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HomeMy WebLinkAbout1983-08-01 City Council Summary MinutesCITY COUNCIL MINUTES duly MI() 11.10 Regular Meeting Monday, August 1, 1983 ITEM PAGE Ural Communications 3 6 3 9 Consent Calendar 3 6 3 9 Referral 3 6 3 9 Action 3 6 3 9 Item #1, tlarron Park Trunk Sewer 3 6 3 9 Item #2, Ordinance re 2850 Middlefield Road 3 6 3 9 (Former Hoover School Site) ('lnd Reading) Item #3, PUBLIC HEARING: Architectural Review board Recommendation re Planned Community Zone for Property Known. -as 4145=4161 El Camino Way ltern #4, PUBLIC, HEARING: Appeal of Nancy Clair Stone from the Decision of the Director of Planning and the Architectural Review Board to approve the design of an 8 unit residential condominium development at 905 Middlefield Road/722-728 Channi ng Item #5, Finance and Public Works Committee Recommendation re Civic Center Structural Repairs and build Out 3 6 3 9 3 6 5 5 3 6 5 9 Item #6, Resolution Accepting Deed to Lee Property 3 6 v 9 Item #7, Request of Councilmembers Witherspoon and 3 6 7 0 Cobb re Rebuttal Argument re Measure E (November 8, 19tH ballot Item #8, Request of Mayor Bec F.t: l ie Resolution of Appreciation for Pacestters Item #9 Cancellation of August 8, 1983 Council Meeting - Adjournment 3 6 7 1 3 6 7 3 6 7. 1 3 6 3 8 8/01/83 Regular Meeting Monday, August 1, 1983 The City Council of the City of Palo Alto met Fyn this day in the Council Chambers at City Hall, 250 Hamilton Avenue, Palo Alto, at 7:40 p.nr. PRESENT: Bechtel, ,'Cobb, Lyeriy, Fazzino, Fletcher, Klein, Levy, Renzel, Witherspoon Mayor Bechtel announced that an executive session regarding liti- gation was held at 7:00 p.m. URAL COMMUNICATIONS None CONSENT CALENDAR MOTION: Councilmember Fazzino moved, seconded by Klein, approv- al of the consent calendar. Referral None Action = ITEM #1 BARRON PARK TRUNKS (CMR:431:3) Staff_ recommJnds that a contract in the amount of $545,386 be awarded to Dalton Construction Company for the construction of the Barron Parr Sewer Project. AWARD OF CONTRACT Dalton Construction Company ITEM #2, ORDINANCE RE 2850 MIDDLEFIELD ROAD (FORMER HOOVER SCHOOL ORDINANCE 3455 entitled 'ORDINANCE OF THE COUNCIL OF ALo,. ALTO AMENDING SECTION 18.08.040 OF THE PALO ALTO MUNICIPAL CODE (THE ZONING NAP) TO CHANGE THE CLASSIFICATION OF A PORTION OF TIIE PROPERTY KNOWN AS 2850 MMIDDLEFIELD ROAD (FORMER HOOVER SCH0 L SITE) FROM PF TO RM-3 AND RM-3(L) (1st Reading 7/18/83, PASSED 7-0, Fazzino, Levy absent) MOTION PASSED unanimously, ITLM #3, PUBLIC HEARING: ARCHITECTURAL REVIEW BOARD RECOMMENDA- T1om alTaNNEu COMMUNI Director of Planning and Community Envi._ronment Key._ Schreiber said a chronology was paced at the ,Counci_linembers places tonight in view of the fact that the item had been before_ the Council a num- ber of times He clarified that as presently configured and under normal City policies,' the project pound be required to provide 161 spaces. Thee -zoning ordinance contained -a provision, with mixed use projects, to reduce the amount of required parking to a maxi- mum of 20 percent. The redo ti:on on the first page of the plans referred to the 20 percent, but did not count retail for which all of the parking was regeird. The total parking provided of 161 spaces versus the required 193 spaces for the total project resulted in a red+jcti on of 16.6 percent. Councilmember Cobb asked if any evidence existed that the. multi- plex parking, concept worked successfully over any period of time. 3 6 3 9 8/01/83 Mr. Schreiber said the only reductions granted under that provi- sion of the zoning ordiih nce were for projects not yet constructed or vccepied. It was a provision of the zoning ordinance not yet seen in operation. Councilmember Cebb asked if there was any evidence from other com- munities. Mr. Schreiber said that in areas of multiple uses, when adding up the parking requirements for each use, the City's regvirements were too high. Some of that information was based on studies done in connection- with the- downtown parking garage, although not directly applicable to the residential situation. The theory was that the peak hours -and activity time of commercial uses did not coincide with peak residential time, and that there would be a lot of overlap. The proposal was structured such that the residential units would each be assigned one space and the remainder of spaces would be shared parking available for office and retail as well as residential. Councilmember Cobb asked if staff's calculations and assumptions took into account evening and weekend use of retail. Mr. Schreiber said generally, as the amount of retail space grew in a project, the willingness of staff to endorse a reduction dee creased because retell rt eve d di . - .z;: n.wl % h Ld3e carne times that resi- dential uses expected to have parking available --evenings and weekends. With the proposed project, given the amount of retail space --about 3,5UU square feet of leasable retail space --staff relieved there was not enough retail to trigger that type of major parking impact. In addition, there was 7,000 square feet of of- fice space, and staff believed the balance was appropriate. He would not want to see any greater reduction in the parking. Counciloember Levy asked if the project went up to 40 feet in height. Lining Administrator Bob Brown responded that it was 38 feet. Councilmember Levy asked if the project was able to exceed the 35 foot height limit because: sloped rocfs made the average 35 feet. Mr. Brown said that was correct for the residential component. The commercial component of:, the project had buildings of 3'v feet, but there was an additional three foot parapet wall at the top of the buildings which shielded the solar panels, elevator equipment, etc. At one time it was suggested that it could be removed to lower the apparent heiyht'to 35 feet, but upon further considera- tion the AR6 recommended the parapet be maintained on the build- ings for aesthetic reasons. Councilmember Levy asked ebout the height of an average single family home in the area. - Mr. Brown said the majority of the homes in the area were single story and approximately 15 or 16 feet. The single family zone, which adjoined the proposed project, allowed -a-maximum height to a peak of 30 feet. Councilmember Klein _asked how many jobs would be created with the proposed project, and the previous Cox project, and the impact of the project on :the jobs/housing imbalance. Mr. Schreiber said if four employees were used per 1,000 gross square feet, Which was the standard for offlce and slightly high for retai l, , the 15,000 gross square feet of Commercial area would yield about .btl employees. The previous approval, which was still valid for the site, had 1Z 800 square feet which would have yield- ed about 51 employees. 3 6 4 0 8/01/83 Mayor decrrtei clarified that 41,000 square feet would be allowed ender the present zoning. Mr. Schreiber said almost 50,000 square feet would be allowed. If that were used as a round number, +rith four employees per 1,000 square feet, the project would yield about 20U employees. Councilmember Fletcher asked how much retail square footage was removed. Mr. Schreiber estimated it was somewhere in the range of 15,000 to 20,000 square feet. Councilmember Henze] clarified the height was measured from grade level after the grade ,.as adjusted to drain to the street. Mr. Brown said he understood the grade was raised two feet and the measurement was from the existing grade. Councilrnember. Renzel clarified that the buildings would be down two feet into the grade as it was raised. Tony Carrasco, Carrasco & Smith, 701 High Street, the applicant, said the building sat on a two foot podium and the grade was counted from below that two foot level to the mid point of the root. Councilmember Renzel clarified that the building would not be per- ceived by adjacent residences as being two feet taller than an- nounced. She asked if the grade at the property line with Tennessee Lane would be the same as in the previous proposal. The new proposal reflected that the gymnasium was moved from an under- ground location to an above ground location, and she asked what was happening to the space underground. Mr. drown said the gymnasium ;as moved from three locations one of which was underground. Two small gymnasiums were on the podium level --one for the commercial and one for the residential. He understood that the underground space would be used for residen- tial storage. Councilmember Renzel asked if the gym was ow designed exclusively for use by the residential component of the project. Mr. drown said that was not yet identified by the application. Couricilrlember Renzel clarified that since it was a PC, the previ- ous residential zoning had no bearing on whether the commercial property could be serviced. Mr. Brown said it would depend more on the CC&R's for the projeCt as a whole. -Councilmember Cobb asked whether some type of 'public benefit was necessary as a basis for granting a PC, and what benefit the City would gain over the existing zonings Mr. crown said the findings were included in the ordinance, and the : jubl is benefit would bc the nine below -market -rate units included in the project. Councilmember Cobb clarified that it was a total of. nine BMR units, but a certain number of BMR ° s .,.would be allowed by the CM zone. Mr. Brown said the difference would actually be _about four --54 units could be built on the project withoijt benefit of.the rezon- ing,' and approximately five BMR units could normally be expected from the site. 3 6 4 1 .8/01/83 Councilmember Klein asked about the status of the prior Cox pro- posal. Mr. Schreiber said 'here was no limit on the ARB approval, and the property owner could core in tomorrow and pick up the building permit. Mr. Brown said a final subdivision snap was filed at the County, and was in place for the Cox project. Councilmember Klein asked if the Council could move to•rezone the property if the proposed project did not go forward, and what would_happen to the Cox proposal. Mr. Schreiber deferred to the City Attorney. With a valid sub- division and ARB approval in place, it would get down to the ques- tion about whether the subdivision triggered some type of right to go ahead and build the project. City Attorney Diane Lee said usually --unless it was a condominium conversion --the only thing that guaranteed any vested rights was the building permit. Councilmember Klein. clarified that if the proposal were rejected, the Council could move forward to change the zoning. Ms. Lee said yes. Mayor Bechtel commented that several letter writers mentioned the neiyhborhood commercial study which was beginning, and she asked when the results might conceivably be heard by the Pl anni og Com- mission and the Council.. Chief Planning Official Bruce Freeland said research had com- menced, lnd a staff report was expected sometime in September for hearing by the Planning Commission in October. It would be before the Council in November or December. Mayor Bechtel asked what kinds of things were under study. Mr. Freeland said there were three policy areas as follows: i. Whether the present CN zone was performing as it was expected for the properties to which it was applied; Z. The City received -A number of proposals for modifications over the past few years primarily coming from the Barron Park resi- dents. Each time, the applicants were advised that the CN zone was up for review in 1983, and no actions were yet taken. Staff would look at all of the proposed modifications received over the past few years; and 3. Staff would look at other commercial strip properties in the southern part of the City along El Camino Real to _see if other properties were suited for change to the CN designation. Mayor Bechtel asked about the height of most of the buildings in the previous -Cox project. Mr Brown said it was 35. feet, but those buildings had -large s lop- i-ng roofs. He said the --actual height to peak was closer to 38 to 40, feet. Councilmember Levy asked about -the square footage devoted to resi- dential and commercial retail uses. in the previous Cox proposal as compared with the project before the Council. Mr. brown said -the commercial retail square footage was 12,800 square feet, and 30 percent of that was retail. Staff did not have the square footage for the residential component of that 3 6 4 2 8/01/83 project suite IL did meet the zoning ordinance and there was no floor area ratio limitation on the residential zones. Councilmember Levy clarified that there were nine fewer units in the project, and he asked if they were larger units. Mr. Brown said the units were substantially larger --the average being around 2,000 square feet. The average for the proposed project was around 1,000 to 1,200 square feet. - Mr. Schreiber noted for the record that the previous, currently approved, Cox project, contained 12,800 square feet cf commercial area of which up to 30 percent could have been retail. There was no requirement that any of it be retail, but 30 percent was the maximum and that related back to the parking requirement and the reduction given. Councilmember Levy asked for clarification that the project re- placed 15,000 to 20,UOU square feet of what was formerly retail and commercial space. Mr. Brown said that was correct --there used to be a vaccuum repair shop, adult bookstore, and antique shop, and nothing except on -- street parking was provided. Councilmember Eyerly said the proposed project had 15,000 square feet of commercial space --4,500 square feet of which were retail and 65 units. . The current zoning allowed 49,500 square feet of commercial space which could be all office or retail and 54 units. Mr. Brown said that was correct, but the two could not be com- bined. Councilmember Eyerly asked if hei ghts, ' density and maximum office usage were being considered in the CN zone, multiple family .,ones or the downtown and California Avenue CC zones. Mr. Freeland said heights, density and maximum office usage were being reviewed for the CN zone. Neighborhood. associations sub- mitted proposals over the past few years several of which dealt with freight and other details of the CN zone. Staff was presently studying the zoning for California Avenue and the area east of Lmbarcadero Road out past Ming's. 0n California Avenue, the ques- tion of height was being looked at and whether a 50 foot height liinit was -excessive or whether a 35 foot height limit should be established, and the question of overall development being pro- duced l n' the area. The Emba rcadero Area was not as concerned with height as with types of uses, i irritations on office uses, and a reduction in the floor area ratio of some of the