HomeMy WebLinkAbout1981-07-13 City Council Summary MinutesCITY
COUEICI L
Manures
Regular. Meeting
Monday, duly 13, 1981
ITEM
Update on Medfiy Situation
Oral Communications
Approval of Minutes
Consent Calendar
AB 1113 - Annexation of Unincorporated Areas
Painting of Exterior of Civic Center
San Francisquito Creek Erosion Control Project
81-84 - Agreement
Agenda Changes, Additions and Deletions
Condominium Conversion Ordinance
Review of Proposed Sexual Orientation Ordinance
for Ballot
CITY
PALO
ALTO
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PUBLIC HEARING: Appeal of Paul J. Kahn, Robert J. 1 0 5 3
Debs and David H. Jeong from the decision of the
Architectural Review Board re California Avenue/
Park Boulevard Project
Adjournment to July 20, 1981 1 0.6 7:
Regular Meeting
Monday, July 13, 1981
The City Council of the City of Palo Alto met on this date in
the Council Chambers at City Hall, 250 Hamilton Avenue, at 7:30
p.m.
PRESENT: Bechtel, Eyerly, Fazzino, Fletcher, Hender son,
Klein, Levy, Renzel, Witherspoon
Mayor Henderson announced that the Council had met at 7:00 p.m.
in a special executive session regarding personnel.
Mayor Henderson introduced the new Assistant Planning Director,
Bruce Freeland.
Mayor Henderson said that the aerial spraying of Malathion would
take place that night starting at Page Mi 1) Road and going
south.
Mayor Henderson asked that Assistant City Manager June Fleming
and Acting City Attorney Don Maynor report on the current status
of the Medfly situation.
Ms. Fleming updated the Council regarding the stripping efforts.
She said that staff had received 500 calls for assistance which
had not been responded to. She said staff would continue to
respond to requests for assistance through Wednesday to accommo-
date residents still in the process of stripping and in need of
access to the dump. The dump would remain open until 8:30 p.rn.
through Wednesday. There were about 140 volunteers and 130 City
employees working over the weekend and that the City would be
supplementing the volunteers with City employees from all depart-
ments t6 assist with the stripping through Wednesday. Ms.
Fleming also said the City was attempting to work with the
Telephone Company so.that -lines would be available to accommodate
people calling in requesting information about spraying
Mr. Maynor said that Superior Court Justice, Bruce Allen ruled -
that he fou.ard no danger in aerial spraying and would not issue an
injunct ,eo enjoining the State from spraying. He said he had
heard, second hand, that, a writ had been sought from the
California Supreme Court with no success. He said "the attorneys
would be regrouping tomorrow to see"_ if there was anything else
they could do. Mr. Maynor said substantial testimony was given
in Superior Court all day, including testimony from a Stanford
professor regarding the potential dangers of Malathion, but to no
avail. Mr. Maynor said that the municipal 'ordinand_was still in
effect, and ,that it was still a misdemeanor violation if fruit
and vegetables were not stripped by 5:00 p.m. today,
Mayor Henderson commended :,June Fleming and Don Maynor and felt
they had done 0 remarkable job.
Counci iiember Fazzino said that he and Vice Mayor Fletcher had
gone to Sacramento to make a plea that the aerial spraying not
take .place,. but that a decision had . already beer, Made by the_ tine
they arrived. He commended June Fleming and Jeff Paulsen for
their outstanding work." ._
1
ORAL COMMUNICATIONS
1. David Blumenthal, Willow Road, spoke regarding the damage and
repair clause in lifetime leases being offered. Oak Creek
residents.. He read a portion of a letter from Scott Carey,
dated October 16, 1980, which related to continued.occdpancy
for as long as desired, with the option to cancel on 30 days'
notice. It also contained a sentence which dealt with the
provision that the owner could terminate the lease because of
damages or needed repairs.
2. Dennis Ferrachio, 275 Olive Street, spoke re the problem of
flooding at the end of Olive Street. He said he would like
to have this problem handled. He said his furnace is located
under his house and when the water comes up it starts bub-
bling and flames comes out of the wall. He said Mr. Glenn
Purcell had attempted to see city officials and had not been
able to set up an appointment. He was asking, for the safety
of his family, that this problem be handled.
3 Glenn Purcell, 1671 Castro Avenue, said he had been a Palo
Alto resident since 1958. He said he was one of . the people
who had signed a petition which Council had in their packet
regarding ten homes and the warehouse which have been
affected by the flood. He thought the safety of the people
in the homes was important He stated the people who signed
the petition feel a need to seek the help of the City to
solve a problem. All they were asking was that the Building
Department complete the work which was began last January.
It appears, under present City policy, than if the Building
Department chooses to continue not to complete the wade,
there would continue to be no accountability or responsi-
bility. This attitude makes the people feel insecure and
apprehensive as to, whether this work is ever going to be
done. He said none, of them want more damage tc occur.
`,He asked that Council direct the Building Department to
complete the work begun last January.
Mayor Henderson said the Council :.needed to have full information
on the matter and he asked that staff give a full report to
Council at the next meeting.
4. Nathan Kraft, 245 Olive Street, reported that the drainage
ditch and the drain the City opened in back of his building
were gathering weeds and.: mud and he would appreciate some-
thing being done about this situation.
5. Maria Elena Spal lets, 295 Olive Street, said she was also
concerned about the water damage and the fire hazard. She
said she had complained to the Railroad Company and the City
on numerous occasions and thet, nothing had been done.
MINUTES OF MAY 18, 1981
Mayor Henderson asked if there were any corrections to the
minutes of May 18, 1981 in addition to the following ,corrections
submitted by Vice -Mayor Ellen Fletcher:
Page 835, second tee the last paragraph, change *MOTION PASSED by
a vote of 9-0, with Fletcher abstaining," to *MOTION PASSED by a
vote. of 8-0, with Fletcher abstaining,"
Councilmember Fazzino asked that the minutes be corrected on -Page
_838,_ top paragraph,, ``.three lines from the bottoi.:.- Sentence should
read "He felt the horse ,should• be- built- within the variance..."
Mayor Henderson also asked th3i,t, the vote on the Motion to grant
the_ variance -(page 838) be checked. •
- C Counc i lmernber= Fazz i no - agreed
this should be checked since he voted against the variance and.
the vote did not show this.
Councilmember, Renzel said page 837, fourth paragraph, next to the
last sentence, should read, "She felt that the tree .provided
screening from the Lockheed Building and was a unique and major
asset."
MOTION: Vice Mayo! Fletcher moved, seconded by Fazzino, to
approve May 18,1981 minutes as corrected.
MOTION PASSED unanimously.
CONSENTCALENDAR
Councilmember Klein removed item #4, Project Mobility Taxicab
Service, 1981--82, Award of Renegotiated Contracts.
MOTION: Councilmember Levy moved, seconded by Fazzino, to
approve Consent Calendar items.
Refer%al Items
None
Action Items
A8 1113 - ANNEXATION OF UNINCORPORATED AREAS (CMR:357:1)
Staff recommends Council oppose AB 1113 and that the Mayor be
authorized to sign a letter of opposition to be sent to Senator
Milton Marks, Chairman of the Senate Local Government Committee
AB 1113 is scheduled to be heard in the Senate Local Government
Committee sometime in August.
PAINTING OF EXTERIOR OF CIVII 11TER (CMR :3413: I )
Staff recommends that Council award the contract to Sanders and
Sons, Inc. and authorize the Mayor to execute the contract.
AWARD OF CONTRACT - Sanders .& Sons, Inc.
SAN FRANCIS VI TO .CREEK EROSION CONTROL PROJECT 8I--84 AGREEMENT
,Staff recommends:
1. The Council authorize: the Mayor to execute the attached
Agreement with the Santa Clara Valley Water Distrl>ct for
$150,500 `, to be shared equally between the jurisdictions for
coInstruction of embankmelt; stabi1izatiOn along: San
2.
F.rancisqul,to' Creek.
Staff be authorized to execute Change orders
of up to $9,750.
the agreement
AGREEMENT
Cost Sharin9 Agreement with the Santa Clara
ValleY1i ter District
MOTION PASSED to approve Consent Calendar Action Items a amended
un.an1mously,
AGE DACHANGES, "ADDIrIDNS MD. DELETIONS'
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Assistant City Manager, .June Fleming, said that Item 4, Project
Mobility Taxicab Service - 1981-82, would become Item 8A.
1
L
CONDOMINIUM CONVERSION ORDINANCE
Mayor Henderson said he agreed with the City Attorney and members
of the Planning Department that the proposed ordinance would be
easy to meet and may result in a rash of conversions. He also
agreed with the arguite-nt of. the -Palo Alto Housing Corporation
that both the two-thirds' vote and a significant contribution to
low/moderate income rental housing should be : cond i ti arcs for
conversion. - However, he felt the proposed equivalent. number -of
rental. units, in other words the 100. percent equivalent
contribution, was- too restrictive. --He said the Ferne Court
s-ituetlon was unusual -with its equal number of units on -either
-side of the street, He suggested that the requirements for
conversion be a two-thirds' vote of all units, the -long-term
lease specifications, and the requirement to'provide low/moderate
income rental units :equivalent Ito 50 percent of the number of
units to be converted. This:last requirement:would result in two
possibilities --the owner of a building with 100 --units, who wishes
to convert, would have to provide, within that building, 33 units_
ef low/moderate income rental units to go'. with 67 condominium
units or, the owner could convert all 100 units.in the building
and provide 50 units of low/moderate income: rental units off -
site. With these kinds of numbers he felt conversions would be
possible, but hardly _commonplace. There might be some
opportunity for existing tenants to achieve home ownership or
obtain :.long-term rentals -with rent controls while, at the same
time, the community would gain what it needs most, additional
low/moderate income rental units.
Councilmcmber Witherspoon asked if the section 21.40.020,1 (d)i
of the ordinance which states "any contiguous or non-contiguous
lot, parcels or areas owned in common by the owners of .e separ-
ately owned lot, parcels or areas, etc. etc.... meant tnat an
owner with several rental properties, not necessarily contiguous,
who wishes to sell them all, would fall under this ordinance?
Assistant City Attorney Sandy Sloan responded it would not
include that. She stated this definition was verbatim from the
California Code, and she felt it was very ambiguous. .• Specifi-
cally what it means is a townhouse situation, and 99 percent of
the time the lots would be contiguous. But it includes the
situationwhere instead of just buying space, the owner would buy
space plus 'a little front or back yard'. Non-contiguous is in
there just to cover situations where there might be a driveway
between two :lots, but it certainly would not include across
town
Vice -Mayor Fletcher asked what the rationale was for excluding
limited equity cooperative house ng.
