HomeMy WebLinkAbout1999-10-04 City Council Summary Minutes Special Meeting October 4, 1999 1. Interviews for Architectural Review Board and Historic Resources Board........................................89-62 ADJOURNMENT: The meeting adjourned at 7:00 p.m............89-62 1. Appointments to the Utilities Advisory Commission......89-63 ORAL COMMUNICATIONS.........................................89-64 APPROVAL OF MINUTES.........................................89-64 2. Information Technology Strategic Plan..................89-64 3. Referral of No Parking Zone on Arastradero Road at Terman Drive to the Planning Commission.......................89-64
4. Ordinance 4589 entitled ΑOrdinance of the Council of the City of Palo Alto Adding Section 2.30.076 and Amending Section 2.30.140 of Chapter 2.30 (Contracts and Purchasing) of the Palo Alto Municipal Code to Authorize the City Manager to Offer Rewards up to $25,000" (1st Reading 9/21/99, PASSED 9-0).......................................................89-64
5. Ordinance 4590 entitled ΑOrdinance of the Council of the City of Palo Alto Amending Section 1.12.030 of Chapter 1.12 of Title 1 [General Provisions] of the Palo Alto Municipal Code
Providing for Administrative Citations and Penalties≅ (1st
reading 9/21/99, PASSED 9-0)...........................89-65 6. Sixth Amendment to the Agreement Between Santa Clara County and the City of Palo Alto for Abatement of Weeds.......89-65 7. Year 2000 League of California Cities Annual Conference Resolutions............................................89-65 8. Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1999-00 to Provide an Additional
Appropriation of $50,000 for the City=s Contribution to the
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Cost of a Sound Wall for Tennis Facility at 3005 Middlefield Road (continued from 9/27/99)..........................89-65 9. PUBLIC HEARING: The Palo Alto City Council will consider extending the required termination date for the non-
conforming, automotive service use (Lawrence=s Tire Service) located at 2011 El Camino Real. The termination date will be extended for a period of five years to April 26, 2004. Environmental Assessment: Exempt from the California Environmental Quality Act..............................89-69 10. Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1999-00 to Provide an Additional Appropriation of $425,000 for the Customer Information System Capital Improvement Project Number 9357................89-74 11. Council Comments, Questions, and Announcement..........89-84 ADJOURNMENT: The meeting adjourned at 10:47 p.m.............89-84
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The City Council of the City of Palo Alto met on this day in the Council Conference Room at 6:10 p.m. PRESENT: Eakins, Huber, Mossar, Ojakian, Rosenbaum, Wheeler ABSENT: Fazzino, Kniss, Schneider SPECIAL MEETING 1. Interviews for Architectural Review Board and Historic Resources Board No action required. ORAL COMMUNICATIONS None. ADJOURNMENT: The meeting adjourned at 7:00 p.m.
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Regular Meeting October 4, 1999 The City Council of the City of Palo Alto met on this date in the Council Chambers at 7:15 p.m. PRESENT: Eakins, Huber, Mossar, Ojakian, Rosenbaum, Schneider, Wheeler ABSENT: Fazzino, Kniss SPECIAL ORDERS OF THE DAY 1. Appointments to the Utilities Advisory Commission Council Member Rosenbaum supported Joe Podolsky because of his technical and business background and his generalist view of the entire city. Council Member Ojakian was impressed with the number and quality of applicants. He supported Richard Brand because of his interest
with the City=s telecommunications system. Council Member Schneider supported George Bechtel who was a long-time resident of Palo Alto and would bring to the UAC a new view that was sometimes missing. His background was suited for the commission. FIRST ROUND OF VOTING VOTING FOR GEORGE BECHTEL: EAKINS, HUBER, MOSSAR, SCHNEIDER, WHEELER VOTING FOR RICHARD BRAND: OJAKIAN VOTING FOR RICHARD GRUEN: VOTING FOR PAUL KELLEHER: VOTING FOR THOMAS MCPHARLIN: VOTING FOR JOSEPH PODOLSKY: ROSENBAUM VOTING FOR CHARLES POWERS: City Clerk Donna Rogers announced that George Bechtel received five votes and was appointed to the Utilities Advisory Commission for a three-year term ending June 30, 2002.
