HomeMy WebLinkAbout2022-10-03 City Council Summary MinutesCITY COUNCIL
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Special Meeting
October 3, 2022
The City Council of the City of Palo Alto met on this date in the Council
Chambers and by virtual teleconference at 5:33 P.M.
Present in person: Burt, Cormack, DuBois, Filseth, Stone, Tanaka
Present Virtually: Kou
Absent: None
Special Order of the Day
2. Adoption of Resolution for Heather Souza Upon Her Retirement
Mayor Patrick Burt read aloud the resolution.
Police Chief Andrew Binder stated his gratefulness for Heather Souza’s service
to the community, friendship, and professionalism.
Heather Souza stated her appreciation for opportunities and her career.
Council Member Tom DuBois thanked Ms. Souza for her service.
Mayor Burt presented the proclamation to Ms. Souza who was accompanied
by her husband, mother, and brother.
Public Comment
1. Aram James thanked Ms. Souza for her work with the Palo Alto Police
Department and wished her well in her retirement.
MOTION: Council Member Alison Cormack moved, seconded by Vice Mayor
Lydia Kou to adopt a Resolution for Heather Souza upon her retirement.
MOTION PASSED: 7-0
Agenda Changes, Additions and Deletions
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Items 1, the labor session, and 8, the TEFRA hearing, were removed from the
agenda.
Public Comment
1. Terry Holzemer said the public was not informed about the DEIR for
the 200 Portage project and the scoping session. He asked the Council
to inform all interested parties. He asked that the DEIR deadline of
October 31 be extended so more citizens could participate.
2. Aram James spoke against weaponized canines.
3. Roberta Ahlquist stated the Low-Income Senior Housing Committee is
circulating a rent stabilization and just cause eviction petition and
asked for serious consideration. She asked for a vacancy tax on the
approximately 500 vacant houses in Palo Alto and stated seniors could
use that housing. Seniors desire rent stabilization due to recent rent
increases up to $300.
4. Pete Bennett spoke on a lawsuit he is involved in and asked for help in
finding out who killed members of his family.
5. Matt Schlegel encouraged people to stop burning fossil fuel.
6. Elizabeth Gardner stated her support of the rent stabilization petition
and asked the Council to reduce petroleum products and toxins in home construction.
Consent Calendar
Council Member Cormack registered a no vote on Agenda Item Number 6.
Council Members Tom DuBois, Greer Stone, and Greg Tanaka requested to
pull Item 4.
Council Member Tanaka registered a no vote on Agenda Item Number 7.
City Manager Ed Shikada suggested Agenda Item 4 and Action Item 9 be heard
concurrently.
MOTION: Council Member DuBois moved, seconded by Mayor Burt to
approve Agenda Item Numbers 3 and 5-7 and pull Item 4 for discussion.
3. Approve Minutes from the September 19, 2022 City Council Meetings
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4. Approval of a Professional Services Agreement With Eagle Systems (dba Synergy Companies) for Development and Administration of Heat Pump
Water Heater Pilot Program, Energy and Water Efficiency, and
Electrification Programs for the City's Utility Customers in a Total Not-to-
Exceed Amount of $7.705M for a 3-Year Term Through October 2025
(Pulled for discussion)
5. Approval of Construction Contract Number C23184924 with Ron Paris
Construction Company, Inc. in the Amount of $990,733; Authorization for
the City Manager to Negotiate and Execute Change Orders up to a Not-to-
Exceed Amount of $99,073 for the Water, Gas, Wastewater Office Remodel
Project, Capital Improvement Program Project PE-19001; and Approval of
Budget Amendments in the Capital Improvement Fund, Water Fund, Gas
Fund and Wastewater Collection Fund
6. Adoption of Resolution 10073 Authorizing Use of Teleconferencing for
Council Meetings During Covid-19 State of Emergency
7. Adopt Resolution 10074 Authorizing the City Manager to Purchase a
Portion of the City’s Natural Gas Requirements From Certain Prequalified
Natural Gas Suppliers Under Specified Terms and Conditions for Delivery
During Calendar Years 2023 Through 2028, Inclusive, With a $150 Million
Maximum Aggregate Transaction Limit
MOTION SPLIT FOR THE PURPOSE OF VOTING
MOTION PASSED ITEMS 3,5: 7-0
MOTION PASSED ITEMS 6: 6-1, Cormack no
MOTION PASSED ITEMS 7: 6-1, Tanaka no
Council Member Cormack spoke in opposition of Item 6 and stated she has
not found it unsafe for the Council to meet in person.
