Loading...
HomeMy WebLinkAbout1978-09-05 City Council Summary MinutesAdjourned Meeting September 5, 1978 ITEM PAGE Executive Session on Personnel Matters 1 2 5 Request to Move Item 19 Forward 1 2 5 Request of Cauncilmembers Sher and Witherspoon re Allocation of Space in Veterans Building to Humane Society and Other Organizations 1 2 5 Request to Dove Items 18(b), (c) and (e) Forward 1 2 6 Der Creek/Arastradero Roads: Site and Design Review Application of San Tomas Investment Company 1 2 6 Hillview/Arastradero Roads Site and Design Review: Application of WSJ Properties (Boyd Smith) Arastradero Road Operational and Safety Improvements 1 2 6 187-189 Bryant Street - Tentative Condominium Subdivision Map Application of H.C.C. Inc., Robert W. Medearis 1 3 0 Recess 1 3 3 126 Traffic Team Progress Report - Referral to Finance and Public Works Committee 1 3 7 Unfinished Business 1 4 0 Reconsideration of August 28 Action re Recovery of Precious Materials from Incinerator Ash --Finance and Public Works Committee Recommends Approval with World Resources and CCS Mining Request of Councll r Fazzino to Refer the "P" Zone Element of the Zoning Ord l na nce to the Planning Commission For Review Oral Communications Adjournment 124 9/5/78 141 146 147 147 September 5, 1978 1 1 ADJOURNED MEETING OF A IE.I.ST 2$, 1918 The City Council of the City of Palo Alto met on this date at 7:45 p.m., in the adjourned meeting of August 28, 1978, with Mayor Carey presiding. PRESENT: Brenner, Carey, Clay, Eyerly, Fletcher, Henderson, Sher (arrived 8:45 p.m.) ABSENT: Fazzino, Witherspoon EXECUTIVE SESSION ON PERSONNEL MATTERS Mayor Carey announced that an Executive Session on personnel matters would take place September 12, 7:30 p.m. toward the process of choosing a City Attorney. Mayor Carey announced that Councilmember Sher had asked him to state that he had a conflicting engagement and would arrive later, and also that Mr. Sher would Not participate on Items 18(b), (c) or (e), due to conflict of interest. REQUEST TO MOVE ITEM 19 FORWARD Mayor Carey said he had received the matter concerning the use of George Sipel, City Manager, said for discussion at some length in a request from Axel Johnson asking that the Veterans Building be moved up. that the general subject was scheduled the September 11 meeting. MOTION: CouncilmeMber Brenner moved, seconded by Fletcher, that Item 19 be moved up on the agenda for purpose of continuance. Councilmember Brenner observed that since the matter had been placed on the agenda by Councilmenber Witherspoon that continuance would be appropriate. Council r Clay said Item 19 on the Veterans Building had been -referred to the Policy and Procedures Committee; perhaps discussion during that meeet i ng might alter placing it on the September 11 meeting agenda. Mr. Sipel said that if construction on the building was to go forward referral would be appropriate. MDTIOM PASSED: The motion to move Item 19 regarding the Veterans Building passed on a uhanimous voice vote, Councllmember-s Sher, fazziho and Witherspoon absent. MOTION: Councilmember Brenner moved, seconded by Henderson, that consideration of Item 19 on the Veterans Building be continued to September 11, 1978. The motion passed on a unanimous vote, Councilmembers Sher Witherspoon and Fazzino absent. 125 9/5/78 REQUEST TO MOVE ITEMS 18jb), (c) AND (e) FORWARD MOTION: Councilmember Fletcher moved, seconded by Henderson, that Items 18(b), (c) and (e) be moved forward on the agenda. Councilrnember Brenner suggested that they be considered itt the order of 18(e), 18(b) and 18(c). Councilmember Eyerly asked why it was favorable to move them forward. He would vote against it. MOTION PASSED: The motion to move the items forward passed on the following vote: AYES: Brenner, Carey, Clay, Fletcher, Henderson ROES: Eyerly ABSENT: Fazzino, Sher, Witherspoon MOTION: Council ber Brenner moved, seconded by Fletcher, that Council consider parts (b), (c), and (e) together. Councilmember Henderson suggested that Council vote on each item separately. MOTION PASSED: The motion passed on a unanimous voice vote, Councilor hers Fazzino, Sher and Witherspoon absent. ARASTRADERO ROADS: The Planning Commission, by a vote of 4.O, 1 not participating, and the Architectural Review Board by a unanimous vote, recommend approval of the application of San Tomas Investment Company (Tom Ford/Tony Meier) for Site and Design Review for property located at Deer Creek/Arastrader Roads. The Planning Commission, by a vote of 4-0, 1 not participating, and the Architectural Review Board by a unanimous vote, recommend approval of the application of WSJ Propert'+s (Boyd Smith) for Site and Design Review for property located at Hillview/Arastradero Herds. T _. ROAD OPERATIONAL Corrections, pages 126 - 130 see page 2b4. Naphtali Knox, Director of Planning and Community Environment, projected a transparency on the C€ unci lchamber wall, on which he had marked the places referred to in the matters before Council. On (c) regarding the WSJ Properties site, the City of Palo Alto and Stanford University had a contract in which Stanford University agrees to widen Arastradero Road at designated points in order to provide a safer road. Artemis Ginzton, 28014 Natosaa Road, said that she saw the road as a "golden opportunity* to achieve one of the major goals of the Women's Workshop for Regional Paths and Trails, to provide a safe, non -vehicular route along Arastradero Road from Palo Alto out to the Foothills. She hoped that an easement could be worked out so that the existing two-lane bicycle path could be extended all the way to Highway 280, with an 125 9/5/78 equestrian trail to be included within the right of way. That possibility depended on Stanford's goodwill. She asked that the Planning Commission hold a public hearing. She thought Santa Clara County residents along with those of Los Altos should be included in helping to work out those details. Jay Oliff, 4110 Old Trace Road, Palo Alto, presented a petition signed by his neighbors asking that a public hearing with neighbors from both sides of Foothill Expressway, Los Altos Hills, Stanford, and Santa Clara County, be held in connection with the Deer Creek developments along with the proposed Syntex project. He said petition signers wanted the matter referred back to the Planning Corrission. emphasized that the road itself, and not the proposed buildings, were the natter on which signers wanted further study. None of them had krsee about the proposed changes until last week's agenda was published in the Palo Alto Times, he said, and so it had not been possible to take a census of the neighbors until the Sunday just past, on matters of increased traffic hazard near Deer Creek Road. Nearby residents would also like to have a continuous pathway for runners from Foothill to Purissima, an intersection traffic light at Deer Creek and Page Mill Roads and better traffic law enforcement west of Foothill Expressway. Mr. Oliff said that since residents had intimate experience with the area they felt they could contribute much in the planning stages. Dorothea Almond, 4135 Old Trace Road, asked that the matter of 18(e) on Arastradero Road Operational and Safety improvements be continued so that residents could consider mitigations or what might amount to as many as 2000 additional car trips a day in the area. Lois Boles, X345 Arastradero Road, said that preceding speakers had stated her position. W. J. McCroskey, 4158 Oak Hill Avenue, said that preceding speakers had stated his position. Betsy Bechtel, 458 Lowell Avenue, spoke for Gerry Steinberg, Santa Clara County Supervisor who was not able to appear. Ms. Bechtel read a letter from Ms. Steinberg, which is now on file at the City -Clerk's office, that read that because the co::►.ty was responsible for the subject portion of Arastradero Road she would ask that the matter be continued for at least two weeks, with possible approval of buildings '`.aking place earlier, contingent upon provision of reasonable mitigation measures. John Breedlove, Stanford University, said that Bill Messy, vice president of Business and Finance at Stanford, was willing to consider making allowance for some pathway system along Arastradero, and he would make a favorable recommendation to that effect to the Board of Trustees. Mr. Breedlove said he thought that matters other than that of the road could go forward at the present. Mayor Carey said that he been in contact with Ms. Steinberg and also the city manager of Los Altos Hills and, they expressed willingness to discuss plans for the road. They had also shown support for continuing bicycle and runners pathways; There had been plans for changes and improvements .on that road since 1969. Vice Mayor Henderson said he agreed with a couple of speakers who had suggested referring the matter back to the Planning Commission. MOTION: Vice Mayor Henderson moved, seconded by Fletcher, that Council refer the recommendation of the Planting Commission to approve the -application for Site and Design review of property at Deer Creek and Arastradero Roads to the Planning Commission, along with the matter of billvlew and Arastradero Roads, as well as approval of mitigated negative declaration re Environmental Impact Reports on both projects, and approval of the Sit and Design reviews. 