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ORAL COMMUNICATIONS Robert A. Morgan, 1150 Byron Street, spoke regarding the eruv. Tom MacFadyen, 1225-380 Vienna Drive, Sunnyvale, spoke regarding the eruv. Carol Uecesky, 831 Marshall Drive, spoke regarding the Bay Area Environmental Forum. Barb Dawson, 2365 Emerson Street, spoke regarding the Bay Area Environmental Forum. Ed Power, 2254 Dartmouth Street, spoke regarding politics. Sylvia Smitham, 2514 Birch Street, spoke regarding library closings. Herb Borock, P.O. Box 632, spoke regarding the Information Technology Strategic Plan. John Messina, P.O. Box 51148, San Jose, spoke regarding the eruv. Stephanie Munoz, 101 Alma Street, spoke regarding cable/citizen participation. APPROVAL OF MINUTES MOTION: Council Member Huber moved, seconded by Mossar, to approve the Minutes of September 13, 1999, as corrected. MOTION PASSED 5-0-2, Eakins, Schneider Αabstaining,≅ Fazzino, Kniss absent. CONSENT CALENDAR MOTION: Council Member Huber moved, seconded by Ojakian, to approve Consent Calendar Item Nos. 2-7. 2. Information Technology Strategic Plan 3. Referral of No Parking Zone on Arastradero Road at Terman Drive to the Planning Commission
4. Ordinance 4589 entitled ΑOrdinance of the Council of the City of Palo Alto Adding Section 2.30.076 and Amending Section 2.30.140 of Chapter 2.30 (Contracts and Purchasing) of the Palo Alto Municipal Code to Authorize the City Manager to Offer Rewards up to $25,000" (1st Reading 9/21/99, PASSED 9-0)
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5. Ordinance 4590 entitled ΑOrdinance of the Council of the City of Palo Alto Amending Section 1.12.030 of Chapter 1.12 of Title 1 [General Provisions] of the Palo Alto Municipal Code
Providing for Administrative Citations and Penalties≅ (1st
reading 9/21/99, PASSED 9-0) 6. Sixth Amendment to the Agreement Between Santa Clara County and the City of Palo Alto for Abatement of Weeds 7. Year 2000 League of California Cities Annual Conference Resolutions MOTION PASSED 7-0, Fazzino, Kniss absent. UNFINISHED BUSINESS 8. Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1999-00 to Provide an Additional
Appropriation of $50,000 for the City=s Contribution to the Cost of a Sound Wall for Tennis Facility at 3005 Middlefield Road (continued from 9/27/99) Amendment No. 4 to Option Agreement Between the City of Palo
Alto and Community Skating, Inc. to Provide for the City=s Contribution to the Cost of a Sound Wall for Tennis Facility at 3005 Middlefield Road City Attorney Ariel Calonne received a legal question regarding whether the Winter Lodge ballot measure would forbid the proposed expenditure. The Winter Lodge ballot measure described the Chuck Thompson facility and the skating facility separately. The section that forbids expenditures referred only to the Winter Lodge. Based on that clear distinction, he concluded there was no prohibition on the Council appropriating or spending money to facilitate renewal of the Chuck Thompson facility. John K. Abraham, 736 Ellsworth Place, noted that the City was
proceeding to fund the tennis project prior to the plaintiffs= day
in court which he felt would prejudge the judge=s decision. The proposed ordinance was inaccurate. Under the agreement with the condominiums, even with the $50,000 payment, Community Skating, Inc. (CSI) would not construct the fifth court which would negate conditions 42-48 of the Conditional Use Permit (CUP), approved by the City Council on October 13, 1998, without public hearing. One might argue that the CUP read the same, but the option to carry out the conditions was gone. The City Council was changing the CUP without a hearing. Another problem was the current meeting was the first time public testimony was permitted on the $50,000 budget
amendment to CSI for the sound wall. The payment violated the Αat
no cost to the City≅ in the option to lease (OTL). The Budget
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Amendment Ordinance (BAO) violated the Αno cost to the City≅ requirement of the original Request for Proposal (RFP) of April 22, 1993, (CMR:248:93) and subsequent staff evaluations of the two
proposals received. Staff rejected both CSI=s and Palo Alto Tennis
Club=s (PATC) proposals because of the violation of the Αno cost≅
requirement. With regard to the 1993 RFP, page 3 paragraph 8
indicated Αto backfill and compact the swimming pool, it is
supposed to cost the proposer $20,000.≅ Page 15, Exhibit 1,
paragraph 6 (a) indicated ΑMinimum Construction of Timing. Tenant shall in an efficient and workmanlike manner, cause to be designated, constructed, and installed within the premises, at no cost to the City, appropriate improvements to adequately accommodate those services and uses required by Clause III
(Required and Optional Services and Uses).≅ With regard to the
Committee=s evaluation of the proposal, page 5 of the staff report
(CMR:293:94), Proposal to Reevaluate the Site, stated ΑThe intent of the RFP was to solicit proposals for a long-term lease of the site for development and operation of a recreational facility at no cost to the City. The RFP has failed to result in proposals which meet this intent. Further, the proposals received would seem to indicate that, although some very worthwhile recreational uses could be made of the site, it is not economically feasible to do so without significant financial assistance from the City. Therefore, staff recommends that the site should be reevaluated and considered for uses other than a swim/tennis facility, and requests that Council provide staff with criteria or parameters on alternate
uses.≅ The resulting pool of proposals would have been affected had neighbors and other potential interests in the RFP process known that CSI had $80,000 of City aid. To change conditions at the present time made a mockery of the RFP process. The neighbors could not have any money but CSI could. A financial statement in the staff report (CMR:221:95) indicated CSI had over $800,000 in their budget and over $100,000 excess in revenues over expenses. As a practical matter, the funding was not appropriate. Natalie Fisher, 736 Ellsworth Place, said including staff time, legal expenses, and two BAOs totaling $80,000, a large amount of City funds were spent on the project. The RFP stipulated that no City funds were to be used for the site. There were other community uses more appropriate for the site than another tennis facility. Possible uses suggested during the public hearings included a small park, a garden, and a community center meeting place for Midtown. A park was appropriate at the site because crossing Middlefield Road to Hoover Park was difficult and dangerous. She was saddened by the outcome of the use for such a valuable City property and hoped in the future the Council would be more careful with RFP requirements to allow the possibility of City funding for uses beneficial to the community, and that the City would actively seek community suggestions.
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Jack Morton, 2343 Webster Street, said the City Council had the opportunity to bring to culmination a struggle that began more than 15 years prior. In April 1984, the Winter Lodge closed its doors after 28 years. The Council at that time voted not to extend the amortization of the Shell Service Station that fronted 309 Middlefield Road. With the loss of the higher commercial rent from the Shell Station, the landlord decided not to extend the lease and
notified the Winter Lodge to implement the lease=s demolition clause in order for the site to be cleared for high-density housing. In response to what former Council Member Mike Cobb
called a Αjewel in Palo Alto=s crown,≅ the trust for Community Skating was formed and after an outpouring of community support and pleading by members of the trust, the Council voted and approved a $25,000 matching grant. In a six week period, the trust raised more than enough to meet the matching requirement and persuaded the landlord to give an additional year of operation. The YMCA took over the operation of the Winter Lodge. Measures A and B followed
the year later, and one of the City=s most visited sites became City property. The $25,000 investment brought the City more than $1 million in capital improvements. The program was a part of many
children=s lives and continued to be popular. Following passage of Measures A and B in 1985, the portion of the property that was the Chuck Thompson Swim and Tennis Club remained in City control but had not faired as well as the Winter Lodge site. The pool and gym were gone, and the tennis courts were in need of repair. In 1990, the Council requested staff to prepare an RFP for a long-term lease of the former Chuck Thompson site. Three years later, the Council approved the RFP and, in July 1993, CSI submitted the only proposal to restore what had once been a thriving center of summer activity for the South Palo Alto community. He asked that the Council make an investment in the community. With the assistance of Bill
Mayfield of the City Attorney=s Office, an agreement was reached with the Middlefield Homeowners Association to withdraw their suit.
