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HomeMy WebLinkAbout1997-07-07 City Council Summary Minutes 07/07/97 −435 Regular Meeting July 7, 1997 1. Resolution of the Council of the City of Palo Alto Expressing Appreciation to Dennis Neverve Upon His Retirement....83-437 2. Resolution of the Council of the City of Palo Alto Expressing Appreciation to Timothy Broderick for Outstanding Public Service as a Member of the Public Art Commission......83-437 3. Resolution of the Council of the City of Palo Alto Expressing Appreciation to Honey Meir-Levi for Outstanding Public Service as a Member of the Public Art Commission..............83-438 4. Appointments to Utilities Advisory Commission.........83-438 ORAL COMMUNICATIONS........................................83-439 APPROVAL OF MINUTES........................................83-439 5. Consultant Contract between the City of Palo Alto and EBA Wastechnologies for the Palo Alto Landfill Closure/Postclosure Plan Update and Phase II Closure Plans and Specifications83-440 6. Underground District No. 36 Property Owners Who Elect to Pay Underground Conversion Costs Over a Period of Years...83-440 7. Specific Joint Participation Agreement between the City of Palo Alto and Pacific Bell to Install Future Substructure Along Forest Avenue between the 700-900 Block...............83-440 8. Amendment No. 1 to Contract No. C7094781 between the City of Palo Alto and Pacific Consulting Service for Consulting Services Focusing on Preparation for Electric Industry Restructuring.........................................83-440 9. Evaluation of Attendant Parking Lot and Request to Continue Operation.............................................83-440 07/07/97 −436 10. Agreement between the City of Palo Alto, the City of Los Altos, the Los Altos Hills County Fire District, and the Santa Clara County Central Fire District for Automatic Aid into Interjurisdictional Fire Protection Service Zone......83-440 11. Contract between the City of Palo Alto and Underground Construction Company, Inc. for Utility Trench and Substructure Installation..........................................83-441 12. Amendment No. 1 to Contract No. C7093610 between the City of Palo Alto and Preservation Architect Barbara Judy for Consulting Services...................................83-441 13. Resolution 7697 entitled “Resolution of the Council of the City of Palo Alto Authorizing the Mayor to Execute the Ninth Amendment to Agreement to Provide Local Law Enforcement Access to the California Identification System”..............83-441 14. The Policy and Services Committee and the Finance Committee re Downtown Parking Structure Feasibility Study......83-441 15. Response to Council Request for Updated Information on Commute Coordinator Program, Downtown Parking Assessment Requirements and Fees, Residential Parking Permit Program Feasibility, and the City Shuttle Proposal.............................83-460 16. Request to Develop a Formal Valet Parking Program and Ordinance in Downtown Palo Alto.................................83-466 17. Agreement between the City of Palo Alto and Palo Alto Housing Corporation Concerning the Acquisition, Rehabilitation and Operation of a Twelve Unit Apartment Building at 290-310 Ventura Avenue, Palo Alto.....................................83-472 18. Council Comments, Questions, and Announcements........83-473 ADJOURNMENT: The meeting adjourned at 11:00 p.m............83-473 07/07/97 −437 The City Council of the City of Palo Alto met on this date in the Council Chambers at 7:13 p.m. PRESENT: Andersen, Eakins, Fazzino, Huber, Kniss (arrived at 7:13 p.m.), McCown, Rosenbaum, Schneider (arrived at 7:17 p.m.), Wheeler SPECIAL ORDERS OF THE DAY 1. Resolution of the Council of the City of Palo Alto Expressing Appreciation to Dennis Neverve Upon His Retirement MOTION: Council Member Fazzino moved, seconded by Schneider, to adopt the Resolution. Resolution 7692 entitled “Resolution of the Council of the City of Palo Alto Expressing Appreciation to Dennis Neverve Upon His Retirement” Police Chief Chris Durkin said over the past 30 years, Dennis Neverve made numerous contributions to the Department and the community, used experience and expertise to solve serious crimes, and molded young rookies into outstanding officers the community could depend upon. Mr. Neverve left an indelible mark on the Department with his professionalism and genuine interest in serving the citizens of Palo Alto. The Palo Alto Police Department was a better place because Mr. Neverve cared. Dennis Neverve was very proud to be a member of the Police Department. He would continue as a Reserve Police Officer for the City one or two days per week. MOTION PASSED 9-0. 2. Resolution of the Council of the City of Palo Alto Expressing Appreciation to Timothy Broderick for Outstanding Public Service as a Member of the Public Art Commission MOTION: Council Member Fazzino moved, seconded by Andersen, to adopt the Resolution. Resolution 7693 entitled “Resolution of the Council of the City of Palo Alto Expressing Appreciation to Timothy Broderick for Outstanding Public Service as a Member of the Public Art Commission” Timothy Broderick thanked the Council for the opportunity to be on the Public Art Commission. Citizen participation was important. MOTION PASSED 9-0. 3. Resolution of the Council of the City of Palo Alto Expressing Appreciation to Honey Meir-Levi for Outstanding Public Service as a Member of the Public Art Commission 07/07/97 −438 MOTION: Council Member Fazzino moved, seconded by Schneider, to adopt the Resolution. Resolution 7694 entitled “Resolution of the Council of the City of Palo Alto Expressing Appreciation to Honey Meir-Levi for Outstanding Public Service as a Member of the Public Art Commission” Honey Meir-Levi thanked the City Council and said it was a privilege to help. MOTION PASSED 9-0. 4. Appointments to Utilities Advisory Commission Council Member Rosenbaum said there were excellent new candidates for the Utilities Advisory Commission (UAC). With the rapidly changing nature of the utilities, particularly electricity, Council should take advantage of the opportunity for continuity. Council also had an opportunity to reach back into the past. Because of the excellent work of the incumbents and Paul Grimsrud who had served previously on the UAC, he would vote for Fred Eyerly, Paul Johnston, and Mr. Grimsrud. Council Member Kniss said despite what the San Francisco Chronicle printed that morning about citizen participation, the Council welcomed it and hoped that people would continue to do so. She concurred with Council Member Rosenbaum, but she also wanted to mention that Dexter Dawes would make an excellent commissioner in another round. Mr. Dawes had been involved in the community for some time. The candidates were an exemplary group. RESULTS OF THE FIRST ROUND OF VOTING FOR UTILITIES ADVISORY COMMISSION VOTING FOR DAWES: VOTING FOR EYERLY: Andersen, Eakins, Fazzino, Huber, Kniss, McCown, Rosenbaum, Schneider, Wheeler VOTING FOR GRIMSRUD: Andersen, Eakins, Fazzino, Huber, Kniss, McCown, Rosenbaum, Schneider, Wheeler VOTING FOR JOHNSON: VOTING FOR JOHNSTON: Andersen, Eakins, Fazzino, Huber, Kniss, McCown, Rosenbaum, Schneider, Wheeler VOTING FOR MADSEN: VOTING FOR MCFADDEN: VOTING FOR SORGENFREI: VOTING FOR ZAHARIAS: 07/07/97 −439 City Clerk Gloria Young announced that Mr. Eyerly, Mr. Grimsrud, and Mr. Johnston were unanimously appointed on the first ballot. ORAL COMMUNICATIONS T. J. Watt, homeless, spoke regarding prejudice possibly causing loss of value of City employees’ pensions. Edmund Power, 2254 Dartmouth Street, spoke regarding democracy and deceit. APPROVAL OF MINUTES MOTION: Council Member Fazzino moved, seconded by Rosenbaum, to approve the Minutes of March 17, 1997, as submitted. MOTION PASSED 9-0. MOTION: Council Member Fazzino moved, seconded by Rosenbaum, to approve the Minutes of March 24, 1997, as corrected. MOTION PASSED 9-0. CONSENT CALENDAR MOTION: Vice Mayor Andersen moved, seconded by Kniss, to approve Consent Calendar Item Nos. 5 through 13. 5. Consultant Contract between the City of Palo Alto and EBA Wastechnologies for the Palo Alto Landfill Closure/Postclosure Plan Update and Phase II Closure Plans and Specifications 6. Underground District No. 36 Property Owners Who Elect to Pay Underground Conversion Costs Over a Period of Years Resolution 7695 entitled “Resolution of the Council of the City of Palo Alto Determining Properties Electing to Pay Cost Over a Period of Years, Determining and Classifying Unpaid Assessments, and Funding Loans to Property Owners From the Electric Reserve for Underground Connections--Underground Utilities Conversion Underground Utility Assessment District 36" 7. Specific Joint Participation Agreement between the City of Palo Alto and Pacific Bell to Install Future Substructure Along Forest Avenue between the 700-900 Block 8. Amendment No. 1 to Contract No. C7094781 between the City of Palo Alto and Pacific Consulting Service for Consulting 07/07/97 −440 Services Focusing on Preparation for Electric Industry Restructuring Amendment No. 1 to Contract No. C7094779 between the City of Palo Alto and Resource Management International, Inc. for Consulting Services Focusing on Preparation for Electric Industry Restructuring Amendment No. 1 to Contract No. C7094780 between the City of Palo Alto and EES for Consulting Services Focusing on Preparation for Electric Industry Restructuring 9. Evaluation of Attendant Parking Lot and Request to Continue Operation Resolution 7696 entitled “Resolution of the Council of the City of Palo Alto Approving Assignment to Pacific Parking & Valet of the Rights and Obligations of National Parking Corporation in that Contract with the City of Palo Alto for Parking Lot Management Services” 10. Agreement between the City of Palo Alto, the City of Los Altos, the Los Altos Hills County Fire District, and the Santa Clara County Central Fire District for Automatic Aid into Interjurisdictional Fire Protection Service Zone Agreement between the City of Palo Alto, the Los Altos Hills County Fire District, and the Santa Clara County Central Fire Protection District for Interjurisdictional Fire Protection and Emergency Medical Response Service from the City of Palo Alto Fire Station Number 8 11. Contract between the City of Palo Alto and Underground Construction Company, Inc. for Utility Trench and Substructure Installation 12. Amendment No. 1 to Contract No. C7093610 between the City of Palo Alto and Preservation Architect Barbara Judy for Consulting Services 13. Resolution 7697 entitled “Resolution of the Council of the City of Palo Alto Authorizing the Mayor to Execute the Ninth Amendment to Agreement to Provide Local Law Enforcement Access to the California Identification System” Amendment No. 9 to Contract No. C0014413 between the City of Palo Alto and the County of Santa Clara to provide Local Law Enforcement Agency Acquisition to the California Identi-fication System 07/07/97 −441 MOTION PASSED 9-0. REPORTS OF COMMITTEES AND COMMISSIONS 14. The Policy and Services Committee and the Finance Committee re Downtown Parking Structure Feasibility Study