Council Member Tanaka spoke in opposition of Item 7 and said there were no
boundaries on pricing and compared it to a blank check. He added there were
no boundaries on quantity and no recent gas quantity usage was provided.
Since 2000, the City has reduced natural gas use by about 3 percent per year.
He stated the budget approval for Item 7 is 173 percent higher than actual
usage.
City Manager Comments
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City Manager Shikada shared information on COVID-19 exposure risks and dates for regular PCR testing in the county. The next Artist-in-Residence event
will be October 8. There will be pop-up circus performances October 7 to
October 9 at 3 different locations. There will be a virtual community meeting
on October 13 in regard to environmental review of the proposed Housing
Element which is expected to be released around November 7 followed by a
30-day public comment period. A follow-up joint study session with the Council
and the Planning & Transportation Commission is tentatively scheduled for
November 28. A Making Better Choices in Your Home workshop is scheduled
for October 15 and will offer options and resources for residential
electrification. A town hall meeting will occur on October 12. The next Council
meeting will be on October 17 where the Creekside Inn site will be prescreened
and updates will be given on the Green Building and Reach Code. At the
Council meeting on October 24, the North Ventura Coordinated Area Plan will
be discussed as well as the next steps on the Parklet program. There is no
Council meeting on October 31. Items discussed at the November 7 Council
meeting and beyond will include the Economic Development Study Session,
the Housing Element, the Biannual Study Session with the City’s independent
police auditor, and the joint meeting with the Planning & Transportation
Committee with regard to the Housing Element.
Action Items
9. Acceptance of Sustainability and Climate Action Plan (S/CAP) Goals and
Key Actions; Review of Proposed Reach Code Changes; Adoption of Resolutions Adopting Advanced Heat Pump Water Heater Program
Guidelines, Creating and Funding Electrification Reserves, Amending the
City’s Policy on the Use of Cap and Trade Allowance Revenues, and
Adopting a Carbon Neutrality Goal; Approval of Budget Amendments in the
Electric Fund, Gas Fund, and General Fund; and Direction to Staff to Amend
the 2022 Utilities Legislative Guidelines
Consent Calendar Item 4 was included in the discussion.
Assistant Director Abendschein stated the contract with Synergy has 3 parts,
2 that extend existing programs plus the advanced Heat Pump Water Heater
Program with the turnkey installation feature. In turnkey installation, a
contractor does the installation but the customer pays a portion of the cost.
The 2 programs being extended are the Multifamily Residential Program and
the Income-Qualified Program and they focus on energy and water efficiency.
The programs could be expanded later to include some level of electrification
but they would need a budget amendment. No amendment is needed to
continue the existing programs but the advanced Heat Pump Water Heater
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Program requires a budget change and other approvals. No-cost direct
installation is offered to income-qualified residents as part of the Income-Qualified Program. He stated the total not-to-exceed budget is $7.7M over a
3-year term.
The term income qualified was discussed and defined as people who qualify
for a less costly level of service based on their income level and is based on a
percentage of the Santa Clara median income. People do not have to be
homeowners but cooperation with the property owner is needed. There is a
Rate Assistance Program (RAP) for low-income residents. Qualifications are
the same as at the state and federal level.
Mayor Pat Burt asked if the program allows for the addition of other installation
providers who may be available and more cost effective. Assistant Director
Abendschein said there is nothing in the contract to prevent this.
Director Brad Eggleston reviewed what was discussed the previous week
regarding Action Item 9 and Consent Calendar Item 4.
Mayor Burt presented on lessons learned by the Ad Hoc Climate Action
Committee regarding electrification and reducing carbon use. Availability of
transformers and adequate personnel is a problem. The Utilities Department
thought this was triggered by home electrification but the Committee found
this was due to electric vehicle (EV) chargers. High amplification chargers
suggested by vehicle manufacturers are larger than what most people need.