That agreement required the City Council to authorize Αpayment of an amount not to exceed $50,000" to CSI as a contribution towards the cost of constructing sound walls that were imposed by a new use permit. To avoid a long and drawn out legal battle and in return for withdrawing the suit, CSI agreed not to build the fifth court. That would reduce the potential revenue from the site by more than 20 percent since the site would no longer be eligible for adult league play. He asked the City to contribute $50,000 toward the sound walls and authorize staff to explore ways in which the lease could be completed to let CSI begin the repairs that were necessary
to the courts. It was time to finally implement the voters= 1985 mandate. The community waited long enough to fully enjoy the site. CSI was eager to begin the operation of a tennis program that would not cost the City anything. Steve Player, 1874 Guinda Street, said both sides worked diligently to reach agreement. He hoped the Council would put an end to the
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long standing debate and urged the Council to authorize the $50,000. MOTION: Council Member Rosenbaum moved, seconded by Schneider, to approve the staff recommendation to 1) adopt the Budget Amendment
Ordinance (BAO) to appropriate $50,000 for the City=s contribution to the cost of a sound wall for the tennis facility at 3005 Middlefield Road; and 2) approve the related Amendment No.4 to the Option Agreement between the City of Palo Alto and Community Skating, Inc.
Ordinance 4591 entitled ΑOrdinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1999-00 to Provide an Additional Appropriation of $50,000 for the
City=s Contribution to the Cost of a Sound Wall for the Tennis
Facility at 3005 Middlefield Road≅ Council Member Rosenbaum shared the pleasure of most people that the long process would end. The $50,000 funding was appropriate given the unusual degree of mitigation of noise problems that the Council agreed to in order to satisfy the neighbors, and it was an expense that was unreasonable to expect CSI to meet on their own. The facility would be open to everyone. Council Member Schneider recalled discussion six years prior regarding a park. At that time, Natalie Fisher was in favor of a park. She complimented everyone for their patience and hard work in coming to the agreement that seemed to satisfy almost everyone. Council Member Mossar supported the motion, given the long history
of discussion, her colleagues= considered opinion in support, and the negotiations between CSI, the City, and the neighbors. Vice Mayor Wheeler was concerned with the impacts of whatever the agreed upon proposal was with the neighbors. The project as it had been agreed to in the settlement was closer to the level of activity that was in the best interest of the neighbors of the project and closer to what she envisioned happening on the property. She agreed with her colleagues to expend up to $50,000 to see an appropriate fence constructed that would make the tennis facility a good neighbor to its residential neighbors. Council Member Eakins asked how many tennis courts were involved. Mr. Calonne said the settlement agreement called for four courts. Council Member Eakins asked whether the $50,000 funding for a sound wall extended to four courts or five courts.
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Mr. Calonne said the courts were not restricted, and the $50,000 funding was misleading; CSI would be reimbursed up to $50,000 if the sound wall was built. MOTION PASSED 7-0, Fazzino, Kniss absent. PUBLIC HEARINGS 9. PUBLIC HEARING: The Palo Alto City Council will consider extending the required termination date for the non-
conforming, automotive service use (Lawrence=s Tire Service) located at 2011 El Camino Real. The termination date will be extended for a period of five years to April 26, 2004. Environmental Assessment: Exempt from the California Environmental Quality Act. Senior Planner Luke Connolly said the item was a proposal to amend Section 18.94.070 of the Palo Alto Municipal Code (PAMC) which would allow the nonconforming use at 2011 El Camino Real (dba Lawrence Tire Service) to continue its operation, specifically tire sales and installation. The use became nonconforming in 1984 when the property was rezoned from Service Commercial to Neighborhood Commercial (CN), and Neighborhood Commercial did not allow any type of automotive service use. The use was given a 15-year amortization period which expired in April 1999. In May 1999, the Council directed staff to look into the issue and possibly look at
an extension for Lawrence=s Tire Service, based on discussions with the applicant and his representative and the determination that the use had generally been compatible with the surroundings. Staff recommended a 5-year amortization to the year 2004. On September 8, 1999, the item went to the Planning Commission which recommended a 10-year amortization, mainly to keep an independent business operating at the site. Staff felt a 5-year amortization was appropriate based on the fact that it was an ordinance extension and not a use permit, and there was a certain amount of control over the use given up; an extension of things as they were and nothing could be conditioned. Council Member Mossar asked what uses were allowed in the CN zone. Zoning Administrator Lisa Grote said most CN zones allowed leases specifically geared to the surrounding neighborhood. The leases did not typically have a larger draw and were small offices up to 5,000 square feet or personal service shops such as beauty or barber shops. Council Member Mossar asked whether housing was allowable. Ms. Grote said yes.