The Policy and Services Committee recommends to the City Council regarding Downtown Parking Structure Feasibility Study approval of the staff recommendation to: 1) approve, in principle, and direct staff to proceed with the necessary steps leading to (a) the construction of a multi-level parking structure (four elevated decks, one at-grade level, and two below grade levels on the Lot S/L site); (b) the construction of a multi-level parking structure (three elevated decks and one at-grade level) on the Lot R site in the Downtown Business District, and (c) the formation of a parking assessment district to fund such a project; 2) authorize staff to negotiate a Phase II design contract with the consultant team utilized in Phase I and, if unable to successfully negotiate a satisfactory Phase II design contract, pursue a general solicitation of other consultants, consistent with the City’s established consultant selection procedures; 3) direct staff to proceed with the necessary and appropriate steps to secure the following additional services: design/construction management, assessment district engineer, bond counsel, and financial advisor; and 4) direct staff to proceed with the necessary and appropriate steps to identify an alternative suitable location for the Teen Center. Furthermore, to add the words “within the Downtown area” after Teen Center. The Finance Committee recommends to the City Council regarding Downtown Parking Structure Feasibility Study to: 1) approve, in principle, and direct staff to proceed with the necessary steps leading to (a) the construction of a multilevel parking structure (four elevated decks, one at-grade level, and two below grade levels on the Lots S/L site); (b) the construction of a multi-level parking structure (three elevated decks and one at-grade level) on the Lot R site in the Downtown Business District, and (c) the formation of a parking assessment district to fund such a project; 2) authorize staff to negotiate a Phase II design contract with the consultant team utilized in Phase I and, if unable to successfully negotiate a satisfactory Phase II design contract, pursue a general solicitation of other consultants, consistent with the City’s established consultant selection procedures; 3) direct staff to proceed with the necessary and appropriate steps to secure the following additional services: design/construction management, assessment district engineer, bond counsel, and financial 07/07/97 −442 advisor services; and 4) direct staff to proceed with the necessary and appropriate steps to identify an alternative suitable location for the Teen Center. Council Member Schneider said she would not participate in the item because of a conflict of interest since her business was within the assessment district. Council Member Wheeler said the Finance Committee had a broad-ranging discussion that went beyond the financial aspects. Vice Mayor Andersen asked, with regard to Proposition 218, if there had been any further progress on enabling legislation or anything that would suggest other cities were proceeding with assessment elections in November. Manager, Investments, Debts & Projects James Steele said the Governor signed a bill into law the previous week that had some procedural clarifications for Prop 218, such as assessment procedures, mail ballot procedures, and other technical issues. Staff did not foresee any substantive changes in the legislative arena. Vice Mayor Andersen said it appeared from the minutes of the Finance Committee meeting that there was less optimism from the staff than what he observed at the Policy and Services (P&S) Committee meeting regarding the potential for finding an alternative site for the Teen Center. City Manager June Fleming said staff felt it would not be an easy task but was not impossible. The Council had priorities that addressed services to teens, and staff had long been committed to that. The Recreation Division and Community Services Department expressed support for continuance. Staff was really committed to finding a place, would take the challenge, and return with some recommendations. Chop Keenan, 700 Emerson Street, Chair, Chamber of Commerce Parking Committee, said the issue was about addressing the parking deficit in the Downtown area. The assessment district was a self-taxing group; property owners paid for the new parking spaces. Staff conducted a survey which asked property owners if they wanted to be taxed. Two-thirds voted yes. The survey did not count the 525 University Avenue building owners who had indicated that they were also very supportive of the new assessment district. That would bring the yes votes to over 70 percent, which was overwhelming. The survey addressed Council’s concern of whether there was grassroots support by the people who would ultimately pay for it. The proposed structures had gone through a number of outreach meetings with residential neighborhoods that had commercial 07/07/97 −443 interests in the Downtown. The proposed structures had also gone through the Architectural Review Board (ARB), the Planning Commission, and the Council. There was a sense of where the structures should be, how big they should be, and what the cost would be. He asked for Council’s approval of the staff recommendation. Council Member Rosenbaum recalled that when it was discussed at the Finance Committee meeting, there was at least one property owner who was concerned about the assessments being based on use rather than on square footage. He asked if the Parking Committee looked into that issue. Mr. Keenan said no. The Parking Committee did not think it was an appropriate approach to how a property was assessed. Assessment was based on the parking deficit attributed to each property. There was not a better approach. Susan Frank, President and Chief Executive Officer, Chamber of Commerce, 325 Forest Avenue, said for over five years the Chamber continued to work side by side with the staff, resident groups, and business interests on issues such as parking structures and valet parking. The structures were a critical part of the 13-point plan which Council adopted several years before. It was a great opportunity to build 700 plus new spaces for customers, employees, employers, and others. Council would be hearing a concern that if new concrete were built, people would come. However, the people were already there and were parking in the neighborhoods and all over the Downtown. It was a great opportunity for the City to keep up with the changes that had taken place in the Downtown over the last decade. There was support from property owners, merchants, and businesses. She believed there was support from the larger community to keep Downtown vital and to continue to improve the Downtown parking situation. Hopefully, that would lead to alleviating some of the burden that had been placed on the neighborhoods and providing adequate and varied parking for all who visited or worked in the Downtown. Staff did an excellent job, and the Chamber supported staff’s recommendations. The Chamber hoped it had Council’s support as well. Council Member Wheeler said one of the concerns expressed by members of the residential community surrounding the Downtown area was that the construction of 700 new parking spaces would let more people come. A number of the spaces would be permit spaces. She clarified there was at least one or two points in the 13-point plan that addressed how the committee would work to make sure that those permit spaces were bought and used by Downtown employers and employees. Ms. Frank said she would leave the details of how a parking structure was split into permit and non-permit spaces to the staff that would 07/07/97 −444 developing the program. There was no doubt that employers wanted to buy parking permits; otherwise, there would not be a waiting list. Employees waited to purchase parking permits because they did not want to park in neighborhoods and have to walk long distances. There was a tremendous education effort underway that the Chamber was involved in with staff. None of those things would solve the problem on their own. That was why the Chamber had been working for over five years on things like residential parking permit program, City shuttle program, commute coordinator, alternative transportation measures; a number of efforts were always underway at any given time. There was a possibility of meeting with a few of the restaurants in the Downtown area to get them to look at alternative ways of parking for their employees to get them out of the neighborhoods. She said a portion of the new structures would be devoted to permit parking. She was not in a position to answer what percentage, but the Chamber was committed to trying to get employers and employees out of the neighborhoods and either out of their cars or into parking structures. Council Member Wheeler clarified that the Chamber was also working with the groups that were talking about residential permit parking. Ms. Frank said yes. Both University South and University North neighborhood groups sent representatives to the Parking Committee meetings. University South had been participating for over a year. University North had been participating for a couple of months. She attended the last University North parking subcommittee meeting along with staff, so the Chamber was in conversation with the groups and was listening to the concerns. Hopefully, some of the problems would start to be alleviated. Council Member Fazzino mentioned the other issue of the mix of uses in the Downtown area. Some uses, particularly restaurants, required much more parking than other uses. There was tremendous fear in the Downtown area about the new restaurant Zibibbo that would open up. He asked whether the Chamber was willing to address that issue as part of the final Comprehensive Plan discussions. Ms. Frank said the Parking Committee had not discussed particular uses relative to assessment issues. There was an effort underway to meet with the general managers and owners of some of the largest restaurants Downtown to explore creative opportunities to move employees out of where they were currently parking into other places that were not currently available to the public. She could not say for sure whether that would happen. The Chamber was getting property owners to step forward and help out. Jim Baer, Mr. Keenan, and she would be working on that and hoped to have some success. There were concerns of the new restaurant on Waverley and the kinds of cars 07/07/97 −445 and traffic it would generate. The situation could be dealt with in a positive way. Council Member Fazzino recalled there was an effort a couple of years before to convince a large restaurant operating in the Downtown area to focus on the need for a parking management program, but the proposal was rejected. Clearly, the issue underlay many of the concerns with respect to parking deficit. He asked what would happen if voluntary effort were unsuccessful. Mr. Keenan said in the mid-1970s, the Downtown lost all its anchor tenants. Currently, the anchor tenant was food and entertainment. Restoration Hardware and other types of upscale