HomeMy WebLinkAbout1997-12-15 City Council Summary Minutes Regular Meeting December 15, 1997
1. Resolution 7723 entitled ΑResolution of the Council of the City of Palo Alto Expressing Appreciation to Danny Darrell
Brand Upon His Retirement≅ ............................85-358
2. Resolution 7724 entitled ΑResolution of the Council of the City of Palo Alto Expressing Appreciation to Cliff Phocian
Foster Upon His Retirement≅ ...........................85-358
3. Resolution 7725 entitled ΑResolution of the Council of the City of Palo Alto Expressing Appreciation to Robert Charles
Makjavich Upon His Retirement≅ ........................85-359
4. Resolution 7726 entitled ΑResolution of the Council of the City of Palo Alto Expressing Appreciation to James E. Wood
Upon His Retirement≅ ..................................85-359 ORAL COMMUNICATIONS........................................85-359
5. Resolution 7727 entitled ΑResolution of the Council of the City of Palo Alto Expressing Appreciation to James Frank Nohel
Upon His Retirement≅ ..................................85-360 6. Approval of Appointment to the Board of Directors of the Palo Alto Public Improvement Corporation...................85-360 7. The Finance Committee recommends that the City Council adopt the Ordinance Authorizing Closing of the Budget for Fiscal Year 1996-97..........................................85-360 8. The Finance Committee recommends that the City Council adopt the resolution introducing the following electric rate schedules effective January 1, 1998: 1) Direct Access Electric Service Schedule E-9 applicable to large customers who use at least 1,000 KW per month and request electric service from an Energy Service Provider other than City of Palo Alto Utilities (CPAU); 2) Standby Electric Service Rate Schedule E-13 applicable to Direct Access customers who return to CPAU for commodity supply service on short notice due to default of their Energy Provider (ESP) or by their choice; and 3) Net-Energy Metering Rate Schedule E-10 applicable to
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residential customers who own and operate solar electric generating facilities.................................85-360 9. Contract between the City of Palo Alto and Core Business Technologies for the Purchase of an Automated Point-of-Sale Cash Receipting Software System.......................85-361
10. Resolution 7729 entitled ΑResolution of the Council of the City of Palo Alto Amending the Compensation Plan for Management and Confidential Personnel and Council Appointed Officers Adopted by Resolution No. 7713 to Amend the Salary
and Benefits for Council Members≅ .....................85-361
11. Annual Status Report on Developers= Fees and Adoption of Findings Regarding Unexpended Fees (AB 1600)..........85-361 12. Agreement between the City of Palo Alto and Mehdi Ghadiani, Consulting Computer Programmer, for Environmental Compliance Division..............................................85-361 13. Approval of Fire Compensation Plan and Memorandum of Agreement......................................................85-361 14. Contract between the City of Palo Alto and Royston, Hanamoto, Alley & Abey for CIP Design Consultant Services.......85-362
15. Ordinance 4472 entitled ΑOrdinance of the Council of the City of Palo Alto Amending Sections 18.04.030 and 18.88.020 of
Title 18 of the Palo Alto Municipal Code Regarding Carports≅ 85-362 AGENDA CHANGES, ADDITIONS, AND DELETIONS...................85-362 16. PUBLIC HEARING: Resolution of the Council of the City of Palo Alto Ordering Weed Nuisance Abated....................85-362 17. PUBLIC HEARING: The Palo Alto City Council will consider a Tentative Map application for Los Trancos Road Subdivision (Lands of Arrillaga, AP# 182-46-010) to subdivide 151+ acres into 8-lot, single-family residential lots and one private open space/common area parcel of 81+ acres in size....85-363 18. The Historic Resources Board Recommendation Regarding Request for Mills Act Property Designation Agreement for 420 Maple Street................................................85-364 19. Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1997-98 to Provide an Additional Appropriation for Capital Improvement Project 19620, Civic Center Local Area Network (LAN) Upgrade...............85-375
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21. Amendment No. 1 to Consultant Contract No. C7094743 between the City of Palo Alto and Dames & Moore for Design of Temporary Seismic Bracing for the Municipal Service Center85-375 22. Mayor Huber re Cancellation of the December 22, 1997, Regular City Council Meeting..................................85-376 23. Council Comments, Questions, and Announcements........85-376 ADJOURNMENT: The meeting adjourned at 9:10 p.m. in honor of the exceptional service of Vice Mayor Andersen and Council Member McCown................................................85-377
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The City Council of the City of Palo Alto met on this date in the Council Chambers at 7:08 p.m. ROLL CALL PRESENT: Andersen, Eakins, Huber, Kniss, McCown, Rosenbaum, Schneider, Wheeler ABSENT: Fazzino SPECIAL ORDERS OF THE DAY
1. Resolution 7723 entitled ΑResolution of the Council of the City of Palo Alto Expressing Appreciation to Danny Darrell
Brand Upon His Retirement≅ MOTION: Mayor Huber moved, seconded by Andersen, to adopt the Resolution. Fire Chief Ruben Grijalva said five Palo Alto Fire Department firefighters were retiring and were being recognized for a cumulative total of 147 years of excellent service to the community. The five men were recognized for having given caring and compassionate service to the City in both emergency and non-emergency areas, all of whom would be sorely missed. Mr. Brand was especially recognized for the caring manner in which he trained upcoming firefighters. Danny Darrell Brand expressed his thanks to the City for having given him the opportunity to serve Palo Alto, which he would miss. MOTION PASSED 8-0, Fazzino absent.