127 9/5/78 Corrected see page 254. Naphtali Knox said a part of the mitigation was the requirement that the read be improved to avoid the safety hazards of additional traffic. Councilmember Brenner said that what Council was to accept as mitigation was already in effect --since 1967 it had been agreed that Stanford had responsibility toward that portion of road. She had read documents that described a 45 -foot right of way from the center of Arastradero northerly toward Stanford to be approved within five years, and the date of the document was 1969. She thought an EIR was required on the total effect of the proposed three projects of Deer Creek Road, Hillview Road, and the proposed, improvement at Syntex. She s41d she could not vote for a negative declaration at this time. She tho,rght all three projects should be considered together until the road problems were settled. Mr. Knox clarified on the map the portion of Arastradero Road where the contract with Stanford was in effect; he noted that there was always the option of letting the contract lapse. The contract had been extended by a memorandum of understanding until April, 1979 and staff had thought this was a favorable time to call for the safety improvements. On another portion ofithe road there had been no contract --provision, for safety measures had been worked out as mitigation, with Syntex paying for the widening of the road. Because Stanford was the underlying landowner, staff had worked out some of the same crossingsc The road was to be two lane, with five-foot bicycle lanes on both sides, with center two-way left -turn lane. A major objective was to have as little asphalt as possible. The Syntex plan had been approved by the Architectural Review Board, with the mitigating negative declaration approved also. It would not go to the Planning Commission because it was not in a Site and Design district. The negative declaration had been filed with the county as of August 29, 1978. Therefore the action on Syntex had been completed through the ARB. Councilmember Fletcher said that if Council required a full EIR the project would be delayed until the rainy season had begun. Plans called for immediate installation of a storm drain system, and she was reluctant to delay that. She asked staff to investigate the possibility of a traffic light at Deer Creek and Page Mill Roads, so that employees could use that access for° Highway 280, thus taking some traffic off Arastradero Road. Corrected see page 199. Counctl r Brenner said that she had read that the road building by Stanford was a condition of the granting of that subdivision, and that had been sometive prior to 1969, therefore it was not new. She raised the question of pedestrian and'equestrian access between the project and Furlssima, that related to the project. Mayor Carey reasoned that the motion assumed some improvement to Arastradero Road toward safety. He said he was satisfied that the negative declaration was legal and proper; he was reluctant to tell a developer that he had to welt until two other jurfsdictions did something. Los Altos Hi11s had been reluctant, and he thought that their show of some willingness at this point should be pursued. He would make a motion In that respect later. That wps a separate issue, he thought. The metian_before Council concerned two projects that had been approved by the Planning C€ e i s s i an _ . acrd the -, ate' - he thought they should stand or fall on their own; -- Arastradero Road would be 1 proved, and the nature of those - improve is had yet to be fixed. He agreed the public should be glen more time to respond tothat natter. He would support the motion. Vice Mayor Henderson noted. that the mitigation was to instruct Stanford University to proceed with the road improvements. _If the City did not require it the -tide would lapse and improvements would Mve to be made at other's expense . He held that was a definite and proper mitigation. 128. 9/5/78 Councilmenber Brenner said that on the WSJ Properties plan a driveway onto Arastradero was shown in the plan though the initial plan had said there was to be none --had that been corrected? Mr. Knox said that had been corrected. Access was from Hillview Avenue. e Boyd Smith of WSJ Properties said a drive had been planned onto Arastradero but the current plan showed a driveway onto Hillview Avenue only. Councilors perhaps had an earlier plan drawn some six weeks ago. Councilmember Brenner agreed, saying that the plan she head was dated July 20, 1978. Council ber Fletcher ascertained that the bicycle parking facilities were up to the new zoning standards. Corrected MOTION PASSED: The motion that Council refer the recommendation of the see page Planning Commission to approve the application for Site and Design 254. review of property at Deer Creek and Arastradero Roads, back to the Planning Commission, along with the application for Hillview and Arastradero Roads, as well as approval of mitigated negative declarations regarding environmental impact reports on both projects, and approval of the Site and Design reviews, passed on the following vote: i 1 AYES: Carey, Clay, Eyer1y, Fletcher, Henderson NOES: Brenner ABSENT: Fazzino, Sher, Witherspoon MOTION: Councilm er Fletcher avowed, seconded by Henderson, that Council refer the matter of safety improvements for Arastradero Road Operations to the Planning Commission for review with residents of the neighborhood, Stanford University, Santa Clara County, and Los Altos Hills, with the Palo Alto Bicycle Advisory Committee -also to be consulted. ADDITION TO MOTION: Mayor Carey suggested that the x+otion include some consideration of adding a traffic signal at [fir Creek Road and Page Mull. Councilmember Fletcher said she would include it in her motion, though she did not think that consideration of installing a signal should ':wit that long. Mayor Carey said that since the understanding with Stanford University would expire in about seven months he thought the Planning Commission could be asked to have the matter back before Council within a prudent length of time. Emily Renxel , chairwoman of the Planning Commission, replied that the Commission would do so. MOTION PASSED: Tr.t. motion referring Arastradero Road Operational and Safety improvements and the matter of a signal at Deer Creek Road and Page P111 back to 'the Planning Commission passed on a unanimous vote, Counc f lmembers Fazzino, Sher and Witherspoon absent. Moir Carey said he would be willing to spend same tine meeting with Supervissr Steinberg and Los Altos Hills representatives if it were apps priete. 129 9/5/78 Mr. Knox said he thought one of the study session meetings could be used for a meeting for input from Santa Clara County and Los Altos Hills, with Stanford invited to be present. Staff could do that alone. Mayor Carey said that concluded consideration of those matters. Further considerations by the Planning Commission and Council would be noticed in the Palo Alto Times. People who were interested should be aware of those notices. TART STREET SUBDIVISION M' RPRIMATArtorn.t. C. "nu. genekrir MEDEARIS The Planning Comeission, by a vote of 3-0, 2 abstentions, reconmrends approval of the application of H.C.C.Incorporate4, Robert W. i edearis, for a tentative Condominium subdivision map for property known as 187- 189 Bryant Streets Mice M yyor Henderson said he had removed this latter from the Consent Calendar because he did not want to have tam single-family homes taken out of the area for a condominium development. He asked what the Council could legally do: The staff report said 'The Planning Commission, and Council action would he to find 1) whether the subdivision would have a significant environmental impact; 2) whether the subdivision conforms to the adopted Comprehensive Plan.' Vice llayyor Henderson said he, himself, could say the project would have a significant envir onrftental impact and also that it did not conform to the Comprehensive Plan for it increased density. He thought that it had been said, though, that nothing could be done about it. He asked for clarification. l r. Knox said he thought Council would have to judge whether or not the project should go forward. Staff thought elements of the Comprehensive Plan favored the project regarding additional housing end mixture of single -and multi -family use. The project had begun early in 1978 under zoning which allowed the proposed density. The questions about the accepts Ility of the project had arisen because, with adoption of the Comprehensive Plan, policies had changed. The design had been ARB- appro l. Vice for Henderson observed that Council could judge that the project did have a significant environmental impact and also that it conflietd with the Comprehensive Plan --there had been the confusing statement that "...there's nothing you can do about it." NO. Knox said that the state Map Act s ► , that "llie City shall deny ap royal of a tentative nap if it is found that the proPosed mop is 1) not consistext with adopted plans...; 2) that the site is not physics ly suitable for the proposed development; 3) thot the design of the subdiyis10 or proposed improvements