HomeMy WebLinkAbout1980-05-12 City Council Summary Minutes1
CITY
COUNCIL
MINUTES
ITEM
Minutes )f April 14, 1980
Consent Calendar -- Action Items
Regular Meeting
May 12, 1980
PACE
621
Backlog Parking Citations 6 2 1
Compensation Plans For City Employees 6 2 1
Federally runded Housing
Improvement Program (I1IP) 6 2 2
Appointment Of Certified Public Accountant --Audit 6 2 2
Council Approval Of Grant Funds For Residential
Conservation Program NCPA/City of Palo Alto
Agreement 6 2 2
Planning Commission Recommendation Re A ,Mec.anism
For Sale Of Surplus School Sites 6 2 2
Ordinance Regarding Dufies And Meeting Dates
Of Finance And Public Works And Policy
And Procedure Committees 6 2 3
Arastra Land/Interim Equestrian Trail System 6 2 4
Assistant City Manager
Resolution Amending Compensation Plan and Budget
Amending Ordinance 6 2 8
Initiative Petition —Downtown Park Korth Park
Dedication Ordinance 6 2 9
stint!ra Of Cerneid reti Of !TT Excavation 6 3 3
Continuance 0f , Consideration Of Smoking Regulations 6 3.3
��s�u
_ CoJ ii t--FTeter Concerning
-
Condominium Conversion 6 3 4
Request Of Mayor Henderson And
Councilmember Fazzino Re Proposition 9 6 3 9
C 11 ber Eyerly Re Fuming Reouests
For New City Services 6 3 9
Adjournment 6 4 0
•
CITY
OF
PALO
ALTO
6 2 O .
S/12/80
Regular Meeting
May 12, 1980
The City Council of the City of Palo Alto met on this date in the Council -
chamber r 250 Hamilton Avenue, at 7:45 p.m., Mayor Henderson presiding.
PRESENT: Brenner, Eyerly, Fazzino, Fletcher, Henderson, Levy,
Renzel , Sher, Witherspoon (arrived 7:50 p.m.)
ABSENT: t4one
Mayor Henderson announced there would be a bried executive session at
recess on litigation.
MINUTES OF APRIL l4, 1980
MOTION: C-ouncilrrrember Fletcher moved, seconded by Fazzino, that. Council
approve the minutes as read. The motion passed on a unanimous voice vote.
ORAL COMMUNICATIONS
None
CONSENT CALENDAR
Referral Items
None
Action Items
BACKLOG PARKING CITATIONS ((CMR:250:0)
Staff recommends that Council 1) approve the agreement providing for
processing of existing parking citation backlog; 2) direct staff to
report back with a recommendation for processing current citations along
with a financial analysis giving a cost/revenue breakdown.
AGREEMENT ADJUSTING PERCENTAGE
DISTRIBUTION OF FINES AND FORFEITURES
PENAL CODE SECTION 1463
COMPENSATION PLAN FOR CITY EMPLOYEES (CMR:252:0)
Staff �y,..a _ ;..w.__s, _...
r r,t,u�.ow!: th t , ►uc.:: cuca1'e- €he resolution for A rnOtnspeA44ns.
plan for zltslifieyi employees and t -compensation plan for confidential
employees, along with the resolution amending Section 1404 of the
City's Merit System Rules and Regulations to incorporate the memorandum
of understanding agreement. It is recommended that these resolutions
be adopted so that the agreement provisions become effective April 19, 1980.
Funding for compensation plan changes has been provided in the 1979-80 Annual
ILsdget, and the 1 -81 preliminary annual budget.
RESOLUTION 5792 entitled "RESOLUTION OF THE COUNCIL OF
Wirff fi ALTO AMENDING SECTION 1404 OF THE MERIT
SYSTEM RULES AND REGULATIONS,"
RESOLUTION 5793 entitled *RESOLUTION OF THE COUNCIL OF
firaTrirrE0 ALTO ADOPTINS A COMPENSATION PLAN • FOR
CLASSIFIED PERSONAL (SEIU) AND RESCINDING RESOLUTION 5665
AS AMENDED 8Y RESOLUTION 5702."
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RESOLUTION 5794 entitled "RESOLUTION OF THE
COUN IL OF TH' CITY OF PALO AL10 ADOPTING A
COMPENSATION PLAN FOR CONFIDENTIAL PERSONNEL
AND RESCINDING RESOLUTION 5666."
FEDERALLY FUNDED HOUSIN
(CMR:'44:0)
Staff recommends that Council approve the final credit agreement from
Crocker National Bank to leverage HIP Community Development Block Grant
(CDBG) 1980-81 funds; and authorize the Mayor to enter into the credit
agreement with Crocker National Bank,
AGREEMENT --Crocker National Sank
APPOINTMENT OF CERTIFIED
_:7016/1°
CONTRACT --AUDIT OF ACCOUNTS AND RECORDS
Arthur Andersen & Company
COUNCIL APPROVAL OF GRANT FUNDS
RAM (CMR:239:0)
a m o m to ragr n
Staff recommends that Council authorize the Mayor to execute the Northern
California Power Agency (NCPA) agreement with the City of Palo Alto for
grant funding of $25,000 and approve the budget amendment to add $25,000
in revenues and $19,000 in expenditures to the Resource Conservation
subprogram budget for Fiscal Year 1979.80.
ORDINANCE 3200 entitled "ORDINANCE OF THE
COUNCIL OF THE CITY OF PALO ALTO MENDING
THE BUDGET FOR FISCAL YEAR 1979-80 TO
PROVIDE FUNDS FOR THE RESIDENTIAL ENERGY
CONSERVATION PROGRAM AND TO PROVIDE
FOR THE RECEIPT OF GRANT FUNDS FROM THE
NORTHERN CALIFORNIA POWER AGENCY."
MOTION: Councilmmmember Fazzino moved, seconded by Fletcher, that Council
approve the Consent Calendar as read; the motion passed on a unanimous
voice vote.
PLANNING COMMISSION RECOMMENDATION
E SA1 EbF
trIsr
Mayor Henderson said the proposal
recommended by the Commission was
he wanted to include other points
the topic.
prepared by Commissioner Cobb and
innovative and well thought out, but
of view for Council's deliberations on
MOTION: Mayor Henderson moved, seconded by Eyerly, that Council direct
staff to include the recommendation of the Planning Commission and
Commissioner Cobb's proposed mechanism, in the City's negotiation for
school site purchases.
Mayor Henderson said that staff would, of course, analyze the method and
decide other or not to include it in their negotiations.
Counciimm tuber Renzel said she did not understani the relevance of using
Mr. Cobb's proposed mechanism in negotiations. It could be available,
however, as a potential tool, if the utility tax measure did not pass.
She preferred financing the property and keeping it in public ownership.
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511280
Mayor Henderson said that he had meant only that the mechanism was to be
available.
Councilmember Renzel said she regarded Mr. Cobb's proposed mechanism as
a financing method the City could use; she thought the City was negotiating
a price with the school district between the City's price and an R-1
density price.
Mayor Henderson agreed; staff would recommend the mechanism if it so
chose, when staff returned to Council with its analysis.
