HomeMy WebLinkAbout09151975CITY
COUNCIL
MIFIUTES
ITEM
CITY
QF
PALO
ALTO
Regular Meeting
September 15, 1975
PAGE
Minutes of August 11, 1975, August 14, 1975, August 18, 1975
and August 20, 1975 1 7 2
Oral Communications
Consent Calendar - Action Items
1 7 2
1 7 3
Resolution re Assessor's Report on Equalizing Real Property
Assessments 1 7 3
Ordinance re Liceneing of Bicycles 1 7 3
Civil Defense Preparedness: On Site Assistance Plan 1 7 3
4201 Middlefield Road -Mobil Oil Corporation Application To
Amend P -C Development P].ara 1 7 3
1890 Embarcadero Road, G+ -Pruner Systems Application For
A:idition To Existing Building 1 7 4
Anton Court, Application For Division of Land - Raymond
J. Bier 1 7 4
Consent Calendar - Referral Items 1 7 4
El Camino Real/University Avenue Intersection Improvement* 1 7 4
Finance and Public Works Committee Recommends Rs Veterans'
Building 1 7 4
2430 Chabot Terrace, ZOID4 District R--1 Miscellaneous Division
of Land, Appeal of Rinaldo Au elini 1 8 0
706 Cowper Street, Application For Change of District Prom R -a
toP-C 181
418 Coleridge Avenue, Division of Land (2Lots), Application of
James R. DeJ aiel 1 8 2
1010 Corporation Wey, Zone District L - alp -D, Application of Henry
S. Boone pal Approval of a Door in Outer Wall of isisting Bldg. 1 8 2
940 Beellton Avenue, Application of Gabriel S. 0tler for Division
of Lame 1 8 2
Appointments ` To Architectural Review Board 1 8 3
Greenhouas Development, Phases Z and- II - 777 end 763 San Antonio
Read 1 8 4
170
8/13/73
ITEM (Continued) PAGE
Ordinance to Provide Funds For Litigation Re Gas Rate Increase 1 9 9
CETA Program 1 9 9
625 El Casino Real (Holiday Inn) - Application Of Pacific Hotel
Development To Amend The P -C District Plan 2 0 3
Adjournment t 2 0 5
171
9/15/75
September 15, 1975
The City Council of the City of Palo Alto met on this date at 7:35 poi.
in a regular meeting with Mayor Norton presiding.
Present: Sombre, Berwald, Carey, Clay (arrived 7:40 p.m.),
Eyaerly, Norton, Sher, Witherspoon
Abut: Co a ock
MINUTES Of AUGUST 11. 1975
Councilman Sher referred to the two motions to remove items from
the Conawt Calendar which appear on page 82. Since it is not necessary
for a Councilmeaoer to do other tba , request that an item be removed
from the Consent Calendar, he asked that the motions and the votes
be deleted. .klso, Councilnan Sher suggested that tie word "building"
Sn the twentieth line from the bottom of page 106 be corrected to
"builder".
There being no other comments, the minute* of August 11, 1975 were
approved es corrected.
1#1)11JTES OF AI T 14. 1975
The minutes of August 14, 1975 (Executive Session) stood approved
ss presented.
MIXI/TISQP ' ____ Z___.
Coemcil a t Sher rsqussted that the figure of "$105,004" appearing
in the fir,lt paragraph on page 119 be corrected to $176,000.
The minute* of August 1S, 1975 were approved as corrected.
The minutes of August 20, 1975 (Executive Session) stood approved
as submitted.
Nash' Beth Washington, 1020 Patio Alto Way, complained to
mil about the expense of finding her belonging. which
head been put into storage `by the city. She misstated that
she and her family be aide caretakers of the house at
936 Middlefield Reed.
172
9115/75
R. 0. Deck, 3580 South Court, asked that Council investigate
the reasons why students had to be bused to schools. Hr.
Deck explained that he 'ought a hems close to Fairmeadow
School, but his youngest child was being bused to El Carmelo
School.
CONSENT CALEKDAR s ACTION ITEMS
Mayor Norton asked if Council were ready to vote on the Consent Calendar
Action Items.
Councilman Eyerly requested that Item (4) regarding
property known as 706 Cooper Street be removed from
a chsnge of
the Consent
district for
Calendar.
Mayor Norton stated that this matter would become Item 13-k on the agenda.
Councilman Carey requested that the following items be removed from
the Consent Calendar: Item (6) concerning a division of land at
418 Coleridge Avenue, Item (8) regarding a door in the exterior wall
of 1010 Corporation Way, and Item (9) having to do with an application
for a division r3 land at 940 Hamilton Avenue.
Mayor Norton indicated that these items would becopie 13B, 1.3-C, and
13-D on the agendr. .
The following items were left for approval on the Consent Calendar
Action Items:
RESOLUTION NO. 5136 entitled "RESOLUTION OF THE
COUNCIL OF THE CITY OF PALO ALTO IN SUPPORT OF THE
REQUEST ST TEE BOARD OF SUPERVISORS OF THE COUNTY
OF SANTA CLARA FOR AN ASSZSSOR' S REPORT ON EQUALIZING
REAL PROPERTY ASSESSMENTS"
0 DUXANCZ OF TEE COUNCIL OF THE CITY OF PALO ALTO
AMENDING CHAPTER 10.64 OF THE PALO ALTO MUNICIPAL
CODE TO CONFORM WITR DIVISION 16.7 OF THE CALIFORNIA
VFEICLE CODE RELATING TO LICENSING OP SICTCLES
Staff roconnenda that Council approve the On. -Site Assiatance Report.
R1LSOLUTION N0. 5137 entitled "RESOLUTION OF THE
COUNCIL OF THE CITY OF PALO ALTO AMENDING ORDINANCE
NO. 1561 AND IRSOLUTION NO. 4202 TO CHANGE THE P -C
, DEVEL P W PLAN APPLYING TO 4201 MIDD'LEF•IELD ROAD,
SUBJECT TOCONDITIONS"
g1 7 3
9/13// 75
1890 EMBARCADERO ROAD GO -POWER SYSTEMS
APPLICATIO1 FOt A�T�1T' N TO iXISTIW BUILDING
The Planning Commission, by unanimous vote, reccmmends approval of
the, application of Go -Power Systems for Site and Design approval
of as addition to an existing industrial building Ioceted at 1893
Embarcalero Road, Zoue District L -M -D, subject to the condition that
the top of the proposed concrete block screening wall be level with
the top of the machinery which it has bean designed to hide; and
finds that the project is exempt from the requirement for an environmental
impact assessment.
The Planning Commission, by unanimous vote, recommends approval of
the application of Raymond J. Bier on an application for a division
of land (2 lots) on Anton Court; and finds that the project is exempt
from the requirement for an environmental impact assessment.
MOTION: Councilman Berwald moved, seconded by Witherspoon, that the
Consent Calendar - Action Itena be approved and/or adopted.
The motion passed on a unanimous vote.
CONSENT F CALENDAR - REFERRAL IT
Mayor Norton asked if Council ware ready to vote on the Consent Calendar -
Referral Items.
The following matter was left on the Consent Calendar - Referral
Items:
EL CAMINO REAL/UNIVERSITY AVENUE
. 57:5)
MOTION: Councilwoman Witherspoon moved, seconded by Eervald, that
this matter and the pertinent rsnolution be referred to the Finan.a
and Public Work* Committee.
Tba referral /nation ewes approved on a unanimous vote.
Councilman bsrweld, Chairman of the Finance and Public Works Coomitt.s,
indicated that the minutes of the Committee swine of August 19,
1973 re/lotted the discuesioi bald on this item. The Commitcss felt
that ehatsver sctioa3 wee -taken with respect to the Veterans' Building
and the Red Cross Building should be wail thought out e:ction. Mot
only the /needs of the Veterans and the patrerus of the Rad Cross should
be corueidered, but also the costs to the city attendant to the lease
it has with £tau ford University for the property involved. Councilmen
Berwold stated that one nor aspect introduced at the Committee meeting
vas the architectural uniqueness of the Veterans' Building in that
it 4 s designed by the very: eminent ercbitect9 Julia Morgan; and it
became appaxent that there vats $ Bid deal of history and merit to
the building.
MOT/00s Councilmen Berua&d reeved, on behalf of the finance and Public
Works Committee, the following:
1 7 4►
9/15/75
Finance and Public Works Committee recommends to Council
that the City retain the Veterans' Building in its present
location. The Committee finds the Red Cross Building is a
compatible use in its pneaent location; Committee recommends
that if the Red Cross wishes to continue its lease, the
Council should raferaend the matter, "that the Red Cross is
a compatible use of these dedicated park lands" and any
change in use be made only with the consent of the voters.
Finance and Public Works Committee recommends that staff
be directed to explore the possibilities of reducing the
City's coats for that portion of the property underlying
the Veterans' Building and the Red Cross Building and/car
acquiring that property in fee, and explore these avenues
and discuss them with Stanford.
Finance and Public Works Committee recommends that Council
direct staff to provide an iter:-by-item estimate of the
repairs necessary to place the Veterans' Building in habitable
condition; and further that Council direct staff to get an
estimate of costs to restore the Veterans' Building's interior
and exterior, grounds and landscaping, to original, condition,
including cost of restoration of the flag pole,
Councilman Sher thought the first part of the motions was the section that
required Council to take action at this meeting end commit itself to a policy
position, and the second and third parts of the motion related to
acquiring information that would help Council to make a decision
subsequently. Councilman Sher pointed out that the Red Cross had
not been part of the original referral motion, but the Veterans'
Building lease had been aligned with the Red Cross Building lease
in ter a of the date of termination. He understood that if the Red
Cross wished to continue the lease beyond 1976, these would have
to be a ballot measure, because the building was on park dadicstsd
property. Ths notion would commit the city to asking the Red Cross
if it wanted to extend the lease. If the answer is an affirmative
one, the city mould be committed to going to the voters and asking
that the lease be continued for some parsed of time.
Councilman Berweld commented that if Council made than value judgement
that the led Cross Building wear a coapetib:.s use, any lamase made
would be subject to other consideration; and perhapae other uses to
which the property right be put. For instance, perhaps the Council
would decide it meted the property reverted to park use. Youths
time being, the Committee felt that if the property were going .to
be re -leased to the lad Cross for any period of time that the matter
should go to the voters.
Councils masse agreed end added that he thought the ••natter would
have to go to the voters. Be asked why the lease was to and in
1976.
Clayton Drown, Director of Budget and Staff Services, explained that
the termination of the Red Cross lases in 1976 wee to coincide with
the termination of the Veterans' Building lease, and there had been
plan!, it 1969 that the two buildings would be torn down and thG property
developed for park use.
George Sipel, City Manager, added that at the time this matter was
discussed in the late sixties, a decision was eade as a result of
discussions among staff, Council, and the Red Cross, that,the Red
Cross mould Mak for a certain extension of the lease; and that would
1 7 5
9/15/75
go before the voters. Than, at the end of that time, the Red Cross
Building would be phased out. When the vote of the people was successful,
it was staff's judgment that the Veterans' Building lease should
coincide so that the property would be unencumbered for development
as a park facility.
Councilman Sher understood from these comments that there had been
one extension.
Mr. Sipel agreed and said it came after the Red Crose Building issue
was settled by the voters.