2. Resolution 7724 entitled ΑResolution of the Council of the City of Palo Alto Expressing Appreciation to Cliff Phocian
Foster Upon His Retirement≅ MOTION: Mayor Huber moved, seconded by Andersen, to adopt the Resolution. Fire Chief Ruben Grijalva expressed appreciation of Mr. Foster for his tireless service to the City whose expertise in hazardous materials had been a real asset to the department. Cliff Phocian Foster expressed his thanks to the City for his years as a firefighter. MOTION PASSED 8-0, Fazzino absent.
3. Resolution 7725 entitled ΑResolution of the Council of the City of Palo Alto Expressing Appreciation to Robert Charles
Makjavich Upon His Retirement≅
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MOTION: Mayor Huber moved, seconded by Schneider, to adopt the Resolution. Fire Chief Ruben Grijalva expressed his great respect for Mr.
Makjavich, affectionately known as Αthe General,≅ who was known for being able to get things done. Robert Charles Makjavich expressed his appreciation for Palo Alto and having had the opportunity to grow up and work in the City. MOTION PASSED 8-0, Fazzino absent.
4. Resolution 7726 entitled ΑResolution of the Council of the City of Palo Alto Expressing Appreciation to James E. Wood
Upon His Retirement≅ MOTION: Mayor Huber moved, seconded by Rosenbaum, to adopt the Resolution. Fire Chief Ruben Grijalva expressed particular appreciation for the great number of years Mr. Wood worked at the Stanford Linear facility in training, fire prevention, and his development of specifications for the engine working at Station No. 7. James E. Wood thanked Council for having created a beautiful city and for having allowed him to be part of it. MOTION PASSED 8-0, Fazzino absent. ORAL COMMUNICATIONS T. J. Watt, homeless, spoke regarding photos of projects. Cathy S. Brandhorst, homeless, Little Orchard, spoke regarding issues with other nationalities. Lynn H. Chou, 3436 South Court, spoke regarding the floor area ratio of carports included in limits. Edmund Power, 2254 Dartmouth Street, spoke regarding the recent election and one party political system in Palo Alto. Mary C. Erikson, 425 High Street #121, spoke regarding the use of the corner of Page Mill and El Camino Real for cheap housing and
Palo Alto Medical Foundation=s plans for its property. Kathleen Haney, 235 Hamilton Avenue, thanked the City for its collaboration with the Chamber of Commerce on the Snowmen and Sleigh Ride event.
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APPROVAL OF MINUTES CONSENT CALENDAR MOTION: Vice Mayor Andersen moved, seconded by Rosenbaum, to approve Consent Calendar Item Nos. 5 - 15.
5. Resolution 7727 entitled ΑResolution of the Council of the City of Palo Alto Expressing Appreciation to James Frank Nohel
Upon His Retirement≅ 6. Approval of Appointment to the Board of Directors of the Palo Alto Public Improvement Corporation 7. The Finance Committee recommends that the City Council adopt the Ordinance Authorizing Closing of the Budget for Fiscal Year 1996-97, authorizing: 1) Closure of the 1996-97 Budget; 2) Reappropriating of funds into the 1997-98 Budget; 3) Closure of capital improvement projects which had been completed and transfer of remaining balance to the appropriate reserves; and 4) Initial funding of the General Fund Infrastructure Reserve, consistent with the Council approved General Fund Reserves policy (CMR:210:97).
Ordinance 4470 entitled ΑOrdinance of the Council of the City of Palo Alto Authorizing the Closing of the Budget for Fiscal Year 1996-1997" 8. The Finance Committee recommends that the City Council adopt the resolution introducing the following electric rate schedules effective January 1, 1998: 1) Direct Access Electric Service Schedule E-9 applicable to large customers who use at least 1,000 KW per month and request electric service from an Energy Service Provider other than City of Palo Alto Utilities (CPAU); 2) Standby Electric Service Rate Schedule E-13 applicable to Direct Access customers who return to CPAU for commodity supply service on short notice due to default of their Energy Provider (ESP) or by their choice; and 3) Net-Energy Metering Rate Schedule E-10 applicable to residential customers who own and operate solar electric generating facilities.
