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HomeMy WebLinkAbout01071974CITY COUNCIL MINUTES CITY o PA;AO fL O January 7, 1974 The City of the City of Palo Alto met on this date at 7:30 p.m. in a regular meeting with Mayor Comstock presiding. Present: Beahrs, Berwald, Clay, Comstock, Henderson, Norton (arrived 7:47 p.m.), Pearson, Rosenbaum (arrived 7:43 p.m.), Sher (arrived 7:40 p.m.) Absent; None Crescent Park School Chorus The Crescent Park School Chorus sang a song entitled 'I dean Palo Alto" hich was written by 2.r. Don Clark. Virginia :filler, principal of Crescent Park School, thanked the Council for having the chorus make its presentation. Mr. Don Clark presented a copy of the song to the city. C'jbberle y Hi h School un - sing IJr ve ins or t.axae ' irl.f�1 Mayor Comstock announced that the Cubberiey High School Band was conducting a fund-raising drive in order to make an appearance at Palo Alto's sister city, Oaxaca. They are selling tickets for a drawing which will be held Satu 'day evening, January 19. There will be dinner and dancing with music by the Cubberiey Jazz Ensemble. He encouraged anyone who was interested in supporting the activity to contact Cubberley High School. Minutes of LteCeal�er 10 1973 Councilman Henderson referred to page 407, first paragraph, last sentence, and asked that the word "it" be deleted and the following insertion made in its place: "about changing the meeting date again." He referred to page 408, item 6, first sentence, and requested that the word "in" be deleted and a cow inserted after "park." MOTION: Mayor Comstock moved, secce ded by Pearson, that the minutes of December 10, 1973, be approved as revised. The metion passed on a unanimous vote. Minutes of December 17 1973 Mayor Comstock referred to page 439 and requested that the repetitious paragraph 5 be deleted. He referred to page 435, line eleven, and asked that following the word "assessment" the figure "($45,000)" be in- serted. 0 0 1 1/7/74 Vice Mayor Pearson referred to page 445, fourth paragraph, and requested that the following paragraph be substituted: "Vice Mayor Pearson urged Council to defeat the amendment and support the $3,750 for the reason that in the business world purchase orders are often adjusted after costs are determined. Some of the biggest companies have their budgets and purchase orders adjusted frequently by the federal government. The smaller the numbers, the pickier Council gets. On the earlier beautification item, Council did not pick about a $45,000 increase in costs, nor did it recommend that the increase be absorbed by the downtown merchants." Vice Mayor Pearson referred to page 449, sixth paragraph, fourth line, and requested that the word "they" be deleted and the words 'the noises" be inserted. Councilman Beahrs referred to page 442, sixth paragraph, next --to - e ;L line and said that the word "of" should be "on." MOTION: Mayor Comstock Droved, seconded by Pearson, that the mix;tes of Oeceriber 17, 1973, be approved as revised. The motion passed on a unanimous vote. Memorial Service for J.P. Mitchell Mayor Comstock reported to Council that he had the opportunity to participate in a memorial service for J. P. Mitchell at Stanford Memorial Chapel and pay tribute for Mr. Mitchell's service to the city. mo tion of Construction S sterol Inc or ena- n oar n uE7nt vision ifda 627-641 Forest MOTION: Mayor Comstock moved, seconded by Berwald, that Council approve the application of Construction Systems, Inc., for a Final Condominium Subdivision Hap (18 units) located at 627- 441 Forest Avenue; and find that no significant environmental impact will result from this project. Vice Mayor Pearson said she understood that three single-family residences would be demolished, and she would like the following information: (1) Will the people be assisted with. relocation? (2) How many units are represented in the houses? (3) What is the num1$er of possible units that could be ,,_accJ ea . the site? (4) v-aea they do the construction and are repairing the sidewalks, will they provide ramps for people who are handicapped? Planning Director Knox responded that the matter of ramps for the handicapped is being looked at by the Architectural Review Bard. The zoning en the site would allow a total of nineteen units. Three dwelling units are represented in the three structures to be demolished. Vice Mayor Pearson asked if the houses are empty. 0 0 2 1/7/74 Mr. Knox responded that they are presently occupied. They will have to be vacated and occupants relocated thirty days prior to demolition. The motion passed on the following vote: AYES: Beahrs, Berwald, Clay, Comstock, Henderson, Norton, Rosenbaum, Sher NOES: Pearson A lication of John Pappas 4er z ra Couci`o�uinium �:a ) 4 omen venue NOTION: iayor Comstock moved, seconded by Rosenbaum, that Council approve the application of John N. Pappas for a final condominium subdivision map ($ units) 1ooated at 459-461 Eomer Avenue, and find no significant environmental impact will result from the project. Councilman.Henderson stated that he would continue to maintain his stand of not approving condominium conversions until the study is completed. he commented that something must have been said at the Planning Commission meeting, but there was no discus- sion in the minutes. Planning Commissioner Klein: responded that the feeling on the Planning Commission was that a preliminary approval was forwarded without reccamendation; therefore, it would be inconsistent to take any other position on the final application. Vice Mayor Pearson asked if time had permitted including the provision about sidewalks and ramps for the handicapped. Planning Director Knox responded that this building was undertaken prior to activation of the Architectural Review Board; therefore, there was no review other than the permit. Vice Mayor Pearson, asked if any actiol could be taken to wake sure these rasps were provided. City Manager Sipel said that it could be reviewed at the staff level, and if staff feels some changes should be made, they can ask the developer to do so. Through good faith he may comply, but there is no way tlat the city can compel the developer to do anything at this point. Vice Mayor Pearson said she would appreciate it if staff would try to do something. She stated that she would vote against this application, because the condominium study is not completed. The motion passed on the following vote: AYES? Beahrs, Berwald, Clay, Comstock, Norton, Rosenbaum, Saar NOES: Henderson, Pearson 003 1/7/74 Ap2lication of Schwarz Construction ompany or entat ve u iv s on p Westerly Corner of Arastradero Road and Cherry Oaks P ace See p. 76 004 1/7/74 MOTION: Mayor Comstock moved, seconded by Pearson, that Council approve the application of Schwarz Construction Company for a tentative subdivisions map (5 lots), located at the westerly corner of Arastradero Road end Cherry Oaks Place, subject to conditions listed in the Planning Commission minutes of December 19, 1973; and find that no significant environmental will result from this project. Vice Mayor Pearson commented that this was the first time she had seen in the recommendations the requirement that ramps be installed for the handicapped. The motion passed on a unanimous vote. Aa llcati,on of Rossi 5 Grotewohl Enterprises for tentative on otaanium Foe Avenue a;td rant Street MOTION: Mayor Comstock moved, seconded by Berwald, that Council approve the application of Rossi and Grotewohl Enterprises for a tentative condominium subdivision map (12 units) located at the easterly corner of roe Avenue and •Bryant Street subject to conditions listed in the Planning Commission Minutes of December 19, 1973; and find that no significant environmental impact will result from this project. Councilman Henderson commented that on page two of the environmental impact report, there was a statement regarding a ramp to the _underground parking garage. He saw nothing in the final conditions to indicate this had been taken care of. Planning Director Knox responded that the matter was taken care of during Architectural Review Board approval. Councilman Henderson stated that he was concerned about the loss of low/moderate income units. In looking at the four: proposals, it illustrates that nine units were lost in the process, each meaning the city is losing a significant number of these units. Vice Mayor Pearson noted that the conditions of Planning Coimraisaion do not include a requirement that ramps be installed for the handicapped. Planning Director Knox responded that it would be appropriate to add such a condition at this time. AMENDMENT: Vice Mayor Pearson moved, seconded by Henderson, to amend the motion to add the condition that there should be ramps for the handicapped in accordance with city standards. The amendment passed on a unanimous vote. The motion, as amended, passed on the following vote: AYES: Beahra, Berwald, Clay, Comstock, Henderson, Lorton, Rosenbaum, Sher NOES: Pearson Discussion of Order. of Consideration o en a Items 1 Mayor Comstock commented that staff had suggested that it might be appropriate to consider the items on the agenda in a different order than listed. Having read the staff report and the reasons suggested, he found himself persuaded that it would be an expeditious way to handle the agenda. He asked for Council's interest or desire to follow the order suggested by staff. Mayor Comstock also noted that there had been many meetings concerning Fire Zone 1 aid Council had heard from an extraordinary number of people in the community. He said Council was very much aware of the comments that had bean made in the many meetings and he would like to take the time thie evening for the Council to deal with the matter. Councilman Sher said that he thought that the agenda would be better handled other than as the staff recommends. He stated he would prefer to see the moratorium extension questions considered last so that it could he considered of what the city hopes to accomplish. That could be better seen after handling the other matters. He felt that the Planning Commission recommendations should be considered before_ those of the Policy and Procedures Co::mitte o because one of the most important things that Council is considering is creation of new zones, and the Policy and Procedures Committee did not cake any recommendation, whereas the Planning Commission died. He felt that the recommendation of the Planning Commission about the rehabilitation program should be considered late in the proceedings. Councilman Clay felt that the Policy and Procedures Committee recommendation ehouid be considered first, because it had to do with the feasibility of the rehabilitation program on which Council would get into great discussion. Councilman Henderson said he would like to support what the Mayor said about moving on with the matter. He said he does not enjoy adding onto to the moratorium extension and hoped that public input would be liaised to new information, Councilman Berwald said he definitely agreed with Councilman Sher that consideration of the moratorium should be deferred until Council can determine what just reason there is for extending the moratorium and for how long. Concerning Councilman Clay's comment, he felt that before Council talks about mandatory rehabilita- tion and implementation, it should decide the zones. Vice Mayor Pearson agreed with Councilman Sher's suggested order. She pointed out that if Council passes the ordinance reconunending that the use permits and restrictions on rehabilitation be lifted and does not extend the more torium, it will cause trouble. City manager Sipel confirmed that.there would be a problem if the extension of the moratorium is not passed either this week or next week. Councilman Berwald commented that he would be willing to go along with the order suggested either by Councilman Sher or Councilman Clay. Regarding the question of audience participation, he stated that he hoped there would be as much public participation allowed as is desired by the public with no restrictions. See p. 76 005 1/7/74 Mayor Comstock responded that normal Council procedure is to recognize members of the audience who wish to speak. He suggested having an overview by the staff, then moving on to item 6 (creation of new zones). Then anyone who is clearly on the record with particular points can rest assured that Council members are familiar with them. If there is need to present additional information, they will be asked to use their best judgment. Ordinance .;mendin Title 18 (Zonin r inance o t c ao to.unc sl iM to c r ` i an anr etr-3 tat on d str cr e TFT ons Assistant Planning birector ?tike Grigoni commented that Council had before it tonight Ll:ee related sets of recommendations on Fire Zone 1, which included a proposed eighty -day extension on the demolition moratorium, recommendations of the Policy and Procedures concerning rezoning, rehabilitation and related issues, and recommendations of the Planning Commission concerning creation of two new rehabilitation zones. He noted that all of these recommendations were the result of approximately twenty- five hours of Policy and Procedures Committee and Planning Commission public hearings and review on the staff's Fire Zone I study. These review meetings were preceded by over eight months of staff effort and several years of city concern over housing in Fire Zone 1. He said that Council can now move out of the study phase and into implementation of a -comprehensive program to meet Council goals and save existing Type V units in Fire :-one I. Mr. Gri .:oni reviewed the major recommendations contained in the Fire Zone 1 study. Mr. Grigoni dealt with the rezoning aspects of the recon .endation and said that the recommendations before Council this evening would result in the following major changes in the original recoiniendation: 1. One added area would be considered for rezoning, Area VIII, R -2 -REHAB. 