Councilmember Fazzino said he thought that if the motion passed Council
would have made a policy decision in favor of the approach. He did not
think the mechanism would work without very high density housing on one
part of the parcel. He preferred that the staff analyze the proposal
and bring it back to Council with comments and recommendations. He would
vote against the motion.
Councilmember Fletcher said she thought the ration should state clearly
that the proposal was to be analyzed t fore it was used in negotiations,
SUBSTITUTE MOTION: Councilmember Fletcher moved, seconded by Fazzino,
that Mr. Cobb's proposed formula be referred to staff for analysis and
returned to Council for a policy decision.
Vice Mayor Sher said the proposal was innovative, but there were assumptions
in it about higher density housing and neighborhood acceptance of higher
densities that went beyond the mechanism; the proposal seemed to suggest
that the City would become the owner of the property at fair market
value price and then, the City would take time to work out a price and
get a developer to build the housing, with the City using the proceeds
to pay the purchase price for the land. What happened if the City did
commit itself to buying sites, then found that the high densities were
not acceptable? He would like to see staff's comments on the assumptions
underlying the proposed mechanism. F1e thought the substitute motion did
give staff the direction to make that analysis and resultant comments.
Mayor Henderson said his motion had been made in its form so that staff
did not have to make a study then report to Council --staff could use the
mechanism if it chose to do so after it had been analyzed.
Councilm ether Witherspoon noted that if the City held the property for a
few years, as might be the case, the City would be liable for some
expenses. She would like to have the staff report on that.
Councilmember Levy said he thought the proposal called for the City to
speculate in land, and he thought that idea should be carefully weighed
by Council.
SUBSTITUTE MOTION PASSED: The substitute motion, that Council direct
staff to analyze Mr. Cobb's proposed formula and return to Council for a
policy decision passed on a unanimous vote.
ORDINANCE REGARDING DUTIES AND
MD tY Aft
MOTION: Chairman Fazzito introduced the following ordinance for first
reading and, seconded by Fletcher, moved its adoption by Council:
L I C WORKS
ORDINANCE OF THE COUNCIL OF THE CITY
OF PALO ALTO AMENDING PALO ALTO MUNICIPAL
CODE SECTIONS 2.04.240(a), 2.04.250, AHD
2.04.260 REGARDING THE DUTIES AND MEETING
DATES OF THE FINANCE AND PUBLIC VOUS AND
POLICY MO PROCEDURES COMMITTEES
623
5/12/80
Mayor Henderson noted that it was proposed that Policy and Procedures
Committee handle outside contracts; and he thought that since such
contracts were in amounts of $10;000 or more they should be handled by
the Finance and Public Works Committee.
AMENDMENT: Mayor Henderson moved, seconded by Witherspoon, that the
Finance and Public Works Committee handle outside contracts.
A discussion ensued as to the place of policy in expenditure, and the
place of expenditure in policy.
SUBSTITUTE AMENDMENT: Councii ber Fazzino moved, seconded by Fletcher,
that the classification of `outside contracts` be eliminated and that
assessment districts be handled by the Finance and Public Works Committee.
Councilmember Brenner said that, for example, Council had to decide if
it wanted to support various art functions, and that would become an
outside contract and required a policy decision before it got a financial
decision.
Mayor Henderson said that the substitute amendment did not take into
account the ordinance that now said that all outside contracts in amounts
over $10,000 went to the Finance and Public Works Committee. That
ordinance would have to be changed if the Policy and Procedures Committee
wanted some outside contracts go to it.
SUBSTITUTE AMENDMENT PASSED: The motion that "Outside Contracts" as a
listing be eliminated, and "Assessment Districts" be placed in the
Finance and Public Works Committee, passed on a unanimous vote.
ORDINANCE AS AMENDED PASSED: The ordinance, as amended, passed on a
unanimous vote.
ARASTRA LAND INTERIM
EM (CMR :243:0)
Mayor Henderson read the staff recommendations: 1) establish a free
public perimeter trail on the Arastra Property; 2) void all riding
permits issued by Arastra Limited, 3) require boarders to use the perimeter
riding trail and 4) approve the recommended boarding fee increase.
John Nagle said he resided in Santa Clara. He urged Council to approve
the perimeter trail -it would join the Portola Valley and Los Altos
trails.
Larry Faber, 3127 David Avenue. He said he thought the recommendation
for the perimeter trail should be followed. He had thought, in relation
to the recommendation that all riding permits be voided, that Council
had said some months back that it did not intend to do that. He did not
know how boarders, as required by the third recommendation, would get to
the perimeter trail, He thought that, because there were not many
owners of horses, they were being discriminated against. He thought
there might be an effort to eliminate horses from the Arastra property,
and he did not think Council had intended that. Regarding the fourth
recommendation to approve the boarding fee increase, he held that the 40
percent increase was too much, and that fees from the most expensive
boarding stables had been used as a base for comparison. He thought 10
or 15 percent would be a more reasonable increase.
J. Couperus, 13680 Page Mill Road, Los Altos Hills, He said he did not
think the staff recommendations suited Council's initial policy. He
said he inferred that the recommendations were based on wish for financial
gain rather than ecological conservation. He said it was not customary
to require fencing on both sides of a bridle path; he thought Palo Alto
624
5/12/80
was keeping the horses out because it could not afford the fencing. He
said he was permitted, through the vetting process, to use horse trails
at Crystal Springs, and he could clso ride trails at Wunderlich. He
asked that Arastra trails be made available for his and others' use,
just as the Los Altos Hills trails were available to Palo Altans.
Melissa Parsons, 225 Park Lane, Atherton, said she had boarded her
horse at the. Arastra property for 14 years. Cost comparisons were
misleading, she said; the stalls were not cleaned and food for horses
was not provided at Arastra: Food for horses, at $11 a bale, cost
about $60 a month. She egreed the caretaker, Mr. Bothwell, needed a
cost -of -living increase.
Counciimember Witherspoon said that this matter had been before Council
a year ago, and now a plan had been presented. She noted that damage to
trails would not take place in the dry season as it had in the wet
season. She thought it would be a neighborly gesture on the part of
Palo Alto to complete the perimeter trail that joined with trails from
Portola Valley and Los Altos Hills. She thought it would be wise to
keep the equestrians limited to about 150 Palo Altans for the coming six
months, then assess what effect that had had on the property. She discussed
the present and proposed trail system with Larry White, Director of
Parks and Recreation; no horses were to be allowed on the one -mile long
utility service road. Patrolling for Saturdays and Sundays and one
random day a week came to about t90. More patrolling would be needed
when the perimeter trail was opened. All the standards set forth in the
environmental assessment had to be met for the perimeter trail.
Ken Schreiber, Assistant Director of CoCommunity Planning and Environment,
said four mitigating measures had to be met in relation to the trail;,
though not in certain locations or certain routes. Proper trail servicing
was one such measure on portions of the trail which held moisture, or
during the rainy season. He said diversion of water, culverts or bridges
over streams and trail fencing were the other raitieators. Some of these
mitigations were required even in dry season.
MOTION: Council ber Witherspoon moved, seconded by Sher, that Council
direct staff to establish a perimeter trail, as recommended by staff and
as modified by suggestions on the field trip some Cou:zcilmembers had
taken on the property May 8, to give maximum privacy to the private
residence.
