existing Litigation .... 74-100 7. Planning Commission recommends to the City Council to accept the Draft Santa Clara County General Plan and forward Planning Commission comments to the Santa Clara County Planning Commission (continued from 10/17/94) ............................................. 74-100 8. Recommendation from Ad Hoc Committee on Proposals for Williams Property Option to Lease ................. 74-104 9. Resolution Approving and Adopting Changes in the City of Palo Alto's Restricted Parking Zones ............... 74-113 10. Ordinance Amending Various Sections of Chapter 16.09 (The Sewer Use Ordinance) of the Palo Alto Municipal Code .................................................. 74-121
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11. Contract between the City of Palo Alto and John J. Shooter Inc. for Cubberley Community Center Landscaping Maintenance ............................... 74-127 12. Consultant Agreement between the City of Palo Alto and Angus McDonald and Associates for Computer Programming Services for University Avenue and California Avenue Parking Assessments ................................... 74-127 13. Palo Alto Community Child Care Operational and Financial Status Report ............................... 74-128 14. Subleases and Reduced Rental Rate Structure for Dance Space (L-Wing) at Cubberley Center .................. 74-128 15. Council Comments, Questions, and Announcements ........ 74-131 ADJOURNMENT: The meeting adjourned at 11:32 p.m. .......... 74-131
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The City Council of the City of Palo Alto met on this date in the Council Chambers at 7:12 p.m. PRESENT: Andersen, Fazzino (arrived at 7:13 p.m.), Huber, Kniss, McCown, Rosenbaum, Schneider, Simitian, Wheeler SPECIAL ORDERS OF THE DAY 1. Webelos Scouts of Den 7 of Stanford District's Pack 14 - Flag Ceremony Webelos Scouts of Den 7 of Stanford District's Pack 14 held a salute to the flag. No action required. 2. Resolutions of Appreciation to the Centennial Committee Mayor Kniss said Former Mayor Gail Woolley began the process in 1987. The Centennial year had been an enormously successful endeavor, and it had added more than $0.5 million to the Palo Alto Fund. In addition, the number of people who had given a tremen-dous amount of volunteer hours should be commended. The sense of renewal that came from the Centennial was wonderful to observe in the community. The Centennial had left the community feeling good about itself and feeling good about the future. MOTION: Council Member Fazzino moved, seconded by Schneider, to adopt the Resolutions. Resolution 7370 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Mark Bowers for Outstanding Public Service During Palo Alto's Centennial 1994" Resolution 7371 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Susan Carmichael for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7372 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Ray Chun for Outstanding Public Service During Palo Alto's Centennial 1994" Resolution 7373 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Mary Davey for Outstanding Public Service as Palo Alto Centennial 1994 Executive Director" Resolution 7374 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Diana Diamond for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors"
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Resolution 7375 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Leonard Ely for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7376 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Debbie Ford-Scriba for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7377 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Barbara Foster for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7378 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Susan Frank for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7379 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Bill Green for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7380 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Carroll Harrington for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7381 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Alan Henderson for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7382 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Gloria Hom for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7383 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Ginger Johnson for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7384 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to John Ivey for Outstanding Public Service During Palo Alto's Centennial 1994" Resolution 7385 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Trish Johnson for Outstanding Public Service as Palo Alto Centennial 1994 Product Co-Chair" Resolution 7386 entitled "Resolution of the Council of the
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City of Palo Alto Expressing Appreciation to Holly Kaslewicz for Outstanding Public Service as Palo Alto Centennial 1994 Writer, Organizer, and Public Relations Support Person" Resolution 7387 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Larry Klein for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7388 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Liza Kniss for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7389 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Frank Lopez for Outstanding Public Service as Palo Alto Centennial 1994 Events Producer and Organizer" Resolution 7390 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Eleanor Lynch for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7391 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Orlando Maione for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7392 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Beth Bening Martin for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7393 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Dawn Miller for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7394 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to John Northway for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7395 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Steve Player for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7396 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Marlene Prendergast for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7397 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Liz Raffel for
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Outstanding Public Service as Palo Alto Centennial 1994 Product Co-Chair" Resolution 7398 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Bill Reller for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7399 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Susie Richardson for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7400 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Linda Ridder for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7401 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Carina Rotsztain for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7402 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Gail Schubert for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7403 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Joel Spolin for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7404 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Maddy Stein for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7405 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Susan Sweeney for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7406 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Kathy Torgersen for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7407 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to David Von Kohorn for Outstanding Public Service as Palo Alto 1994 Centennial Wall General Signmaker Extraordinaire" Resolution 7408 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Bill Waters for Outstanding Public Service as a Member of the Palo Alto
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Centennial 1994 Board of Directors" Resolution 7409 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to James Witt for Outstanding Public Service as Palo Alto 1994 Centennial Wall General Contractor Extraordinaire" Resolution 7410 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Marcus Wood for Outstanding Public Service as a Member of the Palo Alto Centennial 1994 Board of Directors" Resolution 7411 entitled "Resolution of the Council of the City of Palo Alto Expressing Appreciation to Gail Woolley for Outstanding Public Service as a Member of Palo Alto the Centennial 1994 Board of Directors" MOTION PASSED 9-0. Mary Davey, Executive Director, Centennial Committee, thanked the City Council for its support during the year, the Board of Directors, the volunteers, Yvonne Selner, Susie Thom, and the community of Palo Alto. Larry Klein, Chairperson, Centennial Committee, said the time capsule was buried at the northwest corner of City Hall Plaza in the elevator shaft to the garage that was never used. He thanked Executive Director Mary Davey who did a superb job. The effort done by the people who made the Centennial successful was tremen-dous. The 2,000 volunteers translated into over 200,000 volunteer hours. He thanked the people of the City of Palo Alto for their contribution to the Centennial spirit and support which made the Centennial possible. The City of Palo Alto was a success, and the community worked together which was what the Centennial was all about. ORAL COMMUNICATIONS Geoff Thompson, 416 Oxford Avenue, spoke regarding utility outages. City Manager June Fleming explained the situation with respect to the utility outage and indicated that both Pacific Bell and Metropolitan Fiber Systems of California, Inc. were made aware of the need to notify the City should any disruption in service occur. Council Member Andersen said the City's Emergency Plan should address issues such as the utility outage. Claudio Martinez, P.O. Box 273, Palo Alto, spoke regarding bones and tools of early man found in Palo Alto, artwork of May Shockley, diamond finds, and Ohlone finds in the San Francisquito Creek. Edmund Power, 2254 Dartmouth Street, spoke regarding secret
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government (letter on file in the City Clerk's Office). APPROVAL OF MINUTES OF OCTOBER 3, 1994 MOTION: Vice Mayor Simitian moved, seconded by Fazzino, to approve the Minutes of October 3, 1994, as submitted. MOTION PASSED 9-0. CONSENT CALENDAR MOTION: Council Member Andersen moved, seconded by Wheeler, to approve Consent Calendar Item Nos. 3 - 5. 3. Resolution 7412 entitled "Resolution of the Council of the City of Palo Alto in Support of the San Francisquito Creek Watershed Coordinated Resources Management and Planning Process" 4. Ordinance 4244 entitled "Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1994-95 to Provide an Additional Appropriation to the Arts and Culture Division's Visual Arts Program to Receive Matching Grant Funds From the Arts Council of Santa Clara County" 5. Ordinance 4245 entitled "Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1994-95 to Provide an Additional Appropriation to the Arts and Culture Division's Visual Arts Program to Receive Fee Deposits for a Traveling Art Exhibition" MOTION PASSED 9-0. CLOSED SESSION The item may occur during the recess or after the Regular Meeting. 6. Conference with City Attorney--Existing Litigation Subject: Baratte v. City of Palo Alto, et al., SCC#CV744130
Authority: Government Code ∋54956.9(a). Public Comments None. UNFINISHED BUSINESS 7. Planning Commission recommends to the City Council to accept the Draft Santa Clara County General Plan and forward Plan-ning Commission comments to the Santa Clara County Planning Commission (continued from 10/17/94) Director of Planning and Community Environment Ken Schreiber said the Planning Commission recommended a change to the Santa Clara County (the County) draft General Plan on page 89 of Book B, a