2. instead of a three -level density bonus system, a two -level uystem would be incorporated in in the R-2 and R-3 REHAB zones (R-2 and R-3 in the R -2 -REHAB zone and R-3 and R-5 in the R -3 -REHAB zone). 3. Instead of I:1 or ten -twenty -thirty percent requirements for low/moderate income housing, twenty percent would be required for development at the base and one third low/ moderate of the added units allowed as the bonus. 4. Fewer parking spaces would 4e required for low and moderate income units. Mr. Grigoni commented that if Council acts to adopt new zones, it is making no commitments to actually apply the zones in the future. Consideration of this issue will commence when the Planning Commission initiates rezoning hearings in February as shown in the proposed schedule included in the December 13 mem* on the demolition moratorium. However, adoption of the proposed zoning ordinance on second reading, will mean that the modifications to use permits and parking requirements will be effective within thirty days. No added Planning Commission or City Council actions will be necessary. O O 6 1/7/74 Mr. Ben Pawloski, Director of Public Works, summarized part two of the study dealing with rehabilitation. The basis for the rehabilitation program is the Federally Assisted Code En- forcement Program (FACE) which was based on mandatory code enforce- ment and three percent loans and direct grants for rehabilitation. Federal funding provided one hundred percent of the loans and grants and two thirds of the program is administrative and capital improvement costs. Using FACE as a starting point, staff's efforts were directed toward a locally funded code enforcement program. Staff's approach is inbetween gutting and a cosmetic approach involving paint and fix -up. It does involve painting the outside and also involves restoration Of the interior of the units to meet safe and sanitary standards. Staff would work with individual owners to identify the code deficiencies in the unit, develop a financial plan, and award a contract, act as agencies in the administration of the contract and see• that the work is completed ant! necessary payments made. It is proposed that there be a project area committee to handle review of the relocation assistance and development of a neighborhood capital improvement program. The relocation assistance program, which is a part of rehabilitation, vouid be in accordance with the relocation assistance policy that has been adopted by Council. Regarding rehabilitation, there are two approaches -emendatory or voluntary. The Fine Zone 1 staff report addressed both. Staff sale its reco=endatians on the basis of the four areas briefly discussed by ';r. Grigoni. Since that time staff has compiled costs for different alternatives that emerged as a result of the discussions in com-.,ittee. Those wsre submitted in the staff report dated December 78. The basis fi r all the cost estimates on rehabilitation was a sidewalk survey that was made over a year ago. Those costs have since been updated to reflect cost inflation, and additional factors have, been provided for inflation In the future. 'air` que;,tion of funding was handled in the report, and the city hired a legal consultant to investigate various methods of fuadiral. The entire report of the legal consultant is contained in the Fire Zone 1 study. There were four methods of financing discussed --private sector financing, revenue bond financing, a tax allocation method, and unappropriated capital improvement fund. The financial data that was compiled in the Fire Zone I study report was based on the so-called San Francisco plan where revenue bonds would be sold and the mortgage -loan rate would be that rate which probably today is about five and one- half percent plus the cost of servicing the loan which is estimated to be one percent. The most recent financial data staff has submitted to Council is based on subsidized loans ---a three percent loan and revenue bonds at five and one/half percent. City Attorney Robert Booth commented on the legal aspects. He stated that the entire program contains a number of diverse elements each of which raises legal questions and problems. Regarding rezoning, the ordinance creates two new zones and in addition removes the use permit requirement for residences in various downtown type zones. It should be emphasized this particular zoning does not apply to any properties in the city at this time. If enacted, appropriate proceedings will be necessary by the Planning Commission and Council. Regarding mandatory requirement:a and density, this is the most far --reaching part of the program and most likely to lead to litigation. The City Attorney's office believes both of these zones are supportable from a legal standpoint. The city's Housing Element (Interim Housing Statement) states that the city intends to preserve and valiance a mix of low/moderate income housing scattered through - fl 0 7 1/7/74 out the city. It is becoming the law that governmental entities are expected to follow the zoning in the general plan more than they have in the past. Courts have forced cities to take action to meet low/moderate income housing relief. It is a sign that the courts are going to look harshly at cities which make no attempt. The R -2 -REHAB and R -3 -REHAB zones tend to meet constitu- tional requirements for a general mix of housing. Reasonable conditions may be attached to rezoning subdivisions and other types of land development activity when they are related to the burden caused by that construction. It is valid to require those removing housing to meet a part of that destruction and removal. The incentives provided within the zoning such as a relaxation of parking and similar zoning requirements or higher densities spread the burden of meeting low moderate income housing needs among the greater part of the community instead of entirely on the property owner or developer. Regarding code enforcement, City Attorney Booth pointed out that the city already has the power in Section 16.40 of the Municipal Code entitled "Dangerous Buildings" to require substantial remodeling, upgrading and rehabilitation of properties anywhere in the city or their demolition. That is *why this program is before Council tonight. Enforcement on a strict basis of that chapter of the code downtown would result in removal of much such housing. Since 1971, the city has had in effect a tousing code which provides different standards from those in chapter 16.40 of the Municipal Code. Goals tonight would be directed toward enforcement of the housing code. F:eparding a rehabilitation financing program, a substantial mount of the legal work was perfort'ed by an outside legal, consultant. The City Attorney's Office has been working with him at every stage and finds the approaches there meet satisfactory tests. City Attorney Booth stated that he believes the various aiterna.cives proposed are legally supportable. MOTION: Mayor Comstock introduced the following ordinance and moved, seconded by Rosenbaum, its approval for first reading: "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING TITLE 18 OF THE PALO ALTO MUNICIPAL CODE BY AMENDING AND ADDING CERTAIN SECTIONS AND CHAPTERS RELATING TO THE C0NST .UG-- T1ON, MAINTENANCE, ENHANCL ENT, AND REHABILITATION OF DWELLING UNITS" Councilman Beahrs commented that in some of the earlier discussions he had expressed concert over the fact that although Council favors a mix of housing and commercial utilization of land in areas peripheral to the core, he was not certain whether or rot such a mix was allowed by the proposed zoning. He asked if a person can provide on a given piece of land both residential and commercial utility to that land. Councilman beahrs said that he was in favor of this mixed use because due to the value of the land, if there is a combination use, the commercial activities to some degree would support the cost of the residential use. Mr. Grigoni responded that the answer was both yes and no. In the shaded portions of the map, only a purely residential zone is indicated. In the rest of the area, by eliminating the use permit for housing, mixed use is allowed as well as purely commercial or residential uses. Staff is recommending 0 0 g 1/7/74 that if rezoning some areas along the fringe is desired that the shaded area be where it is done. In the remainder of the area, staff is suggesting that mixed use would be allowed. Councilman Beahrs stated that he felt that Council would run into less conflict if his suggestion were accommodated. If the value of land is knocked down fifty percent, it is grill an extremely extravagant use of land from a residential use standpoint. Tax costs alone would not be covered. Council is unrealistic in not trying to accommodate this particular pt:oblem and if it fails to do so, there will be litigation. Councilman Henderson said that fie.was unclear about Area II -A. Is it in the rezoning and what is the zone? 2•ir. Grigoni responded that the recommendation is to return Area II -A to the zone which surrounds it to the south which is R- 4. The reason the recommendation_ is made is that there are some commercial structures in that area, and housing units there are fairly new. They are not possible units for rehabilitation. It seemed like the most relevant kind of zoning for that area. Also, staff realized that if it did not make the recommendation to rezone to mixed use, there would be a spot or co_r ercial surrounded by residential. Councilman Henderson cor..nented regarding the ordinance itself. He referred to the paragraph in the City Attorney's memo of January 2 regarding neu construction and asked if the proposal there would be locking Council in in terms of what the replacement situation would be, He asked if we are talkieg about new construc- tion in terms of if a property owner decided to tear down existing property and rebuild on it, this is the regulation under which it would fall. If the proposed ordinance is passed, has Council locked itself into a decision as to replacement requirements. Mr. Grigoni replied that if the ordinance is passed as written, a new zone would have been created with those requirements. It would not be applied until some future date. What the Planning Commission is recommending in this twenty percent and twenty percent plus one /third is a substitute or alternative to 1:1 replacement. Councilman Henderson stated that his problem is trying to take portions of the subject and make judgments. He felt that Council should discuss all of the items such as mandatory versus voluntary and the concept of replacement before working on a specific ordinance that has pinned down a particular replacement percentage situation. Planning Commissioner K/ein said that the Planning Commission did consider 1:1 replacement and other possible numerical tests as well as the one proposed by staff. That is the crux of the ordinance. Councilman Henderson commented that the only solution if a person feels this is not the correct figure would be to vote against the ordinance. Vice Mayor Pearson asked if Council has to direct the Planning Commission to start rezoning, 0 0 9 1/ 7/76 Mr. Grigoni responded that the Planning Commission can initiate rezoning on its own. If the Council passes the proposed ordinance, the Planning Commission intends to initiate rezoning and would consider that issue as well as the application of the R -2 -REHAB and R -3 -REHAB zones. They already have the rezoning issue as an assignment from the Council. Vice Mayor Pearson stated that she has a problem with this particular ordinance and the ability to amend it. She still felt convinced that 1:1 replacement with modifications of that would result in mere replacement housing if someone were to demolish rather than what is proposed. She stated that she is familiar with every house in the area under consideration. She mentioned a house which was not included and which had been partially rehabilitated. Mr.. Grigoni responded that the house to which she referred is in the parking assessment district which is why it is not included. Vice Mayor Pearson said that she felt that if Council is going to give people assessment breaks that this house would qualify and should be included. She referred to a group of houses which is near the Fire Station on Lytton. After looking at then, she felt they deserved to be rehabilitated and kept in housing stock. Mr. Grigoni responded that as mentioned in the Fire 'Lone i study, staff did not feel that Area V should be recommended for rezoning because of the problems that they had concerning the fact that there were few Type V units in that area. 