HomeMy WebLinkAbout2018-04-16 City Council Summary Minutes (2)CITY OF PALO ALTO CITY COUNCIL
FINAL SENSE MINUTES
Page 1 of 42
Special Meeting April 16, 2018
The City Council of the City of Palo Alto met on this date in the Council
Chambers at 5:08 P.M.
Present: DuBois, Fine, Holman, Kniss, Kou, Scharff, Tanaka, Wolbach
Absent: Filseth
Study Session
1. Earth Day Report 2018.
Gil Friend, Chief Sustainability Manager, was pleased by the enormous
amount of progress in the last year. The goals were to build a healthier,
safer, more sustainable, prosperous and resilient community, to contribute
to meeting the climate challenge and to lead by example. The City was
doing this work in the context of the Sustainability and Climate Action Plan
(S/CAP), which the Council adopted in 2016. The City had reduced
greenhouse gas (GHG) emissions 43 percent from the 1990 baseline. The
Council accepted the 2018-2022 Sustainability Implementation Plan (SIP),
which embedded key elements of the S/CAP into organizational work plans.
The City achieved the first carbon-neutral utility in the United States, implemented a State-leading and Country-leading Green Building Ordinance
and Energy Reach Code and began a pilot program of the Bay Area's first all-
electric refuse collection truck. Electric vehicles (EV) reached the level of
sedans and small vehicles, and more development was occurring in the large
vehicle space. The beta Cool Block Program involved 88 households in
neighborhood cooperation, GHG reduction, and building neighborliness. The
City increased recycled water production by 2 percent and diverted 82
percent of waste from the landfill. The City was awarded the first ever
Beacon Award by the Institute for Local Government for sustainability
achievement. At the Council's direction, Staff focused on carbon dioxide and
water as key issues for the next few years. Four cross-departmental teams
were integrating goals for each area into specific work plans. In 2019, the
remaining natural gas offsets would be finished. Water and natural gas use
actually increased in the last year, probably as a reaction to the drought.
The data for transportation GHG emissions was estimated, but Staff was
attempting to get a tighter calibration that would be more descriptive of the
FINAL SENSE MINUTES
Page 2 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
specific conditions in Palo Alto. Waste diversion numbers had been flat in
the last few years, but Staff believed those would start to move up again in
2018. The City's own efficiency gains for electricity, water, and natural gas
were not as dramatic as the community's. Next steps were to reduce
resource use and resource intensity, to shift technologies or behaviors and
to transform the way things were done. The City needed to maintain its
progress, focus on long-term trends, particularly in the areas of water and
climate and navigate the decline of natural gas and the rise of distributed
energy resources. Staff continued to consider ways to extend efficiency
opportunities to the existing building stock and to align planning with rapid
technology changes. In the next year or two, Staff needed to pay more
attention to the challenges of adaptation and resilience. The City needed to
nurture a learning culture and a sense of curiosity and adventure because no
one had been down this path. Staff and the Council were asked to consider
sustainability and climate action in all plans, analyses and initiatives. He
encouraged the Council and community to be proud of these
accomplishments as they were doing exemplary work.
Council Member DuBois suggested future reports contain more contexts on
some topics and inquired whether the electric garbage truck pilot program
was successful.
Phil Bobel, Public Works Assistant Director advised that Staff needed more
time to evaluate it. The truck could not travel as far as Compressed Natural
Gas (CNG) vehicles. Staff needed a year's worth of data to accurately
assess it. The initial cost was substantially higher than other trucks. Most
people commented that it was less noisy.
Mr. Friend added that there had been enormous growth in EV adoption by transit fleets. Prices had decreased dramatically in the last few years. The
City prioritized EVs first, plug-in hybrids second, and hybrids next with
consideration of economics and duty cycles.
Council Member DuBois asked if Staff was looking at the energy used to
produce the City's water supply.
Mr. Friend indicated Staff had not measured energy use per gallon of water,
except for energy use and GHG emissions for the Water Quality Treatment
Plant.
