Loading...
HomeMy WebLinkAbout02/17/2000 • Minutes of a Regular Meeting February 17, 2000 Town of Los Altos Hills City Council Regular Meeting Thursday, February 17, 2000, 6:00 P.M. Council Chambers, 26379 Fremont Road 1. CALL TO ORDER, ROLL CALL, AND PLEDGE OF ALLEGIANCE Mayor Dauber called the Regular Meeting of the City Council to order at 6:00 p.m. in the Council Chambers at Town Hall. • Present: Mayor Dauber and Councilmembers Case Finn Y Y> > and Johnson Absent: None Staff: City Manager Mark Miller, City Attorney Sandy Sloan, Planning Director Curtis Williams,Public Works Manager Jim Rasp, and Secretary Ruth Swanson Press: Leslie Martin, Los Altos Town Crier 2. APPOINTMENTS AND PRESENTATIONS -None 3. PLANNING COMMISSION REPORT The Planning Director reported on the following applications discussed at the 2/09/00 Planning Commission meeting: (1)Lands of Humble, 14475 Liddicoat Circle: request for a site development permit and a conditional use permit for a new residence and variances to exceed the maximum development and floor areas,to allow parking within the front setback, and grading within ten feet of the front and side property lines - continued; (2) Lands of Thomas, 14576 DeBell Road: request for a conditional development permit and site development permit for a second story addition and February 17, 2000 1 Regular City Council Meeting • variance to exceed allowable floor area allowed- approved; (3) Lands of Wang, 27581 Samuel Lane: request for a site development permit for a new residence - approved; and (4) Lands of Abadi, 25099 La Loma Drive: request for a site development permit for a new residence and variance to exceed the maximum development area—continued. 4. CONSENT CALENDAR Items Removed: 4.1 Casey and Dauber) and 4.5 (Casey_ MOTION SECONDED AND CARRIED: Motion by Johnson, seconded by Finn and passed unanimously to approve the balance of the Consent Calendar items, specifically: 4.2 Approved Investment Report for the Quarter Ended 12/31/99 4.3 Approved Site Development Permit(Fast-Track) for a major addition,pool and spa at 27413 Natoma Road, Lands of McGraw 4.4 Approved Site Development Permit(Fast-Track) for a guest house at 26070 Fremont Road, Lands of Gile 4.6 Accepted Mid-Year Budget Report Items Removed: 4.1 Approval of Minutes—January 20, 2000 Dauber made a change to the minutes of January 20, 2000,page 2, under Unfinished Business. She added to the end of the motion"at 110 percent of the average offered available policies." Casey made a change to page 3, adding to the last sentence on the page, "...should be shared fairly for all residents,not just newcomers." Dauber referred to page 5 and noted that several motions were made but not seconded. She asked that those motions be included in the minutes, in particular"Moved by Dauber, failed for lack of second,to note on landscape plans if they do not meet the guidelines." Dauber referred to the statement in the second paragraph, "...Casey reiterated her belief that there were problems with the Town's fee structure," and asked that her response be included which was "Dauber stated that the Finance Committee studied the issue and found that increased earnings would most likely be used up by the increased expense of administration and that was in line with other cities found." Johnson noted the next sentence read, "Johnson believed the Town should..." He asked that"should" be changed to "might." Casey asked that the complete text be included that her belief that the fees charged people were not in compliance with state law. Dauber asked that the CitFebruary 17, 2000 2 Regular y Council Meeting • City Clerk review the tape for these changes. Dauber referred to page 7, item 7.3, and requested a sentence be added that"The City Council accepted the new appointment in place of Emily Chang." Dauber referred to page 8, item 9.1, "Dauber stated that if Council was going to start making such endorsements the issues should be more pertinent to the residents of the Town." and noted what she said was "we should begin by addressing issues that are pertinent to the residents of the Town." On page 9, Dauber noted under Amir Rosenbaum's statement, she thought the significant thing in his statement was he found his building's costs were less than the Town building report estimated. She also noted that item 12, Closed Session,was canceled. Casey disagreed with the statement on the top of page 9 which listed residents who "stated their support of building a new Town Hall." Dauber asked the listed residents to contact the City Clerk if they wanted that statement corrected. PASSED BY CONSENSUS: To continue the Minutes of January 20, 2000,to the next meeting. 