'Their location presented some problem and there was a heavy mix of nonresidential uses in that area. The potential residential use was hampered by the Palo Alto Times Building which staff thought was a blighting influence. Mr. Grigoni stated further that under the recommendations for eliminating the use permit, rehabilitation would still be possible. See p. 76 Councilman Sher stated that he thought it was important to focus on what Council is doing. It is not doing any rezoning as such but is acting to create a new zone which may or may not ever be applied. Obviously, when the Planning Commission recommended it, they had in mind that it might be a possible good zoning for these areas. It is clear that when the Planning Commission sets this down for a hearing on the rezoning, any kind of recommenda- tion can come out of that hearing. Another possibility which Councilman Beahrs suggested earlier was the idea of a residential. area which permits either a residential or a mix of residential and commercial. That idea commanded the most support of any which Council discussed. Probably if this goes forward on the time schedule suggested, it is not possible to create that kind of new zone in tima for the hearing. 4n the other hand, there is time for the Planning Commission to consider the possibility of that new kind of zone so that if it is thought best, the city would be In a position to consider it. He said he was hopeful that when this goes to hearing, all of these possibilities will be discussed. Tonight Council is talking about one new category. Councilman Sher asked City Attorney Booth about the provision for twenty percent low/moderate income housing in the proposed new rehab zone. He asked if the City Attorney 0 1 0 1/7/74 saw any problem arising out of the fact that the requirements of R-2 and R-3 zones are substantially those being built into the proposed rehab zones except for the requirement of low -to -moderate income housing.. He said he was worried about the fact the property owner in the R-2 zone does not have to include the twenty percent while the property owner in the R-2- REHAB zone does. City Attorney Booth said that the program here is attempting to sheet a specific need relating to preservation and rehabilitation of Type V property without raising rent. The program as structured with density incentives tends to spread the cost of the required low/moderate income housing, if the entire program is followed through among the entire community, thus achieving a higher density on the R -2 -REHAB{ and R -3 -REHAB zones than their adjacent neighbors would have. He pointed out further that the City Council also has in effect a resolution which requires twenty to forty percent low/moderate income housing on all new construction of twenty units or more. Councilman Sher responded that that contains a substantial difference in the cutoff of twenty units, and it is not built into a zoning law. It is simply a policy directive from Council, more or less negotiated with individual property owners. He asked if the City Attorney saw the twenty percent low/:moderate requirements as a :substantialdanger to this zone when it is contrasted with neighboring zones that are similar. `ir. Booth responded that that portion of this ordinance is the one which is most questionable, but there is no authority in California either way on this subject. The one case which the City Attorney's office has found which deals with the subject is frcm the state of Virginia. The facts and views are considerably different. He did not believe the case would stand to upset Palo Alto's approach to the same problem. Mr. Grigoni cemented that he did not think that zoning should be considered alone. It is part of a comprehensive program the city is undertaking in those areas. Rehabilitation assistance would not be available to the R-2 property across the street either. Councilman Sher responded that it true only with respect to replacement of Type V housing. This feature of the new zone applies not just to replacement but to any new construction o, any parcel of property in that zone. There is no rehabilitation feature an that. Councilman Sher then referred to the definition of low/moderate income housing, rents and prices, persons and families. The definition of low/moderate income families is by reference to a federal statute. He said he had a question which relates to how a low/moderate income house is defined and how it is defined in terms of rents and prices that do not take more than twenty-five percent of a low/moderate income. There was some discusaican of that in the Planning Commission. To work that out there might have to be a considerable amount of parcel -by --parcel discussion. He said he was not so much concerned with rents but in regard to ownership units where the requirement would be to build a certain number of low-priced units and then as he understood the definition, it would have to be determined whether they let the requirement of whether it took more than one fourth of the person's monthly income to pay the installment payments. 0 1 1 1/7/74 Ir. Grigoni said that the system that staff has suggested for qualifying low/moderate income tenants or buyers is similar to the federal program operated under Section 236 or Section 235. It consists of a set of eligibility income limits which set a maximum income and says anybody within those maximum limits shall pay a rent which is no more than twenty-five percent of his adjusted income. The staff is suggesting using the Sec- tion 236 income limits and rentalpercentages of twenty-five percent. It should be a fairly simple system to operate. Staff is working with the Housing Corporation to develop the administrative procedure to operate it. Mr. Grigoni did not think the difference between rental or sales units presented difficulty. The administration of this kind of program would be simpler under the sales approach because staff would not have to monitor it on a year -by -year basis. Councilman Sher said that he agreed with it as far as who qualifies for the house. The other half ;,f the problem is what qualifies as a low/moderate income unit. When you talk about paynents, you say you only have to monitor it once but we all know that installment payments are a function of the initial down payment and the term of the loan. ',That really ,'as to be worked out is what qualifies on the financing of the original sale of the house so that the payments are not spread over forty years. IIr. Grigoni replied that it is entirely possible that a developer might obtain a very large don payment but staff did not think that people wL.:, would be eligible under the income limits would have that kind of down payment available. Staff did not see a problem of getting around the regulations in that way. Staff did not expect that very many units would ever be developed and the.refo.-e require close city supervision under this kind of approach. Staff has looked at the number of low/moderate income units that might be developed under this zone. There are very few. Staff looked at the area of I, 11, III, IV, and VIII, and utilizing all of the land that could be developed, staff tried to find out how many units could be developed at the various densities. The total number of units that could be added ranges between 433 and 557 units ---low and high. In terms of the number of low/moderate income units, the range is from fib -130. That again is if every bit of the land is redeveloped at the lowest or highest density, The point of the zoning was not to create or replace or develop a lot of new low/moderate income housing in the downtown area, but to act as a disincentive to development to preserve units. The key objective was to balance the decision that an owner/developer had. The man who cooperated with the city and rehabilitated without these kinds of replacement requirements would not have as good a deal as the man who decided to demolish. The fact of the matter is preservation. Councilman Sher stated that council should recognize that this proposed new zoning is not going to create a lot of new low/moderate income housing but is intended as a disincentive to tearing down Type V housing. Councilman Rosenbaum wondered what thought was given to those businesses that currently exist in the area proposed to be rezoned. They would become nonconforming and live under the shadow that implies. He asked if there were consideration 0 1 2 117174 A given to snaking exceptions to continue without the nonconforming status. City Attorney Booth said that under the ordinance as proposed, those parcels that contain commercial uses would be rendered nonconforming and could stay until removed through attrition or Council could establish an amortization period in which they would be removed. Planning Commissioner Klein stated that the planning Commission quite deliberately stayed away from consideration of any particular zone or any particular parcel of land. As they saw their role that would be only when nhis ordinance was passed, and they got into rezoning particular parcels. Regarding Mr. Grigoni's comment that the Planning Ccmmiss{on decision regarding incentives for low/moderate income housing and the requirement of twenty percent were intended to force people to rehabilitate, Mr. Klein said that was not the case. The Planning Cosaaission did not go with the idea of one-to-one replacement, because it felt that it should try to strike a balance where the landholder would have some alternatives. The Planning Commission was of the belief that the formula set forth in the ordinance was a fair one and provides the land owner with a reasonable alternative. Ceunci tti:an Rosenbaum said that Council is hampered by the need to separate the passing of an ordinance froi- the application of it to certain pieces of Tani, when in reality the tt'o go together. Suppose Council decided it did not want to have these nonconforming properties. Nr. Booth said that those provisions could be added into this ordinance providing for the treatment of nonconforming properties in any respect Council chooses. Councilman Rosenbaum commented that the Planning Commission might want to apply some e ,judgment as to whether it makes sense to encourage the existing uses to remain. If they have before them only one ordinance, how are they going to, have -this leeway in making the application when they look at individual pieces of land. City Attorney Booth responded that it would be better handled with this ordinance. If it needs to be crneidered as a whole ,matter by the Planning Commission, it could be referred to the Planning Commission with the recommendation that they propose an appropriate amendment to the ordinance before Council tonight at the time they consider application to specific properties. Councilman Berwald commented that he assumed from the discussion_ that the Council had more or less passed the consideration of adopting a voluntary versus a mandatory approach to low/moderate come housing in Eire Zone I since all of the documents have ntapled to them descriptions of Fire Zone I. From what has been aid tonight, it is apparent_ that Council is establishing a zone would be a specter over every piece of property in Palo ".ilia, since Council is told that it is not to be dis- cussing this in terms of any one area. Therefore, the assuuipption 0 1 3 1/7/74 Is that it is being discussed in terms of possible application to any piece of property in Palo Alto which fits this description. He felt that this was a decision that the Council should make before adopting ordinances. Councilman Berwald said that he was adamantly opposed to any ordinance that attempts to solve the housing problem by placing an arbitrary percentage of low/moderate income housing on each property. Also if the city is going to be involved in the determination of who is eligible, that is another cost to the city. Councilman Berwald continued that the Connell meeting of December 10 when Council was talking about continuing this matter to January 7, he noted that a number of prccedures that have accompanied Fire Zone I proposals have bothered him a great deal, one of which was the waiver of general notice to people in the affected area. Councilman Berwald quoted the minutes where City Attorney Booth said it is legal but it is an extremely important issue to the Council and the city and he would like Council nbt to consider this item until there has been general notice in the downtown are.. Councilman Berwald said that Council :.s asked to consider this as establishment of a zone without its application to any property and yet all of the discussion tonight, maps on the wall, attachments to the various documents, the cover letter that is stapled to the ordinance, ill refer to Fire Zone 1. If this ordinance passes tonight Council will have made a decision that there shall be this zone by ordinance. i';e wondered if it would be improper to do this and wondered if this ratter should be referred to the Planning Commission for study, not on Fire Zone 1, but in connection with the Comprehensive Genera/ Plan. City Attorney Booth responded that as he recalled that question, it referred to a scheduled Planning Commission hearing for application of this new zone to vario s properties in the downtown area. It was pointed out atithe time that because of the relatively short time remaining until expiration of the current moratorium that the City Attorney had ruled that the procedure could be accelerated somewhat but that the Planning Commission would not hear any rezoning matters until such a zone was in existence. Mr. Booth stated that throughout the lengthy study and consideration of this process, there has been any number of public meeting's in which all of the property owners in Fire Zone 1 were included. That includes a newspaper advertisement announcing tonight's meeting. He did not believe at this stage that there was any lack of notice to owners involved and he thought that the record would show a considerable number of them have availed themselves of the opportunity to present their views. Councilmn Berwald asked if there is any precedent to this type of procedure. Has Council done this before in establishing a zone without applying it to specific property? City Attorney Booth responded affirmatively and said that the_ most recent example is creation of the O -S zone. Councilman Berwald asked why not take the actual zone and handle in a normal ,eshian by including it in discussions on the Comprehensive General Plan and that way perhaps have more time for public input and to consider its effect elsewhere. 