are likely to cause substantial environmental damage, or serfs public health problems; or 4) tit - the subdivision d 1 l coidl i ct with public easement. . . " He said that the City Attorney's office bad said that the negative mesons for denial Rest be found ih the affirmative by the C.oamission or Council before'being approved. YHe referred to page 2 of an August 4 staff report... Mr. k X said that the plea bad bean reviewed regarding driiir ! and serge and Ott there was or. site perking; the subdivision conflicted with no public easements. The Question, then, was if the tentative map was cons i stmt with the Comprehensive Plan. Neighbors had SOM2 objections, believer, which raised Questions. Councilmember Sher arrived at 8:45 p.m. 1 3 0 9/5/78 Councilmember Eyerly said that City had started to approve the plans under the old zoning --he recalled Council had passed a resolution that said that plans which had progressed to a certain point under old zoning would be allowed to continue --what had been the specific action? Mr. Knox replied that on June 19 Council had adopted a policy that any filings made on or prior to May 17, 1978, provided they were in compliance with the Comprehensive Plan and then -existent zoning, and subsequent filings as part of the same project, will be accepted and will be allowed to be processed to completion, provided such completion occurs within two years from May 17, 1978. The project now before Council had started around January, with AR8 approval around April, meaning, clearly, that the filing had been made prior to May 17. At that titre the plan was in compliance with the Comprehensive Plan. It had been clear from the beginning that a condominium was being proposed. "'...processing it to completion'," Mr. Knox commented, "does not necessarily mean approval." Council can deny a tentative map that has been accepted. Councilmember Eyerly said that what Mr. Knox had said fitted with the application for the subdivision for building rental properties; whether or not Council decided to approve it for condominiums was another question. Mr. Knox said that the peeeit could be issued and the building be built as an apartment building, but it had been designed as A condominium, and there were differences between that and rental designs. Councilmember Sher observed that the primary action of June 19 meant that after June 20 no applications mould be accepted, unless they complied with the new zoning ordinance —with the exception of filings made on or prior th May 17.if they were in compliance with the Comprehensive Plan and then -existing zoning. He ascertained that the project before Council would not be in compliance with the new zoning, Nit it had been allowed to proceed under the exception procedure. Councilmember Sher asked who had made the determination that the proposed project was in compliance with the Comprehensive Plan. In his reading of the Planning C lssion minutes he inferred that at least one Commissioner thought that the Council had already decided that the project was in compliance with the Comprehensive Plan and so there was no further action open to the Planning Commission. Mi. Knox said that the project was submitted as a 12 -unit development; the zoning was R-5-04; land use designation was multi -family, and so the project was in conformance with zoning and Comprehensive. Plan. The old zoning allowed a maximum of twelve units. Present zoning would allow about four or five units. Staff, in determining conforreence, rationalized that the property was designates multi -family and would have a►l l owed the project. It could not te known then what zon i ng density would be allowed on the property. Though the project conformed with the Comprehensive Plan in staff's opinion of that time, it was the perogative of Ceuncil to wake the final decision as to its conformance. Councilmember Sher said he assumed Mr. Knox heed understood Council's June 19 action as tellingthe staff that it should make the determination about whether or not an application that met. the time limit was or was not in cewpl l ance with then -existing zoning and the Comprehens i ve Plan, though Council might, in the future, decide that it was not. Mayor Gamey said he had wade the June 19 motion with the idea that filings that, by inference if nothing el se, conformed to the Compr•ehens i ve Plan, would be accepted except where the newly adopted land use.mp had - re -designated land use to totally different uses. Mayor Carey said his had been a "hardship" motion, intended to not cut off applicants who had been working with old zoning. The Motion also forestalled a rush of lasteeinete applications, Mir. Medearis could withdraw his application for a subdivision map and build apartment units instead, and Council . could not stop that. The , ssue before Council was if the proposed housing was tO be foe ewnership +r` l'or' rent a s . I 3 I 9/5/78 Mr. Knox agreed, adding that on May 17 the Planning Commission completed its action on the zoning map. That gave staff, according to the City Attorney's office, the administrative authority to reject certain applications on the basis of conformance or non-conformance with the Comprehensive ,Plan or the new zoning ordinance. Councilmember Sher observed all of the discussion spoke to zoning, yet the June 19 motion did not talk of zoning only; the Comprehensive Plan was i nc l uded . Mayor Carey said that :in order to approve the subdivision map, Council had to make a finding that the subdivision was consistent with the Comprehensive Plan or it could not be approved. Herbert 1. Rogers, 558 Hawthorne Avenue, said he and his family lived two blocks from the proposed condominium, He opposed the project, saying his area had been re -zoned according to the Comprehensive Plan from R -5-L-9 to R -M-1; he thought Council should hold to that. He urged Council to deny the developer's request, adding that the developer, at the time of making his request, was asking for a variance 'Isom the R -5- L-9 itself, and it had not been granted at that time. There had been continual revision of the developer's plans, he said, and the developer was always pushing the existing zoning to its limits. Marguerite Fletcher, 197 Bryant, read a letter she had written to Council, which is on file at the City Clerk's office, The letter referred to the June 19 ruling of Council making the requirement that filings earlier than May 17 be in compliance with the Comprehensive Plan. She had excerpted from the Comprehensive Plan quotes to show that the proposed project was not in compliances concerning traffic, multi -family building and preservation of neighborhood character. The tip houees at 187 and 189 Bryant had had extensive restoration, she said. Staff, she said, gave general reasons --she asked that Council consider the matter from a site -specific point of view. Councilo r Sher asked Ms. Fletcher how she felt about the possibility of the proposed project staying the same so far as size but being hilt as rentals, not as condominiums. Ms. Pletcher said she felt it was too bad that that possibility had not been foreseen and some policy written to protect against large structures. She thought denial of one kind of building did not make a legitimate reason for building another. Robert Fletcher, 197 Bryant Street, said that staff analysis was not infallible, and it avoided the impact of the project on the coatmunity. He spoke of the 1976 moratorium placed on clanging land uses from R-1 and R-2 and RM-1 to other uses. He had assumed that the moratorium had not been placed on his area because specific problems would be dealt with th specifically. The argument that since more housing was needed this project, since it provided more, was permissible, was too broad, he said,, lie thought that those who opposed the project felt the character of the neighborhood would be ruined by the project; he could not understand how staff could think there could be both the project and also R4-1 zoning. He described how the present housing would be dwarfed by the proposed project. He said "legalistic jargon" might help Council resolve the issue, but people in the ne i ghborhood would feel that Cone i l had either preserved or altered neighborhood's character. Counc i 1 member Eyer1 y ascertained that Mr. Fletcher owned the house in which he lived. He asked Mr. Fletcher what his response was to the situation that if the subdivision was denied, an apartment building of like size could be built. Did Mr. Fletcher prefer to have renters or homeowners in that location? t32 9/5/13 Mr. Fletcher said that for two reasons the question was moot because Council was talking at this time about a condominium; also, rental property was not profitable. He thought that there was no provision in the Comprehensive Plan against oversight of such a disrupting project. Janet Johnson, 275 Hawthorne, had circulated a petition in her building which had 90 apartments in it. There were many other multi -units on the block, and all residents used Bryant Avenue. Many residents wanted to own condominiums, yet they would regret having more density in their present neighborhood. They also did not like to see two of the few remaining homes torn down. John Siscoe, 