sites which re- mained out there. One specific issue- was whether the CN zone served neighborhood types of office. uses or general types of of- fice uses, and statistics were being compiled to shed light _on that subset. Councilmember Eyerly asked . i f density was being 1 boked at in any of the multiple family zones. - Mr. Freeland said -, 4 ' recent and- quick survey of all the rnultip-ler farm ly. districts An the City in terms of density when existing rental units were demolished for new condominiums indicated that multiple, family zones were predominantly developed to an intensity equal to the density applied through the zoning. Most- of -the - sites in the multiple family districts did not have additional development potential. The samewas true for most aspects„of the. development regulations ---those places already at or above -the den- sity tended to be at Ora -Dove the site cnvera.ge. A numl;er of localized situations were identified where the Planning Commission intended to go back and review particular areo,s for possible down - zoning. Some' areas' near downtown: had old victorian . houses 3 5 4 3 8/01/83 rehabilitated for sin e family use yet they were located in an RM-4 district. He believed follow-up action from the Commission would, look ae particular-' zoning as it applied to places where it appeared- to be anornaious rather than through a re-evaluation of heiyhts and densities -'in general for the multi -family districts. Mr. Schreiber said existing zoning allowed 4S`,550 square feet of commercial which could all be office. There could be 34 residen- tial units on the RM-2 and RM-5 portions of the site, and the max- imum development would be almost 50,000 square feet of commercial and 34 units. The previously approved project had 54 units and 12,t3UU square feet of commercial whereas the proposed project had bb units and 15,000 square feet of commercial. Mayor Bechtel clarified that although the previously approved project had fewer units and about 2,200 less square footage of of- fice commercial, the units and building structure were larger. Mr. Schreiber said the average size of the previously approved project was 1,400 square feet, and with the slightly smaller amount of commercial, the site coverages were comparable. Mr. Brown said there was a difference in the two projects of about 4,UOU square feet of floor area, but that the Cox Project was not calculated out in its entirety because it met the zoning. mayor Bechtel aeciarea the puotic nearing open. Augustus Roses Maxemin, who represented Amax, Inc., 336 Cambridge Avenue, said the public benefit was that the housing would be.pro- vided to the first --time median and professional income buyer, fam- ilies with children, and that the project tied nine 8MR units, Stanford Plaza provided for smaller, well designed, and functional units that would result in a substantial increase in the number of potential buyers that were previously priced out. of the market due to the high price of real estate, mortgages, etc. It was a waste of land and resources for projects to sit empty for years awaiting foreclosure, and such misfortunes occurred to developers while thousands of people in Palo Alto paid increasingly higher rents, -could not afford `o buy a house, and - .itched• their hoaleeownersh;p dream slip further away. After nun=.erous Meetings with City offi- cials and input from several members of the community, he believed Stanford Plaza as well designed and functional, and that the City of Palo Alto would be proud of the project. Jean Ul msted, 240 We Charleston, was concerned of the precedent the project might set for related areas whe! a construction was possible, ana she wanted Palo Alto to remain a place wnere people enjoyed living. She presented survey report forms from 91 peopl e in the area wherein they were asked whether they wanted 4 two or three-story building, and what type of construction —housing and retail or housiriy, retail and office. When a,aked to choose be- tween two and three: stories, 82 out of the 91 wanted two storms, 'one wanted one story, one wanted three stories, and nine -did not answer. When asked to choose between all housing; housing and some retail; nous'ny, retail and some office, 45 those all hous- ing; 29 these°. hou.siny and retail; 8. chose housing, retail and -=of -- f i ce--of those eight responses, seven wanted a two-story project.. ti he concluded that the neighborhood wanted- a two-story:... project with all housing or housing and some retaile-not a three- _ sto.ry housing, retail and office space project as was proposed. Regard- ing shared parking,, there would be 70 spaces for residents, 60 for commercial and 31 shared spaces. . Since the .protect was expert-- mental,.-sne asked what would happen if all the residents took the bus. Palo Altans tried to use the bus service as much. as pos- sible, . which Meant a lot of pressure on the shared parkin4.-. It WAS' —a150 p0551ole that. resiaents with —Mare -than otte-car wouia use the ,car parked in the assign_ ed space and leave the car parked in the shared space. She was concerned --about what would happen if the parking concept did not work, and concluded that the customary parking requirements for the project should not be reduced. 3 6 4 4 8/01/83 Herb ieMdrf, 464 W. Char=leston, said an ad appeared in the Palo Alto Weekly last week wn•lch had a tear off sheet for people return. here were 43 responses received as of today --40 were against the project and ;i were in favor. He received 25 more responses in rinposrtion to the project at a meeting of the Charleston Meadows Association before tonight's meeting, and of the three responses in support of the project, one was received from the Traynor family. Soine neighborhood concern_ s had to do with the fact that a large piece of undeveloped land existed .next to the proposed Stanford Plaza project, which was presently owned by the Traynor family and ripe for development. An effort was made at the time the. zoning ordinance was being approved to have that property zoned in such a way that it would be developed resi- dential to the extent possible. As was expressed in the last sur-, vey and in several letters to the Council, the Charleston Meadows Association concluded that it wanted a development limited to two stories. The three stories not only impacted the adjacent resi- dential zones, but did not fit the present neighborhood commercial zone as it existed on El Camino Way. The highest building or that street was two stories and there were no three- story buildings nearby. The proposed project could set a precedent that would be followed on the larger adjacent parcel, and the Association be- lieved there should not be a lot of office space in the proposed project or in the neighborhood commercial zone because it was not in keeping with the concept of the zone and commercial space that. would serve the neighborhood. The Charleston Meadows Association requested that the Stanford Plaza project be denied because it was too high and there was not enough parking. He said it was within the Counci l 's power to make certain that a worse project was not approved if the proposed project were denied. If the proposed project were not deemed appropriate and if something worse could occur within the present zoning, there was something wrong with the zone on the property or how it was defined. He suggested that the CN might be more strict or perhaps a different zone applied to the property to assure that a worse development did not occur. An improvement in the Cpl zone might be to limit a building to two stories and to prevent office use from being acceptable in the neighborhood commercial zone. If allowances were given to the developer, they should be given to those willing to put in only housing. Consistency with a two- story limit on the property must mean consideriny doing the same thing with the adjoining property. He suyyested-that the reinstitution of the daylight plane, as in the original RM-2 zone, would protect R-1 zones from such a devel- opment. Millie Davis, 344 Tennessee Lanes said the objections were based on the extreme density of the project. As compared to the Peter Coutts Hill project, with seven units per acre, the proposed El Camino Way/James, Road project had 37.8 housing units per acre plus 15,00U} square feet 'of commercial= Questionnaires were sent out in the past few days, 17 responses were received, and all respondents were opposed to the project. Most respondents also' checked the Middlefield/Channiny Way proposal, and all but one was opposed. A telephone nuEnter was -given to call with comments, and 18 calls were received su far, and all but one opposed the project. The proposed offices in the project added to the density, created jobs which -detracted from the housing benefit, would not generate sales taxes, and required City services. It said that the offices were necessary to finance the project, but- no figures were supplied to support the statement, and the figures presented were the square foot construction costs for standard grade projects An envircnT-. mental assessment worksheet,,dated March.19, 1981, for the -previ- ous owner of the site, William Cox, gave the price of the land, and using the two_figures, it appeared that in today's improving housing market, -it was. possible to have a financially viable hous- ing only project. At the City Council meeting of April 5! 198.1, a motion was, made to study a possible reduction in the height limit for mixed use prijects and .,the incentives for an all residential use as opposed to:` an ince iti`ve for including some commercial. There was discussion about the possibility of reducing the height 3 6 4 5 8/01/83 limit --the limit in the neighborhood commercial zone had beer; 25 feet, which would be a two story building. In the 1978 zoning ordinance, a provision was included that if the third floor were a ll housing, the height limit could be increased to 35 feet. That caused problems in Barron Park where the neighborhood commercial zone was immediately adjacent to single family homes. Some of the height limits in neighborhood commercial zones included Menlo Park with 15 feet; Sunnvale, 20 to 30 feet dependent upon the height of the next single family home; Los Altos, two stories oe 30 feet whichever was most restrictive; Saratoga, 20 feet; Mountain View, two stories or 35 feet whichever was most restrictive. The Coun- cil appeared to be amenable to the idea of restricting the height in the zone yet believed that -since a study was pending, it would aelay the decision until it was completed. The proposed applica- tion was received in January and yet the decision was not made. It was mentioned it would take several months to complete the study, but it appeared there were some decisions that did not re- quire a study. Decisions could be made immediately in terms -of the height limit in the neighborhood commercial zone, whether of- fices should be allowed, and the possibility for a bonus in an all housing projects, and she asked the Council to vote on those as- pects of the neighborhood commercial zone tonight. It was calcu- lated that if the proposed site were developed to two stories of all housing with about a 45 foot lot coverage, there could be ap- proximately 65 housing units, which was exactly what the proposed project was going to provide, yet it was also putting in approxi- m� i n h e t h. 1 •J n.. } s1 ri n t n a rt ft./1.m t h si � a h n i. e i n .. Robert Hansen, 434 Tennessee Lane, was a member of the Charleston Meador. -s Association and urged opposition to the Stanford Plaza development. Inez Brennan, 4144 Wilkie Way, was an active member of the Charleston Meadows Association and emphasized that the Association opposed the project from the beginning. The Comprehensive Plan was developed over a number of years with a lot of citizen input, and she urged Council opposition. Bob Moss, 4010 Orme, said__the lot coverage of the Cox project was 22,015 square feet or 29.3 percent of the lot area. The residen- tial area covered 62,250 square fees., and with 54 units, was an average gross residential unit size of 1,054 square feet. When the Comprehensive Plan and Land Use Map were enacted in late 1978, many projects which had already received building permits became nonconforming, and could not be- bu?1L in the new zone. Five ex- ception applicants appeared at the first City Council meeting in January, 1979, and ail five were rejected unanimously, Mayor Carey presiding. He believed there was adequate precedent to rezone the Property as long as the building permit for the Cox project was not actually issued. The Barron Park Association believed the proposed project was improper for the CN zone, and were concerned about the deferred parking.