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Council Member Eakins said Mr. Connelly said nothing could be conditioned and asked whether there was a way to interpret an extension for something other than a tire service. City Attorney Ariel Calonne said the subject was confusing due to
the City=s practice of giving amortization extensions for a fixed period of time. The Council, absent a development agreement, had no power to bind successor Councils, so it would not be possible
for example with Fry=s Electronics, to guarantee zoning for 25 years. The ordinance stated that after the original expiration of the amortization period, April 1999, the tire service could remain, but that would be at the pleasure of the Council. The Council was not conferring a vested right to remain for a specific period of time. He advised the Council did not have the power to confer that kind of guarantee, absent a development agreement. If the concern was that circumstances might change in the future, such as the nature of the use, he believed the ordinance covered that as well as possible with an amortization extension. Mr. Connelly was correct that the use could not be conditioned, but there was no
guarantee to Lawrence=s Tire Service that they would be able to stay there for 5 years, 10 years, or 15 years. The Council was
stating Lawrence=s Tire Service could remain, but if a successor
Council changed its mind for any reason, Lawrence=s Tire Service would have to comply. Council Member Eakins said the Council understood the proprietor wished to maintain the tire business at that location for longer than 5 years. She clarified that should that business depart and another business want to go in that location which the City and neighbors did not want, the amortization could be revoked. Mr. Calonne said yes. In the revised ordinance, the first page,
Section 1, paragraph (F), stated that it was the Council=s intent that the ordinance did not create a vested right for the use to
remain. As he stated with the example of Fry=s Electronics, the vehicle used was contorted and odd and done creatively to address an odd situation. He could not guarantee paragraph (F) would hold that power, but he was fairly sure. Council Member Huber said the Council was granting amortization which stated that the business could continue as a tire shop for a period of time into the future, 5 or 10 years. Hypothetically, at the end of that period, that type of use must end without an additional amortization extension. The subsequent Council had the right to terminate the use. Council Member Mossar asked if neighbors went to the Council with a request to cease an offensive business, how much time would the request take to process, and from a legal prospective, how much time would the new business owner have to cease business.
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Mr. Calonne said that would depend on how much notice was given; anywhere from 30 days to one year depending how contentious the situation became. Council Member Mossar clarified there was some protection, but there would not likely be immediate redress. Mr. Calonne said if the use became intolerable, staff would look at whether the use: a) was fundamentally wrong so new legislative action was needed from the Council; or b) created a nuisance so code enforcement could be used to handle the situation. That would be the initial call. Assuming the Council concluded the new business was a nuisance and notified the owner who continued to operate in a manner that created a nuisance, there would be a period of time before the City could get a court order to shut down the business. Likewise, if staff concluded that legislative action was needed by the Council, there would be some period of time before that would happen. He thought it might be weeks or months to effect that type of change. Amortization was there to protect the constitutional property right, and Palo Alto had a generous amortization period of 15 years which allowed the owner to recapture the investment in the property over a long period of time instead of only 5 or 10 years. From a constitutional standpoint, the downzoning the Council effected 15 years prior was over the 15 years. The extension of time was done due to extraordinary circumstances and not because of any property right, so the Council could change its mind after April 26, 1999. He was concerned if there was a change of heart by the Council driven by some circumstance which could not be legally recognized. If there was another tire service in that location with the same use and was not creating a nuisance, he would not advise the Council to initiate a proceeding to change the rights. He did not see any reason why the extension should not be transferrable; however, the Council would have the power to terminate if it felt the need to do so. Council Member Schneider clarified the uses in the CN zone were neighborhood serving, so the likelihood of a massage parlor or car repair shop getting in would be highly unlikely because those were already controlled. Mr. Calonne said the question he contemplated was what the City would do if someone sought a use permit in that area for a use permitted under the CN zone. He was not sure of the reaction, but he imagined staff would go before the Council prior to issuing that kind of use permit. Director of Planning and Community Development Ed Gawf said the proposed ordinance limited the use to a tire and sales and installation operation. In order to change that use, the use had to be conforming, and procedures would have to be conformed with. The only nonconforming use that could remain at that location was the tire shop.
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Vice Mayor Wheeler declared the Public Hearing open.
Al Marks, applicant, 2011 El Camino Real, said Lawrence=s Tire Service was at the same location for 23 years, and he would like it to remain in the neighborhood. He believed he served the neighbors well. He urged the Council to support the Planning
Commission=s recommendation for a 10-year extension. Council Member Schneider asked Mr. Marks if he owned the property. Mr. Marks said no. He leased the property, and the terms of the lease were dependant upon what the Council decided that evening. Council Member Schneider clarified that the property owner would allow Mr. Marks to continue to lease the property. Mr. Marks said yes. The property owner wanted him to continue to lease, and the terms were agreed upon. It was just a matter of the timing of the amortization. Council Member Schneider asked Mr. Marks if he decided to retire in two years, would it be his intention to sell the business. With a 5-year amortization, there would be more flexibility with regard to selling a business than a 10-year amortization. Mr. Marks said it would be at least five years before he could retire. Helen Kim, 453 Stanford Avenue, said at a previous Planning Commission meeting she communicated concern being a resident and living so close to that type of business. The tire shop was a
benefit to the neighborhood rather than a nuisance. Lawrence=s Tire Service was a well utilized and necessary service which served
the community, Stanford students, and the neighborhood. Lawrence=s Tire Service was ethical and would refer someone if unable to handle a service need. The service hours were weekdays from 8 am to 5 pm, and the shop was respectful to the neighborhood. From a safety standpoint, the tire shop was a better business for the community because it did not encourage loitering, litter, or increased crime. She encouraged the Council to keep small businesses alive in Palo Alto that contributed to the economy rather than a retail chain which would be less advantageous.
C. Rod Silk, 451 Stanford Avenue, said Lawrence=s Tire Shop was a legitimate, well priced, and concerned neighbor that took care of the neighborhood. There were no complaints from the neighbors.