Resolution 7728 entitled ΑResolution of the Council of the City of Palo Alto Adopting Utility Rate Schedules E-9 and E-13 Pertaining to Direct Access Service and E-10 Pertaining to Net-Energy Metering of the City of Palo Alto Utilities Rates
and Charges Pertaining to Net-Energy Metering≅ 9. Contract between the City of Palo Alto and Core Business Technologies for the Purchase of an Automated Point-of-Sale Cash Receipting Software System
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Escrow Agreement between the City of Palo Alto, Core Business Technologies, and Breslin, Sweeney, and Earle for Third Party
Custodial Services related to Core=s Programming Source Code
10. Resolution 7729 entitled ΑResolution of the Council of the City of Palo Alto Amending the Compensation Plan for Management and Confidential Personnel and Council Appointed Officers Adopted by Resolution No. 7713 to Amend the Salary
and Benefits for Council Members≅
11. Annual Status Report on Developers= Fees and Adoption of Findings Regarding Unexpended Fees (AB 1600) 12. Agreement between the City of Palo Alto and Mehdi Ghadiani, Consulting Computer Programmer, for Environmental Compliance Division 13. Approval of Fire Compensation Plan and Memorandum of Agreement
Resolution 7730 entitled ΑResolution of the Council of the City of Palo Alto Adopting a Compensation Plan for Fire Department Personnel and Rescinding Resolution No. 7641"
Resolution 7731 entitled ΑResolution of the Council of the City of Palo Alto Amending Section 1501 of the Merit System Rules and Regulations Regarding the Memorandum of Agreement Between the City of Palo Alto and Local 1319, International
Association of Fire Fighters≅
Ordinance 4471 entitled ΑOrdinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1997-98 to Provide an Additional Appropriation for Salary and Benefit Increases Beginning July 1, 1997 for Employees Represented by the International Association of Firefighters Local 1319 and
for a Study of Comparable Fire Service Agencies≅ 14. Contract between the City of Palo Alto and Royston, Hanamoto, Alley & Abey for CIP Design Consultant Services
15. Ordinance 4472 entitled ΑOrdinance of the Council of the City of Palo Alto Amending Sections 18.04.030 and 18.88.020 of
Title 18 of the Palo Alto Municipal Code Regarding Carports≅ MOTION PASSED 8-0 for Item Nos. 5-12, and Item No. 14, Fazzino absent. MOTION PASSED 7-1, Rosenbaum Αno≅ for Item No. 13, Fazzino absent.
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MOTION PASSED 6-0 for Item No. 15, McCown, Schneider Αnot
participating,≅ Fazzino absent. AGENDA CHANGES, ADDITIONS, AND DELETIONS MOTION: Council Member Rosenbaum moved, seconded by Wheeler, to move Item No. 20 forward to precede Item No. 19 to consolidate the public testimony with Item No. 18. MOTION PASSED 8-0, Fazzino absent. City Manager June Fleming announced that Item No. 20 would become Item No. 18A. CLOSED SESSION UNFINISHED BUSINESS PUBLIC HEARINGS 16. PUBLIC HEARING: Resolution of the Council of the City of Palo Alto Ordering Weed Nuisance Abated Mayor Huber announced that it was the appropriate time and place set for a Public Hearing on Resolution 7718 declaring weeds a nuisance. Notice of the hearing had been given in the time, manner and form provided for in Chapter 8.08 of the Palo Alto Municipal Code. He asked whether the City Clerk had received any written objection. City Clerk Gloria Young replied no. Mayor Huber declared the Public Hearing open. Receiving no requests from the public to speak, the Public Hearing was closed. Mayor Huber asked that the record show no persons appeared or filed written objections against the weed abatement proceedings and that any resolution passed by the City Council on the matter would reflect that finding. MOTION: Council Member Schneider moved, seconded by Eakins, to adopt the Resolution.
