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HomeMy WebLinkAbout1997-03-24 City Council Summary Minutes 03/24/97 −317 Regular Meeting March 24, 1997 ORAL COMMUNICATIONS........................................82-320 APPROVAL OF MINUTES........................................82-320 AGENDA CHANGES, ADDITIONS, AND DELETIONS...................82-321 1. Downtown Parking Structure Final Report for Recommendation Regarding the Construction of and Financing of New Parking Structure(s) in Downtown Palo Alto - Refer to Policy and Services and Finance Committees.......................82-321 1A. (Old Item No. 11) Resolution 7655 entitled “Resolution of the Council of the City of Palo Alto Amending the Conflict of Interest Code for Designated City Officers and Employees as Required by the Political Reform Act and Regulations of the Fair Political Practices Commission and Repealing Resolution No. 7548".............................................82-321 1B. (Old Item No. 12) Ordinance 4401 entitled “Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1996-97 to Provide an Additional Appropriation for La Comida Senior Nutrition Program”...................82-321 1C. (Old Item No. 14) Ordinance 4402 entitled “Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1996-97 to Increase Animal Services Revenues and to Amend the Municipal Fee Schedule to Include New Flea Control Product Sales”........................................82-322 2. Ordinance 4403 entitled “Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1996-97 to Provide an Additional Appropriation for the Community Services Department in Recognition of Receipt of Funds from the Public Library Fund of the State Library”.........82-322 3. Rebate of San Francisco Property Tax Refund to the Water Utilities.............................................82-322 03/24/97 −318 4. Ordinance 4404 entitled “Ordinance of the Council of the City of Palo Alto Amending Chapter 9.48 of the Palo Alto Municipal Code Relating to Obstructing Streets and Sidewalks to Add Section 9.48.025 Prohibiting Sitting or Lying Down Upon the Public Sidewalk on University Avenue Between High Street and Cowper Street”........................................82-322 4A. Conference with City Attorney--Existing Litigation....82-322 5. PUBLIC HEARING: The City Council will consider a resolution of the City Council concerning the rights of the City’s electric customers to engage in direct transaction with alternate power supplies, the City’s recovery of its uneconomic investments in electric generation facilities, and the City’s marketing of products and services to customers outside of the City’s jurisdictional boundaries in the context of restructuring of the electric utility industry in California (continued from 3/17/97)..............................82-323 5B. (Old Item No. 8) PUBLIC HEARING: Ordinance of the Council of the City of Palo Alto Amending Section 12.16.020 of Chapter 12.16 of Title 12 of the Palo Alto Municipal Code by Establishing Underground Utility District No. 37 (continued from 3/17/97) ......................................................82-347 5C. (Old Item No. 9) PUBLIC HEARING: The Palo Alto City Council will consider a Tentative Map application to consolidate existing parcels into a 9.2 acre site to accommodate an approved 295,000-square-foot medical office, clinic and research facility campus for the Palo Alto Medical Foundation and proposed modifications to conditions of the 1996 Conditional Use Permit and Architectural Review approval for property located at 795 El Camino Real (CMR:185:97)............82-348 5D. (Old Item No. 10) PUBLIC HEARING: Vacation of Street Rights of Way and Public Utilities Easement - Palo Alto Medical Foundation Urban Lane Site............................82-381 5E. (Old Item No. 13) Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1996-97 to Provide an Additional Appropriation for Capital Improvement Project 19406, Rinconada Pool Site Improvements, for Replacement of the Children’s Pool...................................82-382 6. PUBLIC HEARING: The City Council will consider an appeal of the Zoning Administrator’s decision for a Conditional Use Permit 96-UP-5, allowing live entertainment, including music 03/24/97 −319 and dancing, at an existing restaurant (Q-Billiards), located at 529 Alma Street (continued from 3/3/97)............82-383 15. Council Comments, Questions, and Announcements........82-419 03/24/97 −320 03/24/97 −321 The City Council of the City of Palo Alto met on this date in the Council Chambers at 7:06 p.m. PRESENT: Andersen, Eakins, Fazzino, Huber, McCown, Rosenbaum, Schneider, Wheeler ABSENT: Kniss ORAL COMMUNICATIONS Ben Bailey, 343 Byron Street, spoke regarding bicycle safety, Paly High, Alma/Churchill. Edmund Power, 2254 Dartmouth Street, spoke regarding fair play. Jack Morton, 2343 Webster Street, spoke regarding the Black & White Ball. Daniel Daye, Homeless, spoke regarding the sit-lie ordinance. Michael Campbell, 364 Kingsley Avenue, spoke regarding the interim Ordinance 4381. T. J. Watt, homeless, spoke regarding the Children’s Zoo. Herb Borock, 2731 Byron Street, spoke regarding legislative platform - radar enforceable speed limit. Margaret Ash, 965 Webster Street, spoke regarding the sit-lie ordinance. APPROVAL OF MINUTES MOTION: Council Member Rosenbaum moved, seconded by Wheeler, to approve the Minutes of January 6, 1997, as submitted. MOTION PASSED 7-0-1, Eakins “abstaining,” Kniss absent. MOTION: Council Member Rosenbaum moved, seconded by Wheeler, to approve the Minutes of January 13, 1997, as submitted. MOTION PASSED 7-0-1, Eakins “abstaining,” Kniss absent. MOTION: Council Member Rosenbaum moved, seconded by Wheeler, to approve the Minutes of March 11, 1997, as submitted. MOTION PASSED 7-0, Eakins “not participating,” Kniss absent. 03/24/97 −322 MOTION: Council Member Rosenbaum moved, seconded by Wheeler, to approve the Minutes of March 12, 1997, as submitted. MOTION PASSED 7-0, Eakins “not participating,” Kniss absent. AGENDA CHANGES, ADDITIONS, AND DELETIONS Council Member Wheeler moved, seconded by McCown, that Item Nos. 11, 12, and 14 would become Consent Calendar Items. MOTION PASSED 8-0, Kniss absent. MOTION: Council Member Fazzino moved, seconded by Andersen, to move Agenda Item Nos. 7, 8, 9, 10, and 13 forward ahead of Item No. 6. MOTION PASSED 8-0, Kniss absent. City Manager June Fleming announced that Agenda Item Nos. 11, 12, and 14 would become Item Nos. 1A, 1B, and 1C, respectively, and Agenda Item Nos. 7, 8, 9, 10, and 13 would become Item Nos. 5A, 5B, 5C, 5D, and 5E, respectively. CONSENT CALENDAR MOTION: Council Member Wheeler moved, seconded by McCown, to approve Consent Calendar Item Nos. 1 through 4. 1. Downtown Parking Structure Final Report for Recommendation Regarding the Construction of and Financing of New Parking Structure(s) in Downtown Palo Alto - Refer to Policy and Services and Finance Committees 1A. (Old Item No. 11) Resolution 7655 entitled “Resolution of the Council of the City of Palo Alto Amending the Conflict of Interest Code for Designated City Officers and Employees as Required by the Political Reform Act and Regulations of the Fair Political Practices Commission and Repealing Resolution No. 7548" 1B. (Old Item No. 12) Ordinance 4401 entitled “Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1996-97 to Provide an Additional Appropriation for La Comida Senior Nutrition Program” Agreement between the City of Palo Alto and La Comida De California, Inc. for 1996-97 Community Block Grant Funds 1C. (Old Item No. 14) Ordinance 4402 entitled “Ordinance of the Council of the City of Palo Alto Amending the Budget for the 03/24/97 −323 Fiscal Year 1996-97 to Increase Animal Services Revenues and to Amend the Municipal Fee Schedule to Include New Flea Control Product Sales” 2. Ordinance 4403 entitled “Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1996-97 to Provide an Additional Appropriation for the Community Services Department in Recognition of Receipt of Funds from the Public Library Fund of the State Library” 3. Rebate of San Francisco Property Tax Refund to the Water Utilities 4. Ordinance 4404 entitled “Ordinance of the Council of the City of Palo Alto Amending Chapter 9.48 of the Palo Alto Municipal Code Relating to Obstructing Streets and Sidewalks to Add Section 9.48.025 Prohibiting Sitting or Lying Down Upon the Public Sidewalk on University Avenue Between High Street and Cowper Street” Ordinance 4405 entitled “Ordinance of the Council of the City of Palo Alto Amending Chapter 9.48 of the Palo Alto Municipal Code Relating to Obstructing Streets and Sidewalks” Ordinance 4406 entitled “Ordinance of the Council of the City of Palo Alto Amending Chapter 10.10 of the Palo Alto Municipal Code Relating to Temporary Street Closures” MOTION PASSED 8-0 for Item Nos. 1 - 3, Kniss absent. MOTION PASSED 6-2 for Item No. 4, Andersen, McCown “no,” Kniss absent. CLOSED SESSION 4A. Conference with City Attorney--Existing Litigation Subject: Scott, et al. v. City of Palo Alto, SMC No. 302290 Authority: Government Code section 54956.9(a). Public Comments None. UNFINISHED BUSINESS 5. PUBLIC HEARING: The City Council will consider a resolution of the City Council concerning the rights of the City’s electric customers to engage in direct transaction with alternate 03/24/97 −324 power supplies, the City’s recovery of its uneconomic investments in electric generation facilities, and the City’s marketing of products and services to customers outside of the City’s jurisdictional boundaries in the context of restructuring of the electric utility industry in California (continued from 3/17/97) Director of Utilities Edward Mrizek said in September 1996, Assembly Bill (AB) 1890 directed a comprehensive restructuring of the electric utility in California. Staff extensively analyzed options in order to prepare for the transition in the market. The mission of the Palo Alto Electric and Gas Utility was to provide reliable and competitive energy services which responded to the needs of its customers. Those services needed to be met in a safe and environmentally responsive manner. The value to the community included lower rates, a financial contribution to City services, local control and accountability, responsive service, and partner- ing with other agencies on regional issues such as improved air quality and renewable resources. Those values were the cornerstone of municipal ownership of utilities, and Palo Alto's strategy was to continue to provide those same values to the community. While Palo Alto customers were currently offered power at prices substantially lower than investor-owned utilities in California, investor-owned utilities were preparing for competition by paying off debt and restructuring for lower rates by the Year 2002. Also, more than 250 companies entered California and registered with the Federal Energy Regulatory Commission (FERC) as power marketers. Palo Alto's challenge was also to reduce its debt on its investments to supply power to its customers and to retain rates in the future at or below the projected market prices. While doing that, Palo Alto needed to continue to provide the municipal valued services which distinguished a municipal utility from a for-profit enterprise. To respond to those challenges, staff recommended the three policies stated in the staff report (CMR:159:97) be adopted. The policies allowed staff to pursue business strategies that achieved the City's goal of offering competitively priced services in the future while maintaining its commitment to policy goals valued by customers and the community. Although municipal utilities were not mandated to provide customers a choice of an energy supplier, staff believed Palo Alto residential and business customers should have the same energy choices as customers in investor-owned utility service areas. The City's responsibility was to remain competitive and be the utility of choice to its customers. Palo Alto was very successful over the past several years in lowering its energy and operating costs and currently purchased energy from a variety of sources at prices at or below market. Palo Alto's vision was to be the preferred energy enterprise for current and potential customers as restructuring the electric industry moved forward. 03/24/97 −325 Utilities Advisory Commission (UAC) Chair Paul Johnston said the UAC endorsed the proposed recommendations. The City Utilities staff was essentially leading the way in terms of municipal utilities preparation for deregulation, and that leadership role was particularly evident at the Northern California Power Agency (NCPA). The City of Palo Alto was well positioned for competition compared to other municipal utilities because of current low rates and a debt structure which allowed the City to take care of its debts through the stranded cost approach outlined in the staff report (CMR:159:97). The proposal did not necessarily include the full range of options that could be considered in order to assure Palo Alto residents and businesses continued to have competitive rates and that the General Fund continued to be supported by some transfer of methodology. Other alternatives might need to be considered in the future. Council Member Fazzino applauded the progressive way in which the Utilities staff and UAC were approaching the issue. Regarding the stranded cost issue, he clarified the proposal was to apply a stranded cost across all customer classes. Assistant Director of Utilities, Administrative Services Randy Baldschun said the City was currently breaking the electric rate up into functions of distribution. There would be one component for stranded costs, one for the power costs, and another called the public purpose programs. The plan was to use acceptable cost methodologies to allocate the stranded costs across the rate schedules. The overall goal was allocating not only the stranded costs but also the distribution costs and all the other costs to end up with rates that would take the City through the transition- ary period without having major impacts on customers. As the City came out of the transition period, there would be enough funds in the Calaveras Reserve account to recover a fairly conservative worst case scenario of stranded costs. Council Member Fazzino queried whether there would be a differential charge for residential versus commercial customer service stranded costs. Mr. Baldschun said there would be differentials. The specific rate components would be presented to the Finance Committee in May, and they would vary by customer class and cost function. Council Member Fazzino clarified stranded costs would be clearly delineated as opposed to the other elements of the rate structure. Mr. Baldschun said that was correct. 03/24/97 −326 Council Member Fazzino queried how long staff suspected the charges would need to be in place. Mr. Baldschun said the initial plan was to build up the Calaveras Reserve so that by the end of the Year 2001 when the investor-owned utilities would essentially do away with the "competition transition charge" for their large commercial and industrial customers, Palo Alto would have paralleled that same path into the stranded cost recovery component for its large commercial/industrial customers. In addition, staff wanted to try to eliminate the transition cost recovery component of the retail residential rate. PG&E and other investor-owned utilities currently had the option to carry that transition cost beyond the Year 2001. If Palo Alto could do so without a substantial impact on its residential class, it would try to end the transition cost recovery component by the Year 2001. Council Member Fazzino queried what percentage of the current rate the stranded cost recovery component might be. Mr. Baldschun said a residential overall retail rate of a little less than $0.06 per kilowatt hour was looked at, and of that the transition cost component would be about one-half cent. Council Member Fazzino understood there had been discussion about requiring customers to pay the municipal utility if they selected an alternative supplier. He asked for comment. Assistant Director of Utilities, Resource Management Tom Habashi said if customers wished to sign up with another marketer, they would first have to commit in writing to continue paying their Competitive Transition Charge (CTC) until the end of the Year 2001. Mr. Mrizek said the reason was that the Calaveras facility was basically built for all of Palo Alto's customers. If Palo Alto lost a major customer to another supplier, the customer should still be required to pay its share of the costs to construct the Calaveras facility. Council Member Fazzino queried whether Council would see a proposed charge as part of the 1998 rate structure. Mr. Mrizek said yes. Council Member Schneider asked how investor-owned utilities were paying off their debt. Mr. Mrizek said the California Public Utilities Commission (CPUC) allowed the investor-owned utilities to maintain their rates at the current level. For PG&E, the current level for the residential class 03/24/97 −327 was somewhere in the range of $0.10 to $0.12 per kilowatt hour. It did not cost PG&E that amount of money to provide service to that class. The differential was being put into the bank to pay off debt service. The CPUC allowed investor-owned utilities to do that until the end of the Year 2001, and PG&E estimated it would have adequate funds to pay off all of its debt service by that date. Council Member Schneider clarified between the period PG&E was paying off its debt and the Year 2001, PG&E's rates would still be higher than Palo Alto's. Mr. Mrizek said that was correct. Council Member Schneider clarified PG&E's rates would remain fixed. Mr. Mrizek said PG&E's rates would remain fixed at roughly $0.11 per kilowatt hour. After the Year 2001, PG&E would reduce its rates to a market level. Council Member Schneider clarified that compared to Palo Alto's $0.06 per kilowatt hour for stranded cost recovery. Mr. Mrizek said that was correct. The plan was to recommend that Palo Alto collect its competitive charges up to the Year 2001 as indicated by Mr. Baldschun and then also reduce its rates to remain competitive with PG&E or any other marketer entering the California markets. Council Member Schneider queried whether Palo Alto's rates would be significantly lower after the Year 2001 when its stranded rates were recovered. Mr. Habashi said while Palo Alto's rates would be lower, it was questionable whether they would be significantly lower. Vice Mayor Andersen understood the investor-owned utilities were giving a 10 percent reduction with funding through a bonding mechanism which was spread over several years. Mr. Habashi said that was correct. Vice Mayor Andersen heard that PG&E's rates would likely be higher but was concerned that investor-owned utilities would artificially reduce its rates in 1997-1998 at the same time Palo Alto was raising its rates. He queried whether the City was putting itself in a vulnerable competitive position. 03/24/97 −328 Mr. Habashi believed on the residential side it would be very hard for Palo Alto to be in an uncompetitive position. The investor-owned utilities would not reduce its commercial rates by 10 percent. Vice Mayor Andersen asked how Palo Alto would carry out the possibility of expanding its own competitive base and its power retail services beyond its boundaries and whether it could be done beyond Palo Alto's contiguous borders. Mr. Habashi clarified Palo Alto was not likely to seek customers all over California but rather would target only specific areas where it could provide value not only for the customers it would be working with but also for the customers in Palo Alto. For example, it was possible that Hewlett Packard (HP) would look for a marketer to aggregate all the campuses in the Bay Area. Palo Alto wanted to be there working with HP because it did not want to lose HP as a customer of Palo Alto. The same thing was true of Stanford University. Stanford had on its land almost 40 percent of Palo Alto's customers, and Palo Alto wanted to work with Stanford to be sure it was happy with Palo Alto's service and to make sure Stanford did not get another marketer. When Palo Alto sought opportunities outside of Palo Alto, it would do so strategically and selectively. If Palo Alto went beyond that, it would work with marketers who already had sufficient staff and help to give along the way. Vice Mayor Andersen commended staff on its progressive approach to the issues. Council Member Wheeler said while Mr. Habashi gave Council Member Schneider assurance that Palo Alto could continue to acquire energy and sell it to its customers at competitive prices in the future, and the staff report (CMR:159:97) gave the same assurances, she queried on what basis the City believed it could play in the "big boys'" game. Mr. Mrizek said for the last three years, staff had been buying energy at or below market rate in the market. Approximately one year before, Palo Alto temporarily reduced its Western contract by 37.5 megawatts and bought that energy amount on the open market. In less than a year, the City saved approximately $1 million. Mr. Habashi and his staff negotiated for additional marketing resources, and in every agreement to date, the benefits were on the plus side. He believed the trend would continue. In the Year 2002 the investor-owned utilities would be required to buy energy from the California Power Exchange (CPE), and as a municipal utility, the City would have choices. It could buy from the CPE at the market price, it could buy from a marketer through a short- or long-term agreement, and it could continue to get energy from Western. The City was currently working on a new marketing agreement with Western 03/24/97 −329 for approximately another 18-year period; however, while Western was currently not the best price in the game, it had to reduce its prices in the market. He believed the City would have more choices than the investor-owned utilities in the future. City Manager June Fleming said it was true the City had benefited by wise moves and a low debt. The City would have to pay close attention to the electric utility in the future, and it would have to be treated much more like a business. Some of the public processes currently in use would have to be reviewed. In the next five to seven years, the Council would have to revisit the appropriate role of the City. While she was comfortable about the City's current position, it was not something to take for granted. Council Member Wheeler referred to Vice Mayor Andersen's questions about how the City would hold on to its larger corporate customers. The staff report (CMR:159:97) indicated options in services would be offered similar to those of the competitors to help the City hold on to its large customers. She asked what kinds of services and options would be provided. Mr. Habashi said one example would be to offer a menu of pricing for the commodities so the customers could choose the type of pricing they preferred given their certain circumstances. Another option would be to go to customers' site and work with them on using some of their money, which they provided for the public services goods, to work some efficiencies on their facilities, and to help reduce their overall costs of energy. A third option might be to work with the customers on lending them money to build some of their systems. It would be cheaper for the City to provide the money than it would be for the customers because their costs of capital were somewhat higher. There was a long list of options and services staff was currently considering, and staff asked the customers what they wanted. Before January 1, 1998, staff would return to the City Council and share some of the ideas being considered. Council Member Wheeler said the City's General Fund had always benefited greatly from having its municipally owned utilities, and she suspected the implementation of the new restructured electric utility would inevitably impact the General Fund revenues. As staff considered the various options for services for its major customers, she assumed the potential consequences to the City's General Fund was also considered. Ms. Fleming said while there was no simple answer, as discussed with the UAC and staff, the City had to accept the fact that it was time to review its transfer policy. The level at which the City legitimately made the transfer according to the methodology approved by the Council needed to be studied. When she talked about long-range financing and being cautious with the funds currently 03/24/97 −330 being used because of the many external factors which would impact the City's financial health, the electric utility transfer to the General Fund was one of them. She did not want to leave Council with the impression the City would enjoy the same level of transfer to the General Fund for a long period of time. Staff would discuss with the UAC and Council funding a study to review the transfer methodology. She believed the study would likely reveal the same level of transfer could not be maintained. Council Member Eakins said 15 percent of the electric power was sold to about 26,000 households in Palo Alto. She queried whether staff anticipated doing some public relations explanations not only of the charge but also of what some of the terms meant, e.g., stranded recovery costs. Mr. Habashi said as soon as Council endorsed the policies set forth, staff would proceed immediately to do its public relations work. Council Member Rosenbaum referred to the issue of marketing and that a third of the requests had to do with expanding marketing outside of the City. He queried whether any thought had been given to stopping marketing entirely following the model of Pacific Bell and long distance. Pacific Bell did not offer long distance. The individual customer chose a long distance supplier, and the whoever it might be, the bill was provided by Pacific Bell. He queried the advantages and disadvantages of doing the same thing with respect to providing power. Mr. Mrizek said while there would be 250 marketers applying to FERC to market energy in California, he estimated that when deregulation was fully implemented after the Year 2002, there might be 10 marketers. The same happened with the gas deregulation. Ini- tially, there was a multitude of marketers, but most fell by the wayside. While one possibility was to buy only from the CPE at market, put Calaveras Hydroelectric into CPE, and get the market price for it, and deliver market-priced power to the customers, he did not believe it was the best approach for Palo Alto. He believed Palo Alto could do better than the CPE by having alternate marketers from which the City could buy energy in the future. It was impossible to know what the market would be in the Year 2002. When staff went through the stranded costs analysis with the UAC, the range between low-, medium-, and high-cost estimates in the market was phenomenal. In the long run, he believed having an opportunity to buy from a number of marketers would keep the City in a position of continuing to keep its supply below the CPE market level. If the City discontinued its marketing, it would have to get its energy from CPE. He expected the market to be very volatile over the next five years, and to get out at that time would place the City in the position of not having a marketer it could depend on to provide energy at 03/24/97 −331 or below market. It would be impossible to get a long-range commitment on a price from any marketer at that point. He believed staff did a good job of keeping its market supply at below market, and that should continue. Mr. Habashi had been scheduling meetings with some of the City's largest customers. A couple of the