HomeMy WebLinkAbout2004-09-20 City Council (4)City of Palo ARo
C ty Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE:SEPTEMBER 20, 2004 CMR: 418:04
SUBJECT:APPROVAL OF A BUDGET AMENDMENT ORDINANCE IN
THE AMOUNT OF $206,150 FOR INCREASED CONTRACT
COSTS FOR PREPARATION OF AN ENVIRONMENTAL
IMPACT REPORT AND LEGAL FEES ON THE
STANFORD/MAYFIELD DEVELOPMENT AGREEMENT
RECOMMENDATION
Staff recommends that the City council:
o
Approve and adopt the attached Budget Amendment Ordinance (BAO) to amend
the budget for fiscal year 2004-05 to a) add $166,150 to the Planning and
Community Environment Department for contract costs associated with the
preparation of an Environmental Impact Report (EIR) for the proposed
development of the Mayfield site and Stanford Research Park; and b) add $40,000
to the City Attorney Department for outside legal Services associated with the
proposed development of the Mayfield site and Stanford Research Park; and
Authorize the City Manager to execute contracts and/or contract amendments
without City Council approval up to a total of $166,150 related to environmental
impact studies for additional traffic analysis, peer review of a risk assessment for
the Mayfield site, evaluation of taller light poles on the Mayfield site and other
items outlined on Pages 2 and 3 for the development of the Mayfield site and legal
fees related to the proposed development of the Mayfield site and Stanford
Research Park.
CMR: 418:04 Page 1 of 5
BACKGROUND
On June 23, 2003, Council authorized the City Manager and City Attorney to negotiate a
development agreement for the Mayfield site (CMR333:03). The purpose of the
agreement is:
to allow the City to lease the former Mayfield School site from Stanford
University for 51 years;
develop two full-size playing fields, one practice field, parking and landscaping on
the six-acre site at the corner of E1 Camino Real and Page Mill Road;
allow construction of at least 250 housing units, including at least 50 Below
Market Rate units on two sites in the Stanford Research Park and along E1 Camino
Real;
allow relocation of 300,000 square feet. of Research & Development/Office uses
that would be demolished to accommodate the housing; and to evaluate the
environmental impacts of these actions, along with build-out of the Stanford
Research Park under existing Comprehensive Plan and zoning regulations.
Accordingly, The City and Stanford University entered into a reimbursement agreement
December 4, 2003 to address anticipated costs of an EIR required for the projects
contemplated under the proposed development agreement. The reimbursement agreement
obligates the City and Stanford to share costs of the EIR, with a maximum contribution
by Stanford of $200,000 specifically for:
[] Fees and expenses charged by consultants retained by the City for studies and
analysis prepared for or used in the EIR, including but not limited to the Citywide
Traffic Study;
[] Documented staff time and expense (including duplication costs) incurred in the
preparation or processing of the EIR;
[]Costs of any other materials or services provided by City or third parties for the
preparation or processing of the EIR.
DISCUSSION
On June 1, 2004 the City engaged EIP Associates (EIP) to prepare an environmental
impact report for the proposed actions in the development agreement. The full scope of
services is included in Attachment E. The total contract amount was $243,500. EIP
commenced work, and has billed the City $228,905 for work completed through July 23,
2004. Stanford has been billed per the reimbursement agreement, and has paid $124,441
as of July 27, 2004.
Staff anticipates work beyond the scope of services in the original contract with EIP.
After the contract commenced, the City and Stanford agreed to peer review of the risk
assessment of the Mayfield site and a phased approach to the EIR to address development
scenarios in 2005, 2010, and 2025. Peer review was not included in the original scope of
services, nor was a phased analysis of proposed development. The estimated cost of
these changes to the scope of work is $35,360.
