HomeMy WebLinkAbout1983-04-18 City Council Summary Minutes1
CITY
COUNCIL
MINUTEN
CITY
C>�
Pill
A&:TO
Regular Meeting
Monday, April 18, 1983
ITEM
Ural Communications
Minutes of January 24, 1983
Minutes of January 27, 1983 (Adjourned Meeting
January 24, 1983)
Minutes of March 16, 1983
PAGE
3 1. 4 6
3 1 4 6
3 1 4-6
3 1 4 7
Item #1, .Appointment of a Noonan Relations Commis- 3 1 4 7
sioner to. fil l the- Unexpired Term of Agnes C.
Robinson Ending March 31, 1984
Item #2,' Resolution Recognizing the Outstanding 3 1 4 8
Accofnpl i shments • of the . pa l o Alto High School
Academic - Uecath i an Team
Consent Calendar 3 1 4 9
Action
Item #3, Remittance Processing Agreement For Utility
bill Receivables
Item #4, Amendment to the Banking Services Agreement
Item 45, Agreement with Peninsula Times Tribune and
Palo Alto Weekly for legal and Display Advertising
Item #6, Rinconada and Mitchell Park Pool Renovation
C I P 82-4u)
Item #7, Additional Authorization for the -Page Mill
Road Stabilization Project 7 Change Order to .Con-
tract with Spi r -;z orporatiotl
1*eii: #8, Cable Compromise Legislation Proposed by
the National League of Cities and the Nafii-coal Cable
Eelsvision Associat.ior;
Agenda Changes,- Additions_.and De-letions
-- 1-teon #9 Loan ,. Request from Friends of the W nter
Club (Continued from 2/28/83)
Item l#1u, Public 1#earin_9 Planning' Commission
Kecolimienda .}tion re.' ilAp canton of arr^asco & Smith
- for a Zone Change at -- Property Locaited at 4145--416,1
t 1 (:a M i no> Way
,I.t-ere Public Works CoOmittee
-RRecornme;ndaition .Transient 0tcupanc r Tax
3 1 4 8
3 1 4 9
3 1 4 9
3 1 4 9
3 1. 4 9
3 1 4 9
3 1 5 U
3 1 5 0.
3 1
5 U
!ELM PAGE
Item 11, Public Hearing: Application of Architec- -- 3 1 8 -9
tural -Design Group fo`r a Zone Chanye at 401-419
Webster Street and bill. -608 Lytton Avenue
Item #12, Public Hearing-: Application of the City 3 1 '8 9
of Palo Alto to Extend the (P) Pedestrian Shopping
C,ombininy District
Item ,#13, Finance and Pubi is Works Committee 3 1 9 0
Recommendation re Barron Park Revenue Bond
Uefeasance
Item #18, Mosquito Abatement Contracts with Santa- 3 1. 9 0
Clara County
Item #19, Sewer Collection- System - Inflow/lnfil- 3 1 9 1
tration Study - Phase 111 Authorization
Item #22, request of Mayor Bechtel re Resource 3 1 9 2
Center for Women - lUth Anniversary
Adjournment 3 1 9 2
Regular Meeting
-Monday, Apri 1, 18, 1983
The. City Council of the City of Palo Alto met on this date` in the
Council Chambers.. at City Hall , 250 Hami 1ton- Avenue, at 7:40 p.m.
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PRESENT: Bechtel, Cobb, Eyerly, Fazzino, Fletcher,
Klein, Renzel, Witherspoon
ABSENT: Levy
Mayor Bechtel advised that many items were on the agenda, and that
completion of it was not assured. A considerable amount of public
comment was expected on some of the item's, and at 10:30 p.m.,- the
Council would decide which items to discuss after 11:00 p.m.
URAL COMMUNICATIONS
1.
Gloria Brown, 176b Fulton' Street , said she attended the Coun-
cil 'meeting in order to turn in the petitions which repree
tented 2,000 citizens who wanted to preserve the Midtown com-
Munity's businesses and services. She undertook the effort
alone because sne did not have the time to organize a campaign
since most of last month was spent dealing with her basement
flooding, and the consequences of the storm. The petitions
sat quietly on the counters of 15 Midtown businesses, and
those who signed it represented a tip of the resident support
for the Midtown business community. Hundreds of petitions
were submitted by individual businesses and services, and she
believed that there were 6,000 si.ynatures on the Century
Liquors petition, 3,000 on the Winter Club's, 2,500 for the
Veterinary Service, and others submitted on behalf of the
dance studio and Willis Photo Lab. ce Without any campaign,
2,000 citizens asked to save an area which they believed to be
of great benefit to the community The issues which brought
about the 1968 zoning change no longer existed and the situa-
tion and -sentiment were completely changed. She urged that
the City Council place the Midtown area issue on the agenda
for next week, April 25. It would be the Midtown's last
chance to savee-several bus. nesses which were strongly support-
ed by the community before they were forced to close on May 1.
For those who deeply cared about the future of Midtown, she
asked that the matter be agendized for April 25.
Vice Mayor. Fazzino said he realized that it was not customary to
respond during Oral Communications, 'but assured Ms. Brown that he
and Councilmember Cobb intended to agendize an eitem for next
week's agenda which related to her concerns.
l` MALI F E S OF JANUARY 24, 1983
MUTION: lime Neyer-.Fazzino moved, seconded by Fletchere_, a :prov-
a 1 of true 1471p0 es .of January 24 1983 as submitted
MUT I QK FASSEO uneM elaus l y , - Levy absent
MI'IUTES . OF JANUARY 27 1983 ADJOURNED MEETING OF JANUARY 24,,
MOTION: -Y,ice Mayor Fazzino melted„ seconded by Fletcher, approv-
al of the lilwutes of .January _,- 2`7, 1933 (adjourned -meeting of
J4nuary 24, 2-983 )_ as submitted.`
NOTION PASSEO"eaanimously, Levy absent.
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4/18/83'-_
M1HU LS OF MAkCH 1b, 1983
Lounci lmeinber, Renzel submitted the following corrections:
1'aye: 13, second parayraph, third- line, change the remainder of the
paragraph to' read: "Stanford ;plays a quasi -.governmental role with
respect to the campus lands by providing roads, parking, uti I ities
and a variety of things. She asked Whether Stanford had addressed
its quasi-yovermmental role in providing housing, as opposed to
its money making role as for example, in leasing the shopping
center. "
Pa a 1;;, .fourth paragraph, third line, change the line to read:
an ord had built other projects which were housing purely for
the "
Page 14, fifth from the last paragraph, last line, add after
- an ord earned $44,3O0" the following "and were desirous of
my in Stanford West."
liv-
Faye ,13, sixth full paragraph, last line, change .the sentence to
tea the "K" unit was four cars ---one for each bedroom."
MOTION: Vice Mayor Fazzino moved, seconded by Fletcher,
approval of the Minutes of March 16, 1983, as corrected.
MOTION PASSEL) unanimously, Levy absent.
ITEM #1, APPOINTMENT OF A HUMAN RELATIONS COMMISSIONER TO FILL THE
u - C. K11BANSUN 01111113 MRE(L,H Si -1984
Applications were received to fill the unexpired tern of Agnes C.
Robinson, and the Council voted on the complete list. The first -
person to receive five votes would be appointed. The following
people -applied:
ANISGUARU, HARRY
ATKI NSON , DOROTHY -G.
BARAZE , HARVEY A.
L3IUDLECONL E, ARTHUR C.
LITTER, ELAINE BARRETT
NISItUE, J. RANDALL
PARKINSON, WILLIAM J.
RONDELL, THOMAS
SIDLE, ALLAN C.
VERNON, STEPHEN fR.
WHITE, EDWARD S.
FIRST ROUND OF VOTING
City Clerk Ann Tanner announced the results of the first round of
voting:
VOTING FOR WHITE: Klein, Witherspoon
YOUNG FUR RUNDELL: Cobb, Fazzino
VOTING FOR SIDLE: Fletcher, Eyerly, Bechtel
VOTING FOR VERNON: Renzel
Mr. White received: two votes, Mr. Ror.del.l received two votes,
Sidle received three votes, and Mr. Vernon received one vote.
SECOND ROUND OF VOTING
Ms. Tanner announced the results of the second round of voting: _
VUI1tru FOR SIDLE: Fletcher, Eyerly, Renzel, Fazzino, Bechtel
VOTING FUR WHITE: Klein, Witherspoon
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VUFING FOR kutiUELL: Cobb
Mr. Sidle received five votes and was appointed. Mr. White
received two votes and Mr. Rondeli'received one.
Mayor Bechtel said that all applicants for the -Human Relations
Commission were excellent and on behalf of the Council expressed
appreciation for the interest - in serving to an important volunteer
commission. She encouraged that applicants continue their efforts
to seek appointment to the Planning Coninission or on other
committees or commissions. She conyratulated Allan Sidle on his
appointment.
HEM #2, RESOLUTION RECUGNILINU THE OUTSTANDING ACCOMPLISHMENTS OF
HE PM
H1GH SC
MOTION: Vice Mayor Fazzino moved, seconded by Klein, approval
of the resolution recognizing the outstanding accomplishments of
the Palo Alto High School Academic Decathlon team.
RESOLUTION 6107 entitled "RESOLUTION OF THE COUNCIL OF
IHL cirrlIrnriuu ALTO RECOGNIZING THE OUTSTANDING
ACCOMPLISHMENTS OF THE PALO ALTO HIGH SCHOOL ACADEMIC
DECATHLON TEAM AND THE TREMENDOUS SUPPORT THEY RE-
CEIVED FROM PALO ALTO HIGH SCHOOL TEACHERS"
MOTION PASSED unanimously, Levy absent.
Mayor Bechtel congratulated the -Palo Alto Decathlon tears and their
teachers, and- introduced Scott Dinwiddie, William Northway, Tom
Fiddaman, Simon Hawkins, Noya Tarnopolsky and Jim McDonnell —the
members of the team --who won the Santa Clara County competition in
November by finishinn-in first place. Many extra hours were spent
in preparation for the national competition, taking tests in areas
such as conversational skills, essay writing, formal speech,
economics, English literature and grammar, fine arts, mathematics,`
physical and biological sciences,, social sciences and a super quiz
on The Housing Crisis." She commended their coaches, John
Thompson and Shalah Wolfsohn, and other Palo Alto teachers who
devoted a si yni f i ca nt amount of their own time. The Palo Alto
Hiyh School Decathlon :`earn culminated their hard work and
dedication by representing -the State of California and winning the
second consecutive National Academic Decathlon_ Championship-,
finisiriny first by -2,5UU points ahead of second place Ohio. The
Palo Alto Hiyh School students won 23 gold, 3 silver -and 4 bronze
individual medals in the national competition, and took .top honors
in every aca1emic category. , The school, alternates, Melissa
uinwiddie, Anne Corniny _and Jennifer Skvrnick were the top
alternates of all the states who competed. ' The Palo Alto City
r.ounci1 recognized the outstandiny accomplishments of= _the Palo
Alto Hiyh School Academic. Uecathlon 'Team, in particular` its..
success i n winning the second,.- consecutive National Academic
Uecath l on . `Charnpl on Ship', The Council further recognized `- -the
tremendous contributions made by Palo Alto High School_.- teachers in
preparitiy the students forn the. competition. The Council,- on
oehalf of the people of Palo Alto,, expressed its congratulations
to the Pala Alto High School Academic Decathlon- Team on its
extraordinary accomplishments.
C.UNSE€Il CALENDAR
MOTION: Councilmember Fletcher moved, seconded by Fazzino,
approval of Consent Calendar Items 3 through 8.
Action
ITEM r qs REMIfTANCE PROCESSING AGREEMENT OR UTILITY BILL
Ab LLS ( R:ZZL: )
Staff recommends that •Council authorize the Mayor to .execute the
remittance processing service agreement with National Data Corpo-
ration for processing utility bill receivables.
RECEIV-
REMITTANCE PROCESSING SERVICES AGREEMENT
National Data Corporation
CISCO Division
i(LM #4, AMENDMENT TO THE BANKING SERVICES AGREEMENT (CMR:236:3)
Staff recommends that Council authorize the- Mayor to execute the
amenanient to the banking services agreement with Crocker;. National
bank.
ITEM
AMENDMENT NO. 1 TO AGREEMENT FOR BANKING SERVICES
Crocker National Bank
#5, AGREEMENT W1 H PENINSULA TIMES TRIBUNE AND PALO ALTO
It i s recommended that the City Council accept the bids from both
the Peninsula .Times Tribui3e.and Palo Alto Weekl and direct the
City erg o en er in o agreemen s wi h ie Peninsula Times
Tribune for -legal and display advertising not to exceed a total of
7 71M in the 1Z -month period from date of execution, and the
Palo Alto Weekly for legal and display advertising not to exceed
7-5;t TtrTT tA-ie 12-month period from date of execution,
AGREEMENT
Peninsula Tres Tribune
AGREEMENT
Palo Alto Weekly
FILM LM #b R I NCUNAUA AN) MITCHELL PARK POOL RENOVATION - CI P 82-40
Staff •recommends the following:
That the Mayor be authorized to execute a construction con-
tract with T & F Construction Co., Inc. in the amount of
$b3,U0U;
Z. That staff be authorized to execute change orders to the con-
tract of up to $5,00U,
AWARD OF CONSTRUCTION =CONTRACT
T & F Construction
,I.TEM #7 AUDITiONAL AITHURILAIIUN FOR THE PAGE MILL ROAD
Staff recommends that _ Counci 1 autliori ze Staff: to- execute :change._:
orders of $.19 id1 to the rontrac„t Frith' Spi rz Corpor~anion .:(Contract
No 4Z7U) for the Page 10 11 Road:Stabi 1 ization Project.
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ITEM #8, CABLE COMPROMISE LEGISLATION PROPOSED BY THE NATIONAL
insfuti AssuGIAt iolf
Staff recommends that Council authorize the Mayor to write a let-
ter to the Senate Commerce Committee and to other appropriate leg-
islators stating Palo Alto's opposition to the proposed substitute
leyislation.
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MUTII�Ii PASSED. -unanimously, Klein not participating" on Item 151
Agreements With Peninsula Times Tribune and Palo Alto Weekly for
Legal and Uisplay Advertising, Levy Absent.
AGENDA CHAN( S, ADDITIONS AND DELETIONS
Vice Mayor Ea zz i no sugyested that . it would be prudent for the
Council to decide which items did not require action tonight so
that the people in attendance would have an idea about which items_
the -Council must- deal with tonight.
Mayor Bechtel responded that she planned to hear Items 9, 10 and
11, and if it was acceptabi.e to the Council, she planned to move
item #15 forward. She believed that some of the items could be
dealt with in two minutes.
ITtLI1 #9 LOAN RE UEST FROM. FRIENDS OF THE WINTER CLUB Continued
rom
City Financial Planning Administrator Gordon Ford said that staff
met with Marvin Lee of the Friends of the --Winter Club on numerous
occasions since February 28, and the report was prepared with Mr.
Lee's knowledge and some of the additions Mr. Lee requested. He
believed all of the information was contained in the report, and
was ready to answer any questions.
Barbara Deearo, 164 Heather Lane, said that if anyone doubted the
community -support for the value of ice skating to Palo Alto's
children, -the last niyhts of the Winter Club's operation would
have changed their opinion. The value of the club was clearly
evidenced during the last week as many children and.. a couple of
adults strove to pass their tests to earn badges as measures of
their achievement. They were supportive of one another and it. was
an excitiny experience to see. Community support was evidenced by
the oversupply of people who participated in the final show, which
necessitated its beinr held on two nights, and when people walked
to. the Winter Club and stood- in the rain to watch the final show.
The participants in the final Show ranged from a group of 80
younger children called "Nasserc ise" up to a group of about 10
add i is who- -ca l l ed themselves "The Dull Blades." When Duncan
Wi l i iaraa set out to prove that outdoor ice skating in California.
was feasible, he not only succeeded, but started a business that
became a service to the community and a Palo Alto tradition. The
Winter Club was a place for family recreation and a place for Palo
Alto's young people to "hang out" without getting into trouble.
It was a place_ where many children:_ had the opportunity to exper-
ience success achi evement and self -worth as -they worked to earn
their badges as oppoSod to sitting in -front of the television.
Santa pa rents worried about where their children would "hang out"
now, others worried_ about how . they could afford the additional
time and money to ferry .their echildren to .other rinks, and most
cn'i ldren`would have to yive up ice skating.' Recreation was impor-
tant to the_ quality of lifeetin Palo Alto, and her tax dollars' were
used to pay .for recreational programs in which her. family did not -
participate. .She was. -sure that many skaters at the Winter:_ Club
sere: -in the same ".position. Many people_ strained their budgets 'to
dnd contributed to show their support. :Some of- those
who`centri_buted no- longer had children skating at the Club, but
bel:ieved it was important for Palo Alto's children to continue to
have' the Winter Club available as a resource. She realized that
the City. was under b'uayet constraints ' and' trying to avoid..any new
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4/.18/83
projects at, the present time. However, the Council already voted
em,ore money than was requested to pay a consultant for advice on
cable television. `;he asked the Council to.consider the possibil-
ity of pleasiny both segments of its constituents ---those who would
like to stay horse' and watch television and those who would like to
be out participating in a sport --by earmarking any moneys earned
by the City through cable television to support outdoor ice skat-
iny in _Palo Alto. The Friends of the Winter Club asked the Coun-
cil to support thy continuance' of ice skating at _ its present site
until long=range Mans could be implemented. The existing facil-
ity could inexpensively meett' a community need, but once it was
torn down, it would be gone forever.
David Speer, 665 College Avenue, said he was, a member of the
Friends of the Winter Club for the past one and one-half years, a
Member of the Stanford. Ice Hockey and Skating Club, and currently
-was Assistant Coach of the Stanford Ice Hockey team, He requested
the Council to address the long-term problem -of a facility to bet-
ter serve the skating interests of the -community as a whole, He
suyyested that perhaps a form of partnership between the Friends
of the Winter Club and the City could be established for a long-
term capital project. He realized that a short-term solution was
necessary, but for skating to continue in Palo Alto for a long
tirine,' a new facility would benefit .more groups --figure skaters,
curl iny, speed skaters, public skating and ice hockey. He saw the
partnership as benefiting both the City and the community. It
would provide the City with an oryani zat i on', to do the ground work
fur the project and would provide the community groups with lever -
aye in private fund raising efforts. The request did not ask the
City to do ail the work --the Club wanted to do the work, but
required City support for that type of measure.
Carol Vesecky, d31 Marshall Drive, said she wrote a letter to the
Council, which was contained in their, packets (and is on file in
the City Clerk's Office), which included an excerpt from a novel
and later television drama, "A Town Called Alice." The program
was shown over a year ago on Masterpiece Theaters, and the excerpt
emphasized that the core meaning of the drama was the memory of
her childhood visits to an ice skating rink in South. Hampton,
England. The young woman in her later life was a prisoner of war
of the Japanese in Malaya during World War I I. when she and other
women and children struggled to survive under conditions of dis-
ease, filth, hunger and mosquito attack. ..The drama wa-s fiction,
but much fiction was based on: fact. Ms. Vesecky also had a cher-
ished memory -of an ice skating rink in her childhood located at a
community.outdoor rink in Wisconsin. Coincidentally, it was the
same rink. where Ouncan Williams and his family skated before mov-
ing to Palo Alto, and the one whose community recreation spirit
inspired him to bring it to Pal o Alto, "Bring something good out
here from his former home in Wisconsin." She spent several years
I i vinyabroad and in al l her travels, she had a . rock solid founda-
tion of happy childhood memories on which to,base her adultelife's
work. Many of those''memories were associated with the ice skating
rink where she skated with her friends during the winter, and the
Swimming beach where they swam in the summer. As a result of hav-
ing lived in India, she --devoted much of her free time .to fund
raisiny for organizations that promoted development and fought
hunger in third ,world countries. This Was,the etime she
allowed herself to become involved in a local issue. Although She
had `-only been involved for the ,paste several weeks, she belie ed
that Palo Alto could afford. the $40,000 per year or_ less At Would
likely take to keep the rink going. Further,- she believed _that
the $40,000 per year could be cut considerably by various measures
including volunteer help. It , the Chi l.dren' s Theater could _-use
Volunteer laber., -- so, .could the Friendship ..Pavill ion. Even if
$40000 were to bean ongoing subs:idy,' it 'would be*ell invested
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4/18/83
.and reap rewards many times over An the cherished memories of the
future leaders that Palo Alto's young people were likely to he-
cone, as- wel i as in their positive yrowth and social development.
