HomeMy WebLinkAbout1999-12-14 City Council Summary Minutes (2) Special Meeting December 14, 1999 ORAL COMMUNICATIONS .......................................89-247 APPROVAL OF MINUTES .......................................89-247 2. Policy to Significantly Reduce Mercury and Dioxin Releases to the Environment - Refer to Policy and Services Committee89-247
3. Resolution 7914 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. 7890 and Amended by Resolution Nos. 7897, 7902 and 7907 to Amend the Salaries of
Council Appointed Officers≅ ...........................89-248 4. Contract Between the City of Palo Alto and Apex Construction in the Amount of $309,600 for Civic Center 3rd and 5th Floor Renovation - Capital Improvement Program Projects 19922 and 10020.................................................89-248 5. Wilkie Way Bicycle Bridge Renovation and Structural Improvements, CIP Project 19708 - Rejection of Bids...89-248 6. Contract Between the City of Palo Alto and J. F. Pacific Liners, Inc. in the Amount of $76,800 for the Line Cleaning of Large Diameter Sewer for the Regional Water Quality Control Plant (RWQCP).........................................89-248 7. Approval of Expenditure of Asset Seizure Funds in the Amount of $31,625............................................89-248 8. 1st reading - Ordinance of the Council of the City of Palo Alto Amending Chapter 2.20 of the Palo Alto Municipal Code to
Redefine the Planning Commission=s Powers and to Rename it the Planning and Transportation Commission................89-248 9. Contract Between the City of Palo Alto and Community Federal Credit Union in the Amount of $350,000 for Providing Home Efficiency Improvement Loans at Below Market City Subsidized Interest Rates........................................89-248
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10. Contract Between the City of Palo Alto and Addison Olian, Inc. in the Amount of $140,000 for Advertising, Marketing and Public Relations to Utility Marketing Services and Community Relations.............................................89-248
11. Ordinance 4602 entitled ΑOrdinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1998-99 to Provide an Additional Appropriation of $600,000 for the Stanford West Underground Extension Capital Project Number 9901".................................................89-248
12. Ordinance 4603 entitled ΑOrdinance of the Council of the City of Palo Alto Adding Chapter 10.45 to the Palo Alto Municipal Code to Regulate Valet Parking and Amending the Code to Regulate Valet Parking and Amending the 1999-00 Municipal Fee
Schedule to Include Fees for Valet Parking≅ ...........89-248 13. Proposed Amendment to Utilities Rule and Regulation No. 5, Ratification of Two Customer Contracts for Energy Services and Approval of an Amendment to One Customer Contract for Energy Services..............................................89-249 AGENDA CHANGES, ADDITIONS, AND DELETIONS ..................89-249 13A. (Old Item No. 17) PUBLIC HEARING: Resolution of the Council of the City of Palo Alto Ordering Weed Nuisance Abated...89-249 14. Conference with City Attorney--Existing Litigation....89-249 15. PUBLIC HEARING: The City Council will consider applications by the City of Palo Alto Public Works Department regarding Downtown Parking Structures...........................89-249 16. PUBLIC HEARING: The City Council will review the South of Forest Area (SOFA) Coordinated Area Plan and the adequacy of the associated Final Environmental Impact Report......89-250 18. Mayor Fazzino re Cancellation of the Regular City Council Meetings of December 27, 1999, and January 3, 2000....89-266 19. Council Comments, Questions, and Announcements........89-266 ADJOURNMENT: The meeting adjourned at 10:20 p.m............89-266
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The City Council of the City of Palo Alto met on this date in the Council Chambers at 7:35 p.m. PRESENT: Eakins, Fazzino, Kniss, Rosenbaum, Schneider, Wheeler ABSENT: Huber, Mossar, Ojakian SPECIAL ORDERS OF THE DAY 1. Proclamation Commending Senator Ron Wyden ORAL COMMUNICATIONS Ed Power, 2254 Dartmouth Street, spoke regarding honesty in government. Sophia Dhrymes, Karras Apartments, 483 Hawthorne Avenue, spoke regarding vandalism. Linda Jolley, 3757 Haven Avenue, Menlo Park, spoke regarding gardening. APPROVAL OF MINUTES MOTION: Council Member Kniss moved, seconded by Wheeler, to approve the Minutes of October 25, 1999, and November 1, 1999, as submitted. MOTION PASSED 6-0, Huber, Mossar, Ojakian absent. CONSENT CALENDAR Council Member Rosenbaum acknowledged receipt of new material for Agenda Item 13 which specified the revision to Utility Rule 5. The City Council was asked to approve two contracts without knowing what was in them. Staff will bring further information back to the Council in February 2000. MOTION: Vice Mayor Wheeler moved, seconded by Schneider, to approve Consent Calendar Item Nos. 2 - 8, and 11 - 13 with Item Nos. 9 and 10 removed by staff and continued to December 20, 1999. 2. Policy to Significantly Reduce Mercury and Dioxin Releases to the Environment - Refer to Policy and Services Committee
(continued from 12/13/99)
3. Resolution 7914 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. 7890 and Amended by
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Resolution Nos. 7897, 7902 and 7907 to Amend the Salaries of
Council Appointed Officers≅(continued from 12/13/99) 4. Contract Between the City of Palo Alto and Apex Construction in the Amount of $309,600 for Civic Center 3rd and 5th Floor Renovation - Capital Improvement Program Projects 19922 and 10020 (continued from 12/13/99) 5. Wilkie Way Bicycle Bridge Renovation and Structural Improvements, CIP Project 19708 - Rejection of Bids (continued from 12/13/99) 6. Contract Between the City of Palo Alto and J. F. Pacific Liners, Inc. in the Amount of $76,800 for the Line Cleaning of Large Diameter Sewer for the Regional Water Quality Control Plant (RWQCP) (continued from 12/13/99) 7. Approval of Expenditure of Asset Seizure Funds in the Amount of $31,625 (continued from 12/13/99) 8. 1st reading - Ordinance of the Council of the City of Palo Alto Amending Chapter 2.20 of the Palo Alto Municipal Code to