Councilor Renael said she was concerned about establishing the
specific perimeter trail route until the flood plain for the creek had
been outlined, and also that retained the scenic quality of the trail
running alongside the creek.
Wiliam lamer, City Manager, said staff would ascertain where the flood
plain would occur; the present plan was to keep the trail some distance
from the creek,
Larry White said the proposed fee schedule had been based on a survey of
other stable facilities; Arastra did not furnish a ring to ride in, and
there were other differences, and so the fees were somewhat different.
He listed some of the fees at other stables.
CounciImenber Fletcher ascertained that equestrians would reach the
perimeter path by way of existing routes that Mr. White described as
"entrance road" and "center road."
A discussion followed on maintenance needed to keep the roadways undamaged
by gorses. The interior roads were now in use as is, though, to meet
the environmental assessment, some work was needed before they could be
used by other than those presently boarding horses at Arastra.
Jackie Bressler, whose residence adjoins the Arastra property, said she
625.
5/12/30
i
had asked Larry White to keep the perimeter trail away from her house,
because it would have taken away the privacy. She said the perimeter
trail was more like a utility trail --a safe way to take a 5 -minute ride
to get a hamburger, without having to travel Arastradero road. She
thought that since existing trails had been in use for about 30 years
they could continue to be used --they were accessible through the meadow
pate. She thought a six-month trial withoet_nny. changes having to be
made for that period was the least expensive way for Palo Alto to try
out the system and assess possible impact on the land. She asked that
the trail not parallel the creek, because that spoiled her privacy.
Vice Mayor Sher summed up the information given thus far, saying he had
been an the field trip to the property and was conversant with the
trails being discussed. He thought the question before Council was the
differentiation between City and non -City residents, both of which
groups had passes to the property issued by the previous owner. Palo
Altans were now paying boarding fees, and were entitled to access, and
that is why it had been recommended that the passes be voided. The
proposal before Council was for an interim plan, and eventually there
would be mixed uses, perhaps some park use. He would like for non -City
people to be able to use the property, but that plan had to be worked
out. He hoped that would be soon.
Councilmember Brenner said she thought the difficulty of curtailing a
temporary use was illustrated by the discussion so far. She thought
interim lines `ended to become permanent. lines. She thought the City
should survey the /and so, it would be known definitely where the perimeter
fences should he placed, the boundaries of the City in relation to the
creek, and the like. She thought a discussion of a bridle path should
include discussion of bicycle and pedestrian trail for safety, because
the traffic was heavy at peak times,
Mr. White said staff could proceed with a survey without Council having
to pass a motion.
Mr. Zaner said that a survey of the area near the perimeter trail could
be done easily, there would be considerable expense to surveying the
entire Arastra property.
Councilmember Brenner said she understood that there was some question
as to whether or not the present fences were on the true property line.
She said that a trail fenced on both sides would leave a no-man's-land,
and she wanted to know the extent of that -.-hoer ash public property was
being cut off from the rest of the land by the portion of the trail that
related to the adjoining private property of the Bresslers, near the
creek,
AMENDMENT: Councilmember Brenner moved, seconded by Renzel, that as a
condition of the main motion, there be a survey of the land related to
the perimeter trail as it adjoined the private property of the Bresslers
and the creek. The amendment passed on a unanimous vote.
MAIN MOTION AS ENDED PASSED: The vain motion, that Council direct
staff to establish a perimeter trail as recommended by staff and as
modified by suggestions made by Councilmm e►rs who had taken the field
trip on May 8, giving maxims privacy to the private residence, with
the condition of the amendment related to making a survey, passed on a
unanimous vote.
Councilmember Witherspoon said that though it was late in the evening
she thought Council should consider the matter of the permits, because
it was horseback riding season. She said she would like to try having
route C used for the next six months.
A discussion ensued on how ouch would have to be charged for permits to
amortize those costs.
626
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Corrected
See Pg.681
6/9/80
MOTION: Councilmember Witherspoon moved, directed by Sher, that Council
direct staff to void all existing riding permits issued by Arastra
Limited, and set up a riding permit system as outlined in CMR:243:0,
according to qualifying criteria. Permits would terminate when the
rainy season began, and the permits would allow those with permits to
use the service road trail free. The only construction would be about
$2000 for mowing, and monitoring time estimated at about $7000, for a
total cost for the six-month period of about $9000. Further, staff is
authorized to issue 150 six-month permits at $45 each, to cover costs.
Cooncilrnember Brenner said that the main motion dealt with the perimeter
trail and making that portion of the land available to more people, and
this proposed motion concerning permits was for a special group of
people --she did not want to rove into a permanent plan.
AMENDMENT: Cooncilmember Eyerly roved, seconded by Fazzino, that the
fee for six-month horseback riding permits be changed to S60 so that the
expense would be covered. The amendment passed on the following vote:
AYES: Eyerly, Fazzino, Fletcher, Henderson, Levy, Renzel, Sher
NOES: Witherspoon
ABSTAIN: 8renner
PART ONE OF MAIN MOTION PASSED: The motion that Council void all
existing riding permits and sat up a riding permit system as outlined in
CHR:243:0 passed on a unanimous vote.
Vice Mayor Sher pointed out that Council was to monitor the proposed
horseback riding permit procedure on the Arastra property for six months;
if damage to the land was taking place Council might have to reverse its
action.
Ken Schreiber confirmed that ti,s environmental action was a mitigated
negative declaration and the environmental action, then, was to include
the finding of no significant environmental impact with the mitigation measures.
Mayor Henderson then said that the motion should include the mitigation
measures on page 9 of attachment C.
MAIN MOTION PASSED: The second part of the rain motion, that permits
gold terminate when the rainy season began, and those with permits
would be allowed to use the service road trail free, with allowed
construction to be $2000 for mowing, and about $?000 for monitoring,
with staff authorized to issue 150 six-month permits at $60 each to
cover costs, and the motion to include mitigation measures as given on
attachment C, passed on the following vote:
AYES: Eyerly, Fazzino, Fletcher, Henderson, Levy, Sher, Witherspoon
NOES: Brenner, Renzel
Mayor Henderson said Council could now discuss suitability of fees.
Councilor Witherspoon said a 40 percent raise in one month for
stabling fees was very high --sire suggested having the raise in two
stages.
MOTION: Councilmember Witherspoon moved, seconded by Sher, that Council
direct staff to raise the stabling fees by 20 percent at the present
time and 20 percent more in September. The motion passed on the following
vote:
AYES: Brenner, Eyerly„ Fazzino, Fletcher, Henderson, Renzel,.
Sher, iii therspooe
NOES: Levy
627
12
ASSISTANT CITY MANAGER
ITSTETRITPERTArtlf4PENSATION PLAN
MOTION: Mayor Henderson introduced the following resolution and ordinance
and, seconded by Fletcher, moved their adoption by Council:
RESOLUTION OF THE COUNCIL OF THE
CITY OF PALO ALTO ADDING THE POSITION
OF ASSISTANT CITY MANAGER. TO THE
MANAGEMENT COMPENSATION PLAN
ORDINANCE OF THE COUNCIL OF" THE
CITY OF PALO ALTO AMENDING THE
BUOGEI FOR THE FISCAL YEAR
1979-80 TO PROVIDE FUNDS FOR THE
POSITION OF ASSISTANT CITY MANAGER
Council,rerber Eyerly asked that City Manager Caner describe what the
duties of the Assistant City Manager would be, so that it would be in
the public record.
