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HomeMy WebLinkAbout1984-05-21 City Council Summary MinutesCITY COUNCIL MINUT€s Regular - g Monday, May 21, 1984 ITEM CITY OF ME 410. PAGE Ural Communications 4 5 4 6 Approval of Minutes of April 23, 1984 4 5 4 7 Item #i, Resolution Proclaiming Birge M. Clark Day 4 5 4 7 Consent Calendar 4 5.4 8 Referral 4 5 4 8 Item #2, 1984-85 Budget - Referral to Finance and 4 5 4 8 Public Works Committee Item #3, 1983-84 External Financial Audit Bel of tte Haskins and Sells - Referral to Finance and Public Works Committee 4 5 4 8 Item #4, Wind Speed Monitoring on Black Mountain 4 5 4 8 Referral to Finance and Public Works Committee Item ,#5, Local Agency Formation Commission (LAFCO) Sphere of Influence Boundaries Referral to Planning Commission Action Item #6, Resolution of Appreciation to Jess Adona item #7, Resolution. of Appreciation to Anson DeRego Item #8,' Contract to Retrofill Polychlorinated Biphenyl (PCB) Contaminated Electrical Equipment Item #9, Upgrade Various City Owned Buildings to meet Code Requirements Item #10, Traffic Signal Coordination on Willow Road; Sand Hill Corridor Item #11, Maintenance Shop and Storeroom at Water tjual i ty Control Plant Item #15, Ordinance re Greer. Park Restrooms and Lighting (2nd Reading)( Agenda _Changes, Additions and Deletions Item #16, PUBLIC HEARING > Commercial and Apartment Conservation Services Plan 4 5 4 8 4 5 4 8 4 5.4 8 4 5 4 8 4 5 4 8 4 5 4 9 4 5 4 9 4 5 4 9 4 5.4 9 Item e#11,e,tUBLIC BEARING: ' Planning Commission 4 5 5,0 recomOendation re application of James K. Bull for an amendment to the )lanned Community Zone for the Stanford:Barn, 700 Welch Road Item- 1 , PUBLIC HEARING: P _a'nning. Com®fission -4 5 5 3 recOi aendoti on r°e appl i e_ati an „of City Of R410 Ai -to for 'Comprehensive P1an Land Use Map kedesignation and Zone -= Chnge for property: 'located at -1618/7U91 El -Camino `Read (The` bWeeks' property) ITEM PAGE Recess to Closed Session re Litigation 4 5 6 0 Item #19, PUBLIC HEARING: Application of Stanford University Hospital for Approval of the Hospital Modernization Project 4 5 6 0 Item #20, Additional Cable Franchising Services 4 5 7 5 Item #21, Northern California Power Agency - City of Firebaugh Project Item #21-A (Old Item #12), Advanced Waste Water Treatment Facility Effluent Discharge Alternative Study 4 5 7 9 4 5 8 2 Item #21-8 (Old Item #14), University Avenue Lot J 4 5 8 3 Parking Garage Assessment District Item #22, Request of Vice Mayor Levy re May 15 Letter from the Youth Council re Substance Abuse Prevention Programs 4 5 8 4 Item #23, Request of Counci loember Bechtel re "New" 4 5 8 5 Peripheral Canal S8 1369 (Ayala) Adjournment: 12:50 ae111e 4 5 8 5 4 5 4 5 5/21/84 Regular Meeting Monday, May 21, 1984 The City Council of the. City of Palo Alto met on this day in the Council Chambers at City Hall, 250 Hamilton Avenue, Palo Alto, at 7:35 p.m. PRESENT: Bechtel (arrived at 7:43 p.m.), Cobb, Fletcher, Klein, Levy, Menzel, Sutorius, Witherspoon, Woolley Mayor Klein announced that a special meeting to i ntervi ee appli- cants for the Historic Resources Board was held in the Council Conference Room at 6:1U p.m. He also announced the need for a closed session re5arding litigation at some point during the meet- ing. ORAL COMMUNICATIONS Harrison Utis, 909 N. California Avenue, thanked the Council for its concern about air traffic over Palo Alto. The airport placed more stringent controls on private planes, .but commer- cial helicopters needed to follow the same regulations. He requested more stringent enforcement of FAA and CAA regula- tions, 2. uavid Stewart, President, Youth Advisory Council, 1550 Middle- field Road, =_.aiu it supported the proposed Drug Abuse Preven- tion, Education, and Suppression Program, submitted by the Palo Alto Police Uepartnent. and Palo Alto Unified School Dis- trict. The Youth Council acknowledged the growing problem with alcohol and drug abuse in the City's schools, and hoped the City received a State grant to implement the program. The Youth Council was anxious to be involved with the program and wanted to publicize the proposed Pure Counseling Program. It could train school districts and 1 aw enforcement officials to deal with chronic drug abusers, and help the proposed advisory committee which would consist of school district officials, police officers, and students. John Mitchell, 4145 Verdosa Drive, represented the Local Ground Zero Pairing Project, which commenced last fall. The Palo Alto City Council and approximately 800 other cities sup- ported the effort towards direct city to city and people to people communications with the Soviet Union. The City's Proc- lamation was sent on November 23, 1983, and a response was re- ceived frvm the Soviet _City of Uzhgorod on May 18, 1984, and included a letter from E. . Popovich, Chairman of the Execu- tive Committee of the Uzhgorod City Council of Peavl es Depu- ties, as well as photo ,. brochures and a small book describing its: The letter which 'was typed in Russian and addressed to former (Mayor Betsy Bechtel, who signed the proclamation, con- tributed to the packet sent by the Pairing Project.'-.. It ex- pressed thanks for the information ation on Palo Alto, and concern for the nuclear threat facing the planet. It stated, "...today no honest person on this planet can remain calm while contemplating a world with the very real threat of destruction in a nuclear catastrophe overhanging it...lt is Clear .to every sane person today that a disruption of the armament balance is a threat...* In August, 1982, Uzhgorod actively participated in the --peace march, which included people representing 30 countries of the world. It was an old industrial and cultural center of the Transcarpathian Region where shoes, women's clothing, furniture, microcircuits, special products, and constructs on materials were among the major products. Cultural -opportunities included the_Transcar- pathian National Choir -,'youth dance ensembles, dra'ka theatres, museums, movie theatres, 100 libraries, sports complexes and 4 5 4 b 5/21/84 other-, bu i i di nys for the recreation of workers. Mr. Popovich closed his letter by saying, "Peace is the main -hope of all mankind. The workers of the City of Uzhgorod believe in the idea of peace. Therefore, this belief determines their feel- . n9 today --belief in the triumph of reason_ and peace on our planet. The future policy of our Party and government are pledged to this." The 'i,oject coordinators viewed the response as hope towards an exchange to enrich the people of Palo Alto and Uzhgorod, and as the sprouting of a seedling tree with great potential, which would require care and effort on the ,part of many if the project was to grow and produce fruit. Information can the Project could be obtained by call- ing 493-921J. Councilmember Bechtel said Mr. Mitchell spearheaded the Project, and she thanked him for his efforts. MINUTES OF APRIL '23. 1984 Councilmember Sutorius submitted the fo'lowing correction: Pa 4432, delete paragraph following "Agenda Changes, Additions an ee ions." Councilmember Fletcher had the following correction: Pa 4443, last paragraph, ninth line from bottom, "Dana" should Pa an ." MOTION: Councilmember Sutorius moved, seconded by Woolley, approval of the minutes of April 23, 1984 as corrected. MOTION PASSED unanimously. ITEM a -I , RESOLUTION PROCLAIMING JUNE 5, 1984, DIRGE CLARK DAY MOTION: Mayor Klein moved, seconded by Levy, approval of the resolution proclaiming June 5, 1984 as Birge M. Clark Day. RESOLUTION 6254 entitled "RESOLUTION OF THE COUNCIL OF 177 o ALTO PROCLAIMING JUNE 5, 1984 BIRGE M. CLARK DAY" Mayor Klein said Dirge M. Clark was a native of Mayfield and a captain in the united States Army Ba l l eon Service during World War 1, and commenced his architectural career in 1919 after completing the design and construction of the Herbert Hoover home at Stanford. As the City's foremost architect for six decades, he designed more than 100 commercial, institutional and residential buildings in Palo Alto and one-third were cited as exceptional, major or contributing quality by the Pal o _Alto Inventory of His- torical 8uildinos. Buildings included were the U. S. Post Office, Senior; Center, the Norey House listed in the National Register of H i stor'ical P1 aces, Lucie Stern Community Center, the Stern resi- dences, and many others. he enriched the City's historical archives by collecting records of his architectural works and writing descriptions of major coomi ss i"ons and reminiscences of life in early Palo Alto. He served the City for Many _years and was retiring from the Palo Al to iii stori c Resources Board 'and . the board : of Ui rec';ors of the Palo -alto Ni storical Association. The. City Council commended the outstanding public service of•Birge M. Clark and recorded-. its appreciation as well as that of its citie zens for the service and, -contributions, and proc.la#ned June 5, 1984 as Dirge M. Clark clay in Palo Alto. It encouraged ail _r•esi- dents to honor his generous services and architectural, achieve-. rnen + Ys MOTION PASSED unanimously. cONSLN I GALLNuMR Councilmewaer Renzel removed Item #12, Advanced Waste Water Treat- ment Facility Study, from the Consent Calendar, to become Item 21-A. Mayor Klein removed Item #13, San Francisquito Creek Erosion Con- trol Project, from the Consent Calendar at the request of staff to be rescheduled at a later date. Mayor Klein removed Item #14, University Avenue. Lot J Parking Garage assessment uistrict, from the Consent Calendar, to become Item 21-B. He wanted to discuss the agreement with the law firm and he did not believe other members of staff needed to stay. ur. Nancy Jewell Cross asked for clarification regarding Item #10, Traffic Signal Coordination on Willow Read/Sand Hill Corridor, and said there was some considerati+3n about a push-button signal at the end of the bike path at Willow Road so people could cross over to the Welch Road path. She asked if a push-button signal to be activated by a pedestrian or cyclist was within the scope of the agreement or allowable within the agreement. She wanted assur- ances that the agreement did not preclude better development to get around without a car and the possibility of a signal at the end of the bike path where it crossed Willow Road. MOTION: Councilmember Cobb moved, seconded by Witherspoon, approval of Consent Calendar Items 2-11 and 15, with Items 12, 13, and 14 removed. Referral ITEM #2, 19b4-85 BUOGET - REFERRAL TO FINANCE AND PUBLIC WORKS ITEM #3, 1963-64 EXTERNAL FINANCIAL AUDIT - DELOITTE HASKINS AND - I{Ll'LK 9 L - ITEM #4. WINU SPELL) MONITORING ON BLACK MOUNTAIN - REFERRAL TO t ITEM #a, LOCAL AGENCY FORMATION COMMISSION (LAFCO) SPHERE OF AT. TO PrA N T Til-TiYt`M ] - 3T 1CMR:a4:4) Action ITE.h gib, RESOLUTION OF APPRECIATION TO JESS AUMA (PER 4-2) -, • RESOLUTION 6255 entitled "RESOLi#TION OF THE COUNCIL OF O ALTO EXPRESSING APPRECIATION TO JESS AUONA UPON HIS RETIREMENT* ITEM #7 RESOLUTION OF APPRECIATION TO ANSON UeRECO (PER 4-2) RESOLUTION 6256 entitled "RESOLUTION OF THE COUNCIL OF LO ALTO EXPRESSING TO ANSON DeRESO UPON HIS RETIREMENT" ITEM Ob CONTRACT TO RETROFILL POLYC LORINATEU BIPHENYL (PCB) t • Staff recommends -the City Council authorize the Mayor to execute the contract with National Electric to provide complete retrof i l 1 service including disposal of the PCB contaminated oil on 30 units of electrical, equipment. AWARD OF CONTRACT National Electric 4 5 4 8 5/21/84 I,L 1 ii9, JPGRAnn VARIOUS CITY OWNED BUILDINGS TO MEET COOL KLUIJIKLFILI+i[ (Vvn ) (t,f1i{:zi32:+) Staff recommends the following Council action: 1. Authorize the Mayor to execute a contract with Goldman Con- struction, Inc.. i n the amount of $26,256; and c. Authorize staff to execute change orders up to $2,500. AWARD OF CONTRACT Goldman Construction, Inc. ITEM #1(), TRAFFIC SIGNAL COORDINATION ON WILLOW ROAD/SAND HILL Staff recommends that the Mayor be authorized to execute the agreement between the City of Menlo Park and Palo Alto. AGREEMENT FOR TRAFFIC FLOW ALONG WILLOW ROAD/SAND HILL CORRIDOR City of Menlo Park ITEM all, MAINTENANCE SHOP AND STOREROOM A 77117 . Staff recommends that Council: WATER QUALITY CONTROL 1. Award a contract in the amount of $726,620 to GCM Associates, San Jose, California, for the construction of the Water Quali- ty Control Maintenance and Warehouse facili'i; and e. Authorize staff to execute additional change orders to the contract, if required, not to exceed 1f) percent of the Origi- nal contract amount. AWARD OF CONTRACT GCM Associates ITEM ti5, uRu It A tCe RL GREER PARK RE.STROOMS e'a u i n y i rriki< 2- AND LIGHTING (2nd ORU INANCE 3535 entitled *ORDINANCE OF THE COUNCIL OF vi'n iT rALO ALTO APPROVING AND ADOPTING PLANS FOR A RESTRUOM AND SECURITY LIGHTS IN A PORTION OF JOHN LUCAS GREER PARK" (1st Reading 5/7/84, PASSED 9-0) MOTION PASSED unanimously. AGENDA CHANGES, AUDITIONS AND DELETIONS Vice Mayor Levy added Item #22, Request of Youth Council to be in- volved in Abuse. Prevention Program. Counci member Bechtel added Item #23, Urgency Item re SI3 1359. ITEM #1m , : PUBLIC HEARING: CQMMEKC IAL AND APARTMENT CONSERVATION Conservation Program Coordinator, Cara Lee Mahany-Braithwait, said the Commercial and Apartment Conservation Services Plan was feder- al law and required utilities across the country to supply ser- vices such as energy audits and technical assistance to small com- mercial and multi -family residents. Palo Alto had participated in the program , and offered those services to its residents for the past year and one-half. It extended the City's Residential Con- servation Services Proyraii to new customers, and in terms of small commercial, it planned to get more than required by federal law. Palo Alto was a n0nregul ated utility and could choose whether it wanted to develop its own plan or go with the State plan. Palo 4 5 4 9 5/21/84 Hl to and most other municipal utilities decided to prepare its own plans because more flexibility could be developed. Staff expected the United States Department of Energy to approve the plan with minor changes, if any. Significant required changes would return to Council for review of the revised plan. Councilmember Fletcher asked if there was any chance to include nonprofit groups. She was thinking about the Palo Alto Clinic and condoi i ni um complexes which were not rentals but incentives were needed, and other similar organizations which might not fit into the categories described. Ms. Mahany-Uraithwait said the condominium complexes did not nec- essarily qualify unoer the plan, but services were offered at the Mid -Peninsula Health Service and Palo Alta Clinic. Staff was working with the Palo Alto Housing Corporation and offered ser- vices for a number of years, and would work with any condominiums that went through the program. It worked with many condominium associations and assisted with installation of many of the devices recommended Mayor Klein declared the public hearing open, and receiving no requests to speak, he declared the public hearing closed. MOTION: Councilmearber Sutorius moved, seconded by Bechtel, approval of the staff recommendations to submit the results of the hearing and any modifications to the Commercial and Apartment Conservation Service Program to the United States Department of Energy. MOTION PASSED unanimously. ITtM #17, PUBLIC HEARING: PLANNING COMMISSION RECOMMENDATION RE ` r• J UA 4 h . S ANA D r: R LA 3-10 Planning Commissioner Pat Cullen said the majority of the Commis- sion was concerned that the zone was Planned Commun ty (PC), and since it had discretion within the PC zone, it believed no public interest was served by the expansion, and the majority voted ayalnst the application. ` Vice Mayor Levy said one item discussed was restriping for addle tioval parking versus paved landscaped area, and the applicant stated his preference for restriping. He asked for staff's feel- ing about restriping versus paved landscaped area. Zoning Administrator Bob brown said the applicant suggested his preference to create new parking in a landscaped area, and staff recommended the restri pi ny. If the Council conceptually approved the proposal, it would go back to the Architectural Review Board (ARB) for discussion. Alan Becker, General Partner of Stanford ,3arn, 700 Welch Road, said the previous application was made by James Bell, the Stanford darn architect because it was believed the only issue was where to locate parking. He attended the Planning Commission hearing, but because the pub -11C hearing was closed, he was unable to address the issues. The. Barn had operated for about 10 years, and he believed it - way developed -i n the public interest. It was an important historical building and was restored. t revieusly _lost space was converted to offices, it was painted and planted in an ongoing program for the past 10 years to upgrade _and improve the property. At a cost of $328,-000, the heating and air conditioning system wa$ replaced. The equipment was located -on the third floor In the . center of the building. The plan was to convert the mechanical room into office space. Stanford University Facilities Department occupied space, to. the north of the mechanical room oand some space on the second i-l.cdr. The plan was to develop -the new 4 5 5 0 5/21/84 space as office aiid Stanford would move from the second floor to the third, which would put its entire department on one floor. It would provide needed lounge space, a conference room,_ and connect the offices to the south with those to the north. He believed 11 additional people in the barn would have no impact, and research indicated that 1,5UU people occupied the area along Welch Road and the impact of 11 people would be too small to measure. In addi- tion to the b,s[d,uuci spent to fix the equipment, an ,additional blb,uuu was spent to reprove the