San Mateo County Grand Jury • 2006-2007

Issue | Background | Findings | Conclusions | Recommendations | Responses | Attachments Building in East Palo Alto Is

Published: February 06, 2007 36 pages Consolidated Report
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Findings 3 findings

F1 Page 2
Inappropriate Participation of the City Manager in the Planning Process The current City Manager served as Planning Director for agencies in other jurisdictions for a total of about 20 years, leaving him with a strong interest in planning issues. The following examples suggest that this interest may have led to inappropriate interventions in the granting of building permits. Before proceeding, it should be noted that the role of the City Manager in the East Palo Alto planning process was changed a few years ago. The role of the City Manager in planning process appeals is governed by a March 2004 revision of Section 6581.1 of Chapter 30 of the East Palo Alto City Code (Appeal of Decision on Which Administrative Review and Approval is Sought), which now removes the City Manager from planning decisions. Originally, the code stated: “In the event of dissatisfaction with the decision of the Planning Director on any entitlement for which administrative review is sought … the proponent may appeal in writing to the City Manager. … The City Manager shall render his or her decision within 45 days after the conclusion of said hearing of the appeal. … In event of dissatisfaction with the decision of the City Manager, proponent may appeal in writing to the City Council.” The revised code eliminated the role of the City Manager in the planning appeal process, while leaving the City Manager with a role in the building permit approval process itself. Some of the following information suggests that the City Manager has not adjusted to the changed rules. Incident 1 involved the City Manager’s March 13, 2007 termination of the Planning Manager for refusing to sign a Final Inspection card related to a recently completed residential structure. The terminated Planning Manager allegedly refused to sign the inspection card or direct any of the planners she supervised to do so, because none of them had inspected the project. Furthermore, she had allegedly informed the City Manager and the City Attorney that the building permits for the second phase of development were issued without planning approvals and had allegedly informed them that the permits did not comply with the Zoning Regulations. On the same day that the Planning Manager was terminated, a Notice of Warning was issued by the City Manager to an Associate Planner, who had also refused to sign the card. The City Manager has authority to terminate exempt employees at any time without cause. It appears in this case that employees were disciplined because they refused to undertake an action that they felt was professionally improper. The fact that this particular incident involved two employees who refused to sign off on a property makes the City Manager’s actions particularly questionable. Incident 2 involves allegations that the City Manager interceded after a planning application had been denied by the Planning Commission. With regard to the property involved, a Planned Unit Development project, the City Manager wrote the staff reports that were submitted to the City Council for its July 25 and September 5, 2006 meetings, and he failed to forward the minutes and records of the Planning Commission for consideration by the City Council before they took action. Environmental documents with a Mitigated Negative Declaration for the property were also not forwarded for Council consideration. As a result, the Council acted to amend the General Plan, rezone the subject property, and adopt the Mitigated Negative Declaration without having received the required supporting documents. The City Manager and the City Attorney directed the Planning Manager and the Associate Planner to file the Notice of Determination. Allegedly, both refused because the Council’s actions were not yet complete and therefore inconsistent with state law. The City Manager and the Council went on to approve the Planned Unit Development project entitlements without the required Conditions of Approval and findings. Instead, the City Manager substituted the draft Conditions of Approval and findings provided by the developer. Such a procedure is inconsistent with California Land Use laws. The grading plan for this same property was issued without planning and engineering review and approval. Allegedly, the Planning Manager recommended to the City Manager that the grading permit be revoked and that a Mitigation Monitoring/Tracking table be prepared in order to comply with the California Environmental Quality Act (CEQA), but the City Manager ignored the recommendation and allowed the grading to proceed. At the same time that the above activities were going on, the City Manager worked directly with the same developer on the processing of building permits for another project involving certain industrial condominiums on the east side of Pulgas Avenue. Even though the Planning Manager allegedly informed both the City Manager and the developer that the Conditions of Approval required the payment of a $10,000 fee for the services of a contract planner for the building permit application review and mitigation monitoring review, the fee was not paid to the City. The City Manager allegedly intervened in the above matters because the Planning Manager was on leave and the planning staff was short-handed. Incident 3 involved the City Manager’s reversal of an earlier decision by the Planning Manager concerning a third property. The Planning Manager denied the permits on July 5, 2006. On August 4, 2006, the City Manager granted building permits for two 3 duplexes. The City Manager again allegedly acted because the Planning Manager was on leave.
F2 Page 4
Possible Conflict of Interest Concerning the Previous Mayor On July 25, 2006, the previous Mayor voted (City Resolution 2619) to rezone the property discussed in Incident 2, even though that project was within 500 feet of his residence. The City staff may have failed to alert the Mayor that his residence was so close to the project in question, but it is the responsibility of elected officials to recuse themselves in these situations. It has recently been acknowledged that the Mayor’s residence is within 500 feet of the project and that the Mayor should have recused himself from any vote on the project. The grand jury was informed that the Council must now reconsider the environmental determination, the general plan and amendment and the rezoning ordinance, all of which require public hearings at additional expenses to the City. The grand jury was further informed that the City Attorney will also recommend that the previous Mayor contact the Fair Political Practices Commission (FPPC) to report this potential violation of FPPC rules.
F3 Page 4
Improprieties in a Contract Award by the City Council During November and December of 2006, the City Council sought bids and awarded a contract for planning services and the preparation of an Environmental Impact Report (EIR) for a large live/work development. The contract was awarded to a company that had not been recommended by the Planning Manager, and is alleged to have received an unfair advantage during the award process. According to the allegations, two companies (hereafter referred to as Company A and Company B) were the finalists in a competition to provide contract planning services to the City and prepare an EIR for the above development. On November 8, 2006, the Planning Manager presented an analysis of the two Companies to the City Council and based on technical considerations recommended that Company A receive the contract. During the public forum, the developer requested that Company B be hired, in spite of the Planning Manager’s recommendation. The Council later directed the Planning Manager to give Company B a copy of Company A’s proposal. On November 15, Company A wrote to the City Council noting that it was “ … inappropriate and raised ethical questions … ” for the City to give Company A’s proposal to Company B, but the City did so anyway. Company B subsequently revised its proposal, but the proposal still did not include an evaluation of the impact of a hazardous waste materials facility in close proximity to the project site. Company A had included such an evaluation in their scope of work. The City Manager allegedly changed the Planning Manager's report after Company B revised their proposal, and then recommended that the Council award the contract to Company B. The City Council chose Company B, in spite of the above mentioned 4 deficiency with regard to the hazardous materials study. The Grand Jury could find no documentation that justified overruling the Planning Manager’s recommendation and the award to Company B.

Recommendations 3

Conclusions 7

No Responses Found 1

Government entities assigned to respond to this report. No response documents have been linked in our database.

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