The phone at city hall yesterday was ringing "off the wall," according to City Councillor Sheila T. Russell.

Local residents on both sides of the political spectrum have been phoning city leaders for the past week to voice their complaints about a new proposal which would dramatically restrict resident and visitor parking rights in the city.

City Manager Robert W. Healy proposed a plan last week which would impose stringent limitations on when and where residents and visitors alike can park their vehicles, in addition to expanding commuter and bicycle mobility in the city.

But both liberal activists and city business leaders blasted the plan saying that it would exacerbate the city's ongoing traffic problems and harm local businesses.

Healy's plan is part of an effort to bring the city into compliance with the strict 1990 amendments to the national Clean Air Act. All cities in the Commonwealth will eventually have to meet these standards by 1996.

Healy said the plan is a needed to meet the air standards. He added that despite locals' concerns about possible adverse effects the city might suffer, the plan will be better than the city's current parking freeze--which allots the number of parking spaces in the city according to the square miles developed.

Healy's plan will be under discussion at an ordinance meeting tonight.

The most controversial part of the plan is a proposal to divide the city into four parking zones. Residents would be assigned different parking stickers according to zones. Drivers would not be permitted to park in another zone during the work week and visitors will be required to obtain passes to park in the city.

If residents want to travel out of their zone on a week day, they would have to park in garages or at parking meters, according to the plan. On weekends, however, the regulations would be suspended and residents could park in any residential zone. Under current city regulations, drivers can park in any residential zone during the entire week.

Some residents and councillors say the restrictions on in-city parking will deter people from patronizing local businesses.

Although Healy said he believed there is no evidence that the plan will injure the local business community, the Cambridge Chamber of Commerce has created a Clean Air Committee to examine the plan.

"Clearly any change like this that is going to have an impact is logically going to have an impact on business... And it's not going to be growth," said the chamber's Executive Director Robert D. Lewis '61.

Lewis said the chamber is worried that Cambridge will be the only city to adopt such stringent regulations to comply with national air standards.

"If Cambridge is alone, then one can anticipate severe consequences," Lewis said.

Healy acknowledged that his plan might put Cambridge at a "competitive disadvantage" because business and industry might be deterred from settling in a city where its employees could face a more difficult commute.