Councilman Sher wondered if Council would not want an answer to
the second part of the motion with regard to costa before it made
a decision.
Councilman Berwald explained that the first part of the motion makes
the finding that the use is a compatible one, and the only thing
left was to find out tow long the Red Crose would like to have the
use of the building. That could be determined before a lease was
signed. Councilman Berwald agreed with Councilman Sher that Council
should have other answers before saving forward from the first part
of the motion. He noted that staff had already begun to collect "
information on parts two and three of the motion.
Councilman Sher stated that before Council committed itself to the
necessary election, a determination should be found as to how ions
the 'Red Cross could want a lease.
Councilman Berwaid's interpretation of au affirmative vote wa,s that
Council will have committed itself subject to the return of the staff
report with all of the information indicated therein. If the information
were not gotten, there wo*ild he no matter to raferende
azyor Norton understood that Council, by passing this motion, would
mot be putting itself in an irrevocable position with regard to
having the matter put to a vote.
Councilman Eyerly explained that what was being said was that Council
wee indicating that the Rad Cross Building is a compatible use regardless
of what might happen to the city's request of Stanford. With regard
to length of time, Councilman Byerly added that the city woe speaking
of keeping the Veterans' Building forever unless some Coun441 in
the future would decide otherwise. If et open-ended lease More
written, Council was saying the Vetere s Building would be ' there
forever; heater, ' Coil would be cepabte set any time of discontinuing
a lease.
Councilmen Carey referred to the *wood part of the motion which was con-
cerned cerned with exploring the possibility of acquiring the property in
fee, and be felt that should bee expended to include "or lease".
floe possibility of extending the present lease for a long period
of time should be looked into. Further, Councilman Carey was concerned
about how long it would take to get en estimate for repairs since
the roof needed repairing before the rainy season.
Mr. Drown responded that the complete ssti.stee would b,e ready by
t:;ttober 15.
Councilmen Carey pointed
the necessity of Council
he would like to sea the
out that a lot of time would go by dud to
action, the lotting of bidet etc. Be said
roof tam up w a scpaxete matter.
176
9/15/75
Councilman Beahre agreed with Councilman Carey. Figures had been
presented a couple of timer on the cost of the roof. Those were
available, and the problem should be dealt with independently from
the rest of the repairs.
AMENDMENT: Councilman Beahrs moved, seconded by Carey, that the
roof for the Veterans' Building be considered a separate matter.
Mr. Sipel appreciatee the concern of Councilmembere about wanting
to make the roof and the building rain -proof. Be su8lgeested, however,
that after getting £ little way into this project, the city would
find itself with a problem similar to the one it has with Squire
House. People will assume commitments by the city simply because
it has wade roof repairs. The cost of restoring the Veterans' building
to meet minimum codes would be more than $400,000; and that is more
than a nev building would cost. This estimate had been made by experts,
and Mr. Sipel thought Council should be very careful before making
any commitments whatsoever on any improvements to the building.
Councilman Beahrs noted that if the Veterans' Building is abandoned,
there will be a lot of pressure on the city to provide housing for
the veterans. His opinion was that the city should go forward with
taking care of the roof.
Vice HA T Clay asked if it wete necessary to go to the voters regardless
of the length of time for which the Red Cross might want to leave
the building.
Robert Booth, City Attorney, responded sffir etiveiy.
Councilman Bervald reported tbet et the Finance and Public Works
Committee meeting, a motion was made by Councilman Bea►hre that the
City Meleager be authorised to proceed with th,t repair of the roof
without delay. He added that Councilman Eyerlf'a position was that
$7,000 should not be spent oe the roof until some of the other problems
connected with the building were looked into. For instances there
was some evidence that the structure might not be able to sustain
a new roof. It would not be wise to set unilaterally on the roof
until the opinions of expert., we:ca brought back to Council with regard
to how sturdy than structure weal etc. Councilman Berweld vas certain
than Mt. Sipel would segregate the over-all restoration costs froa
the cost of a new roof and allied repairs ea is stated in the final
part of the mottos with regard to item - by - item repair. Serweld urged his colleagues to vote for the original motion.
Councilman Bye rly concurred with the comments wade by Councilman
l rweld. The price mentioned by Mt. Sipeel nee for a complete restoration.
If there were trouble with resin before tide were back and Council
wee reedy to take action, a contreotor could put plastic tarp on
die roo f .
Mayor Norton vented to know if it were the intent of the motion
to have Council show on the ballot that it consi.fl.r.d the Red Cross
Building to be an appropriate use for the property. Sccondly, assuming
that the voters .pprave d the use, Mayor Horton asked if any cog
sway from the Bed Cross use at a date perhaps fifty years ahead would have
to be dome Ly the consent of the voters in another election.
Cauncilsssn Berwsld maid it was the latent of the motion that a statement
would appear on the ballot to the effect that to sled Cross Building
was a compatible use for the property.
117
9/13/73
Mayor Norton felt that would be an argument in support of the measure,
and a better approach would be to ask the City Attorney to prepare
an impartial measure to be placed on the ballot.
Councilman Berwald, responding to Mayor Norton's second question,
said that any use other than normal uses of a dedicated park would
require another vote.
Mayor Norton thought the original motion seemed to restate in a
slightly different way that Council fuels the voters ought to have
a chance to turn the matter back to Council with the idea that the
property could never be used for any other purpose than the present
use without having the subject go again to the voters.
Mr. Booth stated that the matter placed before the voters in 1970
merely suspended the Park Dedication Ordinance for the Red Cross
property for the period of time specified, which expired next year;
and he added that probably that same format would be used in this
particular instance. Mr. Booth said that any time the Red Cross
vacated the building, any public use could be made of the building
that would be consistent with the Park Dedication Ordinance.
Mayor Norton said that was not t.hs way ha understood the motion,
and that was why he was having a problem with it.
John D. Snow, 105 Lowell Street, President of the Veterans' Council,
remarked that what the Veterans wanted was a new roof put on the
building and some painting done. A lot of improv utss could be
made in the building, but the Veteran* could get along without them.
Mx. Snow said that he weuid like Co see the building restored 4e
an historical one if thence were money available for that; but in
the meantime, minimal repairs would be very satisfactory. Be counted
that the Veterans had never envisioned ase.isng for a total refurbishing
of the building that would cost $400,000; and he asked that Council
not let this whole subject get out of hand.
Bruce Stephenson, Member of the Ord of Directors as4 Executive
Council of the Red Cross, said that under tha terms of the lease
the Red Cross had the privilege of raatovieg the building within ninety
days of the termination of the leas*. Be said the Red Crosse bad
sot decided how long it would like to retain lease, but the organisation
wanted to stay where it was if that were poaeibi*. That being the
case, Mr. Stephenson *eked Co ncilaibaars to pairs the motion that
Would allow the matter to be placed on the ballot.
Gail Woolley, 1663 Marriposa Avessasue,, said that she and Dorothy Regnery
presented sone slides to the 71.044i;0 end Public Worke Committee members
a few wanks ago, and she dietr#.bwted wows pictures to the Council
people to give then same ides of what had been seen by the Committee.
Mfrs. hboieys` pointed out that the Vstteree.*a' 11uildian was the work
cf a significant architect, Julia Morgan, who had been receiving
much attention recently. Also, the building weer well suited to
server as a public facility; and it should remain in that use. Mts.
Wooer said tnst the building had historical eig.sificance, end the
substantiating dtteils were recorded in tle uses of tb. Finance
and Public Work* Committee.
Councilman -her *eked if Mts. WOoll.ey1' felt the building should be
preserved even if it could not be restored oreed to its original condition.
176 r
9/13/75 i
Mrs. Woolley responded that as long as the building were not destroyed,
it could be restored at some time.
Councilman Sher asked if Mrs. Wooller had any ideas about possible
sources of funding for the restoration of the building other than
the city.
Mrs. Woolley said the Historical Society had put in an application
to have the building placed on the National Register of historic
Places; and as such, it uhould qualify for federal funds. She commented
that the city had applied for those funds for the Squire House but
had not received theca, and the source certainly was not a guaranteed
one.
Councilman Beahrs asked if this building were not one of the few
remaining structures of World War I vintage.
Mrs. Woolley replied that it was.
Councilman Beahre commented that that fact made the Veterans' Building
more significant than the Squire House.
Dorothy Regnery, Portola Valley, r'.aported that the Veterans' Building
was the one remaining bui ding of the two army caps in the State
of California in World War 1. She added that the building was considered
to be a Laemorlal to those who died in World War 1.
Councilman Beehrs commented that the Veterans' Building was different
from the Squire House that it had significant historical value
is addition to architectural interact. Because of that, he thought
there would be a much better chance of receiving funds for its restoration.
Mayor Norton stated that the amendment to consider the roof separately
from the rest of the building was before council.
The amendment failed on the following vote:
AYES: Baehrs, Carey, Clay, Norton
WOES: Bsrwald, Eyerly, Sher, Witherspoon
AMENDMENT; Councilman Berwald moved, seconded by Ey.rly, deletion of that
port of the first section of the motion which elates that any charge
in use be a.de only with consent of the voters.
Thu aneedment passed on a unanimous vote.
Councilmen Sher asked if he understood correctly that a vote of the people
is not required concerning the Veterans' !Wilding because that is
considered a park use.
Mayor Norton explained that the building was considered a rscrsationel
us*, and it was compatible with the lark Dedication Ordinance.
Councilman Bsabrs asked for reessuringe that all of the details regarding
the Veterans' adies would be before Council by October 15.
Mr. Sipel rsapooded that the report old be back to Coil by
that date.
179
9/15/75
r_'
1
Mayor Norton commented that he would vote for the motion. He said
he had no objection to the idea of retaining the Veterans' Building,
but he could not see how under any theory the cost should be $400,000.
Mayor Norton thought that a new roof, a coat of paint, a flagpole
and a few other amenities should coat more in the neighborhood of
twenty to thirty thousand dollars. With respect to the Red Cross
Building, Mayor Norton felt that he did not vent to commit himself
at this meeting to any particular term. He continued that he was
not necessarily for or against the year 2013, but not enough research
had been done on this aspect to make a decision feasible. Mayor
Norton further remarked that he hoped any measure placed before
the voters would be impartial and not include any indication by
Council that it felt the Red Cross Building was an appropriate or
valid use. He said he favored exploring the idea of acquiring the
property underlying the two buildings either in fee or by obtaining
a longer lease. If the use were going to be kept up forever, then
Mayor Norton thought the property should be acquired in fee.
The motion as amended passed on a unanimous vote.
24 .0 CHABOT TERRACE ZONE DISTRICT R-i
'i 1s t*184 4:.1O) IN '' p 'VJ',a
Mayor Norton noted that the Planning Commission, by a vote of six
to one, recommended denial of the application of Mr. Rinaldo Angelini
for s division of land (2 lots) at 2430 Chabot Terrace.
MOTION; Councilman Carey moved, seconded by Beahrs, that the decision
of the Planning Commission be overruled and the application be approved
subject to the condition that the construction plans for 2421 Aztec
Court will not require a variance from the requirements of the Zoning
Ordinance, and that the applicant and his successors or assigns
valve all rights to request any variances from the requirements
of the Zoning 0rdirasace.