197 Bryant, said he had rented from Mr. Fletcher for ten years. He emphasized that diversity of housing would no longer be an ingredient of his area if the condominitam were built, He deplored the houses already torn down to make room for condominiums. He thought that perhaps economic interests might prevent the building of an apartment. RECESS. Council recessed from 9:25 to 9:40 p.m. Robert Medearis, developer, president of H.C.C. Incorporated, 431 Burgess Drive, Menlo Park, said he thought the proposed condominium would afford an improvement of the overall housing picture in Palo Alto." Mr. Knox's comments were accurate, he thought. The variance he had asked for was to develop low- and moderate -income housing on -site. All but the Planning Commission had approved, and so the application had been withdrawn, acrd they had returned to a 12 -unit, solar -oriented, energy -conserving project. His company's Hizashi project had installedbicycle storage in advance of the newly adopted ordinance, as would the present project, which was quality housing and also in conformance with the Comprehensive Plan. Parking would be adequate and off-street, unlike the parking for the two single homes (to be torn down) at present. And so, he said, "...we're going to in face not create congestion but we're going to solve it. . . »' Counts in the ARB report, he said, were favorable about the design of the project. Cuthbert Hurd, Portola Valley, was a member of the advisory committee of the "Soft Energy Path of the Future," at Stanford. He foresaw "great energy difficulties for the United States within the next tan years," with costs to triple by 1985. He said that communities all over the world looked to Palo Alto for new ideas; Hizashi One, a condominium he and others had built on private capital, took into account that solar enema was the most available, and also money -saving. Hizashi was going to carry out research and development for five years. Mr. Hurd said that all of the findings would be shared. The research would help not only Palo Alto but the world. John Hanna, Attorney for H.C.Cr Inc., 525 University Avenue, said that the proposed low-income unit, which would have made l3 units, had been resisted; it had been decided that a payment of $38,000 would be made to the housing fund instead. He reviewed the details of the application and its relation to compliance to the Comprehensive Plan, saying zoning and conformance elements exist now, as they did then. He said that the subdivision map was also consistent with the requirements of the state Map Act. He said the project had already obtained a negative declaration -- he saw no legal basis for denying a tentative subdivision map at this stage. He noted that the applicant had both building and demolition pemJts and was free "...to go ahead and build this as a rental apartment." He said condominiums were private homes and were more affordable to many. 133 9/5/78 1 e. Councilm tuber Sher asked if Mr. Medearis could meet the concerns about density by reducing the density to something more in line with the new ordinance, thereby reducing the size and height of the building. Mr. Medearis said that early in the consideration of this matter, Mr. Fletcher had voiced concern about the proposed swimming pool that paralleled his property, and also the 31 story height. Mr. Medearis said there was a variety of setbacks planned for the project so that it was not bulky 1n one place an.. not another. A project re -design would be difficult. Elimination of the swimming pool could be considered as well as installation of landscape barriers. The height of the proposed building would be two feet taller than Fletcher's home. Mr. Medearis had wanted to schedule a meeting with another. neighbor also. Mr. Medearis said that earlier ,C.C. Inc., had requested a variance so that the building could be ewo feet higher, making it unnecessary to ventilate the basement with fans. He d)d not think that cutting down on the number of snits would address the problem. He would consult with his partners. Vice Mayor Henderson asked if the project would be developed as an apartment if the condominium were voted down. Me. Medearis said he would have to look at the economic situation. He was receiving bids on the project at present. He preferred building a condominium incorporating energy -saving ideas, which had been his and Mr. Hurd's initial impetus for the project. He thought they would go ahead with it, though he would have to consult with his partners. Councilnheer Brenner asked how rrany children were in families residing in Hizashi One. Mr. Medearis replied that there was one toddler of five or six years old and a sixteen -year old. Max Beasley, 125 Bryant Street, disapproved the project and expressed the hope that the developer would build under the current zoning restrictions of 1. He was a new resident to the neighborbnod, which, with the adoption promise of the Comprehensive Plan, gave promise of being a thriving neighbor. He liked the variety of lifestyles, and it was the only part of town where the Beasleys, as a young family, could afford a family residence. He asked that Council upheld the Cc rehens i ve Plan. He hoped other young families would buy the other single hones that he thought would come on the market within the next ten years. He said they had not accepted the building of a condominium across the st, eet from their home. He was not against energy efficiency and had himself prepared his home to install insulation. Her Carey asked if Mir. Beasley had seen the architectural plans for the proposed project. Mr. Beasley confirmed that be had seen the Fletcher's display. Jo Anne Beasley, 125 Bryant, observed that the other three -and -one -ha l f story building at 304 Palo Alto Avenue had been pointed to as exemplification of a bad structure --why was the subject project going to be permitted? Mayor Caney said that tie public hearing was not designed to be a question - and -answer sessirnt-.perhaps a merger of Coucil or staff would speak to her question later. Hobert Burnett, 185 Bryant, owned a single-family dwelling at the address he ve, wring he had purchased it five years ago and improved it. The buying was about 5O years old, as were most homes inthe area. He had 1 3 4 9.16178 1 r been able to play soccer in the street with his son, but increased traffic had made that unsafe. Ne said he had believed in the principles given in the Comprehensive Plan toward low -density dwellings. The proposed three -and -one -half -story dwelling was out of keeping with them. As a financial analyst, he felt rental units would be uneconomic. On the subject of parking, residents at the condominium at 275 Hawthorne had ample offstreet parking, but they used the street instead, making it very congested. Lynn Kilduff, 2660 Ramona, had formerly lived at 187 Bryant. She pointed out that developers who utilized solar energy were rewarded economically on their taxes, and also, only a portion of water used domestically was heated by solar. She thought the issue of solar energy had been exploited to the developer's advantage that evening. She thought that if Council denied the project Me. Medearis would do well to go to Nevada, in line with his stated plans. She questioned the destruction that seemed to be thought necessary, in order to "develop." George C.atter le, 476 Hawthorne, owned properties, he said, at 459, 461, 465 and 467 Hawthorne, He thought the problem before council had been narrowed down to whether or not properties should be rented or owned. He held that everything was owned. His main concern was about traffic. He was concerned with smog. He said that in December of 1977 the number of extensive smoking violations had risen to 199. He cited the numbers of pets and children hit by automobiles in that area. He said his properties would be for sale if density rose. Vice Mayor Henderson relayed a message from Counci lmember Fazzino, who said he had liked the Hizashi One project, and was concerned about what Council could legally do on the project before it now. He regretted the destruction of the two private homes, and said he would have liked if there were an historic ordinanceunder which they could be preserved. He leaned toward stopping the proposed project, if it were regally possible. He asked that the homes be preserved, if it were possible for Mr. Medearis to re -consider the project, He did not believe the project was for the (Corrected purpose of researching energy saving; but that it was for the purpose of see page selling condominiums priced from $100,000 to $150,O0O at a substantial 199) profit. Hr. Henderson said he himself thought the project would have a negative environmental impact on the neighborhood. Also, he did not think the subdivision conformed to the adopted Comprehensive Plan, which would allow not twelve but -only from four to six wits. He thought it would be too bad if the developer went ahead and built an apartment if the City Counc i l were oppo sed . He hoped the developer would reconsider, and he would not favor approval of the application. Councilnaa er Bremner said the City unquestionably supported solar energy. Cotancil was required to review applications for condominiums* (Corrected and to apply the. principles of the Comprehensive Plan in that review. see page Former R-5.1-9 zoning had been applied for only a few times, and had not 199) succeeded. She referred to page 61 of the Comprehensive Plan, kln respect to mu1t1-family residential, densities will range fro* 10 to 45 units per acre. Densities should be on the lower,end of the multiple -family scale, next to Single Family in that area." The area being considered was adjacent to an R-1 area, clearly indicating to her that though there was multi -family, it should be in the lower range. She thought Council was on fires ground in questioning the compatibility of the proposed project with the rest of the neighborhood. She did not think that with (Corrected the planned prices of the condominiums they would do mach to right the see page job/housing imbalance, and would instead over -congest an already -crowded 199) neighborhood particularly when about 600 new jobs in the City of Palo Alto had just been created by Council's approval of the Syntex project. She hoped the principles of the Coaaaprehens i ve Plan, sought by the neighbors, could be applied. 