4.1 Approval of Minutes—February 3, 2000 Adjourned Regular Meeting MOTION SECONDED AND CARRIED: Moved by Dauber, seconded by Johnson and passed unanimously to approve the minutes of the 2/3/00 Adjourned Regular City Council Meeting with the following corrections: page 2, add the following sentence to the motion: "It was further agreed that if additional funds were needed to rent or purchase • shade umbrellas and/or canopies,the committee should bring this request back to the Council for authorization."; and to add the following at the end of page 2: "PASSED BY CONSENSUS: Council agreed that the Community Relations Committee should not take on an additional survey." 4.1 Approval of Minutes—February 3, 2000 Regular City Council Meeting MOTION SECONDED AND CARRIED: Moved by Dauber, seconded by Johnson and passed unanimously to approve the minutes of the 2/3/00 Regular City Council Meeting with the following corrections: Page 1, Item 2.1 add the following sentence: "This item was continued to a future meeting."; Page 3, Item 7.1, add the following to the last sentence: "and the library was projecting that it would be operating at a deficit within two years.'; and on Page 4 add the following after the first paragraph: "Dauber requested that Mayor Pro Tem Finn's report be in writing in the packet so it could be reviewed before the meeting." 4.5 Lands of Spreen, 11970 Rhus Ridge Road: approved request for a Site Development Permit for a new residence and variance to exceed the maximum development area February 17, 2000 3 Regular City Council Meeting Casey said she did not see that the findings supported the variance and wanted it reviewed b Council at the next meeting. • Y g 5. UNFINISHED BUSINESS 5.1 Discussion of current topics under Finance Committee Review Frank Lloyd, Finance Committee, reported on the Finance Committee's meeting of 1/31/00 with Kay Chandler of Chandler Asset Management, Inc. The Chandler firm specializes in the management of fixed income portfolio of California cities, districts and other corporations. The Committee found her presentation favorable. With a portfolio realignment into longer maturity government securities and a movement into corporate securities, Kay Chandler thinks her firm could obtain a yield in today's market of 6.51 percent, compared to the 5.49 percent LAIF return. He noted that Chandler required a minimum investment of$5 million with fees totaling about$1500 per year. The Committee felt that$5 million was the most that should be invested in longer term assets. The Committee requested names of Chandler's clients as well as a history, and decided to interview another investment advisor before making a recommendation to Council. Ken Clifford, Finance Committee, said the Finance Committee asked Kay Chandler to pick an organization for whom she managed money and compared the return for that organization with LAIF returns. The difference varied, depending on the bond market, • with an overall gain of only 40 basis points over LAIR He said more work was necessary before making any decision. Finn proposed Council create an investment committee which would be separate from the Finance Committee. He noted that in the last year,the cash reserves ranged from$10 million to $11 million and the projections for the year 2000 showed the cash reserves would remain about the same. He was told by the City Manager that approximately$1 million would be spent this year of capital improvements reserves. He did not believe that the Finance Committee prioritized accurate,timely, detailed cash flow forecasts. He reported on the three things that should be looked at when investing: liquidity,what is available, and risk. He proposed, as an example, using J.C. Bradford,brokerage firm, and that the Town buy existing bonds that others want to sell. The bonds could be bought which had shorter life terms, and the yield on the bonds was slightly over 7 percent. He pointed out inherent problems dealing with investment advisors who are salespeople drumming up business to invest funds. He was cautious about hiring an investment advisor and said there was no reason to take capital risks with the market the way it is today. His proposal was that the Town take from the Finance Committee the cash reserves responsibility and create a new committee to advise Council and the City Manager on the investment of the reserves. Casey noted that during the period when she was a liaison to the Finance Committee, she requested that the Committee review at the investment policy, and at that time the February 17, 2000 4 Regular City Council Meeting • reserves were$6 million which was a greater amount than neighboring communities. The current reserves grew to almost$11 million in a short amount of time. She agreed that the Town should move forward and suggested an Investment Committee could make recommendations to the Council that would end up bringing more money to the town. Ken Clifford said Kay Chandler did not recommend that the Town use corporate bonds; the investment policy did not allow corporate bonds. He reminded Council that according to state law,the primary job of the Council as fiduciaries is to act as a prudent investor, and the number one job of a prudent investor is to safeguard the principle of the Town. The second job is to meet liquidity needs, and the third is to