tenants followed that demographic draw. He cautioned the Council about targeting any particular use. Council Member Fazzino asked whether that was true even if it did have a significant negative impact on the parking. Mr. Keenan said the answer was not a yes or a no. If the City had 750 new spaces in the heart of the City, much of the evening parking function of restaurants would be absorbed. The Palo Alto Medical Foundation’s move out of the Downtown would have a significant effect on reducing parking pressure. It was the cumulative effect of all of those issues that was the solution. One by itself would not work. Council Member Fazzino clarified that the Parking Committee would endorse a parking management program that captured uses that created unique parking situations, such as having different groups of employees coming in at different times of the day. Mr. Keenan said it was not necessary to spend $20 million to have the key economic vitality of the Downtown targeted as a special circumstance. John Berwald, 261 Creekside Drive, recalled an article he read about a new restaurant that was opening up in Menlo Park because unlike Palo Alto, Menlo Park was not saturated with restaurants and there was plenty of parking. There was a nineteenth century poem about a calf path that attracted more pedestrians, animals, tractors, cars, trucks, etc., and finally became a freeway. When Central Expressway began, no one would have considered that it would end up as a “hodgepodge.” He believed that building new garages would attract more cars and people. The Council was good at balancing the social and economic issues. He believed that using large areas for parking exclusively was wrong. Ten years before, he suggested that Council consider the area from Ramona Street to Florence Street as a design area and to create a plaza between the Senior Coordinating Council building and the parking lot on Bryant Street, to close off the center 07/07/97 −446 as a pedestrian plaza, and to keep the ends open for access to the alley and garage. He recommended at that time that the property at the rear of the Senior Coordinating Council could be used for long-care aid for seniors and a skilled nursing or assisted living facility. He had spoken with a number of prominent citizens and the City’s Real Estate Division, who were interested in intergenerational housing as an adjunct use on that site with parking below and housing above. Council had an opportunity to consider the social and design issues. Rick Ferguson, 1037 Harker Street, representing the Palo Alto Civic League, said in the past year the Civic League considered traffic issues in great depth. He expressed disappointment with the final staff report (CMR:308:97), which had technical matters that required some fixing. The parking problem was predominantly the lunchtime restaurant problem. The solution proposed was $21 million worth of 24-hour, 7-day buildings of which there was a problem with the definition of the deficit. The staff report (CMR:308:97) was not matching up apples for apples. The traffic analysis numbers were in deep denial. There was no treatment of the loading patterns and the senior parking hazards for the sites that were listed. There was no projection for development parking demand after the structure was built, and there were missing costs in the analysis. Litigation and Council time costs were zero. There was no consideration of the crime or the homeless usage of the structure after hours, and there was no analysis of the cost or the burdens to citizens who were not participants in the assessment district. There was no response in the staff report (CMR:308:97) to the design queries that were posed on landscaping and the tailpipe tower implications. More time to respond to the staff report (CMR:308:97) and to participate with the Council would help correct many things. The staff report (CMR:308:97) was premised on bad economics. There was no competitive advantage. The consulting project was awarded on a sole-source basis. There was no natural competition between competing uses for the space. There was no competition, no cost control, and no innovation. It was politically incomplete. There were several places in the staff report (CMR:308:97) where public comments were represented as having been included and opened up, but comments were very limited or were not addressed as if they had not occurred. It was constitutionally defective. Regarding Prop 218, it was the wrong special benefit district as characterized in the staff report (CMR:308:97). It constituted a gift of air rights over the flat spaces to a number of private owners. Under the existing Comprehensive Plan, there were violations. The garage attracted traffic. At the Civic League’s forum, a deputy traffic administrator from Portland, Oregon, said that Portland discovered parking allocations downtown turned out to be the single strongest surrogate for traffic impact controls. There would be different growth if parking were accommodated according to a truer set of 07/07/97 −447 incentives. He asked Council to hold off on moving ahead with the recommendations and give others a chance to make comments. Roger Holland, 1111 Parkinson Avenue, said Palo Alto had a serious problem with traffic. If the parking structure were built and utilized, that meant adding at least 3,000 trips into and out of Downtown. The people would come, and it would get worse. The Council was thinking about using a solution that was invented in the 1950s, but it did not work. Stanford at least made the approach that it would not add anymore net trips. He asked Council to stop, think, and consider alternatives. Faith Bell, 536 Emerson Street, had concerns about the survey which asked building owners whether they supported the proposed construction. Building only one parking structure was a theoretical alternative, but it was not an alternative offered on the survey. Many people concerned about the shortage of parking would agree to more structures but might feel that one structure was sufficient or all that their businesses could afford to support. She was in favor of the Lots S/L site which combined maximum space utilization with the most reasonable cost, but the Lot R structure had a much higher cost per parking space gained. She was willing to pay her share, but she wanted it invested wisely. With the combination of those two structures and the one she was already assessed for, she expected to pay over $100,000 in parking assessments over the next 20 years. She asked about offering a choice of just one structure to those who would have to pay for it. She knew more permit parking was needed, but she did not feel it was her responsibility to provide subsidized parking spaces for local permit holders. The cost per space per year amortized over a fair number of years needed to be determined, and permit rentals should be charged a comparable fee. She asked why she should be taxed in the thousands each year when it was not her job to provide cheap, convenient parking for local office workers. If Council committed to building any structures, Council should severely limit the placement of permit parking in them. Downtown shoppers who supported the merchants who paid the tax assessments should have the use of those spaces. Currently, around $4,300 for 20 years of permit parking was charged for one space. She had to pay $25,000 to $30,000 dollars in 20 years to build that space. She reminded Council that the in-lieu payments which allowed developers to pay for the construction of parking spaces instead of providing their own were ludicrously low and not up to date. Also, the possible shuttle bus stops on University Avenue were about to be lost through the Downtown improvement project. If public transit were to be used, those spaces should be kept free. In addition, Council should make sure restrooms were included in any structures along with safe, well-lit, well-marked doors leading onto the main streets. 07/07/97 −448 Irvin Dawid, representing the Sierra Club, 3921 East Bayshore Road, said from an environmental perspective, how parking was dealt with was to a certain extent comparable to how Sand Hill Road was dealt with. Unfortunately, parking was not receiving the same amount of attention. He was the Sierra Club local chapter’s representative to the Metropolitan Transportation Commission, and he dealt with two issues as a member of the Congestion Pricing Task Force. The first was to implement congestion pricing, which was peak period pricing on the Bay Bridge when the toll would be higher. The other was a regional gas tax. If AB 595 passed sometime by the Year 2000, whether or not to increase the gasoline tax by 10 cents per gallon would be voted on. It was a market based transportation solution. Using the marketplace to tackle transportation problems was lacking in the proposed recommendations. He asked staff and Council how there could be a parking shortage when a centrally located parking lot was half empty. The problem that needed to be confronted was the deficit of free parking spaces. The City of Burlingame kept its parking meters, but Palo Alto removed its parking meters. The City sent a message that parking would be plentiful and free, and as much of it as possible would be provided. Burlingame had short-term and long-term meters. The permit situation that Palo Alto had for paid parking was counterproductive. If a permit were bought for one-fourth or half a year, there was a big incentive to drive every day. The Sierra Club recommended the City manage its existing parking places more efficiently. James Baer, 532 Channing Avenue, understood there would be extensive outreach both in design and community input with respect to the configuration and character of the structures. The Chamber was forming a subcommittee to work on congestion and traffic management by restaurants, and it was easy to describe the kind of problems unique to the restaurant industry. The largest restaurants in the Downtown employed about 125 people, which meant as many as 65 or 70 employees at a dinner shift who came at 4:30 p.m. before permit lots emptied. Employees were at minimum wage or near minimum wage, so there was a problem in getting them to use permits. Part of what the Chamber was about to start doing was a result of the transition from Stars to Spago. Spago was required in Los Angeles to have congestion management programs in its use permits. He met with the Spago organization who talked about how employees could not punch in their time cards without a ticket showing that they parked in an authorized, approved area rather than in the area surrounding the restaurant. Through the Chamber, there would be efforts over the next few months with three or four larger restaurants to work on how to get employees to park in remote parking lots such as Parking Lot J, how to get that parking monitored, and how to get management to take an active role in making that happen so that parking would be taken off the City streets and off the neighborhood streets. 