PGE makes it difficult for the City and other public utilities to compete with their wages and the salary structure needs to be competitive for hiring and
electrification overall. City power can be supplemented with the purchase of
solar energy. Solar costs have fallen 80 to 90 percent in the last 10 years and
are projected to continue decreasing. PG&E is significantly increasing their
rates and it is estimated the City’s residential utility rates will be 50 percent
lower. This will allow the City to invest in the system upgrade and still have
competitive rates versus other utilities in the region.
The risks of methane in the home were discussed. Heat pump furnaces provide
higher quality home heating and can cool homes as well. EV charging
contributes to stress on transformers during peak loads in the evenings when
renewables are not being generated. Variable rate pricing with the smart
meter program means power will be cheapest when it is most plentiful and
more expensive when there is higher demand. Vehicle charging should be
done during the day when power is plentiful. Energy can be put into the power
grid from vehicles with 2-way charging. The home hot water program will be
able to be expanded to other home appliances on End-of-Life. The goal is to
avoid new gas-powered appliances and transition to electric in the home as
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well as removing roof-mounted commercial heating and air conditioning
systems.
The City is further along in the goal of 80-percent reduction in greenhouse gas
emissions by 2030 than almost any other city but still behind schedule. An
additional goal is carbon neutrality in the form of carbon reductions, carbon
sequestration, and carbon offsets. The City is already paying for carbon offsets
for natural gas. The Committee wants more carbon sequestration and
reduction. Palo Alto is on the path to carbon neutrality by 2030.
The Ad Hoc Climate Action Committee recommended that the Council give
direction to Staff to work on the EV strategic plan and the HVAC commercial
plan this year. Resources need to be identified to not add workload to existing
staff. The electric utility rates allow for additional investments while remaining
competitive. The Council will need to consider if the current Ad Hoc will be
continued, have a different focus, be a permanent committee, or become a
green ribbon task force of community members. The goal is to retain the focus
and momentum established over the last year.
Public Comment
1. Mel Kronick, Palo Alto resident and member of 350 Palo Alto,
encouraged the Council to pass the heat pump initiative.
2. Bret Andersen with Carbon Free Palo Alto thanked Staff, the Ad Hoc
Committee, and Mayor Burt on carbon reduction proposals and extending it beyond heat pump water heaters. He hoped for
investment in marketing and communication for the program.
3. Bruce Hodge with Carbon Free Palo Alto said there are no good reasons
for voting against the proposal. He recognized Assistant Director
Abendschein and Staff in the fruition of the program and Mayor Burt
for kickstarting the effort. He hoped necessary policies and programs
can be established to attain the 80 by 30 goal and said citizen expertise
remains a key aspect of the process. He asked the Council to vote yes.
4. Debbie Mytels of 2824 Louis Road is a 45-year resident of Palo Alto.
She is a member of 350 Palo Alto who is eager to help make the
proposed heat pump water heater program a success. The group has
received a $10,000 grant from the county of Santa Clara to educate
Palo Alto homeowners about planning ahead to purchase a new heat
pump water heater before failure of their old one. Survey responses
surmised 82 percent of homeowners are interested in ordering a water
heater installation from CPAU and negative comments indicated a need
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for community education. She encouraged the Council vote for
approval.
5. Matt Schlegel agreed with Council Member Tanaka’s desire for a
sensitivity analysis to determine how much emissions can be reduced
per dollar spent. Additionally, he suggested a focus on time with
prioritizing short-term emission reduction and avoiding negative
human emotional reactions to actions taken.
6. Pete Bennett talked about his issues with PG&E. He said he learned a
lot at the current meeting.
7. Sasha, a 1st grader at Fairmeadow Elementary, helps pick up trash
around her school. She talked about trash and wasted food, germs,
and animals eating plastic. She asked for help making the world a
better place.
8. Elizabeth Gardner said her son’s asthma is caused by air pollution. She
lives in Mayfield Place where there are no EV charging stations. She
asked for equity-based carbon neutrality and suggested it be divided
equally between renters and homeowners.
9. Keith Bennett with Save Palo Alto’s Groundwater said concrete used in
underground construction contributes to greenhouse gas emissions.