`, As pointed out by Councilmember Cobb, the deferral was experimental, and the Barron Park Association _be- lieved the area_was wrong for an experiment because if it failed, it was too late to .change _it. The area was already congested acrd would yet worse in the future. He believed the project was more like a planned community CPC) where the developer was getting a 20 percent density bonus, in the housing. He proposed that there be a miri.imum of 180 parking spaces, and that the deferral be cut to no more than eight percent. The overall density. should be reduced to 60 units hecause the ,ox Project built out to the maximum residen„ tial :density was 64. The developer was giving three additional BMR units, and he suggested a one for one density bonus to give the developer six, additional units --3 BMR's and three market rate units. Regard;ny whether the market rate units would sell, the minutes of _the Ju ly 13 meeting of the Palo Alto Housing •Corpora- tion reflected'that there were some problems selling the Redwoods because they were small, had Only one closet, and one parking space. One ,applicant turned down the unit and said such small 3 6 4 6 8/01/83 units were an exploitation of the program. Ile found the Redwood units to be well laid out, and well aes'iyned, but would yive him and- his wife claustrophobia even with all the mirrors. The Iaryest units of 1,144 square feet would cost between $185,000 and $215,000, and he believed small units at high prices or large units at high prices had proven to be a drug in the market in Palo Alto. No one was being done a favor by approving a project with units that wuuld sit fallow on the market. Regarding the jobs/ housing imbalance, Mr. Kelley would be converting Mayfield Mall from shoppiny to offices --over 500,000 square feet. That would be an increase of three jobs per thousand square feet at the standard ratio of 1,000 square feet for retail per worker, and 250 square feet per office worker. That project alone would create a need for approximately 1,200 housing units in the Palo Alto area. It could not be said that because it was across the line in Mountain View that it would not create an intense need for housing, and es- sentially wipe out all the gains from Stanford West. He suggested that the Council look at those living in the area now, and if the development was too massive or oppressive, it should be rejected. Andrew Sutter, 410 Sheridan Avenue, spoke regarding the BMR units. He rented an apartment in Palo Alto for the last year and he and his fiancee would like to be able to buy something and stay in Palo Alto. He would be able to afford the units being discussed whereas most other units he would not. He supported the project and asked the Council to consider how a less dense project or one without office units m3Uht suoDort as many_ of tI-c hnlnW-manrint rate housing units so that young professionals might better be able to afford them. Grey, Frenkl in, 241 Forest, believed the issue of affordable hous- iny for young professionals in Palo Alto was important. He had rented in the City for six .years, and for the past four years searched for a place to buy ir. Palo Alto. The price of real es- tate in the area skyrocketed and housing prices were distressing. pie asked the Council to consider the plight of young professionals trying to live in the area because it was almost impossible for a young professional to buy property in Palo Alto considering the market price of property and the governing interest rates. He currently earned 1.5 times the median household income of Santa Clara County, but could not afford to buy a douse in Palo Alto be- cause he could not qualify for a loan. He believed he represented a group the Council would like to attract as residents, but unfor- tunately ne could not because of the price of housing in the area. _Tim Tight, 196 Colorado Avenue, said he was fortunate to own his house which he bought at a probate sale in 1978 for $60,000, and which consisted of 800 square feet and required three years of work to make it inhabitable. He recently went to graduate school and did not realize. how fortunate he was in 1978 because of his fellow graduates, few were able to afford houses in the area. The only ones with houses were those with houses in other cities. It was a -tough plight faking the young professionals of today, and one which should be addressed in. Palo Alto.because of the tremen- dous need for young talented professionals in all fields. He be- lieved the developer was conscientious in addressing the problem, provided an aesthetic housing project, units much in demand, and a sizable number of below market rate units that would be handy to students. -Tiro Berry,: 4217 AcKel. ar Large, hoped tine architectural designs would be approved. As a resident of the immediate area, he saw the construction and enhancement of the neighborhood vith the Red- wuod Condominiums on El Camino- Real.` He believed the pro'osed construction of :the Stanford Plaza would do a great deal to make the area a more pleasant place to live. The Council previously granted permits -to build apartments and condominiums which blended nicely into the existing neighborhood-, and the prapvsed project 3 6 4 7 8/01/83 would not only improve tne current condition of the pruderty, but would also give young prospective property owners a chance to ac- quire property in ti:e Palo Alto area. He was interested in main- taining his residency in the City --the many activities in terms of shopping, schools, and cultural events, were beyond reach to the majority of people in the area, and Stanford Plaza would put the benefits of the City within the reach of a few more. He urged approval of the plans, and that construction begin as soon as pos- sible. Steve and Joan Jennings, 369 Whitclem Drive, urged the Council to deny reclassification of the property at 4145-4161 El Camino Way to PC because they believed the project represented an extremely dense use of the less -than two acre:, of land in the neighborhood, and that it would negatively impact existing heavy traffic condi- tions ini the Alma, E1 Camino Real, Charleston, and East Meadow areas. Richard Leza, 4191 Br; a rwood Way, said the Greenmeadows Associa- tion supported the project. Uouylas Ross, 1315 Ramona Street, said Mr. Moss indicated that people were not excited about his BMR program, and he believed over half the units were called for, and the balance could be pointed toward the Housing Corporation and its real estate sales capability. There- was no problem in selling the units as evi- denced - by the fact that the market rate units which were exactly V=f�. .aiiwz 31 zE an4 b.�i c� U. n e a i l sU i u. The other. units varied in size and were selling well. He did not believe the sales price of The Redwoods had anything to do with the project, but if anything, it was positive. The density was over 45 units per acre and higher if the driveway were taken into account. People could do high density projects and create affordable hous- ing in Palo Alto as demonstrated by the success of The Redwoods. Florence LaRiviere, 453 Tennessee Lane, said at earlier meetings, her neighborhood association was enthusiastic about the changes that were proposed. They first heard that there would be nine BMR units, arid were delighted to donate those $55,000 units to the City until it was discovered that the units would be much more ex- pensive. It was believed that those who resided there would have a pleasant environment because of the reduction in the coverage of land, but it was ascertained that a recreation building would be added. She was confused about what could occur under the Cox plan with the 45,000 square feet of commercial. She understood that the_ proposed project was more than the floor coverage that might have been expected if the original zoning was adhered to. The neiohborhood was upset because it was likely that with the point of the arrow, the land could be developed from the point adjoining the Amax development all the way to Charleston Road. She lioped the Co!_:a ci : took the .,feelings of the neighborhood to heart and did something to alleviate their feelings of disadvantage. Mayor Bechtel declared the public hearing closed. Councilmember Cobb cited the almost overwhelmingly strong neigh- borhood opposition to the -project an- opposition which he did not believe was improved by. the fact that at -one point the Council ap— peared anxious to run the project through in a cavalier fashion with .respect to procedure. A lot of commentary was heard to the effect that the density was too high for the area, and as he pre- viously pointed out, . -the multiplexed parking --the duplicate use.of parking spaces for both commercial and residential use --was an un- proven concept and its failbre would overflow -into a neighborhood with already serious parking problems. -As one who lived. not far tram the affected. neighborhood_and in a. single story Eichl.-er, he believed it was outrageous to put a three story building next to a single story "Eichler" type neigh,_ .00l Regarding the 3 6 4 8 8/01/83 justification for d PC, there was a net gain of a few below market rate units which hardly seemed an appropriate justification for PC which created the problems for those who already lived in the C'ty. He relieved it was a questionable process for the Council to override the CN zone with a PC when it was only months away from completing a study of the CN zone. The CN zone was requested by the people in the general Barron Park area, and if a PC was justified for the proposed site, the same public benefit would be argued for the adjacent property, and the same kind of density could be carried down to Arastradero Road. He believed signifi- cant traffic and parking problems would be thrown to the neighbor- hood streets no matter what happened. He believed it was only ap- propriate to reject the proposal in its present form with a refer- ral back to the Planning Comm,ssion for a less dense project; or a motion to cut the height from three stories to two stories. MOTION: Councilmember Cobh moved, seconded by Renzel, to reject the project. Councilmember Renzel concurred with Councilmember Cobb, and said when she previously supported the project she expected the pro- posed reductions would result in some substantial improvements in the open space and general design, which did not occur. Councilmember Klein agreed with Councilmember Renzel. He would not support the proposal because it was still too dense for the area. He did not see the benefit to the City by granting a PC 7nnk-..ehPeO WAS no annrPcir hh: imndrt nn tho inheihn4ieinn ance, and the extra your units in the BMR program were not worth it. He believed the best course of action was to reject the pro- posal and move to take the appropriate action to get a zoning on the property that would produce a housing project everyone would feel comfortable. Councilmember Levy said that as he looked at the map of the area, it was difficult to favor rejecting the proposal in favor of a low density residential alternative. He saw an area entirely sur- rounded, except for a small area, by other commercial endeavors, it sat close to a major thoroughfare, one side was RM-5 zoning, and a small portion of the project backed up to R-1 and R-2 zon- ing, If it was the first step towards a major rezoning of the area, he could join in reconsideration, but thet was not proposed and he believed it was not the proper time to review it. The area was zoned as part of a Comprehensive Plan that involved looking at the City as a whole. Palo ?Alto was not a monolithic city where everyone lived in one kind of dwelling --it was a diverse suburb and almost cosmopolitan in that it had a number of defferent types of units. Transitions were never comfortable, and the question was whether the transition was acceptable. He believed the proj- ect was far preferable to the alternatives allowed by the zoning. The single family houses in the _ nei ghhorhood were 15 feet high, and the proposed project where it abutted the R-1 zone went up to approximately 20 to 25 feet in height, and as it moved towards El Camino Way, to 35 feet in height. The amount of commercial space was i5,UU0 square feet gross, and over 40,000 square feet would be acceptable in a neighborhood commercial zone.-- There was a reason- able number -of rest--ential units, and he. heard the neighbors, say that the number of bodies occupying the area wad not that much of d problem. The concern seemed to be more the 'bulk --the height, and the._way the project filled the total envelope. He was not prepared to vote on the project as it currently --existed, but did not ,see a benefit jn rejecting the- project given the surrounding area and what it meant for the" tota l i ty of the community. Vice Mayor Witherspoon said she :would not support the motion to reject the project. She believed tonight was the culmination of a long process -that started last October, and while -the project was not perfect, she found it to be an exciting project architectural- ly and believed the applicant did his best to make it so given the neighborhood constraints. The jobs/housing 'imbalance was not 3 5 4 9 8/01/83 computed oe a one to one ratio and the latest consensus indicated 1.b to 1.8 employed -persons per household in Palo Alto. Flow many more housing units to add to the housing stock in Palo Alto was an ayoniziny decision given the fact that City was beginning to re- develop lots adjacent to R-1 neighborhoods. It was proper to dis- cuss concept and whether the Council should change its philosophy in the Comprehensive Plan review scheduled for next year. She urged the citizens and the Council to re-examine the philosophy during reconsideration. She believed the developer compromised on the proposed project and her only.quarrel was that the City might need more parking. She wanted to see the project built and be- lieved_that some of the ads were unfair and in many cases exagger- ated in terms of the neighborhood impacts. Given the busy arter- ial at the site, the project was probably the, best one for it. She did not want to see the, project built out to its full allowed density under certain circumstances. Councilmember Eyerly was disturbed that every time a permit for a multiple femtly unit was applied for, the residents in the sur- -rounding areas objected regardless of the density. It always seemed to be -after the fact, and W .,as becoming more frequent with each project. The application was filed in October, 1982, and the developer put forth considerable effort to compromise and bring back some type of valuable project for Palo Alto. He believed many people in town were unrealistic about the economic ground values, and talked about lowering the densities on properties which abutted El Camino Real or El Cimino Way in that immediate ArPA, ee Wnlitd dire to cCC R-1 !I^netng en Et Ceminn tut it wee not feasible with the ground values. He was sympathetic to the fact that it was a transition zone and that some of the transition zones had to be in areas such as El Camino. The fears of the com- munity were in terms of height and traffic. He did not believe the height' fear was entirely realistic because substantial set- nacks abutted the it.