achieve a better investment return. He said if the Council created an investment committee,he hoped the Council did not have that committee do the investments on a day-to-day basis. Dauber clarified that the primary responsibility of the Finance Committee was to oversee the budgets and expenses and make sure they are in line with the town's income and to look at the reserve policy. Frank Lloyd said his impression was that LAIF did a good job at a reasonable cost. He said hiring someone to make more money in the Town's portfolio would use up the money. He suggested Finn offer some of his manpower to put the Town into safe • investments instead of looking for a new committee of volunteers. Johnson did not object to a specialized investment committee, adding that the responsibility for investing the money lies with the Council. Betsy Bertram, 11854 Page Mill Road, appreciated and respected Finn's successes in financing, but was apprehensive about trusting him with the Town's money. Ken Clifford said the investment committee was not a bad idea,but suggested the Council might consider making a committee that handled investments and finance. The current Finance Committee spends most of its time looking at proforma budgets, reviewing budgets after the fact, and making recommendations to the Council. 'Jim Steiner,Finance Committee, said a comment was made earlier about lack of cash flow planning. He commented with regard to month-to-month calenderization, which was what Carol looked at, and the Finance Committee looked at it more on an annual basis. He said the Committee welcomed the opportunity to look at enhanced means of improving returns on investment. The Committee made its feelings known about the advisability of retaining a major proportion of unspent funds in the LAIF account because of their safety, liquidity and reasonable amount of return. The Committee was also favorably inclined toward taking a major portion and putting it into medium term U.S. Government treasury notes which would enhance the return. The Committee looked at • CitFebruary 17, 2000 5 Regular y Council Meeting • ways of improving investment without having to form an investment committee,hiring an investment counselor, or increasing the workload of the Finance Director. Frank Lloyd said there was criticism of the Finance Committee being laggard in its duties. He reviewed minutes from the February 22, 1999,April 26, 1999, and May 18, 1999 meetings regarding the town's investment policy which was approved by the Council on May 20, 1999. The Finance Committee's duty is to present recommendations to the Council as to policy. Dauber found the Chandler presentation attractive in that the company did all the paperwork and all the reporting. The proposal from Finn was to get someone else to do the work. The Finance Director said in drafting the investment policy in April 1999, she began with the state statutory guidelines which include many limitations as to how public funds can be invested. She also felt the Chandler presentation was favorable as well as efficient. She added that the town's investment policy was more conservative than surrounding cities. • Finn reported this his company managed approximately$200 million bond portfolio with a half-time person doing the record keeping. He said he would be happy to set up the books the same way. Dauber suggested continuing this discussion to the next meeting,noting that much of the current discussion was predicated on the report that the Council received at this meeting. Johnson concurred adding that, at that time,the Council could decide if it wanted to form a specialized committee. Dave Pilling, 12849 Canario Way, was interested in the fact that the Town's nest egg was growing and asked if it was the objective of the Town to have the nest egg continue to grow. He also asked if the Town considered reducing taxes. Dauber responded that the Town received four percent of the property taxes which was 25 percent of the Town's income. Casey wanted to see some of the reserves used for road maintenance and storm drain repairs. Dauber said the Town was fortunate that the reserves were growing with the Town's deferred maintenance. Charles Wong, 14250 Miranda Road, said reserves would continue to grow and should be used productively. He said functions of the City were to provide service to the residents as well as maintaining and upgrading the infrastructures. • February 17, 2000 6 Regular City Council Meeting Eric Clow, 27660 Red Red Rock, said the Council should not take too long to change the investment policy. There was evidence that the Finance Committee looked at this one year ago and no action was taken over a period of one year. He hoped action would be taken to get the optimal policy in place. David Rynne, 26120 Rancho Manuella, said he had financial experience and did not agree with investment in mortgage backed securities because of risks involved. Phil Dauber, 27930 Roble Alto, said he agreed with much of what was proposed, but noted