Karla Dailey, Senior Resource Planner reported the Hetch Hetchy water
system was gravity-fed and had very little energy associated with it.
Council Member DuBois inquired about any treatment of drinking water that
used energy.
FINAL SENSE MINUTES
Page 3 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Ms. Dailey clarified that a small amount of energy was used in the treatment
of water.
Mr. Friend articulated the biggest challenge with water was readiness for
coming droughts and long-term climactic shifts. Everyone had to learn how
to get by on a different water regime over the next several decades.
Council Member DuBois felt the City was lagging behind other cities in the
number of EV chargers and suggested a useful Key Performance Index (KPI)
would be a comparison of Palo Alto's progress to surrounding cities'
progress.
Mr. Friend disclosed that the City had substantially increased the number of
EV chargers on City property. The challenge was understanding the rate at
which chargers should be installed.
Ed Shikada, Assistant City Manager indicated Staff was exploring the
appropriate level of involvement from the City versus private property
owners for installation of EV chargers.
Mr. Friend added that Staff was looking at ways to facilitate and encourage
private owners to move forward as quickly as possible.
Council Member Holman inquired about improvements in diverting food from
landfills to nonprofit organizations and food closets.
Mr. Bobel explained that food waste had two components: diverting food
before it spoiled and composting food after it spoiled. The County of Santa
Clara (County) programs would be more appropriate than local programs for
diverting food before it spoiled. The City participated in County programs.
Phase I of the City's Ordinance required restaurants and grocery stores to
collect food for composting in green containers; 100 percent of restaurants
and grocery stores were participating. Phase II was enforcement, which was just beginning.
Council Member Holman asked if Staff considered reducing garbage pickup.
Mr. Bobel advised that State law required garbage pickup once a week.
Council Member Holman suggested a program for all carts to be placed on
one side of the street so that trucks made only one trip down each street.
She requested an update regarding the City's program for salvage of
construction materials.
Mr. Bobel reported the Council enhanced the Construction and Demolition
(C&D) Ordinance to require the demolition component. As part of the 2018
FINAL SENSE MINUTES
Page 4 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Zero Waste Plan, the Ordinance required items eligible for salvaging to be
salvaged. In general, a very small percentage of construction material was
salvageable. Almost 0 percent of commercial construction material was
salvageable due to energy requirements for materials. Staff focused on
deconstructing buildings because the worst outcome was more material
would be recycled. The Ordinance included deconstruction with the
understanding that most material would not be salvaged, but more material
would be recycled. Staff hoped to bring the Ordinance revision to Council
late in 2018.
Mr. Friend added that the technical advisory group for the Green Building
Code would be reviewing C&D waste in conjunction with the work Mr. Bobel
described.
Council Member Holman stated another benefit of deconstruction was a very
good education for contractors because they would see the quality of
materials.
Mr. Bobel related plans to release a Request for Proposals (RFP) to
deconstruct two City structures.
Council Member Holman requested future reports include GHG impacts of
urban trees, number of new trees, net loss or gain of trees in a year, and
energy consumed in pumping groundwater. Data for transportation
emissions would be better if Staff tracked Transportation Demand
Management (TDM) programs.
Mr. Friend clarified that Staff had data on trees but was unsure whether it
was included in the Report.
Council Member Kou requested clarification of upgrade existing building
stock.
Mr. Friend replied energy and water efficiency upgrades rather than
redevelopment. The City promulgated energy efficiency standards for new
construction and major renovation, but that touched only 1-2 percent of the
building stock each year. Palo Alto Utilities programs provided education
and rebates to upgrade. Staff was investigating other things that would
encourage the pace of change, in particular programs in the Netherlands
that had done fairly intensive upgrading of existing structures.
Council Member Kou inquired about an Ordinance for commercial
dewatering.
FINAL SENSE MINUTES
Page 5 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Mr. Bobel disclosed that Staff intended to present a requirement that all
large commercial facilities install a cutoff wall or secant wall, but Staff
needed to consider whether that would be wise in all cases because there
could be environmental consequences. Staff planned on conducting an
environmental analysis, which could took six months, and returned to the
Council with findings probably in 2019.