Resolution 7732 entitled ΑResolution of the Council of the City of
Palo Alto Ordering Weed Nuisance Abated≅ MOTION PASSED 8-0, Fazzino absent. 17. PUBLIC HEARING: The Palo Alto City Council will consider a Tentative Map application for Los Trancos Road Subdivision (Lands of Arrillaga, AP# 182-46-010) to subdivide 151+ acres
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into 8-lot, single-family residential lots and one private open space/common area parcel of 81+ acres in size. The application is accompanied by requests for Conditional Exceptions to permit 1) main access road grades in excess of the 15% maximum grade limitation of PAMC Section 21.20.210 and 2) a main access road width of 24 feet and right-of-way width of 42 feet, in-lieu of the required 30 foot road width and 50 foot right-of-way width, as required by PAMC Section 21.28.020. City File Nos. 94-SUB-5 and 94-EIA-31. (Applicant has requested that the item be continued to January 20, 1997) Resolution of the Council of the City of Palo Alto Certifying the Adequacy of the Los Trancos Road Subdivision Final EIR and Making Findings Thereon Pursuant to the California Environmental Quality Act MOTION TO CONTINUE: Vice Mayor Andersen moved, seconded by McCown, to continue the public hearing to a special meeting at 3:00 p.m. on Monday, January 20, 1998, for the purposes of a tour of the Los Trancos site and to the Regular Meeting of Tuesday, January 20, 1998, for the purposes of public testimony and Council action. MOTION TO CONTINUE PASSED 8-0, Fazzino absent. REPORTS OF COMMITTEES AND COMMISSIONS MOTION: Council Member Rosenbaum moved, seconded by Wheeler, to move Item No. 20 forward to precede Item No. 19 to consolidate the public testimony with Item No. 18. MOTION PASSED 8-0, Fazzino absent. 18. The Historic Resources Board Recommendation Regarding Request for Mills Act Property Designation Agreement for 420 Maple Street Agreement between the City of Palo Alto and Michael J. Levinthal for Historic Property Preservation Zoning Administrator Lisa Grote said the applicant requested the City enter into a Mills Act contract with the owner of the existing
house at 420 Maple Street. The house was currently on the City=s local inventory as a Category 2 and had been on the National Register of Historic Places since 1982. A Mills Act contract represented an agreement between a local jurisdiction and the property owner of a historic residential site to provide tax relief to the property owner in exchange for compliance with certain and specific preservation restrictions. When a City had the option to decide which properties were eligible for such a tax incentive, the items to take into consideration included the condition of the existing house, development pressure on the site, and the need for rehabilitation of the existing structure. The key elements in the
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proposed contract included the fact that the property owner would provide: 1) an historic survey of both the structure and the grounds on the site, 2) photo documentation of the entire exterior of the house and partial interior of key elements in the house, 3) site plans and elevations for the exterior of the house, and 4) elevations and partial elevations for the interior of the house. Also, a preservation plan would be developed to cover the remaining historically significant gardens outside, the exterior of the house would be preserved, and a partial interior of the house would be preserved. Every year the property owner would provide the City with a list of maintenance and repair items to be conducted, and at least $2,000 of the tax relief would be spent on such repair and maintenance items. A public tour would be conducted once per year and a City inspection once per year, paid for by the applicant. In 1996, the County had collected approximately $18,000 in revenue and property tax from the site in question, $1,800 of which had gone to the City and $7,000 of which had gone to the Palo Alto Unified School District (PAUSD). Should the agreement be approved, the amounts would be significantly reduced. However, the exact amount
would not be known until the County Assessor=s Office had reassessed the property and determined the reduction. In exchange for the loss, the items outlined in the contract would be obtained. The Historic Resources Board (HRB) had reviewed the application on November 5, 1997, and recommended delay until such time the City implemented an overall process for reviewing and evaluating Mills Act contracts, also the subject of Agenda Item No. 20. The HRB posed several questions outlined in the staff report (CMR:492:97)
with staff=s responses, which led to the recommendation to delay decision making. Staff recommended approval of the contract subject to the terms and conditions in the contract. City Attorney Ariel Calonne said the interlineation at the bottom of page 2 of the proposed agreement attached to the staff report (CMR:492:97) was a note from Planning staff who, after having gone to the HRB, noticed the contract failed to conform to the staff
recommendation. The phrase should be changed to read, Α...for the
remaining historically significant features...≅ Historic Resources Board Chairperson Caroline Willis said the HRB was very excited about using the Mills Act, which was a very positive tool, but because the building was not threatened and had already received extensive renovation work, there was no pressure to make an immediate decision. The HRB was concerned that the Mills Act be used to its absolute best advantage, which might better occur in a more methodically slow process to determine the best ways it could be used. The HRB had also expressed concern about the lack of sufficient documentation with regard to the effect of the Mills Act on the property under question. The HRB wanted to see more of what already existed as far as implementing preservation methods. The HRB was not informed about Agenda Item No. 20 prior to receiving the packet, so there was no HRB
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consensus. However, several members of the HRB had expressed the desire to delay Mills Act decisions until permanent regulations were in place so some provision would be made for threatened buildings. An historic property should not fail to take advantage of the Mills Act because decisions were delayed if, in fact, a tool exists whereby something could be saved which would not otherwise be saved. Council Member Wheeler said Ms. Grote and the staff report (CMR:492:97) indicated that despite the discussion and concerns raised at the HRB meeting, staff continued to support granting the request for Mills Act. However, no specifics as to why staff had made such a recommendation were given.