014 1/7174 Mayor Comstock responded that staff is acting under Council direction and proceeding in the time schedule. City Manager Sipel said that staff assumed from the Council's decisions on the matter that Council wanted this to be done rather deliberately and not put in the comprehensive plan. These matters will be discussed in the comprehensive plan but somewhat like the 0-S zone matter. Staff has been given directions to plan in advance of the comprehensive plan process. Councilman Berwald pointed out that the referral item was on April 17, 1971, and it is now the first of 1974, and he had a feeling that .a number of mandatory provisions in the zoning and in other parts of the program might be better taken in step with the comprehensive plan. Councilman Berwald then referred to section 18.17.020 and asked if the term "bona fide rehabilitation" means restoration and improvement of existing Type V wood frame buildings to housing code standards. Does that mean that that part of it would not fit the mixed use on one side ---commercial downstairs and housing overhead. Mr. Grigoni responded that this reference in the proposed ordinance is just to define the standards of rehabilitation that would be reached. It is to be sure the standard is the mousing code and not the building code. the zoning itself would prohibit a new cot erciai building. It is a residential only zone. Councilman Berwald said that he would like to know what.. the costs would be of that particular portion of the program to administer the eligibility. Regarding Section I8.17.040 ---density --Councilman Berwald suggested that some consideration be given to ,sore of a square -foot -of -building and square -foot - of -lot ratio. He said this is not a simple question to answer, but asked if that uere considered as a possible area of exploration. Mr. Grigoni., replied that it was not considered because staff wanted to attempt to the extent possible to stay with the zoning ordinance and with as few changes as possible to the present zoning ordinance. There will be a full review of this zoning ordinance to consider floor area ratios and other alternatives for inclusion in that revision. That issue was not considered in Fire Zone I. Councilman Berwald pointed out that we are not talking about Fire Zone I. Mr. Grigoni stated that new concepts should be considered in the city's revision of the rezoning ordinance and assured Councilman Bervaid that such ratters would be considered in the comprehensive plan review. Councilman Berwald asked if this ordinance could be applied elsewhere in Palo Alto and Mr. Grigoni responded affirmatively. Councilman Berwald referred to Section 18.17.070--parking--and asked if that section applied even though the bonus is given. If a lot is improved through bona fide rehabilitation and it constructs new low/modarate income housing, does that apply to that additional bonus or just the rehabilitation itself? 0 1 5 1/7/74 Mr. Grigont replied that there are two alternative proposals regarding parking. One is that if new units are added through rehabilitation, no additional parking requirements would be made. Secondly, if new low/moderate income units are added through new construction, then parking requirements relating to those units would be lower than normal. Regarding usable open space, Mr. Grigoni said there would be no minimum but only in the care of rehabilitation. It is an incentive to help property owners rehabilitate. Councilman Berwald asked what if a person owns an R-2 or R-3 building and it is in need of rehabilitation and it does not come under the REHAB zone and he pays for it himself and does his own work. He does not get this bonus but the person in the R -2 -REHAB or R -3 -REHAB zone would get the extra fifteen percent building coverage. Mr. Grigoni responded affirmatively and said that the liberal standards are available to anyone who rehabiltttates up to housing code, whether that rehabilitation ir, done with the city loan or grant or through private financing. Councilman Berwald com:nanted that the reason he asked these questions was to spell out some of the Inequities in the ordinance. He said he was depending upon the value which is given to the noble purpose of low/moderate income housing and the value that is given to the concept that this will provide low/moderate income housing. This becomes less clear in terms of the state- ment that very few low/moderate income units will come out of this ordinance. Notwithstanding those two goals, them: are inequities in this ordinance that should be worked out whether it is passed or not by the Planning Commission. See p. 77 0 1 6 1/7/74 Councilman Clay said that there has beer a lot of discussion over the last several months regarding rezoning low/moderate income housing as it relates to R -2 -REHAB and R -3 -REHAB zones. The question was asked how do you define a low/moderate income some and staff groped with that answer. The reason is that there is no definition outside of the context of federal support for low interest loans. The city does not have that umbrella under which all of this comes. Councilman Clay said this causes him to ask how then do we arrive at the number of units we are going to provide, who we are going to provide it fox, how it is going to be financed. He asked for staff to tell him again how we arrived at the number or the definition or the location of 1o4/soderate income homes in Fire Zone I. Mir. Grigoni responded that the number is based upon the recommendation of the Planning Commission. Councilman Clay said the criteria would be either by income of a'tenant or by the price of the rental unit because there is no federal subsidy. Mr. Grigoni said that staff was talking about those units that would sell for a monthly housing cost basis or rent for twenty-five percent of the income of a person who is at or below the income limits. Councilman Clay asked what w,auld pcevent a house that rents at today's low/moderate income rent from having the rent raised tomorrow. Then it would no longer fall in the low/moderate income category. Zoning has nothing to do with it. Mr. Grigoni said that the income limits are continually changing and going up as the cost increases for administering Section 236 programs. under this program increases could be potentially paid by tenants even using this system. In the original report, staff explained in some detail methods for administering the rental and sales program under these requirements. Councilman Clay commented that outside the context of federal subsidy, there is no definition for low/moderate income homes, and there is no federal subsidy among the homes we are talking about. The ordinance is based or the preservation of low/moderate income homes. It implies that there are low/moderate income homes already there. How do we know that they exist there? Mr. Grigoni said that there been a lot of study to determine what generally are the rents and sales prices in Fire Zone I. In the process of administering the rehabilitation program, doing code enforcement in the units, etc., staff twill be determining which ones are low/moderate income and rich are not. Staff is not recommending one--to--one replacement. Councilman Clay asked how Council arrived at the decision that there should be an ordinance. ae assumed chat preceeding that, there was a definition of a problem and the definition had nothing to do with the number of low/moderate income units. He said if Council is asking him to provide a solution, he has to know what the problem is. If you use federal standards, Palo Alto is above the national average by a large amount. A;;..ong those who would qualify under federal guidelines, how many of those persons live in Fire Zone I. Councilman Clay then referred to Section 18.23.020 entitled "low and moderate income housing," and asked if there is any home there that is intended for that use. Mr. Grigoni responded that this section does not apply to existing housing. It is an attempt -to define a low/moderate income unit as included in new construction. Councilman Clay asked if staff had talked with fnaneial entities or people within financial entities about the likelihood of the city's getting accepted. by the private financial sector. Mr. Pawloski responded that staff discussed the financing of this program with the Bank of America which has proposed the San Francisco Plan. At this point it is a kind of chicken or egg thing. When the city has the program ready to go, staff can start talking with banking institutions. Councilman Clay asked if staff inferred that a commitment might be made. Mr. Pawloski said that there were no negative statements. x};;. comment was that when we have a program ready to go, they would discuss financing. 0 l 7 1/7/74 Councilman Henderson stated that at this point he would support the ordinance as proposed by the Planning Commission. As he has been working with the figures, he felt.the need for more time to consider ramifications of one to one, and he would have that opportunity at the second reading. Vice Mayor Pearson said that when she toured the area, she was struck by the fact that most of the plots of land in those areas are occupied by houses which are occupied by people as residences. There are very few mixes. Businesses are actually in business structures. In the new proposed REHAB zones, they are mostly houses. It is her feeling that what Council is doing is creating a new residential area, and if there are businesses and business structures that they would become nonconforming, and the Planning Commission should consider how they could be kept in the area. If something should happen to the building, it would be her hope that it would be restricted as residential buildings. In the noncore area it is a different natter. There are some mixes. Some residences and businesses are in Type V structures. For the noncore area it was proposed that there be that ability to have both businesses and residences and that is where she thinks that situation should occur. In the core area where there are Type V residences, those structures can be used as either businesses, residence., or a mix. In the proposal that she sees coning from the Planning Commission, it is true that the city will not get many new low/moderate income units built but the Council's policy and goal has been to retain what exists. The question was asked how do we know there is poverty in this area, and low/moderate income housing. in 1966, there was a special census by the county, and they gave out those numbers. The income level by household in Palo Alto in the 1966 census showed the poverty level as 10.9 percent. Twenty-three percent were at four thousand dollar income. They also separated the income levels by census tract. The census tract we are talking about is basically 113, and that is where the highest number of impoverished people are located in the city. Also contained in the census of 1970, is the fact that in P;lo Alto there are 1,139 households with incomes below the poverty level of four thousand dollars a year, Palo Alto has 626 elderly persons below the poverty level. They are predominantly located in the downtown area. This has all been documented in the census and Council has had many studies coming out of the Planning Department supporting these numbers. The locally established government standard for low/moderate income for this particular area ranges from $3,740 for a single person to $5,250 for a family of four and up. Residents who fall in the law-incoue category are some students, many elderly, retired people on fixed income, beginning level workers, some female heads of household, servicemen and their dependents, and some unemployed. Persons falling into the moderate income range from teachers in the Palo Alto (Unified School District .oho earn $7,410 and include others such as Palo Alto city employees, nurses at the Stanford University Medical Center, secretaries, bank tellers, and employees of a large local industrial company whose median salary is $9,073. An excellent source of information which was compiled for the City of Palo Alto is the booklet which was put out by the League of Worsen Voters, and they have documented all of their figures. They also have the number of demolitions which occurred. 