old equipment. He believed it was reasonable to recover some moneys by converting existing addition- al space in the Barn. Council previously approved a 1,500 square;' foot addition which was never constructed, and the 2,100 square foot conversion was minimal, had no impact on the barn, was in the public interest, and would help continue the work already done. uouglas Ross, 425() El Camino Real, worked on the restoration of the Stanford barn, and said the minor modifications to the facili- ty were more than offset by the enhancement to the building and the restoration itself. Council was concerned that various seis- mic aspects were lessened and could be more fully completed through restoration ifcouncil approved the application. Bruce Kicks, 130u Oak Creek Road, partner in the leasehold owner- ship of the Stanford barn, sympathized as a tenant in an office building in downtown Palo Alto and as an owner of office buildings in Palo Alto, with. the interest of both the Planning Commission and City Council regarding jobs versus housing, and the desire to retard office growth in Palo Alto. The Stanford Barn applied for additional space in an already° existing building not in downtown Palo alto and in an area which already had adequate parking. since 1975, it terminated the leases of tenants it believed an un- desirable addition to the community in an attempt to find the proper tenant mix. He was aware of the Council desire to protect retail tenants, and believed the application was consistent with those objectives in that it continually maintained retail tenants on the first floor. Recently, the barber was moved from the second floor to the first to be more accessible. They had numer- ous opportunities to rent to office tenants and turned them down in keeping with the appropriate public use of the building. In order to do that, one must get some rent from other tenants, and they experimented with tenants on the second and third floor who were in retail. The restoration of the third floor began in about "1977 with the approval of the Planning Commission and City Coun- cil, and included taking safety barricades from the north and south ends of the building and recessing bronze glass in order to create the appearance of 1880 when Leland Stanford had it built. They wanted to conti.n►ue the restoration by recessing glass where huge air conditioning ducts were located. The application was consistent with the private sector rehabilitation of existing his- toric buildings in Palo Alto. They terminated the lease of Mrs. Field's Chocolate Chip Cookies because employees drilled a hole in Leland's brick for a vent through the brick wall. He encouraged the Council to look at 'the smallness of the additional square footage and the whole process of restoring the building. Margaret Straka, 877 Moana Court, said for over four years, Messrs. Ricks and Becker donated -Office space at Stanford Barn to Scholar Opera, California Coast Opera for a box office.. She believed the owners, loved the building and were exceptional land - 1 ords. They cared about the community and the arts, and were gen- erous from a public interest point of view. She was on the second floor,: and the adds ti on'- p-pearedi to be an obvious continuation of oeveloping the -building in a special way. Mayor Klein declared the public hearing closed. 5 5 1 5/21/84 i40T ItA : Cuunc i 1®ember Wool 1 ey moved, seconded by Witherspoon, approval of the staff recommendation to approve in concept the application for modification of PC 1992 to complete 2,131 square feet of interior space at 700 Welch Road and refer the application to the Architectural Review Board and then the Planning Commission for design review, with the following conditions: 1. That a maximum. of 251 parking spaces be provided through restriping of the existing parking area for compact spaces; and 2. That construction begin within six months of the City Council approval and be completed within three months of the issuance of a building permit. Councilrnemoer Woolley believed tie public benefit was served by the project. The additional space would allow the continued restoration of a significant historic structure. The structure was listed on the County Inventory of Historic Places and although worthy, she did not believe it ever applied to the national Register. Part of the reason to continue restoration was to bring it up to seisiTic code, and she supported the application. Councilmember Fletcher said 11 new employees were estimated, and staff figured that only six would • use their cars during peak evening commute hours. ` Mr. Brown said the figure was based on standard traffic generation figures for the square footage proposed. Coen .. i imernber Fletcher said she agreed with the staff recommenda- tion that the small increase in employees was insignificant. Although she had strong reservations about increased office space in the City, the particular case was not excessive and would not be detrimental to the public interest. She asked for clarifica- tion that the two conditions in the staff report were included in the motion. k:vuncilme;nber Woolley said yes. Councilmernber Menzel said when the PC was adopted, it permitted much more intensive uses than the zone itself would nave per- mitted. even triough the additional office space was small, she believed every unnecessary addition added incrementally to an already almost insurmountable problem in the community. ,She would not support the motion. Vice Mayor Levy agreed with the speakerswho commented on the sen- sitivity of adding jobs to the community although he..recognized the nurnoer to be added by the proposed application was small. If the City encouraged historical preservation in the community, the Council must be sensitive to economics. Particuarly in the case of the Stanford Barn, he suspected preservation was a costly and difficult task especially since a barn was not conducive to modern commerce. The additional square footage was not _large, and every bit of ;isabia space vas -important. He believed Council should be sensitive to that, .end because the number of added jobs was minute particularly when looking at the shopping center, hospital areas and downtown, he would support the motion. Counci lmember Witherspoon concurred with the remarks- of Council - members Woolley -and Levy. The proposed application wa,s- a creative adaptive reuse of an old structure and she wanted i t encouraged. l:i denying the project, she believed the Planning Comiiri ssion - ne ticipated the -Council`s reaction to the proposed housing element which was discussed last week where Council said it would be selecy:ive In any office space it approved. She -believed the proposed action was a i appropriate -case in point. 4 5 5 2 5/21/84 Councilmember Suto ius said that afterrRon about 2:uu p.m., there were aoout s9 vacant parking spa es in the areas accessed from quarry Road and about 53 vacant spaces in the areas accessed by Welch Road. In supporting. the motion, he concurred with the re- marks of his colleagues and associated himself with the remarks of Commissioners Northway and Hirsch of the Planning Commission. MOTION PASSEU by a vote of 8-1, Renzel voting "no." ITti'i old, PUBLIC HEARING: PLANN IHU COMMISSION RECOMMENDATION RE,. . ""T tit MA A CUMbINIllG; CIST'tIGT 1 -OR PR F RLAi (T1t ELKS' WRVfl'LRI T ) Planning Commissioner Pat Cullen said the item was returned to the Planning Commission by the Council as a result of the California Avenue Study. with the request for additional study of the site. After ascertaining the history of the site, and testimony of the neighbors and the applicant, the Commission believed the sur- rounding it -1- use on two sides and the back of the property was more appropriately preserved by having a land use change to mul— tiple family to be a buffer between it and the CS zone-. It was further recommended that the present use be grandfathered in as a nonconforming use with no expansion allowed. Vice Mayor Levy asked about RM-:3 as a possible residential use. It appeared RM-'a would be more similar to the traffic generation of the present use although still somewhat below., and he asked staff and Commissioner Cullen to comment on the appropriateness of RM-3 or RM-j(T) versus RM 2(t). zoning Administrator Bob Brown said staff's -only reservation in recommending an RM-3 zone -was .the ability to develop up to 19 units with a two. story height limitation given the other requi re- -ments of setbacks and site coverage limitations. Staff believed the units would have to be extremely small • to fit within a two- story height limit, and suggested that. RM-2 would be a better designation. Counci lmerrrber Witherspoon said the 25 foot setback was referred to toe Planning Commission for consideration, and she asked for com- ment. i,rr. brown said the setback map was reviewed periodically although ne did not believe it focused specifically on the subject prop- erty. Councili tuber Witherspoon clarified that the recommendation was not associated with any assignment to the Pl ahni ng Commission on setbacks: t..hi er Planning Official Bruce Freeland said it was a separate mat- ter from the previous referral Counci1i ember Witherspoon clarified that no matter what RM zone the Council acted on, staff recommended the setback be dropped for the particular property. Mr Freeland said that was correct. Mayor Klein declared the public hearing open. Eric Richert, 535 Ramona Street, No. 27, said i n a letter to the City Council, which was on file in the City Clerk's office, Mr. Weeks expressed anger and frustration with the City's efforts to rezone the : Weeks' estate property on El Camino Real to a residen- tial zone. The City's actions threatened to disfranchise the 4 5 5 3 5/21/84 Estate and its trustee. When a governing body and its advisory committee and start did not acknowledge a citizen's voice, or fairly and objectively examine facts, placed the desires of some over the rights of others, refused to acknowledge a person's at- tempt to satisfy the others desires while still protecting his or her own riyht, that person -was essentially disfranchised and rele- gated to the political arena. Over the past month durins which the, zoning of the property was an issue, information was presented when the City proposed a zoning which encouraged a more intense use for the property to support continued professional me.:ical of- fice use. base() on that information, a means was sought by which professional and medical office use could be preserved and allowed to yrow with reasonable limits on the extent of possible growth while discourayiny uses detrimental to the property and its neigh- bors. For over 30 years, the use of the property was compatible with its surroundings as staff, Planning Commissioners and neigh- bors repeatedly and publicly stated. Its use was compatible be- cause of its configuration, best points of access and egress, 'and the need to respect neighbor's privacy. In terms of environmental realities, noise and safety levels were unacceptable for residen- tial use out satisfactory for office space. In terms of econom- ics, potential users of the property who were not new to the area and did not aggravate the jobs -housing issue needed locations con- venient to the public it served and the medical center on which it oepended. It was clear throughout the California Avenue Study and during the present examination of the property's zoning that the existiny category of use was not a point of contention. Other possible uses in the_ same zoning district were an issue as was the extent of potential development, but not the present use: To change zoning to make the acceptable use nonconforming did not make sense.. Over the past few months, the applicant sought a, means to guarantee the use with a reasonable limit on potential development and at the same time screen out the elements of CS zoning that were not appropriate to the site. Attempts to mold or modi fy existing zoni ny regulations to reflect the needs of the site were met with the response that the City did not have the flexibility to pursue the approach. After exhausting the ap- proach, a design was submitted berieved to be acceptable to most people and which could be grandfathered in concurrent with the change of zone, but it was tabled with the recent moratorium. He believed Council action should be based on one of the approaches. A zoning district similar to the old R -3(P) would be appropriate to the site, and such a district would fill -an existing gap in the zoning ordinance and oe applied to similarly situated transitional properties. Alternatively, a rezoning to an existing zoning dis- trict and allowing the submitted design to continue- through the review process would be appropriate. ►mat approach would guaran- tee the following if the Weeks propery was ever redeveloped: (a) The redevelopment would contribute to a decline in floor area and- trips generated when compared to the data of the California Avenue Study; b,) The property would continue to accommodate an economically viable use which .was basic to. its ability to continue cbn- tributiny economically and aesthetically to the City; (c) Future owners of the property would have a realistic a.i terna- tive to maintaining a building that was nearly 50 years old; (d) The privacy of the Wood -Smith property would be preserved. The submitteo design had no windows oriented to that property and Occupants of the building could not visually, intrude on ;. that property; A landscape puffer would be developed between the -parking and. the Pouf ter property so that instead of. the present s en foot separation between parking and house, a 21 -foot la6O scape separation would exist; 4 5 5 4 5/21/84 (r) A building of appropriate height could be built. Ihe height of the building submitted exceeded the height of the exist- ing buildiny by only four feet; and (y) The floor area developed would be limited to a fraction of tnat stated in the staff report; one-third of the CS total and two-thirds of the CN total. he believed either of those approaches could result in a solution satisfactory to most people. To date, materials., presented by others provided little sound evidence or logic for 'a residential zone. He looked forward to action and discussion which acknow- ledged the material provided. if a residential zone was deemed appropriate in the end, Council would be responsible to clearly outline the criteria by which the decision was reached, and only then would credibility be lent to the legislative action. aeff nook, sue College Avenue, said he was -interested in limiting the intensity of -use on any parcel. He was happy that the Man- nino an- nino Cemmissioo reeommeeeed yrandfathering in of the existing use with the stipulation that the area not be • expanded, and he recalled the property ovner' s proposal was to expand the site. He thooPub-of intensification in two parts --an intensification of resource use; and an intensification of the jobs -housing imbal- ance. The•City needed to halt both intensifications, and -he urged the Council to decrease the intensities. Ron Hall, 158 Park Avenue, was a resident of Evergreen Park, and wanted rri s residential nei yhburnood to remain as such. The non- residential Uses greatly impacted physicial confinement, and the effect of a major commercial building on the corner of Park Boule- vard and El Camino would have a detrimental effect on the neioh- oorhood. The site was surrounded by one- story, single :family homes on all sides, the area across El Camino was undeveloped Stanford property, and the closest commercial property was the presently vacant Grecian Health Spa. The property was purchased by the reeks` estate in 1976 under a residential zoning and later was converted to a commercial zoning. It was purchased with a speculation of residential, and it was inappropriate to go further than residential zoning. The issue arose with a request for a decrease in the variance from the 25 foot setback to a five, eight, or ten footi setback for: the commercial development, and it was appropriate to keep the existing setback. The current owners proposed a number of plans which might be appropriate on some sites, but those plans had no effect on future owners of the prop- erty once sold. A future develop,,r might have another intere:;t, structure and use, and if commercial use was opened, there were many other possibilities besides professional and medical offices. It was important to consider the long-term use of the site, and he believed residential. use was the best long-term use of, the site, and the continued growth of office commercial development in the neighborhood and on the section of El Camino was inappropriate. Anne Ercol ani , 2U4U Ash Street, chaired the Evergreen Park Neigh- borhood Association. The Evergreen Park Neighborhood Association Steering Committee supported the rezoning of the --E: ► - Cami nc., p roper- . ties to residential, sand the Council had the opportunity to rezone property. to prevent more jobs and- possibly provide housing. -The owners. intended to sell the property, and the nature of today ` s economy meant the -existing building and use would be replaced by something more intense. The property was.purchased under a resi- dential zone, although some commercial was al bowed, ,but -had strict setbacks and daylight planes. The properties in the single family residential area in its current characte,r_.we_re essentially resi- dential . Nothing in the current zoni ng ,i axis was comrnen.surate to the R3 -P, and the closest way to 'return .the property to. its pre - v i ous 'zoning would be to rezone resi lenti al but al l bw the ilideflet nice current u -se to continue. The staff study indicated the prop- erty'was.more appropriate for residential than some of the City's. existing residential areas, such as Alma. Since