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HomeMy WebLinkAbout1977-01-03 City Council Summary MinutesCITY COUNCIL M1NUTES Regular Meeting January 3, 1977 IT'E'M Approval of Minutes of November 15, 1976 Approval of Ili.outes of November 22, 1976 Approval of Minutes of November 29, 1976 Oral Communications Consent Calendar - Action Items Renewal of Leese Agreement, American National Red Cross Award of Contract: Recreation Basketball Officials 1976-77 1800 Erbarcadero - Change of Zoning From L*M--D To P -C Report of Byaon P. Sher, Commaiasionar, Santa Clara County Transportation Commission re SB 1687 Liability Insurance -- Recommendation To Adopt Budget Amendment of 5232,000 1977-78 Budget --General Discussion Power Property Purchase Agreement Electric Utility Rate Deereeae 4102 El Camino Rol Change of District Prom R-1 To P -C, Application of Jesse C. and William P. Sorter Request of Councilmen Carey Re: Petition For Under - grounding Utilities In 700 Block of Romans Lassa Conteiners---Rsquest of Council bare Norton, Carey, Comstock end Sher Re Senate Bill 4 Rumen Ralatious Commission Appointients Procedure For Clerk Adjournment 3 f 3 1/3/77 CITY or MIO LTC? PAGE 5 9 4 5 9 4 594 5 9 5 5 9 5 5 9 5 5 9 5 5 9 5 596 5 9 7 5 9 7 602 609 61 1 616 617 617 6 1 7 January 3, 1977 The City Council of the City of Palo Alto met on this date at 7:42 p.m. in a regular meeting, with M*yor Norton presiding PRESENT: Beaters, Berwald, Carey, Clay (arrived 7:55 p.m.), Comstock (arrived at B06 p.m.) , Eyerly, Norton Sher, Witherspoon APPROVAL OF HIV QF E 1 Z 15, ti'TES 1976 Councilman Eyerly referred to page 455 of November 15 minutes, the two lines at the bottom of the first full paragraph, and asked to remove "yet nonetheless be eves going to" and write instead "and therefore could not support the orainance." Cc.uncilvosan Witherspoon referred to the subsequent paragraph on page 455, and added to "...the motion had failed." the words "in the Planning Commission." Councilman Sher noted that he was present at the November 15 meeting, although his name had been omitted from the 1tet of thyme present. Councilwoman Witherspoon noted the same omission for herself, and corrected the minutes accordingly. MOTION: Councilman Seahre moved, seconded by Witherspoon. that the minutes of November 15, 1976 be approved as corrected. The motion passed on a unanimous vote. MINUTES CP NOVEMBER 22Y 1976 Councilwomen Witherspoon referred to page 484 in tbs fifth psragrapb and asked that is the second lie, before "transportation," the words "County p lic" be inserted. - Mayor Norton asked that the werdea "without having referred the matter to the Planning Commission" be ieeorted in the ascend lime of pages 476; and tk et on page 472 the eahangea batveen -hilcw*lf and Councilman Sher be compressed to one exchange rather than BavariaBavaria& eaincee thay dealt with the same subject. On page 4 be *eked that the last sentience is the eishtb paresraph, "Re announced that it would be a teat vote." be deleted. On page 485, fourth paragraph frome the bottom, substitute for the p> rase "if the employer had said be needed 60" and insert "where 60 night otherwise be required„ with landscaped aped reeve for the balance." NOTION: Councilman Ssabrae moved, sew by Norton, that the minutes of ttbs November 22 meeting be approved as corrected. The motion cerried unanimously. 29. 1916 Councilmen berweld asked that on pags 498, second pereegxaph, second lam, the ward "Lotted" be replaced with "locked." Mayor Morton asked that era page 493, 3rd paragraph, second litre, "enema# setters" be reeplsceed with "curbs and gutters." 5 9 4 1/3/77 MOTION: Councilman Berwald moved, second by Norton, that the minutes of November 29 be approved as corrected. The motion passed unanimously. ORAL COMMUNICATIONS 1. Ralph W. Bansteen, Ph.D, 431 Webster Street, spoke of a dangerous situation at Palo Alto Avenue an4 San Franciaguito Creek where a steep drop to the creak posed a danger, for there were no fences. He said if the City were to take action some wooden rather than conventional cyclone fence would have more eye appeal, for the area wee attractive for walking. Mayor Norton recalled that the danger that steep drop posed had been diecuseed off and on for many years, with people undecided whether the possible denser to people took precedence over the wish to keep the area in a natural state. 2. Ethel Anderson, 360 Colorado, thanked the Council for the many hours of head work they had epeot keeping Palos Alto as pleasant as When sure first came here in 1939. She and her husband were anticipating enjoying the facility underway for Senior Citizens. Mayor Norton acknowledged that Mrs, Anderson had been attentive to matters undertaken by the Council, and he returned her thanks for her continuing interest. CO$ S ENT CALENDAR - ACTION ITEMS (aa :556:6) Staff Tacos:mends that Council approve the lease agreement. LEASE AGREEMENT WITH PALO ALTO CHAPTER OT Z SCAN RED CPCSS (C :563:6) Staff recommend. that Council authorise the Marc to agecute the contract with the Recreation Basketball officials for the 1976-77 season. CQ TIACT POR OFFICE AT T BASIXTIALL FROMM !Oa 1976-77 W1TR liCaRATIOW IAS1TIALL OFFICIALS IMO mom= 2942 emtitled "OlDIMANCi OP Til AIL OF TOR Cif OF PALO ALTO axiom SUTTON 1$.O. t4 07 Till PALO ALA MUNICIPAL COM COMING TWA ZONING OF ClirAIN 'lariat? MOON A6 i40O INSAMCADala DO#A 1WON I,* -D TO P -C." (First reading, December 20, 1976) 5 5 1/3/7'7 1 Councilman Carey abstained on zone change, 1800 Embarcadero. MOTION: Councilman Beahrs moved, seconded by Witleerspoon, that the action items on the consent calendar be approved. MOTION PASSED: The action items on the consent calendar were approved unanimously, Councilman Comstock absent, Councilman Carey abstaining on the third item. 14211 re F.BS SRER COMMISS 10NERJ.L.ANTA CLARA COUNTY �i SPgw+� T�►TION C *fIJ xON rc "`1687 �.r�r. - � rr rr�a ---rr�_�wr.�r�w Councilman altar referred to his memorandum of December 23, 1976 which gave information on Senate Bill 1687. That bill permits cities, for the first time, to file cletins with the "transportation planning agency" and a statecent of the bill read "for community transit services, including Such services for those ouch as the disabled, who carnet use conventional transit services." The bills provisions, Councilman Sher said, dovetailed with Palo Alto's PROJECT MOBILITY which provided taxi rides to handicapped and senior citizens at a fraction of the actual cost. Though Palo Alto had applied to the County for financial help the City had been told that such help was not provided for under existing laws to allocate gas tax moniee for those local projects. The passage of SB 1687 made some of that money available, but the Trancit District Board would have to allocate the fonds, in the amount of up to five percent of the funds the Transit Board received for that purpose. Councilman, Sher said he assumed the Transit Board would probably reserve as much money as possible for their purposes, but that, in view of the necessity for the Transit Board to receive support from local, cities, it might be passible to persuade than to allocate some of the funds for local projects. Councilman Sher asked that Council direct the staff prepare a resolution, a copy of which to be sent to the Transit District Board tetating that local communities be entitled to participate in the uas of soars of those funds. A copy of the resolution could be sent to other cities in the County suggesting that they adopt similar resolutions. MOTTO*: Councilman Sheer moved, seconded by Mehra, that Council direct staff to prepare an appropriate resolution articulating a policy position; to send the resolution to the Santa Clara County TrsEsit District!Ward, along with copies to each of the cities le the Couaty, with the request that they adopt a similar resolution, also to be sent to the Santa Clara.County Transit District Board of Supervisor*. Vice Mayor Clay spoke of the purposed stated under each of the priorities of SS 1667, and he pointed out that bicycles and pedestrians had coved from sixth to third priority --e eateoory Palo Alto had emphasized Lt* the Comprehensive Plan; he asked if as exclusive roqueat had to be made for those funds, or if they perhaps came automatically. Councilman Sher said be assumed Vice for Clay was referring to previous action tam in regard to a bicycle pstb in Barron Park ore which previous action had been taken and for which a sep;irate fund- fng request bald been made. Re said be thought the project for which funds were requested would have to be defined such as a specific bicycle boulevard or the like. The ranking of purposes for which funds cold be granted was quite lob for local projects, which gave the County a rsaadyeads out, and so it might be nee ceseery for Palo Alto to come op quite strong in their applications. 396 1/3/77 96, MOTION PASSED: The motion to direct staff to prepare a resolution asking for participatory funds for Palo Alto's PROJECT MOBILITY, a copy of which was to be sent to each of the County cities, passed unanimously, Councilman Comstock absent. ILITY INSURANCE --REC ATIO AMENDMENT OF 232 000 MOTION: Councilmen Berweld introduced the following ordinance and moved, on behalf of the Finance and Public Works Committee, that Council adopt the budget ameadmant of $232,000 as recommended by staff. ORDINANCE 2963 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR VISCAL YEAR 1976-77 TO INCREASE APPROPRIATIONS FOR GENERAL LIABILITY INSURANCE." Councilman Berwald reviewed the City's policy of liability insurance for liabilities covered from the first dollar up to $25,500,000. 