0 1 8 1/7/74 Regarding Council's consistency, Vice Mayor Pearson continued that in 1969 when she was on the Finance Committee, she noted that there was a brief line in the budget which suggested hiring 2 new building inspector who was needed to help implement a policy which existed to eliminate all Type V wooden structures in Fire Zone I. She raised questions, and people became aware of the policy which might destroy their houses. They became vocal and Council finally recognized that it was not desirable to destroy this badly needed housing. Steps were taken by various Councils which have voted consistently and unanimously for broad, highprincip1ed policies. In 1969, the Council adopted a Hownhsg Element consisting of standards and plans for the improvement of housing and for the provision of adequate sites for housing. The Housing Element is intended to make adequate provision for all economic segments of the community. In 1971 the Policy and Procedures Committee recommended to the Council that the first four resolutions of the Santa Clara County Joint City -County Housing Element be adopted as interim goals and policies to guide Palo Alto in the formulation of appropriate action efforts. Vice Mayor Pearson reviewed those goals and policies which included the declaration that zoning is to be used in ways which will encourage variety and mix in housing types and provide adequate sites for housing persons of all income levels in Palo Alto with particular emphasis on enlarging housing opportunities of low/moderate incomes. Council has repeatedly endorsed the concept of maintaining the existing housing in Fire Zone I and has reaffirmed its Housing Element of the General Plan. In April, 1973, Council adopted a resolution adding goals and policies to the housing element. She does not believe that these are empty policies and goals. The subject of Fire Zone I has been studied, reviewed, passed back and forth in and out of committee for four years. Vice Mayor Pearson said it is not fair to the tenants and owners of the whole area to continue to ;)rocrast.inate. Now is the time to go forth or forget the whole thing. However, if Council does not go forth, then it must be prepared to change the housing element so that it is truthful. Councilman Beahrs commented that it is apparent that everyone is wallowing in a morass of good intentions, verbiage, and unproven theorie3. He said he was beginning to see the light in the shell game. On balance, from all the discussion and oratory, it does seem to hiss that the city is inclining to favor rehabilitation as compared to redevelopment. As far as he is concerned, he favors redevelopment as compared to rehabilitation. Redevelopment gives the city an increased supply of comfortable, safe, and esthetic housing as compared to stopgap preservation of antiquated housing. He said he wants more housing for more people. This is what concerns him about the rezoning effort. He asked if he were correct in his perspective. 1 City Manager Sipel responded that this was basic policy direction that the Council set forth. The assignment staff had was to explore ways to preserve the existing housing stock in Fire Zone I. Staff was not asked to come up with ways it could produce more housing, perhaps of this type. Staff has responded to the assignment. U i 3 1/7/74 Councilman tkeahrs felt that a basic problem had been touched upon. He wondered how Council can justify requiring a landowner to support nineteen living units on a piece of property worth 000,000. His recitals would not cover his taxes. Councilman Berwald commented that Vice Mayor Pearson was correct in the history of Council actions which she cited; however, ne felt that the point was missed if Council did not stay on the track of wanting to do a reasonable job of preserving housing, and wanting to do a reasonable job of having housing for the low/moderate income people. That does not mean that this particular way must be accepted as the way to get it. He said he was not at all ccnvinced that the twenty percent mandatory is the way to go. After his questioning of the staff and consistent with previous Council action where Council has said that zoning was to be designed to encourage: low/moderate income housing. The answer staff gave was that they would consider floor area -land area ratio. He would like to know how Council could encourage the Planning Commi€sion to give just as much consideration to that, and consideration to waiving parking requirements with an assessment to the property owner where the parking requirteents in excess of one-to-one are waived. Fe felt that t..e city could achieve a nix of housing bent by a voluntary approach. He has found that developers do nave a soul and are interested in accepting an assessment c ,ere parking requirements are waived. He finds developers amenable to considering provisions of levying an assessment if they do not provide housing for certain lower income groups. They are interested in mixed zoning, and they are interested in lifting the moratorium as soon as possible and the onerous building restrictions in Fire Zone I. AMENDMENT: Councilman Berwald moved, seconded by Beahrs, to amend the ordinance oy deleting the basic twenty percent requirement on new construction but leaving the incentives in. Councilman Berwald indicated that he would like for the Planning Commission to consider the items that have been mentioned. Fe would like to have the twenty percent deleted but have the incentives left in. City Attorney Booth stated that if this amendment passes that he would bring back at second reading a corrected ordinance which would change whatever sections were necessary throughout. Mayo: Comstock asked that citizens' comments be limited to new information not already submitted to the Council. Richard Plumridge, 111 Sutter Street, San Francisco, attorney representing Wells Fargo Dank, owner of three parcels of pro- perty on Hamilton Avenue between Waverley and Cowper, stated that Wells Fargo Sank sees no reason why it and other property owners in Fire Zone I should be required to provide subsidized low/moderate income housing in Palo Alto through devaluation of thrie property. The cost of such housing should be borne equally by all the people of Palo Alto. He said Wells Fargo's property - c.ill fall to approximately one third of'its present value if rezoned, whereas property owners across the street will find their property is not devalued. Welts Fargo has paid taxes on 0 2 1/7/74 these sites for many years based on their value as commercial pro- perties. White it is agreed that low cost housing is a desirable goal, this goal should be achieved at an equal cost to all resi- dents of Pa`o Alto. Mr. P.lumridge cautioned that if rezoning of Wells Fargo property takes place, with the resulting present $15- $20 per square foot value tieing devalued to around eight dollars per square foot, the bank will have no alternative ut to bring an inverse condemnation suit against the city. Another alter- native would be for the bank to file for declaratory relief and seek an injunction against the city to prevent enforcement of said zone. Since costs of government are constantly rising, he urged Council not to take action which would regtire city funds to be used for this kind of litigation. Wells Fargo Bank respect- fully requests the City Council to reject any rezoning as unfair to property owners in the area and to revise the boundaries of Area 2 in Fire Zone 1 to prevent an unfair burden being placed on Wells Fargo Sank. Cour.cihiian Sher addressed Mr. Plunridge and asked whether he would not ag;-ee that his entire statement tonight is not to the point. He said there is no situation before Council tonight concerning rezoning any parcels of land. :,'hat the Council is talking about is creation of a new category and property owners will have to appear before the Planning C<,Y:aission when hearings are held on which parcels will be rezoned. Tonight the Council is only dis- cussing creation of a new zoning category and in fact has no business talking about existing zones or rezoning of existing zones. =mayor Comstock repeated his request that only new and pertinent information be submitted to the Council tonight. Frank Manfredi, 219 Addison Avenue, said he would like to define what low income housing means to hits. A lot of people do not know what low income housinf, is. To him, low income housing ,is if a man has not got the means ti ppy the rent, he should have low income housing. This applies to medium income housing also. It is the bloodthirsty and gouging landlords and developers who are killing Palo Alto, increasingOletaxes, and chasing out the low income people who came here originally as serfs for Stanford and other establishments. Much is said about property values of $300,000. ]tr. Manfredi said he is tired of developers trying to make a killing on property they bought for a song. The only alternatives to providing low and moderate income housing is rent control which would base the rents on the taxes the landlords pay. Ruth Frapwell, 571 Hamilton, stated she had looked at some of the taxes that people pay and said she would question the valuation of properties on Lytton, particularly in regard to the figure on which all the information submitted to Council is based. Walter Harrington, 835 Page Hill Road, suggested that Parker Brothers might develop a new ga.e called "Fire Zone 1" and one of the chance cards in the gam: might be "advance to R -REHAB". Seriously, Mr. Harrington said it all cotes down to first establishing a philo- sophy. Council should ask themaelvee how much cooperation do they really want with the present property owner? How important is that. cooperation in achieving the goals stated for the city? These are reasonable goals, but Council gust first come to grips with that question of whether they want the cooperation of the property owners because if they do, by downzoning Council is corking against 0 2 1 1/7/74 itself. Mr. Harrington asked how much do you really want to tie your own hands? Several Council members have mentioned the possi- bility of creating a mixed zone. He cited as an example an old Victorian House on Bryant Street which is in the "here today, gone tomorrow" category. There is no way that that house can be rehabili- tated or placed into the parking district. Why not, Mr. Harrington suggested, permit a commercial operation on the first floor of that house and upstairs, on the second floor, lcw/moderate income housing. There must be incentives provided to the property owners to make that: kind of thing happen. He said he felt_ Council was precluding many options and choices and he would suggest creating a mixed zone, such as C/R zone. In any basic philosophy for action, cooperation is a necessary cornerstone. Mr. Harrington went on to cite as an example the issue of forced busing. He said this was an issue in San Mateo County and the voters were not there for it and in his opinion, the votes do not exist in Palo Alto favoring a forced or mandatory low income housing program. If Council votes a mandatory requirement Council should be prepered to go to the polls in a referendum. He cited further examples of litigation where a judge ruled that one group should not bear an unjust burden to pro- vide a benefit for the entire community. Reverend James McLeod, All Saints' Episcopal Church, Palo Alto, spoke to the issue of redevelopment versus rehabilitation and said he had not heard of any progressive ways in which redevelopment has worked. What usually happens with redevelopment is the lower income people have to move out because all the property goes up in price. Many people who live in Reverend McLeod's parish are within walking distance of All Saints' Church and are dependent upon low cost housing to stay here. They must be close to facilities and they do not know where to go if they do not have this kind of housing. Reverend McLeod said he would like to have better infortation on redevelopment because in his experience it usually means "you move out." Ed Stephens, social worker, 1918 Vena Avenue, said he sells real estate on a part time basis, and wished to express his concern regarding an old house at 661 Waverley which has great artistic significance and which should be permitted to be developed as a commercial property rather than being divided up into units. It is already a single family residence with the original interior there and the only person who could afford to restore this interior to its original condition would be 'someone with a commercial interest. The house was built in 1 896 and he considered it a monument in Palo Alto. Mr. Stephens said he was motivated not by selfish intereats but a desire to see structures such as the one at 661 Waverley restored because of their artistic significance. Brooke Kanto, 55© Melville, said he wished to spear to the one to one replacement issue. What is at issue is whether one to one replacement is economically feasible or not. Mr. Kantor noted that the staff report, in Appendix B, contains a study on economi,c feasibility of replacing housing on a one to one replacement figure. He has recalculated this study using the federal housing program 221 D-4--Piarket Interest Rate, Multifamily Housing, which involves the federal government in insuring the property at a market interest rate. Hr. Kantor said he would submit his analysis to the City Clerk in writing tomorrow and then proceeded to outline the details. 