Councilwoman Witherspoon asked if this could be done legally.
Mt. hooth responded that he had some reservations about that but
the motion would be a good indication to the applicant as to how
the Council would view any application.
Councilwoman Witherspoon felt that in practicality, Council could
not at some future time prevent someone from awaking an application
for a variance.
Mr. Booth said that ha did not believe anyone could be prevented
from filing on application.
Councilman Carey commented that assuming something would be built
on the property, that would take core of the issue for the neat
forty yaq s. He added that perhaps the approval could be made conditional
upon comstruction beginning within a swimmable time.
kaotk meted that once the lot bead been split, the owner would
either sail it or build on it. If tbs cooditioos aeutiooad in the
notion mere ecce to t, staff wild be certain that this applicant
and any future applicant would umlaut - that applicatisas for
* variance et any time would not be looked upon fsvorably by the
Council.
1 8 0 ,
9/15f 3
Corrected
See pg. 249
Councilman Sher thought it would be well to hear from Anne Steinberg,
Chairwoman of the Planning Commission. The minutes of the Planning
Commission meeting expressed some real doubts about the advisability
of this lot split, the inadequacies of the two lots, and concern
about the property as to its location at the bead on Oregon Avenue.
Mayor Sher pointed out that Councilman Carey moved to overrule the
Planning Commission, but he did not state his reasons.
Mrs. Steinberg explained that the Commission did not try to make
a decision as to whether or, not the lot was a legal one, but it
did try to decide whether the lot teas a buildable one. Staff found
a house could be built on the lot because of the size of it, but
the Commission found there vas not enough space to provide the kind
of buffering that would be required at thie site - which was a particularly
dangerous one where traffic turned from Oregon Avenue onto West aayshore.
The Commission felt a 'arse amount of buffering would be needed
in order to mAke the site a buildable one.
Councilman Carey said a.let of talk had been heard in recent years
about the lack of housing stock in Palo Alto, and this was not the
first application for a lot split that had been denied by the Coc iesion.
Councilman Carey's feelicg was that if a lot split could be accomplished
without detriment to the surrounding neighborhood, setbacks could
be provided, and a house built of 2 decent sire, it should be doe.
He noted that the staff letter to the Commission indicated that
a new dwelling could be built at the lot and conform to standard
setback requirements. The planned house would have an area of almost
1,700 square feet, and that is a reasonable size. Also, access
would be from Aztec Court - not from Frontage Road; therefore, Councilman
Carey could not foresee a traffic problem,
the motion to overrule the Planning Commission and approve the application
passed rr; the following vote:
AYES: Seahrs, E. vald, Carey, Clay, Eyerly,
Witherspoon
NOES: Norton, Sher
Councilman lyerly explained that he removed this item from the Consent
Calendar because be vented to paint out bow incongruous some of
the aiming bed been of late. On the block on Forest Avenue between
Waver/ay and Comer Streets, a change via made f ram C-2 to 1t-i about
a year ago. If this applicatioa were approved tonight, just one
lot not being used for a commercial endeavor would be left on that
block. It was c1i e - Eyerly's hope that if that one pronatrty
owner in the middle of the blew asked for similar usage sometime
in the future, be would receive the cases kind of consideration which
h
the application uadsr discussion 1a received from the Planning Omissions
NOTION; Vico Mayor Clay avowed, sodded by Sher, that the Planning
Commission's recommendation of the application of Stanley G. Bergeson
be approved; and that the following ordinance be approved for first
reading:
t D►INA = OF Tiff COUNCIL OF TVS CITY Of PALO
ALTO AMENDING BBCTION 1a.08.O40 OF TES PALO ALTO
MUNICIPAL 0m CNAN000 T11 ZONING of OBTAIN
PSOPUTY SNOW AS 706 COMM STUNT IRON 1,4 TO
p.c
1i1
3115175
The motion passed on a unanimous vote.
Corrected
See pg. 249
COLERIDGE AVENUE DIVISION OF
Councilman Carey referred -to the setback between the proposed lot
line split on Parcel A and the existing house. If this application
were approved, there would be just eight feet for the setback as
opposed to ten feet. Councilman Carey wondered if any consideration
had been given to reducing- the width of Parcel A by another two feet
so as to standardize the side setbacks for whether the Planning Commission
felt the variance was insignificant.
Mrs. Steinberg stated that the Planning ‘Commiseion considered this
and decided that eight feet provided az adequate setback.
MOTION: Councilman Carey coved, seconded by Beahss, that the recommendation
of the Planning Commission be upheld to approve the application
of Mr. and Mrs. Jae R. Dalziel for a division of land (2 lots)
at 418 Coleridge Avenue; and Council finds that the project is exempt
from the requitement for an environmental impact assessment.
1010 CORPORATION WAY ZONE, DISTRICT L--M-D
Councilman Carey expressed the opinion that it should not be necessary
for someone who wanted to put a door in the exterior ball of his
building to have to come to the Architectural Review Board, the Planning
Commission and Council before tieing able to do so. He thought this
was a clear example of municipal government gone berserk, and he
hoped that this kind of thing could be prevented from occurring.
MOTION: Councilman Carey moved, seconded by Bea terse, that Council
uphold the recommendation of the Planning Commisa€ion to approve
the application of Henry E. Boone for Site and design approval of
providing for a door in the exterior well of an existing industrial
building located at 1010 Corporation Way, Ems District It -)ID; and
finds that the project is exempt from tha requirement for an ervironmentai
impact asiessment.
The motion passed on a bus vote.
Mrs. Steinberg canted t_het the where of the Pisnning Commission
agreed coepletsely with Councilman Carey'c remarks,
MOTION: Councilman Carey wed, seconded by Beaters, that staff
be directed t� _ review the appropTiate ordinances sad ARh procedures
to determine Whether they might be podified to eliminate those items
that require ARB, Planning Commission, or Council spprove1, where
the items are of insignificant effect.
The action posed an a unanimous vote
Councilman Covey stated that the Zoning Administrator's letter to
the Planning scion regarding this application indicated that.::
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9/15/7►5
Mr. 011er requested an exception from a minor detail, which was
the requirement on thie kind of a lot split for A one hundred foot
depth. Mr. 011er was asking that seventy feet be considered sufficient.
Councilman Carey wanted to know what the Planning Commission considered
in this request and whether it felt that the seventy foot depth would
be detrimental to any construction on the property.
Mrs. Steinberg responded that the lot split would have required a
substantial exception of thirty feat less than the required depth,
and the applicant demonstrated no special circumstances or conditions
to warrant approval of his request. Mrs. Steinberg added that the
neighbor whose land adjoined the property in question was vehemently
opposed to a granting of the application because he would be deprived
of open space. Recently, a similar lot split vas denied by the P1ans'ielg
Commission and by Council.
Councilman Carey said the rationale seamed to be that without the
street frontage, the lot needed writ depth. He assumed the setback
from the rear yard was the same, so the abutting land owners would
be no closer than they would be on a typical 1r•., Councilman Carey
added that there were one or two flag lots on '_:aa..siton kvenue between
Hale and Seneca Streets.
Vice Mayor Clay commented that lots 930 and 936 looked '.dentical
to the request that was being made here.
Councilman EyerJ.y thought. that if Council were going to consider
approving this lot split, the matter needed to be continued for
uxeful study, The rezu1t of an approval iu this particular situation
would be more requests in the future for the dividing of large lots
an Hamilton Avenue.
Councilman Carey stated that his initial question had bean whether
or not the Planning Co ndssion considered the lack of depth to be
significant in light of the surrounding neighborhood end the over-
all size of the lot.
MOTION: Councilman Carey moved, seconded by Eyer1y, thet Council
uphold the recommendation of the ?leaning Commission and deny the
application of Gabriel S. 011er for a division of land (2 lots) at
940 Hamilton Avenue.
Councilman Beahxs asked to whom extent the neighborhood wee represented
st the Planning Commission hearing.
Mrs. Steinberg replied that there were throe or four persons from
the neighborhood who addressed the Commission on this wetter. They
indicated that they liked. the long, deep lots; send they expseaead
the concern that apprateale•v uld be going up as lot splits continued
to oycur. trs. Steinberg added that the two adjoining lots which
ars subdivided are both 1eg+el Jots.
The motion passed on s Unanimous vote.
Iyo* krtos announced that during the ixscsstivs Session Philip
W. Vogt and Doak Yip were re -appointed to the Axcitscturel Review
Board for three year terms, wading September 30 197S.
lit
9/15/73
jEfILIT°
T.
PHASESJ
' u( :�
: eY f (c:46O:5)
Naphtali Knox, Director of Planning and Community Environment,
introduced this agenda item by recalling that at the Council meeting
of August 11, 1975, directions had been given for a review of the
matter by the Palo Alto Housing Corporation and staff. One of two
reports from staff, which Council now had, stated that given the
history of the park proposed for the Greenhouse development, staff
members felt the requirement for the 1.8 acre park should be deleted.
The second report provides statistics regarding the number of acres,
dwelling units, coverage and density of the project. The remainder
of the assignment was addressed to tho Housing Corporation; and
Mr. Knox suggested that Council hear from Mr. Louis Goldsmith, Vice
President of that Corporation.
Mr. Goldsmith reported that the question of tb.e disposition of the
remaining seven three -bedroom units which were to be leased under
Section 23 was discussed with Mr. ,lone Griffin, Executive Vice President
of Alpha Land Company at two different meetings. Hr. John Burns
of the Santa Clara County Housing Authority was present at one of
the meetings, and Mr. Knox was present :it both of them. The conclusion
was arrived at that the Alpha Land Company would be no worse off
if they leased the seven units as proposed than they had planned
to be in the first place. Originally, a term of up to ad long as
eight years was anticipated for the lease. This was reduced to
a three year lease with a three year option, but the option is actually
exercisable by either party; ar+cl that weans, le effect; Alpha Land
Company could cancel the leases at the ee4 of three years. Another
conclusion was that even though all of the costs increased as shot
in Appendix 11 of the PAHC report, the present value of a six year
loss at the orig4nai projections if just about the same as a three
year load at the larger losses now anticipate-'. Mr. Goldsmith said
this could be translated to a different option in which the seven
units could be sold at what would be a 202 reduction in the price
to the level. of 03,000; and this would represent the same economic
loss as a three year lease, The Housing Corporation has recommended
that it would be better to proceed with Section 23 leasing of the
seven units on the basis that at least for the next three years
there would be seven units for very low income families. Zf the
units are sold at anything like $33,000 or as Mr. Griffin has offered,
at a figure up to $35,500, this could by no means be considered to
be housing for logs/moderate ins people. W. Goldsmith thought
that might be considered as moderate cost housing, but not moderate
income housing as that term is 'move. Council had a memoradum fres
the PARC which gives basic statistics on the verioue kinds of iecoees
levels that perstat in various housing progress. In that memoredue
dated September 9, a report ie. made on the kinds of income in Section 23;
and they are very low, dare in the range of five to eight thoue►end
dollars per peer wee. Many of the people have nvhere near
that amount, and they pig only 25; of their income for rent. The
balance is taken care of by the. Rousine Authority, Eleht to ;ixte e --
thovsana3 dollars per year mo+ald be considered s.+ederrate inc *ince
it represents 802 of the mediae income for the county. ;be median
income is figured to be $16,500 for a, family of four.
