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HomeMy WebLinkAbout1983-06-06 City Council Summary MinutesCITY COUNCIL MINUTES ITEM Oral Communications - Minutes of February 28, 1983 Minutes of March 14, 1983 Item #1, Solar Pal Awards Consent Calendar CITY QF M[ 0 ,91.10 Regular Meeting Monday, June 6, 1983. PAG E 3 .3 5 3 3 3 5 3 3 3 5 3 3 3 5 4 3 3 5 5 Referral 3 3 5 5 Action 3 3 5 5 Item #2, Residential Permit Parking Program in the 3 3 5 5 Vicinity of Pa'.k Boulevard and El Canino Real - Evaluation of Trial (2nd Reading) Item #3, Replacement of the Baseball Outfield Fence 3 3 5 5 at the Baylands Athletics Center (2nd Reading) Item #4, Hazardous Materials Ordinance (2nd Reading) 3 3 5 5 Item #5, Geng Road Bicycle Path/Landscape Plan - Park 3 3 5 5 Improvement Ordinance (2nd Reading) Item 16, Final Subdivision Map - Birch Court Condo- 3 3 5 6 minium Project Agenda Changes, Additions and Deletions 3 3 5`6 Item #7, Public Hearing: Planning Commission Recorn 3 3 5. 6 mendation re Application of the City of Palo Alto for a Comprehensive,. Plan Land . Use Map for Property Known as 555 Arastradero Road. (the Former Terman Biddle. School Site) Item #1©, Former Middle School Site - Option 3 3 5 6 Agreement Item #8, Finance and Public Works Committee Recornrnen- 3 3 7 9 dation re Utilities Rules and Regulations Revised Item 09,, Ordinance re 4145 - 4161 El Camino Way. (2nd 3 3 3 Reading). Item #11, Code. of. Conduct - Cable Television 3 3 8 6 Item #12, Request of` Counci lmember, Eyerly+ re Budget 3 3 9 1 For Auditor's Position Item 013, Request of `Vice Mayor i=azziho r•e School Revenues 3 3 9 1 3 3 5 2 6/06/83 Regular Meeting Mofiday, June 6, 1983. Tne City Council of the City of Palo Alto met on this day in the Council Chambers at City Hall , 250 Hamilton Avenue, Palo Al to, at 7:35 p.m. PRESENT: Bechtel, Cobb, Eyerly, Fazzino, Fletcher, Klein, Levy, Witherspoon ABSENT: Renzei UKAE CUMMUNICAT1ONS Sally Si_eyel, 4190 Ponce Drive, said Palo Altans consistently supported public education and cast their votes over the years favoring a local" school tax issue as well as statewide proposals. The Times Tribune ran an editorial entitled -"A Rare Opportunity" on June 5, 1983, copies of which she provided. The article made a strong and convincing argument on behalf of increased school reve- nue now. It urged the Governor to realize that some taxes must be raised if the cause was deserving. The editorial emphasized that the State of Ca i ifornia had no more deserving cause than ,the edu- cation of its citizenry. She urged. Palo Altans to send a copy of the editorial to the Governor, and requested the Palo Alto City Council to join. MINUTES OF FEBRUARY 28 1983 Councilmember Klein had the following correction: Page 2988, third line, add the word "new" after the word "few." Vice Mayor Fazzino had the following corrections: Page 3018, first paragraph, line 10, the word "behold" should be 'uphold:'' Page 3018, first paragraph, line 13, after the word "would," delete the rest of the sentence and substitute "oppose other like projects in expressing their displeasure." MOTION: Corncileeaber Fletcher moved, seconded by Klein, ap- provdl_. of the Minutes of February 28, 1983, as corrected. MUTTON PASSED unanimously, Renzel absent. Counci lmerber Witherspoon said she was concerned that the Minutes were getting behind. She asked about the necessity .to authorize some help in the City Clerk's office. Mayor Bechtel said from her conversations with .the City Clerk today, that might be discussed at the Finance and Public Works (f&PW) Committee meeting on June 9, 1983. MINUTES OF MARCH 14, 1983 Councilrember Fletcher submitted the following correction: Page 3034, last paragraph,. third Tine from the top, after the word, "funding," delete the wording an 4FP and a responsive" and sub- stitute "a response- to the." MOTION: Vice Mayor razzing moved, seconded by Klein, approval of the Minutes of March 14, 19830 as corrected. MOTION PASSED unanimously, kenzel absent. - 3'3 5 3 6/06/83 ITEM #1 SOLAR PAL AWARDS Mayor Bechtel said the purpose of the solar pal awards was to rec- ognize innovative, imaginative solar design and to encourage inno- vation by other local residents and businesses. Roger East, Trish Johnson and Orlando Malone were the three committee members. 1 1 1 Trish Johnson said the Bocook residence was chosen for the Solar Pal Retrofit Design Award for its tasteful and feasible use of solar energee and insulation. She presented a slide which. showed a small southefacing greenhouse room, temporarily'used as a nursery, which collected heat during the colder months. The collected heat was forced through the house by a duct and fan system ingeniously concealed in the hall closet, and mini -blinds could be closed to avert the collecting. Another retrofitted feature was an inno- vative insulation installation consisting of inexpensive tree supports which were purchased used And attached to the beams, and_ there was six inches of insulation on top of those planks. Accom- plishing that task provided other Eichler homeowners with an exam- ple of simple and inexpensive ceiling insulation which maintained the open beams as an attractive feature of that style home. Orlando Malone said the Kobzas were long time Palo Alto residents who recently completed their 'Palo Alto dream home and won the Active Design Award._ The new home incorporated each of the four primary types of solar energy systems --photovoltaic arrays pro- vided -electricity; solar panels provided het water; additional solar panels heats -=1 the swimming pool ; and southerly -facing win- dows provided space heating for the landmark house. Integration of the four primary solar systems into the ranch -style design made a true solar showcase. It was the first large, privately financed residential photovoltaic system interconnected with a utility system on the West Coast, and was believed to be only the fourth in the nation. The electricity output should supply the peak electricity load for four typical Palo Alto homes. Through an interconnection with the City's electric utility grid, the Kohzas' photovoltaic system could send any excess solar electricity through utility lines that served other Palo Alto homes.` In effect, the. Kobzas electric meter -Would sun backwards when they supplied solar electricity to the utilities system, and would rune forward during winter and evening periods, when household demand exceeds the photovoltaic system's electrical output. He intro- duced Roger East who designed one of last year's winners. Roger East said the recipient of the Passive Design Award was the Wagger residence. As in •any good passive design project, the main features included south --facing glass, mass and a thermal chimney. The predominantly glass south wall was considered to be a "°direct gain system" and the glazing was -part of the system. The heat.. came in through that glazing and was absorbed by a concrete slab floor, which was six inches thick in the Wagner home. The _slab would store the heat and retain it further into the evening, tem- pering the 1.nterior environment throughout the majority of' the day. The south -facing -glazing into the thermal mass was the pri- mary contributor tc the passive heating system, and it was ,esti - mated that 70 percent of their heating needs would be derived from the oassi ve system. He -considered the thermal chimney', whi ch ,had high interior volume and some clear stories at the peak, to ,be "passive solar.,glorified." Summer use was the main feature of the thermal chimney and by opening vents., the. house could -be allowed to keep itself cool by ventilation. For example, by.openl._ng north windows one could allow cooler north air to ventilate through the house and exhaust out the top. Ni believed the Wagner' residence was a fine example of the possibilities of -passive solar. Ms. Johnson said a Solar Pal Award. of Merit was awarded to the Wessenberg residence in recognition of the implementation 'f their solar potential in their Mackey -designed home, -They transformed their home into an efficient passive' collecting house by walling in the east -facing windows and installing a southern wall of glass and a heavy ceramic tile floor to absorb the heat. The Committee was particularly impressed by the Wessenbergs' reduction of energy consumption --86 percent since the original design when they pur- chased the house in 1976. She said all four of the award winning homes were included in the tour,Sunday, Juno 12, -1983, and a dis- play was available in the Council Chambers. 0n behalf of the Committee, she thanked Rick McClure and Libby Dame, who worked with the Committee and providedf'excellent and professional assis- tance with tie awards. Mayor Bechtel presented the awards to three of the recipients, but said the Wessenbergs were unable to attend tonight's meeting. Councilmember Fletcher asked how to find out where the award win- ning homes were located, Libby Dame, Solar Program Assistant, said the tour would begin at the Lucy Stern Center at 12:00 p.m. , on Sunday, June 12, at which time maps to the homes would be given out. CONSENT CALENDAR MOTION: Councilwewber Cobb moved, seconded by Levy, approval of the Consent Calendar. Referral None Action ITEM #2, RESIDENTIAL PERMIT PARKING PROGRAM IN THE VICINITY -OF ea ORDINANCE 3433 entitled 'ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING CHAPTER 10.46 OF THE PA",O ALTO MUNICIPAL CODE ESTABLISHING A RESIDENTIAL PERMIT PARKING AREA IN CERTAIN PORTIONS OF THE SOUTH - GATE AND EVERGREEN PARK NEIGHBORHOODS' (1st Reading 5/16/83, PASSED 8-0, Witherspoon absent) ITEM #3, REPLACEMENT OF THE BASEBALL OUTFIELD FENCE AT THE BAY- n ea na ORDINANCE 3434 entitled 'ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO APPROVING AND ADOPTING PLANS FOR FENCE REPLACEMENT AT THE BAYLANDS ATHLETIC CENTER' (1st Reading 5/16/83, PASSED 8-0, Witherspoon absent) ITEM #4, HAZARDOUS MATERIALS ORDINANCE 2nd Reading) ORDINANCE 3435 entitled 'ORDINANCE OF THE COUNCIL OF TIDE CITY OF PALO ALTO ADDING _TITLE 17 TO THE PALO :ALTO MUNICIPAL CODE RELATING TO STORAGE OF, HAZARDOUS MATE- RIALS' (1st Reading 5/16/63, PASSED 8-0, Witherspoon absent) ITEM 15, GENG ROAD BICYCLE PATH LANDSCAPE PLAN - PARK IMPROVEMENT ea ORDINANCE 3436 entitled 'ORDINANCE OF THE COUNCIL OF THE CIT"f 'OF PALO ALTO ApPROYING AND ADOPTING A PLAN FOR THE CONSTRUCTION. OF AN OFF ROAD BICYCLE PATH AND ACCOMPANYING LANDSCAPING ALONG GENGAROAD WITHIN IYXBEE PARK' (1st -Reading, 6446/83, PASSED -8-0, . Witherspoon absent) 3 3 5 5 6/06/83 ITEM #6 FINAL SUBDIVISION MAP BIRCH COURT CONDOMINIUM PROJECT Staff recommends approval of the final subdivision map. MOTION PASSED unanimously, Renzel absent. AGENDA CHANGES, ADDITIONS AND DELETIONS Mayor Bechtel .suggested that Item #10, regarding Terman, be in- cluded with Item #7, which also dealt with Terman. The items were separated because of the way in which the Code required the agenda to appear. MOTION: Mayor Bechtel moved, seconded by Klein, that Items 110 and 07 regarding Terman be heard together. MOTION PASSED unanimously, Renzel absent. Councilmember Eyerly added. Item #12 concerning CMR:335:3, pre- sented by City Controller Al Mitchell and City Manager Bill Zaner and earmarked to go to the Finance and Public Works (F&PW) Commit- tee regarding the City Auditor's position budget. Vice Mayor Fazzino added Item #13, related to school revenues. ITEM #7, PUBLIC HEARING: PLANNING COMMISSION RECOMMENDATION RE ITEM #10, FORMER TERMAN MIDDLE SCHOOL SITE - OPTION AGREEMENT ( .:MR:x`313:3) Planning Commission Chairperson Jean McCown said regarding the Planning Commission recommendation, the Commission meeting had extensive public testimony concerning the application. There were a number of questions raised by members of the public which were completely addressed in the form of a letter from Director of Planning and Community Environment Ken Schreiber in response to the points raised in a letter from Bob Moss, as well as it the additional staff report before the Council. She called Council's attention to two questions that also concerned the Commission. One related to the possibility of a requirement that there be units for "very low income level families" included in the proj- ect. That was discussed by the Commission and there was an indi- cation, which was confirmed by staff, that no such requirement was imposed by the Department of Housing and Urban Development (HUD). Both the Planning Commission and the Finance and Public Works (F&PW) Committee recommended that certain of the public i;mprove- ments,scheduled for other portions of the Terman property relating to the recreational space, library, etc., be accelerated in the schedule of the Capital Improvement Program (CIP) if the housing proposal went forward. The Planning Commission did not formally vote -on the occasion of the Terman application, but did subse- quently and supported that recommendation. The Commission voted unanimously to recommend approval of the Comprehensive Plan changes, zoning changes and the parcel map which was part of the application, based on the consistency of those three requests with the City's Comprehensive Plan, and the detailed requirements of the Terman Specific Plan. She could not adequately summarize the complete. and thoughtful remarks made by her colleagues as they rspoke in Support of the recommendation and referred the Counci l to page;29,of the Planning Commission.Ainutes for a complete report. Mayor Bechtel commented that CMR:331:3, dated June 2,-1983, and prepared by Mr. Schreiber was excellent and answered all of the Council's questions. Mayor Bechtel, declared the public hearing open. 3 3 5 6 6/06/83 Sylvia Seman, Executive Director of the Palo Alto Housing Corpora- tion, complimented the staff on an excellent report and stressed that the project would be mixed income with 24 one -bedroom units especially for the elderly or handicapped and that 30 percent of the family units would be .unsubsidized with tenants residing therein paying full market rents. She emphasized. that preference would be given to those who lived or worked in Palo Alto and that there was no current HUD requirement that a portion of the Section 8 tenants be of very low income. That requirement was included in the Webster -Wood project, funded through the California Housing Finance Agency. She assured the neighborhood that the project would be well -managed, attractive and first rate in order to attract those families which would have to pay the high market rents that new construction now required. Because the model for planning Terman was based on the other Webster -Wood Section 8 project, located near downtown, some information on the tenants was updated a few weeks ago from that given a few months ago on the original tenants. It was discovered that of the subsidized families living there, about two-thirds were working in offices, about 15 percent were in technical fields, about 15 percent -were in service -related occupations, and about 4 percent were teachers. A few weeks ago there were only two families temporarily unem- ployed; about 80 percent of the Webster -Wood residents had lived in the complex for more than three years, and close to 60 percent were original tenants since 1978. She believed the proposed development --if HUD -Washington approved the transfer of. the Sec- tion 8 units --would meet the Council's full intent when it unani- mously accepted the Terman Specific Plan, and she urged support of the staff recommendation. Councilmember Levy said all Section 8 recipients paid some rent from their own incomes. Ms. Seman said those recipients would pay 30 percent of their income for rent. Councilmember Levy asked for an idea of what those tenants would likely pay in rent based on past experience. Ms. Seman said the resident manager of Webster -Wood advised that there was a broad range of rents, the highest being about $470 and the average tenant paying between $250 and $350 for rent. Leonard P. Wittlinger, 266 Santander Court, Los Altos, said when he moved to the area in 1965, he ,and his wife and three children believed they could afford $40,000 to buy a house, but ended up paying $50,000 in Los Altos. He had lived in the same house for about 18 years and worked in Palo Alto for the same length of time. For six years he was a parish priest, rector of St. Mark's Church in Palo Alto on Colorado Avenue. He had spent 12 years in real estate brokerage with Cornish & Carey and was now a self - incorporated individual with a consulting contract with Cornish and Carey. He strongly opposed the proposal. He had lived in some of the wealthiest and poorest cities in the United States, but had never seen a town more divided and fractionalized than Palo Alto. The first night he spent in Palo . Alto was in August, 1965, in the home of the now Honorable: J. Barton Phelps, Judge of the Superior; Court, who was then a wealthy attorney. As he pre- pared to go for a walk after dinner, his host got a pistol out of his closet, put it in his pocket, and said he did not go for a walk on Hamilton Avenue in Crescent Park because of the blacks in East Palo Alto. When he moved to Palo :A1 to and became the rector of St. Mark's, north and south of Oregon was used in a derisive sense andwas now split up into splinter particles within the City of Palo Alto. Areas of Palo Alto were in rapid decay and certain high density developers seemed .to. be : abide to get permits . to build high density condominium/business" use units wherever they wanted, and certain suggestions about how that was done appeared in the press. Since he had lived peacefully in Los Altos for 18 years, 3 3 5 7 6/06/83 he believed Palo Alto was not confronting certain problems. It was trying to put responsibilities on Los Altus through the Sec- tion 8 project that were unique to Palo Alto. They would regret having sold so many school sites, especially in light of the Bureau of Census Demographic Report in this morning's San Fran- cisco Chronicle, which showed an upswing in school age children. He