0 2 2 1/7/74 Alan J. Dutra, 521 San Gabriel Court, Pleasanton, stated that he is a designated senior real estate appraisor and staff appraisor for the California State Board of Equalization, and that he was recently hired tv do a market value appraisal of two properties in Fire Zone I. The inea was that he would compare the value of the property as it is currently zoned, C -2-S, and.the value if it were rezoned R -3 -REHAB zoning. As a result of this study it was his conclusion that for the parcel on the southeast corner of waverl.ey and Forest the value of $205,000 under the current zoning would be reduced to $100,000 should the proposed R -3 --REHAB zoning be instituted. For property on the southwest corner of Forest and Cowper he estimated a decline from $90,000 under the current zoning to a value of $40,220 if rezoned to R -3 -REHAB. In both cases value of the properties would decline greater than fifty percent. Mr. Dutra said he also reviewed assessments made by Santa Clara County Assessor's office and gave a further opinion that similarly located properties will suffer declining value of fifty percent in zones 2 and 2A of Fire Zone I if rezoned. Dan Schwartz, 401 Webster, spoke in opposition to the proposed rezoning. Roy Stark, 4000 El Cerrito Road, said he has sat through three Planning Commission sessions on this subject and at those sessions he did not hear one person speak in favor of the proposed ordinance, yet when it came to the vote the public was ignored. If Council is hearing duplication of remarks this evening, that could be the reason why. As far as the subject being discussed tonight is concerned, he wondered if the maps displayed on the wall tonight show all zones. He felt this matter, affecting the entire city, :zed not been adequately publicized. Mr. Stark noted the majority of property owners in Fire Zone I are elderly persons not interested in 306 mortgages and if it is planned to impose a mandatory rehabi- litation program on the area it is not fair to expect this property to be rehabilitated at present day costs at the expense of a few private citizens to provide so-called low cost housing. Alex Kulakoff, 835 Page Mill Road, addressed Council against putting handcuffs on free enterprise which he felt would provide the necessary housing. Bill Heald, 2712 Newlands, Belmont, addressed Council with a description why he is planning to move to Palo Alto. Janet Owens, 863 Morino, representing Midpenineula Citizens for Fair Housing, addressed Council with the hope that a rehabilita- tioa program would be ready for implementation by spring. She also stated that when financing methods are considered for the rehabilitation program, she hoped that revenue sharing funds would be considered a possible source. Adam Cintz, 127 dims Street, addressed Council in opposition to rezoning. Florence Lynch, 321 Hamilton, representing the Palo Alto Real Estate Board, reviewed contents of a letter which had been sent to Council which included consideration of a different core area than presently proposed. 0 2 3 1/7/74 Xnne Witherspoon, 1255 Hamilton .Avenue, pointed out that there are two separate problems --that of revitalizing and bringing up to code a decaying downtown area and a completely separate problem of thereby not eliminating the number of low rental units existing there now because of standard conditions. She concluded that it would be more logical to develop a comprehen- sive policy and housing goal for the city ays a whole and to spread out the location of such units across town and not concentrate the majority of them in large projects or just one segment of town._ Fred Hyerly, 877 -Sharon Court, president of the University and Crescent Park. Homeowners' Association and Board of Directors, said that enactment of the ordinance is spot zoning and his organization feels it shculd be a citywide setup and study. Ramifications of low cost housing and necessary subsidies should he referred to the voters. Harvey Nixon, 430 Kipling, stated that staff had been straining with this problem for three years and now when they went out to the banks they were told that they did not have a plan. He was opposed to the moratorium. Ccuncilman Norton said that he likes the part of the ordinance which removes the prohibitions against improvement of Type V structures. That is a good idea and provides mote flexibility to the area and to some degree it will encourage improvements. He said the balance of the ordinance and most of the other proposals he does not favor. It is true that while the zone is not being applied tonight to specific lands, it is naive to assume the Planning Commission will not recommend such application. He was impressed that if one takes the entire city in perspective, there is a comparatively small number of dwelling units being saved by the proposal at a tremendous cost to the city in subsidies. The coat is unbelievably high for the few benefits to be gained. Another consideration is how many of the units that the city is proposing to preserve are actually undistingui3hed and unworthy of being preserved. If houses were selected with beauty or historical value, he could see more benefits. To go around subsidizing the salvation of buildings that have not much merit in the first place he could not feel enthusiastic about. The mere discussion by the city of this subject has done mere to upset the natural low/moderate income balance than anything landowners would have done in the normal course of things. He said that Council would have to recognize that rents have been and are artificially low in this area, partly due to previously established city policies. Any forced rehabilitation is bound to increase rents, and the only way to prevent it would be rent control which he did not feel Council would do. He felt that the effect of all this talk and nonsense has been to increase rents. The administrative costs to the city are bound to be trenrerdous. It will create a new department for Mr. Grigoni. It is obvious that when you first have to define what is low and moderate and then ask each individual whether he is low or moderate income to determine the before and after situations will take a tremendous aininistrativa- program. Then, keeping the loan qualifications program will take more staff time. 0 2 4 1/7/74 This is an area in which the city has not traditionally been involved. The elimination of the parking requirement is unrealistic. It assumes low/moderate income people do not drive cars which is probably not true. The effect is going to.be to create parking problems, and he felt that Council was being irresponsible in not maintaining parking requirements. Me idea of the city paying costs of relocation of people with month -to -month tenancies is impossible for him to justify. He said he had never understood why f person with a month -to -month tenancy should be paid three to four thousand dollars to move. He said he would predict that it will, not work and it will not accomplish the goal which people who advocate it would like to accomplish. Mayor Comstock noted that there was an amendment on the floor to delete the basic twenty percent requirement. Councilman Sher commented that the amendment would eliminate the twenty percent requirement on new construction. His under- standing is that part of the proposed zoning which is not really designed to produce low/moderate income housing but rather to act as a disincentive to the destruction of Type V houses. As he remembered the staff recommendations, the requirement of low/moderate unit in new construction was substantially leas. Given the recommendation of the staff, he asked if the passing of this amendment would really undercut the policy of preservation. Is it worth having the REHAB zoning? Mr. Grigoni responded that there are other incentives for rehabilitation in thu zoning and by moving from commercial or industrial to residential alone that again preserves the units as housing. It reduces the possibility of reaching the objective but it does not eliminate it. Councilman Sher said that he strongly favors a policy to try to preserve the existing housing which he thinks gives the Palo A;1to downtown area its character. He strongly favors innovative attempts to try to combine some kind of mixture that will make it possible to revitalize and rehabilitate downtown. He therefore favors generally putting on the books the kind of zone to carry out that objective. He said he worries about the twenty percent requirement. He has a problem justifying the difference in treatment. He said that since he has problems with the twenty percent requirement, he would vote for the amendment, but he thought it was important to vote for the residual zoning. Councilman Clay noted that the twenty percent requirement and the description for implementing that part of the ordinance used federal guides ner,as a description for low/moderate income housing. He asked if that were specific enough. Suppose the federal guidelines were to change. Mr. Grigoni responded that these definitions are all that are needed to define low -to -moderate income and what kinds of rents. Councilman Clay asked if it would not be better to describe boundaries by doliar figures. 025 1/7/74 Mr. Grigoni said that would remove flexibility from the ordinance. Staff has attempted to write up a procedure for defining low/moderate income instead of defining boundaries specifically. This gives flexibility. Councilman Henderson referred to Councilman Sher's comment about wanting to preserve the existing housing. He said if there is a single home on a lot in this area to be rezoned he did not see the incentive to keep that single home if it could be torn down and built up to new R-2 or R-3 zones. He felt that there should be a percentage incentive. Planning Commissioner Klein commented that if the amendment were passed, he had serious doubts as to whether any developer would ever use the remaining incentive bonus that is in it. The amendment passed on the following vote: AYES: Beahrs, Berwald, Clay, Norton, Sher NOES: Comstock, Henderson, Pearson, Rosenbaum the ordinance as amtnded passed on the following vote: AYES: Comstock, Henderson, Pearson. Rosenbaum, Sher NOES: Beahrs, Berwald, Clay, Norton Councilman Berwald commented that he wan Klein's comment, because he thought that for new incentives if Council passes any zone that would make it work. pleased to hear Mr. there were needs kind of rehabilitation NOTION: Councilman Berwald moved, seconded by Beahrs, that the rehabilitation ordinance be referred back to the Planning Commission with a direction from the Council to determine the feasibility of additional incentives such as those mentioned in his letter of January 4, 1914, and including the consideration of basic ratio of land per square foot --floor coverage per square foot rather than units for this type of zoning; to consider assessments to property owners when parking requirements are waived; that there be a provision ip the ordinance for mixed zoning such as commercial and residential on the same property which would have the effect of having a rehabilitation' zone not downgrade the property as much as this purpor..s to do; to consider some way of protecting the city if someone provides low/moderate income housing in accordance with density bonus and that condition would change so that the lot/moderate income housing would not be needed or feasible on that site or if the developer would be willing to build it somewhere else that there be some provision for an .ssessment upon termination (in other words, a provision for conversion out of as well as into low/moderate income); that the Planning Commission Beek to eliminate from the ordinance those inequities already mentioned such as why should a person in a REHAB zone be able to add fifteen percent greater density when he rehabilitates and someone in a R-2 property someplace else does not get the sake bonus; to attempt to resolve the questions that have bean raised this evening with respect to the reduction of the 'value of the property being downzoned. 