Stephanie Munoz, 101 Alma Street, said if Lawrence=s Tire Service
was unable to remain in Palo Alto, where could citizen=s go in Palo Alto for that type of service.
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Vice Mayor Wheeler declared the public hearing closed. Council Member Eakins said the appropriate role of government was to get things done correctly. It was important to keep the correct form and content parallel with the intent. The intent of the amortization extension was that it be done correctly. There was a blanket downzoning and selective extensions made by the Council and backed by the community which was appropriate. The question was whether the amortization extension should be 5 or 10 years, and she believed it should be 10 years. MOTION: Council Member Eakins moved, seconded by Huber, to introduce the ordinance allowing the continued operation of the non-conforming, automotive service use, presently doing business as
Lawrence=s Tire Service, located at 2011 El Camino Real, for ten years. 1st Reading - Ordinance of the Council of the City of Palo Alto Amending Section 18.94.070 [Nonconforming Use - Required Termination] Date For The Use At 2011 El Camino Real. Council Member Eakins said her rationale for extending the amortization for 10 years was to keep an appropriate business that was flourishing without objection rather than independent ownership. She believed it could take some time to get the zoning altered on El Camino Real and, if that happened, 10 years was more practical. She reviewed the list of other approved extensions. She anticipated the users would be back for extensions, and the zoning would not be ready at that time. El Camino Real was the backbone of the community, a main line connecting Palo Alto with its neighbors. Changing and refining the uses on El Camino Real would take some time, and would consist of much community input.
Council Member Huber supported the Planning Commission=s recommendation of 10 years. The extension ran from April 1999, so six months of the 5-year extension were already gone. The Council dealt with amortizations on the El Camino area in the past, and he recollected those amortizations usually came back for a second time. Ten years seemed to be the right period of time with a couple of caveats: First, the property owner should plan for that because there would be no further extensions for those types of businesses if the City did what it was supposed to do on El Camino Real and second, the Council would allow a continued tire
operation, preferably Lawrence=s Tire Service. If the use changed, the present or subsequent Council would look at that and be in a position to make changes to deal with neighborhood concerns. He believed it was a good business and supported the amortization.
Council Member Schneider supported the motion. Lawrence=s Tire Service served the community well and, by allowing a 10-year
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amortization extension, there was a possibility that someone else
could be brought in to provide service after Mr. Mark=s retirement. Council Member Ojakian asked whether it was common for that type of business to be included in a CN zone. Mr. Gawf said that type of business was usually found in CN zones. Council Member Ojakian supported the motion. When the Council next reviewed the zoning ordinance, the Council needed to look at whether or not certain types of operations were acceptable in CN zones. He was intrigued to hear colleagues and some of the neighbors comment on their use of the service, evidently a service the community needed to because it related to the neighborhood. The location was good for an auto repair business. He appreciated
the comments people made that evening in favor of Lawrence=s Tire Service. Council Member Mossar supported the motion. She had an experience in her neighborhood with two businesses that were revered neighbors and were amortized by the City in a rezoning process. The neighbors had a mutual relationship of respect and trust, and those businesses were part of the neighborhood which was what she was
hearing about Lawrence=s Tire Service; however, one of those businesses became a horror which could happen without intent. Though she would support the motion for a 10-year extension, she cautioned her colleagues that the amortization did not protect or insure a good neighbor business. It allowed the current good neighbor to remain, but if bad things happen, it would test the
City=s new found interest in code enforcement. She hoped the Council would not have to deal with the property in a negative way. Vice Mayor Wheeler recalled a similar situation when a gas station was amortized out on Middlefield Road. She understood Council
Member Mossar=s caution which was well taken, but the City experienced other granted amortizations which maintained their neighborhood-friendly policy. Fortunately, there were more positive instances than negative, and she would trust that would
happen in the case of Lawrence=s Tire Service. Another impact of the long amortization periods was that 15 or 20 years later,
community circumstances changed. In the case of Lawrence=s Tire Service, most of the similar uses were amortized out or left town. Thus, he provided a unique service to the community, and the community would feel the loss immensely. She had the opportunity to attend a neighborhood meeting sponsored by Mr. Marks to inform the neighbors of his intent of amortization with the City. He would not have gone forward with the request if the neighbors objected. After reading a dozen positive testimonials, it helped convince her to support the motion. She hoped in working on the
new zoning ordinance, the City Attorney=s Office and the Planning Department would keep those experiences in mind and find a way not
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to subject future Planning Commissions and Councils to such awkward hearings and temporary zone changes. MOTION PASSED 7-0, Fazzino, Kniss absent. RECESS: 9:30 p.m. - 9:45 p.m. ORDINANCES 10. Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1999-00 to Provide an Additional Appropriation of $425,000 for the Customer Information System Capital Improvement Project Number 9357 Amendment No. 1 to Existing Contract No. C8100757 with SCT Corporation in the Amount of $500,000 for Consulting Services for Utilities Customer Information System City Manager June Fleming said the money requested for the Utilities Customer Information System (CIS) was not inconsequential. The system was used by other utilities and was a reliable system. The system was complicated and the City complicated the system with its utility bill because of the information required on the billing. It was not a billing system which took care of documents such as PG&E bills that included one or two utilities. There were approximately seven different items
on the City=s bills. The average homeowner tracked certain pieces of information from the bill, but businesses needed to track a number of items immediately, and the City needed a system which could give that information in a quick and reliable fashion. Staff was in the process of looking at the CIS and trying to make it work. Earlier, the resources put forth toward implementation and testing were not available because many of the resources put into Year 2000 (Y2K) compliance. Y2K was not a problem, but Y2K had some side effects. The previous system, the Utility Billing System (CUBIS), was not Y2K compliant and could not be relied upon to function if the new system was not operating by November 1, 1999. The cost seemed large, but was a small percentage because of the revenue generated. Other agencies were doing the same thing but
the City=s cost per customer was below average, so the expense to put the system in was not exorbitant even though it was costly to run the utilities. She advised the Mayor in August that the City had done extremely well with regard to Y2K; however, staff could not assure her that CUBIS could be relied upon if the new system did not go into operation. If that happened, there would not be no utility bills and, in a competitive environment where things like outages occurred, that would be inconceivable. Fortunately, within the last six to eight months, staff was able to strengthen staff resources, and Information Technology and Utilities personnel were very knowledgeable. The CIS should be abandoned. If the Council did not move forward with the issue, she could not guarantee what