Mr. Caner replied the Assistant City Manager would deal with day-to-day
tasks related to Council agenda. Mr. Caner said that Council had asked
for long-range financial planning information, more data or improved
revenue forecasting, and work on long-range staffing problems related to
recruitment and training; he thought the City Manager's efforts should
go toward working an those objectives, and he did not now have time to
give them much attention.
Mayor Henderson ascertained from Mr. Caner that a "control point" as it
related to salary, was a point in the salary scale at which salaries
rose, or fell, based on performance evaluation --control point applied to
all management personnel.
Counci1m nber Levy asked why Mr. Caner was raising the matter three
months before the beginning of the next fiscal year.
Mr. Caner said he wanted to establish the position as soon as possible,
and the position would be filled from within the present ;rganization
for it offered a number of people with the capability of doing the job.
Transition time for that would be needed: for posting of the job,
interviewing, then wing someone from his/her present position. About
sixty days' lead time were needed for that.
Councilmember Levy said he preferred that the item be discussed in the
Finance and Public Works Committee, with discussion of salaries and how
the position fitted into the total operation of the City.
MOTION TO REFER: Councilmen er Levy moved, seconded by Sher, that the
proposed addition of Assistant City Manager to City staff be discussed
in the Finance and Public Works Committee.
Councilor Renzel ascertained that the salary for Assistant City
Manager would be an additional salary, and that he would report directly
to the City Manager, as did department heads. She observed that the
logical progression from Assistant City Manager would be to City Manager.
If that position did not come open the Assistant City Manager would be
likely to look outside the City for promotion, and '4...1 just hate to
lose our best blood. . . ."
Mr. Zaner agreed that had happened and could happen again.
Counci lmember Fletcher said she opposed the motion to refer to committee.
She thought precedent for Assistant City Manager was familiar and the
position had fallen vacant through passage of Proposition 13; there hads
528
5/12/80
at the time, been some agreement that at the discretion of the City
Manager the post could be reinstated.
Councilmember Eyerly agreed with Councilmember Fletcher and he thought
the City Manager should have_ the help; the salary had been in effect
before.
Vice Mayor Sher said he thought the motion to refer WAS made not because
the matter was complex but because there was some question about the
wisdom of establishing the position in the middle of a budget year. He
questioned adding the position just before the balloting on Proposition 9.
He favored following the orderly budget process. He favored referring
it to committee.
Mayor Henderson ascertained that the budget amendment proposed by Mr.
Zaner was in order to facilitate the transition process --the person
would work part-time in the former office and part-time in the new
office.
Councilmember Fazzino said he supported the addition of an assistant
city manager, but he did favor having the Finance and Public Works
Committee examine the position itself and make recommendations.
Mr. Zaner said that a resolution was needed establishing the position,
if he were to begin interviewing, or he could not legally begin recruitient.
Mayor Henderson said he would support the resolution, but he would hold
off on a budget ordinance until it was discussed in the customary budget
process. He would vote against referral.
Councilmember Levy said he thought Mayor Henderson's :method would subvert
the budget ;process because if Council authorized the position it would
have also committed the funds. "1 think the creation of the position is
integral to the budget process and it shouldn't be separated out."
MOTION TO REFER PASSED: The motion that the proposed addition of the
job of Assistant City Manager to City staff be discussed in the Finance
and Public Works Committee passed on the following vote:
AYES: Brenner, Fazzino, Levy, Sher, Witherspoon
NOES: Eyerly, Fletcher, Henderson, Renzel
RECESS TO EXECUTIVE SESSION:
Council recess to Executive Session, for the purpose of discussing
litigation, from 9:45 p.m. to 10:05 p.m.
INITIATIVE PETITION--
RK DEDICATION ORDINANCE
MrlirMATICK ORDTNAirr
Mayor Henderson said that Council had heard a great deal of public
testimony on this matter. At the present time it was Council policy to
retain the ten houses on the site with immediate dedication of the
parkland adjacent to Everett and Hawthorne. The petition that had been
filed proposed that the Palo Alto Municipal Code be amended to reserve
the entire block, for park, playground, conservation or recreation
purposes. Mayor Henderson said ti..t that evening Council could approve
the park dedication ordinance, or place the initiative on the ballot --
the normal date for the initiative to appear on the ballot would be the
General Municipal Election in November, 1981 election, though it could
be added as a special election at the November. 1980 general election.
Mayor Henderson said that since the topic had been heard so many times,
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5/12,80
he would request speakers to say only that they were for immediate
approval of the ordinance, or for election. One point to be considered
was funding; the Council could not seek and retrieve a utility users'
tax for this purpose, also, Council had made commitments about school
site properties which would require the proceeds of such a tax for
several years, and, if any proceeds were to be allocated to park uses,
Council had a longtime commitment to improvement of freer Park. Those
existing funding circumstances raised the question of, if the immediate
park dedication were favored, and funding would be delayed several years
at least before park development could take place, would citizens want
the houses removed immediately nr would they be willing to have the
houses remain.
Jim Baer, 213 Emerson5 said he resided at 152 Emerson as a renter and
owned the home at 213 Emerson. He said he was an attorney for Blase,
Valentine and Klein, and was on the board of directors of the Palo Alto
Housing Corporation. He spoke on the issues, he said, of park vs.,
preservation of low -and moderate -income housing, and he thought the
petition before Council with 2000 signatures made it clear that many
wanted the land for park. He thought the question's effect was Citywide.
He thought many people had signed the petition without knowing its
significance. He thought the petition led to the playing of a numbers
game, and that organization was taking the place of clear understanding
of what was at stake. He recommended that Council not endorse the
initiative by adopting the ordinance that evening, and instead place it
on the ballot for consideration in either 1980 or 1981.
Tony Badger, 381 Hawthorne, said that the petition had stapled to it all
of the information;that was required by law. Mr. Baer could have had.a
'clear understanding' had he read it. He continued: two of the nine
houses on the park site were boarded up and were vacant for the past six
months. He reviewed the facts of the relocation of the family presently
living at 426 Hawthorne, a house scheduled for demolition. He said only
four of the tenants in the houses were low-income. The other houses
rented at market rates. He said that tenants of the houses had been
displaced ten years ago with the reason given that the site was to be
developed for a pirk; and that had still not been done. He observed
that three City -owned houses had been demolished last year to make way
for a parking lot: which had most priority --parking lots or parks?
Jean Diaz, Real Property Administrator, said that one of the three
houses recently demolished had been a residence, the other two were the
Peace Center and a thrift shop.
Robert Fran, 1. 0i•ng, said he lived at 604 Everett. He said he
thought Council had supported measures to maintain a good quality of
life in Palo Alto. He thought residents in North Palo Alto had chosen -.
that area for _ i t'i urban quality.
To Reid, 151 Waver -ley, said he faorwred park dedication and he urged
CnurPc41 th adopt the ordinance make .6h park which had . _
----'� _ .�....�.o- -a...� - ordinance to make - LiT� park, _ had been promised
twelve years ago, a reality. He favored developing the proposed park
with funds from a utilities users' tax.