10. Lynn Chiapella asked how many installations could be accomplished
with the $7.7M over 3 years as listed in Item 4. She asked if the smart
meter program was dropped.
11. Antonia, a junior at Gunn and member of the Palo Alto Student Climate
Coalition, advocated for the heat pump water heater initiative in
meeting S/CAP goals. Household methane emissions from gas appliances are harmful for lungs. Heat pump water heaters can help
with lung health. She stated 1000 heat pump water heaters will not
overwhelm the electrical grid. Upgrading the electrical grid can be
considered to accommodate future projects. She asked for allocation
of resources to ensure future electrification projects. She asked the
Council to vote yes.
12. Theo Waltuch, a junior and member of the Social Justice Pathway at
Gunn High School and the Palo Alto Student Climate Coalition, urged
the City to move forward with S/CAP goals and actions. The heat pump
water heater program is a start to finding other ways to improve larger
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electrification initiatives down the road. He asked the Council to
approve the key goals and actions in the S/CAP.
13. Maya Perkash, a junior on the Palo Alto Student Climate Coalition and
class vice president at Gunn, reaffirmed the need for approval of the
S/CAP key goals and actions particularly carbon neutrality,
investments in electrification, and the heat pump water program. She
encouraged the Council to pass the S/CAP and implement it quickly.
14. Anu Ramamurty, a Palo Alto resident who moved from New York City,
said it is never to early to talk to kids about climate change. She
compared the S/CAP to the Paris Climate Agreement in signalling that
climate action is necessary.
15. Ian Irwin, a Palo Alto resident since 1978, commended all those
involved in creating the S/CAP. He wanted the health issues of plastic
to be addressed.
16. Cedric Pitot de la Beaujardiere supported Staff recommendations. He
supported reducing pesticide use and using native and pollinator
friendly plants in parks and encouraged this be expanded to homes
and businesses. He asked that hurdles to expanded installation of
photovoltaic systems be addressed. He asked for incentivization of
heat pump HVAC for businesses and homes. His home heat pump
HVAC system has reduced his natural gas use and improved
ventilation, air purification, and quality of life.
17. Susan Stansbury, a Barron Park resident, thanked those involved in
updating the City’s Sustainability and Climate Action Plan. She urged
the Council to approve the plan so it can be implemented as soon as
possible. She urged the Council to approve the heat pump water heater
program and suggested including heat pump furnaces that heat water.
She urged the City to commit to a carbon neutrality goal.
18. Dashiell Leeds, conservation organizer for the Sierra Club Loma Prieta
Chapter, fully supported the transition away from gas and toward
electrification. He supported Staff’s recommendations including the
advanced heat pump water heater program and the goal of carbon
neutrality by 2030. He wanted to see equitable electrification retrofit
programs expanded. He asked the Council to design policies and
programs with equity and biodiversity in mind. He asked the City to
make available the vulnerability assessment regarding sea level rise
and work on adaptation planning.
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19. Diane Bailey of the Menlo Spark community climate action group and
Sustainability and Climate Action Plan Ad Hoc Committee voiced her support for the recommended actions. She said the heat pump water
heater program demonstrates leadership on climate action. She said
gas is a health and safety risk to residents. She was in support of
S/CAP goals and actions.
Mayor Burt asked Staff about the status of the smart meter program and
renter and multifamily programs that are part of the Synergy contract, and
when they will be getting the update on the sea level rise portion of the climate
adaptation plan.
Council Member Cormack gave credit to Staff who put the program together.
She recognized members of the community and especially the high school
students who have partnered in a very constructive way.
Council Member DuBois thanked Staff, colleagues, and volunteers. He clarified
he was not against Consent Item 4.
Council Member Tanaka thanked everyone for their work. He questioned how
the City could maximize carbon reduction while minimizing cost. Most carbon
output is produced by cars. Rough calculations found 7.3 times more carbon
for your dollar with incentives for E-bikes versus incentives for heat pumps.
Council Member Cormack asked Staff how the current plan will change when
moving the Carbon Neutrality Goal to 2030 from 2035. Director Eggleston said current planned reductions and offsets will meet climate neutrality for 2030.
The 2035 goal was the original goal set by the Ad Hoc.