Keydrd my control of the ice rink next _yea.r, she suggested that a
board be established to set up the rink's structure. It would
have to be made up of those following types of people:
1
1. "Keenists' who
that it worked
because they w
2. People who co
people could
wise, the ci
being such a
Ms. Vesecky sai
February that t
raisiny effort
ceived pledge
pledged from
-votes without
make ice ska
short and to
Sain Sparck,
skatiny in
had a yene
needed.
existiny
The chanc
whereas t
p ,ace--tn
of skate
action m
Alto, b
from be
resourc
suppor
would put in real time and effort to �er,.sure
either because they were _ skat.ers themse I yes or
anted it possible for -others to skate; and
uld work toyether. She believed that Palo Alto
pull together and form a working group; other-
tizens could stop conyratuiating themselves for
n ideal community as was presently the case.
d that with regard to Mayor Bechtel's suggestion in
he Winter Club/Friendship Pavillion implement .fund
s, she was as pleased' to- report that they had re -
s which amounted to $5,435.50, and` nine children
between 50 cents to $25. She urged the Council to
further delay, to commit . the city of Palo Alto to
tiny a part of its recreation program in both the
g terms.
4099 Laguna, also supported the continuance of ice
Palo Alto. He was pleased to see that the staff report
ral statement of support, but now specific action was
He said it would be much less costly to preserve the
acility on Middlefield than to build a new facility.
e of establishing a new ice rink at .this time was low
he infrastructure of the Middlefield operation was in
e physical plant, the instructors and a large collection
rs of al l ages. He urged the Council to take whatever
iyht be necessary to allow ice skating to continue in Palo
ut to take that action now to keep the closed Winter Club
i ny -demol i shed, and to preserve the excellent recreational
e which served all age groups of the City,: and was widely
ted.
Steve Gardner, 1870 Middlefield Road, said the Friends of the
Winter Club tried not to deluye the Council with speakers, but
believed it was necessary to reiterate some points which had been
wade in prior meetings to show the' broad base of support which
existed for outdoor ice skating in Palo Alto. Outdoor ice skating
was unique-- to -Palo Alto, and served recreational` skaters of all
ayes --senior citizens, families, teens and small children. It
also served serious skaters —those who were teaching and learning
for professional work --and could serve specialty skating groups
and many. other organizations. Further, the facility could be used
more broadly with a-`--range—of activites in the spring and summer.
Still, the focus was on the children of Palo Alto --the ones who
benefited most: by. the facility. Children were the major users,
and through lessons and parties, _actually were the' major sources
of income. Most;importantly, they would be most affected if the
current facility were permanently closed; They „might not be able
to get: transportation the extra miles to an ice skating rink at
another -location, and their prime skating time was limited, to
after scnool and before dinner. The present location was_ within
reach of chi tdre.n throughout the City by SamTrans-and: getting them
there did not requi re a superhuman effort on the part of the
. parents. It was pointed out in the February 28 meeting of the
City Coo,ncil that maintaining-.farily-oriented ice skating Anilajo
- A_l to, ,re+qui red, solutions to both tne'- short, and long-term problems.
The shirt=term meant :thee continuance of, operations at the current
site' while. the search for an economic - long-term_. solution was . pur--.
sued. Ifea pa rtnersh,i p of the City and all ' the interested groups
could be established, they requested a_ twofold commitment : from the:-
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1. To commit a subsidy of $]. per skater in the short—term not to
exceed two years; and
2. To begin work on the. long -.term solutions•immediately._
,lack Morton, 2343 Webster Street, was an accountant and a member
of :the Trust for Community Skating. During the past two -weeks,
the Council had again been made aware of the public support, for
recreational ice skating. Over 300 individuals and fa -nil lies had
made contributions and requested the Council -' to consider making
ice skating a permanent part of the. City's recreation program.
Those peoples' commitment -to community skating was not n - just a
desire to preserve a recreational program which like AYSO had wide
parenta 1. support or e4hich was second only to Rinconada in publ ic_
usage. The program was unique because it provided a community
program, The :Winter Club provided an environment in which - fam-
ilies with other ind?vidual s, could meet and skate together as
neiyhbors. The continuance, of the unique program was threatened
by a number of almost overwhelming obstacles. The facility was
scheduled for demolition on April 30 as required by the terms of
the lease. Should demolition be deferred, .future lease of the
facility was tied by the landlord to consideration by the, City of
their zoning of the Shei 1 Service Station. Mr.:` -W;11 Tams required
that.,. plans for liquidation of. his equipment and inventory be
finalized within the next ten days. The Trustee's believed that
the first step towards a solution of the difficulties was already
undertaken. Mr. Wi 11 iam:; agreed to place the demolition costs in
escrow. The Trustees of the Trust for Community Ice Skating took
the second step by not only undertaking to again show the commun-
ity's support, but have collected sufficient funds which could be
used to assure Mr. Wi 11 iarrms the liquidation value far the skates
and .equipment, which were indispensable to the continuation of the
proyrau . Additionally, they would submit to the Council a report
on -the cohesiveness and financial viability of community ice skat-
iny, including a specific operating plan for the coining season.
The front of the report contained a two sentence correspondence
from the "Y" which arrived too late for the correlation process
that was done by volunteers. The third step in resolving the dif-
ficulties requi 'ed Council action. It would require that staff be
authorized to immediately' stuffy the zoning question and initiate
the proper discussions with Mr. Peery. Preliminary discussions
had been undertaken, but community members were in no position to
represent the City. At its .February 28 meeting, the Council set
certain conditions before it would..agree to further consideration
of the `con ti nuance of ice skating, in Palo Alto. The Trust for
Community Ice Skating bel ieved that those conditions were f€il-
f i 1 rede and now it was time for the Council to clearly demonstrate
its commitment to the community. _He deferred to Lynn Winkle to
male the proposal
Counci lrnember Klein asked for an explanation of the connection
between the Trost for Community eIce Skating in Palo Alto and the
Friends of the Winter Club.
Mr. Morton responded that the Trust was an independent community
based organization. He suspected that if anything related them to
the Friends of the Winter Club, it was the anxiousness to ensure
that the facility not be demolished prematurely. There was no
direct connection between ,the Trust and, the Friends; in fact, the
Trust had undertaken, complete separationand independence.
Lynn Winkle, 3347 St Michael Court, also represented the Trust
for Community lce Skating in Palo Alto, and said that the last
time thecommunity skating issue was presented, the Council made
_it cl-ear that any proposal's, for -.the- .continuance of skat,in9 in Palo
Al to needed- to be supported by Comprehensive and coherent informar
tion_ regarding the proposed, operation of such a; skating facility.
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.The Trustees of the Trust for Community Skating believed that con-
tinuing skating- in Palo Alto was a dual project; _and under very
'tight time constraints and -a few. obstacles, prepared a proposal
both from an historic and projected viewpoint. She presented a
document which contained a detailed analysis of the previous
recreational engineering operation at the Winter Club and their
proposal for the continuation of ice skating In the City. She
asked the Council to note that the appended YMCA letter was not
with the rest of the supporting documents because it was a new
item and was not received in time to be colleted with the rest of
the package. She believed the package would merit further study.
A tremendous amount of time and effort was put:into it and the
Trust hoped it answered many of the questions raised by the Coun-
cil previously. She deferred to Marilyn Eaton- whose mail, respon-
sibility was to coordinate fund raising efforts, and who would
present supporting information regarding the Trust.
Marilyn Eaton, 690 Hermosa Way, Menlo Park, said she was raised in
Palo,Alto, and was employed in Palo Alto by the Winter Club for
the past 12 years. Two weeks ago, the Trust set a goal to try and
show the Council the widespread community support for the Winter
Club and for continued ice skating in Palo Alto. The goal was to
raise $10,000, which would be done in trust in cash. This morn-
ing, the goal had been exceeded and $11,025 raised, and this even-
ing, it had risen to $11,550, all of which money was in cash, in a
trust fund, for use as needed to maintain any facility that would
continue in ice skating. Other ideas, in terms of fund raising,
could be implemented in the future if the City decided to assist
in the maintenance of a short or long-term skating facility.
Those ideas included skate-a-thons, if a rink existed in which
that could occur, and in fund raising with some of the corpora-
tions which could possibly match grants with the amount already
raised through contributions. The support was there, and only a
small portion had been tapped. About 800 families were at the
Winter Club, and they had !attempted to reach only a small portion.
They used as much manpower as possible, but two weeks was a lim-
ited amount of time. She believed that as they progressed, they
could easily gain a lot more money from those who had not yet been
contacted. Some of the foregoing information was listed in their
report on pages 18, 19 and 24. -The only addition was the figure
of $11,550.
Councilmember Cobb said that the Council heard about another fund
raising effort earlier which indicated that the sum of $5,000 had
been rasled, and Ms. Eaton spoke in terms of in excess of $10,000.
He asked if those moneys were different, which would suggest a
total of about $15,000.
Ms. Easton said she believed the moneys were different. A few
might have contributed to both, but the money raised by the
Friendship Pavillion was•in terms of pledges, and the money raised
by the Trust was in cash. The bottom portion of their fund rais-
ing item contained a letter to the City Council, and this morning,
about 2.78 had been turned in with -signatures from people who had
contributed funds, and an additional 46 were turned in tonight.
Rick McMichael, 79 Crescent Drive, represented the. Trust. for Com-
munity Ice Skating, and said he worked with Jack Morton in dis-
cussing the situation of the existing lease with Dick Peery. He
was available to answer any questions the Council might have. He
supported Council efforts to. support the group, and believed that
a temporary solution would be to use the existing facility until a
long-term solution could be found.
Dave Thornton, Associate Executive Director of the Palo Alto: YMCA,
said that whereas the YMCA in its official capacity through its
Board of Di rectora had not Considered its relationship to the pos,
sibility of the continuance of -community skating in its- present
location, there was a. lot of interest on the part of its staff and
members that the YMCA might have some relationship in the future
should it continue.
Alan Bell, 2125 Emerson, said that a survey of the Winter Club's
users was done to find out how many people who used the Winter
Club were from the Palo Alto area. There were several categories
of members, the first of which included people who bought tickets,
took lessons and just paid their $7 to skate. It was found that
76 percent of those members came from the Palo Alto or Stanford
area, which percentage was higher than most other activities.
Mr. Morton tried to impress the importance of the Trust on the
Council. The Trust was in a dilemma --it could not go forward with
any negotiations without some demonstration of the City's willing-
ness to see what it could do to make the facility survive. Mr.
Williams had already arranged for the sale of much of his equip-
ment, which would have begun last Saturday. Those sales were
deferred for one week, and it was important for the Council to
provide some demonstration of its: position on the i;►sue.
Councilor ember Cobb said there appeared to be two very interested
and energetic groups of people interested and concerned about sav-
ing the ice skating facility. He asked if those two groups could
work together to multiply the efforts.
Mr. Morton said there were rro problem on the part of the Trust
about joint efforts, The problem was not seen as lying on one
side of the barrier, but rather on that side of the barrier. The
future was out of their hands. They believed they had done every-
thing humanly possible to ensure that Council had enough informa-
tion to make some choices, and that the future was up to the
City.
Steve Gardner, 1870 Middlefield, said the Friendship Paviliion
would welcome that opportunity.
Mayor Bechtel said she was very impressed with the work done by
both organizations and was overwhelmed by the amount of informa-
tion presented. She realized that everything was done with volun-
teer labor and was impressed that over $11,000 was raised in less
than two weeks' time. She was concerned that the Council was fre-
quently told that it was up to them" to solve a problem, and
pointed out that the land on which the Winter Club was locate was
not owned by the City of Palo Alto, but rather a private individ-
ual. According to the, information received, Mr. Peery believed he
needed a zoning change or something concerning another piece of
property --not the Winter Club's location itself. An item which
appeared on the agenda several months ago requested a continuance
on the amortization period for the Shell Station. She asked the
City Attorney to elaborate on the situation.
City Attorney Diane Lee said that the only procedure available at
this point would be a rezoning. Some Correspondence had suggested.
temporary rezoning, but no such thing existed in Palo Alto. More-
over, the suggestion of a "use variance" also did not exist in
Palo Alto. The City's variances were not for uses, but for devel-
opment standards —setbacks, height, etc. Rezoning was the only
applicable procedure, and if approved, would not be temporary.
Mayor Bechtel clarified that if the property were rezoned, it
would be forever and would run with the land --not the facility. A
member of the public suggested that the zoning :issue be referred
to staff. She believed it/should be referred to the Council, who
were the pol icymakers on zoning. She was not willing to tie the
Winter Club to a zoning issue --the property was already zoned
multiple family housing and the Winter Club could remain in that
l ocatl on if the members of the Trust were able to _ work out an
arrangement with Mr. Peery. She believed that in the goodness of
PSr. Peery's heart and for the' benefit of the community, _ that
arrangement could be worked out,
Councilmember ryerly believed that Mayor Bechtel raised__ the points
he was yo.ing to make. -The proposal indicated that, Mr. Peery was
attempting to put the responsibility for the benefit of the Winter
Club on the Council, but he reminded Mr. Peery and the supporters
for community ice skating that the Council addressed an extension
of the amortization period for the Shell Station, to which Mr.
Peery was attempting to tie the Winter Club. That extension was
not sucCessfulst If the Counci 1 were to support a rezoning study,
he asked. how. long, it would take to be returned.
Director of Planning and Community Environment Ken Schreiber said
that, if the referral was made to the Planning Commission, it would
take approximately four weeks to get it to the Commission, another
week at the minimum to yet it back to the Council,- and if an ordi-
nance was successfu 1 ,: it would require a second reading, and alto-
gether it would take between 11-12 weeks.
Councilmember Eyerly said it appeared to him that the supporters
of community ice skating needed to speak with Mr. Peery to obtain
a short-term usage agreement for the present Winter Club faci 1 i
ties, without having it to the Shell Station. In terms of the
demolition, it would be necessary to have that . requirement
released by Mr. Williams for at least the time it takes the Coun-
t
ci l to consider the matter.
Councilrnember Fletcher reiterated that the zoning went with the
land and not the use, and that any rezoning would not be tempo-
ra ry. The Director of Planning also described a procedure by
which the study regarding rezoning would take place. Rezoning the
property would not guarantee that the property owner would retain
its status quo use. It could be used for any commercial use if it
was rezoned commercial, or it could be sold and the new owner
could put the location to .some other .use. There was no guarantee
by the zoning action itself that the Winter Club would be `2ro-
Tected. An arrangement would have to be worked out between the
Winter Club and the property owner. If the information received
by the Council tonight was correct, presently the owner had no
plans to demolish the station, and it would remain _ a boarded up
faci 1 ity in 1983.. Once the Winter Club was demolished, the lot
would remain vacant until 1993. She, suggested that the owner
might want to gain:a nominal income by negotiating an agreement
for the Winter Club to remain in its present location for at least
the time being. She could not see any advantage in having the lot
remain vacant. She did not believe that the rezoning issue -itsel f
would solve the. problem.
Counci lmember Cobb -said there had been ample testimony as to the
tremendous public support to continue outdoor ice skating in Palo
Alto. He was the one who' attempted to extend the gas station's
amortization district, with the hope that it would ultimately
serve the ends of the Winter Club, and a good planning end. The
attempt was unsuccessful and he dot.bt.ed - that it hwould change in
the. future The question was what the,_ City_` could dog. The City
coula: _support .the -$175000 loan request -which was the specific
agenda„ i.terrr before the Counci J , but he _ eras unsure .about whether
thettheCouncill could act upon that .tonight. The City could Tai so take
.some action to maintain the economic incentives ' for the landlord,•
which:bas -.ically required the Council to -rezone-the property- in
:perpetuity, which. he did not=be1_ eve_ was :who t- the landlord `wanted.
The City could- support a proposal to sub.sid-ize $1 Per skater; or.
find son ther mechanism by which: to make. some_ kind of ---City tom
-
Mit ent - to -support-..the skating .p.rogr�arn,; ope_ rationally. and/or
otherwise, He' torn iraded -that--thRe Joan request ° itself _was u_nsup:-
portable because. rt' raas niRot econoi cally and -operatiornally..sound
and did .not meet the-- tests rthe Council.. had. for Joan _requests of,
'
that size .. or. any. other si e. lkezon;i ng. -was -a diff process
wwhi ch _,opened up owner problems - of a',. perraane.nt-re.zonl ng. The sub-
S:idy of $1 per skat er. , did not provide the -kind -of 'operational: -
detail the Cit,f needed to provide support. The -:fourth' al-ternative
for,some, other kind.- of City support was a policy ..decision_ -which he
did not believe was before the Council . He believed it was clear
that some type of signal was necessary from the Council in order
to keep the program alive. Further, it was also clear that if the
structure -was torn down and if the ice skating equipment was sold,
there would be no ice skating in the short-term over the next few
years, and therefore, none in the long-term. Somehow, the City
had to find `a `short-term fix which he believed was'something like
two. year's while the community supporters pursued some 'kind of an
operationally and economically feasible long-term solution. He
urged ;his col l eayues to find soine way to indicate to the people
that the door was still open and that the City would try to find
some way to reasonably help to keep the program alive. One possi-
bility might be a referral to the Policy and Procedures (P&P) Com-
mittee to develop a policy that the City would support the program
by some reasonable mechanism. Another might be.to ask staff to
cone up with some kind of matching grant proposal that would still
put the bulk of the burden on the supporters, but would indicate
that if they could do so much, the City could do something too,
which might in turn be enough to keep it going. Mr. Morton indi-
cated that the YMCA was interested and exploring the possibility
of a future relationship between the YMCA; and such a facility. He
believed that prospect was exciting and gave him hope that there
really was a solution out there. He urged that some way be found
to keep the door open, however slightly, tonight in order to
ensure that the energy of the'audience continued. He asked the
City Attorney if the Council was in a position to do any more than
act on the loan request tonight.
City Attorney Diane Lee said she did not believe so except to give
direction to staff to -yo in a direction as su`yyested by Council-
member Cobb, i ;e. , explore a permanent site for ice skating, enter
into an ayreement to provide some kind of support whether it be
financial or otherwise, or to make some type of funding available
to a particular group. Staff could be directed to study any of
the foreyoiny.
Council,nember Cobb clarified that the direction could be in the
context of tonight`.s agenda item.
Ms. Lee said yes.