07/07/97 −449 Warren Thoits, 629 Emerson Street, said Downtown Palo Alto was extremely successful, which was a great asset to the community as a whole. The parking deficit had existed for years and was not something new. Those who would be paying the bill were in favor of it. There were details to be worked out such as the restaurant parking, but those details could not be worked out without the parking facilities. He thanked staff for its efforts. The problem was well identified, quantified, and qualified, and solutions were proposed. He urged Council to move ahead with the action. Yoriko Kishimoto, 251 Embarcadero Road, appreciated that the proposal for the parking garages was part of the 13-point plan for Downtown parking developed by the Chamber and the City. However, she believed the points that Mr. Ferguson made earlier about the lack of a sense of balance and a coherent framework with whether it was political, economic, or social were valid. She referred to the list of estimated annual assessments in the staff report (CMR:308:97). Stanford spent about $830,000 per year to fund its entire shuttle system to take 1,200 commuters out of parking spaces. She compared that to the City’s spending about $6.7 million per year to take 729 cars off the streets. Council would be discussing commute coordinators, bike racks, shuttle systems, etc. It was the total resource assessment that Council would be comparing it against. Parking was one of the most critical factors that the City controlled in terms of transportation policy, and she would place the Council’s decision as possibly the most important resource allocation decision in terms of transportation planning in the Downtown area. She realized the $6.7 million came out of the business pockets. The issue of financing for transportation was the most difficult in transportation planning. Eventually, there would be discussion on taxing either the residents or businesses. If $6.7 million were taken out of those Downtown businesses’ pockets, it was money that the City would not have elsewhere. Council Member Eakins asked Ms. Kishimoto which page in the staff report (CMR:308:97) she referred to. Ms. Kishimoto said it was the third to the last page of the attachments to the staff report (CMR:308:97). The assessments were $3.27 million for Lot R and $3.4 million for Lots S/L, which totaled $6.7 million. Irv Brenner, 250 Byron Street, was concerned with the Lots S/L site because it was adjacent to his Downtown North neighborhood, which experienced the worst traffic in Palo Alto. The choice of that site would increase pollution and traffic through the already saturated neighborhood by hundreds of car trips. He was also disturbed by the proposed size of the project. Architectural Review Board (ARB) and Planning Commission reviews for buildings would be useless 07/07/97 −450 because the City would be building a disproportionately outsized and ugly structure next to them. Before spending approximately $16 million on the structure, the City should be looking at smaller, dispersed parking solutions such as shuttle buses or any of the many other innovative solutions used in forward thinking communities like Portland, Oregon; Aspen, Colorado; and Burlingame, California. Although in high-tech Silicon Valley, Palo Alto could not seem to devise a plan that was innovative or creative. The only benefits to the public at large was the purported reduction of on-street parking. The staff report (CMR:308:97) cited that it was meeting Policy 10 of the Comprehensive Plan. However, very few people in his neighborhood believed that would be achieved. There were no studies to prove it, and history seemed to prove otherwise. There had been more and more parking regardless of how many parking structures were built. Part of it was related to the placement and the price that was charged. Apparently, people were looking for free parking, so it did not matter. On the other hand, more important Comprehensive Plan policies were not mentioned, e.g., that of reducing neighborhood traffic and pollution and the goal of building structures that were appropriate to surroundings. No participation was solicited from Downtown North residents until late in the study. Downtown North residents were the most adversely affected by the plan. It seemed that no creative alternatives were proposed, and the result was a Neolithic one to an issue that cried out for public participation and fresh ideas. He urged the Council to proceed slowly and to elicit more public and neighborhood response. Mark Nanevicz, representing the Downtown North Neighborhood Association (DNNA), 228 Waverley Street, said DNNA was primarily concerned with resolving the existing problems that were within the neighborhood. Currently, there was an estimated 1,400 cars being parked in the neighborhoods every day. If there were some way of getting those cars off the streets and into existing or additional structures, there might be some level of support from DNNA. However, there was still a great level of concern that the parking structure would add more capacity to Downtown for further development and not resolve existing problems. At the meetings he attended with the Chamber, people had many creative ideas such as using tandem parking to pack more cars into structures. The issue should be resolved in the best way possible. Pat Burt, representing the University South Neighborhood Group (USNG), 1249 Harriet Street, said the USNG appreciated the opportunity to have input through the public outreach the Chamber had. In some circumstances, the USNG’s input had not been incorporated to date, and that distinction should be made. Two fundamental issues were discussed. First was whether the structures would reduce the residential and Downtown parking problems that currently existed. Second was what impact the structures would have 07/07/97 −451 on long-term traffic. Each issue was long term because there might be some short-term benefit immediately upon construction of the structures. If ultimately the demand for Downtown parking were increased, it did not necessarily contribute to alleviation of the problem. The USNG pressed for a high percentage of the spaces to be permitted parking spaces because that was where much of the problem existed. If there were not a high percentage of permits, the problem would probably not be diminished in the long term. He believed that key component had disappeared from the proposal, and the USNG wanted to see it put back. The assessment district was willing to spend millions of dollars on the structures, but the City should step back to see whether the assessment district could be reconstituted to allow at least a minority of the expenditures to address parking problems for patrons and employees through means other than building new parking spaces. He cited an example of how the sewage treatment plant and manufacturing businesses addressed reductions in copper and nickel discharges to the San Francisco Bay. For many years, manufacturers in Palo Alto knew about redesigning manufacturing processes to reduce pollutants but did not adopt them until they were adopted by the sewage treatment plant. Manufacturers finally recognized they saved money and helped the environment. People presumed that the way things had always been done was the only way and the best way of doing it. It would be effective for the City to look at alternatives. Council Member McCown asked for a current number of people on the waiting list for parking permits. City Traffic Engineer Ashok Aggarwal said that number was close to 1,300. Council Member McCown asked whether dollars raised through an assessment district process could be used for transportation related programs other than building a structure, e.g., running a shuttle bus. City Attorney Ariel Calonne believed the answer was yes. However, there would be a reengineering of the foundational concept on which the assessment district was created. To do that was a major feasibility undertaking. Council Member McCown clarified there would have to be some kind of engineering analysis of the relationship of such use of funds to all of the properties in the assessment district. Mr. Calonne said yes. Also, there was the Prop 218 required approval. To figure out how to design the programs to be funded would take a major analysis. 07/07/97 −452 Council Member McCown asked how many permits were used. Mr. Aggarwal said the number of outstanding permits was approximately 1,400. Council Member McCown clarified the waiting list was almost as great as the number of permits that were used. Mr. Aggarwal said the 1,300 figure did not reflect a true number of people on the waiting list. Some people already held permits for other parking lots while waiting for a preferred parking lot. Also, many people were on a waiting list for several parking lots. Council Member McCown asked whether there was any way to evaluate what the true net demand was for permit spaces. Mr. Aggarwal said it was a time-consuming task. He guessed the number was closer to 1,000. Vice Mayor Andersen said Prop 218 required property owners to vote for the assessment district, but in effect those who paid for it were the tenants. He asked whether a tenant had any voice if he or she did not own property. Mr. Steele said one part of the legislation that passed the previous week clarified that the ballot was mailed to the property owner. It was the property owner’s responsibility to arrange with the tenant as to whether the charges would be passed to the tenant. It was up to the tenant and property owner to document whether the tenant was voting, and it was up to the City to validate that the ballot was valid. Vice Mayor Andersen asked if at a later point the City wished to incorporate Transportation Demand Management (TDM) provisions or conditions, whether that would be a possibility in the process. Chief Transportation Official Marvin Overway said the only complication he saw would be if somehow funding for that TDM program was thought to be included in the assessment district process. Vice Mayor Andersen clarified that it was simply a matter of the City’s placing it as a condition and paying for it other than through the assessment district. Mr. Overway said yes. Council Member Wheeler said Mr. Burt raised the issue of the number of permit parking spaces in the structures. She thought that at the Finance Committee meeting, she received reassurances that the 07/07/97 −453 concept of making a majority of the spaces permit parking had not disappeared and was part of the plans to date. She asked for clarification. Mr. Overway said the majority of the spaces in those structures would be permit parking. Council Member Wheeler asked if Ms. Kishimoto was reading the proposed assessments list correctly. Mr. Overway said yes. However, he referred to page 29 of 37 of Attachment 1 of the staff report (CMR:308:97). In the table entitled “1996 Costs Based Upon Feasibility Study” was the average annual debt service of $1,776,000 per year. That was the same number that was included in the spreadsheet in the feasibility study. The numbers that Ms. Kishimoto referred to were part of an attachment he prepared to be mailed out with the survey that was sent to the property owners. All of the assessments