Ms. Sloan explained the rationale was .that it was controlled by.
the government and has units that are sold below market rates.
Even though the units were no longer rental units, they became
1 eke a BKR unit.
Councilmember Renxel asked if it ' was correct in that the, two-
thirdsvote : provision applied'only to the vote of those units to
be converted. :
Ms, Sloan said that was correct. She thought that if a majority
of the Council voted for Mayor Henderson's suggestion, the
Council should consider combining the two exceptions: i.e.
requiring two-thirds consent, and a below -market - rate
consideration. She said that the ordinance did not address the
issue that if a substantial number of units in the same .building'
were to be given to a below -market -rate contribution that the.
people living in the units get to. vote.
Counci1member Renzel said that normally in, a conversion, she
thought that: State law required that the people occupying the
units be given first right of refusal on the units. She asked if
there were 100 units in one building, whether they be split
50-50, 67-33, how would it be decided which units would be the
below -market units, who could vote and have the right of
purchase,, and what would happen to the people occupying and
renting those particular units?
Ms. Sloan. said she -called the Department of Real Estat.f2 and asked
if under their law, they thought it was feasible to convert half
a • building, or some units in one building. She said their
response was no, that they considered that to be unreasonable,
that all tenants in a building :ghoul d. belong to the same home-
owners' association and that they would not approve such d pro-
posal. She felt the Council should realize that if: the below-
mar k.et-rate units were in one building, then the issue of whether
the tenants in the below -mar ket-r ate units would get to vote and
whether they would get a lifetime lease, was before the them.
Councilmember Renzel felt that what Ms. Sloan was saying was
basically moot because that type of subdivision in a single
bui1ding would not be approved.
Ms. Sloan said that if the Council was interested in Mayor
Henderson's suggestion, it was a problem to be considered. She
said that all of the units would- have to be converted, but it
would be up to the Council to deckle what units would have to
vote for the conversion because the Department of Real Estate had
nothing to do with the voting for conversions.
Mayor Hendee son said that was also true under the Housing
Cor poration' s proposal
Ms. Sloan . said the reason she did not address it in the proposed
ordinance was because it was an either/or situation If the
developer chose to give 50% to the BMR program, the developer,
given the, way the ordinance was written, need not get consent .
But _ if the two were combined, the issue would need to be. faced.
Di recto( of R 1 anni ng, Ken Schreiber, said that the 33% of 'those
units could remain.. in rental or could go into a below-mar ket'rate
for " sale program.
Vice MayOr Fletcher was not clear on What the Department' of Real
Estate " d said and' -Risked, for. .cl"arification_."that' if hal f of ::the
un t:s: were Converted and the other half wer-oY ;fold into a` BMR pro-
graln :or. kept- in rental that. -would not be approved._
Ms. Sloan . said they said it`:was not passible to convert:- hal the
> building, the _ whole "bui ld:fng would- heve"" to be converted. She
,sal d , she sari the 50%, : or ' whatever number MO provision ki rng`
so that the entire building <woutd be -converted and.hal-f the _units'
opld be sold to the Palo Alto -Housing;, _orporati_on:,. they woo"1'd be
the condomi-niumSt owner_, ,end PANG would turn around and_ .011‘t -the
units to below -market -rate families. She said that could be
accomplished. The problem would be what tenants would get to
vote for the conversion --would all the units get to vote, and if
not, would the developer get to choose which units would be in
the BMR program thereby assuring himself which tenants would get
to vote.
Vice Mayor Fletcher asked if that principle would carry over
the 10% contribution which was in the regulations?
Ms. Sloan said yes. She said she thought that was a smaller
number and if two-thirds of the tenants consented, 10% could be
set aside, but would not necessarily be available right away.
They would be available at the end of the lifetime lease.
Vice Mayor Fletcher asked if then they would be sold to the
(lousing Corporation or a similar group?
Ms. Sloan said yes.
Mr. Schreiber said he believed the 10% contribution Vice Mayor
Fletcher was referring to was the BMR program and -if there was a
one-third requirement,' that would supersede the BMR program and
satisfy the program, there would not be a separate 10%.
Ms. Sloan pointed out that there was a difference in those two
exceptions the way they had been written so far. She said the
50% exception required that the BMR units be rental units. The
theory behind that was because rental units'were being removed
from the market. She said the 10% requirement was the carne as
the 101 requirement in the Comprehensive Plan which said they
could be rental units or units which were sold to BMR persons,
Councilmember Levy said that one of the requirements was that the
City be willing and able to accept the BMR units. He asked i f...
a problem arose, i.e. if there were several units scheduled for
conversion and the City was only able to accept the BMR units
from one project, and could not accept from another, or chose not
to accept'from another, would the City run Anto problems in terms
of enforcing the ordinance?
Ms. Sloan said that if the City ran out of money, as long as the
projects were taken in the order in which they were considered,
it would only be a problem if the City acted in bad faith and
turned down acceptance of units one month, and really had the
money, and bought units from another developer at a later date.
Councilmomber Renzel asked, ..in the case where units were provided
off -site, would the BMR ►nature of those units be a requirement of
the subdivision, or could a developer simply :purchase at market
rate units off -site, and offer to sell them to the City at the
price they paid? She asked how the economics of off -site units
were related to, the approval.
Mayor Henderson said the City did not have to pay what the seller
wanted for the units.•. He said the City would not accept it
,unless it was a price which would be workable for the Housing
Corporation to own and operate as -below-market rental units.
Cuuncilmenber Renzel said that if the City was not willing
take the units, then the subdivision would. not qualify.
Ms. Sloan said that was correct.
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Mr. Schreiber pointed that the situation could arise where there -
was a ten -unit apartment, and there was an .obligation for five
units. Someone could acquire five units off -site and then
provide them through the BMR program. Perhaps they might be
purchased and sold at a loss, or perhaps it would be even, but:
they would have to sit within the guidelines of the BMR program.
That way the City's directive to the Housing Corporation would
riot be directly involved in buying units.
bob Moss, 4010 .Orme, said that from his letter of June 22
-regarding Condominium Conversions, and the figures he presented,
it became, quite clear that conversions, even though at Ferne
Court if half the units were sold essentially at cost by the
developer to the Housing Corporation, were extremely lucrative.
He said that depending upon when the project closed and sales
were made, the developer would make between 200 and 500% profit
per year on his invested capital. It was not necessary to bleed
too much for someone who was asked to give an equal number of
units for bet ow -mar ket-housing in a conversion. However, any
conversion or any encouragement of a conversion would end up in a
net reduction of affordable housing in the community. That was
what happened with Ferne Court. He said the City had 32 units of
housing before it was sold in 1979, affordable by persons earning
approximately $15,000. When the 16 converted units were sold,
they would require an income level in excess of $70,000 per year.
He proposed that section 21.40.050(2) the clause, "regardless of
whether a vacancy surplus exists" be stricken and that it be a
clean ordinance which would allow no conversions unless the
vacancy rate exceeded 3%. Further, Mr. Moss said, with regard to
the problem of providing units. He felt the word "provide" was a
very loose term. He asked if that meant "at cost," "free," or
that the City would be allowed to purchase them at market rate
when the conversion price was established. He asked what would
happen if they were offered, and the City was unable •to pick them
up. He suggested an_ additional option, to be included at the end
of Section 21.040.050(2)(a). 'If the City is unable or unwilling
acc Nt isL; - a i cs for rental housing under below -market
program or rental housing acquisition program, the applicant may,
at the City's option, be required to provide newly constructed
housing up to 20% of the number of units 'converted." One of the
falacies of..allowing a converter to oive existing units to the
BMR program was that it didanot provide additional new affordabie
housing. He said this owould provide. the City the: option of
obtaining new housing. The reason he suggested 20% was because
at one time the. City did require 20% in newly -developed units,
and because the _net cost of a conversion to a devol open was -much
less than the cost of building new construction. Therefore, --the
20%.first had precedent, was not ari owner's burden, - and _,was at
the City's opt:len.
Mayor Henderson asked Mr Moss if the 20% would be for sale and
not rer;tal units.
Mr. Moss said that in a 100 -unit conversion, 20 new units would
4e built to be offered to the City. If the City wanted to .use
them for rentals that would be fine; if the City wanted to use
them for' sale ; or ownership, that would be fine. The City would
have complete options and flexibility. Also, he said that would
not tie the City up with having to get financing for the units
provided. He supported including both the units which were
converted and tho$e which: would be rentals if there was a voteon
any such conversion. He suggested at the end of Section 2(B) (i )
adding a section (a), "tenants of units proposed for conversion
to community housing, and tenants of rental units provided under
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Section 21.40.050(2)(a) shall be counted as a single class for
the purpose of obtaining the two-thirds consent." Also, on page
8, next to last paragraph (3)_ at the end, "Alternatively, the
-City may require the applicant eto provide newly constructed
below -market units equal to 20% of the numbere of omits
converted." He hoped that if the Council did accept; the conver -
sion with below -market units, they would accept- the amended
language he proposed.
Sue McPherson, President, Palo Alto Housing Corporation, apolo-
-gized for any misunderstanding in their letter of -July 2. She
said the.Housing Corporation agreed _that units which would be
empty at the time the vote were taken, should be taker out of the
"no" vote, and the letter should have stated that "if two-thirds
of the occupied rental -units to be converted consent to such a
conversion..." She said the Housing Corporation still stood
beside their position that a one for one provision of rental
units be ideal, that is 100% of an equal number or units to be
sold should be provided for BMR rental units, She stressed that
the PARK hoped that the conditions under which this could occur
would include both a two-thirds vote of the units to be
converted, and also the provision of-BMR units equal in number.
Further, _she thought that regarding the extension of leases,,
language should be added to exempt units provided for permanent
low --.moderate income housing from the lifetime lease or the
ten-year lease. She said those units must carry their own weight
financially, and therefore, they should be exempt.
Louis Fein, 1540 Oak Creek Drive, Palo Alto, urged the Council to
disallow condominium conversion as long as the rental vacancy
rate was 3% or less. He felt there should be no exceptions, no
lifetime lease exceptions, no two-thirds consent exceptions. He
agreed that monitoring the consent process to prevent irregulari-
ties was important, but that it would be difficult for the City
to do it without unusually high costs and legal vulnerability.