if the Council implemented the policy a year ago,-money would be lost today because rates dropped. It was a complex area that could not be done with part-time people. Sandy Humphries, 26238 Fremont Road, said it would be helpful if a number of the people on the investment committee were expert in municipal finance,noting there was a considerable difference between corporate and municipal finance. Dauber asked whether the topic of discussion of the next meeting was to create an investment committee to advise the Council to more aggressively invest town funds. The Council concurred. Casey said she had asked the Finance Committee to review the development fees since she felt that residents were charged too much for development fees. She noted that the report from Dave Struthers indicated the Finance Committee reviewed the City Manager's report on Excavation and Encroachment fees and recommended they be modified to bring them in line with other cities and reviewed the City Manager's report on development fees and recommended that the Town hire an outside consultant to review and make recommendations to the fee schedule. She pointed out that in a letter from Dave Struthers to the Town Crier, he said the development fees were somewhat higher but the Town was in line with state law. Frank Lloyd clarified that a letter by a member of the Committee to the Town Crier was not the Committee's official word. Casey responded that the Committee might want to address that issue at its next meeting. She contended that one of the reasons the reserves had gone up was partly due to the exorbitant fees charged to the residents. Dauber commented that the Finance Committee did look at the fee structure and the report from the City Manager. The recommendation was to hire an outside consultant to look at the fee structure. Johnson said he heard that the Town fees are excessive because they are higher than neighboring towns of similar size which made an unsubstantiated assumption that the February 17, 2000 7 Regular City Council Meeting itown's with lower fees were doing things perfectly. He said the Town should look at the fees of other towns to see if they are targeting their fees to be exactly in line with their costs. Frank Lloyd commented that the philosophy of the Finance Committee had been that fees cover the cost of service. The Committee was not trying to advise the Council to impose a tax. Pointing out an election was coming up, he did not appreciate the Committee being used for political purposes by claiming the Committee was trying to encourage the Council to charge too much in fees. Dauber said the item would be continued to Old Business on the next agenda. 10. PRESENTATIONS FROM THE FLOOR Betsy Bertram, 11854 Page Mill Road, said the Council should not be an arena for egos, but a place where elected representatives made decisions on behalf of the residents on issues brought before the Council by the residents or issues that affected the well-being of the Town. She added that the Council should not shirk its responsibility by directing staff to make decisions for it. Staff and committees should compile information for the Council and make recommendations. It appeared to her that the Council came together with special interests,using the example of the agenda items regarding a pathway and a • request to have the upcoming election monitored which were requested to be on the agenda by Casey. She said the items did not belong on the agenda and asked to have them removed. Dauber clarified that the Town has a policy where any councilmember under council initiated items could place an item on the agenda for discussion. 11. PUBLIC HEARINGS 11.1 Appeal of amendment to Site Development Permit for an accessory building and a variance to exceed allowable floor area for the property; and adoption of a resolution_approving conservation agreement,Lands of Finn, 12000 Finn Lane-- Resolution#_(continued from February 3, 2000 Council Meeting) Mayor Pro Tem Finn stepped down from consideration of this item. The Planning Director reported that on November 18, 1999,the Council heard the appeal from the Planning Commission. Council directed that the applicant and Planning Director work together to correct the violation. The proposed plan was to develop the terrace area with native plantings and screen the lower walls from Prospect Avenue. He noted that Finn agreed to record a conservation agreement which would require the plantings to be maintained. • February 17, 2000 8 Regular City Council Meeting • Johnson noted that the staff report recommended the Council approve the plan subject to conditions of approval as outlined in Attachment 1. He pointed out that Attachment 1, item 4 indicated"A building permit shall be obtained for the retaining walls prior to final inspection of the schoolhouse." He questioned who would issue the building permit. The Planning Director said based on the Council's approval, the permit would be issued by the Building Official once pertinent