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policy that related to Stanford University lands. There was amended wording suggested by Senior Assistant City Attorney Sue Case. The Planning Commission discussed but made no recommenda-tion on the Plan's recommendations for pursuit of some type of revenue sharing concept in conjunction with development of land use in the County and to encourage the identification of a countywide planning organization that would have responsibility for development of a county plan that would also tie into a recommended state planning program. There were concerns raised by members of the Planning Commission regarding potential impact of those items, but no recommendations were made. Herb Borock had indicated concern about a map on page 89, Book B, of the draft Plan. Staff had identified three changes on the map that should be shown as part of the City of Palo Alto: 1) the former D. C. Powers Lab site on Arastradero Road was 77 acres, and a Planned Community zone which was presently vacant and had no development potential under that zone; 2) next to that site was a small parcel shown in the City of Palo Alto that should be shown as academic reserve and open space and not in Palo Alto; and 3) the map showed that academic reserve and open space as distinguished from campus designation stopped at a point along El Camino Real. After reviewing the land use agreements with the County and Stanford University, the small area should be identified as academic reserve and open space outside of the urban service area and not identified in the County and the City policies for future urban development. Staff recommended incorporation of the Planning Commission recommendations with those changes as well as a correction of the map on page 89. Council Member Andersen said page A-62 and A-63 mentioned transportation issues regarding air carriers and airports and that there would be a study done in the near future to develop a countywide airport master plan which would be different from the individual planning effort that had been done with regard to airport use policies. He asked how the master plan would be developed, and what the extent was of the City's input. He was concerned, given the acknowledgment that there was considerable traffic increase in the international airport which needed to be diverted, about the implications for the Palo Alto Airport. He asked whether the Baylands issues would be respected and whether there was certainty that the expansion would not be any larger than its current capacity. Mr. Schreiber said the City of Palo Alto had an ongoing working relationship with the County as the owner of the land, and the lease between the City and the County contained a provision regarding any type of second runway or significant expansion of the capacity of the airport that required City preapproval for any request by the County for federal funding. Council Member Andersen said the language suggested there might be a need for another airport, and he was concerned about the location. Owen Byrd, Policy Director, Greenbelt Alliance, 173 Waverley Street, said Greenbelt Alliance had worked closely with County and
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planning staff in the development of the new County Plan for over three years. He encouraged the Council to support the Plan which would keep jobs in the City by protecting the quality of life and attracting and retaining employees and employers, would keep public costs to city and county services in check by curbing expensive sprawl, would reduce air pollution and contamination of ground water and the Bay, would make roadways less congested and public transit more efficient, would provide better housing that was more affordable and accessible, would protect the natural heritage of watersheds, wetlands, streams, and creeks, and would arrange cooperative joint agreements between cities and the County to protect hillsides, farmlands, and other open spaces that would define a distinct boundary between urban and rural areas. Green-belt Alliance supported the Plan because the boundary between city and rural was central to the plan. The core concept of the Plan was the city/center growth. Greenbelt Alliance asked the Council to encourage the County: 1) to give more explicit definition to low intensity and density as the requirement for hillside development, 2) to dedicate adequate resources to implement the Plan, 3) to have a tighter definition of what was "substantially" consistent with the Plan as the County considered general plan amendments; and 4) to communicate the City's willingness to explore joint agreements among other cities in the West County with the County to protect critical resource areas that no jurisdictions wanted to see developed. Council Member McCown asked where in the current document was the language that defined the County's intent regarding the issue of low intensity development of hillsides. Mr. Byrd said the language was in the Natural Resources section. Herb Borock, 2731 Byron Street, referred to the map on page B-89 and the area that had been annexed to the City for over 35 years. In addition to being shown outside the County land use map, it had to be corrected on the Stanford's general use permit and also on the land use policy agreement with Stanford. Resolution 5967, an amendment to the Palo Alto land use map, showed the best defini-tion of the area shown along El Camino Real between Sarah Street and Stanford Avenue. At that time, the area along El Camino Real between Galvez and Sarah Street was extended deeper, also the area to and along Stanford Avenue was added. He believed the item that annexed the City currently had an illegal commercial operation on it and had a history of being used for grazing and a stable operation along with the small area of County land that was not in Stanford. He had sent a letter to the Council about rezoning the parcel to open space (OS), and he hoped the Council would consider initiation of the rezoning to OS as soon as possible. The Ordinance Compliance Inspector sent a letter to Stanford regarding the stable operation in 1988. The operator should be required to abide by proper zoning, and the rezoning of the parcel to OS would begin the process to correct the situation. MOTION: Council Member Andersen moved, seconded by Fazzino, to approve the Planning Commission recommendation that one policy/ implementation measure relating to Stanford University be revised.
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Policy U-ST-3, page 89 of Book 2, should be revised to add the word "academic" at the beginning of the sentence. Further, that the County be urged to carefully consider the recommendations of the Greenbelt Alliance. Council Member McCown referred to B-88 and the sidebar section in the document that described the interjurisdictional agreements among the City/County/Stanford, and U-ST-1 which stated "the use of Stanford's lands in the unincorporated area of Santa Clara County shall be consistent with 1) the County General Plan, 2) the County's zoning ordinance, 3) a conditional use permit known as the Stanford General Use Permit, and 4) other use permits and approvals as required." She asked whether it would be appropriate to suggest that a fifth item of consistency should be added as a reference to the interjurisdictional agreements that existed among the City/County/Stanford. Mr. Schreiber said it could be added, but he was uncertain whether it would do any good in terms of substance; but it was relevant in terms of process. The land use agreements among the City/County/Stanford referenced adopted City and County documents. The County documents for unincorporated land prevailed, but the review processes identified in the land use agreements should also apply to development in the County. It would be the major addition by adding the land use agreement. Council Member McCown referred to B-90 and the policy listed as U-ST-9 stated that "other nonacademic uses of University land should be subject in appropriate cases to City annexation." The interjurisdictional agreements recognized that there were specific agreements among Stanford University, the City, and the County as to what should be made subject to annexation. Policy U-ST-9 should reference that nonacademic uses of Stanford land should be subject in appropriate cases to City annexation pursuant to the interjurisdictional agreements among City/County/Stanford. The County did a good job of describing the character of the agree-ments which was the most significant piece to the City with respect to County land. A more explicit acknowledgment of the force of the agreements should be in the two policies. The map changes noted by Mr. Schreiber should be reflected by the County. She supported the comments made by Mr. Byrd, but she found it difficult to understand the depth and background well enough to know whether more definition was necessary as suggested by the Greenbelt Alliance. She supported the general principles articulated but did not know if the language in the document with respect to low intensity hillsides were sufficient or whether the Greenbelt Alliance's comments were correct. She was reluctant to take a firm position on behalf of the City urging the County to change the Plan in that respect. Council Member Andersen said the motion's intent was not to absolutely support the comments made by Greenbelt Alliance but to make certain the comments were articulated and given consider-ation. Mr. Schreiber clarified the letter to the County would urge careful consideration of the comments provided by the Greenbelt
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Alliance. MAKER AND SECONDER AGREED TO INCORPORATE INTO THE MOTION that appropriate map changes reflect that policies U-ST-1 and U-ST-9 be amended to add a reference to the City/County/Stanford Land Use Agreement. Mayor Kniss referred to page 6 of the Planning Commission's minutes dated September 28, 1994, and asked for an explanation regarding Stanford hospital and the ownership of the land it was located on. Mr. Schreiber said the Medical Center complex consisted of the Stanford University Medical School, the hospital, and the Lucile Packard Children's Hospital. The Medical School was located in the unincorporated area of Santa Clara County and outside the jurisdiction of the City of Palo Alto. The University hospital and the Children's Hospital were located within the City and subject to City zoning. The question for Stanford in terms of its planning for the hospital was where the hospital expansion should take place. The problem was that the land within the City had a public facility designation and was zoned and developed at a 1.0 Floor Area Ratio (FAR). The issue presented to the Comprehensive Plan Advisory Committee (CPAC) was whether or not the City should be receptive to additional expansion of the hospital within the City which meant a more intense zoning issue or whether Stanford should seek expansion of the hospital in the unincorporated area of the County. Stanford would prefer the expansion within the City. He reminded the Council that the City's jurisdictional line divided the complex between the unincorporated area and City of Palo Alto development. Council Member McCown said as indicated by Council Member Andersen, general support of the suggestions of the Greenbelt Alliance was the right level of comment for the City. She said the City of San Jose had written a detailed letter to the County that had many specific comments supportive of the Greenbelt Alliance's suggestions. The City of San Jose was an expert in that area since it had many miles that bordered the County with respect to the east side of the valley and the development issues there. She was delighted that other cities with a more central concern on the issue were able to make specific recommendations. MOTION PASSED 9-0. REPORTS OF COMMITTEES AND COMMISSIONS 8. Recommendation from Ad Hoc Committee on Proposals for Williams Property Option to Lease Council Member McCown emphasized a sentence in the Ad Hoc Committee's memorandum that stated "We believe that the community would be served well by either proposer, and it was a close call to recommend one over the other." It was a difficult recommenda-tion to make because one group of excellent community members in an excellent community organization would be disappointed. The