considered himself to be an unreconstructed, old fashioned liberal who opposed the war in Vietnam, had Caesar Chavez speak in his parish, was active in the civil rights movement, _etc. Mayor Bechtel asked for assurances from staff regarding the accu- racy of the map. Zoning Administrator Bob Brown said the map was accurate. David Sborov, 4225 Ynigo Way, found the City of Palo Alto dis- tressing because over the last two months when he spoke before the City Council, Planning Commission and staff, the City was obsessed with housing --especially low income housing --to the point that if anyone raised objections or concerns or questioned a plan, he was automatically branded as opposed to equal opportunity housing rather than as a person concerned about his neighborhood and city. He considered that position to be narrow and intolerable for Palo Alto, and was bothered that concerns were continually raised, and the comments made by the Planning Commissioners, staff members and, at times, Councilmembers, never fully responded. For the record, he urged the Council to oppose the zoning change designa- tions, at least at this point, as well as the Option and Convey- ance Agreement. Also about two months ago, the Terman neighbor- hood found that the Terman Agreement everyone believed to be so great between the City, Jewish Community Center, Palo Alto Housing Corporation and the Terman neighborhood was not what it was cracked up to be, and that their perception of what they thought they were getting was not what they were ending up with. This concern was expressed in a petition, signed by 300 neighbors, and submitted to the City Council. Further, the Mayor received 60 individual letters from members of the neighborhood, all of which listed concerns. Parts of the Agreement were good, but parts had problems. Two months ago it was discovered that the Los Altos neighborhood residents had severe environmental health problems that were never addressed. The bike path on the other side of the bridge in Los Altos was one of the highest crime rate areas in Los Altos, including such crimes as rape and assault:. The creek pre- sented health and safety problems in that during the winter, the water could get as high as six to eight feet and children could end up in the creek and drown. The headlines would ask why a child died in the creek and what was done to prevent the occur- rence. The erosion on the banks of Adobe Creek was an important environmental impact that was never addressed by staff or the City Council, as was the problem of increased traffic on Arastradero Road. He suggested that a Councilmember attempt to make a left turn on Arastadero out of Ynigo between 8:00 a.m. and 9:00 a.m., and then make the turn into Ynigo from El Camino between 4:00 p.ir. and 5:00 p.m. Their neighborhood was changing, and he was both- ered at the Panning Commission hearing that a gentlemen stood up to speak who had lived off of Pomona for 20 years. That gentleman recollected how his part of town changed, how the orchards and houses that were there 20 years ago were suddenly apartment build- ings and an industrial park, and Arastradero was a four -lane road, with a lot more stop lights. Compared with the other areas of town, his neighborhood had more than its fair share of high den- sity housing, and he was afraid what would happen if the Terman high density plan went into effect, the church .moved out, or the orchards went. As a taxpayer, he believed the Council was sold a bill of goods because neither City staff nor the Palo Alto Housing Corporation knew whether the Section 8 units could be built. As of today, the vnits were still 'lot approved,' and egg could be on the faces of City staff. He --,looked forward to when staff would have to account for their expenditure of time, money and emotion on something that might . not occur. 3 3 5 8 6/06/83 Gerald Brown, 2600 El Camino Real, was an attorney in Palo Alto who represented a number of the residents on Ynigo Way, the street most affected by the proposed housing on the Terman School site. The dovetailing of the improvements to the athletic fields and the other public improvements was the principle concern with the pro- posed housing. Staff referenced a report filed on May 5, 1983, amending the Capital Improvement Plan to provide for the construc- tion and staffing of the library, and moving and improvement of the athletic fields, tennis courts, and the other recreational facilities on the site, which was not addressed by the. Council. He did not know why that was being deferred to June 27, since the Council proposed to accept tonight the option by the Palo Alto Housing Corporation and GK&A Associates to proceed to build the housing. As he read the Terman Specific Plan, it specifically required that the improvements and relocation of the athletic fields and other community improvements on the site be built con- currently with the housing, but no funding was provided in the five-year plan for those items to be accomplished concurrently with the proposed housing in 1984. He recommended that tonight's action be deferred to June 27 when Council considered the amended staff report for accelerated financing of the other improvements on the project in order for everything to occur concurrently, as required by the Terman Specific Plan. Otherwise, the library would not be on the site until well after the housing was..con- structed; the athletic fields would be cut into by the construc- tion of housing and not rebuilt and usable to the neighbors and others in the area until 1987 or 1988. He urged that Council postpone .any decision on the matters until financing was available to do the other improvements to the site concurrently. Mayor Bechtel said the F&PW Committee adopted the staff recommen- dation last week. Council was set to hear the FUN Committee budget recommendation, which was made by the four Councilmembers on the Committee, on June 27. Lynn Torin, 721 Ensign Way, said the League of Women Voters of Palo Alto (LWVPA) supported the Planning Commission recommenda- tions necessary to change the Comprehensive Plan and zoning for the proposed housing site on Terman lands. The agreement with Terman neighbors reflected that part of the Terman site was in- tended for housing. The LWVPA was pleased to see the possibi1ityl. for Section 8 housing on the site which could provide housing for those who lived or worked i' t a i o Alto, but who were left out of most recent housing developments. She emphasized that any housing on the site must be carefully planned and implemented. John Martin, 4194 King Arthurs Court, said he indicated his oppo- sition to the Terman Plan a few weeks ago to the Planning Commis- sion. At the end of the evening, several Commissioners expressed that many dissenting opinions were heard, but no real reasons were given for the opposition. An editorial in the Palo Alto AdVlsor last week made the same statement. He was opposed to the Plan because he was opposed to more . high density housing in the area, whether it be a $100,000 condominium or subsidized housing. He moved to Palo Alto in 1954, and because he was impressed with the quality of life, he purchased his present home on King Arthurs. Court in 196's. If he wanted to live in high density housing, he could have purchased along California Avenue in Mountain View or in dozens of areas that offered clustered living. That was not what he wanted, and soon after he moved to his home, the City surprised his neighborhood with a plan to widen Arastradero and bring it up to date. Now the residents: could not get out ; of the cross streets that fed into Arastradero. A Planning Commissioner told him that a left turn, should not be expected onto _Arastradero in the morning, and he wondered how far that statement would have gone if it was Channing. or Newell Road he was talking about. He believed the residents of Palo Alto had a right - to know what plans the City had that might affect their future, and he requested that the zoning issue before the Council tonight be tabled until such 3'3 5 9 6/06/83 time as the Council and staff ,could draft a definitive plan to clearly state the role of the,Palo Alto Housing Corporation and the housiny goals for the next five years, and the five years following. He recommended that the City be divided into not less than eiyht equal sections, possibly ten; that the City's goals to provide a certain amount of housing for those areas be clearly defined; and that the goals be divided equally for each section. That proposal should then be submitted to the voters of Palo Alto for approval. If it passed, the proposal would carry the official approval of the voters.and residents could plan for their futures, as could parties considering their largest single purchase.` He challenyed the Council to recognize that the citizens of Palo Alto deserved to know the future of their neighborhoods. His position was one of opposition because the Plan, if p;rsued to its conclu- sion, would further erode the quality of life in what used to be a quiet little section of Palo Alto. John Wood, 4156,kiny Arthurs Court;, lived in Palo Alto for approx- imately ly 24 years and had yet to see the Council or Planning Com- mission do anything to improve and upgrade the southern Palo Alto area. Ever since Oregon Avenue and the high rise and high density on Arastradero particularly, it appeared that the Council catered to developers, high rise people, industrial, and heavy traffic to the detriment of the single family residents of the City. The PAHC said to look at the Webster -Wood operation, which he did, and of which he believed the PAHC should be ashamed. He did not be- lieve it was fair to perpetrate such a project on a single family neighborhood, and the Terman site would be worse, particularly if HUD was involved. The minute HUD put a dollar into an operation, there would be nothing to say about how it was run, who would reside there, and what would be done. The people would have to live with it. City Councils carne and went, dropped little things into the City,- walked away,:and left the residents to live with it. He wished the Councilmembers would sit down and think about the single family residential people with their necks on the line, the ones who came in and made Palo Alto a nice place in which to live. The Council was changing that, and he recommended that the Terman project be opposed. Bob Moss, 4010 Orme, as a neighborhood representative on the Ter - man Working _Group, pointed out that high density housing on the site, if totally raised and redeveloped -*o the R-1 density which the school district could legally.,require, would hold 108 housing units. When the lerman Working Group was constituted, its direc- tive. from the Council was to find a plan that would put 108 units on the site, which the Group got down to a range between 80 and 92 units. A density transfer was included in tonight's proposal to provide for less than R-1 density on .the overall site, which was an accomplishment of the Working. Group. Accelerated development was an inteyral part of the overall plans. Many comments in the. staff report alluded to verbal comments made by HUD, and he be- lieved it would be better if the City could get those comments in writing.. If it was not possible to have. a HUD representative sign an agreement stating that the people on the site would be those who either lived or worked in Palo Alto, and that very low income people would be seniors, which generally seemed acceptable to the people, then he proposed that the City Manager or Mayor draft a letter confirming the.City's understanding based on discussions with the proper person from -HUD -and specifically layiig out the points. He suy,gested that the letter include, "If we do not re- ceive a response from you to.the contrary by a specific tiMe'iT the City's'..understandinys world be deemed appropriate." He Ofd not know whether_, that would be legally binding, but -at least it Lwauld - put. the cards on -the table. Regarding the subdi.v, sion, after disc--- cussions with Ken Schreiber, he understood the reluctance.to-send the matter .back to the Planning Commission _because it could delay the proceedings, but ho urged that ifjhe Section 8 housing fell throuyh, a -new subdivision be drawn,_ breaking off approximately one or one -and -a -quarter acres, 'specifically identified as that 3 3 6 0 • 6/0-6/83 purchased with federal funds. That same thing was done with the Birch Apartments, but in that case, the City already had two lots and it was much easier. He suggested that the amount of federal strings attached to the development be limited as much as possi- ble. The federal money only bought about one -quarter of the site, and <he suggested that the encumbrance be restricted to no more than one -quarter of the site.. The Housing Corporation would not be prevented from getting assisted units on the entire site if necessary, bu this would make it easier in the future to operate with the maximum flexibility. Gretchen Burford, 947 'lima Way, lived in Barron Park since 1967 and represented herself and her family. She supported the staff recommendation to develop the property, and was disheartened the past few weeks to read the misstatements and innuendos of the opposition. Not oeing blind and having lived in the community for many years, she was fully aware that the median income was higher than the Palo Alto average, and that Palo Alto did .not have many minorities. She 4c��' certain the opposition was badgering HUD to approve the moving of the Section 8 units to Terman, and thought it was sad that those who worked in Palo Alto and could not afford the rents.in the area should be precluded as'a result of the oppo- sition's efforts. In essence, they were dealing with promoters of economic discrimination. A 1980 SRI report stated that Palo Alto had the highest mismatch with, housing in the Bay Area. Currently, Palo Alto had 24,100 housing units and 72,000 jobs, and rental units were vanishing. Palo Alto did not have a job problem, it had a housing problem. It was driving out the "urban unincluded" --the non -high-tech job holder and the low income employee, espe- cially the low income employee with children. She was proud that the City staff and City Councils promoted projects such as Terman which did not preclude the low to moderate income resident. Many residents in Barron Park were excited about the prospect of a mixed use development at the Terman site and considered it to be an improvement. The Palo Alto school system always took care of children with learning problems and she resented the presumption that children from low income families might have learning prob- lems. The tables could not be turned on .the housing/jobs mis- match, but at the least, some opportunities for low to moderate income individuals to reside in the community should be provided. Sylvia Martinez, 794 Allen -Court, urged approval of the Terman project as proposed by the Palo Alto Housing Corporation and sought Council endorsement of the Section 8 component of the proj- ect. The fact that some issues were raised was indicative of the need to address them. She suggested that in making its decision, the Council bear in mind that an estimated 315,000 new housing units must be produced in California in each of the following years to keep pace with the state's housing demand, This year it was predicted that only 38 percent of the yearly housing needs would be met, so every opportunity to build an additional unit must be taken or else it would become a foregone opportunity. The Human Relations Commission of Santa Clara County estimated that 4,500 people were homeless, and that number was .expected to in- crease. It was often assumed that people were poor or homeless through some fault of their own, and that was untrue for the most part.' There were .structural :reasons for poverty and unemployment, and three-quarters of the poor people were single women and their children. She -urged the Council to also bear in mind that 70 per- cent of the nation's single women parents worked outside the_ home, yet half of those households still lived below the poverty line, and one- in five .American children lived in poverty The head. of the State Commission on the Status of the. Women recently testified that a new class of poor had.been created composed mostly of mid- dle and upper middle cias.