it was .adjacent 4 5 _5 5 5/21/84 to all single family residences, it appeared that RM=-2 was more appropriate because of the intensity of use. The RM-2(T) with a grandfather clause would allow the opportunity to continue the present unobjectionable use, protect the surrounding R-1 zone for the short and long-term, provide a zone closest to the expectation of the owners when first purchased, and limit any change in use consistent with the Comprehensive Plan objectives to provide more housing and reduce employment growth. She urged the Council to adopt the proposed ordinance as stated. Audrey Poulter, 1Ti1 Park b'oulevard, was pleased staff and the Planning Commission recommended zoni n.) of the Weeks property be changed to RM-2(T) . For 16 years, she lived adjacent to 1681 E1 Camino on P -ark Boulevard, and the surrounding houses in Southgate and Lvr rgreen Park were all zoned R-1. The property had a resi- dential look with large setbacks and a steep daylight plane. Prior to 1978, the property was zoned R3 -P, and since the property was for sale, its fate was unknown. There were a few problems with the parking lot about eight feet from her bedroom window, which would be compounded by a more extensive use, but its current use was unobjectionable. A CN or CS zoning would not require landscaping on the perimeter of the .land, and if the property was sgrandfathered, she- requested a noise buffer between the parking lot and her three bedrooms. She urged that Council rezone the property RH-2(T), and grandfather the existing use. She said the reduced traffic on Park Boulevard made the area nicer, quieter and a safer place to live. Lois Johnson, 23v Sequoia Avenue, urged City Council support of the Planning Commission recommendation to keep the property resi- dential, as it was when purchased, and the neighborhood from com- mercial intrusion. Beverly Wood -Smith, 212 Sequoia Avenue, said she lived directly behind the property at the corner of El Camino and Park Boulevard for J4 years, and it adjoifeed her home by approximately 130 feet. When she first shoved in 1950, one of the structures on it.e subject property was a residence. The people who lived there ran a school for blind children in the larger building, and since then, various businesses leased the two buildings which gave the appearance of residences. Because of the nature of activities conducted, they were fortunate to have had those tenants as neighbors throughout the years. Along with the store on the corner of El Camino and Churchill, the buildings were compatible with the surrounding neighborhoods. A CH zone would allow a large office building, which belonged in the business district, not on property surround- ed by four residential homes within two residential districts. It was inappropriate in that unique location and would have an ad- lerce effect on tho e who lived nearby. At the corner of Churchill and Mariposa, a commercial parcel with a garage was recently advertised for sate as residential property. It was smaller than the subject property and closely aligned, to the heavy traffic on ,Churchill Avenue and the busy railroad tracks with noisy signals-. She believed the same zoning should apply to the Weeks' property -which was as much a part of Southgate as the other corner. A CN zone would create more problems With noise and traf-G i c for the neighborhood, and an expansion of the corner buildings woul d add to a - problem not yet solved. In terms of the quality of life for the residents on the cornet, a residential zone would provide an ample setback 1.n front to keep an attractive face on El t.aafi no - Real as well as provide a buffer for the residents,- and it offered a better location for housing than the corner of Churchill and Mariposa. The argument against a residential zone was -its close proximity to El Camino Real,• which was invalid considering the other -houses along El Camino between Park Boulevard and C hur„::. } 11. and the ones along Alma Street which were also heavily traveled. According to the Planning Department report, Alma Street's not se level was higher than El Camino Real. Further, rezoning of the property from CR . to rest denti al would comply with -'a number of Comprehensive" Plan,poii-cies including: 4 5 5 6 5/21/8.4 1. Preserve the general density = = 9 y low {#cr'is�i. character Tanili areas; Z. Protect and enhance those qualities which made Palo Alto's neighborhoods especially desirable; and 3. Reduce employment potential. Prior to 1971, the property was zoned R -3(P) and had residential development regulations which included large setbacks and a steep daylight plane. Offices were one of few permitted commercial uses, and the result was the current unobjectionable use of the property. The Weeks family acquired the property in 1976 when the R -3(P) zone applied, and it was not purchased in reliance of ex- tensive commercial potential. If the property was rezoned to res- idential with a grandfather clause for the existing use, any loss on the initial investment would be minimal. Since Mr. Weeks did not plan to develop the property, and it was for sale, there was no - -Guarantee about what a new owner would do. The residential zone R-Z(T) with a grandfather clause for the existing use was the best chance to (a) continue the present, unobjectionable use; (b) protect the surrounding R-1 zoned neighborhoods both on the short and long -tern; (c) provide a zone closest to the expecta- tions of the current owner when the property was acquired; and (d) limit any change in the use -of the property to uses consistent with the City's goals. She spoke for about 60 households in Southgate and Evergreen Park whose names and addresses were sub- mitted to the Council on a previous petition, which was on file the City to Clerk's er�k' s office. s ;�_ ���.. .. , �,� ;�.�. .,� � ice. A more dense project would bring more traffic than an RM-2(T) zone would allow, which would be a detri- ment to both neighborhoods. She urged the Council to change the property hack to residential, which it was until 1978, in order for it to remain compatible with the neighborhoods and an asset to the community. long Luo, 214 Sequoia Avenue, said the corner of his yard was about 15 feet from the Weeks property. He supported the RM-2(T) zone, and urged the City Council to do the same. narrison Otis, 909 N. California Avenue, said the neighborhood was unique, and should not be commercialized. He hoped the Council woule support the Planning Commission recommendation. mayor Klein declared the public hearing closed. MOTION: Councilmeaaber Bechtel moved, seconded by Renzel, to adopt the -planning Commission recommendations for approval of the application of the City of Palo Alto . for a Comprehensive Plan Land Use Map Amendment from Service Commercial to Multiple Family Resi- dential and a Zone Change from Service Commercial to the RM-2 Mul 1plc i Sully Zoning District with the (T) Combining District for the property located at 1681-1691 El Camino Real, and modifi- cation of . the RM-•2 grandfather clause to permit continued use of the existing professional offices. Further, direct staff to pre- pare an ordinance rescinding the 25 foot special setback for con- sideration by the Council. RESOLUT ILK+ _6260 entitled "RESOLUTION OF THE COUNCIL OF i E'r ALTO RECOMMENDING AMENDMENT TO THE PALO ALTO COMPREHENSIVE PLAN BY AMENDING THE LAND USE DESIGNATION OF THE PROPERTY AT 1681-1691 EL CAMIINO REAL FROM SERVICE COMMERCIAL TO MULTIPLE FAMILY RESIDENTIAL" ORDINANCE FOR FIRST READING entitled "ORDINANCE OF THE AL0 ALTO AMENDING SECTION 18.08.040 OF THE PALO ALTO MUNICIPAL CODE (THE ZONING MAP) TO CHANGE THE ZONE CLASSIFICATION or THE PROPERTY KNOWN ,AS 1681-1691 EL ZAH INO REAL FROM CM TO RM-2 (T )" 4 5 5 7 5/21/64 MOTION Cuff T INULu ORDINANCE FUR FIRST READING entitled "OP , INANCE OF THE =ult. ur TIM [.i T T ur 1410 ALTO AMENDING THE ZONING ORDINANCE REGARDING PROFESSIONAL AND .MEDICAL OFFICES IN RM-2 ZONES" Councilmember Cobb said the Council tortured itself for excuses to change commercial zones to residential because of the jobs/housing imbalance for years, and given the surrounding rest jenti ai prop- erties and the nature of the neighborhood, he never saw a better example of an area that should be zoned residential. He was amazed it was not rezoned earlier. With the Health Spa standing empty and being a nonresidential structure, he believed the rezon- ing was a first step toward cleaning up the area. He supported the motion. Councilmember Renzel said the parcel was the gateway to a residen- tial neighborhood and was tolerated in a nonresidential use be- cause it so closely proxirnated a. residential use. It was reason- able to permit the use to be grandfathered, but for the protection of the neighborhood and good land use planning, it was important to rezone. Councilmember Woolley agreed with Counci 1 members Cobb and Renzel. Council was not being unduly hard on the property owner --the zon- ing at the time of purchase allowed less . area to be covered, but it allowed a medical professional use. The CN and CS zoning would allow more development, but it was not the zoning at the time of purchase. She supported the motion. 1 ounc i lrrrember Sutorius asked how many units might be constructed under the R -3(P) . Mr. Brown said R -3(P) allowed 20 units, whereas RM-2 allowed 14. Councilmember Sutorius opposed rezoning to CN because of its im- positions on the re.%`rent_ial .- lfeigeborhooe t t9�, ,, .�c�i! t present use, and what_ might occu it remai .ed _-A sg i i'i cant 'portion of the property abutting the Poulter property would have a six foot side yard setback, and for the Wood -Smith proper- ty-, a portion of that setback would be six feet so the proximity of intruding facilities was not avoided. Compared to the capacity of the old R -3(P) zone and what RM-3 zoning would produce at the site, he believed RM-3 was more appropriate. He understood the motion was for RM-2(T) zoning. AMENDMENT; Councilmember Sutorius moved, seconded by Levy, to rezone the property at 1681-1691 El Camino Real RM-3 (T) . Councilmember Witherspoon asked how the amendment would help the setuack problem. Councilmember Sutorius said the setbacks were unaltered because they were the same • ;under RM-Z or RM 3. Regarding site develop- ment, the open space requirement on an average for each unit built would be 45U square feet of usable open space The (T) protection was the same under either zone so the differences would be 40 per- cent allowable site coverage under RM- , more residential units could be constructed, and the potential number of units would be less than tyre potential number of units under the R -3(P) , which was the zoning at the time the property was purchased. From a design standpoint, it would impose some careful considerations. but either way, the number of units would require Architectural Review Board (ARB) design review and approval. Chief Planning Official Bruce Freeland said ARB approval would be required, but with the RH 3, there was more likelihood the design would be pushed to the limits of site coverage at the 40 percent 4 5 5 8 5/21/84 level in order to .get all Lhe units in. The side yard setbacks were the same, Dui the chances of the design being at the limit were greater under RM-3 than RM-2. Councilmember Sutorius said the opportunity for more units in- creased the economics of underground parking which might make for a better situation than housing where parking and vehicular traf- fic intruded on adjacent neighborhoods. He recommended the RN-J(T) classification, and encouraged its support. Councilmember Fletcher believed the setback constraints of a (T) designation, with its restrictions in terms of proximity to an adjoining single family residential made for a crowded project with not much design flexibility, to be more attractive and open. If Council passed the amendment, the ARLI would be constrained to turn down a development with more units than it believed appropri- ate for a particular 5ite.i. She believed there would be a more at-= tract? ne development if the -zoning was left RM-2(T) as recommended by the Pl anni ny Commission. Vice Mayor Levy supported the larger number of units on the site because he believed Council should attempt to secure more housing units where possible. As mentioned by Councilmember Sutorius, the opportunity to put more units on the site made it more eco- nomical for underground parking which might add more flexibility to the way the site was developed. The number of trips to and from the site under RM-3 would still be much less than the number of trips now being made, and there did not appear to be a problem with the current number of trips. The site was not conducive to families with children, and whether zoned RM-2 or RM-3 it was un- likely to De developed as such. There would be considerable traf- fic on the site, which issue was sensitive in the area. It was an appropriate place for residential, and it was appropriate to add an extra five units of needed housing. Mayor Klein asked for clarification about the recommendation for RN -2 zoning. Kr. Freeland said the RM-2(T) allowed units of 1200 to 1300 square feet to fit within the two floor limitation. With the RM-3(T), the average unit size would be less than 900 square feet in order to yet in all the units and the two floor limitation. The rela- tionship between the number of units and building envelope was more comfortable with the RM-2 than with the RM-3. Under RM-3, the project would be forced to the limits of the building envelope and the units would be small. Staff had no objections in terms of traffic. eounci lrnernber Renzel associated herself with the comments of Coun- cilmember Fletcher. design sensitivity was important and Mr. Freeland outlined the difficulties with a compatible design by in- creased density. She opposed the amendment. AMENDMENT FAILED by a vote of 2-7, Levy, Sutorius voting "°aye.* Mayor Klein supported the main motion. He disagreed with the ap- plicant that the site was inappropriate for housing. While there were problems with housing on the site, as there were with every existing site in Palo Alto, housing on many sites had more prob- lems. The site was situated at the entry to a residential neigh- borhood, and had many advantages. He would be pleased to ul ti - mate iy see housing built on the site and needed units added to the housi nb supply. . gayer Klein said the motion grandfrthered in the existing use of the property by amending ` _the existing ordinance with regard to lgrar3dfather.ing_in the professional and medical zoned areas. MOTION PASSED unanimously, 4 5 5 9 5/21/84 kLutSS To LLUSI:u SLSSICN RE i IT I[;AT IUN FROM 9:20 .m. TO 9`:50 KaPURT RE SETTLEMENT AGREEMENT AND MASTER WATER SALES CONTRACT - .m. Mayor Klein said the City Council met in Executive Session to con- sider and approve a Settlement Agreement and Master Water Sales Contract Between the City and County of San Francisco, the City of Palo Alto and other suburban Hetch Hetchy water purchasers in San Mateo, Santa Clara, and Alameda Counties. The Settlement Agree- ment would conclude ten years of litigation in the case of City_of Palo Alto et al. v. City and Count of San Francisco, a di spine ITMTVItiT—T'A'Prre nre7.n a on ra ..es etween San Francisco ratepayers and ratepayers outside the City, as well as other San Francisco rate -setting _policies and practices. The set- tlement represents a major step forward toward providing an objec- tive allocation of water costs between San Francisco and its sub urban customers and insulating wholesale water rates from extran- eous considerations, San Francisco Water Department (SFWD) costs have been identified and their allocation has been tied to impar- tial standards and formulas. The Settlement Agreement and Master Water Sales Contract, together with the City of Palo Alto's individual Water Supply Contract, provide a. framework that will not only resolve many of the past differences between San Francisco and suburban purchasers of Hetch Hetchy Water, but will also adequately provide for Palo Alt''s water needs for the next 25 years at_a reasonable price and will hopefully initiate an era of cooperation to permit Hetch Hetchy supplied cities to provide even a longer term water supply. ITEM #19, PUt3LIC UEARI : APPLICATION OF STANFORD UNIVERSITY uirector of Planning and Community Environment Ken Schreiber in- troduced the consultants Linda Peirce, Urban Planner; and George_ Nicholson, Traffic Engineer from Environmental Impact Planning Corporation. For the record, the environmental review went through the State Clearing House as the responsible agency under the California Environmental Quality Act (CEQA), who would issue the but 1 di ng permits for the physical expansion of the hospital. The State reported back that it had no comments on the environmen- tal review. Planning Commissioner Pat Cullen said the Commission was impressed by the Hospital's planning -and did not question that it was an outstanding medical facility and a valuable community resource. The Commission reviewed the environmental impact report (EIR) for the approvals beige sought, and had some misgivings about the ade- quacy of the EIR for the entire land use changes, but had no con • - cern about the hospital expansion itself. The Commission believed the Willow Road EIR t, anspori;at:i on. section did not adequately ad- uress the reuse of the Children's Hospital site, and presumed re- use development at ins present level. There should have been some estimated alternative possi bpi l'i ti es, and the University Avenue development projection €nr la.ntd use development was underestima- ted. Although i t did not Qi rectl y impact the Stanford Hospital Modernization Plan (HiP), it impacted the adequacy -of the Willow Road EIR, which did not address the loss of the housing designa- tion and had no alternate .provision on the heliport site-. ..The Commission believed it had insufficient information to:approve th.e meeger,,and requested the application be continued until addition- al information could be .obtained, but the applicant preferred to move it on to the Council, Regarding the "Master Parking Plan, it was recommended_ that the Zoning Administrator conditlon the use. permit so that the designated parking spaces,` lots, -and structure which were part.. of the Master Parking Plan be reserved only for Oedical center parking, which staging scenario was found on. pages A -9U to A-91. 