Redefine the Planning Commission=s Powers and to Rename it the Planning and Transportation Commission (continued from 12/13/99) 9. Contract Between the City of Palo Alto and Community Federal Credit Union in the Amount of $350,000 for Providing Home Efficiency Improvement Loans at Below Market City Subsidized Interest Rates (continued from 12/13/99) 10. Contract Between the City of Palo Alto and Addison Olian, Inc. in the Amount of $140,000 for Advertising, Marketing and Public Relations to Utility Marketing Services and Community Relations (continued from 12/13/99)
11. Ordinance 4602 entitled ΑOrdinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1998-99 to Provide an Additional Appropriation of $600,000 for the Stanford West Underground Extension Capital Project Number 9901" (continued from 12/13/99)
12. Ordinance 4603 entitled ΑOrdinance of the Council of the City of Palo Alto Adding Chapter 10.45 to the Palo Alto Municipal Code to Regulate Valet Parking and Amending the Code to Regulate Valet Parking and Amending the 1999-00 Municipal Fee
Schedule to Include Fees for Valet Parking≅ (1st Reading 11/15/99, PASSED 9-0) (continued from 12/13/99) 13. Proposed Amendment to Utilities Rule and Regulation No. 5, Ratification of Two Customer Contracts for Energy Services and
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Approval of an Amendment to One Customer Contract for Energy Services (continued from 12/13/99)
Resolution 7915 entitled ΑResolution of the Council of the City of Palo Alto Approving and Adopting an Amendment to Rule and Regulation 5 Governing Utility Services Contracts Effective December 14, 1999" MOTION PASSED 6-0, Huber, Mossar, Ojakian absent. AGENDA CHANGES, ADDITIONS, AND DELETIONS MOTION: Vice Mayor Wheeler, seconded by Eakins, to move Item No. 17 forward ahead of Item No. 16 to become Item No. 13A. MOTION PASSED 6-0, Huber, Mossar, Ojakian absent. 13A. (Old Item No. 17) PUBLIC HEARING: Resolution of the Council of the City of Palo Alto Ordering Weed Nuisance Abated (continued from 12/13/99) Mayor Fazzino declared the Public Hearing open. Receiving no requests from the public to speak, he declared the Public Hearing closed. MOTION: Council Member Schneider moved, seconded by Rosenbaum, to adopt the resolution.
Resolution 7916 entitled ΑResolution of the Council of the
City of Palo Alto Ordering Weed Nuisance Abated≅ MOTION PASSED 6-0, Huber, Mossar, Ojakian absent. CLOSED SESSION 14. Conference with City Attorney--Existing Litigation Subject: Jeanine Martin v. City of Palo Alto, et al., Santa Clara County Superior Court #CV755863 Authority: Government Code section 54956.9(a) UNFINISHED BUSINESS 15. PUBLIC HEARING: The City Council will consider applications by the City of Palo Alto Public Works Department regarding Downtown Parking Structures for the following: (continued from 10/18/99) 445 Bryant Street (Lots S/L: 1) Zone Change from Public Facilities (PF) and Commercial District with Pedestrian
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Shopping Combining District (CD-D (P)) to a Planned Community (PC) Zone and to allow the Construction of a Multi-Level Parking Garage on Existing City of Palo Alto Parking Lots S/L; 2) Tentative Subdivision Map Approval to Remove 19 Underlying Lot Lines and Combine the Lots Into One Lot for the Purpose of the Above Project; and 3) Certification of the Final Environmental Impact Report (FEIR). [File Nos. 98-ZC-11, 98-ARB-159, 98-EIA-23, and 98-SUB-5] Resolution of the Council of the City of Palo Alto Certifying the Environmental Impact Report for the Downtown Lots S/L and R Parking Garage Projects, and Making Certain Findings Ordinance of the Council of the City of Palo Alto Amending Section 18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Change the Classification of Property Known as 445 Bryant Street (Parking Lots S/L) from PF and CD-C(P)to PC 528 High Street (Lot R): 1) Zone Change from Public Facilities (PF) to Planned Community (PC) Zone to Allow the Construction of a Multi-Level Parking Garage on an Existing City of Palo Alto Parking Lot R; 2) Tentative Subdivision Map Approval to Remove 8 Underlying Lot Lines and Combine the Lots Into One Lot for the Purpose of the Above Project; and 3) Certification of the Final Environmental Impact Report (FEIR). [File Nos. 98-ZC-12,98-ARB-180, 98-EIA-25 and 98-SUB-6] Ordinance of the Council of the City of Palo Alto Amending Section 18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Change the Classification of Property Known as 528 High Street (Parking Lot R) from PF to PC 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 $308,000 for Downtown Parking Structure Feasibility Study Capital Project Number 19530 16. PUBLIC HEARING: The City Council will review the South of Forest Area (SOFA) Coordinated Area Plan and the adequacy of the associated Final Environmental Impact Report (FEIR). The City Council will consider directing staff on the preparation of a resolution with appropriate findings for the FEIR and an implementing ordinance to adopt the SOFA Coordinated Area Plan. The City Council will also review the SummerHill Homes proposal within the Plan area in order to consider whether to endorse that plan and direct the preparation of a development Agreement with SummerHill Homes. The City Council will also consider direction on City participation in the implementation of the Plan including the acquisition of parkland, land for an affordable housing site, a financing package and direction to staff on a possible Budget Amendment Ordinance. (continued