Counci lmennber Klein said he was impressed by the amount of people
whip turned out and by the report issued by the Trust. for Community
Skating, which appeared to be.well done. He hoped something could
be worked out with the information provided to enable the project
to move forward. The Council did not have the power to mandate
that ice skating continue in Palo Alto. The landlord. would have.
to be dealt with and he did not believe the City should be in-
volved because two pr°ivate.interests were'involved and the City
should not bargain away zoning decisions for leases. He realized
that sounded. harsh, but zoning decisions had to be madeon the
basis of the City Charters :Which stated that the good of the
net yhbor.hood and things of that -_rla ture must be considered in the
same way -that other zonirag,,matters were heard. .Zoning decisions
were not .bargained for ,honey or other considerations.: He was con-
cerned -when -people asked the Cooncil- to. enter into negotiations
with Mr. Peery whereby the: City would--trade.,a zoning decision in
ex -change for a favorable lease, He felt good about the report
. before the Council , but way st,i l l concerned that= -a--..formal , written
proposal had not been received ;.iron Mr, Peery. The : Counci I 1144
heard ;alot-about wrriat tlr, Peery said to this group or that, but he
was:bothered that Mr. Peery had not -.stepped forward and spoken for
hi. se_.f or: put something- in writing to" anyone-.. Mr, --Peery -was a
key-; player --it was his land. the situa or+ was _ such that_. Mr.
Peer; should., enter -into a tease for the use of °the property. He
did not_,• necessarily_ want him:. to be the C,i-t,y:'s benefactor* -but as
he sa r it , the property was not going . anywhere-- for -awhile -because
tie a artitation on Chuck Thompsons property- another key por-
tion - of that 'land --did not run . uut- .fors , another eight: years-. He
urged -_Mr.-.. Peery to enter : into a lease --for "whatever period —seemed
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reasonable. It appeared that a couple of years would be the mini-
mum in order to get the organization going and search for a long
term solution.- He ,favored some support from the City to see that
-such a lease was effected and carried aut, The zoning of Mr.
Peery'.s property would have to stared-, more or less,_on its own.
There were several approaches which could be `taken to solve the.
problems. For example, if Mr. Peery applied to the city with a
"planned community" proposal for his site, he might --get some of
the flexibility he desired for his property e A variety of things
could:be done, and he believed the Council was moving in the right
direction. It was late in the game, but in line with the comments
made by-Councilmember Cobb,; more time was needed. The Council
should follow the staff re -commendation and_reject the idea of the
$175,000 loan, but staff should be directed to continue to work
along those .lines outlined tonight to see if another proposal
might be developed within the next couple of weeks, specifically
to include something in writing from Mr. Peery which would enable
the City to move forward. He hoped that a solution could be found
that would keep outdoor ice skating in Palo Alto in existence at
its present site.
MOTION: Councilmember Klein moved, seconded by Cobb, as
follows:
1. Accept the staff recommendation to deny the'ioan request for
$175,000;
2. Direct staff to evaluate the report submitted from the Trust
for Community Skating and work with that organization to
develop a program that would keep outdoor public ice skating
at its present .site for a reasonable time (2 years); and
3. That Mr. Peery be requested to cove forward with written pro-
posal as to lease on property for the Council to. evaluate.
Councilmember Witherspoon said the subject had been before the
Council for about two years, and tonight was the first time she
could remember seeing a ground swell that could go somewhere to
provide a long-term solution to ice skating in Palo Alto. She
went to the Winter Club when her children skated there, but was
not wedded to that site as the only place for ice skating in Palo
Alto. Personally, she preferred to find a larger facility as a
long-term solution, and had always hoped that something would
become of the Baylands site on which the City had an option. She
asked if that option expired or whether it was terminated.
City Manager Bill Zaner said the option had not expired.
Councilmember Witherspoon believed that the Baylands site was an
available long-term alternative. There were many alternatives,
but many were inappropriate for initiation by the Council. It was
incumbent upon the citi zens' to make most of those al tcrnati ves
happen, and then return to the Council with a proposal in line,
with that suggested by Councilmember Klein.
Councilmember Renzel concurred with much of . what had been said by
her colleagues. She was opposed to reviewing the zoning for the
site since it was long in coming to be residential On the other
hand, she did not object to recreational uses on a residential
site and felt strongly that the Winter Club was a valuable asset
to the community. The. Friends of the Winter Club were advised
that the Council was not in a position to deal:, with any -rezoning
rapidly, and some.. Councilmembers including herself were; disin-
clined to rezone to commercial. The ?and was zoned residential,
and she urged those, who wished to .keep the Winter- Club,in opera-
tion to look at dealing with Mr. Peery to rent his development:
rights . on the Shell property and pons# bl y but some _mobile. homes
there. Mobile homeswere permitted An a multi -family zone, the
use would be temporary,_ arld it would not be expensive to do. It
provide some significant tax benefits to people who might wish to
invest in such a possibility and further would provide Mr. Peery
with a rent sufficient to keep him in his proper role as a fidu-
ciary for the trust he operated in owning that property. She
believed that possibility should be considered and was fully with-
in the powers of the people •who worked on behalf of the Winter
Club. She said she briefly ran it by staff, and it was possible
to put two to three units there and possibly provide the only new
truly affordable housing in Palo Alto.
Councilmember Eyerly said he hoped Mr.. Peery was listening and
understood the Council's suggestions. He asked Councilmember
Klein if he intended to include in his motion, the staff recommen-
dation that any subsidy to continue operations be denied as well
as the loan request for $175,000, and the request for a ticket
bsi dy.
Councilmember Klein said he left those items out because the pro-
posal from the Friendship Pavillion for a $1 subsidy per ticket
was not on the agenda, and he did not feel it was necessary to
respond to it. Further, he was not ready to take a position on
precise financing, and did not want to rule out City participation
nor did he want to make a decision. For example, the report from
the Trust for Skating ran approkimately 50 pages, was just re-
ceived and the Council had not yet had the opportunity to comment
on it. Before making any decision along those lines, he believed
the Council should have an opportunity to read the report and the
public should have the chance to comment.
Councilmember Eyerly said that the Trust for Community Skating did
not ask for any subsidy which was why he thought the other group's
request should be addressed. He agreed that the issue was not
before the Council tonight.
Vice Mayor Fazzino said he was still disappointed about the Coun-
cil's unwillingness to consider continuing the amortization period
on the Shell Station as a way to keep the ice skating facility:
open. Further, he was concerned that the present boarded up
nature of the Shell Station was a sign of the things to come on
Middlefield Road unless the Council faced the reality of the pre-
sent usage in that area. He hoped that the development of the
Trust would be a major step towards saving ice skating in Palo
Alto wherever the location. He believed that some incorporation
of ice skating within the City's recreational program could
occur --perhaps a variant of the subsidy program --but also believed
that for the most part, the potential success of any ice skating
facility had to come from the ideas of the private sector, the
neighborhood and citizens, and those ideas were contained in the
report received tonight. He reiterated Councilmember Klein's com-
ments that it was unfortunate that the Council had not yet had an
opportunity to review that report, but believed the Council wanted
to "skate the final blue line" in order to allow the ice skating
facility to remain open in Palo Alto. Not much time was left, and
it was important that the Friendship Pavilion and the Trust group
work together, and with City staff, for the " next few weeks to
develop an idea which could make the proposal work in the short-
term at least.
Counti lrtiember Cobb said: he was encouraged by the fact that the;=..
door appeared to ` be open. He asked if . the necessity to make a
Council policy decision and = its referral to the P&P Committee'
would have to be agendi zed separately.
Ms. Lee clarified that the Council could not take action on
thing other than what was an the agenda.
Councilmember Cobb said that the normal course in which to make a
,,_policy decision would take a long time, and he hoped that the
actiuns the Council took tonight and those subsequently taken by
the various groups= in the' audience, would keep the .bulldozer from
any-
the door for as long as possible. He believed the policy decision
should be ayendized-, and following disposition of the Motion be-
fore the Counci 1 , he would attempt to refer the matter to the P&P
Committee to consider the various aspects of how the City should
be involved in the possibility of --outdoor ice skating becoming a
part. of Palo Al recreational program if at al 1. _That would at
least open up the longer issue if. it was necessary_ for the _Council
to make that kind of policy decision.
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Mayor Bechtel stressed that in .her opinion, the Council could not
ti.e a decision of the Winter Club to' the zoning of an adjacent
parcel and that the issue must be totally separated. Second, she
applauded the work which was done so far by the members of the
community, the Trust and those who were active with the Friendship
Pavil1ion. The motion before the .Councii directed staff to evalu-
ate the report, but the burden Should still be upon members of the
comr;runity to work with -the landlord and continue their efforts to
work with Mr. Williams to ensure that the present facility not be
dernol fished. Stuff --was only being asked to make a review and get
back to the Council. She believed the Council was leaving the
consideration open for City support of ice skating.
MOTION PASSED unanimously, Levy absent.
MOTION: Councilmember Cobb moved, seconded by Fazzino, to refer
to the Policy and Procedures (P&P) Committee, the question of
incorporation of recreational ice skating into the City's recrea-
tional program.
Councilmember Cobb said he debated whether. the motion should be
referred to the Finance and Public Works (F&PW) Committee because
the question of some type of matching grant or other form of rea-
sonable and affordable subsidy could be involved. He supported
that concept if it could be kept under control. He believed that
an underlying pol icy issue existed and it was about time to get on
with it. Although he appreciated the response from the audience
on the motion, assuming it passed, the citzenS' groups would have
a lot of -work to do to keep the bulldozer away from the door. The
process would. take longer than the time\left before the demolition
was scheduled to occur, bute it was necessary in order to move
towards a longer term "fix." He agreed with Mayor Bechtel that a
lot of work was left to be done to keep the structure in operation
u`nti l a long-term solution could be reached..-,
Councilmember Fletcher said she believed the motion was premature.
The matter was referred, to staff to work with the proponents of
the building, and she 'envisioned staff returning to the Council
with an evaluation and possible alternative actions to be taken.
She believed that would be the appropriate time for the Council to
make referrals to the P&P Committee. If the Committee were to
receive the item now, it would not have much to work with.
AMENDMENT: Mayor Bechtel : moved, seconded by Witherspoon, that
the, issue of tie --incorporation of recreational ice skating into --
the City`s- progra. be referred to staff.
Mayor Bechtel' said_ that a policy could `not be -made: unless the
council knew what the implications were. e. When the report was
received, it could then be referred to the appropriate committee.
(:ounci #gnember_ Witherspoon said she agreed= -with Councilmember
Fletcher that. staff was asked to work with the community.. -_ She
believed.- that ..the concept should be explored e in the ` total
-context--not as a separate -item. - .-
Vice Mayor Fazzino bel ieved that a step would be saved by sending
the entire...is'aUe to the Roi,icy Committee. There, staff could
report on tts specific data and recommendations about the possible
incorporation of ice skating in .`the recreational budget and the
policy committee, could make a recommendation at that time to the
3 1 6 0
4/18/83
entire Council. If staff was asked to do it, it would take a
couple of months, and would come back to the Council to . be
referred to the P&P Committee which could take another _six or
seven months. He bel ieved that was far too long, and suggested
that the issue be immediately sent to the P&P Committee. Staff
would have a direction to prepare a report for the P&P Conrnritter
and the item could then return to the Council in a couple 01
months.
Councilmember Cobb said he concurred with Vice Mayor Fazzino. The
rnatter had been thrashed around for so long and he was anxious to
yet on with it. He requested that the referral be voted on first
if possible, and if that failed, lie would support ,the other
motion.
Counci lrnember Eyerly said he believed that the public should help
itself, and that the motion and amendment before the Council would
give some people the_ idea that the City and the: "Great White
Father" wau)d esolve everything. That hope was false, and he
believed the Council needed to go with the first Motion, see what
Mr. Peery did, and analyze that information when it was returned.
Then, if_the Council desired to set some policy for a longer range.
goal, it would be more proper.
Cvuncilmember Fletcher said she was nut clear on the assignment to
staff.
Mayor Bechtel clarified that it was to determine the implications
of incorporating ice skating into the City's recreational pro-
grams.
Mr. Laner said he 'understood that •the motion would direct staff to
do an analysis on the implications o'e including ice skating in the.
City's regular recreation budget.
AMENDMENT PASSED by a vote of 5-3, Eyerly, Fazzino, Renzel vot-
ing aria,' Levy absent..,
MOTION AS AMENDED PASSED by a vote, of 5-3,- Fletcher, Eyerly,
Menzel voting 'ono,` Levy absent.
Councilmember Cobb said he supported the amendment and motion
because he did not want to lose the 'whole gage. He ' sti 1 l hoped
the rnatter would be referred to the P&P Committee as early as pos-
s.ible in order to get on with some kind of decision. If the
motion as amended was the necessary first step, he supported it.
Gouncilnrernber Renzel said she did not support the motion because
she wanted to see the matter go to Committee directly, not because
Vie was against the idea.
Mayor _Bechtel said the Council was actually debating a procedural
issue, and she believed the ultimate effect -"would be the same ---it
would tome back and be referred to `the appropriate committee. She
thanked the members of the public who appeared on the ,issue and
for the work which was done on behalf of the entire 'community.
RECESS FROM 9:10 p.m. TO 9:25. P.m.,,f
jj1101jrli PUBLTC HEARING: PLANNING COMMISSION RECOMMENDATION RE
-it j iti ffi 1- crit 2U"Nt :WtAlfuL Ar }xuP 1T
Planning Commissioner Pat Cullen; said the item was the first
application for a Planned Community District. under the _City1s new
program: 7-A i'n the Comprehensive Plan. The program .would allow
consideration of the PC zone for more than the zoned number of.
units provided` that the additional residential.- units were afford-
able under ar assured mechanism. Program =7 A also contained 'three
restrictions built in, . at listed' on page 13 of the a December 30,
1941, staff report. The buildi.ng size should be limited to that
1
1
established by the standard zoning. The site development stan-
dards of the PC yenera l ly should adhere to those of .the prior zone
in that traffic and off -site parkiny would not adversely impact
the surrounding areas e In other words, the building zoning enve-
lope under the PC should be the same as the zoning envelope -under
the regular zoning. The commission held three; meetings on the
application and the ARB held four. As the project went frurn one
meeting to the next, several modifications were made by the devel-
operi in an attempt to respond to the public, the commission and
the AR8 concerns. At the final Planning -Commission meeting, a
majority of the members of the Commission believed that the basic
finding of the public benefit to be gained --a required finding for
PC's under the code --and the acquisition of affordable'units had
been reduced by one-third, from 16 to 11, which was not sufficient
to offset the impacts of the project. The requirements of Program
7-A were not met in the opinion of the commission —specifically,
site coveraye of 58 percent proposed as compared with 5U. percent
in the CN portion of the project, and ;IU percent -in the multiple
faimii ly portion. The 'height of the commercial component was One. -
third more than that allowed under the CN zoning --38 feet versus
2b feet, and there ` was concern about the coErspatibil ity with the
surroundiny land use. Finally, the commission had serious reser-
vations about how the parking_ would work since the project re-
ceived a 20 percent reduction as a mixed use, and 37_ of those
reiilai ni ny spaces avere shared with the commercial users. The corn -
mission bel ieved the design of the project was creative and inno-
vative and that the developer was sincere in his wish to provide
some affordable housing, but the site was carrying too much devel-
opment as proposed. Commissioners Northway and Sutorius did not
share. that view and believed that the gain of affordable units for
the City's housing supply balanced out the other considerations.
The commission voted 4-2 to oppose .the project.
Mayor t3echtel declared the public hearing open, She urged each
speaker to be concise and to -try and not repeat one another.
Joe Ercolani, 4040 Ash, concluded that the Planning Commission
acted wisely in denying the requested rezoning at El Camino Way
and James Road. The cry in the City was for more housing and not
more jobs, and the project in its present form did not adequately
address the need for housing over jobs. Further, in their present:..
form the fi yures on office space, parking and traffic were another
example Af unfair taxation, in terms of increased poise, traffic
and parking to the nearby residents. The Charleston Meadows
neighborhood, like Evergreen Park, was being asked to subsidize a
commercial project by :turning their residential streets into
access routes and parking lots. He hoped the Council concurred
with the decision made by the Planning Commission.
Tire; Serry, 4217 Kellar Lane, Apt. 7, resided in the area of the
proposed project. He attended the meeting to encourage support
for the Stanford Plaza. As a young couple, he and his wife pre-
ferred to own a home rather than rent an ::apartment in Palo: Alto.
The proposal -:would :provide affordable housing to people like he
and his wifea-young professionals just starting out. He _had lived
i n P410: Alto for three years and. hail become accustomed to the
area., local shops and vendors, -4nd preferred to continue ---to reside
here. Stanford Plaza would benefit not only.- the --aesthetics of the
location 4 but 41so first-time condominium buyers in-Pa.lo Alto.
Mr. Agustin Rosas Maxe'nin, President, ARMAX- :Corporation the
developer, presented the plan for Stanford Plaza. Stanford -Plaza
was a plasmdd mixed use building project proposed. for the site at
4145-4161 El Camino. Way. It combined- 65 residential units and
Z3,4UU square feet "oVc,orxmercial -: space with.the :intent of provid-
ing affordable-housing:_that world be subsidized by the commercial
portion. Stanford Plaza was unique and important_ because it would
take land zoned primarily for , commercial use and build more
residential units. '.The maximum development of commercial .space
under. the existing zoning allowed 49,55U square feet and only 20
residential units, which would be more profitable for the devel-
over. He realized _that many were concerned with the jobs/ housing
imbalance: Stanford Plaza's commercial area expected to generate
approximately 112 jobs as' compared with 243 jobs if the site were
developed to the maximum 49,550 square feet allowed under the cur-
rent_ zoning regulations. Further, the 'Stanford Plaza project
would provide attractive and afffrdahle residences for the people
of Palo Alto in the median income bracket. The affordable units
would be priced for purchase by persons earning between 120 to 150
percent of the County median income, four units under the City
below -market -rate program would be priced for famil ies ' earning.
between BU to 91) percent of the County median income, and the mar-
ket rate units would be less expensive than the -market —rate rate units
on the previously approved Cox project The jobs/housing imbal---
ance was -most cr`etical in the middle income range. The concept of
the Stanford Plaza started in September, 1982, and through many
meetings with ARMAX, Palo Alto Housing Corporation, the neighbor-
hood and City staff, Stanford Plaza was refined and proposed to
tire Planning Commission in January, 193. At that time, 69 resi-
dential units were proposed, four of which were belos-market-rate,
16 affordable, and 49 market rate, with 24,500 square feet of com-
mercial space. After some refinements and another meeting with
the Palo Alto Housing Corporation, the Planning. Commission unani-
mously approved a Stanford Plaza with 68 units, four below -market -
rate, 15 affordable and 49 market rate with 24,500 square feet of
commercial. The Architectural Review Board reviewed the project
and requested several design changes. In response to the ARB and
the neighborhood concerns, ARMAX changed the following: To better
integrate Stanford Plaza in relation to the surrounding buildings,
the density was reduced by taking out. three units from the third
story, the commercial office space was also reduced by 1,000
square feet, and in response to the neighborhood concerns atout
the possible noise from the location of the spa,- the spa was relo-
cated away from 'the bordering neighborhood residences. Because
traffic congestion was a major concern in the community, the
dri veway vas switched -..from dames 'Road to El Camino Way to reduce
the flow of traffic on the residential street, which resulted in
the loss of one unit. With that revision, the ARB gave its unani-
muus approval. The Planning Commission did -nut like the reduction
of .four affordable units, and on a split vote, disapproved the ARB
revised project. ARMAX requested that the ARB :and Planning Cam-
mission.rneet jointly to resolve _the differences, but the commis-
sion believed that moving the project-- to the City Council was a
better idea. ARMAX hoped the Council could reconcile the differ-
ences so that the opportunity to provide affordable housing in
Palo Alto was not lost. He deferred to Tony Carrasco,:one of the
architects, to explain_ the design concept of Stanford Plaza.