Council Member DuBois suggested considering modifying Key Action EV1 from
the previous week from saying raise awareness of micromobility to evaluating
potential incentives.
Assistant Director Abendschein said clarification of EV4 might be helpful where
incentives make sense but as stated, it directs Staff work.
Council Member Tanaka asked if there was enough staffing to implement the
scooter share program that was approved 3 years ago. Assistant Director
Abendschein said more work needs to be done and staffing is limited.
MOTION: Council Member Cormack moved, seconded by Council Member
DuBois to
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1. Direct staff to implement the Advanced Heat Pump Water Heater
Program by:
A. Adopting Resolution 10076 (Staff Report 14606, Attachment
C) approving the Advanced Heat Pump Water Heater Program
Design Guidelines;
B. Adopting Resolution 10077 (Staff Report 14606, Attachment
D) creating an Electrification Reserve, establishing reserve
guidelines, and transferring $4.5 million from the Electric Special
Projects Reserve to the Electrification Reserve;
C. Adopting Resolution 10078 (Staff Report 14606, Attachment
E) amending the City’s Policy on the Use of Freely Allocated
Allowances Under the State's Cap-and-Trade Program and
authorizing the City Manager to use $1.25 million from the Gas
Utility Cap and Trade Reserve for the Advanced Heat Pump
Water Heater program; and
D. Amending the Fiscal Year 2023 Budget Appropriation by:
i. For the Electric Utility Funds:
a. Increase Electric Resource Management Operating
Expenses for Contract Services by $4,763,000
b. Decrease Electrification Reserve by $4.5 million
c. Decrease Electric Supply Operations Reserve by $150,000
d. Decrease Electric Distribution Operations Reserve by
$86,000
ii. For the Gas Utility Funds:
a. Increase Gas Resource Management Operating
Expenses for Contract Services by $1.25 million
b. Decrease Gas Cap & Trade Reserve by $1.25 million
iii. For the General Fund:
a. Increase Planning & Development Operating Expenses
for Contract Services by $250,000
b. Increase Planning and Development Services Revenue
for Inspection Fees by $250,000
2. Approve and authorize the City Manager or their designee to execute
professional services agreement C23181953A with Eagle Systems, LLC
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doing business as Synergy Companies (Staff Report 14542,
Attachment A)
MOTION PASSED: 6-1, Tanaka no
MOTION: Council Member Cormack moved, seconded by Council Member
DuBois to
1. Accept the proposed S/CAP Goals and Key Actions (Staff Report
14606, Attachment A) as a summary of the City’s workplan under the
S/CAP Framework;
2. Adopt Resolution 10079 Adopting a Carbon Neutrality Goal in 2030
to Further the Climate Goals of the Sustainability and Climate Action
Plan (Staff Report 14606, Attachment F)
3. Direct staff to amend the 2022 Utilities Legislative Guidelines (Staff
Report 14606, Attachment G) to include an Electrification Workforce
Development guideline
MOTION PASSED: 7-0
The Council discussed whether to continue the current Ad Hoc and if a Climate
Action Commission that included community partners should be created.
Mayor Burt recommended 350.org, Carbon Free Palo Alto, and the Palo Alto Student Climate Coalition be among the community partners.
MOTION: Council Member Cormack moved, seconded by Council Member
Stone to refer to staff the design of a Climate Action Commission that will
include student members and to bring this referral back along with a workplan
at the end of the year.
Council Member Cormack asked if the Council is able to direct the mayor to
dissolve an Ad Hoc. City Attorney Stump said Ad Hocs are treated as 1-year
bodies and a new mayor would endorse continuation or create new Ad Hoc
committees if needed.
Council Member Stone wanted the Ad Hoc to continue while the new
commission is being created and Mayor Burt agreed.
MOTION PASSED: 7-0
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MOTION: Mayor Burt moved, seconded by Council Member DuBois to refer
to S/CAP ad hoc committee to begin work on the following and present to the Council by year end an outline:
1. Identify community partner organizations and how they can help
support the S/CAP moving forward
2. Preliminary committee review of a prospective commercial HVAC
electrification program (E2)
3. An EV strategic plan (EV1-10)
Council Member Eric Filseth felt rephrasing the things they are already
working on may cause the Ad Hoc committee to give more work to Staff.