Mayor Morton, referring to the recogneedetioe tb et wen units be
placed under asmexieum of a three greasy lea., ceder Section 23 and
that alternative of permitting that they be sold now at time designated
prices (lower then sent), *shed what meld happen under the first
recommendatioe at the end of three years. /or exempla, he wanted
to know in wbst position the applicant would fied.himeell ..ribs respect
to the saleability of the unit end the priae.
184 `'/*
9/15/75
Mr. Goldsmith responded that if the leasing were gone aheae with
for the second seven units so that there would be fourteen unite
of very low income rental housing, at the end of three years presumably
all of the tenants would then have to move out. The housing would
still be owned by Alpha Land Company, and they would be able to
sell it. While the city would have an option of right of first refusal,
the selling price would go back to the original market prices and
would be adjusted upward by the inflation that has taken place over
a three to four year period. All of the housing would be at the
full market price of $41,000 or whatever it happened to be.
Mayor Nortone understood then that at that time, the city would not
have the opportunity it had at this meeting to accept the lower
pricer offered by the developer.
Mr. Goldsmith said that understanding was correct.
Councilman Beahrs asked if all of the properties in Greenhouse I
had been 'sold with the exception of those which were held for rental
purposes.
Mr. Griffith 1eaxponded that all of the units had been sold.
Councilman. Beanse pelt that in discussions such as this one, Council
was detains in fiction, Everyone was talking about Alpha Land's
loss, and he could not accept that at all. He said that if he were
part of Alpha Land Company, it would not be his loss; the additional
costs would be transferred to other buyers. Councilman Beahrs commented
that he had always contended that would be a terrible discrimination
against those who were trying to buy housing in this particular
co unity. If the City of Palo Alto wanted to be generous, it should
epen4 its own money and rot force a few people in a limited development
to buy out the city's social obligations. This same question would
be central to the neat natter to be discussed; and Councilman Beahrs
thought someone should attempt to dissuade him from his opinion,
which be feared was a correct one.
Kr. Goldsmith stated that he understood Councilman Beahrs' point
of view an this matter. Re pointed out, however, that here vas a
pitci of land that Maras not even zoned for housing. As. a part of
the over --all deal, the density an4 the whole arrangement, the developer
vas able to provide fourteen its with the ides that he was going
to take a loss relative to not providing those 'mite. If this had
not been part of the original deal, Mx, Goldsmith did not know what
the city would have approved. So it really was a question of what
the alternatives might have been. One could havl been a project that
contained fourteen units of some admitted subsidy on the part of
the developer which, in turn, car out a f the t ver-all development
package; but it could be that without this, Alpha Land would have
been allowed to build a smaller number of units and had the same
return
Vice Mayor Clay referred to the section 23 leases s the seven units
sad acid that the developer has the right to not roam the leases
after the three year term, and the Corporation's assumption vas that
he probably would rant. Vice No or Clay's concern was for those
people vbu would have Loosed the maits for three years et very low
rental retool and at the end of that period of time, have to find
saplace *lie to lire. Be *eked hoe the pros and cons were weighed
in this setter.
I$3
'/15/73
John Burns, Santa Clara County Housing Authority, reported that when
a vacancy or lease termination was anticipated, the Authority had suc-
cessfully manage to provide housing somewhere else. Mr. Burns said
the same kind of action would be taken in this case.
Councilman Berwald noted that nothing had been said about some of
the problems heard at the lest meeting with regard to mixing rental
and ownership units, particularly condominiums. He asked if any
investigation had been done concerning the sociological impact of
such a mix.
Mr. Goldsmith responded that to the best of the Housing Corporation's
understanding, there was no real problem with regard to the social
issue.
Mr. Burn added that the County's experience in this area had been
nothing but good. He said that any time you are dealing with people -
whether rich or poor - there will be problems, but the problems
had been minimal, Mr. Burns stilted that this had been a sociological
experiment which had worked very well. Speaking to upkeep and maintenance,
Mr. Bairns commented that the regular maintenance was handled by
the developer; sad the maintenance on equipment for each unit was
still under warranty and handled by the manufacturer, Any problem
caused by a tenant would 1-ave to be handled by the Housing Authority
office; and so far, Greenhouse hes presented no such problems.
Mr. Griffin ,:dried that as developers, his company had no problems
at all with the people who occupied the units. It was fair to say,
however, that there was a certain amount of resentment among the
people who pay $40,000 for a unit to know that there were others
living in the same development who pay just $50 per month. Some
difficulties` had been experitacad at the marketing end of the business
because there are SO2* people who will not buy at Greenhouse knowing
there are low income people living thane; however, all of the units
have now been sold.
Councilman Carey asked the City Attorney if either party had the
option of canceling the lease after three years.
Mr. booth replied affirmatively,
Mayor Norton stated that he would prefer the Section 23 approach,
but it was really somewhat disappointing that the time period vas
a maximum of three years. Re thought that the choice now of being
able to assure a reduction in sales price to 30+ thousand for „x,:
nuMber of units as against letting inflation bring that figure up
to 40+ thousand in three years might not be a very good trade-off.
Rather thee moving the tenants and taking care of the other problem*
alluded to, it might be better to permit the sale of the snits at
the agreed -price and let conditions stabilise. Mayor Morton did
not •se the three yearns of rental es being a lot, aad he did sea
some diaadveetages in having the prices go up to market value.
ga added that he would opt for selling the units now at a price
everyone could agrees upon.
Mac. Goldsmith pointed out beat the Wee at which the unite wound
be Geld three years from now would be today's price plus inflation.
If the units were bought for twenty percent less today, the price
three years from nor would be based on that lower price as edjusteed
for inflation. Preaumehly, the price would always be twenty perca et
lower than the rarkst price.
I$6
9/13/75
Mayor Norton commented that of the rental route were pursued at
this time, three years from now the city would have the right of
first refusal. That means that the city, in order to keep those
units on any kind of a lower than market basis, would have to buy
them.
Mr. Goldsmith said that was a correct understanding. The city would
be able to buy the units only at today's full market price as adjusted
to inflation over the three years. If the city wanted to make them
available to someone at a leer price, that would be a direct subsidy.
Mayor Nortoia remarked that iu any event, the city would have to
buy the units in three years and perhaps be willing to take lafuibaak
money for that purpose.
Mr. Goldsmith responded that this could be done; or the city could
provide some partial subsidy by directing the sale to someone selected
under the Housing Corporation's qualification process, with the city
making up the difference.
Mayor Norton commented that if the timing were not just right, the
city would have to, at least temporarily, comae up with $40,000 per
unit.
Mr. Goldsmith stated that the price, regardless of how it were financed,
would be based upon today's price which for a three bedroom unit
is approximately $41,000; and that would be adjusted upwards to perhaps
$50,000 at the end of three years depending upcm the rapidity of
inflation - or alternatively. the appraised value - whichever would
be lover. Mr. Goldsmith explained that the whole point was that
if the city bought them now at a discounted price, the discount would
prevail forever percentage -wise on reset*.
Mayor Norton saked if this eaMt thing would hold true if Mr. Giiffie
Gold the units to buyers directly without the city's involvement.
Mac. Goldsmith said the units would be :sold directly at an agreed
price.
Mayors Norton asked if the buyers, would be burdened indefinitely with
the deflated figure.
Mr. Goldsmith elucidated that if the units were sold to someone
now on the basis of income and other qualifications relative to
the agreed upon price, and that party later on wanted to sail the
same unit, the city would still have the rim ,,f first refusal.
Therefore, five or ten 'ears from now, the maximum price would be
whatovmr the initial price was, adjusted for inflation.
Mr. Knox indicated that his understanding, after having discussed
the matter with tba Roam Corporation, vas that the city may not
actually be required to poet out cash for the purchase of houses et
this tins when the low market units go on the market. That is, the
Vousims Corporation could simply act as a broker, rake the its
being offered for sale, and through the city's right of first refusal
the city or its dmi case could arrange to have another buyer porch♦ ee
the units at the discounted price.
Councilman Seahrs asked what the idea to inflation would be.
dr. Goldsmith responded that it would be the coat —of -living index
for the hay Area.
187
9/13/75
Councilman Beahrs reiterated that this was a fictitious situation.
He stated that he was a strong advocate of the free market.
Councilman Sher noted that this discussion was reminiscent of earlier
discussions regarding San Alma, Forest Green, etc.; and the whole
subject was not new. He referred to Mr. Griffin's desire to have
three of the seven units handled under Section 23 and the other
four sold at market price, end Councilman Sher wanted to know if
that were economically feasible.
Mr. Goldsmith stated that the Housing Corporation considered the
twenty percent discount to be exactly comparable in terms of economic
conaequencea to a three year lease at the indicated loss rate unit
by unit. The main question was one of whether it would be better
to provide housing for very low income people for three years or
to provide it, indefinitely to people in a much higher income bracket.
The recommendation of the Housing Corporation was to prrride housing
for three years to very low income families because there is a shortage
in that kind of housing.
Councilman Sher stated that he would accept the Housing Corporation's
expertise on this matter. When Greenhouse II is under discussion,
selling units at a percentage below market price will be looked into.
This approach recommended by the Housing Corporation would at least
permit fourteen families foe three years to rent at a price that
would make it possible for them to live in Palo Alto.
MOTION: Councilman Sher moved, seconded by Norton, that Council
approve the Housing Corporation's recommendation with regard to Phase I
of Greenhouse; namely, the seven additional units along with the
earlier seven units will be handled under Section 23 for a period
of three years.
Councilman Carey said he understood the Housing Corporation to be
saying that if the city keeps the seven existing units in Section
23, they will be available for low income families for three years.
At that tine, if the city decides to purchase the units, it would
be treated just like any other buyer.
Mfr. Goldsmith agreed this was correct except for the restriction
that the selling price would b* no higher then the present price
plus inflation in the Ray Ares over the throe year period. The market
price may heve gone up another five or ten thousand dollars.
Council in Carey commented that would be under the city's right
of first refusal et today's market value plus the increase in cost -
of -living.
Mr, Gnlldsith stated that was correct.
Councilman Carey thought the odds rert►re, assuming the cost of housing
increases at the same rate as the cost -of -livings that the city's
option would be to buy units at the market price.
Mr. Goldsmith remarked that recently, the cost of housing had gone
up faster than the cost -of -living.
Councilman Carey concluded three was a possibility of purchasing
the units atir sorearhst less than market price. Re aster if the second
alternative eentioned by the Rousing Corporation was that the city
couldpurchase the seven unite for a price twenty percent less then
Narkst" prime.
188
9/15/75
Mr. Goldsmith explained the recommendation did not involve having
the city buying the units. The qualified buyer would obtain the
units at that price.
Councilman Carey asked if the Housing Corporation were getting into
Phase 1I is its summary when it made the statement that the city
would have --seven units of vary low income rental for three years
and seven units of Ownership housing available.
Mr. Goldsmith responded negatively. He said these were the seven
unite already there.