He agreed that if -the City mandated a lifetime lease, the tenant
protection, then the City would be obligated to monitor and
supervise and enforce the operation of that lease i n satisfaction
with the intent of the riandate, He said that the yak Creek
experience was that the so-called "lifetime lease" terms even
after City approval of the preliminary map, were not determined
to tenant satisfaction. If the Council insisted on a two-thirds
consent provision and the lifetime lease provision, _.they must
conduct the consent. process to include in the ordinance the text
of a lifetime lease so that it would:not be negotiable: after the
approval of A map. Further,e the Council must monitor and oversee
the operation of the lease. Since the Council did not want to do
t iese things, --he felt they- should ban condominium conversions if
the vacancy rate was less than 3%.
Vice Mayor Fletcher sal -d that the last `time this item was before
them, the Council had discussed the feasibility of how practical
it would be, financially for a developer to be able to --convert -i f
he were to provide an equal amount in a below -market -rate .type of
housing contribution. She called -Lou Goldsmith and Said he had a
complex graph which described how a developer could afford such a
conversion. ,
Lou Goldsmith, Palo Alto Housing Corporation, explained a graph
he had presented to the Councilrrierrbers last week. He said what
it amounted to was that the value of a potential condominium con-
version candidate was presumably its sale value, as a rental unit.
In other words, it was being rented now, and multi -family housing
was being sold every now and again in multiples of 12 or 13 times
the gross income stream. It was quite possible for a unit that
rented for $500 per month or $6,000 a year, to sell for $75,000
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7/13/P1
per unit as a rental unit. If you went to $1,000 per month rent
then it would be,equivalent to $150,000 or in that ball park.
Therefore, the idea was that if you found- a BMR unit of any kind
at something less than that number, the develcper was losing
money. On the other hand, if it r were sold as a condominium,
chances were that it would be sold for substantially more. In
one case, an_ appraiser estimated that the rental value would be
about 60% of the condominium value. He explained the percentage
of low -moderate units as- 50% being one to one, and 33-1/3% meant
one low -moderate for two units as proposed by Mayor Henderson.
He said an example was a unit worth $,75,000 in the rental market
and if it were sold as a low -moderate at $50,000, the loss would,
be $25,000. On the other hand, if an identical unit were sold a
$125,000 as a condominium, there would be a gain of $50,000. If
they were sold one for one, there would be‘a gain of $50,000 and
a loss -of $25,000, and, therefore, an overall gain of $25,000.
Counciimember Levy asked how much a converter should sell a
$75,000 rental unit for to the BMR program.
Mr. Goldsmith said that the BMR program had its own specifica-
tions of allowable sales prices and they depended upon a family
median income level, and percentage of median income, and per-
centage of median income paid for rent. He said those things
were worked out by the Planning Department and the Housing
Corporation helped to work out the formula. Basically, he said a
two to three bedroom unit would sell in the region of $50,000 to
$55,000.
MOTION: Mayor Henderson introduced the condominium _conversion
ordinance for first reading, seconded by Witherspoon, and moved
its approval.
ORDINANCE for first reading entitled -"ORDINANCE OF THE
COUNCIL OF THE CITY OF PALO ALTO AMENDING CHAPTER
21,40 OF THE PALO ALTO MUNICIPAL CODE REGARDING
CONVERSIONS TO CONDOMINIUM AND OTHER COMMUNITY
HOUSING"
AMENDMENT: Mayor Henderson moved, seconded by Fazzino, on page
3 Ender Section 21.40.050, paragraph (2) change the wording, "if
at .least one of the following conditions is met:" to "if both of
the following conditions are met:" and, under (2) (a) change
"units equal in number and of comparable size..." to "units
equal to 50% of the number of units proposed for conversion and
of a coinpar abl a size and ..."
Vice Mayor Fletcher was troubled because the Council was moving
an ordinance which was not in conformance with the Council's
purposes which were originally passed. She felt that the
wording in the ordinance was modified to weaken . the policies
contained in the Comprehensive Plan in order to conform with the
ordinance. Site felt the ordinance weakened the present
Condominium Conversion Ordinance and also weakened the pug oases
which were previously enunciated and now '`in the Comprhensive
Plan. She felt it was oremature to move the ordinance before.
the purposes of the Council were made -clear and if the purposes
are as stated in the ordinance, the Council must commit them-
selves to revising the Comprehensive Plan. She felt this must
be discussed before the other details of the ordinance. She
said her purpose in bringing the :condominium conversion .ordi-
nance before -the Council a: year „ago was that there were loop-
holes discovered in the existing ordinance, and she had intended
to bring the ordinance into a more acceptable form which would
1
not have loopholes. She would vote against the amendment
because it would permit more conversions than were now allowed.
She was also in favor of a equal amount ,of contributions for BMR
housing.
Councilmember Witherspoon was concerned about who would vote for
conversion, and whatever the formula for . below -market -rate
units, if they were rental units, then there would be a condo-
minium project with a homeowners' association where at least 50%
of the occupants would not be active participants in the home-
owners' association. She knew the Housing Corporation preferred
that there not be lifetime leases, but she did not see' how the
Housing Corporation could be treated differently and make those
occupants the brunt of a public policy, but not let them have
lifetime leases.
Sue McPherson clarified that the Rental Housing Acquisition
Program was envisioned before condominium conversion came into
being. One of the provisions of the Rental Housing Acquisition
Program was that no tenants would be displaced, that over time
rents would be lowered so that there would be low/moderate
income tenants. She said the PAHC had tried to marry the pro-
gram with the condominium conversion program, but offering
tenants lifetime leases would diminish some of the flexibility
upon which the RHAP program depended. That is, that while the
PAHC would not evict anyone, they would hope for some sort of
normal attrition over time and would not like to be tied to
lifetime leases.
Councilmember Witherspoon said she world probably go along with
the thrust of tightening up the conditions under which conver-
sions could take place, but would prefer to have the contribu-
tion in the below -market -rate sales program so that, the units
were in ownership rather than rental units,
Mayor Henderson said rental units were the real problem. He
said the concern of all was the loss of rental units through
conversion. He thought the community would be gaining something
by having rental units, and they would be units in the income
area with which they were most concerned. He did not want to
convert 100 units and lose 100 rental units to the community
stock. He thought they should at least get back a percentage of
rental units for low and moderate income.
Councilmember Bechtel op.cosed Mayor Henderson's amendment
because when the matte, was last discussed, she was in the
minority because she supported no exceptions unless the vacancy
rate was more than 3%. She felt the purpose of looking at the
ordinance was to tighten the existing ordinance and that now
they were making it more cumbersome. If.. the Council wished to
make any exceptions. she felt the Council needed to be very
clear that the City and the residents would gain: something from
allowing any such conversion.
SUBSTITUTE MOTION: Councilmember Bechtel moved, seconded- by.
Renzel, in Section 21.40,050(2)(a) to change wording back to
"units equal in number and of comparable size..."
Councilmember Re'nzel agreed with Councilmember Bechtel and felt
that, any conversion's would push the rental pressures down and;,
push the lower income people out. She thought the Council
should be as strict as possible on the exceptions to be. certain
that rental housing in some degree was protected. She thought
that the 100% equivalent units was a fair compromise.
Councilmember Fazzino. said he supported the PAHC and Mayor
Henderson and the concepts before the Council tonight. He said
it had been tested to the benefit 'of .tenants-, condominium
owners, and converters already. He said the proposal provided
affordable housing and he applauded the PAHC on their creative
approach to condominium conversion.. The 3% vacancy rate was
nothing more than,out and out prohibition of conversion and did
absolutely nothing for tenants. He said that rents could still
rise rapidly and --no protection occurred on a long-term basis.
He thought the PAHC proposal was a good deal for all. It empha-
sized continued rentals for those who wished to do so. He said
he would prefer to see lifetime lease provisions attached to the
proposal..: He was somewhat encouraged by Sue McPhersoe's_com-
`ments, but would rather see the RHAP programs explained more
specifically so he, could accept the fact that the programs would
bring about the same level of protection as the lifetime lease
proposal. He thought the motion protected the supply of rental
housing and respectfully disagreed with his colleagues. He said
that all of the Council's efforts over the last few months had
been to protect the supply of rentals. The Council may disagree
on how to protect rentals, but the proposal did far more to pro-
tect the supply of rentals for low to moderate -income people
than the 3%. He said it eas the only approach which essentially
"controlled" the rental price through subsidization or other
approaches for those people. Also, he thought it met the pri-
mary goal of the purposes which was to establish reasonable
balance of rental and ownership housing in Palo Alto. He
encouraged support of the Henderson/Housing Corporation pro-
posal, which he felt was a fair compromise and which provided
adequate protection for tenants and created affordable housing
in the community.
Councilmember Eyerly said that philosophically, he was against
mandating a conversion to satisfy all of the constraints. He
thought that when there was the necessity of being over a 3%
-vacancy rate to have conversion, then some escape clauses must
be available. He said that the escape clauses when all of the
constraints were mandated troubled him, particularly when he
thought about a smaller number of units. If a smaller landlord
had to satisfy those conditions, he would have some :real prob-
lems. He could support the ordinance as presented by the City
Attorney's Office where it was an either/or situation, but would
not support a situation whee they all had to be satisfied.
Councilmember Klein felt the Council was in a difficult position
because. they cited to adopt a very complex ordinance,-- which he
thought.was a mistake. He said the only silver lining he could
see was that the Council might end up with something marginally
better than what they had. He felt it would have been far bet-
ter for the Council to adopt a nice clean ordinance -with the 3%
rule and nothing else. Ile_- did not think Mayor Henderson's
motion went far enough. He preferred the Housing Corporation's
proposal white was incorporated it Councilmember Bechtel's sub-
stitute notion. He said he would support the substitute.riotion.
and have the one , to one -replacement provision included andeAf
that amendment _passes` with no more significant negative changes,
he would vote for the ordinance as a whole. If Councilmember-
`Bechtel's motion was voted down, and the Council was just going
to require ;one unit for every two in the BMA_ program, then he
thought the converter had too much._incentive, _.conversions were
made much too easy endt they had not struck:a good deal for the
City, then -he would_,.:vote against the entree ordinance.
Vice Mayor Fletcher t*id that in support aof the motion,, she
wanted point out that Mrs -Goldsmith., had illustrated how the
developer couldmake a profit even if he Contributed half of the
ea
1 0 4 7
7/13/81
the units to the BMR program for the City.. She said that if the
ordinance passed,• the City would be losing total rental units,
which_ was against the policies in the Comprehensive Plan. She
said they were not only concerned with lower income people, but
people who could not afford the finance charges which had
practically eliminated anyone but the extremely wealthy from
purchasing homes even condominium.; which were not expensive.
housing. She said that the City was continuing to attract new
employees and they would not be able to buy, and would be
looking for 'rental housing. The rental housing market was
shrinking and the condominium market was increasing 'all the
time. She said that as far as protecting the present tenants
with long-term leases, those --long-term leases twereo tenuous and
were pretty weak without a just cause eviction ordinance which
the City did not have., Also, they.were discriminatory because
they offered rent control to a select group of tenants and she
felt it was only a matter of time before tenants who were not
protected by rent control would challenge it in court. She said
that i n Washington there was, talk about cutting off Federal ai d
to any City which had rent control jn which event she thought
they would repeal this type of an ordinance. She said the City
would be constantly faced with unhappy -tenants and would be put
in the middle between tenant and landlord.