CMR: 418:04 Page 2 of 5
As the project has evolved, environmental analysis beyond the original scope of work has
become necessary. Changes to the project scope include:
-Alternate site plans for the playing fields;
-An option at the E1 Camino Real housing site that includes retail space;
-Ingress/egress alternatives at the E1 Camino Real site;
-Consideration of maximum of 345 residential units instead of 250;
-Evaluation of 50 versus 70-foot light poles for the soccer complex
Selection of the Hillview site for 100,000 square feet of relocated development in
the Stanford Research Park.
The total additional cost related to additional environmental study of these items is
$60,890.
Unanticipated traffic analysis for the project was also required, due to development
phasing and timing. The original scope of work assumed the citywide traffic model
could be used for the traffic analysis. As the project evolved additional information
regarding traffic impacts as a result of phased development was required. Cost of traffic
studies beyond the original contract is $69,990, including a $15,000 contingency.
In summary, additional EIR contract costs are as follows:
$
$
35,360
60,890
69,900
166,150
243,500
409,650
Peer review for the risk assessment and phased
development scenarios;
Changes in project scope and alternatives
Traffic analysis (includes $15,000 contingency)
Subtotal
Existing Contract
Total EIR Contract Cost
Additional Work - Legal’ Services
The City Attorney’s Office has been an integral part of the team working on this
proposed project. Resources include staff as well as contract legal expertise. The City
Attorney estimates additional contract legal services in the amount of $40,000 in the
existing fiscal year will be required through presentation of the draft and final EIR to the
community and Council.
Economic Analysis
An analysis of the economic impact of proposed development .and!or phases may be
required for Council prior to making final decision on the Mayfield site. Funding for
such an analysis is not included in the current EIR contract nor additional work described
herein. Staff will return to Council if funding for an economic analysis is necessary.
CMR: 418:04 Page 3 of 5
Stanford Cost Sharing
The reimbursement agreement defines cost sharing for EIR costs: 50/50 up to a
maximum contribution by Stanford of $200,000. Per the terms of this agreement contract
costs would be shared between the City and Stanford as follows:
$
$
Costs
243,500
166,150
40,000
449,650
Existing EIR Contract
Additional work - EIR contract .........
Additional work - Legal Services ..............
Total Contract Costs, EIR & Legal Services ........
Reimbursement
200,000 Stanford Reimbursement
249,650 City Expense
449,650 Total Contract Costs, EIR & Legal Services
RESOURCE IMPACT
¯ The attached BAO requests an appropriation in the amount of $206,150 from the General
Fund Budget Stabilization Reserve. Drawing upon the Budget Stabilization Reserve will
result in a negative General Fund balance at year-end as it represents a use of reserve
funds.
The original contract totaling $243,500 is included in the 2004-05 budget. This amount
consists of $43,500 in the Planning and Community Environment operating budget and
$200,000 in a development account set up to accommodate payments from Stanford per
the reimbursement agreement cited above.
Adding $166,150 to the Planning and Community Environment Department operating
budget will provide funding for the unreimbursed portion of the EIR. Adding $40,000 to
the City Attorney Office operating budget will provide funding for additional legal
services fees associated with the EIR.
PREPARED BY:~,~’~"
D
DEPARTMENT HEAD ~hi~f P~~f~ficial
APPROVAL:/S~EVE EMSLIE/Director of Planning and Community Environment
CITY MANAGER APPROVAL: .
EMIL’~’~RRISON
Assistan~ City Manager
CMR: 418:04 Page 4 of 5
ATTACHMENTS
A.Budget Amendment Ordinance
B.Budget Amendment Ordinances Impacting General Fund Reserves Approved-
To-Date in 2004-05
C.Recommendation from Stanford Liaison Committee... (CMR 333:03)
D.Reimbursement Agreement
E.EIP Scope of Work, Palo Alto/Stanford Development Agreement EIR
CC:
CMR: 418:04 Page 5 of 5
Attachment A
ORDINANCE NO.
ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO
AMENDING THE BUDGET FOR THE FISCAL YEAR 2004-05TO
PROVIDE AN ADDITIONAL APPROPRIATION OF $206,150FOR
ANTICIPATED INCREASED CONTRACT COSTS FOR PREPARATIONOF
AN ENVIRONMENTAL IMPACT REPORT (EIR)ON THE
STANFORD/MAYFIELD DEVELOPMENT AGREEMENT ANDASSOCIATED
LEGAL SERVICES
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION I. The Council of the City of Palo Alto finds and
determines as follows:
A. Pursuant to the provisions of Section 12 of Article
III of the Charter of the City of Palo Alto, the Council on
June 28, 2004 did adopt a budget for fiscal year 2004-05; and
B. The City Council, on June 23, 2003, authorized the
City Manager and City Attorney to negotiate a development
agreement with Leland Stanford Junior University (Stanford)
with respect to the proposed development of the Mayfield site
and Stanford Research Park; and
C. The City and Stanford entered into a reimbursement
agreement December 4, 2003 to address anticipated costs of an
Environmental Impact Report (EIR) required in connection with
the development contemplated by the proposed development
agreement; and
D. The reimbursement agreement obligates the City and
Stanford to share equally the costs of the EIR, up to a
maximum contribution by Stanford of $200,000; and
E. The City contracted with EIP Associates to prepare
the EIR for the actions proposed in the development agreement
in the amount of $243,500. Additional environmental services
beyond the scope services in the contract with EIP are
anticipated to be required in this fiscal year in the amount
of $166,150. Additional outside legal services in this fiscal
year are also anticipated in connection with the developmental
agreement and preparation and review of the EIR in the amount
of $40,000; and
F. City Council authorization is needed to amend the
2004-05 budget to make available the funds required for
environmental and legal services in connection with the
development of the Mayfield site and Stanford Research Park as
hereinafter set forth.
SECTION 2. The sum of One Hundred Sixty-Six Thousand One
Hundred Fifty Dollars ($166,150) is hereby appropriated to the
Planning and Community Environment, Planning Division
Operating Budget and the General Fund Budget Stabilization
Reserve is correspondingly reduced.
SECTION 3. The sum of Forty Thousand Dollars ($40,000) is
hereby appropriated to the City Attorney Department, Operating
Department Support Budget and the General Fund Budget
Stabilization Reserve is correspondingly reduced.
SECTION 4. This transaction will reduce the General Fund
Budget Stabilization Reserve from $21,331,000 to $21,124,850.
SECTION 5. 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 6. 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 of
Environment
Planning and
Director of
Services
Administrative
Attachment B
Budget Amendment Ordinances Impacting General Fund Reserves Approved-To-Date in 2004-05
Balance
Mayfield EIR BAO
BSR Balance After BAO’s
$21,331,000
(’$206,150)
l sz1,lz4,85o I
Attachment C
City of Palo Alto
City Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT:
16
CITY MANAGER’S
OFFICE
DATE:June 23, 2003 CMR:333:03
SUBJECT:RECOMMENDATION FROM STANFORD LIAISON COMMITTEE
FOR COUNCIL TO AUTHORIZE THE CITY MANAGER AND
CITY ATTORNEY TO NEGOTIATE A DEVELOPMENT
AGREEMENT WITH STANFORD UNIVERSITY BASED UPON
OFFER LETTER REGARDING MAYFIELD SITE
RECOMMENDATION
The Council’s Stanford Liaison Committee recommends that the City Council authorize
the City Manager and City Attorney to negotiate a Development Agreement for the.
Mayfield site based on Stanford’s offer letter dated June 10, 2003.
BACKGROUND
Based on City Council direction in 2000, the City Manager and City Attorney negotiated
a 4-Party Memorandum of Understanding (MOU) to allow the Palo Alto Unified School
District (PAUSD) to reclaim Terman Community Center as a third middle school and
relocate the Jewish Community Center (JCC), As part of these discussions, Stanford
University offered the 6-acre May-field site as a permanent location for the Jewish
Community Center. The City would get a 51-year lease for $1 per year and then lease the
Mayfield site to the JCC for a community center. In exchange, the City would grant
Stanford the vested right to build up to 130,000 square feet of commercial development
in the Research Park, plus provide an incentive for Stanford to add housing in the
Research Park.