0n December 8 the Finance and Public Works Committee worked out the action he now presented, which would cover the City's current liability policy until April 1, 1977. The coverage from April to July would coat approximately $40,000. The rising costs were partly a result of many inaurar& dropping out of the market. The increase made it obvious, Councilman Berwa1d said, that the policy coverage had to be re-evaluated aid also that some level of self-insurance would have to be initiated. Mr. Frank }lertsrrich, the broker who bandied the City's account, would present some alternatives, and also staff had the problem under consideration. Tentatively a meting ca the subject, with :rasa enough for die1*gus among Mr. Hertel -rich, Council and staff had been set for later in January 1977. Also proposed had been aot meeting with L tgue of California Cities to see Li moss legislation could not be developed giving governmental agencies tame relief on insurance. 1 Mayor Norton agraecd that the whole matter of insurance would take painstakint attention. Councilwoman Witherspoon s4zsd if other cities were confronted with the sane kinds of increases in their insurance. e. George SLps1, City Manager, raspomdsd that other cities were won on the problem, and he acid he thought something would happee on the subject se . NOTION PASSED: The maims to amend the 1976-�77 budget in the amount of $232.000 pasted ueeeiaoausly. Coueeellass Beerwsld spoke as chairmaa for tbs Finance and Public Works Committee, saying that as chairman he vented to appear soil in advance of the is -depth discussioe of various City depertmestal 'gadgets, and the General and Capital Improvement sad ether fug to sak for bred pots guidelines for conceptual approaches to the budget. if the mil could eve the Committee's recommendations. Bch they bad is hexed, it would help the staff approach the budget conjoint 2:1 -35 1 1/3/71 with department heads and the finance committee in a more considered way as they worked toward common goals. The staff had asked the Finance and Public Works Committee to draw up such guidelines. Discussions in Committee had covered a variety of budget -related matters. NATION: Chairmen Berwald moved, seconded by Beahrs, that Council approve the follawing guidelines for benefit of staff in preparing the 1977-78 budget. 1. CRadral F'hilatao„,,,m The 1977-78 Budget should be a "hold -- the -line" budget with no major program expansions but recognizing that inflationary growth in expenditures is unavoidable. 2. Service Levels Existing service levels are generally satisfactory and the 1977-78 Budget should reflect no major curtailments or expansion of services. Council should be aware that additional demands on staff and additional programs and services add new elements to compete for existing revenue. The result is that either exieting programs and services will suffer or that additional revenue will be ae c es sa ry . 3, Financial Reserves The Council should establish an objective of creating a separate emergency financial reserve of approximately $2 million. This reserve should be established in the 1977-78 Budget if possible, but with the 1979-80 Budget at the latest. This emergency financial reserve would be used to provide for unique financial contingencies. 4. l t rovemeeit Frogr sa The 1977-82 Capital Improve- ment Program should provide, as a target amount, $1 million per year for capital improvements exclusive of streets and utilities. Next year and in the future significant financial commitments will be necessary to pursue long-term power supply alternatives and to solve the problem of solid vaate disposal. S. Fees/ Charpesa and Taxes Based on the guideline proposed under nuibsr one above, the City's objective is to avoid any additional tax or increase, in currant rates. b. fnterS ►sri ente3 Coopsratica The City should work with Santa Clara County to assure Palo Alto receives its "fair share" of municipal -type services provided by the County. Palo Alto should continue to work with Santa Clara County and neighboring Cities, and other agencies, to take advantage of opportunities to combine or coopsrete in providing services when significant savings or service level improvements can be realised. 7. !raductivity La�rarsssent The moat significant area for limiting the growth of expenditures is through productivity improvement. In conjunction with the review of the 1077-78 Budget, staff should discuss with the 'inane. and Public Works Committee a comprehensive program for improving productivity, including methods of implementation sod levels of effort. S 9 8 1/3/77 Councilman Sher asked if the seven guidelines had been selected from topica which had been raised in Finance and Public Works Committee meetings. Receiving an affirmative answer he said he thought the item etating there would be no increase in rates yet the need to create a $2 million reserve fund might make such an increase necessary. Councilmen 13ervsld answered that be realise* the year in which that goel would be realized might have to be moved back. Councilman Sher said that talking about revenues before it was known what expenditures would be necessary made it difficult for him to adopt the guidelines. Councilman Berweld said that the guidelines were not firm, that they set up goals toward which City government would work, with the realization that perbeps they could not always be set. Councilman Sher responded that he was 100 percent for economy and fiscal responsibility, but when specifics were involved he tented to be prudent. Coincil,aa Sher referred to the emergency financial reserve, and that an operating reserve in the capital improvement program bad also been talked about. He recalled that a two-thirds vote was needed to draw funds from that capital improvement reserve fund. He said he wanted to maintain that procedure, and if the guidelines proposed a change in that two-thirds vote requircaat he treuld want a discussion on it. He continued that some discussion was needed on the capital improvement projects that had been frozen. Yong term power alternatives and solid waste disposal were very high priority matters --he suggested that some of the funds might be raised out of utility revenues --but he did not want to give those two matters highest priority in any eventuality. He eentiooed Greer and Eleanor Parks as important items as well. By voting for the guidelines, he went on, would the City be rocking itself into retaining the existing fees? He vented Council to retain the possibility of staff recommendations for changing some fees. He underlined the difficulty of having any finality in acquiring and maintaining financial reserves until it was known what improvements would be needed. He *aid that if the guidelines secant 'economy and f istal responsibility" be would vote for theca. Councilman aberweld said tbs guidelines were not so general as the two words implied for the seven points were more 'pacific parameters than that, though grouped to sheer they were policy guidelines, and were meant to be "...a pretty hardline policy." Op the ratter of energeecy financial reserves, OPMS definition of that tsreaa was needed, for those words were tntaaedad to stared for yore than just a device to approve mid-term budget t*cremsss. The eeleectioae of the two matters of power alternatives sod solid waste disposal were not meant to be ' exclusive, for inclueion of other significant, eleteesary financial caartmttaests sees implied. He said that it vas pests{ally ackeowledged that there might be increase in property taxes, but tbett no fawn incsessess upward were araticipstead, though decreases was not precluded. George Sipel, City Manager, added that thence guidelines were developed at the request of staff, and that when they were developing the budget they mead adhere to the principles itebsreent in the *even pelmets. Staff !aped that by baying these guidelines on baed they could avoid suggestions on than part of Council "...to add this or delete that," alter these guttelleee were sot viewed as inflexible. "� f Councilmen Seabee said that explanations to this time had beat adequate sad that bs agreed with Mr. Steel's added comment*, for *ftee he had thought the structuring of tbs City bseigst wee "an interesting exercise and that's all it boa been." He said he realised the taxpayer sear sort seethsaisat1c alma cresUM muses so that politicians could Kiedelp a their shine. 