Tony Carrasco, Carrasto & Smith, 4216 Darlington Court, said he -
was delighted when Mr. Ma-xemin -asked hint to design a project that
would lower the costs and selling prices on the El . Camino Way site
because they had similar ideas with ;regard to increasing the• sup-
ply of housing for people Apethe middle i-ncomes. He presentee
some slides in order to illustrate the overall intensity of the
project .and how it integrated within .a mixed use-. elle believed the
proposal was properly a mixed use project, whi zoning allowed_' a
height Of 35 feet. The "project s chtepped back towards the r'esiden'
tial , zone and was in fact lower than,_ what would normally be _per
mitte t,._- The proposal was worked out_ through the -.Planning Comm is-
s io i .;:compromises as<; wel _l as_ w th the neighborhood.. Mrs . Watson'
suorrsitted a letter` to.-the ouncil'Andicating her_ support for the
project. The .devel oper° tie! eved that the. of f-i';+ce bui l.d in9 provided
:a tiutfer .f rig tihe.� heavy impact _.pf., E:l _,'Ca_ mino 'and: prov..ide"d a suit-
axle buffer,'.for. tne-residential parts of" the.projee.t.- Flo vehicle
nor pedestrian traffic- would `rove, Into ,Tennessee: Lane --or - be -able
td 96:from-. the project into Tennessee; i..an;e because of. the fence
conditions. ' The- project could pot be: =seen .:from Tennessee . Lane
1
1
1
because of heavy landscaping. The concept provided a small court-
yard which went around to the larger courtyard, where a larger
central plaza was located. It was hoped that the courtyards
around the four unit clusters would encourage children to play
under their parent's supervision as well as stimulate a sense of
community within those four units. The setbacks were all larger
than what would normally be required. The most controversial
issue appeared to' be the site coverage. From the start, the
developer worked with staff and everyone involved to have a.:build-
ing which attempted t.o have open space in locations which would be
most usable to the residents. The site coverage totaled 51 per-
cent, and if the total amount of square footage in the project was
used to.'build a three-story box, only 42 percent of the site would
be covered, while the zoning allowed 45 percent, which was the
overall average. The building height in all cases measured 35
feet to the middle point of the roof. The office building went up
to 38 feet to that point, and normally, a mechanical screen was
allowed. It was hoped that three feet would cover the unsightly
tubes and things like that, but the applicant would reduce the
three feet to make the project conform exactlyto every letter of
the law. With regard to parking, the new section of the project
was devoted to commercial, a section which was devoted to residen-
tial, and a place in between which went between commercial during
the day and residential in the evenings. The idea of reducing the
total number of parking spaces came from the fact that after 5:00
p.m., there would not be anyone in the entire area. A few people
eight work overtime, and the whole section could then be used for
spillover visitor parking for the residents. A case could be made
for approximately 40 percent of the deferred parking because many
more people would be out of the commercial in the evening and the
entire parking garage would be left vacant. Taking a more conser-
vative approach, the developer went for 20 percent. There was an
even number of residential and office parking and as the propor-
tion of residential to commercial became more even, the reduction
in the parking should be greater. He summarized that the project
met both the letter of Program 7-A as well as the intent except
for the coverage issue, which he hoped the Council would leave
more flexible in order to assure less "boxy" looking buildings.
Mr. Maxemin said he understood that the City Council must be con-
cerned with balancing the public objectives of providing more
affordable housing with the impacts on the neighborhood, and their
project attempted to do so. No project could satisfy all con-
cerns, but he believed that Stanford Plaza provided the highest
benefit for all citizens of Palo Alto with a minor negative impact
on the neighborhood. The adjustments to existing zoning were
essential to the viability of the project. He was available to
answer any specific concerns of°the City Council. ARMAX was eager
for Stanford Plaza to succeed and remained open to any Council
suggestions for 'approving the project. They were frustrated by
the twists and turns in the City consideration of the project.
They wanted to contribute to the City's objectives for- more
affordable housing and had proceeded in good faith. .He requested
City Council assistance in resolving the impasse and hoped Palo
Alto would not lose the opportunity for a project which addressed
the most pressing .needs of the City. The losers would be the
people of the City of Palo. Alto who sought affordable housing.
Inez Brennan, 4144 Wilkie Way, said she strongly and whole-
heartedly supported the decision of the Planning Commission to
reject the project. Her investigation revealed that in the area
of Wilkie Way and Cl Camino, from Maybel l and Los Robles, there
were 14 restaurants. One _block further north on El Camino was the
location of Disco 80, and she understood from the security guard
on duty in '.the parking: lot that they attracted between 700 to
1,000 patrons each night. All, of the parking overflowed onto El
"Camino Way . and sometimes the parking was bumper -to -bumper.
3 1 6'4
4/18/83
As Corrected
7/11/83
Alice Williams, 454 Tennessee Lane, said that the Council packets
were full of information about the proposed Et Camino Way/James
Road project. Having .waded through it al 1 she was sure the Coune
cil was well advised_ of all the basic facts and figures involved.
By now, the Council, had heard the- outcry from the residents who
were neighbors to the parcel of land and the other, adjoining
developable land along El Camino, and had received, the petition
which was signed by the neighbors during the first weeks of the
process. She pointed out that the petition was far from complete
because the residents were given little notice when the issue was
up before the -Planning Commission. The signatures represented the
thoughtful concern on the part of each individual regarding the
future of their neighborhood. -The addresses of .the signatories
reflected that the neighborhood was truly represented. She be-
lieved that for the existence of the project to be justified, it
needed to contribute something to its surroundings and the life
around it. The neighbors were advised that the 'project was pro-
posed, as it pertained to the pre -existing -environment, because it.
would improve the property values of the neighborhood. The resi-
dents of Charleston Meadows failed to see how increased noise
levels, traffic --an estimated 900 trips per day through the neigh-
borhood --parking problems, and the visual intrusion of five three-
story buildings packed together on a small parcel of land would
enhance the quality of life, the physical setting or even the
property values of the -neighborhood. -During the course of the
issue, the developer accused the neighboring residents of being
elitists wanting to keep others with a _lower income out of their
community. She pointed out that her neighborhood coexisted for
years with a large Latino community on the property with a high
level of give and take. To her knowledge, no comment or complaint
was ever directed to the City from her neighborhood regarding the
activities and noise levels of that very populated community.
Many of the residents in her neighborhood defended that community
when Mr. Bill Cox was beginning his move to develop the property,
and the neighbors resented the implication that they were against
housing for the poor. Regarding the economically disadvantaged,
the "affordability" of the "affordable" units the developer pro-
posed, and the cost per square foot of those units versus the cur-
rent value per square foot of the R-1 homes which currently exist-
ed next to the land, taking one of the lowest price units at 682
square feet and dividing it into the total cost of $98,000, they
arrived at $143 per square foot. Within the last etwo months, a
bank appraiser visited her neighborhood and advised that current
ly, a remodeled`Eichler with approximately 1,800 square feet would
sell for around $180,000, which amounted to $.100 per square foot
versus $143 per square foot for the "affordable" units_ in the pro-
posed project and included the land on which it sat. She did not
want the people to kid themselves into thinking that the project
was low -cost housing --it was only small housing. The reality was
that the last true low cost housing in Palo Alto vanished the day
30 low fhcome families were evicted from the property and their
homes were gutted and boarded up.., eThe residents believed it was
only fair -for the developer and the City, to. meet them hal f gay,
that the spirit of the zoning be adhered to even in a PC district,.
that the residents be provided the local retail and services set
forth under cur=rent zoning -and thati the density allowed be com-
patible with the neighboring areas.
Oleg Sherby, 112-- Eni rson Street; ,said. he had resided at his cur-
rent address for 25 :years - and was a professor at Stanford lini ver-
sity in: the field of Engineering. He favored the Stanford Plaza
project.- Many young people had gone to Stanford and after gradua-
ting attempted to find a place to live only to find Al impossible,
and had left the area; as .d result. A reasonably priced. home, in
this day and age, ---meant- about $130,000 to $150,000 or slightly
more. He saw .the project as a good 'plan for `a clearly commercial
area to provide housing for young people.
Or, Herbert U. Leman, 4b4 W. Charleston Road, President of the.
Charleston Meadows neighborhood Association, clarified that the
opinions expressed in his letter of April 12, 1933, which is on
file in the City Clerk -'s office, were the results of several meet_.
i nes crf the Cite r1 eston Meadows Nei yhborhuod Association and their
petition drive. The- City was presented a petition which was
signed by 145 people, whose signatures were collected' by a canvass
of -- the neighborhood.. Volunteers went to the neighborhood hooves
and asked for opinions on the project, and the vast majority were
against the (levelopment at the time. The people with whom the
volunteers spoke believes that the development was not in the
spirit of the original zoning. After spending so many years try-
i- to design the neighborhood commercial zone on £l Camino Way,
the proposed development essentially threw out the entire concept
end made a dense commercia 1 development which did riot supply any
services to the neighborhood. itself. The people believed that the
project would worsten the job/housing -imbalance. The developer
stated that about 120 jobs would be produced along with 65 resi-
dential units --clearly more jobs than units. -In order to achieve
affordable housing to Palo Alto, the demand for housing would have
to be lessened so that all Palo eAlto_ units could become more
affordable with time, which required a reduction in the number of
new jobs to come into the City. :The proposed -level oopment would
provide a few below -market -rate units while increasing the number
of jobs-, thereby makieg the derrmand for housing worse as a result.
if the desire of the ---City Council was to have more housing then
the area as originally suggested by the Charleston Meadows neigh-
borhood should be zoned residential. An extremely dense develop-
ment with a lot of commercial use in order to achieve a few units
s1iyhtiy below the market value appeared to be the wrong way to
accomplish more dousing in Palo Alto. The neighborhood commercial
zone was presently being studied by the City to determine its
viability and whether it: could really function. He urged that the
Council wait for the resu i is of that study to see whether the
neighborhood commercial zone was viable. The peoples concensus
was that the project could not be saved with a few changes. The
concept was wrong from the beyinni ng-- there was 1 ittle or no
retai i or services ' for the neighborhood, the project was too
dense, and the housi fie units were too small to be attractive to
anyone. He encouraged the Council to uphold the recommendation of
the Planning Corgi:mission and deny the project.
Sam Spa rck, 4099 Laguna, spoke as the Chairman of the: Barron Park
Association Board of Directors. The board was on record in oppo-
sition -to the project and he desired to reiterate that opposition.
Thee project was. too dense and massive for the site, its presence
would ayyravete traffic in the area, the parking was, insufficient,
it was 'incompatible with the adjacent residential properties and
did not contribute positively to the jobs/housing imbalance. He
asked the. Council to listen to the neighbors and the neighborhood
associations, confirm the decision of the Planning Commission and
vote to deny the application.
Calvin F. Gunn, 2345 Yale Street, currently resided in Los Altos,
but was born and raised in Pals Alto, Several of his children
were born in 1'a.lo Alto, but as adults, were-- unable to live here,
and 1 ived in apartments in Redwoo ,. City and: Mountain View. His
secreta ee quit a few weeks ago, because it was too exaust i ng to
Uri ve two and one-half ehqueSe per .dray to work ,and be forded -to live
1r► Sa;n Jose. The fact that someone, posed as the representative
of a democratic group (which 'group actually caucussed as ea special
interest group) stood .before' the Counc i i. and said that-preopl a we're
against jobs and housing, _made hi4 angry. That statement was-.
obscene in ';is opi riion. lige was born in -Pa I o T19,30, and a
traffic A , Wee unkno . . wn- then=; He walked everywhere- "when he was
yuuny, and did not know' chat, a- tar was. He believed., that those
t uses were = €aoree eemffoteeb l e', =but , that times had changed. _ People
had to work to feed thel r faini l ie and _ needed housing.. Palo Alto
was one of the most ,.progressive communi ties _ in the country and had
addressed' the problem philosophically. He knew nothing about_ the
1
detdi is of the project, but believed that phi losphical ly, Palo
Alto should keep_ faith with the step At .had taken. A •developer
who spent a lot of time and money should not be told to start
ayain and- still be expected to come up with affordable housing.
Loch time plans were revised and delays occurred, project costs
would escalate. He believed that process was hypocritical
Florence LaRiviere, 4b3 Tennessee Lane, had lived in her house
since it was built 31 years ago. She said she was offended by the
statements of the previous speaker, and left almost speechless.
Her children were also brought up in Palo Alto, and one was sti_1 l
in the area as a professional woman :librarian. There was no way
her daughter 'could afford --on a $37,000 salary --$10,000 down and
$1,UOU per month for one of the 11 proposed affordable units. The
Planning Commission and—ARB studied the project and concluded that
the basic requirements :for a PC zone were not met-. She believed
that Ms. Cullen succinctly pointed out that setback and height
requirements -of underlying zoning;..were not adhered to which
negated its submission under Program 7-A. Very small ()nits for
people earning $37,000 to $43,000 per year did -not Meet the hopes,.
which everyone shared, of affordable `housing, .and the spirit of
the CM zone was violated by the establishment of two, three-=story
buildings of houses that would attract regional office buildings.
Uuriny the puolic hearing, the people were given four reasons for
supportiny the project.
1. The project was aesthetically 0 -easing. People had different
ideas of beauty, but multi -story, red brick buildings seemed
out of character with both the nearby commercial structures
and with the neighboring flat redwood houses.
2. Low cost housing was provided. It was already discussed that
68? square feet of condominiums at $98,000 was comparable
roughly to 1,360 square feet at $140,000, if smallness meant
affordability, would it have to be subsidized by office
space..
3. The people were told that with the current zoning, they. could
get 'something worse, and that almost appeared _.to be a threat
at times. It was true that current zoning would allow a maxi-
mum of 49,b50 square feet of commercial office space along
with 2i} condominiums. Parking _would necessitate a second
underground parking level , 'and at the ARB meeting, staff
stated that it was not likely to be fina'ncially feasible.e The
lesser of two ei l s theory.. was a poor 'orre on which to base
land use decisions. Perhaps all of the zoning in the area
should be reconsidered now.
4, The people were told that the developer had at -ready spe-:t lots
of money, which was also not a valid reason for approval. No
one wanted developers to have financial problems, but land use
policies -should be made by planners --not efinanciers.
She commented that Josepn Esherich, Chairman of the. U.C. Berkeley
--Architecture Uepartwent, was asked.by .the San Francisco Chronicle
in January what he thought` was wrong wit e s on7
resporRded that the human objectives of their work were being
superseded by material measures- profit: ;The tendency today was
t[ 'take the short-Lirm view, end designs were. -.,for point -of -sale
appeal-. I./rice sold, no one cared..- Today, :,an:.architect s design
had become More remote from the , person who.`would actually use it.
One did not deal with residents, but rather _a fin_anc�ial manager,
d
books an budgets. if the- market really told'1al1- that. -one` needed
to know -about- life, that, kind of management was perfectly _okay .
but._ the wor la'r was not' that perfect.,_, She asked the Counci.l :-.to bear
in mind that the land abutting the proposed project to -the.. south
ail the way to Charleston 10a -d wa_s ---ripe = for_, devel opient The
pot.entia i -.- . far' another PC- developreent .:in :that lo.cat.ion- shook - the.
-confidence of the public in -the entire zoning.,`process, -and the
3 ,1 6 7
4/18103_
Pianniriy Uepartirient had no detailed predictions about the impacts
of the urdrly possible developments in that area. Palo Alto was;
famous for its preservation of residential 'neighborhoods, and she
lived _in a congenial, pleasant neighborhood, which was especially
vulnerable and worthy of Council protection. She concluded by
saying that Frances Beenner loved their neighborhood. Her eyroup
possessed Frances brenner's certificate of councilpersonship and
moped that someday sometfiny would be named there for her.
1
1
dorm. Weyant, l 736 Uak_: Creek Uri ve, Apt. #403, sa id , he was a senior
research associate at Stanford and considered himself to be rela-
tively young and professional.' He could bleed all over the table
about the problem that he and thousands' of people like him faced
in Palo Alto of finding atfordable housing. Even if jobs were
availaule, new people could not afford to live in the area. He
opined ,that the issue was one of progress versus no progress, and
whetier to pursue innovative solutions to pressing problems. When
he was about ten years old he lived on the east coast, and -re-
called that someone -:wanted to build three blocks Worth of houses
on the field where he played ball. The neighborhood and the
children were very upset, but , tkie project went ahead. Then he had
to walk five blocks to play bail An a park instead of two blocks
to the former field; Ten years later, he realized that about hal f
his friends from school, half hise team mates, the captain of the
Penn State Football team and ultimately the mayor and several
counci lrernbers came from those three blocks of houses. He sup-
ported progress and more housing in the area, and not maintaining
the monopoly rignts of those who lived adjacent to the prime piece
of property.
Telber Gustafson, 40 Colleye Avenue, Apt. 8, said he strongly
favored the project 'because for the past three years following
graduation from Stanford, he had lived .in Palo Alto. Many people
believed that attendance at the University signified wealth. That
was not true --it instilled earnings potential.. Many students bor-
rowed money to go chrouyh Stanford, and l i ke many others, he st i l l
owed money. He believed that made him a representative of young
professionals who came to the area and wished -.to stay. Early on,
he elected to pay a higher than usual percentage of his salary as
a renter. He supported the project because he rented and did not
own, and the tax laws doubly compounded the problem because many
tax write-offs or depreciation, were now allowed to a renter.
There was an increasing exodus of !the young professionals who
helped to make Palo Alto the technical leader it was nationwide.
The proposed project offered a_ unique opportunity for those young
professionals to _ cor„e from outside the City to study and effec-
tively call Palo Alto home. He believed that the. general opinion
of the` people in the area --more particularly the president of
Charleston Meadows --was to reduce jobs and not increase housing,
or to close the door on others.- That position would be under-
standable i.n a declining area in the mid west where. people were
leaving anyway, but the people who came to Palo Alto and Who
wanted to _continue to ,crake the City a leader dn the country, did
not agree with that position and believed that the main Obstacle
was housing.
Kichard Leza, 4191-Briarwood Way, said the fact that the project
lacked -support was a myth. He was from the Preen- -Meadows and
Charleston Meadows area an!: hao a ;lot of neighbors and friends
there. There was a lot of support —for the project, and the peti-
tion reminded him of a recent election in .Palo Alto where ther^ee-
wa S considered to'
be a lot of opposition to ,tile pro ,errt n
‘a l ifornia, Avenue' :from Cox, and .the --election overwheiminly . indi
cated 15 percent support for" the project. epie oppos:i ti on for the
proposed' prOj:ect sounded like the sage th tog. -- Regard ln_g` tine: -,myth -'
that the units_ wer ica7Offloung professional couples
i ved _i n the Stan ford townhouses_ with one chi l'd. and only 800 to
65U "square feet , and appeared tv _ do quite :: well_,_ a believed =the
project was uriiigue and .balanced between. housng and jobs. : :The
jobs could' not", be -kept out, the building of office space- would
3 1 6-6
4/18/83:.
create new jobs. Palo Alto was becomine a financial unit, and to
create office space and jobs without housing, would cause a prob-
lem. Making the entire project commercial was not the answer, it
had to -be balanced. It was a myth that people wanted commercial_
space of 45,000 square feet for.. 20 units--the people wanted a
balance and would rather see 23,000 square feet of commercial and
6.5 units where they could afford to buy. It was said that the
real ---costs were those of displaciny people when low cost housing
a I ready existed in that location. Today, if :one *anted to buy e
house which cost $160,000, the payments would be -abort $1,500 per
month. ---He and his wife both worked,, which was the only way one
.could afford housing. He did not believe that projects could be
built or purchased for- W50,00U to $80,000, because it cost between
$14U,0U0 _ and $180,000 for housing and it took two incomes to
afford any of them.