-1 areas and it was not three stories immedi- ately adjacent to the R-1. Traffic was a fear for everything in Palo . Alto, and the project was designed to ingress and egress off el Camino Way. If there was an overload of traffic in the resi- dential areas, that was a problem the City had to face. He be- lieved the Council must be fair to all property owners whether they were owners of R-1, multiple family or commercial property. Those owners had riyhts to develop their properties in some way and they had a right to depend upon the zoning reflected in the Comprehensive Plan, and it was unfair to disallow some sensible type prof act. He did not support the motion, and hoped the Coun- cil would put forth some type of motion to approve the ordinance in its present format or in some amended way. Covncilmember Fazzino said Vice Mayor Witherspoon end Council - member Levy best reflected his feelings. Given the neighborhood concerns_ ebout heighe, harking, and general bulls, he was willing to work With Counciirnember Cobb and other Councilmembers to alter specific aspects of the project to reduce the impact on the area. He agreed with Vice Mayor Witherspoon and Councilmembers Levy and Eyerly about how lone it took to develop the Comprehensive Plah and--tne many di.scusslons between the City and developer about the appropriateness of the project in that particular area. The ele- ment of truss:_ and faith must be, respected, and he could not vote to reject the project outright, etthough he was emotionally tugged to do so given -the neighborhood opposition. He was as frustrated as ,.other Councilmembers and neighbors that the -City struggled so often with projects, such as the one proposed about 'whether it arriyht b.e totally 'rnsatisfactory to adjoining neignaorhoods. He could not be'l i eve 'the City Council spent nine years on the Compre- hensive processe which had an .annual amendment process, and had continuing community opposition to the proposals-, The Council- hed__much work ahead to lower the densities in locations where res- idential areas. abutted commercial. He was particularly concerned about the downtown and College Terrace areas Where a 'lower height reduced potential for job creation, and increased_•'parking 3 6 5 0 8/01/83 restrictions should be imposed. He hcpcd the result of the CU study would point in those directions. The.,plan before the Coun- cil was developed within the parameters of the zoning, and he hoped his colleagues would reject the motion so specific aspects could be addressed. Un the positive side, -he believed the Council worked closely with the developer and provided its support for the housing proposed for the site. The project was directed toward a major aspect of the Comprehensive Plan, had generally good archi- tecture, and should be encouraged. Ile urged the project not be rejected outright-, and that ways to. reduce its impact on the neighborhood be discussed. Councilmember Fletcher said the neighborhood association played an active role in developing the Comprehensive Plan, land use and zoning maps, and raised no outcry until the project, which matched the zoning, was proposed. Neighborhood opposition was easy to raise in any project, but those people who wanted to live in Palo Alto were not represented. She wanted to see young professionals live in Palo Alto, as they had in the past, and therefore she would reject the motion. She was amenable to an alternative sug- gestion, such as that voiced by Councilmember Cobb. Councilmember Renzel reminded the Council that one of the first priorities of the Comprehensive Plan was to protect and preserve R-1 neighborhoods. She rejected the remark that the neighborhoods had not complained until after the fact --concern was expressed at every stage. The adjacent property that everyone was concerned Ahn" !'1A -C' net r4 -Ket re her CFO --e m oe:i all a dense LUfle wi i 4 Use potential for a much greater impact: Land values were based on toning, and the PC zone incorporated parts of a neighborhood cour- t uercial and a RM-"l. zone. That was a compromise because the neigh- bors originally wanted solely residential zoning. The Council could not complain about the buildings being erected all over town and sho:,rla not take responsibility for the zoning that permitted it.. Since the zoning was.established, many aspects changed, such as .usable open space requirements and raising the daylight plane heiglt. She said responsibility must be accepted by everyone, and .changes made quicklyr Councilr;emoer Cobb a -greed entirely with Councilmember Renzel. It. was unfair for the Council to say people showed excitement only when something was to happen in their neighborhood. Most resi- dents did not.follow zoning ordinances closely, but left that job to the Council, where it belonged. It was unrealistic to expect people to show concern about th;ngs that did net closely concern them. The zone was a PC, which allowed increased density for some public benefit, and in this case the public benefit was a mini- scule number of additional units. The Comprehensive Plan could be interpreted widely, but he did not believe the five major pro- posals of the Flan were met. Those were to maintain the general low character density of the single family areas, to slow down graawth, to maintain existing housing and provide some new housing at the below to moderate income levels --which the project did but only a little more than the epproved project for the CN zone. The fifth:, proposal was to change the appearance and function of El CaminO Real in a positive way, and while the' proposed project could improve the physical appearance, it could create a wall 'of undesirable bui ldinys, all -the way to Arastradero. He did not think the project was consistent with the Comprehensive Plana Mayor b echtel'agreed that the project was too dense and .caused too much traffic for- the_site, but was amenabl-e to some other pro- posais--in particular something ti't would eliminate the third story. MTiUllll FAILED by a vote of 4-5, Menzel, Bechtel, Klein, Cobb voting 'afire. ° 3 6 5 1 8/01/83 MOTION: Councilmember Cobb moved seconded 1 t theMOTION: by that project be referred back to the planning Commission for a recom- mendation for a two-story project. Vice Mayor Witherspoon asked staff, if the motion should pass, would the developer's option be to not ask for a PC but to go with the existing zoning that would allow for three stories. Mr. Brown said they could either do that or ask for a building permit for the Cox project. Councilmember Fazzino was supportive of the proposal to reduce the height to two stories. He had voted in favor of the project three months earlier, and still felt it made sense in general.. He had been swayed by neighborhood concern about the impact of the third floor. The project should not be continually referred back to the Planning Commission, and a specific policy should be set that eve- ning. He felt it would constitute a strong statement to state that during the CN study all issues of height, parking, general bulk, and possible density reduction would have to be studied. He supported the moliuji ta reduce the stories from three to two. Councilmember Klein supported the height would kill the project, and he wished to make it clear that precedent, and he did not consider cy to adopt City-wide. Sometimes propr late. motion. A reduction in story thus meet his wishes. However, his vote did not coiis.itute a story reduction as a wise poll - three -story buildings were ap- Councilmember Levy did not think projects should be decided on in Council. The motion would encourage the develcper to cover a large area of land with two-story buildings, which he felt was a bad design policy. He would prefer a development with varied heights and a plaza. A single family neighborhood was made pleasant by the diversity and open spaces. If the Council mandat- ed two stories throughout the project, it might not kill it, but would cause a very dull development. The Council should consider the impact on the single family neighborhood behind it and draw up criteria on the setbacks and how the project should be scaled down so that it phased in pleasantly. He thought a two-story require- ment was a bad policy and he hoped the project could be looked at more creatively. Councilmember Fletcher agreed with Councilmember Levy. It was necessary to reduce the bulk and the density, but not to tie down the Planning Commission in its options. Responding to a comment made from the pu:lic, she said the Council could not immediately rezone the property --that was a lengthy process. Councilmember Eyerly sought areas of agreement. He understood current zoning permitted 34 units to be erected on the RM-2 and 34 units on the RM-5 and he asked how many units could be built on the CN zone. Mr. Brown said 20 snits plus whatever commercial square footage would add up to a total of 49,500 square feet of total floor area on that portion of the site. Councilmember Eyerly said the proposal showed 15,000 square feet for commercial use, with a total of 65 units on the; whole project. The Council's aim was to hold commercial use dowr to the minimum of 15,000 square feet and try to reduce the total number of units from 65 to approximately, 54 units, with some conditions regarding height, arid requiring the three-story buildings to be set further back from the rear property line. He asked for the distance from the R-1 area property line to the three-story buildings. 3 6 5 2 8/01/83 Mr. Brown said the distance was about 40 feet. Councilmember Eyeriy said those were some of Lhe parameters to look at. However, they should first vote against the motion. Councilmember-Levy urged the Council to reconsider. He felt re- ferring the project back to the Planning Commission was needless. The Council should address the, specific items of contention. REFERRAL MOTION FAILED, 5-4, Renzel, Fazzino, Klein and Cobb voting "aye% MOTION: Councilmember Fletcher moved, seconded by Renzel, to refer the project back to the Planning Commission for a revised project with less density and less bulk, Councilmember Cobb asked Councilmember Fletcher to incorporate two items into her motion. He asked for inclusion of Councilmember Levy's request for a sensitive transition to the single family neighborhoods, and reducing or eliminating multiplex parking. Councilmember Fletcher was not sure elimination of multiplex parking would be°suitable. She asked Councilmember Cobb to mcke a separate motion on that natter. COIiNCILMEMBERS FLETCHER AHD FAllINO INCLUDED IN THEIR MOTIOM A REQUEST FOR A REVISED PROJECT THAT IS A SENSITIVE TRANSITION TO THE SINGLE FAMILY NEIGHBORHOOD FROM THE COMMERCIAL NEIGHBORHOOD 'ice Mayor Witherspoon said she thought the Council was now moving ahead, but asked for c_o►nfifrnation that the proposal complied with the daylight pane requirements. Mr. Brown said it did. Even the earlier versions, with units closer to the Tennessee Lane frontage, had complied with the 20 feet, 45 degree requirement. Vice Mayor Witherspoon felt they must be more specific, and asked if they would require a psychological barrier --no windows on that side, or a physical_, one --with the setback greater than the day - tight plane required. Mr. Brown showed a transparency of the project seen from Tennessee Lane. Councilmember Levy agreed the request was vague. He suggested the request be directed to the Architectural Review Board (ARB). The neighbors were concerned about the impact of the three-story building, and he felt the ARB could ensure a proper physical transition; so the total bulk of the project did not destroy view lines. It was, therefore, acceptable to refer the project back to the ARB with the specific request t.hat`' they look at those ele- ments. Mayor Bechtel disagreed.. The design was somewhat sensitive to the transition to the neighborhood. The transparency showed that the area closest to the single family area was one.. story, moving into two-story and then three-story units. The problem was not only of design but also of density, and therefore should go back to the Planning Commission. Mr. Brown commented each review by the ARB stated the design was very appropriate, but staff did not wish to become involved in the land use type decisions --.the density. They left that to te Plan- ning Commission and the Council. Director of Planning and Community Environment_ Ken Schreiber said that density should be referred back to both tIie Planning Commis- sion and the ARB, as it concerned both bodies. 3 6 5 3 8/01/83 As Corrected 12/12/83 Councilmember Cobb said the ARC considered only those policy is- sues that were left. He found the design nice looking and ques- tioned only the scale and bulk of the project. If the Council could not resolve those issues, they should be referred to the Planning Commission. The Council should not act as planning com- missioners. He was willing to refer the project to the Planning Commission with the understanding it would then return to the Council with less scale, less density, and a better transition to the neighborhood. AMENDMENT: Councilmember Cobb moved, seconded by Renzel, to requiro the multiplexed parking (shared parking deferral) be eliminated or substantially reduced. Councilmember Renzel said a large three-story ouilding would have a much more significant impact on the one-story area than would a small three-story building. Only one three-story family house had been built in Palo Alto in the past fifty years, and it was one of the ugliest in town. It was not so much a question of height, but how the building blended iii. Councilmember Fletcher pointed out that a reduction in scale and bulk would increase the price of the units, as would more parking, resulting in expensive condominiums. As it would provide no pub- lic benefit, the project would be tu• ned down. She was not con- vinced parkin; was a problem. However, referring it to the Plan- ning Commission a irl not rule ut height not -rule �,�.,, +��.. r ��e�. paHKiny limitations. The Commission would have the Council's comments and would con- sider all aspects. Therefore, she preferred to leave the question of parking open. AMENDMENT FAILED, 5-4, Renzel, Klein, Fazziho and Cobb voting "Aye". Councilmember Eyerly felt the matter should be referred to the Planning Commission, which would be free to look at the possible reduction of units if economically feasible. Councilmember Levy asked if the developers could abandon the planned communityconcept, and esk for permission to build the Cox proposal witn ten percent fewer units and approximately 15 percent less commercial space. Mr. Brown said that was possible, with a parking deferral of ap- proximately 13 percent for the entire project. Councilmember Levy said, by refo,rring the project back to the Planning Commission, the Council was endorsing the Cox proposal, Mr. Brown said he thought the applicant would reconsider the Cox proposal or a project conforming to the existing zoning. Councilmemher Levy pointed out that the existing zoning allowed 50,000 square feet of commercial space or three and a third times as much as the current project. He asked if so much could be built. Mr. Brown said parking limitations could become a factor, also the ARB would assess the traffic generated. He was unable to hazard a figure. Councilmember Levy asked if it would be possible to add u -P to 34 residential units. Mr. Brown said 34 residential units and 49,500 square feet of -com- mercial space could be erected. Councilmember: Levy said there were two alternatives: either the relrrAnt prniort of 1 f. f.l��1 cnilxra foot A third of rfhi.�h .must kA ..� �. � , .