Mayor. Henderson felt there was a great benefit to the community
in providing some opportunities for below -market -rate purchases
and condominium conversions did come in at below -market. He
said the new condominium units were very expensive, but the con-
versions were coming in at a lower price, or the tenants would
not vote the two-thirds. The tenants would either get a good
purchase situation or else lifetime leases al a controlled
rental, and Mayor Henderson felt they should offer some oppor-
tunities in that direction. He felt the 50% figure was reason-
able. - ,e felt the 100j was almost like going back to the 3%
vacancy limitation.
SUfSTITUTE MOTION FAILED, to provide units equal in number to
the number proposed for conversion, by a vote of 5-4 as
follows:
AYES: Renzel., Klein, Bechtel, Fletcher
NOES: Eyerly, Henderson, Fazzino, Levy, Witherspoon
AMENDMENT PASSED to provide units equal to 50% of the number
proposed for conversion by a vote of 5-4 as. follows:
AYES: Renzel, Klein, Henderson Fazzino, Fletcher
NOES: Eyerly, Bechtel, Levy, Witherspoon
AMENDMENT: Mayor Henderson moved, seconded by Bechtel, to
remove "(a)" after "Section 21.40.050" in Item (3) on page B.
Councilmerhber Renzel said she thought that part of the ordinance
was to assume that at some point the vacancy rate might go above
3% and at that point the provision of the two-thirds vote and
the 50% of units to be converted provision would not apply, but
she assumed, the City would still want to require the 10% units:..
The ordinance was constructed to cover the eventuality that the
.
vacancy rate could go above 3%•.
Ms. Sloan agreed and said it was an, overall p'%ovision that would
apply regardless of the vacancy rate.
1 048
7/13/81
Mayor Henderson said he thought it would apply only if the
vacancy rate was over the 3%. He did not want it to apply when
it was under 3% and they would be using the 50% contribution
situation. He did not want to add on top of that a 10% contri-
bution.
AMENDMENT PASSED unanimously.
AMENDMENT: Mayor Henderson roved, seconded by Renzel, an amend-
ment.to Section 21.40.060(1)(d) on page 6, and add paragraph (6)
as follows: "The provisions of this section shall not apply to
units provided for low and ..moderate income .rental housing pursu-
ant to section 21.40..050(2) Occupants of such housing shall be
protected by all provisions of law related to, rental housing in
general,
Councilmermber Levy asked if this would apply to units being
reserved for SMR_within a total housing project.
Mark Chandler, Byron Sher`s Office, said that the way the ordi-
nance was structured was that if units were provided as BMR
rentals off -site, the provision for lifetime leases would not
apply to those units because the lifetime lease language applied
only to people within the subdivision. Since the subdivision
would not include units provided off -site, the extension of
lease provision would not apply to those units. However, if the
units were provided on -site, the provision would apply because
the units would have to be mapped within the subdivison sine
the Department of Real Estate said you could not subdivide part
of a building. He said the amendment would correct that anomaly
so that all the units were treated 1 similar fashion. All
those units would be subject to the usual protections for
tenants. If they were to be managed by the Housing Corporation
they -would subject to the RHAP provision requirements and
tenants would not be evicted, but at the same time, the loss of
flexibility that would exist if lifetime leases were provided,
would be averted'. He said that -the amendment was designed to
provide consistency in the treatment of the BMR units provided
off -site and the ones provided on -site.
Councilmermber- Levy asked if he were a tenant in the subdivision,
and he wanted to lease, how would he know if he would get a
lifetime lease or whether his lease would be part of the BMR.
program not protected by a lifetime lease.
Mr. Chandler replied that at the time the subdivision map was
drawn there might be a designation of units. he felt it was a
situation that had to be resolved in terms of how the map was
drawn.
Ms. Sloan felt it was a policy issue and the Council should dis-
cuss both the consent process and the lease provision before
voting on.either one. She felt they were tied in together. She
said that if they required all tenants to vote, some might vote.
for conversion assuming they would get a lifetime lease, and
then later discover that their unit had been designated to be a
BMR. unit. If the Council voted for this motion, they Would not.
get a_ lifetime lease.
Mayor Henderson asked for the alternative if this was not done.
Suppose there was a conversion and there was the two 'to one
ratio and there were people who signed lifetime leases so that
initially there might not be the 50% available for, the Housing
1 7 0
/13/81
Corporation. Mayor Henderson felt that the Council was getting
locked into a problem of having everyone vote, so the 100 people
voted for either conversion or lifetime leases, and, then 33
units were sold out from under them and then they were told they
could not have a lifetime lease.
Mr. Schreiber added that as far as the process was concerned,
that would become a condition of the subdivision and the final
arbitrator could end up being the Council, because they would
have to approve the tentative map and that would contain the
solution under the ordinance, which would contain the designa-
tion of units.
Mayor Henderson said that • if the requirement was for an .off -site
contribution, what would happen then.
Ms. Sloan said that the way the ordinance was currently written,
because the consent process and the 50% requirement were not
linked together, the consent process was not a problem. With
the lifetime lease, the way the ordinance was written, it would
depend upon if it was in the same structure. If the BMR units
were in the same structure, the ordinance said the units would
be subject to a lifetime lease. If they were not in the same
structure, they were not subject to a lifetime lease, which was
the case with Ferne Avenue.
Councilmember Levy felt a lifetime lease must be offered to
everyone. He felt that was critical and if that meant a delay
before units could get into the BMR program, some mechanism for
taking care of it 'must be developed. _
Mayor Henderson did not know if the Housing Corporation could
accept that type of proposal. Would they be able to have a
promise of maybe 33 units within a building, and then have, to
purchase those units as they became available through the
years.
Ms. Sloan felt -the real problem was that the PAHC would have to
acquire the units in -the beginning and then they would lose;'.
money on those units if they have to rent them out at below -
Market -rates.
Mayor Henderson felt theywould have to say that those 50% units
would have to be provided offs -site.
Councilmember Witherspoon said that one of the problems was the
cash flow. But there was nothing in the lifetime lease that
said you could not have built in escalation of the rent. The
rent was not frozen forever, it could be raised, but it was
understood as to what the formula was and as to how it was
raised. She did not see wny the !lousing Corporation could not
protect itself from the cash flow problem the same ray any other
owner of the unit would.
Mr. Schreiber said the complication was that if units .were sold
in the private market, a' private purchaser may well carry a
negative cash flow for any number of years and really be looking
at the:':capital appreciation for running up the property value,
rather than the net income flow. The Housirn:.Corporation would
be i. ._.:a much more "difficult_ situation in trying to absorb any
type of negative cash flow.
Sue McPherson said she, thought they were all saying that the
RHAP program would not work- in condominium conversions unless
1-0 5 0
7/13/81
they could arrive at a purchase price with -the seller that would
carry the units, and they could charge a rent that would justify
the purchase price. 'Over time, the. PAHC's goal was to serve as
low an income family as possible. It might be the family in
there now, it might be the family they hoped to reach in the
future. The question was how,long should they promise the cur-
rent families an existing tenure and if they get over that
hump, they could reluctantly acquiesce to a long-term lease pro-
vided they all understood that the lease rental must be based ,on
what would carry that unit, and may not be the same as the
-developer was offerin_q his tenants. She said that often times,
it- happened that there were people in units to be converted who
would qualify for some federal_ program if there was a federal
program that the PAHC could work. If the only way to get past
the difficulty was to accept a long-term lease of ten years or
so, given the fact that the PAHC project must carry itself, and
could not have a negative cash flow, then they would. acquiesce.
M. Sloan said she thought they were saying they would agree to
the lifetime lease, but not to the control on rent provisions
that were in the ordinance.
Ms. McPherson said their rent must be set by the purchase price
and the other contingencies of the PAHC's purchase.
Ms. Sloan said she thought the difference in why the PARC would
not make hilaney was when they rented at low income prices to low
income persons, they were subsidized. If they rent at low
income to persons who did not qualify. as low income persons,
then they are not subsidized and _they dose money from the subsi-
dies.
Councilmember Renzel said that as she understood it, the Housing
Corporation or some other agency who provided low and moderate
income housing, had to be able to purchase the units in order —'to
qualify for a subdivision. She thought there had to be a ready
buyer able to offer the housing, If the provision for lifetime
lease stayed in and the developer could .not even convert unless
he had a ready buyer, --She thought the price of those units would
have to be predicated on something where the Housing
Corporation's cost would carry it. It worked backwards from
whatever rents the Housing Corporation would be able to charge
under a lifetime lease situation. The Housing Corporation's
other constraint was that some of the financing programs require
that a certain amount of the units be available for low and
moderate income people, and if the current: tenants were not
qualifying tenants, then the PAHC.- might -run into problems
regarding -the funds available to purchase the units. If that
was related to whether the applicant could subdivide, the price
would have to be negotiated. She thought it -would work out.
She asked what would happen if all the unitsh in a hsingle
building had to be subdivided and sold whether by blocks or
indlvidda?"ly, There was still the question of the right of
first. refusal required under State law.
MOTION WITHDRAWN Mayor Henderson, with Counc i member Renzel'sh
agreement, withdrew the amendment which would exempt the low and
moderate income housing:.: :units from the long-term lease
provision.
AMENDMENT: Councilmember Bechtel_ moved, seconded by.Fazzino, to
add Bob Moss' .,.language to page 8, Section (3), after "21.40t,05O
(2)(b)(i) - "Tenants of units proposed for conversion to com-
munity housing and tenants of rental units provided under
Section 21.40.050(2)(a) in the same structure shall be counted
as ,a single class for the purposes of obtaining the two-thirds
1 0 5
7/13/81
6-3, Eyerly, Henderson
consent.
Ms. Sloan asked if that meant only if those tenants in the
below -market -units lived in the same structure.
Councilmember Bechtel said yes.
Councilmember Klein said he thought that was already in the
ordinance as presently drafted.
Ms. Sloan said she felt that the ,way it was written now it was
all tenants who lived in the building would vote.