4 5 6 U 5/21/84 Counci lriieriloer Renzel said there was considerable discussion about whether the Children's Hospital planned to move to the heliport site, and she believed the purpose of moving Children's Hospital closer to the main hospital was to make it contiguous and not re- quire ambulance movement of patients. Being across Blake Wilbur urive would require movement by vehicle. Mr. Schreiber said staff understood from numerous, conversations with representatives of the Stanford and Children's Hospital that a specific location and design was yet undeveloped. From the Hos- pital planning standpoint, it made sense to have a new Children's Hospital connected with the existing facility, which meant the structure would probably be located close to or in the area of Blake Wilbur urive. The road was private, and if proposed for re- location, it would' be part of a use permit application to the City with the Children's Hospital proposal . Staff was presently doing nothing to approve a relocation of Children's Hospital or change Blake Wilbur beive. Councilmember Renzel said some of the requested actions removed certain discretionary actions of the Council with respect to those parcels in the future. She did not understand how Stanford would avoid transfer of the eatients by car if it used the heliport site for the hospital. Mr. Schreiber deferred to the applicant for response during the nearing. Counci lmember ttenzel asked if any of the traffic on Blake Wilbur urive was considered to be routed elsewhere in the event of any change to its configuration. rir. Schreiber said no, because there were no approvals in front of the City to change Blake Wilbur from its current function as an internal loop road serving the hospital parking lot. Counci 1 rsiember Renzel said the employment figures and the lack of need for any housing mitigation was based on 663 beds being ap- proved for the hospital after the modernization project, and she asked if that was correct. Mr. Schreiner said yes. The use permit would be based on the fig- ures contained in the application, and not on a higher bed count. Councilmeniber Cobb asked about the impact on Stanford of following the Planning Commission recommendation in terms of planning for the future, parking, heliport site, Children's Hospital, etc. Vice Mayor Levy asked about the practical differences in terms of City control of the Children's Hospital development.if Council ap- piroved the subdi'i si on is opposed to withholding approval. Mr. Schreiber said if the subdivision was denied, it would be di f- ficvlt to physically relocate the hospital-. If planning for the potential relocation of Children's Hospital continued with the suodi vi si on being denied, any approval would take not only a use permit, but a later subdivision action. The use permit and a sub- division could be denied by the City for good reasons, In terms of the review process, the difference was that the use permit would yo to the Joni ny Ad `i ni strator, and the subdivision -would aut0Matically goe to the Planning Commission and City Council. Staff was on record in the second Planning Commission review of the hospital project that it would review Chi l dren` s Hospital to the Commission and City Counci 1 , . and the applicant indicated a willingness to voluntarily do so. Under City procedures, there was no present mechanism to require Children`s Hospital to go -be - lore the Commission and CoUnci1. 4 5 6 L 5/21/84 1 1 Vice May(r LvVy said in one event, Council dealt with a subdivi- sion, and in the other, it dealt with a use permit. He asked if the Council's powers to approve or disapprove the various elements of a Children's "ospital move were any different in terms of a subdivision as opr.tsed to a use permit. City Attorney Diane Lee said no. The differences were mostly pro- cedural oecau se with a subdivision there was a certain amount of time to act. The various land use approvals under which Council had the authority to approve an underlying project and the types of conditions to be imposed might be more extensive under the City's conditional use permit ordinance than under the Subdivision Map Act because it was more limited in terms of conditions that might be imposed. Mr. Schreiber clarified that the findings in the Palo Alto Munici- pal Code for a use permit included that "the proposed use would not be detrimental or injurious to property or improvements in the vicinity, would not be detrimental to public health, safety, gen- eral welfare, or convenience, and the proposed use would be located and conducted in a manner in accordance with the Compre- hensive Plan and the purposes of the zoning code." He said there was a broad range ref findings which were similar to the findings of a plan change or subdivision. Councilmember Fletcher said she saw no reference to the noise created by the heliport in the envirnorental noise assessment, which might be a deficiency in the analysis. Ms.. Peirce said the Heliport already existed, and there was no plan for changes in the number of flights or helicopters. By put- ting the heliport on the roof, it was further away from nonhospit- al related uses, Councilmember Fletcher asked for clarification that the impact on the patients in the hospital was not a part of the EIA. Mr. Schreiber said ny getting the heliport on the roof, there was decreased noise impacts because it was above the roof line of the building rather than down lower where the noise had a greater chance of echoi ny ,:among the hospital and adjacent buildings. Councilmember Fletcher said she agreed it might .be valid, but be- lieved it would have been useful to include it in the document. Counci l Member , Renael said the table on- ,,page 35 spoke to the fail l time equivalent employment positions and the total numberof em- ployees by year. Stanford concluded that it would continue to decrease its employment and have less after the Stanford HMP. Fourteen years ago, there was about an 85 percent occupancy rate, and now there was ..a 70 percent occupancy rate with other hospitals in the area being even lower. She . asked to what extent the em- ployment figures were a function of the occupancy rate, and what might happen to employment if the occupancy rate went up to 95 percent. Mr. Schreiber said the question needed tobe addressed by the ap- plicant. The Planning Commission discussed the matter and the ap- plicant indicated the decrease in employment was separate from the .decline, in bed count over theOast couple of years. the argument was a difficult one for staff ..to come" to grips with, and as noted in the E 1R, the environmental review wasnot pursued based on the assumption thatemployment growth stopped. The employment growth projected in the E 1R was much higher than the applicant's proiec-. tion because staff had to go with soave, type . of reasonable worse case, which would be an increase in employment. . Councilmember kennel asked if the projected employment was suffi- ciently -Conservative to consider the poss-i Ul 1 i ty that the employ- ment growth was related to the occupancy rate. 4 5 6 2 5/21/84 fr. .Schreiber believed it was because of the increases included tor the medical center itself; and staff assumed the 150 employees moved out of Hoover w.uld_be replaced. The reuse of Hoover should not result in anywhere near the number of employees because in many cases they would take existing space and expand some of ` the rooms and facilities which would not inherently result in addi- tional employment. A couple of built in factors provided staff with considerable comfort. Councilmernber Renzel asked for clarification that Mr. Schreiber spoke of the reuse of Hoover while it was still used for the 100 beds that would remain there. Mr. Schreiber reiterated that the movement of the remaining 90 beds at Hoover was not part of the project. Neither the applicant nor staff came to grips on the ultimate reuse of Hoover because there were no plans. Mayor Klein declared the -public hearing open. stanford,. University Hospital President, Or. Lawrence Crowley, strongly supporters the six actions recommended by the City staff on page Z of the staff report (CMR:280:4), dated --May 17, 1984, in support of the Stanford HMP. The modernization of Stanford university Hospital was designed to: -be a long-term benefit to the citizens of Palo Alto and the surrounding area. The concept was approved by the City Council over a year ago during the Certi fie cate of Need process. its planning and design were periodically reviewed by City staff and received all necessary approvals up to the present stage of the project. Stanford requested that Council accept its recommendation to combine the Welch Road parcel and the heliport parcel with the present hospital parcel to make a single parcel for overall hospital use including the new Children's Hos- pital at Stanford, which included rezoning of the two Welch Road sites for hospital use. As Chairman of the Board of Directors of the new Children's Hospital at Stanford, the current HMP could be constructed without the additional two Welch Road sites, but It would be awkward and difficult to proceed with the design of the new Children's Hospital until it was known which site was avail- able. As presently conceived, the new Children's Hospital would not .Tit on the present parcel and satisfy square footage and land use ratios required by the City, but for a sound program and effi- ciency reasons, it must be attached to the HMP and occupy at least a portion of the existing parcel. Stanford agreed to present the new Children's Hospital Project for full environmental impact re- view, use permit, and other City reviews and approvals. The.long- ranee development for hospital activities and facilities, include i ny parking, could only take place in the direction of the present heliport parcel. Councilinember Cobb said there was a staff recommendation on one hand and P anniny Commission recommendation on the other,,,and he asked what Stanford saw as the significance of following the Plan- ning Commission recommendations. Or. Crowley said Stanford could proceed with -the HMP with the Planning i ss i on. recommendation, but it was in the process of attempting, =to design the new. Children's Hospital and was looking at potential sites. A purpose of the project was to Consolidate acute patient care activities in one area, and the new -hospital t, would be tied into the HMP because i would. use -some of the core facilities of Stanford Un.i v.ersi ty Hospital, i.e., operating rooms, etc. It would not fit on the -present present hospital site because of land use square foot ratios, and Stanford would need the addition of some tAnd to accommodate it, but. could _ not ga far with 'thr design process until it was known which -site would. be oval 1 ah1 e Counci l member Witherspoon clarified that "ti ed° i n' to the .moderni- zatian program meant the new Children's Haspi tal building wound he -physically attached if, possible. _ 4 5 .5 3 5/21/04 ur. Crowley said that was correct. Councilmember Witherspoon said she understood the main problem was Stanford needed a larger land parcel to accommodate the modernization project and expanded use of the site by placing Children's Hospital on it. in essence, Stanford requested that the two parcels be annexed to the existing hospital site. Vice Mayor Levy said he and Councilmember Renzel were concerned with the employment forecasts as wes staff and the Planning Commission. Currently, there were approximately 630 active beds with an occupancy level of 7U percent, which meant the occupancy was 441 beds. After the HMP was completed, there would be 663 active beds, with an occupancy level of 80 percent which raised the actual occupancy to 531 beds or an increase of about 20 per- cent, which was the base increase. If the hospital approached the 95 percent level ;es everyone hoped, it would be 45 percent above the current levels for number of beds occupied. Additionally, a lot_of the space being added in the modernization plan was for laboratories, the magnetic residence facility, surgery, rind intensive care, all of which he assumed represented some increases in employ'tent. He heard a general objective to lower employment because it would lower the cost of medical care, but other things were not mentioned. He assumed -the quality of medical care would put pressure ' for more employment, and he asked if there was a specific analysis of how the hospital would be used and how many people would be required to service the patients. He asked for more detail about the future hospital employment other than the general figures. Stanford University Planning uirector- Phil Williams said Dr. Crowley was correct that there was sufficient site area on the basic parcel to construct the HMP, but it was not clear that Stanford could park for HMP on the heliport parcel without it at least being rezoned PF use, which allowed hospital uses. There was some tack of certainty that Stanford could go ahead with the HMP as planned without at least rezoning the heliport parcel. Ur. Crowley said one of Stanford's inefficiency problems was because of its significant care service at Hoover which required a fair number of personnel and a duplication of personnel. The present hospital was . inadequately designed and required a lot of personnel use, which would be corrected with the new design. u i rector of Stanford University Hospital Sheldon King said many factors 'impinged on the way future medical care was delivered and reflected directly `on the hospital's number of employees. The hospital 'currently operated a number of _intensive care units in Units:not designed for that purpose, and with modern intensive ;are units, the nursing unit was situated in the middle and the patients were observed more directly from a central facility, which made it possible to share more nursing. Under the present circumstances, a nurse was required i n every room because there -was Alo other way for the observation to take place. Generally, hospitals s,l mply adding staff was not allowable under present reimbursement systems. The hospital reduced its'abase costs" over the past:two or three year=s and would have done so at the conclu- sion of 1984 by -Close try: I10 Million . Most ewas in .the area of full time equivalent personnel, which were not directly --affected by the enangeH in the Center, and - it was a _decrease in the hos-- pit 1 `s number of fully employed `personnel... - He. doubted that a 95 percent occupancy rate would be seen anywhere in the future unless huspi tai s marrkedly reauCed the . number . of beds. It was- a forecast which Stapfor•d groped would ultimately come true, but which Would ,happen over time.. The closure of Hoover Pavillion would save sev- eral dozen employees now required_. because of the duplication of facilities among other issues. r There were two factors --a per ianent 'reduction'reductiOne in the hospi tai'. s , base number _ of employees, and a flexibile part of the budget depended on the number of patients being served. Stanford Was -entering an era wher•k a great 4 5 6 4 5/21/84 deal more care would be given on an ambulatory atory basis. Patients would be in and out of the hospital more quickly so that the like- lihood of the same size evening and night staffs would not be the case in the future. The nature of the way care was being deliv- ered in the country was changing which factors affected the number of employees the hospital utilized. Stanford reduced the base staff by over 10U over the past two years. Councilmember Fletcher said an page 79 of the E1A, there was a group of parking recommendations, and she asked whose recomme da- tions they were and whether they were accepted by Stanford. Mr. Schreiber said page 79 was the first page of the Executive Summary of the Medical Center ParKing Plan, which was the appli- cant's document. The plan was developed in part after discussions with the Planning Commission about two and one-half years ago regarding the Welch Road heliport site. Counci lmember Fletcher said the Plan spelled out the number of parking spaces the heliport site would be used for assuming Coun- cil approved the document, and she asked if there was any jeopar- dy to the use of the heliport site for parking. Council was just told that if the heliport site was not rezoned PF, Stanford was not sure whether parking could.continue on the site. Hr. Schreiber said presently there was no parking on the heliport site. Under the current DR zone, there could be parking for col- leges and universities. Medical Center parking considered as parking for the medical school other than the hospital would allow parking in the OR zone on the heliport site under current si tr'a- tions. The OR zone also allowed temporary parking for five years, hich did not have to relate to a specific use. The medical cen- ter parking plan was based on a hope that the heliport site could be used for a long-term medical center related parking. Counci lmember Fletcher interpreted the document to deal with the modernization project and not the rezoning. In that event, if Council accepted the document, it would in essence legalize park- ing on the heliport site for hospital use. Mr. Schreiber said the applicant's request was to change