�:---women 'who, through death and divorce, were forced to ! ive °at tile' -poverty level. That_. issue affected everyr)ne. There were those who felt imposed upon for hai ing to pay taxes- to pay someone else's rent, but that statement :reflected a riisunderstanding of the housing -_delivery system in the' country '3 3 6 1 6/06/83 Housing had always been heavily subsidized through property tax and interest deductions, depreciation allowances, secondary mort- yaye rnar'ket, tax 'exempt bonds, etc. Section 8 was only one form of subsidy which selected'a small fraction of the total amount. Without public sector involvement in housing, today's housing would not have been possible, .arid it was no secret_ _that with or without that involvement, housing was not the preferred form of investment in the banking community. Government involvement always favored the middle and upper classes. Many stereotypes were built around public sector housing, and many stereotypes of public sector housing were built around images formed through observations of private sector housing. Even in the few instances of public sector housing:failures, studies showed it was often due to poor design or management --factors which were clearly missing in Terrnan. High_ density housing did not have to be unpleasant. - [here were many cities with high density housing and a very pleas- ant urban environment. In comparison with other cities, -Palo Alto was exemplary in its sensitivity to individual neighboreoods, yet there were those who criticized the City's planners for opposing what appeared to be their own personal view of what was good for the neighborhood. That revealed a misunderstanding of the profes- sional responsibility of a planner to represent the public's interests. That . was part -of his or her code of ethics, and the. public interest in the United States was defined by the courts, the legislature and duly elected governmental bodies. Neighbor- hoods were not enclaved unto themselves, but were part of a city, county, state and nation. Cities such as Palo Alto were under judicial legislative mandate to provide their fair share of low and moderate income housing. It was well-known that Palo Alto had a healthy commercial and industrial base which provided many bene- fits to its residents, but along with those benefits came certain responsibilities. There were those who worried that acceptance of that responsibility would result in lower property values, but a recent award-winniny study conducted by researchers from U.C. Santa Uarbara and the University of Wisconsin showed that even larye amounts of, new rental construction did not lower property values, and in fact, probably due to price leading effects, served to raise them. Other factors which were statistically correlated with the decline in property values were not present in the par- ticular case. There were those in opposition to the project who sought alliances in high places, and whether they prevailed was irrelevant. The high status of an alliance did not necessarily make the allies right nor the cause just. She urged that Council support the project and that the Department of Housing and Urban IJeveloprnent be convinced about the support in the community for the project and the Section 8 component. Joseph Haletky, 961 Webster, wrote 'a letter toe the Palo Alto Weekly after its last issue, in which Don Kazak wrote an article about the Ter►nun project which contained a number o[ -comments from Palo Alto citizens. He followed the controversy with interest because he lived at the Webster -Wood complex, and as a resideht, he was interested in seeing more. opportunities for housing in Palo Alto. He was sore he could not live anyihere near Palo Alto and adequately support his three children were i t not for: the work of the Palo AIto Housing Corporation and others who had supported subsidized housing in the past. He confessed to feeling angry at some of the more hysterical critics of the-Terman Working Group Plan who seemed to worry about their neighborhood being run down by an influx of, low income people, and could not help but take those remarks personally. ' He wished -more people would take the trouble to visit Webster -Wood, meet the residents, and discover how much Webster -Wood and its residents added to the downtown area and to the Addison School District. He wished the previous speak- er had elaborated a- little more On the= horror he found. at Webster - Wood and said this award -winning Complex had anything but detract- ed from the neighborhood. Un the Contrary;- visitors eWanderect tnrouyn all the time _looking forapartments, and were often aston- inshed- that itt was not ta luxury condominium development. He was 3`3 6 2 ' 6/06/83 especially yelled at the remark of a person who was quoted in the Palo Alto. Weekly last week as sayiny she was against the project because she did not feel low income people were people she wanted to live near. He thanked the Palo Alto Housing Corper'ation and Planning Commission for their work in preparing the Plan, and the Palo Alto Weekly and others who spoke out in support. Gene Wood, b73 Ara.stradero Road, said ,he. occupied the nursery school which bordered on the Terman property and had remained neutral in. the issue.. The nursery school would probably be the closest - to whatever went in with the Terman development --even closer than Ynigo Way. He spoke for the needs of the school, but onthe political and social beliefs of the parents, he felt it was important to remain neutral. He had strong personal feelings regarding the issue, but believed he was in a special domain -and should put aside his personal concerns. In the education of young children and working with parents, schools had to remain neutral politically because they represented the people and tried to help children appreciate the value of their society and culture in ways for which they had not yet had the opportunity. If the issue passed, he was concerned about the noise situation. There was a wall being constructed along 100 feet on one side of his property which bordered the 'ntry road into Terman. It took six months for that wall to go up and once it started, it took three additional months to yet yoiny. During that period, there was a significant environmental impact, and he was not sure that the construction of, a house next door would not have had the same impact. He was sure Terman would look beautiful when completed, but there were days when the children had to he brouyht inside because the noise level was such that children across the yard could not be heard and could not hear the teacher. .There were horrible fumes from the roofing of the structures, and trucks went by within five feet of the fence. There was a speed safety bump that trucks, including City of Palo Alto trucks, went over at 20 to 25 -riles per hour without slowing down; that had a -tremendous noise factor. What- ever housing ultimately went in, he requested that a solid wall be erected 100 feet from the rear of their property to compement and form an "L" with 'a wall that was going up now in order for visual protection, privacy and noise abatement. Every time the issue was brought up in the past, they were told to wait, and because they waited, they were not given the hack wall. However, through the efforts of. the Terman .Working Group, they,were given the side wall. He requested that before any construction commenced, wheth- er it be for the Section d housing or subsequently approved hous- iny, a wall go up first in order to `alleviate the aggravations already experienced. He did not want to get into the traffic impacts, but was concerned about noise __abatements and environ- mental consideration of the neighbors. Joseph Kirsch, 4149 Georgia Avenue, member of the Terman Working Group, referred to the staff report on Page 11, Item 2(d), third dash, and said the word at the end of that paragraph was "needed," while the word in the Terman Specific Plan was "added." He be- lieved Item (2) on Page 11 represented a change in the wording from the Terman Specific Plan because it seemed to be more defini- tive. He suggested going back to the Specific Plan and saying that the dayl iyht plane would be;as described in Palo Alto's zone in effect on the dateeof passage of the Terman Specific Plan. Item (2) 'bothered him because' he did not know -what the side or rear lot lines were on a property -that was configured in a trian- gular shape and 'he believed it could pose some problems with try- ing to construe it_ later. The more general statement as found in the Specific Plan, one page 23, -Item 3(a), -.would be desirable. Page. 12 of the staff report,, Item (6), said a 40 foot_ setback shal_l.,be required from the -property boundary adjacent to the Ynigo way residences, and he -believed-that-page 24 of 'the Terman Spe- cific Plan, item (i) , was much broader than the- limited statement and encompassed all the properties listed. Additional protection was provided in the - initial concept for the .Ruth Wood `Nursery 6/06/83 School and the other properties adjacent to it. He believed that was inconsistent With the Terman Specific Plan. He appreciated that the Planniny Commission added Item (2)(8), and wanted it to be finalized in perpetuity so that it could not be undone in the future. Item (11) came from the Terman Specific Plan, page 19, item -(7), and since it referred to something off of lots (a), (b) and (c) , he wondered why it was included. Since it was included and was consistent with the Specific Plan, he questioned why Item (8) on paye 19 of the Specific Plan was not also included since it also dealt with the Hetch-He tc by right-of-way. He suyyested that if Item (11) were retained at this time, Item (8) also be includ- ed. Item (12) contained a wording change: "bicycle lane will be placed along the length of the entry area...," while the word in the Specific Plan was "road." He did not know whether the changes represented concept changes, but believed they should conform to one another. The issue had divided the Terman neighborhood in some respects, and he was pleased that after his comments at the PIanr:iny Commission hearing, a number of people took the time to cal 1 or write him and advise that although they were concerned about the proposal for the Terman site, they were willing to -see it yo ahead in view of the balances, checks and -safety measures brouyht into the Terman Specific Plan and .the work of the Terman neighborhood representatives. That was encouraging because se many people were opposed to the housing plan. He believed every- one shared the same concern about the neighborhood because they lived there and were concerned about how the housiny project would fit in. On behalf of himself and others like him, he was in favor of the project because it would give something to the Terman neiyhborhood that they never had before --some City services-, the library, community center, the nice playing fields that would soieday book like Greer Park. All those things were trade-offs to him, and there were a lot of balances placed into the Specific Plan which dealt with how the housing project would impact the neiyhborhood. He uryed . the Council to keep those in the plan as it moved forward. Bert Growald, 1,"28 Georyia Avenue; said he had lived at his present address for 10 years and moved to Palo Alto knowing little of its history.. What attracted, then was the diversity, which was dimin- ishiny day by day, especially economically. He believed it would be desirable to nave the Section 8 housing for that reason alone. He and his wife knew any number of cases where a wife was attempt- ing to support her family and could not afford to live in Palo Alto, altnouyn she worked here. These were fine people they would love to have as neighbors. He sincerely hoped the Section 8 hous- iny would be'approved. Denny Petrosian, 443 Ventura Avenue, said her comments to the Planning Commission were contained on page 24 of the minutes. She echoed the comments of Gretchen Burford and said she supported the Planning Commission and believed they had done an excellent job on the issue. She particularly appreciated their sensitivity to the low income issue. Recently she began working with cooperative housing in Palo Alto, and. someone called her asking about the availability of cooperative -units. _She said there were none available yet, -and the person, who was a complete stranger, broke down and cried. Apparently, that person was unable to afford her present housing', and was going to Foothill College to train for a better.job.in order to move into better housing, but meanwhile did not. know where to_ yo. She urged the Council to approve the zoning change, -arid said, the zoning approval from the Council was an im- portant riessaye to send. to HUU to speed its awn decision -making in -- favo=r of the Housing Co-rporation's plan. She did: not see any good reason for delay,and she ur°ge.d that the decision be made tonight. Lenore Wolyelenter, 768. Paul Avenue, Barron -Park, a former member iif the Terman Working Group, said Palo Alto was no longer a sleepy little town --it was life in the fast lane. It might not be, New York or Boston, but was faSt and highly active. She had lived in 3 6 4 6/06/83 Palo Al to for lb years and watched it change from a quiet little town. She believed that with or without the housing, the traffic on Arastrddero would not go away, but that the question of what to do about it should be addressed at another time. She believed that growing up in the integrated neighborhoods of New York City enriched her life, and that the proposed project would enrich the lives of those living in and around it. John Liman, 4150 Hubbartt Urive, could not understand how people from all over town could be so generous about changing the char- acter -of his neighborhood --because it was his neighborhood they were talking about. Occasionally he read -the paper where refer- ence was made to concerned citizens. --those people concerned about the loss of a skating rink or other issues. Those in his neigh- borhood were concerned about their neighborhood and were described as bigots, anti -people and against the very poor. He understood that over 40 percent of Palo Alto's units were rentals, and that the median income was less than the county median, including San Jose, Milpitas, Sunnyvale and other areas_ less rich than Palo Alto. His neighborhood had a mix of low income housing and nice homes, and was a balanced quadrant of the City in terms of need. for City services such as recreation. He, asked why his neighbor- hood should be unbalanced by the —addition of very low income hous- iny, He was concerned about his neighborhood being unbalanced, and that the church property might get too expensive to maintain as a church and would be sold for more multi -unit housing,. He was concerned about the effort to unbalance his neighborhood and its future in terms of being turned into a downtown. Next it would be sdia that a lot of rental housing existed and the people had no place to shop. A grocery store would be put .in, then a gas sta tion.. He -said the Midas Muffler sign on Acastradero was the most hideous tniny on the Peninsula and the residents believed it rep- resented the Council's opinion of them. He understood that his area was not entitled to more City recreational programs, li- braries, etc., because they could have paid more for their homes and moved to the center of Palo Alto where those things were pro- vided. However, they chose to pay less for their homes and moved to an area where''those programs were not provided and he believed they should be, left alone. Single family residences were around his area and the proposed project would make his the second lar- gest neighborhood in the area. He was told that the rationale for not having the project in Crescent Pa k was because. it was all single family dwellinys, but pointed out that his area was, too. He suggested that the Council, had a fiduciary duty, to those who lived in the current neighborhood and those who would continue to for the next 20 years, to maintain their streets and not make them ouilding after building of stigmatized housing. Mark Chandler, 2333 Williams, was. a board member of the Palo Alto Housing Corporation, but spoke on his own behalf. He believed the previous speaker. alluded to a'neighborhood character ,that should be recognized. He said the issue of the proposed Terman project became hot not when the Specific Plan was adopted, which provided for multiple family housing, but when it was determined to apply tor Section d housing. He was an attorney in downtown Palo Alto; his secretary was approximately 40 years old and.was a single parent with two children, ages 9 and 12, who were straight "A" students. She was fluent in three languayes and an-afficionado of French literature and fine music. She was a college graduate and worked as a secretary because it was the only way she could sup- port her children and provide them with books to read and clothes to wear. He said she was a joy to share an office with, earned more than $20 000 a year, and made extra -money typing at home several evenings a week.