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single most significant factor that tipped the balance in favor of the recommendation for the Museum of American Heritage (MAH) was its proposed use of the house. The house would be made accessible to the community and be used in a way that would give the community the opportunity to experience the house. Both proposers anticipated that the necessary improvements would be carried out substantially by volunteers, that fund-raising would be done specifically to generate the money necessary to perform the physical improvements, and that the City would be the applicant for Santa Clara County historical funds. Both proposers hoped that the fund-raising would be substantially assisted by the grant. The Ad Hoc Committee met with a group from each organiza-tion, and the enthusiasm each of them had for the project was contagious and exciting. Council Member Wheeler concurred with the remarks of Council Member McCown. She said there was one factor that weighed very strongly in favor of awarding the option to lease to the MAH. It was obvious that both of the groups had spent a great deal of time between the time they submitted the first proposal to the Council and the time they actually met with the Ad Hoc Committee. A great deal of thought was given as to how the intended programs would be carried out in the house and property. The Council's long history with the project had failed to come to fruition because applicants had an obvious need to find a location for their programs and facilities. Most of the potential users had looked at the property and tried to make the property fit their programmatic needs. She felt that the representatives of the MAH thought through how the Museum would work in the house, looked at the house and the facilities, and tried to determine how and if they could adjust the programs to do justice to the house and the surrounding gardens. That was the one compelling difference between that application and any other application the Council had received for the property. Council Member Andersen echoed the comments of Council Members McCown and Wheeler. He felt the process was an appropriate way to evaluate the two applications, and it gave both applicants the time to prepare a package that responded to the Council's com-ments. He was also impressed by the level of detail. There was concern expressed about whether or not there might be a seismic upgrade issue, and the process allowed staff an opportunity to make a more careful assessment of that issue. He was persuaded that the public benefit had a broader base with the proposal by the MAH. The house would become a historical fixture, and the artifacts stored there would compliment it. The number of children and adults who would use the facility was also persuasive which was totally consistent with the intent and the wishes of Rhona Williams. Robert Mason, 668 Ramona Street, said the Pacific Art League of Palo Alto (the League) was disappointed, but it was a close call. The negative listed against the League was that it planned to use the doctor's office as a residence for the overseer. The League was not necessarily wedded to that concept. The person selected as the overseer had already expressed a preference for residing on
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the second floor which left other options for the former doctor's office. The space could be rented to an artist who desired to have the public circulate through his/her studio. The rent for that portion of the building could be waived entirely, and the doctor's office could be restored to its original condition. The office could be used as a permanent display of the artwork of the founders who were contemporaries of Dr. Williams. He cited the founders of the League. The League's facilities had always experienced a high degree of public use that was active and participatory. The Williams sisters were part of the League's history. The League was confident that it was the type of cultural organization that Rhona Williams had in mind when she specified cultural or park use in her will. Bonnie Tomek, 425 Claremont Way, Menlo Park, urged the Council to vote in favor of the Pacific Art League as a recipient of the Williams Property for its continuing contribution to the cultural interests of the City. She had been involved with the League since 1975. She felt the League would be the ideal resident for the Williams Property because it was a valuable community cultural asset that served a variety of enhancements; it offered classes, guest lectures, scholarships, and special events to a wide age range; it provided many institutions with monthly art exhibits; it served neighboring communities; and there was an art gallery on the premises which attracted many visitors and students each day. The League had generated revenues for its operation without relying on gifts and grants. It had secured interested parties to participate in the historical renovation of the home and garden. The work would be done with the League's own resources and the assistance of professional fund-raising grants. The League was in a good position to maintain the property based on its past record of generating revenues and maintaining its current location. The promise of a person in attendance full time was also an important factor in caring for the property. The use of the Williams Property would provide the League with the opportunity to serve even more citizens of Palo Alto and its neighbors by expanding its facilities for new courses. The house could be used for various activities, events, and fund-raisers by other organizations, individuals, or corporations. The garden would benefit the art students as well as school children and visiting adults. The concern of the League was to provide cultural activities to the community and preserve the house as a historical asset. Nancy Reames, Office Manager, Pacific Art League, 2185 Shiloh Avenue, Milpitas, read the names of the people who supported the League but could not attend the Council meeting that evening. Linda Corbett, 619 Emerson Street, felt that the people from the League were the only people who had tried to really find out about the Williams Property. The home did not look the way the histori-cal society wanted it to look. The doctor's office had been used for storage for a number of years. The historical society wanted to restore the office, but the tools would not be Dr. Williams' tools. The home was not decorated in a luxurious way. The gardens were important to the sisters. She questioned whether the will was being supported and that what the sisters had to share
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with the community would really be shared. The League wanted to show how the sisters lived and that they believed in the League. The League carried on that tradition. Roberta Roth-Patterson, President, Pacific Art League, 668 Ramona Avenue, said it was joy for her to be able to teach the figure drawing class at the League. History was not put on a shelf at the League--it was lived and created. Artists saw themselves as visual historians. The artists understood history and learned from looking to the past. They knew that Rhona Williams wanted Palo Alto to convert her home to a cultural oasis. The League believed it was the past, present, and future of the arts in Palo Alto. The League was a continuing part of the community and helped the economic base. It made historic and economic sense to award the lease to the League. Claudio Martinez, P. O. Box 273, Palo Alto, said he had applied for the caretaker position at the Williams House. He suggested the house be used as a recreational place for kids or teen use. Crystal Gamage, President, Palo Alto Historical Association, 1568 Channing Avenue, said the Palo Alto Historical Association (PAHA) had been working with the MAH for 10 months and would reactivate its liaison committee with the Museum. She said an important element of the report was the statement that the house would be preserved as a historical asset which carried out the spirit of the will. She assured the League that it would not be lost in the historic archives of Palo Alto. She urged the Council to support the recommendation of the Ad Hoc Committee. Carl Moerdyke, Chairman of the Board, Museum of American Heritage, 702 Nash Avenue, Menlo Park, said MAH was not a static museum that just displayed items on a shelf but was an active participant in the community and in the culture of Palo Alto. Classes, lectures, and seminars were held, and there were plans to expand the participation of the public in the MAH's activities. MAH also planned to expand its association with the PAHA as well as other historical preservation groups. He thanked the Council for the opportunity and its consideration. Council Member Rosenbaum said previously he had some concern about MAH's request for significant amounts of money from the City to bring the building up to code. He said a letter from MAH indicated it had changed its view. He understood that MAH would like the City to participate but was now willing to undertake the project with its own resources. Mr. Moerdyke clarified that MAH still expected the City to participate to the extent that funds were available from private foundations for the renovation work. He stated at the Committee meeting that if the City did not participate financially, MAH would take on the responsibility. MAH expected the City to actively pursue the funds. Council Member Rosenbaum clarified the funds would be pursued through a Santa Clara County grant.
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Mr. Moerdyke said that was correct. Council Member Rosenbaum asked whether MAH was asking the City to participate beyond the grant funds. Mr. Moerdyke said no. MAH was not asking the City to participate financially with the exception of some allowance on the planning and building inspection permits. Mayor Kniss said the report from the Ad Hoc Committee mentioned the gardens and stated that while the League had a particularly precise proposal, the Museum did not. The report stated the MAH would be asked to have a team in place to deal with the garden as a condition of awarding the option to lease. She asked whether someone could speak about the plan for the garden area that eve-ning. Mr. Moerdyke said volunteers had expressed interest in chairing the committee for the design of the gardens. He had discussed the garden with a number of nursery and landscape personnel. He hoped to obtain volunteer labor and materials. A design for the gardens had not been prepared. MAH believed it would be appropriate to address that issue at the time it was awarded the option to lease. MAH intended to renovate the gardens and bring the gardens back to their historical significant condition. Council Member Huber clarified that MAH had asked that the City participate to some extent in permit fees. He said the Ad Hoc Committee recommended that the City not waive the fees. Mr. Moerdyke said the Ad Hoc Committee's recommendation was acceptable. MAH had only asked that it be considered. Council Member Huber clarified that the MAH had indicated it would not ask anything from the City with the exception of the funds that the City could apply for on behalf of the structure, but there was the issue of the foundation. He asked what the MAH contemplated as the City's role in that area. Mr. Moerdyke said the contractor who inspected the house for MAH expressed reservation regarding the condition of the foundation. The MAH had asked the City to determine whether or not there was a foundation problem in the house and, if so, what the extent of the problem was. There would be cause for concern if the entire foundation had to be replaced which would be an additional financial burden that had not been disclosed or discovered. The MAH wanted to know what its responsibilities would be in that situation. Council Member Andersen said the League's preparation for the garden was better than MAH's proposal. Extraordinary effort had been done in that area, and he encouraged the MAH to work with the people involved with that proposal. Mr. Moerdyke said he would be happy to collaborate with the people
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involved. Council Member Huber said the Ad Hoc Committee's report left the issue of the foundation open for Council consideration. He asked what the City might have to do beyond the current estimates. Senior Financial Analyst Janet Freeland said staff was not aware that the foundation was in a condition that would cause it to be replaced. A structural engineer would have to investigate the foundation to determine the exact condition. Council Member Huber asked how major expenses would be handled during the lease period. Ms. Freeland said when an option to lease was granted, it would be the responsibility of the tenant to have someone look at the foundation and design what improvements needed to be done. The Building Department had only required minimal improvements to the structure based on the historic building code. If more improve-ments were required because of a structural weakness, it would have to be determined by a structural investigation. Council Member Huber asked whether the use of the structure as a museum or for the League changed the seismic requirements from a residence. Ms. Freeland said no. Any nonresidential use would have the same seismic requirements. Council Member McCown clarified the Council would award an option to lease that evening, and there was a two-year period before the final option requirements had to be met and the lease was actually executed. Ms. Freeland said that was correct. Council Member McCown asked how the issue of structural improve-ment to the foundation would be addressed during the option period. She understood the City did not require anything addi-tional. She asked whether that meant the tenant did not have to inspect the foundation or whether the option required the tenant to evaluate whether something had to be done with the foundation. Ms. Freeland said the option to lease would return to the Council. Staff would negotiate the terms of the option with the selected proposer. The issue would be addressed at that time. Council Member McCown asked whether there was City staff that had the engineering capability to assist the proposer in evaluating the issue of the foundation. Ms. Freeland said the tenant's plans would have to be accepted by the Building Department and would have to include an investigation by a structural engineer. The Building Department did not have that expertise.