135 9/5/78 I�� MOTION: Councilmember Brenner moved, seconded by Henderson, that Council not uphold the Planning Commission recommendation, and deny the application of W.C.C. Inc., for a tentative condominium subdivision map at 187-189 Bryant Street. Mayor Carey asked what the allowable density was under RM-1. Emily Renzel, Chairwoman of the Planning Cor ission, replied ten to twelve units --the sane as that for the low zone along El Camino. Mayor Carey aka if the lots were about 20,000 square feet. Mr. Knox replied that R-5 would allow 12 unit; fce 15,00 square feet; with RM-1 zoning one to four units were allowable. Mayor Carey said that the present project had about twelve units on about 20,000 square feet; that was the equivalent of twenty units per acre. He said his comments spoke to Council der Brenner's statement that the project was not consistent with the C rehensive:Plan; he thought it was the opposite --the Comprehensive Plan dealt with the ten - to -forty scale being desirable next to R-1 zoning. This property was adjacent to an RM-1 area, he stressed. Couricilmember Brenner !aid that Poe Street was an R-1 area. Mayor Carey said there were eight parcels between the proposed parcel and Poe Street. Councl]member Brenner said she understood the RM-1 area was next to R-1. The reason for Rai -1, instead of R -5-I.-9 density, was that the section of housing was near R--1. That was so that the adjacent block would be on the low end of the multi -family density. Mayor Carey said that the passage she had read meant to him that as R-1 was approached, density should decline from forty to twelve, so that there would be a buffer between single-family detached and higher densities. There were about four parcels between the proposed project and the R-1. Mayor Carey said that as he recalled the density across the street, built under the old R -5-l.-9, there were about BO units per acre. He remarked that eighty units had been visually acceptable, whereas the proposed protect was not. He thought exterior design made it acceptable. He thought that the proposed project might not have as severe a visual impact as people feared. If the application were new he might vote it down. However, the application was old, and a building permit had been issued, issued by the City and pursuant to existing zoning. If a subdivision map were not required the project would be under construction et the present time. In June Council had voted 8-0 to allow exceptions when the developer had already begun processing. He would not support the motion. Councilmnber Brenner said she would remind Mayor Carey that a similar project with two uses being removed to make way for condominiums had been approved by Council as being in conformance with the Comprehensive Plan. That was the project which had already been passed. Mayor Carey said the project now before Council was also one of those projects. Counc11i ember_ Fletcher recalled that at an earlier date Council had discussed the possibility of reviewing and denying a similar application -- and so the applicant had known that the die had not yet been cast. She thought the project was "completely out of keeping with the hei-ObArhiN11 and therefore against a lot of the statements in the Comvehensive Plan." 1 3.6 95/76 Corrected see page 199, Councilmember Sher said he had not been sure about the effect of the action that had been taken on June 19 by Council. He had not been present at that meeting. Mr. Hanna had made the point in his letter that the project was consistent not only with earlier zoning but also current zoning. Councilmember Sher said he had not "cast a die" in that Council meeting, and he did not think he would have. He'tbought he would have wanted to explore more fully whether or not the project was consistent with the neighborhood and the Comprehensive Plan, for he did not think it "preserved or enhanced the quality of this neighborhood." He was not prepared to approve the project, and he did not want to abstain because he did not want to cloud the issue. Under the circumstances, with some Councilmemberas absent, he said, "I'm compelled to support the motion. Mayor Carey said that his use of the phrase "The die is cast," meant to him that when the motion passed in June all issues were reduced to the findings required by the Subdivision Map Act, in his opinion. That included consistency with the Comprehensive Plan. That was a finding that Council had to make that evening, regardless of action Council had taken in the past. He said he understood Councilmember Brehner's motion to be based on the finding that the application did not conform to the Comprehensive Plan. He asked her for confirmation of his understanding. Councilmember Brenner agreed that that was the basis of her motion to deny. Councilmember Eyerly said he did not think that at present an application for the condominium would be accepted under the new Comprehensive Plan. Yet the fact remained that the builder had the permit to build twelve units for rental, and Council had given that permission. He thought that the City would be better off with privately owned condominiums than with rentals. He did not see how the application for a map could be denied. He mould oppose the motion before Council. Vice Mayor Henderson said that the June 19 action said applicants could go through steps for approval, it did not say Council had to approve them. He did not think the application was consistent with the Comprehensive Plan. Council did not have to approve it. "If the developer wants -o Corrected go ahead, so be it." see page MOTION PASSED: The motion, that Council deny the application for a 199. tentative condominium subdivision map of H.C.C.Incorporateds Robert W. Medearis, for property known as 187-189 Bryant Street, passed on the following vote: AYES: Brenner, Fletcher, Henderson, Sher NOES: Carey, Clay, Eyerly ABSENT: Eazzino, Witherspoon TRAFFIC TEAM PROGRESS REPORT C WORKS COI!' 1TTEE (CMR:359:8) Vice Mayor Henderson said he had removed this matter from the Consent Calendar because some people had wanted to speak on it and also he had thought more discussion on the proposed 30 miles per hour speed limit on University was needed. He thought the financial aspects of the report should go to the Finance and Public Works Committee. The Committee had voted unanimously to continue the traffic enforcement program. He thought it would be advisable to follow recommendations of the Police department, without undue delay. 137 9/5/78 Chief of Police James Zurcher, said his department had wanted Council to address its recommendations in its report of August 24, 1978. Now, however, the department asked that Council take no action on recommendations ore and two relating to tPa grant from the Office of Traffic Safety, and the budget for the Police Department, instead giving it 60 days to work out details with the Office of Traffic Safety (OTS). OTS now insisted that three new officers be hired to staff the proposed traffic team which would be supported by the grant, yet it was likely that the police department would be reducing personnel, and so the OTS proposal seemed unreasonable. However, if Council could agree with that OTS stipulation, Chief Zurcher asked that Council review the first six months' performance of the traffic team, then consider the proposal that the speed limit on University Avenue be raised five miles per hour. The speed could be raised on a trial basis, but, once that -was done, a part of the code said, the speed could be reduced to former speed only on the basis of an engineering and traffic survey. It could be argued, Chief Zurcher said, that even with radar it might not be possible to reduce the speed again to 25 miles per hour. Edward Freiberg, 726 Charleston Road, said he was concerned that raising the speed limit on University Avenue might be given as a precedent for raising the speed limit on other streets. He said that collected data and commonsense indicated that, contrary to one claim that by raising the speed limit the speed would be reduced. speed would actually rise. Even after