- She currently lived in South San Jose` and commuted to Palo'Alto bU miles each day because that was where the job was Si;e could not cont1r,ue to; do' that, ani after three months realized she -must move He had spent a portion of.each day during the past month trying to .help her find an apartment or a small house where she and'her children -could live; he spoke to his clients, his friends, and even a Councilmember. He read the ads for her each weekend when she could not easily get access to local newspapers. The average rent for a two -bedroom house or apartment in Palo Alto, where. she would have to share a bedroom with hers daughter, was $800 per monthe-more than half of her monthly take-home pay at a salary of well over $20,000 per year. She was desperate to move to Palo Alto, not spend three hours each day on the freeway, and send her children to schools where they would find intellectual challenge. -Each day, as the goal seemed less attainable, she became more distressed. It was a difficult -process to watch, but he hoped they could still find.a place for her. She would qualify, with her children and income, for housing at the project proposed at the Terman site, but the project would nut come in time for her. She and people like her and her chil- dren, who happened not'to be able to afford current rents, had a lot to give to Palo Alto, and the Council had a unique opportunity tonight to help them find housing in Palo Alto. He urged approval of the project. Frank Frankhauser, 1060 Laureles Drive, Los Altos, said he lived in a town Just like Palo Alto -before -World War 11, and when they returned, there was no room for him or any of his friends. They moved to other areas, made new friends and enjoyed life. He did not think sufficient thought was given to the Plan, and said a 40 foot buffer zone was planned against the houses on Y'higo Way and 240 new people. Based on 240 people, 120 of whom were supposed to be adults, there would be 40-50 automobiles. He asked where the cars would yo, and where the people would park for the athletic fields. He lived in the creek area, where the line from the Hetch-Hetchy hit the creek, and had lived there 28 years before Terman Junior High was there. Terman was a good neighbor when it moved in --a few incorrigibles, but that happened all the time. Times changed, attitudes changed, and laws changed. He was wor- ried thdt transients would sleep under the bridge, and there would be we'ekend beer parties and a very busy Police Department;. He suggested that the City think about the matter a little more. Beverly Lawrence, Mid -Peninsula Citizens for Fair Housing (MCFH), 451 Kingsley, said that since 1964, MCFH had worked toward ending discrimination in housing. In 1968, decided that was not of much use if people could not afford to live where they were interested in eliminating discrimination. They started an affordable housing committee at that point, and last week voted to continue. to sup- port the Terman site plans. They particularly liked the concept of mixed housing, the fact that there would be some market units, some Section 8 units, seniors and handicapped people, and families with children. It sounded like a marvelous neighborhood and the kind of neighborhood she first lived .in When she moved to Palo Alto in 1951. She was delighted to raise her children -in a ra- cially mixed neighborhood and brought them up with no, prejudlces and_a marvelous learning experience. She looked forward . to that same learning experience for .the people who lived on the Terman site. Jill Willey, 668 Georgia, . said it was painful to_ say .that she supported the Terman project because she had .lived in the. neigh- borhood for many years and did not want to feel disloyal to her neighbors, She believed a variety of housing opportunities was needed and that si`ngle family dwellings were not -appropriate for everyone,' nor could ;everyone afford them. She was particularly interested in the elderly and believed that the units, as planned, would provide.good housing with a mixture- of ages. and possible activities for the elderly. She did not believe that everyone past the age of 65 or\ 10 wanted.. to live at Stevenson .House aor Lytton Gardens; she ,supported the plan and hoped it. would be developed in such a way that the -neighbors' fears for their neigh- borhood would not come to --pass. 3 3r_6 6 6/06/83 Kate- Feinstein, 1600 Bryant Street, spoke as a representative -of the South Peninsula Jewish Community Center, and said she .served for th'e duration of the Terman Working Group. She sat through the meeting tonight considering whether to speak, and believed it would-be cowardly of _her not to endorse the JCC's support of the Terman Specific Plan and the housing element included therein. The JCC believed the proposed joint venture between C°ildrich, Kest & Associates and the Palo Alto Housing Corporation conformed to their understanding of the agreements and the Palo Alto Comprehen- sive Plan. They considered themselves to be Terman neighbors within the Terman neighborhood and had a considerable., investment in the new JCC site. They.wanted to be good neighbors in every sense, and hoped their support of the proposed housing development would not be construed by neighbors to be insensitive to the qual- its of their neighborhood. The JCC believed the neigho nerhood was wonderful and that the proposed housing element would, only enhance its quality, and wanted to see the City Counci 1 er:'dorse the staff recommendation. Jane Trautman, _672 Georgia Avenue (card not submitted), said she lived in the neighborhood and was concerned about the local school because it was one of two that qualified for special funding. She was concerned that a number of the young.children in their neigh- borhood were going to Barron Park to the Hoover School, or else- where, because of concerns over the mixture of the particular school. Problems arose with an occupational therapy unit, chil- dren from different backgrounds, some of whom might have English as a second language, and a mixed base of educational opportuni- ties. She was concerned about putting in units to again feed that school and overtaxing a neighborhood school that had problems throughout the years trying to keep its head up and be an estab- lished school academically. Sa i ly. Siegel , 4290 Ponce, was compelled to speak, although her comments were contained in the Planning Commission minutes in support of the proposed project. She was proud of the Council and did not want them to feel hurt, offended or touched by the various comments made earlier in the evening. She was proud that the Council concerned itself with human values; she pointed out that the case presented by Mark Chandler touched human values, Jill Willey talked about human values, and Gretchen Burford touched on human values to a great.degree. She was astonished that some of the individuals spoke the way hey did, and she urged the Council to do its duty and carry on. Mayor Bechtel declared the public hearing closed. MOTION: Vice Mayor Fazzino moved„ seconded by Klein, to adopt the Planning Commission recommendations as follows: A. Adopt the resolution changing the Comprehensive Plan Land Use Map designation of the 4.35 -acre Terman Housing Parcel from School District Lands to Multiple Family Residential and adopt the ordinance changing the zoning designation of the Terman Housing Parcel from Public . Facilities to RM-3 , making the fol- lowing findings: (1) The proposed land use and zoning redesignations are con- sistent with and were contemplated by the Terman Specific <Plan; (2) The proposed land use and zoning redesignations are con- sistent with the housing objectives and policies of the Comprehensive Plan Which call fore. maintenance of the character and physical quality of existing neighborhoods in that thee -residences on Ynigo Way are separated from future residential development on the Terman site by a substantial, 40 -foot setback, restrictions on lot cover- age, daylight plane and density which go beyond those forelly - required by the RM-3 district, and by the 3 3.6 7 6/06/83 MUTIUfi CUNTII4U£U fact that no connection, either vehicular or pedestrian, will occur between the two sites. The proposal prepares the site for future residential development in confor- mance with the Terman Specific Plan which is consistent with the Comprehensive Plan housing objective to provide for a variety of housing opportunities, including housing for households of low to moderate income; 1 B. Approve the preliminary parcel map creating a 4.35 -acre Terman Housing Parcel with the following findings and conditions: (1) The subdivision will not have a significant impact on the environment and the proposal, including the design and improvements, is consistent with the adopted Comprehen- sive Plan, complies with the Subdivision Map Act and Title 21 of the PANG; (2) The site is physically suitable for the type and density of the proposed development; (3) The subdivision is not likely to result in serious public health problems; (4) There are no conflicts with public easements. Approval should be granted -with the following conditions: (a) (b) (c) (. d ) Density will be limited to a minimum of 80 family housing _units (or their equivalent) and a maximum of 92 famil-y and senior/handicapped housing units; • 80.units is based on all being family units of two to four bedrooms each; - 92 units is based on 68 family .units and 24 senior/handicapped units (less -than 30 percent senio /hendice pped.units); • A total number of housing units between 80 and 92 will be acceptable if, for each family unit reduced below 80, not more than two senior/ handicapped units are added; - The senior/handicapped housing units, if any, will be studio or one -bedroom units; The daylight plane limiting height structures near the side and rear lot lines is that required in the RN -2 zone, in effect the date of passage of the Tertian Specific Plan; Lot coverage will not exceed 35 percent provided. that if carports are constructed, up to five percent additional let coverage will be allowed for that purpose only; Building height will not exceed335 feet. An attempt will be made to limit the number of structures. over twostories high, particularly ,adjacent to existing off -site housing; (e) There will be a maximum of 120 parking. spaces, none of which are required to be covered; (f) : No housing Weis will be bei lC within 40 feet of the southwesterly boundary- of the Terman site from the proposed entry roar= to the farthest edge of the fnlgo flay properties (see Exhibit 1); 3 3 6 8 6/06/83 MOTION CONTINUED (g) The housing plan to be developed on the site will be subject to review by the Architectural Review Board, Planning Commission, and City Council; (h) The final subdivision map will 'sidicate that all res..uenLial development potential has been trans- ferred from Lots A and C to Lot B; (i) There will be no parking spaces on the Hetch-Hetchy right-of-way; (j) The design of the residential development will avoid the erection of an essentially solid wall of housing abutting the Hetch-Hetchy right-of-way; There will be no change to the existing bike path on the Hetch Hetchy right-of-way; (k) (1) (m) Bicycle lanes and pedestrian paths will be placed along the length of the entry road that leads to the athletic field area; One or two narrow passageways will be left or creat- ed in the fence along the Hetch-Hetchy right-of-way so as to permit pedestrian and bicycle access to the ri ght-of-way; C. Adopt staff recommendations related to the award of the Option Agreement as follows: (I) Authorize the Mayor to sign the Option Agreement; (z) Authorize the Mayor to sign the Conveyance Agreement, substantially as attached, upon notice from the Real Property Administrator that all of the option conditions have been satisfied and that the 0ptionee has properly exercised its option; and (3) Authorize the Mayor to enter into any additional docu- ments which may be required to comply with the Option and Conveyance Agreements; and with the addition that part- nership be limited to the four partners in Goldrich, Kest & Associates; U. Direct City staff to prepare a park dedication ordinance, sub- ject to the Lease/Purchase Agreement with the School District, for the city park portions of the Terman site. RESOLUTION 6123 entitled "RESOLUTION OF THE COUNCIL OF THE CITY UF.PAEO ALTO AMENDING THE PALO ALTO COMPRE- HENSIVE. PLAN Of AMENDING THE LAND USE DESIGNATION OF A PORTION OF THE PROPERTY AT 665 ARASTRADERO ROAD (FOR- MEII TERMAN MIDDLE SCHOOL SITE) FROM SCHOOL DISTRICT LANDS TO MULTIPLE FAMILY RESIDENTIAL" ORDINANCE FOR FIRST READING entitled "ORDINANCE OF THE COUNCIL a THE CITY . OF PALO ALTO AMENDING . SECTION 18.08.040 OF THE PALO ALTO MUNICIPALCODE (THE ZONING MAP) TO CHANGE THE CLASSIFICATION OF A PORTION OF THE PROPERTY KNOWN AS 655 ARASTRADERO ROAD (FORMER TERMAN MIDDLE SCHOOL SITE) FkOM PF TO RM-3° OPTION AGREEMENT (INCLUDING CONVEYANCE AGREEMENT) Palo Alto Mousing. Corporation and Goldrich,Kest i Associates 3 3 6 9 6/06/83 Vice. Iiayur Feeeirlu said he recognized the legitimate concerns of the neighbors about the possible design of the project, noise, perking, and other possible negative isnpacts that any project of the size proposed could create. Many of those issues were dis- cussed and for the most part resolved during the Terrnan Working iif oup process, particularly in l iyht of what the School District could have Legally done with the area.- A carefully crafted list of tradeoffs was adopted to preserve the open space, to create a community center with additional services for residents in the area, for which the F&PW Committee wept on record last week ensur- ing acceleration, and to provide housing on part of the property. The adopted proposals provided fewer units than were legally pos- sible for the school district, since the district could sell off the area or develop it as it wished. He believed that was an important fact of history to remember as they sat there three years later. He accepted the proposal adopted by the Ter°,nan Group as a reasonable land use compromise, and recognized some lingering. issues and concerns that needed to he resolved. He was willing to evaluate every alternative to mitigate the impact of housing on the site during the actual design and approval process _---The___Sec- tion 8 proposal dealt with limited incomes of $18,000 to $28,000, -- which was not low income in his opinion whether it was Palo Alto, Detroit, Pit.tsburyh, or Washington, D.C. He reviewed the Palo Alto Compensation Plan to see what job categories would qualify for the proposed housing and found that Water Quality Control Operators, Utility installers, Tree Trimmers, Traffic Controller Maintenance people, Public Works Surveyors, Supervisors of Water, Gas and Sewer, Recreation Supervisors, Library Supervisors, Senior Rangers, Real Estate Analysts, starting Police Officers and Fire Fighters, Parks Crew Supervisors, Naturalists, Junior Museum Zoo Attendants, Greens Keepers, Graphics Specialists, Executive Secre- taries; Engineering Technicians, Electrical Assistants and Commu- nications Dispatchers would all qualify. To believe that public employees were underpaid compared to the private sector, a survey at Hewlett Packard revealed _that a number of the same kinds of jobs_in tne corporate office would also be eligible for that kind of low income housing --Executive Secretaries; Technicians; start- ing Engineers; Public, Legal, and Government Relations; Marketing; Treasurer's office employee's with one to four years experience. They were not dealing with people of low income, but mainstream Palo Al tans who lived and worked in town, and he believed it was important to convey that fact to alleviate those concerns. He was concerned about the way in which some people approached the issue of low income housing and wanted to establish the kind of income level that would qualify. That appeared to be the overriding issue of concern to a number of people who spoke and he hoped ,the Council would completely reject that argument. He supported the proposal and believed'.it was a logical and natural extension of the Terrnan Working Group agreement which was reached two years ayo. He hoped the Council would move. ahead and at the same time hold tne issue of actual design and mitigation impacts, which must be resolved down the road, in check, and that the neighborhood would be worked with to assure that`;.he project ultimately de-- s3yned met eiyhborhood concerns for the most part. Coynci lwenrber Cobb said that dS 41 member of the finance and Public Works (FdPW) Comni ttee t there •was nothi ny lukewarm or ambivalent about his support of accelerated -development of the fields and other public facilities -at the Terrnan site. He believed that was imperative for any Council approval tonight; otherwise Council support of the motion would be out of order and inconsistent with the Ferman Specific Plan, which --must be Observed. The council must support the F&PW Committee recommendation for accelerated development so that it would be on line with the development of the ehousing. The, staff report referred to the, restriction- of residents -of the project to people who 1,1 vets or , ,,,, worked in .Palo Al to _and the restriction of very low income'occupants .to:- elderly or handicapped, --which restsriction he could not-find,.,.in the con-- veyance, and he asked if- those Conditions- needed to be part of Item 7 or covered :entirely by item 1U --the conveyance agreement, 3 3. 7 0 6/06/83 Real Property Adrtrinist.ratoe Jedn Diaz said regarding the Option and Conveyance Agreements, both conditions were included in the conveyance agreement, and the one which dealt with the very low income was contained in the body of the agreement since it was not covered in the Terman Specific Plan. The items in the Plan rela- ting to housing and preference were included as an attachment and thereby incorporated into the body of the. -conveyance agreement. specifically incorporating those conditions and attaching there as exhibits, they were included in:the conveyance agreement. Councilmernber Cobb asked if incorporating the conditions in that manner also incorporated them as the site and design applications were approved.. City Manager Hill Laner said yes. Counciinember Cobb clarified that the motion included both condi- tions, and asked about the possibi l ity, following adoption of ' the motion, that HUU could overrule any of the conditions and put the project throuyh without them. Mr. Diaz said one of the conditions of the option agreement, which also related to a suggestion Dy Mr. Moss for written HUD approval, was that HUD issue a notice of selection before the option could De exercised and the conveyance agreement entered into. One of the first steps after tonight's action, should the award of the option - ayree;nent be approved, was to forward the package to HUD for its review. Should there be any concerns or required changes, the document was required to come back for further Council action. He could not predict the chances of that happening. Counci lmernber Cobb asked if Council had the opportunity to with- araw its approval if HUI)) determined the conditions, which were clearly a part of the Council's approval, were inappropriate. Mr. Diaz said that was correct, and it would require an amendment to change those conditions currently contained in the conveyance ayreernent. Counci lwernber Cobb stated for the record that his approval was continyent upon the acceptance of the very low income and prefer- ence conditions by HUD because he believed it otherwise took the item away from what was agreed to by the Terman Specific Plan, and it was important that the Plan be observed in every respect. He asked staff to comment on the remarks made by Mr. Hirsch. Toni ny Administrator Bob Brown said he believed Mr. Hirsch made a number of good points, and suggested that if the Council desired, Condition No. 2 on Page 11 be amended to add the -words "in effect on the date of passage' of the Terman Specific Plan" and to delete the last phrase beginning with "which -begins at a height -of ten feet...." Un'Page 12, Condition 'o. 6, the wording of the Spe- cific Plan was somewhat different '.end stated "that no housing units wi i 1 be built within 4t) feet of the southwesterly boundary of the Ierrnan site front .the proposed entry road to the farthest edge of the Ynigo'Way properties," which was included as Exhibit b ill the conveyance