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would happen if problems arose due to Y2K. She understood the Council had concerns, but the decision was crucial. Director of Utilities John Ulrich said whether the money was spent at present or in the future, Y2K would have to be dealt with, and the City would need a competitive billing system. He was not pleased with the amount of money the Utilities Department had to spend to accomplish that, but the City was not in an isolated position. Palo Alto was not spending any more money than other utilities were, and in some cases less. Staff asked for improvements in the Utilities billing system which returned approximately $10 to $12 million a month. Therefore, it was important that those bills be done accurately and would involve coordination among several departments. The work on the conversion from CUBIS to CIS would entail a combination of internal resources. Staff recommended the Council approve an extension of a contract signed in 1997 for $1.2 million to give Utilities a CIS. The work was completed for the fixed price contract, of which certain in-house tasks were expected. For a variety of factors, the City was unable to complete some of those tasks. Staff made an assessment identifying what was needed to make the project work, determined what the solutions should be, how much it would cost, and making sure the City would get a contract that was not based on exorbitant fees. The reasons for the additional funding were to assist staff in five areas: Data Conversion, Job Process Testing, System Testing, Key Account Testing, and End-User Training. Consultant services were required because of the Y2K issues, the loss of internal resources, and until recently did not have a full-time project manager of which none of those reasons were factors when the City entered into a fixed price contract in 1997. If the item was not approved, there was a high risk of non-Y2K compliance, loss of valuable momentum and team environment, retirement of team members, a slow down in providing the goals of deregulated environment requirements, and a delay in anticipated services to
the City=s customers. He reminded the Council that the City had one of the most complicated billing processes in the country because it billed six utilities, and the new system had more variables than any other. The enhancements were an online system that would be able to start to test and send bills in November 1999. Staff would be able to work simultaneously to remediate the issues caused by CUBIS. He urged the Council to support the staff recommendation. Ms. Fleming said staff looked for another solution but could not find another way to accomplish what was needed. Council Member Mossar asked if the figures in staff recommendation Nos. 1, 2, and 3 were additive. Mr. Ulrich said the total amount needed was $500,000. The consultant contract was for $450,000 with an expense item of up to $50,000. The $45,000 in recommendation No. 2 was a contingency of
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10 percent added to the $450,000. That was an internal number that would give the approval for staff to spend that additional amount if needed. The reason recommendation No. 3 stated $425,000 was because there was $120,000 remaining in the current Capital Improvement Program (CIP) which was already approved. All that was needed was the $425,000. Council Member Mossar referred to page 4 of the staff report (CMR:363:99) under Resource Impact and clarified that was why the cost distributed by fund totaled $425,000. Mr. Ulrich said that was correct. Council Member Schneider said two or three years prior, some expenditures were authorized to change the Utilities billing system. She asked for the reasoning for changing the billing. Assistant Director of Utilities Randy Baldschun said two years prior a new billing statement was introduced to unbundle the electric rates and to respond to deregulation for a requirement that public benefit charges be billed (Assembly Bill 1890). To achieve that, the billing software program had to be changed. The existing CUBIS system would not unbundle electric rates. The unbundled electric rates seen on the billing was done in a bill print software program called Starjet. That vendor had since gone out of business, and that software application as well as CUBIS was not Y2K compliant. CIS would unbundle electric and gas rates. Council Member Schneider understood that technology quickly became outdated and asked if there were any guarantees that the new system would be any better or that the company would stay in business any longer. Mr. Baldschun said a contract was entered into with SCT Corporation for the base application for calculating an escort file to the Bill Print program. The Bill Print program was done by another software vendor which was approved the prior year. The CIS was based on a state-of-the-art architecture with new state-of-the-art software systems. He would not expect staff to return to Council to replace the CIS within at least ten years, although there would be upgrades. The amount staff was recommending was needed to get the project completed and get the bills out on time. Council Member Schneider felt pressured for approval and asked why it seemed to be last minute.
Mr. Baldschun said it was not staff=s intention to put the Council in that position. The mind set staff went through with CUBIS and CIS was there was one programmer in the Information Technology Division who was developed and understood CUBIS. There was no documentation, so in order to remediate CUBIS and make it Y2K compliant, that person was the only person who could work on CUBIS.
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He was also the person on the CIS project who would have to work with SCT. The reason the contract with SCT was not fulfilled, and staff was asking for more money, was because conversion and system
testing was supposed to be the City=s responsibility and that one person could not do two things at once. Staff decided not to remove CUBIS, and presently that programmer was spending 80 percent of his time on remediating CUBIS and 20 percent of his time on the CIS. Manager of Information Technology Rod Massey pointed out that there was a tremendous amount of risk in trying to remediate CUBIS. There was little documentation, CUBIS was not Y2K compliant, and the Starjet portion of the system that did the billing was essentially a black box which staff did not have source code access because the company was out of business. Staff tried to remediate efforts and, at the same time staff moved forward with the CIS project which created a great resource challenge. In Y2K efforts, not only a primary plan was needed but also a contingency plan which staff was trying to ensure. Council Member Schneider asked whether the CUBIS software could be resurrected. Mr. Massey said there was potential that CUBIS could be remediated, but the risk was high to rely only on the remediation effort. The new system was a foundation for future applications to where staff wanted to be. Staff was essentially trying to do the best of both worlds and position itself for the future. Council Member Ojakian asked what would happen when January came about and CIS was still not operating. Administrative Services Director Carl Yeats said there was a risk that the CIS implementation would not be completed by January which was the reason for continuing efforts to remediate CUBIS and work on CIS. There were limited resources to do that, so contracted resources had to be brought in to continue the accelerated effort on the CIS. Council Member Ojakian said that meant staff had some level of confidence that CUBIS would be working at the beginning of the year. Mr. Yeats said there was some level of confidence, but explained in detail how complicated the process was. The problem staff would have was whether or not a utility bill could be printed and was the Starjet portion date sensitive. He could not tell the Council with 100 percent confidence that the system would work. Council Member Ojakian asked what would happen if neither system worked.