0 2 6 1/7/74 Ccuncilman Rosenbaum commented that he thought what Councilman Berwald was proposing had considerable merit, but not in the fashion it was being done. Councilman Berwald's assignment would require a considerable length of time and might well fit ittto the comprehensive general plan and zoning ordinance. What he is asking for is a different one. Councilman Rosenbaum stated that he was prepared to go ahead with this zone as it is now. Council is in the midst cf !this planned revision and may come up with zoning which it thinks is more attractive than what is b+fore it now. This is the on that is here, and Councilman'R.erwald's assignment would take far too long. He said he would like to make a referral to the Planning Commission later. Councilman Henderson stated that he could not support most of the items Councilman Berwald was presenting. It would have to be a longer discussion with more alternatives. In some cases he was asking for special consideration for property owners and then saying it is unfair to give them something without it in other areas. If it goes back in this manner to the Planning Commission, Council has to make a decieion. Are we going to make this part of the general plan or do we go ahead with a plan. He said he would prefer to move on with the ordinance. he would be opposed to the referral in this manner. Vick' Mayor Pearson stated that she agreed with both Councilman Rosenbaum and Councilman Henderson. The motion failed on the following vote: AYES: Beahrs, Berwald, Clay, Norton NOES: Comstock, Henderson, Pearson, Rosenbaum, Sher Councilman Rosenbaum expressed concern about the nonconforming status of commercial properties that might be in a piece of land which the zoning is applied. It was not in connection with a mixed commercial use but in Fonnection with not putting those properties under a cloud. That area has been zoned commercial for many years. He will have a right to maintain without problems. MOTION: Councilman Rosenbaum moved, seconded by Berwald, that staff add language to the ordinance that would provide that a nonresidential use in existence on a property at the time zoning is applied be declared an allowable use on that piece of property. Mayor Comstock asked how this would be administered. Would this provide far the property orner to maintain the property in the normal state of development. What about additions? City Attorney Booth responded that the motion does not speak to additiona. Remodeling would be allowed; in case of fire, rebuildtng to the existing use would be permitted. Vice Mayor Pearson said she felt that those bueinessgs already there should not be put in a position where they are treated the sane may as Type V structures were treated as nonconforming. 027 1/7/74 What Councilman Rosenbaum is asking for is language in the ordinance which would prevent that kind of deterioration. She suggested that rather than having it put into the ordinance that the Planning Commission be asked to devise something to make it come out that way. Councilman Rosenbaum agreed that the subject tr.:ight benefit from staff and Planning Commission input. SUBSTITUTE MOTION: Councilman Rosenbaum moved, seconded by Pearson, that the question of nonconformance be referred to staff and Fir -taking Commission fof consideration as an addition to the ordinance. Vice Mayor Pearson asked if the Planning Commission, when it looks at places to apply the ordinance, wants to have a percentage requirement to /ow/moderate income housing and come back with better documented reasons of what the situation would be. Mayor Comstock said that they cannot. The hearing conducted on the basis of this ordinance would be as described in the ordinance. The motion passed on a unanimous vote. MOTION: Councilman Rosenbaum moved, seconded by Berwald, that Council direct staff and the Planning Commission to begin work on a zone which would allow on a given property a mixed residential and commercial use or residential use and in addition would provide an incentive to rehabilitate existing stock. Mayor Cvwatock commented that it is important that staff understand whether this is to be brought into the Fire Zone I review. Councilman Rosenbaum replied that his intention is that Council has passed a zone which may not prove appropriate to the property that is under consideration. He said he was looking forward to the creation of another zone which may better serve the need. He thought that the time scale was going to be that associated 'with the comprehensive plan. City Manager Sipel stated that in the absence of .specific direction, it would be his inclination to put it into the comprehensive planning process in the zoning ordinance redraft that will go through at the end of that process. Vice Mayor Pearson referred to the Policy and Procedures Committee recommendations concerning Fire e land said that exactly what Councilman Rosenbaum was tal ing itbout was contained in these recommendations. Referr g it to the Planning Commission would give them the opportunity t develop a new kind of zone. She said she did not want it to be put aside in the comprehensive general plan. She wanted it to be talked about in the Fire Zone I study. Councilman Beahrs agreed and said he thought this should receive immediate attention, because the whole question is central to Fire Zone I and is a problem with respect to the legal implications tonight. If these people'is the peripheral area in the core have a real gripe regarding destruction of fifty percent or more of their property value, then he thought the zone situation could be salvaged and it should he done now. Councilman Rosenb um asked where staff stands on the assignment that came from th& Policy and Procedures Committee which is closely related to what he suggested. Mr. Grigoni replied that with regard to the issues or recommendations for the core and noncore areas as they came out of the Policy and Procedures Committee, they were very specific, and staff is in the process of developing for the Planning Commission consideration, feasibility, impact and population data relating to thooe specific recommendations. No new zoning has been developed relating to those recommendations. Staff felt the need to get the Planning Commission's recommendation. Councilmar Sher asked if it would not take another zone to carry out what is under consideration and what the Policy and Procedures Committee recommended. He did not see the difference between what the Planning Commission already has under consideration and what has been moved. Mr. Grigoni said that if the Council moves the Policy and Procedures Committee recommendations to be considered by the Planning Commission on Wednesday night, the staff will present legal impact and population data. The preliminary analysis of the impact of this zone led staff to recommend against its adoption in its present form. Staff needy to have discussions of that alternative and get responses from the Planning Commission. AMENDMENT: Councilman Beahrs moved, seconded by Berwald, that staff be directed to give this proposal immediate attention in the sense that. is proposed by the Policy and Procedures Committee. :ir. Grigoni asked if he understood Councilman Rosenbaum to be talking about an alternative to the zone. Councilman Rosenbaum said it might be, or it could be applied in addition He thinks the questions have been brought up with the Policy and Procedures Committee. He had in mind a new zone that would accomplish some of the things suggested by the committee. Perhaps in retrospect it would be better to wait until Policy and Procedures Committee recommendations are discussed before discussing his motion. City Manager Sipe' suggested that for the tip being the motion be withdrawn, Policy and Procedures Committee recommendations considered, and then if there are some aspects that might not be covered, they could be filled in. MOTION AND AMENDMENT WITHDRAWN: Councilman Rosenbaum, with the approval of Councilmen iierwald and Reahra, withdrew the motion and the amendment. 0 29 1/7/74 Policy and Procedures Committee Recommendations �o Council oncernig Fire Zone i' �fl®I�i/rA MOTION: Mayor Comstock moved, seconded by Pearson, that the Policy and Procedures Committee recommendations regarding Fire Zone I be considered out of order at this time. The motion passed on a unanl.muus vote. Mayer Comstock noted that agenda item 9a, the matter of establish- me,t of the R -2 -REHAB and R -3 --REHAB zones, had been dealt with. Vice Mayor Pearson said that she thought the mixed use of redevelopment in the area was an exciting idea. It gives the- opportunity to have the mixed use and still provide low/moderate income housing and preserve the structures. Councilman Beahrs stated that he is supportive of the recommendations but on the other hand he did not tJink they went far enough. He would be disposed to favor redevelopment as compared to rehabilitation. Councilman Berwald requested that the motion be divided into all of its segments. MOTION: Mayor Comstock moved, seconded by Pearson, that the Policy and Procedures Committee recommendation to divide the re'.ainder of Fire Zone I (not including proposed rezoned areas) into' a core and noncore area be referred to the Planning Commission. The motion passed on the following vote: AYES; Beahrs, Clay, C4m.stock, Henderson, Pearson, Sher NOES: Berwald, Norton ABSENT: 'Rosenbaum MOTION: Mayor Comstock moved, seconded by Pearson, that the following recommendation of the Policy aid Procedures Committee be referred to the Planning Commission: In the noncore area allow only residential or mixed use re development on any site with an existing Type V residential structure provided there is one-to-one replacement of law/moderate income housing. The motion passed on the following vote: AYES: Beahrs, Clay, Comstock, Henderson, Pearson, Rosenbaum, Sher NOES: Berwald, Norton MOTION: Mayor Comstock moved, seconded by Pearson, that the following recommendation of the Policy and Procedures Committee be referred to the Planning Commission: Allow only nixed use residential development on parcels with existing mixed use Type V structures, provided there is one to one replacement of low/moderate income housing. 030 1/7/74 The motion passed on the following vote: AYES: Beahrs, Clay, Comstock, Henderson, Pearson, Rosenbaum, Sher NOES: Berwald, Norton MOTION: Mayor Comstock moved, seconded by Pearson, that the following recommendation of the Policy and Procedures Committee betrefer.°ed to the Planning Commission: Provide deferment of any future parking or other assessments on rehabilitated Type V residential or mixed -use. structures which include rent limitation. i. Co Zncilman Norton questioned the inclusion of rent limitation. He wondered if it should be broadened•to provide deferment with or. without rent limitation. AMENDMENT: Council t Rosenbaum moved, seconded by Clay, to amend the motion by striking the words "which include rent limitation." Vice Mayor Pearson said that if you teke off the part that says they are going to get a'deferment for ren4 limitation you are saying without this incentive they be able to get a deferment and raise the rents as far as they want. The idea is to keep the low income rept and give the incentives' if they agree to keep the rents low. The rents will go up without that requirement. Councilman Rosenbaum said he thought that what Council was .trying to do was to get people to maintain units in housing in that area. He would like to offer the incentive without the rent limitation. With rent limitation people are not ;likely to be interested. Walte'' Harrington asked if the motion applies to all of Fire Zone I. Mayor Comstock responded that the area under discussion was the core and noncore area. This will become the area that is not rezoned. Mix. Harrington said that if there is not a mandatory requirement, he thought it would be viable to have incentives in the entire Fire Zone I. Councilman Sher responded that in the areas which are rezoned, there will not be these assessments anyway. Mr. Harrington €aid that if some of these same incentives were available in the total Fire Zone 1, then perhaps the commercial use could be kept on the first floor and on the upper floors provide low/moderate income housing, he amendment passed on the following vote: AYES: Beahrs, Berwald, Clay, Norton, Rosenbaum, Sher NOES: Comstock, Henderson, Pearson 0 3 1 1/7/74 Vice Mayor Pearson commented that that means the Planning Commission can look at this subject with or without the rent limitation. They can decide whether or not it should have a rent limitation. The motion, as amended, passed on the following vote: AYES: Beahrs, Berwald, Clay, Henderson, Norton, Pearson, Rosenbaum, Sher NOES: Comstock MOTION: Mayor Comstock moved, seconded by Pearson, that the following, recommendation of the Policy and Procedures Committee be referred to the Planting Commission: In the core area, eliminate all restrictions on demolition, redevelopment and commercial, rehabilitation, etc., on Type V structures. The motion passed on a unanimous vote. MOTION: Mayor Comstock moved, seconded by Pearson, that the following recommendation of the Policy and Procedures Committee be referred to the -Planning Commission: Provide deferment of any future parking, beautification, or other assessment on rehabilitated residential Type V structures which include rent limitation. AMENDMENT: Councilman Rosenbaum moved, seconded by Berwald, to delete the words "which include rent limitation." The amendment passed on the following vote: AYES: Beahrs, Berwald, Clay, Norton, Rosenbaum, Sher "NOES: Comstock, Henderson, Pearson The motion, as emended, passed on the following vote: AYES: Berwald, Clay, Henderson, Norton, Pearson, Rosenbaum, Sher NOES: Beahrs, Comstock MOTION: Mayor Comstock moved, seconded by Pearson, that the following recommendation of the Policy and Procedures Committee be referred to the Planning Commission: That staff be directed to draft the ordinances which would repeal the rehabilitation restrictions on Type V structures throughout downtown Fire Lore I. The notion pressed on a unanimous vote. Mayor Comstock toted that agenda item 9d involving szpproval os the concept of elimination of the use permit for hbusaing in the downtown C-2, C-3, and M-1 zones had been handled under agenda item 6 and that no further action was required. 