99 1/3171 Vice Mayor Clay said that in principle he favored the proposed budget guidelines. He approved the realistic tone of the general philosophy but noted that in the last sentence about service levels that it seemed some programs would have to give way if demand for new services was felt to be greater; he questioned the suggested $2 million for financial reserve and $1 aa11lion for capital improvement fund, as being undefined.for they lacked relationship to existing goals. He thought some specifics should be cheesed. Councilman Berwald responded that the general philosophy of no major program expansion meant only that no major expansion of exintitrg programs would be undertaken, for would any new programs be started. He acknowledged that the dollar figures were not in relation to certain goals anal therefore were vague. Mayor Norton said be thought the Committee had done a good job. He approved the goals of economy and efficiency in government while noting that in general Palo Altana preferred tc live here and perhaps pay more in order to get a higher level of services. Some of those services were streets and sidewalks, street trsse and parks, and he observed that maintenance of those had been deteriorating. He stated that the guideline of not considering any new sources of revenue was wrong. He, himself, had for some time supported a higher tax Corrected to maintain services that made Palo Alto a good place to live. See pg660 Councilman Eyerly maid that the staff did want to hear C ncilmembera' points of view, and that last year staff had been told, after some twenty budget meetings, and therefore rather surprisingly, that Council was really serious about cutting the operating budget by about $1 million, which put considera►bie preesure on tree to find ways of achieving cuts which would totals that amount. These guideline* well in advance of actual budget allocations were aimed at forestalling a poeeible reoccureuce of that. With that evening's action on insurance $1,750,000 would be in an unappropriated capital improvement fund. He concluded that if, being already halfway through the year, they were able to maintain present fiscal policy, Palo Alto would probably wind up with $2 million uncommitted. That protected reserve was earmarked for adverse circumstance, litigation, labor settlements, and the like. As for the capital improvement tumdconseabavaally Committee members vented to reinstate all the programs now suspended, Out they thought it was more prudent to structure a capital improvement fund first. He said he thought funds for long tern power alternatives and solid west* di/petal would cone from utilities. The Committee wonted to keep users fees at what they had been the past year, but sot inflexibly. Summing up, that evening's discuesioes were not meant to tie Councilesebers down to any tight decisions. Councilman Comstock spoke in favor of Mayor Norton's comments. Be said his attention was on the capital improvement fund policy, finding a good decision about whether to and how such to restore. Se foresaw =mbar rousing round of discussion about increasiai revenuers by way of a utilities tax. He anticipated people coming to the Council with requests for funds without being ware of this policy, which would be rag tenable. Councilman Saari said that the rigors of inflation had made many people sympathetic with service -level cuts, and that sco osy in government might restore people's trust in government. 600 1/3/77 60 Ce Councilman Beriald asked that Councilmetabers not except the fifth item having tc: do with fees, for with the general philosophy of hold -the -line it was thought no increase would be necessary, for the Committee believed that if they did a good job that would be the case, at least for this fiscal year, and perhaps ceixt year as well. He said that without the assertion about no increases in fees a loophole would be left for those who vented to it. off an additional abate of the taxpay+ere's money, such special interests se employees and othaee* in the community, and he added parenthetically that almost everyone was a member of such a special interest group at one time or another. He expressed belief that the guidelines would be well received by Palo Altana. The saw would be true for staff, he said, for it would diminish vacillation such as to coaaaider a utility refund in one six-month period and teen consider initiating a tax within another six-month period. Councilman Sher alluded to Councilman Eyerly'e projection that within the year it was likely there would be $2 million in the unappropriated capital improvement program, which, au he himself understood, was not to be confused with the emergency financial reserve. Re further understood that effort would go toward adding $1 million per year for capital improvements, so that each year staff world have that drafted on to the budget. The statement in Item 5 assumes that the $2 million in Item 3 and the annual $1 million in Item 4 cau be raised without raising any fees or adding new sources of revenues. Those disturbing end seeming contradictory reaolvee made htm uneasy, in view of the discussion about raising service levels also, but, he continued, if voting in favor of the guidelines did not prevent him from going back to look at services that were needed and revenues that were forthcoming, then he would vote for them. AMENDMENT INCORPORATED: Councilman Comstock suggested that the words "the City's objective is to avoid any" replace the word "no" in Item 5. The addition of these words would avoid putting the Committee into a "no retreeet" situation, for msny unforeseen things could happen. The Finance and Public Works Committee members unanimously accepted that suggestion. George Sipel said that he would anticipat$ using a large part of the money now in the capital improvement fund for martin the $2 million objective for an eeergency reserve fund. 8e said he would anticipate $1 million of "near" money gciing into the capital Improvement fund next year. About 30 percent of the financial reserve, then, would cos from the mousy now in the capital improvement fund. Councilaeeen. Sher remarked on the gap between Me. Sipe1' a and Ccu ci1sa Ryaer1y'e underetandings, for Items 3 and 4 were separate items. Re send he understood by tb t that the capital improvement fund would go dean to Immo, end he thought the gooey should stay in the fend and be built up. Be did not vast it taken out of there to create 411 operating reserve fund. The capital improvement fund Lad bases regarded as useful in "dire emergency" but aothiug short of that, and be dial not ,sent to vote for the transfer of funds George Sipe/ bad suggested. Re asked Mayer Morton which of tbs procedure* be would be votes on. Mayor Nortoaa relied that in his opinion C.ouasrillmsn Sher should vote on whet Is written, for Mr, Sipel was bound by that. 601 1/3/77 0 Councilman Carey asked if unappropriated swerve, whether in capital improvement funds or in emergency financial recerve, required a two- thirda vote by Council in order to be appropriated. Mr. Sigel replied affirmatively. Councilman Carey concluded that ia either case unappropriated funds had to be obtained in the same way, and so no distinction needed to be made. Councilman Sher said that the purpose for which the funds were intended was different. He repeated the wish io keep the money in its specified fund. Councilman Eyerly recalled that one year ago tears was a $4 million cushion, and today Palo Alto had a $2 million cushion. He said Mr. Sipe' could probably say if the $2 million had gone into operating or capital improvement expenditure,. He felt a $2 million cushion was a desirable objective, before the fund "slipped" any more, for each Council meeting provided some opportunity to expend more on another item. MOTION PASSED: The motion to approve the guideli.nee proposed by the Finance and Public Works Committee for setting up the 1977-78 budget passed on a unanimous vote. Ptah PROPERTY PURCHASE AGREEMENT iCMR:565:6) MOTION: Councilman berwald, chairman of the Finance and Public Works Committee, moved an behalf of the Committee that Council approve the recommendation of the committee on the Power Property that the purchase price will be $211,000, of which $1,000 would be a non-refundable option fee; and further, that the City Attorney and the prospective buyers eit down with staff to discuss apaecif is arrangements for the property to be used only for housing to the elderly for twenty years or looser, and authorise the Mayor to execute the agreement with bronco. AGREEMENT FOR SeR OF REAL PROPERTY POKER PARCELS -365, 331, and 323 GRANT AVENUE/334, 360 S EIDAN AVENUE WITH WOO DEVELOPMENTS, INC. Councilman Sarwald said that included in the motion was the understanding that in the agreement would be ioput from the Fitting Commission, the Housing Commission, and the Architectural Review board as noted in the lest paragraph of the memorandum from Clayton E. brown, Director of budget and Staff Services, and Charles Welker, Assistant City Manager. Be said that Sylvia Semen of the Housing Corporation had asked that bRAMCO give some show of good faith that the development was going to be used for housing for senior citizens for testy or more years. The Housing Corporation also asked that included in the torrid of the agreement would be the stipulation that if the property was sold the City would have firstright of refuoal. Mk. Sawa said the matter of houses for the elderly could be included in the agreesent if egread jto it. SSANCO had awed in an earlier diecusa loo to subsidised housing under Section 8, which was standard procedures. Ths sales agr+eea t at present has an agreement to maintain the building in housing for en additional twenty years. 602 1 /3/11 Councilman Berwald said he thought the Housing Corporation seemed not to require a guarantee. Councilman Carey said he thought Section 8 of the agreement stipulated that the housing would be for elderly only. City Attorney Booth said Ms. Semen was concerned heat there was no requirement that the development be kept in .lour- and moderate -income housing after twetr.ty years; on the matter of right of first refusal, he said the federal government preferred in the matter of foreclosure, that the property be turned over for as much as the property would bring, and Palo Alto might not be grilling to pity ac much as an outsider would to maintain that property. The provision could be written in, subject to federal approval. Thomas %ouma, BP.A CO, 265 Lytton Avenue, said that he thought the agreement worked out with co constraints to work with the federal government. Housing and Urban Development (HUD) has agreed to insure the mortgage, though they had not given any money for the project, and they would, therefore, ":hold harmless" whomever picked up the mortgage, in this case GN(A, and so, in case of foreclosure, HUD would have sole right to determine who could buy the property, and under what terms. That would indicate that the validity of an agreement between RRJ4CO and the City of Palo Alto would be questionable. HUD required a 40 -year commitment to low-- and moderate -income housing. BRAfiCO, on top of those HUD conditions, had tried for Section 8 subsidies for twenty years, which is an override on HUD, allowing tenants to pay no more than twenty-five percent of their rent if they qualify. SRAMCC's relu_tante to go more than twenty years was based on the nature and scope of subsidy programs of the future and their viability in relatioe to this particular project. Sher asked, referring to paragraph 8b about applyi.ug for successor fuu4a, how Mr. Douza saw his situation in relation to housing for elderly wete no successor funds forthcoming. Mr. Douaa replied that SRAKCIOs situation mould be that which was outlined in the regulatory agreements they mould be signing: a 40 - year mortgagee would still exist with HUD which defines 8RAC0's obligations in design, temency, pay ante, management and the like. BRANCO would look for another mortgagor if their rates made it uuecanoaaieal to continue. though in his experience HUD rates had beeen. lowest. Councilman Sher asked if the terms and who could pia routed to, and for bow much, wore set at the outset of the agreement, and WAS it subject to being renegotiated. Mr. Does replied affirmatively to both questions. Council men Stier said that then BRANCO could rent to anybody, so that in the bast twenty-year period the veinal* sight not be available for the moderate -income elderly. htr. Douse replied affirmatively. Couacila,sn Sheer then offered that in the sales agreement Palo Alto could impose its own requirements for the second --year period should that ti:owe about. He asked if Mr. DO Ma thought HUD would object to that. Mt, Douse replied that he did not know if that would pose a major impediment to BUD, for, as insurers of the mortgage they were concerned *Wet recoverability on the part of BRANCO, so that enything that affected the marketability of the development would concern them, Were there to be s boom in buildings deasigoad for elderly in twenty years, BRANCO'. position would be worsened. 603 1/3/77 1 Councilman Sher said he would prefer BRAMCO maintain its flexibility with a commitment to Palo Alto. Mr. Douma said BRAMCOb essential position was to provide housing for elderly with low and moderate incomes. That Section 8 existed to provide advantageous rates was an advantage they would like to utilize. Councilman Sher said that Palo Alto wanted to make the moat of their stock of housing available for low- and moderate -income elderly, and so he wanted right of first refusal included in the sales agreement to T3EtAMCO. Mr. Doucaae replied that he did not know tow those wishes would best be dealt with. Councilman Clay asked what would happen is the case of forfeiture: was not the land acquired subject to certain specified covenants and conditions, and therefore Palo Alto had nothing to worry about? Re asked for confirmation from City Attorney Booth. Mx. Booth replied that "some strange things happen with HUD," although what Mr. Carey had said would ordinarily be the case. Councilman Carey recapped that the h9JD aaortga3e insurance ran for forty years which resulted in below --market interest rates, and he expressed disbelief that such advantageous rates would continue to be granted unless the corresponding social benefit, in this case housing for elderly, ways resulting. The reason that was available were 1) federal insurance which allowed the developer to obtain interest at below market and 2) the Section 8 subsidy wag added. `therefore, though the developer may have lost his Section 8 money Palo Alto was stipulating that the purpose of the development ramie in its initial purpose of providing low- end moderate -income housing for eldsriy. Councilman Carey said he did not now if that could be a valid stipulation, but the HUD low --interest loan would still have to result in song social benefit: ha offered the idea that that w,as Palo Alto's assurance that the development would retain its character. Mr. DowM confirmed that HUD had a formula which had to be adhered to in setting rental rates. Councilman Carey acknowledged that to ask a developer to continue to rent at lob rates in twenty years from now, were he not able to obtain Section 8 money, mould be the game as asking hie to take a loss, and if the City would not be willing to subsidise the rents ft would be asking too much of the developer. He said that perhaps the City might entertain the likelihood of subsidising, in which vise it word be within its rights to ask the developer to maintain low rents. Councilman Sher asked i ` ; were possible to pay off the HUD mortgage in twenty years. Recei ,:an affirmative from Mr. Douai, he went on to say that then all , HUD requirments could be dispensed with and than the developer would be free to charge prevailing rents. Mr. Douse replied that HUD had a series of restraints on prepayment, ttrravgh it wee conceivable that the developer could prepay and remove i restraints Councilman Carey said that the developer could pay off the moms.$0 but that the answer to that contingency, in Section ffd, wee to add a sentence saying that "after taking all reasonable steps, if the der cannot attain Section S or its egaivaleat at that time that the City in it, option may provide sorb as.istencs in sitar amounts; J, 6 d 6 1/3/77 and if it so elects to do, buyer shell continue with restrictions on uee and reek for the period of the City's subsidy." Be reiterated that unless the developer could get some subsidy he could not rightfully be held to the low rent schedule. Mayor Norton observed that in the past the Webster Block and Lytton Gardens had had a massive City subsidy because the land had been sold at a low price, although with an option to repurchase in fifty years; in the case of the Power property the land was priced at something over what the City had paid for it, and he questioned if it wen fair for a person buying at such a price to have to adhere to City requirements over such a long period of time. Keith Claxton, 327 Highland Terrace, Woodside, partner in BRAMCO, took exception to one of Councilman Sher's assumptions that certain actions might be taken by BRAMCO in twenty years, which he implied Councilman Sher might think were exceptional. Mr. Claxton said that Councilman Carey had stated how a developer might feel. He emphaeiaed that MUD was in the driver's seat so far as rents. He said BRAMCO was willing to submit to the agreement as it stands; further he would have to see what the City agreed on before he would commit himeelf, Councilman Carey asked if Mr. Claxton would object to an agreement with the language added that he had suggested, about a City aubaidy if BRAMCO way, unable to find it elsewhere. Councilman Sher asked :if the understanding was that the property was to be kept in rental houairtg for the forty -year period. Mr. Claxton replied that Councilman Sher continued to add restrictions to a property for which BRAMCO tad paid a market price, which, he said, restricted "..,our ability to react to our environment" even into the twenty-first year of 1 RAMCO's environment. The housing was dedicated for a forty -year period, it was tied to Section 8 money for twenty years, the land meets all the objectives of the land bank BRAMCO accepted the land in an as -is condition, and pays Palo Alto the market price, and perhaps even exceeds market price. Be pointed out that all the constraints eroded the value of the property. Councilman Sher repeated that the City had land -banked the property for a poxpose, and he wanted to cake pure tbst purpose was fulfilled. He noted that his questions were a part of his job as a Councilmembor. He said be had same concern that the property aught be converted to condominiums were financing not available similar to Section 8, in twenty year*. He said he did not want to kill the deal, but that it wse hie responsibility to explore that question. Mr.Claxton replied that what Councilman Sher was exploring *s au erosion of his, Claxtom'a, flexibility on the property. He said be thought SBAd4CO had net the objectives. Janet Owen, 863 Moreno avenue, spoke for the Mid -peninsulas Citizens for pair Hoersing (MCPH) . She said MC714 had several concerns about the Power property: she expressed concern that the minutes for the Finance and Public Works Committee meeting wiaTetc not available before that evening's Council meeting for that record was needed for study in order to make good decisions. * if wee in accord with staff recommendations "so far as they go," yet IPM could not endorse sale of the last piece of property in the /and bank without assurance that that property would continue to serve urgent City needs for more than twenty years, She +Enid the *else sagreement should contain wording to assure us, of the land for s sbeidiesd residential housing far elderly for the 405 1/317?. forty -year life of the mortgage if any programs were available to make that possible. In addition, if the property was to be sold any time before that forty -year period passed, the City was to have right of first refusal of the property at fair market price. She said MCFH understood that these provisions were agreed to in the Finance and Public Works Committee meeting. If the agreement, as presented, was sighed, it would be the first time the City hard given up all control over land bank property to receive so little in return. She said her comments for MCFH should not be construed as flat opposition to the proposal., yet they had always worked for high quality, assisted housing with the best value for. City investment, and they would continue to express those concerns. Without some limitation on income levels for more than twenty years the City should not sell the land. The foregoing, she said, was MCFH's official statement. Clarifying, she added that MCFH had been concerned over the possibility of sale, rather than foreclosure, and it was known that in the matter of foreclosure people had to accept HUD's action. She thought it possible that the City might persuade HUD to work with theme: The City's sale to BRAMCO gave tacit approval to BRAMCO and so the City should have the right to step in should BRAMCO have to sell the property. MCFH was also concerned with a subsidy for the second twenty years, but only if such subsidies ere available --federal, state or city. The requirement that such subsidies be reasonable should ale() be written into the agreement, so that they could be discussed. MCFH in no way meant that any developer should rent at subsidized rates when the subsidy was not available. If HUD has, at the aid of twenty years, another program such as Section 8, nothing in the sales agreement requires the developer to avail himself of it, and she felt there ahoeld be a commitment though it need not be inflexible. Councilman Berwald said he did not want to negotiate the purchase agreement at the Council meeting, for it appeared that both the City and BRAMCO were working together in good faith, nonetheless he thought that some assurance was needed that the property would remain in low - and moderate -income housing.for more than twenty years. He referred to page 12 of the Finance and Public Works Committee minutes of December 21, in the third paragraph and read one of his counts, "Chairman Berwald asked if they were in agreement that a reasonable protection should be afforded the City so that the property continued for a reasonable period of time in the use for which it had been purchased by the City and consistent with the use for which it is intended. Councilman Beahrs euggeste4 a maximum of forty yeses in Section 8. Chairman Berwald did not want to set years t+e:cause he thought the developer and iris. Takata could perhaps get together and with the technical advice of the Housing Corporation work something out." He said he thought these recorded comments represented the spirit behind the negotiations. MOTION: Councilman Berwald moved that the agreement be referred to ,staff with instructions to negotiate with the property owner to determine haw the City can be assured that the purchases will make "good faith" efforts to secure Section 8, or substantially equivalent, areistance adequate to assure continuation of the property for low' and moderate - income housing for elderly following the first twenty years of the contract, for the ensuing twenty years, or major portion thereof. Ibe motion failed for lack of a second. Councilman Carey asked the developers if they were still in agreement as to a modification of the contract, continuing Section 8 or equivalent 6 0 6 1/3/77 40C^ beyond the twenty -;ear period, but not for more than the forty -year life of the mortgage, if such subsidy, perhaps even provided by City, were obtainable. He pointed out that on page 6 language occurred saying reapplication for Section 8 funds would be applied for at the appropriate intervals. Learning that reapplication had to be made every five year for Section 8 funds, he suggested the same language be attested to for the subsequent twenty years, Mr. Douma replied to the first part of Councilman Carey's statement: BRANCO was willing to commit themselves for forty years to the HUD mortgage, which, by definition meant low- to moderate -income housing. In addition, twenty years had been committed to another subsidy, but, were BRANCO to sell the property, BRANCO would stipulate in the sales agreement that the HUD mortgage: not be paid off, which would assure the property would remain in low- and moderate --income rental. Councilman Carey asked if BRANCO would permit the conditions of low- and moderate -income housing for elderly and residential that run with the lend, run for forty years and not twenty. Mr. Down replied that he would be agreeable to that. Mayor Norton suggested Council take a break and let the attorneys work things out. Council recessed from 9:55 to 10:10 p.m. Mayor Norton, in BRANCO agreement his colleague as Attorney, to sue during recess. reconvening the meeting, called attention to the once more. He asked if Mr. Claxton could speak for well as himself, and he requested Mr. Both, City up what had taken place between himself and BRANCO Mx. Booth amid agreement had been made eith BBANCO to invert in the last line of page 5 of the agreement, the four words which made it read, "shall be used solely and exclusively for low- and moderate - income rental residential purposes for a period of forty years." Councilman Carey agreed with the sense of that addition. AMENDMENT: Councilman Carey moved, seconded by Robins, that the last sentence on page 5 of the agreement conclude with the words "...shall be used solely tnd exclusively for low- and moderate -income rental residential purposes for a period of forty years." Mayor Norton assured that that amendment vas agreeable to Mr. Claxton. AMENDMENT PASSED: The emendment passed with a unanimous vote, Councilman Ey.rly out of chambers. Councilman Sher said be confireed durtt g the recess that the BRANCO officials were also agreeable to inert a clause in the agreement to the effect that the City would have the right 01 first refusal should the project go on the market. AMENDMENT: Councilman Sher moved, seconded by Berwaid, that the City Attorney, workleg with BRANCO, work out a clause agreetable to both giving the City of Pala Alto right of first refusal. Councilmen Sher and !Mayor Dorton agreed that the City, or the City designee, have right of first refusal, for the Bowing Corporation of Palo Alto was also a significant party in this matter. 6 0 7 1/3/77 Councilman, Carey brought in the consideration of time --he urged that the applicant and the City have some agreement on how long the City was to have "to make up its mind." Mayor Norton suggested that two months was a reasonable length of time and his suggestion was agreed upon by other Counctlmembers. Mr. Claxton pointed out that a typical time offered to exercise such an option was thirty-one calendar days, or twenty working days. He agreed with Councilman Carey that notice needed to be taken of the time during which a prospective buyer was in the mood to buy. AMENDMENT TO AMENDMENT: Councilmen Carey moved, seconded by Beahrs, that the right of first refusal contain provisions that any bona fide offer to purchase the BRAMCO project t be sent to the City, and that the City shall have thirty days after receipt of that offer to accept or reject on the same terms, conditions and price. Councilman Sher, responding to the question of whether or not it was acceptable to him to have his motion amended, said that the standard right of first refusal incorporated those matters in Councilman Carey's amendment. He conceded that thirty days was a little too brief a time to give the City to act. Councilman Carey stated that to tie up a bona fide offer to buy in order to exercise right of first refusal was putting a burden of time on the seller. Councilman Carey enumerated the conditions BRAMCO had already acceded to. Mayor Norton pointed out that voting on an amendment to an amendment was incorrect procedure. Therefore the motion Cvuncilmembers voted on was an amendment stating that the City of Palo Alto have right of first refusal., the City Attorney to work out with BRAMCO the glee within which the City had to act. Councilman Carey could then offer his amendment, AMENDMENT PASSED: The amendment that the City have right of first refusal within an agreed time passed on the following vote: AYES; Beahrs, Bewald, Carey, Comstock, Eyerly Norton, Sher NOES: Norton, Sher » DAWINT: Councilman Carey mowed, seconded by Beahrs, that the right of first refusal have general provisions that any bona fide offer in writing to purchase the building be sant to the City, and after receipt of that offer the City shell have thirty days to accept or reject it on the sake terms, conditions and price. AMENDMENT PASSED: The amendment to the amended motion passed on the following vote: RYES: Beahrs, Bervald, Carey, Clay, Comstock, Eyerly, Witherspoon NOES: Norton, Sher 608 1/3/77 Regarding the main motion, now before the Councilmembers, Vice Mayor Clay pointed out that the City had bought the property over a year ago with the conditiou that if no development was proposed in that period of time the City was to re -sell it, presumably at market value. A developer was going to carry out the purposes for which the land had been bought. Vice Mayor Clay expressed the hope that the conditions which had been imposed on the purchaser would not discourage others from the private sector from making similar proposals. He felt the City's conditions had damaged likelihood of further private developers from undertaking similar projects. Councilman Sher said he did not view what had taken place in relation to the BRANCO in that negative light. He noted that the proposal had come to Council with severe time constraints and that within that one evening they had only made two changes in the contract, both of which the developer agreed to. He said he hoped the negative rate Vice Mayor Clay had sounded would not result in a negative vote. ?4AIN MOTION AS AMENDED PASSED: The maim motion that Council approve the agreement to sell the Powers Property to BRAMCO, with changes ELECTRIC UTILITY RATE DECREASES (CMR:559:5) Ed Aghjayan said that the report from staff was quite complete, The City, due to successful litigation, had received in excess of $2 million es a result of a wholesale rate reduction reaching back to March, 1974. The money had been in an escrow account. Staff recce eased that the funds be set aside in a reserve account for use in non -recurring utilities projects, and that the electric, rates be reduced by 7 percent effective January 1, 1977. MOTION: Councilman Berwald introduced the following resolution and moved, se<:onded by Beahre, that Council Adopt the resolution revising the utility rate schedules effective Jauusry 1, 1977, and that Council refer the staff recommendation relating to meiateioing the funds for system improvement projects to the Pinen a and Public Works Committee. RESOLUTIO ES NO. 5325 entitled "RESOLUTION OF THE COUNCIL OF TRE CITY OF PALO ALTO AMENDING SCHEDULES E-1 AND E-2 OF PAID) ALTO UTILITIES RATES AND CHARGES TO DP.C SE RATES FOR DOMESTIC AND COMMERICAL ELECTRIC SERVICE." Richard Rosenbaum, 717 Garland Drive. spoke of his ids* of himself when he was a Councilmember as being "close" with money. yet be would never have thought of keeping, the $2 million, He said he appeared before, the Council as a "middleman." The Bureau of Reclamation had raised rates, unjustly. in the 1974 Co cilsebaers' opinions. and they took the matter to court, while at the sass time having to taies rates to customers. The court had upheld Councilmeiberal opinions, and hed ruled the rate raise wee unjustified. Re said that for that refunded money to be put into some fund -raisins attempt for the City was "c:aaeeesly." We felt that mater should be returned to those who had ui justly had to pay it out. pother' by merely 1cw. tng the rates for the proper period of time until the funds bad 'men "repaid.fe If money wee needed for capital improvement projects the rates could be adjusted at Chet times. Re recalled that a few years ago it bad been decided not to have separate reserve funds for utilities, but to maintain all funds in vets capital improvemeet fused. 609 1/3/77 Councilman Beahrs said he subscribed to Mr. Rosenbaum's views but he questioned the worth of seeking out those residents who had since moved. Mr. Rosenbaum agreed there were problems connected with returning the funds, and that it was only one reasonable approach. Councilman Comstock ascertained that the money had in fact been paid by the Bureau of Land Reclamation, and went on to say that he liked the idea of returning the money to users, though perhaps it might coot more to disburse than if the rates were adjusted. Councilman Eyerly said the Bureau had stated that within the conditions of Palo Alto's contract it was legal to keep the money for reserve, but only within the electric utility. Purchase of Barron Park utilities from F-0G4gE would be one large expenditure. Customary procedure had funded electrical utilities from the capital improvement fund end not from an assessment district. More litigation was underway on Central Valley Project (CVP) Case I1, and also longterm power alternatives, so that with such expenses falling due lowering the rates seemed incongruous. Councilman Carey questioned whether or not it would be appropriate to spend the money in litigation about electric utility. Councilman Eyerly said it was not inappropriate. Councilman Carey said he thought the money should be returned, one danger of not returning it was that ways to spend it would occur. He felt the matter of how to spend the money should be returned to the Finance and Public Works Committee. He felt having the money and spending it wee a far more desirable sequence of events than having the needs arise then figuring out how to get the money. Councilman Sher eaid he supported sending the matter back to Committee, though he agreed with Mr, R.oeenbaum'c thoughts. He raised the question of what might have happened had the City not received the money, for the other matters relating to the electric utility had to be worked out anyway, He lauded the good resulting from Palo Alto working with other cities in Northern California Power Aaisoci.ation. Ho recalled having attended the Sacramento "hearing:" when the Bureau of 8teclamatioa disclosed their Large proposed rate increase, during which no questions from subscribing cities were permitted, and that on the bests of that "hearing" the court challenge, the happy result of which was now in band, bed arisen. Councilman Mehra asked bow much the gross recovery had been, and how much the attorneys "got out of it." Ed Aghjalraa, Director of Utilities, said fess totalled between $100,000 and $150,000. Councilman Baeahre stated that Palo Alto had paid $100,000 to get $2 million. Mr. Aghjeyan confirmed that engineering fees to R.W,Beck and legal fades to Norge Spixgel had cows to betweeu $100,000 and $150,000. MOTION PASSED: The motion that Council adopt the rssoluitive revising the utility rant schedule, downward effective January 1, 1977, and referring the stet recommendation's to the finance and Public Works Committee paeied on a uaeniMaus vote. 610 1/3/77 4102 EL CAMINO REAL CHANGE OF DISTRICT PROM R-1 TO P-^ APPLICATION OF JAMES C. F. SATER (CMR:S32:6) Anne Steinberg, Chairwoman of the Planning Commission, said that the application for rezoning had heard by the Commission on July 28, 1976. me metion in favor of reclassifying the property from R-1 to P -C was approved by a vote of 4-2, one absent. The matter was then continued for review by the Architectural Review board, which required upgrading of the J.andccaping and maintenance. On November 17 the Commission failed to approve recommendation of rezoning to P -C on a 2-4 vote, thereby recommending denial of the application. The argument in favor of the rezoning was that if it remains in non -conforming use, under residential zoning (R-1) uses cannot be controlled during the twenty- to thirty-year life of the building. In a P -C ordinance uses would be limited to those described in the ordinance. The argument against reclassifying for a P -C zoning was that it is premature to rezone this property because a study of El Casino land use is now underway. The land use map now adopted says this area is residential, and establishing a P -C there could set a precedent for other non-residential uses. Councilwoman Witherapoon asked if the proposed land use map is adopted whether or not the, which she thought was multi -family residential, would not the Sater business be allowed to continue under a grandfather clause. Ms. Steinberg replied in the affirmative. Councilwoman %Jitherepoon asked if uses would be restricted in any way during the amortization period. Mt. Booth replied that uses could not be expanded, but that they could go to another use. Councilwoman Witherspoon stated that unless Palu Alto zoned the property F -C it would have no control. Until the P -C was changed by the Council it would be a fixed control, which she found preferable to the floating status of the property at present. Mayor Merton said that the County bad zoned the property commercial and it had been brought into the City under the annexation as R-1. ice. Steinberg said that part of the property hed been R-1 even under the County. Councilman Carey queried tha Commission's reason for switching its approval in July to disapproval in November. Ms. Steinberg said that one somber of the Planning Commission had given as his reason the vow course charted by the adoption of the Comprehensive Plan, but the main reason teemed to be because there was s land use study underway. Councilman Servald asked if it were possible, should Council not support the requested rezoning, that the rezoning be left open until after the study was completed. Mr. Booth said that this matter could be continued for a reasonable period. He asked the attorney of the applicant to comment. Richard Meltnnan, attorney for the Uteri, said he had appeared before the Council soma years back representing the P.1 Cemicio merchants in a "donnybrook" about the widening of the street. Thera bad been a 97 percent protest to the widening and the matter had been continued 611 1/3/77 waiting for a new board to come in which might overrule the protest. He felt the present matter should not be continued. The applicant, whose property was only 28,000 square feet, had been one of the few willing to spend money on El Camino in a non --degrading business venture. His lot size was too small for multi -family. Mr. Maltzman listed the controls on the property that would be available to the City on P -C zoning. If the property stayed in non -conforming use difficulties would arise in leasing to first-class tenants. The terra "amortization" really meant a salvage operation, and properties would deteriorate and the street would be far from the "Wilshire Boulevard of the North" as had been promised ten years ago, were owners like the Saters not encouraged. P -C zoning would remove the uncertainty of a changing area, and it would encourage other desirable businesses. Mayor Norton asked staff what uses would be available to the applicant were the proposal approved. Nsphtaii Xzox, Director of Planning, listed the conditions imposed for P -C zoning and he read the uses of neighborhood commercial, as defined and listed in the Palo Alto Comprehensive Plan, 1977-1990. Mayor Norton asked Mr. Holtzman if those uses seemed adequate. Mr. Holtzman replied affirmatively. Councilman Eyerly asked staff if P -C zoning was included in setting up an assessment district for 1..ndscape maintenance and the like. Mr. Knox replied "yes." John N. Thomas, 4121 Verdosa Drive, spoke in support of the Planning i'jiseion`a decision, for it foreclosed the passibility of others applying for P -C zoning. Joyce Anderson, 3881 Magnolia Drive, approved the recommended denial of P -C zoning because it was not in conformance with the land use map which the Council had just approved. She said the building waa now zoned H-1, and housing would be en three sides of the project. She noted that before Barron Park had been annexed the project had been denied by the Council. The project had been built on speculation, she said, with the knowledge that they would be non --conforming, and now they were trying to "maneuver" approval. She road a letter of August, 1974, sent to Mr. Hawley Smith, attorney at that time for Saters. The letter, from the then -mayor of Palo Alto, explained why Palo Alto, oven in 1974, had urged building for residential rather then commercial, and the Saters had chosen to overlook that advice. In the setter of control by way of P -C zoning, she referred to the Crist building et Hamilton and Webster, which area had beta stoned P -C, end yet Santa Barbara Savings, a commercial use, wee doing business there. That allowed, shoe continued, that the designation "Neighborhood Commercial" had not been clearly defined. She said that the Saters had applied to the County to use their property for a food chain called The Wiseerschaitssl, but that the Saters dropped their application when the County had required a 20 -foot lendeeaped setback. Concerned residents had been told that the term "Neighborhood Commercial" would be defined in the tl Cassino Study now underway, $e. Anderson said, and both Council and residents had put too much time iu discussing the need for improving the area to dismiss that endeavor by reclassifying the property P -C. Sbe said that the attorney bad maintained that the applicants had stated they would go fox the least intensive uses were the property rezoned P -C; the County had said it had to be retail sales or office space, and that had been controlled by perking space available, for the property sae ten spaces abort for commercial seeing. ,a 612 1/3/77 Vice Mayor Clay said that in his recollection the 1974 letter from the mayor was o.-i the topic of pre -zoning, and not about the specific site now being discussed. Ms. Anderson replied that the land was the same though the building was smaller, for the County had required that, and therefore there was lase parking space. Vice Mayor Clay asked Mx. Knox to give his comments. Mr. Knox confirmed Ma. Anderson's remarks, adding that the "sliver of property" zoned R-1 at the rear of the property was excepted from the County's okay for comrserclal zoning, which therefore cut down the space available for the building. Councilman Beahrs ssked if the R-1 be utilized; Mr, Knox replied that in accordance with the requirement Board. Councilman Beahrs asked if property just mentioned could it was being used for landscaping of the Architectural Review the R-1 land was too small for residential use; Mr. Knox replied affirmatively, adding that if '-C zoning were granted the sliver would surely not go for residential. Councilwoman Witherspoon said that if P -C zouiug denial was upheld the uses would be broader --she asked Ms, Anderson what her objections were, for uses would to controlled under P -C and even the amortization time could be controlled. Councilman Carey posed the situation that if the property were zoned P -C the uses would have to be "compatible" with the 1977-90 Comprehensive Plan, which, it was anticipated, would be more definitive within six months. lie asked if it would be poaafble to apply P- C zoning now with the understanding that it would be limited to current usage until the zoning "has been passed." M;: Knox repeated Councilman Carey'a words, clarifying that whatever the final definition of "neighborhood commercial" became would then apply to the property, adding that such was hie understanding also. City Attorney Booth amid that it could be applicable now. Councilman Carey elaborated, saying that ultimately "neighborhood commercial" would constitute a new zone, not a P -C. Ken Schreiber, lAafstant Director of Planning, tiid that more than just use vas involved, "because the P -C also sets restrictions on improvement, and it also talks about development schedule for construction of fences, refuse area, screening and so on;, so there are other thiog• to be gained from the P -C." Councilman Carey said that since it was a brand new building Council had to be realistic, for the building existed end had to be dealt with Anne Steinberg said that at the Playing Commission sting an amendment had been made to the P -C ordinance deleting from "neighborhood commercial" uses, gas station*, restaurants and food service operations of prepared food, The amendment had been proposed and approved, and that had occurred in discussion ou that Sitter request for rezoning. Robert Mess, 4010 Orme, urged Council to uphold the denial of the P -C to the Sitters because 3) the application ves for met existing structure. P -C required that the proposed use have some identifiable 6 1 3 1/3/77 benefit to the City, and he said none was demonstrated on this project; 2) the site was difficult to build upon and the developer needed relief ---that reason did not apply in this case either; 3) in exchange for the P -C the developer will do something of benefit to the City, and no offer to be of benefit had been made. He continued saying that P -C need not be given in order to control obnoxious uses such as adult entertainment for the present zoning forbade it any way; also, were the P -C zoning granted, it would violate tl. Comprehensive Plan, as others had ain't/Ay mentioned. He spoke of the four-pount process introduced by Councilman Carey which examined existing non -conforming uses in comparison with the land use map ---this Sater building was the first to come to notice under that classification since adoption of the Plan, and he asked that that process be applied in this case, He said that if, as was stated, the property deteriorated as the amortization date approached, e requirement could be written into the :coning that the property be maintained to some minimum standard. If that standard was not maintained the City could take ever the maintenance, filing a lien against the property for the costs. Mrr. Moss said that had been done in Chicago. About the assertion that there would be some cost penalty were P -C not granted, Mr. Mose said to the Council, the high value of land had been apply shown in the $211,000 figure on the Power property exchange, and the owner could suffer no financial damage in eventually going into residential property. Sarah Layman Thomas, 4121 Verdosa Drive, spoke in support of the Planning Commission denial, at least until the El Camino study had been completed. During beatings prior to the adoption of the Plan neighbors had pressed for low density development, and Satera had bought the property with that knowledge. Councilman