Councilman Carey co ended the Housing Corporation for their very
fine inedepth report. He asked if any analysis had been made of
the poesibtlity of continuing the seven units under Section 23 for
three years and giving th+e city the right to buy the }snits on another
formula. The formula Would be the equivalent of buying them now
at the discount increased by the cost that would result over a three
year period, and perhaps that would end up being lees than market
coat, In other words, if the city bought them now at twenty percent
lest than cost, the developer would lose money. If the city decides
on the three year leasing under Section 23, the developer would have
a coepie of problems, One of these is that the revenue generated
is insignificant; and secondly, he has the carrying costs on those
units. a cuncilman Carey, was wondering if any thought had been given
to that possible option - to see if the city could buy the units
at something less than, the other alteraaativee offered.
Mr. Goldsmith felt that Councilman Carey might )e referring to what
the Housing Corporation indicated is Appendix (3) of its report.
This would be simply equating the annual lose under Section 23 leasing
to an equivalent reduction in selling price if the city bought the
units now rather than waiting for three years. As the Housing Corporation
saw the metier, these things were really equivalent since the annual
loss was discounted for each of the years which amounts to an accumulated
lose in today's money of $8,244 per unit. This means that if the
price were reduced by that amount, it would coma daan to $33,000 which
happen: to be a reduction of twenty percent.
Councilmau Carey asked if one would not have to add into that whatever
income the developer received under Section 23.
Mr. Goldsmith explained tat was all taken into account in the developer's
lose par unit per year.
Councilman Carey asked what the selling price would be for a unit
discounted twenty percent under Option Tvo.
)lr. Goldsmith replied that that figure could be $33,000; and Alpha
Land Company has offered to sell them at $35,500. The Mourning Coraoration
felt that $33,000 would repreee nt the same kind of loss for tbs
developer and, therefore, woad be a fair price.
Councilman Carey 'asked Mr. Goldsmith if be were saying that there
did rot sae . to be any particular advantage ntage to corking der 8actio
23 for three years end then working out some other fore uls for acquiring
the property.
Goldsmith said that would be ash the developer to take ea
double loss,
1e9
9/15/75
SUBSTITUTE MOTION: Councilman Eyerly moved, seconded by Beahrs,
that staff be directed to negotiate with Alpha Land Company to sell
th seven units at below market price of approximately $33,000.
Councilman Berwald stated there was something strange about the positions
taken toward private enterprise builders in this community, and
it has to do with the city's cavalier acceptance of the fact that
a person should be entitled to some sort of loess on the part of
his development'or investment. In the long run, this kind of attitude
will work against low income faaaailise because it will be a disincentive
to builders to operate in Palo Alto. Councilmen Berweld said he
saw the units under discussion as moderate income housing for Palo
Alto. Some people who could normally not afford to buy a house
in Palo Alto are buying in the Greenhouse development. Councilman
Barveld indicated that he would not be able to support any proposal
that would perpetuate rental unite at that location over and above
the units that are already rented. Hia proposal was that the seven
units be sold at the fifteen percent discount, and he considered
that offer to be a generous one. The situation was that the developer
had already taken a lows on the units He has tried to the best
of his ability to make this .flan work, and :t has not worked economically.
Nov it appeared that Council was going to awre or less insist that
he take another five percent loss, and that does not seem right.
Councilman Berwasd thought it was a possibility that some sort of
negotiating could take place at this meeting, but he really felt
that Council was taking advantage of its position as legislators.
If the fifteen percent offer is the best the developer can do, then
Councilman Berwal.d thought he should be permitted to do it. Perhaps
the next tip around the developer would came in with a little better
deal for the city in the lower range of housing.
Councilman Carey noted that a couple of years ago the developer
made a deal with the city. For one reason or another, the deal
has not turned out to be economically feasible, and Councilman Carey
did not think Council should bail out any developer if his expectations
were somewhat greater than the actual fact. There was still one
consideration with which Council needed to deal. When this development
was originally contemplated, it was not expected that there would
be no funds for low income housing. From that standpoint, Council
should be flezi.ble. Councilman Carey pointed out that the Housing
Corporation is the city's expert in housing matters, and their mathematics
state that a twenty percent discount will more or lase equal what
time developer would have lost ender the original deal as made with
the city Ind there been funding available. In Councilman Carey's
option, that was all the lsveloper was entitled to - no aora, _ no
inns. Re said he -would be happy to heel from Alpha Land Company
if it could point out where the Rousing Corporation was mistaken
in its mathematics; otherwise, Council should proceed with making
use of the Reusing Corporation numbers. Councilman Carey reiterated
that a twenty percent discount in the event of sale would leave
the developer more or leas precisely where he was when he made the
original dean..
Janet Owes, 863 !beano Avenue, wade the following statement for
the MidpsnSnsula Citizens for Pair Rousing: "Both the Planning
Staff of the City and the Palo Alto lousing Corporation must be
praiasd for the concise, detailed tad relevant reports they have
made to tie Council and community on Alpha Lend proposals for the
remainiag units in Greenhouse I and the development of Greenhouse II.
line feel emit it is important that the developers be required to
provide, in so far as 3?ossibls, all of tbs concessions they promised
when seeking approval of a planned cvseaamity development. Only by
1 9 0 c
9/15/73
continually insisting en this can the city expect its requirements to
taken seriously. Nevertheless, we recognize that there have
been financing p'blems of a most unusual nature in the last few
years and housing problems will not be lessened by demanding the
impossible of developers. In light of these dlfficvties it is
particularly valuable to have the financial detail that the Housing
Corporation has worked out for us with respect to Greenhouse I.
MCFH feels the Council could make no wiser decision than to accept
the recommendations of the Housing Corporation. Since no greater
loss will be sustained by the developer in providing the full fourteen
subsidized units than originally accepted, we feel that this is indeed
the best course. While the length of time that these leases will
run may only be three years instead of the eight originally contemplated,
the social gain for those, three years will be important to residents
of the city. We also wish to commend the Santa Clare County Housing
Authority' for the noteworthy roles it has played in making Section
23 units a real social gain to the many communities in our County.
With respect to Greenhouse II, we also endorse the Housing Corporation
reasoning. We regret the loss of park land, but elsc, recognize
the wisdom of making more units available to lower income purchasers.
We would not be adverse to seeing the city purchase this land for
future use for a rental development so that a greater portion of
the units could be made available to lower income residents. This
would, however, postpone the availability oZ any housing on that
land, Therefore, we see a reasonable trade-off in early development
of the full ninety-four unite with sixteen added to the City'$ long-
term stock of moderately priced owner housing. 1 also want to
comment briefly on sc* of the stereotyped remarks that have again
been repeated by some of the public about federally subsidized housing
and lower income renters. It is es wrong to judge hoeathg solely
on ths aource of its financing ar it is to judge a person solely
by the color of his skin or hy has lsanguegc. There have been good
and bad federally subsidized houc tog projects and the important
concern for city officials is to learn the real differences between
the succezefu.l and the unsuccessful, and not be misled by allegations
that if one is bad, therefor* all ?]gust be. It is also important
that the renters and owners of subsidized housing not be judged
as a class. Lower income residents will have lower income problems
whether they are subsidised or not. If exclusionary actions, intended
as such or simply the result of economic forcest concentrate people
with such problems in a 'mall area, those problems will be insurmountable,
but they can be resolved in the context of s total community including
wide diversity of incomes end interests. The potential for Palo
Alto to be such s community is repidly dwindling as the economics
of the housing earket force more and more /over income families
and individuals cut of the city. There is no way that we could
create an unmise concentration in this already thoroughly developed
city. The ghettos we deplore are not made of just one or two hundred
units. Nevertheless, it is still probably true that the best solution
is dispersal on en individual basin without the deers* of subsidy
for say particular family being known to its neighbors. This iv
the way that the more affluent receive their subsidi.s through the
tunas systems, and ' ft is most desirable for direct housing subsidies
to be herndIed'the asset way, However, if this is impossible politically,
ws swat leiezn to live comfortably with kncwu subsidies, and not
*ogees in sloppy thinking that says only direct subsidies ars bad '
and tbs only undesirable people in the community are those rsceieing
eirsct Inii eid se. In conclusion, let me repeat that NCTR heartily
endorses the Palo Alto Sousing Corporation's recommendations."
Rowley Smith, 777 Sae Antonio Road, resident of the Grebe and
Wi+amber of the board of Directors, stated that he had eseu no clear
problems se a consagnsmoa of bovine some natal units; however,
1 9 l
9/15/75
the Board did prefer homeowners because they had problems and reeds
in common. Looking into the future, Mr, Smith said the problems eeemed
more solvable if those involved were owners working together. Regarding
the second phase, the Directors opposed the park concept and the
truly low income concept. Mr. Smith encouraged Council to minimize
the density, not maximize it. The present arrangement was a comfortable
one that was functioning very well.
1
Robert Moss, 4010 Orme Street, commented that with regard to Councilman
Beahrs' statement about free enterprise, that went out the window
several years ago when this project was approved. The city gave
development and density rights to the developer; and in return for
that, the developer supposedly gave to the city fourteen low income
units. Mr. Moss said it was not free enterprise if the city and
a developer made an agreement and then when the project is almost
completed, the developer asks for permission to renege. Councilman
Berwald's comments about developers being given a difficult time
in Palo Alto did not fit in with this situation where a developer
was being given real consideration. Alpha Land Company was asking
to increase his stake in the city by more than one-third; and if
that company had been mistreated, there would be no such request.
Mr. Moss thought Councilman Beahrs' remarks about the coat of subeidiea
being imposed on a local group of homeowners rather than on the city
as a whole were quite valid; but if Mr. Moss had been the developer,
he would have made the coat of the free market units absorb the losses
in the other unite. All of the free market units have been sold.
Seven subsidized units have not yet been sold; and if the city lets
the developer orf the hook, the people who have already paid free
market prises have put money into the developer's pocket which will
not be recovered. If the city does decide favorably in this utter
toward the developer, a etipulation must be made that he refund to
those persons who purchased units the amount of subsidy imposed upon
theca for the fourteen units intended for rental or sale. On the other
hand if the developer wants to keep the existing arrangement, the
city should require that Alpha Land Company live up to its original
agreement. Mr. Moss noted that $33,000 was not a low income price,
and it weemarginal whether it was a moderate income price. A bank
will loan between taco and two and one-half tines a person's income
for a mortgage, and that cost for a unit would require between thirteen
and fifteen thousand dotl.ara annual income. In both this case and
in the Holiday Inn matter coming up later on tha agenda, Mr. Mss
felt that-tha developers should be expected to live up to their original
agreements.
Councilman She referred to the feet it a number of cots had
been sada about the developer being asked to take a loss or oven a
double loss, end he explained that his motion was simply teilisei
the developer to do what be agreed to do. There wart no new action
at this tiles thet was imposing losses. Councilmen Sher was in furor
of the rental approach, and he seed why Cove ipso 3er old and
Btabrs were showing such aversion toward that idea nov when they
voted for it originally. Thee idea WS nothing nev, and Councilmen
Sher seas not even sure a emotion by Council wee necessary since this
whole thing was a commitment which the developer made. He brought
out the point that the developer did not sea the land, and it bM
been zoned "eommercisl". The city had come objectives in regard
to the la "and solicited bids. Mt. Griffin and_Alpba Land Company
made a bid," and the package vas put together:, Bien without a motion,
Me. Griffin is obliged to make the additional seven units available
to the Housing Authority under a rental progrea. Councilman Sher
favored the rental approach, but he said he would not be terribly
upset if tho substitute motion passed if it passed at a figure comparable
to the commitment reads by the developer - which would be something
like $33,000. Be conctwded his cemer'ta by saying he would vote
against the substitute motion psi of his preference for tiro rental . .=. ..
approach. f
ch
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9/15175
•
Hr. Knox offered the information that an Environmental Impact Assessment
kad not been prepared for C.eenhousa I. If Council stays with the
leasing of the seven units, that would present no problem. However,
if Council decides it wants the units sold at fifteen or twenty percent
discount, the Planning Department will prepare an appropriate EIA;
and the City Attorney will prepare a resolution to amend the P -C
ordinance. Mr. Knox added that an EIA was a minor matter. It would
have to be prepared and then be subject to public review for a period of
three days.