shown above those numbers were correct. They simply added up to the wrong numbers. The correct numbers were included in the staff report in the feasibility study. The correct number for both structures combined was $1,776,000 per year. Council Member Eakins asked what the balance was in the 350,000-square-foot expansion buildout for Downtown as of June 30, 1997. Director of Planning and Community Environment Ken Schreiber said the number was approximately 295,000 square feet. Council Member Eakins said Mr. Baer pointed out that the City would not be able to provide the physical space for all the parking that would be associated with 295,000 square feet. She asked if results on the 1997 shuttles were in. Dena Mossar, Commute Coordinator, Palo Alto Medical Foundation, 1024 Emerson Street, said the numbers were on page 9 of the staff report (CMR:310:97), except the number for the Chili Cook-Off which was about 507 riders. Council Member Kniss said there were other cities and solutions mentioned. She asked if the City had looked at other solutions such as parking meters. Mr. Overway had not been with the City long enough to remember when parking meters were in place or when they were taken out. However, he understood some of the residual feelings. The Council, staff, and the Chamber committed to a 13-point parking program in the Downtown area. The color zones and the extension to a two-hour limit 07/07/97 −454 were an integral part of that program. The package of all 13 Downtown measures had to be looked at to address the parking issues. Only one measure could not stand alone. The successful color zone idea was creative and was being copied by some other cities in the Bay Area. City Manager June Fleming said she and Council Member Fazzino were with the City when parking meters were in place. She generally agreed with Mr. Overway. Council Member Kniss asked why the City would not return to parking meters. Ms. Fleming said the City had problems with parking meters. They were difficult to maintain, the City had collection problems, sometimes the meters did not work, and there was opposition among a number of people, including users. Council Member Rosenbaum was on the Council when it voted to remove the parking meters, and the Council’s decision was based on pure economics. The Stanford Shopping Center did not have parking meters, and the Downtown was suffering. The parking meters were not bringing in much money so the decision seemed reasonable. Council Member Kniss said while there was the 13-point plan, other issues needed to be addressed. She did not remember the history of parking meters, but it was helpful to learn from Council Member Rosenbaum that the decision was purely an economic issue. The reason of removing the parking meters in order to be competitive with Stanford might not be too far from some of the reasons why the City was moving in the direction it was headed. Council Member McCown said Ms. Bell raised the question of the possibility of one rather than two structures. If the City proceeded with two, she asked if there were a way to keep open the possibility that the City might build one structure and not the other, e.g., if the cost effectiveness of Lot R caused the City to remove Lot R from the package. Mr. Overway said there would be a substantial amount of additional information about the structures, such as design, use, staging, phasing, and cost, that would be brought to Council through public meetings. At that point the Council would decide whether to form an assessment district and, if so, whether to fund one or both the structures. Council Member McCown referred to page 5 of the staff report (CMR:308:97) which showed the cost estimate for the activities that needed to be done before the assessment district was formed. She 07/07/97 −455 understood it reflected approximately 60 percent of the design work. She clarified that in continuing forward with both structures, money would be spent based on the cost estimate, and after that, the Council would have a better handle on whether it wanted to put out as an assessment district both structures or only one. Mr. Overway said that was correct. Mr. Calonne said the Council had only the barest of environmental analyses in the report from the Watry Design Group. The Council would have to give thoughtful and detailed consideration of the environmental consequences of building whatever it chose to build. As the staff report (CMR:308:97) said, it was a decision in principle rather than any commitment on the part of the City. Council Member Fazzino clarified that the Council would have a number of additional opportunities to address the specifics of the project and decide whether or not the Council would proceed. Mr. Calonne said yes. Council Member Fazzino said there was a legitimate parking deficit problem, and as a resident of the Downtown area, he wanted to do everything he could to get cars off the street in both Downtown North and the residential areas south of University Avenue. The City needed to be careful not to create incentives for additional parking. He agreed that if the Council moved ahead with the parking structures, it had to support the structures as part of a much broader plan. The City had already taken several steps toward implementing that broader plan. However, he was concerned that those steps continued to have a negative impact on adjoining residential areas. The color zone concept was exciting. The parking structures addressed the need to provide additional parking in the Downtown area, but they only worked in concert with a residential parking program. The City needed to address parking management in the Downtown area, particularly with the kinds of uses that created additional burdens on adjoining residential areas. The issue was part of a difficult balancing act of encouraging economic vitality while making sure that there were no inordinate negative impacts on adjoining residential areas. He was pleased to see another item on the agenda which had to do with better parking management efforts in the Downtown area. He did not believe the City had moved as quickly as it should have with respect to Downtown parking and commute management plans. He was pleased that there was a proposal before Council to finally study the extension of the Marguerite Shuttle because that extension was a very important part of the broader parking and traffic management plan. He wanted to see a stronger City commitment to the other elements of the broader parking plan. Regarding design, it was a very important issue to him. He 07/07/97 −456 indicated at the Policy and Services (P&S) Committee meeting that he did not want to have the parking structures look like Wrigley Field from the outside. He suggested the possibility of retail on the outside of the parking structures. He also suggested extensive landscape. He wanted to consider other uses on the exterior of the garages which softened their effect and incorporated it into a much nicer degree aesthetically into the Downtown area. He supported the recommendations to move the project forward to the next step. Council Member Eakins said in downtown Portland, there was parking intrusion all around the free transit zone. There would always be intrusion near free parking. The City could learn principles from elsewhere, but the City had to do it its way. She agreed with Mr. Berwald about adding socially useful amenities and being careful about the detracting aspects of a parking garage. There was guidance from the P&S Committee because at the meeting, each Committee Member made clear statements about what parking garages should and should not be. The parking lots were not very attractive either because it was a hole in the street front or the block face. Therefore, replacing parking lots with garages might not be a bad idea. When looking at future buildings and growth, the City should remember all the creative, nontraditional solutions that had been discussed. The City should be coordinating development with availability of choices for transportation, and the time to start thinking about that was at the present. The City had a long-standing commitment to the garages as part of the 13-point plant, and she supported moving ahead with the project. Council Member Wheeler assured Mr. Brenner and the other people who had spoken from the neighborhoods that the residential neighbors’ views on the subject and other subjects that affected their lives were not inconsequential to the Council. Many of the concerns expressed had been addressed to some extent on a preliminary basis in the studies that the Council received. Many of them were concerns that would be addressed as the City entered into the next phases of actually designing a structure or two and evaluating the environmental consequences of those structures. The Council devoted considerable time and attention to some of the 13 points at previous meetings. The Council would give due attention to others of the 13 points in the future, but it was looking at them basically 1 point at a time. There were some points that had to merge and coalesce. She agreed with those neighbors who were concerned about the presumed freeing up of some parking spaces in their neighborhoods and what happened as a consequence, such as whether they refilled again or whether they eased the parking situation. When the initial studies came out, Council was told that if it moved on a fast track, the City might be ready to open a structure in three years. The issue of residential permit parking was part of the next item on the agenda, and that issue probably should be addressed long before 07/07/97 −457 the City started to build either one of the parking structures. She supported the Committees’ actions. She also assured the people who had addressed the Council both from the business community and from the residential community that all points of view would be taken into account and would be accorded due hearing by the Council. Council Member Kniss said there was a price for success. People liked the walkability and the sense of feeling that Palo Alto was a small town even though it had become a large City. High-rise parking structures did not give that same feeling. The Council needed to think carefully and be sensitive to the needs of those affected. The parking structures should not look like garages, but she was not sure exactly what they should look like. Also, the structures needed to be sustainable. There were garages that became shoddy after some period of time. A good example of a garage that held up well was Lot J where she felt comfortable parking because it felt like a safe area. She supported the recommendations. Council Member McCown said one of the important reasons to keep moving on the parking structure concept was that that particular element of the overall set of strategies had a very long lead time. Unless the City kept moving on it, an option was taken away from the total set of options that needed to be pursued continually. It was important that the Council firmly commit to moving forward with the parking structures while knowing that there were many open issues that would have