a period of enforcement, speeds had risen on Arastradero, Middlefield and so on. Drivers often drove at higher speeds just to keep the traffic moving, and those driving at posted speed were advised to use the slow lane. The most effective method of reducing speed was through the "evident presence of police." Residents along streets where posted speeds were enforced were very grateful for such enforcement. He wanted Council to keep the speed the 25 rile an hour limit, and not increase speed limits. Sandra Friedman, 792 E. Charleston Road, said she opposed setting a 30 - mile -an -hour speed limit on University Avenue just so radar could be used. She said the March 1978 Traffic Tern report showed that the average speed was 31 miles per hour. She gave some other figures which she thought refuted the claims that raising the speed limit would lower the speed at which traffic traveled. William McKenna, 1465 Webster Street, said he thought Council should review traffic problems. and he cited an appearance he had made before Council in 1977 saying at that time that the police were not giving citations or o t. rwi se supervising traffic. He compared 1973 and 1977 results of studies on traffic speeds, showing that speed had increased at all but two of a total of thirty-six traffic check spots. There had been the greatest increase in speed at Embarcadero and Cowper, where he lived. He thought there were few things more iarportant for Council to give its attention to than traffic matters, and he preferred that the full Council be present. He did not think the report before Council en traffic was comprehensive. He thought speed rear the Hale Avenue checkpoint on University had already been dramatically reduced. He would like a full hearing by a full Council on the matter of 4'aising speed limits, and with more complete data. Robert J. Debts, 3145 Flowers Lane, spoke about the "_..trial change of speed limit from 25 to 30 miles per hours." He thought more complete data was nesded'before even considering raising the speed limit. He thought behavior of drivers: how traffic lights worked, what base was used fer setting speed limits, and the like, had to be considered more fully, by Council and with a traffic engineer present. He feared that raising the speed limit on one street could be viewed by motorists as a change of policy. He urged Council to deny the proposal. 13* WS/18 } Gil Eakins, 3493 Greer Road, opposed raising the speed limit on University Avenue, Much consideration was given by the City and residents to maintaining the liveability of the City, and traffic was important to that. He felt that the state legislation in its traffic code was participating in "gamesmanship." Traffic regulation was not an exact science and there were many human factors. Councilmember Eyerly referred to figures in the report concerning traffic at Bale and University, saving he did not understand how. traffic speed averaged *31 miles per hou; in March, then rose to 33 and 35 miles per hour in July —was that lack of surveillance orpersonnel? Chief Zurcher said he did not have that answer. Councilmenber Eyerly asked if there were any special conditions on University. Chief Zurcher said that more people were needed on traffic enforcement without radar. The program on University Avenue west of Tasso was successful because it was legal to use radar in that location. MOTION: Councilmember Eyerly moved, seconded by Clay, that Council delay recommendations 1) and 2) of CMR:369:8 for 30-60 days pending the full reprt to Council by the Police Department on finances, and that Council deny the five -miles -an -hour= increase in permitted speed on University Avenue, and ask the Police Department to give better surveillance on University Avenue. Councilmember Sher ascertained that Council had before it the Comprehensive Report, and the rec endation was for the finance and Public Works Committee to act on the grant application spoken to by the first two items in the report, as well as the proposed thirty -miles -per hour speed limit on University Avenue, though there had been some disposition toward referring the third item to the Policy and Procedures Committee. Chief Zurcher said his department had not intended to give its entire report to committee; it had intended to bring it to the full Council. The department wanted the Finance and Public Works Committee to look at the recommendation along with its budget, and the committee had done so August 29, 1978. Then it was to return to the full Council. Co~anci 1 me+eber Sher ascertained that Chief Zurcher had intended that Council decide the Netter of the raise in speed limit on University Avenue to the proposed thirty miles per hour, and Counciiemember Eyerly's motion now before Council did address that decision. Was there any need for it to go to committee? Chief Zurcher said he saw no need for it, but if Council wanted to send it to Committee it could, of course, do so. moiler Sir said he would support the motion before Council. Mayor Carey said the motion could be split to take votes on recommendatioes one and two, then on recommendation three. Vice Mayor Henderson observed that more surveillance on University Avenue meant less surveillance on other streets since the budget was not being increased. He did not support higher speeds. He was angry, he said, about motorists who exceeded posted speeds when they saw no police or radar, which could be used only in school zones. He would oppose the notion, for he wanted radar on more streets. 139 9/5/78 -. - Cou,icilmember Fletcher favored having a trial period of using radar with a raised speed limit. If the City were locked into retaining the higher speed, however, she did not want it, so she would support the motion. Councilmember Brenner said that at present on University, during heavy use, it was not possible to move very fast owing to congestion, which would become greater when the new Dumbarton Bridge was opened. She did not think University should be made an inviting street for through traffic. She would uphold the motion. She asked Chief Thrcher if the City ever tried "the moving target" system with a police officer cruising at the posted speed on the subject street. Chief Zurcher said he had tried it; Officers drove often at posted speeds, straddling the lanes, "convoying" motorists down non -radar streets. Police cars traveling at higher than posted speeds in answer to a call had been instructed to turn on their yellow blinkers so that motorists wound know that. Councilmember Brenner expressed approval, adding that the number of tickets issued was not as important as persuading motorists to slow down. Councilmeanber Eyerly said that from January through June of 1978 there had been an increase of $68,443 over the same sixae+ooth period in 1977. Police Department estimates were for a possible increase of as much as $400,000 per year, which money went into the general fund, rot the police department budget. The California Office of Traffic Safety (OTS) had a grant program, he said, for reimbursement of expended funds, and the police department was applying for $120,112. His motion was intended to increase surveillance on University Avenue if possible. If personnel for doing that was not available the Police Department could ask for a budget amendment. Mayor Carey said he thought thirty miles per hour was a reasonable speed. "No one pay any attention to 25." He thought it was Masan nature to go somewhat faster than the posted limit, but he agreed that posting the speed higher might lead to the difficulty.of. tryin=g to get the speed back down. He would support the motion. NOTION PASSED: The motion that Council delay recommendations 1) and 2) of CMR:369:8 for 30.60 days, pending the full report to Council by the Police Department on finances; and that Council deny tie five -miles -an - hour increase in posted speed on University Avenue and ask the Police Department to give better surveillance on University Avenue, passed on the following vote; , AYES: Brenner, Carey, Clay, Eyerly, Fletcher, Sher NOES: Henderson ABSENT: Fazzino, Witherspoon U!IFINISHE0 BUSIWESS Hooting that Council was still in the adjourned meeting of August 28, and that he had voted an the prevailing site, Counci1member Clay asked for reconsideration of the ma_ Jr of recovery of precious metals from incinerator sludge. He said he had voted according to the suggestion by staff not to delay on signing the contracts, and he wanted to reconsider that action now. 140 9/5/78 MOTION TO RECONSIDER: Councilmember Clay moved, seconded by Brenner, that Council reconsider the matter of signing a contract with World Resources and CCS Mining for recovery of precious metals from incinerator sludge, as passed on August 28, 1978. The motion to -reconsider passed' on the following vote: AYES: Brenner, Clay, Fletcher g Sher NOES: Carey, Henderson, Eyerly ABSENT: Fazzino, Witherspoon Mayor Carey said that as he understood it, the motion just passed and that placed the matter once more before Council and that the Finance and Public Works Committee's recommendation was the motion .on the floor. RECONSIDERATION OF AUGUST 28 ACTION RE CCS MINING Councilmember Clay explained that though the matter had passed