customers had indicated they were happy with what they received from the City and did not need to know much about what was available to them in the marketplace; they enjoyed working with Palo Alto and wanted to keep it going. The City was doing a good job of marketing. If the time came when the City could no longer do as good a job as others, then it should get out of the business. Council Member Rosenbaum agreed the City was currently doing an excellent job, and it had a very good staff. He inferred from Mr. Habashi's answer that the City's effectiveness would be evaluated from time to time. If it were determined that the City's marketing efforts and costs were such that it was not an advantage to continue, the City would surely consider getting out of the marketing part of the business. Ms. Fleming believed Council Member Rosenbaum's comments were right on target in terms of what she was trying to say in response to Council Member Wheeler. She was totally committed to the philosophy articulated by Mr. Habashi. In terms of the letter submitted by Mr. Keicher (on file in the City Clerk's Office), staff believed most of the items would be addressed in the future. Mayor Huber declared the Public Hearing open. Receiving no requests from the public to speak, he declared the Public Hearing closed. MOTION: Council Member Rosenbaum moved, seconded by Schneider, to adopt the Resolution concerning restructuring of the Electric Utility in California. Resolution 7656 entitled “Resolution of the Council of the City of Palo Alto Concerning the Option of the City’s Electricity Customers to Engage in Direct Transactions with Alternate Power Suppliers, the City’s Recovery of its Uneconomic Investments in Electric Generation Facilities, and the City’s Marketing of Products and Services to Customers Outside of the City’s Jurisdictional Boundaries in the Context of the Restructuring of the Electric Utility Industry in California” Council Member Rosenbaum said City staff had done an excellent job, and Palo Alto was ahead of many cities not only because of its good choice of power suppliers but also because of the excellence in its 03/24/97 −332 staff and the analysis and thought exercised in looking towards the future. He urged support. Vice Mayor Andersen said while there were many important items on the Council agenda that evening, the most important issue was the electric utility. He was galled that such a comprehensive and significant issue was receiving so little attention from the news reporters. He thanked staff and the UAC for an outstanding job of keeping the City on the right track. There would be some major shifts in the entire industry, and Palo Alto citizens needed to know. Palo Alto had an obligation as a utility to educate its community, and he was sure that would take place in every way possible. He understood the private sector was seeing the unbundling of distribution services such as billing, etc., and he queried whether the City might have to do that. Mr. Baldschun said there was a national effort by the marketers who wanted to have the billing function. Currently and traditionally, the monopolistic utilities did the billing, and it was the key link to the customer. There were moves in California from the CPUC to force utilities to unbundle the costs of billing, which were the customer information system and the metering function, and put them on the bill so that marketers instead of the utility could offer those services. The City's current plan was not to do that unless it made sense for Palo Alto. Vice Mayor Andersen queried whether the City was in a position where it could hold on to the function as a municipal utility or whether it might be forced to be put into a competitive arena. Mr. Mrizek said AB 1890 gave the local control to the City Council for the distribution system which included metering. Council Member Fazzino concurred with both Vice Mayor Andersen and Council Member Rosenbaum that staff deserved great credit for its work. Based upon what he had heard from both public and private sources regarding the issue, the City had moved far ahead of other municipal utilities, and staff deserved the credit for it. He agreed it would be nice to see a feature article in the local newspapers regarding the issues surrounding the electric utility and that it was much more important in the long run than on which side of the street the Stanford housing went. Few people understood the issue, and it was incumbent on the City to educate the community and itself over the next few years regarding the impact of deregulation. Walking the halls of the State Capitol on a regular basis, he knew there were many state legislators who voted on the deregulation issue but had little idea about its implications in the future. 03/24/97 −333 Mayor Huber complimented the staff of what he had always considered to be dark science, and he never quite understood what staff was doing. The staff report (CMR:159:97) and the presentation were readable and understandable for anyone, and he appreciated it. MOTION PASSED 8-0, Kniss absent. 5A. (Old Item No. 7) PUBLIC HEARING: The City Council will consider a Site and Design and Conditional Use Permit application to demolish an existing one-story gas station building (1,075 square feet) and construct a new single story 900-square-foot car wash building, an 1,855-square-foot gas station canopy and related site improvements for property located at 3897 El Camino Real (continued from 3/17/97) Council Member Schneider asked whether the car wash was to be self-serve or fully automated with employees. Contract Planner Chandler Lee said it would be an automated car wash. Mayor Huber declared the Public Hearing open. Receiving no requests from the public to speak, he declared the Public Hearing closed. MOTION: Council Member Wheeler moved, seconded by Schneider, to approve the staff, Planning Commission, and Architectural Review Board recommendations that the City Council: 1. Approve the Mitigated Negative Declaration, finding that the proposed project will not result in any significant environmental impacts, if certain conditions of approval are imposed; 2. Approve the Site and Design, as revised, for construction of the gas station and car wash facility based on the following findings and conditions; and 3. Approve the Conditional Use Permit for the operation of an automotive service station use, based on the following findings and conditions. CONDITIONAL USE PERMIT FINDINGS 1. The proposed use, at the proposed location, will not be detrimental to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare, or convenience in that sufficient landscaping and landscaped setbacks are provided around the perimeter of the site to screen the use from neighboring properties, lighting is sufficiently shielded to reduce lighting impacts on 03/24/97 −334 neighboring properties to acceptable levels, gasoline dispens- ing facilities will be equipped with both Phase I and Phase II Vapor Recovery Systems to prevent toxic vapors from escaping from the storage system, all four existing trees will be preserved, a Corrective Action Plan to remediate soil and groundwater pollution is currently being implemented on the site and will not be affected by the proposed gas station use, and the proposed project will incorporate sufficient noise mitigations to reduce noise levels to within the range that is acceptable according to City noise standards. These acoustical features include an existing seven foot sound wall, an acoustical ribbon curtain at the car wash entrance, and a 10 foot by 8 foot entrance setback to the car wash. The proposed gas station and car wash will be required to include all these provisions as a condition of project approval and, therefore, will not be detrimental to the public health, safety, general welfare, or convenience. 2. The proposed use will be located and conducted in a manner in accord with the Palo Alto Comprehensive Plan and purposes of the zoning district in that the automobile service station and car wash uses are consistent with Comprehensive Plan policies (Urban Design Element Objectives on p. 42 which provides for orderly development and high aesthetic quality and Program 4 which discourages garish signs) and meet the development regulations of the zoning ordinance with respect to floor area ratio, height, lot coverage, parking, landscaping, setbacks and other requirements. SITE AND DESIGN FINDINGS 1. The construction and operation of the use in a manner that will be orderly, harmonious, and compatible with existing and potential uses of adjoining or nearby sites will be ensured by the fact that sufficient landscaping and landscaped setbacks are provided around the perimeter of the site to screen the use from neighboring properties, lighting is sufficiently shielded to reduce lighting impacts on neighboring properties to acceptable levels, gasoline dispensing facilities will be equipped with both Phase I and Phase II Vapor Recovery Systems to prevent toxic vapors from escaping from the storage system, all four existing trees will be preserved, a Corrective Action Plan to remediate soil and groundwater pollution is currently being implemented on the site and will not be affected by the proposed gas station use, and the proposed project will incorporate sufficient noise mitigations to reduce noise levels to within the range that is acceptable according to City noise standards. 03/24/97 −335 2. The desirability of investment, or the conduct of business, research, or educational activities, or other authorized occupations, in the same or adjacent areas will be ensured by the improvements to the site that will add value to the location and replace the existing, dilapidated building. Also, all off-site impacts on surrounding businesses will be reduced to acceptable levels through standard conditions of approval and special noise mitigations. 3. Sound principles of environmental design and ecological balance will be ensured by the conformance of the project with the development standards of the CS zoning district with respect to floor area, height, lot coverage, parking, landscaping, setbacks and other environmental design requirements; the project will reduce the use of water by implementation of a car wash water recycling system and will prevent toxic vapors from escaping from the gasoline storage system with the installation of both Phase I and Phase II Vapor Recovery Systems. 4. The use will be in accord with the policies of the Palo Alto Comprehensive Plan in that the automobile service station and car wash uses are consistent with Comprehensive Plan policies (Urban Design Element Objectives on p. 42 which provide for orderly development and high aesthetic quality and Program 4 which discourages garish signs). SITE AND DESIGN CONDITIONS 1. The revised site plan shall include the acoustical mitigation measures cited on page 3 of the Noise Analysis by Charles Salter dated October 3, 1996. These acoustical features shall include an existing seven foot sound wall, an acoustical ribbon curtain at the car wash entrance, and a 10 foot by 8 foot entrance setback to the car wash. The freestanding sign should be a monument sign and be located within the planter strip near the corner. The landscaping and freestanding sign shall be designed and located so as not to obstruct the sight distance triangle for drivers exiting the site. The four perimeter light standards shall be reduced in height to 15 feet. The existing Scarlet oak tree in the sidewalk on El Camino Real shall be replaced with a Sycamore tree and two new Sycamores planted in the sidewalk for a total of four Sycamore street trees. The existing 30 foot driveway near the corner shall be reduced to 28 feet and shifted three feet to the south and the proposed 28 foot northern driveway shall be shifted 5 feet to the north to provide for a 25 foot spacing between street trees. The planter strip along the El Camino Real frontage shall be lengthened from 27 to 35 feet and planted with an evergreen tree with a low canopy 03/24/97 −336 (Arbutus Marina) to fill in between the Sycamore street trees. An evergreen of the same species should be planted in each of the corner planter strips along El Camino Real. The new street trees, on-site trees, and on-site landscaping should be located so as not to block the sight distance triangle for drivers exiting the site. The loading zone should be expanded to 540 square feet (12 by 45 feet) to conform with the requirements of the Off-Street Parking Regulations. The planter strip on the northern perimeter of the property next to Jack-in-the-Box shall be supplemented with a row of Arbutus Marina (15 gallon) along this perimeter. CONDITIONAL USE PERMIT CONDITIONS 1. The proposed service station use may operate 24 hours per day, seven days a week. The car wash hours of operation shall be limited as follows: 7:00 AM to 9:00 PM Monday through Friday 9:00 AM to 9:00 PM Saturday 9:00 AM to 9:00 PM Sunday. 2. All on-site activities shall be subject to the requirements of the City's Noise Ordinance , Chapter 9.10 PAMC. 3. All on-site deliveries, including the delivery of gasoline, shall be limited to the following hours: 7:00 AM to 9:00 PM Monday through Friday 9:00 AM to 9:00 PM Saturday 9:00 AM to 9:00 PM Sunday. 4. No engine or body work shall be performed on-site at any time. STANDARD CONDITIONS OF PROJECT APPROVAL Prior to Issuance of Demolition Permit Planning/Zoning 1. A final site plan shall be prepared and approved by the Planning Division which reflects any modifications by the Planning Commission, ARB, and City Council. The revised site plan shall include the acoustical mitigation measures cited on page 3 of 03/24/97 −337 the Noise Analysis by Charles Salter dated October 3, 1996. These acoustical features shall include an existing seven foot sound wall, an acoustical ribbon curtain at the car wash entrance, and a 10 foot by 8 foot entrance setback to the car wash. The freestanding sign should be a monument sign and be located within the planter strip near the corner. The landscaping and freestanding sign shall be designed and located so as not to obstruct the sight distance triangle for drivers exiting the site. The four perimeter light standards shall be reduced in height to 15 feet. The existing Scarlet oak tree in the sidewalk on El Camino Real shall be replaced with a Sycamore tree and two new Sycamores planted in the sidewalk for a total of four Sycamore street trees. The existing 30 foot driveway near the corner shall be reduced to 28 feet and shifted three feet to the south and the proposed 28 foot northern driveway shall be shifted 5 feet to the north to provide for a 25 foot spacing between street trees. The planter strip along the El Camino Real frontage shall be lengthened from 27 to 35 feet and planted with an evergreen tree with a low canopy (Arbutus Marina) to fill in between the Sycamore street trees. An evergreen of the same species should be planted in each of the corner planter strips along El Camino Real. The new street trees, on-site trees, and on-site landscaping should be located so as not to block the sight distance triangle for drivers exiting the site. The loading zone should be expanded to 540 square feet (12 by 45 feet) to conform with the requirements of the Off-Street Parking Regulations. The planter strip on the northern perimeter of the property next to Jack-in-the-Box shall be supplemented with a row of Arbutus Marina (15 gallon) along this perimeter. Public Works Engineering 2. The plan has been reviewed for compliance with applicable codes but the design remains the responsibility of the architect/engineer who prepared it. Any changes to these plans, other than those provided herein, must be reviewed by the Public Works Engineering Division. Utilities Electric 3. The Permittee shall be responsible for identification and location of all utilities, both public and private, within the work area. Prior to any excavation work at the site, the Permittee shall contact Underground Service Alert @ (800) 642-2444, at least 48 hours prior to beginning work. Public Works Operations 03/24/97 −338 4. All existing street trees to be retained, as shown on the final landscape plan, shall be protected during construction. The existing Scarlet Oak tree in the sidewalk on El Camino Real shall be replaced with a Sycamore tree. The following tree protection measures shall be approved by the City Arborist and included in construction/demolition contracts and be implemented during demolition and construction activities unless otherwise approved. The following tree protection measures shall apply: PAMC Sec. 8-04-070. Any modifications to these requirements must be approved, in writing, by the City Arborist. a. All trees to be preserved shall be protected with six-foot-high chain link fences. Fences are to be mounted on two-inch diameter galvanized iron posts, driven into the ground to a depth of at least 2 feet at no more than 10-foot spacing. The fences shall enclose the entire area under the dripline of the trees. The fences shall be erected before construction begins and remain in place until final inspection of the building permit, except for work specifically required in the approved plans to be done under the trees to be protected. (See Public Works Department's standard specification detail #505). b. No storage of material, topsoil, vehicles or equipment shall be permitted within the tree enclosure area. c. The ground around the tree canopy area shall not be altered. d. Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival. e. The tree protection measures shall be approved by the City Arborist and Planning Division and included in construction/demolition contracts and be implemented during demolition and construction activities unless otherwise approved. 5. A certified arborist shall be retained by the applicant to prepare and submit tree protection plans. The plans shall identify the trees to be protected and include measures for their protection during construction. The certified arborist shall inspect the tree protection measures and shall certify that the PAMC Sec. 8-04-015 have been installed prior to demolition, grading, or building permit issuance. 6. The applicant shall submit a request to disconnect all utility services and/or meters including a signed affidavit of vacancy. 03/24/97 −339 The form is available at the Building Department. Utilities will be disconnected or removed within 10 working days after receipt of request. The demolition permit will be issued after all utility services and/or meters have been disconnected and removed. Prior to Submittal of a Building Permit Utilities Electric 7. This project requires a padmount transformer. The location of the padmount transformer shall be shown on the site plan and approved by the Utilities Department and the Architectural Review Board. 8. Three phase electric service is not readily available to the site. The applicant is responsible for all expenses to extend three phase service to the site. The Utility will compute an economic justification based on estimated load consumption and reimburse applicant for part of the off-site costs. 9. The applicant shall provide space for an above ground load break cabinet on-site. Fire Department 10. Since the car wash requires more than 1,000 gpd of water, fire sprinklers will be required per PAMC, Section 15.04.170 (dd). The canopy does not require sprinklers. 11. The applicant shall submit final plans for review and approval by the Fire Department. Plans and permits are required for the underground fire service line and automatic sprinkler system installation. If the sprinkler system serves 100 sprinklers or more, it shall be supervised for water flow and value tamper by an approved central station. The underground fuel storage tanks require a separate plan review by the Fire Department prior to installation. Planning/Zoning 12. The approved building materials and color scheme shall be shown on building permit drawings for all buildings, patios, fences, utilitarian enclosures and other landscape features. 13. Final landscape and irrigation plans encompassing on- and off-site plan table areas out to the curb must be submitted to and approved by the Utility Marketing Services Division. A Landscape Water Use statement, water use calculations and 03/24/97 −340 a statement of design intent shall be submitted for each project. These plans should be prepared by a licensed landscape architect and qualified irrigation consultant. Landscape and irrigation plans shall include: a. All existing trees identified both to be retained and removed including private and public street trees. b. Complete plant list indicating tree and plant species, quantity, size, and locations. c. Irrigation schedule and plan. Spray nozzles are to be chosen carefully to minimize overspray in the irregular planter beds. A separate, irrigation only, water meter is to be installed. d. Fence locations. e. Lighting plan with photometric data. The existing lighting plan shall be revised to reduce the height of the perimeter light standards from 16.5 feet to 15 feet and to meet the .5 to 1.5 footcandle average lighting standards contained in PAMC Section 18.64.030. All lighting must be shielded in a manner to prevent visibility of the light source, eliminate glare and light spillover beyond the perimeter of the development. The lighting plan, photometrics and specification sheets shall be revised to meet these guidelines and shall be submitted to Planning Division staff for review and approval. f. Trees to be retained shall be irrigated, aerated and maintained as necessary to ensure survival. 14. The project shall include an enclosed trash and recycling area which complies with the design guidelines adopted by the ARB and approved by the City Council pursuant to Section 16.48.070 (PAMC). The final site plan shall include an enclosed trash and recycling area with a roof. The enclosed trash and recycling area should include a two cubic yard container for cardboard and two 64 gallon containers for bottles and cans. The trash/recycling facilities shall be approved by the City of Palo Alto Recycling Division prior to issuance of a building permit. Public Works Engineering 15. The applicant shall submit a final grading and drainage plan to Public Works Engineering, including drainage patterns on site and from adjacent properties. The plan shall demonstrate 03/24/97 −341 that pre-existing drainage patterns to and from adjacent properties are not altered. 16. The site shall be fine graded to provide a minimum 2% slope away from the building perimeter and adjacent property lines. In no case shall the final grading increase the sheet flow onto adjacent properties. 17. The proposed development will result in a change in the impervious area of the property. The applicant shall provide calculations showing the adjusted impervious area with the building permit application. A storm drainage fee adjustment will take place in the month following the final approval of the construction by the Building Inspection Division. 18. Permittee must obtain a grading permit from the City of Palo Alto Building Inspection Division if excavation exceeds 100 cubic yards or deeper than 3 feet. 19. The applicant shall obtain an encroachment permit from Caltrans if any lane closures are needed on El Camino Real in performance of this work. 20. A construction logistics plan shall be provided, addressing at minimum parking, truck routes and staging, materials storage, and the provision of pedestrian and vehicular traffic adjacent to the construction site. All truck routes shall conform with the City of Palo Alto's Trucks and Truck Route Ordinance, Chapter 10.48, and the attached route map which outlines truck routes available throughout the City of Palo Alto. Transportation 21. Signage and landscaping shall meet the sight distance require- ments of PAMC 18.83.080, applicable to project frontages where driveways are present, and in parking lots. Landscaping shall be specifically identified in the landscape plan as meeting these height requirements. Specifically, the project should reduce the concrete wall along the Ventura Avenue, El Camino Real, and back side perimeter to 3 feet, ensure that all landscaping along the Ventura Avenue, El Camino Real, and back side perimeters is 3 feet or less, and ensure that the height of the entry sign at the corner does not impede the sight distance triangle. Utilities Electric 03/24/97 −342 22. All utility meters, lines, transformers, backflow preventers, and any other required utilities, shall be shown on the landscape and irrigation plans and shall show that no conflict will occur between the utilities and landscape materials and shall be screened in a manner which respects the building design and setback requirements. Utilities/Water-Gas-Wastewater 23. The applicant shall submit a completed WATER-GAS-WASTEWATER SERVICE CONNECTION APPLICATION - LOAD SHEET for City of Palo Alto Utilities. The applicant must provide all the information requested for utility service demands (water in G.P.M., gas in B.T.U.P.H., and sewer in G.P.D.). 24. The applicant shall submit improvement plans for utility construction. The plans must show the size and location of all underground utilities within the development and the public right of way including meters, backflow preventers, fire service requirements, sewer cleanouts, and any other required utilities. 25. The applicant must show on the site plan the existence of any water well, or auxiliary water supply. 26. The applicant shall be responsible for installing and upgrad- ing the existing water and sewer mains and/or services as necessary to handle anticipated peak loads. This responsibil- ity includes the design and all the cost associated with the construction for the installation/upgrade of the water and sewer mains and/or services. Prior to Issuance of a Building Permit Planning/Zoning 27. Color chips to match the colors specified in the approved ARB drawings shall be attached to the cover sheet of the building permit drawing set by the applicant. Public Works Engineering 28. The applicant shall obtain a Permit for Construction in a Public Street from Public Works Engineering for construction proposed in the City right-of-way. 03/24/97 −343 Public Works Water Quality Control 29. If industrial process water is to be discharged to the sanitary sewer, a waste minimization study shall be completed prior to construction to ensure that the industrial processes have employed all appropriate waste minimization techniques. An application for an Industrial Waste Discharge Permit (for the car wash water and any other wastes other than sanitary or storm) shall be filed before (or with) the Building Permit application. No floor drains shall be allowed in bays unless permitted. 30. The applicant shall install a recycling system and treatment system for car wash water and any other discharge wastes other than sanitary and storm. The applicant must operate the facility in compliance with the City's Sewer Use Ordinance, Section 16.09. Utilities/Water-Gas-Wastewater 31. The applicant's engineer shall submit flow calculations which show that the off-site and on-site water and sanitary sewer mains will provide the domestic water, fire flows, and wastewater capacity needed to service the development and adjacent properties during anticipated peak load. Field testing may be required to determine current flows and water pressures on existing main. Calculations must be stamped by a registered civil engineer. 32. A separate water meter shall be installed to irrigate the approved landscape plan. This meter shall be designated as an irrigation account and no other water service will be billed on the account. 