HomeMy WebLinkAbout1999-09-27 City Council (5)TO:
FROM:
City of Palo Alto
City Manager’s Report
HONORABLE CITY COUNCIL /
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
SEPTEMBER 27, 1999 CMR: 367:99
AMENDMENT #4 TO OPTION AGREEMENT BETWEEN THE
CITY OF PALO ALTO AND COMMUNITY SKATING, INC. AND
BUDGET AMENDMENT ORDINANCE NOT TO EXCEED $50,000
AS CITY CONTRIBUTION TO COST OF SOUND WALL FOR
TENNIS FACILITY AT 3005 MIDDLEFIELD ROAD
RECOMMENDATION
Staff recommends the Council approve the attached: 1) Budget Amendment Ordinance
(BAO) to appropriate $50,000 for the City’s contribution to the cost of a sound wall for
the tennis facility at 3005 Middlefield Road; and 2) the related Amendment #4 to the
Option Agreement between the City of Palo Alto and Community Skating, Inc. The
City’s actual expenditure will be one half the cost of the sound wall, not to exceed
$50,000.
BACKGROUND
On May 1, 1995, Council granted an option to lease to Community Skating, Inc. (CSI)
for the development and operation of a tennis facility at 3005 Middlefield Road. On
August 15, 1996, the Zoning Administrator approved a conditional use permit for the
project, which was then appealed by three neighbors of the site. The three appeals were
heard by the Planning Commission on November 13, 1996, after which several additional
acoustical analyses were prepared for the project. The appeals were then heard by the
City Council on September 15 and December 1, 1997, at which time staff was directed to
revise the mitigated negative declaration to reflect the noise mitigations presented in the
acousticai analyses and to assess any environmental impacts that could result from the
height and location of the sound walls. On October 13, 1998, Council approved the
revised mitigated negative declaration and the conditional use permit for the project;
denied the three appeals; and directed staff to return with a BAO not to exceed $50,000 to
pay up to one half of the cost to construct the sound walls. Following Council’s October
1998 approval, neighbors of the project filed three lawsuits challenging the approval, and
the project has since been on hold. One lawsuit has now been settled, the other two
dismissed, and the project can proceed.
CMR: 367:99 Page 1 of 3
DISCUSSION
The conditional use permit approved by Council requires that CSI construct a 10-foot
high, air-tight, acoustical sound wall along the western edge of the site, adjacent to the
tennis courts and Matadero Creek (commonly known as the northern property line, but
referred to as the western property line in all previous discussions of this project) and
along the shared property line with Price Court (commonly known as the western
property line, but referred to-as the northern property line in all previous references to this
project). The sound wall is to consist of masonry or concrete panels or concrete block.
Preliminary estimates of the cost of the sound wall range from $50,000 to $100,000.
Following Council approval of the attached BAO and Amendment, and CSI’s submission
of appropriate documentation of actual costs, staff will process a reimbursement to CSI
for up to one half the cost, not to exceed $50,000.
RESOURCE IMPACT
The attached BAO requests approval for an appropriation of $50,000 from the General
Fund Budget Stabilization Reserve. This appropriation is a one-time expense and there
are no future year resource needs anticipated as a result of this BAO. Attachment B
summarizes the BAO’s approved to date in 1999-00 that impact the General Fund Budget
Stabilization Reserve. This attachment also estimates future year ongoing costs
associated with BAO’s approved to date to provide a projection for the future resource
needs from the General Fund for those programs approved after the adoption of the 1999-
00 Budget.
POLICY IMPLICATIONS
The recommendation is consistent with Council direction given on October 13, 1998.
ENVIRONMENTAL REVIEW
A mitigated Negative Declaration for the project was approved by Council on October
13, 1998. No further environmental review for the project is necessary under the
requirements of the California Environmental Quality Act (CEQA).
ATTACHMENTS
Attachment A:
Attachment B:
Attachment C:
PREPARED BY:
Budget Amendment Ordinance
Budget Amendment Ordinances Impacting General Fund Reserves
Approved To Date in 1999-00
Amendment #4 to Option Agreement
Janet Freeland, Senior Financial Analyst
CMR: 367:99 Page 2 of 3
DEPARTMENT HEAD APPROVAL:
CITY MANAGER APPROVAL:
/ City Manager
cc: Community Skating, Inc.