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Mr. Massey said staff was trying to provide the best alternative available. If one system was taken over the other, it would increase the risk. If staff got to the point of not being able to bill at the end of the year, there would only be one alternative to choose from. Staff was more than half way through the project. There were definite activities that needed to occur which required additional staff resources. The risk factor was much lower than if staff was only in the middle of the project. There would always be a risk in the project. In working with SCT, staff tried to substantiate some assurances with the additional funds, that staff could provide and ensure that the system went live by the end of the year. The challenge was for staff to exercise the best judgment possible and provide the best alternatives available for the current situation. Mr. Yeats had little confidence that staff could effectively do any billing without a billing system. Staff could revert to an old-fashioned manual system, but it was much more complicated due to the variety of situations involving customer billing. If the billing only involved a simple calculation, staff would have no
problem. The reason the City=s billing system was so expensive was due to so many exceptions and behind-the-scenes situations. Everything had to be coded and work electronically and seamlessly which took years of research of software applications. Companies had 20 to 30 programmers developing a billing module that a utility could use to accommodate all of the exceptions. If the doomsday scenario was used, billing would have to be suspended until a functioning system was up and running. Staff would not attempt to bill the customers if the system failed but instead would notify the customers of a billing problem and accept payments or partial payments. The system was complex and had many interfaces to existing applications. It interfaced to the financial management system, the hand-held meter reading system, and the cash receipting system, all which were completed and tested. There were other data conversion issues which failed the first time. Other items that needed completion were the final testing and the creation of batch control language. The primary remaining tasks were not monumental tasks, but were the final 20 percent. Staff was confident the completion would occur prior to January 1, 2000. Council Member Huber clarified that in 1993 the intent was to spend $900,000 to put the City in a position to do billing. Staff was going to do it in-house and get a system that would do what was being asked of the Council that evening. Then $1.2 million was spent on a fixed contract in 1997 to do the same thing that was
done in 1993. Since that time, $600,000 was available in CIP=s for 1998-2000 to again complete the process. He clarified staff was asking for an additional $425,000. Mr. Yeats said that was correct.
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Council Member Huber said every time complexity became an issue, the City spent more money. He asked how the City got the card that let it know what the black box would do. Mr. Yeats said there was a narrowing of vendors in the utility market. SCT was a well known vendor. The City needed to avoid buying a system that was not widely supportable, did not have a large user base, and did not have a user support group. One of the
items to be discussed in the following night=s IT strategic plan was to move away from the concept that the City should not be doing programing, but should establish technical standards and developing project management skills in order to better manage the implementations rather than write code. Council Member Huber asked what would be spent if the Council approved the contract. Mr. Yeats said the amount would be $2.4 million plus the initial $900,000 if SCT invested in the needs assessment. The system was written on an Oracle data base which was the latest product available. Council Member Huber asked how the City stayed ahead. Mr. Yeats said the City needed to stay abreast of the industry, noting that a few months prior staff discussed implementing a new e-mail system. There was a universal product called Windows, and it did not make sense to go away from the industry standards and
use other products. Staff attempted to standardize the City=s platform. Mr. Massey said one of the benefits of moving off an older platform was the availability of resources. As the City moved toward new technologies, there were more staff resources available to assist with problems, and recruitment was easier. It was necessary to cross train staff and provide staff the skills to look ahead strategically across the organization. Council Member Eakins clarified the City was using SCT to do a CIS. Mr. Yeats said that was correct. Council Member Eakins asked whether the City was putting 80 percent of a full-time equivalent position on CUBIS. Mr. Yeats said that was correct. The staff member was one of the original persons who wrote the system. The City would be able to contract for the people who would work on the relational data base on the CIS system, but was unable to find anyone to do the work that the staff member had to do on the CUBIS system. Council Member Eakins asked what were the chances of the employee finishing the project.