Councilmember Levy said he thought Mr. Moss had the Ferne Court
situation in mind where there were two separate parcels, both of
which were involved in ` the transaction, and only the residents
in one of the parcels were allowed to vote.
AMEti)MF,NT "ASSED unanimously.
AMENDMENT: Vice Mayor Fletcher moved, seconded by Klein, on
page 7, (2)(a) . "Age discrimination. No community housing
project shall prohibit sales of units,.." amend to read as
foll.nqs: "Age discrlrninationr No community housing_ project
shalt .'prohibit sales Of units to persons with chil.dfren unless,
it is determined that from the time. 'of its development, the
project was. designed and built for the exclusive - occupancy of
persons 60 years of age or older."
Councilmember Bechtel Asked who .would determine how the project
was designed?
Vice Mayor Fletcher thought the Director of Planning and
Community Environment should be designated.
Councilmember Fazzino said he supported the general approach of
Vice Mayor Fl etcher' s recommendation, but was concerned whether
it would run into problems with respect to a legal case now in
the courts.
Vice Mayor Fletcher responded that that case was rental housing
and this was ownership housing, conversions.
Ms. Sloan Said that was correct and that if and when that case
was decided the ordinance could be changed if it affected owner-
ship housing.
Councilmember K. n felt it was inappropriate for the City of
Palo Alto to determine whether accommodations were-esuitable for
children. He felt it was. appropriate to determine whether some-
thingwas designed solely for adults, which he_ felt was a if-
_ferent,type of judgment.
AMENDMENT PASSED by a
Witherspoon voting no."
MOTION AS AMENDED passedby a vote of 5-4 as follows:
AYES Renzel, Fletcher,' Henderson,
MOTION: Mayor Henderson moved, seconded by Fletcher, to bring
forward Item 7, Review of Sexual Orientation Ordinance, before
Item 6, Appeal re decision of ARB for California Avenue/Park
Boulevard Project.
MOTION PASSED unanimously
REVIEW OF PROPOSED SEXUAL ORIENTATION ORDINANCE FOR BALLOT
MOTION: Mayor Henderson moved, seconded by Fletcher, to approve
City Attorney's amendments as follows: (a) Under "Purpose"
(formerly "Statement of Policy"), change "It is the policy of
the City of Palo Alto to end discrimination... to "It is the
policy of the City of Palo Alto to revent discrimination...
(2) The definitions have been placed in a phab.etical order. (3)
The section explaining that no criminal penalties shall attach
to a violation of the ordinance be moved from the section on
notices to the section on remedies, and the remedy of injunction
be incorporated into the first section under remedies."' (4) Add
a section on the effective date of the ordinance since the
charter does not address the issue specifically."
The Reverand Joan Abrams, 2698 Cowper, said the City Attorney's
office had looked at the ordinance and decided it was not art
inclusive ordinance. She said trans-sexuals were excluded, She
asked it be amended to cover trans-sexuals and thereby cover all
categories of sexual orientation and that if the ordinance was
riot amended to be an inclusive ordinance, that the exclusion be
stated because on the face of the ordinance, it looks to be
inclusive.
AMENDMENT: Councilmember Witherspoon moved, seconded by Eyerly,
to add that the ordinance can be amended by Council.
AMENDMENT PASSED by a vote of 6-2-1 as follows:
AYES: Eyerly, Fazzino, Fletcher, Klein, Renzel
Witherspoon
NOES_: Henderson, Bechtel
ABSTAIN: Levy
MOTION AS AMENDED PASSED by a vote of 6-3 as follows:
AYES: Renzel, Klein, Fletcher, Henderson, Bechtel, Levy
NOES: Eyerly, Fazzino, Witherspoon
PUBLIC HEARING APPEAL OF PAUL J. KAHN RO F'RT Jb` DEBS AND
DRUM [• JET FRIA
D Rr.tATTITRN1 AV r'TA ( BOOLEVARb 44OJECT (NR:349:1)
Staff recommends that the City Council adopt a motion . finding
that the project as mitigated in the Mitigated Negative
Declaration will not have a significant impact on the environ-
ment, that the project is consistent with the' adopted Comprehen-
sive Plan, and approve the project design with the condition
that the May 29, 1981 agreement between the developer and . the
City =targeting $30,000 of the total $130,000. traffic control
improvement funds for the Evergreen Park neighborhood be
included 4s an Exhibit: to the Mitigated Negative Declaration.
-
1 0. 5.3
7/13/81
1
Ms. Sloan reminded the Council that they were to evaluate the
Architectural Review Board decision on the project which
included two parts. One was the architectural design of the
project itself and the other was the evaluation of the
Environmental Impact assessment. She said she;saw three choices
as follows:
1. To approve the ARB,decision 'in.its entirety;
2. To approve the design aspect of the ARB decision, but ask
for an EIA.
3. To disapprove both the design and the EIA and send it back
to the ARB and ask for an EIA and a new design.
Mayor Henderson declared the public hearing open. He said he
would permit speakers to address Council for two minutes.
MOTION: Councilmember Levy moved, seconded by Renzel, to
overrule Mayor's decision and permit Mr Jeong to speak longer
than: five minutes.
MOTION FAILED and time limit upheld by a vote of 5-4 as
follows:
AYES: Renzel, Fletcher, Bechtel, Levy
NOES: Eyerly, Fazzino, Henderson, Klein, Witherspoon
David Jeong,.4056 Park Boulevard, spoke on behalf. of Mrs. Jeong
and Kathy Thompson and gave the Council a worksheet which drew a
parallel between the California -Park project, which had an EIR,
and the preser+t project. He said that the project on the
worksheet was 2/3 as large as the California -Park project, but
that the traffic projections said that only .1/6 the number of
cars were being generated. He said that the minutes reflected.
that Mr. Northway had said on May 7, that he was concerned about
the accuracy of the traffic projects and Mr. Jeong was too. He
said that Carl .Stoffel's report of May 27, 1981 gave projections
which added up to 21,056 trips; then it said there were 60
Walking trips, which were subtracted, and, arbitrarily divided
the other commercial trips which were subtracted and the total
was i,740 trips in the worst _case. Further, he said if that was.
followed, the 709 generated .trips minus the 356 for the add-ons
which were subtracted, it said that what. Cal -Trans should .be
using for their projections was 24.4 per 1,000 feet of retail.
However, the 10th progress report from .Cal -Trans said that for
that type of a project there were 85.8 trips per 1,000 square
feet. The, Institute of Traffic Engineers said there were 115.8
trips per 1,000 square feet. He said he chose this particular
,fate because they were of comparable size for the Ins1 tute of
Traffic Engineers, they went from 0-49,999 square feet --the size
fit perfectly. There were 210 studies, they contained office
buildings, stores nearby, and this was a category used by Staff
when they wrote the EIR for California -Park. Historically, what
he presented was the data used in the past. If this data were
used and recalculated taking an average, they would be looking
at 5.733 trips per day per unit times 173 units which would be
992 trips per day.. Regarding commercial, taking an average
would be 100.8 trips per 1,000 square feet times 45.19 per
thousand square feet of Commercial which would be 4,555 trips
per day. That would total 5,547 trips per day. That would, only
be 55 Percent -Of what California Park was generating when
California Part ._was. 2/3. He felt the traffic report_ did not
reflect _ the worst case figures.: Regarding the mitigation
measure,` the report reflected that : the commercial traffic was
already there with or without the project. He said that the
measures in the report addressed the commuter traffic and
e
i
parking, but nothing addressed the traffic generated by the
project. They all addressed the mitigation of the situation
which already existed. He said that only measure G in the
report attempted to mitigate on the traffic generated by the
project itself.
Robert J, .Debs, 3145 Flowers Lane, disagreed with Assistant City
Attorney, Margaret Sloan, and said that the Palo Alto Municipal
Code could do whatever it wished with the appeal and that the
choices available were not just what Ms. Sloan had pointed Out.
He felt there were potentially dangerous impacts for the five
neighborhoods involved. Staff and the ARB, had handled the
matter without looking at long -range -planning. He said that the
laws stated that there had to be a full EIR if there was some
deleterious. effect after mitigation had been applied, which in
this case there was. He urged that the Council refer the matter
to the Planning Commission with instructions that they -cut ba.k
the impact on the neighborhoods and cut back some of the
commercial and a long-range planning effort done.
Andrea Lenox, 396 Stanford, had spoken to 18 households and
approximately 30_ persons. About half had 1 ived in the neighbor-
hood for 30 years, the other half between 5. and 10. What they.
all liked most was the fact that it was a peaceful and quiet
neighborhood. Most of the people did not want the development.
Crime, vandalism and traffic were the major concerns.
Suggestions were that an environmental impact report, stop the
development, block the streets to California Avenue, create
one -gray streets, traffic light on Cambridge, develop the old
Maximart area, better long-range planning for the neighborhood
and increase police protection. All but one person said they
would support eliminating through traffic from Evergreen Park.
Councilmernber Klein felt it might be helpful if the City
Attorney spelled Out the Council's alternatives better. He
thought .that some of the speakers felt that the Council could
reject the project in its entirety and asked for clarification
because he did not think that alternative was available on the
proposal because of the existing zoning and the actions taken in
the development of the Comprehensive Plan process.
Ms. Sloan said that was true, not just because of the existing
zoning and the Comprehensive Plan, but to deny a project 'and not
allow an applicant to prepare an EIR would not be fair. Someone
must be given the chance to prepare a full EIR before denying
the project. She agreed that she should have added a fourth
choice, would would be to modify the ARB decision perhaps adding
other mitigating circumstances. She said that the zoning .and
the EIA were two different processes and van side:: by side.
Despite the zoning, the Council had the right to look at the
environmental impacts of the project. If the Council started
looking at the environmental effects and :thought that the
project was too dense, and, yet a year ago the - area was zoned for
that density or a greater density, that would be inconsistent,
but the environmental effects should be looked at.
Councllmember Klein asked ' what types of . environmental effects
would have to be found in order = to say that despite the zoning,
the Council would not now pay any attention. He said that the
main concerns were the traffic and parking. He wanted to know
if those were the types of environmental finding the Council
could make to sly: that the environmental factors overruled the.
zoning.
Ms. Sloan said yes, traffic was one of .the factors, and it was
conceivable that. a parcel could be zoned for something and a
finding of too much traffic made. She said a parcel of land
could be zoned multi -family, for example, and yet the Council
could decide that the traffic problems caused by a normal
multi -family project would be extreme, and they could say they
would prefer a project which catered only to people over the age
of 70, most of whom would not drive, the zoning could_ still be
fulfilled and would also take care of the traffic effects.