Council Member Kou supported Council Member Holman's comments
regarding trees. She requested future Reports include tree canopy as part
of infrastructure and plans for trimming and watering trees.
Mr. Friend provided the current data for trees and agreed to include it
explicitly in future Reports.
Council Member Scharff asked about offsets for natural gas.
Mr. Friend noted the offset program began July 1, so natural gas emissions
for the City and community were not offset for the entire year.
Council Member Scharff inquired whether GHG emissions from transportation
would be the only remaining category.
Mr. Friend clarified that a small amount related to wastewater would remain.
The challenge of reducing GHG from transportation was the City could not
control all transportation.
Council Member Scharff inquired regarding the method of accounting for EV
penetration.
Mr. Friend stated the current model did not account for EVs because the
model used regional data. Staff needed a different analysis because Palo
Alto's rate of EV adoption was different from surrounding communities. He
was talking with the City Manager about an RFP to invite experiments with
different analyses.
Council Member Scharff remarked that there was no way to measure the
City's progress without including EV penetration.
Mr. Friend reported Staff could show EV penetration itself but could not show
its impact on GHG.
Council Member Scharff assumed buildings could be deconstructed without
adding a high cost.
Mr. Bobel explained that plans to deconstruct two buildings included
determining the added cost.
FINAL SENSE MINUTES
Page 6 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Council Member Scharff requested an order of magnitude on a percentage
basis.
Mr. Bobel believed the additional cost could be 25 percent or more.
Council Member Scharff would probably not support an Ordinance that
increased the cost by 25 percent because people in Palo Alto would not want
to pay an extra 25 percent.
Mr. Bobel advised that any proposal to Council would include the financial
aspect. A proposed Ordinance could exempt residential construction and
target large commercial construction. There were many good examples of
deconstruction in the commercial sector.
Council Member Scharff was not opposed to deconstruction but wanted to
balance the benefits with the cost.
Mr. Friend commented that deconstruction costs could decrease as processes
were streamlined and scaled. In many areas, the question was: when was it
appropriate for the City versus the State to take action.
Council Member Scharff was pleased with the thoughtful response to the
question on commercial dewatering. It was important to understand the
environmental and cost impacts.
Mayor Kniss asked if the data reflected the amount of road travel or the
amount of GHG emissions.
Mr. Friend answered the GHG emissions from road travel.
Mayor Kniss inquired whether she should be pleased with the data.
Mr. Friend stated he should be pleased overall but concerned about road
transportation. Projections for residential and commuter EVs were going up.
Approximately 4-5 percent of the vehicle fleet in Palo Alto was electric.
Approximately 20 percent of cars purchased by Palo Alto residents were electric. The City had limited control over inbound commuter vehicles, which
generated probably 80 percent of emissions, except to the extent the City
could influence workplaces to install charging capacity. Staff was working to
reduce Single-Occupancy Vehicle (SOV) trips by making it easier not to
drive. Results from the strategy were apparent but could not be measured
in terms of GHG yet.
Council Member Fine noted the rebound on water usage since the drought
and asked if Staff considered a posture of perpetual drought.
FINAL SENSE MINUTES
Page 7 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Ms. Dailey explained that the City along with water agencies were moving
toward making conservation a way of life through emphasizing water as a
valuable resource and reminding people of permanent water restrictions and
programs to save water.
Council Member Fine concurred with Council Member Holman's comments
regarding data for transportation uses. Staff needed to figure out how to
measure that as it was the largest emission source and would provide details
about transportation patterns. Few solutions provided the bang for the buck
that the beta Cool Block Program did. Road travel was the area where the
City could make a difference. The SIP process was appropriate for City
operations. Perhaps it was more like a capital improvement project in order
to solidify the S/CAP. He inquired about ideas to implement SIPs in Council
decision-making and process.
Mr. Friend reported Staff teams will focus on embedding SIPs in
organizational processes during the year.
Council Member Fine suggested Staff Reports include SIP impact much like
financial or resource impact. Community engagement and discussion around
each SIP solidified ideas as things the City could accomplish.