- � .. < • ... r must vV retail, with the rest as office space, and ou residential units, 3 6 5 4 8/01/83 As Corrected 12/12/83 of pr ed fi th which nine we -e BMR units. The alternative would be the Cox oposal, or 12,300 square fret of cowiiercial, hone of which rieeii- Lo be retail, with 54 residential units, of which he assumed ve would be BMR units. He asked for a comparison of the bulk of e two projects. Mr. Brown said preliminary calculations showed it to be about ten percent less floor area. Councilmenber Levy asked if i;t was as sensitive to he neighbor- hood. Mr. ally that have spac Coun appe thou Coun duct new amen Brown said pro being 26 fee point. The a large centr e being broken cilmember Levy ared small, t ght the choice cilmember Klei ion of density ordinance mea ded. bably not, beceuse it was not set back so radic- t from the property line and rising straight at configuration was ale() different. It did not al plaza but two or ehree smaller ones, the open into smaller, less functional units. did not know which to choose. The Cox project he current one more thoughtful. However, he between the two would be made by the motion. n said he understood the ARB could require a re - of zoning, preventing unlimited building. The nt the zoning shown in the records could be 11 - fl, 1' I i • L 1 IJ ri i i 3 li 1 .J ronmental impact. was U 1 t h e reduction were based on e Y 1- COUNCILMEHBERS FLETCHER AND FAllIiIO INCLUDED IN THEIR MOTION THAT THE PROJECT BE REFERRED BACK TO BOTH THE ARCHITECTURAL REVIEW BOARD AND THE PLANNING COMMISSION REFERRAL MOTION TO PLANNING COMMISSION AND ARE PASSED by a rote of 8-1, Witherspoon voting "no". RECESS FROM 9:55 p.m. TO 10:10 p.m. ITEM #4, PUBLIC HEARING: APPEAL OF NANCY CLAIR STONE FROM THE t DIRECTOR TH KTTEOT ATT-RETTITERTTTL-77WURTRWR , ut 1L'LUVeer-AT 7105 $IUDLEF ILLU L3A iJ72 -Lz8 CKAMNTNG'jC R:43J:3) �... w s�r�wrw Staff recommends that the City Coun:i 1 (1) Approve the negative declaration and find that the project will have no significant adverse environmental i pacts; (2) Find that the proposed project is compatible with the goals and purposes of the architectural review process (Chapter 16.48 of the Palo Alto Municipal Code); (3) Uphold the decision of the Architectural Review Board and the Director of Planning and Community Environment to approve the project subject to the condition that no building permits for the construction of the project shall be issued until the ownership issue receives a final judgment on the merits by a court of com- petent jurisdiction determining that the applicant has title to the property. Director of Planning and Community Environment Ken Schreiber said the property was zoned RM-4 and was adjacent on one side to R-1, single family_ and on the Middlefield/Channing corner to R-2 zones. Although the zoning and initial proposal was RM-4, the ARB process resulted in a three unit reduction and project design. modification to respond to the concerns -of the neighborhood. The density, site coverage, height, and usable open space met RM-3 zoning require- ments. 3 6 5 5 8/01/83 City Attorney Diane Lee said they had suggested insertion of a condition preventing work beyond the ARB stage` without resolution of the ownership issue, Appropriate language was suggested in the staff report which the Council was asked to incorporate. That particular question need not concern the Council in arriving at its decision. Mayor Bechtel asked if the Council was able to review the compati- bility of the project with the neighborhood. ;Ms. -Lee said it could, because how the project fitted in with the neighborhood was part of the project design. Councilmember Henze] sa'd that in answering the appeal the Council was performing ARB work. Councilmember Cobb asked for the status of the other project that constituted the other half of tiie dispute. Ms. Lee said she believed work on the interior not requiring a building permit had been done. Work on the exterior had begun be- fore it was discovered that ARB approval had not been obtained. At that. point the other claimant to ownership was encouraged to file an application. Chief Planning Official Bruce Freeland said ari application bccri filer. There was a proposed rehabilitation of office frontiny on Middlefield. Mayor Bechtel declared the public hearing open. had use Ernest Ames, 1015 Fast Hillsdale Boulevard, Foster City, architect foe the projects said initial zoning allowed for development of 11 units in addition to some office use. Planning staff persuaded thee} it was inappropriate, as mixed use would considerably augment traffic. A residential development of 11 condominiums was presented to the ARB in April. At that time they learned the neighborhood ob,;ected to the size, bulk, height; of the project, and to the possibility of excessive traffic. The project was re- designed and reduced from 1, -/DO to 1,400 square feet and from 11 to eight units. At the urging of the ARB the plan was made More compact, allowing -,more space between the development and single family homes on both Middlefield and Channing. The plan was pleasing and scale -related to adjacent residences, and specifical- ly designed not to be overwhelming. The neighborhood groups and the AIth applauded their efforts. Presentations to the groups had been made The ARB insisted that the height of the eight unit project be dirn-iiished by putting the parking ur:ierground. This was agreed to, and there were two underground parking stalls- per unit. He felt much time and effort to accommodate neighborhood concerns had been expended, and the project was pleasing and dould improve the City. Gerald Lllersdorfer, 405 14th `Street, Oakland, the_attorney for the developer, said he felt the project met the concerns ex- pressed. The project eeduced traffic; improved the visual quality of the neighborhood, and met the existing zoning, which Wes not residential. The project tended away from professional offices witti mvre traffics to a more residential use. The project met all concerns, and there was no valid reason to deny it. Donna Bendotoff, 751 Channing Avenue, said marry. of her neighbors , were on vacation or had left the meeting. She did not feel tho ARB ruling was in accordance with the Comprehensive Plan. The project did not preserve the character of the neighborhood. Neighbors felt the large building was inappropriate. Tne neigh- borhood had grown -during the last decade and had been upgraded from rentals to owned homes. They wished to maintain a -family- oriented neighborhood in the face of many public use . They did'_ 3 e 5 6 8/01/83 not want such projects imposed on them. There was insufficient buffering and it was aesthetically unfit. A,member of the ARB had agreed, sayi ny it was entirely wrong for, thate neighborhood and calling it d biy stucco box. The ARB did not feel it under their jurisdiction to recommend changing a zoning they thought incompat- ible. She urged the Council to review the RM-4 zoning of the area. She was not opposed to increasing housing in Palo Alto, but felt the existing apartment building met this need better, especially for 1U4 to moderate incomes. The corner lot was more compatible with the environment. The four apartment houses would be replaced by four -condominiums, and the other house to be re- placed could not be developed into a large building. Their peti- tion, circulated in the neighborhood only, received much positive support. She showed slides to prove the condominiums would not fit in. hike Wright, 7b5 Channing, said one of the objectives of the Com- prehensive Plan was to avoid drastic changes in neighborhoods. The zoning was revised in 1978 to reflect a aradi;al change of Scale, but he felt the condominiums represented an abrupt one -- there was a lack of transitional zoning in the area, Middlefield Road represented a natural barrier. Between Willow and Oregon Lxpressway there were no three-story buildings comparable to the project, and he asked the Council to prevent the exception being imposed on their neighborhood. Jim Weayer, 975 Channing, agreed with the previous speakers. How- ever, his primary objection was that the RM-4 zoning was totally inappropriate for the area. Four senior citizens lived in the bui l�' ny adjacent to the project, and the Comprehensive Plan said disp cement of individuals, especially the elderly, should be avo sed. The project was put before the ARB before local resi- dents were informed, They learned of it from the newspaper. Ronald Remmel, 827 Middlefield Road,, referred to the zoning made prior to 1978. A light commercial area RP -3 was rezoned to `RM-4. The current buildings fit into the community. Referring to earlier remarks that people complai: 'd only after the fact, he said ;le and his neighbors had not re ized the potential for such a project existed, otherwise they would have protested earlier. The existing light commercial and apartment complexes were compat- ible, but the proposed project dramatically detracted from the neighborhood. Immediately across Middlefield was Webster Woods, a City. low-cost housing project. The development was pleasant, be- cause open space and aesthetically pleasing materials were used. The proposed architecture was incompatible. He hoped when re- zoning was considered, their neighborhood would be included. The current apartment house was and had been fully occupied. the project would make those people homeless. Manyeyoung profession- als were looking for housing, but would find the project unaffordi5 able at .$3UU,000 per unit. The project would not fill a need for young professionals. When he grew up there was a mixture of people, and he liked to `see the same mixed clmmuni ti es. Cou.nci lmenrber Levy asked if it was the physical intrusion, not the number of automobile trips generated or inhabitants to which they Objected. Mr, Rernmel felt b.uRk was the essence of the problem, `1e had no means of estimating traffic flow. -There were 22 children on the street„ a rarity in Palo Alto, There were Churches throughout the commodity, ardd weekend parkin?, was a problem. There was 'currently parking for the apartment complex, and no weekend business in the light commercial area-. He disliked the bulk -and the architecture of _the proposed project. Jerry Rodder, 715 Sunshine Drive, Los Altos, had title to the 905 Middlefield koad property and planned renovation of the interiors, of which 80 percent had been completed. He hoped the ARB would 3 6 5 7 8/01/83 approve the exterior design. Councilmember Fletcher received confirmation from Mr. Rudder that he was renovating the 905 Middlefield -Road property. Alice Williams, 454 Tennessee Lane, whose children had friends in that neighborhood drove in the area very often. She concurred that Webster Woods was a fine development where children were hap- py and comfortable, The Channing Avenue residential area was a pleasant, -friendly neighborhood with fine older homes. The proj- ect would be an intrusion, and the area should be rezoned. Kathryn Vi_nokur, 919 Channing, appreciated the Councilmembers' comments during the previous discussion about anomalous rezoning, transitions from multiple to single family use, land coverage, and scale, which applied equally to the current project. A long time resident, she had seen many large scale buildings in downtown Palo Alto built and remain vacant. She felt the reason for that was they did not provide balconies or outdoor access. While a larger number of units was desirable, the project was out of scale, and she asked the Council to consider —that aspect. Visitors would have to park on the street. Single. family owners understood greater density would have to occur, but the zoning had caused a dramatic change. :Ole -small unit on the corner was only so zoned because of its professional use. Millie [iavia, 344 Tennessee Lane, complimented the Council on hav- ing voted approval of the new RMD zone to preserve existing habit- able .structures. The application would result in the demolition of existing, habitable rental units and run counter to that deci- sion. She supported the residents opposed to the application. Mayor Bechtel closed the public hearing. Councilmember Eyerly agreed with the neighbors' comments. Regard- less of the zoning, the. aesthetics and the height of the project were too great. He might support a two-story development more in keeping with -the neighborhood. MOTION; Councilmember Eyerly moved, seconded by Fazzino, to up- hold the appeal and to reject the Architectural Review Board recommendations for the project. Councilmember Fletcher said she found the project completely out of scale. The ,Ccuncil..was at fault for approving an RM-4 zone surrounded by RM-1. That should have beer rectified when the Zon- ing Ordinance was under consideration. She was in favor of the motion. Councilmember Fazzino supported Councilmember Eyerly's comments, but said the applicant had acted in good faith, meeting with the neighbors to try to resolve concerns. However, he was in favor of the motion. He would like to preserve the single family homes and low scale commercial use of Middlefield Road. The idea of the condominium project'.,replacing the old Church of Scientology had sold very poorly. He felt such projects would never sell well, and in particular when they wet a out of scale. The project was aesthetically unacceptable and inappropriate in size. He hoped the existing site could be saved. Councilmember Klein said he had had an office at 400 Channing, and enjoyed the area. He had mixed feelings when disagreeing with his colleagues He found the project appropriate. The ARB's findings were not out of character. There were many large, older two- story houses in the area, so a three-story house would not cause too great a contrast. A reduction in density beyond`, that already in existence was contrary to Council policy, The project would provide a net reduction in traffic, an unusual occurrence and a plus. The proposal of the other "owner" would result in more 3 5 5 8/01/83 traffic. The developer had acted in accordance with the ordi- nance, acid his proposal met even RM-3 rather than RM-4 zoning. However it could be rejected because the ARB Ordinance allowed zoning to be ignored. . That was very unfortunate, and meant Palo Alto had no rules anyone could rely on. People had a right to rely on zoning and the ARB ordinance meant the City would be regarded as not living up to its promises; He found the project not deleterious to the community. Neighborhoods almost always opposed new projects in Palo Alto, but frequently changed their minds, as with the Webster Woods project. Councilmember Renzei' concurred with Councilmembers Fletcher, Eyerly, and Fazzino. The Council was standing in the shoes of the ARB, and it was appropriate to consider whether the project was compatible. Many of the ARB members felt it was not compatible with the neighborhood but was within the zoning, an entirely dif- ferent matter. The project was clearly out of scale with a neigh- Lorhood in which she used to live and knew well. She had been impressed by the upscaling of the, homes and by the number of children. She was on the Planning Commission at the time of adop- tion of the new Zoning Ordinance when eight multi -family zones were reduced to four. The' zone that was the closest fit without increasing density had been applied. The criterioe used was the number of units, and incompatible site characteristics had not been considered. Everyone erroneously assumed that various apart- ment developments reflected the maximum potential. The R3(P) zone then had a height limit of 12 feet at the property line and in- creased by one foot for every five feet in, so by that standard it would be necessary to allow 90 feet frcr the next property to build. 