Kent Mitchell , 550 Hamilton, said he was the attorney for the committee
that circulated the petition. He said theCitycharter had provisions
regarding initiatives. City law, not state law, covered initiatives,
and, according to his reading of the charter it was not clear whether
or not the initiative could be put on the November 1980 ballot as a
special election -charter language did not have the enabling words
permitting substitution of a special election for a municipal election.
He advised Council to look back on circumstances surrounding establishment
of other City parks, and to be sensitive to citizens now living on the
proposed park area, whose tenancies had to be resolved. He cautioned_
against patting off settlement of the issue longer than the life of this
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5/12/80
Councti1, because Section 8 of the :municipal charter allowed other Councils
to "un-dedicate" a park He suggested those things be done within the
next one and one-half years.
Ellen Byrne, 457 Kingsley, spoke for the Mid -peninsula Citizens for Fair
Housing. She said her organization urged the Council to place the
proposed ordinance on the ballot at a Special Election consolidated with
the November 4 general election. She thought Council should recognize
the need for housing rather than park use, ",..so that plans to rehabilitate
the housing can proceed."
John Fredrich, 421 Everett, said he thought Council could and should
dedicate the park and deal with the housing issue too,
Vice Mayor Sher read the following memo he had submitted to Councilmembers
that evening (.lay 12): "...the City Council has two principal options in
responding to the initiative petition regarding Downtown Park North: we
may adopt the proposed park dedication ordinance or we may place the
matter on the ballot at either the November 3, 1981 General Municipal
Election or at a consolidated with the November 4, 1980 general election.
As you know, my original vies was houses for a 15 -year period, after
which the entire block would be dedicated as a park. Under the present
circumstances, howeve-, -3 now think that the option of immediately
adopting the proposed Park Dedication ordinance is preferable to the
option of placing the matter on the ballot. Among the advantages of the
Council's adoption of the Park Dedication ordinance are: 1) such action
will avoid a divisive election at which parks will be pitted against
hoes;ng, and in which the neighbors and the Housing Corporation may well
find themselves as aJversaries; 2) immediate adoption of the ordinance
will settle the uncertainty surrounding the future of the houses, instead
of leaving the matter in limbo for six months to a year and a half,
during which time the houses will suffer further deterioration and
vandalism; 3) adoption of the ordinance instead of placing the matter on
the ballot (especially on the November 4, 1980 ballot) will avoid confusing
the issue of the proposed Utility users' tax, which is likely to be on
the November 4 ballot. Instead, adoption of the Park Dedication ordinance
will give the proponents of the initiative the incentive to work for
passage of the Utility Users' tax, which is proposed to be used for park
development and maintenance, as well as school site acquisition.°
Vice Mayor Sher said that if the Park Dedication ordinance were adopted
citizens should realize that the state of City finances was such that
the estimated cost of removing the houses of about $ .5 million could
not be undertaken. He thought present tenants should be informed of
abort Mw long the present housing would remain -so they could make other
housing arrangements.
MOTION. Vice Mayor Sher snored, seconded by Levy, that Council 1) adopt
the Park Dedication ordinance proposed in the initiative petition; 2)
direct staff to take action immediately to demolish those houses no
longer considered safe or in a habitable condition; 3) direct staff to
give tenants presently occupying houses that are not safe or habitable
the option of moving into any vacant houses on the block that are considered
safe and habitable; 4) direct staff, through the County Housing Authority,
to continue to rent houses that are safe and habitable until such time
as the City is in a position to ao forward with the development of the
entire block as a park, but in no event for a period of more than five
years, and also direct staff to take action before the end of the five-
year period to r ove the tenants and demolish any house that becomes
unsafe or uninhabitable; 5) direct staff not to renovate any of the
houses, but to perform minor repairs and maintenance needed to keep the
houses habitable, at a cost not to exceed the aunt of the rents received
from the houses; and 6) direct staff to report to the Council regarding
the lease status of the tenants and the impact of the above actions upon
the tenants.
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ORDINANCE NO. 3201 ENTITLED ORDINANCE OF THE
CITY OF PALO ALTO ADOPTED BY INITIATIVE PROCESS
ADDING SECTION 22.08.068 (DOWNTOWN PARK NORTH)
TO CHAPTER 22.08 OF THE 410 ALTO MUNICIPAL CODE.
Councilmeznber Fazzino said he strongly supported housing at the site
though he shared with northside neighbors the thought that there was not
enough parkland in that area. However he favored the direction of
Council for housing now and more parkland later. He did not want to
have credibility eroded through deploring lack of housing but at the
same time destroying housing units, though he agreed uninhabitable
housing should not be retained.
Councilm rber Fletcher said she was opposed to rescinding previous
Council decision to retain the homes for the next 15 years --where would
the people go if the homes were demolished? There were fow units vacant
in the area in the needed price range. She favored putting the ratter
on the ballot.
Councilmather Witherspoon said she thought the houses had become quite
rundown, and she thought it was time to create a park in that area; she
favored the motion.
Counci1rn ber Levy said that only four units were in the low- and moderate -
income housing ranger he thought occupants of the nine 'souses could find
other housing within the five years. He thought the motion was a balanced
proposal.
Mayor Henderson noted that it was nearly 11 p.rn. He would rave when
this item had been considered to bring the natter concerning condominium
conversion forward.
Councilmember Eyerly said he thought political astuteness required that
elements underlying Council's decision had to be considered: housing
people should not he pitted against park people, or the like. He thought
the parkland should be dedicated immediately He suggested that a
staged plan for developing the park could be started; for example,
leveling and turfing could come first, to give residents use of the
land.
Vice Mayor Sher said that Council er Eyerly's suggestions could be
put before Council when it was seen if the users' utility Lax passed. He
would like to look at that consideration after November.
AMENDMENT: Councilor Eyerly moved, secr.nded by Witherspoon, that
Council amend point 4 of the motion to read "two years" instead of "five
years.'
Councilmmber Reese; said s ;e had originally supported retaining housing
and dedicating the park later; she thought the petition showed people
wanted the park dedicated now, and she did not think Council_ shoe:'d hang
on technicalities. She thought that if an opportunity arose any or all
of the houses could be moved for use as be1r.-market-rate housing.
Vice Mayor Sher said he thought her idea was not inconsistent with his motion.
Counci lmr ier Renee] said she preferred the five-year limit for a period
in which the houses would be destroyed or removed. She thought that if
th* proceeds from a utility users' tax became available it would be
needed for site acquisitions. She we uld oppose the amendment.
Councilmember Brener said she had favored having the hosing for 15
years and dedicating the parkland later; she did not want divisiveness
for the residents, and the motion on the floor accepted conditions as
they are. She supported the motion but not the amendment.
632..
5/12/80
Mayor Henderson said that if Council backed down an its commitment to
housing on that site it would be expected to back down in other sites,
and he did not want to impart that idea. He said that those who signed
the petition had not been told about the funding problems in developing
the park, nor, probably, did they realize the impact a square -block park
would have on their neighborhood on weekends. He observed that to get
ten below -market -rate units, 100 housing units would have to be constructed,
and those ten units existed now at the park site. He thought Council
should determine, and hold to, a housing policy, though if the policy
were changed by initiative he would support it. He would oppose the
motion.