CMR: 367:99 Page 3 of 3
ATTACHMENT A
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 1999-00 TO
PROVIDE AN ADDITIONAL APPROPRIATION OF $50,000 FOR THE
CITY’S CONTRIBUTION TO THE COST OF A SOUND WALL FOR
THE TENNIS FACILITY AT 3005 MIDDLEFIELD ROAD
WHEREAS, pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on June 28,
1999 did adopt a budget for fiscal year 1999-00; and
WHEREAS, on May i, 1995, Council granted an option to lease to
Community Skating, Inc. (CSI) for the development and operation of
a tennis facility at 3005 Middlefield Road; and
WHEREAS, On August 15, 1996, the Zoning Administrator approved
a conditional use permit for the project, which was appealed by
three neighbors of the site; ana
WHEREAS, the City Council directed staff to revise the
Mitigated Negative Declaration to reflect the noise mitigations
presented in the acoustical analyses and to assess any environmental
impacts that could result from the height and location of the sound
walls; and
WHEREAS, On October 13, 1998, Council approved t.he revised
mitigated negative declaration and the conditional use permit for
the project; and
WHEREAS, neighbors of the project filed three lawsuits
challenging the approval, and the project has since been on hold;
and
WHEREAS, one lawsuit has now been settled, the other two
dismissed, and the project can now proceed; and
WHEREAS, the Council has agreed to City payment for one half
the cost of the sound wall, in an amount not to exceed $50,000; and
WHEREAS, City Council authorization is needed to amend the
1999-00 budget to make an additional appropriation of $50,000 as
hereinafter set forth; and
WHEREAS, the additional appropriation of funds from the
General Fund Budget Stabilization Reserve is a one-time cost and no
future year General Fund ongoing costs are anticipated from the
construction of this Sound Wall.
NOW, THEREFORE, the Counci! of [he City of Palo Alto does
ORDAIN as follows:
SECTION i. The sum of Fifty Thousand Dollars ($50,000)) is
hereby appropriated to non-salary expenses in the Property
Management Functional Area in the Administrative Services
Department, and the Budget Stabilization Reserve is correspondingly
reduced.
SECTION 2. This transaction will reduce the
Stabilization Reserve from $19,443,339 to $19,393,339.
Budget
SECTION 3. As specified in Section 2.28.080(a) of the Palo
Alto Municipal Code, a two-thirds vote of the City Council is
required to adopt this ordinance.
SECTION 4. A mitigated Negative Declaration for the project
was approved by Council on October 13, 1998. No further
environmental review for the project is necessary under the
requirements of the California Environmental Quality Act (CEQA).
SECTION 5. As provided in Section 2.04.350 of the Palo Alto
Municipal Code, this ordinance shall become effective upon adoption.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:City Manager
Senior Asst. City Attorney Director
Services
of Administrative
S : \ASD \ BUDGET \ 9 8 9 9 BU- 1 \ 9 9 BAO- 1 \WORDPERF \ SOUNDW. WPD
Attachment B
Budget Amendment Ordinances Impacting General Fund Reserves Approved To Date in 1999-00
Net Cost "Revenue
Already in the Impact on the1999~00 Adopted General Fund
~ ~ BSR
~ Future Year
Ongoing C~ts
Estimated Beginning Budget Stabilization Reserve (BSR)
Balance $18,877,888
Adopted Budget Addition to BSR $1.214,000
Downtown Urban Design Improvements, CIP 19608
Downtown Parking Structure Feasibility Study, CIP 19530
Sala_rT and Benefit Increases Retroactive to July 1, 1999 for
Management and Confidential Employees
City Manager Executive Recruitment
Friends of the Palo Alto Library Grant
Arts Council of Santa Clara County Grant
Palo Alto Art Center Foundation Donation
Historic Preservation Officer
Cost of Sound Wall for Tennis Facility at 3005 Middlefield
($120,349)
($70,000)
(S432,200)
($26,000)
($58,000)
($5,407)
($10,000)
($71,883)
(S50,000)
$58,000
S5,407
$10,000
($120,349)
($70,000)
(S432,200)
($26,000)
$0
$0
$0
$0
($50,000)
($432,200)
($95.839)
Total BAOs ($843,839)$73,407 $0 ($698,549)($528,039)
BSR Balance After BAO’s $19,393,339
ATTACHMENT C
AMENDMENT NO. 4
TO OPTION AGREEMENT BETWEEN
CITY OF PALO ALTO AND COMMUNITY SKATING, INC.