Coaastcck said that adoption of the Comprehensive Pleat had probably brought abort other such situations, though they had not coma to Council's attention, and thst the moratorium was an answer in part, giving time to work out more definitive answers to longterm objectives. The Council could wait and plan to go through the defining process, or accede to the applicants' requests, or arbitrarily select a sone into which they applicants properties would fit. The last was very awkward and could be burdensome for the propertyholder. In the interests of fulfilling the goals of .that Comprehensive Plan he felt it vas best to stand pat, wbicb eeant upholding the denial for the time being, with the fair assurance that the property statue would not change within the next ten moths. MOTION: Councilman Comstock moved, seconded by Eysrly, that Council uphold the Planning Commission relation to deny the application for change of coning from R-i to P -C on the Sater Property at 4102 Z1 Camino Meal. Councilman Sher eeid that his reaction to the application for change of toning vex that it ma premature end he too felt it was bast to await the results of the El Camino Study --that evening's comments reinforced his initial reaction, be said. There was lack of clear definition of what wee meant by "neighborhoodcommercial" but the sports and teunie shop no+z at that property seamed s "nice, close use" so the application could sensibly be denied Councils Carey asked if tbs spplicsnt had to wait nos year before reapplying. gsceiving en affirmative answer from staff be ascertained it would be true of any requested rezoning, noting that the Planning Comwissian wee free to recommemd a suitable rezoning. 14 /6/5" 1/3/17 City Attorney Booth agreed, saying the applicant could also re- apply bevieso of changed circumstances, which, in this case, seemed unlikely, Councilman Carey said that in the interests of what was possible and what was consiatent Council would do best to leave the matter to the Planning Commission. He said he supported the recommendation, though he wondered if, from a procedura4 point of view, it would not be best to have a motion to table. Mr. Booth replif.1 that procedurally it would be no better, except that it would free the applicant to bring his request up sooner. Councilwoman Witherspoon said use at present, and she asked non -conforming use to another the Applicant had non -conforming if it was possible to change one non -conforming use. Mr, Booth replied that it could be done as long as intensity was not increased. He said some building permits would be required and perhaps the Architectural Review Board would also be involved. Intensification would be judged case by cage, for example, a drive- in restaurant mould be too intensive. In 1974 the Saters had intended the property for a floor -tile shop, and so the intensity had already changed once ---such was the case with almost all El Camino properties. Mayor Norton remarked that the vaguenese of "neighborhood commercial" made people uncomfortable. The present uses are defined 'neighborhood commercial' as defined and listed in the Palo Alto Comprehensive Plan 1977-1990, and he asked Mr.. Ma1trmau's reaction to adding ...or as nay be defined and listed in any lend -use regulations refining and defining such uses as may grow out of the present El Camino land use study, whichever is the more restrictive." He asked if Mr. Kaltman would go on record as agreeing. Mr. Me1tsman replied that though it seemed like a Pandora's box, he did not think he had any objection to that language. The risk that of the El Camino was that see definitions would be narrowed, and he said he assumed that if it wits found that Sherwood's Sports Shop did not comply that the shop would be soiled P -C in a non- conforming use, which would make it all right to continue that present lease and not have to "kick out the present tenant." Mayor Morton asked if he would be willing to "kick out the present te nt" were it found to be non -conforming. Nr. Maltsmen said that is could not ask hie tenant to do that, and it lass from such situations that lawsuits gres. Mayor 3orton said he had been trying to be helpful, but he had to allow for such contingencies, though he did think the tennis shop would probably be compatible with neighborhood corsdsrcisls NOTION PASSIM: The motion to sustain the planning CaMMissioo recommend- ation to deny the application passed on the following votes £!U3 Buhr', Bermald, Carey, Comstock, lyerly, Sharp Witherspoon NOBS: Clay, Norton 615 1/3/77 F.8 CIS{ -SST 4F COUNCILMAN CAREY RE: LITIES IId 7fla lija CMR: Tom Barrington, 1250 Montebello Road, said he had done the legwork on the proposal to underground the wiring in the 700 block of Ramona. He saw it as "a small, and very timely project," between Forest and Homer, involving the wiring the length of three poles. All but one of the property owners, wham he had been unable to contact, had approved of the project. He said he was the owner of three of the properties on the street; the_undertaking was timely for construction of eight condominium emits was underway, taking 150 feet, along with 200 feet at ForesRt and Ramona for which some preliminary approval had been obtained. Councilman Sher referred to the staff memorandum on the topic saying 1) the area did not have the highest priority so far as undergrounding was concerned; 2) budget constraints require a careful look at all undergrounding projects, and over the past two year no proposals for undergrounding had been approved by Council; 3) the City is a frontage 1 carer because of the Downtown Library, and would have to pay 80 percent of the cast, amounting to $22,300, and the other property owners would only pay $6,700. Staff suggested that as an alternative the property owners might be asked to pay s greater share of the cost. Councilman Sher asked Mr. Harrington how great a share would the other property owners be willing to pay. Mr. Harrington responded that he was curious why, since this was the third council meeting in which this item had been on the agenda, the staff waited until the third meeting to write the report. He continued tha,. the City had made the rules on who paid what in this kind of project, and the rule said that the City paid 75 percent of the; cost, and the propertyowners 25 percent, and so that woul. mean that the answer to Councilman Sher=s question was obvious. The City would benefit, he said, for it was adjacent to City Hall, which lade it a logical priority are*. Councilman Sher said that was an arguable point, for though it did fit the Plan for the downtown area, it was piecemeal. Councilman Carey said he had put this matter on the agenda at Mr. Harringtonts request because of the building that WAS taking place in that area. The cost breakdown however made it a different matter, for while it was good aesthetically the financial situation was such that it was too much mossy for the City to spend for so little an improvement. He said that the petitioners could discuss with staff some splitting of costs. He added that the matter should perhaps bast be referred to Policy and Procedure* Committee. Councilmen Reahre asked if the decision had to be made immediately. S Hr. Barrington said that for the work to be done most efficiently it should be dots right now, wile the construction work was in process. Councilman Beabre asked if perhaps, in view of ultimate costs, it might not be economical to underground utilities in a number of blocks, because perhaps the job, if it were included in covering a larger area, might cost such less proportionately, fir. Harrington said be had etudie 4 the project with the staff, and his own propose/ had seemed the most economical' solution. 616 .(0r‘P 1/3/77 MOTION: Councilman Berwald moved, seconded by Eyerly, that the matter of undergrounding in the 700 block of Ramona be referred to the Finance and Public Works Committee, MOTION PASSED: The motion passed with the following vote: AYES: Bestirs, Berwald, Carey, Clay, Eyerly, Norton Sher, Witherspoon NOES: Comstock Mayor Norton asked if it would be productive to have Mr, Harrington discuss alternatives with staff and staff return to Council with the outcome of their discussion. MOTION: Mayor Norton moved, seconded by Eyerly, that: staff and Mr. Barrington meet and discuss some alternatives to the cost breakdown of the 75-25X in operation at the present time. MOTION PASSED: The motion passed with the following vote" AYES: Beahrs, Berwald, Carey, Clay, Eyerly, Norton FOES: Sher, Comstock, Witherspoon cE1. CE CO NTAllaiE ZZRE' - SB T O€ iT�;CI�F.RS Fe?l�IOid, CAREY COKSTOCI( SWIITE BI 4 MOTION: Councilman Comstock moved, seconded by Carey, that the Mayor be authorized to address a letter to the state legislature urging the enactment of Senate Bill 4. MOTION PASSED: The motion passed on a unanimous vote. IONS SHOW AP?OIJTMENTS Mayor Nortoa, after fiatiding the preferences of Couaciluenbara, asked Councillmembors to submit up to five nos of their choices for HNC vacancies. The City Clerk would tally these and from the results Council old decide whether and who to interview. MOTION: Mayor Norton ,saved, secoaded by Coastocke to adjourn the meeti.agg rho nation passed and the meeting was edjouroesd at 12:00 midnight *PPNU'JB : 61 7 113/77