from 12/13/99)
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Council Member Rosenbaum said part of the proposal was the acquisition of the Roth Building. It was not necessary for the City to acquire the Roth Building to preserve it. The building was protected and could be taken care of in private hands. The cost of acquisition was $2 million with an estimated cost to renovate the building and provide parking of $3 million. The City was looking at an expenditure of $5 million to acquire 13,000 square feet of space. Arguments could be made as to why the City should anticipate the expenditure, but the arguments were not made in the staff report (CMR:427:99). He looked for justification for the expenditure. Director of Planning and Community Environment Ed Gawf said several factors were considered, including the quality of the Roth Building which was a jewel in the community. Staff looked at the opportunity to combine a public building with the park. Staff looked at the needs for additional space for city government offices during the future 10 to 20 years. The current City Hall building would not be large enough to contain all the necessary uses. There would be a need for additional space. Office space close to the Downtown was an attractive opportunity. The final factor was the potential, if under the proposed Library Plan, the Downtown Library was retained which would provide an opportunity to relocate the Downtown Library to the Roth Building. The Downtown Library site could be used for other uses. Council Member Rosenbaum said the opportunity to move the Library was good if a more effective use of the present site became apparent. At some point, he would like to memorialize that idea as the intent at the present time. Vice Mayor Wheeler said page 106 of the Coordinated Plan mentioned uses in the Attached Multiple Family (AMF) zone; and Paragraph 3.2 (f) discussed mixed use up to a maximum 30,000 square feet. Her interpretation of the paragraph meant that wherever the plan had AMF zoning applied, there could be a significant component of
commercial use. She did not believe that was staff=s or the
Working Group=s (WG) intent to introduce that much commercial throughout the AMF district. Mr. Gawf said that was correct. Staff tried to word the paragraph in such a way that the area of the SummerHill proposal on Homer Avenue was defined. Staff met with the WG the prior week, and the WG identified the area in such a way there was no misunderstanding that it was not a blanket within the AMF zone that 30,000 square feet would be allowed. Staff would modify the wording to make the intent clear. Vice Mayor Wheeler clarified there was grandfathering of existing nonconforming uses in the AMF District.
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Mr. Gawf said that was correct. Vice Mayor Wheeler asked whether the grandfathering of the uses was envisioned as in perpetuity or for as long as the current owners or use did not change. Mr. Gawf said the property would be treated as any other properties in the City in terms of nonconforming use. Council Member Rosenbaum said the .1 acre lease assignment was to some degree presented as a bonus to the City, something for which the City paid almost nothing. He asked whether staff was in a position to comment on what a realistic view was of the cost of the lease as compared to outright purchase. Director of Administrative Services Carl Yeats believed the lease was $1,000 per month with an escalation factor built into it that was based upon the Consumer Price Index. The net present value was calculated at approximately $323,000; however, it was not a lease that could be bought out. Council Member Rosenbaum clarified instead of paying $.5 million if the land were available for sale, the City was paying $323,000. City Attorney Ariel Calonne said the City was paying $323,000 for a lease, and there was a fee interest in the property that had some value. The value was not known but would likely be no more than the difference between the fair market value and the value of the lease. He did not know what the price was for taking the property. Council Member Rosenbaum asked whether the real cost to the City was more or less than $323,000. Mr. Calonne said the lease encumbered the value of the property; the lease divided the value between the fee owner and lessee for the purpose of condemnation. The City would acquire a substantial portion of the value of the property by acquiring the lease. Council Member Rosenbaum suggested when the item returned to the new Council, there be clear explanation of what the City was getting because the developer had presented the property as something of real value as compared to $.5 million cost of purchase of the property. Mr. Yeats said at the time staff provided numbers to the Council, staff had not received a copy of the lease. Staff attempted to approximate the value which was based on square footage. Vice Mayor Wheeler said at the prior meeting, the WG indicated it only recently had an opportunity to review the proposals that were submitted to the City. The WG asked for additional time to submit more refined reactions to the proposal. The action the Council was asked to take was preliminary in nature and was intended to keep