Mr. Friend added that it would also help Staff take a more systemic view and
find additional opportunities for accomplishments.
Council Member Fine suggested Staff focus on areas where the opportunity
for change was greatest.
Council Member Wolbach emphasized road travel as the largest climate
impact. Investment in reducing road travel of residents and inbound
commuters was best.
Mr. Friend remarked that the City could not reach its 80 percent goal without a big shift in road travel.
Council Member Wolbach stated the City needed to invest in providing
alternatives for people to get out of their cars. The shift in teenagers biking
to school was good. The Downtown Transportation Management Association
(TMA) and SRPGo were beginning to make progress in reducing vehicle trips
of inbound commuters. Staff needed to elevate and institutionalize review of
road travel. Perhaps Staff Reports needed to include climate impact. He
asked if staffing for the Office of Sustainability and the number of Staff
focused on sustainability was at the appropriate level.
FINAL SENSE MINUTES
Page 8 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
James Keene, City Manager indicated Staff had to balance resources with
achievements. The SIP was developed with sustainability Staff and the goals
within that were connected to the capacity available at that time. Staff
looked at a general intent to call out climate impact where they were aware
of significant impacts.
Council Member Wolbach remarked that sea level rise and climate change
were serious challenges because a large portion of the City was located in
the flood zone. He supported further attention to the issues in long-term
planning.
Mr. Keene reported new models incorporated sea level rise and subsidence
in the Bay Area, and results from models accelerated the timeframe for
impacts.
Mr. Friend noted one of the ten chapters of the S/CAP concerned sea level
rise and adaptation. A substantial risk analysis was conducted as part of
developing the S/CAP. While Staff focused on energy, EVs, mobility and
water, activity for all chapters was underway.
Mr. Bobel added that Staff was developing a sea level rise policy for Palo
Alto.
Bruce Karney, Chair of the Mountain View Environmental Sustainability Task
Force commented that the climate will be different in the future. He was
frustrated by the speed of governments to address critical challenges. More
staff equaled more progress.
David Coale suggested the City focus on infrastructure projects that would
reduce GHG.
Ken Joye hoped public messages about Ross Road bike infrastructure did not
affect the Council's commitment to reducing GHG. He urged the Council to continue bike infrastructure projects already approved by Council.
Special Orders of the Day
2. Junior Girl Scout Troop 60016 “Bronze Award” Project Declaring May
as “Plastic Straw Awareness Month.”
Karen Fitzpatrick, Troop Leader thanked the Council for allowing the Girl
Scouts to present their information.
Charlotte Qian, Madeline Fitzpatrick, Salma Ghori, Lia O'Donovan, Sophia
Howell and Riley each shared information about the Troop, statistics
regarding use of plastic straws and the harm caused by plastic straws, plans
FINAL SENSE MINUTES
Page 9 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
for their project including community outreach, shared a video, and
mentioned restaurant and school participation, and mentioned the names of
community partners.
Michaela Fogarty stated plastic straws contribute to the global plastic
contamination and impact ecosystems and human health. Some cities
banned or limited the use of plastic straws. Palo Alto banned plastic bags,
and banning plastic straws was the next step.
Mayor Kniss requested the Girl Scouts inform the Council regarding
restaurant usage of paper straws and which paper straws were sturdy.
Council Member Holman requested Staff prepare a Proclamation for Plastic
Straw Awareness Month.
Molly Stump, City Attorney advised that Staff could place a Proclamation on
the Council's Consent Calendar.
Council Member Holman suggested Staff consult with the Girl Scouts in
preparing the Proclamation and notify the Girl Scouts of the date the
Proclamation would be presented to the Council.
Ms. Stump agreed to do so.
Council Member Wolbach thanked the Girl Scouts for the paper straw.
Mayor Kniss commended the Girl Scouts and their leadership for their
efforts.
Agenda Changes, Additions and Deletions
None.