to be struggled with in greater detail. Approximately ten years before, the Downtown Study led to the citizens’ committee which ultimately led to the recommendations that formed the Downtown Study results and resulted in the cap on development Downtown. There also had been some number of parking strategies out of those recommendations. She could not remember whether it was 13 points. There was a great deal of analyses of looking at opportunities on different sites Downtown, maximizing the efficiency of existing lots, and looking at the mix of permit and non-permit spaces. All were the same set of issues that the City continued to struggle with more than ten years. She believed one recommendation had been to pursue the possible construction of a parking structure. The result was Lot J, which was what was accomplished over the last ten years with regard to creating additional parking spaces. If the Council were renewing its commitment to that same multiplex approach, it was one that Council had to keep moving on or it would not be an effective tool in the future. She supported the recommendations. Mayor Huber said he was a community member of that 1986 Downtown Study Committee that Council Member McCown mentioned. He remembered that parking structures were discussed and the deficit then was the same as the current deficit. One way to deal with that was structures. Members of the public made some good comments and 07/07/97 −458 suggestions about what Council needed to follow up with. The next item on the agenda addressed some of them. The Council should not delay dealing with parking structures. The fact that other points had to be dealt with did not mean the parking structures should be deferred. Parking structures were discussed in 1986 and in 1994. It was time to act. In the interim period before the structures were built, he hoped that permit parking and other items to help alleviate some of the difficulties that the surrounding neighborhoods suffered from would be addressed. He supported the recommendations. MOTION: Council Member McCown for the Policy and Services Committee and Council Member Wheeler for the Finance Committee. AMENDMENT: Council Member Wheeler moved, seconded by Kniss, to amend the motion to direct the staff to use the balance in the In-Lieu Parking Fund account to help finance the consultant services needed prior to the formation of the assessment district, with the understanding that if, for whatever reason, an assessment district is not eventually formed, such funds will need to be reimbursed to the In-Lieu Parking Fund by the General Fund. MOTION AS AMENDED PASSED 8-0, Schneider “not participating.” RECESS: 9:30 P.M. - 9:45 P.M. REPORTS OF OFFICIALS 15. Response to Council Request for Updated Information on Commute Coordinator Program, Downtown Parking Assessment Requirements and Fees, Residential Parking Permit Program Feasibility, and the City Shuttle Proposal Council Member Schneider said she would not participate in the item because of a conflict of interest since her business was within the assessment district. Vice Mayor Andersen referred to page 2 of the staff report (CMR:310:97), which indicated “Currently 242 City employees participate in the commute program each month.” However, the chart on page 4 of the staff report (CMR:310:97) was not nearly the same total. He asked how the 242 figure was arrived at. Director of Human Resources Jay Round said the 242 figure included everybody who was registered in the program. Some of them were bicyclists, riders, and telecommuters. Not all of them would be freeing up spaces in the Civic Center garage. 07/07/97 −459 Vice Mayor Andersen clarified that although there might be some participation, that did not mean it would free up a parking space. Mr. Rounds said that was true. The City only had a little more than 200 employees who worked at City Hall on a daily basis. Vice Mayor Andersen clarified the 242 figure also took into account those who worked in other parts of the City. Mr. Rounds said that was correct. Susan Frank, President and Chief Executive Officer, Chamber of Commerce, said the Chamber of Commerce had long been supportive of creating a position or expanding the current City Commute Coordinator position to look at the Downtown. Over the last five years, the Chamber had a volunteer committee of approximately 15 people who met and talked about parking issues. One of the areas the committee dealt with was employer and employee education. There were many employers and employees Downtown, and not everyone could be reached. The committee had met with managers of businesses to suggest, for example, parking a company bus in a permit space instead of in the neighborhood. It was those types of issues that the Commute Coordinator position could deal with. The Chamber also supported a Residential Parking Permit Program, with the assumption that it worked in conjunction with parking structures, City shuttles, employer education, valet parking, and other programs. She attended neighborhood group meetings on residential parking permits and planned to attend future ones. Places to park had to be found for the people who would be displaced by a Residential Parking Permit Program. The staff report (CMR:310:97) also addressed the City shuttle. The Chamber was excited to be one of five organizations to be part of the shuttle for 1997, which was a success both in ridership and in the community response, and the Chamber hoped that Council would use the experiences of the Chamber’s committee. The Chamber was excited about possibly expanding the shuttle beyond Palo Alto events to provide a resource for employees. Rick Ferguson, 1037 Harker, said in February 1994, there was discussion at a Planning Commission meeting about how different Downtown developers viewed parking slot costs for small and large parcels. The developers admitted to approximately $40,000 plus per space for smaller parcels, which would be served by in-lieu parking or the new garages. When the $40,000 number was compared to the in-lieu fee of $19,000 or the proposed assessment of $25,000 to $29,000, there was a disparity. That disparity at the margin created a false incentive for development. It was generous subsidized parking and air rights space over the flat lots for the benefit of a larger office building developer. If the City knew that the cost was $40,000 plus inflation at the margin for a small Downtown lot 07/07/97 −460 to be developed, then the City should impose a $40,000 in-lieu fee or $40,000 assessment and make sure the numbers were clear when people voted. It was one of the hidden defects in the pricing related to proposed assessments and in-lieu fees. Dena Mossar, Commute Coordinator, Palo Alto Medical Foundation, 1024 Emerson Street, believed in the concept of the Commute Coordinator position for the Downtown. That concept treated the whole Downtown as though it were a single employer. She believed that alternative transportation programs could work by using various incentives, pricing, and the provision of real alternatives to people driving Downtown. Within the business community, there was great interest in expanding the Commute Coordinator position to encompass all Downtown employees. Currently, a subcommittee of the Chamber explored many transportation related alternatives. She hoped the City and the Chamber would work together to make the Commute Coordinator position function well for the entire Downtown. She believed that surface parking was an environmental evil. If the Commute Coordinator Program worked, the Program would get people out of their cars, and surface lots could be converted to more socially beneficial uses. With regard to the shuttle, she was pleased that the City was funding a study, which had to be done in order to find out what kind of shuttle system to start with and how it might be expanded in the future. There was much to learn about the shuttle. The variables were not totally understood because sometimes the shuttle was very successful and sometimes it was not. As Council Member Eakins’ pointed out during discussion of the previous agenda item, the City needed to craft solutions that were relevant to the City’s circumstances and needs. Unless the City took a broad look at where it might go with the next step in the special event shuttle chain, the City would not be able to realize a cost-effective local system that would meet the City’s needs. Council Member Wheeler thanked the staff for the staff report (CMR:310:97), which helped to keep Council up to date on some of the items. She attended many of the Try Transit/Spare the Air Campaign group meetings and shuttle meetings. In addition to the organizations mentioned in the staff report (CMR:310:97), she acknowledged and commended Dena Mossar who made the shuttle project very successful. With regard to the Commute Coordinator Program, she asked staff to expand on what the Commute Coordinator’s specific range of duties or activities might be in working with Downtown employers. Mr. Rounds said the staff should not mislead the Council or the community into thinking that the City could provide a Commute Coordinator for Downtown employers. The City could provide a resource to work with the Chamber of Commerce, the Downtown Parking Committee, and Downtown employers to help them put together programs 07/07/97 −461 for their employees. The City had a library of information and programs that had worked with City employees. To start, Commute Coordinator Kathy Lee would be devoting approximately 10 hours per week in those activities. It was a first for the City, and the City would need to assess what the needs were. City Manager June Fleming said when the concept was originally envisioned, the City made a commitment to the Council that when the staff made progress, it would begin to do what Mr. Rounds indicated. Then staff would make an assessment after some period of time to decide whether the level of staffing was sufficient. It would not be a full-time position. If more were needed or more would be benefited, Council could make that decision after the beginning. That was a commitment made when the Commute Coordinator position started. She emphasized that it was just the beginning point. Council Member Wheeler asked whether in the future the Commute Coordinator’s duties to satisfy the City’s needs would become more routine, easier, or less time-consuming so that more than 10 hours could be devoted. Mr. Rounds said the City was in effect on a maintenance program. Staff did not expect to be able to allocate more time out of the Commute Coordinator position than the 10 hours per week. If more time were needed, additional staffing would be needed. Ms. Fleming said staff learned that no matter how committed a person might be to the Commute Coordinator Program, it took care and feeding. Without additional work, the Program could not just be implemented, expected to flourish, and serve more people. That was the reason it took staff that long to be able to commit 10 hours. Council Member Fazzino saw the long-term need for a Commute Coordinator serving the entire Downtown area. The question was how best to implement