Subsequent to the Council approving the MOU (which included the draft Development
Agreement with Stanford), the JCC decided to purchase the Sun Microsystems site as a
permanent location. Consequently, on December 3, 2001, the Council received public
input and conducted a discussion on whether to continue its pursuit of the May-field site
CMR:333:03 Page 1 of 5
and for what uses. Most residents and all but one Council Member desired to continue
efforts to secure the Mayfield site for community uses, such as athletic fields and
community service facilities. In addition, Council Members and residents expressed
ongoing interest in developing housing for the Research Park,
Based on this Council discussion, the Council’s Stanford Liaison Committee continued to
explore the possibility of Stanford helping the Palo Alto community address the athletic
fields problem. In the midst of these discussions, the City’s Athletic Fields Committee
finalized its short- and mid-term recommendations to create more fields and better use
existing fields. The City Council endorsed the Athletic Fields Report on January 21,
2003, and incorporated the need to add and enhance athletic field space within the
existing Top 5 Priorities for the Council. A key opportunity identified in the report was
the use of the Mayfield site as an athletic fields complex.
A staff team led by the City Manager continued to explore with Stanf0rd the use of the
Mayfield site for athletic fields as well as two other longer-term issues - housing in the
Research Park and traffic mitigation generated by future development. After consultation
with the Stanford Liaison Committee, Stanford made a formal offer of the Mayt]eld site
on June 12, 2003.
DISCUSSION
The offer
o
o
letter (see attached) includes the following provisions:
Stanford leases the 6-acre Mayfield site to the City for 51 years for $1/year for
an athletic fields complex.
Stanford builds the complex, which will be jointly designed by the Stanford
Athletic Department and the City’s Community Services Department, The
complex will include two lighted, competition-size soccer fields plus one
practice soccer field; a restroom/storage facility; and parking and landscaping.
Once constructed, the complex will be turned over to the City to operate and
maintain.
In exchange, Stanford will receive a vested right to build 100,000 square feet
of commercial development in the South Research Park (see attached map).
To address the City’s housing concerns, Stanford agrees to.build (once existing
leases begin to expire in 2012), 250 housing units, including approximately 50
below-market-rate units, on E1 Camino Real and upper California Avenue (see
attached map).
CMR:333:03 Page 2 of 5
o Stanford receives the right to re-build a maximum of 200,000 square feet out of
a total 312,000 square feet of current commercial development displaced by
the new housing.
Stanford agrees to collaborate with the City in developing a traffic mitigation
program for future development in the Research Park with the goal of reducing
the use of single occupancy vehicles as the transportation mode of choice for
the new development.
RESOURCE IMPACT
Stanford will fund and build the athletic complex at no expense to the City. The City will
be responsible for maintaining and operating the athletic fields. If the City decides to
install synthetic turf on one or more fields, it would be at the City’s expense. Staff
estimates this cost as $600,000. The City is currently funding the Citywide traffic study
that would be one of the key elements of the scope of work for the Supplemental
Environmental Impact Report (SEIR).. Stanford agrees to pay 50 percent of the cost of
the SEIR, up to a maximum of $200,000.
POLICY IMPLICATIONS
Top 5 Priorities: Athletic Fields and Housing
In respect to the use of the Mayfield site for athletic fields, the proposed agreement with
Stanford responds to the Athletic Fields Report endorsed by the City Council. By action
of the Council in 2003, athletic fields were incorporated into the Council’s Top 5
Priorities.
The guarantee of 250 new units (including an estimated 50 BMR units) responds to the
City’s Housing Element goals as well as one of the Council’s Top 5 Priorities. Although
the site is listed on the Housing Element Appendix F Additional Potential Longer Term
Housing Sites list, it is not on the Housing Sites Inventory. Since there is no new net
commercial develo, pment over time as a result of this proposed agreement, the 250 units
will help alleviate the jobs/housing imbalance created by the Research Park.