Hilly udvis, ' 344 Tennessee Lane,_ read a letter from _Lynn
Chapella, who resided in the Midtown area 1t 631 Colorado Avenue,
which stated that she was concerned that the intent of the Palo
Alto Comprehensive Plan was being subverted by developers who
ayreed to build condominiums with the underlying motive of devel-
op.iny Iarye commerciai` projects. In general, these projects
worsened the jobs/housing imbalance by creating. More jobs than
l iviny units. Neighoorhood traffic and parking studies were
oehind schedule while coninerc,ial projects which exacerbated the
problem continued to proliferate. She hoped that the City staff,
Planniny Commission, Architectural Review Board and City Council
would veto projects which worsened the jobs/housing imbalance or
severely impacted a neighborhood. Regarding what would happen if
the project was denied, and whether the results would be better or
worse than if it was approved, it the project_ was denied and the
developer -applied to build a high density commercial project, the
City could refuse its approval. Any project which required sub-
division map approval required Council approval. Further, the
citizens could always file an appeal ' for Council review of any
project. The Council could deny approval on. the grounds of detri-
mental environmental impact, change the zone to a lower density or
issue a moratorium on office development. Any undesirable new
proposals could be denied. However, it was unlikely that anyone
would propose to Duild- to the maximum commercial allowed with..the
existing -zone of 49,'SbU square feet, and only 20 housing units
oecause of the parking requirements. To provide almost 209 park-
ing spaces which would be necessitated by that project, would
require two levels of underyround parkin!, which costs would make
the proposal unlikely. . She believed that denial of the project
would result in a more desirable project for the site. She asked
how the development would affect the jobs/ housing balance. The
only meaningful measure of the overall housing impact was the need
housiny provided; that eis., the housing gain in excess of the
demand --for housiny being created: by the jobs. City staff esti-
mated that t -he ARMAX project would create eabout 117 jobs with only
65 small housing units. Consequently, it would worsen the jobs/
housiny imbalance thus nullifying the claim that the few so-called
affordable units resulted in a beneficial ,Mousing contribution by
the project.. At least two -of the Planning Commissioners gave. the
worsening of tine. jobs/housing imbalance" as -one of the ,reasons they
-voted against the application. Comparing the project with a theo-
retical - worst -case of develO'ing toe the maximum allowed by the.
existing' -zone ,on the site -,--490 550- square feet of commercial and 20
housing units., which was not likely to` be proposed and, could.. be
✓ efused by the- Counc i 1 was not'a valid way to measure the actual
--effe-c*_ on the-- jabs/housing imbalance, The actual effect -_was a
e worsening of .the jobs/housing imbalance.;-'- She pointed Out that -at , .
.cone Planning_ Commission meeting, the Palo Alto Housirng Corporation.
.- passes# out information regarding the mini`ruur income qualifications -
to buy `one, o.f ,the;, i1 so -cal l.ed affordable units. She provided
e ach €;ounci lmernber and the:City Clerk with a _copy of that infor.ma--
tion which -indicated that it would require an' --annual - income of
.4i1,.UUU' to.-43,-0UU and rion,thly paymenl:s of $1_,009 to $=1;100 to 'buy,
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4/18/83
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one of the 11 so-called. affordable units. The units were aimed at
professionals and would not help those in the 'greatest need for
hous i nag assistance. The other 54 market rate units would require
significantly higher incomes. She believed that no city-wide net
benefit existed to offset the detrimental environmental impact the
proposal would have on the neiyhberhood. She urged that the Coun-
cil deny the application and attempt to approve a project which
would be beneficial both to the City as whole and to the neiyhbor-
hoods.
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3uo Moss, 401.0 Orme, wished to correct the minutes of the March
30, 1983 Planning Commission meeting. On page 12, when Commis-
sioner Cullen Initially made her motion she had a fourth condition
that there was not sufficient benefit by virtue of the amount of
affordable housing provided on the site. Mr. Freeland asked that
she withdraw the statement because any time housing occurred on
anytniny other than a residential lot, there was some benefit.. He
pointed out that the finding was not necessary because the fi nd-
in9s were more than adequate to defeat the project. Although the
statement was not included in the minutes, it was made. Regarding
other proposed and past projects in the City, the next item on the
agenda, Lytton Plaza, proposed units for single seniors. Those
units were proposed to be 620 to 1,28U square feet. Comparing
that with the so-called affordable units of 682 to 804 square feet
supposedly for families or young couples, they were being given
less than the seniors at Lytton Gardens 111. The "affordable"
units would cost between $145 and $151 a square foot, the market
rate units would cost between $175 and $190 per square foot if the
developer did not raise the prices between now and when they were
actually scut on the market, which could be done. By contrast, the
Kinney project on Parking Lot Q proposed market rate units at $147
to $1bb units per square foot and those units were bigger -.-770 to
920 square feet. The "Redwoods" project on El Camino was a pure
market rate development and would charge .between $160 and $180 per
square foot. Those people who spoke about the units being afford-
able did not know what they were tai king about.- He quoted from
Sylvia Sernan of the Palo Alto Housing Corporation, "At 12 percent
interest rates, the $116,000 units would not even be affordable to
people earning 150 percent of the County median." Depending on
family size, people would have to earn more -than $54,000 a year to
affor-d those units, which did not serve the lower income people.
A $98,000 unit, at 11 percent interest, would only be affordable
to fami I ies of two [people earning $37,000 per year. Those figures
were -provided in the Planning Commission minutes of January 5,
1983, pages 29-30. The statementoby Tony Carrasco about the com-
nrercial buildings meeting the 35 foot allowable height limit in
the CN zone was false. The only time one could build more than 25
feet in' a CN zone was when the third floor of the structure con-
tained residentials. He referred to the minutes of the City Coun-
cil neetinge of February 6, 1978, page 629. His letter of March
21, 1983, Attachment 0, quoted "...Ex -Mayor Carey and .his legis-
lative history when hee put that into the zoning ordinance..."
botn the legislative history and the_ zoning ordinance were clear
-that the project -did not meet the . zoni ny envelope. . In order to
adopt PC zone, three specific findings must be made, and since
the application .was -under Proyram 7-A,- it must. meet the existing
on -site zoni ny envelope. The.; proposed project failed all of the
tests. On page -20, of the !January 5, 19113 Planning Commission
minutes, Comm=issioner Wheel_.er. "raised the question about whether
the project in general eMet the. underlying zoning enVelopea't Mr.
Freeland stated " that it was a judgment call one the part- of the
Commission. It was noted judgment`. tail --the specific .findings
must -be made and there .most be a wil l ingness to defend these find-
i nys An court i f eneceSsOrre. He Boric l tided by sayi_rg that when
Abraham. Lincoln was aTyoung, lawyer, he .tried :a case which involved
an adverse witness.'.- He fina.i-ly asked the ;witness how many legs,a
dog would have if he ` cai_1ed the tail a -.,leg. The witness said
five. -Lincoln said ` there -would-."only ,be -four because calling a_
tail a leg did not `make - i_G one. Saying that the project conformed
to the- zoning -did not make At so.
3 1 7 0
4/18/83
Mayor Bechtel asked that the speakers make brief comments or the
Counci 1 would --not have .the time to make a decision.
Kirk Hansen., 1iSb University, Los Altos, was a professor of Busi-
ness/government Relations at the Stanford Business School, and was
particularly interested in the .creation of public incentives for
private:businesses. Uuring the. past couple of weeks, he worked
with Agustin Maxemin to try and. put together a package that would
meet Council approval. He believed that the objective to create
those incentives for private business people was an important part
of what 'shoula be bone in the years ahead. The challenge to avoid
the necessity for large government -subsidies and create incentives
for private action appeared to be in line with the era of Proposi-
tion 13 and private action. He opined th:;t a well designed ircen-
tive wuuid include three characteristics as follows:
1. Be sufficient for the private party to implement the City's
desires. That. was attempted by the creation of Program 7-A to
encourage affordable housing units;
2. Be closely controlled 'in order to remain in the City's best
interest; and
3. Would yuard against any windfall which might accrue to private
businesses who made use of those incentives.
He believed that some uncertainty still existed regarding the
shape of Program 7-A, but it basically fulfilled the three basic
objectives of creating incentives. At least one developer was
willing to use the 7-1 structure to propose a project which
created more housing. The creation of affordable housing, in both
the units. officially designated "affordable" and in the market
rate units which were priced lower than those proposed under the
previous Cox project, indicated that the encouy'agement to create
more affordable housing units was achieved at least with ono
developer's interest. Further, the Council maintained the right
to review each individual PC proposal and each, use of Program 7-1,
and the concern that the project might indicate the City's will-
ingness to create a broad set of .ones with great density in the
same particular area was unfounded. Regarding windfalls for the
private developer, it was clearly indicated that the developer: did
not propose tce develop the land to its maximum potential profit
for ARMAX or Mr. Maxemin, which achieved the City's objective to
use the incentive without the windfall, in his opinion, The proj-
ect's profit potential was significantly reduced by its structure,
and was exactly what the City should have achieved. Clearly,
there could be no incentive program without :an example in exis-
tence. ,Having sought to create an incentive program, the City
should seek the opportunity to create a project to carry out that
objective. Every project would have to be considered carefully,
and the Council would have to look at the individual projects
before ,fi uring cut how they must be shaped to meet the public
objectives -4 He urged that the Council seriously look at, the proj-
ect and recognize the developer's willingness to work, with the
City to. structure it in a way which Would meet the objectives of
the nei ghbdrfood and the City. ,Given that willingness, --the City
would be backing- away from a commitment, to the creation. of the
incentive proyran and passing ,_up an ' opportunity -to make use of the
willingness .of private. -business people to try and address public
ubjecti ves if the -:project --was denied. Ff na 1 iy, reference Was cony
tinually made regarding the ."affordability" of the,. units. He
pointed out that in -previous testimony, Sylvia Seman :indicated
that , the units compared fa v_ora b l y with the units being developed
-by the Palo Alto :dousing .4orporation Despite the fact : thatt the
"a-tfor'.d bl_e" units, were in a: price. -range --that appeared to be :hig►i,
they were "affordable" giver, -`today's` housing structure-- in tfalO
►�l l:o, jie urged that -:the; Council.;; not back away from- its cornmi tment,_
to create. incentives far affordable housing and to 'find sbne -way
Of ma* i ny tfe project `work.
Denny Petrosian, 44J Ventura Avenue, said she _favored the project,
but took offense at anyone who suggested that her neighbors who
opposed the project were not sincere. In her opinion, only sub-
sidized housing made sense on the land because she also had the
memory of the ;3U farm Kies that were evicted. It was very painful
tor many people in the ne,i yhborhood to see those people, who did
not have cars to make traffic problems, have to go. The two pans
presented --Cox and Stanford Plaza --appeared to be realistically
possible given the current housing market in Palo ,Alto. She
believed it Was important for the Council to Make a distinction
between the two plans. She opined that - the project before_ the
Council .represented the most significant breakthrough in housing
to come along in a long time. The developer would make a profit
on the development, but for the first time, a developer asked not
how high a price could be realized for the units, but how low the
prices could be, .Not only was the site and project reasonable for
a PC, it was a lesson for Other developers_ to- build housing for
that which the market could not bear rather than taking it for all
it could. Erie zoniny and potential square footage of the. site
allowed a Maximum of approximately two-thirds commercial and one-
third residential. The proposed plan was approximately the re-
verse with one-third commercial and. two-thirds residential. The
commercial usage was half what it could be under the zoning. She
preferred that the site have no coinnercial and be entirely resi-
dential, but the market appeared not to permit that.. She urged
that the Council not approve or deny the .particular project on the
basis 'of its commercial square footage. That would not solve the
severe probiem_,in Palo Alto of commercial expansion-. Commercial
projects .would continue oto be approved and would continue to
create jobs. She suggested that the council change the land use
of every commercial, `office, industrial, etc., site which could
possibly be appropriate for housing, rezone it accordingly and
pass an ordinance similar to the condominium conversion ordinance
which stated that housing may be built only within the price range
of Palo Alto's lowest income employee population. At such time as
ten percent of Palo Alto's housing was within range of that group,
then higher priced housing would be allowed within the range of
the next highest income, etc., until all of Palo Alto's housing
was affordable to all of Palo Alto's employees. At that point, it
would be appropriate to allow the construction of higher priced
housing. Land prices would drop quickly to permit construction of
those lower cost units .since that would be the only construction
possible. She urged the Council .seriously explore that possibil
-ity with the- City' Attorney. Whether the City could legislate that
type of public benefit was unknown, but in the meantime,' she urged
Council approval of --the p^upasr d innovative. project.
uai i Woolley 1005 Mariposa, said Many -reasonable reasonable and thoughtful
comments were heard from" both the neighbors and the community.
She poi ntecle .out that the proposed units Would not only be afford-
able for thy first buyer, but for successive buyers. it was one
matter to build affordable_units, but was. quite another to ensure
that they remained in the affordable stock'. The proposed unit`.
wou l d because they would be under theaegis of the Palo Alto •Hous-
ing Corporation and, treated much. like MIR -.units. She hoped the
Cuunc i i.` could work out the details of the project in -a way that,
the community could benefit from the 13 permanently affordable
units without the extra 11 units having a significant_ impact on
the neighbors.
David Jeong, 4056 Park Boulevard, said Program 7-A of the Compre',--
hensive Plan was mentioned alt night, but the rest of the Plan was
neglected. Four of the five major:Objectives of the plan ;.were to
maintain the low dens ty in Palo Alto, slow. employment growth-,
reduce traffic .and or`ange the characteristics .of_ El..Camino, Real.-
People other th4n the Council read the City staff , -reports,,, and - the
August 6, 1982, , staff report on employment intensification said,
that new employment was running 5.9 percent above the .1980 est.i-
mate. If the 5.9 percent increased every' two years, in- ten .years
3 1 --7 2
_:4A0le03
1
there would be 33 percent greater employment or well over 90,000
jobs in Palo Alto. During the formation of the Comprehensive
Plan, he was president of the Ventura •Neighborhood Association.
The City asked for input from the public to help develop the plan.
Many hearings were held by the Planning Commission, and a meeting
was held at the Ventura School. Many members of the Ventura
Neighborhood, Barron Park and Charleston Meadows Associations
attended the meetings and participated in the civic endeavor.
Their aspirations were expressed for the development of Palo Alto
and their neighborhoods, El Camino Way was determined to be an
ideal location for the neighborhood commercial zone. He consid-
ered the neighborhood commercial designation for the proposed site
and the Comprehensive Plan to be a promise to the people. He
believed that the majority of the people in the Ventura_ Nei.ghbor-
hood. Association had remained steadfast in their desire for the
neighborhood commercial zoning. The people of Palo Alto had.
spoken. If there be no desire to heed input from the public, then
why bother to ask. He believed the City must keep face with the
people and deny the proposed zone change. .
Kimberley Domino, 2101 Cornell Street, withdrew her speech in the
interest of preserving time.
Mayor Bechtel declared the public hearing closed.
MAYOR BECHTEL RE ITEMS TO BE COMPLETED AFTER 11:00 .m.
Mayor Bechtel said that 10:30 p.m., the hour at which the City
Council decided which items would be taken up after 11:00 p.m.,
had past._ phe would move a continuance, and suggested that the
public hearings on Items 111, Planning Commission recommendation
re zone change application of Architectural Design Group, and a12,
Planning Commission recommendation re application of the City of
Palo Alto to extend the (P) Pedestrian Shopping Combining Dis-
trict, be opened but only for the purposes of a continuance to the
next meeting. She did not believe the Council could possibly com-
plete the agenda tonight because approximately 20 people wished to
address the Council on Item #15, regarding the Transient Occupancy
Tax.
CONTINUANCE OF # 14, 16, 17, 20 AND 21
NOTION TO CONTINUE: Mayor Bechtel roved, seconded by Fazzi no,
that Items #14, F&PW recommendation re extension of the residen-
tial conservation financing program; #16, Planning Commission
recommendation re study of the Embarcadero Road/East Bayshore
Area; #17, Planning Commission recommendation re South Peninsula
Veterinary Emergency Clinic; #20, Foothills Park Erosion Control
Project; and #21, Effect of Handicapped Requirements be con-
tlnued.
MOTION PASSED unanimously, Levy absent.
Mayor Bechtel said that if anyone who was waiting.. for Items 14,
16, 17, 20 or 21 they would not be taken up this evening. The
question was now whether Items 11 and 12 could be done, which she
proposed only be done after Item 115. She asked if any legal
problems existed with continuing items 11 and 12 for three weeks.
City Attorney Diane Lee said there was no problem if they were
continued to a date certain.
City Manager Bill Zaner requested that staff be given a chance to
ascertain` which dates would bebest to hear Items 11 and 124:
Mayor Bechtel suggested that Item 110 be completed, . and that a
deci sign. on Items 11 and 12 be made at that time.
PETURN .TO ITEM`: 10, APPLICA_TIONOF CARRASCO & SMITH
C.ouncilmember Cobb said he believed-- that the project before the
Council was beautifully, designed and he complimented the arch
1
1
tect's skill and taste. Despite its aesthetic qualities, its
density was high, there was a problem of compatibility with the
neighborhood, potential parking spilled over into the
neighborhood, traffic generation into the neighborhood, and some
strong opposition from the people who already lived there because
of those very impacts. When he considered a project such as the
one proposed, he tried to weigh the larger community benefit
against the feelings and concerns of the people who had to live
with .it after it was built. He asked himself how he "would like to
be its neighbor. On balance in the subject instance, he was on
the side of the neighborhood. The City should, of course,
continue to make every possible effort to provide reasonably
priced housing in Palo _Alto. The net gain of 60 plus housing
units was small compared to the demand for literally tens of.
thousands of housing units that existed in Palo Alto. In order to
meet that demand for housing, the City would have to build high
density high-rises all over town, and no one was willing to accept
that. The question was whether the proposed net gain was worth
the impact on the larger neighborhood already there. He did not
believe it was. The jobs/housing imbalance was already discussed,
and by approving the project, the City would be making a negative
contribution which did not appear to achieve some of the goals of
the Comprehensive Plan. He had commented on parking_ so many times
before, but reiterated that the parking problems in some areas of
town .were already beyond the City's reach for a solution, and he
did not want to contribute to creating that problem in other parts.
of town. He supported the objectives of the developer --it was a
tasteful and creative design --but its impact on the neighborhood
was too much.
MOTION: Counci lmeaeber Cobb moved, seconded by Renzel, to uphold
Planning Commission recommendation for denial of the application
for change of zone district to P -C, finding that:
1. The site is so situated, and the use or uses proposed for the
site are of such characteristics that the application of gen-
eral districts or combining districts will provide sufficient
flexibility to allow the development of a suitable project as
evidenced by the previous project approved for this site;
2. The proposed development of the site under the provisions of
the PC planned community district will not result in public
benefits not otherwise attainable by application of the regu-
lations of general districts or combining districts in that
the number of affordable housing u€ -its proposed- (eleven) are
not sufficient to balance the detrimental effect of the bulk
of the project; and
3. The uses and the site development regulations proposed are not
consistent with the Palo Alto. Comprehensive Plan, and with
existing and potential uses on adjoining sites or within the
general vicinity- in that the project is not consistent with
the Comprehensive Plan Program 7A since the total floor area
and site coverage of the project and the height- of the com-
mercial component exceeds that permitted under the present
zoning.
CounciImember Fletcher said she would reluctantly support the
motion. There was an element of attractiveness in having a mixed
use development especially if the - housing costs could be reduced
because of the . commercial element. She was upset :; that more
parking was required for retail than .for office uses because she
understood that office uses took up most of the parking spaces
downtown. She hoped that question would be .addresses at another
time.time.' She did not'quite agree with the decision of the -ARIL to
remove the parking garage access from James Way. The analysis
completed by > the Transportation_ Division _ indicated that the
entrance and exit :.from: El Camino Way would be awkward,' and was
projected not to reduce trips. She believed she could -attest to
that because she used James Way all the time even though her
3. 1=7 4
4/18/83
driveway did not come out of there. It was a recognized shortcut
to East Meadow, but would only be used by. those people going
east.