at the previous meeting he had thought there would be more discussion before the vote was taken. He had voted then in order to expedite the matter, but now he wanted to follow the staff recommendation to delay and search for a "more environmentally complete solution< . ." Perhaps the matter could be referred to the Policy and Procedures Committee, where staff could give recommendations it had garnered during the 60 -day delay period and at which a public forum could be held. He proposed making such a motion. Mayor Carey said and Ms. Taketa confirmed, that the -motion placed before Council at the meeting of August 28, by way of the Finance and Public Works Committee, that the two contracts with World Resources and CCS Mining be approved, was now before Council, and a further motion would not now be in order. Councilor Clay said that in that event, before he offered a substitute motion he would like to hear otters on the possibility of voting for a 60 -day delay. Joe Brown, Grass Valley, said his associate, Stoneman Enterprises, had realized that the 1976 contract between Palo Alto and World Resources W4s a substantial obstacle for anyone else seeking to process the ash. Also, as the City had acknowledged in a letter to World Resources, "Staff cannot ignore World's claim on certain patent rights and its claim to ownership of part of the existing pile." The letter also mentioned "...potential litigation issues will also be weighed in our analysis."` (Of new contract negotiations.) Mr. Brown said he thought his associate took the position "...that the City must be willing to challenge World's position as a condition precedent to negotiating in good faith with other potential contractors. According to Stoneman Enterprises' legal advice it was not thought the City would take a risk in challenging World's claim on either contract or patent. World's patent was no concern in the process, he stated. We outlined same of the conditions of the agreement, and he said it did not appear from them that the City Would lase anything of value if the agreement were never executed. He said that the ash %ms sold to World, for use in its smelter, on the basis of fluxing material, not just precious mineral content. 141 9/5/78 1(1 The content of fluxing material could be shipped to the refinery after the removal of the precious metals, and that would raise the income potential of the ash. The 60 -day delay with solicitation of further materials might be sound but 60 days should be extended to 120 days, because negotiations took a long time, and requests for proposals should require bidders to make general specifications for the method to be used in processing the ash. If Council deemed the 120 -day delay feasible Stoneman Enterprises wanted to request that "our original contract on the drift bid be brought before the Council for approva1.and have the opportunity to finish our program in the phosphate section of this project," He said Councilmembers had received a copy of the United States Geological Survey reports and that gave answers_aab0ut the true value of the ash and some of its possibilities. A solu i_r Qf bh phosphate condition by Palo Alto, would, he said, rake a contribution to some of the environmental problems of the nation regarding clean water, agriculture, and the economy. Councilmember Eyerly asked if a copy of the contract between Palo Alto and Stoneman Enterprises had been given to the City staff. Mr. Brown said staff had sent him a copy. It did not contain a performance bond --the contract was for testing only. Councilmember Sher asked if Mr. Brown had in effect said that Palo Alto should take a stand against the contract with World Resources. He said that at this time the City had no agreement with World. Mr. Brown said that World Resources said that the City did have a 1976 agreement. He advised that the City declare invalid World's claim to title to the pile of ash, along with rights under World's patent, His tirm would not make a proposal until the City declared iorld's claim to the pile invalid. He said Stoneman Enterprises' process did not involve World's patent. It was the stated ownership of the pile by World that. had to be declared invalid. Coune lmerr;bey- Sher asked if Stoneman might make a proposal for ash to be generated in the future add not now in the pile to which World laid claim, if the 60 -day delay were provided. Mr. Brown said that he would. Councilmember Carey asked if Mr. Brown was saying that in 120 days the City should, at its expense, get declaratory relief against the 1976 contract with Wild? and also some sort of declaratory judgment with respect to World's patent, after which Stoneman Enterprises would be willing to enter into a contract with the City, which would give the City more money than World was willing to pay? Mr. Brown said he had not meant what Mr. Carey said --he meant the City should get declaratory relief on the title to the pot. Mayor Carey said he assumed Stoneman would take care of the patent and hold the City harmless against treble damages. Mr. Brown said he had agreed to that, and also to put op a certain amount of funds to pay for the litigation, then Stoneman would be willing to enter into an unconditional contract with the City. M yor Carey asked how much more money the City would rake with Stoneman than with World. Mr. Brown replied that he could not shy --it was not even known what the prices would be at that time. The City could make mare money with Stoneman, but he could not say horn much more. Stoneman went after the 142 9/5/18 I V) phosphate and other constituents of the ash, not just the precious metals --silver and gold were by-products to Stoneman Enterprise' system. Stoneman had put its money up front, he said, by developing the process before it wanted to make a deal, and it had;done so in 'response to certain requirements by City staff, and so that the process would not infringe on the patent. He was associate to Stoneman Enterprise, in this joint venture. Counci ime er Carey said total assets of the company were shown as $894,000; the contact, as he understood it, could be worth millions of dollars. The company's capital would not go far if the City were sued for treble damages. Mr. Brown pointed out that Stoneman Enterprises could not pet °gip a performance bond if it infringed on World's patent. Whether or not infringement took place would be discerned before performance bond was put up. Miayor Carey said he assuaged some litigation regarding the patent had to be settled before Stoneman Enterprises could proceed. Mr. Brown replied that that was not the case, since Stooeman Enterprises process did not infringe on the patent. An attorney had given his opinion that its process did not infringe. Don Maynor, assistant City Attorney, said Mr. Brown was suggesting that his process does not infringe therefore there would be no problem; if 4r. Brown were wrong then the City would have a problem, Mr. Maynor said. Mr, Brown said he understood that. Councilmenber Brenner said she thought that with the leverage the City had regarding the value of the incinerator ash the City could work toward the larger problem the ash itself presented. The United States Geological Survey report gave essential information needed in order for Council and staff to review the subject. She asked Mr. Maynor if he could recount a brief history of the 1976 contract between the City and World Resources. Mr. Maynor said that in 1976 a contract had been signed involving the sale of the ash to World Resources at a very small amount. The City was concerned with the removal of the ash, and was unaware of . the gold and silver content. World Resources had been given a year to remove 10,000 tons of ash, and the company failed to do W. It asked for an extension of bare. About the time of the expiration of the extension United States Geological Survey had reported on the mineral content of the ash. World Resources had two or three days in which to remove the 10,000 tons of ash, and about the same time as the US65 report World came to the City to say they had worked out a contract to share with the City some of the profits, instead of removing the tonnage on a timely basis, Mr. Maynor said '"Apparently they had known the value of the gold and silver in our aeh, and they were developing this process which apparently they have patented." Their patent for the process had not yet been issued. Counci la ver Clay asked haw much tonnage there %gees. Mark Harris, City Treasurer, said that the tonnage was what had been produced in 1977 --between five and ten thousand tons. The contract covered 1977 ash only. C©urncilae tuber Clay asked if it made any difference to Mr. Brown if the 1977 ash were not available to Stoneman Enterprises. 