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Council Member McCown clarified the City did not have a structural engineer that could evaluate whether there was a foundation issue. Ms. Freeland said that was correct. Council Member McCown said the issue would be the same for either proposer. The MAH's contractor had raised the concern. The issue needed to be discussed with the City during the course of negoti-ating the terms of the option. MOTION: Council Member McCown moved, seconded by Andersen, to approve the recommendation from the Ad Hoc Committee that the option to lease be awarded to the Museum of American Heritage. Mayor Kniss asked whether Council Member McCown would be willing to incorporate into the motion the suggestion in the report regarding the garden, i.e., that a team would need to be in place as a condition of awarding the option. She presumed that sugges-tion addressed specifically the professional design of the garden. Council Member McCown said the intent was that the MAH, as a condition of the option, would need to identify the overall design team of the whole project, not just the garden. MAKER AND SECONDER AGREED TO INCORPORATE INTO THE MOTION that the Museum of American Heritage, as a condition of the option to lease, would identify the overall design team of the whole project, not just the garden. Council Member Rosenbaum recalled that the Children's Theatre asked to have the permit fees waived when it began its improve-ments. The Council agreed to waive the fees after a lengthy discussion but also decided to establish a policy that would apply in the future. He asked how the policy applied to the present situation. Director of Finance Emily Harrison said the policy on the waiver of fees applied to a building that would be returned to the City in terms of ownership such as the Children's Theatre. Council Member Rosenbaum asked whether the City owned the building and would continue to maintain its ownership. Ms. Harrison said it might be appropriate for the Council to entertain a request to waive fees in conjunction with that policy. Council Member McCown clarified the Ad Hoc Committee understood the policy differently, e.g., it was not just the City's ownership but whether the City was the active user of the facility. The Children's Theatre was an actively operated City structure even after the private improvements were completed. The Williams Property was similar to the Gamble Gardens which was owned by the City but someone else was given a 30-year lease to use the facility. She understood the policy was different in that distinction.
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Mayor Kniss asked the terms within the lease of the Gamble Gardens with respect to the maintenance, etc. Real Property Manager William Fellman said the tenant of Gamble Gardens was responsible for the maintenance. Mayor Kniss asked what insurance the City had that the property would be maintained in good order. Mr. Fellman said the City staff did an annual review of City leased properties. Mayor Kniss asked what recourse was taken if the property were not up to the standards stipulated in the lease. Mr. Fellman said there was a clause in the lease, and it would jeopardize a tenant's leasehold interest in the property. Mayor Kniss clarified the same safeguards would be woven into the Williams Property lease. Mr. Fellman said that was correct. Council Member Fazzino asked how the Senior Center was treated with respect to the waiver of fees. Mr. Fellman said the Senior Center would be obligated to pay the fees. Council Member Fazzino clarified the policy would apply even though there were City-subsidized programs that took place at the Senior Center. Mr. Fellman said that was correct. The same policy applied to the artists and the other leasehold interests at Cubberley Community Center. Council Member Fazzino asked how the Children's Theatre was differentiated from the other facilities. Mr. Fellman said the Children's Theatre was returned to the City after the improvements were completed. The only reason the Children's Theatre group had the leasehold interest was to do the improvements. Council Member Fazzino clarified there were City funded programs at both the Children' Theatre and the Senior Center. City Manager June Fleming said that was true, but the City totally operated the Children's Theatre. The only reason the City went through the lease arrangement was because of the legal manipula-tions that occurred. They needed to own the property to make the improvements. It was a formality. The City owned, operated, and maintained the Children's Theatre. Council Member Fazzino said it was a policy issue that the Council
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needed to revisit. City Attorney Ariel Calonne said the Council policy that grew out of the Children's Theatre might or might not apply to the present circumstances. Staff would be in a position to include that policy if appropriate in negotiations on the option. Council did not need to resolve the issue that evening. Council Member Fazzino asked the cost for the permit fees. Ms. Freeland said approximately $5,000. Council Member Andersen wanted the foundation issue returned to the Council for further discussion if there were serious expenditures regarding the foundation which would jeopardize the effort of the applicant. Council Member Huber said most of the MAH would be located near a residential area. He reminded staff to consider during the negotiation of the lease terms that there might be situations that needed different controls, e.g., no late night events. He supported the motion and congratulated the Ad Hoc Committee on its excellent work. Both of the proposers were excellent and well suited to the house. He believed the Committee's emphasis on greater use plus preservation of the two areas was appropriate. The proposed museum use was an excellent choice and would be of considerable benefit to the entire community. Council Member Schneider said both of the proposers were highly respected organizations in the community. She was persuaded that the MAH would offer greater accessibility to the community. She was concerned that the League had proposed to refinance its existing building in order to raise funds to move into the Williams Property. Interest rates and higher payments could jeopardize the existing space. She was also persuaded to support the MAH because the League already had a beautiful home. The MAH was without a permanent facility, and the loss of the MAH to the community would be significant. She supported the Ad Hoc Committee's proposal. Council Member Fazzino said both proposals were outstanding, and it was a difficult call. Either of the proposals would have been selected if they would have come before the Council at the outset of the process without the other one. It was unfortunate that the Council had gone through two or three years of discussion and process to make a decision. Both proposals met the criteria for a wonderful cultural and historic facility. Both proposers did their homework in terms of identifying ways in which to enhance the renovation of the facility and the use of the facility by the public which made the decision difficult. He felt comfortable about the MAH's proposal for the interior of the structure but felt better about the League's proposal with respect to the gardens. He appreciated the League's suggestions regarding the gardens. From the outset of the process, he had always been interested in the idea of a historic center in Downtown Palo Alto. He was particularly pleased that the MAH had joined together with
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the PAHA to provide a historic center in the Downtown area for the community. He wanted assurance that there would be negotiations over the issue of the gardens and wanted the issue addressed satisfactorily by the MAH before the final option to lease was approved. He asked when the Council would know if the successful applicant were not able to raise the resources necessary to make their proposal a reality. Ms. Freeland said the applicant had up to two years to meet the conditions of the option. One condition of the lease was to have the necessary funds in place for the improvements and their approvals. Council Member Fazzino said that was the contractual obligation. He asked whether there was a time frame when the staff would meet with the successful applicant to determine whether or not suffi-cient progress had been made and then report back to the Council. Ms. Fleming said it was difficult to know the schedule of the suc-cessful applicant. It was a two-year project, and if efforts had not been done after one year, staff would return to the Council with its concerns. Council Member Fazzino had difficulty with the decision but supported the Ad Hoc Committee's recommendation. Mayor Kniss said the decision had been difficult. Both applicants put forth excellent proposals and were very worthy groups. The Ad Hoc Committee pointed out the areas of greatest concern. She supported the Ad Hoc Committee's recommendation. MOTION PASSED 9-0. RECESS TO CLOSED SESSION: 9:22 P.M. - 9:36 P.M. The City Council met in Closed Session to discuss a matter involving existing litigation as described in Agenda Item No. 6. Mayor Kniss announced the City Council voted unanimously to authorize the City Attorney to defend and indemnify the City employee named in the lawsuit. RESOLUTIONS 9. Resolution Approving and Adopting Changes in the City of Palo Alto's Restricted Parking Zones Assistant Police Chief Lynne Johnson said the Resolution would restrict parking and divide the Downtown area into four parking zones. The anti-sleeper parking program was one element of the Comprehensive Parking Plan that the City staff and the Palo Alto Chamber of Commerce (the Chamber) had been working on for approx-imately two years. She presented examples of the colors and parking signs that would be used. She said the overriding issue that was addressed during the discussions was how to get the attention of the people who used the Downtown parking areas.