the heli- port site in the Comprehensive Plan designation to major institu- tion/special facilities and change the zoning to public facilities (PF), which actions, with or without a subdivision, would provide that the site could be used for automobile parking with a use per- mit for hospital related use. If it remained office zoning, there could oe medical center related parking if it was assumed to be for the school but not the hospital. Counci lmember Fletcher asked if the total number of beds not going beyond the present 663 looked ahead to the Children's Hospital move and the additional 99 beds that would eventually be moved fr-ora ioover Pavilion. Ur. Crowley said the total of 663 beds was the present licensed bed capacity of the hospital, and it did not propose to be en- larged. When the Children's hospital moved, it would add another 00 beds, but there was no expansion in the total number of licensed beds proposed. The particular project still called for a total of 663 licensed beds, but the _.number of licensed beds at hoover would be reduced as the beds were added in the main cen- ter. Council+eember Fletcher._ clarified that the total number of beds would be more after Children's Hospital moved. Ur. Crowley said the total number of beds after the new Children's would be another 60 beds. 4 5 6 5 5/21/84 Cvuncilmember Fletcher clarified that ernpleyment at the present Stanford Hospital site would increase as the beds moved over. u r. Crowley said the employment would increase after the new Children's Hospital moved. Councilmember Fletcher said the pediatrics facility at the present hospital was cited as a reason for the modernization project because its facilities were insufficient. She was unclear about whether it was part of the modernization project or would wait until the Children's Hospital moved, u r. Crowley said if all went well, it would wait until the new Children's Hospital moved because Stanford planned to put all of pediatrics in the new Children's Hospital. If it did not happen, Stanford would put the 44 pediatric beds in part of the modernized hospital project and could not move as many patients from Hoover. Councilmember Renzel asked how Children's Hospital would connect to the HMP and be on the heliport site and not require an ambu- lance to move patients back and forth. Or. Crowley said the Children's Hospital would not be on the heli- port site a od require an ambulance to carry patients back and forth. The plan Was to connect it to the spine of the modernized hospital. u i rector, Hospital Modernization Project El vi a Garwood said it would actually be a physical connection. ur. Crowley said it was possible to extend by a bridge across Blake Wilbur Drive, but Stanford needed a site for overall parking for the Stanford HMP and the new Children's Hospital. Councilmember Renzel asked if there were plans to eliminate Blake Wilbur urive. Mr. Williams said the site shown as the Children's Hospital was on the main hospital parcel . The footprint of Children's Hospital was not yet designed, but it might be large enough to where it lapped over into the heliport parcel or into the area where the administrative annex sat. The point of ,combining the parcels was that there was not, enough site area in the .main parcel to allow the square footage of the Children's Hospital to be planned there. It would exe eed the floor area ratio requirement so without com- bining the parcels, Stanford ended up planning Children's Hospital on an inadequate site by legal requirements. Councilmember Renzel asked if that was not taken into considera- tion with the proposal to wove Children's hospi tal Mr. Williams said Stanford wanted to combine the . parcels to plan the hospital in the best possible way. Otherwise, the hospital components could be planned as separate units on separate sites, but it would not make good .sense in terms of the hospital. Councilmember Renzel said i t made no sense to move. the Children's Hospital if it was not contiguous, but she was concerned that the traffic proposals more or less assumed Blake Wilbur Drive would continue. It was not the typical "through the parking lot" access road, it was more like . a regular street and was used .as such. If not factored into the transportation issues, the figures for Welch Road, Pasteur .Drive, Willow Road and the whole. ball of wax must be reevaluated because it now accommodated a 1)'s of traffic that would have to be rerouted. If the building was contiguous, she saw no way to loop it out and back to access the rest of the panting, and access to parking for the new project plus the Children's Hospital would be difficult. 4 5 b b 5/21/84,: Mr. Williams said Blake Wilbur was in fact a parking lot aisle. It was desiyned more like a street than the rest of the parking lot aisles, but had no more status than a parking lot aisle. The primary traffic on the street accessed parking from both direc- tions. When the HMP and Children's Hospital were in place, there would be about 500 less parking places in the area which would reduce the traffic on Blake Wilbur as a matter of course or divert it to the new parking that would be designed. Blake Wilbur was _closed 'on occasion to install utilities and there was no signifi- cant change in the traffic. It went to the parking lots from two directions and there was not a significant amount of through traf- fic apparent. Stanford believed .Blake Wi i bur' s primary function was a traffic lot aisle, and as the traffic lots were rearranged, the aisles could be rearranged accordingly. - Councilmember Renzel said if Blake Wilbur Drive did not exist, people going to the Medical Center would go up Quarry Road and have to figure out where to park at the corner where Blake Wilbur used to exist. It was not obvious where they would go and how they would get to the patient area from the parking area, and the same was true if M a N were made into parking lots. How would they be accessed if Blake Wilbur Drive disappeared and a building occupied the entire space. Mr. Williams said they were getting away from the specifics of the HMP to conjecture about the next Children's Hospital project, which Stanford was unprepared to do. There would be an EIA of the new Children's Hospital to deal with the problems related to its design. Generally, Stanford assismed it could relocate all or por- tions of Blake Wilbur Drive to meet the needs of the new config- uration of the new facilities, and the north/south portion might move inboard to provide a different kind of access drive to both Children's Hospital and the main hospital entrance. There might be access to the facilities from two directions, or it might be a continuous loop of access. The remainder of the design went with Children's Hospital, which EIA Council would review later. Councilmemaer Sutorius said regarding employment, an intent. of the modernization and the result of the successful modernization was a dramatic increase in the number of sin 1e bed rooms, perhaps achieving a 35 percent level of single bed rooms. He asked what a market change in single bed rooms nursing care did to the number of nurse hours required to provide the care, as opposed to what now existed in the way of a high ratio of multi -patient rooms. mr. King said there were several national studies about the dif- ference between multi -bed nursing units and nursing units with one-oed rooms. Kaiser Hospital prided itself on its great effi- ciency in the way it delivered care, and now built only one bed room units. There was not a remarkable difference, but 30 - or 40 years ago the answer might have been different. There were bene- fits to private rooms in terns ,of; the utilization of the nursing units,, but generally there as not much difference so it would not requirl more nursing to manage patients when 35 percent of the rooms were private. Counc i laaember Fletcher said when she was . in intensive care, she was in a three- bec -room with one nurse for the room. If the HMP proceeded, she understood the intensive care units would be single bed rooms, and she asked if there would still be one nurse for the :three rooms. $fir. King said it depended on the condition of the patients. If all three patients required a particular level of care,. there would be three nurses. In that type of unit, ,it depended on the individual patients and how many nursing hours ittook to care for the patient. Ur. Alfred Spivack, 770 Welch Road, was a physician who had practiced in the community since 1960. He urged the Council to i carerul ly consider the rezoning or the parkin}g area to allow for the contiguous development of the hospital in the new HMP. He be- lieved it was important to provide optimal care, save lives, and provide the chance for hospital growth to develop in an orderly fashion. In 19b5, when the coronary care units were new, he was asked -to plan and develop the new coronary care unit at Stanford University Hospital. There was great pressure to put the unit at the Hoover Pavilion to help in its upgrading, and if that had oc- curred, about 150 to 300 lives per year might not have been saved that were saved by planning the coronary intensive care unit as it was. By having the capability of planning for the facility in the centralized area, being able to call on the emergency services to use the personnel and to avoid reduplication, they had an effi- cient unit that had access to all of the best facilities of the hospital. That was one example of what unforeseen conditions might come up in the pl annl ng of a hospital, and stressed the im- portance of being able to develop in a contiguous and orderly fashion rather than having barriers set that might be obstacles for future development. Bill Green, 225 Creenmeadow, said his comments were contained in the Planning Commission minutes. He supported the approval of the project as recommended by staff, and did not believe the reasons for its disapproval were convincing. As he understood the staff report, the changes would provide the City more control over fu- ture development of the project than presently existed. The loss of phantom housing on the heliport site was not a loss. The mere fact that a site was designated for housing did not create neces- sarily housing, and he had no reason to believe the site would ever . have housing built on it. The EIR and proposed mitigation measures were greater than the project actually justified. A hos- pital modernization project per se would not require the kind of mitigation measures that were negotiated and agreed upon. The City should accept the offer from the University on some of the mitigation measures which were important to the larger development not presently before the Council. He believed the opportunity should not be passed. Anthony Ue Alcuaz, 105 Mission, East Palo Altr, said he used the hospital and its clinics for day-to-day health care, and was once required emergency care and received what he believed was excel- lent health care at the time of an injury, due to a head on colli- sion. The Hospital was a regional asset which required the most important kind of cohesive and cooperative planning, and he urged Council to consider the interests of the broader public in per- forming its duties. He believed it was one instance where the public interest was exactly coextensive with the interest of the applicant. He urged that Council consider the application i n the spirit of complete cooperation with the persons who planned the project since the imposition of the project and any concerns which were extraneous to the provision of medical care would be other than in the public interest. Ur. Nancy Jewell Cross, 301 Vine Street, Menlo Park, spoke on be- half of the Committee for Safe and Sensible San i` ranci squi to Creek Area Routing, and said the Committee was concernedwith environ- mental aspects in air quality, transport related air.. goal i ty, and other transportation facets. She believed the people who spoke were not entirely aware of the distinction between environmental assessment and environmental impact report. An EIR was required when it could not be said thata project would not have a signifie cant impact on the environment, and there was no EIR for the prOj- ect. She looked over the project and the assessment, and found inadequacies in the handling of transport matters in air quality in particular, in that the proposed a i ti 9ati ons did not signifi- cantly address the impacts- of what appeared to be an addition of approximately 1,00 daily trips in the vicinity. She requested, that Council not accept the environmental assessment in lieu Of an. Elk. In that particular instance, it was not an evaluation of the project or the potential for mitigation if the subject matter was 4 5.68. 5/21/84 adequately addressed. There were a number of conditions men- tioned, one of which was "contingent upon approval by Menlo Park." which allowed Stanford to get off the hook if Menlo Park did not approve it. If it was a necessary mitigation and Menlo Park did not agree, the Council was responsible to the public for the re- maining impacts, which must be completely mitigated before approv- al. She believed t"e City would get into legal hot water if it had necessary mitigations contingent upon another jurisdiction. She did not oppose the project, but believed it was inadequately explored by the environmental assessment and needed an EIR, and that any conditions must adequately address air quality and trans- port in ways they did not currently. There was a statement that the project area was served by four transit systems --Santa Clara County Transit; San Mateo County Transit; SamTrans; Hoover Pavilion Shuttle and Marguerite. Those systems linked the pro- posed area with Hoover Pavilion, Children's Hospital, Southern Pacific Depot, and other areas of the Stanford campus, as Santa Clara and San Mateo systems also served destinations throughout their respective counties. That was too general to be relevant to mitigating or addressing the matter of alternative modes of trans- portation. There were too many cars and the air quality was not attainment of federal air quality standards-. She spent an hour at the Oak and Sand Hill Road intersections that morning, and 55 cars at the intersection turned left, and 47 were headed for Stanford property. There was no bus stop there where people could get on the bus and go to Stanford. Specifics were needed for alternative modes of transportation in the area in order to have any valid development of mitigation. Jeff Hook, 302 College, said there was an indication that the project would be given a negative declaration in terms of its en- vironmental impact, and 1,000 trips per day did not seem to be insignificant. He urged the completion of an EIR. He believed money was expended on more complex modes of technology in order to give people a few more breathes of life, and he questioned whether it might not be better to take the capital and providemore basic services for a higheir overall success rate in the level of provid- ing of health care to the general populous. Stanford University Hospital Chief of Staff James Silverman, 4.75 Marlowe Street, encouraged Council approval of the project. Stanford University Hospital brought a long history of service to the community and supplied the health care needs to most of its sick patients, as well as sick and complex patients sent from sur- rounding communities and places far distanta The HMP would allow growth to satisfy some crucial space needs for tne hospital and would allow development of important new treatments and technolo- gies. As a teaching hospital, it was the first to get and test no tech new technologies which ultimate.ly benefit the community by bring- ing the newest and best things at the earliest possible time. He hoped Council would approve all items including the rezoning and Comprehensive Plan change. Mayor Klein declared the public hearing c1 used. MAYOR KLEIN RE ITEMS TO COMMENCE AFTER 11e0Otp.m. Mayor Klein said there were six additional items on the agenda after..completion Of Item #19, Stanford Modernization, and he be- lieved none would take too long, and Codnci l should plan to come pl ete sits entire agenda. RETURN TO ITEM #194.:STANFORD UNIVERSITY HOSPITAL MODERNIZATION - MOT ION: Cowncilmember Bechtel movedi, -seconded by Cobb, to ' adopt tae :Staff reComatoodation as contained in the staff report (CMR:Z8O:4), dated May 17,. 1984, as. follows: 1. -That the hospital $oderaizat1on_;Project, nclading .ftigaticns incorporated by the applicant, 'will not ha_ye a si gni f i cant impact oa the environment; -that -the., plan changes, zone 4 ra 6 9 5/21/84 1 MOTION COW T IWUED changes, and preliminary parcel map, including mitigations incorporated by the applicant, will not have a significant impact on the environment; 2. Adopt resolutions amending the Palo Alto Comprehensive Plan Land Use Plan Map; 3. Adopt ordinances amending the Palo Alto Zoning Ordinance; 4. That the preliminary parcel map is consistent with the Palo Alto Comprehensive Plan, complies with the Subdivision Map Act and Title 21 of the Palo Alto Municipal Code, and that there are no conflicts with public easements, approval subJect to the following conditions: a= A standby electric service agreement with the City satisfactory to the Director of Utilities; .---- b. Submission to and approval by the City Engineer of a detailed drainage plan and all related calculations; c. A street opening permit erl, if necessary, an encroachment permit shall be obtained from the Public Works Department prior to doing any work in the Welch Road right-of-way; d. Plans for relocation of all City utility services shall be submitted to and approved by the Director of Utilities; and e. Acceptance of an agreement satisfactory to the City Attorney guaranteeing implementation of the mitigation measures in the Mitigation Agreement. 