AMENDMENT FAILED: The amendment, that Council amend point 4 of the
motion to read "two years" instead of "five years," failed on the following vote:
AYES: Eyerly, Witherspoon
NOES: Brenner, Fazzino, Fletcher, Henderson, Levy, Renzel, Sher
AMENDMENT: Councilmember Levy moved, seconded by Eyerly, that Council
direct that when existing housing on the park site becomes vacant it
should not be re -rented within the five-year period except to individuals
who were vacating one of the other houses on the block.
Councilmember Renzel said she thought it was best to demolish or move
the houses when the City was ready to start developing the park, or in
five years.
AMENDMENT FAILED: The amendment failed on the following vote:
AYES: Eyerly, Levy, Witherspoon
NOES: Brenner, Fazzino, Fletcher, Henderson, Levy, Renzel, Sher
MAIN MOTION PASSED: The main six -point motion and the ordinance passed
on the following vote:
AYES: Brenner, Eyerly, Levy, Renzel, Sher, Witherspoon
NOES: Fazzino, Fletcher, Henderson
CONTINUANCE OF CONSIDERATION
PrffirnavATT
MOTION: Councilmember Witherspoon moved, seconded by Fazzino, that
Council bring forward for continuance the matter of excavation of the
ITT prnporty: The ,Minn paceatt on a ,realms es vote.
MOTION: Councilmember Witherspoon moved, seconded by Fazzino, that the
matter of excavation of the 1U property be continued to the meeting of
May 19.- The Fret ion passed on a unanimous voice vote.
CONTINUANCE OF CONSIDERATION
MOTION: Councilmember Fletcher moved, seconded by Renzel, that Council
bring forward for continuance the matter of smoking regulations. The
motion passed on a unanimous voice vote.
MOTION: Councilmember Fletcher moved, seconded by Renzel, that Council
continue the matter of smoking regulations to May 19. The motion passed
on a unanimous voice vote.
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REQUEST OF COUNCILMEMBER FLETCHER
curicaRY i tOT OMINI 'bNnSIbN
MOTION: Councilmember Renzel moved, seconded by Henderson, that the
matter concerning condominium conversion be brought forward for consideration.
The motion passed on a unanimous voice vote.
Vice Mayor Sher said that since he was an employee of Stanford University,
which owned the lard on which Oak Creek apartments stood, he would not
participate in the ensuing discussion. ( He asked that his vote be
recorded as being against Proposition 9 when that matter came up. ) He
left the meeting at 11:05 p.m.
Councilmember Witherspoon said she had been advised not to participate
in the ensuing discussion. ( She asked that her vote against Proposition
9 be recorded..) She left the meeting at 11:05 p.m,
Roy Abrams, City Attorney, said he lived at Oak Creek and so he would
not participate; Don Maynor Senior Assistant City Attorney would work
with Council on this matter.
Councilmember Fletcher said that in 1974 the Council had passed an
ordinance which "...severely restricted the conditions under which
apartments could be converted to condominiums --that resulted in a gradual
reduction of the rental housing stock in the City and a great concern
that gradually the rental housing stock would be lost." She said that
at issue that evening was a section of the ordinance permitting conversion
of apartments if two-thirds of the tenants agreed to the conversion.
The purpose of the ordinance had been to preserve rental housing stock,
and in the minutes of September 30, 1974, an amendment, prior to second
reading of the ordinance, had been proposed by then-Councilmember Henderson,
that the words be added: "...and signify their intention to purchase
their unit to community housing" and in the next paragraph "...such
desire and intent shall be indicated." A vote had defeated inclusion of
the words, since tae ordinance was for second reading, and it was regarded
as too late to introduce a new thought. Councilmember Fletcher said she
proposed now that the ordinance be changed to make clear that those
tenants who vote in favor of conversion also indicate their intent to
purchase. She said that the proposal to convert Oak Creek apartments to
condominium units had brought the matter of the ordinance to the fore.
At Oak Creek it was proposed that tenants be offered lifetime leases for
then to agree to the conversion. She said she would like the discussion
to center on the merits of the ordinance and what Council wanted the
ordinance to accomplish.
MOTION: Councilmember Fletcher moved, seconded by Renzel, that Council
direct the City Attorney to prepare an amendment to the condominium
conversion ordinance that required that two-thirds of the occupants
affected clearly indicate their intention to purchase their units in
order for the conversion to take place.
Councilmember Renzel said she would like to hear from staff also about
the implications of such an addition,
Councilmember Fazzino asked Mr. Knox how many apartments there are in Palo Alto.
Naphtali Knox, Director of Planning and Community Environment, said he
recalled that in April 1978 there had been -7500 apartments and about
1000 condomi ni!mts . He thought about 800 condominiums were new. Included
in the number of apartments were those that were subsidized, such as
Lytton Gardens and Webster Wood. He thought that one conversion of a
three unit building had taken place within the past three years. He did
not recall any problems in connection with implementing the 1974 ordinance.
Councilmember Levy asked if it was legally deffensibla to offer a lifetime
lease since the apartment house itself might change ownership.
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5/12/80
Don Maynor, Senior Assistant City Attorney, said that unless there was a
provision in the leasehold that said that upon sale of the property the
lease would terminate, the purchaser of the property took it subject to
the outstanding leases. He noted that if the lease for the land upon
which the Oak Creek apartments stood were only for a few years it would
be physically impossible to give a lifetime lease --he was not familiar
with the arrangement Oak Creek had with Stanford.
Joe Lewis, 1618 Willow Road, said he had practised law in Palo Alto for
28 years. He represented the Oak Creek Tenants Action Committee; he was
chairman of its executive committee. Mr. Lewis said that after the
Cornish and Carey proposal for conversion some of the residents had
circulated a proposal among the 750 units, and about 600 were contacted.
About 400 renters said they were opposed to condominium conversion.
Subsequently Cornish and Carey had undertaken 34 meetings to sound out
tenants, and part way through the meetings, in answer to the considerable
resistance to the conversion, had brought up the concept of a lifetime
lease. Many owners had found that acceptable. particularly if they were
long-time tenants of the apartments, because lesser increases in rent
were made to those who renewed year after year. Mr. Lewis said that
from his having lived there for 11 years his apartment was rented to hire
for about 1200 less than if he were to become a new tenant. With those
advantages in mind Mr. Lewis asked Cornish and Carey if the offer of the
lifetime lease were going to be made to all tenants, or only to those
tenants who consented to the condominium conversion. He had been told
that all tenants would be offered the lifetime lease. Mr. Lewis said
that the 38 -year term remaining on the master lease had to be negotiated
between promoters of the conversion and Stanford. Mr, Lewis said Stanford
had a policy of renting for only 51 years. Scott Carey had told Mr.
Lewis that he would try to get a fee -equivalent from Stanford. The
offer of the lifetime lease had de -fused some of the opposition. The
organization he now represented had been formed, then, to provide all
tenants and potential buyers with information and financial analyses to
assist in decision -making, and to improve, if possible, the terms of the
lifetime lease by providing the promoter with technical data on the Cost
of Living Index. His organization was not for the purpose of negotiating
terms or price with Cornish and Carey, and it was for the purpose of
encouraging openness and disclosure. Mr. Lewis said that the ordinance
as it was now written was in conflict with the goals on.'ensing as
stated in the Comprehensive Plan.