0 3 ..2 1/7/74 MOTION: Mayor Comstock moved, seconded by Pearson, that the Housing Corporation be requested co develop a proposal which would involve the Housing Corporation in the acquisition, rehabilitation, rental and sale of Type V structures. Councilman Berwald said that he questioned the wisdom of this recommendation. He thinks that the Husing Corporation as presently constituted does not have the continuity or organization to enable them to be involved. He sad he would vote against the motion, and he also opposes the concept of the upcoming agenda item regarding relocation assistance. Vice Mayor Pearson stated.that the Hotesing Corporation would grant this opportunity. They have expressed that desire. They were nervous, but they wanted to try it. Councilman Clay asked if the Housing Corporation were not to c mie up with a proposal would not the city have to have a third party anyway. Mr. Grigoni responded negatively and said that the original concept was that the Housing Corporation might assist the city in rehabilitation in those cases in which the property owner did not rehabilitate. The city does not have to have a third party. Councilman Clay asked if the city can get involved in the acquisition of property to be used for low/moderate income housing. City Attorney Booth said that the city is not going to develop the property itself, the answer is yes. There has been a court 'affirmation of that ruling. Councilman Sher wondered when there would be occasion for the city et- the Housing Corporation to get involved in this' activity. Mr. Grigsni said that it would be in the case where the property owner alight not want to rehabilitate. It could work in the voluntary program as well. The Housing Corporation could be an -available buyer if the property owner wanted to sell. The motion passed on the following vote: AYES: Clay, Comstock, Henderson, Pearson, Rosenbaum, Sher NOtS : Beahrs, Berwald, Norton MOTION: Mayor Comstock moved, seconded by Pearson, that st ff be directed to develop guidelines far various programs which would require relocation assistance on demolitions and rehabili- tations of Type V structures for review by the Finance and Public Works Committee for recommendation to Council, relocation - assi?tance to be provided by the developer or other entity causing the demolition. 0 3 3 1/7/14 The motion passed on the following vote: AYES: Clay, Comstock, Henderson, Pearson, Rosenbaum, Sher NOES: Beahrs, Berwald, Norton MOTION: Mayor Comstock moved, seconded by Pearson, that a committee of staff be established as proposed in the transmittal letter to develop a rehabilitation program and financial plan based on the proposal submitted in the Fire Zone I report, and that they consider including ` but not .limited to, use of the Landbank Program as a funding source; explore revenue - bond financing and bond sales to private banks; that they consider 32 loans, and the use of Section 23 to assist residents of the Downtown Fire Zone in rental payments, and that the t Finance and Public Work Committee review the total financial program as developed by this committee and rake a recommendation to Council. Bob Boudrias, 478 East Charleston Road, stated that in Palo Alto there are. 408 housing units which lack some or all plumbing facilities. Approximately half of these are in Fire Zone I. It seems that Palo Alto has a substandard housing problem severe enough to constitute a hazard to public Lealth. One group the report neglects is the rest of the city. The ideas are too valuable to be confined to Fire Zone I. He suggested Council institute an intensive campaign to acquaint Palo Alto citizens with the facts of substandard housing in the community and acquaint them with the difference between a housing code and a building code. AMENDMENT: Councilman Beahrs moved, seconded by Rosenbaum, that a provision be added that the city guarantee private loans and if necessary subsidize all interest costs between three percent and the then -existing market on interest costs. Councilman Berwald counted that there is nothing in the recommendations that covers a general bond election, and he certainly would like to look forward to that at some future time. He said be would vote against this because if we can e' free up so of the stiflin - restriction that have existed in this town and enforce the code standards, the vast majority of people can afford to rehabilitate their homes. Those who cannot will be determined more quickly if the city waits for a period of time afte4 the restrictions have been listed. The amendment passed on a unanimous rote. The motion as amended passed on the following vote: AYES: Beahrs, Clay, Comstock, Henderson, Pearson, Rosen- baum, Sher NOES: Berwald, Norton City Manager Sipe]. commented that in conjunction with the subject of rehabilitation, the staff report suggested Council Drake a basic policy statement relating to its support for a rehabilitation assistance programs in firms Zone I. O3A 117/14 MOTION: Mayor Comstock moved, seconded by Henderson, that Council affirm that it is the policy of tie City Council to support the rehabilitation assistance program for Fire Zone I. The motion passed on the following vote: AYES: Beahrs, Serwald, Comstock, Henderson, Pearson, Rosenbaum, Sher NOES: Clay, Norton Consideration of Mandato Versus o ants tat on n re ,ne COONISIENINW MOTION: Mayor Comstock moved, seconded by Pearson, that the rehabilitation program as outlined in the Downtown Fire Zone I Study report be a mandatory one rather than voluntary; and that there be built into the mandatory rehabilitation program adequate protection of the owner -occupants of small pieces of property fro overzealous implementation. Councilman Sher stated that because this tatter requires some discussion, he thought it should be considered at the next meeting of the Council. MOTION TO CONTINUE: Councilman Sher moved, seconded by Beahrs, that the subject of mandatory versus voluntary rehabilitation in Fire Zorte I be continued to January 14, 1974. The motion to continue passed on the following vote: AYES: Beahrs, Bervald, Norton, Rosenbaum, Sher NOES: Clay, Comstock, Henderson, , Pearson Ordinance Amendin Ordinance No. 2750 to um Mayor Comstock introduced the following ordinance and moved, seconded by Pearson, its approval for first reeding: "ORDINANCE OF rim COUNCIL OF THE CITY OF PALO ALTO SING ORDINANCE NO. 2750 TO EXTEND THE MORATORIUM DIPOSED THEREBY FOR AN ADDITIONAL PERIOD OF 60 DAYS UPON T#IE SAME TERMS AND CONDITIONS' (continued from 12/17/73) MOTION TO CLOSE AE ATE: Councilman Beahrs moved, duly seconded, to close debate. The motion failed on thefollowing vote: AYES: Beahrs, Clay, Norton NOES: Bervsld, Comstock, Henderson, Pearson, Rosenbaum, Sher 03? 1/7/74 Councilman Sher commented that this is the moment that Council has been waiting for. He hoped Council could adopt an approach to this problem that is what he would characterize as nonpoliti- cal. He had suggested earlier in the meeting that the extension of the moratorivm should be considered at the end of the evening in order that Council could see what should be accomplished during that period. The new zone is being considered; the 'Planning Commission is having its hearing. It will be back to Council by March 11 with a possible second reading of any rezoning by March 25. Now that Council has created the zone, he would hope that they would make a unanimous effort to extend the moratorium for sixty days. AMENDMENT: Councilman Sher moved, seconded by Berwald, to amend the motion to extend the moratorium sixty days. Councilman Berwald commented that he is in somewhat of a quandary. His intellect tells him to go against any future moratorium because as he has said on many occasions he is opposed to it. His sense of honor tells him to vote for it. He said that he would vote for it: tonight for the last time. Council was told by staff last time that the moratorium expired on January 22 and sixty days would have. been March 22. He did not know how they got from January 22 to March. He is going to vote for this for only one reason, that he :jade a commitment at one of the previous meetings to do so. Mr. Harrington asked if Council really recognized the opportunities there were for cooperation with property owners. Apparently, Council does not. The passage of the ordinance with the twenty percent with the specter of what it will do economically for downtown displeases him. It demonstrates the inability of this Council and staff to go the extra mile and take the challenge that has been handed by several people. He expressed disappointment at the way thibgs are done in Palo Alto and that Council expects that evekything has' to be mandatory. Councilman Clay asked staff what the effect would be of changing from eighty tp sixty days. City Manager Sipel responded that the deadlines can still be 'met, but it cuts out any flexibility in Mining that staff had tried toibuild in in the event any of the steps were missed. everything will have to happen in accordance with the schedule which was given:to Council in Decemirr. There is absolutely no flexibility in the time schedule which the extra twenty days would have provided. Councilman fosanbaua referred to the noncore area. He said that Council 11 in a pcsitlion to take some action with respect to the areas to be rezoned. The remaining area of concern is the noncore area. There were some suggestions made to 'staff by the committee. He asked if staff could go over what their anticipated response is. Are we likely in the time given to be amble to cove up, with anything in that noncore area except doing nothing? Q3 1/7/74 Mr. Grigoni said that staff had not contemplated being sure of finishing action in the noncore area before the expiration of the moratorium even wilh the extension. The difficulty of trying to -estimate when staff might have some suggestions for action there is due to the fact that we really are considering some entirely new issues. Staff needs to get input from the Planning Commission an those issues before it can begin staff work that might result. Councilman Rosenbaum stated that he was not willing to reduce the extension to sixty days. The amendment passed on the following vote: AYES: BeTwald, Comstock; Henderson, Norton, Sher NOES: Beahrs, Clay, Pearson,Rosenbaum The ordinance, as amended, was approved for first reading on the following vote: AYES: Berwald, Comstock, Henderson, Pearson, Rosenbaum, Sher NOES: Beahrs, Clay, Norton Mayor Comstock stated that the fact that it is 1:00 a.m. is because Council had a big job to do this evening. The public participation was extensive. Considering the number of years Council has been talking about this problem, they really did accomplish a great deal. He said he was not disappointed. He was quite eager and anxious to aee where this takes us. Council has been dissatisfied with the status quo that existed in .?ire Zone 1 for many years. He thanked everyone for staying so long and for working this hard, Executive Session Council adjourned to executive session from 1:05 to 1:06 a.m. discuss personnel matters. Je Ann Walker Appointed to PACDAB Mayor Comstock announced that during executive session Council had approved the appointment of Jerry Ann Walker, M.D., ea a nonresident member of PACOAB. t0 The meeting and journad at 1:07 a.m. ATTEST: (1 Mayor APPROVE : at) C;LA-K 037 1/7/74 0 3 8