Two-way charging with EVs is a decade away. He would vote against this.
Council Member Cormack recognized the contributions of the
Communications team.
MOTION PASSED: 5-2, Filseth, Tanaka no
Mayor Burt announced a 10-minute break.
10. Adoption of Support or Oppose Positions on State and Local Measures
Presented to Palo Alto Voters on the November 8, 2022 Ballot
Items that will be on the November 8, 2022, ballot were presented. Deputy
City Manager Chantal Cotton Gaines presented potential positions for the City
Council to consider based off legislative guidelines. Surveys found that voters
are concerned about rising consumer prices, higher interest rates, financial
turbulence, and job growth uncertainty. Voters name the economy and
inflation as a top issue followed by homelessness, housing costs and
availability, and the environment.
Legislative Analyst Carly Shelby said the League of California Cities is opposed
to Proposition 27 because it lacks enforcement mechanisms, creates an
unlevel playing field between existing card rooms, and does not distribute
homelessness funding evenly.
Public Comment
1. Liz Gardner said there is a housing emergency and it must be confronted
head on.
Council members voiced opinions on the Measures and Propositions.
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The dialysis measure was discussed. Supporters argue dialysis businesses should have increased transparency and additional licensed medical
professionals should be required to oversee dialysis functions to improve
patient outcomes. Those in opposition say additional staff are not necessary
and the measure could result in additional cost and closure of clinics. Vice
President De Luca stated $86.3M has been invested in the measure.
Council Member Cormack asked why the governor was against Proposition 30.
Vice President De Luca said the Mayor finds it a matter of one company
attempting to benefit as opposed to something needed statewide. Prop 30
requires taxpayers to pay an additional tax of 1.75 percent on income above
$2M. The funds will go into the Clean Cars and Clean Air Trust Fund and will
be invested in electric infrastructure, clean mobility, and to address fires.
Council Member Cormack asked about the funding source for Proposition 28.
Legislative Analyst Shelby said it was new tax revenues from guidelines set
forth by Proposition 98 and comes from taxes from various sources. There is
an education allocation from the general funds for Proposition 98. Council
Member Cormack was unable to support Proposition 28 without further
information about impacts. She voiced support of Measures K and L.
Council Member Stone asked how much the State expects to receive from tax
revenues for Proposition 27. Legislative Analyst Shelby said Proposition 27 is
estimated to bring in $400M to $500M for the homelessness assistance and
prevention fund.
Council Member Stone asked if the profits from the 10 percent tax on
Proposition 26 have to be spent on mental health problems associated with
gambling addiction. Legislative Analyst Shelby said she would look into that
further.
Council Member Filseth said the City should avoid taking positions on bills that do
not have a direct impact on the City. He asked how Lyft makes money on Prop 30
since they are footing the bill and if money is raised, does the City get any. Vice
President De Luca said he could research how Lyft would make money and
said the City could secure funds. Legislative Analyst Shelby said Lyft has a
vested interested in transition to zero-emission vehicles due to California Air
Resources Board regulations.
MOTION: Mayor Burt moved, seconded by Council Member Cormack to
support Measure K and Measure L
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MOTION PASSED: 6-1 Tanaka no
MOTION: Mayor Burt moved, seconded by Council Member Cormack to
support Proposition 1
MOTION PASSED: 7-0
MOTION: Mayor Burt moved, seconded by Council Member Stone to support
Proposition 28
MOTION PASSED: 4-3 Cormack, Filseth, Tanaka No
MOTION: Mayor Burt moved, seconded by Council Member Filseth to support
Proposition 31
MOTION PASSED: 7-0
MOTION: Council Member DuBois moved, seconded by Council Member
Cormack to support Proposition 30
MOTION FAILED: 3-4 Kou, Tanaka, Burt, Filseth No
Council Member Questions, Comments and Announcements
The Cantor Art museum opened a major exhibit of Asian Art and they hope to
be one of the top Asian art museums in the country.
City Clerk Staff was recognized for doing an exceptional job in regard to the
Board and Commission Recognition Event.
Deputy City Clerk Nguyen did a remarkable job filling in for a sick colleague
at the current meeting.
Adjournment: The meeting was adjourned at 10:35 P.M.