Bernard Buchholz, 1618 Willow Road, said he had worked in real estate
development for 30 years in Chicago, with such projects as condominium
conversion. He said that the offering of a lifetime lease to those who
intended purchase of their units did not reflect the intent of the
ordinance. In fact, he said, it subverted the intent. A lifetime lease,
which was subject to an escalation clause tied to a cost -of -living rate,
made cost! in excess of current market ;rentals, and his rcne was substantially
higher than that of the precedinn speaker. The lifetime lease was not
transferable, and the unit couid not be sublet, and terminated when the
owner/tenant vacated. Most of the lifetime leases were to elderly, and
so a substantial humber of rental units would have been removed from the
market within a relatively short length of time through their death. He
thought that to correct that- Council should adopt the amendment proposed
by Councilmember Fletcher.
Ellen Byrne, 457 Kingsley, said she spoke for Mid -peninsula Citizens for
Fair Housing (MCFH). Her group did not favor the proposed condominium
conversion. Experience in nearby communities showed that it was likely
that the 700 Oak Creek units would be converted. Removal of rental
units caused great hardship and reduced choices for renters. She asked
that the consent -to -buy provision be removed from the ordinance.
Councilmember Levy e$certained that MCFH wished to have the. two-thirds
agreement to buy and two-thirds consent to convert be eliminated from
the ordinance.
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5/12/80
1
S
Donald M. Logan, 1380 Oak Creek Drive, said he was an attorney. He
favored the amendment to the ordinance. He said one kind of prove toward
conversion would arise from availability of units; the other would be
based upon the two-thirds provision, and that required a vote. He said
that with the ordinance as written the data related to cost of units,
number of units and the like, did not have to be given to voters for or
against conversion before they voted. He thought the proposed amendment
made that orderly procedure possible. Without the requirement for that
data a loophole was created --the promise of a lifetime lease was made
available only to those a,ho consented to conversion to condominiums.
Councilmember Levy asked about truthfulness among those stating they
would buy a condor ir,ium,
Mr. Logan said that one could state he/or she was going to buy a unit,
but not really intend to do so --he did not know of any penalty that
could be brought to bear, and the lie would have its effect, nonetheless.
Louis Fein, 1540 Oak Creek Drive, said he was on the executive committee
of the Oak Creek Tenants Action Committee and has lived there for eight
years. He said he thought the 1974 condominium conversion ordinance was
flawed. He said he thought the amendment to the condominium conversion
ordinance now before Council should be passed independent of considerations
of the proposed Oak Creek conversion. t!e said "lifetime lease" was a
phrase, not substantiated by specifics; the proposal to sell had also
been "rather vague.' Mr. Fein referred to documents of July 18 and May
1, 1974, and April 17, 1978, written by City personnel, on the subject
of conversions. Oak Creek apartments were, he said, currently assessed
by the County at $16,452,906. The unofficial proposed condominium price
for one of the smallest Oak Creek units had been S70,O00-'about S130 per
square foot. At those prices the total price of all the units would be
$89,514,490. He thought "...it a reasonable speculation, that the
sponsors would oppose amending the condominium conversion ordinance,
because mending it would put at risk, for the firm of Cornish and Carey
and Oak Creek owners, a sum of $73 million." If the current ordinance is
not amended and lifetime leases are accepted by tenants, condominiums
would be created but would be occupied by 1 ifetime tenants. He said
that with such a low vacancy rate as existed condominium: conversion
should be discouraged, perhaps not allowed at all. He suggested Council
could even consider a moratorium on condominium conversion, but his
committee was asking not for a moratorium but for Council to amend the
present ordinance. Condominium conversion brought increased taxes and
also carrying costs, but no increased services for renters. The apartments
were built for apartments, with common plumbing, walls, floors, and
ceilings, and they were not built to be separately owned and privately
used housing units.
Scott T. Carey Cornish & Carey, 180 University Avenue, refuted Mr.
Fein's statements on costs per square foot of Oak Creek. Mr. Carey
said the 1974 ordinance had had a restrictive effect on condominium
conversion —in seven years only three apartments had been converted.
His firm had proceeded in good faith with its proposals on the base of
the ordinance, and he thought to change it now, "-in midstream would be
unfair." The question of whether or not the ordinance should be revised
for the future, and not what happened in 1974, was the question before
Council. He said he thought one of the flaws of the ordinance was that
two-thirds of the tenants could disenfranchise the other third; his firm
had said, in making the conversion proposal, was that there would be no
evictions at Oak Creek. The tenants who wished to continue to rent
would have the guarantee of the lifetime lease that would have rent
control provisions. He reviewed current proposed and present legislation,
and repeated that Cornish and Carey had said "no evictions." He said
the two-thirds provision shifted control "...to a handful of tenants who
will drive the prices down, and the result will be either the end i ng of
-636
5/)2/80
Corrected
See Pg.681
6/9/80
the project or dealing with tenants on a cost oasis to the disenfranchisement
of the tnird of the tenants who wish to rent." Mr. Carey said Mr. Fein
had suggested in a letter to other tenants that they hold out "for a
larger piece of the pie." He suggested Council could monitor the proposed
conversion, and only with conversion, he said, could prices be brought
down to affordable amounts. Those prices had not yet been told to the
present tenants, and Mr. Carey thought they would like the prices. He
suggested Council could table the matter while it monitored the conversion;
Council could bring the matter back whenever it wished.
Dick Valsh, former dean of men and associate dean of the medical school
at Stanford, said he resided at Oak Creek. He thought the lifetime
tenancy offer was "more than fair." He said he had received no notice
of the meeting tenants at Oak Creek had held. He hoped Council would
table the matter and give Oak Creek residents more time to evaluate the
proposal. He thought the realtor's offer so far had been fair.
Dr. Samuel B. Ziegler, Professor Emeritus, University of San Francisco,
said he had resided at Oak Creek for three years. He said he had started
a petition asking tenants at Oak Creek if they favored conversion, and
46 percent of those signing had said they did not favor it. He said
many residents were retired and had hoped to spend their last years at
Oak Creek; he thought Council's duty was to assure rentals for people
who could not afford to buy condominiums but had no place else to ao.
Melton Worth, 1736 Oak Creek, observed the irrevocability of an offer to
buy on the part of a tenant, and also he questioned how Mr. Carey could
make an offer to tenants when he was not an owner --offers not in writing
were not legally binding. Pe said he felt he did not have the bargaining
power held by Mr. Gerson l;akar or Scott Carey, and he would like to have
some provision its the ordinance (living him, perhaps as a member of group
with other tenants, some bargaining power.
Councilmember Reny -1 said she had seconded the drafting of an amendment
so that, with a staff report on the implications of that, Council could
better discuss the modification. She thought it would be good to discuss
it independent of the Oak Creek ratter.
Councilmember Eyerly said mach time and effort had been put into the
proposed conversion. Ideally it offered an opportunity to tenants to
become homeowners, but he did not know how it could be carried through
without information on prices --he thought prices would come in time.