30 feet high, but the project allowed 30 feet. Then only nine units would have been allowed and open space requirements also differed. She gave a short history to shot' how necessary it was to re-examine the pockets of inappropriate zoning. The proj- ect was clearly incompatible. Referring to Councilmember Klein's remark abort "hysteria" concerning three stories, she reiterated the substantially different impact of small and large three-story buildings. A smaller one allowed more light and air. With regard to the ARB, an architect on the Planning Commission asked for the parameters of the zone to be set high to allow the architects to be creative. No one thought that by setting the parameters they would set the minimum developments for those sites. They had given the architects latitude to provide nice buildings, but only got the big ones. If the ARB was not to be given design latitude then the parameters must be tighter because otherwise obtrusive, incompatible projects would continually appear. She thought it crucial the ARB have a design review that went beyond the mere zoning specifications. Vice Mayor Witherspoon was concerned with the design. The height limit was acceptable, unless it was built wal,1-to-wal i . Density, i f well designed, was alsb not a factor There was a small light well in the center that would not be used, and there was very little outside area which was unacceptable. The project was very close to other buildings. Rezoning should be addressed when the Comprehensive Plan was reviewed. She would vote for the motion on the floor. Councilmember Cobb said Councilmember Klein's comments were valid. The Zoning Ordinance should have meaning. However, the zone was completely wrong for the area. In the next -round of zoning such problem areas should be scrutinized, as there were several that could provide seeds for catastrophe. Once such areas had .been settled, zoning should be adhered to. Although he thought the ground was becoming shaky legally, the Council could not damage neighborhoods through a narrow interpretation. _ He supported the motion and referred to his comments earlier about "condomania." The project was so big and had such :an impact on the neighborhood that he could not support it. That should be considered 'a holding action until zoning was corrected. 3 6 5 9 8/01/83 As Corrected 12/12/83 1 i t,e: e Levy agreed with CouncilmaErbcr Klein. He felt that 4 ���ri�i �E3.. Ei{�vr Li;i ii i;� .e had the project been designed with wood shingle siccing, it would- have'been approved, as the objection was one of aesthetics, not density. .The project reduced traffic and the jobs/housing imbal- ance. He drove down that street every day.- The trees were tall and thick and would dwarf the project. The trees, were not shown in the drawings to hide the "stucco box." The house, on that street were large and could not be contained in photographs taken from across the street. The RM-3 density was contained in two projects that were broken up and was acceptable, although he did not like the architecture. He deferred to the ARB decision in that regard. Some reliance must be felt for z.oniny. -Council's ad hoc decisions increased housing costs tremendously, and it was now customary for applicants to approach Councilmembers and Planning Commissioners to influence decisions. Mayor Bechtel said she looked for three-story, buildings in the neighborhood, and believed one was located on Cowper near Forest. That was the closest one she found, and she believed the project did not fit into the neighborhood. Mr. Freeland said in view of the Council's feelings, the following formal finding should be included it the motion that the project is --not compatible with the goals and purposes of the City's Archi- tectural -'Review Board process in that it violates the standard that the project should be compatible with the immediate environ- ment of the site and the standard that the design should promote harmonious transitions in scale and character in areas between different designated land uses and that.the project is not compat- ible with neighboring properties due to its height, scale, and general aesthetics CUUNCILMEMBERS EYERLY AND FALLINO INCORPORATED THE FOREGOING LANGUANGE INTO THE MOTION. MOTION PASSED by a vote of 7-2, Klein and Levy voting "no". 1Ti<.M #b FINANCE AND PUBLIC WORKS COMMITTEE RECOMMENDATION RE 0 Counci lmember Klein suggested the item before the Council be d-- vided into three sections: I) Method of financing for the repairs on City Hall and the proposed build out; 2) whether the City srrould proceed with the build out portion of the project; and 3) if the votes were affirmative on the financing and build out, should the issues be referendable. Regarding the method of finan- cing, the F&IW Committee recommended the City adopt the lease/ purchase financing method using a nonprofit -corporation and certi- ficates of participation, and as a sub -issue, with a negotiated sale rather than one that went to bid. The Committee was unani- mous in approving the lease/purchase financing using the nonprofit corporation certificates of participation with a negotiated sale. Reya rdi ny whether to proceed with the build out, the Committee' by a vote of 3-1, Witherspoon voting "no," recommended reonsidera- tion of the issue and deletion of the build out portion'. e.He be- lieved that since the method of financing the project was to be out of General Fund revenues whe)i all was saki and done, and since the money for the build out would also have to come from the Gen- eral Fund projects, the project must be compared to other capital improvement projects.. Aithouyh he believed the build out would be sornethiny nice dndo also needed for the' City, there were other, projects far -more needed, and he could W. justify proceeding with - the build out at the present time. the Committee sent a 1 of of time. discussing Whether the repair project should be referendaile and whether the build out portion shoulde be referendable. The Committee voted 4-1, Hitherspoon voting 'no,," that both projects, tf approved, should be referendable. The feeling was that as many things as'possible should be subject -to the ability of the voters t.o override the-.Councf.i's decisions. Even though he voted for the iiJi-ly Out —and -repairs to be referendable, staff's presentation 3 6 6 0 8/01/83 persuaded him to change v make his ,. !}t to ,i3ur.� the e r tpa r e work not referendable, but if the Counc+l went forward with the build out portion of the project, he wanted 1t to be'referendable. There were miscellaneous items the Committee was unanimous in approving. Those recommendations were set forth in items 2, _3_ 4; and 5, con- cerning neyotiatic rs w;th law tiro"s and financial consultants, and preparation of the necessary leyal and financial documents. H' suggested that a vote should be taken separately on each of the four items. MOTION: Counciimeraber Klein moved for the Finance and Public Works Committee to adopt the lease/purchase financing using a non- profit corporation and Certificates of Participation with a nego- t f ated . sale (due to the need to expedite sales of the issues and the flexibility this would allow in the volatile market) as --the preferred vehicle for financing the Civic Center Structural Re- pairs and Build Out projects. AMENDMENT: Councilmeaaber Klein moved, seconded by Cobb, that the City Council not sit as a Board of Directors. Counci lmember Levy said he was one ewho voted iri favor of the fi- nancing method. He had a problem with the entire project because staff -thrust a whole combination of too many items into one. It started out more complex than; it ended up, but one complexity re- vull ved -around the' financing method, with which he was uncomfort- able. They came so far that he would not vote against it, but would abstain because the Council was voting the City an encem- brance of $500,000 per year for the next 25 years. The Council was voting for a project that would cost about two and one-half tines the real cost of the project because of the interest on the bonds over the 20 year period. The City had some reserves over and above its normal operating reserves, but as he reflected, the Committee was remiss not to seriously consider using a portion of the existing reserves because every dollar spent would have saved a couple of dollars .in Tony -term interest expenses. The fact was that tie project did not generate any income to the City --the Money would have to be paid out in hard dollars either today or tomorrow. The future revenues of the City would be hard pressed to- keep up with the rate of inflation given the restrictions of Proposition 13. He questioned whether a bond issue was the best way, The City did not have enough money . to finance the entire project out of pocket --same debt would have to be incurred --but he believed that incurring total debt was unwise. He strongly ob- jected to the fact that the project was not a part of the Capital Improvement Budget, the process of which was just completed, or the normal budget. The Council knew two months ago that the City would have encumbrances of $500,000 to $750,006 per year, which was . a tremendous amount of -honey, which staff should have incor- porated jr,eo the analysis during the budget process. Staff should have pointed out that the Council was facing those amounts per year for the next 20 years if the build out were pursued. The Council must face the structural costs, but he wished the City reserves were taken down to do so. The Council did not like to take the City's reserves because it meant less money to spend en something else. Dollars were dollars, and he believed it was bet- ter to face them new .rather than letting someone -else face them in five or ten years. Mayor Bechtel said _she believed -the City's reserves were pru- dent--i n the range of ten to fifteen percent -andt those were needed for emergency issues. The Council made major .policy decis- sions when it came to funding a participation in a Utility proj- ect, and she hated long -tern financing as much as anyone. She believed the structural -repairs° to City Hall were essential, and that the proposed -alternative eras .the best one Presented. Counci lmelnber Klein cor+mefted that he did not believe it would be appropriate to use the City's last -dollar to do the repairs, but 1 that 1ooe teriii i ifidI'Ciny should be u_sed on major projects with a benefit over a long period of time, which category the proposed project fit. There was a justification for having people iri the future pay for something they would enjoy as well as those who en- joyed it now. He believed depleting the City's resources so as to purportedly. save interest on the money would not be a wise policy to follow. Councilmember Levy asked for clarification that the City's operat- ing reserve was about $3,000,000. Director of Budget and Resource Management Larry Moore responded that there were two reserves_ generally considered unrestricted -- the reserve for general contingency, which was approximately $3.5 million; and the second reserve of about $3.4 million. Councilmember Levy clarified that the total reserves totaled ap- proximately $6,000,000. Mr. Moore said the total reserves were in excess of that, but clarified that the City was in the process of closing the books, and that later in the month the Council would get the information in terms of the exact year end reserves for the 1982-83 fiscal year, which would be in the range of $6,000,000 to $6,500,000. Councilmember Levy asked about the General Funds budget. Mr. Moore said the General Fund budget for the 1963-84 fiscal year was approximately $34 rai l l iorn. Councilmember Levy clarified that the total $6,000,000 was about - 1U percent of the General Funds. Mr..Moore said that was correct if the money for the reserve for capital projects, as well as the reserve for general contingency, were included. Councilmember Levy said he estimated that the reserve for capital projects was the reserve that should have been looked to and taken down. That would have left a 10 percent operating reserve which would be the envy of most jurisdictions. Although the reserves for capital projects would not pay for the total structural im- provements, hQ believed it should have been considered for partial funding of thy project. Mayor Bechtel asked pow Much of the reserves for capital projects were already earmarked. Mr. Moore said the reserves were not allocated to any particular project, but as Council made additional appropriations during the Bourse - of the fiscal year, that was the source used. Councilraember Eyerly said the recommendation was foe the nonprofit corporation to issue tax exempt certificates of participation, and asked if the City cou 1 d buy. them back after a certain number of years rather than letting them run, similarly to_ what Could be en- acted on bonds. Ken Jones of Jones, Ha 1 l , Hi i 1 & White, the City's bond counsel said_the mechanism was a long-term lease on which the City of Palo Alto was obligates to pay the rent. The,nechanism was lease/pur- .chase, and. it . was possible toe i:€iclude provisions --although not universal- whereby the -City could move in and exercise its op .ion to purchase at any time during the period of the lease And buy out the rights of the nonprofit corporation for cash so that the lease payments would terrlinate. Whatever capital was reelainirlg unpaid at that point 'would be paid off.