that. He asked whether the City should wait and let the Commute Coordinator work for a few months with the focus on City employees while dabbling in broader Downtown employer commute management issues. He asked if that was the point when the City decided whether it needed additional resources or whether it should consider moving along a parallel path and encourage Downtown employers, possibly through the Chamber, to develop an alternative structure to meet the needs of Downtown employers and encourage a higher percentage of employees to identify transportation alternatives. Ms. Fleming said like the shuttle program, planning had to be done for the Commute Coordinator Program. It would not take years for staff to return to Council and say whether the City needed more or should be doing more. Staff needed to talk to the Chamber and 07/07/97 −462 businesses to see what the City could do. The City needed to make that first step. Council Member Fazzino said the objective was to put more Downtown employees on trains and buses and in carpools. Perhaps over time more Downtown employees would use the shuttle system, and some day there might be a remote shuttle lot. There were some things that the City needed to do at present based upon existing objectives. He asked how much longer the City had to wait to achieve those objectives, given those objectives were already known. Ms. Fleming said she could not give an answer that evening, but she knew that planning needed to be done. Council Member Fazzino said discussion had taken place before, and there had not been much progress with respect to better managing the needs of Downtown employers. Ms. Fleming said the discussion was about staff’s addressing those needs when it could free up the time. The staff freed up the time and was ready to address it. She understood Council Member Fazzino’s impatience, but there was not a plan. Council Member Fazzino was glad that funding was included in the 1997-98 budget “to complete a planning and design study for a community-based local bus shuttle system, which would serve Palo Alto residential neighborhoods and other local area destinations, including commercial areas, transit stations, schools, cultural and social centers.” It was a great vision. He asked whether the City had to wait until it was able to implement the entire shuttle system before it could implement component parts that were obvious, e.g., extending the Marguerite Shuttle system further into the Downtown area. Chief Transportation Official Marvin Overway said one of the specific purposes of trying to set the process was to find a way to incrementally move forward. Part of the issue was which increment came first because people had different priorities. He felt the creativity generated in the Try Transit/Spare the Air Campaign effort would spill over into the process. What could be done in the short term and what took further study would become evident, but he could not give a specific time line. Stanford University, on its own, was also looking for options to extend the Marguerite Shuttle system into Palo Alto. Once Stanford was involved in discussions, opportunities would move forward. The City wanted to be sure that it moved the shuttle system process forward with broad consensus and that there were resources to sustain such a system. 07/07/97 −463 Ms. Fleming said staff learned more and more each time the shuttle system was used for special events. If a shuttle service were implemented without some of those experiences, it would result in failure. Staff was not telling the Council that the City needed to have a Master Plan before it could take a step. Staff would look at reasonable increments to take. Vice Mayor Andersen said the Downtown Commute Coordinator alone would not make major shifts in behavior. One of the incentives employers would respond to was the Transportation Demand Management (TDM) concept as a condition, which he hoped the City would follow up with and give more consideration to in the near future. He also suggested the City had a major opportunity to expand reduction in automobile usage if it focused on high schools. Currently, there were extraordinary numbers of high school students who went to the California Avenue and Downtown areas for lunch. He hoped the Commute Coordinator would consider how to better educate young people on reducing the number of vehicle trips so they could contribute to the community and to the world community as far as the environment was concerned. Regarding the shuttle system, he realized there were many data points the City needed to include and consider before proceeding. If the shuttle were connected somehow to the high schools and perhaps the elementary and middle schools, there could be a large number of passengers. Many people could be persuaded if the City had an appropriate educational process, and he looked forward to seeing that in the future. No Action Required. 16. Request to Develop a Formal Valet Parking Program and Ordinance in Downtown Palo Alto Chief Transportation Official Marvin Overway said staff instituted valet parking two years before in an effort to address a need, to gain experience, and to see how sustained the need for valet parking would be. It was appropriate to develop a more formal program and an ordinance that would address concerns and be tailored toward valet parking. Staff brought the item to Council because it believed valet parking was a benefit to the Downtown area and the need for it would not go away. Valet parking had to be addressed on a more formal and controlled basis, and staff would do that based on the recommendations in the staff report (CMR:315:97). Director of Planning and Community Environment Ken Schreiber said about a year and a half before, there was an article in a magazine about the Bay Area restaurant scene. Two cities in the Bay Area were identified for having quality restaurants. One was Walnut Creek, and the other was Palo Alto. The City had a very vibrant restaurant scene, which was a different situation from three or four 07/07/97 −464 years before. From staff’s perspective, valet parking was a logical part of the restaurant environment that had emerged in Downtown Palo Alto. It was important to provide rules and structure. Valet parking was beneficial to the Downtown area. Council Member Kniss clarified each restaurant that had valet parking had a designated area in which they parked. Mr. Overway said that was correct. Council Member Kniss said according to the staff report (CMR:315:97), the valets appeared to not always be parking in designated parking places. There were reports of near rundowns, and valets raced up and down sidewalks as well. She asked how the City knew the valets were actually parking where they were supposed to park, who monitored the valets’ driving, and who monitored how valet parking establishments were run. Mr. Overway said the problem was that there was no effective monitoring system. Valet parking establishments were observed all of the time but were not doing what they were supposed to do part of the time. The City had requirements about how many spaces valet parking establishments could have, where they could park, what route they could drive, and how fast they could drive. Without an effective monitoring program and enforcement, the system would not work. Council Member Kniss said people became more accustomed to and liked valet parking, and it probably reduced the amount of cars circling in the Downtown area. She was not opposed to valet parking, but she was opposed to the way it was operated. She asked about the spaces in front of the restaurants that were reserved for valet parking. Mr. Overway said each business that had valet parking had designated spaces in front that were necessary for valet parking operation because there had to be a dropoff place outside of the travel lane. He believed at Maddalena’s and Chantilly II those spaces were in force in the evening hours but were available during the day for anybody to park. Council Member Kniss asked whether the City was assessing a fair amount of rent for those spaces. Mr. Overway said the City used the existing fee structure and a mechanism called an encroachment permit. He did not know whether that was fair and appropriate. The City also let valet parking establishments use the Civic Center for free, and he did not know whether that was fair either. Appropriate fees and what was fair 07/07/97 −465 would be sorted out through the process of establishing a formal program and an ordinance. Vice Mayor Andersen said the Sundance Mine Company in the past used a valet parking procedure. He asked whether that had ever been given formal City authorization. Mr. Overway was not aware that Sundance had a procedure. Vice Mayor Andersen knew that Sundance had valet parking in the past and that it had been parking cars on residential streets. Mr. Overway said in the Sundance restaurant area, in order to park on a residential street, a person had to make a circuitous route. The City had received complaints from that neighborhood about employees who parked their cars and walked to Sundance. Vice Mayor Andersen said the reason he raised the issue was to make certain that staff’s approach was not including only Downtown. There were many areas, such as California Avenue, where the issue could potentially occur. Mr. Overway said the City needed to look at all the businesses that might be providing valet parking. He believed there were some that did not have free spaces on the street and used a public structure. Others, such as MacArthur Park, had valet parking on their own private properties. There might be different approaches to solving some issues. Council Member Fazzino said he had seen valets park in front of his home and other homes in the Downtown area and asked whether there were any rules regarding where valet employees parked. Mr. Overway said currently there was none, but it was a valid point to include. Council Member Fazzino said other businesses, such as Borders Books & Music and Stanford Theater, might have a legitimate right to valet parking. He asked whether staff would consider those requests or whether the program would be limited to restaurants only. Mr. Overway said when staff instituted valet parking, staff felt it was fair to provide the same opportunity to all businesses. Whether that was appropriate was something that would be addressed in the process. Staff allowed valet parking periodically, such as when Stanford Theater had special occasions or when businesses had special parties. 