Councilmember Witherspoon said she would oppose the motion to deny
the .P -C because she believed the project was imaginative and
exciting. Ite was very dense, but among all of the dense projects
seen by the Council lately, it was the most livable in her
opinion. It was the first project she had seen in a long time
that had what Tad .Cody always referred to as "the human scale."
She took exception with the alleged jobs to housing imbalance she
kept hearing about. That assumed that there was only one job
holder per household in Palo Alto, which was untrue. She believed
that the last statistic she had seen regarding jobs per household
in Palo Alto, was 1.8 jobs, which indicated that the proposed
project was approximately a wash in that regard. She also took
exception with Councilmember Cobb's observation about the traffic
impact. The project virtually fronted on Ei Camino, and like it
or riot, El Camino was a busy thoroughfare. Further, the developer
did his best to put the commercial part of the project in an area
that shielded the residential from the impact of El Camino. She
agreed with Councilmember Fletcher that it made more sense to have
the garage access on James, but that issue was not .before the
Council. She was concerned that the Comprehensive Plan, Council
and Planning Commission had done lip service stating that the City
desired to have the type of project proposed, but when they came
to the City, fault was consistently found. She found the project
to be imaginative and would support it if the motion were de-
feated.
Councilmember Renzel said she had held a strong concern for a long
time about the overpotential of the City's zoning envelope in all
zones. For many years, properties were not developed to the full
capacity of the zone, and at ;the time the zoning ordinance was
created for Palo Alto, there was a certain assumption that the
development pattern would continue and the zones tended to be
designed after the older zones. Now, the City was seeing fall
development of the zoning envelope and very serious problems
taxing the infrastructure, some of which were well outlined by
Councilmember Cobb, problems with parking and traffic. Generally,.
the citizens were concerned about the massiveness and density of
development which was now occurring. She believed that any time
the City was going to allow anyone to exceed what she considered
to be excessive standards of the current zone, it should have a
significant public benefit --not a significant private benefit.
Many private individuals would like to live in Palo Alto, but not
even those people who presently worked in Palo Alto could possibly
do so, and those who just wanted to live in Palo Alto could not
even be Considered. Public benefit meant providing for a diverse
population, families with children, and people who really were
disadvantaged in the marketplace. Those public benefits were not
sufficiently found in the proposed project to compensate for an
already excessive zoning capacity. She believed that the proposed
projectnot only had the potential for an individual impact, but a
_cumulative impact on the entire neighborhood by" the redevelopment
Within the area. The Council must acknowledge and. face that fact,.
and without evidence of some compelling public benefit, she could
not support the project.
Councilmember EYerly opposed the motion, and believed that the
question before the Council tonight was one of priorities. The
proposed project was the first attempt to use Program 7-A in the
Comprehensive Plan. The program was a viable one, and voting
against the proposed project would destroy that viability and
the ability to have developers come in and offer some more afford-
able housing. He reminded the Council that the project was to be
built : on three different zones before itJ went to PC. The CM zone
was a large section of that ground, and he believed there would be
many more ramifications of ;traffic and noise pollution, etc., if
that parcel of prope-rty were developed as was indicated in the
zoning plan. Although he supported the idea Of housing mixed
with commercial, if the motion on the floor was defeated, it did
not mean he was happy with the exact proposal. The front build-
ings for commercial, the top and middle floors to be used for
office, and a mixture in the ground floor needed to be worked over
by the Council, particularly if the extra height were allowed on
the front buildings. He believed the- top floor should ,go to
housing. If the motion failed, he had a number of questions with
regard to the ordinance which was proposed in connection with the
alternative.
Vice Mayor Fazzino said that as he counted the votes, the issue
would not pass for several reasons. He echoed Councilmetuber
Cobb's comments with regard to the design of the project, and
said that regardless of whether the project was appropriate for
the site, one had to applaud its architectural design. In fact,
he wished it was the design and density for the Stanford West
project rather than the one which .was otherwise before the Coun-
cil. The critical question was, whether affordable units and the
benefits to the community would outweigh the negative: impacts on
the adjoining neighborhood. There was no doubt in his mind that
the project would have an impact on the neighborhood and he had
wrestled with the degree of that impact over the weekend and
through a number of visits. He continued to be concerned about
the parking situation, which he believed was already a serious
daily concern to local neighbors. If he had his druthers, he
would argue that the issue should be continued for further dis-
cussion by the Planning Commission to resolve some of the parking
issues and the issues raised by Counci lmember Eyerly. The issue
would clearly be defeated tonight and because of that, his vote
would be in favor of the project. He recognized the many legit-
imate concerns of the neighborhood, but also recognized the
outstanding features of the project. He was persuaded to support
the project because it offered the community affordable housing
both through the BMR units being provided, and the 11 other units.
Despite the almost unbelievable salary and housing prices being
bandied about, he said there was no question in his mind that
there was a large middle class market in town for the kind of
units being offered in the project --units for people who were
otherwise shut out of the market rate housing in the community.
He echoed the comments made by John florthway at the Planning
Commission meeting that when affordable housing was pro ided in
the community without the benefit of public subsidy, it must be
underwritten by commercial and office areas. For the most part,
that was the case with the proposed project. Philosophically, he
was concerned that the developer was given support by Council
policies and earlier ARB and Planning Commission discussions for
putting together thetype of project proposed. He could not find
any logical or specific reasons why the proposal was defeated at
the Planning Commission level He believed everyone shared the
gut -level concern about the impacts,: but at the same time, was
bothered that through a series of steps, the City Council, Plan-
ning Commission` and ARB lead the developer and others to believe
that a project such as the one proposed could succeed in the area.
He was concerned about the City's lack of faith in its final deci-
sion, The proposal conformed to the zoning in the area, and it
was clear that the defeat of the':: project could lead to a worse
proposal. That was not a good enough reason to support the
project, but it was something to keep in mind. If the Council
rejected the project, it was incumbent upon the City to look
carefully at the policies again'regarding affordable housing--
Program 7 -A --and consider whether it was possible for any devel-
oper to come in with that kind of proposal. He further °believed
that it was important- to go back and consider changing the zoning
in the area so that other developers were not lead down the
*primrose: path"' believing that :their .Preject could go through. He
believed that .Mould further address . the gut concerns of the' neigh-
bors in the area about the impacts of such a proposal. Even
though his vote _might be no more than- symbolic, he would vote
against the Planning Commission _recommendation to deny' the P -C
because there were some outstanding qualities in the project,
particularly its affordable housing nature, and he - hoped that
another project could be brought before the Council, in an area
and form without as many negative impacts on the local community.
Councilmember Fletcher suggested that Program 7-A in the Compre-
hensive Plan be examined and perhaps reworded in order to better
define its intent. She was not convinced that parking was the
problem --she believed it was bulk and scale. She preferred to see
a project like the one proposed, but somewhat scaled down. She
asked if there was a way to' go --if the developer agreed to return
with a revised design --instead of rejecting the project and for-
cing the developer to start the process again.
Director of Planning and Community Environment Ken Schreiber said
the Council had that prerogative if the applicant agreed. If the
project were referred back to the Planning Commission or the ARB,
or the Planning Commission and the ARB for an in-depth review of
the design, Vice Mayor Fazzino's comments regarding how far a
developer had to go through a process before getting a decision,
came immediately to mind. Logically, that action would be inter-
preted as a clear message of the Council's sincere interest in
approving the project if things could be rectified. If certain
problems could be identified, the matter could be referred back to
one or both .:bodies.
Councilmember Fletcher asked the developer if he would agree to
return to the Council with a scaled down project.
Mr. liaxemin responded that they were committed to the project and
had put a lot of effort into it. He was disappointed with the
outcome, but happy that some Councilmembers recognized that there
were more benefits than negatives with the project. He was wil-
ling to return if the Council made a reasonable proposal or work
was started with the City staff. He did not want to go along for
months only to come back to the same situation, He was % 11ing to
come back and work with City staff on a reasonable time frame, to
work something out. That was his position from the beginning, and
he believed that the City staff, Palo Alto Housing Corporation and
Planning Commission would attest to the fact that the developers
really tried to propose an acceptable project.
Mr. Schreiber said that if the matter were continued, staff would
need some clear direction from Council in terms of the issues to
be looked at and what results were envisioned as appropriate.
There was a multitude of designs to pursue, and it could be a long
and frustrating process without some direction.
SUBSTITUTE MOTION: Councilmember Fletcher moved that the matter
be referred back to the Planning Commission.
Mayor Bechtel said she did not mind referring the matter back to
the Planning Commission, but did not want it to be done open
ended. She believed that if the Council truly wanted the devel-
oper to work with staff, the Commission and ARB to reduce the
density or the amount of commercial space, specific < parameters
would have to be set. The project was something like 23,500 com-
mercial square feet, and 65 units, - If the Council was referring
more to the Cox project which was 12,500 commercial square feet
and 54 units, it needed to be more specific.
SUBSTITUTE MOTION DIES FOR LACK OF SECOND.
Councilmember Klein was concerned about referring the matter back
t� the Planning -Commission and ARB because the process had taken
far too long and he was somewhat embarrassed by the amount of time
the developer was subjected, to in : headings. He realized that the
project required careful review, but : was bothered by how long the
proposed project was before the City's- review process. He asked
about the City's::standards for requesting that a developer make
changes and continuing the matter at the -Council level.
3, 1 7 7,
4/18/83
1
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Mr. Schreiber said that the course of action was the Council's
prerogative, and the time would relate to agendas has well as the
developer's ability to respond tothe points.
Councilmember Klein said he recalled that when the Council asked
for --relatively minor changes, the matter was retained at the
Council level and not referred back.
Mr. Schreiber said that procedure had happened in the past.
Counci l member Klein said he would go along with a continuance, but
preferred that the matter be retained at the Council level unless
dramatic changes occurred. The Planning Commission and ARB had
already provided input, and referring the matter back to them
would not be a good use of anyones time. Regarding the main
motion, he would reluctantly support it. He debated the issue, as
had Vice Mayor Fazzino, because the call would be a close one. He
agreed with most of the comments made by Vice Mayor Fazzino except
he came down a little bit on the other side of the line. The
decision was a difficult one because anytime the required housing
was built, .given the amount of available space in Palo Alto, some
neighborhood would be impacted. It did not advance the decision
process to say that housing was needed so move ahead. In order to
solve the housing crisis, the neighborhoods would have to be sev-
erely impacted and the trade-offs would be unfair. On the other
hand, if the neighborhoods were never impacted, no housing would
be built. The question then became one of degree --how much impact
was worth the trade-off of obtaining the additional housing. Each
project thus had to be carefully weighed on a case -by -case basis.
He found that the impacts of the proposed project outweighed the
benefits. He was particularly concerned that, as he read Policy
7-A of the Comprehensive Plan, the proposal went several steps
further than what was intended. The policy referred to smaller
units, but he believed it was clear that it was to be within the
size building that would otherwise be applicable for that particu-
lar zoning. That was not the case with the proposed project.
Program .7-A was not designed to increase the size and bulk of the
building --it was designed to put more units in the same size
buildings. For that reason, he believed the proposed project was
not a fair test of Program 7-A, and was an abuse of its intent.
Further, he was concerned about the jobs/housing impact. When
voting on the City Council, he consistently tried to maintain the
theme that he would support nothing that worsened the jobs/
housing -imbalance. He recognized that the project provided
housing where none might otherwise .be, but was concerned about the
amount of office and commercial space. He came up with different
results when he used Councilmember Witherspoon's figures and,,did
not believe that there would be 1.8 job holders per unit given the
small site of the "units. The City would put itself a little
further in the hole by the number of, jobs created, as compared to
the number of housing units offered, and he also preferred a
reduction in the amount of office and commercial space. He did
not believe Palo Alto needed more office space, and refused . to
believe , that the only way to solve :the City's housing problem was
to build more offices so as to : subsidize the price of housing
units. In his opinion, that was not an acceptable way in -which to
go. Additional office space in Palo Alto had all kinds of clear
negative impacts which were.. not discussed since the focus was on
the surrounding neighborhoods. Offices meant people traveling,
ard Calvin Gunn spoke about his secretary having to travel from
San Jose. That ° was true all over' Palo Alto, and traffic spread
throughout the community .in a variety of ways. The project : was
small, but Palo ,Alto had to draw the line. The City had been
inundated by . the amount Of j;pbs rcreated--morethan its fair share.
Jobs were necessary for the economy, -:bqt Palo Alto could' not
tolerate the continued expansion of- its job base at its > current
rate, and hi would not participate in making decisions that would
aggravate _than situation. He believed the project had too much
commercial, and if less commercial meant less subsidy : and higher
priced housing units, he would, do with less of a subsidy. In his
opinion, the project was savable.. Many projects around town were
not aesthetically designed, and there were many alternatives for
the site which would not require Council approval. When he
thought of those factors, he urged the developer to try and make
changes that could produce a majority of the Council who supported
the project. He recognized how the developer worked with the
neighborhood, and the thoughtful and constructive comments made by
the neighorhood, and hoped an accommodation could be reached. He
did not believe the results would please everyone, but with enough
changes, he hoped I, could attract a majority of support. He
concluded that he would support a motion to continue at the
Council level. If that did not pass, he would vote to uphold the
Planning Commission recommendation.
Mayor Bechtel said she would support the main motion to oppose the
project because she could not support the amount of commercial
space and the project's density. She would support a motion . to
continue the matter if the developer agreed to come back with a
somewhat less dense project with less commercial or with some
retail. .
Councilmember Eyerly said that as he understood the project, the
allowable housing under the old zone was what the developer pro --
posed for market rate housing, but the affordable housing units
were above that. He was not sure that the developer ,was in a
position to lower the density to the satisfaction of the neighbor-
hood, and did not want him to think that the project would have no
objections to the high density because of a continuance. He hoped
that if the matter were continued, the Council would realize that
to develop more housing in that area, the project would have to be
more dense than what the neighborhood would like. Regarding the
front building, he believed the project was wrong because there
was so much office - space already on El Camino. With some of the
space now designated for office being changed to housing, which
was as much affordable housing as possible, the project might fly
with the proposed density. When a developer brought housing down
to the El Camino area, which was done several times -along E1 1`:
Camino, it created dissension with the neighborhood. There was
dissension in the Barron Park and Ventura neighborhoods in the
past. Those developments were viable and the neighborhoods were
not now upset with them. The proposed project had good .ideas and
design, but in order to fly, it would have to have a decent
density. If the Council continued the item and retained it at the
Council level, he expected staff to look at changing some of the
office complexes to housing and attempt to retain as much as
possible in affording housing. The ground level on El Camino for
commercial, with some mix of retail and office or service -type
office with the rest of the building being for housing, was what
the Council would like to see. With those comments, if Council -
member Fletcher was in a position to make a motion for continua-
tion, he would second,
\.
SUBSTITUTE NOTION TO CONTINUE. Councilmember' Fletcher moved,
seconded by Eyerly, to continue,the item at the Council level to
May 9, and staff to work with the developer in proposing a package
which would be acceptable to the Council.
Mr. Zaner was concerned that staff would come back with a revised
project with as much public participation as tonight. The agendas
to the next month were booked solid. and he could not see the item
returning until early June.
Mr. Maxemin said that date was too late.:
Vice Mayor Fazzino-suggested that the project be put on the" agenda
of May 9 with -the expectatiron that the Council might well need a
special meeting meetingg to handle cable television and a " couple of other
important issues, but that could be -:weighed next .week -"after plow.
i ng through that agenda. He suggested that the project at least
be -put on the .agenda for May S.
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Mr. Maxemin said that was fine.
1
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Ms. Lee said that since the matter was being continued to a date
certain, staff did not need to renotice the hearing. Everyone
present was aware, and all of those who received notice should be
aware that the matter would be heard on May 9.
Mayor Bechtel said she hoped that members of the public would
speak briefly at that hearing.
Councilmember Renzel said she would oppose the continuance because
she was concerned that it would not be possible to adjust the
project to bring it into parameters which she believed were satis-
factory. ,.She saw a project more on the order of the one already
approved for the site. A lot of her concerns were well outlined
by Councilmember Klein. Regarding the jobs/housing imbalance1 she
believed that whenever a project failed to make a significant dent
in the jobs/housing imbalance, it did not provide a housing
benefit to the City. She believed it was necessary for the
Council to see a significant ratio of housing to jobs --ideally
with no jobs at all --and that was not likely with the proposed
project. The affordability, question was still up in the air, and
unless the units were truly affordable, she saw no point in having
more of them. Those people who were advantaged in the marketplace
had choices, and Palo Alto needed.a real contribution to the lower
income scale in order to truly receive a benefit which would
justify a change in density. Several Councilmembers spoke to the
bulk and mass of the project, and she preferred to see more open
space at the ground level and less bulky buildings.
Councilmember Eyerly said that an ordinance was presented in the
event the Council supported the PC zoning; He did not see any-
thing with regard to deed restrictions on the affordable housing,
and asked why it was not included.
Zoning Administrator Bob Brown said the deed restrictions were
discussed at the January 25, Planning Commission meeting. Sylvia
Semen of the Palo Alto Housing Corporation indicated .that they
would be dealt with by the Housing Corporation board and comeback
through the subdivision process as part of the subdivision agree-
ment.
MOTION: PASSED by a vote of 6-2, Renzel , Cobb voting ''no, and
Levy absent.
MOTION TO BRING FORWARD ITEM #15, TRANSIENT OCCUPANCY TAX
MOTION: Councilmember Eyerly moved, seconded by Klein, to bring
forward Item 115, Transient Occupancy Tax.
COUNCIL RECESSED: FROM 11:33 .m. TO 11:35 .m.,
ITEM ;15, FINANCE AND PUBLIC WORKS COMMITTEE F&PW RECOMMENDATION
pp
r - s 1 R ;: .. .w �. •, - i ti v [.s e . -
Councilmember Klein said that the Finance and Public Works (F&PW)
Committee recommended by a vote of 3-1, Councilmember Levy dis-
senting, to increase the _transient occupancy tax from its present
six percent to ten percent, effective May 1, 1983. The Committee
believed that the City's sources of revenue were .shrinking and
there were very few taxes over which the City haddirect control.
Since Proposition 13, the City's control over property taxes were
effectively eliminated and the same thing was true of sales tax.
As the City's budget became tighter due to a variety of factors,
the, Committee looked for alternative sources of revenue. The F&PW
Committee concluded that the Transient Occupancy . Tax was . tie best
source of revenue available to .the City, at the present`` time.
Another factor in_the Committee's recommendation was the court
decisions of last year ..which made it possible for. the City to
adopt that, tax' increase without being required to have a two-
thirds, vote of the elctorate., The Committee - considered the
possibility of increasing the tax from six percent to .ten percent
but only levy it at eight percent or some other number, and was
advised by the City Attorney's office that given the state of
present legislation and the court decisions, that would not be
possible. If the City wanted the tax at ten percent, it must be
levied 'at ten percent. The Committee recommended that the tax be
effective May 1 because of the threat of legislation at the state
level. A window was presently open, due to the' State Supreme
Court's decision of last year, which could conceivably be closed
at any time by an act of the legislature, and the Committee wanted
the earliest possible effective date. After discussion with the
offices of the City Controller and City Manager, the date was
concluded to be. May 1.