agreement. l►fr. Hirsch suggested the inclusion of a Condition #13, which dealt With the Hetch-Hetchy right-of-way and which -would state that one or two narrow passageways would De left or created in the fence along the Hetch-Retch right-of-way so as to permit pedestrian and bicycle access to the right-of-way. AAICEIN ANO SECONO" AGREE» TO INCORPORATE FOREGOING AS PART OF MAIN MUTIUIi Counci l,nember obb rei terarted that i t was important to remember that the ultimate population' on the site was less than what 'would happen if the CouncilCoUntiU did nothing and al lowed R-1 development ;to-. occur over:- the entire site. Playing fields that would otherwise 3 3 7 1 6/06/83 be lost were gained by the proposed project,. and as one involved in coachiny youny people, he knew those fields were badly needed, both for youny people and adults. The overall density on the subject land was kept down and this was important, as were the playing fields, library, and other public facilities, to make the ayreement work. He believed the Terman Specific Plan was hammered out with a lot of effort by a lot of people over a long period of - tine, and as long as the proposal was true to that agreement, the Council had an obligation to support it. On the other hand, good comments were made regarding the fact that the Council must start iisteniny carefully to people in neighborhoods because it could not yo willy-nilly into other neighborhoods and do things they would not care to live with themselves. It was important to pre-. serve. tne various neighborhood qualities in Palo Alto if it was to stay the kind of town everyone wanted it to be, and this was some- thing -to think about as the proposed project moved forward. The Council must be sensitive to the people who -had to live with the project in order to make it something which was accepted and which would create a better Palo Alto rather than engendering differ- ences everyone would regret later. He had delivered papers in the area wnen he was a young man, and the community had changed a lot over 40 years. Thinys had to be done right in every neighborhood because the arguments which applied at the Terman site applied to every otter neighborhood in Palo Alto and the Council must start being consistent and careful. He strongly believed that some attention must be paid to what the public was saying with reyerd to high density developments in town because it did not support high density development and it would destroy the community; how- ever-, the proposed project was less dense than what would happen without the agreement. Councilmember Eyerly supported Vice Mayor Fa zz i no' s comments .and ayreed that there was not an issue with regard to the housing the Council was trying to provide for the so-called "lower income people." He echoed Councilmember Cobb's comments that the devel- opment of the area under R-1 would bring over 20U units of housing to the Ferman area if it all went to housing. Instead, the area was to provide some faci 1 ities the Council was anxious to supply to that part of town, which incl:,ided open playing fields, a li- brary and some type of community center in conjunction with the other, entities. That could only be accomplished by what the Ter - man Working Group brought forward. The City was not in a finan- cial position -to buy the entire Terman site for development as a community center, and he believed the Council was doing well by proceeding with the proposed project in view of the population. He pointed out that Palo Alto's zoning map showed that about 80 percent was R-1 housing, about __1U percent was commercial, and about 10 percent was multiple family. The densities within the multiple family only utilitized about 10 percent of the ground area in Palo Alto; the City's mix of rental to single family was about 45/55, which was not a bad mix. If the City was to continue to provide some type of housing, it must have some areas with niyher density than R-1. It appeared that the Council was always in an adversary position with the.residents who were neighbors of multiple family areas. The densities in the multiple family areas were lowered since he had been a Councilmember, and if they were too high now, the .public, should speak up. The Council tried to provide setbacks, daylight planes and protections in every way possible, but he believed the higher density areas in housing were needed and he supported'the motion. Councilmember Klein associated himself with the comments made - by Counci lmembers Fazzino 'and Eyerly. He hard been part of the Terman process .since becoming a Councilmember in 1981, and prior' to _:that as a uemoer ,of' the Terman WorkIthy Group. He was pleased to` -sup pert the proposed project and believed it was consiste:rt._ewith the agreements worked -out in the Working Group and approved ,by the Council._ e It was incumbent to point out that the Terman Working Group met --"at. least 100 times, all meetings were public, and there were any 'number of meetings before the Planning Commission and 3 3 7 2 6/06/83 City Council. It was safe to say that no project in Palo Alto had ever received as much consideration, public input or discussion. He believed the Plan was a fair compromise which was the nature of things when several different groups with competing ideas were involved. He again pointed out that the F&PW Committee of the City Council, by a 4-U vote last week, approved an acceleration of the City's commitment to build the improvements listed in the Ferman Specific Plan, and he expected that when it was before the Council in the ordinary course of events with the rest of the budget on dune z7, it would yo forward. The proposed housing was equally consistent with the Terman Working Group and Specific Plan and should yo forward in the same manner. The Plan should go for- ward not just'because of the written agreement, but also because it was a good plan in and of itself and the proposed housing was needed in Palo Alto. The City ran the risk of totally squeezing out the younger and older generations, and a community which allowed that to happen was losing its soul. The City needed well -designed and sensitively prepared housing of the type pro- posed, and those concerns were addressed. Joe Hirsch, Bob Moss and others worked hard to make sure the housing was sensitively desfyned, and he defied anyone to sit .down and objectively go over the Plan and say that was not the case. He pointed out that the various aesthetic and environmental concerns on how the housing would be situated on the site were addressed over and over again. Palo Alto needed the project, as did the neighborhood, and the people to reside in the development were -good people. He heard and resented the implications of many speakers that somehow the proposed residents would cause problems for the City. There,were references to safety problems, and two speakers commented that safety problems already existed in Los Altos on the bike trail. The implication appeared to be that the addition of people in the housing would somehow add to those problems. He believed that was wrong --there was no evidence whatsoever that people who lived in Section ti housing developments were anything but good citizens. Ms. Seman had listed the occupations of those who resided in Webster --Wood; the other subsidized housing units around Palo Alto showed the same type of thiny. Those people helped make society function and be a better place for all. The clerks, secretaries, technicians, engineers, etc., added to society, their children did not create problems in schools --some were good students and some were not, but that was the m,ix. He hoped those people would be welcomed to the community. They were needed, and he was glad to support the motion. Counci Imernber Levy associated himself with the comments made by his colleagues and divided the issue into two --support of the Terman Specific Plan and support of the specific housing project before the Council. Regarding the Terman Specific Plan, the site was 22 acres and would support well over 100 units if the property were sold into private development. The houses would be good sized and lived in by far more people than would occupy the 92 units as called for to the Terman Specific Plan. If the Council did that, there would be no open playing fields, no community center, no library, no rehearsal and meeting rooms as called for by the Plan. It would have been nice if housing did not have to oe put there and if the City could have acquired the entire site a.nd left it as open space, but that was too much to ask of the community. Keeping 18 of the 22 acres open community type face l ities was quite: an, accomplishment, and the total cost was about 49,UUU,UUU.- That was a. substantial amount for a city like Palo Al to, which at the end of the :next fiscal : year would only have 4,1.b million as its total reserve. That meant citizens in the. Cubberley community, the community of the next middle school to be closed, or the next grarruner _schools to be closed,. would find the City with far. fewer funds to support the same desires everyone had --to keep as much. of the community' in open space or community fact l iti;es, as.:possible. Everyone recognl zed the tradeoff ---it was nut the perfect result, but was a good one, and- a result he could support. He did not see the parking requirements discussed by the .3 3 7 3 6/06/83 Planning Commission, but believed that 120 spaces for 92 units was small, recognizing that 22 of the units would be housing for.; the e lderly. Some type of parking facility would be needed for those units, and for 72 family units, he believed there should be a standard of at least 1.5 parking spaces per unit. By those calcu- lations, he believed that perhaps an -extra 10 or 20 parking spaces ,should be required, and he asked. for staff to comment. Director of Planning and Community Environment Ken Schreiber said the Tel -man Working Group had wrestled with the parking issue in considerable depth during more than 50 public meetings. The num- ber derived was based on somewhat mare than 1.5 spaces per non -- e lderly, handicapped unit, and slightly less than one space per e lderly/handicapped. It was believed at the time that the parking rniyht be adequate, but the concern of the neighborhood representa- tives was not to nave a lot of additional and unnecessary parking to create asphalt and potentially covered parking and detract from the use of the site. That issue would be before the Council when the the site and design application went through because actual layout of the site --unit. sizes, parking, .etc. --would be considered when the housing went ahead -for approval. Counci lrnember Levy asked if the 120 units was an outgrowth of the Terman Working Group agreement. Mr. Schreiber said yes. Councilmember Levy asked what the total price was for the purchase of the four acres involved. 1 Mr. U i a z said the Conveyance Agreement covered the consideration to the City, and began with clause 3 on page 2. The monetary con- sideration was basically -comprised of $920,000 to come to the City upon the close of escrow, $862,750 of which would be required to exercise the option with the school district to acquire fee to that portion. In addition, the City retained the right to repur- chase that site 50 years from the close of escrow for the sum of $1; or, if the City did not desire to exercise its option to pur- chase, the purchaser must pay the City 60 percent of the then current value of the land. The City would also be reimbursed a pro rata portion of any offsite work it did which partially bene- fited the housing --roadways, utilities, street lighting, etc. -- estimated to amouet to between $70,000 and $100,000, The rein-- bursement would also be received near the close of escrow. Gounci lrnernber Levy clarified that the price amounted to about $200,000 per acre. Mr, Uiaz =said the total Package had to be looked at --and the ini- tial payment was $920,000 or a little over $200,000 an acre. The City was payiny the school district over $2,000,000 for the 4.35 acres, . Mr. Laner said $[,000,000 was the figure the City agreed to for the purchase of the property --the $940,000 was, the amount of money the City would receive for the land. There was a difference of a little over $1,000,000, which was .the write .down the City was putttny into the project:` Councihraeinber Levy said he assumed the housing project would be self-supporting in that regard and there would not be a City sub-. s dy. _ He reAl ized the City had funds set aside inl ,its housing bank and asked if. those were the funds they were talking about. Mr._ Laner said, that was correct. _Counciimember Levy: was co rest i n the 1 on9 ra.nye and that was _why Mr.. Di a -z was ecareful to di€fere 'entiate.between he initidl payment and the.whole--_packa9e. The whole package reflected that the- City carne out-, evert`, and might come out a little ahead. He emphasized that over the entire 3 3 7 4 6/06/83 package, and over all compensation due the City compared to the amount of funds paid to the -school district, the City would come out all right.. Councilmember Levy asked the sources of the- funds that would add up to the $2.2 uii l l ion beiriy paid for the property. City Planner Glenn Miller said a general breakdown of the finances tentatively set aside fer- City funds to go into the housing site were as follows: CU6G funds, which were federal funds applied to landbanking were $675,000; the in -lieu housing account had two different financial allocations --$325,000 and an additional 4653,000; and from the capital projects reserve, $347,000, which totaled $2,000,000. There was not an additional amount to cover Section 13 of the lease agreement allowing the City to buy the parcel, which accounted for $525,000 per acre for the 4.35 acres. Those funds were not yet set aside in reserve for the purchase of the 4.35 acres, as was the $2,000,000. Councilmember Levy clarified that CUBG totaled $675,000; in -lieu housing was $325,000 and $653,000; capital projects was $341,000. Ile asked.if.there was another item. Mr. Miller said there was no other item in terms of allocation of housing funds to purchase the site. Councilmember Levy asked for clarification that the capital proj- ects reserves were the unallocated reserves of the City. Mr. Caner_ said Mr. Miller referred to funds allocated by the Coun- cil from the Capital Improvement Proyrain in the past. Those munies were already appropriated. Councilmember Levy asked if they were appropriated for the pro- posed project or for housing. Mr. Laner said they were appropriated for housing purposes in prior years. Councilnember Levy asked why they were in the capital projects reserve. Mr. Laner said the term "capital projects reserve" was being mis- used --they were capital funds that came from the Capital Improve- ment Program and were appropriated for a number of - years by the Council tor housing purposes and were being applied to the Terman project. 4ouncilmembe.r Levy asked whether the funds should have been put into a landbank reserve. Mr. Laner said they were. Councilmember Levy clarified that instead of "capital projects reserve," the term •should be "landbank reserve." Mr. Laner ,said that was correct.. Councilmember Levy commented that the term "low income housing" was misused and that the proposed project should be called "normal rent housing." hlos,t of the project's occupants would pay between $Z511, and $400 per month rent out of their own -earnings, The ference -between that and the rents necessary for the- project to break .even would be between $450 and $690 per month and would be the subsidy the occupants would receive from -'the he federal govern- ment. He confessed that it was not so long ago that he and, most of his--conteipoWi es paid rents at the $250 to 3400 level, and many -who had' l ived An Palo Alto for 10 to _20 year -s were not paying more than $400 -per month as a mortgage payment for houses worth - 3 3 7 5 6/06/83 considerably more Morley. Ile reiterated that people who occupied the project would be gainfully employed, earning what they could, and paying what they could. Because construction and land costs in Palo Alto were so high, those people who paid what he consid- ered to be normal -rent --and what most communities considered to be a normal rent --would still need government assistance. It was fortunate that Palo Alto might be able to get government assis- tance to add to the diversity of the City and help keep it from becoininy` an elitest community. He would support both aspects of the project --the Terrnan Specific Plan as written and the project a s proposed. Counci member Fletcher said about 1-1/2 weeks ago she _ took the nature trip in the Bayl ands, which was led by a City of Palo Alto Naturalist who was very knowledgeable about the various aspects of the baysands. She looked through the City's employee compensation plan and found that the City Naturalist qualified for the Section 0 housiny, assuminy he had a family. After looking through the various positions on the City's staff, ,she believed more than half of those employed would qualify for the Section 8 housing, She believed most City employees did not l-ive in Palo Alto because they could not afford it. When she moved into Palo Alto in the late 19511's, new houses on spacious lots cost between .$20,000 and $3U,UUU, the interest rate was around five percent, and the City Was mostly populated by young families; with young children, who were just starting their careers. The income levels were not exorbitant and they could afford to live in Palo Alto. That same type of family could only afford to'live in Palo Alto now with Section d assisted housing, and the Council was trying to keep the City from becoming different than it was in the past by allowing people starting their families and careers to live in the commu- nity. the school issue was discussed at the planning Commission level and it was learned that the school received some assisted fundiny from the federal government for handicapped children, and about half of the recipients did not belong to low income fami- lies. the news media .recently reported a Cambodian child, whose second language was English, who excelled in the national Spelling Bee; and another high school student and recent immiyrant who graduated with an above perfect average because she took extra courses. She did not fear the mix of people from different back- yrounds at the school and believed most would be people just like everyone else, only younger. Surveys in ,two different cities where federally assisted apartment developments were located showed that those developments did not hurt the housing values of the neiyhborhood and did not briny down any qualities of the sur- rounainy neiytiborhoods. She was excited about the project, and believed it was time to get going. Mayor Bechtel believed her colleagues had said everything elo- quently, and she _also supported the project. She believed the -- project would be' a good one for. Palo Alto, residents and workers, -and would include market -rate, senior aria handicapped-- housing, Which was needd. Counci lmember Klein said _page 5 of the Conveyance Agreement and the surrirnary of the Conveyance .,.Agreement--Att'ach;nent B --referred to the possibility that thea City would not exercise its option to. repurchase the propertayfdr:41.ca He recollected that in response to the neighborhood's cvr:cerns, .-the Council agreed to repurchase the ;property for $1, and -he asked staff to comment. - Mr. Schreiber responded that the particular provision was the same as, that included .in other' laildbank arrangements like Webster -Wood. it was intended to provide a ..City Council in 5U years with the flexibility to take the site back if that was what the community desired, or create. another° arrangement where, control- would still be exercised through the .Conveyance Agreement, . but' direct City ownership and -'control in the operation of a` housing development at the end of that period would'anot be required. 3 3 7 6 6/06/83 Mr. Diaz said he did not recall the provision beirly part of the Specific Plan, and was never advised that a concern was presented. ihe.Council had the option to go either way with the provision. Councilmember Klein said he recalled that the property would -re- main in public ownership except for the time necessary to finance the housing.. Mr. Laner said there was a'provision which stated, "The City of Palo Alto will endeavor to purchase, lease or otherwise obtain public control of the entire Terman site," and another provision that a portion would-be allocated to the Palo Alto Housing Corpo- ration, but that was all. Councilmember Klein could not conceive why the City would not repurchase the site; but page 6 of the Conveyance Agreement, last paragraph of IV, referred to buying the property back for $1 "sub- ject to all then, existing encumbrances against said property,. which were made -by the buyer subject to City Council approval."- He -interpreted that to mean that at the particular time, the City might buy_ it for $1, but would have to pick up the obligation for a $10U, UUU rnortyage. Mr. Uiaz said that was correct. Councilmember Klein asked if that was what the City wanted to do because at the end of the 5U years, the owner of the development would have to pay off the obligation, the same way he would have to pay --off the mortgage on his house if he sold it tomorrow, Mr. Diaz said the option to repurchase the property was one of the City's remedies in the event of default, and if the City exercised its option to remedy upon default, the City would acquire the property for $1 subject to any -then existing encumbrances. In 50 years, it was nut 'likely that there would be any encumbrances because the City would approve all loans, mortgages and other encumbrances agains'. the property and had control over the long term. If default occurred in the gear term, .the City might not have that control and that type of provision would be necessary. Councilmember Klein clarified that staff recommended that Council not approve any mortgages if they went beyond 50 years. Mr. Diaz said that was his recommendation unless provisions were included to protect the City past that point in time. Councilmember Klein suggested it might be more in keeping with the intent of the Terman Working Group agreement to say that not only did the City have the option to repurchase for $1, but barring any unforeseen circumstances, that it intended to exercise that option in 50 years -to regain public control of the particular parcel of property. ►ir. Uiaz said he had no problem with the wording expressing the Council's intent, l,Jt could not speak for HUD or the Palo Al to Housing Corporation. He deferred_ to Lou Goldsmith of the Palo Alto Housing Corporation for response. Lou Goldsmith, Palo Alto Housing Corporation,, said he believed the intent behind the paragraph was the same as that worked out -for the -Webster -Wood project six or seven years ago. --He urged caution in how the agreement was written because a development sucheas the one proposed became syndicated; otherwise it would be too expen- sive. After the project was syndicated, it probably would be sold to another group somewhere down the 1- ine subject to all the same restrictions in terms of low and moderate intone housing, etc. In order for the project to be attractive for the next- buyer, there must be a succession of time sufficient, for the project , to not become worthless._too soon; otherwise,. the tax_authorities_ would determine that the project was not in- operation_; for the sake of 3 3 7 7 6/06/83 profit and, therefore, not allow the tax benefits. It was planned that the mor_tyaye be paid i.n 30 years, allowing another 20 years beyond that time at which point, and by dollar definition, the project, was essentially worthless to anyone who bought it. It miyht be sold 15 years from now and sold ayain 35 years from now. Under the terms of the clause by which the City had an option to buy it back for $1, -no one would give a mortgage beyond the end of that time, because the property would be worthless unless a clause existed statiny that the City would. pickup whatever mortgage was remaining. that could be covered by the City agreeing to any financing, refinancing, trading or any other transaction that miyht take place, but he believed the provision dS written was perfectly safe. The obvious present day answer would be that for 41, you could not lose. The City would take. it over and perhaps resell it for "SW -zillion in the coin of the realm" at that time. He believed a little flexibility was helpful. Joe Hirsch said the principal objective of the neighborhood repre- sentatives was to retain the entire Turman site in public owner- ship--that-the City not lose the site. Now he saw a potential to lose it in 50 years., The.- issue was discussed a cumber of times, and the possibility of an interim sale was acknowledged for the syndication alluded to by Lou Goldsmith, and was always agreed upon for the reasons also outlined by Mr. Goldsmith. People would invest that way, and as he understood the situation now, invest- ment was down to 15 -year cycles because the property could be depreciated over 15 years for the maximum tax advantages. He pointed out that 15 times 3 was 45, which left a five-year period. He did not want to see another mortgage on the property at that time to run beyond the 50 years where the.City would'pay $1 plus the balance of the existing mortyage, and he did not believe that was contemplated. Reyarding the fact _that the property would eventually remain in public ownership, the final agreements of the 'lemon Working Group stated that the objectives of the Terman neighborhood were to retain the entire Terman site in public ownership. Tne proposed type of syndication was agreed to with interns transfer of title based on the understanding that at the end of the 50 -year period, the City of Palo Alto would buy it back fur 41. At that time, whoever wanted.to talk to the City Council and staff about various issues could do _so with a decision then, but the interim step to repurchase the property for $1 should be followed with a decision -about what to do with it after it was bought beck into full public ownership. Those were the principle understandings under which the lerman Working Group labored.. Counci lmernber Klein said he had intended to add some language, but decided against it. He believed the neighborhood concerns were adequately addressed since so much could happen in 50 years. The City had the option to repurchase the property for $1, and if the facts were similar to those of today, the then City Council would do ft. If, in 50 years, the City Council did not want to repur- chase the property, it would find some way out of it. He was reluctant to bind the hands of the Council in the yea .2033. ' He believed the neighborhood, community and_ entire. C1.ty were pro- tected with regard to the $1 repurchase and the mortgages. He said reference was made that the option in the hands of Goldrich,, Kest a Associates could be transferred to the partners. 'Partners could be general or limited partners,- and.- l imited partners could be a lot of people, and he asked for clarification. Mr.--U aa _responded that Goldrich, .Kest & Associates : (GKA) was a partnership comprised of four partners. Typically,- WA -allocated specific projects -among any. combination of:those four: partners and It wras intended that an• assignment from..GKA could be to one or more of the fo4r partners .of the GKA par.tnershi p. t;ouncilrneuber Klein suggested that language be included to make II very clear that the four_ partners of- iioldt-ich, Kest & Associates were the only al lowed transferees , and that this be- incorporated into -the --motion. 3.3.7 a 6/06/83 MAKER AND SECOND OF MOTION AGREED TO INCORPORATE THAT THE FOUR PARTNERS OF GOLUkICN, KEST & ASSOCIATES WERE THE ONLY ALLOWED TRANSFEREES Mr. Diaz had two technical corrections to the Conveyance Agree - inert Page 1, 111, CONSIDERATION TO SELLER, A(2) Monetary Considera- tions, the second sentence should read, "It is understood that SELLER shall exercise its option to purchase the property in accordance with section 13 (OPTION TO PURCHASE) of the Lease Agreement between SELLER and the PA-USU prior to or concurrent with the escrow established in "Clause 1" above. Said agreement was recorded January 12, 1982, in ..." Wage 3, subsection (c) third line, the word "prepared" should be "proposed." Mayor Bechtel thanked Mr. Diaz and said the corrections would be. incorporated into the motion. MAKER ANi1) SECOND OF MOTION AGREED TO INCORPORATE CORRECTIONS.- Counci Rmernber Cobb asked for clarification that the motion before the Council included the recommendations that began on page 10 of CMR:-331:3 and went all the way through to page 13, which included the park dedication. Mayor Bechtel clarified that the motion included al l recommenda- tions on pages 11, 12 and 13 of CMR:331:3, both the Conveyance and Option Agreement and the minor technical corrections. MOTION PASSEL) unanimously, Renzel absent. RECESS FROM 1U:1S p.m. TO 1U:40 p.m. _HEM #t3, FINANCE AND PUBLIC WORKS COMMITTEE RECOMMENDATION RE t S AND REGUL UNS REVISEi1 (Ct4R: • Counc:lmeinber Klein, Chairman of the Finance and Public Works (F&PW) Committee, said he was unavoidably absent from the Commit- tee meeting,., but that the Committee's recommendation was unani- mous. MOTION: Councilmember Klein for the Finance and Public Works Committee moved regarding Utilities Rules and Regulations Revised that the Council adopt the Rules and Regulations as amended and that language be added to Rule 14 to: 1. Clarify the distinction between industrial, commercial and other uses; 2. Rake a distinction in areas where there are severe economic consequences incenergy cutbacks; and 3. More Rule 14-1, 8-2, :A and B from permanent to emergency pro- hibitions, with the amendMent that instead of implementing Rule and Regulation NO. 17, that Rule 12A, 30 regarding eco- nomic justification be retained and that the wording be changed from '-`gross revenue's to 'net revenue.' RESOLUTION 6124 entitled 'RESOLUTION OF THE COUNCIL OF' Tilt CITY a PALO ALTO APPROVING AND ADOPTING RULES AND REGULATIONS GOVERNING UTILITY SERVICES AND FEES AMO CHARGES THEREFOR, EFFECTIVE JULY 1, 1983' councilmernber Klein said he was personally concerned about Rule 17. The F&PW Committee rejected the staff recommendation to charge for electrical hookups, and instead, recommended that cus- tomers . not be charged or on l -y be partially charged if the net reVenues would cover facilities costs._ within 30 months, and that language was before the Council. He asked how the numbers worked 1 3 3 7 9 6/06/83 out; for example, he hypothesized a -1U -unit condomini=um which was constructed in uowntown North, and asked what the cost of the hookup would be, the estimated net revenues, or -whether recovery of the costs Was likely within 30 months. He was trying to estab- lish whether they were debating a point with no significance or if there might actually be a dollar impact on the City, and if so, how much. Assistant U-irector of Utilities Mark Harris said that generally, a 1U -unit condominium would not be affected. They were talking about an extension of the City's distribution system to provide service. In general, whether a 1U -unit condominium was in down- town Palo Alto or almost any other area, lines would probably already be there, and given the energy consumption of a 10 -unit condemi n? um, *here would probably not. be many fees. They were tat my about a possibly large industrial customer, and it would depend on the particular customer. He deferred to Jack Taylor about any recent applications for line extensions in order to pro- vide a magnitude of the dollars involved. Chief Electrical Engineer Jack Taylor said costs to the little 1U -unit condominium would probably be ,peanuts compared_ with the price of the building itself. The lines in the downtown area were already in plate and, at most, there would probably be a street crossing or a run 50 to 100 feet down the street. Counci lmeMber Klein said he was not concerned about the cost to the condominiums, he was concerned about the cost to the City. Mr. Taylor said the costs to the City could range anywhere from $2,U0U or $3,000 to $10,000 or $15,000, and in the case of the 10 -unit condominium, the cost could probably be down An the $2,000 to $3,000 range. The revenue from the condominium would entirely depend on whether it had electric heating, heat pumps, air condi- tiioniny, etc. If the water and space heating were gas, the elec- tric consumption would be relatively low and could cost about half of the $2,000 or $3,000 it would cost the City. In short, the City would recover about half -of its cost as a hookup fee. 'If the lines were on their side of the street so that hookup costs were minimal, they would probably ue hooked up at no cost, and the cost to the City would be between $1,500 and $2,000 at the most. For example, on Embarcadero, "The Harbor's" offices would average between y-10 watts per square foot for their peak demand and have a load factor to.make one think the peak demand was on about 40 or 5U percent of the time. Allowing for:..a 720 hour, 3.U- day month, it would use its 5-10 watts per square foot half of the time and at the outside would use 350U watt hours per month for each square foot, Something like "The Harbors" could be built on Embarcadero and probably not pay any hookup fee:at all. Counci lmernber Klein said he was interested in the financial impact of adopting Rule 17_as proposed by the F&PW Committee compared to Rule' 17 as proposed by staff. Mr. Taylor said if the developer paid the entire hookup cost before being hooked up, the City would expect recovery in net revenue. from the development in a period of 2-1/2 years. Counci lmember Klein asked whether it was a $5,000 or $100,000 problem per year. Mr.. Taylor said in a project the size of "The Harbors, it would probably be $10,000 to $15,000 per. year. A very.. large project mlyht require a new substation transformer in the line of switch year which would cost in the neighborhood of $300,000 plus the feeders to serve the complex', Where -the lines were in place --and most were --it simply meant tapping onto an existing line and hook- ing ,it up as 4 cost between $5,000 and $20,000., `3 3 8 0 6/U6/83 Cuunctlmember Fletcher said she believed the thrust of the staff's recommendation was to discourage increased consumption on a larye scare. The costs could not be tied down on an incremental basis when energy consumption was increased over the years until such time as the City needed to invest heavily in new generating.proj- ects. She did not know how the costs could be tied down other than the immediate cost, which she believed was irrelevant. She understood that the purpose ,of the staff recommendation was that it cost the rate payers -of Palo Alto a lot in the long run to keep adding new.extensive energy consumption, and the City needed to try to discourage large scale increased consumption. AMENDMENT: Coancilmeeber Fletcher _moved, seconded by Klein, to adopt the staff recommendation regarding Role 17 as originally presented to the F&PW Committee, Counci lriienoer Fletcher said the top of the yellow pages had writ- ten_ in "emergency energy usage restrictions" rather than just "energy usage restrictions," and she asked how that change tran- spired because _she did not see anything in the F&PW Committee min- utes which reflected it. Mr, Harris said there was a lengthy discussion at the F&PW Commit- tee meeting regarding the proposed. restrictions -and emergency rules. lhey were divided as to which restrictions the City wanted to have in effect permanently and those`which should only be enacted on an emergency basis. During the course. of the discus- sion, almost all the rules were discussed and in actuality, the rules relating to advertising and decorative lighting were the only rules the Committee itself recommended become emergency rules and not permanent restrictions. On second thought, looking at the minutes and recalling the discussion, staff could not distinguish which rules should be pulled because they believed their original recoe:ra;endations were good in terns of permanent restrictions and wrlich should be retained. The intent of the Committee was inter- preted to make all of the rules emergency. In essence, staff recommended that .they either all be made -emergency rules, no pro - _visions of which would be in effect but could be enacted on an emergency basis, or that current' conservation programs be given rate structures, etc.,- to avoid energy waste in town and the others only be enacted when really necessary. There was a clear reason VI) enact them, and then there was a set of regulations that could 'be'' enr .cted by the City Manager. which Counci 1 could approve and discus -s. Counci lmember Fletcher said 'she had trouble with that change because by the time an emergency was realized, unless there was a very unusual- situation, it was a little late. The City needed to plan ahead and.try not•to;get itself into a pattern of continually needing additional generating sources. The more the City con- served, the more it could live within its WAPA allocation, and the less the rates would cost the customers. Councilmember Eyerly clarified that staff originally recommended there be a' charge for all hookups,: and the F&PW Committee made ,the change.:that the -City would pay -for hookups' if the net return.,paid° for it in t_1/l yearsa Mr.: Harris said co_nnec.tion."charges would be levied in either cane. Counti lmember Eyeriy. Clarified .. that the point related .to where more transformers, lines, etc., were needed :to service the,.cornmun- ity ` tla rris, sa i d._ that was correct. Counci lmember Eyerly said regarding. the amendment: to, reinstate Rube 17 as prtposed.