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the process moving. She asked how staff saw the WG=s reaction fit together with the new Council. Mr. Gawf said the WG was asked to review changes staff suggested to the plan and provide staff with any reaction. If there were significant reactions from the WG, he would reconvene the WG and go over the concerns. If there were no significant reactions, he assumed the WG endorsed the staff changes. He needed assistance from the WG in terms of Block B. At the prior meeting, Larry Hassett indicated that the WG was generally comfortable with the SummerHill plan except for Block B. He offered to work with members of the WG, the neighborhood, and SummerHill in reviewing the AMF units in Block B for a possible different design that fit more appropriately in the neighborhood and provide a better transition to Waverley Street. Mr. Calonne said the WG was set up as an advisory body and therefore exempt from the conflict of interest law which was why Larry Hassett participated and Council Member Huber did not participate. If the WG was allowed to get into an iterative process with the Council, he would be concerned that the WG would be placed in risk of violating the conflict of interest law by
becoming a decision-making body. The WG=s involvement was an assistive capacity to the staff and should not be misconstrued as a decision-making body. City Manager June Fleming said Mr. Gawf would work with the WG so staff would receive positive dialogue and try to meet together around the issue. The Council might get a proposal back that was not 100 percent in sync. Council Member Eakins recalled at the prior meeting there was considerable comment about the size, massing, and density of the proposed housing on Block B. The Council did not realize that 1.5 Floor Area Ratio (FAR) could yield such mass. The setting was critical. Mr. Gawf said one of the points he made to the WG and Council was there were two major components to the issue: the land use plan and the development standards. The question was whether the buildings that resulted from the development standards fit into the neighborhood. Staff worked hard on the development standards to get the plan in place and an appropriate direction. Understanding how the buildings fit into the neighborhood could be done in several ways. With the WG the prior summer, computer modeling was done which showed the present situation and what the building would look like after development. Nothing worked better than an actual model, and staff emphasized that point to SummerHill. He asked that the Council include in the motion the requirement for a model.
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Council Member Schneider asked how much commercial space was available in the total plan and what was the Council currently looking at. Mr. Gawf said the original plan had Phase One and Phase Two with more commercial shown in Phase Two. He would put more emphasis on residential uses in Phase Two. Any commercial that was included would be subtracted from the Downtown cap. The overall limit was not expanded. Council Member Schneider asked what was the amount in the Downtown. Mr. Gawf said the original cap originally was 350,000 square feet, and approximately 90,000 square feet had been used. Council Member Schneider asked what were the plans for Block C: what commercial uses were discussed, what would the project look like, and what was anticipated going in Block C. Jim Baer, SummerHill Homes, said the current total Palo Alto Medical Foundation (PAMF) commercial area as shown in Volume 2 of the South of Forest Avenue (SOFA) Coordinated Area Plan (CAP) indicated commercial was approximately 240,000 square feet. There were a variety of programs in the Policies and Programs of Volume 1 of the WG plan that included nonconforming reuse of historic
buildings if that was necessary to continue the buildings= historic use, the encouragement that a transfer development rights (TDR) program be adopted, and that bonuses for historic buildings such as those that existed in the Downtown be adopted. It was an overstatement to say there would be as much as 80,000 feet including the Roth Building in the east of Ramona Street portion of the plan the Council was asked to review. Homer Street would include 30,000 square feet which consisted of two buildings with a site coverage of about 60 percent, a two-level underground parking garage. The buildings on Bryant Street would have setbacks to match the setbacks of the Roth Building and the height would be two-stories for commercial which would allow approximately 7,500 square feet available for mixed use residential use above the commercial area. Staff asked that no user in the commercial buildings be allowed to exceed 10,000 square feet of use area. That was a way of avoiding an expanding internet company or investment bank. Council Member Schneider clarified the project would be 30,000 square feet of commercial space facing on Bryant Street. Mr. Baer said there would be no openings on Bryant Street. Part of the willingness of staff to consider the approach was to create a reinforcement of a Homer Street facade connecting the Roth Building with the City of Paris block.
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Council Member Kniss referred to the Draft CAP which indicated that it was intended to create enhanced opportunities for building a sense of community through public involvement, such as the WG, and planning processes that provided residence, business, and property owners with early and meaningful opportunities to help shape the physical components of their neighborhood and community. At the commencement of the CAP process, a 14-member WG was named to represent the broader interest of the community and develop a vision for the SOFA. The recommendations were forwarded to the Council and contained in the June 9, 1999, WG SOFA plan. MOTION: Council Member Kniss, second by Wheeler to direct staff as follows: 1. Direct staff to continue working with SummerHill Homes on their proposed implementation of the SOFA CAP in order to address the following concerns: - Assess the feasible options for reducing the size and mass of the Block B AMF buildings, and improving their design to be complementary to the Professorville neighborhood. - Request that SummerHill Homes, subject to independent review by staff, prepare graphics and models describing Block B structures and the DHS prototypes to be included in the CAP.