MOTION: ` Counciloae+aber Klein for the Finance and Public Works
Committee moved approval of the staff recommendation t.o approve
the ordinance increasing the Transient Occupancy Tax from six (6)
percent to ten (10) percent effective Nay 1, 1983.
4ififffifibrolikentitled "ORDINANCE OF THE COUNCIL OF
0 ALTO AMENDING SECTION 2.33.020 OF THE
PALO ALTO MUNICIPAL CODE TO INCREASE THE TRANSIENT
OCCUPANCY TAX FROM SIX PERCENT TO TEN PERCENT"
Mayor Bechtel announced for the record that the Council received
between 20 and 30 letters in opposition to the Transient Occupancy
Tax, which were on file in the City Clerk's office, and urged
those who wished to address the Council not to be repetitive.
Erik Christensen, 4164 El Camino Real, was the owner of the Town
House Motel , and said that since he and his wife came to Palo Alto
16 years ago and bought the Town House Motel, they had seen the
ups and downs of the business. Because he had owned his little
hotel for so many years, he was able to employ a 62 -year -old widow
as a full time manager, a full time maid who supported most of her
family with her income, and a younger man with five children who
supported his family from whatever he made from the hotel. The
past year was not a good year, the business went down and many
businessmen who were the main part of their business, who used to
come Sunday and Monday and stay for the week, only came in and
stayed one or two days. Sometimes they only rented out seven or
eight rooms on the weekends, which also occurred with the big
hotels, and weekend rates were slashed by 50 percent in the hopes
that a traveler might stop by. If the business went down any
further, the result for many would be to lose their hotels, or the
business owner's might be able to operate the "business themselves
as it was before. The managers would have to leave, and he .won-
dered where his 62 -year old widow manager;, would get a job. His
hotel represented some problems on a small. scale, but he commented
that if business went down further, the little people on the pay
scale at the Hyatt Hotels, etc. would be the ones who suffered
the ones who could not afford to lose anything. He believed that
the Transient Occupancy Tax was, unfair even at six percent, but
ten percent would chase a lot of Palo Alto's guests down the
streets to Mountain View,, Sunnyvale and Santa Clara where the
rates were four to six percent. He respectfully requested that
the Council not raise the tax to ten percent and to leave it at
six percent.
Pete Mcel or.key, Attorney, #2 Palo Alto Square, representing the
hotel industry, said having sat through the past four hours, he
believed that with regard 'to each item` -on 'the agenda, the most
impressive factor was the careful consideration of the impacts of
an action on the people- -not just the neighborhoods.., He noticed
that everything the Council did tonight was ._-:characterized by —the
study of impacts. Yet, with regard to. the' Transient Occupancy
Tax',- staff made no study of the impact` -on the hotel business in
Palo Alto. The FAPW Committee, who ,-studied the issue, made no
comments with regard to the . impact psi' the hotel business ,and
tonight's action that would make a tax effective on May 1. As
explained_ by_ Councilmember Klein, the tax was essentially to raise
somewhere between $900,000 and $1,000,000 to partially defray
expected expenses that were not yet certain. Roughly $400,000 of.
the expected compensation from the tax was federal revenue
sharing. He did not believe there was any evidence before the
Council to indicate that Congress was not going to renew federal
revenue sharing. Two items were cited in the staff study of
March 17 --an $85,000 loss in State Subvention and a $64,000 in the
Community Block Development Grant, which totaled about $150,000.
The tax would raise nearly $1,000,000 against $150,000 that was
being lost and if the state acted, a possible state subvention of
another $400,000 and $400,000 of revenue sharing. He was struck
that to pass an urgent tax which was in effect a 66 percent
increase --from six percent to ten percent --was a hasty action to
take based on speculation as to what might happen in the future.
Regarding the impact on the hotel business, the next few minutes
would be the only time a major industry of Palo Alto would have to
present its case. His letter to the City Council, dated April 18,
was completed in the last few hours of yesterday and this morning,
because the hotel business did not receive notice of the proposed
action until April 4, and had approximately two weeks to try and
assemble and present the Council with the facts set forth in the
letter. He noted that the top of page 2 described the hotel
business in Palo Alto. Very little tourist business was done, and
the occupancy was commonly the highest on weekdays, dropping to 50
percent or below on weekends, except for major Stanford football
games, graduation and on those occasions when a major convention
or a conference could be attracted, such as the Democratic State
Convention, Republican State Convention and business conventions.
Those hotels and motels essentially served as support facilities
for Stanford University and the businesses of Palo Alto-- Hewlett
Packard, Syntex, Stanford Linear Accelerator and primarily Stan-
ford Hospital. He noted the competitive nature of the business,
and commented that in order to competitively attract conventions
and conferences on weekends when the occupancy dropped to 50 per-
cent or below, the larger proprietors commonly offered up to 50
percent ..reduced rates for those periods, and cost competition with
adjacent communities became a major factor. The areas of compe-
tition to support Palo Alto and Stanford were essentially Menlo
Park, Mountain View, Sunnyvale, Santa Clara and possibly San Jose
when tal king about the Silicon Valley area. Each of ` those five
communities had a tax of six percent except for Mountain View's,
which was four percent. Any competent study regarding the effects
of the tax to a competitive business with the cities surrounding
Palo Alto, should take into account what . might happen if Palo
Alto's occupancy tax went up to ten percent. Two communities --
Belmont and Los Gatos --both of which were small with small hotels
had gone up to a ten percent occupancy tax. He called Council's
attention to page 2 of Exhibit B of his letter, which showed a
study of the hotels and motels in the area in the past three
years. He noted that the seven major hotels had roughly 70 per-
cent of the total occupancy in the City. The occupancy gradually
decreased and the vacancies had correspondingly increased from
107,760 in 1980, up to 111,214 in 1981,: and up, to 116,059 in 1982.
As those vacancies increased and the occupancy rate decreased, the
ultimate result was that the minority employees were laid off
first. Palo Alto's hotel industry had approximately 61 percent of
minority employees, and in a City which was famous for its atten-
tion and sensitivity to minority employees, if .:occupancy went down
ten percent, the maids and minorities_, were laid off, not the
managers and accountants. There were some 17,000 additional hotel
rooms --Palo Alto had 1,816 --and some 1..700_ hew units per year were
planned over the next ten years in the -adjacent communities. The
competition would increase and he submitted that the. Council
should not rush into a staff recommendation that played ho part in
and took no account of the Impact on the industry. ,The Chamber of
Commerce estimates, based On national figures, were that for each
dollar spent in a local hotel, two dollars were spent in local
business, taxis and local service organizations in the; community.
They were talking about a business ,of $24 ; million per year with.
perhaps ;_another $48 million spent in the community which would now
have to compete with a tax that was 60 percent (two-thirds) higher.
than those of the adjacent communities. At the very least, he
believed that type of an action by the Council would justify a
study on the impact on the hotel industry. As he read the argu-
ments that were made in the minutes of the F&PW Committee, they
all related to speed and to the fear that the state legislature or
Congress would do something. He did not believe, in fight of the
other matters the Council had considered, that the proposed action
should be taken so fast without some understanding of the industry
and the impact of the tax.
Mario Raddavero, 721 El Camino Real , said that most of the small
restaurants in the area were owned by residents of Palo Alto, and
they employed a large number of Palo Alto residents. A good per-
centage of their customers were visitors who stayed in the hotels
and motels, As occupancy went down, the restaurant sales also
went down. If that happened, the restaurants would have to lay
off some of the regular employee& and would not be able to hire
young people in the summer as was always done. He believed that
would have a very negative effect on Palo Alto residents, which
was why he opposed the increase in the Transient Occupancy Tax.
Ellen J. Milner, 3760 El Centro Street, gave the City Clerk a copy
of letter to be distributed to the Councilmembers, and said she
supported the speakers who protested the increase in the Transient
Occupancy Tax. Hers was an individual point of view since she had
been a 26 year owner/operator of motel property on El Camino Real,
and was not a corporation or large partnership controlled by out-
side capital. At a time when the City was on an upswing from a
recent economic slump, it seemed obvious that the increase would
reduce future business plus possibly drive off some from the past.
She believed further that the tax was a gross inequity and was
discriminatory in two ways. First, motel guests who paid the tax
received no benefits --did not even have permission to enter
Foothills Park. Second, the tax was not equally applied to all
segments of the transient housing industry, i.e., a hospital or a
transitional care facility. If a patient was in the hospital, one
was considered to be in a transitional care facility before
released to go home and was not required to pay. a Transient
Occupancy Tax. Those people also were transients. She requested
that the Council seriously and honestly consider the matter..:,.,
Daniel Rodriguez, 625 El Camino Real, said that regarding para-
graph 4 of CMR:224:3 which indicated that the City of .Palo Alto
would lose, between 1981 to 1983-84, nearly $150,000. Exhibit 8,
page 2, indicated that the City of Palo Alto received an average
of $100,000 more than the previous year without doing anything for
the motel industry. He did not s.ee many items on the City's
budget increase by $100,000 per year without the City putting a
penny into a study. He cleared up the City Council's and many
citizens' impressions that old `hotels were full all the time.
That was not true --the' hotels were profitable three days per week,
but for four days the hotels struggled with each other and were in
competition with others. The: motel occupancy declined from 77.2
percent in 1980 to 76.5'percent in 1981, and 75.5 percent in 1982.
Other cities in Santa Clara in 1981 and 1982 had increased occu-
pancy., San Mateo County was below Palo Alto in occupancy in 1981
and in 1982 was equal to Palo Alto. The proposed tax would result
in a handicap to Palo Alto hotels and motels and ultimately result
i n' a •: loss of revenue to the ,City.
Raymond Bean was called on to speak but was not present.
Matt Morrow was called on to speak but was not present.
Jack Hickling, 325 Alma Street, registered his opposition to the
proposed room tax increase as a Palo Alto resident and as an
employee of Hyatt Hotels,, Palo Alto. He believed that - the
proposal most: have been generated with the impression that ',it.
would be a relatively painless way to raise revenues which were
1
anticipated to be lost from other sources_. _ If that was the in�-
tent, ample consideration was not given to the human cost of
eMployees who Would be affected by the implementation of the tax
increase,. If rates went up-, or if the aggregate of room rates
including taxes went up in the area, it was not true that travel-
ers coming to .the area .would not tae mindful of the difference.
business travelers, who comprised the majority of business in the
hotels, were able to count and were aware of the difference be-.
tween a ten percent tax and a eix percent tax on rooms. In hi s
judyment, those travelers would be _willing to change their accom-
modation patterns from staying in the Palo Alto area to staying in
cities farther south or immediately north where the rooming costs
were less. .Hotel occupancy was a direct influence on hotel staff-
ing, and the positions most directly affected would be those
referred to as "occupancy sensitive," i.e., housekeepers, restau-
rant employees, banquet staff, cleaning crew, etc. Better than 50
percent of the those employees were members of minority groups and
would 'be most seriously affected by a loss of employment. He did
not believe the ASsue was given adequate study regarding the
effects in human terms on hotel employees, and although probably
not intended, the effects would be disproportionately negative on
minority yroups. That was an effect that a progressive city such
as Palo Alto would not desire. 'He requested that the Council give
the matter further consideration and that the proposal be rejected
in favor of other sources of revenue.
Charles Chien, 3981 Camino Heal, owned a small 35 unit motel, and
stressed that if the tax increased from six to ten percent, the
impacts would be worse on the small business owner rather than on
the big hotels. People who stayed i n the small hotels did so
because they could not afford to pay the high rates. If the tax
was increased, the small motel owners losts any benefits and if
those were lost, the motel could not be maintained. He did not
see the Councilnembers wanted to see the little motels be forced
out of business. The current occupancy. in the small hotels ranged
between -60 percent and less. Ifr the tax increase was approved,
their guests would go to the surrounding areas where the taxes
were lower. He urged the Council to consider the seal 1-, hotel ;;:and
motel owners and not increase the tax.
tiichard Kluzek, President and Manager of the Palo Alto Chamber of
Commerce, #2 Palo Alto _Square, said the Chamber was shocked, dis-
_tressed and disappointed to receive a letter from Larry Moore on
April 4 --dated March 30 --advising that the F&PW Committee had
alread assed the staff recommendation to increase the local
ransien ccupancy Tax from six percent to ten percent effective
May 1, 1983, and that the matter would be before the Council on
April 18. Last year's recommendation was -an increase to eight
percent, effective on July 1, and the Chamber was shocked because
the additional two percent would generate$500,000 more than from
the original proposal and the effective: date was being advanced to
May. Since more than LU motels 'and hotels -in Palo Alto. contained
more than 1,6U0 "convention quality rooms," the.Chamber was dis-
tressed - that none of those owners or ma.na gars were= notified of the
City's intentions, and that no apparent: inquiry was done of the
industry problems or concerns. _ Those: were_ ..the people with the
intimate and expansive knowledge of the- _hospital ity industry and
what effect such cost increases were -1 iisely to have on stheebuOe
n€;ss.e Ih additton,;.many. smaller hotel"s =..that 'Served people of
limited -means' would be impacted if the tax was. increased.. :The
Chamber of Commerce was disappointed at the-_st4Ws lack of coin--
ecern..i n communi cat i n g <-any notice of _ the &PW Committee meeting to
,those affected so that :th-ey could hare: expressed their concerns.
3 he_ ._entire responsibil i:ty° :of --notifying the same group about,
tonight's. meeting was .:left to.. ,. -the--C_h.amber.:-of Commerce
' Local. - at. .the
eleventh hour. Loca l ., hotel s. : and ' motel s - were opposed tv the
-increase by a substantial majority. The '-present tax level pro-
duced about -$1...5 Million in- tax revenue to the C.ity's General
Fund, and the grbup. requested that_ action on the matter,: be _del dyed
for at least 60 to: 90.; days and referred -back to the Committee in
in order for the industry to gather factual data on the subject
and provide economic evidence regarding the impacts of any in-
crease in the current rate. He emphasized that in most nei ghbor-
iny cities containing meeting facilities -and a comparable supply
of -quality roons similar to those of Palo Alto, a significant
amount of the existing room tax was allocated to support a confer-
ence and visitors _bureau. The hotel /motel group requested enough
time_ -to complete its presentation on the subject and for thorough
discussion with the City Council and staff before the Cpuncil took
action to preclude the possibility of the concept not receiving a
fair hearing.
Counci linember Eyerly said he was sorry to hear that- the Chamber of
Commerce did not -receive copies of the individual letters inviting
therm to the FAPW Committee meeting. He did not know if -it it was the
City's responsibility to notify the. Chambers but knew that the
City published its agendas in the Peninsula Times Tribune On
Sundays. Representatives of the C677771=7767777777=not
attend Council meetings any more, and he wondered if the Council
agendas. were followed by the Chamber.
Mr. Kluzek said the Chaiirber of Commerce subscribed to the agendas,
which were previously received on Fridays, but were now received
on Mondays. Today's agenda was received today.
Councilrnember Eyerly asked if .the Chamber of Commerce was aware
that the matter would be addressed by the F&PW Committee after
receiving the agenda on Monday.
Mr. Ki uzek said no --it was learned about from the paper.
Sam Weng, 4234 El Camino Real , was a small motel operator based
near Mountain View, and was in a very price competitive market.
Currently, Palo Alto absorbed a two percent .higher tax than was
the case in Mountain View. The increase from six percent to ten
percent would either reduce their occupancy rates substantially or
come directly out of their income. The tax appeared to be unfair
because the hardest .hit would be the small operators, and he,
therefore, requested that the increase be opposed.
G. haziyi_n, 3255 El Camino Real, said the Palo Alto Travelodge was
a small motel. An article was published once in the paper that
one could not find a room in Palo Alto. That statement was un-
true, and if -;.a holiday fell during the week thereby curtailing
business travel the week was shot and the small motel was left
with Friday, Saturday.. and Sunday which already experienced a 40 to
5U percent occupancy. Travelers often asked if Palo Alto -Mad a
parka and he road to say yes . but one had to be a resident of Pal o
hlto to:: use. it, His business had been in Palo Alto for over 12.
years, but he and ,his family could not use Foothills Park- because
-
his :family -was forced to move to Los Altos because they could not
afford a house,. in Palo, Alto. A ten percent tax would cause each
srna l l hotel owner°r to lose money and force reductions in staff. He _
spent .a JOI of money., upgrading his motel in the hope that this
year's business would' be _better,- and the tax increase would drive -
people away.. He hoped the Council would carefully .consider the.
matter.
Frank C. Marolda, 1121 E. Santa Clara Street, was President and
Bus.i".ness Mana 9er of Local 19, the . Motel/Motes Restaurant Workers
and Bartenders Union - AFL-CIO. His local union was the second
largest union' in Santa Clara County. He also represented the
Santa= Clara County Central Labor Council, AFL-CIO, which was com-
prised of 110 unions. At tonight's meeting, the Santa Clara
County._Central Labor Council passed a resolution in opposition -to_
the= proposed action. Their position was. clear --they were opposed
to the F I'W Committee recommendation. He did not often agree with
'Paul McCloskey; but concurred wholeheartedly with all of 'his com-
ments, tonight-. Some of\ the employers talked about bigness and
smallness, _ arnd'' he represented the largest hotels in Palo Al to-
Rickey's and the Hyatt douse which had a lot of employees. _He was
Concerned that if the proposal passed, they' -would be faced with
'3 1 8. 5
4/18/83
layoffs. No one knew better than he about the problems being
experienced in the hotel/motel field 'especially in Santa Clara
County. A hiring office existed where a lot. of people applied for
work, but no jobs existed-. He urged that Palo Alto not echo what
recently happened at the -Ford plant or the General Motors -plant.
He also represented al.l the food workers at: the Ford plant and was
sorry to say that he was having a.terribie time -trying to place
some of those people. They ,could go on Unemployment compensation,
but -what about their benefits like health and welfare, pension
program, etc. Those benefit,, were lost, and if they.:were unem-
ployed, they were on the rollls. of the state hopefully collecting
Medicaid or Medicare. He urged that when .the Council voted this.
evening, each member take the time to evaluate the action and how
the little people would.be affected. He represented the li=ttle
people --the minimum wage workers --and was concerned. The bottom
line was to retain jobs in Palo Alto and build on thac--not to
e l ininate the jobs at the expense of the people he represented.
Hark Ala l son. 285 San Antonio Avenue, believed that Mr. McCloskey
said it as well as anyone could. He believed it was a question of
fairness, and pointed out that without any 'kind of study, the City
could not be sure whether ten percent would increase the revenues.
business could be reduced such that the actual increase in rev-
enues would be reduced. Six percent might generate the most rev-
enue, and it was only fair for the City to.look.into the matter
further and give everyone concerned a chance to provide input into
the final decision.
Carl Oi trnore, 1835 Charming, said he was reponsi bl a for the man-
agement of the Stanford Terrace with 80 rooms, and the Cardinal
acroas the street with 64 rooms. After observing the Council's
deliberations this evening on the two big issues not including the
subject one, he was surprised at the lack of thought and consid-
eration applied to the proposed increase. The 1,800 rooms' in Palo
Alto, including the fine convention facilities offered at- Hyatt
hickey's, were an asset of the City, and permitted it to host
meetings of considerable magnitude should the City choose to do.
.so. He 'suggested a more positive approach to the problem in terms -
of improving weekend occupancy. Occupancy was good Tuesday
through Thursday, but Friday through Monday was pretty grim.
Around 90 to 95- percent of the occupancy was done dur-.ing the week,
and he appreciated any help staff could provide to improve weekend
occupancy. Each percentage increase in Idieepercentage of occu-
pancy on the weekend would significantly increase the revenue to
the City of Palo Alto without increasing the percentage in tax.
He requested- that the hotel/motel business not be -looked at as a
"quick fix" to the City's revenue problems without further study.