`by staff, philosophically the City _was not in position . to say that "Johnny Come Lately" had . to pay:, more to, Join thq source of electricity or be hooked up. He asked whether 1 1 the City was trying to preclude commercial or housing because some subdivisions might put the City in the position .where additional expensive power projects would be required in order for power to be available. He believed the problem was more properly addressed by a new rate schedule or by zoning if that was the intent. Everything that carne to town should not be penalized and he be- lieved the community was set_ with the zoning and the amount of ground, and the City took the responsibility to provide for those properties' uti l ities. To provide those utilities, the City would provide the power, and it was wrong to try to take WAPA power and say that everyone here now should have the advantage of low-cost WAPA power because anything new would harm those already here. He did not believe they could live that way and he saw that as the center of the philosophical dis ussion. He realized staff did not think that way, but believed .the problem needed to be addressed with a new rate schedule if that was the Council's desire for cer- tain entities, or a _Change in the zoning, .but those people trying to use the City's utilities did not need to be penalized. He would not support the amendment. Counci lmember Levy believed the sense of the members of the F&PW Committee wflo discussed, the matter was that the City' -s electric "utility was in the business of supplying electricity, that exten- sions represented the way to get electricity to the user, and dis- crimination should not occur between one user and another in that regard. The City would recover its charges and the Committee believed_ it was a matter of fairness not to charge for enabling the user to use a service the_City should provide to everyone. AMENDMENT FAILED by a vote of 4-4 as follows: AYES: Fletcher, Fazzino, Bechtel, Klein NOES: Eyerly, Witherspoon, Levy, Cobb ABSENT: kenzel AMENDMENT: Councilmearber Fletcher moved regarding Rule 14, that the hew Ru ies and Regulations apply to regular energy usage as compared to only emergency energy usage. - Co.uncilme:nber Fletcher believed the Rules_ and Regulations were sensible and suggested energy conservation regulations that would eliminate a lot of waste. She was upset when she saw excess l iyhtiny, or electricity use because people were not aware of the benefit conservation provided everyone. She believed the entire City would benefit from not being required to invest heavily in new generating capacities over and over again. AMENDMENT FAILED FOR LACK OF A SECOND Mr. .Harris emphasized that there was a difference between the staff recommendation reflected in the 'staff report and what was recommended by the Committee. If some of the Committees recommen.- dations- were approved, staff recommended going the full route and making the. entire package an emergency package as :opposed to hav-.- i ny some permanent restri ct-i ons :and some emergency -'restrictions Mayor Bechtel believed the Council ,understood. that it was ltsted .as :en eryency prohibitions and saw no desire to change, it at - this timer .but pointed- out that it could be changed if. the need arose. Mr. Harris said it .was not intended as any sort of- signal that_ enemy waste was ail -right-at all, and`_.if -waste was= seen in .the -community, staff would. tome back with ,resttict,ions to prevent -it.. - The regulations. were.,intencled to en -courage Care because the flex- ible use of fuei_'':wou,ld not be available:in -the event of an emer- yency, . and other approaches would also be used,:.to try :to -encourage conservation. Mayor Bechtel- asked for clarification that the ,notion included fees and charges therefor effective July 1, 1983. Mr. Harris said it was a full package and the fees and charges were those reflected therein. MOTION PASSED unanisiossly, Wenzel absent. ITEM #9 UI(%J1NANCE RE 4145-4161 EL CAMINO, WAY 2nd Readin Mayor Bechtel said this item would normally appear on the Consent Calendar, but because of the changes and the things left open at first reading, it.was again before the Council. Loniny Administrator Bob Brown said the staff report spoke to the difficulty in interpreting commercial square footage and deciding whether it was net or gross. The plans submitted by the applicant showed 15,000 square feet of net commercial space and the city Attorney advised that if the plans were to be modified --if the Council required that the 15,000 square feet be gross --the item shoula be continued in order to receive a revised set of plans to be consistent with any adopted ordinance. Mayor Bechtel said that when a,PC was approved, all details were tied down and staff believed they were totally tied in the subject matter. -She noticed a few errors on the first data sheet. Mr. Brown said it was true that the data sheet contained a couple of errors, but the ordinance before the Council was accurate - i n the square footage of the BMR units, which. was the major inconsis- tency with the data sheet submitted. He believed the plans were accurate, and minor changes might be proposed by the applicant in the future which would be referred to the Architectural Review Board. That was not unusual with a PC when working drawings were created on a project; often there were minor problems with stair- well locations, but other than that, the plans were accurate. Mayor Bechtel said when the matter was before the Council on May 9, the City Attorney was asked whether the City had to send the maatter, back to the ARB or .the Planning Commission or both. At that point, the City Attorney responded that it was up to the Council and that legally it could be kept at the City Council level. A number of people wrote and expressed the desire for the matter to go back to the ARB or Planning Commission, and she asked if there was any-._le3ai requirement that it go to either the Archie. tectural Review Board, the Planning Commission or both. Anthony Bennetti, Senior Assistant City Attorney, said the Council could proceed or choose to send it back to the ARB. Mayor Bechtel said Mr. Browne indicated that a normal PC with miner corrections at the actual working drawing stage Went routinely -to the AKB, Councilraember Levy said he made the original motion that co€rmer- dial. space •be limited to 15,000 square feet 'and retail space be limited .to 4,500. square feet. He made no distinction between net and gross because he had not seen the distinction_, made at__ all. His motion `at the time related it to the figures before the Coun;- cil which he'.changed to 15,000. Ile asked whether it was assumed to .be net or gross.. at the time.' Mr. Brown s410 -the previous figures een, al l the plans submitted to date were -gross square footages- Counti lmember Levy said'there was no question in his mind th6t the f i-yure ,should be gross, .and according to `th - attorney, thematte-r -should.-be continued pending for the receipt of new drawings. 1 O Mr. Bennett) said the matter should be continued until the Council had the drawinys because they constituted part of the -ordinance. Councilmember Levy asked whether the retail space was to be perma- nent or retail only until such time..as the developer determined that retail use was no longer economically wise. Mr. Urcwn said the ordinance would require that the :space be • either retail use or personal service or an eating and drinking facility --one of the three. Councilmember Levy said there was no discretion to turn it into something else. Mr. Brown said not without the ordnance beilg changed at some future date by the City Council. Councilmember Levy believed it was the Council's intent that the 15,000 square feet be gross-. He would be satisfied if the plans were revised to indicate .a maximum total of 15,000 square feet, and would net feel the necessity for the matter to go back to the Plannin.y Commission. He asked how long the matter should be con- tinued. Director of Planning and Community Environment Ken .Schreiber said there were two parts- to the question --how long it would take the applicant to revise the plans and get them back., to the.City for review, an; . ene other part relating to future Council agendas. He deferred to the Assistant City Manager for response. City Manager Bill Laner said it would help to know how long the applicant needed to revise the drawi tys. Mr. Maxemin said when he made his last proposal, substantial changes were ,wade on his plans, but if the change from net to gross had to be made, it could be done by next week. Mr. Laner suggested that the matter be continued until next week. MOTION TO CONTINUE: Councilmember Levy moved, seconded by Bechtel, to continue the matter to June 13, 1983. Councilmember Cobb asked if the plans before the Council were a completely new set or a recycled version of the old ones with some "x' outs. Mr. brown said they were new plans. The old plans were revised by erasures -and redrawing over the plans., but the ones before the Council- Were an entirely new set. Councilmember.Cobb was troubled by the. continuance. He believed the process was, -,wrong because of the a proval last time. There were a ' t of people who waited to speak East time because they feared it might , be their last crack and now it ~night be done again. He believed the matter should -_be sent back through a'. normal process rather than ramrodding it through like it was last tine, and ne was disturbed by the Counci,l's :process. t.ounci {member. Klein agreed with Councilmember .Cobb.'s comments. SUBSTITUTE MOTION: Councilmember Klein Moved, seteeded: by Cobb:, that before the matter return to the Council , it go to t.h Archl- sect, r°al Review Sward for .its normal review. Counciimember Klein believed too many changes had been fade. �. lie recognized that the applicant had gone through a - lat4,.but , earlier tonight the Council considered the Terraan = matter ._which went through a Bauch 1 onger process. He believed -the 'Council. (must be careful ..oh the project; the site was very seasltiv't, and the .City had an Architectural Review Board for that purpose. He dii not believe the Council should get itself involved in detailed review, and too,rnany Changes had been made_. Mayor Bechtel had a problem with the substitute motion because the Council made the decision in May not to require that the Matter be returned to the Planning Commission and ARB despite the fact that they required the developer to make some major changes. Councilmember Fletcher asked how much time would be added to the process by sending the matter back to the ARB. Mr. Schreiber said the earliest ARB agenda would be June 20, and the earliest Council agenda following would be July II. Councilmember Fletcher'said the ARB wa_s enthused about the design. of the project, and she was not sure what purpose would be served by sending the matter back to them. Mr. Maxemin said d condition of the PC approval was that the developer be required to take the project back to the ARB for approval -of the modified detail, and he did not think there would be. any major changes. He believed.sending the matter back to the ARB would only cause .the developer to lose time. Councilmember Levy clarified that ordinarily the Council would not send the matter back to the ARB. Mr. Bennetti said no. Ordinarily, tonight would be the second .reading and the ordinance would be finalized. Mr. Brown's sugges- tion was that minor modifications in the working drawings go back to the ARB, but not the review of what Council :approved tonight. Councilmember Levy said if the matter was referred to the ARB first, the modifications would be reviewed at their June 20 meet, i ny, and returned to the Council or: July l.`', If the Council con- tinued the matter to next week and approved it then with the con- dition that it be approved by the ARB, the ARS would approve it oh June ZU, and presumably the developer would be saved three weeks. Mr. Bennetti said possibly even more than that because the thirty days on the ordinance would start to run from next Monday. It would be a:condition subsequent that the plans be reviewed by the ARB and there was: nothing to undo the ordinance if the ARB made charges or su.ygestions. tounrilmember Levy said he believed the process had been difficult fur everyone to cope with, but he was satisfied that ..the ARB had reviewed the project and accepted it. The Council laid dowry cer- tai€r'requirernents for which a continuance of one week was needed is ensure that they were satisfied, and after that, the condition could _be attached that the plans go to the ARB for final review. -That process was satisfactory in his opinion, and he was wilting to save .the developer the several weeks involved because he real- i zed .-tnat time was money. He would oppose the substitute motion and stay with the continuance. He extended his sympathies to the members of the pub.lis irhu he'd_ followed the matter rigorously until :now And. regretted the need. for them to comeback next week, but believed it was the best way to do it in order for them to be heard atthe time of final approval rather than hearing it now and ::forgetting what was said in a Week. Coudci lfember :1ein bel ieied ARB review was needed. Those s'peak-- iny against ARB review assumed the, project would be liked `because the changes were p$rceived to be in the direction desired by the ARS, :He was not willing to make that assumption and dtd = not ,be - 1 ieve nis colleagues should either. The ARS was a' panel ofex- perts who did a marvelous job .and their thoughts. should be stilt - Hi' did not believe ARB review was so simple, because the changes went in the right• direction and the plan made sense archi- tecturally. -: They were talking about the inter=action between the' buildings and there could be some results from those that were not seen by the Council who was not as expert on architectural matters as was the ARB. He wanted to ensure that it was being done right and another three or four week delay, while unfortunate from the developer's standpoint, was important from the City's standpoint. It might be that the ARB would think the changes were marvelous, U.ut he would sleep better as a Council_member if the ARB told him so, rather than the Council assuming it. 1 1 Councilmernber Cobb said he was trying to understand whether the Council's objective was to do it quickly or do it right. The Council seemed to be more interested in doing it quickly, which he believed was incorrect, He did not believe it was appropriate for the Council to send the -matter back to the Planning Commission for review. Besides the reasons stated by -Councilnrember Klein, ARB review would give the people an opportunity to respond -to.the revised plan. It should be sent back somewhere in the process so the people had a chance to deal with it in something other than an eleventh hour situation. Cuuncilmetnber Fletcher believed the pubUc should have the oppor- tunity to address the Council because it would be even later next week and the people aright not have the opportunity to get to the daytime ARB meeting. Councilmember tyerly said he would oppose the substitute motion because if the mater was continued for a week, and if final approval required that the ARB review the 'natter, the ARB could look at it and decide against it, He saw no treed to send the mat- ter to the ARB before the Council addressed it again. Councilmember Klein believed the ARB's review after the Council set final policy was sort of a "toothless tiger" and would mean yiving the something to do with no authority to accomplish any- thing. SUBSTITUTE MOTION FAILED by a vote of 2-6, Klein, Cobb voting "aye," Renzei absent. MOTION TO CONTINUE TO JUNE 13, 1983, passed by a vote of 7-1, Cobb voting "no," Renzel absent. Mayor Bechtel asked if the item could be set at the beginning of next week's agenda. Mr. Eerier said a way would be found. 