33. An approved Reduce Pressure Principal Assembly (Backflow Preventer Device) shall be installed for all existing and new water connections from Palo Alto Utilities to comply with requirements of California Administrative Code, Title 17, Sections 7583 through 7605 inclusive. The Reduce Pressure Principal Assembly shall be installed on the owner's property and directly behind the water meter. Inspection by the Utilities Cross Connection Inspector is required for the supply pipe between the meter and the assembly. 34. An approved Check Valve shall be installed for the existing or new water connections for the fire system to comply with requirements of California Administrative Code, Title 17, Sections 7583 through 7605 inclusive. The Double Check Detector Check Valve shall be installed on the owner's property adjacent to the property line. Inspection by the Utilities 03/24/97 −344 Cross Connection Inspector is required for the supply pipe between the city connection and the assembly. During Construction Building Inspection 35. To reduce dust levels, it shall be required that exposed earth surfaces be watered as necessary. Spillage resulting from hauling operations along or across any public or private property shall be removed immediately and paid for by the contractor. Dust nuisances originating from the contractor's operations, either inside or outside of the right-of-way shall be controlled at the contractor's expense. Fire Hazardous Materials 36. All gasoline dispensing facilities shall be equipped with both Phase I and Phase II Vapor Recovery Systems to prevent toxic vapors from escaping from the storage system per State law. Utilities Electric 37. All new underground electric services shall be inspected and approved by both the Building Inspection Division and the Electrical Underground Inspector before energizing. 38. All new underground service conduits and substructures shall be inspected before backfilling. 39. Contractors and developers shall obtain a street opening permit from the Department of Public Works before digging in the street right-of-way. Police 40. All non-residential construction activities shall be subject to the requirements of the City's Noise Ordinance, Chapter 9.10 PAMC, which requires, among other things, that a sign be posted and that construction times be limited as follows: 8:00 AM to 8:00 PM Monday thru Friday 9:00 AM to 8:00 PM Saturday 10:00 AM to 6:00 PM Sunday. Public Works Engineering 03/24/97 −345 41. The contractor must contact the CPA Public Works Inspector at (415) 496-6929 prior to any work performed in the public right-of-way. 42. No storage of construction materials is permitted in the street or on the sidewalk without prior approval of Public Works Engineering. 43. The developer shall require its contractor to incorporate best management practices (BMP's) for stormwater pollution preven- tion in all construction operations, in conformance with the Santa Clara Valley Nonpoint Source Pollution Control Program. The Inspection Services Division shall monitor BMP's with respect to the developer's construction activities on private property; and the Public Works Department shall monitor BMP's with respect to the developer's construction activities on public property. It is unlawful to discharge any construction debris (soil, asphalt, sawcut slurry, paint, chemicals, etc.) or other waste materials into gutters or storm drains. The applicant also will be required to paint a "No Dumping/ Flows into the Bay" logo near all drainage inlets. 44. All construction within the City right-of-way, easements or other property under City jurisdiction shall conform to Standard Specifications of the Public Works and Utility Departments. 45. The applicant shall be required to replace a 50 foot section of sidewalk and driveway approach on the Ventura Avenue frontage. Utilities/Water-Gas-Wastewater 46. The applicant shall pay the connection fees associated for the installation of the new water service/s to be installed by the City of Palo Alto Utilities Prior to Finalization Planning/Zoning 47. The landscape architect shall certify in writing and submit to Planning Division, and call for inspection, that the landscaping has been installed in accordance with all aspects of the approved landscape plans, that the irrigation has been installed and that irrigation has been tested for timing and function, and all plants including street trees are healthy. Public Works Engineering 03/24/97 −346 48. All sidewalks bordering the project shall be repaired and/or removed and replaced in compliance with Public Works approved standards. 49. The Public Works Inspector shall sign off the building permit prior to the finalization of this permit. All off-site improvements shall be finished prior to this sign-off. After Construction Utilities/Water-Gas-Wastewater 50. The customer shall give the City written notice of any material changes in size, character, or extent of the equipment or operations for which the City is supplying utility service before making any such change. MOTION PASSED 7-0, Fazzino, Kniss absent. 5B. (Old Item No. 8) PUBLIC HEARING: Ordinance of the Council of the City of Palo Alto Amending Section 12.16.020 of Chapter 12.16 of Title 12 of the Palo Alto Municipal Code by Establishing Underground Utility District No. 37 (continued from 3/17/97) City Manager June Fleming referred to Council Member Fazzino's concern that staff was directed by Council to involve the residents and that he could not interpret the survey as carrying out the intent of Council's direction. Director of Utilities Edward Mrizek said when staff received the assignment at the January 1997 meeting, a survey was done of the entire underground district, and letters were sent to all residents in the underground district with estimated costs they would incur as a result of the conversions. Staff responded to many letters and had one-on-one meetings with customers in the district who had specific questions regarding their specific. In the correspon- dence, customers were encouraged to contact City staff with any questions. No indication was received to hold an additional group meeting from the district, and therefore, another meeting of the entire district was not held. A meeting was held prior to the previous Council meeting, and a second was held for one particular street in the area where the residents were concerned about the aesthetics. Council Member Fazzino understood staff was going to contact the neighbors, set up a meeting to explore financing options, and discuss reasons why the actual costs varied significantly from the estimated 03/24/97 −347 costs. Based on his reading of the report (CMR:170:97), the primary communication was through the survey. Mr. Mrizek said the report included the survey and correspondence advising residents in the district that the City reestimated the costs to convert the service on their particular pieces of property, and that the estimate the consultant came up with were much lower than what staff estimated. The related information was also provided to each customer. Some had questions and contacted staff; staff met with others individually in the field and responded to their questions. A group meeting was not held. Council Member Fazzino queried whether residents were advised that the item would be considered at the Council meeting that evening. Mr. Mrizek said yes. Ms. Fleming believed once customers saw the revised costs, some of the concerns were diminished; other concerns included issues which were better to answer one-on-one in the field rather than handle in a group meeting. Mayor Huber declared the Public Hearing. Receiving no requests from the public to speak, he declared the Public Hearing closed. MOTION: Vice Mayor Andersen moved, seconded by Eakins, to introduce for first reading an Ordinance to establish Underground District No. 37 and amend Section 12.16.02, of Chapter 12.16 of Title 12, of the Palo Alto Municipal Code. Ordinance 1st Reading entitled “Ordinance of the Council of the City of Palo Alto Amending Section 12.16.020 of Chapter 12.16 of Title 12 of the Palo Alto Municipal Code by Establishing Underground Utility District No. 37" MOTION PASSED 8-0, Kniss absent. PUBLIC HEARINGS 5C. (Old Item No. 9) PUBLIC HEARING: The Palo Alto City Council will consider a Tentative Map application to consolidate existing parcels into a 9.2 acre site to accommodate an approved 295,000-square-foot medical office, clinic and research facility campus for the Palo Alto Medical Foundation and proposed modifications to conditions of the 1996 Conditional Use Permit and Architectural Review approval for property located at 795 El Camino Real (CMR:185:97) 03/24/97 −348 Council Member McCown said that she would not participate in the item because of a conflict of interest due to the fact that the applicant was a client of her law firm. Director of Planning and Community Environment Ken Schreiber referred to a corrected Attachment H, the Architectural Review Board (ARB) minutes, to the staff report (CMR:185:97). Planning Commission Chairperson Phyllis Cassel said the Commission discussed the item the previous week and recommended it go forward. There were discussions regarding bicycles and where bicycle lockers should be located, and the Commission made a minor amendment to monitor the bicycle locations, lockers, and use as part of the parking Transportation Demand Management (TDM) program which were incorporated. The monitoring would provide the ability to make adjustments in the future and to gain some knowledge regarding who used which kinds of bicycle lockers and what kind of spaces which should translate into other kinds of uses in the future. Council Member Rosenbaum referred to a letter from Ellen Fletcher (on file in the City Clerk's Office), which indicated the City's ordinance required bicycle facilities be located near the main building entrances used by the public. He queried whether it was a problem with respect to the action taken by the Planning Commission. Mr. Schreiber did not believe so. Staff and the Planning Commission shared the recommendation to the Council. While the definition of "near" was not included in the ordinance, staff believed the bicycle parking was in close proximity to the front entrance and was in a location where it would be acceptable and beneficial to the bicyclists yet not provide a safety or other hazard problems for the entrance. Staff agreed with the Palo Alto Medical Foundation's (PAMF) staff position that if the bicycle parking were placed right at the main entrance, there would be many conflicts which were best to avoid. Ms. Cassel said the Commission discussed where the bicycle parking should be and decided to recommend a monitoring program which would provide the City with some further information. The Commission believed some of the bicycle parking was close to the main entrance. Council Member Rosenbaum referred to page 10 of the staff report (CMR:185:97) and the statement that "the ARB added the requirements that art elements be included in the underground parking structure and in the pediatrics section and that PAMF provide an ongoing art program at the Urban Lane campus." He queried the statutorial basis for making the last requirement in particular. City Attorney Ariel Calonne said the review authority fell out of the ARB, and he did not believe ARB had interior jurisdiction. 03/24/97 −349 Council Member Rosenbaum asked about the Public Art Commission (PAC). Mr. Calonne understood the PAC operated in an advisory capacity to the ARB. Mr. Schreiber said it was not a planned community zone, so the art was not part of a public benefit provision. It was a standard ARB review, albeit a large project, and it was appropriate to have a public art component to the project. There were many discussions between the PAC and the PAMF representatives. He did not believe Council Member Rosenbaum's question was raised in the review process, and he deferred to the City Attorney in terms of whether the condition was appropriate and acceptable or whether it should be deleted. Mayor Huber declared the Public Hearing open. Ellen Fletcher, 777-108 San Antonio Road, said they were not talking about bicycle lockers but rather parking near the entrance. The ordinance referred to Class 2 and Class 3 racks being close to the entrance. PAMF currently had racks set up in the vicinity of the entrance, and to her knowledge there had not been a problem of people tripping over the bicycles or bicyclists running into patients. The monitoring would not work because the PAMF was planning to have a security guard who would chase away the bicyclists who wanted to park near the building. The existing racks would be at the next building, which was unnatural. The racks should be within site of the entrance. Stanford University had bicycles parked at all the entrances as close as possible. If bicycles were chased away by the security guards, there would be nothing to monitor. It was important to require the racks be in a logical location before the construction went forward; otherwise it would be much more of a problem to include later. She urged conformance to the ordinance. David Jury, 330 Town and County Village, Real Estate Manager for the PAMF, also introduced Jeff Teel, Project Architect from RMW Architecture in San Francisco. A security guard was currently on the PAMF site and was anticipated to be on the new site to prevent problems, not to push people around or chase bicycles away. If there were not a safety issue, he doubted the security guard would say anything to anyone. The issue was riding bicycles in the loggia area, which was approximately 12 feet wide and covered by an overhead trellis. The loggia area was where people would enter and exit the clinic buildings and be dropped off or picked up by cabs, vehicles, and paratransit vans. People would be parked in the spaces across the entry which were for the urgent care center. There would be a variety of individuals in the loggia area, and it would be a busy and congested area. The PAMF preferred people get off their bicycles 03/24/97 −350 and walk into the loggia area rather than ride bicycles there. Bicycle parking would be located approximately 70 feet from Building A and about 100 feet from the main entrance to the clinic. There would be a number of main entrances to the clinic, and because of the north/south connection, the extension of Urban Lane in the rear of the site, there were main entrances there. Bicycle racks in that location would be very close because it was anticipated to be the main bicycle entrance because it was adjacent to the bicycle path being built along the railroad track right-of-way. Council Member Schneider asked whether the PAMF would be willing to add bicycle racks closer to certain entrances in six months to a year if needed as long as they did not impede people in walkers or wheelchairs. Mr. Jury said absolutely. As any business which wanted to be patient and customer friendly, PAMF would do what was necessary to accommodate the traffic. Council Member Wheeler assumed the ARB strongly requested the program the clinic had for a number of years in its current facility be continued. If that were the understanding, she queried whether the ARB condition was something the PAMF accepted. Mr. Jury said the PAMF accepted the ARB condition. PAMF understood the ARB wanted the program which had been going on to continue and also for the PAMF to look for other avenues to expand it if the funding were available and if the opportunities were there. Mayor Huber declared the Public Hearing closed. MOTION: Council Member Schneider moved, seconded by Wheeler, to approve the following Planning Commission and staff recommendations: 1. Finding that the previously certified Draft Environmental Impact Report (EIR) adequately analyzes the currently proposed changes to approved Conditional Use Permit and Architectural Review Board Approval conditions, the project Tentative Subdivision Map and vacation of portions of Homer Avenue and Urban Lane, and that there are no changed circumstances that invalidate the continued use of the that certified EIR; 2. Approval of modifications to conditions of the previously approved use permit, 94-UP-8, based on the following findings; 3. Approval of a tentative subdivision map, 96-SUB-4, to assemble 13 parcels into one parcel and to establish needed roadway and other public dedications and easements, based on the following findings and subject to the recommended condition; and 03/24/97 −351 4. Approval of modifications to conditions of the previously approved Architectural Review Board Approval 94-ARB-30, based on the following findings. CEQA Findings for PAMF 1997 Approvals FINDINGS 1. On January 29, 1996, the Palo Alto City Council adopted a Resolution certifying the adequacy of the Palo Alto Medical Foundation New Campus Project Final Environmental Impact Report (EIR) and making findings thereon pursuant to the California Environmental Quality Act (CEQA). Those findings included: a. A determination that there were several significant impacts which could be mitigated to a less than signifi- cant level. Those impacts included various Land Use, Traffic and Circulation, Public Services and Utilities, Toxic and Hazardous Materials, Drainage and Water Quality, Geology ad Seismic Hazards, Air Quality, and Cultural Resources effects that could result from the proposed project. b. A determination that there were two air quality impacts and one noise impact that would remain significant and unavoidable even with required mitigation. c. A certification that the Final EIR described a reasonable range of alternatives to the proposed project, or to its location, which could feasibly obtain the basic objectives of the project and that the Council evaluated the comparative merits of the alternatives and rejected them in favor of the proposed project. Those alternatives included the No Development Alternative, the Existing Plans Alternative, the No-Urban-Lane Alternative, the Reduced Density Alternative, the Former Maximart Site Alternative, and the Hewlett-Packard Site Alternative. d. A finding that the unavoidable environmental impacts of the project were acceptable when balanced against the benefits of the project, which included the following: 1) The relocation of most of the existing Medical Foundation facilities and activities from a mostly residential neighborhood to a mostly commercial area; 03/24/97 −352 2) Avoidance of the short-term, but multi-year impacts to the residential neighborhood surrounding the existing Medical Foundation if the previously approved Specific Plan were to be implemented, resulting in a substantially longer construction period than would occur at the proposed Urban Lane Campus; 3) Retaining and modernizing the medical services and research activities of the Medical Foundation within Palo Alto; 4) Short-term construction expenditures for the pro- posed project would exceed Fifty Million Dollars ($50,000,000) and long-term expenditures associated with retaining the Foundation in Palo Alto; and 5) The Foundation’s funding with the City of a compre- hensive planning effort for the properties to be vacated in the Downtown area upon completion of the new Urban Lane Campus. e. Finding that the EIR concluded that numerous other impacts would not be significant. 2. In September, 1996, the Medical Foundation filed materials, including documentation of project compliance with Use Permit and ARB conditions of approval and an application for approval of a tentative subdivision map, for a 295,108 square foot project consistent with the City Council’s January 29, 1996 approval of the proposed Urban Lane Campus project. In November, 1996, the Foundation requested that several Use Permit and ARB conditions of approval be modified in order for project grading and excavation to proceed sooner than would be possible with the original conditions of approval. 3. The Foundation’s November 1996 request for changes to the existing Use Permit and ARB Approval conditions would not result in any major modifications to the proposed project, including but not limited to its size, location, site plan, architecture or landscaping, nor any changes to required mitigation measures imposed as conditions of approval by the City Council on January 29, 1996. 4. Environmental conditions pertaining to the project site and environs have not changed in any significant way since the certification of the Final EIR. 03/24/97 −353 5. Based on the facts contained in findings 2, 3 and 4 above, the currently proposed Urban Lane Campus project will have no different environmental effects than were analyzed in the previously certified Final EIR, which remains an adequate environmental document for the currently proposed project consistent with the California Environmental Quality Act, and all previously required mitigation measures remain conditions of approval for the currently proposed project. Findings and Conditions for Modifications to Use Permit FINDINGS 1. The proposed use, at the proposed location, with conditions as modified, will not be detrimental or injurious to property or improvement in the vicinity, and will not be detrimental to the pubic health, safety, general welfare, or convenience in that: a. The proposed PAMF medical clinic and research uses approved in 1996 are compatible with the commercial and warehouse uses on Wells Avenue and the uses of the Holiday Inn and Stanford-Joint Powers Board (JPB) properties to the north; with the commercial and industrial uses on Encina Avenue and other properties including Town and Country Shopping Center to the south; and with the CalTrain right-of-way to the east and the Stanford University arboretum to the west across El Camino Real. The Final Environmental Impact Report (EIR) certified for the PAMF Urban Lane Campus project identified no site specific significant adverse environmental impacts that would affect vicinity properties so long as all mitigation measures, incorporated as conditions of approval for the Use Permit and related entitlements approved in 1996, are implemented. The modifications to the original conditions of approval will not change the proposed project or the mitigation measures required with the 1996 approvals which include: 1) EIR Mitigation Measures C.1, C.2, and C.3 regarding visual, light and glare impacts that could otherwise adversely affect adjacent properties, particularly the properties on the north side of Encina Avenue. 2) EIR Mitigation Measure J.2 which governs future noise levels of PAMF project stationary equipment, such as that to be located on the southerly service road adjacent to properties on the north side of Encina Avenue, and the Use Permit and EIR mitigation measure 03/24/97 −354 that govern the noise levels permitted at the southerly property line adjacent to the properties on the north side of Encina Avenue. 3) The provision of public easements for circulation improvements on Wells Avenue and Urban Lane between University Circle and Encina Avenue and related transportation on and off-site improvements that would serve the PAMF site and its vicinity. b. Likewise, the EIR identified no significant adverse health or safety impacts from the proposed PAMF uses so long as all mitigation measures are implemented, which is a Use Permit condition of approval. c. Further, the EIR and City analyses have found that the PAMF project would improve the overall circulation and public convenience in the project vicinity with provision of the Urban Lane Extension north to University, a vehicular connection south to Encina Avenue, the widening of existing Urban Lane north of Wells Avenue, the widening of Wells Avenue for provision of a sidewalk, and the pedestrian-bicycle path along the eastern side of the PAMF site. d. Additionally, the PAMF Urban Lane Campus project would relocate most existing PAMF facilities out of an otherwise primarily residential portion of Downtown, thereby decreasing land use conflicts in that area, and would modernize the medical clinic facilities utilized by a large proportion of the residents of Palo Alto and surrounding communities. 2. The proposed use will be located and conducted in a manner in accord with the Palo Alto comprehensive plan and the purposes of the zoning ordinance in that: a. The comprehensive plan designation of Major Institution/ Special Facilities is intended for institutional, academic, governmental, and community service uses and lands that are either publicly owned or are operated as nonprofit organizations as would be the case with the PAMF Urban Lane Campus project. b. The designation of the PAMF Campus is consistent with the surrounding comprehensive plan designations of Service Commercial for the hotel, commercial and warehouse uses to the north; of Major Institution/Special Facilities at the JPB parking lot, the CalTrain right-of-way and the 03/24/97 −355 transit center to north; and of the Service Commercial and Regional Community Commercial designations to the south. c. The Public Facilities rezoning, related text amendment and this Use Permit, as conditioned, implement the comprehensive plan designation and are consistent with the nonprofit medical clinic and research uses proposed at the PAMF Urban Lane Campus. 3. The proposed modifications to the Use Permit would affect only the timing of grading and excavation permits and minor other aspects of the following conditions, not affecting any of the original findings made in conjunction with the original approval of the project by the Palo Alto City Council in January 1996. MODIFIED CONDITIONS 7. As part of the annual mitigation monitoring report to the City, the permittee shall survey on-site parking occupancy and vacancy, including bicycle parking, distributed by patient and employee parking spaces, during peak hours on three consecutive work days (Tuesday-Thursday) and provide this data to the Director of Planning and Community Environment for consideration relative to the deferred parking approval. (Same as ARB 4) 11. No excavation or grading permits shall be issued unless and until permittee has provided written evidence to the satisfac- tion of the Director of Planning and Community Environment in a form approved by the City Attorney that agreement can be reached among the relevant parties (PAMF, Stanford, JPB, and City) regarding design of the extension of Urban Lane from the northern project boundary to University Circle that is consistent with the certified Final EIR and the January 1996 approvals by the City Council. No building permits shall be issued unless and until permittee has provided in a form approved by the City Attorney the final written agreements and/or easements concerning the extension of Urban Lane and permittee has entered into written agreement with City guaranteeing timely funding and construction of said Urban Lane improvements. (Same as ARB 13) 12. Preliminary improvement plans for the extension of Urban Lane from the northern edge of the project site to University Circle shall be submitted to and approved by the Architectural Review Board and City Traffic Engineer prior to issuance of any grading 03/24/97 −356 or excavation or building permits. Final improvement plans for the extension of Urban Lane shall be submitted to and approved by the Planning Director, Public Works Director and Traffic Engineer prior to issuance of any building permits. Improvement plans for the Urban Lane extension shall include, as a minimum, the following elements: Roadway and bicycle/pedestrian path extensions per the City-approved alternate, including connections to the pedestrian to the bicycle/pedestrian path and roadway on the PAMF site. • Landscaping, lighting, fencing and other amenities. • Connections of the new roadway and bicycle/pedestrian path to University Circle. • (omitted) • Any and all required changes to the Joint Powers Board parking lot. • Accommodation of the new Marguerite bus access/storage area per Stanford’s plans. (Same as ARB 14) 13. Preliminary improvement plans for all work on El Camino Real related to the project shall be submitted to and approved by the City Traffic Engineer prior to issuance of any grading or excavation permit. Final improvement plans for all work on El Camino Real shall be submitted to and approved by the City Traffic Engineer prior to issuance of any building permits and by Caltrans prior to issuance of any building permits and by Caltrans prior to issuance of any interiors building permits. The Plans shall include as a minimum, the following elements: • Reconfiguration of southbound on-ramp. • New signal installation for PAMF intersection, including separate phase for southbound ramp and hardwire intercon- nection with Embarcadero/El Camino Real signal. The signal controller shall be able to accept a possible future pedestrian phase (refer also to mitigation measure B.4). • Closure of abandoned driveways and streets. • Construction of new five-foot wide sidewalk and five-foot-wide planting strip along project frontage. 