2. Staff=s coordination with SummerHill should include neighborhood outreach and participation. 3. Direct Staff to prepare a draft implementing ordinance for future consideration by Council. The ordinance should adopt the staff-recommended SOFA Coordinated Area Plan (CAP) which would include the following: a) Policies and Programs of the Plan as identified in Chapter III for Phase I b) Land use designations including a: - 2.0-acre neighborhood park located either along Homer Avenue between Bryant and Waverley Street, or along Waverley Street between Homer and Channing Avenues, - Acquisition of the 0.41-acre Roth Building and site as a public facility, - Provision of up to a 1.23-acre site for affordable housing,
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- 0.29-acre (12,500 square feet) site for a child care center, and - Land use designations, development standards and design guidelines for Detached Houses on Small Lots (DHS) and Attached Multiple Family (AMF). c) Maintain the current circulation pattern on Homer and Channing Avenues and continue to explore solutions to calm traffic that could include conversion to two-way, narrowing of the traffic lanes, bulb-outs, or other measures. d) Pursue an under-crossing of the CalTrain tracks at Homer Avenue. e) Maintain the historic resources in SOFA by requiring compliance with the Secretary of the Interior's Standards for Rehabilitation for all properties identified as meeting the criteria for the National Register of Historic Places. f) Separate all CAP Phase II items for later review and study. g) SOFA review processes detailed in the CAP requiring design review for all new development to ensure neighborhood compatibility, appropriate massing and creation of distinctive architectural styles. These processes also include an exception and amendment procedure. 4. Continue to pursue City participation in the implementation of the SOFA CAP by: - Negotiation to acquire 1.56 acres of land for the creation of a 2.41 acre park and public facility (including Roth Building) - Negotiation to acquire 0.48 acres of land for the creation of a 1.23-acre affordable housing site. 5. Direct staff to develop a specific financing package for acquisitions in SOFA, including a Budget Amendment Ordinance for the up-front costs, which would include the acquisition, development and maintenance costs of the park and Roth Building. 6. Direct staff to prepare a draft Development Agreement incorporating the SummerHill Homes proposal and dedication of 1.6 acres of land for public use, and taking the actions necessary to implement the financing package.
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7. Prepare a draft Resolution certifying the Final EIR and making mitigation findings. Because we intend to address park needs, there is no need for a statement of overriding considerations. Council Member Rosenbaum said the sale of the Scott Park was missing in the recommendation. Mr. Gawf said the sale of the Scott Park would be included as part of the financing package at a later time. Council Member Rosenbaum said the sale of Scott Park was a policy issue to be considered by the Council.
Council Member Eakins suggested adding Αincluding massing models
for proposed and existing structures≅ to item 1 of the recommendation in the staff report (CMR:427:99). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add the following language after the word ΑCAP≅ to the
third paragraph in Item No. 1, Αincluding massing models for
proposed and existing structures.≅ Council Member Schneider said at the prior meeting several people asked for information about SummerHill and why the City had not seen a bid from another developer. She visited SummerHill home sites and suggested that those who had not seen SummerHill homes should look at them. The homes were high quality and meant to last a long time. Vice Mayor Wheeler said staff heard much testimony and anguish pointed to the fact that the proposed Floor Area Ratio (FAR) exceeded the 1.5 FAR that the WG had examined in its deliberations. She agreed with the anguish that was expressed to the Council and asked that the Council direct staff and the potential developer in their discussions about reduction of size and mass of Block B buildings that the 1.5 FAR not be exceeded. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add the following language to the second paragraph of
Item No. 1, Α1.5 FAR shall not be exceeded.≅ Vice Mayor Wheeler said the preliminary design showed the parking underneath the multi-family housing units was one half floor above ground. If that continued to be the case, that would impact the mass, size, height, and bulk of the buildings and would have a significant impact on the visual quality of the buildings for the residence of the neighborhood, particularly from the pedestrian level. She wanted staff to have the flexibility with SummerHill to explore whether it was financially feasible to make the parking underground and make the project aesthetically better.
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Mr. Calonne suggested the following wording, ΑStaff to explore the financial feasibility of full underground parking, not podium
parking.≅ INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add the following language to the second paragraph of
the last sentence of Item No. 1, ΑStaff to explore financial
feasibility of full underground parking, not podium parking.≅ Council Member Schneider asked how many units did .18 translate to when considering 1.68 and 1.5 FAR. Mr. Gawf said the .18 translated to approximately 16,500 square feet of floor area. The project proposed 66 units at 1.5. Council Member Schneider asked what percentage the square footage of an individual unit would be reduced. Rick Wurzelbacher, Vice President, SummerHill Homes, said the total square footage of the proposed Block B Development was just over 100,000 square feet, so the 16,500 feet was approximately 16.5 percent. The amount would equate to approximately four units. It was more likely the unit count would remain at 66 given that the project was at the floor of the 30-50 density range established in
the WG=s plan. Unit sizes would be reduced rather than unit count.
Mayor Fazzino asked about the word Αfeasible≅ in the first
paragraph of Section 1 ΑAssess the feasible options...≅ Mr. Gawf said the wording could be different. His understanding was that the size and mass of the building on Block B needed to be complementary to the surrounding neighborhood. Staff looked at identifying options to give the Council choices.