1TEM #11, CODE OF CONDUCT - CABLE TELEVISION Anthony Bennetti, Senior Assistant City Attorney said the firm of Arnold and Porter recommended, as a complement to the City's lob- byist ordinance which was passed last year, that for the process corniny up for review of the' KFP and analysis of the cable compan- ies' proposals, that the Council adopt a cede of conduct. This would basically require -that all substantive contacts between City employees and officials and' people who were financially interested' in cable .would be memorialized in some. kind of ;memorandum form and become part of the cable television record maintained in -a file in the City Clerk's office. At also designated the City Manager and -tne cable coordinator as the --official contact persons for. the City with respect to cable and required that all ._ether' City -officials and employees should seek to: refrain --from substantive discussions: concerning cable outside of open. public meetings. Further,. It required a separate disclosure. from annual -,re.po.rting under -the �y Political Reform Act of. any financial interests ir1 ,cable which either Counc•iimembers or designated City ._employees might acquire du_ring__tle process. Vice Mayor Fazzino believed the document was excellent, but was somewhat concerned about the dual role of the City Manager as the perceived key contact of the City for the relationship with the consultant and the fact that the City Manager and City staff had a special interest because of the option for' municipal ownership. He wanted the cable coordinator eliminated because he did not believe .that person had sufficient authority to represent the City, and it should be the City Manager alone. He was concerned in which ways and with what- information the City Manager would deal with cable companies and others with questions about cable. He would have much less problem if they were dealing with legal issues related to the specific process the Council set-in place for discussion of cable and the ultimate decision rather than_ other kinds of contacts. His major concerns dealt with the dual role of the City Manager as a pol;tical interest with the munici- pal option and his role as. the key contact with the consultant, and the issue of what kind of information the City Manager would handle with respect to the proposal. Mr. Hennetti did not believe any limit could be put on the kinds of things the City Manager would deal with because he would deal with . any questions -that arose. Nothing in the resolution pre- cluded his aeleyating that responsibility to Arnold & Porter, for example, if questions arose that they were more qualified or appropriate to answer. He appreciated Vice Mayor Fazzino's com- ments, but did not know that a logical choice existed other than the City Manager. Vice Mayor Fazzino asked if the.resolution attempted to keep Coun- cilmembers from discussing cable unless as those discussions were properly recorded. Mr. eennetti said the City Councilmember would be required to pre- pare a memorandum of the conversation, the purpose of which was to encourage Councilrnembers to refrain from having substantive dis- cussions regarding cable with financially interested people out- side of public record. The resolution did not prevent a Council - member from doing so if a memorandum of that. conversation was pre- pared and placed in the file. City Manager bi 1.1 Laner said neither. he nor memb',rs of the staff requested or urged Arnold and Porter to put the ordinance together from his. personal perspective. The legal issues aside, he had no interest in the ordinance being on the books and believed it might be a tittle bit of overki 1 I . The legal issue was there and Arnold and Porter advised that there might be a problem and perhaps the need for some protection. ' Regarding the issue of the City Mana- ger representing the Gity, and having a "conflict," . w-ith all due respect, he did not believe a conflict existed. He said he often represented the City Council's position when it differed from the staff's position, and it was done as a matter of his profession. It was not difficult. to do, and if he were -not doing it appro- priately, his •integrity would suffer, the Council would lose its confidence in him, -and the relationship would fall apart.. He c'`A not believe that was an issue. Vice Mayor Fazzino clarified that none of his comments were directed to Mr. Laner individually. MOTION: Vice Miiyor Fazzino armed, seconded by Witherspoon, approval of the resolution with the .amendment to Section 2- as folio +s: 'representing the official policy of tie City Conn6i l ." RESOLUTION entitled.. "ROSOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ESTABLISHING DISCLOSURE 'AND OTHER CUNVUCT rREQUIREMENTS :.ON CITY OFFICIALS AND EMPLOYEES UURIN6'THE CABLE -TELEVISION PROCESS" e Vice Mayor 'a zz i no believed it was much more of a legal and _pro forma issue rather than a concern relating to any of the incum bents involved with the process. He felt that Item 2 should desiynate the City. Manager, representing the official policy of the ,City Council, and that the cable coordinator should be elimi- nated as -the official contact person for the City With respect to cable. 1 1 Mayor Bechtel said she would support - the amendment if the cable coordinator were left in, but she believed Mr. Zaner had a lot of other thinys happening, -and she hated to see him be the only person. Councilmember 'Witherspoon said she realized that Vice Mayor Fazzino was paranoid on the subject, but believed that anyone in the City management would have a "conflict" under his ;definition, and it did not make sense to single out the City Manager or cable - coordinator. Councilmember Cobb asked -if the reference to "process" in the resolution before the Council meant just the selection process and if the rules would terminate once Council made a decision. Mr, Bennetti said that was his understanding. When the Council started the KFP process with Arnold and Porter, they described it as the "selection process as defined in the RFP." Councilmember Cobb said item (1) stated any financial interest in any person, which he understood to mean institution, or collection thereof, financially interested in cable television, which dis- qualified officials or designated empoyees. With all the inter- weaving corporations out there, if someone happened to own stock in something incidentally and indirectly related to cable, perhaps through one of its subsidiaries, that person would. be disquali- fied. He believed it would be easy for one to find himself in violation and not even know it. Mr. Bennetti said the definitions of the Political Reform Act were used and if one had interest in a stock, that person- would have to substantially effect a source of income by that decision. If he was talking about a parent company in which he .had a very small stock position, nis de..ision would not influence and would be remote enough that there' would not be a problem. One would have to have some kind of direct'material financial effect within the meaning of those words as used in the Political Reform Acte It was no different than the others types of decisions a Council- a}ember was called upon to make with respect to people who came before it for -all kinds of yovernmental approvals. If:they repre- sented.a corporation in which a Councilmember owned stock, it would be the same. Counci haember Cobb was concerned about the phrase "should seek to refrain from substantive discussions," and he asked what was meant by substantive.- If he needed some information or happened to run into a cable company representative somewhere and wanted to talk for a minute just to learn something, would he have to apologize and run, away. He believed it was very restrictive -and asked for elaboration. Mr. Bennetti said if Councilmember Cobb was talking about the City's RFP and how a particular company adiressed a certain -cate- gory, that would be considered a substantive discussion. The idea was that a Cuuncilmember should not have any more information than the other l;ouncilnenbers about a specificproposal a company would, make. If' a Councilmember chose to have that discussion, then it should . be memorialized. In fact, a Councilmember should seek to refrain from those kinds of discussions outside the public record. That was the intent of the resol uti,on. 3 3 J 8 6/06/83 Councilinernber Cobb said he felt the consultants believed the mat -- ter was on such legally difficult ground that legal protection was needed,. so he would support it. eNe.would like some definition about the term "substantive" in order to know when a jconversation should be memorialized. Mayor Bechtel believed other cities which has been advised by the consultants had also adopted Such ordinances. She had been told by Mountain View. Counci lmembers that they had a very strict code of conduct not to discuss items. She wondered if the proposed ordinance was any stronger than ordinances in other cities or if it was fairly routine. Mr, bennetti said it was fairly typical and, in fact, maybe less extensive in the sense that as originally proposed to -the City, it covered all City employees. They changed it to include only employees with discretionary authority as defined by the Political (Reform Act. Councilmerrber Levy said they — had already passed one lobbyist ordi- nance which he thought was a-. good one, but he had a number of problems with this one. First, he understood that the Charter precluded the Council from telling the City Manager how to have his staff take responsibility for what, who should report, etc. Rather than the Council desiynating the cable coordinator as an official contact person, it seemed that was something the City Manager should do. Secondly, the City Manager should do all those things on his own if he felt that was the correct way to handle them. Mr. bennetti noted that it stood as a statement of City policy that the City Manager and the cable coordinator should be the official contact persons, Whether the City Manager chose to fol- low that was up to him, but he thought the Council could be sure that the City Manager would -follow that policy statement. Lounci lmernber Levy asked whether it violated the Charter for the Council to yet into thet element of administration. Mr. Bennett! responded that at times there was a fine line between policy and administration. When they said City policy was for only two -people to be the official contacts for purposes of carry- ing on the Council function of analyzing the propo3als for cable television, he did not think that was getting into the', level of administrative detail that was precluded by the Charter. With respect to the second part of the'question9 the City Manager could not make rules that were binding on the City Council. Part of the intent of the ordinance was to get the City Council to commit to the idea of refraining from substantive discussions of cable issues unless they made memoranda ofthose discussions. Counci lmember Levy referred to, Section 1, and he asked if it was true that now, without having passed this ordinance, if a Council - member had an interest in a -cable television company which was financially interested in, cable television in the City, that would be a conflict of interest._ If so, that item was irrelevant. and it was not necessary to pass another ordinance to say it again. Mr. bennetti stated the difficulty was that there were annual statements filed in March which did not have to be filed again. until the next March. 'The idea of the ordinance was that a Coun- cilmember would disciose,such interests with the City Clerk, at a time when it was relevant, separately from the annual disclosure- required by the Politicai.Reform Act. Counciliember Levye4ia_rifieC,that if an interest existed 'but was not disclosed, _ it. would. put -them in a conflict of interest posi-_ .tion. He ha4..probleins with that in .'several ways. First, the very. objective of the measure was designed to discourage substantive .3 3 8 g 6/06/83 communication between Councilmembers and interested parties out- side of public forums. There were certain communications that should take place_ in public forums, but there were other kinds that could not, because public forums were rather cumbersome places. He did not think substantive communications should be discouraged. As a Councilmember, he had always followed a policy of.talking with anyone, anywhere. He could not personally agree to a policy which, would discourage this and force him to make a special memorandum of each meeting when,. in fact, there were already ordinances'statiny that the lobbyist, who was paid to do so, must note the contact he made with each Councilmember and what it involved. Secondly, he could not see what would be gained by telling the City -Manager that he and the cable coordinator were the official contact persons. He felt the City Manager could do what he wanted in terms of official contacts. He did not think they Would be compromised at all if, for example, a Public Works employee was also a contact person. There was already an ordi- nance on the books stating that all lobbyists must identify them- selves and record any contacts they had. He believed that went tar enough and it was unnecessary to duplicate it by also requir- ing Councilmembers to report the contact while, at the same time, discouraging them from carrying out their functions. Mayor Bechtel confirmed that Councilmember Levy was -speaking against the motion, She supported the motion and disagreed with him because she believed this was an issue that should be con- ducted in the public forum. If Councilmembers were to be approached by a cable operator or an individual interested in cable, she felt they should all hear the information at the same time. Cable television was a unique item about which they were going to be making a decision, unlike a zoning item they might consider. They must be concerned about the potential for anti- trust situations and all those things if they might be offering a f rancni se. -and that was one route they could go --for a period of time to one firm. They would have to be very careful how they handled it. The recommendation being made was not unique to Palo. Alto and wa's no more stringent than any other city would have; she felt it was something they should support. Councilmember Levy stated it was hard for him to believe that cable television was more important to Palo Alto than, for example, Stanford West. He thought the rules governing them for Stanford West were analogous to the rules that should govern them fur whatever they did. Mayor Bechtel emphasized that she had not said "more important," but "different." AMENDMENT Councilmember Fa zz i no moved, seconded by Witherspoon, that the City Manager and the cable coordinator represent the official policy of the City Council AMENDMENT PASSED 5-3, Coeescilwembers Cobb, Klein and Levy voting "no." MAIN MOTION FAILED' 4-4, Councilmembers Cobb, Fazzi no, Klein and Levy voting "no.' Mayor Bechtel„noted that if the consultant. wished to come -back :with something different, he could talk to Mr. Bennetti. . Councilmember Fletcher suggested that the City- Attorney's Office send the' present conflict of interest ordinance. regarding cable television to the consultant and ask ;iiim for his opinion and a little more background information_on why he: -.recommended this type of ordinance. 3,3 9 0 _,E1/06/83 Mr. Bennetti replied that the consultant had reviewed all that .and had come back with a proposal which he felt •complemented and `closed the_ loop for good legal reasons. The consultant believed t -he Council should make `a record of how they decided to award or discuss cable television in Palo Alto, and this was his best recommendation. He was sure the consultant would want to make some comment on June ZOth, because he obviously felt it was impor- tant that they have this rode. Councilmember Fletcher would welcome any comments, because the consultant had not Made any. He had only proposed the resolution itself, but had not given any justification. Councilmember Eyerly echoed Councilmember Fl etcher' s remarks. 'He did not think the staff had provided sufficient documentation of the _need_ for this. resolution. Having listened- to .the comments of the Counci lunembers and having heard previously from the City Attorney on this -issue, he thought the Mayor had expressed the need for it quite well. He did not want it to be pushed aside like it had tonight-, because he had serious fears it they did not adopt something like this, he would like a staff report on the subject, ITEM #12 RE. NEST OF COUNCILMEMBER EYERLY RE CMR:335:3 RE BUDGET FOR AUU Counci iisienrber Eyerly referred to CMR:335:3 from Mr. Mitchell and Mr. 'Laney concerning the budget which the Council had requested them to be used as a yuide for the possible new Auditor's posi- tion. He. did not see any .money allotted for internal •audits, althouyh there was a figure of $22,UOO for external audit, which was the figure they:. had had in the past. He requested a comment from both of tilers as to whether there was any money in the pro- posed budget for use for internal audits, or whether they did not think the Auditor should be doing that, or why they had not addressed the issue. City Manager Bill Laner replied that they may be defining the term differently. To him, "internal audit" meant that the Auditor and his or her staff ,would perform unannounced audits internally. The salaries listed in the budget would cover the costs of those staff members assigned to do..that job. He did not anticipate that they would call someone in from outside to do it. Councilmember Eyerly clarified that Mr. Mitchell agreed with this analysis. He stated that the Budget Comrnittee.would consider the item and see whether they thought there was enough money there. ITEM #1i t jEQUEST OF VICE MAYOR FAWN() RE --SCHOOL REVENUES Vice Mayor Fazzino agreed to ayendize the item for the June 13, 1983 Council meeting. ADJOURNMENT: Council adjourned at . 1'L: UU a.m. ATTEST: APPROVED: 3 3 9 1 6/06/83