Ms. Grote said some of the HRB=s concerns were about the amount of information available for the gardens and the structure itself. As part of the contract, staff had stipulated that additional information be provided to the City so it would have full documentation on the remaining significant historic areas of the garden, and interior and exterior features of the house. The very specific and known aspects would be preserved. As part of the contract itself, staff would obtain information leading to a recommendation for approval of the contract. Council Member Wheeler asked about the per pupil cost in Palo Alto to the PAUSD since the application or any other application had minimal impacts on revenues to the City but had a more significant impact on revenues to the PAUSD. Vice Mayor Andersen said the cost per pupil in Palo Alto was approximately $7,000, i.e., the revenue from the one house would pay for one student. Council Member Wheeler thought there would be some discussion by the applicant about the Mills Act and the requirements thereof since a number of Commissioners had raised the issue of the public benefit, quid pro quo, or at least the opportunity the Mills Act might present. At the HRB meeting, the applicant made it very clear that the Mills Act would not require the grantee to provide any kind of public benefit. Staff was asked whether it was permissible for the local government evaluating a Mills Act application to make such a decision, i.e., whether the local government in designing its criteria and specifications for application of the Mills Act to specific properties could require something be given back to the community in some way. Mr. Calonne replied yes.
Council Member McCown asked whether Council=s assignment to staff, which was essentially the same as Agenda Item No. 20, to conduct a broader policy evaluation of criteria for the use of the Mills Act,
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was part of the planned implementation or development of the historic resources ordinance. Director of Planning and Community Environment Ken Schreiber replied yes. Council Member McCown asked whether the applicant was aware of
Council=s standing assignment when the application was filed that staff develop policy direction for the Mills Act. Mr. Schreiber said because the Mills Act assignment was a stand-alone assignment, it had not received sufficient priority during review of the 1997-98 City budget and the Planning Division work program. Staff then took advantage of an opportunity to fold the assignment into the Historic Resources Ordinance. However, discussion in May and June of 1997 during the budget process
clearly showed staff=s ability to do so. Only when the work program was put together had staff been able to merge the assignment. The applicant might not have been aware of the pending Council assignment. Council Member McCown clarified at the time the application was submitted, no red-flag had been raised concerning possible policy direction on the Mills Act. Ms. Grote thought the applicant had been informed that the City had no procedure in place and only one house had utilized the Mills Act within the past few years. Staff had not red-flagged the property
as a Αproblem,≅ but the applicant had been made aware of the fact the City had no set procedure. Council Member Kniss thought the primary negative of the Mills Act was toward the PAUSD, which would lose an enormous amount, i.e.,
the equivalent of one child=s education. She asked how the Mills Act had been derived or what was behind it. The City sought ways to preserve historic homes while one jurisdiction appeared to be making decisions for another. Mr. Calonne said staff could only speculate since the legislative history had not been examined. The Mills Act would be extremely useful in a community with a limited number of historic properties where it was not worth the effort to develop a regulatory program and few places wanting to deal with it. Although not inappropriate for application in Palo Alto, the policy consideration about the loss of revenue to the City and other taxing entities would not be so pressing a concern in such communities. Council Member Kniss asked how school systems had been affected in other cities where the Mills Act had been used extensively.
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Ms. Willis was unable to answer. Palo Alto was a basic aid district as far as schools and the Mills Act might affect school funding differently than other communities. Mr. Schreiber concurred. Council Member Kniss agreed with the exception that the City went off basic aid. In examining the policy, she understood the desire
was to make it Αworthwhile.≅ However, consideration had to be given to financial ramifications and whether it would mean anyone living in a historic house would be able to obtain a tax break for a remodel. Policy was being established with long-term ramifications. Mr. Schreiber said the issue before Council was seen by staff as an individual application. The setting of policy had to occur within the contest of developing the Historic Preservation regulations which would be presented to Council in May 1998. Any prior discussion of the regulations would clearly include the issue of incentives. Advocating incentives for preservation of historic properties was easy, of which the Mills Act was primary. Council Member Kniss had raised the exact questions which had to be flushed out and discussed by Council in terms of the possibility of more than just one or two applications. The level of significance on
the historic list of a property=s eligibility or ineligibility for the Mills Act was also an important consideration. Unless Council directed otherwise, staff would not interpret the current item as an establishment of City policy, one of the reasons for which staff had included Agenda Item No. 20. Although a moratorium had not been placed on applications, given the place the City was in the process, it would be an appropriate policy decision on the part of Council to stop the flow of applications until it had sorted out the bigger questions. Vice Mayor Andersen asked whether staff had worked on the policy recommendations with regard to the Mills Act. Ms. Grote replied no. Vice Mayor Andersen thought it became clear that the jurisdiction most impacted was the PAUSD with the City making the choices. He hoped the PAUSD would be notified of any policy making a public impact and would benefit the PAUSD in some way, i.e., children going through the home, etc. Consideration of the impact on the PAUSD should be taken into consideration. Guy Blase, 356 Coleridge Avenue, spoke regarding his legal experience with Mills Act issues and the fact the current work for the Levinthals was his fifth. The Mills Act preceded Proposition 13 and was viewed as a major tool to preserve historic properties in the days when property taxes were very high. Since the passing of Proposition 13, virtually no Mills Act activity had occurred