03/24/97 −357 Due to lack of right-of-way on El Camino Real, part of this construction may be on permittee’s property. If the approved improvement plans show these improvements on a portion of permittee’s property, the Final Map shall include appropriate easements. • Restriping of El Camino Real and construction of new five-foot wide median and four-to-five-foot wide island separating on-ramp and through lanes. • New signage and landscaping. Relocation of electroliers and other utility poles, if necessary due to roadway widening. (Same as ARB 15) 15. Permittee shall submit improvement plans for the public bicycle/pedestrian path on the PAMF site, along the eastern edge of the site, to comply with applicable City and Caltrans design standards for bicycle paths. The preliminary plans shall be approved by the City Traffic Engineer and the Architectural Review Board prior to issuance of any grading or excavation permits. Final improvement plans shall be submitted to and approved by the Planning Director, the Public Works Director and the City Traffic Engineer, with input from the Utilities Department and the Planning Arborist, prior to issuance of any building permits. Improvement plans shall include, as a minimum, the following provisions: • Landscaping, lighting, fencing, signage. • At least two path connections into the PAMF site. • Transition and connection to the portion of the path extending south from the site. • Continuation of the path along the Urban Lane extension to University Circle, • Maintenance of all features of the portion of the path located on the PAMF site. (Same as ARB 17) 16. No excavation or grading permits shall be issued until the tentative subdivision map is approved and the Public Works Director, consistent with Chapters 12.08 and/or 12.12 of the Municipal Code, authorizes excavation and grading in the public rights-of-way, after PAMF has provided bonding and evidence 03/24/97 −358 of insurance coverage to the satisfaction of the City Attorney. No building permits shall be issued until the final subdivision map is approved and recorded. NEW CONDITIONS 24. Prior to issuance of any occupancy permits(s) by the City, PAMF shall complete all off-site improvements including but not limited to the Urban Lane Extension, improvements along El Camino Real and the new traffic signal at the PAMF driveway. Upon completion of the above said improvements, ownership and title to the traffic signal system shall be vested in Caltrans. 25. Urban Lane Extension shall be maintained by PAMF. PAMF shall allow Caltrans right-of-entry upon its property for maintenance of the traffic signal system. No building permit shall be issued until an agreement has been reached between the relevant parties regarding the maintenance of Urban Lane Extension and the right-of-entry to Caltrans as required above. Findings and Conditions of Approval for Tentative Subdivision Map FINDINGS 1. The proposed map, its design and improvements are consistent with the Palo Alto Comprehensive Plan in that thirteen existing parcels are combined so as to provide a single ownership and a large single parcel for development of an approximate 300,000 square foot medical office, clinic and research facility consistent with the Major Institution/Special Facilities designation for the property. Roadway and other public easements are being provided to improve site and vicinity pedestrian, bicycle and vehicular circulation. 2. The site is physically suitable for approximately 300,000 square feet of medical clinic and research uses on the approximate 9.2 acre site proposed for development in that the site is relatively level, is not subject to flooding or special seismic hazards, and will have previously existing contaminated soil and ground water from the prior gasoline service station on a portion of the site remediated, in a manner consistent with the proposed PAMF uses and facilities, and as required by local and State regulatory authorities. 3. The EIR certified for the proposed PAMF project, including the design of the subdivision and the proposed improvements, found that the project is not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat nor cause serious public health 03/24/97 −359 problems in that no significant fish or wildlife habitat exists on the site due to prior urban development, that on-site erosion control and drainage improvements will adequately protect downstream fish or wildlife habitat, and that the remediation of site soil and ground water previously contaminated by the prior gasoline service station use on a portion of the site has progressed so that grading and excavation can proceed with no unusual measures required during construction and monitoring will continue after completion of construction. 4. The design of the subdivision and its improvements involves vacating public rights-of-way and easements for access through or use of property within the proposed subdivision and dedicating new public rights-of-way and easements that will be substantially equivalent or superior to those vacated. North-south circulation will be improved with the extension of Urban Lane from Encina Avenue to University Circle and the provision of access easements for vehicles, excepting large trucks, at the west entrance oval and Building A parking lot will facilitate vehicular movement to and from El Camino Real, vicinity properties and University Avenue/Palm Drive. Urban Lane will be extended from Encina Avenue to University Circle, with sidewalks provided, improving north-south circulation in the project vicinity. Wells Avenue will be widened, with a new sidewalk to improve pedestrian circulation in the area. An easement will be provided along the eastern portion of the PAMF site for a pedestrian-bicycle path to connect with planned segments to the north and south. 5. The design of the project will not cause public health problems, in that the discharge of waste from the proposed subdivision will meet all City of Palo Alto standards, with many special mitigation measures identified by the certified EIR being required as conditions of approval due to the nature of materials used and encountered at the PAMF facilities. EIR Mitigation Measure D.4 requires that PAMF work with the City’s Division of Public Works Operations/Recycling to design and implement new source reduction, recycling and composting programs. Mitigation Measure D.5 requires PAMF to require demolition and construction contractors to maximize diversion of solid waste materials. Mitigation Measure D.6 requires PAMF to include storage space for its projected rate of production of recyclable and compostable materials. Mitigation Measure G.8 requires PAMF to specify the disposal location of all spoil material taken from the site and to test and dispose any contaminate material in a facility licensed to receive that class of material. Recent consultation with Chevron and its consultants and with Santa Clara Valley Water District staff has led to the conclusion that remediation actions to date have 03/24/97 −360 rendered the site soil and ground water fit for normal grading and excavation activities without need for special testing or handling of spoil materials. Mitigation Measure E.17 requires PAMF to establish a written hazardous waste minimization program prior to occupancy of the new facility. CONDITIONS Public Works 1. No building permits shall be issued until the Final Map is approved by the City Council and recorded with Santa Clara County. 2. Grading and excavation may proceed in advance of recordation of the final map only if the Public Works Director issues permits consistent with Chapters 12.08 and/or 12.12 of the Municipal Code after subdivider provides proof of insurance and bonding to the satisfaction of the City Attorney. 3. Prior to approval of an excavation permit or the final map, whichever occurs first, the subdivider shall submit to Public Works Engineering for review and approval a final grading and drainage plan, including drainage patterns on site and from adjacent properties. The plans shall demonstrate that pre-existing drainage patterns to and from adjacent properties are not altered. 4. Prior to submittal of the final map, the subdivider shall submit improvement plans for the design of the improvements proposed for the public rights-of-way and all public utilities. These improvements shall be installed by the subdivider, at the subdivider’s expense and shall be guaranteed by bond or other form of guarantee acceptable to the City Attorney. All public improvements shall be constructed by a licensed contractor and shall conform to the City’s standard specifications. 5. Prior to final map approval, the subdivider shall enter into an agreement with the City in a form approved by the City Attorney which guarantees the completion of the improvements specified in the tentative map conditions of approval, and shall post a bond or other acceptable security, in an amount determined by the Director of Public Works, as security for performance of this obligation. 6. Prior to the recordation of a final map, the subdivider shall enter into a subdivision agreement with the City of Palo Alto. The agreement shall be recorded with the approved final map at the office of the Santa Clara County Recorder. 03/24/97 −361 7. The subdivider shall pay the City for the services of a project engineer/inspector to insure that street work permits and construction activities are constructed in accordance with approved plans. Public Works staff shall provide an approxi- mate cost of this fee once a construction schedule has been presented by the subdivider and accepted by the Public Works Department. 8. All City easements and rights-of-way as shown on the Tentative Map dated January 6, 1997, with any necessary adjustments required by the Utilities Department, the Public Works Department and the Transportation Division to comply with all City subdivision or other regulations, shall be granted or dedicated by the subdivider. Subdivider shall grant an easement for public vehicular ingress and egress, excluding large trucks, in the west entrance oval and through the lane in the Building A parking lot connecting the entrance oval to Wells Avenue. 9. Subdivider shall arrange a meeting with Public Works Engineer- ing, Utilities Engineering, Planning, Fire and Transportation departments/divisions after approval of the tentative map and prior to submitting the subdivision improvement plans. The improvement plans must be completed by the subdivider, submitted to the Public Works Engineering Division and approved by all affected departments and divisions prior to the subdivider submitting a final map for review and approval. 10. All construction within the City rights-of-way, easements or other property under City’s jurisdiction shall conform to standard specifications of the Public Works and Utilities Departments. Utilities-General 11. All conditions for provision of utilities to the PAMF site and facilities shall be as stated on the tentative map dated 09/10/96 and as required by the Utilities Department. Minor changes to utilities locations may be required by the Tree Protection Program under development by subdivider that must be approved by the City Planning Arborist prior to issuance of any grading and excavation permits. Minor changes to the provision of utilities and easements for utility improvements may be required on the final map as determined by the Director of Utilities depending on conditions encountered. 12. The subdivider shall be responsible for identification and location of all utilities, both public and private, within the 03/24/97 −362 project excavation/grading and construction area. Prior to issuance of grading or excavation permits, the subdivider shall submit to the Public Works and Utilities Departments a plan for discontinuing or maintaining the various utilities on site or adjacent to the site and in the general construction area. Said plan shall be approved by the Public Works and Utilities Departments prior to issuance of grading or excavation permits. 13. Prior to any excavation or grading work at the site, the Subdivider shall contact Underground Service Alert @ (800) 642-2444, at least five (5) work days prior to beginning work. 14. All relocation work required for telephone and cable TV shall be coordinated with and approved by Pacific Bell and Cable Co-op prior to submittal of the final map. 15. Prior to approval and recordation of the final map, the subdivider shall secure a Public Utilities Easement for any utilities installed in private property at or near the PAMF site. If, at the time of filing of the final map, subdivider has not acquired sufficient title or interest in the required public rights-of-way and/or easements to allow construction of the improvements and conveyance of same to the City, the subdivider shall agree to the following: i) Subdivider shall complete the improvements at such time as the City acquires an interest in the land which will permit the improvements to be made, and ii) Subdivider shall pay all costs and expenses of the City related to acquisition of off-site real property interest required in connection with this subdivision. Such costs and expenses shall include, but not be limited to, court costs, appraisal expenses, payment to parties having interests which must be acquired, and legal fees (whether service is rendered by City employees or outside counsel). City may require, as part of the agreement, a deposit and/or posting of other security to guarantee payment by subdivider of all costs and expenses. Utilities (Water-Gas-Wastewater) 16. All water, gas and wastewater improvements shall conform to standard specifications of the Utilities Department and shall be paid for by the subdivider. 17. The subdivider shall maintain all private on-site water utilities within the subdivision boundaries. The water main 03/24/97 −363 utility mains and services that are within the public rights-of-way or public utility easements will be maintained by the City of Palo Alto Utilities Department. Utilities (Electricity) 18. The cost of removal and relocation of existing overhead electric facilities will be borne by the subdivider. 19. City will install at subdivider’s expense all 12KV underground cables necessary for maintaining the overhead lines on Wells Avenue. All substructure required for extending primary lines (12KV) to maintain the overhead lines will be installed by the subdivider. 20. Any easements required for relocating the 60 KV line at Urban Lane shall be procured by the subdivider. 21. Street lights installed by the subdivider on Wells Avenue and Urban Lane, including the extension north to University Circle, shall meet City standards. 22. The subdivider’s schedule and construction plans shall be coordinated with Utilities Department-Electricity to ensure that there are not conflicts between project construction and City construction of the railroad crossing electrical service. Transportation 23. No excavation or grading permits shall be issued unless and until subdivider has provided written evidence to the satisfaction of the City Attorney that agreement has been reached among the relevant parties (PAMF, Stanford, JPB, County Transit and City) regarding design of the extension of Urban Lane from the northern project boundary to University Circle. No building permits shall be issued unless and until subdivider has provided to the satisfaction of the City Attorney the final agreements and/or easements concerning the extension of Urban Lane and subdivider has entered into written agreement with City guaranteeing timely funding and construction of said Urban Lane improvements. 24. Preliminary improvement plans for the extension of Urban Lane from the northern edge of the project site to University Circle shall be submitted to and approved by the Architectural Review Board and City Traffic Engineer prior to issuance of any grading or excavation permits. Final improvement plans for the extension of Urban Lane shall be submitted to and approved by the Planning Director, Public Works Director and Traffic 03/24/97 −364 Engineer prior to submittal of the final map. Improvement plans for the Urban Lane extension shall include, as a minimum, the following elements: • Roadway and bicycle/pedestrian path extensions per the City-approved alternate, including connections to the pedestrian to the bicycle/pedestrian path and roadway on the PAMF site. • Landscaping, lighting, fencing and other amenities. • Connections of the new roadway and bicycle/pedestrian path to University Circle. • Any and all required changes to the Joint Powers Board parking lot. • Accommodation of the new Marguerite bus access/storage area per Stanford’s plans. 25. Preliminary improvement plans for all work on El Camino Real related to the project shall be submitted to and approved by the City Traffic Engineer prior to issuance of any grading or excavation permit. Final improvement plans for all work on El Camino Real shall be submitted to and approved by the City Traffic Engineer prior to submittal of the final map and by Caltrans prior to issuance of any interiors building permits. The Plans shall include as a minimum, the following elements: • Reconfiguration of southbound on-ramp. • New signal installation for PAMF intersection, including separate phase for southbound ramp and hardwire intercon- nection with Embarcadero/El Camino Real signal. The signal controller shall be able to accept a possible future pedestrian phase (refer also to mitigation measure B.4). • Closure of abandoned driveways and streets. • Construction of new five-foot wide sidewalk and five-foot-wide planting strip along project frontage. Due to lack of right-of-way on El Camino Real, part of this construction may be on permittee’s property. If the approved improvement plans show these improvements on a portion of permittee’s property, the Final Map shall include appropriate easements. 03/24/97 −365 • Restriping of El Camino Real and construction of new five-foot wide median and four-to-five-foot wide island separating on-ramp and through lanes. • New signage and landscaping. • Relocation of electroliers and other utility poles, if necessary due to roadway widening. 26. In the section of El Camino Real affected by Condition 24 above and Mitigation Measure B.9a, the minimum widths of the northbound and southbound through lanes and the southbound on-ramp lane shall be at least 14 feet (in order minimally to accommodate bicycle traffic), with 15 feet preferred. 27. Subdivider shall submit improvement plans for the public bicycle/pedestrian path on the PAMF site, along the eastern edge of the site, to comply with applicable City and Caltrans design standards for bicycle paths. The preliminary plans shall be approved by the City Traffic Engineer and the Architectural Review Board prior to issuance of any grading or excavation permits. Final improvement plans shall be submitted to and approved by the Planning Director, the Public Works Director and the City Traffic Engineer, with input from the Utilities Department and the Planning Arborist, prior to submittal of the final map. Improvement plans shall include, as a minimum, the following provisions: • Landscaping, lighting, fencing, signage. • At least two path connections into the PAMF site. • Transition and connection to the portion of the path extending south from the site. • Continuation of the path along the Urban Lane extension to University Circle, • Maintenance of all features of the portion of the path located on the PAMF site. 28. The subdivider has consulted with the City, Stanford University, Caltrans, and Santa Clara County Transit Agency concerning the feasibility of constructing southbound and northbound bus stops on El Camino Real near the new signalized PAMF entrance. Both bus stops have been found to be feasible by the parties identified above, and the subdivider shall design, construct and fund the bus stop amenities, signal 03/24/97 −366 modifications for the pedestrian crossing, crosswalk (including short connecting sidewalk on the west/Stanford side of El Camino Real), and on-site connecting sidewalks. The northbound bus stop will require a pullout to be constructed on PAMF property and easements granted to the appropriate public agency consistent with the dimensions of the pullout. The subdivider shall be responsible for ongoing maintenance of the northbound bus stop and related improvements for the life of the project. 29. Prior to issuance of any occupancy permits(s) by the City, subdivider shall complete all off-site improvements including but not limited to the Urban Lane Extension, improvements along El Camino Real and the new traffic signal at the PAMF driveway. Upon completion of the above said improvements, ownership and title to the traffic signal system shall be vested in Caltrans. 30. Urban Lane Extension shall be maintained by PAMF. PAMF shall allow Caltrans right-of-entry upon its property for maintenance of the traffic signal system. No building permit shall be issued until an agreement has been reached between the relevant parties regarding the maintenance of Urban Lane Extension and the right-of-entry to Caltrans as required above. Planning 31. The mitigation measures identified in the Mitigation Monitor- ing and Reporting Program, adopted as Attachments N and O with the January 29, 1996, City Council approvals of the project, are incorporated hereby as conditions of tentative map approval. 32. The design of new curb and sidewalks to be installed along the south side of Wells Avenue shall avoid any detrimental impact on the mature oak located there. Similar design consideration shall be given to the mature pepper tree located on the historic Greer property adjacent to the southern end of the proposed north-south connector road. The design of these street improvements and provisions for protection of these significant trees shall be reviewed and approved by the City Planning Arborist prior to issuance of any excavation or grading permits and shall comply with Chapter 8.10 of the Municipal Code. 33. Chapter 8.10 of the Municipal Code regarding tree protection shall apply to any qualifying trees located on the project site or affected by project construction that were not authorized for removal by the City Council’s 1/29/96 approvals of the PAMF Urban Lane Campus project. 03/24/97 −367 34. The Improvement Plans shall include the location and specifi- cations of the above-ground pad-mounted utility equipment consistent with the locations and specifications shown on plans dated January 6, 1997 as preliminarily approved by the ARB and subject to final approval by the Director of Planning and Community Environment and Utilities Engineering to insure adequate screening, where required, for said improvements. Findings and Conditions for Modifications to Architectural Review FINDINGS 1. The proposed PAMF Urban Lane Campus and the recommended changes to existing ARB conditions of approval meet the goals and purposes (Section 16.48.010) of the Architectural Review Ordinance, Chapter 16.48 of the Palo Alto Municipal Code, in that: a. Orderly and harmonious development will result from approval of the project which has an integrated design with numerous buildings of similar architectural styles and qualities. b. Approval of the consolidated PAMF Campus will provide a local modern medical clinic facility for residents of Palo Alto and surrounding communities, involving substantial investment by the Foundation and possibly triggering increased investment by the vicinity property owners into existing or future improvements. c. Prior to the PAMF consolidation of the thirteen separate parcels comprising the Urban Lane Campus site, use of the land and improvements was scattered among several unrelated uses without uniform design or coordinated use of such strategically located property on El Camino Real. d. Employees, patients, and visitors to the PAMF Urban Lane Campus will experience more efficient, safe and aestheti- cally pleasing facilities than those currently utilized in the downtown area because all structures will meet current building code requirements and have been uniformly designed as a single coordinated medical clinic and related research complex. e. The approved design will create a noteworthy institution in a highly visible location on El Camino Real and a new extension of Urban Lane from University Circle to Encina Avenue; and 03/24/97 −368 2. The PAMF Urban Lane Campus would, as modified by conditions of approval and revised conditions of approval, meet all fifteen standards for architectural review contained in Section 16.48.120 of the Municipal Code, in that: a. The proposed project is consistent and compatible with the applicable elements of the City’s Comprehensive Plan. b. The design of the project is compatible with the immedi- ate environment of the site if mitigations to ease transitions to adjacent properties are implemented consistent with the conditions of approval. The project design insures that drainage will not flow toward the Palo Alto Pet Hospital on Wells Avenue. The PAMF Urban Lane Campus proposal has been found by the certified EIR to provide sufficient on-site parking so that parking at vicinity sites, such as the Pet Hospital, will not be adversely affected. Regarding the proposed project’s relationship to adjacent properties on Encina Avenue, conditions of approval relating to wall, fence and landscape design and to light/glare and noise attenuation along the south boundary of the PAMF site will ensure that no adverse effects would result from the PAMF Urban Lane project. c. The design of the proposed improvements is appropriate to the medical clinic and related research land use and functions proposed for the PAMF Urban Lane site. The project has been designed to provide PAMF a large, consolidated and modern campus, with a design that is urban in form and scale as viewed from El Camino Real and the proposed north-south extension of Urban Lane. d. The subject property is not located in an area which has a unified design or historical character. However, the project design is generally in keeping with the recommen- dations of the El Camino Real Design Guidelines (ARB, November 1979) in that street trees are being provided along El Camino Real; several existing trees are being preserved and will be protected during construction; the buildings are set back from El Camino Real, with land- scaping provided and parking screened; and all building elevations have an integrated architectural character. Further, appropriate mitigating measures will be imple- mented to screen the project from the historic Greer property. e. The project design would promote harmonious transitions in scale and character between different designated land 03/24/97 −369 uses if the conditions of approval referenced in (b) above are implemented. Proposed front building setbacks and landscaping are appropriate for the existing character of this segment of El Camino Real in north Palo Alto where there are other large institutions and campuses, such as the Stanford Shopping Center, Stanford University, Holiday Inn, Town & Country Village and Palo Alto High School. Transitions to the north and south at Wells Avenue-Urban Lane and the south service road adjacent to properties on the north side of Encina Avenue will be harmonious with implementation of the mitigations and conditions referenced in (b), above. f. The design of the project is compatible with improvements both on site and off site. The project involves the removal of several dated retail and industrial buildings and uses, which designs has not been compatible with each other or with vicinity uses such as the Holiday Inn and Town & Country Village. The large PAMF Campus site will be developed with a unified design, upgrading the site’s appearance and value. The PAMF project’s transitions to adjacent properties and improvements will be acceptable with implementation of the conditions of approval referenced in (b), above. g. The planning and siting of the proposed campus functions and buildings create an internal sense of order in that the buildings proposed for immediate construction (Buildings A, B and C) relate well to each other and the parking proposed to serve the various campus uses. Additionally, the Urban Lane Campus design relates well to the new north-south connector (Urban Lane) which will improve site and vicinity access by providing a new link between Encina Avenue to the south and University Circle to the north. Occupants, visitors and the general community will all benefit from that and other improvements associated with the PAMF project. Improvements to Wells Avenue and the new signalized entrance will provide better circulation and access on-site and for vicinity properties by providing more vehicular circulation options. Pedestrian and bicycle circulation is also improved with the provision of the pedestrian-bicycle path along the eastern edge of the campus, with connections serving the proposed PAMF buildings and paths to the Urban Lane Extension to the north and the City path project planned to the south. h. The amount and arrangement of open space are appropriate to the design and the function of the PAMF structures. 