Vice Mayor Fazzino said that given the lateness of the hour-, he
would__;try and keep his comments brief. As Chairman of the F&PW.
Comrnittee two years ago when the idea of an increased -Transient
Uccupancy' lax was first submitted by staff, he believed thew' idea
was lousy and believed that tonight's proposal was ,.another attempt
at a "quick fix" revenue producer with little justification. It
unfairly, penal ized -_one particular and almost legally defenseless
S.ec7W-Ofi the co:rrimunity given its lack of protection.. under- Propo
sition 13. .As indicated. by Mr. McCloskey, no impact`.statement of
the tax upon the, hotel and motel btwners was prepared. The -only
impact evaluated in the study, was that of the lass _ id state and,
federal budget money for the city'. He was a_s concerned as the
other. Counc tl'nembers about :the. 16 -Ss of revenue from the state
- and..
federal governments and the nee o to develop -a fair., community state
`
revenue alternative, but only as. long: as the: revenue pr�odoce,r did.,
not discr.imi:hate against: -one particular group. Palo- Alto Might
well;='need a _community services tax' -along the l i-rtes_ of Hi l 5b0ro.ugh
and other- communities which rwouid need to be approved by al -1 the
voters and paid for by.al-1 _service user's. -At that point-, he- could
support A:11(40 /motel- -tax as part of the package. -That would be
far .more justifiable than the present proposal. He --'was not
•
surprised with the ease in which cities could tax commuters or
hotel yuests, and as someone who traveled often and was subjected
to outrageous taxes in some communities in thee country, he was
particularly sensitive to the issue. He selected some hotels over
others because of a reduced local tax. The hotel guests were not
:the ones who would be primarily affected by the proposed tax, but
rather the local hotel/motel owners. The City's motel/hotel own-
ers were being put at a competitive disadvantage because in con-
petiny communities the tax was .generally at or lower than Palo
Alto's present level. The City should guard against the belief
that Hotels : could handle the tax, which belief might be part of
the lingering Holiday lnn ballot battle. The vast majority of
hotels in Palo -Alto were not large complexes, but small business
which had extreme difficulty. surviving the recession. He strongly
encouraged his colleagues to defeat the unfair, discriminatory
proposal and look towards a long-term revenue alternative which
could be applied equitably. Regarding public -notice, though read-
my the Agenda Digest might produce information about the Commit-
tee hearings regardiny the issue, the history of the proposal did
not present a pleasant picture regarding invited public involve-
ment. He recalled that when he was Chairman of the F&PW Committee
two years ayo the Committee was asked to prepare the issue for a
public vote at that time without its appearance on the Committee
agenda. It was buried as part of a bunch of budget items. Since
that time, City staff or the Committee could have directed staff
to go out with -a formal public notice regarding the impacts of the
proposal on hotels and motels since there were a limited number in
the community. That would have been the least the City could have
done with regard to public notice. He strongly encouraged opposi-
tion to the Committee recommendation and that it be sent back for
further study.
Counci lmernber Eyerly said the strong opposition to an increased
hotel tax was obvious, but he had yet to hear support from a group
threatened with a new tax. He was distressed that the Chamber of
-Commerce and the' motel/hotel owners and , representatives- did not
commence their political endeavors at the F&PW Committee Since he
had received so many communications within the last week to ten
days. He opined that the fears expressed tonight by the hotel
industry were false because he could not believe that someone
would yo to Santa Clara or elsewhere when they were in Palo Alto
on business or whatever else, because of the difference in the
hotel tax. If the tax increase was enacted as recommended by the
FGPP Committee, he was wi 1 l ing to propose an amendment directing
that a survey be conducted and at the end of one. year, hotel/
motel owners provide staff with sufficient date to weigh its
impacts. Wnen Proposition 13 was enacted, the City's hands were
tied because its budget was balanced by enacting 'a property tax,
and every hotel /motel owner benefited by Proposition 13 and the
cutback in taxes tremendously. No tax_ had' replaced .Proposition 13
in California which allowed any viable vay for the City to pick up
that lost revenue. Palo Al to had struggled along for the past
-three years without- that property tax money, and for the past two
years, money was swept out of the Electric: Utility into reserves ,
and that situation was determined to be unhealthy, -and related -to
the hotel /motel operating expenses s - wel l :as the tax-.., if the
`City_ was going to continue to bala`rtce its budget by working out of
the res4rves established by the:Electric Utility, it would cost
the citizens more money in electricity, gate etc. . -He reminded the
people in the motel/hotel industry that its basic services, -such -
as fire and police, were provided by the 'City of Palo Alto.and if
the City did not: find new revenue producers, it would not be in
the position,.to offer., the_ levels of - service currently being exper- .
i enced, and:: those -who - fol--1 owed the F$tPW Committee and -the b_ udg_et
setting o :the Cooncii- over the past t.hree---years would know that.
He would support the motion real -tiling -; that staff was :directed to
search for new avenues pf revenues. He did not like- the proposed
tax increase co.miny ahead . of . budget se.tti ng, but With the window
open and with the threat of legislation to preclude its possibil-
ity, the Council must go forward. He did want to look at the
impacts of the tax at the end of one year, and suggested that the
Chairman of the Committee inc=lude that amendment.
1
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1
Mayor Bechtel concurred with Councilmember Eyerly's comments, and
said that travelers must use Palo Alto streets to reach their
hotel and motel, and if those streets had potholes, their ride
would not be as comfortable. The amounts paid for utilities by
hotel/motel owners for the operation of their businesses were half
what might be paid if that business was operated in a city with
PG&E utility rates, and she doubted that a major hotel chain,
which operated in both Palo. Alto and a city with PG&E utilities,
lowered :its rates in Palo Alto to compensate for that difference.
She believed that the services provided by Palo Alto out of its
General Fund for police and fire were essential and that the dif-
ference of the four percent increase would not affect whether a
hotel or motel guest decided to stay in Palo Alto or Mountain
View. She supported the F&PW Committee recommendation.
Councilmember Witherspoon also agreed with Mayor Bechtel and Coun-
cilmember Eyerly. The Transient Occupancy Tax was enacted. in
1974, and the rate had not been increased since then. She be-
lieved Palo Alto was the only city on the peninsula without a bus-
iness tax, which was usually based on the percentage of all gross
receipts --not just the rooms. If one operated in a city with a
business tax --with which all competitors were faced, it would
probably be the equivalent to or more than the proposed tax in-
crease. She supported the suggestion that the tax increase be
reviewed in one year, but hoped it would have little impact on the
business owners and that it would ,make a. great deal of difference
to the City.
Councilmember Klein said that Palo Alto's utility rates were not
only lower than the surrounding communities, they were the lowest
in California, so that the City's hotel/motel owners had a sub-
stantial advantage over its competitors with regard to utilities.
He believed that Mr. McCloskey put words into the mouths of the
Council which did not belong, and said t at the reasons for pro-
posing the passage of the tax increase was not just the fear that
the City might lose revenue sharing or other moneys from the state
or federal government. That was just an example of the fiscal
crunch being faced by the City from a variety of sources and in a
variety of ways.- The., combination of things--tncreased cosies, in-
ability to raise taxes 'in other areas, and a variety of declining
revenues --lead to its proposal. No one liked raising taxes, but
Palo Alto's reasons were several, not just the ones mentioned by
Pete McCloskey. Regarding procedure, he echoed Councilmember
Eyerly's remarks. Public input was welcomed at the City's budget
meetings, but had not been received in the past, either from the
Chamber of Commerce or from any other trade or organization. All
meetings were publicized and listed in the paper, and he urged
public input. That participation could provide citizens with.a
greater appreciation of the City's costs. People did not request
that services be cut, and in fact wanted them continued, but
appeared to ; believe that the support money came out of thin air.
Public input would be helpful and he welcomed anyone to attend the
public meetings which would start in late May and continue every
Tuesday arid Thursday throughout:= the month of June.
AMENDMENT: Comecii*embers, Eyer1jO 10v*di- seconded by' 11etn, °that
,scarf. be directed --o 'report in one rear (during the 1984,85 budget
process) regarding:the i.pacts of the increased Transient Occu-
pansy_ Tax on the -local hotels ;and Hotel s
Vice Mayor Fazz no- said he would oppose the amendment. For -a
Council generally • quite;. concerned: eabouteecareful evaluation and
data- gathering,` this was -the first --time .it was -asking for an
,impact statement after the fact• He did not. believe ev.e "that City
staff or the F&PW Committee hadF,,done its homework. He believed
that some form of community services tax was justified which would
be paid by everyone in the community. The only reason the Trans-
ient Occupancy Tax was enacted and others were not was because -it
was the easiest political tax to get across the Council and
approved. He continued to oppose the motion.
Councilmember Witherspoon asked what figures Councilmember Eyerly
wanted to include in the report,
Councilmernber Eyerly clarified that the amendment spoke to the
impacts of the increased four percent tax on the hotel industry.
Councilmember Witherspoon asked for clarification that the report
would include whether_ occupancy was increased.
Councilmember Eyerly clarified that the ramifications of the
increased tax would include the, occupancy rate and a number of
other things.
AMENDMENT : PASSED by a vote of 7-1, Fazzino voting *no," Levy
absent.
MOTION AS AMENDED PASSED by a vote of 7-1, Fazzino voting *no,
Levy absent.
ITEM #11, PUBLIC HEARING RE APPLICATION OF ARCHITECTURAL DESIGN
YTTON AVENUE 1 C' '
Ryland Kelly, who represented Lytton Land Bank, the owners of the
property, said he wanted the Council to conduct a full and careful
examination of the project, but hoped that since the Planning Com-
mission was unanimous in its approval of the project on two occa-
sions, that the Council was provided with a basis for quickly dis-
patching the matter.
Mayor Bechtel said that some Councilmembers had questions regard-
ing the amount of parking, etc.
MOTION TO CONTINUE: Mayor Bechtel moved, seconded by Renzel,
that the public hearing be opened, and that speakers address their
comments to a continuance of the matter to May 9.
Mayor Bechtel declared the public hearing open.
Mr. Kelly commented that the issues of parking were discussed for
hours at the Planning Commission level and resolved to everyone's
satisfaction with conditions and amendments that caused a unani-
mous vote. If new information or questions arose, and it was a
new ball game in every event at the Council leeel, so be it.
There being no further requests from the public to speak, Mayor
Bechtel declared the public hearing closed.
MOTION TO CONTINUE. PASSED by a vote of 6-2, Fazzino and Cobb
voting "no,* Levy absent,
ITEM #I2 PUBLIC HEARING RE APPLICATION OF THE CITY OF PALO ALTO
� P} PE1JE STR I mi sinrwp-rncaFrBI lid N T
MOTION TO CONTINUE: Mayer Bechtel moved, -seconded 'toy Renzel,
that the public bearing be opened, and that speakers address their
cements to a continuance of the matter to April` -25.."
Mayor Bechtel declared the pOblie hearing: open.. There \being no
requests from the public to speak, She'declared the° public hearing
closed.
MOTION TO CONTINUE PASSED unanimously, Levy absent.
1
1
that some form of community services tax was justified which would
be paid by everyone in the community. The only reason the Trans-
ient Occupancy Tax was enacted and others were not was because it
was the easiest political tax to get across the Council and
approved. He continued to oppose the motion.
Councilmember Witherspoon asked what figures Councilmember Eyerly
wanted to include in the report.
Councilmember Eyerly clarified that the amendment spoke to the
impacts of the increased four percent tax on the hotel industry.
Councilmember Witherspoon asked for clarification that the report
would include whether occupancy was increased.
Councilmember Eyerly clarified that the ramifications of the
increased tax would include the occupancy rate and a number of
other things.
AMENDMENT PASSED by a vote of 1-1, Fazzino voting "no,* Levy
absent.
MOTION AS AMENDED PASSED by a vote of 7-1, Fazzino voting "no,"
Levy absent.
ITEM #11, PUBLIC HEARING RE APPLICATION OF ARCHITECTURAL DESIGN
Ryland Kelly, who represented Lytton Land Bank, the owners of the
property, said he wanted the Council to conduct a full and careful
examination of the project, but hoped that since the Planning Com-
mission was unanimous in its approval of the project on two occa-
sions, that the Council was provided with a basis for quickly dis-
patching the matter.
Mayor Bechtel said that some Councilmembers had questions regard-
ing the amount of parking, etc.
MOTION TO CONTINUE: Mayor Bechtel moved,_ Seconded by Renzel,
that the public hearing be opened, and that speakers address their
comments to a continuance of the matter to May 9.
Mayor Bechtel declared the public hearing open.
ir. Kelly commented that the issues of parking were discussed for
hours at the Planning Commission level and resolved to everyone's
satisfaction with conditions and amendments that caused a unani-
mous vote. If new information or questions arose, and it was a
new ball game i n :every event at -the. Council level, so be it.
There being no -..further requests from the public to speak, Mayor
Bechtel declared the public hearing closed.
MOTION TO CONTINUE PASSED by a vote of 6-2,- Fazzino and Cobb
voting 'no,". Levy absent.
ITEM ¢i2, PUBLIC HEARING RE APPLICATION OF THE CITY OF PALO ALTO.
1O
NOTION TO CONTINUE: Playor Bechtel moved, seconded by Renzel,
that the public -hearing be opened, and that :speakers address their.
cowaIentsto a.: tantineance of the ratter to April' .:25.
Mayor Bechtel ' declared the public hearing open. There being, no
requests from the public to Speak, she declared the public hearing
closed.
MOTION.: TO CONTINUE PASSED unanimously, Levy, absent;'
ITEM #13 FINANCE AND PUBLIC WORKS F&PW COMMITTEE RECOMMENDATION
•• •
MOTION: Councilmember Klein for the Finance and Public Works
Committee proved approval of the staff recommendation (CMR:106:3)
as follows:
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(a) That the implementation of the rate increase surcharge of 3
mill, be postponed until May 25, 1983 to coincide with the
rate increase` being anticipated for May 25, 1983, and that
staff be directed to include in •the resolution to be pre-
sented to Council that the 3 mill surcharge be listed sep-
arately and indicated clearly that it was to be added to the
reserve as set forth in the staff recommendation; and
(b) That it be credited to the reserve with interest income
earned on its balances.
Further, that the staff recommendation regarding the following
procedure to defense the existing Series A (Barron Park) Electric
and Gas Revenue Bonds be approved:
1. Concur in the strategy to have the: City purchase for its
investment portfolio (and eventual destruction) any out-
standing Series A bonds at market price, but i n no case for an
amount exceeding 90 percent of par value; and
2. Defease any bonds not purchased for the ;!amity's portfolio
through refunding issue incorporated into the cogeneration
project financing.
Councilmember Eyerly said that CMR:262:3 indicated that the three
mill increase was to pay a portion of interest during construction
of the Calaveras Hydroelectric Project, and further that the money
would be credited to the Electric Fund System Improvement Reserve
with interest income earned on its cash balances. He had problets
if it was mixed with the Electric Fund System Improvement Reserve
without specific accounting to spell out exactly how much money
was collected on the three mills and the interest because the`'.
Electric Fund System Improvement Reserve was used for other things`
and the funds were comingled. The proposed tax was for an in-
crease on rates design only and should not be comingled with other
funds, and if the Calaveras Hydroelectric Project did not go on
line, the money would have to be returned in rates.
City Manager Bill Zaner assured the Council that staff intended,
with the concurrence of City Controller Al Mitchell, to segregate
the funds and keep .them totally isolated. . The three mills plus
its interest would be identified in the reports and would remain
identifiable at all times
City Attorney Diane Lee pointed out for the record, that the legal
position on the matter was that it was a rate increase --not a
tax.
MOTION PASSED unanimously, levy absent.
ITEM X18, MOSQUITO ABATEMENT CONTRACTS WITH SANTA CLARA COUNTY
MOTION: Vice . Mayor Fazzlno.. moved, seconded by Witherspoon,
that the Mayor be authorized to execute the contracts with the
Santa Clara Health Department for mosquito abatement services; and
that the budget amendment ordinance in the amount of $37,200 be
approved.
CONTRACTUAL AGREEMENT FI R MOSQUITO CONTROL.
FOR STORM ®RAIN CATCH BASIN
Santa' Clara County
3 1 9:0
4/18/83
MOTION CONTINUED
CONTRACTUAL AGREEMENT FOR MOSQUITO CONTROL
FOR GENERAL SPRAYING
Santa Clara County
entitled "ORDINANCE OF THE COUNCIL OF THE
ALTO AMENDING THE BUDGET FOR THE FISCAL
YEAR 1982-83 TO PROVIDE FUNDING FOR MOSQUITO ABATEMENT"
MOTION PASSED unanimously, Levy absent.
ITEM 119 SEWER COLLECTION SYSTEM - INFLOW/INFILTRATION STUDY
CPPASE III AUTHOffIZI TJON (C1411:7_52:3)
Mayor Bechtel said it was important to move ahead because the.
study would be enhanced while stream flows were at their highest.
MOTION: Councilmember Fletcher moved, seconded by Klein,
approval of the staff recommendation to authorize the City Manager
to instruct CH2M Hill to proceed immediately with PHASE III of, the
I/I Study and that Council adopt the budget amendment ordinance in
the amount of $113,000 to finance the completion of the I/ I Study
during the current fiscal year.
AGREEMENT
CH2M Hill Engineers
OF THE
CITY OF PALO- . ALTOi tAMENDINGled I THE EBUDGETOF HEFORUNCIL THE FISCAL
YEAR 1982-83 TO PROVIDE AN APPROPRIATION FOR PHASE III
OF INFLOW/INFILTRATION STUDY IN THE SEWER UTILITY"
Councilmember Renzel supported the motion and hoped the City would
be able to solve its wet weather problems without running into
compliance problems with water quality control.
Steve Hayashi, Manager, Water Quality Control Plan and Water -Gas -
Sewer Operations, said that relative to the compliance problem
with the wet weather flows, the reason f.or proceeding with the
study was to enable the City to come into compliance with its wet
weather flows Currently, staff had no idea concerning the magni-
tude of the problem, but the storms of the past winter provided an
indication of the severity.
Councilmember Renzel said she realized that the magnitude of the
problem would have to be established before determining how to pay
for it, but presumed the cost would be borne by the general tax-
payers.
Mr. Hayashi said that the improvements to the sewer utility would
be borne by the general taxpayer.
Councilmember Renzel said she was concerned because she served on
the South Bay Dischargers Association, and it was concerned about
maintaining water quality so as not to end up with a -super sewer.
She hoped the City would be certain not to overtax its existing°
sewer system with new developments to the .point that infiltration
would bring the City out of compliance.
Mr. Hayashi said that the elimination of infiltration and inflow
would allow for further capacity in both dry and wet weather
throughout the sewage system. Staff determined that the problems
in the sewage system were of such magnitude that corrective action
was immediately necessary, and the reason for proceeding with
Phase,1!!.
3 1 9 1
4/18/83
As Corrected
7/11/83
MUTIUN PASSED unanimously, Levy absent.
ITIM #[2 HE t1EST OF MAYOR, BECHTEL RE RESOURCE CENTER _ FUR WOMEN
U
MOTIUPI: Mayor"bechtel moved, seconded by Fletcher, that the
City Clerk be directed to prepare a resolution recognizing the
Resource Center for Women to be presented at the City Council
meeting of April 25, 1983.
1
MOTION PASSED unanimously, Levy absents
•Counci lmernber Renzel -said she would not be at next week's City
Council -meeting, and on May 5, a -meeting scheduled to review the
North -County -Solid Waste Authority problems and potential
solutions. `She. urged everyone to attend.
ADJOURNMENT
Council adjourned at 1:00 a.m.
ATTEST:
APPROVED: