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HomeMy WebLinkAbout08111975CITY COUNCI MINUT ITEM Minutes of June 23, 1975, July 7 Bicentennial Plage Oral Communications 625 El Camino Real (Holiday Application of Pacific Hote District Development Plan Consent Calendar - Actio Resolution Re Cons Master Social Wo Sale of 85{ Uni Resolution Re 0aza CITY or M10 ALTO Regular Meeting August 17, 1975 , 1975 and July 14, 1975 Inn) Planning Commission Denial of 1 Development Venture To Amend P -C to Allow Changes Items olidation Of Earron Park Election ricer varsity Avenue ca, Oak., Exchange Students Resolutions of Appreciation To Youth Advisory Council Members Appointment of 0rdinanca re 765 San Ant Application Plan; and San Antoni 620-626 of Long Term Power Supply Alternative Committee Owning and Managing Apartment Coap1esee onio Avenue, Planning Commission Recommends Denial Of Of Alpha Land Company To Change P -C Development Request of Alpha Land Company Re "Greenhouse16, 777 o Avenue Loss Verde Avenue, Planning Commission Recommends Denial 1 of John B. Dougherty for Miscellaneous Division of Land Lytton Plaza Report of City Clerk Rs Submittal of Arguments - Barron Park Annex- ation Election 1 1 1 Request to Adjourn the Meeting 1 1 1 County Referrals of Land Development ?tatters 1 1 1 Yscht Harbor 1 1 2 Confirmation of Appointments to PACCC 1 1 3 Oral Communications 1 1 3 Adjournment 1 1 3 PAGE 8 0 8 0 80 8 2 82 8 8 3 8 3 8 3 85 86 8 6 89 109 1 0 9 0 1 1 7A 6/11/75 1 Auguet 11, 1975 The City Council of the City of Palo Alto met on this date at 7:40 p.m. in a regular meeting with Mayor Norton presiding. Preaent: Beaters, Berwald, Carey, Clay, Comstock, Eyerly, Norton, Sher, Witherspoou Absent: None MINUTBS OP JUNE 23. 1975 mione nommancrommo rmwomempons omni MOTION: Councilman Berwald moved, seconded by Comstock, that the minutes of the Council meeting of Juno 23, 1975, be approved as submitted. The motion passed on a unanimous vote. MINUWS OF JG'LY l 19 7 5 MOTION: Councilman Comstock moved, seconded by Bervald, that the minutes of the Council meeting of July 7, 1975, be approved as submitted. The motion passed on a unanimous vote. MINUTES OF JUII Y 4, 19 7 5 MOTION: Councilmen Berwald moved, seconded by Comstock, that the minutes of the Council meeting of July 14, 1975, be approved as submitted. 17CP.NTEdZitAL LLA.it In honor of the Bicentennial, 1r. Harrison Otis presented a gift of Bicentennial flags to the CouncLl bsrs. ORAL COMMUNICATIONS 1. Bruce Bernstein, 829 Emerson Street, stated that for three years the City of Palo Alto had made a commitment to provide necessaa-y drug abuse services. That commit- ment was reaffirmed June 2nd, 1975, vhen the City Council voted to allocate net more than $135,000 for drug abuse services including heroin dstozi€ication. Since titer, the city bas not sent out requests for proposals - the first step in selecting a service contractor. To date, the city has done nothing to provide drug services for tie people of Palo Alto, At the present there is only one drug abuse program open to tha general public in Santa Clara County, which admits heroin addicts to hospitals to detoxify from heroin throw use of methadone. That program is The %rte 80 5/11/73 Collective. Beginning this Friday, August 15th, The Collective will no longer accept heroin addicts into its detoxification program. The Collective has been forced to close its detoxification program because of a lack of funding. Workers at. The Collective realize we are not able to provide a quality detoxification program without funding. What is happening now is the withdrawal of this needed drug service by the City of Palo Alto. We maintain that it is the responsibility of local and regional governments to provide funds for such programs to meet the needs of the people who fill up the city's coffer. There are five beds in North County Hospital available to the general public for heroin detoxification through the use of methadone. The Veterans' Administra- tion Hospital also operates a detoxification ward, and there are two at Stanford Hospital and three at El Camino. There are only three other methadone detoxification beds in all of Santa Clara County available to the general public. These are located at Good Samaritan Hospital in San Jose, where admission is made through private doctors. Good Samaritan has a waiting list of three weeks. An outpatient program using tranquilizers but no opiates is operating at Santa Clara Valley Medical Center. The County Drug Abuse Co mission has had funding for a detoxification program for almost a year, but it still has not opened. First, the program vas delayed because of a client cow i-- dentiality dispute with the state. Later, the county cculd not find a doctor to staff the program. Whee the county's program opens, there will be fifteen beds for inpatient detoxification and fifteen slots for outpatient detoxifica- tion with both parts of the program using methadone. Since most of Santa Clara County's estimated three to five thousand heroin addicts live in the San Jose area where the program will be located, County Drug Abuse Coordinator Bob Garner says that the County Detoxification Program will not serve North County. The Collective has been in contact with other drug abuse programs in the county in the hopes that one of thorn will be able to replace The Collective at El Camino and Stanford Hospitals. To date, no other agency has agreed to take on this function. Mr. Garner told The Collective that without funding for detoxification work, he did not think any other agency would be able to pick up The Collective's detoxification program. Since The Collective lost its funding June 2nd, it has worked with twenty-six people in helping them kick the heroin habit. More than four hundred people have used this service in the three years the program has been in operation. Drug abuse is not decreasing, it is increasing; and this includes heroin addiction. Despite not being refunded,` The Collective has attempted to provide services for those who needed help. Despite allocating money for drug abuse services, tha City of Palo Alto has funded no progress, helped no addicts, and has shown tee concern over pending lapse of detoxification services in North County. The city has done nothing but refer the natter to a come mittee. The situation we are faced with today in Palo Alto is that people need help, and there are not adequate Services to help them. It is the responsibility of the City of Palo Alto to live up to its word - both on June Zed and during the campaign - and provide help to those who need it. The people are waiting, Councilaembers. Where is your drug program? 81 8/11/75 2. John D. Snow, Commander of the Veterans' Council of Palo Alto, reported that some committee and staff members were preventing the Veterans' Building from being brought up to the standards mandated by Council. It was his assump- tion that if persons on staff did not do as Council directed, those persons would be removed. Corrected - See page. /72 3. Ma ry Beth Washington, 936 Middlefield Road, told a story which allegorically explained her feelings about the need in Palo Alto for a home school for children of school age. 4. Frank Manfredi, 219 Addison Avenue, was pleased that the strike was over and the city employees were somewhat happy. He asked Council to not put the burden of the increase in the salaries of the city employees on the taxpayers, because they would not be able to bear that burden. In Mr. Manfredi's opinion, a new method of taxation needed to be created. RE UEST TO MOVE ITEM 13 FORWARD ON THE AGENDA MOTION: Mayor Norton moved, seconded by Comstock, that Item 13 on the agenda be moved forward for purposes of continuance. The motion 'wised en a un nimous 4:ote. 625 EL xi # P HOLIDAY INN APPLICATION OF MOTION: Councilman Beahrs moved, seconded by Comstock, that this matter be continued to the :seating of September 15th, 1975. The motion passed on a unanimous vote C, �i�, �'A� �►CxI©N IT S Manor Norton asked if Council were ready to vote on Consent Calendar - Action Items. L ION: Mayor Norton moved, seconded by Clay, that Item (1) be removed from the Consent Calendar. Thy+, motion passed on a unanimous vote. Mayor Norton stated that Item (1) would appear on the agenda as Item (7b?. NOTION: Councilman Eysrly moved, seconded by Mayor Norton, that Itaa (5) be removed from the Consent Calendar. The motion passed on a uusaiamous vote. The following items were left for voting on the Consent Calendar: 82 8/11/75 'SOLUTION RE CONSOLIDATION. OF BARRON PARK ELECTION RESOLUTION NO. 5128 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO REQUEST- ING OTHER PUBLIC AGENCIES IN THE COUNTY OF SANTA CLARA TO CONSOLIDATE THE BARRON PARK ANNEXATION ELECTION CALLED BY THE CITY OF PALO ALTO WITH ANY ELECTION OR ELECTIONS WHICH SUCH AGENCIES MAY HOLD ON NOVEMBER 4, 1975, AFFECTING BARRON PARK" MASTER SOCIAL WORKER (CMR:385:5) Staff recommends that the City Council authorize the City Manager to sign a purchase order in the amount of $7,286.00 payable to the Department of Social. Services, which recommendation is in keeping with the expenditure authorized in the current budget. SALE OF 811 UNIVERSITY AVENUE (CMR:415:5) Staff recommends that Council accept the bid of $36,600 from Arlen and Ellen Haffner for this property and that the Mayor be authorized to execute the deed. The items .left for voting on the Consent Calendar passed on a unanimous vote. RESOLUTION RE OAXACA OAX. EXCHANGE STUDENT - Upon Mayor Norton's request, four students from Oaxaca entertained Council and the audience by singing songs and playing guitars. After the music, slides were shown of Oaxaca; and Terilyn Rank.o explained each scene. Mayor Norton expressed the pleasure of everyone present at hearing the music and viewing the slides. Mayor Norton acknowledged the help and hard wo.k of all of the officers and members of Neighbors Abroad, and especially that of President Don Cooper and his wife, Mary Lou. Dr, Cooper expressed appreciation to his wife for her indulgence with regard to his involvement in Neighbors Abroad. He went on to invite everyone present who was not a member of this organization to join a group of people who were doing something very special and which wets most rewarding. June Fleming, Staff Liaison to Neignbors Abroad, was warmly thanked by Dr. Cooper for ell of her cooperation and efforts on behalf of Neighbors Abroad. The other person Dr. Cooper especially wanted to recognize was Marian Mandellwho had been instrumental in taking care of housing and many other important aspects of the program. Mayor Norton affirmed Council's gratitude to June Fleming and her husband, Roscoe, for the fine work they had done with respect to i Neighbors Abroad. Also, Mayor Norton acknowledged the help of Councilman Berwa1d, Council Liaison to the Sinter Cities Program. Councilman Barmaid reported that Neighbors Abroad consisted of over two hundred families Au Palo Alto and neighboring comities who believe in and work for peace, friendship, and understanding among the people of the world and especially between Palo Alto and Oaxaca and between Palo Alto and Leyte, in the Philippines. This group is made up of people who volunteer time, fund their worst privately, work quietly and modestly, and accomplish much. Neighbors Abroad 83 8/11/73 is made up of people of all ages who work together in harmony in order to visit each other's countries, who open each other's hearts and homes, who learn about each ether's cultures, and who exchange art and such scientific facilities as the observatory and planetarium in Oaxaca. Councilman Berwald said that Neighbors Abroad had won national recognition for its efforts and has won the respect and admiration of past and present Mayors, Liaisons, Councils, City Managers and staff. The organization was made up of a group of people to whom the City of Palo Alto wanted to express much respect and deep appreciation. Finally, Councilman Berwald commented that Neighbors Abroad is Ciudades Hermanas in Oaxaca, without whose the organization here simply would not be able to exist. The friendship and loveliness of those in Ciudades Hermanas make all the efforts of Neighbors Abroad and the support of the city worthwhile. Councilman Berwald reiterated Dr. Cooper's invitation to everyone to join Neighbors Abroad. At this point, Councilman Berwald read the resolution recognizing the preaence of the the students from Oaxaca, Oax., and welcoming them to Palo Alto. MOTION: Councilman Berwald introduced the following resolution and moved, seconded by Comstock, its adoption: RESOLUTION NO. 5116 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO RECOGNIZING THE PRESENCE OF OAXACA, OAX. , EXCHANGE STUDENTS AND WELCOMING THEM TO THE CITY OF PALO ALTO" Dr. Cooper introduced 'alter Tijiboy, student visitor from El Salvador, who read the resolution in Spanish. The resolution was adopted on a unanimous vote. Mayor Norton noted that this was a reciprocal program, and he thought it would be appropriate to acknowledge the Palo Alto students who visited Oaxaca. Those students from Cubberley High School who went to Oaxaca were James and Ruth Gurney, whose parent is Robert D. Gurney; Teri yn Hanko, daughter of Mr. and Mrs. Robert Heeko; Douglas Mandell, son of Mr. and Mrs. Joseph Mandell; Kenneth Roberts, eon of James W. Roberts; Vivien Smith, daughter of Derek E. Smith; and Eileen Standloy, daughter of Mr. and Mrs, James Standley. Pelo.Alto students from Gunn Sigh School who visaed Oaxaca were Kermit Cuff Jr., son of Mr. and sirs. Kermit Cuff; Karen Lyon, daughter of Mr. and Mrs. Ted Lyon; Cynthia Olson, daughter of der. and Mrs. Frank A. Olson; and Karen Ruth, daughter of Mrs. Dogma Ruth. Those students from Palo Alto High School who visited Oaxaca were Karen Backer, daughter of Mr. and Mrs. David Backer; Sarah Burgess, daughter of J. Wesley Burgess; Susan Gloystein, daughter of Mr. and Mrs. E. E. Gloyatein; and Paul Haney, son cf Dr. and Mts. Birt Harvey. Mayor Norton appreciated the fact that these students who had recently made the trip to Mexico were in the audience. 1 Mayor Norton, on behalf of the City Council, acknowledged the host families in Palo Alto who welcomed the students from Oaxaca into their homes and expressed appreciation for all they had done to make this exchange program such a success. While Mrs Tijiboy announced the yes of the visiting students from Oaxaca, Mayor Norton welcomed the students individually and presented them with copies of the resolution and small flags of the City of Palo Alto. Those who visited Palo Alto were: Maria de los Angeles Fernandez del Cam Drzua, Patricia Calvo Arelleno, Maria de Lourdes Diaz Rodrigues, Elizabeth Beliesteros Reyes, Casten Maria Cavort) Peres, Pfartha Lutist Sram Pinery, Alicia Dias Escarrar a Iva Wy f! 84 8/11/75 Flores Munoz, Maria Teresa Gutierrez Cruz, Maria Luisa Gomez, Alejandro Calderon Marin, Salvador Audelo Holm, Francisco Javier Leon Guzman, Eduardo Jones Lopez, Jaime Lopez Gonzalez, and Agustin Moreno Ruiz. Mr. Paul Cardoza slid that in a little town just outside of Oaxaca, Dons Rosa revived the ancient art of making black pottery to the point where the pottery is an important export item; and Dona Rosa is considered a national monument even though she is still living. The students from Oaxaca wanted to present to each Councilmember and to the City Manager a piece of this pottery to represent what one person can do to change the destiny of a community and to preserve an art form. It was the thought of the students that the pottery pieces night serve as reminders that perhaps the destiny of some individuals might be changed because of the Neighbors Abroad Program. Mayer Norton thanked the students from Oaxaca for the lovely gifts they presented, and he said that the pottery would be reminders to the Councilmembers and the City Manager of tonight's pleasant occasion. itimito,Airp4rimmrAPRECIATION TO (CMR:410:5) Vice Mayor Clay reported that eleven members of the Youth Advisory Council had completed their terms of office. It had been Vice Mayor Clay's pleasure to serve as Council Liaison to that body for the last few years and to observe the diligent efforts made by each member as the Council as a whole functioned in its advisory capacity to the City Council in matters involving and affecting the youth of Palo Alto. He said he concurred completely with Scott Catlett, Staff Coordinator for Community Services, and with City Manager George Sipel that these young people reflected maturity, dedication, and foresight in their service to the city. MOTION: Vice Mayor Clay introduced the following resolutions and moved, seconded by Comstock, their adoption: RESOLUTION N0. 5117 entitled "RESOLUTION OF THE COUNCIL OF TH2 CITY OF PALO ALTO EXPRESSING APPRECIATION TO DAVE SPI T ZEN FOR OUTSTANDING PUBLIC SERVICE' RESOLUTIONYO. 5118 entitled "RESOLUTION OF THE CODICIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO JIM SHORE FOR OUTSTANDING PUBLIC SERVICE" RESOLUTION 1a0. 5119 entitled 'RESOLUTION OF THE AIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO GALEN ROSENBERG FOR OUTSTANDING PUBLIC SERVICE" RESOLUTION 10. 5120 entitled '?,ES0LfTz'ION OF THE AIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO RICHARD RAPHAEL FOR OUTSTANDING PUBLIC SERVICE" RESOLUTION 110. 5121 entitled "RFSOLLTTI0I OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING A2PREC1ATI0N T0 UTHY KLEIN FOR OUTS`IARDING PUBLIC SERVICE" 85 8/11/75 1 RESOLUTION NO. 5122 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO VICTOR HSLA FOR OUTSTANDING PUBLIC SERVICE" RESOLUTION NO. 5123 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO MAGGIE DIMON FOR OUTSTANDING PUBLIC SERVICE" RESOLUTION NO. 5124 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO CLAY BRESNAN FOR OUTSTANDING PUBLIC SERVICE" RESOLUTION NO. 5125 entitled "RESOLUTION OF THE COUNCIL or TBE CITY or PALO ALTO EXPRESSING APPRECIATION TO RANDY ALBIN FOR OUTSTANDING PUBLIC SERVICE" RESOLUTION NO. 5126 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO GRANT FLAXi1LL FOR OUTSTANDING PUBLIC SERVICE" RESOLUTION NO. 5127 entitled "RESOLUTION; OF THE COUNCIL OF ThE CITY OF PALO ALTO EXPRESSING APPRECIATION TO BETH LEONARD FOR OUTSTANDING PUBLIC SERVICE" The resolutions were adopted on a unanimous vote. Mayor Norton congratulated the recipients and presented the resolutions to those members of the Youth Advisory Council who were present in the audience. APPOINTMENT OF LONG TERM POWER SUP i ALTERNATIVE COMMITTEE Mayor Norton announced that in Executive Session on August llth, 1975, .•mLee,gAmamittae was appointed to study the long term power supply alternatives for tilt 'CtIy of Palo Alto. Those persons appointed to the committee are: William R. Anderson, Glenn Bates, John T, Chambers, Carlton J. Daigle, Perry B. Hackett, E. A. Heath Thomas R. Javeorowski, PLs. Donald Lundgren, Raymond X. McClintock, "tort T. McKnight, Lloyd G. Multhauf, Richard Rosenbaum, Morrie W.' °Rub itt, caKIAA, �1i11is, and Michael N. Zaharias. MOTION: Councilman Comstock moved, seconded by Clay, that appointmentt3 to the Long Term Power supply Alternative Committee be confirmed try the Council. The motion passed on a unanimous vote. ORDINANCE RE OWNING AND SING -IN ---.,— Frank Manfredi, 219 Addison Avenue, stated that Council should not rescind the action of the previous: Cot cil regarding apartment licensing. In his opinion, the present Council Was using as a blind the fact that the state pre-empted the ardinsaace in or4er to try to get it off the books. as � 8/11/73 Don Sew, 3820 Park Boulevard, congratulated Council for its stand on this ordinance. He said that Council's decision to consider rescinding the Apartment Managers' License Ordinance indicated a new spirit on Council that would be appreciated. As a member of the Tri-County Apartment Owners' Association, Mr. Sevy had been asked to express appreciation to Council for its reasonable approach to the costly litigation which has prevented the ordinance from being put into effect. He added that the Association hoped to be able to cooperate with Council in formulating realistic solutions to future housing problems. Mr. Sevy reported that the Association was lobbying in Sacramento in an effort to increaee personnel and money allocated to the Pair Eiployaent Practices Commission so that body could adequately administer the Rumford Act. Re thought that this was the way innwbich the ?tidpeninsula Citizens for Fair Housing should concentrate their. time, emerge, and money rather than to try to eetsbliah an ordinance in Palo Alto which has as its aim the relief from oppression one segment of the population; but while missing its mark, that ordinance created oppressions for another segment of society. The problem of discrimination existed in Palo Alto, but Mr. Sevy felt certain it was ca_awhere near the 582 figure which was reported by the MCPN audit. May Cottrell, Chain of the flume Relations Commission, stated that when she heard Council was considering rescinding the Apartment Licensing Ordinance, she asked Councilwoman Witherspoon to request that the natter be referred to the Rumen Relations Commission; but t was referred to the Policy and Pre dunes Co mtttee instead. Mrs. Cottrell felt there ware a few compelling reasons why the ordinance should be referred to the EIRC. In the first place, the Commission, by definition of not only the present enabling ordinance but a1ec► the enabling ordinance that wee in existence when the Commieesion was conceived, deals with discrimination in housing. Firs. Cottrell pointed ofit that there has been a complete turnover in Co■eiaz ion personnel since the Apartment Licensing Ordinance was conceived, and she was the only person on the Cemmission who had evens been present at a discussion of the Licensing Ordinance. There are new Commissioners with new ideas and a new approach. It was Mrs. Cottrell's feeling that these Coamiasimaers were reasonable people mho meld deal in possibilities, and she could not cpeceive that they meld cone back to Council with a recommendation aimilar to the Apartaeat Licensing Ordinance. Mrs. Cottrell explained that while may C seiesions in the state see a problem and coma up with what they feel is an appropriate solution and proceed to impose it, Palo Alto's ERC ptefeer°red to use mediation and conciliation as tools. Rather than impose its will on another party, the HRCC liked to bring people Of opposing view together and ass'it them in eosins to a mutually satisfactory solution. Many examples of this concept could be given, but the most appropriate one would be the Rental Housing Mediation Task Ponce. Who that concept cites to the Commission, Mrs. Cottrell asked to Chair that particular committee; and she was determined at that time to hear free all vestal housing interests. The Palo Alto Stoat Estate Board, the Xidgenineula Citizens for Pair Housing, the Apartment House Association, the Tenant's Union, the AMU, the League of Women Voters, and all parsecs who were interested were invited to participate in a committee that would put together a mediation concept. Although the first several meetings were horrendous, suspicions were filly put aside, some real work vas done, end the rental housing mediation concept vas created. That concept turned out to be acceptable to everyone at the committee Leetiv4c, bas been a highly successful progress, and is being copied by other amities throughout the state. As far as Mrs. Cottrell knew, the Rental Sousing Mediation Task Force was not being opposed by any faction. What abe vas suggesting to Council was that the Commission 8i 8/11/75 was in a position to do this kind of thing again and put together recommendations that would not only be palatable to everyone, but effective. Mrs. Cottrell asked Council to give the Hvean Relations Commission that opportunity. Mayor Norton commented that just as the HRC had initiated the present ordinance, they could certainly initiate new ideas which they felt would be better than the ordinance; and he did not know that the HRC would need a specific referral of tha subject. Janet Owens, 863 Moreno Avenue, speaking for the Midpenineula Citizens for Fair Housing, stated that at the last two Council meetings MCf'H spoke of the need for retaining the Apartment Owners and Managers License. Representatives of the MCFH reviewed at those meetings the circumstances that led to its passage in 1973, and they expressed the conviction that those circumstances were still in existence. MCFH also had its reasons stated for wishing to see the appeal procedure implemented and a final legal opinion rendered. Mrs. Owens noted that in Council discussions about repealing the ordinance, it had acknowledged that illegal discrimination continued to exist and affirmed its unwillingness to tolerate it. She pointed out that Palo Aitaxis were looking to Cour:cil to have an ordinance prepared that would serve the needs of the housing consumer and assure equal rent and availability to all home seekers. Members of MCFH felt that in the light of the Human Relations Commission's experience with the rental housing market, it was an excellent resource to be used as a new ordinance is developed; and that body should be called on for a contribution. KffH was ready to support and assist Council in any way it could in the preparation of a new ordinance, and Mrs. Owens requested Council's prompt attention to this urgent matter. MOTION: Councilman Berwald introduced the following ordinance and moved, seconded by Beahrs, its, adoption: ORDINANCE NO. 2866 entitled "ORDINANCE OF T1iE COUNCIL OF THE C11Y OF PALO ALTO rREPEA.ING CHAPTER 4.15 OF THE PALO ALTO MUNICIPAL CODE ENTITLED "OWNING AND MANAGING APARTMENT COMPLEXES" The ordinance was adopted on the following vote: AYES: gaahre, Berwald, Carey, Clay, Eyerly, Norton, Witherspoon NOES: Comstock, Sher MOTION: Councilman Comstock moved, seconded by Witherspoon, that Council request the Human Relations Commission to review the matters covered by the reocinded ordinance and suggest to Council other means to deal wit -o - the problems addressed in the original ordinance and report those suggestions to t'!e Policy and Proceduree Committee. Councilman Sher noted that he made this motion at the previous Council sheeting, and it was defeated. Re felt strongly that it would be appropriate for the Human Relations Commission to review the ordinance and send its suggestions to the Policy and Procedures Committee. The referral motion passed on a unanimous vote. 88 8/11/75 e 765 SAN ANTONIO AVENUE PLANNING_ Cfl ISSTON RECONHENDg DENIAL OF BFgIF.ST OF ALPHA LAN3LG02gANY RE 6USE 777 SAN ANTONIO A?ENUE Naphtali Knox, Director of Planning, said that his comments would be mostly addressing 763 San Antonio Avenue. He explained that the fifteen acre Beall Greenhouse property was zoned PC in 1973 to allow 140 living units on the north nine acres (now known as Phase I) with the six acre balance (Phase II) reserved for low/moderate income housing. Mr. Knox quoted the following from the pertinent ordinance: "reserved for low/moderate income housing as the term is presently understood, and a public park of approximately 1.5 acres". The second point was that the original plans indicated eighty units on Phase II to be financed under FHA Section 236, and the present P -C ordinance gives no specific number of low/moderate units to be provided in Phase II. Thirdly, Mr. Knox aaid that the ordinance which approved Phase I specified that at such time as low/moderate income housing becomes feasible, the developer shall file an application to amend the P -C zone accordingly. There is no two year time limit for the developer to hold his land to await new housing funds or programs. Air. Knox explained that such a time limit was deleted by Council on March 26, 1973. Another point was that irrespective of the P- C ordinance, the developer may file an amended P -C application at any time; and he has done so trice. The fifth point to be noted was that in November, 1974, Alpha Land Company filed an application to develop Phase II with eighty-eight units, with nine of these units reserved for low/moderate Section 8 leased housing or to sell a certain unapecified number at below market prices. The Planni ng Commission reco nded denial, and Alpha Land Companywithdrew its application. The next point stated by Mr. Knox was that unlike the 1974 proposal, Alpha Lard Company is no longer suggesting ten percent moderate income housing in Phase II, but it does offer to trau.sfer seven low income units from Phase 1 to Phase II. Mr. Knox's seventh point was that on July 30, 1975, the Planning Commission adopted Resolution 191 recommending denial of the current proposal. finding that it is a major departure from the intention of Ordinance 2711, which approved Phase I. The eighth point to be noted was that some decision on the Environmental Assessment was needed (far example, a negative declaration or some other action) before the City Council. can tales any action. For that purpose, reference should be made to the Decemoer, 1974 Environmental Impact Assessment attached to Exhibit (3) . The ninth and final point was that according to the minutes of the last meeting of the Planning Commission, the policy of `the Charleston Garden Association was to support twelve percent moderate income housing. Mr. Knox reported there were 140 units in Phase I of the Greenhouse project, and 88 units are proposed in Phase II. This was a total of 228 units altogether, and twelve percent would come to 27 units. He concluded his statement by saying that one possibility would be to consummate the 14 units that were proposed for Phase I au4 to provide an additional 13 units in Phase II. This would provide 122 moderate intone housing which would be In line with the recommendation of the Charleston Gerdse Association. Vice Mayor Clay asked if the units would be rental ones. Mr. Knox replied that would net necessarily be the case. One way to provide the units would be rental under Section 8, and au alternative would be for the developer to -provide sale units at approximately $30,000 as a target cult in a way similar to the eight units that were provided at the San Alan development. 89 8/11/75 Councilman Sher asked if the 12% figure that was suggested would be reached by providing 13 out of 88 units and dispensing with the provision for the park. Mr. Knox responded affirmatively. Councilman Sher asked what the figures would be if the low/moderate housing would be more in lint with the current Council policy of 20% or more in a development. Hr. Knox replied that 20% would be a total of 45 low/moderate units. Councilman Carey asked if the Environmental Assessment Impact requirements had been suet on this project. Hr, Knox stated that staff has provided an Environmental Impact Assessment, but the Planning Commission took no action on it. If the Planning Commission had been inclined to approve the request of the developer for the P -C rezoning for 88 units, staff could assume the Commission might have acted on the Environmental Assessment. Perhaps they would have found a negative declaration and then forwarded recommendations to the Council. However, the Commission did not proceed in that manner; they chose to deny, and it is the denial of the application which is before Council at this meeting. This means no action has been taken on the Environmental Assessment. Mr. Knox explained that Council was the first decision making body to deal with this *natter, and Council must either find a negative declaration or decide that there is need for further assessment and ask staff to proceed with preparing an Environmental Impact Report. Councilman beahrs asked if someone would be discussing the economics of this problem. If the park is being eliminated for economic reasons, that could be understood; beyond that, Councilman beahrs had come to the conclusion that parks are, at best, a general public nuisance. Mr. Knox commented that agenda items (5) and (3) sere inter -twined; and on pege nine of the August 7th report on item (8), there is a table giving eft year totals indicating the total loan involved to the developer, or to the city, or to both for five different alternatives which could be pursued with regard to the 14 units of Section 23 housing that are to be provided on the north half of Phase I of the development. Hr. Knox called attention to the top of page nine of that report which suers that if all 14 units are provided under Section 23, the six year total loss to the developer in cash flow or renal would be $101,000. Het added that this does not take into account any tax benefits that might be derived as a result of this loss, nor does it take into account the profits that might be expected upon the sale of the units at the end of the six year lease period, which might very well eipe out the loss entirely. Councilman Seahra asked who was absorbing the theoretical loss. It did not seem to him chat had been deteramisxed. He vas sure the City of Palo Alto did not wish to, and it was not entirely proper to ask the purchasers of the property to absorb it. One of Councilman Beabre' chief points of opposition to a problem of this nature 13 the fact that the City of Palo Alto who had these grand intention. should collectively absorb the loss and not the purchaser of the condominium units. Councilman bsrwald asked Mr. Knox to refresh his memory on that part of the ordinance which had to do with the developer making application for the additional six nacres as won as it became feasible and begin constructing housing on that site. 90 $/11/75 Mr. Knox responded that page two of the ordinance states: "At any time that such low/moderate income housing is funded by the United States Government or otherwise becomes feasible, the developer shall file an application to amend the zone approved herein". Councilman Berwald asked Mr. Knox if he thought it would now be feasible for this construction to proceed with financing to be funded by the United States Government. Mr. Knox reiterated that the financing could be done by the United States Government or when it otherwise became feasible. The answer to the question is that while, in Hr. Knox's opinion, the construction was not feasible at this time, the key word vas "shall". Staff has pointed out before, and Mr. Knox indicated in his opening statement at this meeting, that the developer has the prerogative to make an application of his own volition at any tie for a change of zoning; and that is what he has done. Mr. Knox explained that this was just a requirement in the ordinance to have developer come in rather than leave the land fallow for some e . .,er of years. This particular provision required hi to come in at such time as subsidized housing programs were available from some source. Councilman Berwald asked what that source would be at this time. Mr. Knox replied that the source on the horizon ?ass the State :lousing Finance Agency, but it was not available at this moment. Staff had been advised that the Housing Finance Agency would be in business in 1976. The first year's program would be something like three thousand units at most, spread rather thinly around the state. Mr. Knox added that the feasibility of fully utilizing phase 11 for subsidized housing would not come about until late 1976 or early 1977. Councilman Berwald understood that if that sentence were interpreted just as it were constructed as far as funding is concerned, it has not yet become feasible; bnt it may become feasible in the next several months. Mr. Knox said that Councilman Bexwald'a understanding was correct. To carry it further, the developer is not obligated under this particular paragraph at this point to file an application for 1002 subsidized housing on Phase ll because it is not yet feasible. Councilman gerveld commented that when this matter vas first proposed, he had talked in terms of low or moderate density. Re asked if Mr. Knox woui6 consider Phase 11 to he of moderate density. Mr. Knox responded that the proposed density vas less than the due allowed in an R-2 zone, which is the lowest of the city's multi -family zone. It could be concluded that this proposal was of moderate density. Councilman Berwald asked for some comparison to R-1 zoning. Mt. Knox elucidated by saying that R -1 single family zoning allots about seven units per acre; and the next tone up, the Redmplei sons, allows about fourteen units per acre. R-2 permits approximatelytwenty- one units per acre, and this proposal falls into the density of the 1-2 zone. Councilman Perwald indicated a desire to have some information on land coverage in Phase II as compared to Phase 1. He asked what Mr. PleX would consider the criteria today for low income housing end moderate income housing, both for rental end ownership. 91 8/11/75 John Burns, of the Housing Authority, stated it was very difficult to assess what is low and moderate because that changes almost on a daily basis. He thought perhaps the low/moderate rentals would be what is being charged in the 236 type projects at this time. This varies, depending on the project, from $118 for a studio apartment type to $200 for larger units. Mr. Burns said that low aid moderate income units for sale is almost non-existent in the county; and it depends upon whether one would be talking about housing in Gilroy or in Palo Alto. Moderate income units in Palo Alto would cost about $45,000, and there are no low income units for sale in Palo Alto. With regard to the rest of the county, a buyer would be very hard pressed to find a home for under $30,000. Mayor Norton asked if when Mr. Burns mentioned $30,000, he was referring to the lowest available cost. Mr. Burns said that was correct. Mayor Norton concluded then that $30,000 homes would have to be considered low income housing. Mr. Burns desponded that the problem was that low income people could not afford the lowest priced housing. Councilman Berwald asked that at some time someone from NCFH or the Housing Corporation give Council the governmental ranges for low/moderate housing categories. Councilman Eyerly said it seemed to him that the resale price of the units in Greenhouse I were is a price range that was realty needed in Palo Alto, and he asked if the retail va1u' of any of those would qualify them as moderate income housing. Mr. Knox recalled that the units in Phase I were selling for thirty- three to forty-three thousand dollars. When staff was dealing with units in the San Alma subdivision, it was attempting to get close to roughly $30,000 for a two -bedroom, two -bathroom unit. Mr. Knox felt it was possible that a ten percent reduction in the price of a sales unit in Greenhouse Phase I would meet the upper ranges of the moderate income buyer. Councilman Eyerty'e thought wee that moderate income housing for a family of four would be about $33,000 on a resale price; and that seamed to him to be at the low end of what bad been charged for tan to fifteen percent of the emits in Greenhouse I. Councilman Berwald stated that the city had experience with the Piggyback Program, and the Federal Covernmeat had fixed limits above which it would not contribute to closing the gap; and Palo Alto's gap in housing was increasing at an astronomical rate. In Comedian' Beahra' opinion if the total comity were put to s vote, it 'ould be hard pressed to go along with the idea of Palo Alto subsidizing the difference. )4ention had been made of state programa on the horizon, and he wondered if those programs would operate similarly to the federal ones with regard to being unwilling to put any mhney.into closing gaps above a certain figure. Mr. fnox r°et erked that the prospect was not entirely rosy because of galloping inflation. Simplistically, the theory is that the combination of construction financing money made available through the State Housing Finance Agency at a somewhat lower interest rate than market rate, 9 2 8/11/75 plus the Section 8 program, would bring some housing within the reach of low/moderate income people who presently cannot afford that housing. Mr. Knox added this would also produce the construction of some units that would otherwise not be constructed, and that would help the housing industry. Councilman Beahrs commented that if he were a state administrator, he would want the moat for his dollar; and he really wondered if Palo Alto would be considered an economical area in which to invest. Councilman Beaters could see where a state administrator would rather have the money used fifteen miles from Pal; Alto i2 that would produce more housing. Mr. Knox explained that Palo Alto would have to make application under the rules that are set up for that, and he thought Palo Alto could get some units. The city would not get a great number because it was a ill community in population, but it would get some units out of the program. Councilman Sher referred to Councilman Eyerly'a question with regard to the cost of a moderate sale unit and Mr. Knox' response in which he referred to San Alma and the $30,000 f' re staff was aiming for in that development. His own recollection was that those units termed moderate by the developer sold below the market price, and part of the reason they were designated moderate units was the fact that the initial purchaser could not later sell his unit at a greatly increased price. There was a feature involved that would preserve those units as part of the moderate income housing stock. Councilman Sher asked if his understanding was correct. Mr. Knox agreed with Councilman Sher's understanding. The feature involved is that the city has the right of first refusal upon resale of the units to purchase the unit at its initial sale price plus the cost -of -living index This means that an exorbitatnt capital gains could not be made on the unit by the first owner; and, in effect, that would keep the initial reduction in costs for that unit so that it would continue to be a moderate income one. Councilman Sher asked that if in connection with Phalle II, or even with some of the unrentad units in Phase I, Council decided to go to the sale approach with the wits being sold at some dollar amount less than the market sale price, this same feature would be built in so that the units would be designated as moderate income units. Mr. Knox replied that staff would recommend that if below,- irket gales units ware to be provided rather than rental units, the sales price of the units be established, that they be advertised, and that they be marketed to qualified buyers through the offices of the Palo Alto Housing Corporation as had been dons with the duplexes at Foothill Green and the eight units at San Ate. Councilman Sher remarked that when the representative of the Palo Alto Housing Corporation addressed Council., he would be interested in how this approach had been working in the other unite and whether the Corporation saw this as a possibility of meeting some of the competing desires of the developers, neighbors, and Council. Peter Carpenter, Planning Commissioner, stated that the Planning Coassission had rhis ratter bs.fors ,it a number of tides. It was the opinion of the Commission in reviewing the existing P -C ordinance that was carefully drawn that there was great concern on the part of the Council to achieve certain long-term objectives. _To that respect, Mr. Carpenter referred Councilmembsrs to the minutes of the Council meeting held in 1973 which dealt with this attar. City Attorney NOW indicated 9 3 8/11/75 that if Council adopted the ordinance that was then under discussion, it was making a definite policy by ordinance that the area in question was being reserved for low/moderate income housing. Somewhat along the same line, the minutes show that Vice Mayor Norton remarked that if there were no way of making the situation more permanent, the city may not, in the long run, be getting the low-cost housing it wants in exchange for the density it is getting otherwise. Those same minutes contained a discussion of the time limit of two years, and Councilwoman Pearson indicated that limit should be deleted; and Mr. Griffin tad no objection to such an amendment. The Norton motion that staff be directed to return an ordinance with an agreement negotiated with the developer which gave the city the best legal assurance that the time for the subsidy on the fourteen units would not extend beyond any period the county may be interested in was also in that set of minutes. Mr. Carpenter added that at the time the ordinance was passed. it reflected the efforts of the staff to do that type of thing. It was the opinion of the Planning Commission that the developer was granted rights by the city which were unusual in return for a commitment by the developer to take some unusual steps regarding low/moderate income housing. Mr. Carpenter said that there is no doubt this city could modify the P -C ordinance if Council wishes to do so. The question is on which basis should any modification be made. In December of 1974, the developer cane to the Planning Commission with a proposal for 88 ownership units, with 9 of them to be reserved for Section 8 leased housing or to be sold at low market prices to accommodate moderate income purchaser$. At this time the one and one-half acre parkwas not included; and by eliminating the park, the developer was able to yield a lower apparent density. The Planning Commission minutes dated December 18, 1974, indicated a unanimous motion on the part of the Commission to deny that application. At that point, the application would have come to Council. On the next day, the applicant requested permission to withdraw the application. Mr. Carpenter quoted £vor: that request: "until such time as the potential availability of low/moderate income housing on this property can be determined". Oe January 6th, Council permitted the withdrawal. Mr. Carpenter reported that in July the developer come back again but with no low income housing, in spite of the fact that: in the interim a new State Housing Financing Agency had been established. It was the Planning Commission's feeling that the current proposed revision to the P -C ordinance should be denied because: (1) It fails to comply with the earlier Phase II coamitment; (2) It offera additional benefits to the developer, who has already received unusually favorable treatment from the city without any additional benefits to the city; (3) In some respects, it codifies the developer's failure to fulfill the terms of the ordinance with regard to the original]. Phsee 1 commitment to provide 14 low income rental units. At the conclusion of the Planning Co mission's discuasio;, once again there was a unanimous vote for denial. Pros a planning perspective, the Commission could see no compering reason to recommend to Council that the existing P -C ordinance be changed et this time in line wits the proposal submitted by the developer. Mr. Carpenter felt certain that others would speak to the continuing importance of the original objectives which motivated Council when it adopted Ordinance 2711. As Planning Commission liaison to the Palo Alto Housing Corporation, Mr. Carpenter stated that housing diversity was still a key city goal. There is *one indication of questionable action and some bad faith on the part of the developer, and Council should addreas itself to those. The second set of units in Phase I have not yet been made available. There is some question as to whether or not the purchasers of the existing Phase I units were notified with respect to the existence of the fourteen low i come units and of the coning of the Phase II parcels. Under these circumstances, Mr. Carpenter said it was very understandable that some of the residents in Phase I may be opposed since they were never informed as to the 9 4 8/11/75 47 facts at the time of purchase. Mr. Carpenter could find no basis for the current assertion that the costs of Phase I were any higher than the developer himself estimated in 1973. Thee~ were the thoughts of the Comn►iasion and of Mr. Carpenter, and they deferred to Council on the very difficult policy and political decisions regarding the application. John Griffin, Alpha Land Company, stated that this matter had been wrestled with for several years; and with all of the alternatives presented to Council, Alpha Land Company would like to make a concrete proposal for the resolution of the problem as to Phase I and Phase II. Mr. Griffin said that for well over two years, Alpha Land Company has owned a $500,000 lot; and in all fairness, it was about time something was resolved for that land. Despite Mr. Carpenter's comments, Mt. Griffin thought Alpha Land Company had a very good track record with Palo Alto. Over the past four years, the Company had built 232 homes in this city. To the best of Mr. Griffin's knowledge, that was more than any other builder had done. At the present time, there is something like thirty to thirty-five percent unemployment in the building trade; and Alpha Lang Company had eighty-eight units it would like to build. It was tine to get the project started. The original motion on this matter was to have a two year limit, and the refit of Council deferred to Councilwoman Pearson and eliminated that limit on the basis that the Company could come back at any time. Had the two year limit gone into effect, requirements for tow income housing on this property would have expired same time ago. Mx. Griffin said he, live Councilman geahrs, had a very dim view of the prospect of ever having any low iuco a housing on this property. In Mr. Griffin's opinion, the city has moderate priced housing on this property right now; and that was the only moderate priced housing from Palo Alto north. Alpha Land Company was proposing to provide more of those. Fifty-four percent of those now living at Greenhouse were in their thirties, and many of them were unmarried. This was the only way that unmarried people can buy property in Palo Alto; and at thirty- five to forty thousand dollarc, these houses were the only moderately priced ones around. Mk. Griffin thought Palo Alto would have the lowest priority for low iaceee housing on any schedule - federal or state. He seta he had lived with this situation now for years, and he had no confidence whatsoever in a program tieing developed that would work any time within the near future. The Section 8 program is a disaster. It put. the developer into the position of selecting, and worse yet, evicting tenants; and developers did net want to be in that pesitioa. Ma. Griffin's feeling was that rental housing had no piece in a homesownership situation. When this vas worked out with Council two year. ago, Aix. Griffin made it clear that be considered the arrangement to be a social experiment. As it turned out, the ordinance was not a good one; and there was no reason why it could not be rescinded, Mr. Griffin suggested that in lieu of any rental housing whatsoever in the entire project, that Council permit Alpha Land Company to discount ten percent en seven units of those in Phase I on the prices; and they would be sold under the same texas and conditions outlined to Council by Ale. Knox for other projects that had been developed in the city. On Phase II, 1:. Griffin said the Company would agree to take nine units there and discount those by ten percent in au effort to accommodate more moderate income people in the project. In addition to the so -cared benefits to the developer, Mr. Griffin felt that what Alpha Land Company had - built and what it had proposed had a lot of benefits to the City of Palo Alto; and they waateed . *:ha opportglOty to do the nut 88 units at the earliest possible convenience. If the project could be approved in the very near future, good progress could be made by the fall 45 8/11/75 of this year. The company would be perfectly willing to discuss the architectural problems with the Architectural Review Board; but on the land use decision, Mr. Griffin hoped Council had more than sufficient information on hand so that it could make that decision st this meeting. Councilman Sher asked Mr. Griffin why the seven units in Phase I had not been rented. Mr. Griffin replied that the Company put the first seven units in as quickly as it could in an attempt to show good faith and to find out how the system would work. He explained that there was $157.00 per month rent for the two -bedroom units and $207.00 per month for the three -bedroom units, and it cost well over $100.00 per month more than that to carry them. The new Section 8 program had been suggested as a possible alternative in that the seven wits could be shifted over to Section 8. Mr. Griffin said he had been working very closely with Mr. Burns en that in the hope of doing it, and Pia. Burns suggested that Alpha Land Company not get involved with Section 8. Ms. Burns said he did not want to get into the renting and owiing of the units, and at the same time have seven others managed by the Housing Authority. According to Mr. Burns because of the restrictions on Section 23 which expired December 31st, only a three year lease will be permitted; therefore, the lease would expire in 19?8. He reiterated his philosophy that rental units, particularly those rented by persons with no incom at all, should not be mixed in with $40,000 horses which were owned. Councilman Sher asked again why the seven units in Phase I dragged on for so long. He knew it was not due to the inability of the Housing Authority to find seven families. Mr. Griffin agreed, and Le said he had no cmplaints whatsoever about the quality of the tenants Mr. Burns sent to the Greenhouse. Councilman Sher asked if the seven units had been made available to the Housing Authority. Mr. Griffin responded that the second seven units were not made available to the Rousing Authority. Although Section 8 became available January let, regulctions are still being put out on it. Councilman Sher thought there had been a clear impression created in the background material that Alpha Land Company knew it was going to cost them about $100 per unit par month wen the original coning was approved. Mr. Griffin thought it was fair to say that the company went into the project with its eyes wide open, but the $100 discussed was based on a 75 to 802 loan which is normal financing on those types of units. However, the company had trouble financing those units; and it finally got a 502 loan on them. In addition to the $100 per wrath, there is $272,000 of the company's capital tied up for a number of years on which Alpha Land Company is earning nothing. Councilman Sher counted on air Griffin's proposal to sail seven units at ten percent below the cost of comparable units in Phase I and nine units in Phase II. He asked what the selling price was for coaperable units in Phase I. lfr. Griffin replied that seven three -bedroom, two -bath waits had been reserved for this program. All of the others sold at $41,950; and Alpha would be willing to sell the seven units for perhaps $37,O00, which on today's inflated market would be equivalent to the $30,000 unit Mr. Knot referred to. 96 6/11/73 Councilman Sher asked if the nine units in Phase II would be sold for more or less the same price. ?r. Griffin said he could not quote the price on those, but the company would take ten percent off the market sale price and arrive at the figure. He thought the units would cost more than those in Phase I because of inflation. Councilman Sher vas puzzled over this aspect of the proposal because under the original zoning, Alpha Land Company was to get eighty units in Phase II and an acre and a half park was to be provided; and now the proposal was to build eighty --eight units which was eight more units. So what Mr. Griffin was really saying was that Alpha Land was prepared to sell only one more unit out of the original eighty at the taut percent discount. Mr, Griffin explained that the company was incorporating the park into tcs recreation aria of the people who live there. The park diacussion canoe up a number of times; and there Was a lot of reservation about it from the neighborhood, from the Police Department, and others. The program was arrived at by mabc. ng the unite total eighty-eight to keep the density under what was already there, and it was a very moderate density. Councilman Sher said he saw the eight units as a bonue over what the Alpha Land Company originally thought it would be able to sell. Instead of eighty units available for sale, Alpha Land would have eighty-eight units; and nine of those would be sold at a ten percent discount. That appeared to Councilman Sher to be east one unitout of the original eighty which the company expected to build. Mr. Griffin responded that there were eight more available units for Palo Alto buyers. Councilman Carey referred to the proposal to sell at a discount the seven suite not rented and asked ass. Griffin if he were taking into account the fact that by doing that, Alpha Land Company would be getting out of the obligation to provide these seven units as low income ones; and when than company initially accepted the requirements, it projected a loses. Councilman Carey explain that in 1973, Alpha Land projected a $100 per month loss on the units. The only difference now is the fact that the company was not able to get an eighty or ninety percent loan and had to take a fifty percent loan; therefore, some $200,000 in capital was tied up. That is the only variable from the initial analysis dons in 1973. Mr, Griffin agreed that that was the only difference in the economic analyst* except for the fact that fees, taxes, and everything else involved are higher now than they were then. Ccuncilma.n Carey stated that as he understood the material presented, Alpha Land projected a $100 lows per unit in 1973; end the company was, in fact, suffering that $140 loss now - ezectly what was projected. Mr. Griffin said this was true except for a conlaiderally greeter capital investment. If any return is taken on the capital investment, you Would have to say there was a $200 loss. Councilman Carey explained that he vas trying to establish that 1#r. Griffin's position wes that the one variable was the fact that more equity had tole put into the units than had been anticipated. 97 8/11/75 Hr. Griffin said the loss of the capital had to be added on. Councilman Carey reiterated that the company had lost $275,000 in additional equity; but the monthly losses were as predicted. Mr. Griffin agreed with Councilman Carey's statement. Councilman Carey understood Mr. Griffin to be proposing to discount the units by ten percent. What bothered Councilman Carey about that was that if that is an acceptable arrangement with Council, Alpha Land Company would no longer have to suffer the $100 loss per month per unit for the next three to four years. That was built into the original application. Councilman Carey asked if any consideration had been given to calculating out that loss, discounting it back, and adding that in on the discounted pricing. Mt. Griffin responded negatively. He said what he had done was to voluntarily add nine more units over the original application to the Planning Commission to take an additional discount. Mr. Griffin did not think it was the purpose of Council or anyone else to punish a builder for something that did not work when the understanding in the beginning was that no one knew if the plan actually would work. Councilman Comstock referred to the comments regarding the Police Department's reservations as to whether or not there should be a parks and he said he saw nothing about this in any of the reports, Mr. Griffin said the major concern of the Police Department was safety in what would be a land -locked park. Access was a problem. Vice Mayor Clay asked what the basis was for Alpha Land Company's ten percent reduction offer. Mr. Griffin replied that he took all the profit and half the land costa off and give to the city half the land and all of the profit. planned to give to the city half the land and all of the profit. Vice Mayor Clay asked Mr. Griffin 11 he hnd looked at the total of twenty-seven units which Mr. Knox had mentioned earlier. Mr. Griffin responded that his company would prefer the ten percent method. Vice Mayor Clay asked if it would matter if nine or thirteen units were involved as long as it were handled in this ieay. Mr. Griffin said it would matter forty or fifty thousand dollars worth, but Alpha Land Company thought a ten percent requirement was eminently fair. Councilman Eyerly referred to Councilman Sher's comments about the feasibility of Alpha Land Company taking some of its units and earmarking them for the city for right of first purchase to protect against inflation. Re asked if Mr..Griffin had any units left in Phase I that might qualify in this way. Mt. Griffin azplainad thnt all of the fourteen units that were reserved for the Section 23 program are covered by that provision. The first seven are already rented. Whether the ascond seven units are rented or soli. the company would be milling to have then covered by the saws provision. 98 8/11/75 'fie Councilman Eyerly asked if there were more than those fourteen units. Mr. Griffin responded that there vela just three units left for sale. Eleanor Klauminzer, 3961 Sutherland Drive, presented a petition and read the following from it: "We, the undersigned, do not agree with the position of the Charleston Garden Homeowners and Residents Association opposing the subsidized development of the Greenhouse property on San Antonio Road. We object to the characterization of future tenants as being inferior people and as being a greater threat to the neighborhood than residents of market priced housing. We find no evidence in the history of Colorado Park or Arastradero Park to suggest that the future tenants will necessarily be a threat to the security of our neighborhood or that the development will lower the value of our hoses. (Indeed property values have soared since Ordinance 27i1 was passed.) On the contrary, we believe that the one and one-half acre park will be a definite asset for the neighborhood, and the larger number of children expected from the subsidized housing may help to keep Greendell School open. We believe that Alpha Land Company entered into an agreement with the city knowing full well the terms of the agreement, and they should be required to fulfill that agreement to the very best of their ability. We believe, furthermore, that based upon the Association's poll figures, a ratio of subsidized to market priced units which would be acceptable to a majority of the neighborhood and consistent with city resolution 4725 should not be cifficult to devise. We note, finally, that both federal and state funds are at last becoming available for subsidized developments; and that the need for loiter cost housing for the residents of Palo Alto due to the rapidly increasing housing costs is even greater now than it was in April of 1973 when Council passed Ordinance 2711." Ms: Klauminzer said there was a fear that the future tenants would lower the quality of the neighborhood, that they would be a threat to the security of the neighborhood, and that the value of the properties may go down. She felt the burden of proof was on the Association to demonstrate that their erguments are likely to happen, and the way to indicate that is to point out something close in time and place -such as Araatradoro Park or Colorado Park - where negative things have happened. Mr. George Kent, Manager of Colorado Park, indicated there was no basis for these fears. Ms. Klauminzer commented that there was a feeling against subsidies in general; yet, homeowners saved parhxpe $60 per month through tax credits. She said that the neighborhood was not as upset about the housing project as one would be led to believe by the Association. Ms. Klauminzer mentioned that the number of people who signed the petition were about the same number as those who attended the Association's meeting. About fifty percent of the people were polled, and twenty-five percent opposed the aubaidy ind tweutyfivs percent supported it. Janet Owens, representing Midpeninsu.laa Citizens for Fair Housing, said MCFU realized that Alpha Land Company had waited quite some time to develop the second phase of the Greenhouse during the metetorium on federal housing subsidies and the passage of new federal and state legislation. !#CFH was esympatbeetic with their i esire to develop the property at the earliest opport mity; however, the site has-been identified as suitable for divelepmeut as low and moderate income housing. Mrs. Owens pointed out that the usw housing programs were evolving rapidly. Legis eti.on has been pssasd, and regulations are being written. It would be premature at this point to make a decision which would remove the major portion of this lard from the use far which it has,bsen preserved. If Alpha Land is no longer willing and able to hold the site, NUR urged that consideration be Oven to lendbanking by tb's airy. lore. Owens explained that these vends too !sr weals _ remainins to loos this ass to =pensive his just so nor progress awe e ssr . fg 1/11/73 Hai Hudson, 535 Everett Street, President of the Housing Corporation, realized this what a complex question Council had before it. The Board of the HouaLtg Corporation realized that as consultants to the city, one of its responsibilities was to sponsor the implementation of low income housing projects. The Board had three suggestions in descending order of enthusiasm. The first and most desirable vas' to proceed with the current zoning and ask the developer to explore all possible sources of federrA and state fundings which would enable low/moderate rental units to be built as originally planned. If there appears to be no viable way to achieve this goal within a reasonable time, the city should consider landbanking this parcel for future development. The third suggestion would be that if Council were unwilling to pursue either of the first two recommendations, the Housing Corporation would like to see Council allow time for exploration of all mechanisms - even a special below market purchase program -- which could provide for more diversity of housing opportunities than would be possible under the developer's currently proposed plan. Mr. Hudson added that in relation to what may be forthcoming from the state and its new Housing Finance Agency, the Housing Corporation has invited the Director of the Agency to come to Palo Alto and examine same of the problems which exit here, including the Webster Block. At that point, the Housing Corporation hoped to find out more about what the state had in mind in regard to developments such as that contemplated at the Greenhouse. Councilman Sher asked Hr. Hudson if he would indicate the Housing Corporation's perception as to whether there is any trouble in finding buyers whc; can handle the purchase price and who meet the guidelines. Also, he wanted to know what kind of units in terms of bedrooms and baths were suet needed. Mr. Hudson responded that tweesoedroom units seemed to be the most desirable, and the Corporation had not experienced any real aia'ficulty in finding buyers. The qualifications that must be met are rather rigid which AtAAS a little more time is needed for finding buyers than it otherwise would. So althoegia a considerable amount of Housing Corporation staff has been used in this area, it has not been considered to be a problem. Councilman Sher asked about the status of the asubcorporation as far as that being set up and ready to receive funds Which would be used to provide dispersed moderate housing among other things. Mr. Hudson said the Corporation hoped to have a final report to Council early in September on this matter. Councilmen Sher masked if the sub --corporation were far enough along to use concepts discussed in Comprehensive Plan meetings with regard to providing diversified housing throughout the city and ado, he wondered if the sub-corperstion terdd be able to further the concept rsgerding 20% law/moderate income heusia$ as prov'ded for in the resolution. His Hudson responded that the sub -corporation was nit far enough oolong to address itself to this particular problem. Councilman Carey asked when the Housing Corporation would be meeting with the state Housing Pipe Agency. Mr. amass said that no announcement had been received as yet. Councilmen Carey asked that if Council set some policy guidelines end referred this setter to staff` a committee, or the wing Coiporativa, 100 0/11/75 would there be a possibility that in the next thirty to forty days the Corporation might have additional information to help resolve the problems. He wanted to know if Mr. Hudson thought Council was wasting its time in thinking that it may receive some state assistance. Mr. Hudson replied that if the Housing Corporation had that kind of direction, it would find out what the state had in mind within whatever time period would be stated. Councilman Baahrs commented that he hoped that when such a meeting took place that the bureaucrats would say just exactly what Palo Alto's chances were with regard to receiving some state financing. He recalled that some time ago he warned that the Webster Street Project would be the most expensive housing built in Palo Alto due to inflation and the passage of time. Mr. Hudson said there would be a in another month. As far as the landbanking was a possibility so for low income houaing. report on Councilmen Beahrs' concerns project under discussion was concerned, that the property could be preserved Councilwoman Witherepoon asked if the conditions that had been imposed as qualifications had worked well when actually implemented. Mr. Hudson responded affirmatively, Councilwomnan. Witherspoon asked if the process worked well in the San Alma development es far as finding suitable tenants was concerned, Mr. Hudson responded affirmatively, Verta Andrews, 4096 Sutherland Drive, said she was the secretary of the Charlestol Gardena association; but she was speaking for herself =a -- in no representing the Association. Two yeara ago, Me. Andrews talked to a different Council about the possible density and traffic ramifications which might come out of the project; and she was pleased to find that those problems had not manifested themselves in Phase 1 of the Greenhouse property. Me. Andress felt that Alpha Land Company had built a lovely project that worked well at its location in conjunction with Charleston Gardens. She found over the last few months that those people who lived in the Greenhouse project were very nice i dividusls who were interested in what would happen to the rest Of the property there end in what happens in Palo Alto in general. The residents at the Greenhouse would certainly express concern if the remaining property there were totally developed as all low income housing or rentals. In speaking with the residents at the Greenhouse, Me. Andrews found that no oee bad any complaints at all about the people who had been placed there by the county. Sae stated that she was againat South Palo Alto having any more low income housing. Ms. Andrews pointed out that there were a few more stream earmarked for Low irsceams housing; and if they were developed, South Palo Alto would be fiiirly well saturated with that type of housing, With Alpha Lands development, some lovely, moderate priced homes would be for wale alb with some low incase rental units; and that would take care of two problems at one time. Dr. Dietrich K. Lexius, 777 San Antonia Road, said that be was one of the homeowners on the Greenhouse property; and when he moved in, ha was aware that this development presented a unique opportunity for people who work in the area to own their owu homes at a price that vas rarely available in the area. The residents were very pleased with what Alpha Land Company had constructed, and Dr. Lewins took 1 a-1 8/11/7S- exception to the reference being made to the homes being expensive ones. He believed that more of this kind of housing was needed, and it fit very well into the space available foe which the Alpha Land Company had made application. Dr. Lezius urged Council to grant the application as presented by Alpha Land Company. Councilman Comstock asked Dr. Lezius if he knew when he moved into Greenhouse Phase I that a certain amount of units were in the county program. Dr. Lezius responded affirmatively. Councilman Comstock asked if Dr. Lezius had been aware of what Council was asking to have provided in the second phase of the development. Dr. Lezius recalled being told that something would be built there, and there would be a two year moratorium on construction. Councilman Comstock asked if Dr. Lezius had any objection to some of the eighty-eight units being in the same rental program which the county had in Phase I. Dr. Lezius responded that he would not object if seven or eight units would be designated for low income housing, but he would prefer that they be offered on an ownership basis. Bob Boudrias, 478 East Charleston Road, addressed Council representing Charleston Gardena Association. He stated that if politics had taught anything in the last quarter century, it taught that segregation was an evil and dangerous practice. It has been learned that whenever a group of people is selected on any basis whatsoever and have their daily lives separated from those of the community at large, that groups characteristics both desirable and undesirable - are intensified; and human trust end understanding between that group and the community at large is destroyed because those attributes can come only through repeated contract. Segregation is just as harmful sand dangerous whtther it occurs through public prejudice, market economics, or the efforts of a well-intentioned but misguided government. In an effort to combat this evil, proponents of subsidized housing have promoted a cure which is far worse than the original sickness. That cure is the public housing project best exemplified in recent years by Federal Housing Codes 235 and 236. Mr. Boudrias said these Codes legislate that substantial and highly visible blocks of housing will be separated from the community at large for residents who are selected on the basis of bureaucratic practice. The dangers of such an arrangement lie not only in the reactions of surrounding residents, but in, the attitudes of the selected residents themselves who perceive themselves as a group having problems and interest' separate from -and sometimes hostile to -- the community at large. t1 subsidized housing is to provide not only a physical roof over the heads of the needy but also a socially desirable environment, such housing assistance gust be invisible; and nothing could be more visible than a 236 style project. Hr. Boudriaas commented that if one studied the patterns of occupancy in the existing Greenhouse complex, the dangerous pattern of selection can be seen at work. By any standards applied, the selected and subsidized reeRidesata are a vastly more hoaogeneoes group than ere the highly heterogeneous unsubsidized residents. If anyone is allowed to reelect residents at a high pereent*ge, then a new minority is created. It was s measure of the good intention and the social iaaensitivity of the previous Council and the present Planning Commission that they have reserved six acres of the Beall property for such a project. Mr. Boudriaa added t st the residents of Charleston Gardens vigorously protested that zoain$ action as not being in the interest 102 0/11/75 of Charleston Gardens and not in the public interest of the City o: Palo Alto. Three years later, at this date, the group found themselves saying the same things. Twice this year the Planning Commission has rejected the common sense of Charleston Gardens Association and voters who said that existing zoning was undesirable, and that there has to be a better way. When the Association sampled the opinions of the neighborhood, the Association found that half of the residents were opposed to such housing in principle and half in favor. That sample included 135 residents. Averaging the over-all results, the Association found that the neighborhood favored a 122 component of such housing. What the Association really wanted in South Palo Alto was housing patterns which are socially viable, and they felt that Mr. Griffin was ready to negotiate his housing plan in good faith. Mr. Boudrias asked the city to do the same. The Planning Commission has had two opportunities this year alone to perform such public service and has refused to do so in two unanimous votes. Twice, public hearings were held; and at one shabby performance, the Commission concluded that it would exclude the wishes and opinions of Charleston Gardens residents from consideration in its future deliberations. Me. Boudrias concluded by saying that the Association felt that Alpha Land Company's over-all plan was a good one, but it would reserve comment on the details of the plan pending the availability of those details for review by the Architectural Review Board. The Association thought that further review by the Planning Commission would be pointless and unnecessary, and it would like City Council to resolve this problem at the earliest passible date. Councilman Sher asked Mr. Boudrias if the Association had taken any position on the park that was in the original zoning. Mr. Boudrias responded that the question of the park was discussed at the Association's last general meeting, and there was insufficient feeling to enable the adoption of a stand either gray. Robert loss, 4010 Grme Street, commented that Alpha Land Company is a knowledgeable developer; and they went into this development with their eyes open. They signed an agreermentto do certain things, and they have not done them. By Mr. Griffin's own testimony tonight, the company has built several hundred units in Palo Alto over a period of yearn; and there are only two conclusions to be drawn. Either it has s been profitable on a par unit basis to build them, or they have lost money on every one which they intend to make up on volume. Mr. Moos said he could not feel too aorry for Alpha Land Company for not having gone along with the original agreement to rant fourteen units; because by nos doing that, the seven units they have not rented have saved thew an admitted subsidy of $8.400 per year. The comment made about the two year limit not being implemented and what would have occurred if it had been implemented was totally out of order because it simply never happened. As to the company's genero;as offer tc; reduce the price of the units by ten percent, Mt. Moss said a bank would currently lend between two and two and one-half times a person's or family's income. That means that s low income resident burying a unit would be earning between $15,500 and $18,51)0 per year, Comparing that to someone who would buy the unit at market price ($42,000), that person's income would have to be $16,800 tu $21,000 per year. Mr. Voss felt that if that is considered to ne low income, the poor in this country are really rich. Referring to the general plan and the low/moderate income guidelines given by the Federal Government, Mr. Mass stated that $15,000 to $16,500 per year was at the very upper sod of moderate income for a family of four or five. So what was bring talked about was moderate to upper income people who would barely bet able to afford the subsidized units. Se pointed out that there was no way in which a low intone person 103 A/11;73 could buy a nos -subsidized unit even in Gilroy, let alone Palo Alto. His point was that anyone worried about low income units in Pelo Alto, even with a subsidy, was worrying about something that was never going to happen. Mr. Moes saw no reason why renters and homeowners would be non -compatible; but if renters are that undesirable to Alpha Land Company, perhaps the units could be rented to people with an option to buy. His personal preference for subsidized housing was for ownership rather than rentals, but he did feel there was a place in Palo Alto for subsidized rentals; and an area should be looked for which would accommodate both. Mr. Moss asked Council to keep in mind the added eight units in Phase II which represents a ten percent addition to the density. The ten percent bonus being given by Alpha Land Company by reducing the price of purchased housing is just a complete wash. Added to that it the fact that the one and one-half acre park will not be developed or maintained; so, actually, the developer would come out slightly ahead. In conclusion, Mr. Moss saw no reason why a quality development such'as this one should be limited to non -subsidized ownership or slightly subsidized ownership without any rentals or mix of income levels and types of individkals. MOTION: Councilman Carey moved, aeconded by Berwsald, that this scatter be continued for a period of thirty days during which time the Housing Lorporation end the developer would get together and explore a certain percentage to be developed for low --income use, eithfr'rental occupied or owner occupied and some percentage for moderate income unite; and to give the Hocsi' ig Corporation time to talk to' the state to determine whether or not there is a realistic opportunity for state funds or state program to be used on this site; and during this continuance staff :could pursue the question of a park, particularly with respect to security and police protection. Mayor Norton asked if he understood the motion correctly in that it dealt solely with Item (5) on the agenda, and Item (8) would be continued and returned to Council at the Jame meeting. Councilman Carey exp►leiced that he vas dealing only with Item (5). Mayor Norton responded that the effect would be to have Item (8) held in abeyance and returned to the same agenda when Item (5) would be considered. Councilman Corey responded this would not necessarily have to be so, and he said he was dealing primarily with Phase II. He thought the remaining units on Phase I could be treated separately. Councilwomen Witherepoon had coats plated a similar motion to that rye by Councilman Carey, and she had been hoping to pin down some Co:ancil philosophy for the Housing Corporation and the developer to have at haud as they worked with the Planning Department. One of the basic decisions to be made was whether Council was talking about rental units or owner occupied units in Phase II. Councilman Carey understood that the intent of Council would be to attempt to get a complete mix of rental and owner occupied units; and that hopefully, the owner, developer, and the Howling Corporation would work out the percentages. Councilwomen :Witherspoon thought that brought Council right back to where it was at this moment, and it would be helpful to everyone to k ow what the pleasure of the *ejority of the Council was. She, for one, would like to see all of the units canner occupied; and she would vent to get a price on a certain percentage anywhere between the nine Alpha Land Company offered and the thirteen mentioned by fir. Enos at wall below market price. In Phase I, the developer e per unit coastructioa costs were just 831,000; so perhaps a $37,000 t r )v• price on those units was high. 104 0/11/73 Councilman Carey stated that he would rather leave the motion with as mush flexibility as possible. Part of his own concern was whether or not the Housing Corporation could in the next thirty days, by talking to the state, coma up with funds for programs in the future which would allow additional flexibility on this property. Councilwoman Witherspoon's opinion was that Palo Alto would just get the run-around for thirty more days from the state; therefore, she was not too confident that Council would know any more in thirty days than it knows right now. She said she would vote against the motion because it would be her preference to indicate Council's desires with regard to type of tenancy in Phase II. Councilman Berwald pointed out that there was a recommendation from the Housing Corporation and one from the Planning Commission and a separate request on Its (8) on the twenty-three units. The agreement among Council era was to take them up together, and he really felt there was ao way to take them up separately. It was Councilman Berwald's feeling that if this motion carried, the Housing Corporation would get involved in discussions with Alpha Land Company on both Item (5) and Item (8) because they do relate to one another. Regarding procedure, Coco ci.lman leer *ald pointed out that Council had before it a recommendation from the Planning Commission concerning items (5) . Council could probably now send that item to the Housing Corporation, the Policy and Procedures Committee, or the Planning Commission; aad he ec,ked for staff comment on that. City Attorney Robert K. Booth stated there would be no problem in referring the mattat back if that were Couiicil'a pleasure; and If ego, Council need not take any action on the environmental aspect. Councilman Berwald noted therm was one concrete and feasible proposal presented by the developer shade to Council, and that proposal should be directed back to the Planning Comelseion with some indication as to whether Council was or was not fn favor of rental properties. Also, it could be stated that Council would like to entertain or not entertain thl possibility of the sale of the seven units; that Council was at least interested it the proposal regarding the nine additional units is Phase II; and numerous other items, such as the park. According to some figuring be hsd done, Cou cilman Be scald found that Alpha Land Company had contributed $/50,000. The company has rented seven units and has not built a single unit on the other property. It was also his uaderstatedine that Alpha Lend Company was not really under any obligation to do so until some feasible metier of financing occurs. Councilman Donald said ha did not really know whether low or moderate income housing was wanted in Palo Alto. Delays end obstructions are put before developers that in th.ie case `Would normally provide 228 units that would be moderately priced in terms of Palo Alto's housing costs. It was Council's responsibility to give some direction. Everyone knee` how the Housing Corporation felt, end everyone knew how the developer felt. Councilman Heaveid wanted Gone decisions made at the Council level, with tha matter being continued for one ~h. He pointed out that the average price of the units had gods up three or four thousand dollars between the time the units were built until now; and by the time the new units viers built, there probably would be another two or three thousand dollars added to the east. Councilman Bezweld concluded that by delaying the matter, the cameo of providing housing at low pricing rem not being served. Mt. Carpenter felt that the lest two times this proposal had been before the Planatng Commission, the Commission bad been operating under the guidance established by the Council in Ordiaaece 2711. Twee was , o doubt in Mr. Carpenter's mind theft, given semis indicative 1 0 5 8/11/7$ by the Council as to the direction it would like to see the city proceed in this matter, the Planning Commission could deliver a timely response which would adequately take into consideration the responsibilities the Planning Commisaion has with respect to the over-all planning in the city. He said he did not see this item as one that would deadlock the Commission if there were some direction from Council as to its desires. 1 Corrected See pg. 172 Councilman Sher summed up that Councilman Carey's ration was to send the matter to someone who would sit down with the developer to work out some solution; and Councilman Berwald suggests that without giving some guidance, perhaps those involved in the discussions would have no idea in which direction Council wanted to move. The Carey motion does suggest that there be some mix, and what was not being said was that the developer should go ahead and provide eighty units of low/moderate income houses in Phase 11. Councilman Sher said his own view on this natter is the same as Mrs. Pearson's had been when this utter was first before Council. To Mr. F,oudrias' way of thinking, the heroine of those discussions would have tc be Mrs. Pearson. She was the one person who voted against this whole project. Councilman Sher was grateful to Councilwoman Witherspoon provided the background material, because that made it very clear that Mrs, Pearson was worried about three things; and the minutes at hand indicate that she was s prophet because those three things came to pass. Mrs. Pearson was concerned about segregating the unite all in one place, and she stated she wris in favor of dispersing the low/moderate units throughout the city,. Mrs. Pearson objected to the density, and others at this meeting tonight have expressed concern about that. Also, Mrs. Pearson feared that if Phase I were built without Phase :I, the builder might end up not providing what the Council wanted in the way of moderate units in Phase 11; and the applications indicate that the builder is moving in that direction. Councilman Sher concluded that Mrs. Pearson had very fine foresight in this whole matter. He said he agreed with MRS?4rs. Pearson about concentrating all those units in one place and separating them as low/moderate units and preferred a mix. Councilman Sher thought the motion was .n that direction and did not contz-A-late getting eighty units that would qualify as low/moderate housing under the old federal standards or even under some new state standards. He felt the Housing Corporation's first two priorities would he to let the developer hold the land and wait and see what happens, and let him develop eighty low/moderate unite. Secondly, if Council did mot want the builder to do it, then the city should landbenk the area; but that would require the city to find another building to provide the eighty units, and that vas not contemplated. What was contemplated was moving toward a solution that would mix low/moderate units with market priced housing. As far as Councilman Sber's own feeling about guidance was concerned, he tI ught it needed to be quite ai bit in order to carry out the object -Ives and the bargain that was wade. The seven units have still not been Bads available in Phase I plus the nioe units in Phase II, eight of which are additional to whit was originally provided in any event in Phase Il where there would just be eighty units. Ten percent below $42,000 does not seam to he enough. Councils Sher's own view vas that the Sousing Corporation or whoever discusses the smatter with Mt. Griffin should be looking for an amount ount substantially lower than that, whether it is in terme of renal units or in terms of sale waits at an amount below market price. He felt that in a way he vas pre-empting what should be the Arguments being made by Councilmen Berwald, Comstock, Mehra, and Mayor Dorton Vbo were members of the majority who voted for this and Were part of that bargain, that was made. Councilman Ieahrs states that he is opposed to others bearing the costs of these subsidised units, yet he voted for it; and the builder made clear that he understood 106 8/11/75 /C"' what he was being required to do. It was important to recognize that this was not land owned by the developer. This land was zoned commercial, and the Council indicated its wish to see this property developed in a residential way. It then sought proposals, and the Alpha Land Company proposal was made to carry out the Council's objectives. Councilman Sher stated that he would like to see something worked out that would meet the objectives expressed at this meeting by a variety of people. That would take some substantial reaching beyond Mr. Griffin's suggestions, and that was the kind of direction Councilman Sher hoped was implicit in the motion. Be added that even.: if there is nothing forthcoming from the state during the thirty day period, it was still his hope that the housing Corporation would sit down with Mr. Griffin and try to hammer out details of some kind of a mix that would go a long way toward meeting the objectives sad also satisfying the concerns of the neighbors and the residents of the Greenhouse. With these things in wind, Councilman Sher said he would support the motion. Councilman Eyerly said the two items should be considered together, and he was in favor of Greenhouse Phase II having ownership condos iniummms . In Councilman Eyerly's opinion, it was incongruous to be renting the units in Greenhouse 1 at the price they should be rooted for and subsidimsiag them at the necessary amount. SUBSTITUTE MOTION: Councilman Eyerly moved, seconded by Witherspoon, that Resolution 191 of the Planning Comm ission concerning the Alpha Land Company requesting a change of Ordinance 2711 be referred to the Policy and Procedures Committee for study and for inveotigeting the feasibility of developing Greenhouse II property for msmarketeble resell units, with 20% of the unito marked for moderate income hoesit g; and further study is to be green to the sale of the subsidized rental units in the Greenhouse I section as low/moderate income housing; the total study to be returned to Council within thirty days. It seemed to Councilman Beahrs that the natter would have to go back \ to the Planning Commission. Councilman Eyerly commented on the amount of input at this meeting, and the result of that was that the builder along with the staff end some committee getting together and managing to bring down the price of the rental units at Greenhouse I. Also, Councilman Eyerly wasted to find out how much the builder would be willing to give on Greenhouse II with regard to a lower market range and holding the over-all price at a market value similar to the gelling price for unit at Greenhouse 1. Vice Mayor Clay thought it had been reasonably well established that the city would not have all loin/moderato income housing among the remaining eighty -sight units, and it ie cleax the Council mats d six. What will determine wbether there are any ereheidised waits and what the six will be is whether or not it will be possible to find the right subsidising sources. It appeared to Vice Mayor Clay that there is only one possible source, and that Is the State Housing Financing Agency. He wondered if the housing Corporation maeieht be ;Ws to get. e direct *newer from that agency in a matter of days regarding the likelihood of Palo Alto's being able to receive some funding. Yics Mayor Clay vs not in favor of having the setter delayed soother thirty days, and he wasted the issmae to be face immediately* Me iad i ated that he would be willing to have the setter continued for saes yank if in that week *tan would be making ng its best efforts to gat some firs information from the State Housing Financing Agency, but that he mould vote against any motion ebich included a 101441C Less portsd than that. 107 $111/75 .. Councilman_ Carey pointed out that the details that needed to be worked out with the developer could not be done at this Council meeting. He thought that the Hoeing Corporation was in the best position to determine with the developer just what is possible and then come back to Council with a report. Councilman Carey stated he would vote against the Eyerly substitute motion because he felt the same problems would present themselves at a meeting between the developer and the Policy and Procedures Committee, and such a meeting would not prove fruitful. Mr. Hudson commented that it would be quite difficult to get the needed information within one week. However, he stated the Housing Corporation would be happy to discuss the details of the entire matter with Alpha Land Company; and the outcome might be that the Corporation would come back to Council with more than one plan. Vice Mayor Clay asked how long the Housing Finance Agency had been in existence. Mr. Hudson responded that money was appropriated for the agency six to eight creeks ago. Vice Mayor Clay really thought it might be possible for the agency to simply state whether there were any po3sibility of Palo Alto getting any money at all. If getting some financing is not a possibility, then other alternatives could be studied. Councilman Berwald asked if Councilmen Carey would consider that both Items (5) and (8) on the agenda were being referred to the Housing Corporation in the event that Councilman Eyeriy's substitute motion failed. Councilman Carey said that the two items could be referred to the Housing Corporation. Councilman lierwald stated a desire to have the matter referred to the Housing Corporation and the Planning Commission concurrently. The proposal from the Alpha Land Company should be reviewed, the aim of ten to twelve percent low income units should be studied, questions should be cleared up about the seven units that are now rented, something needed to be known about density, and the park matter should be clearly understood. -If Council had this kind of information coming back to it, then it could be in a position to make a decision. Councilman Carey noted that one of the main differences between his motion and Councilman Eyerly's motion was that the substitute motion eliminated the possibility of examining the pee and cons of rental units. The substitute motion fatted on the following vote: AYES: Eyerly, Norton, Witherspeon NOES: Beaters, Berwald, Carey, Clay, Comstock, Sher Before voting on the Carey motion, Councilman Sher wanted to knov if it ,,ere necessary that that subject be referred to the Planning Commission,, Mr. Bootb.amid that would not be necessary unless there is • rally drastic change from what i, currently being enforced and what is being proposed. However, he added that the Architectural Review Board would review the project. 108 8/11/7% r{`;`'` The referral motion passed on tha following vote: AYES: Beahre, Carey, Clay, Comstock, Norton, Sher NOES: Berwald, Eyerly, Witherspoon REVE-RS�wT TTON MOVE ITEM 12 LARD ON A, a�w MOTION: Councilman Berwald moved, seconded by Norton, that Item (12) on the agenda be moved forward for purposes of continuance. The motion passed on a unanimous vote. MOTION: Councilman Berwald moved, seconded by Norton, that this agenda item be continued to the meeting of August 18, 1973, The motion to continue passed on a unanimous vote. RE.UEST T (CMR:406:5 & CMR:426:5) POTION: Councilman Comstock moved, seconded by Clay, that Item (14) be moved forward on the agenda. The motion passed en the following vote: AYES: Clay, Comstock, Eyerly,, Norton, Sher, Witherspoon NOES: Beabrs, Berwald ABSTAIN: Carey YiEN P ,_[„lO R: 406:5) Ellen Pletcher, 3543 Greer Road, opeaki g for the Palo Alto Civic League, wanted to go on record as urging the preservation of Lytton Plaza as open space. Mrs. Fletcher cemented that Ly ton Plaza was a most restful,plsesant corner in s very busy area, The modern stopper ce terp all hive seating arm in open space, and Mrs. Fletcher felt t at•I;nivarsity Avenue should have that advantage also. MOTION: Councilman Comstock introduced the following ordinance and moved, seconded by Norton, is adoption: ORDINANCE 110. 2867 entitled 'ORDINANCE OF THE COMM OF TSZ CITY OF PALO ALTO AMErDlia THE BODOZT FOR TR FISCAL TZAR 1975-76 TO ESTABLISH AB APPROPRIATION FOR TOE LYTTON PLAZA ACQ3I8IT 109 0/11/75 Councilman Berwald said he voted against taking action on this item out -of -order because he had wanted to deal with another agenda item first. He commented that he could not help but compare the acquisition of Lytton Plaza with the Yacht Harbor (Item 10), both of which are very restful places. The Yacht Harbor has been suffering delays for many years, and Council seemed to be moving rather quickly on approving the expenditure of funds on something that was rather capricious at this time; therefore, he would vote no on the motion. Councilman Beahrs stated this would be an extremely profligate expenditure of taxpayers' money. Councilwoman Witherspoon asked for reassurance from the City Manager that the University Avenue Beautification Assessment allocations for this property (approximately $8,000) and the Parking Assessment District allocated to this property would be picked up by the city, if Lytton Plaza becomes city owned. She wanted to be certain that the expenses would not be allocated among the other downtown property owners. City Manager George Sigel responded that this would be the case. He added that he did not know if there were a legal requirement which would require the city to do so, but past policy would indicate that procedure. Councilman Eyerly referred to the annual expenses as shown in the staff report which indicataia $12,000 loss of interest, and he did not thick that was correct. When funds were spent for Capital Improvements, they are gone; and when you spend money for Lytton Plaza or some other such project, interest should not be figured. The ordinance was adopted on the following vote: AYES: Clay, Con t ck, Eyerly, Norton, Sher, Witherspoon NOES: Beaters, Berwald ABSTAIN: Carey MOTION: Councilman Comstock introduced the following resolution and moved, seconded by Norton, its adoption: RESOLUTION NO. _5129 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO FINDING AND DING THAT THE PUBLIC MEREST AND NECESSITY OF SAID CITY REQUIRE FOR PUBLIC USE CERTAIN LAND LOCATED IN THE CITY OF PALO ALTO, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA (LYTTON PLAZA AT UN I VEiiS I TY AVENUE AND LYTTON STREET) " The resolution vas adopted on the following vote; AYES: Clay, Comstock, Eyerly, Norton, Sher, Witherspoon NOES: Baabre, Berwald ABSTAIN: Carey 1.1 0 8/11/75 ((c) RE UEST TO TAKE UP ITFJt II ON MOTION: Mayor Norton moved, seconded by Comatock, that Item (11) on the agenda be taken up out -of -order because it was legally necessary to dispose of the matter at this time. The motion passed on a unanimous vote. MOTION: Mayor Norton moved, seconded by Beaters, that the Barron Park Annexation Committee be designated as the group authorized to write the argument in favor of annexation to Palo Alto. The motion passed on a unanimous vote. MOTION: Councilman Comstock saved, seconded by Carey, that the meeting be ed ournee until 7:30 p.m. August 18, 1975. Councilman Berwald expressed a strong desire for Council to address itself to Item (10) on the agenda dealing with the Yacht Harbor. Further, attar dealing with the rest of the agenda, he felt that Council should hear from anyone who wished to speak under Oral Communications. The motion to adjourn failed on the following vote: AYES: Carey, Comstock NOES: Baa hrs, Berwald, Clay, Eyorly, Nortcn, Sher, Witherspoon MOTION: Councilman Beaters moved, eeecoaded by lerwald, that the staff recommeodation with regard to this matter be approved, Councilman Comstock had some reservations about this setter, and he would like to hear from the Planning Commission concerning it. SUBSTITUTE MOTION: Councilmen Comstock moved, seconded by Berwaid, that this subject be :red erreu to the Planning Commission for their comers. Mr. Knox mentioned that the county had asked for a response from the city by August 15, and the Warr.* motion would snake that impossible. Lin Mr. Knox' opinion, all that staff wits asking for was continuation of the process thet had beau ,ping on fur the past two ye rs, If Council approved of ties procawe tbet had been utilised, it could simply approve the staff recommendation, The aubatitute motion to refer the scatter foiled on the following vote: Arts: Berwald, Comstock, Byerly, Sher OS: *sabre, Carey, Clay, Mort=, Vither*pooe 11 1 0/11/75 The motion to approve the staff recommendation passed on the following vote: AYES: Beahrs, Carey, Clay, Eyerll, Norton, Sher, Witherspoon NOES: Comstock ABSTAIN: Beewa1d YACHT NAP.5QR MOTION: Councilman Beahrs introduced the following ordinance and moved, seconded by Berwald, that it be approved for first reading: ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO APPROVING AND ADOPTING AMENDED PLANS FOR THE IMPROVEMENT OF THE PALO ALTO YACHT HARBOR Councilman Comstock asked that a staff member explain just exactly what the change was in the alignment of the road. James Uudak, Manager of Capital Projects, explained that the toad had been moved back 150 in one area and 50' in another. Staff had straightened out the road, and it had also preserved the genuine marsh that was worth preserving. Councilmen Comstock asked what was presently in the area where the road would be realigned. Mr. Hudak responded that in the area where the road would be realigned was pickleweed and some fill that had been placed there several years ago:. The pickieveed and the lower line marsh area were preserved. Shat will be used to sow extent is the fill that is already there which has some pickleweed end salt --type grasses on it, but it could not be technically called a genuine marsh. Councilman Comstock recalled that the recommeadation of the previous Council had called for a gentle curve tout went into a straightaway, but staff now has that as an extension of the curvature that goes out towards the lagoon and then turns back towards the harbor. Councilman Comstock pressed there would be a curve, but there was a large increase in the radius of the curve as cowered to what had originally been p lanned . Mr. Hudak explained that actually there would have been a larger radius. Tn effect, another bend had been put into the road. Councilman Comstock asked if Mr. Hudak were saying that the line of the road at the point et which it curves as it approaches the lagoon is further from the lagoon and closer to the harbor. Mr. Hudak said that was coxrett. Approximately 20,000 square feet of additioseal marsh was preserved by making the new alignment. Councils Comstock understood than that the road was closer to the Yacht Harbor than Council, had suggested. M. Hudak said this understanding was correct, and the net effect wet to save the 20,000 square feet of marsh. 112 8/11/75 Councilman Sher asked Mrs. Proctor , the Baylands Consultant to the city, and Mrs. Renzel, member of the Baylands Subcommittee of the Planning Commission, if they felt all their concerns had been met... Mrs. Proctor and Mrs. Renzel indicated that they were satisfied with the plans. Harriet Monday asked Council to direct someone in the city to oversee the project as the work goes forth, in that the city is involved just as much as the county in fulfilling the BCDC requirements. It would be necessary for the city to delineate in some way where the edge of the road is to be so that the men driving dump trucks will know exactly where the fill is to be placed. Mr. Hudak responded that the city's construction inspector would be inspecting the area at least once a day and probably more frequently than that. The ordinance was approved for first reading on a unanimous vote, MOTION: Councilwoman Witherspoon revved, seconded by Comstock, that staff be directed to work with the Planning Commission to prepare a Master Plan for the Palo Alto Baylands including locating suitable diepoeal sites for future dredging spoils; staff to return to Council within three months with a scope of work and a budget amendment request, if necessary, to hire a consultant to prepare the Master Plan with a contemplated completion before the end of this fiscal year. Councilman Bears stated that the city's power was to approve the county's plans but not to generate plans. Mr. Sipel said that was true, but the city had a requirement to revise the Yacht Harbor Plan. The motion passed on a unanimous vote. 0 Mayor Norton announced that in Executive Session earlier in the evening Council had confirmed the appointments of Sara Ann Aigner and Bruce Swenson to the Palo Alto Community Child Care Board. MAL CONIVZCdTION_S t. William Cane, 636 Webster Street, addressed Council and requested that the city's plan to evict Mary Beth Washington from her home be reconsidered. Mr. Booth and Mr. Sipel explained to Council what had been transpiring with regard to thissituation over thepant two years. lasuma The meeting adjourned at 12:45 a.m. ATTEST: APPRQYE: 1 1 3 3/11/73 August 14, 1975 The City Council of the City of Palo Alto mat on this date in a legally advertised Special Executive Session at 8:40 p.a. in the Council Conference Room, 230 Hamilton Avenue. Present: Deahrs„ Eermald, Clay, Norton, Sher Absent: Carey, Comstock, Eyerly, Witherspoon The purpose of the meeting was to talk with City Controller Alfred J. Mitchell and City Attorney Robert K. Booth. The meeting wits adjourned at 10:50 p.m. ATTEST: APPROVE: 1.1 4 $/i4/75