Mayor Norton asked if this process would be done routinely and re-
appear on the agenda if the substitute motion were passed.
Mr. Booth responded that the resolution would be prepared and placed
on the Consent Calendar at a subsequent meeting.
Mayor Norton asked if an EIA had been prepared for Phase II of the
Y F F
Greenhouse development.
ter. Knox replied that an EIA had been prepared, but the Planning
Commission did not mace a finding on it because the subject was denied;
therefore, the matter was referred to Council. Council has the option
of looking at the Environmental Assessmant and deciding whether or
not there is an impact based on that .eport.
Vice Ha►yor Clay remarked that he was having a problem with the manner
in which Council was appresching this subject. He conceded that
there was a contractural arrangement made some time ago, but he was
not too bothered by that. Vice Mayor Clay said he was not too concerned
about whether or not there was a commitment made that did or did not
work out for whatever reasons. Everyone know that conditions had
changed radically since 1969 when the Housing Corporation was established,
and there were no funds availebis to do things in the fashion that
had been origi,nolly foreseen. It seemed to Vice Mayor Clay that
the innovative efforts of Council, staff, citizens, and developers
would hero to be relied upon to get something done that will please
all Palo Altana. Council needed to encourage cooperation from all
sectors, and to Vice Mayor Clay that meant the city would have to
act in a cooperative fashion also. He was concerned about the impact
of future developments of low/moderate income housing if the city
could not strike accord with the people it bad to depend upon to
provide bossing. If this debate which iad been going on for months
were carried ten any longer, serious things could happen. For instance
the Housing Sub -Corporation has planned to get into the act of preserving
below market Value housing. If that is to be done and the city were
to try to gather together something like ten zillion dollars, that
would be dem through revenue bonds; and the city would have to have
the people vote on it, Vice Mayor Clay wanted the Housing Sub -Corporation
to be given every opportunity to be successful in its solicitation
of support for that kind of a programs. The more a debate vent on
expressing the differences between Council and othere, the more that
purpose would tend to be defeated. It appeared to Vice Mayor Clay
that Council bad not cleansed or reconsidered its gods and objectives
for low/moderate income housing as conditions cleansed. For example,
Council denied at lot . spotting request earlier in this satins, and
perhaps rightfully so; but one of the reasons gives, for the rejection
Vas that inch a lot split would encroach en the privacy of the neighbors.
Greenhouse was in another part of tawo, but the people there were
noggins the sane !mind of objections wits regard to density in their
n.i$bborhood. Without speaking to the suite of either, Vices Mayor
Clay made the point that Council was not as consistent as it sight
bs in ;avenging for the development and implementation of low/moderate
income bossing. Me sand be would be in fir of the approach the
1 9 3.
9/13/73
developer has proposed and which Councilman Sher had moved as aomething
of a compromise. Vice Mayor Clay considered that kind of approach
as a reasonable attempt to arrive at something that would satisfy
most of Council. the caveloper, and the citizens in the community.
Councilman Carey said that if the word "negotiate" could be deleted
from Councilman Ey.rly's substitute motion, he would then be able
to vote for it. He stated that he believed the Housing Corporation's
figures; ax*d on that basis, the developer had an obligation to fulfill.
It appeared that the best Council could do would be to decide on
Alterate I or Alternate II. If Alternate II is adopted by Council
and twenty percent would put the developer where he was originally, than
that should be gone ahead with; and there was no need for negotiations.
If the developer wiehed to explain why Council vas wrong or why the
Housing Corporation was wrong, he should do that. Councilman Carey
stated that he was prepared to go along with Alternate II, although
it was really a close question. He explained that he felt disappointed
about having some reaatal units because the period for rental was so
short, and there would be the problems inherent with relocation of
tenants. Councilman Carey thought that units in the thirty thousands
offered housing to those families earning approxi..ately fourteen to
fifteen thousand dollars per year, and that was a need the city ought
to try to meet.
Councilman Eyerly thought the rental of the, units would be foolish
because the rental time was such a short period. He explained that
he mentioned the $33,000 amount in his motion because that was the
figure shown by the Palo Alto Housing Corporation. The word "negotiation"
could be deleted from the motion Ps far as Councilman Eyerly was
concerned.
Councilman Beahrs concurred with the deletion from the motion.
SUBSTITUTE MOTION RESTATED: Councilman Eyerly moved, seconded by
Beahrs, that staff be directed to work with Alpha Land Company to
sell tie seven units at below market price of approximately $33,000.
The substitute section passed on the following vote:
AYES: Beahrs, Carey, Eyerly, Norton,
Witherspoon
NOES: Clay, Sher
ABSTAIN: Berwald
Mayor Norton left the meeting at 11:05 p.md, and Vice Mayor Clay presided
for the rest of the meeting.
MOTION: Councilmen Witherspoon moved, seconded by Behr:, that
the requirement of the developer to provide a park in Phase II of
the Greenhouse Development be deleted as a condition of the P -C ordinance.
Councilman Sher said he wee in agreement with the motion and would
vote far it, but he thought that in doing this Council was making
more lend evailebla for units which were not expected by the developer
and not part of the package. If there are to be more units because
of this additional land, that should be reflected in the number of
below market wits made available. The developer has suggested eighty-
eight nits, and the Housing Corporation has suggested ninety-four.
Evidently, the ninety-four units would make the density in Phase
II equivalent to that of Please I. To Councilman Sher the i pot'taat
thing see has many halos market unite could be achieved. Me suited
it understood that his vote involved the question as to how many /4
units and has maul below market twits there seed be in Phase II.
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9/15/15
The motion passed on a unanimous vote. (Norton and Comstock absent.)
Mr. Goldsmith in addressing Phase 1I of the development stated there
was a basic question ao to whether there should be rental housing
ar housing that would be for sale. He said there did not seem to
be any prospect whatever for money for building rental housing for
this particular site since the amount of money available under the
State Housing Finance Agency will be severely limited. Mr. Goldsmith
thought that the Agency might be providing about four thousand units
throughout the state, and that meant that Palo Alto would not get
sure than one or two projects. The Housing Corporation thought that
the Webster Street site and Frenchman's Terrace were more likely
candidates for receiving funding. Therefore, the only realistic
prospect of getting rental housing would be to landbank the parcel
as the Corporation had recommended in the past, as a means of getting
low and moderate income housing. Mr. Goldsmith thought the day wee
past when there could be any expectations of having projects one
hundred percent subsidized. Under all the new programs, perhaps
fifty or sixty percent subeidization could be expected; and that
would be spread to a very much higher income level than Section 236
housing had been. Consequently, it would be up to what used to be
regarded as diddle income rather than moderate. In any case, the
Housing Corporation felt that aside from waiting for the prospect
later on of building subsidized low/moderate income housing through
the medium of landbanking, the only real opportunity at this time
would be to build condominium housing and ask the developer to provide
a percentage of the housing ar below market pri es. Discussions
had been held with Mx. Griffin to the effect that the Corporation
thought it would be fair if such below market housing represented
twenty percent of the units at a price twenty percent below market
price on the basis that the land cost would be spread to the market
priced units, just as it would have been if a park had been built.
The profit for the below market priced units just should not be there.
Mr. Goldsmith reported that Mr. Griffin had offered to increase the
below market rate units to ten rather than nine out of the eighty-
eight which he has proposed. Further, he offered to discount the
units at fifteen percent below the lowest market selling prlces in
lieu of the ten percent offered earlier. The Corporation's own feeling
was that there would be nothing objectionable to building an additional
six units as long as there was no park bacause that would make the
density exactly the rinse ao in Greenhouse 1, rich everyone sew
to be quite happy with. Presumably, sins units could be added; and
thie could be treated more or leas as the kind of approach that the
Council has talked about on donsity bonuses. If the developer ware
amenebie to building ninety-four units, and Council agreed, and sixteen
of theft were at as price reduction of fifteen percent, with maximum
discounted prices of $31,000 for two -bedroom units or $38,000 for
three -bedroom unite, then that would be a reasonable solution to
the whole situation.
Councilman geahrs commented that the fifteen percent discount could
be picked up either by the eighty out of one hundred buyers, or by
having the loos than market priced units not up to the standards
of the higher priced units with respect to equipment, amenities, etc.
Mr. Goldsmith commented that all of the unite would he identicel.
The *snits for the iov incomes families would be chosen later, and
they would be scattered throughout the development deliberately as
a mama of mixing this economic levels of the families. In that wayr
it would not be necessary for anyone to. known which families were
receiving the benefit of the lower priced unit`.
Co, ci]asu Mehra asked how the low income families would be selected.
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9/15/73
Mr. Goldsmith explained that an elaborate system of selection had
been developed, and it had been used in filling the units at San
Alma, for instance. The effort was to keep the income as low as
possible and still have the occupants be capable of carrying the
necessary payment.
Councilman Beahra considered it to be grossly unfair for eighty families
t.o have to support this kind of an idea.
Mr. Knox thought that the argument was being carried on when it was
not really known whether costs had been passed on by the developer
to the owners of the market rate units. In the meetings with the
Housing Corporation, Mt. Griffin indicated that there is a twenty
percent incremental cost in addition to the actual construction costs
of the units which makes the difference between the construction
costs and the sales price. Based ou this twenty-six percent increment,
members of the Housing Corporation made the decision that a fifteen
or twenty percent reduction in cost would be equita:ale. It was on
those figures that Hr. Knox made the assumption that those costs
would not be passed along to other buyers. It was Mr. Knox' feeling
that the developer was going to be asking whatever the market could
bear on the unite, and he would be pricing them on what he believed
he could get irrespective of what he might be taking in the way of
what might be called a loss on the units. It also needed to be pointed
out that the original deal called for eighty units of fully subsidized
Section 236 housing on this south section, which is a project no
longer viable. The developer is back talking about eighty-eight
units rather than eighty, so he could certainly give away eight of
those units at a cost to bin of perhaps cost plus nix percent without
really being hurt because the units are additional ones. Mr. Knox
explained that this situation was really a kind of density bonus;
and what the Housing Corporation Is proposing is a total of ninety-
four unite, which would bake the density on the south half exactly
the same as the density on the north half. Under those conditions,
the developer could provide sixteen units; and that would make available
the kind of housing that was very much needed in Palo Alto -housing
fee people who were at the very upper end of the moderate income
level.
Councilwomen Witherspoon understood that the plans vtre drawn up
for the eighty-eight unite. If Council now required ninety-four
emits, she meted to know what that would do in tome of the time
schedule.