SUBSTITUTE MOTION: Councilmember Eyerly moved, seconded by Fazzino,
that the matter of amendino the ordinance on condominium conversion he
continued for 90 days.
Co'�nei1ne'ber Leey said he thought C u 'C l's policy on conaominium
conversions and tenant safeguards were the two matters before Council.
Councilmember Levy's ensuing elaborations on those two points were cut
off on the tape of the Council meeting as the tape was renewed-
Councilmember Brenner observed that it was easier to refinance the 700
units than to sell the building as a single unit. She thought an ingenious
proposal would be needed to make a condominium conversion sound like a
good deal. She said she would like a staff report on a "...barebones
ordinance that will amend our present ordinance to allow condominium
conversion when and only when our Palo Alto vacancy rate exceeds 3
percent." That provision, she said, would eliminate the matter of the
two-thirds vote for conversion.
Councilmember Fazzino said he would like to consider amending the ordinance
without the impact of the proposed Oak Creek conversion. It was not
appropriate for Council to weigh the merits of the Oak Creek proposal.
The 1974 ordinance had been aimed at protecting existing tenants of
637
6/12/8
apartments. He thought that the ordinance had been effective --no major
problems had emerged in relation to it. He was willing to have a proposed
amendment drafted by staff. He supported the substitute motion for -
continuance for 90 days. He would oppose a motion to change the ordinance
at this time.
Coun:ilmember Fletcher said she opposed the substitute motion. The
reason the ordinance had not been a problem up to now was that condominium
conversion was new, but she thought it would gradually become a problem
and the total rental housing stock in Palo Alto would diminish. For
example, the 759 units at Oak Creek were a considerable number, Units at
the income bracket of tenants at Oak Creek were a significant part of
the rental stock. She had heard that only about. 5 percent of the local
population could afford to purchase housing, but jobs in the area were
increasing in number every year.
Mayor Henderson said he had been a member of the 1974 Council that had
passed the condominium conversion ordinance. He recalled the intent of
the 1974 ordinance, which had been construed as requiring agreement by
two-thirds of apartment residents to convert. Current law might protect
existing tenants, but in lower cost apartments, needed by younger people
who might be moving around, conversion to condominiums would mean loss
of moderate -income apartments. He said he would oppose the motion to
continue, and ask that staff give plusses and minuses of the alternatives.
William Zaner, City Manager, said he understood that the motion now
before Council would continue the matter for 90 days; afeer that time
Council would direct staff further, and staff lould do no analysis in
the interim.
Councilmember Renzel opposed the continuance. She thought that whether
or not the ordinance had a two-thirds consent or two-thirds agreement to
buy provision, there was a possibility that condominium conversion a:ou1d
still take place. She thought it would be good if staff would address
the question about possible mitigation measures that might be attached
to subdivisions that would mitigate both the impact on current tenants
and loss of rental housing.
Corrected
See Pg. 681
6/9/80
SUBSTITUTE MOTION FAILED: The substitute motion failed on the following vote;
AYES: Eye, ly, Fazzino
NOES: 8rsnner, Fletcher, Henderson, Levy, Renzel
ABSENT: Sher, Witherspoon
Counc1)member Fletcher -said that in her motion directing the City Attorney
to prepare an amendment to the condominium conversion ordinance there
should also be a ydraft of an amendment stating that conversion could
take place only tha rental vacancy rate in Palo Alto
., j _....--.�.__ �,... - rental T "" T4.laRtiiv_� i ii Li -v 171- = Q LtJ l[ 1 L4' L"A(�C�il`J 3
percent, and their relation to goals as stated in the Comprehensive
Plan, along with possible mitigating measures that [night be attached to
subdivisions.
A discussion ensued as to when staff could and should return with the
draft amendments; Mayor Henderson said sometime in June would be suitable.
MOTION PASSED: The motion, that Council direct the City Attorney to
prepare a draft amendment to the condominium conversion ordinance that
required two-thirds of the occupants affected to indicate clearly their
intention to purchase their units in order for the conversion to take
place, and a draft amendment stating that conversion could not take
place unless Palo Alto's apartment vacancy rate exceeded 3 percent, or
638
5/12/80
two-thirds cf the occupants agreed to the conversion, along with ideas
on possible mitigation measures that Oght be e ttached to subdivisions
that would mitigate both the impact on current tenants and loss of
rental housing, and the congruence of those amendments with the stated
goals of the Comprehensive P1ao, to return to Council sometime in June,
passed on the •`ollowing vote;
AYES: Brenner, Fletcher, Henderson, Renzel
NOES: Eyerly, Fazzino, Levy
ABSENT: Sher, Witherspoon
Councilmember Levy left the meeting at 12:45 a.m. and did not return.
Rf iEST OF MAYOR HENDERSOM[ AND
ITION 9.
Councilmember Fazzino said he and Mayor Henderson were concerned about
the possible devastating effect of Proposition 9 on both City governments
and school districts here in California, and wanted the Palo Alto City
Council to go an record as opposing it. He regretted the possible
effect of passage of Preposition S could not be felt at the federal
level.
Corrected
See Pg.681
6/9/80
MOTION: Councilmember Fazzino moved, seconded by Henderson, that Council
go on record es opposing Proposition 9.. The rnotyon passed on a unanimous
vote, Councilmembers Levy and Witherspoon and Vice Mayor Sher absent:
(Couoci1members Witherspoon and Sher recorded their support of the
motion earlier in the meeting.)
COUNCILMEMBER EYERLY RE FUNDING REOUESiS
Councilmember Eyerly said a cnmunication signed by City Manager Zaner
and Community Services Director Carleen Bedweil, with the information
that staff would solicit proposals from community organizations that
wanted to get help in funding from the City. Councilmember Eyerly said
he thought Council should talk about that --he didn't know where the
money would cage from.
Mr. Zaner said that the topic could be put on the agenda for discussion
at a later time. Some groups had said that they would like to have
access to City funds as other groups seemed to have and so they had
asked how they could get on the budget. Mr. Zaner said he had suggested
that these other groups submit proposals, as those now receiving funds
had done.
Mavor Henderson ,.es $_r$ - he _ had been one -of -those recommending that Colic 1 1
revise that exclusionary policy, he did not think some organizations
should be funded and others ignored.
Councilmember Fazzino said he did hot mind having the budget examined,
but he was concerned about the amount of outreach that was done, -- - ---
Councilmember Brenner said she thought it was important to make sure
that not just "an inner circle of groups have funding help. She, too,
was concerned about the amount of advertising to be done for outreach.
Councilmember Fletcher said she thought that people thought the City,
following passage of Proposition 13, had given the message that it would
entertain no new proposals, and that was why the ads were going to be
run.
Councilmember Eyerly said he thought it would be best to have staff tell
people who contacted them about s itting proposals, rather than through
advertising.
ORAL COMMUNICATIONS
None
ADJOURNMENT
MOTION: Councilor ember Fazzino moved, seconded by Fletcher, that Council
adjourn. The motion passed on a unanimous voice vote, Councilmembers
Levy and Witherspoon and Vice Mayor Sher absent.
Council adjourned at 12:52 a.m.
AFFiR1 2 /' APPROVE:
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5/12/80