5. Adopt the staff recommendation that the use permit contain a condition that the Medical Center parking supply should be at a level where no more than 95 percent of the available spaces are occupied during peak periods and a City parking monitoring procedure be established. RESOLUTION 6261 entitled 'RESOLUTION OF THE COUNCIL OF PALO ALTO AMENDING THE PALO ALTO COMPREHENSIVE PLAN BY AMENDING THE LAND USE DESIGNATION: OF THE VACANT PARCEL ON WELCH ROAD PRESENTLY USED FOR HOSPITAL PARKING* RESOLUTION 6262 entitled *RESOLUTION OF THE COUNCIL OF rut GI -111- ^ PALO ALTO AMENDING THE PALO ALTO COMPREHENSIVE PLAN BY AMENDING THE LAND USE DESIGNATION OF THE VACANT PARCEL OM WELCH ROAD PRESENTLY USED AS A HOSPITAL HELIPORT` ORDINANCE FOR FIRST READING entitled *ORDINANCE OF THE tuuN LIL ut ARE ‘ITt ur PALO ALTO AMENDING. SECTION 18.08.040 OF THE PALO ALTO MUNICIPAL CODE (THEE ZONING MAP) TO CHANGE THE ZONE CLASSIFICATION OF THE VACANT.. PARCEL ON WELCH ROAD PRESENTLY USED FOR HOSPITAL PARKING FROM OR TO PF' ORDINANCE FOR FIRST READING entitled 'ORDINANCE OF THE tUtliti.n.n4 r mL n, i ryr yr PALO ALTO AMENDING SECTION 18.08.040 OF THE PALO ALTO MUNICIPAL =CODE (THE ZONING MAP) TO CHAIiCi . THE: ZONE CLASSIFICATION OF THE VACANT PARCEL. ON WELCH ROAD PRESENTLY USED AS A HOSPITAL HELIPORT FROM OR TO PF' Councilmember Bechtel said as a student, she gave tours to Stanford Hospital when .i t first opened. It was the premier 4 5 7 0 5/21/84 nuspitel of the country and people from all over the world came to visit Stanford Hospital. It was now considerably outdated, aild she saw how nurses in the intensive care units had to be in each room, and if a nursed wanted to leave a room momentarily, hi —or she had to be relieved by another nurse because patients could not be viewed from the central desk. She was not concerned that there would be an increase in any staff, and at_most there would be an increase for housekeeping. Children's Hospital had existing staff who would be moved to the new location. There would be some savings in terms of staff because duplications would be avoided. She did not believe the fate of the existing facility was known, but she was not concerned. It was true that in 1981 she voted to rezone the heliport site to housing, but new housing was not going there, it would be at another. location nearby. She supported the staff recommendations. Councilmember Cobb was pleased to second the motion. With regard to housing, he might have voted for housing on the site as a Plan nine Commissioner, but since then decided it was not a good -loca- tion and probably never was. Stanford made some major efforts and continued to try and provide housing and Council should not try and flog more out of Stanford. With respect to the subdivision issue, and in terns of the various mitigations received by combin- ing the package and the way it was under the staff recommendation, the City had a good deal and should be happy with it. After read- ing through all the material, he sensed that the City was looking at it as an office. It was a hospital which provided a valuable service to the community, a^d Council should look at that value and consider its meaning and realize its importance. The employ- ment related to the hospital was not like office employment. Councilmember Renzel had no quibble with the hospital expansion, and believed there were good reasons for the project. She agreed with the Planning Commission with respect to land use and zoning designations on the subdivison. The issues related to the move of Children's Hospital were attached to the EIR so that Council said all issues related to those decisions were covered by the EIR and yet a great many of the impacts were unidentified. She preferred to not include them in the EIR until they were.. known. All of Welch road was at one time zoned residential, and under condi- tional use permits, Offices were allowed to be built. Some of the properties were utilizdd that way, but a number of large parcels were in residential -.up until about 1976. Through,an accident, the properties were redOsicinated to officeicornmercial , and in 1980 or 1981, Council redesignated the heliport parcel to residential. Children's Hospital might be located on the heliport property with some type of connection to .the modernization project and Blake Wilbur Drive might be eliminated, which meant a whole level of impacts not addressed with respect to the issue.- If Council looked at` the entire medical center complex in -its context, and if Blake Wilbur Drive was eliminateds would access to those proposed parking lots be along.Welch Road, was principal access going to be from Pasteur urive and Campus Drive, and what were the impacts. She did not believe •Council had those answers, and she was not prepared to say those were addressed in the decision. She -was not adverse to looking to Childreo`•s Hospital proposals and evaluating them with complete i nformati n .with respect to whether additional parcels should bejoined for purposes of provided needed area for parking, but, she wanted to see ' the entire proposal and know what she was addrts:i ng. She believed i t was a mistake to Make_ those decisions teatevening, and it was a mistake for Stanford to con - tempi -ate eliminating Blake Wilbur Drive because by filling .in the northeast corner with hui i di ng, there' -would not be a good circula- tion pattern for the isolated oncl ave . ..She bG , ; etied --i t was: a ser- lous probleal and before Council permitted those changes, they should .know- exactly;.what circulation plan was proposed and --how it would- impact - the rest of the City. She wanted that portion of. the decision divided from the .question AMENDMENT: Councilmember Renzel moved an amendment to Item No.. 5 that approval of the EIA be conditioned on it being for 663 beds. AMENDMENT DIED FOR LACK OF A SECOND 1 e Councilmember Fletcher was enthusiastic about the modernization project, and saw no reason to include the other requested actions in the !.!MP approval because there were things not yet assessed re - yarding rezonings, lot splits, etc. It was not usual Council pro- cedure to go ahead with the process of first approving lot splits, etc., until they knew what was going to happen. It should not be difficult, cumbersome or lengthy for Stanford to come in within a few weeks with a conceptual. plan about where Children's Hospital would be located, its size, where parking would be, etc. The parking at the heliport site was good for a number of years yet, and although she also supported rezoning the heliport site to res- idential.a few years ag'i, it was not her present concern. She believed she would go along with a redesignation when the proper approvals were sought from the Council, and she did not think she would stand in the way of a relocation of the Children's Hospital. The problem was lack of information, and Council did not know the size, parking, traffic. It was not part of the modernization project as was made clear, and it was not evaluated in the EIA. She also requested that the motion be divided so she could support the iMP without approving the other sections of the motion Mayor Klein said the motion would be divided for purposes of vot- ing. Vice Mayor Levy had no problem with the HMP and added his voice to those Councilmembers who praised the hospital as a facility of worldwide significance and great importance to the community. He echoed Councilmember Cobb's comment that the City was not dealing with office space as if it were other office space in the commu- nity, but rather with a large hospital that needed special kinds of planning ano certain integrity in the spaces it used. He praised the people connected with the hospital as people of great dedication, competence, and integrity from top to bottom. Regard- ing the other two parcels which were the key point of difference between staff and the Planning Commission, he supported the motion as presented because he was satisfied that the City's controls would be the same through the use permit process as through a re- zoning process. me recognized that Stanford was a unique develop- er in the community that must live with the results of its own development so there was a significant self-interest involved in making sure its total development was satisfactory in all ways. In the final analysis, Council must not abrogate its responsibil- ity to serve for the total community, and he would only approve the project if he were satisfied that through the use permit process, the City had satisfactory controls. - He believed there was a substantial scepticism as to the employment figures present- ed, and in the use permit process for the Children's Hospital, he would closely review the employment on the site and what it Meant in terms of .traffic and other impacts en the whole community. Staff's concept of monitoring the parking was acceptable ' to him and he did not believe it was necessary to insist upon a separate designation of parking; for the Medical center. He believed that if the medical - center vorkina for any reason filled to too high a level, the City must step in and ask the University to look at its total parking picture and take corrective action. Councilmember Sutorius supported the motion, and asked for assur- ances that Council was doing everything requested by staff in item No. 5. He wholeheartedly associated himself with the CUmments of O r. Wi l i am H. Clark who provided a letter to the Council, which was on file in the City Clerk's; office, which last paragraph' read, "Before closing, 1 wish to express my opinion regarding the 4 5 7 2 5/21/84 present heliport t,ei ray earmarked since 1981 in the Comprehensive Plan for multiple family housing. Of course there was a need to preserve suitable parcels for critically needed housing, and I consider this location to be unsuitable. It would be irresponsible to place housing so close to a very busy tertiary care medical facility with sirens, noisy helicopters, heliport flood lighting, and the inevitable disturbance that was part of the 1.1:00 p,rn, and 7:00 a,m, hospital personnel shift changes. In the referendum against the Palo Alto Medical Foundation Hospital, these very factors were a major and very appropriate argument against any such facility abutting a residential area." Mayor Klein also appreciated Dr. Clark's letter. He supported the motion, and emphasized that by alproving the change in zoning for the heliport and parking lot site, the City lost nothing with regard to control . The use permit process provided at least the same if not more control over the decision -making, if and when the new Children's Hospital went to Council for consideration, but the decision should be made then. Council was not giving over any of its authority to consider the impacts when the matter was ready for a decision and the 'same was true :'ith what happened to the old Children's Hospital site, if and when Stanford decided on some other use. He remained concerned with what happened in the entire Willow corridor, and believed the City needed a Comprehensive Plan for the Willow corridor. It was incumbent upon Stanford to come forward with such a plan to tie together everything with regard to the extension of Willow Road, Stanford West, etc. as Council discussed on many occasions, but that was not before the Council. The project before the Council was worthwhile, and Councilmember Cobb pointed out that it was a development of great humanitarian concern to everyone. It was one of the world's great hospitals, and Council should lock at it differently than it would an ordinary office development. Even if it were an ordinary office development, he believed the package adequately covered the questions Council needed to answer to find that the project, including mitigations, would not have a significant impact on the environment and that Council was provided sufficient reasons for changing the land use designations and zoning for the heliport and parking lot` si t.e . Council should move forward - and approve the motion, and hope Stanford's project was a success and that the hospital would continue to be a great facility of benefit to the entire country. Councilmember Woolley believed Council was weighing into balance high quality and efficient medical care with traffic impacts, job counts, and a possible housing site, In the immediate future, the impacts were minor= and the mitigations were significant. If fur- ther down the road, it turned out that . the impacts were greater, Council needed to deal with mitigating those impacts and nit to say no to high quality, efficient medical care. She supported the motion. Councilmember Renzel said even with dividing the motion, there was still a problem with No . 1 because the project as defined _by the motion included the subdivision, land use change and zoning change. She hoped No. I could be divided -into two parts which was the HMP and all of .the rest of the parts of the project as defined. A$EMRMEHT: Cogbt.ilmeMber Renzel roved, secoaded by Fletcher, that Item Ho. I be divided into two parts: la) The Hospital Modernization Project, including mitigations incorporated by the applicant, will not have a significant impact on the environment; and lb) That the , plan chnolits, zone changes, and preliminary parcel Rep, including mitigations incorporated by the applicant, will ,not hay. e a significant . impact on the eavl ronmeat. 4`-5 7 3 5 21/84 Me. Schreiber ,aid the project, in terms of the environmental review, included both the building expansion as well as the two plan changes, two zone changes and subdivision. AMENDMENT PASSED unanimously. Mayor Klein said Council would vote separately on each paragraph. PARAGRAPH` 1-A REGARDING THE HOSPITAL MODERNIZATION PROJECT PASSED UNANIMOUSLY. PARAGRAPH 1-D REGARDING PLAN CHANGE, ZONE CHANGES, AND PRELIMINARY PARCEL MAP PASSED by a vote of 7-2, - Fletcher and Renzel voting "no." PARAGRAPH 2 TO ADOPT RESOLUTIONS AMENDING LAND USE MAP PASSED by a vote of 7-2, Fletcher and Renzel voting "no." PARAGRAPH 3 TO ADOPT THE ORDINANCES AMENDING THE ZONING ORDINANCE PASSED by a vote of 7-2, Fletcher and Renzel voting 'no." PARAGRAPH 4 TO ADOPT THE PRELIMINARY PARCEL MAP WITH FINDINGS AND CONDITIONS PASSED by a vote of 7-2, Fletcher and Renzel voting "no.' Mayor Klein clarified that paragraph 5 recommended use permit con- ditions to institute a monitoring system of the parking lots and a condition that the medical center parking supply should be at a level where no more than 95 percent of the available spaces were occupied during peak periods. Councilmember Sutorius said there were certain Utility, Public Works, and other City department recommendations, and the intent of Item 5 was to capture the approval of the Council for those types of things. Mr. Schreiber said the intent was to allow Council an opportunity to advise the Zoning Administrator on anything it believed would be of special importance for the use permits. As a matter of course, staff would provide the Zoning Administrator with the utility comments, public works, etc. , but if there was something which Council believed needed special emphasis, now was the time to give that advice. Whatever Council did that evening would not limit the Zoning Administrator's ability to apply conditions, and there were many standard conditions that would go in as a matter of course, Councilmember Sutorius asked if the earlier motion with respect to Item 4-e, acceptance of an agreement satisfactory to the City Attorney ,guaranteeing implementation of mitigation measures and the mitigation agreement, referred only to the traffic or whether it referred to all mitigations -identified. Mr. Schreiber said as worded, it referred to all mitigations. Some might be taken care of in the use permit process, and many of the conditions were the types Of' things that could directly apply to a usa permit. Some mitigations did not, and as such, the City would probably `have a separate agreement, which would be worked out with the City Attorney's office, Councilmember Sutorius clarified that under Item f5 where .it _ said the inclusion of environmental mitigation measures, staff was not asking Council . to take a specific action. Mr. Schreiber replied that with the : vote to . accept the environ- mental document and the mitigation measures, it was already spoken to. Mayor Klein clarified that Council was in an -advisory position in Item No. 5 rather than a decision -making body,: and was talking about extraordinary items it Was concerned with that were not in the usual course of events, 4 5 7 4 5/21/84 Councilmember Renzel recognized it had been evcryons ' s intent . to bring back to Council any use permits that would relate specifically to the relocation of Blake Wilbur Way and the movement of the Children's Hospital; however, she wished to make it a condition of the use permit. AMENDMENT: Councilmember Renzel moved, seconded by Levy, to require, as a condition of the use permit, that when Children's Hospital and Blake Wilbur Drive coves before the City it be referred to the City Council and Planning Commission. Ms. Lee said she did not believe that the procedures laid down in the ordinance to process use permits . could be changed via such a motion. It would be necessary to change the zoning ordinance to change the way a use permit was procedurally processed. Councilmember Renzel asked if the amendment should direct staff to refer it. Ms. Lee pointed out that the Mayor had stated, and the Director of Planning reiterated, that the role of the City Council was to suggest.;. If Councilmember Renzel's amendment were phrased as a suggestion, she would expect it to be heeded. It could not be formalized in the way she intended. Mayor Klein asked if the amendment should be ruled out of order. Ms. Lee said the alternative was to phrase it as a suggestion, to which Councilmember Renzel agreed. AMENDMENT REWORDED: That when Children's Hospital And Blake Wilbur. Drive comes before the City it be referred to the City Council and Planning Commission. AMENDMENT PASSED unanimously. PARAGRAPH 5 SPLIT. PARAGRAPH 5-A TO ADOPT THE RECOMMENDATION RE THE MEDICAL CENTER PARKING SUPPLY passed unanimously. PARAGRAPH 5-B REGARDING USE PERMITS FOR THE CHILDREN'S HOSPITAL ARD/Oil BLAKE WILBUR DRIVE passed unanimously, as amended. PARAGRAPH 6 TO APPROVE THE RELOCATION OF THE HELIPORT TO THE ROOF OF THE HOSPITAL ADDITION passed unanimously. ITEM a#lU ADDITIONAL CABLE FRANCHISING SERVICES (PRE 7-3), rwrrisrirm— MOTION: Councilmember Witherspoon moved, seconded by Rl ei n, to adopt the staff recommendation to approve a Budget Amendment Ordinance in the amount of $73,000 to corer the cost of additional services performed by Arnold and Porter, and authorize staff to amend tee Aireaw.ezt : e42g2, Rercn Is83 I with Arnold mod Porter to increase the cost ceiling to $185,000 ORDINANCE 3534 entitled 'ORDINANCE OF THE COUNCIL OF r�E ctrl UV 44.0 ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 19€83.84 TO PROVIDE AN ADDITIONAL APPROPRIATION FOR THE CABLE TELEVISION FRANCHISING PROCESS' Councilmember Witherspoon thought it might be helpful in the,. accounting process to differentiate such additional expenses incurred through the law suit and purely administrative ones Assistant City $onager ,Tune. Fleshing was not surer if that' was being done at that time, but offered to follow through and implement the suggestion. Councilmember . Witherspoon hoped . that it might be possible at some time to recover the costs. 