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People often did not pay attention or obey the traditional traffic control and parking indication signs because they blended in with the area. The use of colored signs would stand out more from the other signs. In order to address the problem that some people had with differentiating colors, the name of the color was also written on the sign. The Chamber and the staff had been working on the educational aspect of the program that would occur pending approval by the Council of the Resolution and prior to any actual enforcement. Upon approval, staff would return to the Council in several weeks with a Budget Amendment Ordinance that would be used to cover costs associated with the public relations campaign and the design and printing of a user friendly brochure. The brochure would be an easily understood explanation of the program and its implementation and would include alternatives for other parking facilities in the Downtown area. Council Member Fazzino asked whether any other dramatic approaches to introduce people to the concept of the sleeper parking resolu-tion were considered to give them a clearer understanding of what zone they were parked in, e.g., a gateway approach. He asked whether the signs would adequately inform people about the parking program. Ms. Johnson said a gateway approach had not been discussed. A very significant kickoff campaign was being planned by the staff and the Chamber pending Council approval. Additionally, for the first four to six weeks after the effective date, warnings would be issued instead of citations in order help people become aware of the change. Council Member Fazzino asked whether other things would be painted with the same color of the zone. Ms. Johnson said staff wanted to get experience using the signs during the one-year trial period before it went to that extent. City Manager June Fleming said originally there was an elaborate plan that would have required the City to paint the parking lot signs in appropriate colors. That would have been an expensive program. Staff had worked collaboratively with the Chamber and had come up with realistic recommendations that could be used. If the process worked, the areas could become more colorful, and various symbols and signs could be used as indicators. Staff wanted the trial to be economical but effective. Gates were not discussed, but banners and signs were discussed previously. Council Member Fazzino asked whether the degree of signage was sufficient to withstand challenges from the people who might receive traffic citations and raise the issue of signage inadequa-cy. City Attorney Ariel Calonne said yes. If the City were wrong, there would be a sign expense but not any real damage to an indi-vidual. Council Member Fazzino asked how the sleeper parking resolution
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would impact the Downtown North and the South of Forest Area (SOFA) neighborhoods. Chief Traffic Engineer Ashok Aggarwal said staff believed the impact on the neighborhoods would be minimal. When the City employees were shifted from the Civic Center Garage to the Webster/Cowper Garage and the Holiday Inn parking lot during the earthquake retrofit within the Civic Center Garage, only a few City employees parked in the neighborhoods, at the Webster/Cowper Garage, or at the Holiday Inn parking lot. Some employees continued to move from one zone to another zone, some employees bought permits, and some employees chose different modes of transportation. Council Member Fazzino asked how quickly the City could react to address concerns and alter the program if it were clear there was a significant increase of on-street parking in the neighborhoods. Mr. Aggarwal said the solution would depend on the extent of the problem. Ms. Fleming said staff could be agile. She cautioned that the City should not be too reactionary, and the trial period should be given a chance to work. People needed time to adjust their behaviors, and merchants needed to reeducate their employees. Minor corrections could be made without returning to the Council for approval, but major changes would not be made so quickly. Council Member Schneider asked how long people would be able to use the Peninsula Times Tribune parking lot and how many parking spaces were available at that lot and at the Holiday Inn parking lot. Chief Transportation Official Marvin Overway said the Peninsula Times Tribune parking lot could be used through the Christmas season and then the use would be month to month. The City's lease would terminate early in 1995. Half of the basement at the Webster/Cowper Garage had available parking. The City would create additional permit spaces as needed. Parking Lot T had parking spaces available. Council Member Schneider clarified the parking fee for the Holiday Inn parking lot was $50 per year. Mr. Overway said that was correct. Council Member Schneider asked whether parking spaces were still available in the Holiday Inn parking lot and whether the parking lot was being utilized on a regular basis. Mr. Overway said there was parking available, but the parking lot was underutilized. Council Member Schneider clarified that employers would be made aware of the availability of the parking lots and the costs through the educational program.
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Mr. Overway said that was correct. Also, more emphasis would be put on the car pool permit program. If people carpooled Downtown, they received a free permit. Lot S would be converted to a pay parking lot in April or May 1995. A number of alternative opportunities would be presented to the public at the same time the program was presented in February 1995. Vice Mayor Simitian referred to a letter from M. Carol Stevens dated November 14, 1994, a colleague at his law firm, who wrote because the office had recently moved from California Avenue to the Downtown, and there had been some confusion or difficulty acquiring permits during the past several months. Ms. Fleming said there had been some staffing difficulties. A count had to be done to determine whether permits could be sold again, and the count was completed the end of October 1994. Permits should have been available for sale the first part of November 1994. Vice Mayor Simitian said the issue raised a concern that permit parking needed to be available when the City told people to start using permit parking and stop sleeping. Council Member Wheeler realized that it was one piece of a comprehensive program to address the general issues of parking in the Downtown area. She asked whether there was sufficient permit parking spaces to accommodate the people who wanted to get parking permits. Mr. Aggarwal said permits were available at the Holiday Inn parking lot and at the Webster/Cowper Garage. In addition, the basement at the Webster/Cowper Garage would be changed to permit parking. Lot T would also be changed to permit parking if necessary. The lot currently had both permit and free parking. Council Member Wheeler asked whether the changes would be coter-minous with the enactment of the Resolution or would the City wait to see what happened. Mr. Aggarwal said the changes would be made as needed. Council Member Wheeler asked how many people were on the permit parking wait list. Mr. Aggarwal said people often bought a permit for one lot and then put their name on a wait list for the lot of their choice. People remained on the wait list because they did not want to park elsewhere. Permits were available for the Holiday Inn parking lot and Webster/Cowper Garage because people did not choose to buy those permits. Council Member Wheeler clarified the City had sufficient permit spaces available to accommodate the need for permit parking. Mr. Aggarwal said that was correct.
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Vice Mayor Simitian recalled that staff planned to repair Lot Q to encourage its use because merchants indicated people did not want to use it. Mr. Aggarwal said Lot Q had a wait list of 79 people, and 30 permits would be issued. Vice Mayor Simitian asked whether permits had been issued recent-ly. Mr. Aggarwal said a count was made of the lots every quarter, and the permits were sold on a quarterly basis. Vice Mayor Simitian asked whether 30 spaces were available at Lot Q. Mr. Aggarwal said yes. Vice Mayor Simitian asked whether all of the 30 permit spaces became available at the same time at the end of the quarter. Mr. Aggarwal said the spaces became available during the quarter. Vice Mayor Simitian asked why 30 spaces had accumulated over time. Mr. Aggarwal said the count was done quarterly. Permits were issued on a first-come, first-served basis to the people on the wait list based on the vacancies. Vice Mayor Simitian asked when the quarters ended. Mr. Aggarwal said the quarters ended March, June, September, and December. Permits were issued in April, July, October, and January. Vice Mayor Simitian clarified permits were not issued in October for Lot Q. Mr. Aggarwal said that was correct. Susan Frank, Executive Director, Palo Alto Chamber of Commerce, 325 Forest Avenue, said the project had been very important to the Chamber. The Chamber had enjoyed working with the City staff. The project was a comprehensive approach to the parking problem. The color zones were one part of a large approach. Other parts of the plan that were pending was the search for a possible new parking structure, the attendant lot that would be implemented in the Spring of 1995, and a coordinated signage program. She encouraged Council's support of the staff recommendation which highlighted the efforts of many meetings including the meetings of the Sign and Public Relations Subcommittees. The Chamber believed it had the full support of the people who worked on the project and the business community. As the implementation of the color zone concept moved forward, there must be diligence about the other elements of the plan. She summarized some of the elements
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of the 13-point plan that the Council had approved in January 1994: safety measures had been implemented at Webster/Cowper Garage and Lot Q; a new parking structure had been discussed and referred to the Committee; City employee preference on the waiting list had been removed and dialogue about Civic Center parking spaces had been initiated; a short-term leasing policy of vacant lots had occurred with the Peninsula Times Tribune lot; and paid parking had been approved. Elements that would be implemented as a result of the action that evening would be to encourage alternative transportation measures, an educational flyer, a less dramatic graphics program with a kickoff planned for February 14, 1995, establishment of increased permit spaces in appropriate lots, and the color zone and how it would be implemented in the SOFA. There were only 2 points on the 13-point plan that had not been implemented--the moratorium on parking lot design regulations and the free parking that the Chamber suggested for the Holiday Inn parking lot. The Chamber would spend most of its time with the Public Relations Subcommittee during the next three months. The Chamber understood the importance of the larger community's having a broader understanding of the parking plan. The focus would be on print media, collateral materials, and information pieces being passed out door-to-door in the Downtown area to educate people about the plan. There was concern about the colors, but the colors needed a lot of visibility and she did not mind comments from the press which helped people understand what was happening Downtown. There was a waiting list, and people did not want to walk but the reality was that they might have to walk. The Chamber was concerned about 450 Bryant Street being identified as a possible site for a teen center. A teen center would be a hindrance to the possibility of building a structure at Lots S and L. Dena Mossar, representing the Palo Alto Medical Foundation and Member of the Palo Alto Chamber of Commerce Downtown Parking Committee, 400 Channing Avenue, said she and the Palo Alto Medical Foundation (PAMF) supported the color zone proposal as part of the 13-point plan because it was critically important that the City begin to solve the problems of parking in the Downtown area. The Chamber and the local neighborhoods understood how important it was for all of the 13 points to be implemented in order to achieve the goal of solving the parking problem which included the encouragement of alternate transportation measures. The Council's support of the plan could and would encourage the use of a wide variety of transit services available to Downtown employers and employees. Palo Alto was recognized as a major transit hub, and bicycle access was increasing on all of the transit services. Walking was an excellent means of transportation, and Stanford University provided a free shuttle during the noon hour to the Stanford Shopping Center. She had been on the Public Relations and the Sign Subcommittees, and PAMF had funded the facilitation of the planning for the public relations for the kickoff of the color zone. She urged the Council's support and its continued action to implement the 13 points of the plan. Phyllis Munsey, Member, Palo Alto Chamber of Commerce Downtown Parking Committee, and property owner on Ramona Street, urged the