03/24/97 −370 Open spaces designed for employee and patient use are appropriate for a diverse urban facility such as the PAMF Campus, being composed of many different elements in the front entrance area, the Building B and C court/atrium and the extensive public use areas provided along the north-south connector and at major entrances to Buildings A, B and C. Landscaped areas are concentrated along El Camino Real to provide a campus look for the facility and scattered throughout the various open areas on the site, with particular attention to providing an urban street scape along the north-south connector (Urban Lane). i. The project proposes sufficient ancillary functions to support the main functions of the project because the PAMF Campus will serve as a freestanding facility, providing most of its own support services. Significantly, the Campus will rely on “just-in-time” deliveries to the service areas, whereby most supplies are stored off-site by suppliers and delivered by small trucks on an as-needed basis. This type of supply delivery system virtually eliminates large truck deliveries and the need for significant on-site supply storage space. The designs of Building A and C service areas are compatible with the implementation of conditions of approval regarding hours of operation and the fencing and landscaping required on the south side of the Building C service road. j. The access to the property and circulation thereon are safe and convenient for pedestrians, cyclists and vehicles because through-site and on-site circulation is provided for all modes of transportation. Sidewalks are provided along El Camino Real, Wells Avenue, the north-south connector and internal to the project between buildings and parking areas. Bicycle paths are provided along the east side of the property and connecting into the Campus. Adequate lane widths are provided on El Camino Real for safe bicycle use there. Service circulation by large trucks is restricted from the entrance oval, with the north-south connector and south service road accessing Building A and C loading areas. k. Natural features are notably absent from the site, with the exception of a few trees. Those trees have been evaluated by a qualified horticulturist, with several being included in the project design and others being removed but replaced with new project landscaping of comparable value. 03/24/97 −371 l. The materials, textures, colors and details of the proposed buildings, in addition to proposed and required landscaping, establish a project design that is compati- ble with adjacent and neighboring structures, landscape elements and functions. The proposed building design would be a significant improvement over the mix of diverse building architecture, including several metal buildings, which occurred on the site prior to consolidation by PAMF of thirteen separate parcels and the subsequent demolition of the buildings. It is likely that there would be upgrading and possibly redevelopment of the adjacent properties after development of the PAMF Campus. m. The landscape design concept as proposed and as modified by conditions of approval creates a desirable and functional environment both for PAMF employees and patients and for those members of the general public who may have occasion to facility and scattered throughout the various open areas on the site, with particular attention to providing an urban street scape along the north-south connector (Urban Lane). n. The proposed plant materials are generally suited and adaptable to the site, with preliminary plant selections reviewed by the City Planning Arborist and the ARB and final plant selections to be subject to City Planning Arborist approval prior to issuance of building permits. The plant materials and proposed irrigation systems will comply with all City requirements for drought-resistance and low water consumption. o. The project would result in greater energy efficiency than would otherwise be easily achievable at the older PAMF facilities in the downtown area. Retrofitting for energy efficiency is more difficult than designing a new building to comply with applicable local and State energy requirements. 3. The modifications to the ARB approval would affect only the timing of grading and excavation permits and minor other aspects of the following conditions, not changing any of the findings made in conjunction with the original approval of the project by the Palo Alto City Council in January 1996. MODIFIED CONDITIONS 4. As part of the annual mitigation monitoring report to the City, the permittee shall survey on-site parking occupancy and vacancy, including bicycle parking, distributed by patient and 03/24/97 −372 employee parking spaces, during peak hours on three consecutive work days (Tuesday-Thursday) and provide this data to the Director of Planning and Community Environment for consideration relative to the deferred parking approval. (Same as UP 7) 8. The design of new curb and sidewalks to be installed along the south side of Wells Avenue shall avoid any detrimental impact on the mature oak located there. Similar design consideration shall be given to the mature pepper tree located on the historic Greer property adjacent to the southern end of the proposed north-south connector road. The design of these street improvements and provisions for protection of these significant trees shall be reviewed and approved by the City Planning Arborist prior to issuance of any excavation or grading permits and shall comply with Chapter 8.10 of the Municipal Code. 13. No excavation or grading permits shall be issued unless and until permittee has provided written evidence to the satisfac- tion of the Director of Planning and Community Environment in a form approved by the City Attorney that agreement can be reached among the relevant parties (PAMF, Stanford, JPB, and City) regarding design of the extension of Urban Lane from the northern project boundary to University Circle that is consistent with the certified Final EIR and the January 1996 approvals by the City Council. No building permits shall be issued unless and until permittee has provided in a form approved by the City Attorney the final written agreements and/or easements concerning the extension of Urban Lane and permittee has entered into written agreement with City guaranteeing timely funding and construction of said Urban Lane improvements. (Same as UP 11) 14. Preliminary improvement plans for the extension of Urban Lane from the northern edge of the project site to University Circle shall be submitted to and approved by the Architectural Review Board and City Traffic Engineer prior to issuance of any grading or excavation permits. Final improvement plans for the extension of Urban Lane shall be submitted to and approved by the Planning Director, Public Works Director and Traffic Engineer prior to issuance of any building permits. Improvement plans for the Urban Lane extension shall include, as a minimum, the following elements: • Roadway and bicycle/pedestrian path extensions per the City-approved alternate, including connections to the pedestrian to the bicycle/pedestrian path and roadway on the PAMF site. 03/24/97 −373 • Landscaping, lighting, fencing and other amenities. • Connections of the new roadway and bicycle/pedestrian path to University Circle. • (Omitted) • Any and all required changes to the Joint Powers Board parking lot. • Accommodation of the new Marguerite bus access/storage area per Stanford’s plans. (Same as UP 12) 15. Preliminary improvement plans for all work on El Camino Real related to the project shall be submitted to and approved by the City Traffic Engineer prior to issuance of any grading or excavation permit. Final improvement plans for all work on El Camino Real shall be submitted to and approved by the City Traffic Engineer prior to issuance of any building permits and by Caltrans prior to issuance of any interiors building permits. The Plans shall include as a minimum, the following elements: • Reconfiguration of southbound on-ramp. • New signal installation for PAMF intersection, including separate phase for southbound ramp and hardwire intercon- nection with Embarcadero/El Camino Real signal. The signal controller shall be able to accept a possible future pedestrian phase (refer also to mitigation measure B.4). • Closure of abandoned driveways and streets. • Construction of new five-foot wide sidewalk and five-foot-wide planting strip along project frontage. Due to lack of right-of-way on El Camino Real, part of this construction may be on permittee’s property. If the approved improvement plans show these improvements on a portion of permittee’s property, the Final Map shall include appropriate easements. • Restriping of El Camino Real and construction of new five-foot wide median and four-to-five-foot wide island separating on-ramp and through lanes. • New signage and landscaping. 03/24/97 −374 • Relocation of electroliers and other utility poles, if necessary due to roadway widening. (Same as UP 13) 17. Permittee shall submit improvement plans for the public bicycle/pedestrian path on the PAMF site, along the eastern edge of the site, to comply with applicable City and Caltrans design standards for bicycle paths. The preliminary plans shall be approved by the City Traffic Engineer and the Architectural Review Board prior to issuance of any grading or excavation permits. Final improvement plans shall be submitted to and approved by the Planning Director, the Public Works Director and the City Traffic Engineer, with input from the Utilities Department and the Planning Arborist, prior to issuance of any building permits. Improvement plans shall include, as a minimum, the following provisions: • Landscaping, lighting, fencing, signage. • At least two path connections into the PAMF site. • Transition and connection to the portion of the path extending south from the site. • Continuation of the path along the Urban Lane extension to University Circle, • Maintenance of all features of the portion of the path located on the PAMF site. (Same as UP 15) 31. Prior to issuance of building permits, the permittee shall consult with the Hazardous Materials Inspector, and prior to the issuance of interiors building permits the permittee shall submit to the Fire Department a Hazardous Materials California Quality Act (CEQA) checklist and permit fee (Sec. 12.08.010). 52. Preliminary landscaping, lighting and signage plans shall be submitted for ARB review and approval prior to issuance of excavation or grading permits. Final landscaping, lighting and signage plans shall be submitted for Planning Director, City Traffic Engineer and Planning Arborist review and approval prior to issuance of interiors building permits. Key components of these submittals shall include the following: a. Final landscape plans shall include number, size, height and location of trees and plant material to be installed 03/24/97 −375 and include the final status of trees to be saved and removed. b. Landscaping and lighting design solutions for the Building A/Building C service docks shall be submitted. Building A’s elevated service dock entry shall be adequately screened to reduce visibility from Wells Avenue and Urban Lane. Building C’s service dock and drive will create noise, lighting and visual impacts for properties along Encina Avenue which will require installation of trees for screening and fencing for noise attenuation along the southern edge of the service drive. Lighting shall be installed that is not directed onto adjacent or vicinity properties. c. Detailed landscaping, fence and retaining wall design details shall be provided for the portion of the project area bordering properties on Encina Avenue. These plans shall provide high quality building materials, trees, and plan materials that will provide significant screening of these properties as well as an aesthetic buffer. d. The on-street parking and sidewalk shown on sheet 9I dated 11/27/95 along the east side of the north-south connector road between Encina Avenue and the intersection with the southern service drive shall be revised to remove on-street parking and provide planting strips including street trees and sidewalks on both sides of the street. (Dimensions of the landscape strips and sidewalks may be adjusted somewhat to accommodate the large pepper tree on the Greer property.) e. The section showed on sheet 9G dated 11/27/95 shall be modified to replace the retaining wall with a landscaped 2:1 slope. Fill in this area must be kept outside the canopy of the large oak tree (#20, Sheet 15) located on the Wells Avenue property line. f. Detailed plans for each public plaza including curbing, bollard and paving designs, sun/shade analysis, seating areas, kiosk design if any, trash receptacles, signage, electrical outlets and other support facilities for outdoor public activities shall be provided. g. Detailed plans showing the dimensions, adequacy of soil volume and drainage for tree wells over the parking garage shall be provided. 03/24/97 −376 h. The signage program shall include off-site signage along University, Alma, Embarcadero and Palm Drive to direct PAMF patients to the University Circle and Encina Avenue entrances to the site. i. Detailed plans shall be provided showing fencing and landscaping within the approximate 5-foot strip along the south property line between El Camino Real and the north-south connector. j. Plans shall show how electrical outlets will be provided for electric vehicles used by PAMF employees. 58. The permittee shall submit a concept proposal for a significant art program for consultation with the Public Art Commission and then for ARB review and approval prior to issuance of excavation or grading permits. Prior to issuance of interiors building permits, the permittee shall have consulted with the Public Art Commission and gained approval by the ARB of the final art program, including a schedule for installation of the art program components. The seven components of the art program approved by the ARB on March 6, 1997 included: a. A freestanding sculpture at the east entrance to Buildings B and C. b. An art component in the paved garden plaza and related improvements east of the east entrance to Buildings B and C. c. Four benches designed by artists for the western loggia area. d. The medallions on the west and east elevations of the buildings. e. Art components in the underground parking structure. f. Art components in the pediatric area. g. An ongoing art program for the PAMF Urban Lane Campus. Occupancy of the project shall not be allowed unless and until installation of components a through f above is substantially complete, as determined by the Director of Planning and Community Environment. Components a through f of the approved art program shall be fully installed no later than six (6) months following initial occupancy. 03/24/97 −377 Council Member Schneider was pleased to see the project in its final phases. Council Member Wheeler asked the City Attorney whether the ARB art condition was appropriate for inclusion since it was approved by the applicant. Mr. Calonne said yes. Council Member Wheeler believed the applicant was probably correct when he said the large number of people who biked to the site would use the paths and the off road facilities being constructed by the applicant and the City. The placement of the most convenient bicycle parking in the area most convenient to the bicycle path was probably correct. The bicyclists should be encouraged to use the safest facilities rather than use El Camino Real. Given the Planning Commission discussion and the appropriate conditions it imposed on the monitoring of the bicycle parking in the front loggia area, and if the need arose, additional parking could be provided in front, she believed the initial focus was correct. Council Member Rosenbaum said clearly the PAMF had displayed art on a volunteer basis, and he did not believe the City had the statutory right to require it as a condition. AMENDMENT: Council Member Rosenbaum moved that the Condition regarding the provision of interior art be deleted. AMENDMENT FAILED FOR LACK OF A SECOND Council Member Eakins said the map reflected a couple of places for people to get off El Camino Real so they would not have to go through the loggia area and all around. There looked to be alternative routes so that someone coming from the Stanford direction could secure the bicycle parking closer to El Camino Real in the 12 lockers or go on around toward Building A where there were 16 racks. She believed the bicycle parking distribution around the entrances was adequate. MOTION PASSED 7-0, McCown “not participating,” Kniss absent. 5D. (Old Item No. 10) PUBLIC HEARING: Vacation of Street Rights of Way and Public Utilities Easement - Palo Alto Medical Foundation Urban Lane Site Council Member McCown would not participate in the item because of a conflict of interest due to the fact that the applicant was a client of her law firm. 03/24/97 −378 Mayor Huber declared the Public Hearing open. Receiving no requests from the public to speak, he declared the Public Hearing closed. MOTION: Council Member Wheeler moved, seconded by Andersen, to approve the staff recommendation that the Council: 1. Make the following findings: a. The Project will have no significant effect on the environment, as shown in the Environmental Impact Report which the City Council approved on January 29, 1996; and b. The streets and public utilities easement are not necessary for present or prospective public use, in that: i) The proposed project includes dedication of new public rights-of-way and easements as necessary to serve the project and properties in the vicinity; and ii) The Environmental Impact Report prepared for the project concludes that replacement of existing street pattern with the proposed new public streets including the extension of Urban Lane, would bene- fit the general public. 2. Adopt the Resolution ordering the vacation of street rights-of-way and a public easement on the Palo Alto Medical Foundation (PAMF) development site; and 3. Authorize the Mayor to sign the deed granting property to PAMF. Resolution 7657 entitled “Resolution of the Council of the City of Palo Alto Ordering Vacation of Public Street and Utilities Easements on the Palo Alto Medical Foundation Development Site at 795 El Camino Real” Grant Deed Conveying Portions of Homer Avenue and Urban Lane to the Palo Alto Medical Foundation MOTION PASSED 7-0, McCown “not participating,” Kniss absent. RESOLUTIONS 5E. (Old Item No. 13) Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1996-97 to Provide an Additional Appropriation for Capital Improvement Project 19406, Rinconada Pool Site Improvements, for Replacement of the Children’s Pool 03/24/97 −379 City Manager June Fleming realized Council was not accustomed to receiving such a large budget amendment request at that time of year. The action before the Council was twofold. While it was a budget amendment, it was also a decision about whether Council wanted a children's pool to remain at Rinconada Pool. As staff considered the attendance patterns at Rinconada Pool, it was a family-oriented park, and children used the pool. While she was pleased with staff's extensive investigation, she was dismayed to learn the pool could not be repaired. The option was either to fill it in or repair it. The reason she made the unusual choice to bring the matter before the Council at that time was that budget hearings were upcoming. If the item waited until July after Council approved the budget, the next swim period would be missed. Changes were currently being undertaken to address some more pleasing aesthetics and play activities in the pool at minimal costs. Mayor Huber declared the Public Hearing open. Receiving no requests from the public to speak, he declared the Public Hearing closed. MOTION: Council Member McCown moved, seconded by Andersen, to approve: 1) the Budget Amendment Ordinance in the amount of $400,000 to fund the replacement of the Rinconada Children’s pool and 2) the CIP description for Rinconada Pool Improvements, CIP 19406. Ordinance 4407 entitled “Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1996-97 to Provide an Additional Appropriation for Capital Improvement Project 19406, Rinconada Pool Site Improvements, for Replace- ment of the Children’s Pool” Council Member McCown believed the function of the pool and the timing warranted the exception of a budget amendment ordinance rather than folding it into the budget. She understood the reasoning, and an exception was appropriate. Vice Mayor Andersen agreed with Council Member McCown. MOTION PASSED 8-0, Kniss absent. RECESS TO CLOSED SESSION AT 9:02 P.M. - 9:17 P.M. The City Council met in a Closed Session to discuss matters involving existing litigation as described in Agenda Item No. 4A. Mayor Huber announced that no action was taken on Agenda Item No. 4A. REPORTS OF OFFICIALS 03/24/97 −380 6. PUBLIC HEARING: The City Council will consider an appeal of the Zoning Administrator’s decision for a Conditional Use Permit 96-UP-5, allowing live entertainment, including music and dancing, at an existing restaurant (Q-Billiards), located at 529 Alma Street (continued from 3/3/97) Mayor Huber would not participate in the item due to a conflict of interest. Zoning Administrator Lisa Grote said the appeal was the result of a use permit approval she granted for live music in an existing cafe/restaurant and billiard facility. The original request was for live entertainment seven days a week beginning at 9:00 a.m. and ending at 2:00 a.m., including lunch, dinner, and after dinner hours. Her approval granted live entertainment three nights a week, Thursday, Friday and Saturday evenings beginning at 9:00 p.m. and ending at 1:30 a.m. There were two appeals of the decision: one from the applicant due to a disagreement with several of the 23 conditions of approval as outlined in the staff report (CMR:131:97) and one from a neighbor based on the belief that the use was inappropriate in the downtown area and would be detrimental to the surrounding land uses. The Planning Commission heard the appeal and conducted a public hearing on two evenings. Ultimately, the Commission recommended the Zoning Administrator's approval be upheld with several modifications to the conditions of approval. The Commission recommended eliminating Condition 13 regarding the internal vestibule. She had attached the condition to insure a closed door situation so that noise would not escape as doors were opened and closed as people entered and exited the facility. The Commission did not believe the condition would be needed with the addition of Condition 23 regarding a sound monitoring device which would keep the decibels at the interior of the facility to an average of 90 decibels which would ensure compliance with the noise ordinance. The Commission also recommended the addition of Conditions 24 and 25 to augment the security program and the patron educational program. The Commission also recommended modification of Condition 5 which would require a Zoning Administrator review after 6 months rather than the 12 months she originally attached and allow a maximum of two infractions in that 6-month period rather than three in the 12-month period she initially attached. The Commission also recommended a modification to Condition 2 to end live music on Friday and Saturday at 11:30 p.m. and midnight on Thursday and end the service of alcohol at 1:00 a.m. on Friday and Saturday and midnight on Thursday. The Commission did not specifically mention whether it intended to limit only live music or live music and the disc jockey (DJ) music. When she originally attached the condition, she specifically called out recorded music played by a DJ. In her mind, she thought of an event in which the DJ was actually part of the performance and an attraction in and 03/24/97 −381 of themselves. Condition 15 was corrected to reflect the Planning Commission's recommendation. There were questions throughout the appeal hearing about the noise analysis and the standard applied. Those clarifications were provided as part of the Planning Commission hearing. The staff recommended upholding the Zoning Administrator's approval and supporting the Planning Commission's modifications with the exception that staff supported the inclusion of Condition 13 which required the internal vestibule and that performance of DJ recorded music be limited as was live music. Planning Commission Chairperson Phyllis Cassel understood live music was band music that would attract a larger audience. In terms of the sound and noise, there was agreement regarding the monitoring being in place at all times when any kind of music was being played to ensure compliance with the noise ordinance. The Commission did not recommend the vestibule because the doors opened directly toward the tracks on Alma Street rather than back toward the facility, and the majority of the noise would not be heard from that direction. Further, modifications were made to the roof and open areas of the roof to try to limit the sound. Council Member Schneider asked what constituted a night club; whether the City had any way of limiting the number of night clubs in a specific area, and if not, whether the number could be limited. She also asked whether the City had a policy regarding night clubs in the downtown area. Chief Planning Official Nancy Lytle said the City's ordinance did not define night clubs, and they were not allowed as a use in the City's zoning. Restaurants were allowed, and drinking was permitted with a conditional use permit. Live entertainment was also an allowable use only in conjunction with restaurants. A night club use was not permitted under Palo Alto zoning. Council Member Schneider clarified a night club would be a club which did not serve food. Ms. Lytle said that was essentially where Palo Alto's definition precluded what would normally be considered as a night club because the primary use was restaurant. Council Member Schneider queried whether Palo Alto limited the number of restaurant uses in the downtown area which served food and played live music. Ms. Lytle said there was a limitation on the number of alcoholic beverage permits which could be issued within a radius of one another and within certain blocks, but there was no provision in the ordinance which limited live entertainment. 03/24/97 −382 City Attorney Ariel Calonne said if one accepted that drinking and live entertainment constituted a night club, then the conditional use permit process was designed precisely to control that type of use. In effect, Council had the authority to use the conditional use permit process to limit the total number of "night clubs" within a given area based on the compatibility and Comprehensive Plan consistency findings which would need to be made to approve a conditional use permit. Use permits could limit the length of time which a particular use was assured of being allowed. There was a leaning toward that with Condition 15 which required the Zoning Administrator review. While Condition 15 did not say the City could rethink the use in six months or a year, it did say if a violation existed. The City had jurisdiction to initiate revocation proceedings. He suggested Council consider the option of using a time limitation on the life of the conditional use permit where upon its expiration, the applicant could reapply. That tool was available. Council Member Schneider asked specifically what constituted a violation. Mr. Calonne said it could be a violation of the conditions of approval or the noise monitoring requirements. Council Member Schneider clarified it would require a neighbor or someone in the area complaining about loud noise which in turn would cause the situation to be checked. She clarified three violations in six months would lead to a permit revocation process even with a five-year sunset clause on the permit. Ms. Grote had attempted to define a noise violation at the end of Condition 15 by saying officially documented infractions were ones in which the Palo Alto Police Department had actually done noise readings and confirmed the excess of noise which meant the use was out of compliance. The wording said the permit could be revoked with two or more officially documented infractions. The permit would be called up for review, and there might still be the opportunity to modify the conditions, permit, or operating conditions rather than revocation. Mr. Calonne said the violations were a separate opportunity for the City to start revocation proceedings. The City would bear the burden of showing that a violation had existed, and it could be hotly contested. The question about a time limitation really turned on whether the City wanted to retain the authority to review the number, location, and other factors associated with the live music venue in the downtown. While the time limitation was traditionally used, the City shied away from it in some instances because of the time 03/24/97 −383 and expense involved. The legal effect was to prevent the site from gaining a vested right to maintain live music subject to revocation. If a time limitation were not included, when the premises changed hands, the use permit went with it, and a vested right was acquired subject to the conditions in the permit to maintain live music at the site. He believed the old 42nd Street location was an old live music use permit which had existed for a long time. Council Member Fazzino asked which noise provisions were applicable, e.g., residential or commercial. Mr. Calonne said the commercial standard was consistently applied. Council Member Fazzino said since Council struggled with the Edge situation about a year ago, he was interested in staff's perspective regarding how the subject issue was similar to and/or different. Police Agent Patty Stone said from the Police Department perspective, since April 1, 1996, there were 225 calls for service at the Edge. Of those, 8 were specifically for loud music. At the Q Cafe there were 32 calls for service, and 7 were for loud music. The Edge involved a much wider range of calls, and 39 were serious arrests, e.g., batteries and assault with deadly weapons. The situations were only similar in terms of the calls for loud music. Ms. Grote said many of the conditions she originally attached as part of her approval and the added Planning Commission conditions were modeled on the Edge and what had been done there. Patron education, security guard, monitoring the area, and helping people find places to park were programs modeled on what had occurred and been successful at the Edge. There were some differences between the two establishments in that the Edge stayed open until 3:00 or 4:00 a.m., and the Q Cafe was not requesting to stay open that late. The Edge had music many more days of the week than what was recommended for approval at the Q Cafe. There was probably a difference in the type of entertainment as well. Council Member Fazzino queried whether many of the problems were associated with the 2:00 a.m. to 4:00 a.m. period at the Edge. If the Edge closed at 1:00 a.m. or 2:00 a.m., he asked whether the same problem reports would exist. Ms. Stone believed the problem at the Edge were widespread but not directly related to 2:00 a.m. to 4:00 a.m. The problems ranged anywhere from midnight to 4:00 a.m. Council Member Fazzino said the additional two hours the Edge was open was not a significant factor in terms of the increased incidence of problems. 03/24/97 −384 Ms. Stone said the later closing was intended to let people stop drinking, sober up, and move out of the club over a longer period of time. The later time was not significantly related to the number of calls for service, but there were still calls during that time period. Council Member Fazzino queried whether on balance the Police Department believed the City had been successful in resolving the issues and concerns associated with the Edge since the conditions enacted one and one-half years before. Ms. Stone said the City was initially successful. Things had continued to mount, and the calls for service had grown. Council Member Fazzino queried whether the Edge might return to the Council. Ms. Stone said it was a possibility. Council Member McCown referred to eating and drinking establishments in the downtown area which were open until late hours and queried to what extent the Police Department had received complaints of noise and behavior associated with departing patrons. She queried how such behavior was manifesting itself downtown. Ms. Stone said one comparison club might be Fanny & Alexander's. The Police Department received a higher number of calls for service during the years, but only two were for loud music. While calls for service to Fanny & Alexander's were somewhat similar to the Edge in terms of batteries and fights, etc., they were not on as grand a scale. Council Member McCown queried whether the fights involved people who had left the premises and were fighting in the parking lot. Ms. Stone said fights involved people who had not gained entry and were denied access, people in the parking lots, and people who had been drinking. Council Member McCown said given the overall mix of such facilities downtown, she queried the problem was generalized in terms of late night conduct of people leaving establishments who had too much to drink, got into fights, etc. Ms. Stone did not believe it was a generalized problem but rather one which had occurred from time to time. The biggest problems were with Fanny & Alexander's and recently with the Q Cafe. Some of the 03/24/97 −385 smaller bars, such as Rudy's, had a few calls, but it was not a generalized problem at all. Council Member McCown queried whether there were any other examples downtown where use permits had the conditions of education, etc. Ms. Grote said the closest example downtown was Paradis, which began as 42nd Street. The use permit was modified several years prior to include several of the types of conditions recommended in the subject use permit. Council Member McCown queried the City's experience regarding a change in the number of problems with the attachment of the educational conditions. Ms. Stone said Paradis was very good in terms of police related calls. Very few calls for service for noise and music were received. Council Member Rosenbaum asked whether Gordon Biersch had at one point applied for live music. He was also interested in the Blue Chalk. Ms. Grote said Gordon Biersch had actually applied for several temporary use permits over the past couple of years which allowed it to have live music on a Friday or a Saturday night for a defined period of time. Gordon Biersch had not applied for a permanent use permit to allow live music. The temporary use permits had been approved. While she deferred response regarding whether the Blue Chalk had applied for a temporary use permit for live music, it did not have a permanent use permit which allowed it to have live music. Council Member Rosenbaum asked whether a temporary use permit was good for one night or one weekend. Ms. Grote said it was usually good for one night. Sometimes it was for a Mardi Gras or Cinco de Mayo event. Council Member Rosenbaum regarded Gordon Biersch, the Blue Chalk, and Q Cafe as similarly sized large establishments with a lot of people milling around on Friday and Saturday nights. If Council provided a permanent use permit for live music for one, he queried whether it would be under any special obligation to do so for the other two. Mr. Calonne said no. Council would have to evaluate each applica- tion based on the information at that time. While the permit could not be prejudged, Council would be under no obligation to issue it. 03/24/97 −386 Vice Mayor Andersen declared the Public Hearing open. Cheryl Young, attorney, 529 Alma Street, represented Q Cafe. She apologized to the City on behalf of the Q Cafe for the unintended violation of its temporary use permit by continuing to have live music after the temporary use permit expired. The Q Cafe was a restaurant and billiard use which desired to complement its casual dining atmosphere with live music. Q Cafe intended to offer jazz, blues, and soft rock music rather than the loud, hard rock music at the Edge, and patrons at the Q Cafe were a minimum of 21 years of age while the Edge patrons were a minimum of 18 years of age. She believed the Edge was located about 100 yards away from residences while the Q Cafe was a greater distance. While there were some residential facilities in the area, it was primarily commercial. The Q Cafe wanted to add to Palo Alto's diversified night life in the downtown by including live music which she believed was consistent with the proposed downtown urban development and the Comprehensive Plan. Q Cafe also wanted to be a place where Palo Alto musicians could perform as well as top-of-the-line and award-winning musicians from the Bay Area. Two areas of the building were identified as places where noise could escape, e.g., the skylights and the front doors. Mitigations included double paning all the skylights, weather stripping to seal all gaps in the front doors panel area, and the front doors which were adjusted to automatically close so they would always return to the closed position thereby eliminating the need for a vestibule. The two issues before the Council were whether there was a noise problem and whether patrons would cause a disturbance to its neighbors. The area was busy with many businesses and people on the street, and while she did not doubt the Plaza residents experienced noise problems, there was a question about whether the noise originated at the Q Cafe. The acoustical reports indicated that Q Cafe met Palo Alto's noise ordinance. The second report in response to Ms. Baigent's letter of January 30, 1997 (on file in City Clerk Office), reflected measurements taken at the skylights with the doors opened and closed, and Q Cafe met Palo Alto's noise ordinance at both the front door and top roof property line at 1:00 a.m. with an average of 90 decibel music inside with a range of 84 to 94 decibels and peaks at or below 97 decibels. The report also stated that whether the front door was opened or closed had no impact on the Palo Alto Plaza because there was less than one decibel difference at the rooftop property line directly facing the plaza. There was no record of a noise ordinance violation issued to the Q Cafe, and while she heard there had been seven calls, she believed any were validated as originating from the Q Cafe. She did not believe a noise problem existed at the Q Cafe, and mitigations eliminated the potential. Regarding whether patrons leaving the Q Cafe would cause a problem to the neighbors, previous testimony already indicated Q Cafe had 03/24/97 −387 a much lower service call basis, and there had not been noise or patron disturbances or complaints. In order to eliminate the potential for patron problems, Q Cafe received permission from Caltrain to direct and educate patrons to use the parking lot directly across the street from Q Cafe to eliminate patron parking on High Street near the plaza. There were over 90 spaces in that location, and they were well equipped to handle any overflow due to live entertainment. Q Cafe also began implementing the security patrol which was requested under Condition 24 and a customer education plan as requested under Condition 25. Q Cafe already began implementing those two conditions despite not knowing whether the permit would be approved because they wanted to be "at one" with neighbors in the area. She did not believe there was any evidence of patron disturbances in terms of guns or battery complaints or the like. She did not believe there would be a potential with the mitigations installed. There were many supporters of live music at the Q Cafe including Casa Olga. Council Member Schneider disclosed she had been to the Q Cafe on a number of occasions. She asked how long Q Cafe had been open. Ms. Young said two years. Council Member Schneider clarified Q Cafe was originally designed and developed as a pool hall and eatery and queried when the decision was made to add music. Bill Kiang, Owner, Q Cafe, said the Q Cafe opened in March, 1995, and live music began January 1996. Council Member Schneider queried the number of pool tables when the establishment opened. Mr. Kiang said Q Cafe began with 12 and currently had 7. The decrease was to add space for a stage for the live entertainment. Council Member Schneider clarified the intent was to change the nature of the business and make it almost exclusively music and food rather than pool hall. Mr. Kiang said no. Q Cafe’s business model was to have 30 percent for eating, live entertainment, and continued pool business. Council Member Schneider queried the hours of operation. Mr. Kiang said they were 11:30 a.m. to 2:00 a.m. daily. On Monday through Thursday, Q Cafe actually opened at 3:30 p.m. because there was no business for lunch. 03/24/97 −388 Remy Malan, Appellant, 685 High Street #5B, had lived downtown since about the middle of 1992, in close proximity to Gordon Biersch, Hagashi West, and the Empire Grill & Taproom. During that time, he had little reason to complain. Over the past four years, the livability of downtown was called into question, and with regard to the Q Cafe, he had a number of concerns which made wanting to maintain a livable downtown a priority. From his living room window, he had an unobstructed view to the roof of 529 Alma Street. He was disturbed that last year Q Cafe openly advertised live music and DJs in the Palo Alto Weekly prior to the Zoning Administrator's hearing to determine whether a permit should be issued. At the hearing in July 1996, he provided a videotape to the Zoning Administrator documenting some of the activities he had observed at the particular location. It was an important issue to him as a resident and a neighbor downtown. Similar environments in the City reflected that lunchtime to midnight, there were fewer calls for service at the Edge than there were in the two hours from midnight to 2:00 a.m. His own experience living downtown corroborated his calls for service typically around midnight or later when he was getting out of bed, getting dressed to find out where noises were coming from, calling the Police Department, and waiting to see if someone would show up. There were eight calls for loud music at the Edge and seven calls at the Q Cafe. While the Edge currently had a permit for music, there were about as many calls for noise there as there were at the Q Cafe where no permit for live music existed. He queried what would happen if the permit were issued. Even with the conditionally approved permit, the Q Cafe had music on nights other than those specified in violation of the previous temporary permit. The track record of the Q Cafe was not good when it came to following permits that were granted. On July 17, 1996, 18 people in the neighborhood submitted a petition requesting that the project not be approved because of the concerns about the track record of the establishment and enforcement. At midnight, it was difficult to be assured the police would respond to the noise issues because there were much more serious problems they needed to spend their time on. It was also difficult to ensure the officer who responded was adequately trained in the noise ordinances. For example, there was an incident in which an officer measured 17 decibels above ambient in the alley outside of Gordon Biersch which was clearly over the 8 decibel commercial specification. The officer in question did not believe there was a violation of the commercial noise ordinance. Julia M. Baigent, Attorney at Law, 13 Woodleaf Avenue, Redwood City, said the necessary findings made by staff in order to issue the permit were based upon a lot of technical data. They pointed out a couple of issues through Mr. Salter who was Mr. Malan's acoustical consultant. Issues were that the ambient noise which was the outside 03/24/97 −389 noise measured against what was measured at 11:30 p.m. with music being played in an empty room. They were concerned about the midnight to 2:00 a.m. time frames when the ambient noise levels could be substantially less. The most recent report submitted stated it addressed the 1:00 p.m. ambient noise, but it did not. The report submitted said the City of Palo Alto noise ordinance stated the ambient was to be taken as the lowest number read on a sound level monitor in a six-minute period. The interval was used to simplify code enforcement. The short time interval allowed an officer to determine if the noise ordinance was being violated without a more involved measurement. The report did not address the Palo Alto noise ordinance and went on to a lot of other irrelevant standards. Charles Salter, acoustical engineer, 130 Sutter Street, San Francisco, said Council had received two acoustical reports from Vince Salmon, two from Jim Mills, and two letters from him (on file in the City Clerk's Office). His first letter suggested taking noise measurements near where the people were complaining. Obviously, people were hearing noise, or they would not spend money and time in opposition of the permit. His second letter, dated January 31, 1997, stated that while Q Cafe's calculations reflected no violations, his calculations reflected Q Cafe had violated the ordinance with the door closed. He recommended in that letter that having the condition of the additional door seemed reasonable. In San Francisco, the Alcoholic Beverage Commission (ABC) did not allow audible music noise, and it used a very straightforward calculation for measurement. If music created audible noise, it disturbed people and there was a violation. Facilities needed to be sound proofed so noise was inaudible, which was something Council might want to consider. Jim Mills basically dismissed Palo Alto's approach to the noise ordinance of allowing eight decibels above the minimum sound level. Perhaps getting at the issue of inaudibility so his clients could no longer hear the noise was reasonable. Based on the information recently presented, the applicants double paned the skylights when it was possible the noise emitted from the ventilation equipment on the roof. Additional soundproofing measures might still be needed so the facility could operate without disturbing neighbors. Council Member Rosenbaum asked for more information regarding the inaudibility standard used in San Francisco. Mr. Salter said in San Francisco, there were many bars and nightclubs which disturbed nearby residents. While police officers attempted to go out and make acoustical measurements, it was difficult, and thousands of people continued to complain. The ABC said if an establishment disturbed neighbors, the license would be revoked. He believed that was the essence of what Council was trying to achieve. As one read the six acoustical reports and got involved 03/24/97 −390 with the decibels, etc., it was an extremely complicated and difficult process. Council Member Rosenbaum said the revocation of a liquor license would be a serious matter requiring some documented evidence of a disturbance. He queried the basis for saying sound was not inaudible. Mr. Salter said in his experience people complained to the Police Department who filed reports with the ABC, and then the police went out and listened. If the Police Department could hear what someone complained about, the establishment was in violation of its alcoholic permit. It was separate from the San Francisco noise ordinance, but it was powerful enough for the establishments to hire acoustical engineers and take the necessary steps so the noise was inaudible. Council Member Fazzino asked if the approach applied in mixed use areas. Mr. Salter said yes. Council Member Fazzino was not convinced that the sound was inaudible in the area south of Market Street. Mr. Salter agreed, but the application of soundproofing was used with many bars because of the difficulty the police had in administering the sound level measurements. While the approach had not worked perfectly, it certainly helped in many residential neighborhoods. Council Member Fazzino queried whether licenses had been revoked. Mr. Salter was not an expert but had talked with attorneys involved in the matters who were very concerned because they were threatened with having licenses revoked. While he did not know the details, he knew that San Francisco's approach to the issue had many bars implement soundproofing to protect the neighbors. Vice Mayor Andersen clarified the applicant's sound engineer would have an opportunity to make rebuttal remarks. Council Member Wheeler asked whether soundproofing indicated Mr. Salter's feelings about the effectiveness of the Zoning Adminis- trator's recommendation regarding the vestibule area. Mr. Salter supported the condition for a vestibule. 