Mayor Fazzino proposed remove the word Αfeasible.≅ INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to remove the word Αfeasible≅ from the second paragraph of Item No. 1. Mr. Calonne said staff should know whether the 1.5 and the 30-50 density range in the plan were the acceptable maximums. Mr. Gawf said the WG plan indicated a density of 30-50 units per acre. The 1.5 FAR was the maximum. Council Member Schneider asked at what point would the project become nonproductive for the developer. She heard SummerHill agree
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that 1.5 was acceptable, and the size of units would be reduced rather than reduce the number of units. Rick Denman, SummerHill Homes, was not sure what the answer was to
Council Member Schneider=s question, but said SummerHill was willing to return with a program to meet as many goals as possible. SummerHill would do homework, visit with the neighbors, and then report to staff. Council Member Rosenbaum said SummerHill indicated they could live with either the original proposal for a park along Waverley or the alternate which had the park along Homer Avenue, but indicated they would prefer the park along Homer Avenue. Since the Council would be involved in negotiations, the location of the park might have an impact on negotiations. The park would be more useful if located along Waverley Street. Council Member Kniss said there were prior discussions as to whether the Roth Building could be a library-type use. Mr. Wurzelbacher said SummerHill expressed preference for the alternative plan because it gave greater access to the public and provided for a more interesting and acceptable layout of the condominium development. It was cumbersome for SummerHill to carry two alternatives through the next more detailed iteration of their design and planning. Effort that could be focused on one scheme would be split into two schemes. SummerHill would make better progress if given a preference on the part of Council as to which orientation they prefer. Mayor Fazzino said the new Council Members needed to be involved in
the Council=s decision. He liked the plan that incorporated the Roth Building into the park and could foresee the Roth Building used as a library. Council Member Kniss said the integration of park and building appeared more complete on the alternate plan. She liked the feeling of park and open space. Council Member Eakins said the criteria or priority for nice integration, access to the out of doors, and excellent setting for the library was the direction the Council should give. She preferred the Waverley Street orientation. Council Member Schneider preferred the park facing Homer Street because there was more continuity and more flow particularly with the Roth Building leading into the park. There were more housing units that would face on the park as opposed to on the Waverley side. Vice Mayor Wheeler the direction from the Council should wait until the new Council was seated.
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Council Member Rosenbaum referred to the provision of up to a 1.23 acre site for affordable housing and said his understanding was SummerHill was not indifferent. He suggested directing staff to consider with SummerHill one of two options. He did not favor the option in the staff report which had the City acquiring the two old houses plus the duplex. If the City wanted the 1.23 acres for new affordable housing, the two old houses on Bryant should be moved by SummerHill to two of the single-family sites. The second option was to leave the houses where they were and have SummerHill buy and renovate them. The disadvantage was that the City would get .9 acres for affordable housing. One advantage would be that the historic streetscape was maintained. Rosenbaum suggested directing staff to negotiate with SummerHill on either one of the two possibilities: the houses stay where they are and the City buys .9 acres for affordable housing, or SummerHill moves the houses to two other lots and the City buys 1.23 acres for affordable housing. Mayor Fazzino clarified there was an available location for the two houses. Council Member Rosenbaum said SummerHill proposed to develop a number of single-family lots and proposed to move two other old homes to two of their single-family lots. Mr. Wurzelbacher said the packaging of the wide variety of issues was important. From a design and historic standpoint, SummerHill could be satisfied with the outcome of moving the houses. It might be feasible at a considerable cost and risk to move the houses in an historically acceptable fashion. Mayor Fazzino asked whether SummerHill preferred to leave the houses where they were. Mr. Wurzelbacher said SummerHill was amenable to retaining the properties, rehabilitating the homes in place, and selling them as single-family market rate houses. Council Member Schneider asked about the designation of the houses, for example, Priority 1. Mr. Gawf said the homes were eligible for the National Register.
Council Member Schneider asked about the cost of the homes Αas is.≅ Mr. Gawf said the purchase price the City proposed to pay was $560,000 per lot. The houses were in need of additional work to make them affordable housing multiple-family structures. He spoke to an architect involved in restoration who would prepare a feasibility study done if the Council wished to continue considering acquiring the houses.
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Council Member Schneider said the information would be of great interest to the new Council in January. Mr. Gawf said if the Council decided in January not to proceed with the purchase, SummerHill was comfortable with retaining ownership of the houses and selling them to private individuals for restoration. Council Member Schneider asked whether the houses would be multi- or single-family houses. Mr. Wurzelbacher did not have specific answers. SummerHill looked at the options of doing their own restorations and marketing the houses as finished and considered the possibility of selling the
houses Αas is.≅ The houses would likely end up as single-family as opposed to multi-family dwellings. Council Member Schneider asked how many square feet each lot represented. Mr. Wurzelbacher said the lots were slightly over 5,000 square feet. The market value of clear land as opposed to land with an existing historic structure was significantly more. Council Member Schneider asked whether there were any discussions about possible funding to purchase the houses to turn them into a resource center or something that would benefit the entire neighborhood. Mr. Gawf said staff had not looked into turning the property into a nonprofit center. Council Member Eakins was concerned with maintaining flexibility about the destiny and future use of the structures and preferred the staff recommendation of provision of up to a 1.23 acre site for affordable housing. Vice Mayor Wheeler said one of the most exciting things to come out of the CAP and the proposal from SummerHill was the provision of a potentially significant amount of land on which affordable housing
could be developed. She disagreed with Council Member Rosenbaum=s motion because the City could wind up with a .9 acre site with two structures being used for multi-million dollar homes. That was not what she envisioned nor hoped would happen with the parcel of land.