building code issues were taken care of. He said the permit was not discretionary; the applicant would get the permit as long as the design met the building code. Dauber noted that the report mentioned not worrying about counting the development area of the walkways because there was so much development area remaining on the property. She pointed out that a proposed 800 square foot deck was shown on the plans and questioned whether the square footage was included. The Planning Director said the deck in front of the structure should be counted. Dauber opened the public hearing. Finn explained that the deck was built smaller than as shown on the plans. He said he • worked with the Planning Director and worked out a reasonable compromise. He noted that the irrigation in the conservation area will be removed. Betsy Bertram, 11854 Page Mill Road, commented that Finn had served on the Planning Commission through the process of getting a conditional use permit to have the schoolhouse put on his property and he should understand the conditions that said he was not to disturb the surrounding grounds. She felt it was safe to say that, if Finn had followed the correct procedure, his request to grade and build would have been denied by the Planning Commission. She was.concerned that Finn instructed his landscaper to proceed with work without obtaining a permit. The Planning Commission reviewed the issue and made recommendations based on documentation that the property around the schoolhouse was not to be disturbed. She said Finn should put the property back the way it was at the time the variance was granted. William Downey, 14330 DeBell Drive, said Councilmembers and Planning Commissioners should be held to a higher standard because they are role models for the Town. Finn should not get off scott-free. He suggested a fine might be assessed against him to keep him from doing such a thing again. He said Finn should be held accountable. Mike Scott,27856 Black Mountain Road, felt the item was on the agenda for politics. He found discrimination in that the Council was selectively applying the town rules. He said his neighbor was in violation of town policy for one and a half years and nothing was • done. CitFebruary 17, 2000 9 Regular y Council Meeting • Planning Commissioner Wong attempted to address the Council. Dauber informed him that it was the policy of the Council not to hear comments from Planning Commissioners on projects they reviewed. Casey asked for a written policy that the Council does not allow or encourage Planning Commissioners to speak and that the policy be sent to the Planning Commission. Mary Calderon, Quarry Subdivision, agreed with Mike Scott that there are inconsistencies. She has neighbors who are in violation of their conservation easements. Denise Williams, 25462 Altamont Road, said it appeared to her that someone can build what they want and then run for office. There were no further comments from the public, and the public hearing was closed. Johnson noted that the staff report indicated that staff believed that the proposal, if originally submitted,would likely have been recommended for approval. He referred to the neighbors who had sent letters that the Council should do whatever is necessary to approve the project. He also commented on a recent violation involving a Planning Commissioner and how it was handled. He thought the public would be indignant if the Council took action that looked to the public as if the Council had forgiven Finn for his • violation. His earlier concern about the permit being automatic no longer bothered him, knowing that the Building Official would look at the violation and consider whether a permit should be issued. He concluded that the solution agreed upon by the Planning Director and Finn would satisfy the Planning Commission. MOTION SECONDED AND CARRIED: Moved by Casey, seconded by Johnson and passed by the following roll call vote to accept the recommendation of staff to approve the revised grading and landscape plan for Lands of Finn, 12000 Finn Lane, subject to the conditions of approval and with the stipulation that approval does not become effective until the date on which the building permit for the retaining walls is obtained. AYES: Councilmembers Casey and Johnson NOES: Mayor Dauber Dauber agreed with Commissioner Wong's comments at the Planning Commission. She did not feel the solution was complete. The Planning Commission minutes said, "Commissioner Wong felt the applicant should have applied for the permit. However, the project has already been done. They should look at a way to mitigate the situation and make it into a more productive situation, also sending a message to the residents that this should not be repeated. He asked how they could rectify this and still keep the integrity of the Town." She wanted to see a penalty imposed. She was worried that no one else in • February 17, 2000 10 Regular City Council Meeting • town would apply for a permit. The Code calls for a financial