4 5 7 5 5/21/84 Councilmember Woolley was disappointed with the amount of time Arnold and Porter spent at public and Council meetings, and was surprised to see the expenditure greater than expected. Ms. Fleming said Arnold and Porter made more trips to_ consult with staff than originally estimated,_: and trips were made with addi- tional staff in order to attend meetings outside the City of Palo Alto and work with City staff on the Joint Powers Agreement (JPA) and other matters. Councilmember Woolley referred to page 2, paragraph (?) of the staff report, and -asked if the JPA agreement was a part of the original contract. Ms. Fleming said the JPA. was envisioned in the original contract, but since more work was involved than originally anticipated, staff underestimated the expenditure. Councilmember Woolley referred to paragraph (4), and asked if it was unusual for applicants' replies to not fall into expected categories. Ms. Fleming said yes, because such quantitative replies were not anticipated. Councilmember Woolley asked if the additional $73,000 would bring payment of bills current or whether it included performance of some future tasks as a result of the lawsuit. Ms. Fleming said no future tasks were envisioned, and staff con- sidered the amount sufficient. She deferred to the City Attorney regarding the lawsuit. City Attorney Diane Lee preferred to discuss the matter i n closed session. Ms. Fleming said staff believed costs were sufficiently covered. Yi ce Mayor Levy requested itemized information on items i th sough 9 to compare the amounts expended by Arnold and Porter and the amounts originally estimated. Ms. Fleming did not have itemized accounting details with her, -but could provide the information at a later date. Ms. Lee said there were no original estimates for items 8 and` 9 because the City was not involved in any litigation when the con- tract was entered into. Yi ce Mayor Levy believed Arnold and Porter was instructed to not spend more than authorized, and to advise in advance if it appeared they might need more money. According to the memo, the consultant spent more than authorized without notifying the City. Ms. Fleming said the expenses exceeded the funds now available but she was unaware whether any staff member was so notified. Vice Mayor Levy asked for confirmation that Ms. Fleming had no detailed information, and that Council could either approve or disapprove the addi ti ona1 : sum, and obtain more detail later. Ms. Fleming said she did not have detailed accounting information to give specific . dollar amounts for each item. The City Attorney explained items 8 and 9, but staff could return with the informa- tion if necessary. She assured the Council that the costs were actually incurred. Vice Mayor Levy asked if a document from. Arnold and Porter should have accompanied the staff report. Ms. Fleming said no. T i %e Mayor- Lu Vy aras dismayed by the request after council spent mueh time to ensure it would not occur. He suggested the item be continued to June 4, 1984 to allow Arnold and Porter to report back. Ms. Fleming believed staff could return on June 4, 1984 with detail on the items in the staff report. Vice Mayor Levy asked how it would affect Arnold and Porter's timetable to return to the Council. Ms. Fleming did not believe it would.he adversely affected. NOTION TO CONTINUE: Vice Mayor Levy moved, seconded by Woolley, to continue the item until June 4, 1984, for staff to report back on items 1-9 with the original Arnold and Porter estimates and the Arnold and Porter expenditures, meeting in closed session to the degree necessary. Ms. Lee said she understood Vice Mayor Levy wanted to discuss the original estimates and what was spent. Vice Mayor Levy said that was correct. If money was spent on items that were not originally or ever authorized, he wanted to know about it. Ms. Lee said the matter would be discussed in executive session. Councilmerhber Cobb said he was also dismayed by the item. He wondered why the time spent researching and analyzing the issues of the JPA were not part of the original job, and was curious to learn how much additional staff cost was incurred through the extras for Arnold and Porter. It appeared there were several nonresponsive and late proposals, and he wondered whether the problem was because the respondents were unable to follow directions or because Arnold and Porter did not do a good job. If the matter was continued, he requested justification from Arnold and Porter that they carried out the job properly and that unusual and extenuating circumstances caused the cost of the consultant service to almost double. Counci lrember Renz.el said staff outlined the unanticipated differ- ences, and she did not believe they had control unless all bids which did not conform to the Request for Proposal (RFP) were rejected. It was impossible to anticipate what those differences might be, and the staff report outlined that there were differences, but that staff was satisfied the City received the services for which allocations were requested. She would support holding a closed session to discuss the matter further, but had no trouble in :oti nr on the information given, and preferred to go ahead and deal with the matter. Ms. Lee clarified for the press and public that the only matters to be discussed in Executive Sess#on related to litigation. MOTION TO 'CONTINUE FAILED by a vote of 2-7o woolley and Levy voting 'aye -4! Vice 44ayor•° Levy said item 1 of the staff report explained that Arnold and Porter made several unanticipated trips at pity staff request, and he asked which were anticipated and which were dot. Ms. Fleming said it was . necessary. for. Arnold and Porter to make more trips to work with staff and public_ groups, and not all. , tri ps were to attend a public meeting. where they -- woul d be seen. She r r•d rstood the concern, but_ confirmed that trips. were made from June 1983 forward. She did not, have. exact numbers because it was not, estimated'that.way. in the beginning. 4.5 7 7 5/21/84 e Vice Mayor Levy asked whether the improper estimates were made by staff or Arnold and Porter. Ms. Fleming believed it was probably a combination. Yice Mayor Levy understood that nothing unusual went on at the JPA except for the negotiation of fees, and asked what unusual feature caused the excess expenditure. Ms. Fleming said the last sentence of (2) in the staff report explained that the unusual feature' was the help of Arnold and Porter to prepare the City for an access workshop. Vice Mayor Levy asked why the responses were not anticipated if Arnold and Porter prepared the RFP's. Ms. Fleming said the organizations which responded were not the ones either staff or Arnold and Porter expected. When the responses were received, it was necessary to obtain additional information. Vice Mayor Levy asked the City Attorney how much the City paid Arnold and Porter in connection with the lawsuits it was involved in. Mayor Klein clarified the City Attorney's advice that such questions not be discussed in public, and ruled the question out of order. He said Ms. Fleming had not dealt with Arnold and Porter, and it was unfair to ask her a series of questions to which she aid not have the answers. City Manager Bill Zaner dealt with the ratter, but was out of town due to a death in his family. There was sentiment on the Council to approve the fees, and he suggested a rider be attached to the motion that upon his return, Mr. Zaner- prepare a complete report to the Council on the additional fees. AMENDMENT: Mayor Klein moved, seconded by Renzel, that the City Manager report to the City. Council in detail regarding additional charges incurred by Arnold and„Porter. Vice Mayor Levy asked if the amendment asked for detail of the esti ates and expenditures. Mayor Klein did not know whether they were calculated in that manner. Vice mayor Levy said he would not be helped by obtaining . blank statements that things did not turn out as expected. Mayor Klein preferred to request only an additional report from the City Manager, and if Vice Mayor Levy was dissatisfied with it, he could ask additional questions. AMEMDMEMT PASSED unanimously._ Councilmember Woolley opposed the notion because she wanted to first receive the report. She reminded her colleagues that when choosing the consultant, Council received two different bids. She remembered the otner bid being approximately $34,000, and Council taking the high end of the scale. Starting at that point, she did not expect the cost of the consultant to increase to its present extent. vice Mayor Levy. s_ ai d :Council was skeptical when :the process began that the original bids would hold, ands therofbre,- set : up a.a .early warning system so-that•if expenditures approached the 1iMiis 'Council Would be notified_ ahead. 01 time. Based on Arno1.d and Porter' s estimates, a . 1-imi t - of $112,000 wat set based" on -four :bads. It appeared that $115.,000 Was spent ,so far, and -the budget as already.. exceeded although Coundi i ;-was, not notified i n advance as required.- There was no, detail about the 1em from staff or 4 5 7 8 5/21/84 Arnold and Porter, mod it was unclear who was responsible for the cost overruns. The work areas were contemplated ahead of time -- working with staff, JPA, etc. --and unanticipated areas should have included Council notificatine of the process in connection with the various lawsuits. Since the City's handling of the total cable franchising processr would not be delayed by waiting two weeks for receipt of all data, he was disappointed his colleagues would approve an approximately 70 percent cost overrun with no detail.. He was reminded of the comment by Parkinson in Parkinson's law, "You approve major items with five minutes' worth of discussion, and spend two hours discussing the ordering of a box of paper clips." He believed Council sometimes did that, and he would not support the motion. Mayor Klein said he did not particiate in the hiring of the con- sultant, but believed Council made the right decision in choosing Arnold and Porter, whi eh he understood to be a far more sophisti- cated organization with deeper sources of expertise. As he looked over the proposals received and attended various sessions around the country on cable television, it was clear that Palo Alto ended up with one of the more remarkable cable television proposals in existence. No one planned it, and no one was at fault. He was bothered by the words "at fault," and believed there were many occurrences which could not have been anticipated. It was true that people might have estimated better in certain situations, but he did not believe that was the main area of difference. Some of the items were remarkably different, and the JPA proved to be more complex because there were differences among members about how it should proceed. The main item was a lawsuit that the wildest imagination could not have anticipated, which led to all types of complications, including delays which always caused increased costs. An application was also submitted by Pacific Telephone, which was unique i.n the industry at that time. It was not within the control of City staff or Arnold and Porter if applicants chose to write their responses to the RFP in ways that were difficult to equate. Applicants were free to apply in any way to get the fran- chise. He believed Council was picking on people who did a good job to date. Staff carefully evaluated the fees, and confirmed the appropriateness. MOTION PASSED by a vote of 5--3, Woolley, Levy, Cobb voting Mayor Klein clarified that the motion passed and budget amendments required a two-thirds vote. 1TLM #21 , NORTHERN CALIFORNIA POWER AGENCY - CITY OF FIREBAUGH Counci lmember Cobb said he and Councf lmember Sutorius believed it was important to inform the Council of the project because another meeting was proposed with the Northern California Power Agency (NCPA) to again discuss the issue. The Firebaugh project was developed by the California Power and Light Company, a private single -purpose corporation, and was a 49.9 kilowatt plant to be fueled by cultural waste products. The plant would be built by Bechtel, Power and .operated by National Ecology. The -first 30 years of its output was presumably committed to ` PG&E and guaran- teed some target prices, with the commitment to terminate if the plant was not commercial by December, 1988. The funding sources were $49 million from the equity owners; $5 million from Crocker Bank; and $3 mi f l i ova from the City of F i rebaugh . After a 30 year life, WCPA would have the right to..purchase power from the plant. The plant was to be financed by $122 million revenue refunding bonds from WCPA. The original bonds were to have been provided by the California Pollution and Control Finaincing Authority (CPCFA), who declined to finance the project; at the end of April, citing politics as the reason. Crocker Bank sought a new bonding agency before the end -of April, and NCPA offered to provide the bonds for which it would receive an immediate cash payment of $1.7 -million, 4 57-9 5/21/84 to he divided among p i')spec ti ve members, with the possibility of power from the plant after 30 years. It was said CPCFA declined to provide bonding because Mr. Unruh was concerned his politics would be compromised. On 'pril 25, 1984 at 10:00 a.m., NCPA Director Mr. Grimshaw came to Palo Alto to brief him, Council- mernbe r Sutorius, the Utilities Department, and the City Manager on the project. Less than 24 hours later they attended a meets rig i n Ukiah where people from the City of Fi rebaugh, Crocker Bank, vari- ous funding authorities, and others spoke in favor of the fu.idi ng describing it as a free $1.7 million with no risk. Palo Alto staff had less than half a work day to analyze the project and make recommendations. It was a bad procedure, and h.e referred to Vice Mayor L-evy's remarks about Parkinson's Law. The NCPA passed many things involving a lot of money and, more often than not, large matters came with little wa rni ng. The case in point was carried too far given the. pressure to proceed with the project. he quoted from the NCPA attorney' s letter to the bond suppliers, "The NCPA i s aware that the CPCFA refused to issue bonds for the project after some months of study, probably because of doubts aboutthe feasibility of the project...The NCPA had made no ifives- ti gation of the basis for the authority's decision, on the grounds that the feasibility of the project, is not its concern." "...because of time limits and other considerations, the NCPA had made no investigation into the feasibility of the project, the prospects of success, or of any factors relative to the feasibili- ty, etc." He reported a second more significant issue was that NCPA began as an entity to assist its members i n pl anni ng for and obtaining electric power to meet its needs. More recently it became a power producer with geothermal plants going on -1 i ne. The City of Palo Alto had a large share in the Calaveras project, and if the project went ahead, it would be a great power producer. This item would establish NCPA as being a financial institution, which was a large step from being i n the electric power business. At the Ukiah meeting on April. 