While she wished there were less flexibility with staff=s proposal, it was preferable to losing more than .25 acre of
affordable housing use with the staff=s proposal. The City had the ability to acquire 1.25 acres of affordable housing.
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Council Member Rosenbaum said it would be an inefficient use of affordable housing money to attempt to rehabilitate the two homes for affordable housing. AMENDMENT: Council Member Rosenbaum, seconded by Wheeler, that the City intend to use the 1.23 acres for new affordable housing, and direct staff to negotiate with SummerHill to move the two houses to two of their single-family sites. Vice Mayor Wheeler said the Council would be remiss to not take full advantage of the rare opportunity to address a significant issue and significant need in the community. The City could maximize the potential for constructing affordable housing units if there was a clean, rectangular piece of land to work with. Council Member Kniss did not support the motion because she could not determine how it all fit together. She was not privy to enough information to know whether or not the City stayed within the parameters of whatever arrangement was made between the three parties. The houses presented a challenge. While she was reasonably sure the houses could be moved, it was not an inconsequential type of move to make. Moving a house was problematic. Council Member Schneider asked what happened with a historic home that was moved and then discovered during the move that it would not hold together, for instance, was the house considered demolished at that point. Mr. Gawf said the house could be demolished, and if it had to be rebuilt by 30-50%, the historic integrity would be lost. The Council needed to 1) find out how much the cost would be to restore the homes for affordable multi-family use; and 2) how much and how difficult moving the houses would be and were there receiver sites. Staff will bring information back to the Council. He asked whether the Council wanted staff to go after the 1.23 acres. Council Member Schneider did not support the motion. Council Member Kniss said Mr. Gawf indicated the prior day that the historic preservation architect would provide feedback on the stability of the house. Mr. Gawf said yes and estimates on the cost of restoring the houses. The historic preservation architect looked at the foundations and felt they were both in good shape. Council Member Eakins asked whether staff could obtain information about sources of funds for affordable historic housing while looking at costs.
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AMENDMENT FAILED 2-4, Rosenbaum, Wheeler Αyes,≅ Huber, Mossar, Ojakian absent. Mr. Gawf said the WG was adamant about converting Homer and Channing Avenues into two-way streets and recognized the difficulty with the unique situations of Channing House and Whole Foods. Staff felt the real issue was traffic calming on Homer and Channing Avenues. One solution might be to revert the streets to two-way traffic. Mayor Fazzino asked when the decision be made regarding the streets. Mr. Gawf said the decision was part of Phase 2. Council Member Eakins said during a recent walk, she found the people in the area were friendly. The neighborhood atmosphere should be appreciated and maintained. She found drivers in the area to be extremely aggressive, and was in support of traffic calming. Council Member Rosenbaum did not believe that converting to two-way streets could be that much of a problem for Channing House. If he were on the Council at the time to vote, he would support the conversion to two-way streets. Council Member Kniss said Channing House had approximately 300 people who lived there and not many people who drive. The Whole Foods area was challenging. She had not noticed the same situation as mentioned by Council Member Eakins. More study was necessary. She was not convinced that two-way traffic was more pedestrian-friendly. Mayor Fazzino was comfortable with the current configuration. He wanted to be absolutely convinced that change was necessary before he could support the motion. More information was necessary before making a change. The expressway orientation on Channing Avenue concerned him. Mr. Gawf said the under-crossing of the CalTrain tracks at Homer Avenue worked best with the two-way street system on Homer and Channing Avenues. The City had done exceptionally well in the competition for outside funds for that project. Council Member Rosenbaum was concerned with the allocation of 1.5 acres offered by SummerHill. His original understanding from staff and SummerHill was that the 1.5 acres was thought to be divided with 1 acre toward the park and .5 acres toward affordable housing. No analytic calculation was made about what the allocation might be. He suspected when it was decided to buy the additional property that staff changed the allocation which had an impact on the General Fund. He proposed changing the allocation to .9 acres
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towards the park and .6 acres toward affordable housing; the impact would be to change 1.56 to 1.41, and .8 to .63. AMENDMENT: Council Member Rosenbaum moved, seconded by Wheeler, to change the allocation of the land to .9 acres for park and .6 acres for affordable housing. The impact to Item No. 4 will be to change 1.56 acres to 1.41 acres of land and to change .48 acres to .63 acres of land. Mr. Gawf said SummerHill indicated they would dedicate 1.5 acres,
and it was the City=s decision as to how it was divided. Council Member Rosenbaum said normally the City would negotiate with the developer as to what their Below Market Rate (BMR) contribution should be, but that was not done in the current case. The question was whether money would be taken out of the General Fund or Commercial In Lieu Housing Fund. At one point, he believed .5 acres would be short of what was required out of the Commercial Housing Fund. AMENDMENT PASSED 6-0, Huber, Mossar, Ojakian absent. Council Member Rosenbaum said Item No. 5 of the staff recommendation would be a convenient to add the policy direction on Scott Park. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND THE SECONDER to insert Αincluding the sale of Scott Park≅ after the
word Αpackage≅ in Item No. 5. Council Member Schneider asked about the size of Scott Park. Mr. Gawf said the park was .4 acres, estimated at a cost of $2 million. The property could be subdivided but he was unsure how many lots could be developed. Staff wanted to consider the possibility of continuing a walkway through the park for the Professorville neighborhood to use to get to the park on Homer Avenue. Mr. Calonne asked the Council to provide direction to let the area plan designate what uses might be made of Scott Park if the property were sold. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add an (h) to Item No. 3, ΑAsk working group/ neighborhood to consider and advise on how to develop Scott Park,
if sold.≅
Mayor Fazzino said Council Member Rosenbaum=s amendment to the motion committed the Council to move ahead with selling the Scott Park.