07/07/97 −466 Council Member Fazzino supported the concept of valet parking. He was discouraged by some aspects of the program, but it worked on a limited basis. However, he believed that if staff opened valet parking to every business in the Downtown, a real problem for the community at large would be created, given the potential loss of a large number of on-street parking spaces. He asked where the line should be drawn. Mr. Overway said in Beverly Hills valet parking was limited to restaurants. He did not know if that would be different in Palo Alto. It had not been different to date. Many issues would be addressed during the process, and one of them was the City’s offering free use of City parking spaces. He believed there should be a charge for City parking spaces so that there was more of an incentive for businesses to use private properties for valet parking. The process would be a collaborative effort and would result in a plan that fit, worked in, and was unique to Palo Alto. Council Member Fazzino clarified that staff was committed to the requirement for off-street private parking spaces as a de rigueur criterion for inclusion in the program. Mr. Overway said the City required the business to use private parking spaces for valet parking. If the business could not do that, the City considered allowing use of a public space but reserved the right to revoke the use of that public space. Council Member Fazzino clarified that criterion would remain an integral part of any valet parking program that resulted from the study. Mr. Overway said yes. Council Member Rosenbaum said for high-end restaurants, valet parking made sense. He asked if patrons of restaurants such as Burger King were being discriminated against when the City allowed valets to use public spaces. Mr. Overway said providing valet parking was expensive and, therefore, leaned toward the high-end restaurants. He believed Burger King patrons would find it easier to find a parking space on the street or in a surface parking lot because valets used Level C of the Civic Center garage, the Lot Q garage, or the upper levels of the Webster/Cowper garage. Council Member Rosenbaum said valet parking made sense when done in areas not accessible to the public. When public spaces were used, there was an issue of fairness involved. 07/07/97 −467 Susan Frank, President and Chief Executive Officer, Chamber of Commerce, 325 Forest Avenue, said when it became apparent a few months before that the valet parking program in Downtown was potentially being abused, the Chamber of Commerce shared concerns about the misuse that was occurring, and she believed that valet parking was not worth it. After having many lengthy conversations with Mr. Overway, City Traffic Engineer Ashok Aggarwal, and Jim Baer about the philosophy of valet parking, she changed her mind. The Chamber Parking Committee discussed that if done properly and in conjunction with other items that were proposed earlier that evening, valet parking would work. Cars that were parked in neighborhoods and on-street spaces could be parked in private parking lots and less utilized lots. The Chamber supported staff’s recommendations to proceed with an ordinance and an effective monitoring system. The Chamber also supported revocation of the permission for valet parking if it were being abused. All the businesses that currently provided valet parking were Chamber members. A proper valet program developed by staff and approved by Council would allow for the right monitoring and the right punishment. James Baer, 532 Channing Avenue, said Stars Restaurant initially leased a private parking lot at High Street and Everett Avenue, had eight attendants, and charged nothing for parking during lunch or dinner. Stars wanted to make parking easy and accessible for customers and be able to move those cars to a designated place. The cost for the private parking lot was $1,500 per month, and the cost for four City spaces was $520 per month. The cost for the valet service for the first nine months was $7,500 per month. He compared that with a different type of valet parking system in which two valets collected $4 per ticket, the valet provider kept all the profits, and there was no cost to the business. However, that type of valet system used fewer valets because revenues would be the same no matter how many valets there were, and there was a direct correlation between how many bodies parked cars and the speed that cars were moved out of a double-parked situation. Stars had such a high volume of parking during the early months that the lot did not fulfill the needs, and revenues dropped. Valet parking in a 25-space private parking lot could accommodate 50 cars when regulated by an attendant through tandem parking, which could move cars from the street. Stars currently had a 22-car parking lot that it paid $1,500 per month for and was finalizing an arrangement for a 55-car parking lot which could accommodate 90 cars day and night. As an effort not to exacerbate the problems of a busy restaurant adjacent to residential neighborhood, Stars incurred the high costs of valet parking. The intensity of both traffic and parking could be controlled by quality monitored parking. Mark Nanevicz, representing the Downtown North Neighborhood Association (DNNA), 228 Waverley Street, said neighbors were not 07/07/97 −468 pleased with valets who parked in the neighborhood. At the last meeting the DNNA had with the Chamber, he changed his feeling about valet parking because valet parking could be changed from a bad situation to a positive situation if corrective steps were taken. He understood there currently was not much enforcement. If enforcement took place and there were serious consequences for people who broke the rules, most problems would effectively be eliminated. Pat Burt, representing the University South Neighborhood Group (USNG), 1249 Harriet Street, said without enforcement, there were many problems with valet parking, such as parking in the neighborhoods, speeding, street obstruction, and sidewalk obstruction. He referred to the terms and conditions of the encroachment permits on page 3 of the staff report (CMR:315:97), part of which required that “Evidence of an agreement, assuring that parking on private property is, and will remain, available for valet parking, must be provided to the City.” If a private parking facility were not feasible, the City allowed the use of an under-utilized public parking lot subject to availability. Stars was the only restaurant that currently had a private lot, but its parking demand far exceeded the 22 spaces. The encroachment permit requirement of a private parking facility was not enforced. If the City tightened up the existing requirement and required feasibility to be defined in a more restrictive sense, then cars could be moved into new spaces. There were approximately 2,000 unutilized private parking spaces every evening of the week, and creative ways to utilize them needed to be found. The community should ask itself whether it needed to change as a community to accommodate visitors who were affluent non-Palo Altans. Caroll Harrington, 830 Melville Avenue, said she was a member of the Chamber Parking Committee. The Sundance Mine Company parked its cars at the Foster’s Freeze lot half a block away. Staff presented very good information on valet parking. It was critical for the City to proceed in a logical, thoughtful manner with the restaurants that currently had valet parking and the new restaurants that requested it. She urged Council to support the recommendations. MOTION: Council Member Fazzino moved, seconded by Wheeler, to direct staff to do the following: 1. Work with the Chamber of Commerce Parking Committee and other downtown and residential interests to develop a formal valet parking program and ordinance for downtown Palo Alto, and refer it to the Policy and Services Committee for review and recommendation to Council; 2. Develop an effective monitoring, enforcement and revocation process, which can be added to the existing procedures, and 07/07/97 −469 return to Council with it by September, with the goal of being able to continue the use of the existing procedures on an interim basis, until such time that a formal program and ordinance can be developed, reviewed and adopted; 3. Utilize the following strategy for the interim period of time until a formal valet program and ordinance is established: a. Permit continuation of the existing three valet parking operations, subject to all existing and future appropriate conditions and regulations, b. Consider for approval applications that Evvia Estiatorio and Zibibbo have already submitted for valet parking, subject to all existing and future conditions and regulations, including a limitation of tow on-street spaces for drop-off/pick-up, unless there is a clearly demonstrated need for more spaces, and c. Consider for approval any additional applications submitted by businesses that want to use any on-street or off-street public parking spaces (parking lots and garages) for valet parking operations, only after staff has returned to Council in September with an effective monitoring and enforcement plan that can be added to the existing procedures. Vice Mayor Andersen said there was a concern about the number of expensive restaurants starting to appear in the community. The idea of whether the City should limit certain kinds of businesses through zoning had been discussed before. He hoped staff would be considering and discussing whether there should be some limit to the number of valet parking permits allowed. MOTION PASSED 7-0, McCown, Schneider absent. 17. Agreement between the City of Palo Alto and Palo Alto Housing Corporation Concerning the Acquisition, Rehabilitation and Operation of a Twelve Unit Apartment Building at 290-310 Ventura Avenue, Palo Alto MOTION: Council Member Fazzino moved, seconded by Kniss, to approve the staff recommendation to: 1) Approve the agreement (with its form of promissory note) with the Palo Alto Housing Corporation, in order to regulate rents and occupancy of the seven units as affordable low and very low income rental housing, and to secure the City’s interest in the value of the developer’s contribution for 40 years; 2) Authorize the Mayor to execute the agreement in substantially similar form; and 3) Authorize the City Manager to execute any other documents necessary to close the transaction acquiring 290-310 07/07/97 −470 Ventura Avenue including, but not limited to, a subordination agreement, and direct the City Manager to administer the provisions of the agreement. MOTION PASSED 7-0, McCown, Schneider absent. COUNCIL MATTERS 18. Council Comments, Questions, and Announcements Mayor Huber announced the winners of the Chili Cook-off contest: Best Spirit: Delightful Dumb Blond Chili Best Booth: Delightful Dumb Blond Chili Open Division: Elmo & the Old Quacker (1st Place) Dominatrix (2nd Place) Down Home Dave’s (3rd Place) Corporate Division: Safeway, Menlo Park (1st Place) Wholey Moley (2nd Place) Thin Blue Line (3rd Place) Restaurant Division: West Fresh (1st Place) Left at Albuquerque (2nd Place) Blue Chalk Cafe (3rd Place) Overall: West Fresh People’s Choice: West Fresh ADJOURNMENT: The meeting adjourned at 11:00 p.m. ATTEST: APPROVED: City Clerk Mayor NOTE: Sense minutes (synopsis) are prepared in accordance with Palo Alto Municipal Code Sections 2.04.180(a) and (b). The City Council and Standing Committee meeting tapes are made solely for the purpose of facilitating the preparation of the minutes of the meetings. City Council and Standing Committee meeting tapes are recycled 90 days from the date of the meeting. The tapes are available for members of the public to listen to during regular office hours.