Councilmember Klein asked what type of environmental findings
would have to be made for the Council to say that despite the
fact that a project was within the existing zoning, it would not
be approved.
Ms. Sloan felt that an EER would have to be reviewed first. She
felt. that a better way to proceed would be to change the zoning
before someone had vested rights in property and vested rights
began when someone constructed something.
Joe Ercol ani , 2040 Ash, canvassed his neighborhood al so, and it
was felt that if the issue was environment and one of the parts
of the environment was traffic, and if there would be too much
traffic, the scope of the project should be lowered. He also.
felt that the staff report was inadequate, and on its face,
appeared to be unrealistic. He said that according to the
report, the existing day trips only appeared to increase about
9:t and the project was much bigger than that. Further, the
average increase was 9%, and the tone of the report suggested
that was acceptable. and he disagreed. He felt a 9% increase
was something .that would Devalue the quality of life in his
neighborhood. There was no mention of the traffic increase in
the Evergreen Park neighborhood itself. He recommended that the
Council look at some long-range planning and study the area
within Evergreen Park also, and not just peripheral areas.
David Gleason, 396 Stanford, reemphasized the traffic problem in
Ever oreen Park. He also felt the staff report was inadequate.
He suggested that if the project was completed as planned, the
City should install barriers to block completely the traffic
from California Avenue and that would include blocking. Park
Avenue and Birch at Cambridge. He suggested it be -a 90 -day
trial period which would not affect the, project. It would
inconvenience the neighborhood tremendously, but he offered it
as ea proposal for consideration.
Jean McFadden, 407 Ferne Avenue, . ?resident of the Palo Alto
Consumer s' Cooperative, read a letter which is on file with the
City Clerk's Office.
Cole Richmond, 260 Chestnut Avenue, President of Chestnut/Milton
Homeowners Association, thought the project was a massive one.
He said = it would have a tremendous impact on the neighborhood
and said that the barricades that the City put in in his = area
brought the traffic down to nothing going South. He offered
assurances . to the merchants of California Avenue, between the
two homeowners associations, that it was never their intention
to cutoff their cash register. The only thing they _wanted was
peace and serenity in their neighborhoods. He had lived in the
South Palo Alto area for 32 years. He said that if tie 'project
was approved in its entirety he, . was worried about the CS. He
said he had stood before the Planning Commission:when the little
merchants of Latmpert Avenue were Called in and told they had
until 1993 to get out. He said the , Maximart area was a' large
one, and each time something comes up in that area, they have to
come in and fight. He recalled the construction of Court House.
He said the neighborhood would` continue, -to fight. They,wer'e not
fighting the development of the project, they knew they needed
housing, but asked the Council to study the project and the
impact with their hearts, so that if the project was crmpleted
In its entirety, all of the neighborhoods would not have to come
back in again and get traffic barricades, because he knew the
City was on a tight budget and did not have $90,000 to keep put-
ting in barricades then taking them out.
Bob Moss, 4010 Orme, recommended that the Council reject the
proposal, and refer it to the Planning Commission with specific
directions to reduce the traffic impact, or to reduce the amount
of commercial development, which would do the most to reduce the
traffic impact, and to look at some aspects of the EIR which
were missing. He did not think the ARB should consider a pro-
ject of that scope and in particular off -site traffic improve-
ments, stich as purchasing and converting a railroad bridge or.
putting in traffic barricades in adjacent neighborhoods as much
as 1/2 mile away. He said that in August, 1974, a project was
proposed to build 50 units at Los Robles and El Camino. He said
the Planning Commission reviewed it in conjunction with a neigh-
borhood, association and neighbors made specific suggestions
regarding traffic circulation, limiting the number of accesses
to Los Robles, etc. and then referred it to the ARB for design
approval. The ARB put in two entrances to the project on Los
Robles, did not .prevent through traffic from going .;rom Los
Robles to Vista and made the project three and four bedroom
homes, etc. When the matter returned to Council in November,
1974, the Council chastised the ARB for exceeding their autho-
rity, and remanded the entire project to the Planning Commission
with, directions to undo what the ARB had done. He felt that
staff should not have asked the ARB to undertake the task, and
that the ARB should have refused. Regarding traffic, he felt
that intersections had not been addressed, not even inadeq-
uately. He said the staff report of July 9 referred to the CEQA
guidelines in the case of a commuter service imposing traffic on
the streets, but did not mention what would happen if the pro-
ject interferred with the commuter service. He said staff had
said that if this project was not built, something worse could
happen. He recalled Councilmember:: Klein saying when he was on
the Planning Commission: that the =City was not required to
approve a project which completely used'. the zoning envelope and
there were many reasons why the City could refuse, i.e. exces-
sive traffic, and not addressing all impacts such as the effects
of a transportation system. He urged that the matter be
remanded to the Planning Commission with specific directions to
reduce the adverse impacts on the neighborhood.
Corinne Powel l-, 302 College Avenue, asked all Evergreen Park
residents to stand up. She said that of the 221 dwellings which
were canvassed, as well as the apartments, of ?5 respondents,
all but three felt the impact of the project on Evergreen Park
regarding traffic congestion, pollution, noise, increased crime
and increased safety hazards were of grave concern. There were
manypeople who advocated traffic barriers to keep the traffic
from flowing through and there were many people who advocated
that the project scale was too massive and more space was needed
between the buildings and sidewalks. Further, the proportion of.
housing should be larger than the commercial area . . She was
unclear as to the Council's -action, but felt the. EIR liras inade-
quate, particularly regarding Evergreen Park. She read a letter
from: Diana Hallo ay, owner /operator of Farmer's Market
Restaurant on California Avenue who was concerned about the
traffic impact of the proposed project at the end : of avenue
would have on business in that area. She felt that the _increase
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in vehicles_would drive away motorists who would become dis-
couraged by lack of parking and pedestrians who would find
crossing the streets impossible. She felt the project would be.
a detriment to established businesses and was too large to con-
tinue the spirit of a small community. Ms. Powell. suggested
;that until there was a plan which would consider the entire
area, she did,not feel any building was appropriate. She sug-
gested a task force to study the solution and bring -recommenda-
tions to Council be formed. She recommended that one member
from each of the surrounding neighborhoods be' on the task force,
one member from the California Avenue Development Association,
one member from the Planning Commission, and she hoped that any
further building would be denied until the Council had adequate
plans.
Jill Coelho, 1824 Park Boulevard, spoke regarding the staff
report. She said the arguments regarding the traffic volume
were strange. The traffic barrier currently at Peers Park was
directed in response to a- duala neighborhood concern regarding
traffic. Evergreen Park residents had been assured that the
Southgate Barrier would alleviate all concerns about the
existing traffic. She said Park Boulevard was still a high
speed street, -but the barrier had reduced the volume of traffic.
The staff report said that the new development would bring
traffic levels to her corner up from the present 2585 vehicles
pet 24 hours, past the previously understood intolerable level
of 2700 vehicles, to 3,085 per_day. She said .it was an inter-
esting argument that this was less than some other streets
especially since the staff appeared so concerned about their
welfare previous to the installation of the barrier. She
pointed out a "leap in logic" from North of California Avenue,
it was less than some othee collector streets, and South of.
California it was less than it was before the barrier. She was
worried about a "wait sand see" attitude. She felt it was:
suicidal because once there Were 400 people living in a new
development, they' would want a. nice, fast street to their house
and would be evoters and residents in that area, Before that
amount of -.people was added, she wanted the 'neighborhood looked
at. She said that Park Boulevard was not equipped for the
amount of traffic it currently had.
Kevin Arnold, 2031 Park Boulevard, felt the project would really
affect the. neighborhoods and in particular he was concerned
ablaut the architecture which was too massive,.* He said at first
he felt the City needed the housing, but -he thought the City 'did
not need the offices.
Milly Davis, 344 Tennessee, said that last Saturday, they held a
benefit garage sale at her home and the 21 persons who went were
asked to sign a survey regarding their preference for City
Council action en the California Avenue/Park Boulevard :level:op-
ment. She said that four of the 21 persons did not sign because
they felt they needed additional information, but of the 17 who
did sign the form, there was no one who said they liked that
project=:as it was and no one who did not favor .an`"EIR. She said
12 of the 17 favored a less dense project; 7 favored rezoning
the project to RM3, all residential; and _ 7 favored an EIR and 1 favored leaving the site open space. She said that several
months ago, she called the Palo Alto City Attorney's _ Office and
asked when, it was possible to change the zone: on, a proposed
development. The attorney. ,she spoke,.with said he felt that the
zoning on projects could be changed up until- ; he -building permit
was issued. She said" that " in view of the . fact that none of -the
persons whin sighed her form favored the project was .;s' she
asked Council and the staff if would be possible to rezone the
site to a lower : density. ; She thought that if residents in Palo
Alto were told that the project would add more unneeded jobs,
that many more vehicle trips than 1,750, and some 60 feet of
high buildings, she thought most Palo Altans would be over-
whelmingly against such a high density project. She asked the
Council to consider the possibility of rezoning the site if it
was legally possible, and support the request to send the matter
to the Planning Commission and to have an environmental impact
report completed.
Mayor Henderson asked Ms. Davis what the "attached article" was
which was said to have been attached to her survey,
Ms. Davis said her garage sale was a benefit for the Palo Alto
Neighborhood News and they had copies of the paper on a table
She said it contained an'article written by Bob Moss regarding
the project.
David Schrom, 302 College Avenue, said that the Comprehensive
Plan- said residential neighborhoods in- Palo Alto would be pro-
tected and that traffic An residential neighborhoods would be
reduced. He reminded the Council that reduce meant reduce, not
increase by 2% or even keep the same. He said the staff report
ignored the effect on the local streets in the -neighborhood not
the collector streets. lit said the March 27 staff report said.
that the local streets would be -'affected. He felt that the
negative impact on their streets was contrary to the Comprehen-
sive Plan guarantees of protection and reduction of through
traffic. He said he went to Peers Park on his way to the
Council meeting and saw many people go through the fence from
the railroad tracks on the other side. He said the park was
heavibe used. Furthe.', he said the staff report did not address
the impacts of future developments. He pointed. out that CEQA
included as one of its criteria the impact on future develop-
ments. He said that anyone familiar with the area knew there
was much vacant land there as well as many buildings which
underutilized their sites under current zoning. He asked the
Council to consider the impacts of future developments as they'
decided the .impact of the 'project.. He said the staff report
contained no alternatives. He thought the Council and the citi-
zenry should know before hand what the choices were.
Erica Prince, 302 College Avenue, agreed with all the previous
speakers.