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because the tax benefits under the Mills Act were not as beneficial as Proposition 13. Any property owner who owned historic property prior to 1978 had no incentive to enter into a Mills Act agreement, which was the case with many historic properties in Palo Alto. The points of concern with the Levinthals were contained in a letter to Council. The key element in a Mills Act agreement was the promise or obligation of the property owner to preserve the property. Without a Mills Act agreement, even if the property was designated as historic, the property owner had no obligation to preserve the property. The benefits to property owners of tax relief would not have to be used to preserve the property; however, if the property owner failed to preserve the property, the City had a very large sanction to bring to bear, e.g., termination of the agreement. Upon termination of the agreement, substantial amounts of taxes would have to be repaid by the property owner to the tax collector. The agreement then became very effective. The issue for the Levinthals was not so much preservation of the property, but that future buyers would enjoy the benefits of the Mills Act along with an obligation to preserve the property. The procedure supported by the HRB to present Mills Act applications prior to preserving the property had been followed by the Levinthals, who would have been granted the Mills Act if application had been made when the work began three years prior. Michael Levinthal, 420 Maple Street, said when the renovation of the house began three years prior, extensive meetings with the HRB for every detail of the renovation occurred. At the time, the Mills Act process was unclear to him. The desire of he and his wife was to preserve the Birch Clark house while receiving the benefits of the Mills Act, preserving a piece of architectural history for Palo Alto. Bob Moss, 4010 Orme Street, spoke regarding impacts of the Mills Act on and the disproportionate amount of tax loss to the PAUSD without a voice in the vote. The overall issue of public policy which gave tax breaks to private individuals was similar to the break from any public benefit. Council should defer acting until it had had an opportunity to examine the entire issue of Mills Act approvals and what the City would receive in exchange. Concern was expressed that the property in question was only a Category 2 building, while many more Category 1 buildings existed in the City. Council was urged to refrain from adopting the policy until it had reexamined Mills Act and public benefits. Mayor Huber asked the City Attorney how Agenda Item No. 20 would be handled if Council acted upon the recommendation of the HRB to defer action on the application. Mr. Calonne said there would be no prejudice if Council denied the application with a request that the applicant reapply after guidelines were in place.
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Council Member Wheeler asked whether the City charged an application fee which could be reimposed if the application was denied rather than continued. Ms. Grote said there was no application fee at the current time; therefore, the applicant had not paid a fee for the request. However, if an application fee was assigned as part of the overall procedure, the applicant would be required to pay the fee. Council Member Wheeler clarified Council could make a decision otherwise. Council had made a somewhat analogous decision when an applicant was caught in an in-between situation and Council was able to reduce the fee to a prior time. Mr. Schreiber said Council could either approve, deny, or continue the application. If the application was denied and returned at a time when a fee was imposed, staff would apply the fee schedule unless some other action was taken by Council. If continued to a date uncertain, there would be no fee in the future. Mr. Calonne said if Council wanted to return the item for consideration when a policy was in place, it would be a motion to refer to either the City Manager or the Director of Planning &
Community Environment. Such a motion was recognized in Council=s rules for the purpose of sending the subject to an officer for further study and to report back to Council at which time the subject would be fully debated. MOTION TO REFER: Council Member Wheeler moved, seconded by Kniss, to refer the Mills Act application submitted by the Levinthals to the City Manager for a report and recommendation back to the City Council after the City had studied and adopted guidelines for the Mills Act grants in general. Council Member Wheeler said the issues local governments were supposed to be evaluating when examining Mills Act applications included the significance of the building to the community, development pressure on the site, and the need for rehabilitation. The 420 Maple Street property was significant to the community, which was why she hoped action would be taken, thus indicating to the applicant that the City was open to having the item return when it had a better idea of where it was going. There was no development pressure on the site at the moment and no need for rehabilitation since the property had been thoroughly rehabilitated. Having been Council liaison when Mr. Levinthal came to the HRB some years before, she recalled the significant need of repair, for which Mr. Levinthal had done a beautiful job. Neither was there any immediate threat to the property, which might be the case with other properties. Even though Mills Act applications were handled on a case-by-case basis, a precedence was set every time one was handled. The question Council Member Kniss posed earlier was extremely important and the community would see each
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individual application measured against the last. Taking time was the wisest course. The Levinthal application was not being sent
into ΑNever Never Land,≅ but the issue would be handled within a fairly short time frame. It was absolutely crucial in Council discussions and in dealing with the criteria to address the impact on the PAUSD, a very serious question if many Mills Act applications were granted. Council Member Kniss thought the referral, which in essence was a delay, was the wisest and possibly only course. The PAUSD issue was one which hit home with the City, and was one for which she expressed concern. Council Chambers could be filled with school children as well as individuals with historic homes, which would be a very awkward and difficult juxtaposition. As an ex-school board member, she felt strongly about how school funding had been diluted so dramatically in California. Individually looking at each house would involve layers of bureaucracy. As Council began to examine the Mills Act and its impact, she requested background on the issue, i.e., how it had come into being, where it had been used successfully, its impacts, etc. The City would face many challenges in the future as it dealt with the issue.