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Council's support of the plan. She had worked and owned a retail establishment in the Downtown area for 10 years. The parking had been a continuing problem for her commercial tenants. She was encouraged about the plan because alternative parking instructions would be included with the color zone implementation. She had several tenants who had been on a waiting list for their choice of parking permits for a long time. They needed to know what could be done in the meantime rather than sleeper parking, and the parkers needed to be moved into appropriate parking spaces. The color zones would not be prohibitive to the shoppers but would be prohibitive to the people who were in office spaces and parked on the street. She was concerned about a teen center being located near the theaters because of the traffic it would create. Barbara Gross, Chairperson, Palo Alto Chamber of Commerce Downtown Marketing Committee, 400 Hamilton Avenue, said parking was one of the top ten challenges for the Downtown merchants. The Committee was delighted there was a comprehensive approach to educate and provide information to the community. The whole public relations approach for implementing the plan was complete, and there was a great deal of confidence that it would be successful. The Committee was also committed to participating in the plan and having the employers and the employees change the way they looked at the Downtown so that it left more open spaces for the shoppers. The Committee was also glad there would be a one-year trial period. She urged the Council to support the color plan. MOTION: Council Member Fazzino moved, seconded by Schneider, to adopt the Resolution to establish four parking zones in the Downtown area. Resolution 7413 entitled "Resolution of the Council of the City of Palo Alto Approving and Adopting Changes in the City of Palo Alto's Restricted Parking Zones" Council Member Fazzino said the proposal was excellent and an outstanding example of public/private partnership over the past few years. The proposal would not have become a reality without the leadership of the Chamber and the local business community. Ms. Frank and the Chamber deserved a tremendous thanks for their efforts for spearheading the project. Staff deserved thanks for its participation in the proposal and the specific plan before the Council. He emphasized that the proposal would not become a success unless it was recognized that it was part of a much broader parking strategy for the Downtown area. It was important to move forward on the parking structure idea and other sugges-tions presented to the Council by the Chamber the previous year. He was concerned about the signage but was willing to support the staff recommendation. He knew staff would monitor the situation very carefully; and if there were numerous calls from people who could not understand which parking zone they were in and why, staff would address the situation. There would be an impact on adjoining neighborhoods, and staff needed to monitor the situation closely. He believed a parking strategy and teen center could coexist in the Downtown area, and he applauded the City Manager's leadership in that area. Nothing would bother him more than to
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have a sterile single-use parking structure in the Downtown area. He hoped the structure would be surrounded with wonderful uses, including even a teen center. Council Member Schneider commended the staff and the Chamber for working so diligently together on the project. One of the most important parts of the 13-point plan was the educational program. She was surprised to learn the number of employers who allowed their employees to move their cars every two hours. Some employ-ers stated they had a right to park in front of their places of business, but she questioned where their customers would park. She was excited and supported that portion of the plan. Council Member Andersen asked whether additional staff would be necessary to monitor the program when it switched from a chalk bag to a computer mechanism or whether there would be fewer checks. Ms. Johnson said neither. No additional staff was anticipated. Currently, the parking enforcement officers used that mechanism to enforce the time restrictions in the parking lots. Council Member Andersen asked whether the mechanism was as efficient as a chalk bag. Ms. Johnson said it took slightly longer to use the computer, but it was already being used in the parking lots, and so the on-street parking was the only additional area required to enter into the parking mechanism. Ms. Fleming clarified Hughes, Heiss & Associates recommended a position be deleted. The response to that recommendation was that if the Council approved the parking resolution, the current level of staffing would be needed to enforce the resolution. Council Member Andersen asked if the computer also indicated whether a car was stolen. Ms. Johnson said yes. Ms. Fleming said staff had experienced some difficulties with the chalking in terms of causing disabilities. The City had not been able to overcome that obstacle even though exercises and training were in place. The City had to absorb the cost of the disabil-ities. Council Member Schneider said a number of people in the Downtown area felt using the computer was a deterrent for people parking or moving their cars because they could not see if their tires had been chalked. Vice Mayor Simitian clarified the Council specifically stated when it adopted the 13-point plan that the discussion was not about a single Downtown parking structure but about finding some combina-tion of solutions in the Downtown area that might necessitate a single large structure. Few of the larger parking structures had ever been the architectural gem to which local citizens pointed
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with pride. Improvements had been made in some of the recent structures, and a large dominating parking structure did not appeal to him in terms of the character and aesthetics of the Downtown. He hoped that a combination of small less intrusive strategies would be found to resolve the problem. Mayor Kniss said the project was a wonderful example of people working together. People in Palo Alto universally said that the two biggest problems in the City were traffic and parking. She associated her comments with those who were not in favor of large parking structures. She commended the group who worked on the method of implementation of the color zone and for addressing the traffic and parking problems. The plan was very creative. MOTION PASSED 9-0. ORDINANCES 10. Ordinance Amending Various Sections of Chapter 16.09 (The Sewer Use Ordinance) of the Palo Alto Municipal Code Director of Public Works Glenn Roberts said the item was an outgrowth of the Regional Water Quality Control Plant's (RWQCP) discharge permit. The conditions in the permit imposed on the City by the San Francisco Regional Water Quality Control Board (Regional Board) and also in conjunction with the agreement entered into between the City and CLEAN South Bay, representing the environmental interest groups, would further limit metals discharges to the Bay in accordance with the water quality standards. The condition was one element of a broad-based program to effect the reductions in discharges by imposing local limits on dischargers into the sanitary sewer system. Ted Fowlks, Vice President of Engineering, Syntex, 3401 Hillview Avenue, said Syntex was concerned about the proposed amendment to the Sewer Use Ordinance. Syntex had been a good corporate citizen in the community for the past 30 years, had been a community leader, and had received numerous recognitions from the City in cooperative programs such as energy conservation, energy brown-out planning, water conservation, recycling, emergency planning, and hazardous waste containment. Syntex was an environmentally sensitive company and supported the regulation required to protect the environment. He recalled that Syntex did not oppose the enactment of the utility user tax despite the fact that it represented a cost of $250 million to the company. Enactment of certain parts of the proposed ordinance changes would create significant economic burdens to Syntex without providing any demonstrable positive benefit to the operation of the sewage treatment plant. Syntex was experiencing unusually difficult times, and 1,200 to 1,500 jobs would be lost from the Palo Alto site in the next two months. The new owner of Syntex had announced its intention to relocate the Institute of Molecular Biology to Palo Alto, but the proposed ordinance changes were written in a way that could make such relocation economically unattractive to the company. Syntex had worked with the staff on a number of technical issues in the Ordinance, but the concerns
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were both conceptual and technical in nature. Conceptually, Syntex believed the discharge control should be based on perfor-mance criteria that allowed companies to design systems which best served their operation and to be accountable for the level of risk. Given that there were already performance regulations monitoring requirements and hazardous waste material containment regulations, Syntex found the blanket application of more prescriptive spill control requirements was unnecessary when the problems could be addressed on a source basis. There were no cost benefit studies or analyses to demonstrate benefit from the proposals. Under that approach, non-sources of heavy metals would have to invest in the same manner as dischargers of heavy metals. Additionally, Syntex was troubled by an ordinance in which numerous sections were designated for interpretation, exception, or addition at the discretion of the plant superintendent or his/her designee. There was no defined process to ensure some consistency or reasonableness in the regulatory discretion decision-making process or any method of appeal. A company could not undertake any facility planning, design, or cost estimating under such an approach without placing considerable sums of money at risk. Syntex welcomed flexibility in regulations, but it should not have to come at the price of vagueness. Although a discussion of the technical issues was of limited value to the Council, Syntex wanted to bring to the Council's attention that there were at least two key terms used in the Ordinance which lacked definition and as such made the applicability of the Ordi-nance completely arbitrary. The terms "remodel" and "area" were not defined; and without definition, the question was whether a $200 remodel of a laboratory office would trigger the need to make modifications to the building's plumbing system which might cost hundreds of millions of dollars. Syntex realized the City was faced with federal and state discharge requirements but respectfully suggested that those be addressed by regulating specific incoming sources. The companies who were not the problem should not be penalized. Progress had been made working with the staff to address the industry's concerns, but the remaining issues were as great a concern as those that had already been addressed. Council Member McCown asked whether the specific language of Syntex's concerns had been given to staff. Mr. Fowlks said a number of suggestions had been made to the staff by members of Syntex and members of the industry community. He said the specific language varied from issue to issue. Council Member McCown asked what action Mr. Fowlks wished the Council to do that evening. Mr. Fowlks said the industry wanted more time to work with staff to resolve the differences. He asked that the Ordinance be adopted on a temporary basis if the City were faced with deadlines of adoption to conform to federal or state regulations so that Syntex could work with the staff. Mr. Roberts said Manager of Environmental Compliance Philip Bobel would respond to both the general process used to work with the
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industry at large as well as how the City had dealt with Syntex's concerns. Manager of Environmental Compliance Philip Bobel said a metals advisory group, a group of leading businesses, was convened when something new or different was about to happen. The process was used with the early drafts of the Ordinance, and staff also went beyond the advisory committee approach by distributing the draft ordinance to all of the businesses that were primarily affected. There was a series of five meetings with industrial representa-tives during the previous six months. Many changes were made during the meetings, and staff responded to the six to eight detailed letters received from businesses with some changes to the Ordinance. The staff dealt with 60 businesses in the meetings and handled most of the detailed concerns. Council Member McCown asked whether Syntex had communicated to staff the remaining concerns that it viewed were not addressed in the Ordinance. Mr. Bobel said yes. Staff had the latest communication from Syntex, and changes were made in the Ordinance that responded to Syntex's concerns. Council Member McCown clarified that changes to the Ordinance had responded to the areas of concern raised by Mr. Fowlks. Mr. Bobel said most of the concerns were general, but the letters were more specific. Staff responded in the Ordinance to each of the points, e.g., the definition of "remodel." There was a number of requirements that applied to new sources, and the new sources had to be truly new and also remodels. Staff applied the same regulations of the building code which were that there was not an explicit definition of remodeling or cutoff. The businesses reacted indifferent to the idea of a cutoff in terms of the size of the project. Some businesses recognized that a cut off could actually hurt them. Staff modified the Ordinance accordingly and indicated that the City would not evoke the new requirement unless the remodel substantially changed that feature, e.g., if the air conditioning system were remodeled, the City would make the company overhaul the sewer. The specific language on page 5 of the proposed Ordinance, Section 16.09.032(b), stated that "These requirements shall apply to remodeled or converted facilities to the extent that the portion of the facility being remodeled or converted is related to the subject of the requirement." If the remodeling involved replacement of the existing sewer system, the City would use that opportunity to upgrade the sewer system to the new requirements. Staff tried to deal with the concerns expressed that the City might inordinately raise the dollar value of a remodel project. Mayor Kniss asked whether the discussions were held with Mr. Fowlks. Mr. Bobel said the discussions were held with people who repre-sented Mr. Fowlks' group.