- Councilmember Eyerly believed i t .would be wise for the Council to accept the _-financing Amethod, and that- consi"de-r'ation be given to 3 6 6 2 8/01/83, the -City's option rights. He expected.there might he a difi'e_rence in the costs to the City if they could be bought back in five years, and that parameters might be set after they received a re- port from staff. Mr. Jones said his comments to date were in the legal area only, Councilmember Eyerly's question got into the financial area. He believed there would normally be a need for "call protection" in order to protect the rates. Councilmember Eyerly believed that the motion might be passed in substance, subject to more input from staff as to what parameters might be needed. If not too expensive, he wanted to see included the option to buy back the certificates if the City was in the financial position to do so. He did not agree with Councilmember Levy that the City was in the position to pay for the project out- riyht, althouyh the profits from utilities might be goad in a few years and money might be available. He believed the option should be pursued before locking in the City. Mayor Bechtel clarified that the motion did preserve that option. Mr. White believed tonight's motion was directed solely to the general question of method. Mayor Bechtel clarified that there was nothing in the motion to restrict or limit the Council from the options mentioned by Coun- cilmember Eyerly'. City Attorney Diane Lee said the option was not precluded in the motion, and that the documents could be drawn in that manner if that was the Council's desire. Vice Mayor Witherspoon said she agreed that it might be nice to hay e mechanism to buy the rights back, but she did not want it to affect the saleability. She assumed the bonds would be pur- chased by investors, and if the City could turn around and buy them back in a few years, it might reduce their marketability. She believed there were others mechanisms for accomplishing the same end, steth as a self -amortizing fund, that would pay the lease payments over a period of time. Councilmember cohb said another reason for not drawing down -the reserves for capital projects was because the City still faced some major school site issues and needed every bit of flexibility possible. He believed a structure with value and use long into the. future was an entirely appropriate item for long-term financ- ing. AMENDMENT PASSED unanimously, Levy net participating." MOTION PASSED unanimously, Levy not participating.° MOTION TO RECONSIDER BUILD OUT PORTION: Councilmember Klein for the Finance and Public Works Committee moved that the City Council reconsider the build out portion of the project and delete it from the Civic Center Structural Repairs: ---- Councilmember Eyerly asked for -:.clarification, in terms eof the staff build out numbers,' from when the building was constructed up to now. Budget ana Operations Analyst Bob Woods said he was unable to pro- vide the information _back that far, but had the projectiorls origi- nally made and submitted to .thee Council when.the issue was first pres!nted, In May of 1981, staff made a survey of needs and pro- jected that approximately 4b bodies would need accommodations Me commented that adding a h if-time person represented an entire body that needed space. Since that time, the City approached that number give or take a couple of peo'p1 :. 3 6 6 3 8/01/83 Councilmember Eyerly clarified that the build out since 1981 w(+s basically close to 46, end to a great degree occurred in the Police Uepartment and Utilities. Mr. Woods said yes. Councilmember Eyerly clarified that the restructuring necessitated installing another elevator and completion of the fourth floor to provide movability as the building was restructured. He asked how many administrative people could be housed sensably on the fourth floor, and how many people could be cared for in terms of desks 'and facilities on the mezzanine and above the police area. Mr. Woods sa :d generally speaking, the numbers represented a gross planning estimate of about 200 square feet per person, which in- cluded all support areas, hallways, etc. The fourth floor con- tained about 5,700 usable square feet, and somewhere in the neigh- borhood of 18 to 19 people. The mezzanine contained about 2,200 square feet and would accommodate about 10 people. The police area contained about 8,7UU square feet and could accommodate about 43 people. Councilmember Eyerly said the fourth floor and mezzanine would ac- commodate about 28 people, which did not meet the existing crowded conditions for about 18 people, and the extra police area might provide about 30 extra slots. He said there were a lot of un- filled staff slots, and he asked if someone currently used what used to be the Assistant to the City Manager's desk. Assistant City Manager ,:une Fleming said that during the budget process, the former Assistant to the City Manager position was re- classified to Executive Assistant. That person would occupy the office Mr. McNeely formerly occupied, and the position was filled. Councilmember Eyerly asked if an area was held fora person when a position was not reclassified and a vacancy existed in a staff position. Ms. Fleming said usually the position was not vacant for such a period of time to hold the spot. if for some reason, a position was held and not filled, someone else would be put there and moved out of a hallway or somewhere where it was crowded. Councilmember Eyerly said from being around City Hall he saw the need for space and the crowded conditions particularly in Utili- ties and the Police Department. The crime enforcement division was located on Level A, and used part of the open area designated fur training or part of the cafeteria. .The building was crowded, and not because employees were frivolously added. Particularly in Utilities and the Police Department, the people build out was re- quired if the service levels desired by the community were to be provided. He long believed that the City's -most: valuable asset was its employees, and 'if the employees worked in crowded condi- tions and were not pe vided for: properly, the desire to work and fi ll empty positions sometimes went begging. The C i; y ;pad a high demand for servile levels, and he believed staff did°a ..fine job. Jo continue to provide thate services level,. it was important to care for the employees. It was unrealistic to say the space was not needed, and he did not know why some of -the Counci lmembers changed --their minds, although,: it was, blamed on the financing method and that it should stand in line in the, capital improve= tents. He believed ithad become a political confrontation due to the full page ad runAaysMras Rosenbaum, and his feelings't.hay there should _never be growth in City Hall in terms of an elevator or_ extra spud. Councllmember •Eyerly believed it .ties unrealistic to respond to the input from someone in the community who- was not realistic about what was needed to provide e services mentioned. He hoped the Council would realize that A:project` like the one proposed did not have to be .pot in the capital . improvements, was entirely proper for bonding, and if the money were to be taken out 3 6 6 4 8/01/83 of capital improvements, he believed the proposed pi'uje .'t had d hiyher priority than any more open space purchases or any more capital improvement projects which benefited -the residents of the City particularly. He asked the Council to reflect on what was done for the residents of the community in the past few years --the amount of ground picked up, and the money put into parks, etc. When compared to other cities, Palo Alto provided a level of ser- ✓ ice in those amenities way above and .beyond. He urged that Coun- cil go ahead with the financing plan and provide moneys for the build out as suyyested for City Hall and to not reconsider and chanye the course. Mayor Bechtel said that when She toured the building, she under- stood that a portion of the mezzanine was already developed and about eight employees presently worked there. The remainder of the mezzanine, although not completed, was used for storage. She understood from the F&PW Committee minutes that there was a plan and need for additional storage, particularly for some of the Utilities Department. Even though the mezzanine was not com- pleted, it was not as if that space was not available for stor- age. Heal Property Administrator Jean Diaz said that was true. It -had two small limited areas that were already built out, which had been used since the buildiny was constructed --the current organiz- ation development staff area and the old employees lounge area was one, and the other area was immediately adjacent to it and was used for storaye. Not much more could be done in that area -there were no windows and staff could not be put there. It war current- ly used for lockers for meter readers and some storage. The other areas on the mezzanine were not asa ile at all unless significant structural work was done --there were no doorways, and in order to {make the areas usable, the walls would have to be broken and a floor put in. It currently only contei nog structural steel mem- bers, and could not even be:used for storage without considerable effort. Vice Mayor Witherspoon said Councilmember Fyerly expressed some of her concerns. It was an opportunity to go ahead with two projects under the Same financing umbrella, and if staff found a way for the City to pay off the obligations early and seve interest, that would be appropriate, although_ she was not hopeful that it would occur. She was 'concerned that the Council said the public demanded services, yet -the public did not want the City to house the necessary people. The Council must resolve that dichotomy, and if; it did not vote to go ahead with part of the build out, it mi gY : be possible to re-examine which areas were most cost effec- tive for build out, but the City Manager should be asked, to iden t ify those staff members still "unhoused," to develop a policy on continuing those programs. Otherwise, staff could not be expected to continue indefinitely in the halls and closets. Councilmember Fazzino respected the arguments of Vice Mayor Witherspoon and. Councilmember Ey+erly, and admitted that after six months of discussion on the issue, he was not convinced that there was a major space problem in City Hall. Six months ago, he sup- ported the greater build out plan not to provide more space for City staff, but because he believed there was adequate 'space at City Hall that could be leased to .private users which might even- tually bring additional revenue to the City. Even though that proposal was long by the wayside, it did not change his views with respect to the perceived needs by staff about space. Over the past Few years, most of the yrowth in City staff occurred -in the Utilities --area, and most of those people could be accommodated at other sites. He did not believe that everyone- nOw in City Hall needed. to be in City hall. He associated his comments with those made by Councilmember Cobb at _.the F&PW Committee, and believed staff should take a careful look at farming out a number of the people in City Hall to existing City`'`acilities around the commu- n ity. it Would- be -a more decentralized and effective presence 3 6 6 5 8/01/83 1 Or City st a i i , and the City Manager should ask himself whether the people were absolui.ely necessary at 250 Hamilton 'Avenue. He believed.that only a few people would fit on that list. That was not intended as a value. judgment, but rather that many of the people could do their jobs best at other existing City facilities without a great cost. If- one walked around City Hall, one would find that there was still poor -utilization of space --some people had large offices, and others sat in an area with three -or four desks. He believed that much more effective utilization of -space in City Hall could be achieved if some design changes could occur. He could not support the proposal that additional space was needed at City Hall and supported the F&PW Committee recommendation. Councilmember Levy said he long believed that the added office space projected for City Hall was.unneeded and t.o expensive. He thanked his colleagues on the F&PW Committee who, after many months of wrestling with both the long and sheet term budgetary needs of the City also came to that conclusion. Tonight the Council wOuld approve a substantial expenditure for structural work on City Hall te include substantial new office space --5,700 square feet --and the third elevator. The -cost of the added office space woul€3 be $300,000 per year for .20 years, which money could be better spent for school site acquisition, street and sidewalk maintenance,' the development of Greer or Terman Park, Downtown Park North, the maintenance and repair of the City's storm drains, and just general maintenance of the City's infrastructure which often seemed to develop unexpected but absolutely necessary needs. He believed Councilmember Klein was correct that the additional office space should stand in line -behind other more pressing needs. It was said that the City would save a substantial amount of money by building the office space now in conjunction with the structural build out, but that -savings was relatively small -- $100,000 or less in a total cost of several million The cost for the office space was high in Palo Alto's market today --over $200 per square foot for the 12,000 square feet to be built. Office space was available in many downtown locations at a cost of that or less not only for the office space...bet for the land cost and parking. He agreed with.Councilmember razzino that City Hell was nut overcrowded. He did not want to slough off the fact that 500 or more signatures on petitions, coiupons,._etc., .c4me before the Council from members of the community. That was an unprecedented matter --the issue was not zoning, did net relate to the use of recreational land, did not concern traffic, parking, open space, or someone `s job, and yet 500 or more Palo Al tans 'toek the time and stamps to write and say that the item should not receive the highest priority among the many needs of the community at the present time, Councilmember Cobb. said that as a result of the required struc- tural repairs, the City would gain the expanded fourth -floor. For :`zany yeare he managed space in .an industrial plant of over 400 people, and creative space management dad some excellent things. When discussions began regarding the build out, he believed the City should consider a. more extensive b;.tild. out if it were to be used for leasing spate to._ the private sector at a net profit to the - City. Subsequent review disabused that notion, and he never supported a bv;i'Q out for the purpose of expanding staff space tie was not :or, iced that addl ti ona l staff space wts needed, but to the extent. niece -scary, he bel;eyed careful, consideration should be given to the use of a vacant school site, particularly the Cubberlev: site, which appro ch would enable the use of relatively i.ne;pensive slaace, certainly less expensive than what the" build out would bey; it would_bring City .government into, the south: part of town; and would help o . preserve a key school site in. public. use. He- agreed with Councilmembers Klein and ..levy that much_ more important _capital needs existed in the community about which the community :.was more concerned, such as school site purchases, El Camino-Hea_l beautification, the completion of Greer Park, etc. He. hoped his- colleagues would join in -.opposition to the build out. 3 6:6 6 8/01/83 I� l Fletcher �,. r.