Council Member Eakins asked whether the applicant=s process, which had begun a year prior, had been a formal initiation or an inquiry, etc. Ms. Grote thought the application had been made in January of 1997. Some pre-applications had occurred in November or December of 1996. Council Member Eakins asked whether any indication had been given as to the length of the process. Ms. Grote said because no procedure was in place, staff had been unable to provide Mr. Levinthal with an estimate of how much time would be required for the process. Council Member Eakins said the letter from Mr. Blase indicated that because the Planning Department had been impacted by other activities, the application had not been given adequate or timely attention. Mr. Schreiber said the item had some complexity and would take some time, and staff was faced with many competing demands for its time. The objective had been to bring the application to Council prior to the end of the year so if a tax deduction went into effect, it would be in effect for the next tax year. Council Member Eakins asked when the tax lien would take effect on a property. City Manager June Fleming said January 1, 1998.
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Council Member Eakins thought the tax year was July 1. A letter
from the public indicated a Αretroactive benefit.≅ Ms. Fleming said staff had not examined the tax implications but had concentrated on the merit of the application in order to provide Council with a recommendation. Council Member Eakins clarified the expectation or objective was to bring the application to Council by the end of the year in an attempt to be cooperative. Ms. Grote said staff made the end of the year a goal in order for the incentive to be realized in 1998. The application would have had to be completed by 1997 to be realized in 1998. Council Member Eakins clarified the property acquisition was not the factor, but was on a pro rata basis. Ms. Grote was unable to respond. Mayor Huber thought if Council granted the application, the tax break would be for the year 1997. Mr. Blase said in that case the tax break would be in 1998. When the Levinthals applied in January 1997, he found that the lien date had been changed from March 1 to January 1; therefore, the whole year had been used. Council Member Eakins said the difficulties with the tax year made it harder to support the motion. However, in spite of the difficulties, Council was on the right track to delay until it had something with which to understand the principles being supported. She supported the motion. Council Member Schneider would not support the motion. A precedent had clearly been set in the City. Two Mills Act applications,
Squire House and Juanna Briones, had been granted. The Levinthals= application had been submitted without a procedure in place. Even though Mr. Levinthal would have gone through extensive renovation without the Mills Act in place, he had gone through extensive HRB hearings. The City should not want to find even one individual caught between decisions which came at a later date, e.g., the earlier example of a woman with a carport. Council Member McCown supported the motion because Council had announced its intention after the Squire House discussion to have a policy in place before the next Mills Act application came through. Council made the need to define policy very clear. Staff had been so overloaded with other items, the policy was not developed prior to dealing with the Levinthal application. When staff addressed policy considerations, consideration needed to be given to examining analogies, e.g., the Williamson Act and its effect on
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property tax revenues for the City and PAUSD. The Williamson Act was virtually a ministerial contract. If a property owner indicated the desire to apply, they could do so. She queried why the same principle would not be applied to historic properties since the Mills Act sought to get at a similar purpose as the Williamson Act with open space. Staff was also cautioned to think through making too close a connection to the goals for accomplishment and the purposes of the Mills Act contracts and the notion of the impact on tax revenues. A rational policy decision based on a sensitivity to tax revenues might be impossible. If the highest concern was tax revenue, Mills Act applications should never be approved. On the other hand, if out of the historic resource ordinance analysis the City believed it was an important incentive, she was unsure it could be governed by only allowing the first five, etc. Staff would need to be very thorough and deep in its consideration of how each related. It would be helpful to obtain as much help as possible from people in the HRB and interested community members to understand how people would predict the mechanism would play out in the future such as comments made by Mr. Blase about the Mills Act being created pre-Proposition 13 and the effect of Proposition 13 no longer being used. Although a fluke over the past 20 years, she asked what it would look like in the future in terms of changes in ownership patterns in the community. Council Member Rosenbaum asked staff, as it attempted to develop guidelines, to consider the issue raised by a member of the public. The Williamson Act was generally considered voluntary, e.g., someone had a piece of land which could be used more intensely but of their own freewill left in an open space designation in return
for which the owner was given an incentive. Under the City=s interim regulations, and possibly under its final regulations, people with homes designated as landmarks had no voluntary option, i.e., a requirement to maintain homes in a certain manner. If that was the case, he asked why it was necessary to pay for what was required to do. Mayor Huber supported the motion. Consideration of the Mills Act process was one of the incentives that should be examined as the City concluded with the historic ordinance. When the Squire House Mills Act application had been discussed, Council made it clear it had not wanted to see anymore Mills Act applications until such time as a policy was in effect. The current process was not precedent setting, since the Mills Act allowed Council to make whatever decisions it desired. Once a policy was established, then an argument for precedent was possible. It was better to have a policy in effect. Council Members McCown and Rosenbaum had made appropriate comments in terms of what should be examined as a possible Mills Act incentive was determined. MOTION TO REFER PASSED 7-1, Schneider Αno,≅ Fazzino absent.