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Mayor Kniss asked whether the concern had been resolved. Mr. Bobel said he had spoken with the group that day, and Syntex was still concerned. Council Member McCown said the staff had responded to each of the areas of concern with revisions to the Ordinance to the best of its ability. Vice Mayor Simitian asked the time frame for Council action. Mr. Roberts said the City had a regulatory requirement in the permit for enactment of new compliance requirements effective January 1, 1995. The process was laid out so that the first reading would be in the fall to ensure compliance and enactment by January 1, 1995. Vice Mayor Simitian asked where the regulatory requirement was contained. Mr. Roberts said the requirement was in the Cease and Desist Order issued on the City's discharge permit for the RWQCP and it was also referenced in the City's agreement with CLEAN. Vice Mayor Simitian asked what would happen if the issue were not resolved by January 1, 1995. City Attorney Ariel Calonne said a delay would create an opportu-nity to have the CLEAN agreement reopened for further negotia-tions. He did not believe the delay would be a single triggering violation for the Regional Board, but it was a violation of the Cease and Desist Order and would be subject to administrative penalty processes. Vice Mayor Simitian asked whether the issue would have a large impact in the Bay. There had been concern expressed that there were other areas that the City might be more effective in terms of the marginal cost and utility. Mr. Bobel said the Ordinance was broken down into small compo-nents, and no one component in the Ordinance made a big differ-ence. The City had tried to get a pollutant reduction of a relatively small nature from a large number of places. The City had to ensure that the small things being asked for also had a small price tag associated with them. Mr. Fowlks referred to the cost of the measures, but the City was looking for some evidence that any of the components had a substantial cost associated with them. The one area that had a substantial cost associated with it was the metal finishing requirements. The price tags were larger, but the City had done a cost effectiveness study to determine that the measures would pay for themselves over time. Syntex's concerns were not high priced items. Staff would have to review the details of their concerns to determine which caused the remaining problem.
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Vice Mayor Simitian said there was a significant participant in the process who had raised some issues. He wished the concerns had been raised earlier and in a form that allowed the Council to give some consideration in advance because of the technical issues involved. It would be useful to bring the issue back to the Council with an explanation of the concerns that were still outstanding and staff's response to those concerns. He referred to the language on page 5 Section 16.09.032(b) of the proposed Ordinance which stated "These requirements shall apply to remodeled or converted facilities to the extent that the portion of the facility being remodeled or converted is related to the subject of the requirement." He said an argument could be made that the statement meant that if it were the electrical portion, it would not apply. He believed the language could use some wordsmithing. Mr. Calonne said that was the danger of a simple explanation to a complex problem. Mr. Bobel also preceded his descriptionous clause by stating that the City wanted to leave the language fairly loose. There was judgment expected to be exercised. He asked whether the Council had as its objective limiting applica-tion of the section to only the remodels in which some plumbing was involved. Mr. Bobel only used that example as an illustration of how the requirement would most likely be applied. Vice Mayor Simitian said if there were two or three different perceptions among the Council in passing the law and the staff that had created the Ordinance, it suggested to him that the very issue of ambiguity which was raised by the speaker was legitimate. MOTION TO CONTINUE: Vice Mayor Simitian moved, seconded by Fazzino, to continue the item to allow staff an opportunity to address any ambiguities that might exist in the Ordinance and the concerns from the businesses. City Manager June Fleming said the staff would need to return the following week with the item to be able to have it become effec-tive January 1, 1995. Vice Mayor Simitian said the Council could take action on the first reading of the Ordinance on December 12, 1994, and the second reading could be heard after January 1, 1995, which should not cause a major problem. Mr. Calonne said if the Council were still not satisfied that the concerns had been resolved by the following week, it could give a first reading and the amendments could be made before the second reading. He pointed out that one person's ambiguity was another person's discretion. An ordinance could not be created that was a satisfactory fit for the larger percentage of the industry without leaving some discretion for enforcement. He suggested it would be a mistake to the other 59 industries that were not present that evening to try to precise an issue based on one set of comments without taking into account the need for discretion and enforce-ment.
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Vice Mayor Simitian said that was not what was proposed. He indicated, however, that the ambiguity was present. The legiti-mate complaint heard from businesses was that businesses did not know what needed to be done in order to comply. It was not possible to comply if the conduct expected were not clear. He wanted the staff to put forth the extra effort before the Ordi-nance was approved. He said discretion was a great thing, but so was certainty. Council Member McCown opposed the motion. Fifty-nine companies were not present that evening. Staff had indicated the process it went through had received extensive participation and input on the part of the companies. She had experienced in the past with the Ordinance and with the reports from Mr. Bobel about the issue, that he had done an extraordinary job of responding to the input and had made changes to the proposals in response to the input received from industry. There were extensive changes to the Ordinance which indicated a lot of response, including an attempt to respond to the information provided by the representatives from Syntex. She was not persuaded by the comments that evening that the Council would be well served by asking the staff to go through another process. She believed the Ordinance should be adopted as presented. Council Member Andersen was not surprised that there were business interests disappointed by the requirements. The City was also frustrated by the requirements. Other parts of the state contrib-uted a great deal more pollutants entering the Bay. He appreciated the desire to accommodate all of the business inter-ests and appreciated the comments from Syntex, but he did not believe the Council would be inconsistent with what was requested by approving the Ordinance. He believed discussion would continue on the issue, and there would be opportunities for the staff to continue working with Syntex and other companies that might not be satisfied with the Ordinance before final implementation by the business community. He asked what the time line would be for implementation of the Ordinance by the business community and whether there would be time for continued discussion and modifi-cation if possible. Mr. Bobel said the planning process time provided for the parts that were new facility standards. The problems would be worked out during the course of that review. New language specifically put in the Ordinance matched the building and fire ordinances which allowed for exceptions in cases where the requirement proved to be impractical. The language was added to the Ordinance with the intent that if there were something that proved to be impractical, there would be the ability to provide an exemption. Council Member Andersen clarified businesses on January 3, 1995, would not have to pay extraordinary amounts of money up front to change something in their system without going through an extensive planning and review process. He opposed the motion. Council Member Rosenbaum said Mr. Bobel had been able in the past to secure the cooperation of all the regulated industries, but a
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significant company had voiced its concerns. He supported the motion for a short delay to clarify the issues for the Council. Council Member Fazzino recognized that the Council might be forced to make a tough decision and disappoint a major local employer. At the same time, when the Council had been faced with similar situations on a complex technical subject, the Council had tended to defer final action on the issue. The motion to continue was reasonable and would still meet the spirit of the CLEAN agreement. Mr. Calonne asked whether there was a date certain in the motion. Ms. Fleming requested that a date certain not be stipulated in the motion. Staff would bring the issue back to the Council as soon as possible. Mr. Calonne would advise the Council if the Ordinance had to be enforced by January 1, 1995. Vice Mayor Simitian clarified staff was requested to return with a report that would help the Council identify the points of disagreement and would contain staff's view about why the proposal was accurate. He needed to be persuaded that there was some sound justification for the other issue of ambiguity versus certainty. Mr. Calonne clarified the issue of ambiguity was in the context of the remodel issue. Vice Mayor Simitian said that was correct, but he hoped staff would anticipate that same approach if it were taken elsewhere. MOTION TO CONTINUE PASSED 6-3, Andersen, Huber, McCown "no." 11. Contract between the City of Palo Alto and John J. Shooter Inc. for Cubberley Community Center Landscaping Maintenance MOTION: Council Member Fazzino moved, seconded by Simitian, to: 1) Approve and authorize the Mayor to execute the 8-month contract for the balance of Fiscal Year 1994-95 in the amount of $43,892, plus two 12-month extensions for Fiscal Years 1995-96 and 1996-97 in the amount of $71,147 and $71,997, respectively, to John J. Shooter, Inc. The total amount of the contract shall not exceed $187,036; 2) Authorize the City Manager or her designee to negotiate and execute one or more change orders for unexpected but related work not to exceed $6,584 for the 8-month contract, $10,672 for the first 12-month option, and $10,800 for the second 12-month option; 3) Authorize the City Manager or her designee to exercise the options for the two 12-month periods at her discretion and to execute any other documents necessary to implement the two 12-month option periods of the contract; and 4) Approve the Budget Amendment Ordinance appropriating $60,476 from the Street and Sidewalk Reserve to the Community Services Depart-ment budget for Cubberley Community Center landscape maintenance services and operating expenditures incurred to provide landscape maintenance on a month-to-month basis from July 14, 1994, to the present.