03/24/97 −391 Council Member Wheeler queried whether there were measures beyond the vestibule that were not imposed which were necessary to soundproof the facility or whether the vestibule and the other conditions were sufficient. Mr. Salter believed the vestibule had merit because if the commercial noise ordinance were violated with the doors closed, there would be an even greater violation if the doors were opened. Given his client's residential proximity to the building roof and the fact that he heard the noise with his windows closed, more soundproofing might be required of sound emitting from the roof. While double paning was a step in the right direction, there could be other means so the noise from the roof which needed to be treated acoustically did not disturb the residential neighbors. He believed they were talking about something very straightforward and objective. The purpose was so the neighbors were not disturbed at night. Council Member Wheeler asked how one dealt with noise emitting from an air conditioning unit. Mr. Salter said it was a simple process of adding silencers which were specially made devices to allow the air to flow out of an opening while noise was trapped. Council Member Schneider asked, since the Q Cafe had put in its double paned skylights and some other mitigations, how the noise problems had improved. Mr. Malan believed that since the Assistant Police Chief visited the applicant in August 1996, things had quieted down considerably. There were some instances over the Halloween weekend when some heavy base noises emitted from the building. He did not know some of the issues related to when insulation was installed, and he was unaware that the applicant had live bands or other live entertainment as such because it was precluded from any current permits. Given the violations of the permit in the past, he was concerned about more in the future. Apart from a few instances, he believed it had been relatively quiet in the neighborhood. Council Member Schneider asked about the other establishments in the neighborhood. Mr. Malan was not aware of other neighbors who lived near him on High Street or Forest Avenue who had been disturbed by Paradis or Cafe Fino. Gordon Biersch had been disturbing on occasion and most recently during the Mardi Gras festival when they were measured at 17 decibels above ambient. Generally, Gordon Biersch might have Oktoberfest music which only ran until 9:00 p.m. or so. It was not particularly onerous. The prospect of living next to something week 03/24/97 −392 in and week out where there was ongoing noise was a different matter compared to something which only happened a couple of times a year. Council Member Eakins had known the building for a long time. She asked whether the roof was weather insulated and soundproofed. Mr. Salter did not know. The previous analysis indicated the weak link in the construction was the skylight, which was ultimately double paned. Council Member Eakins queried whether an R-19 roof would help with stopping sound transmission. Mr. Salter said not much. Sound isolation required mass weight and air tightness. Insulation would not help very much, but having a layer of gypsum board, improving the mass of the roof, or making sure sound leaks in the roof were eliminated would make a substan- tial difference. It could be just one small duct that emitted the noise and disturbed his client. It was a matter of acoustical testing, measuring closely in throughout the roof and the exterior walls, identifying the hole, and sealing it. Council Member Eakins clarified the basic idea was that sound went where air went. Mr. Salter said that was correct. James S. Mills, P.E., Acoustical Consultant, 3776 Thrush Way Court, Santa Clara, said Dr. Salmon, a competent acoustical engineer, measured the background noise according to the City of Palo Alto code, e.g., the repeatable low level for a six-minute period. There was another way to measure the same noise, and that was the 90 percent exceeded level in the same time or a longer time interval. As long as the 90 percent level was there, those two numbers were compared to be about the same level. The 90 percent level was one decibel lower than Dr. Salmon's level. As recommended by Mr. Salter, the noise on the roof was also measured which included the noise from all the sources, not just the windows. The point at which the band played was about the center of the building, and directly above it was the air conditioning unit Mr. Salter referred to. They were near the air conditioner with their 24-hour measurement used to establish what the annual average background levels would be. If one applied for a building permit for a private home, the 24-hour measurement was used to determine what type of acoustic requirement would be placed on the building. If it was below 60 decibels, there would not be serious restrictions with respect to acoustical isolation. More than 60 decibels might have special requirements to bring levels inside the building down. Both his and Dr. Salmon's measurements reflected that the roof of the Q Cafe met the noise code for actual residential emplacement. The area in front of the 03/24/97 −393 Q Cafe had a 24-hour measurement of 74 day-night average noise level, which reflected the industrial or commercial loud noise zone. It was loud because the traffic on Alma, the trains on the railway, and the noise on El Camino Real were not far away. If there were noise levels coming out of the Q Cafe with the doors opened that were as high as 74 decibels, he maintained they could not be heard at the plaza because the front of the Q Cafe was the L-l0 noise level. Therefore, when the test was done at 1:00 a.m., the doors at the Q Cafe were opened with the noise set at 90 decibels inside on the dance floor. The peak range would be from 82 to around 97 decibels. The highest numbers he measured were 94 decibels on the dance floor with the music going. He was told it was exactly the kind of music that was always played at the Q Cafe. Dr. Salmon's report found that the canned music was worse than the live music in that it would be louder outside the Q Cafe than the live music which would be inside the Q Cafe. He believed his measurements verified what Dr. Salmon had shown, i.e., Q Cafe met the residential district standard on the roof. Mr. Salter recommended in one of his letters that the residential standard be used. Both his and Dr. Salmon's measurements met the City of Palo Alto code for residential areas. It was a commercial use, and at least two decibels below what would normally be expected was measured. Gordon Cohl, 3790 El Camino Real, was a proud Palo Altan and designer, who was very observant about what happened in and around his home and office. For him, Q Cafe was a cause for celebration since its birth. The live music which was recently added caused Q Cafe to be rated as one of the top quality establishments in the Bay Area which set it apart from its contenders. The location of the Q Cafe, at the outskirts of downtown Palo Alto, was a perfect place for such an establishment. If any establishment should be allowed to have live music, he believed Q Cafe was the one. The building was solid brick except on one side where there were heavy glass doors facing the railroad and the Holiday Inn. He urged Council to support the Q Cafe in Palo Alto. Martin Bernstein, P. O. Box 1739, believed the goal of the applicant's attorney "to be at one with the neighbors" was a good one. While Q Cafe was a commercial property, the neighbors who had an issue with it were residential, so to be at one with the neighbors was an excellent measure. He lived on the 600 block of High Street with a direct view of the roof of the Q Cafe. Being in a commercial neighborhood, he accepted the fact that there was more noise. On March 17, 1997, at 1:00 a.m., he walked over and verified there was base music coming from Q Cafe. On March 21, 1997, at midnight base music could be heard through his closed windows. At 1:00 a.m. that same night, he also called the Police Department. He had used Mr. Salter's services at De Anza College some seven years before, and he put a lot of faith in Mr. Salter's acoustical analysis. He queried whether the applicant might agree to look at possible leaks other 03/24/97 −394 than the skylights, such as mechanical openings, and add acoustical insulation to those openings. He agreed just one leak of air could allow music to penetrate. What kept him awake at those hours was essentially the base notes. He did not hear any other level of noise. Council Member Rosenbaum clarified Mr. Bernstein believed the noise problems had to do with the base levels. Mr. Bernstein said yes. He walked over to the Q Cafe at those times and heard exactly the same music. He asked the door person the type of music playing, who responded that it was a DJ. Council Member Rosenbaum queried whether base sounds were more likely to escape such a structure than the higher frequencies. Mr. Salter said the Shoreline Amphitheatre experience also revealed that base notes were the ones which kept people awake. Council Member Rosenbaum said Council was told the situation with the Shoreline Amphitheatre was a different phenomenon. Mr. Salter said the phenomenon was that the noise a person heard penetrating into a dwelling unit was primarily base notes. Chris Dunlap, 255 Homer Avenue, believed it was important for Palo Alto to have live music downtown. He lived two blocks away from the Q Cafe and enjoyed Palo Alto's diverse environment. Early in the morning, he could go somewhere interesting for coffee or he could go out late at night to a couple of different places and see a good variety of music. Q Cafe's music added a lot to the downtown area. He urged support. Jean Paul Labrosse, 809 San Antonio Road, lived, worked, and voted in Palo Alto and was a former Stanford student. Live music at the Q Cafe was an important addition to the richness and diversity of Palo Alto's artistic culture. As a consumer, live music establish- ments such as the Q Cafe made downtown Palo Alto more attractive to him. While he understood the difficult issues for the Council and the community in terms of dealing with live music, he believed it was Council’s responsibility to make allowances where necessary so the Q Cafe and other establishments had the most freedom possible to offer the valuable resource to Palo Alto in a financially and practically viable manner. He saw the issue as freedom of expression for businesses. He urged support. Mark Weiss, 13130 Byrd Lane, Los Altos Hills, produced the popular music concert series at Cubberley Center in Palo Alto and in his work visited many live music venues and nightclubs to research 03/24/97 −395 potential shows. In his experience, the Q Cafe in Palo Alto was a particularly well run venue and very responsive to the concerns and needs of Palo Altans. He hoped the City allowed the Q Cafe to resume the presentation of live music because he believed it was an important part of the community's culture. Ms. Young commented about hoping to present more locally based artists, and he worked with local artists who would love to perform at the Q Cafe. He urged support for the Q Cafe. Jeremy Sutton, 245 Everett Avenue, had lived downtown for nine years and supported the Q Cafe’s having live music. He was 35 years old, loved dancing, and usually went to San Francisco for good venues where he was with others his age and enjoyed a good dance floor. Q Cafe was unique in downtown Palo Alto. It drew a high caliber of bands and offered excellent facilities for dancing. Palo Alto was an affluent area with many people of his generation who would love to dance and socialize somewhere within walking distance from their homes. He understood there were little to no litter or behavior problems from patrons of Q Cafe, and valuable foot traffic was generated in a neglected part of downtown. His personal experience was that patrons of Q Cafe were friendly; it was not a rough place full of troublemakers. He encouraged support for live music at Q Cafe. He believed Q Cafe should have the flexibility to have live music on the same basis as Fanny & Alexander’s, and at least the flexibility to make a good business of the Q Cafe. D. Dimitrelis, 165 Forest Avenue #3A, was 38 years old, loved to dance, and sleep in the night. Council deliberations were between providing an additional mix in the business area downtown and maintaining the residential portion of the mixed use. He was concerned because one of his bedrooms faced Q Cafe, and a second bedroom partially faced it with a lot of exposure to street traffic. He urged Council to place itself in the positions of the people hearing the noise at night and to consider when they would like the noise to end. Bill McCann, 685 High Street #2F, said a nightclub was defined in the dictionary as an establishment which stayed open late at night and provided food, drink, entertainment, and music for dancing. His letter to the City, dated January 30, 1997 (on file in the City Clerk's Office), indicated he was a 12-year resident of Palo Alto Plaza, and had been on the homeowners' association board for the past eight years. He enjoyed the vitality and vibrant life downtown Palo Alto offered and commended the City for its efforts in creating it. While on the surface allowing live music and dancing at Q Cafe did not appear to be a major issue, to the residents of Palo Alto Plaza, there were major cumulative impacts with such a permit, such as ongoing late night noise and patrons pouring out on the street 03/24/97 −396 at 1:30 a.m. and mingling below their bedroom windows. The patrons were having a good time and were oblivious to the needs of the sleeping residents. The idea of educating customers who were intoxicated or under the influence as they left the premises was absurd. After he delivered his verbal objections to the Q Cafe's having live music, Commissioner Byrd asked whether he had ever considered ear plugs. Such a recommendation could be disastrous in the event of an emergency. He hoped Council would give more serious consideration to the issue. There were plenty of places with live music downtown where residents were not bothered and the problems associated with Q Cafe’s having a permit for live music and dancing were unnecessary. Palo Alto Plaza had spent $35,000 in landscaping remodeling and did not appreciate late night drunks breaking beer bottles, pulling plants out of the ground, vomiting, urinating in the plaza, etc. The residents had a right to a good night sleep. He urged Council to reject Q Cafe's request. Michael Wright, 185 Forest Avenue, said his building was one of the three which constituted Palo Alto Plaza. While his building and unit were situated such that he did not hear noise from Q Cafe, he appreciated the problems because he was perhaps the closest resident to Gordon Biersch. On those occasions when Gordon Biersch had live music, the sound level was so high there was no way he could sleep through it. He was often awakened at night by the patrons of Gordon Biersch and the Empire Taproom. None of the establishments, including the Q Cafe, existed when the residents moved in. If they had, the situation would have been different. He urged that Council contain the noise issue. Ms. Young said in terms of the conditions recommended by the staff and the Planning Commission, Q Cafe was agreeable to all with a modification to Condition 2 to allow Q Cafe to offer live music Tuesday through Saturday and special event days from 9:00 p.m. to 9:00 a.m. The difference was the ability to offer live music Tuesday and Wednesday in addition to what the Planning Commission proposed. Q Cafe would agree to cut off the live music at 1:00 a.m. In terms of the alcohol service hours, she believed the Planning Commission's intention was for a gradual dispersement of the crowd, but if everything ceased at the same time, the patrons would leave at the same time creating more potential for noise. Q Cafe proposed to cease the live band performance at 1:00 a.m. and alcohol service at 1:30 a.m. When the band stopped, some people would leave then, and some would stay and mingle until 1:30 a.m. or 2:00 a.m. If a distinction were imposed in Condition 2, it should be on live music, not recorded music. Q Cafe currently had a use permit for recorded music and there were no complaints. Mr. Malan indicated there were no problems with the noise level since August. Q Cafe wanted to offer softer music on the less busy Tuesday and Wednesday nights such as jazz, blues, or acoustical. If it would work Thursday 03/24/97 −397 through Saturday, Q Cafe could make it work Tuesday and Wednesday. Adding live music to Q Cafe's repertoire on Tuesday and Wednesday would be within the ancillary use. With respect to the vestibule, Q Cafe met the Palo Alto noise ordinance. No noise came from the front doors that could possibly affect the Palo Alto Plaza residents. As indicated by Mr. Mills, there was less than one decibel difference at the rooftop facing the plaza. The noise ordinance did not require a reading with the doors opened since it was not a continuous and repeated exposure. Q Cafe had eliminated potential noise issues and patron problems and was trying to be a good neighbor and a successful business. Mr. Malan said neither he nor Mr. Bernstein were Palo Alto Plaza residents. There were permit violations, and the nearby residents did not like it. He urged rejection. Ms. Baigent said a lot of mention was made about the kind of music offered at the Q Cafe, but the permit did not limit the kind of music. As Mr. Salter pointed out, even with the 11:30 p.m. ambient noise level measurements, with Condition 23 requirements that the inside noise level not exceed 97 decibels, which according to Q Cafe was the noise level of a train, it would still exceed the Palo Alto ordinance requirements for commercial uses by five decibels at the property plane. The applicable portion of Palo Alto's noise ordinance indicated that at commercial property planes, the noise could not exceed eight decibels over ambient. At residential property planes, the noise could not exceed six decibels over ambient. The continuous noise source referenced in the Palo Alto Municipal Code was the music itself which was then measured at any place on the property plane, and any excess was a violation. The conditions were written such that it would be a confirmed violation if, in front of the door of the Q Cafe at the property plane, the noise exceeded eight decibels over ambient. The code was specific, and there were no exceptions. They were concerned about any elimination of the double vestibule door because as the doors were opened, clearly there would be an excess of eight decibels over the ambient at the front and possibly in other places. Vice Mayor Andersen declared the Public Hearing closed. MOTION: Council Member Schneider moved, seconded by Andersen, to approve staff and Planning Commission recommendations to deny the appeals and uphold the Zoning Administrator’s approval, with modifications to conditions of approval, based on the following findings, conditions and amended mitigated negative declaration. Revise Condition No. 15 to read “The Zoning Administrator shall hold a public hearing within 6 months of the approval of this use permit to determine the business owner’s compliance with the use permit conditions of approval. If the business owner has not 03/24/97 −398 complied with all the conditions or there have been a total of two or more officially documented infractions of the noise ordinance within the 6 month period...,” and reinstate Condition No. 13 requiring an internal vestibule to be built to ensure a closed-door condition. Further, that in addition to the periodic compliance review pursuant to Condition No. 15, this use permit shall expire, and be of no further force and effect, on the fifth anniversary of its effective date. The applicant shall not acquire any right, vested or conditional, to conduct the uses permitted under this use permit after its expiration. The applicant may make a timely application for an extension of the use permit. If any extension proceedings, including related administrative appeals, are not concluded before expiration of this use permit on its fifth anniversary, the use permitted shall cease immediately. Delays caused by litigation shall not be considered to toll, stop, or delay commencement or expiration of any time period under this permit. Reinstate the wording in Condition No. 2 “or recorded music may be played by a disc jockey.” DRAFT FINDINGS FOR USE PERMIT 96-UP-5 1. The proposed use at the proposed location will not be detrimental or injurious to property or improvements in the vicinity, and will not be detrimental to the public health, safety, general welfare or convenience in that, with the attached conditions, the playing of live and recorded music and dancing will be ancillary to the primary use of the facility as a billiard facility and restaurant. The conditions of approval will ensure that all requirements of the noise ordinance are met and that the use will not have a significant adverse impact of the surrounding neighborhood. In addition, the conditions provide for a mechanism to review and revoke the Use Permit for live and recorded music and dancing should the business operator fail to comply with the conditions of approval or repeatedly violate the City of Palo Alto Noise Ordinance. 2. The proposed use will be located and conducted in a manner in accord with the Palo Alto Comprehensive Plan in that it complies with Policy 14 in the Housing Element of the Comprehensive Plan by encouraging mixed commercial and residential uses and the Alma Street District guidelines in the Downtown Urban Design Guide, which also recommend mixed commercial and residential uses in the Alma Street area and the purposes of Title 18 of the Palo Alto Municipal code in the “Purpose” section of the Downtown Community Commercial Zone District specifies the 03/24/97 −399 appropriateness of mixed uses and allows commercial, recreational uses with a conditional use permit. 3. The location, access or design of the ground floor space of the building proposed to house the use, creates exceptional or extraordinary circumstances or conditions applicable to the property involved that do not apply generally to property in the same district in that it is a large, open interior space measuring 50 feet wide by 125 feet deep which is especially suitable to a commercial recreation and eating and drinking establishment with the on-site sale and consumption of liquor, beer and wine and live entertainment and dancing. The open nature of the space lends itself to live and recorded music and dancing whereas other more typically sized and configured storefronts would have difficulty accommodating such uses. DRAFT CONDITIONS FOR USE PERMIT 96-UP-5 1. All conditions of 94-UP-33 shall remain in effect, with the exception of condition 1, which shall be modified by the conditions of 96-UP-5. 2. Live music may be performed or recorded music may be played by a disc jockey and dancing to live entertainment may occur within the building during the hours of 9:00 p.m. to midnight on Thursdays, and 9:00 p.m. to 1:30 a.m. Friday and Saturday nights only. Alcohol serving shall cease at 1:00 a.m. Fridays and Saturdays and at midnight on Thursdays. Friday, and Saturday nights only, between the hours of 9:00 p.m. and 1:30 a.m. only. 3. Music or dancing of any kind outside the building shall not be allowed at any time. 4. No activity of any kind, except cleaning of the premises, or activities related to the provisions of the litter removal plan established in condition 5, shall occur between the hours of 2:00 a.m. and 8:00 a.m. on any day of the week. 5. The business operator or his/her employees shall remove all litter associated with its operation in the area patrolled by the security guard and “host/security” personnel (as discussed in conditions 7 and 8). Litter removal shall commence no earlier than 8:00 a.m. and shall be completed by 10:00 a.m. the morning after every business day. 6. All employees responsible for serving liquor, beer or wine shall participate in “LEAD” (license, education, alcohol, and drug) program activities at a minimum of once a year. 03/24/97 −400 7. The owner of the facility shall insure that one uniformed security guard, licensed by the State of California, shall be stationed either outside the entrance to the building, or immediately inside the vestibule, during the hours that live or recorded music is played to discourage vandalism, disturbances and other unlawful behavior. The owner of the facility shall provide the name, address and telephone number of the security guard service to the Zoning Administrator for the City of Palo Alto and to the Palo Alto Plaza Homeowners Association. 8. In addition to the security guard, employees of the facility shall perform the “host/security post” duties outlined in the “Q Cafe Billiards Security Profile Policy.” A written description of these duties shall be provided to all staff and are as noted in the application materials included in the file located in the Office of the City of Palo Alto Planning Division. 9. A “Manager on Duty” shall be present at the facility at all times. The name of the Manager on Duty shall be made available to the City of Palo Alto Zoning Administrator as well as to the Palo Alto Plaza Homeowners Association. If the Manager on Duty is expected to change, the name of the new Manager shall be provided to the Zoning Administrator and Palo Alto Plaza Homeowners Association at least two weeks in advance of the change. 10. The Manager on Duty shall be available at all times to handle complaints made by private individuals or the Police Department. He or she shall document the complaint and the facility’s response to the complaint. A copy of the complaint log shall be provided to the Palo Alto Zoning Administrator every two months for the first 12 months of the use permit and upon request by the Zoning Administrator after the first 12 months. 11. All live and recorded music and dancing activities shall comply with the City of Palo Alto Noise Ordinance, Section 9.10 of the Palo Alto Municipal Code. No noise ordinance exception permit shall be requested with respect to the uses granted under this use permit. 12. All doors and windows shall be kept closed at all times when live or recorded music and dancing is occurring to prevent noise from escaping through theses openings in the building. 13. To further prevent noise escaping from the opening and closing of the main doors, a double-door interior vestibule shall be constructed. The design of the interior vestibule shall be 03/24/97 −401 reviewed by the Zoning Administrator and the Chief Building Official, or their designees. At no time when live or recorded music and dancing is occurring shall both sets of doors that comprise the vestibule be open simultaneously. 14. At least one consultation shall occur between the business operators, the Zoning Administrator, or her designee, and a professional noise consultant to determine what reasonable noise attenuation could feasibly be added to existing skylights and windows to further prevent sound from escaping from these openings. The Zoning Administrator has the authority to require the recommended additional attenuation and the business operator shall implement these measures at his/her expense. 15. The Zoning Administrator shall hold a public hearing within 6 months of the approval of this use permit to determine the business owner’s compliance with the use permit conditions of approval. If the business owner has not complied with all the conditions or there have been a total of two or more officially documented infractions of the noise ordinance within the 6 month period, Use Permit 96-UP-5 may be revoked or modified pursuant to the procedure set forth in PAMC section 18.90.080. Officially documented infractions means that the Palo Alto Police Department has conducted noise readings and found the establishment to be in violation of the Palo Alto Noise Ordinance. 16. In order to insure compliance with the conditions of this use permit within the first 6 months of the approval of this use permit, a minimum of four random noise tests shall be authorized by either the Zoning Administrator or police personnel and shall be conducted by police personnel during times when live or recorded music and dancing are occurring. The business operator shall not be notified prior to the Police Department conducting such tests. Other tests may be conducted by the Police Department as a result of private complaints. 17. Compliance shall be required with all applicable codes and ordinances, including Titles 9 (Peace, Morals and Safety) and 15 (Uniform Fire Code) of the Palo Alto Municipal Code. 18. The live entertainment allowed under this use permit shall be deemed an agreement on the part of the applicant, the owner, their heirs, successors and assigns to comply with all terms and conditions of this use permit. 19. During live music events, tables shall remain in the location shown on the floor plan submitted as part of the original 03/24/97 −402 application for Use Permit 94-UP-33. Any movement of chairs shall not obstruct the exit routes from the building. 20. The one-hour fire corridor shall be kept clear and unobstructed at all times. 21. The sprinkler system shall be central station monitored for water flow and control valve tamper. 22. At no time shall the maximum occupant load for the interior space be exceeded. 23. Sound system volume control will be required so that interior average audio levels will never exceed 90 dBA., with peak audio levels not to exceed 97 dBA., per report by I.N.A.S., dated December 19, 1996. A plan for accomplishing volume control within the establishment shall meet the satisfaction of the Zoning Administrator and Police Department, prior to operation of the expanded use permit for live entertainment and dancing. The plan may include methods of controlling sound system volume, purchase of equipment and self-monitoring of interior noise levels, and other practical or operational methods of controlling and demonstrating the compliance with this internal volume requirement. 24. The business operator shall submit a plan for utilization of security guards outside the establishment and in the surround- ings for reducing noise levels, educating and directing patrons to public parking lots, and reducing vandalism in the Downtown. This plan shall be reviewed and approved by the Palo Alto Police Department and Zoning Administrator. The scope of the plan shall be defined by the Palo Alto Police Department prior to submittal to the City for approval. The plan shall be in place prior to execution of the conditional use permit. 25. The business operator shall submit a plan to educate patrons that the use of the property is only permitted under certain conditions, particularly respect for the surrounding business and residential neighborhood. The education program shall direct patrons to park in public parking lots, to reduce noise in the Downtown, to eliminate litter and vandalism, and to be respectful of property and residents in the Downtown. The plan shall include wording for handbills, to be distributed upon entry to the facility, and signs within the building. The education program shall be reviewed and approved by both the Police Department and Zoning Administrator. The plan shall be submitted no later than 15 days after issuance of this use permit and implemented immediately upon approval. 