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18A. (Old Item 20) Future Processing of Mills Act Contract Requests MOTION: Council Member Wheeler moved, seconded by Schneider, to approve the staff recommendation that no new Mills Act requests be accepted until appropriate policies and procedures are examined as part of the new Historic Regulations. MOTION PASSED 8-0, Fazzino absent. RESOLUTIONS ORDINANCES 19. Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1997-98 to Provide an Additional Appropriation for Capital Improvement Project 19620, Civic Center Local Area Network (LAN) Upgrade Contract between the City of Palo Alto and Cabletron Systems to Upgrade Civic Center Local Area Network (LAN) Upgrade MOTION: Council Member Rosenbaum moved, seconded by Schneider, to approve the staff recommendation to: 1. Approve and authorize the Mayor to execute the contract with Cabletron Systems in the amount of $199,701 for the upgrade of
the Civic Center=s Local Area Network (LAN); 2. Authorize the City Manager or her designee to negotiate and execute one or more change orders to the contract to cover additional related but unforeseen work which may develop during this project. The value of these change orders shall not exceed $19,900 (10 percent). 3. Adopt a Budget Amendment Ordinance in the amount of $59,601 to provide additional funding for the Civic Center LAN Upgrade, Capital Improvement Program (CIP) Project 19620, increasing the CIP from its initial amount of $160,000.
Ordinance 4473 entitled ΑOrdinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1997-98 to Provide an Additional Appropriation for Capital Improvement
Project 19620, Civic Center Local Area Network (LAN) Upgrade≅ MOTION PASSED 8-0, Fazzino absent. REPORTS OF OFFICIALS 21. Amendment No. 1 to Consultant Contract No. C7094743 between the City of Palo Alto and Dames & Moore for Design of Temporary Seismic Bracing for the Municipal Service Center
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Director of Public Works Glenn Roberts said staff recommended authorization to amend the consultant contract for design of temporary seismic bracing at the Municipal Service Center (MSC) buildings A, B, and C. The City had an ongoing program of retrofitting existing City buildings for seismic purposes. As an adjunct to that program, a study had been performed at the MSC which identified that the buildings were susceptible to substantial damage in the event of an earthquake. Staff recommended proceeding with the design work and return with a construction contract to implement the temporary site bracing. The bracing would be temporary in nature but long-term to allow sufficient time to perform the third recommendation to analyze the long-term measures necessary at the MSC. MOTION: Vice Mayor Andersen moved, seconded by McCown, to approve the staff recommendation to: 1. Direct staff to develop a Capital Improvement Project to construct temporary seismic bracing at the Municipal Service Center (MSC) Buildings A, B, and C at an estimated cost of $1 million and return to Council with a recommendation for an award of contract and Budget Amendment to construct those improvements. 2. Approve an amendment to an existing short-form agreement with Dames & Moore for consultant services in the amount of $50,000. The amendment will provide for the preparation of final construction documents for temporary seismic bracing of MSC Buildings A, B and C, and for construction administration services. 3. Direct staff to review and develop a plan to address the long term issues associated with the future utilization of the MSC buildings, including permanent seismic retrofitting and related issues. MOTION PASSED 8-0, Fazzino absent. COUNCIL MATTERS 22. Mayor Huber re Cancellation of the December 22, 1997, Regular City Council Meeting MOTION: Council Member McCown moved, seconded by Andersen, to cancel the Regular City Council Meeting of December 22, 1997. MOTION PASSED 7-1, Wheeler Αno,≅ Fazzino absent. 23. Council Comments, Questions, and Announcements
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Council Member McCown showed her Jersey No. 16 which was being retired that evening. She said her term on the City Council had been terrific. Vice Mayor Andersen expressed his appreciation for the opportunity to serve on the Council and especially to work with Mayor Huber as the Mayor in 1997. Council Member Kniss said she was delighted to have a daily newspaper, and she really enjoyed reading the articles on both Council Member McCown and Vice Mayor Andersen. City Manager June Fleming presented to the City Council special tee
shirts which read ΑOnly in Palo Alto.≅ ADJOURNMENT: The meeting adjourned at 9:10 p.m. in honor of the exceptional service of Vice Mayor Andersen and Council Member McCown. 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.
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