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Ordinance 4246 entitled "Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1994-95 To Provide an Additional Appropriation for Cubberley Landscape Maintenance" MOTION PASSED 9-0. 12. Consultant Agreement between the City of Palo Alto and Angus McDonald and Associates for Computer Programming Services for University Avenue and California Avenue Parking Assess-ments Council Member Fazzino asked whether Hewlett Packard was associ-ated with the proposal. Director of Public Works Glenn Roberts said no. MOTION: Vice Mayor Simitian moved, seconded by Andersen, to approve the Budget Amendment Ordinance for $23,000 and approve a consultant agreement to modify the existing parking assessment district computer software program. Ordinance 4247 entitled "Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1994-95 to Provide an Additional Appropriation for Computer Program-ming Services for University Avenue and California Avenue Parking Assessments" MOTION PASSED 9-0. REPORTS OF OFFICIALS 13. Palo Alto Community Child Care Operational and Financial Status Report Council Member Wheeler said she would not participate in the item because of a conflict of interest due to her employment with Palo Alto Community Child Care (PACCC). Council Member Andersen congratulated PACCC on a job well done. Council Member Fazzino said there had been a remarkable turn of events over the past year. Many people needed to be commended. The program was on the verge of extinction, and there was a real concern about the City's ability to provide City funded child care. Due primarily to the leadership of people within PACCC, the organization was saved and was now thriving. There had never been a question of providing quality child care. The question had been financial capability. He was delighted that PACCC and the City staff had worked well together and continued to provide a very important public service to Palo Alto families. Mayor Kniss said the report indicated that integral to the operation was a parental choice component which offered subsidized parents the ability to choose from non-PACCC centers. During the
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first quarter, there were four affiliate centers in the program. She asked whether some parents had taken the parental choice option. Child and Youth Coordinator Ilene Hertz said yes. Mayor Kniss asked how many parents chose the option. Ms. Hertz said last quarter, 12 out of 53 children were served in the affiliate programs. Mayor Kniss asked the method that advised the community that a subsidy could be received if a parent were not in PACCC. Ms. Hertz said PACCC handled the method internally. No action required. 14. Subleases and Reduced Rental Rate Structure for Dance Space (L-Wing) at Cubberley Center Financial Analyst Martha Miller said within the Cubberley Master Plan, the 16,000-square-foot L-Wing had been designed as the dance wing. The Community Services Division had envisioned a dance cooperative group that would lease and operate within the entire space. The Real Estate Division had had limited involvement with the selection or placement of the tenants within the wing but became involved during June 1994 with the negotiation of long-term leases with Zohar Dance Company and Dance Action. Council Member Andersen had met with staff and the people from Dance Action. He was originally concerned that there appeared to be a substantial difference in the price of the rent. The Council previously agreed that nonprofits would rent space for 65 cents per square foot. The proposal indicated the rent for the first year would be 21 cents per square foot, the second year would be 27 cents per square foot, and the third year would be 32 cents per square foot. The change was substantial and suggested that the L-Wing was not being used in an acceptable manner and that the facility should allow for other groups. He had since changed his mind and offered a modification to the staff recommendation. He proposed that the staff recommendation be approved with the exception that at the end of the first year of the lease with Dance Action that either the City and/or Dance Action could terminate the lease and allow staff, if a termination occurred, to use the L Wing for some broader definition of dance. Further, that staff had an opportunity to meet with Dance Action at the beginning of the lease arrangement to make certain there was an accounting procedure that would take care of the 25 percent lease rent figure. He was not proposing that the arrangement negotiated by staff should be changed. He was convinced that the organi-zation was in its infancy stage, and if the City wanted the alternative dance opportunities to succeed, it had to offer a reasonable rent. The added condition would allow the staff the flexibility to broadly interpret the dance concept and allow Dance Action to cancel without penalty at the end of the first year.
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Council Member Huber asked what the City received in capital improvements from Zohar Dance for the six months of free rent. Ms. Miller said Zohar Dance had made substantial code improvements to Room L4. The L-Wing was an auto shop previously, and the tenant had incurred approximately $20,000 worth of code required improvements required by the City's Building Department, e.g., Americans with Disabilities Act (ADA) requirements, upgrade of a bathroom, and an improved stairway and mezzanine area. Council Member Huber clarified the City made up the $20,000 to $40,000 per year it lost in the L-Wing to pay for the lease payments to the Palo Alto Unified School District (PAUSD). Ms. Miller said that was correct. Council Member Huber asked whether the City lost money anywhere else in Cubberley and how much. Director of Finance Emily Harrison said the site broke even in terms of the mandated payment to the PAUSD and the lease revenue. Vice Mayor Simitian asked whether that included deferred mainte-nance costs and capital reinvestment. Ms. Harrison said no. It included the pass-through requirement in the lease and covenant. Council Member Wheeler asked how the City made up the shortfall that it did not receive through the rents from other tenants of the facility. Ms. Harrison said all the operations at Cubberley were financed through the utility user tax (UUT) and the lease revenue. Less money went into the long-term capital improvements at Cubberley if there were a shortfall. Jancy Limpert, 4000 Middlefield Road, said Dance Action supported the modification to the staff recommendation to review the lease after one year and judge how the group had progressed. The group had a lot of potential. Dance Action had a tremendous funding history, and the enrollment had increased. The group would do even better with a secure lease with the City and would be able to put effort into a marketing strategy to increase the enrollment. City Auditor William Vinson called Council's attention to several provisions in the contract that provided for a right to audit. He suggested that to provide some level of assurance, an audit be scheduled to be completed approximately one year from November 14, 1994. His office would work with the lessee or sublessee to complete the audit and would return to the Council with the results. Ehud Krauss, Director, Dance Action, thanked the staff for its cooperation. He said the conversion of the facility to a profes-
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sional space cost $52,000, and he had asked for credit for half of the money spent. MOTION: Council Member Andersen moved, seconded by Fazzino, to authorize the Mayor to sign a five-year sublease with a five-year option to extend and approve six months free rent to Zohar Dance Company; authorize a reduction in rent from the established Cubberley sublease rental rates, previously approved by Council (CMR:445:91), for the nonprofit dance cooperative group, Dance Action, for the next three years; and authorize staff to negotiate a rental waiver/credit for capital and/or code required improve-ments in Room L1, upon solicitation of a new tenant. Further to recommend that at the end of the first year of the lease with Dance Action, either the City and/or Dance Action may terminate the lease, allow staff to use the L-4 wing for some other broader definition of dance, and that at the beginning of the lease staff work with Dance Action to calculate the 25 percent of lease rent figure. Three-year Sublease between the City of Palo Alto and Dance Action for Room L-3 at Cubberley Community Center with a Reduced Rental Rate Five-year Sublease, with a Five-year Option between the City of Palo Alto and Zohar for Room L-4 at Cubberley Community Center Council Member McCown supported the motion and also supported the City's role in the action as a continued subsidy for the arts, but the Council needed to consider the policy question and how it decided what art organizations in the community were the candi-dates for the City subsidy. She queried how the situation fit into the Council's general support for art issues. Council Member Andersen was troubled at the outset that it appeared the City was negotiating with only one group and that there were not enough groups that were capable of accomplishing what had been described in the Master Plan. The Council might have to reconsider that policy question again if the same situa-tion occurred. By broadening the scope, the City should not have any trouble obtaining the rent that was established at 65 cents per square foot. Dance Action was aware that the rent would increase after the three-year period. MOTION PASSED 9-0. COUNCIL MATTERS 15. Council Comments, Questions, and Announcements Mayor Kniss announced that the Aggressive Panhandling Public Hearing would be held at 5:00 p.m. on November 17, 1994, in the Council Chambers; and a special meeting of the City/School Liaison Committee and the Youth Council would be held at 5:00 p.m. on November 16, 1994, in the Council Conference Room.
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ADJOURNMENT: The meeting adjourned at 11:32 p.m. ATTEST: APPROVED: City Clerk Mayor NOTE: Sense minutes (synopsis) are prepared in accordance with Palo Alto Municipal Code Sections 2.04.200 (a) and (b). The City Council and Standing Committee meeting tapes are made solely for the purpose of facilitating the preparation of the minutes of the meetings. City Council and Standing Committee meeting tapes are recycled 90 days from the date of the meeting. The tapes are available for members of the public to listen to during regular office hours.
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