Sill Carillon, 2053 Park Boulevard, had followed the matter
through the ARB, and urged a formal EIR, and asked that the.
matter be .referred to the Planning Commission. In the July 9
staff report, re the proposed enlargement of the SP/Cal Trans
Service Service, it said that they might wish to double the size
of their parking lot in the future, which he thought was a
future impact. Although he agreed that would be Cal -Trans'.
problem, he felt the future impact should be included in the
arithmetic. _
Esther itahn, 425 Grant, referred to Page 2 of , the July 9 staff
t eport and asked how it could be claimed that this project met
the criteria outlined in the Urban Design portion of the Plan,
which says, "to identify and maintain smaller scale visual
features that give character to Palo Alto and its neighbors.
Changes in the scale of the community that might occur through
introduction of;,massive land use such as larger building's cr, new
transportation corridors should be evaluated." "Retain unique-
ness and diversity of Palo Alto neighborho`ods; She did not
think the project met those requirements.
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3111 Blake, 316 Oxford Avenue, chose to live in Palo Alto after
searching throughout the United States for _a place to live. He
realized that Palo Alto needed the housing, but thought the.
development could use more trees. He requested that two or
three nice trees, two to three feet larger than the tallest
building, be placed in the center. He thought the Council
should consider whether exceeding the 50' height level would be
allowable from an impact point of view. Further, he said there
were a lot of motorbikes with open exhaust used in the develop-
ment area and he had been hearing them at 3:00 a.m., and won-
dered if citizens were supposed to call Councilmembers to com-
plain because he thought the problem would be worse when the
development was completed. He expressed several negative
opinions of the project based on the plens and model and urged
the Council to look very closely at the project.
Dr, Thomas Eayang, 425 Grant Avenue, also urged that this devel-
opment be looked at very carefully before approval so that there
would not be later regrets. He had three problems with the
report. (1) He, could not understand how 1,750 more trips per
day -could only require 60 more parking spaces. He also felt
that the City Council had the authority to require an EIR, as
well as to deny or approve the project for the welfare of the
public, which was a premise of a democracy, (2) He called
Council's attention to page 4 of the staff report, "it is pos-
sible that the traffic analysis could be further refined by
survey of the California Avenue office employees and shoppers
and by use of a computer modelling for trip assignment. These
surveys and computer use are quite costly and are of a size
to have regional impacts." He said it was evident to him that
this project had not been through that sort of a study because
it was too expensive. (3) Page 8 of the staff report, "Once
again -referring to the CEQA Guidelines and the definition of a
project, it is not appropriate to evaluate the California
Avenue/Park Boulevard projec� in terms of possible increases in
traffic generation from an adjacent railway station." He said
that long range planning had shown that every year there was
progress and growth. He said that the traffic impacts of the
railway station were never well studied and presented.
Mike Gol irk, 366 °California Avenue, was a property owner on Park
Boulevard and was the Director of CAADA. He said that in 1959
the master plan was developed by people of the California Avenue
business area. He said that the plan was paid for by the people
and approved by the City Council. He said it had been the
merchants' guide through the years of strife and development on
California. Avenue. He said that years had been spent striving
to improve the area. He felt that the development was the most
efficient fiscally sound project that the Council could approve.
He commended.. ,the staff for the work they had done, as well as
the developer`.' . He felt there had been plenty of study and that
the project did not need to go to, the Planning Commission. He
urged the Council to have the traffic barriers removed. and that
no more be added and he urged the Council to approve the plan.
Paul= Kahn, 4Z5 Grant, Appellant and representing the
Grant
Avenue Condominium Association, said he had gone through the
drawin s and felt that Grant. Avenue and Ash were like the holo-
caust in that they had disappeared. He said his group felt that
traffic would ire- coming from El Camino through Grant Avenue. and
Ash to go to California Avenue and, that the impact on Grant and
on Sherman had not been addressed. He asked for consideration
of that .point
Geoffrey Thompson, 416 Oxford, had previously spoken before the
Council as an opponent of traffic barriers, but felt that if
this project was approved, the issue of traffic barriers would
come up again. He was certain that the residents of Evergreen
Park would want to be blocked from traffic and did not want to
see that happen. He felt much more study was needed of the
future try{'ffic patterns for the City due to increased traffic.
H.e was concerned about the traffic- congestion as well as the
commercial congestion in that area. He did not think there was
enough support services to accommodate the people that would be
coming in. He urged the Council to send the matter to the
Planning Commission for a comprehensive study .
Mayor Henderson announced that he would be departing soon due to
the fact that his area was the first to be sprayed with
Mal athi on tonight at midnight.
Vice Mayor Fletcher announced that she would be departing soon
due to the aerial spraying.,
Mayor Henderson announced -that Councilmember Fazzino, as
Chairman of the Finance and Public ,Works Committee would then
Chair the rest of the Council meeting.
Councilmember Fazzino felt that the Council needed to decide
whether they wanted to .finalize this issue tonight.
Councilmember Renzel felt the project was a very major project
and she thought the matter should be heard by the full Council,
and thought. perhaps it should be continued to another date at an
early hour so that it would be the first item on the agenda.
MOTION: Councilmember Eyerly moved, seconded by Klein, that the
meeting be adjourned to July 20, with this item to be first item
on the agenda.
Councilmember Fazzino said he would be out of town on July 20,
and suggested that perhaps the item could be heard at the
Council meeting to be held on July 14.
Councilmember Klein was concerned that appropriate notice could
not be received by the interested citizens and said he would ,_
agree with Councilmember Eyerly's motion.
Councilmember Levy preferred that the Council continue its
discussion and reach a decision that night.
MOTION TO CONTINUE FAILED by a vote of 6-3-1 as follows:
AYES Eyerly, Renzel, Klein
NOES: Bechtel, Fazzino, Henderson, Levy, Witherspoon
ABSTAIN: Fletcher
MOTION: Councilmember, Bechtel moved, seconded by Fazzino,
adjourn the item and the meeting until 7.:00 p.m., July 14.
Councilmember Eyerly announced he would not be able to attend
meeting on July 14,
MOTION FAILED by a vote
Fazzino voting>"aye."
6-3 with Klein, Witherspoon and
1 0 6 1
7/13/81
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MOTION: Councilmember Witherspoon moved, seconded by Eyerly,
to uphold the Architectural Review Board decision.
1
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Councilmember Witherspoon said she shared many of the neighbor-
hood concerns and was interested that they had united behind
them. She said the major concerns appeared to be crime, van-
dalism, traffic congestion, safety hazards, then density of the
project. She shared the traffic congestion problems. She asked
Mr. Noguchi when the Council would hear about the traffic study
in Evergreen Park. She felt that some of the citizens' frustra-
tion was that for almost a year the people had hoped the Council
would have a solution to their concerns. She realized Council
never would, but felt that the traffic study should be being
discussed.
Director of Transportation, Ted Noguchi , said that the report on
Evergreen Park was scheduled for late October._
Councilmember Witherspoon said that regarding an EIR vs. an EIA,
the purpose of either of them was to identify as much as pos-
sible all the possible ramifications for project, to help the
deci si onmaker s assure themselves that as many of the parameters
possible were being taken into consideration. She realized that
the neighborhood could dispute the traffic counts, and she felt
there was no point _ i n kidding themselves that anything built on
the site wound not affect traffic. She felt it was probably the
best plan the City could get as far as density and aethetics
especially since it was such a difficult site. She felt it
would eventually be a very good project and she would support
the ARB recommendations. She would support, when the planning
stages were begun, looking at the traffic implications for the
entire area, not just Evergreen Park, and would be very inter-
ested to see if the Council could work out a solution, but felt
it was a different subject.
Councilmember Eyerly agreed with Councilmember Witherspoon and.
said that the 45,000 of commercial square footage of the project
was negligible. He heard the neighborhoods talking about the
traffic, but it could not be the traffic from the commercial,
and he did not think the neighborhoods understood what was in
commercial and what was in housing, He said that everyone knew
that housing was desperately needed in Palo Alto and he felt
that the traffic flow ° for the housing and for the project per
se, had been adequately spoken to. He thought the use of the
railroad bridge for ingress and egress was ingenious and was
happy with that facet of the project. He did not think the
traffic flow as expressed by the neighborhood was any different
that what Council had heard from all neighborhoods whenever
there was any type of a housing project contemplated. He would
support the ARB's decision.
Councilmember Renzel realized staff had worked very hard on the
pi oject, but felt that some significant questions had been
raised. She questioned the traffic figures used in assessing
the project and thought there were questions about how the traf-
fic at the intersections would behave. She said that on the -map
on' the traffic there were some arrows which showed the ,ingress
and egress from the . project, but that some of the new ingress
and egress directions crossed over existing traffic patterns in
such a way as, to cause significant traffic interruptions. She,
said the entrance to go onto the ra>i 1 road bridge had to cross
Park Boulevard approximately where the -traffic trying to get
onto Oregon Expressway had to cross over a bicycle lane to get
over into the right hand lane and turn. She wondered how addi-
tional cross traffic in the area would react with the traffic'
and thought the issue had not been addressed. She felt the same
was true on the area where people came up off Old Oregon to
Birch. She said that on Sheridan there was a traffic route
shown to cross Sheridan and go out to Page Mill. She did not
think that was _addressed. She felt that the questions had been
raised, and the project as shown on the scale model showed how
dense the project was, and as a building site she thought the
traffic questions could be addressed by minor adjustments in the
commercial space. She pointed out that the commercial -space was
only one -sixth of the project, but that it generated over half
of the projected trips from the project. She felt that a major
change in the traffic impacts of the project could be made by a
small reduction in the commercial space. She thought there were
significant reasons to refer the matter to the Planning
Commission for further information on the environmental effects.
She would oppose the motion,
Councilmember Klein said the proposal was difficult for him
because if he had been on the Council when the Comprehensive
Plan was being considered, he would have voted to change the
zoning of the property to a straight housing designation. He
felt that the zoning in the Comprehensive Plan meant a great
deal, and felt that an overriding obligation of the Council to
the people was one of fair play. He felt that the once the
zoning designation was on the property, everyone should be able
to rely on that. He did not think it would be fair to change
the zoning : at the late date when the application had gone so far
and there had been substantial investments and plans, etc. He
realized there could be overriding considerations and if he were
persuaded that the development would be the ruination of the
area, he would feel differently. He did not like the idea of
having commercial and offices in the area because it was not
helping the jobs/housing imba L ance. He also felt that a lot of
the people who had spoken against the project had spoken in
favor of the zoning previously. He felt the project was -well-
designed, and felt the developer had worked conscientiously. He
felt Ceunyi l should keep in mind that the project was . less than
the existing zoning would allow-eand felt it was a plus for the
community and for all of Palo Alto. He understood the traffic
concerns and was sensitive to them. He felt the traffic problem
was one that all neighborhoods faced in Palo Alto and for which
there was no easy answer, but thought that their best shot was
to be constantly vigilant and to monitor the problem and see
where it was going. He would support the ARB decision.