Top 5 Priority: Traffic and Transportation .......
A Master Schematic Design Plan for the E1 Camino Real corridor is currently being
developed, which has among its goals the beautification of the corridor, the installation of
bike lanes and the general calming of traffic. The conversion of the Mayfield site to
playing fields is compatible with those goals. A proposed reduced pedestrian crossing
distance of E1 Camino Real at California Avenue will provide a safe means of accessing
CMR:333:03 Page 3 of 5
the Mayfield site from the California Avenue business district and the Caltrain station.
The bike lanes will provide a convenient way to access the site, resulting in fewer
vehicles trips. Additionally, the recent installation of red light enforcement indicators at
the E1 Camino Real/Page Mill intersection is intended to facilitate the Police Department
in citing red light-running vehicles, increasing the safety of the intersection for all modes
of transportation and thus promoting safe access to the fields. The City will continue to
encourage the use of alternate modes of transportation to the site through the
implementation of the Bicycle Master Plan, VTA’s Bus Rapid Corridor, and other
avenues in order to minimize vehicular impacts resulting from the development ..................
The use of the Mayfield site as playing fields will be unlikely to significantly increase
vehicle congestion in the area. While peak hour levels of service at the E1 Camino
Real/Page Mill intersection are in the E/E+ range, use of the park will occur mostly
during off-peak and weekend times and so should have little effect on peak-hour traffic.
Comprehensive Plan
policy L-7: Evaluate changes inland use in the context of regional needs, overall City
welfare and obiectives, as well as the desires of surrounding neighborhoods.
Consistency: Agreement with Stanford was developed precisely to address community
concerns/objectives for additional recreational space yet provide ant!cipated housing that
would have been allowed on the site.
Policy H-5: Discourage the conversion of lands designated as residential to non
residential uses and the use of multiple family residential lands by non-residential uses,
such as schools and churches, unless there is no net loss of housin~ potential on a
community-wide basis.
Program H-20:As part of the Zoning Ordinance Update process, change the Zoning Code
to disallow uses other than. residential uses in a multiple.family residential zone unless
the project can demonstrate an overriding benefit to the public or the project results in not
net planned or existing housing loss. Plannin~ CommisSion and City Council approval
would be required in such instances.
Consistency: Although the Mayfield site is planned and zoned to allow up to 240 units of
housing, use of the site for playfields would be consistent with this policy since the
Agreement calls for the offsetting provision of 250 units of housing on other sites.
Policy C-27: Seek opportunities to develop new parks and recreation facilities to meet
the growing needs of residents and employees of Palo Alto.
Consistency: The Agreement provides recreation facilities for Palo Alto residents,
CMR:333:03 Page 4 of 5
~ C-30: Facilitate access to .parks and cornmunitw facilities by a varie_ty o~f
transportation modes.
Consistency: The site is located on a transit corridor centrally located in the City with
good access to transit, bicycle routes and proximity to residential neighborhoods.
Policy C-30iProm:am B-18: Evaluate the location near the northwest comer of Page Mill
Road and E1 Camino Real for a hotel and conference facility.
Use Of the property for a hotel!conference facility has not been further evaluated since
completion of the Comp Plan. Use of the site for hotel/conference facility was
considered in the Comp Plan alternatives studies in the EIR and not included in the
adopted land use plan. In its discussion of options for the May-field site, the Council in
December 2001 did not favor a hotel/conference facility.
ENVIRON]VIENTAL REVIEW
The proposed agreement requires a Supplemental Environmental Impact Report.
ATTACH3fENTS:
Stanford Offer Letter
Diagram of Athletic Complex
Map of E1 Camino Real and Upper California Avenue
CITY MANAGER APPROVAL:
CMt~:333:03 Page 5 of 5