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Council Member Rosenbaum said there was a two-step process before Scott Park would be sold: 1) a hearing would be held where people could register objections; and 2) the Council would place the issue on the ballot. Larry Hassett, WG, said the Council provided good direction and guidance for the WG. Mr. Denman said SummerHill was open minded and flexible in trying to address as many issues as possible, as long as the City, neighbors, and others involved were willing. MOTION AS AMENDED PASSED 6-0, Huber, Mossar, Ojakian absent. Ms. Fleming said staff had clear direction from the Council. Staff worked with the WG and brought the Council a proposal from which the Council could give staff direction to negotiate with SummerHill. Council Member Schneider said when she first got on the Council, there were two issues she wanted to see accomplished. One issue was the Sand Hill Road project and the second issue was to see the PAMF property developed properly. Council Member Rosenbaum was reluctant to spend $5 million to acquire 13,000 square feet without a clear purpose in mind. If it was decided to maintain a Downtown Library, and if a better use was found for the current site, then the Roth Building would make an excellent Downtown Library site. MOTION: Council Member Rosenbaum moved, seconded by Kniss, that the Council indicate its intent to purchase the Roth Building for the purpose of eventual use as a Downtown Library if it was decided to keep a Downtown Library, and if a better use was found for the current library site. Council Member Rosenbaum said there was a profitable use with moving the library to the Roth Building. The Council previously voted not to put the Public Safety Building on the site of the library. If the City could keep the existing Police Station and put an annex at the current library location, the cost of that annex plus the $5 million for the Roth Building would be less than the cost of a new Public Safety Building somewhere else. Ms. Fleming said when the Council made the decision about the Public Safety Building, she looked at the proposal that was initially before the Council and was currently making revisions to that proposal. Staff had preliminary information on the feasibility of a split facility. Preliminary estimates indicated the proposal was not cost effective.
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Vice Mayor Wheeler understood Council Member Rosenbaum=s motivation for his motion. She sympathized with the idea but agreed that before going to the public with a ballot measure, the Council needed to be clear about the intended use of the building. Ms. Fleming said she would provide the Council with any information she might receive. Council Member Eakins sympathized with the intent that the Council not end up with a fine building with a less than critical use. She could not support the current motion. Mayor Fazzino said the use of the facility as a downtown library would be wonderful, but there were other issues that needed to be addressed first, including the future of the Police Building. MOTION FAILED 4-2, Kniss, Rosenbaum Αyes,≅ Huber, Mossar, Ojakian absent. Council Member Rosenbaum asked staff whether consideration was given to working with the developer to consider the Roth Building as part of the condominium and use a mixed-use parking formula. Mr. Gawf said the issue was discussed previously, but a sharing arrangement was difficult due to the configuration of the parking in one plan. Staff worked on the best way to consider parking for the facility. Vice Mayor Wheeler said the CAP process and WG process could be counted among the more successful ventures the Council had into new planning territory. Well deserved and kind words needed to be said for the staff and for those who participated in the WG. She commended the neighbors who stayed with the process since the beginning and took a global view of the potential uses in their neighborhood. The neighbors were more generous than other neighborhoods that she observed during her public service to the community. COUNCIL MATTERS 18. Mayor Fazzino re Cancellation of the Regular City Council Meetings of December 27, 1999, and January 3, 2000 (continued from 12/13/99) MOTION: Vice Mayor Wheeler moved, seconded by Fazzino, that the Regular City Council Meetings of December 27, 1999, and January 3, 2000, be canceled. MOTION PASSED 6-0, Huber, Mossar, Ojakian absent. 19. Council Comments, Questions, and Announcements
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ADJOURNMENT: The meeting adjourned at 10:20 p.m. ATTEST: APPROVED:
City Clerk Mayor NOTE: Sense minutes (synopsis) are prepared in accordance with Palo Alto Municipal Code Sections 2.04.180(a) and (b). The City Council and Standing Committee meeting tapes are made solely for the purpose of facilitating the preparation of the minutes of the meetings. City Council and Standing Committee meeting tapes are recycled 90 days from the date of the meeting. The tapes are available for members of the public to listen to during regular office hours.
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