Mz. leox responded that Mt. Griffin did not want to increase the
density or change the plan. It needed to be rewired that even if
Council took action at this meeting, the matter would still he -,e
to go to the Architectural Review Board. Mr. Knox Vas not at all
sure that Council would be wetter beck the tieing because the matter
would have to 6c• to the ARA in any case.
Mr, Griffin asked when Alpha Land many would appear before the
A B.
Mir. Knox replied that this subject could be scheduled for the third
Thursday in September or the first Thursday in October.
Xr, Griffin said be could attend a meeting the first Thursday in
October with some kind of a revised plan, but Alpha Land really preferred
to keep the density at the sighty-eij bt unit level. Be added that
the dev*lapmest had bees done in units of four, and it would not
be feesibla to have a total of ninety-four. The total amber would
probably have to be either ninety-two or ninety-six, if a change
vers to be made.
l if
196
9/15/75
Robert Boudrias, 478 East Charleston Road, speaking for the Charleston
Gardens Association, said he did not think the members of the Association
would be pleased about having four to six urits added. The developer
has provided for a very adequate buffer under the present plans,
and that buffer would be diminished if more units were added.
Richard West, resident of Greenhouse, spoke in favor of the development.
He commented that his unit was one of the few places he could find
in Palo Alto which he both liked and could afford. One of the aspects
Mr. West liked about the Greenhouse development was the mixture of
people - single, married, young, old, and with and without children.
His preference was to see Phase II approved with as low a density
es possible, and he urged Council to approve the proposal made by
Alpha Land Company.
MOTION: Councilwoman Witherspoon moved, seconded by Berwsld, that
the Alpha Land Company be instructed to construct eighty-eight units
as planned with 12% or ten unite to sell at a price 152 below the
lowest market selling price, but in no event to exceed $31,000 for
the five two -bedroom units or $38,000 for the five three -bedroom
units.
Councilman Bervald asked if the matter would have to go the ARB,
the :Tanning Commission, and then come h ck to Council.
Mr. Booth said the matter would have to go only to the ARB.
Councilman Berwald asked if the motion was asking Alpha Land Com:paay
to amend its P -C application to conform to what was being Baked.
Mr. Knox responded that a resolution would be required, but Council
could take its action at this meeting. With regard to an earlier
question regarding the Environmental A.ssaaament, Mr. Knox reported
that on Phase II no action was taken on the EA which had been written
on December 13, 1974. At that time, the Planning Staff could not
recommend a negative declaration for two reasons. Thera vas a change
in the development removing the 1.4 acre park, which council had
just settled; and secondly, there was the reduction in the number
of low/modsrets units from the promised eighty, which steff at that
time felt made the development inconsistent with Council Resolution
4725 calling for twenty to forty percent low/moderate inc howling.
Mr. Knox said tits Planning Department's actual experience has not
been twenty to forty percent; it has new twelve to thirteen percent.
In order to get to the twelve or thirteen percent level, en over--
all dsysiopeetit of 94 units in these II would hart to be constructed
with 16 of those units being reserved for loss/moderate income housing.
Those 16 would make a 12.6 percentage, and that would be in conformity
with what had been obtained from other developers in the pass two
Years. The current motion on the floor of ten unite, which was Xt.
Griffin's proposal, would result in the over-all project providing
10.52 moderate income wants. If CouScil really wanted to get to
122, thirteen low/moderate incase unite out of eighty-•itht would
be needed in ?bearr. II. Mt. Knox added that 122 ha$ validity from
two standpoints. One is that it has been the city's experience to
get that level of low/mores' rate income units in the developments that
had been constructed its the rut fear years, and the other is that
the Charleston Gardens' poll iubicetsd that neighborhood would be
contented with a 122 level. Mr. Knox arse urging that if it were
possible tc have Kr. Griffin agree to go to a higher number of units,
that each of thus edditiaeal units be put into the moderate income
sales cstsgory. B. concluded by stating it would be better to have
90 units with 12 moderate income uLttts than an 88 to 1.0 ratio.
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9/15/75
Councilwoman Witherspoon did not agree with Mr. Knox' conclusion.
Councilman Berwald indicated his support of the motion. He noted
in the staff's letter of September 8 that the land coverage and number
of dwelling units were fairly comparable to Phase I. In Councilman
Berwald's opinion, the additional open space was quite essential
in order to produce a quality development and give the neighbors
the privacy they wanted; and he thought the present development was
aesthetically attractive.
Councilman Sher stated that he was satisfied with the motion, and
he agreed that 94 units would 1st too many for this parcel of land.
Because of the need for an adequate buffer, Councilman Sher said
he would not be in favor of adding any more units. Eight units were
being built in place of a park as originally proposed. He approved
of the dollar limits in the spread between the two and three -bedroom
units, and his only question was the number of snits which should
be reserved for below market pricing out of the eighty-eight units.
Councilman Sher recalled that originally the developer thought he
was going to have an eighty -unit development that would be all low/moderate
units, and he now has a development that was substantially nude up
of market priced units. If one started with the Resolution 4725
policy which asked for twenty to forty percent 1ow/noderste income
housing and took the lower range of twenty percent, that could mean
in this case about 171 unite out of 88. Another approach would be
that the eight additional units in lieu of the park all ought to
be below market price because they constituted a density bonus.
If 20% of the remaining 80 were added, that would be another 16 units
to make a total of 24. Councilman Sher was certain Mr. Griffin would
not like that approach. Still another approach would be to take
the eight additional units which were a density bonus and make them
low/moderate welts. Then, if just ten percent were taken of the
remaining eighty, that would be eight units; and together there would
be sixteen lower priced units. Another approach would be to do whet
the Housing Corporation suggested, and that was to have 94 unite
out of which 15Z would be moderate priced cite. Councilmen Sher
repeated, however, that he did not agree that it would be a good
idea to have 94 units in that he felt 88 should be the maximum.
Fifteen percent of 88 would be 13 below market priced units, and
that is the same figure which the Planning Department has been achieving
with other developers. Councils Sher's conclusion wee that although
he would like to see more moderato income housings the minimum nuMber
provided should be thirteen rather than ten.
AM [ 'a Councilman Sher moved, seconded by Carey, that 13 cats
rather than 10 be sold at below market price.
Councilman Carey thought that if Alpha Land Company wanted to srgus
in numbers, its representative should begin to do that. Other than
that, Councilman Carey emoted to rely on the excellent report frees
the Housing Corporation which points out there c.'ill be au additional
eight unite if the park is eliminated; and Council hes eliminated it.
Those unite have, in effect, elute ireae land cost because it was not
contemplated originally that even though the developer bought the
land for the park he would be able to beild en it. Counailmen Carney
pointed out that there are sight units out of the eighty-eight that
theoretically have alreedy beau reduced in price by ten percent.
This meant Council vas &eking only for another five. Under those
circumstances, thirteen units or fifteen percent simmered to be in
line with the gousin; Corparatiolats analysis and with what 9.s reasonable.
19#
9/19/73
Coy- ,lman Beahrs commented that this kind of action raduced the number
of people wlio would be subsidizing the thirteen units, and that is
inequitable. Even though the amounts were not large, the principle
was not a fair one.
Mr. Griffin remarked that Alpha Land Company could make the numbers
vary favorable for itself. For one thing, the company had paid over
sixty thousand dollars in interest for carrying the land. He said
that st an earlier meeting he had offered to discount the units ten
percent and provide ten percent of them as moderate priced housing.
After that, Mr. Griffin met again with the Housing Corporation and
made a further compromise. He felt that Alpha Land's proposal was
a very fair one.
The amendment failed on the following vote:
AYES: Carey, Sher
NOES: Beahrs, Berwald, Clay, Eyerly, Witherspoon
The main motion passed on a unanimous vote. (Comstock, Norton - absent.)
Before moving to the next itna on the agenda, Councilman Berwald
explained that he abstained on the motion regarding Phase 1 of the
Greenhouse Development because he felt that increasing the subsidies
from fifteen percent to twenty without hearing from Mr. Griffin was
not fair. He did not vote "no" because he did not want the rental
alternative to pass.
MOTION: Councilman Eyerly moved, seconded by Witherspoon, that Ccuxacil
find a negative environmental impact based on information provided
by staff.
The motion passed on a unanimous vote. (Comstock, Norton - absent.)
NOTION: Councilman lyerly introduced the following ordinance and
moved, seconded by Seehrs, that it be approved.
ORDINANCE O. 2874 antitIWORDINANCE OF THE
COUNCIL OF THE CITY OF PALO ALTO AMENDING :HE
IUD= FOR TEE FISCAL TZAR 1975-76 TO PROVIDE
FUNDS FOR LITIGATION EXPENSE IW CONNECTION WITH
GAS RATE mcsausE$ee
The motion passed on a unanimou+a vote. (Comstock, Carey and Norton
absent)
(CW1;458:S)
Charles E. Welker, Assistant City Manager, noted that a r'port aiad
attachments had been sent to Council which would put into effect
the conversion of federally funded supplemental employees from employment
by the cesem►ty to direct employment by the city. Mr. Walker emphasised
that there would be no direct or indirect city expenditures required
to implement the program.
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9/1S/75
MOTION: Councilman Beahrs introduced the following ordinance and
resolution and moved, seconded by Berwald, that they be adopted:
ORDINANCE NO. 2875 entitled "ORDINANCE OF THE COUNCIL
OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE
FISCAL YEAR 1975-1976 TO PROVIDE ADDITIONAL FUNDS FOR
EMPLOYMENT GRANTS UNDER THE COMPREHENSIVE EMPLOYMENT
AND TRAINING ACT"
RESOLUTION NO. 5138 entitled "RESOLUTION OY THE
COUNCIL OF THE CITY OF PALO ALTO AMENDING RESOLUTION
NO. 5114, ADOPTED JULY 28, 1975, ADOPTING A COMPENSA-
TION PLAN FOR CERTAIN TEMPORARY EMPLOYEES QUALIFYING
FOR EMPLOYMENT UNDER THE FEDERAL COMPREHENSIVE EMPLOY-
MEN'T AND TRAINING ACT TERMINATING JUT 30, 1976"
Councilmen Berwald asked if the positions were casual ones.
Susan Ryerson, Personnel Assistant, responded that the }oaitions were
full-time, temporary ones.
Councilman Berwald asked if the county compensated the city for the
salaries involved plus the benefits.
Ms. Ryerson said that was correct.
Council i: Berwald Asked if there were severs additional positions,
Na. Ryerson replied that there was a total of thirty-five positions
with seven Title II positions included.
Councilman Berwald asked if these positions were in addition to the
existing city staff.
M. Ryerson responded that that was correct.
Councilman Berwald asked if there ware any consideration given as
to whether or not the positions warty needed.
Mr. Walker explained that the positions had beau allocated based
on priorities within the organization, and all of these people wore
doing work the: was necessary and useful, Those employees already
hired under the program have bssn with the city, but they have been
paid through the county payroll. Some of there employees are in
trainee positions, and others are in regular slots. The action needed
tonight would put the employees on the city payroll rather then the
county payroll.
Councilmen Berwald asked if there would be a shortage in the nut aorieed
city stuff if these employees were not on hewed.