penalty of four times the original permit fee. She did not think a monetary penalty would affect Finn. It appeared to her that approximately 1,500 to 1,600 square feet of land was disturbed;the solution was that he would take the land and put in low water use plantings. She suggested the Town consider going four times that amount. She thought a fair retribution would be to take high water use on the property and put it into low water use. Casey did not support Dauber's suggestion. Dauber said she would not support the motion because it did not have a penalty clause in it. Johnson said the important thing was that the project would be done in a proper environmental manner. He also hoped it would be made clear in the press that the approval was only conditional on Finn getting a permit and getting a permit was not automatic. 6. NEW BUSINESS -None 7. REPORTS FROM COMMITTEES, SUB-COMMITTEES,AND COUNCILMEMBERS ON OUTSIDE AGENCIES -None 8. STAFF REPORTS 8.1 City Manager • The City Manager reported that the Town survived the recent storms with no significant flooding. Johnson said he was under the impression that the Council authorized funds to'replace the copier in Town Hall. The City Manager was aware of Council approval but did not feel it was time to give up the machine; however,there were problems with the machine prior to the meeting. The City Manager indicated there were discussions with the Blair Subdivision and they might come back to the Planning Commission for a revision to their conditions of approval regarding flood control issues on the property. Dauber asked about the newly regraded Fremont Road,noting it appeared there were still gullies. The City Manager said in some cases the water was diverted and staff was still working on the situation. The City Manager reported meeting with Palo Alto Animal Control Officers who were very responsive. Staff will bring a contract extension for animal control to the Council in the spring. The City Manager reported that a number of trees were mentioned for Heritage status. • The process needs to come back to the Council. February 17, 2000 11 Regular City Council Meeting i The City Manager suggested the Council might want to cancel the meeting of April 20 due to Passover. Dauber said if it was necessary to have a meeting, it could be scheduled for the following week. PASSED BY CONSENSUS: To cancel the April 20, 2000 Council Meeting. 8.2 City Attorney-None. 8.3 City Clerk 8.3.1 Report on Council Correspondence Dauber said the Council received a revised Council Correspondence. The letter from Dave Struthers with comments on the Town audit was attached. It will be agendized for the next meeting. 9. COUNCIL-INITIATED ITEMS 9.1 Request that Council discuss an off-road pathway easement on Lands of Cheng., • 24595 Voorhees Drive (Councilmember Casey) Casey said based on Emily Cheng's conversations with members of the Pathway Committee and based on a letter by Bill Downing, Cheng was accused of having a blocked off-road pathway. She wanted to know if there was a violation. Johnson suggested the Council agendize the item for the first meeting after the election. Dauber felt the item was an election issue and noted that the Council tries hard to avoid election issues in Council meetings. MOTION SECONDED FAILED: Moved by Johnson, seconded by Dauber and failed by the following roll call vote to agendize this item for the first meeting after the election. AYES: Mayor Dauber and Councilmember Johnson NOES: Mayor Pro Tem Finn and Councilmember Casey Finn said he voted no because the issue was political. MOTION SECONDED WITH NO VOTE TAKEN: Moved by Johnson and seconded by Dauber to table the item.No vote taken. • February 17, 2000 12 Regular City Council Meeting MOTION SECONDED AND CARRIED: Moved by Johnson, seconded by Dauber and passed by the following roll call vote to agendize this item for the first meeting after the election. AYES: Mayor Dauber and Councilmembers Casey and Johnson NOES: Mayor Pro Tem Finn MOTION SECONDED AND CARRIED: Moved by Casey, seconded by Johnson, and carried that the Council discuss Council-Initiated Items at the next meeting under New Business. Emily Cheng,24595 Voorhees, said she was accused of a violation, but she never received any notice of violation. 9.2 Request that Council ask the League of Women Voters to monitor the Los Altos Hills Special Election for negative campaign violations (Councilmember Casey) Casey said during the last election the League of Women Voters was asked and agreed to monitor the campaign. She was sorry the Council did not ask them to do it again and felt the Council was negligent in not asking them to monitor the election. • 12. ADJOURNMENT There being no further new or old business to discuss,the City Council Meeting was adjourned at 9:15 p.m. es ectfully submitted, Ruth Swanson Secretary The minutes of the February 17, 2000 City Council Meeting were approved at the March 16, 2000 City Council Meeting. February 17, 2000 13 Regular City Council Meeting