25, he and Councilmember Sutorius spoke in strong opposition to the proposition on the basis of havi no no time to prepare, and whether this was a proper role for NCPA to suggest that such a divergence from its normal role be brought back to the various Councils for consideration. It was proposed that if Palo Alto did not want to become a part of the project, it could opt out immedi atel y . He noted that when a city became involved i n a study such as Calaveras, it decided what sh a oe it wanted. After Palo Alto made as strong a case as pos- sible, a vote was taken, showing eight in favor, two absentions, and one "no" from Palo Alto. They left with the feell ng Palo Alto was i nvolved i n the undertaki ng, but were uncomfortable. He believed it was legally possible for Palo Alto to say, as an act in p ri ncipl e, it did not want to be involved in somethi ng it con- sidered outside the normal purview of the NCPA, particularly since the project might be shaky. Palo Alto could then extract itself from the project by removing its name from the bond Issue if it desi red. The issue was not agendized for the Thursday meets ng, which meant it was proceedi ng, and would conti nue to do so unless Palo Alto brought it up. If eve ry thi ng they were told in Uk1 ah was true, there was no risk, and it would bring $1.7 million in fees that were risk free .and easy money. Palo Alto's share would `be 1 n excess of $300,000, which :could be . put to good use in the Utilities Department. However, the principle was of sufficient concern for them to discuss it in detail at the Thursday NCPA meetl ng. Councilmember Sutorius said on one side the goose laid a golden egg, which depending on the organization, could equate 18 months' dues 1 nto it, and was a classic' leverage lease situation. On the other hand,:; it had all the character) stics Councilmember Cobb= sug- gested. It was beyond being a matter of NCPA playing a f1 nanci rig role, for which it was not originated, and was a point of pr! nci- pl e. The whole thing was manipulated for `tax purposes, and the cost of government was too high —particularly at the federal and state level —because of such types of situations. It was inappro- priate for, another level of government to sponsor and facilitate' a manipulation which was probably a financial deal. 4 5 8 0 5/21/84. As Correct84 WI and was con- cerned w i t���r`S�uti►r �y�oeci with both speakers; about how NCPA's overall bonding capacity might be reduced, and the source of bond repayment if the project did not work and sufficient electricity could not be sold to service the bonds. She asked whose good faith and honor was at stake. Vice Mayor Levy said it was a not good example of creative fi nan- ci ng. City governments did a lot more i n lends ng bonding capacity for various uses, which meant it must be more cautious of each one. He did not like the smell of the one i n question, and asked if the attorneys for NCPA gave Palo Alto their rulings on NCPA's liabilities. Counci?member Cobb said the example was typical --it was done so fast that Palo Alto had not obtained any of that kind of i nforma- ti on. The attorney from NCPA stood up and said he could not say, but it sounded alright based on what he heard coming from the back of the room. Although he was reporting casually, it was basically what happened. Palo Alto was not provi ded with any fo1 low -up i n - formation. Senior Assistant City Attorney Anthony Bennetti confi rmed the si i - uati on as described by Cou nci lrnembe r Cobb. The NCPA resolution called for approval and issuance of the bonds if satisfactory in- formation was given to the NCPA. General Counsel, Martin McDonnell, who spent considerable time 1 ooki ng i nto the situation. The bonds were insured by both Letters of Credit and AMBAC insurance, and it was the opinion of bond counsel that there was no fi nanci al liability for NCPA in the project at all, regardless of whether the bonds were defaulted, and he approved the go ahead for the project. He issued a letter stating that with those opinions, NCPA was satisfied the bond issue could proceed. They were in the process of issuing the bonds on behalf of NCPA. Vice Mayor Levy pointed out that AMBAC insured the purchaser of the bond, but would look to the issuers for the money. AMBAC's insurance did not protect the issuer. Mr. Bennetti said although AMBAC's insurance did not protect the issuer, the issuer in the transaction had no ultimate liability for payment. The people who received the benefit of the funds borrowed would be liable to AMBAC. It was spelled out in the documents that there would be no subrogation right of AMBAC over and aagai nst NCPA. Mayor KI ei n wanted to move the item al ong, . but was unclear about Council's di recti on. Cou nci l membe r Cobb believed it was a dicey way for NCPA to oper- ate. He and Councilmember Sutorius discussed the matter a few days earlier. with Mr. Zaner and Director of Utilities Richard Young, but were still undecided about whether to pull Palo Alto's name out. Since there was a trade-off between money and princi- ple, he requested Council advice. Councilraember Renzel asked if the Washington Public; Power Supply System (WPP ;S) was told their investment was .risk -free. She . was concerned that Palo Alto joined NCPA for a specific purpose, and up to then, most occurrences were directed to that purpose. She preferred that Palo Alto make strong noises about not being party t.o the obligation, and was uncomfortable with the assurances of nonl i abi l l ty, Even if the City had assurances, it might still be sued and i n court .for a long time. Ms. Fleming said that afternoOn Utilities Department staff dis- cussed the matter with the NCPA ;legal counsel and was advised that if Council desired, Palo Alto's name could be •removed from the issue. The NCPA legal counsel would support the removal and bring. it up at that week's meeting. MOTION: Councilmember Renzel moved that Palo Altaic name ha removed from the Northern California Power Agency bond issue for the City of Firebaugh Project. MOTION FAILED for lack of second. ITEM #2I -A (0Lu ITEM #12), ADVANCED WASTE WATER TREATMENT FACILITY • • Councilmember Renzel said she removed the item from the Consent Calendar because when the matter went to the Finance and Public Works (F&PW) Committee, she understood it was strictly to look at rerouting the sewage outfall. The contract before the Council contained an elaborate proposal to build a lock across from the launching ramp to where the tide gates went out of the flood basin. She was concerned about that, and did not want to consider such a proposal. The proposed diked -off area would include 30 acres of salt marsh,, and was already a principal component in approximately four of the six beneficial uses that were identified by the Regional Water Quality Control Board. She saw no produc- tivity in destroying 30 acres of salt marsh, plus the salt marsh acreage within the lagoon area, to create a fresh water area. She did not believe a fresh water marsh would establish itself there since there was a seven foot elevation. The perimeter of the basin was currently steep because of past filling and the raising of the dump, road, and Yacht Harbor Point, and there was no way marsh vegetation would grow on the fringes. Ducks would propagate in either salt or,fresh marsh, and laid eggs in a habitat, which she did not expect would be created. There was a fresh water sup- ply currently in the flood basin and in the duck pond where the sewage stream outfall presently deposited. It was a red herring to suggest it would produce more wild fowl breeding areas because it would destroy 30 acres of marsh considered a principle benefi- cial use of the Bay. The only potential problem explored was algae growth. The 30 acres of marsh in the area that.. provided a lot of cover would be lost, and no cover would be provided in a big basin of water. The hydrologist's report stated that silta- tion was extensive at the point where the tide turned, which was the big problem in the whole area. The marsh used to trap it, but was cut off, and the harbor basin area now trapped it. A dike or gate or anything put across there would be the turning point --the silt would drop and the launching ramp and perhaps the flood basin outfall would be silted up. It was a risky venture with possible serious consequences. There was a mitigation in place in the lagoon to restore salt marsh, and if that area was cut off from tidal action, the mitigation would no longer be valid, A high cost was involved, and in the final Community Development Block ur°ant (COBU) permit was a commitment to restore four acres of marsh at Yacht Harbor Point. That could no longer take place, and was another serious problem. For those reasons, she did not want to see any proposal containing a lock study, but had no objection to studying rerouting of the outfall. MOTION: Councilmember Renzel moved, seconded by Fletcher, approval of the staff recommendation to authorize the Mayor to sign the contract with Waste Water. International to conduct a study on Advanced Wastewater Treatment Facilities and Effluent Discharge Alternatives, with the proviso that any reference to a lock, or a levee that blocks off tidal action to the area that now serves the harbor and the legc?on be deleted. PROFESSIONAL ENGINEERING CONTRACT Waste Water International Consulting Engineers Councilmember Bechtel said she understood it was a study for the construction of a levee with a lock incorporated, without any com- mitment. She did not want to flood 30 acres of salt marsh, .but did not understand how Councilmember Renzel assumed 30 acres would be flooded by looking into the implications of a lock. 4 5 8 2 5/21/84 SUBSTITUTE MOTION TO CONTINUE: ?:yor Klein moved, seconded by Witherspoon, to continue the item to June 4, 1984. Ms. Fleming said there was no problem in continuing the item. Councilmember Renzel said the report spoke of raising the level of the water to seven feet which would inundate everything there. Mayor Klein said that any discussion other than on the motion to continue was out of order. Councilmember Fletcher suggested Councilmember Renzel ask for more information, so Council would have more basis for making an informed decision when the item returned. Mayor Klein believed staff would do that, and suggested Councilmember Renzel discuss with staff what information should be produced during the two eek period. Councilmember Renzel said it was in the record, and she would raise the issues again when it returned. MOTION PASSED by a vote of 8-1, Sutorius voting "no." ITEM 21-B, (OLD ITEM #14) UNIVERSITY AVENUE LOT J PARKING GARAGE MOTION: Mayor Klein moved, seconded by Bechtel, to approve item 21-8 re University Avenue Lot J Parking Garage Assessment District AGREEMENT Jones, Hall, Hill and White RESOLUTION 6257 entitled *A RESOLUTION OF PRELIMINARY UTTERMIIAIIUN AND OF INTENTION TO MAKE ACQUISITION AND IMPROVEMENTS' RESOLUTION 6258 entitled 'A RESOLUTION PRELIMINARILY AP +a ER`S REPORT, APPOINTING TIME AND PLACE OF HEARING PROTESTS AND DIRECTING NOTICE THEREOF, AND DESCRIBING PROPOSED -<BOUNDARIES OF ASSESSMENT DISTRICT AND DIRECTING FILLING OF BOUNDARY MAPS' RESOLUTION 6259 entitled "A RESOLUTION APPROVING PLAITS OIiS s CALLING FOR SEALED PROPOSALS AND FIXING LIQUIDATED DAMAGES FOR FAILURE TO COMPLETE THE WORK WITHIN TIME SPECIFIED"' Mayor Klein was concerned about the legal fees listed, and recorded his dislike for the way in which bond counsel computed their fees in thatand other cases. It was inconsistent with the way almost all other legal work was billed, which was on .a time basis,. He had no way of knowing whether a percentage produced a huge profit or not for bond counsel. He was troubled that vir- tually all bond counsel bid on that basis. It was inappropriate, and he believed the next time any bonding came before the Council, it should look carefully for a bond counsel who: would bill . on the amount of time spent on an item. He was bothered :by the fact that the bill amounted to two percent on the first $2 million, or $4iJ,UUO; and 1.5 percent on the next $2 million, or $30,000. The whole project was approximately $4.5 Trillion, and the total legal fees were in the neighborhood of $75,000. Ms. Lee confirmed the charges of two (2) percent; one and one-half (1.5) percent; and one (1) percent, and the total fees of $8d,UUU. 4"5 8 3 5/21/84 Mayor Klein was bothered that Council had no way of gauging the charges. He asked the record to reflect that in the future, he would not vote in favor without given proof the market was ex- plored and no bids were received on any other basis, and he would want to know why that was the case. He believed there were law- yers willing to bid in the same way as all other legal work., Steve Casaleggio, attorney with Jones Hall Hill & White, Bond Counsel, said most bond counsels bid on a percentage basis. Con- comitant with that, every effort was made to ensure that an issue was sized appropriately, and as the process progressed, they would constantly reduce the size of the bond issue. By the nature of the work and the way the bond issues proceeded, they would be in- volved in the deal for approximately 15 or 20 years, depending on its total maturity, which made it difficult to give a total cost figure at that time. Their relationships with the City over the years had developed so that they were best served by using a per- centage fee, but that was at the discretionof the Council. Mayor Klein did not see the difference between that and the way any other lawyer did business with any other client. Mr. Casaleggio said their practice developed in a fashion that made it a different type of practice. Those who did bond work found it less efficient to work on an hourly rate and give ade- quate servicing, particularly in assessment financing. Mayor Klein was interested in how many hours were spent in com- parison with the amount billed, and presumed such calculations were made. Mr. Casaleggio believed , it could be done with past bond issues and the like, but in the present case where his firm would act as City bond couasel for approximately 20 years, it would be -diffi- cult to give a figure. Mayor Klein clarified that he was referri ng to one item. Mr. Casaleggio said since entering into the project in 1982 with- out any ultimate expectation of being hired, Jones Hall Hill and White easily worked several hundred hours up until they went to noF,l i c hearing. Mayor Klein said 200 hours at $150 per hour would be only $30,000. Mr. Casaleggio said he would h_aee to factor into that the taX side, which was an important part. The City was not getting just one lawyer, but a firm and the expertise of a tax practice. Mayor Klein said that was true for any law firm that billed for any work, and reiterated his concern. Work done over a period of time was not of concern to him, and he preferred -to be billed in five years at the rates then appropriate than pay money up front. He intended to follow up to see . where the City could go at the nextbond issue. 14UTION PASSED unanimously. ITEM C12, REgUE$T 4»' VICE MAYOR LEVY RE MAY 15 . LETTER FROM THE Vice Mayor Levy referred to a letter dated May 15, 1984 from the Youth Council, which was contained in the Council packet. The letter mentioned several areas in which the Youth. Council 'wanted to participate in the Substance Abuse Prevention and Suppression Program, a grant which was .applied for by the Palo Alto Unified School District and Palo Alto Police Department. Ms. Fleming advised that the Palo Alto Poi i ce Department had no. problem ;i f the Youth Council became involved along the lines out- lined. 4 5 8 4 5/21/84 MOTION: Vice Mayor Levy moved, ue‘vuded by Klein, to endorse the Palo Alto Youth Council's desire to participate in the Sub- stance Abuse Prevention Programs sponsored by the Palo Alto Unified School District and the Palo Alto Police Department and request staff to involve the Youth Council in the program along the lines of their May 15 letter. Vice Mayor Levy said his motion did not intend for staff to do everything the Youth Council asked for in its letter, but only that it work with the Youth Council and ask for its participation in a way staff believed appropriate fer the project. MOTION PASSED unanimously. ITEM *2:i, REQUEST OF COUNCILKEMBER BECHTEL RE "NEW" PERIPHERAL Imam Councilmember Bechtel said SB 1369 was originally scheduled to be heari.in the Senate Finance Committee that week, but was postponed. to Wednesday, May 30, 1984, before the next Council meeting. If passed, the bill would instruct the Department of Water Resources to construct a facility to move Northern California water to the south through the Central Valley Water Project with no environmental protections. The Peripheral Canal Project contained Borne protections, but was opposed by 80 percent of the County's residents. The new bill offered no protections for the Bay or Suisun Marsh and no guarantees of water quality. Since the bill would be heard soon, it was urgent to convey :opposition to the environmentally unsound proposal. MOTION: Councilmember Bechtel moved, seconded by Cobb, that the Council record its opposition to SB 1363 and direct staff to pre- pare letters for the Mayor to send to the appropriate legis- lators. Vice Mayor Levy opposed the Peripheral Canal but had trouble with the item. It was new to the Council a few hours earlier, and he had not had time to review the matter and did not know what SB 1369 was except for Councilmember Bechtel's quick review. He was willing to record opposition to the Peripheral Canal Project as proposed the previous year, and would continue to oppose any actions on the part of the legislature attempting to resurrect the essence of . .that Peripheral Canal Project, but could not go on record as opposing a specific Senate Bill he had not had time to review in detail. Councilmember Bechtel referred her colleagues to .page 2 of SU 1369, line 6, "wand would permit project facilities to be used to deliver- water from the federal - Central Valley Project to the service area of the Mid -Valley Canal." Page 3 contained the only reference to any kind of environmental controls, "...to preserve and increase fish and wildlife resources..." which meant referral to the Uepartment of Fish and Game. The Department of Water Resources was required to do the construction, and it was being Presented as an urgency item through the Governor's office in the hope of slipping it through. She considered i t to be of great concern to the area, particularly due to thelack of environmental controls and the concern of taking Northern California water to the South without adequate protections. MOTION PASSED by a rate of 8-0, Levy abstaining. AUJOURNME.WT Council .adjourned at 12:5U(a.t ATTEST: f APPROVED: 4 5 8 5 5/21/84