Mr. Volker responded tbst there would be different impacts. If some
areas last the CITA positional, some things being dons would no longer
be possible. Also, staff was able to forego proposing additionel
positions to the budget because of the ss3:fstsncs of this CITA positions.
Councilman Berwald asked how any positions were.in mass of t s
required number .of people to do the essential city services.
tar. Walker replied that an acted assessment had not been dons, but
his guess wow that fewer than ten positions could fall into that category.
Councilmen bald aasikad bow the positions were allocated.
1
1
3
a
200
9/13/75
Mr. Walker said the money was provided by the Federal Government
in response to the nation-wide unemployment situation and particularly,
the program here is in response to the high unemployment rate within
the county. The Title II money is allocated only to those counties
having an unemployment rats in excess of seven percent. The purpose
of the funding is to re-train people in order to make them re -employable
and to provide public service jobs for those who might otherwise
be unemployed. The allocation of jobs is based on a formula that
is in direct teaponae to the unemployment rate in various areas.
Mr. Walker did not consider this to be a slush fund, and he knew
of no situation where the city staff was using people on "make work"
projects. Perhaps the jobs would not justify an increase in the
tax rate, but the work being done by these people was useful to
the comity.
Councilwoman Witherspoon asked for an explanation as to why the
report from staff dated August 13th indicated there would be a cost
of $10,500; and the staff report dated September 10th indicated
there would be no cost to the city.
Aix. Ryerson pointed out that ultimately, the city received a direct
monetary allocation when initially there war: a slot allocation;
and the city was left with a wan of money to disburse. Also, initially,
the Manpower BoarO had instructed the city to add no new titles;
in other words, the city had to usa its existing Compensation Plan
titles acd was nct free to create new titles or new salary ranged.
Councilwoman Witherspoon noted that seven positions were going to
be created, end she wanted to know which positions on Exhibit A
of the report wore old ones and which were new ones. She also asked
if seven new employees would be hired or whether city employees would
be placed in the CETA category.
Ma. Ryerson responded that the Personnel Department would be hiring
new people.
Councilwoman Witherspoon realised that employees and the allocation
of employees fell weeder the purview of the City Manager, but she
looked upon the Cf+TA program as a for of revenue sharing or Community
Block Grant Funding. It had been pointed out by Mirs onto Health
Services end t . city staff report that at least a number of the
slots were expected to be allocated to private community organisations.
Considering the prsseurae on Council to feed social service organisations,
Councilwomen Witherspoon thought this would be a good way of doing
that end still managing to avoid a direst cut -of -budget cost to
the city.
'tr. Walker commented that staff had received the type of inquiry
that WIremonte bad communicated on one or two other occasions when
the prograe was initially iced. Rs felt that Councilwomen
ifi.huapoomis analogy of the program to revenue scaring wee quits
accurate end appropriate. In allocating the positions, staff used
tbs city's pr u t ice is revenue shoring as a guide. Mr. Walker said
hs did not . %mow of may case vbsrs revenue sheen mossy wee given
direct'', to a private non --profit ergenisatiee. Social service, that
were funded through rename eberisg were those that were carried
out by contract or were under the direction of City Council and
funded by the city. Staff felt that the city priorities would
be thaw within time purview of th. orgenisetion. Mere wad no reel
direction on that, but staff assumed that past practice was a safe
route to follow.
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9/13/73
Councilwoman Witherspoon thought it would be appropriate to refer
the matter of the allocation of the CETA employees to the Finance
and Public Works Committee. This was a considerable amount of money
and a considerable source of manpower which could be used in a number
of creative ways. Councilwoman Witherspoon did not consider the
jobs listed as being anything more than normal city positions, and
they were not very creative in most respects.
MOTION: Councilwoman Witherspoon moved, second&. by Berwald, that
the matter or the allocation of the CETA employees be referred to
the Finance and Public Works Committee for action as soon as possible.
Councilman Beahrs said it was apparent that the
to the city as of October 1. However, if there
he wanted to know if the city would lose any of
money was available
were any delays,
the positions.
Mr. Walker commented that the allocation was for the fiscal year.
He did not know if the city would lose any of the money, but some
action needed to be taken at this meeting to indicate to the county
that the city was willing to receive the coney. It was his suggestion
that Council enact the ordinance and the resolution; and at the
same time, it could instruct staff to hold any vacancies of positions
open for review at the Committee level.
Councilman Beahrs asked hose many CETA people the city had aire::,dy
and how long they had been employed.
Mr. Walker replied that their ware nineteen people with the city;
and in some cases, they had been with the city from eighteen months
to two years.
Councilman Eyerly asked who had set the policy as to what work the
CETA employees would do.
Mr. Walker said those poeitiona had bean included in the budget
for the last fiscal year, and they were earmarked as traineea within
the department where they worked.
Councilman Eyerly indicated support for Councilwoman Witherspoon's
motion. If staff h+s really put the money and the people into the
right areas, the city could be in some teouble if the county withdrew
the coney.
Councilman Eerwald agreed that this would be an appropriate item
for ths Finance and Public Works Committee to discus,.
The referral motion passed on a unanimous vote. (Comstock, Horton
absent)
Vice Mayor Clay retoted t et the ordinance and reaolutio . would be
voted on with the understanding th+t the positions not yet filled
would be reviewed by the Financw sad Public Works Committee.
Sipel understood that staff had direction from Council not to
fill certain positions. Once the money guts into the budget, the
City Manager has tbs prerogative of moving it around to those areas
where it needs to be used,
Councilman Berwesld asked whet wou.W happen if the entire sattsr were
referred to the Finance and Public Works Committee.
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9/15/75
Mr. Sipel responded that the problem was that the employees are
now on the county payroll, and the county has set a deadline of
October 1 for turning the money over to the local jurisdictions.
Councilman Sher understood that staff was saying it needed the ordinance
to get the money from the county, so that Council should pass the
ordinance with the understanding that the positions not yet filled
would be held up and a reallocation would be made if that were the
decision of Council.
1r. Sipel said that was correct.
Glenn T. Olf, Executive Director of the Mitamonte Health Services,
stated his agreement with Councilwoman Witherepooa's stand. He
said his particular organiamt+on was serving some critical needs,
and he would like to justify that to Council at the appropriate time.
The ordinance and the resolution were adopted on a unanimous vote.
(Comstock and Norton - absent)
2'" EL CAMINO REAL HOLIDAY INN\
IAP2eS.NT
Anne Steinberg, Chairwoman of the Pla.ruing Commission, stated that
the main questioe the Commission had to address was whether it should
consider revie ing the P -C plans before the original plans approved
by Council in November, 1971, had been completed in a manner acceptable
to the Building Inspections Department. The Chief Building Inspector
informed the Commission that he had been unable to gain coaaplience
on the conditions imposed by the ordinance, but the developer apparently
doea not agree with the Building Inspector's interpretation of the
ordinance. However, the Commission was bound by the Hunicipael Coda
which states: "Implementation of a P -C is based on plans being
completed in a manner satisfactory to the Zoning Administrator and
the Building Inspections Department". The Commission indicated
to the developer that he was asking for a major revision of the
plan rather than what he called "corrective measures". It vas the
Commis*ion's opinion that converting 4,000 square feet of basement
to a banqueting facility, constructing a tennis court, and adding
a dining room and a cocktail lounge would be a major change, and
staff suggested an UR may be required. Increased perking eight
well be required rather then distressed, as requested. Adequate
plans were not presented to the Planning Commission. MO revised
lendscaping plans have ever been received, and the leadscaping rains
poorly aaivtainsd - certainly not a park -.like setting by Palo Alto
standards. Mauy hours were spent by the Commission and the Council
in special meetings to consider the signs, and the Commission feels
that very strong justification would have to be tmde for an increase
in signs, especially illuminated onus. If Council feels that that
proposed alterations are appropriate at this time, Commissioner
Steinberg requested that the developer be required to present adequate
plena for the revision of the P -C to the Commission.
CoUncilman Eysrly said he would likes some clarification a* to what
was being debated. Mr. Chan had indicated that :most of the items
had been completed. Councilman Eysrly understood that lr. Chen
was requesting one tennis court, additional sigmas, and a re -striping
on the parking lot.
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9/15/75
Commissioner Steinberg commented that this had been looked at by
the Commission several months ago, and the developer might have
different plans at this point.
Councilman Berwald asked what procedure should be followed so there
could be an updeting of what had been done.
Commissioner Steinberg suggested that the developer be asked to
come is with a revised application because obviously, the Commission
was talking about something quite different from what Councilman
Eyerly was talking about.
Councilman Berwald asked if that would require any additional feea.
Mr. Knox responded that the developer could amend his application.
Staff's memorandum of May 1975, pointed out that Mr. Chen was proposing
a grab bag of items. Some of those items were related to Building
Codes, and some of them related to existing conditions and thus
had no business being incinded in a P -C application. Other items
in the application were very serious changes, but no details or
drawings were provided. Staff had tried to indicate to Mr. Chen
that a simple application was needed which would indicate what he
wanted to do and which would show details so that the Planning Commission
could consider it. Council could deny the requPet outright, in
which case Mr. Chen could not bring in an application for another
year; or Council could refer the matter back to the Planning Commission,
thus giving Mr. Chen the opportunity to come in with an amended
P -C application which would be a clear one.
Mr. Clement Chen, owner of the Holiday inn, said a lot of discuseion
had taken place with the city staff and the Planning Commission,
He stated that it became apparent to him a few minutes after his
subject was discussed that the application would be denied since
a written motion of denial was already in hand, and the Chairwoman
suggested that there be a vote before any representative of Holiday
inn had an opportunity to speak. One reason Mr. Chou was appearing
before Council was because he wee in disagreement with the city
staff and especially the Inspections Department over quite a few
items. There appeared to be communication problems emong the verioaes
departments in the City Building, so there was a series of items
where the Holiday Inn was not in violation of items but was told
that it was. Mr. Chen was told to appear before Council with his
grievances; but in the meantime, ho was told that he vas in outright
violation of the city Cods and was threatened with the c9 ei:.g of
his business. Most of the things staff wanted to have done had
been tr a care of even though Mr. Chen did riot agree with them.
Many of the matters were past history, and Mr. Chan was primarily
interested in discuesi>s.g signing, landscaping and parking.
Raapomding to Mr. Chests offer to defer his item to smother creating
because of the late hour, Councilman Sher suggested the following
action g
MATIOMs Councilman Shur awed, seconded by Berweld, that this matter
be continued to the resting of October 6th at which time it would appear
as the first items on the evade Lifter the Consent Calendar.
Councilman serwald indicated a desire to have a report containing two
columns before this matter vas considered by Council. One column would
list thoaa things which Mr. Chen felt he had done, end the other would
list what the city staff felt had been . dam.
It r
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9/15/73
The motion passed on
MOTION: Councilman
be adjourned to 7:30
The motion passed on
AYES:
NOES:
ABSENT:
a unanimous vote.
Sher moved, seconded by Berwald that this meeting
p,m., September 22, 1975.
the following vote:
Beaters, Berwald, Clay, Eyerly, Sher,
Witherspoon
Carey
Comstock, Norton
sagialaMcie
ra
The meeting adjourned at 12:30 a.m. to 7:30 p.m., Monday, September 2�.2 , 1 .975.
ATTEST:
205
9/15/75
APP (0V'E :