- L J 4 4 7 J and _ Couec1 meiiiber' i ietche tooreii the bui Wilily avid saw the ove cr-uwded carol Liuns fug` many of the Ci ey's eiiipluyees. Tlie service levels could not be maintained, and staff members could not be retained without reasonable working conditions. In the private sector, mane industries expanded their faei l ities because modern computers and data processing were more prevalent and took up more space. More space was needed per person- than was needed in the past, and she doubted that the crowded conditions in City Hall --where em- ployees had to sit in draughty hallways or doubled and tripled up in, offices with file cabinets and storage items --also existed in the private industry. She was not surprised that an ad which in- dicated that the City proposed to spend money to expand facilities at City Hall attracted a lot of responses since the ad was written in such a way as to present the proposal from one side only. Ad- ditionally, it was ecebenefit for the City to have adequate work space for its employees, but the benefit was intangible in terms of the citizens. Politicians did not like to spend money on build outs such as the one proposed because money for added park space, libraries, community centers was seen as accomplishments that the citizens appreciates because they could see it. The need for ad- ditional employee space was as great, but more difficult and in- tangible a concept to get across. She concurred with Councilmem- bers Eyerly and Witherspoon who believed that in order to maintain the service levels in Palo Alto, decent working space must be pro- vided. Palo Alto was far superior to other cities and the County when it came to the way in which staff responded to inquiries and concerns of the citizens, and that could not continue without good staff. Mayor Bechtel concurred with the comments made on both sides of the issue acid agreed that adequate space needed to be provided for City employees. However, she believed the _fourth: floor build out required by the structural repair work, and the eorrpl et.i on of the third elevator would save considerable staff time, She did not believe the space on the mezzanine was used as efficiently as it could be, but disagreed with some of her colleagues who contended that the building was not crowded. It was crowded.and it would be d mistake to try and move employees to sites as far away as Cubber-ley_ because there would be problems of efficiency. The third and fifth floors were extremely crowded, and the seventh floor was relatively sparce The City's total funding require- ments could not justify the build out at the present time and she would support the motion to only do the structural repairs. Councilmember Henzel associated herself with the remarks of Mayor Bechtel and Councilmember Klein. The need for additional space in City Hall was clear, but some Could be achieved by reorganizing existing space, and ----some would ultimately be gained by the addi- tion of the fourth floor upon completion of the structural work. When looking at the various fdndiny requirements of the City over the next few years, she concurred that it was best to ncit proceed with the City He l l build out at the present time. It was not so much a matter of whether the -build out should occur as when, and although doing it now might save $IUU,UUU, the City would have to spend a lot of money to sa e that 44oney, and she believed it, was better to do it One') more "leisurely". basis when the City vas. more clear about its financial picture. NOTION. TO RECONSIDER AND DELETE BUILD OUT PORTION PASSED by vote of 6-3, Fletcher, Eyerly, Witherspoon voting 'ne.. NOTION: Coarsi imember' Klein for the Finance : and P ibt: t Works Committee -moved that the method of financing be referendable. Counci lmember Kle1tr said based on the staff report and the timing necessary for the Work to commence, he .intended to not -support the motion. If that motion failed, he would make a motion to Make the method of financing the City Hall repairs nonreferendable. 3 6 6 .7 8/01/83 Mayor Becht e 1 c 1 a r i f 1 ed that the rationale was the urgency gency ♦0 com- plete the project and the liabilities that might be upon late City if some damage occurred to the building or individuals:as a result :of structural problems, and that the Council should move expedi- tiously to complete the necessary repairs. Councilmember Klein said if the matter were-referendable there would be a built-in delay of 45 days, whereas making it nonrefer- endable,• the City could -move forward tonight. Councilmember Levy asked what delay would come about by making the financing method referendable. City Attorney Diane Lee said the first reading of an ordinance could be tonight, the 30 days ran from second reading which would be two weeks from tonight, and .the ordinance would become effec- tive on the 31st day after second reading for a total of 45 days. If the ordinance was passed to be-referendable, there would be a first reading, second reading, and a 31 -day period before the or- dinance beeare effective. Mayor Bechtel. said staff recommended that there not be an ordi- nance and there would not bea first or second -reading. Councilmember Levy said he supported making the financing method referendable. He was sensitive to the need to accomplish the structural repairs as expeditiously as possible, but believed the City could move ahead on the preliminary planning and authorize whatever initial expenses might be required out of City funds while awaiting the possibility of referendum. He did not expect the matter to be referended because no one seemed to be opposed, but when expending the amount of money required for the project, he believes; the door should be left open so that the public could challenge `the Council's actions if they. saw fit to do so. .He believed the necessary preliminary wort: could still be done, and that the project could move. ahead on an expeditious schedule. MOTION. FAILED by a vote of 1-8, Levy voting "aye." MOTION: Councilmember Klein moved, seconded by Cobb, that Coun- cil authorize the forwation of a nonprofit corporation in accord- ance with the Artt,cles of Incorporation attached to C$R:441:3; and that there be a fi've member board of di rector* to serve staggered terms, appointed by lice Council upon recommendation by the Mayor. ARTI ,LES OF INCORPORATION PALO ALTO PUBLIC IMPROVEMENT CORPORATION bob Moss, 401U Orme, suggested that there be a nine member board with each Councilmember nominating an -individual. ,He hoped the people selected would be knowledgeable and experienced in the com- munity. He believed there should he broad participation, and a nine member board would provide three staggered terms with one third of the board being appointed periodically. Vice Mayor Witherspoon asked how the improvement association or board that oversaw, the bonds for the golf oourte- was appointed. Councilr;ei ber Fazziro said City staff was asked to make'a recome. snendation which turned out to, be five prominent members of the area.'S golf clubs. Vice Mayor Witherspoon asked if the board overseeing the particu- lar lease/purchase arrangen ent would be able to undertake _ future lease/ purt:hose projects. City Attorney U a.ne _ Lee said yes as ;approved by the City Counci l . Assistant City Manager June Fleming said the City had experience with a five member . board and it was easier for smaller numbers of people to reach an agreement. MOTION PASSED unanimously. MOTION: Councilmember Klein moved for the Finance. and Public Works Committee to direct staff to negotiate a legal ssrvice con- tract with Jones, Hall, Hill. and White as bond counsel related to the financing; to proceed with the negotiations with Security Pacific/Merrill Lynch for financial consultant/underwriter ser- vices and to negotiate with Rauscher Pierce Refsnes in the event do agreement is not reached with security Pacific/Merri l l Lynch; and to direct and authorize staff and the selected legal counsel and financial consultant to implement the selected financing. Any financial, leasing documents, etc., are to be returned to Council for its approval. MOTION PASSED unanimously. Ms. Fleming said staff understood Council's actions tonight and would proceed with all of the necessary documentation to take care of the structural repairs of the facility. Staff strongly be- lieved there were things to be taken care of immediately and would return expeditiously with al l the necessary documents for the August ?2 agenda. Staff would not proceed further with any items related to build out. Councilmember Levy asked if the proper' phrase for the financing was a "purchase lease back" or a "lease lease back." Mr. Jones responded that it was a "lease lease back." MOTION: Councilmember Eyarly moved, seconded by Witherspoon, that staff prepare a capital improvement program project for the build out for inclusion in the next CIP. Mayor Bechtel said she would oppose the motion because she wanted to see what happened with the structural repairs and its effect on moving staff around. She urged staff to be as creative as. pos- sibie in using the space available. Councilmember Levy said the CIP was staff's prerogative. and Coun- cil only said that the build out should take place in the priority listing of capital=items to cone befcre the Council. Staff should place the item in whatever priority they believed was appropriate for Council consideration next year. Councilmember Fletcher agreed with Councilmember Levy. Councilmember Renzel supported Mayor Bechtel's position and to some extent the comments of Ccuncilmembers Levy and Fletcher. She believed Council must remember that staff paid attention to the vote taken tonight with respect to build out, and she did not ex-. -pect that staff_: would :willingly want to put their heads on the t i n by recommending it as a capital improvement program project. She. would entourage staff to come.forward with a five year program or whatever time fraree was appropriate with Various spaces avail- able. She concurred with, Mayor Bechtel that she _would rather set hoer the space was uti i ized 'after the fourth floor build -out-.: NOTION FAILSI by a vote of 2-1, Eyerly, -Witherspoon votiwg. Mayor Bechtel thanked ,-a11 the. staff members and consultants for being prese_n-t. ITEM #6, RESULUT1OI ACCEPTING DEED TO LEE PROPERTY Cvrrrncilmerrber Klein asked if the City was to get possession of the property now rather than in 1996. 3--6 6 9 8/01/83 City Attorney Diane Lee said no. The -City was being quitclaimed any Interest that holders under a later recorded deed might have gotten in some of the property originally conveyed to_the City as a future interest. Essentially, the City- was getting what it already got, but the reason the City was getting it again in a quitclaim deed was because there were subsequent deeds which clouded the title. In order to uncloud the title the title com- pony recommended that the City -accept the -quitclaim deed. MOTION: Councilmember Klein moved, seconded by Renzel, to ac- cept the quitclaim deed. RESOLUTION 6165 entitled *RESOLUTION OF THE COUNCIL OF IHL CITY OF PALO ALTO ACCEPTING A DIE& CONVEYANCE BY THE LEE-PAULSEN PARTNERSHIP TO THE CITY OF PALO ALTO OF APPROXIMATELY 7.7 ACRES ADJOINING FOOTHILLS PARK" CUUNCILMEMBEI( LEVY LEFT MEETING AT 12:15 a.m. MOTION PASSED unanimously, Levy absent. ITEM #7, REQUEST OF CUUNCILMEMBERS WITHERSPOON AND COBB E REBUTTAL AkGII E iI RE MEA o env er a o Vice Mayor Witherspoon deferred to Councilmember Cobb for some minor grammatical corrections to the proposed draft. Councilmember Cobb said the first sentence of the proposed draft should read, "Awarding a franchise for Cable TV is a very appro- priate function for representative government." The second sen- tence of the proposed draft should read, "Far from excluding pub- lic participation in the decision of a complex issue, having the Council rather than the electorate award the franchise, would allow the maximum of public input and debate in an impartial and non-competitive uublic meeting -atmosphere rather than in the tur- moil of a partisan political campaign." The second sentence of the second paragraph should read as follows: "In the case of Cable fV, the issue of whether to grant d franchise is appr•opri- atel•y the Council's, which already has the right..." The remain- der of the second paragraph should read, "The public always has the right to referend such action, and has occasionally _done so by inexpensive grass' riots campaigns. Accordingly, putting such a matter to a vote should be the public's -option., -not a mandated ob- ligation.' The last paragraph, second sentence, should read, "Therefore, submitting a non -controversial issue at great expense to the voters, where all the losing bidders automatically have the opportunity to overthrow the decision, is not in the pbbiic inter est." He said the changes reduced the word count from 247 to 241, and he believed the argument read more clearly than before. Mayor Bechtel said that, because of the extra space, she suggested adding: "The Council unanimously supports Measure E." She asked that the word count be checked to determine if sufficient space existed. MOTION; Vice Mayor Witherspoon moved, seconded by Cobb, adopt the rebuttal argument opposed to Measure E as amended. MOTION MASSED unanimously, Levy absent. MOTION: . Mayor Bechtel moved, seconded by Cobb, that the City Attorney be directed to draft an ordinance that mould require an ordinance to issue a franchise for cable television. MOTION PASSED unanimously, Levy absent. _City Clerk Ann Tanner said the argument _Just approved would be signed Palo Alto City Council by Mayor Bechtel , and if additional 3 6 7 0 --U/01/83 C i 1ina i�urec were f� o be added, t h ^-h(� p 1 _-------- ._ City .+ .a �,. v were w �. \r v 4i V i3 is , I i s .l j i `% i7 i C received f 1 t a e Clerk's office by August. 2. ITEM #8 RE UEST OF MAYOR BECHTEL RE RESOLUTION OF APPRECIATION MOTION: Mayor Bechtel moved, seconded by Witherspoon, that the City Clerk be directed to prepare a resolution recognizing the outstanding achievements of the Palc Alto Pacesetters. MOTION PAUSED unanimously, Levy absent. ITEM #Y CANCELLATION OF AUGUST 8, 1983 COUNCIL MEETING MOTION: Mayor Bechtel moved, seconded by Cobb, to cancel the City Council meeting of August 8, 1983. MOTION PASSED unanimously, Lefy absent. ADJOURNMENT Council adjourned at 12:20 a.m. ATTEST: APPROVED: 3 6 7 1 8/01/83