143 9/5/7►9 Mr. Brown replied that it made quite a bit of difference --in addition to the gold the phosphates in a pile of ash were worth about $100 a ton, roughly. With the 1977 pile there would be a pile worth about $3.5 million in gold, silver, and other constituents. The'1977 pile night well be worth more than subsequent piles, for now that companies►feUnd that minerals were being deposited in sewage they would develop'a process, it seemed logical to believe, to keep the minerals from finding their way into the sewage, especially with the price of gold rising. Vice Mayor Henderson left the meeting at 12:00 ,midnight. CountiImembe1 Clay asked Why 50 days was not a long enough period of time. Mr . Brown explained that the grit pit area of the Water Qt a l i ty Control Plan did not fall under the patent that World Resources held, and it was where there were precious metals, though few phosphates. The back of the Control Plan was the ash, the front of it was the grit. If Stoneman Enterprises could run an analysis of both areas a comprehensive program could be submitted to the City stating the total number of recoverables, in a system which made fertilizers, with everything else being a by- product. About 120 days would be needed for that. Stoneman Enterprises could take out the phosphates, but, as the USGS report stated, the phosphates had to be refined. Stoneman had agreement with a company that used a low -energy consumption process with technology and equipment already available, to do that refining. Their agreement was with people in France. Findings of the tests went to Zurich, Switzerland. Sixty days was too tight a time in which to achieve all that. Mayor Carey asked if the refining process for phosphates had to be done on -site. Mr. Brown replied that it did not have to be. Mayor Carey asked if a facility had to be built to do that, and where Stoneman Enterprises planned to build it. Mr. Brown replied that his associates had approached another city close by, and they had been receptive to i t . That city also had some ash though it was much lower grade and had no precious metals. It would cost over $350,000. Mayor Carey calculated Stoneman Enterprises' $850,000 capital, matched against forthcoming expenses of $350.000 and a hold -harmless contract on $3.5 million potential product was strict financial circumstances. Mr. Brown replied that Mr. Stoneman could answer that question more fully. Mr. Brogan said he himself was the "leg man" and did all the chemical work. Mr. Stern took care of the financial end. He wis a retired president and chairman of the board of the Purex Corporation. Purex's attorney had liven the opinion regarding the unlikelihood of patent infringement. Kent Mitchell, 550 iii 1 ton Avenue, attorney for World Resources, said he had appeared before Council last week when Council had approved the contract. He said that World Resources had given specific information on process, timetable and the like, whereas Stoneman Enterprises seemed to him to be all "ifs." World Resources was committed to removing 1800 tons of incinerator ash in the first year, and 3000 additional tons the second year. Mr. Mitchell said that answered an environmental problem for Palo Alto, and World Resources was prepared to begin. Under the terns of World's contract with Palo Alto it would be profitable for both 144 9/5%78 World and Palo Alto. The original contract stating that World would remove 10,000 tons of ash had been executed August 4, 1976, calling for removal by December 1, 1976. An extension had been granted by the.City in February, for World to remove the 10,000 tons by April 30, 1977. Five weeks before the deadline for removal the USGS report had come out. The Bureau of Mines had given Palo Alto a report of the mineral content in 1974, but the (ISGS report got more attention. At the time of that five -week deadline Palo Alto had told.World that if it removed the pile the City would set up many environmental roadblocks. September, 1977, the City excluded the possibility of on -site recovery; and so it could be seen that the City was not willing to have the pile moved, rather than that World defaulted by not removing. The City had notified World Resources on MaY 4 that the contract had been cancelled because the pile had not been removed. World's counsel back east and Palo Alto had a gentlemen's agreement to shelve the contract while working toward a joint partnership agreement with both the City and World Resources benefiting, With World being in the position of having been working with the City since 1976 it was not businesslike for it to turn its back on contract and patent rights In the meantime work could begin as soon as talk was concluded. He feared that deterioration of good faith was taking place, though World Resources wanted to avoid that. Councilr ber Sher asked if the City's order not to remove the ash was made orally or in writing, Mr. Mitchell replied that the statements were oral. Mr, Maynor clarified that the City had asked World how, in the short time remaining, it planned to remove the 10,000 tons, for rough calculations showed that that about 30 five -ton trucks a day would have to work seven days a week to remove it. The City was not going to permit that type of activity to take place in "...an envircrwentally sensitive area," That was the type of so-called "environmental ro4dblock" that Mr. Mitchell alluded to, World Resources had not said how it planned to perform the removal of the tonnage. The City had warted to work out some -joint approach on how best to remove the tonnage. It had been thought that World would waive its rights under the old contract and negotiate a means of removal with the City, in good faith. The City had operated in good faith, Mr. Maynor said, as attested to by the fact that World's contract with the City had been in existence until this previous week. MOTION TO CONTINUE: Councilmember Clay moved, seconded by Brenner, that Council suspend action on the World Resources and CCS Mining contracts for 60 days and solicit proposals from any interested parties, and direct staff to develop specifications for a sludge ash contract and return to Council for action in not more than 60 days. Councilmber Sher asked Mr. Harms, City Treasurer, and Mr. Sipel, City Manager, if the motion was not substantially what staff had recommended. Mr. Sipel replied that it was. Councilobar Fletcher said she did not want to be bound by the terms of the earlier contract. Councilmember Clay said he had omitted tat stipulation, trough it was not precluded. Mr. Si pl said that if Counc i l to nbers had any ideas toward contract stipulations staff would like to know them, Councilmemrber Brenner asked if answers to the questions submitted by staff der Ron Reeves would be included in the information to be submitted to Council by staff. 145 9/5/78 Mark Harris, City Treasurer, said staff was ready to respond to those that evening. Councilmember Brenner replied that she thought it was too late in the evening to go into those questions and answers; she would like them in writing. Councilmember Eyerly said he would like to conclude the matter that evening. He would oppose the motion. Mayor Carey agreed with Councilmember Eyerly that there had been ample opportunity for others to bid onthematter. Stoneman Enterprises wanted more delay and from the sound of the finances the City could not be indemnified, and further complicating details, all for some amount that could not be stated, along with the risk of liability. He foresaw another Council session on the sane material in 60 days, but he would oppose the motion. SUBSTITUTE MOTION TO CONTINUE PASSED: The motion that Council suspend action on the World Resources and CCS Mining contracts for 60 days and solicit proposals from any interested parties, and direct staff to develop specifications for a sludge iah contract and return to Council for action in not more than 60 days, passed on the following vote: AYES: Brenner, Clay, Fletcher, Sher NOES: Carey, Eyerly ABSEPit: Fazzino, Henderson, Witherspoon EST OF COU rCJLME.MBER FAllIti HIND Mayor Carey said that he would not participate in the zoning matter, and Vice Mayor Henderson had gone home, and Councilmember Fazzino was not present --three problems that stood in' the ray of the request. He turned the chair over to Counciimember Clay. Councilor Clay presided. MOTION: Councilmember Clay moved, seconded by Pletcher, that the "P' zone element of the Zoning ordinance be referred to the Planning Commission for review. Councilor Brenner said the "P" element had not yet been tried and she thought it might be too soon to send it back to the Planning Commission. Emily Renzel, chairwoman of the Planning Commission, said that the "P" element had been innovative; she said she did not know from the wording if the structures or the uses referred to in the *PM element became non- conforming when that zoning was applied. Also, with current meeting schedules, the Planning Commission might have trouble reporting back in 40 days, as the ordinance required. Councilmember Brenner counted that because the "P" element did not apply to any properties until about fifteen years in the future there was ample time to re -think it. 1 4 6 9/5/78 MOTION TO CONTINUE: Cuuncilmember Sher moved, seconded by Brenner, that Council continue the matter to September 11, 1978. The motion passed on a unanimous vote, Mayor Carey not participating and Vice Mayor Henderson, and Councilmembers Fazzino and Witherspoon absent. ADJOURNMENT MOTION: Councilmember Brenner adjourn. The motion passed on and Councilors Fazzino and moved, duly seconded, that Council a unanimous voice vote, Vice May^,r Henderson Witherspoon absent.