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Mr. Yeats said staff would know more by the end of the following week. Council Member Eakins was concerned that CUBIS was no longer appropriate and asked what were the chances with the proposal of having SCT finishing the CIS by the deadline Mr. Yeats was optimistic that the CIS system would be completed; however, he wanted a contingency and wanted to be able, with some assurance, know that the City would be able to send out utility bills on January 1. Council Member Rosenbaum said the report mentioned contracting for 3,000 hours in the following three months and he asked who would do the work Mr. Ulrich said the 3,000 hours were included based on the recommendation from SCT and City staff. The 3,000 hours was the maximum amount staff thought was appropriate. Those hours would not be spent unless it was absolutely necessary. The staffing would come from the contractor who was the software developer. Council Member Rosenbaum asked how many people were contemplated. Mr. Ulrich said there were three people with three additional people to be added. Mr. Massey said during contract negotiations with SCT, the City looked for a not-to-exceed amount. The original estimate was 2,000 hours but the contractor only agreed to a not-to-exceed contract with 3,000 hours. Mr. Ulrich emphasized that staff intended to begin testing and sending bills during the first week of November 1999. Council Member Mossar asked about guarantees that the system would work and whether the City was investing wisely. Mr. Yeats said SCT was a nationwide company and was a leader in terms of technology. SCT delivered current technology in the form of their solution and Windows NT-based application. The technology was current, and SCT had a commitment to keep their product current. Ms. Fleming could not guarantee that another system would be necessary in the future but assured the Council that the City had an experienced staff working on the project at the current time. Mr. Yeats said one way to keep staff was to create a vision for the
technology for the future and working on the Αcutting edge.≅ The City was able to recently attract some talented people. The
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website was unique and innovative due to the fact the City was on the edge of technology. The City recently hired a good IT Manager because there was a vision for where the City was going in the future. Mr. Baldschun said the project was about 90 percent complete, and for the first time in the history of the project, the City had a full-time project manager. The City received a tremendous commitment from SCT and the CIS core team. Mr. Massey said it would be easier for everyone to present one option. Staff looked at what the business need was. Vice Mayor Wheeler asked whether the SCT employees who were
expected to be onsite were familiar with the City=s project in order to not spend any downtown trying to train new people. Mr. Baldschun said the Project Conversion Specialist worked with the City for the past year and the Senior Programmer worked with the City for nine months. The City demanded a good trainer. Mr. Baldschun said there would be a loss of momentum if the project were stopped. MOTION: Council Member Huber moved, seconded by Ojakian, to approve the staff recommendation as follows: 1. Approve and authorize the Mayor to execute Amendment No. 1 in the amount of $500,000 to the existing contract, No. C8100757, with Systems and Computer Technology (SCT) Corporation for consulting services to supplement City staff resources and ensure that a Y2K compliant Utilities Customer Information System is operational before December 31, 1999. 2. Authorize the City Manager or her designee to negotiate and execute one or more change orders to Amendment No. 1 with SCT for related additional but unforseen work. The total value of change orders shall not exceed $45,000. 3. Approve a Budget Amendment Ordinance in the amount of $425,000, and increase Capital Improvement Program (CIP) Project No. 9357, Utilities Customer Information System, by $425,000.
Ordinance 4592 entitled ΑOrdinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1999-00 to Provide an Additional Appropriation of $425,000 for the Customer Information System Capital Improvement Project Number 9357"
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Council Member Huber was frustrated by what appeared to be no choice, but the Council needed to move forward with the project. He hoped projects in the future would have more lead time. Council Member Ojakian agreed with Council Member Huber and hoped that the Council did not get put in that type of situation in the future. Council Member Rosenbaum opposed the motion. He was sympathetic to the problems of large computer systems in both public and private agencies. Staff expressed ambivalence as to whether there was a Y2K problem or a problem of getting a system up and running. To say the Y2K problem would be solved by getting a complex system up and running in three months as opposed to making sure CUBIS was working on January 1, 2000, made no sense to him. The City wanted to be in a position to get the bills out in January 2000, and he thought staff would make it a high priority to make sure the existing system would work rather than counting on getting a complex new system up and running. Council Member Schneider said there was an air of energy about the process that was healthy and should continue. There was no way to stop technology, and the system might be obsolete in a few years. Council Member Mossar was not a believer in crisis management. She said that throwing a lot of money and resource at a problem in a short time frame often did not achieve the results intended. She fundamentally believed that if the Council approved the project, the CIS system would not be reliable and would not address the Y2K problem. The CIS system was something the City needed but would have preferred to have known sooner that the CIS system did not go along according to plan. She preferred a recommendation that provided options. Council Member Eakins asked what was the estimate cost to maintain the program including additional upgrades, hardware changes, system expansion. Mr. Yeats said the hardware system was set. Staff planned on running the program in a parallel environment, and the system would have an automatic backup. Council Member Eakins asked about wastefulness of doing the project quickly. Mr. Yeats said staff worked at an accelerated pace since early September and accomplished many of the tasks. The final phases would be to go live or at least do a production live run with the system and compare the results of that with the current CUBIS system to ensure that billing was done correctly. If that did not occur, staff would have from November 1, 1999, through December 31,
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1999, to work out any problems. He wanted to continue to work on CUBIS to try to remediate it as a contingency. Council Member Eakins said the decision was a guess as to the more prudent way, whether to do it slower or faster. Mr. Baldschun said $12,000 was spent for SCT to evaluate the project plan and status of the project. The City and the citizens of Palo Alto needed the help of SCT in order to provide services that cannot be done with CUBIS or CIS. Mr. Ulrich said putting off the project would not produce a better product and would get the City in a potential situation of not being ready to bill the customers. Staff had confidence that what was done was appropriate. Vice Mayor Wheeler asked whether Mr. Ulrich could give the Council some assurance that the project would not come back to the Council. Mr. Ulrich said staff would come back to the Council with enhancements in the normal CIP process. The appropriate amount of money was asked for, but he was unable to tell the Council that staff would not come back with the project.
Vice Mayor Wheeler said the Council=s responsibility was to service the customers. She heard clearly from staff that in the absence of a positive vote on the proposal at the current meeting, the chances of serving the customers on January 1, 2000, were in great doubt. Staff was competent and had faith in its examination of the alternatives that the new system would be up and running by the end of 1999. CUBIS would not work much longer because it was unsupported. The only realistic stance to take was to vote for the BAO at the current meeting. MOTION PASSED 6-1, Rosenbaum Αno,≅ Fazzino, Kniss absent. COUNCIL MATTERS 11. Council Comments, Questions, and Announcement Council Member Ojakian announced there would be discussion of the Library Master Plan on Thursday, October 7, 1999, at Cubberley Community Center. ADJOURNMENT: The meeting adjourned at 10:47 p.m. ATTEST: APPROVED:
City Clerk Mayor
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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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