Councilmember Levy felt there were two significant issues, the
Evergreen neighborhood and the specific elements of the. project.
He thought the two major elements were the impact on traffic and
the project's own mass and scale as related to the California
Avenue area. He felt he was very, sensitive to the traffic flow
in that area. According to staff, about 80% of the rush hour
traffic came through the Oregon/Page Mill thoroughfare. and he
thought the ARB and the developer had handled that problem by
using the unused viaduct and giving a somewhat straight shot
into the southern entrance of the project. He said he had gone
over the various _turns and patterns and felt it was viable. He
felt the traffic impact would not be that substantial. He said
that was not to ignore that there :.would be an impact on
Evergreen, but he felt it could be handled by the Evergreen
Study. He commented that he agreed with the ARB that the com-
mercial entrywey looked hard and needed softening. He said that
the prospects down California Avenue and Grant Avenue were good
and the prospect down Sherman could be improved. He thought the
parking element : had been_, handled well and that there would be
less people using their cars than in a normal project. He would
support the ARB. recommendation and commended the ARB for the
amount of -time and effort given to the project as well as the
work they 'had done.
Counoilmember Bechtel agreed with her colleagues who had -spoken
and felt it was a difficult decision when so many of the
citizens' neighborhoods were affected. She felt the project had
been extensively mitigated, and that the difficulty for her was
that the Council had affirmed the zoning designation when the
Comprehensive Plan was reviewed in November. She would support
the motion.
AMENDMENT: Councilmember Bechtel moved, seconded by
Witherspoon, to refer immediately to the Planning Commission
that next year during the Comprehensive Plan revisions the
Planning Commission consider and evaluate the C -S zone where
Maximar t site i s.
Councilmember Fazzino was concerned that the EIR alternative
would bring delay and little else. He said that four years of
study were done for the Comprehensive Plan and he agreed. -with
Councilmember Klein that there. Would be some tremendous legal
problems if -a project were denied which did not utilize _a
-tremendous amount of the space on. the property. He thought that
the project was in and of itself generally sensitive to zoning,
density, needs for mixed use of housing and office use, and
sensitive to the needs of necessary mitigation. He pointed out
that not even an outstandingly -planned project occurred in a
vaccuum. He said there was a concern that the project was not
wrong in and of itself, but that it represented another in a
long line of projects which had negatively impacted local
neighbors. He thought the concerns were legitimate. He thought
the concept of studying California Avenue use was a good one.
He said he would like to see the Planning Commission conduct a
committee of the whole session to look at the issue. He
realized that the traffic was the key issue, and that the major
problem area was Evergreen Park. He was concerned about the
traffic impact and other_ possible projects along Park Boulevard
unless stringent mitigation measures were adopted. He supported
adoption of a traffic mitigation measure when traffic was
i ricreased beyond five percent or. so in the Park Boulevard area
He thought the measure must be implemented before private
projects were finalized.
AMENDMENT: Councilmember Fazzino moved, seconded by Renzel,
that a specific traffic mitigation plan be prepared and
submitted together with the Evergreen Park traffic study that
identified .actions to be taken in the Evergreen Park area
utilizing the $130,000 traffic mitigation payment to maintain
present levels of traffic on neighborhood streets, and that this
become a condition of formal approval.
Councilmember Renzel stated that she seconded Councilmember
Fazzi no' s amendment because she felt more study of traffic
mitigation was needed. She said that although $130,000 sounded
like a lot of ,money, it would buy about one, signal and would not
address anything, more than that ..so that any further cost to
mitigate traffic would be a public cost. She thought that one
of the purposes of an EIR or a negative declaration, which sub-
stituted for an EIR, was to, make sure that all of the environ-
mental affects - were addressed and most particular iy in a neg-,
tive declaration= that was supposed to occur. She said she had
heard most of the Councilmembers say was that this and that
ought to be- :looked at. She pointed out that Council did not
have another opportunity to look at it, and that within the
confines of the project approval, there was no further project
review.
Ms. Renzel said she thought that even though the ,zoning and
Comprehensive Plan and land use designations were establ ished,
in a secondary review process, there was the EIR process, which
required the Council to look at major projects in "a,different
way than whether or not they simply conform to the zone in .:the
Comprehensive Plan. She did not think the Council was dealing
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7/13/81
with their responsibilities if they did not take.a thorough look
when a negative declaration was made on a project as major as
the one before them when so many Councilmembers were raising
additional questions. She said she was willing to have the
mitigation moneys be utilized to protect adjacent neighborhoods,
but thought there were not enough and that there would be public
costs associated with the project.
Director of Planning and Community Environment, Ken Schreiber,
said that staff would have no problem coming back to Council,
but that 45 days would present problems. He felt Council was
really talking about Evergreen Park traffic study, and staff
wanted to have enough time to work with the neighbors and work
with the California Avenue folks, to collect the data and answer
the questions.
Councilmember Fazzino said he felt that staff had most of the
data already.
Mr. Schreiber said there was a considerable amount. of data that
still needed to be collected regarding what cars were actually
using the areas,. haw much of that was through traffic, and how
much came -from the residential areas, multiple families, etc.
Councilmember Eyerly pointed out that there were two -issues
which..he did not think should be mixed. First, the issue of the
ARB decision before the Council on the project.; and, the traffic
mitigation for Evergreen Park was another item. He did not
think that staff should be rushed or that the two issues sh_uld
be tied together.
Councilmember Witherspoon was not sure what was to be accom-
plished by the amendment, She said that the developer was com-
mitted to the money, and she would like to see hoar some of the
traffic patterns worked out. She would prefer to have the
emendrnent _worded differently and would vote against it.
Councilmember Fazzino responded that one of the greatest con-
cerns about the project surrounded the issue of traffic. He
said that for a year, Council had been looking at the issue of
traffic in the Park °Boulevard, Evergreen Park area, and he did
not think that 45 days or two months was an excessive period of
time to get the information. He felt that by getting the infor-
mation and by Council's committing themselves to implementing
mitigation alternatives to what they believed was a good pro-
ject, would satisfy a number of the neighbors and address a
number of the concerns.
Councilmember Bechtel asked for clarification that the amendment
would be a general plan for what one might do assuming traffic
impacts as projected on the. various maps, but that it could be
changed if circumstances indicated that it were somehow
different than projected.
Councilmember Fazzino stated that he wanted to identify trigger
Writs and: thought the Council should commit themselves to _ those
points for payment of those dollars toward .mitigation.
Councilmember Renze-1 said she hadsome reservations about using
the entire mitigation money in one neighborhood, when there were
five neighborhoods affected by the project. She was not sure
what was going to be done with , the money in the interim. She
asked Councilmember Fazzino if the entire moneys were to be used
to do a study to solve the problems. in Evergreen Park alone, or
what.
1
Councilmember Fazzino said he would like the Council to pull
together the data prepared by staff about potential traffic
problems in the area and commit itself to trigger points when
the money was paid to the City by Mr. Reller and Mr. Cox and to
spend that money to alleviate traffic increases in that area.
Councilmember Renzel felt that the EIR and mitigated negative
declaration were supposed to have addressed those problems, and
she did not feel they had, and she would not second the
amendment to the amendment.
Bill Reller, one of the developers, asked for clarification that
if he understood the amendment, it was to come back with
considerations for mitigation of the traffic in Evergreen Park,
but it did not alter the decision in terms of the approval of
the ARB.•
Couriciluiember, Fazzino said that was correct.
Councilmember Klein did- not see what would be accomplished by
Councilmember Fazzi no' s amendment.
Councilmember Levy said he felt that all the Councilmembers were
sensitive, to Councilmember Fazzino's concerns to the Evergreen
Park neighborhood and the other neighborhoods affected by the
project, but that he was more interested in not setting ,ecerds
for time, -but setting records for the quality and excellence of
their work. He felt that when it came to Evergreen Park, that
would be a major and complex study, and set of projects to
implement. Evergreen Park when looked at was simply a series of
square blocks and one barrier at one point could not just be put
in and solve the problem. He said it would be a complex pr ob-
iem, and Council would probably have to go through what they
went through in Southgate. He felt several different mitigation
,techniques would have to be tried, and several would probably
fail, He did not think anyone's hopes should be raised that
with the snap of a finger, the Evergreen Peek neighborhood 'tr af=
f i y problem would be solved, but he was dedicated to doing i t .
AMENDMENT FAILED to have the Evergreen Traffic mitigation report
done at the same time as the Evergreen Traffic study, by a vote
of 5-2, Fazzino and Bechtel voting "aye,!! Henderson:and Fletcher
absent.
Councilmember Renz.el still felt that .there were major impacts
from the project which had not_ been addressed -by the -mitigated
negative declaration and she felt that one -sixth of the project
which was ,commercial , and was_, generating ov .
.er half of the traffic
was.significant.
AMENDMENT: Councilmember Renzel moved, that the commercial
portion of the project be reduced by 50% so that the traffic
would then be cut by 25%.
AMENDMENT FAILED for lack of a second.
Councilmember Witherspoon said that regarding the amendment to
have the Planning Commission review; the Comprehensive Plan with
regard, to the C-5 zoning,, it should be part of the: overall
review of the City.
Councilmember Eye i y a;;ked i f the amendment was ,for an immediate
study=, by the Planning Commission, or at year -_end,
Mr. Schreiber suggested that the review be included as part of
the review which would commence in December or January. He said
that the Commission had a long, detailed review of the site,
including an extremely vocal public hearing in which everyone,
including representatives of the surrounding neighborhoods, came
in and spoke in favor of the C -S zone and against multiple
family residential.
AMENDMENT PASSED to send the zoning questions to the Planning
Commission for consideration in accordance with their schedule
by a vote of 4-2-1, Eyerly and Witherspoon voting "no," and Levy
"abstaining," Henderson and Fletcher absent..
MOTION AS AMENDED PASSED by a vote to €-1, Renzel voting "no,"
Henderson and Fletcher absent.
MOTION: Councilmember Renzel moved, seconded by Levy, to
adjourn the meeting to 7:30 p.m. on July 20, 1981 (Items #8, 8A
original item #4, and #9 will be first on the Agenda.
MOTION PASSED unanimously.
A0JOURNMEN7
Meeting adjourned a; 12:12 a.m. to July 20, 1981.
ATTEST: APPROVED:
ayar