03/24/97 −403 Council Member Schneider said the 25 conditions seemed to be comprehensive, and Council would hold Q Cafe to a higher standard than any other music and eating establishment in the downtown area. No one else had the same conditions imposed. She believed the particular building and its location was well designed for entertainment. It faced a busy street, and it had the train on the other side. The number of complaints had decreased, and with the mitigations required, she expected the sound would go down further. There was talk about the base noises, and if the motion passed, she asked that Q Cafe do everything in its power to ensure that any leakage through the air conditioner or any other ducts be eliminated. She supported live music only Thursday, Friday, and Saturday nights not on Tuesday and Wednesday. Q Cafe would be a test case, and if it succeeded in fulfilling the conditions, Q Cafe could set itself up as a model for entertainment in the downtown. As pointed out by the City Attorney, the use permit could be revoked if there were two violations within a six-month period. Council Member McCown said corrected Condition 15 defined an officially documented infraction with which the Police Department conducted noise readings and found violations of the noise ordinance. She queried whether the intent was the noise readings would be conducted on a complaint basis or whether within the six-month period, the City would randomly monitor the Q Cafe. Ms. Grote said when she originally attached the condition, it was complaint based. Condition 16 also referenced random noise tests that either the Zoning Administrator or police personnel could authorize. Council Member McCown said with Condition 16, noise tests occurred within a 12-month period. She queried whether some way existed to ensure some random tests were initiated by the City within the 6-month period so the data would be available at the hearing to be held in six months under Condition 15. Ms. Grote said Condition 16 could be modified to say within the first six months. Council Member McCown said the Planning Commission minutes reflected the frustration expressed at the earlier meetings. It probably became more complex with the war between the experts and the degree to which the City was being asked to decide. Council heard two completely different things about whether the measurements did or did not violate the noise ordinance. While she understood there was a difference between what an instrument read as the number and what she might perceive as objectionable, it seemed that two competent consultants should be able to get to some common determination of how the City ordinance worked and how one took the 03/24/97 −404 readings and what the objective numbers were. If the motion passed, she hoped the City conducted tests in the appropriate locations to have an objective record about whether, after improvements, the building could operate consistently with the City's noise ordinance. If not, the applicant either had to do something more to the building to ensure it complied with the noise ordinance or the City had to discontinue the operation. She believed a six-month period was a fair test to see whether the doors, included in the motion, and the things already done with the skylights worked. INCORPORATED INTO THE MOTION BY MAKER AND SECONDER that Condition No. 16 be revised to require that the four random tests occur within the first 6 months rather than 12 months. Ms. Grote said there might be a question of who should do the tests and who should pay, and she needed to determine from the Police Department whether it could get on the roof if the City did the testing. Council Member McCown believed Condition 16 said the City would do the testing, and it should be available to the Zoning Administrator at the time of the public hearing. City Attorney Ariel Calonne urged that the motion clarify exactly what the City expected in the way of tests, i.e., noise leakage for ordinance compliance. The concern of the Police Department was it would not be able to get on the roof to do the tests. He suggested the condition be revised to require the applicant to have the report done and submitted to the City. The condition might also be revised to require the applicant to reimburse the City for its costs to do the tests. The police was not equipped to deal with the skylights. Council Member McCown asked what the City needed to do to evaluate whether the noise ordinance was being met. If the police could not do the tests because of some cost or physical access issue, the condition needed to be changed. Mr. Calonne said the City's noise ordinance would not require the City's measuring noise leakage from the skylight. Council Member McCown was not thinking about measuring for leakage. If Mr. Salter contended the skylights could be the source of the problem that would violate the ordinance, there had to be some way to determine if that was correct. If the City did not know the answer, it needed to find out. She was frustrated with the findings of competent independent people and not hearing that the City knew whether or not its ordinance would be violated by sound leaking out of the skylights. 03/24/97 −405 Mr. Calonne said the City could answer the question. His clarifica- tion was whether Council Member McCown's view of the four random noise tests were different from the police’s measuring for ordinance compliance. Council Member McCown said no. Council Member Wheeler said it was clear that in the interim period without the live music, there was still some disturbance in the neighborhood. One of the possible sources of leakage identified by Mr. Salter was the air conditioning units. In his testimony, Mr. Salter indicated there was a widely available fix. She queried whether it was possible for the City to add a condition to require the installation of silencers on the air conditioning units. Mr. Calonne said the City probably had authority, but the six-month Zoning Administrator hearing would also provide the authority, and it was probably staff's designed opportunity to modify conditions if necessary. He read the staff report (CMR:131:97) as an attempt to try to balance the competing interests so as not to compel installation of the silencers unnecessarily. Council Member Wheeler believed the statement by neighbors that the noise still occurred even in the absence of live music as recently as a week prior indicated there was still a problem with sound leakage even though the applicant went ahead and installed the skylights. Commissioner Cassel said the Planning Commission minutes reflected her desire to understand why her impression was slightly different from Ms. Grote’s. It became clear there was a misunderstanding in terms of what constituted live music. The Zoning Administrator's definition was that playing recorded music with a DJ was live music, and the Planning Commission somehow missed that in its definition as did everyone else because Q Cafe had been playing recorded music with a DJ which would be limited by the Zoning Administrator's decision. Council Member Wheeler did not want to wait six months to work on the existing noise problems. She believed the neighborhood should be given every possible protection. AMENDMENT: Council Member Wheeler moved, seconded by McCown, that the applicant be required to install silencers on the air condi- tioning units. Council Member Schneider was concerned about requiring the applicant to install a vestibule at some unknown cost and a silencer on the air conditioning units at some unknown cost in a six-month period. Financially, the additional requirements at that time seemed like 03/24/97 −406 a tremendous burden in a six-month period. If at the end of six months, the applicant did not make it, the applicant were out. She was concerned about the addition of another requirement that could run thousands of dollars. She would not support the amendment. Council Member Eakins asked for more detail regarding the costs. Mr. Salter said the installed costs of the silencers were approxi- mately $100 per square foot. It seemed Council wanted more noise control as did the applicant. It might be that a hole in the roof existed, had been overlooked, and needed to be sealed. It might not be the duct, and a silencer might not be needed. It could be a vent. He suggested that he and Mr. Mills work together and do a simple, straightforward acoustical test and identify the weak link in the roof which could make a big difference. Council Member Wheeler believed they were all trying to work toward a common goal. She queried whether the applicant was willing to work cooperatively to try to identify the weak link. Mr. Mills had no problem working with Mr. Salter on the question of other leaks. Dr. Salmon spent a great deal of time at the establishment and assured him and the owners of the Q Cafe that the skylights were the problem with the noise at the residences. He was sure there were not any leaks because he had been over the entire roof with a sound level meter with the music playing inside. He did not measure a level outside one meter away from any of the surfaces that was higher than 50 decibels with the level set at an average of 90 decibels inside. He recommended to the owner that they not actually use the 90 decibels but rather the 85 decibels, and also reduce the base content of the music. Q Cafe was currently playing flat music. Vice Mayor Andersen opposed the amendment for the simple reason he wanted to see the Zoning Administrator have the flexibility in six months to make some recommendations if needed. Council Member McCown withdrew her second. AMENDMENT DIED FOR LACK OF A SECOND Council Member Fazzino was concerned about the whole issue of mixed use. A lot of lip service was paid to the need for mixed uses in Palo Alto, and while everyone wanted to live like the Florentines and Rome, the fact was Americans were far more sensitive to noise than Italians, Brazilians, or Argentines. As mixed use issues were looked at, the needs of businesses and residents had to be balanced. Fifteen years before, Council was hung up on the possibility of putting housing above businesses in the research park, and he 03/24/97 −407 believed that would have led to a huge host of problems that Council would still be dealing with. While it might not seem relevant to the specific issue before the Council, it was a long-term issue Council needed to address as it moved through the Comprehensive Plan with respect to mixed uses. He tended to think that between 8:00 a.m. and 5:00 p.m., businesses predominated, and their needs were preeminent, but late at night, particularly on week nights, the needs of residents had to take precedence. While he supported the need for live music in the downtown area and believed it added vibrancy to the area, he was troubled by the past noise problems associated with the Q Cafe and appreciated its efforts in the past few months to address them. He was fairly comfortable that the proposed conditions addressed the concerns of most residents, although he still believed noise was an issue for others. He believed the six-month monitoring of the situation as well as the ongoing monitoring was a solid approach. If violations or problems occurred, the concerns of the residents had to prevail. He also believed that Q Cafe had to continue to address the other issues of security, parking, and the behavior of patrons. Those concerns were just as legitimate as the noise question. In the long term, Council needed to address the issue of nightclubs directly. There was no question in his mind that Q Cafe, Paradis, the Edge, and other clubs were de facto nightclubs. Palo Alto had found a nice, neat way to allow nightclubs into the community, and while he believed live music was great, Council had to directly address the de facto nightclubs as it worked through the Comprehensive Plan. He was not necessarily suggesting nightclubs should be banished completely from Palo Alto, but the issue should be addressed directly in order to make policy which allowed the nightclubs to exist and more importantly coexist with residents. He hoped the noise tests would provide answers with respect to whether noise levels were acceptable at Q Cafe. In the final analysis, it would be the residents' concerns which determined how he would eventually vote on the particular issue. For the short term, he was fairly comfortable with the conditions. He did not want to put the Q Cafe out of business and wanted it to succeed and provide live music, but at the same time he wanted to address the legitimate concerns of neighbors in the downtown area. He supported the motion. Council Member Eakins opposed the use permit at the Planning Commission level because she did not want to see the hours of alcohol service be so long. As she looked back through the Planning Commission minutes, she saw that Commissioner Schmidt made a clear distinction between controlling the noise and the behavior of the patrons. Everyone referred to what happened late at night. It was the lateness that was the real problem, not that the music happened or could happen. She believed the combination of early morning continued alcohol consumption along with the music and the dancing contributed to the problems controlling the patrons in the 03/24/97 −408 neighborhood after they left the premises. She wanted to see the hours shortened. While she would not push for it at that time, she reserved the right to do so in six months depending upon how things worked out. She agreed there should be no Tuesday or Wednesday night live music. She shared Council Member McCown's concern about the dilemma if one heard the music and was bothered by it; it did not matter whether the noise ordinance worked to define whether there was a violation. Decibels did not help residents sleep. She supported the motion with the reinstatement of the DJ. Council Member Wheeler associated with most of the comments of Council Member Fazzino. Her experience was mostly from living in Cambridge, Massachusetts, where many people lived over the store and to her knowledge got along very well. She was concerned that over the past decade, the Council and the Planning Commission on which she served encouraged the construction of residences in the downtown area and were moving forward with a Comprehensive Plan which not only carried on the thought but also tried to look at ways of enhancing residential uses particularly along the Alma Street corridor which was conveniently located to both the downtown and the transit station. She had strong feelings about the types of businesses encouraged to locate along the same corridor. She did not believe having lots of night life and music was particularly compatible with the encouragement to construct housing. They were trying to be all things to all people and probably not doing justice to either the business entities or the residents both current and future. She appreciated the hard work by the Zoning Administrator, Planning Commission, applicant, and the appellant. She was not satisfied they were ever going to make the two entities work together, and she opposed the motion. Council Member Rosenbaum said somewhere in the Planning Commission minutes, there was discussion about a temporary use permit which presumably would not vest the rights as a regular permit. Mr. Calonne said a temporary use permit as described earlier that evening was for an occasional or one-time event. Council Member Rosenbaum was thinking more in terms of six months. Mr. Calonne said along the same lines as introduced by Council Member Schneider, the use permit would expire after five years or Council could pick another date. Five years was purely a judgment call. If Council was concerned about the length of time, it should consider two factors: first, the potential that the City was essentially guessing wrong about the impact on the neighborhood, and second, the improvement expense the applicant would bear. Somewhere between those two factors, there was a reasonable period of time. While he did not remember the exact reference Council Member Rosenbaum 03/24/97 −409 referred to, it might well have been to the five-year type of approach of preventing the permit from vesting. Ms. Lytle said the discussion was whether to allow the use to go ahead for a trial period of three months. Instead, the Planning Commission believed the evidence probably showed there would be a problem with compliance with the noise ordinance and decided to continue the item to get additional conditions to assure compliance. Council Member Rosenbaum said due to his experience with Shoreline Amphitheatre, he had become skeptical if not cynical about the ability of noise ordinances such as Palo Alto's to protect residents. He became particularly concerned when the City started talking about the high level of base. It was not unlikely that Q Cafe could meet the ordinance, and the residents would still be annoyed. He wanted to do something temporary rather than vesting because as he read the language, an officially documented infraction occurred when the Police Department conducted noise readings and found the establishment to be in violation of the noise ordinance. While that sounded fine, once again from past experience, if Council attempted to revoke the permit, the first question would relate to the recent calibration of the instrument and the training the police officers had in using the instruments. They would be serious questions as to the technical validity of what Council said justified the use permit being revoked. He was not sure the process would work and wanted to leave the balance in the City's favor by attempting to have a temporary use, and if at the end of six months there were still complaints, that would be sufficient without having to make a showing that the noise ordinance had been violated. He was interested in a substitute motion along those lines and queried what would be legally acceptable. Mr. Calonne believed the language he passed out changing the time to what he preferred would be acceptable. He cautioned that when he analyzed the temporary use problem, it was more of an analysis based upon how much nuisance the neighborhood could absorb over a short period of time rather than how the use could be compatible as a longer term neighbor. The practical issue was the question of whether the conditions that called for making the use a compatible neighbor worked economically on a short-term permit. Council Member Rosenbaum referred to the economic issue and queried whether the improvements to be made had already been done. Ms. Grote said many of the improvements were already made, but one of the most costly improvements was the vestibule which was not yet implemented. 03/24/97 −410 Council Member Rosenbaum clarified the vestibule was the one the Planning Commission found not to be necessary. Ms. Grote said that was correct. The motion on the floor included the vestibule. AMENDMENT: Council Member Rosenbaum moved, seconded by McCown, that in addition to the periodic compliance review pursuant to Condition No. 15, this use permit shall expire, and be of no further force and effect, on the first anniversary (one year) of its effective date. The applicant shall not acquire any right, vested or conditional, to conduct the uses permitted under this use permit after its expiration. The applicant may make a timely application for an extension of the use permit. If any extension proceedings, including related administrative appeals, are not concluded before expiration of this use permit on its first anniversary, the use permitted shall cease immediately. Delays caused by litigation shall not be considered to toll, stop, or delay commencement or expiration of any time period under this permit. Reinstate the wording in Condition No. 2 “or recorded music may be played by a disc jockey.” Council Member Schneider opposed a one-year temporary use permit. Council was asking the applicant to be a model citizen which was something Council had not asked of similar businesses in the community. In exchange for that, Council owed the applicant some time to work it out. Dr. Salter already offered to work with Mr. Mills to see if the problems could be worked out, and she saw an opportunity for great coordination between the applicant and the residents to work together. She believed Council should give the applicant the benefit of the doubt and give the applicant the five years. If people worked together, she believed it would turn out to be very satisfactory to all. To limit them to one year to work it out was not enough time. She would not support the amendment. Council Member McCown said the Q Cafe needed to evaluate whether it could make the financial investment of changes to the building that would allow it to be used with live music and not disturb the neighbors. There were many uncertainties, and Council Member Rosenbaum was right that the City needed to shade the uncertainties in favor of the view that success might not be possible without the neighbors being subjected to an inappropriate level of disturbance. It behooved the Q Cafe to take advantage of the expertise and knowledge it already developed through its own consultant and Mr. Salter on behalf of Mr. Malan to try to make the best possible decisions about what needed to be done to solve the problems. She believed a year was a reasonable period of time to give the applicant a chance at doing it. 03/24/97 −411 Council Member Wheeler clarified that if Council supported the amendment in addition to what was already on the floor, there would be a Zoning Administrator's hearing in six months and then another one in six more months. Ms. Grote said that was correct. Council Member Wheeler said it seemed that during the initial six-month period was when the applicant, the appellant, and their respective experts needed to get it together and cooperate since they would see the Zoning Administrator and should be prepared to have whatever agreements were reached on the table and ready to go. It was fair neither to the applicant nor the residents to go through the process in six months and again six months after that. While she saw the original rationale for having a time limited use permit, she believed they were now using that device to get to someplace else which was not appropriate for anyone. She opposed the amendment. Council Member Fazzino understood if neighbors complained of two violations, the City had to conduct noise tests to ascertain whether there had, in fact, been violations. Mr. Calonne said that was correct. Council Member Fazzino queried whether the City would need any additional evidence to revoke a permit as opposed to letting the permit lapse. Mr. Calonne said yes. It was harder to revoke a permit by an order of magnitude than it was to let one lapse. If Council's intent with Condition 15 was to indicate that two or more infractions constituted an automatic revocation, the wording could be better. Condition 15 said if there were a couple of violations, the City would conduct a hearing and prove there were grounds to revoke or modify the use permit at that hearing. Staff could work on tightening Condition 15 to put in some automatic triggers. He believed if Council were concerned about the use compatibility, it made sense to choose a period of time that was short and reasonable as a trial operation, use the time limiting condition he suggested, and choose a number of months or years that would satisfy Council about whether the use could work well. Council Member Fazzino asked about the optimum initial trial period. Mr. Calonne said the six-month review was already built in, and if Council combined some of the concepts discussed and asked the applicant and appellant consultants to meet during that six-month 03/24/97 −412 period and provide feedback to the Zoning Administrator about what was determined with the random tests, it would present more information than what was currently available. Council Member Fazzino asked if at that point the City Attorney would be able to build into Condition 15 some trigger points or some tightening of the language. Mr. Calonne said in six months if there were violations, the City would have the authority to go ahead with the revocation. If the Q Cafe needed to contest it, it would. He would look for some sort of safety valve to take away the incentive to contest the six-month decision by saying the permit would not live much longer than six months anyway. He suggested somewhere between a year or two as a lapse period if Council was concerned the use might ultimately be incompatible. Council Member Fazzino clarified Council should go six months with the trial period and then something like two years for the permit. Mr. Calonne said yes, with the neighbors recognizing the City was not without power during the period of time. Council Member Fazzino recommended the City go for six months and then two years because it did not make sense to return the matter in a year, six months after there was a full public hearing. Council Member McCown suggested six months and then one year after that. She saw in six months there would be a reality check with data about whether the Q Cafe was on or off track. If it were on track, there would be another year to see if it were still on track, and at the end of that time, the City could decide to give a time specific, further extension. If the Q Cafe were off track in six months, she did not know why it would be given more than one more year to see if Q Cafe could make other changes. If at the end of that year Q Cafe had not been able to make the case that the permit should be extended further, then it would stop. She suggested the six-month review as already recommended by the Zoning Administrator and then a year’s time after that if Q Cafe was still on track in six months. AMENDMENT REVISED WITH THE CONSENT OF THE MAKER AND SECONDER to revise the period to 18 months. Vice Mayor Andersen said he was going to hold out for a three-year period. AMENDMENT FAILED 3-4, McCown, Rosenbaum, Wheeler “yes,” Huber, Kniss absent. 03/24/97 −413 AMENDMENT: Council Member Rosenbaum moved, seconded by Fazzino, to approve in addition to the periodic compliance review pursuant to Condition No. 15, that this use permit shall expire, and be of no further force and effect, on the second anniversary (two years) of its effective date. The applicant shall not acquire any right, vested or conditional, to conduct the uses permitted under this use permit after its expiration. The applicant may make a timely application for an extension of the use permit. If any extension proceedings, including related administrative appeals, are not concluded before expiration of this use permit on its second anniversary (two years), the use permit shall cease immediately. Delays caused by litigation shall not be considered to toll, stop, or delay commencement or expiration of any time period under this permit. Reinstate the wording in Condition No. 2 “or recorded music may be played by a disc jockey.” AMENDMENT PASSED 5-2, Andersen, Schneider “no,” Huber, Kniss absent. Vice Mayor Andersen was impressed with Commissioner Schink's comments in the Planning Commission minutes that if mixed uses were going to work in Palo Alto, the City needed to be cognizant of the residents and neighbors in the mixed use area. That concern was reflected in Council's dialogue. MAIN MOTION AS AMENDED PASSED 6-1, Wheeler “no,” Huber, Kniss absent. COUNCIL MATTERS 15. Council Comments, Questions, and Announcements Vice Mayor Andersen announced that the Policy and Services Committee Meeting would commence at 7:30 p.m. on Tuesday, March 25, 1997, instead of 7:00 p.m. and that Wednesday, March 26, 1997, would be the Adjourned Meeting of the City Council regarding the Stanford Sand Hill Road Corridor Projects. ADJOURNMENT: The meeting adjourned at 12:15 a.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 03/24/97 −414 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.