This Amendment No. 4 to the Option Agreement Between the City of Palo Alto
and Community Skating Inc., dated June 20, 1995 (hereinafter referred to as the "Option"), is
made and entered into this __ day of ,1999, by and between the CITY OF PALO
ALTO, a California municipal corporation of the State of California, hereinafter referred to as
"CITY," and COMMUNITY SKATING, INC., a California non-profit corporation, hereinafter
referred to as "CSI";
RECITALS
WHEREAS, the Option provides for an exclusive option to lease the property located at
3005 Middlefield Road, Palo Alto, hereinafter referred to as the "Premises," for the purpose of
constructing improvements and operating a recreational tennis facility, hereinafter referred to as
the "Project," as described in the Option and the lease attached thereto as Exhibit I, hereinafter
referred to as the "Lease;" and
WHEREAS, Amendment No. 1 to the Option, dated May 15, 1997, extended the option
term an additional nine (9) months to March 20, 1998; and
WHEREAS, Amendment No. 2 to the Option, dated March 20, 1998, extended the option
term an additional nine months until December 20, 1998; and
WHEREAS, Amendment No. 3 to the Option, dated April 4, 1999 extended the option
term to one hundred and eighty (180) days after the date of final disposition of the following
three pending cases: Middlefield Road Homeowners Assoc. v. City. of Palo Alto, et al., SCC
Sup’r Ct. No. CV 778008; Wei Wang, et al. v. City. of Pa!Q.. Alto. et al., SCC Sup’r Ct. No. CV
778019; and Natalie Fisher. et al. v. City. of Palo Alto. et al., SCC Sup’r. Ct. No. CV 777977; and
WHERAS, on October 13, 1998, Council approved a mitigated negative declaration and
conditional use permit for the Project, which included the requirement for a 10-foot high sound
wall to mitigate impacts on private property adjacent to the Premises; and
WHEREAS, concurrently herewith, Council approved a Budget Amendment Ordinance
to appropriate $50,000 for the city’s contribution to the cost of a sound wall, with the City’s
actual expenditure to be one-half the cost of the sound wall, not to exceed $50,000; and
NOW, THEREFORE, in consideration of their mutual covenants, the parties hereto agree as
follows:
SECTION 1 The following paragraph D shall be added to the Lease under Section XIV
(CONSTRUCTION AND/OR ALTERATION BY TENANT):
"D. CITY Contribution for Cost of Sound Wall. The master plan approved for
development of the PREMISES includes a 10-foot high, air-tight, acoustical sound wall along the
northerly and westerly property lines of the PREMISES, which shall consist of masonry, or
concrete panels or concrete block. Following construction of the wall by TENANT, CITY
agrees to reimburse TENANT for one half the cost of the sound wall, not to exceed $50,000,
provided TENANT has furnished the Manager of Real Property with the following: 1)
appropriate documentation of actual construction costs; and 2) evidence of final inspection of
the sound wall by the Chief Building Official."
SECTION 2. Except as herein modified, all other provisions of and exhibits to the
Option shall remain in full force and effect.
2
IN WITNESS WHEREOF, the parties hereto have executed this Amendment the day and
year first above written.
CITY OF PALO ALTO COMMUNITY SKATING, INC.
City Manager
APPROVED AS TO FORM:
By:
Its:
Senior Assistant City Attorney
APPROVED:
Assistant City Manager
Director of Administrative Services
Director of Planning and
Community Environment
Manager, Real Property