City Manager Comments
James Keene, City Manager reported Waymo announced its intention to file
an application for a State permit to test driverless vehicles in Palo Alto,
Mountain View, Sunnyvale, Los Altos and Los Altos Hills. Waymo intended to work with Police and Transportation Departments on safety protocols. Staff
anticipated testing would begin in the next few months and would notify the
Council and community regarding the exact deployment schedule. The
approval recommended in Agenda Item Number 4 applied to agreements
with the State for funding eligibility or receipt of funding under Senate Bill
(SB) 1. The item did not authorize Staff to proceed with construction of the
Charleston-Arastradero project. The first American since 1985 won the
Boston Marathon. Vice Mayor Filseth completed the Tsuchiura Marathon in 4
FINAL SENSE MINUTES
Page 10 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
hours 25 minutes. The Great Race to Save Water was held on Saturday with
more participants than in prior years. The Public Art Program invited the
community to meet Toby Fraley, artist of Artwork Forge, on April 25 in King
Plaza. The deadline to apply for the Historic Resources Board and the
Human Relations Commission was April 23 at 4:30 P.M.
Mayor Kniss noted Palo Alto residents participated in the Tsuchiura Marathon
in 2017 as well as 2018.
Oral Communications
Ken Horowitz reaffirmed his commitment to Palo Alto adopting a tax on
sugar-sweetened beverages. Many organizations supported a tax. He had
spoken with the City of Berkeley regarding collection of its Sugar-Sweetened
Beverage Tax.
Mayor Kniss inquired about the amount of revenue collected from the City of
Berkeley's tax and use of the tax revenue.
Mr. Horowitz advised that the City of Berkeley collected $1.5 million, which
supported the school district, the YMCA and some other organizations.
Sea Reddy suggested providing incentives for not drinking sugar-sweetened
beverages. The Police Department handled an incident at Starbucks very
well.
Minutes Approval
3. Approval of Action Minutes for the March 19 and April 2, 2018 Council
Meetings.
Council Member Kou requested clarification of the corrected Minutes.
Beth Minor, City Clerk advised that the title of the original Report listed the
incorrect Minutes. Staff presented the corrected report title with the correct
Minutes.
MOTION: Council Member Scharff moved, seconded by Council Member
Wolbach to approve the Action Minutes for the March 19 and April 2, 2018
Council Meetings.
MOTION PASSED: 7-0-1 Kou abstain, Filseth absent
FINAL SENSE MINUTES
Page 11 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Consent Calendar
MOTION: Council Member Holman moved, seconded by Council Member
Kou, third by Council Member Tanaka to pull Agenda Item Number 6 -
Approve and Authorize the City Manager or his Designee to Execute a
Contract With AECOM … to be heard as Agenda Item Number 8A.
Penny Ellson spoke regarding Agenda Item Number 4 and asked the Council
to adopt the list of projects. Many of the final improvements facilitated
better operations and improved safety. Completing the project prior to
grade separation was critically important to maintaining safety and
operations for all road users.
MOTION: Council Member Tanaka moved, seconded by Council Member
Kou, third by Council Member XX to pull Agenda Item Number 8 - Adoption
of a Resolution Opposing a Potential November 2018 Ballot Measure … .
MOTION FAILED DUE TO THE LACK OF A THIRD
Council Member Tanaka registered a no vote on Agenda Item Number 8.
Council Member Kou registered a no vote on Agenda Item Number 8.
MOTION: Council Member Scharff moved, seconded by Council Member
Wolbach to approve Agenda Item Numbers 4-5, 7-8.
4. Two Resolutions: Resolution 9750 Entitled, “Resolution of the Council
of the City of Palo Alto Authorizing the City Manager or his Designee to
Sign Related Agreements for Transportation Projects;” and Resolution
9751 Entitled, “Resolution of the Council of the City of Palo Alto for SB
1 Fiscal Year 2019 Project List for Capital Improvement Program
Project PE-13011, Charleston-Arastradero Corridor Project.”
5. Approval of Three Contracts With: 1) Delta Dental for Dental Claim
Administration; 2) Vision Service Plan for Vision Claim Administration and Fully Insured Vision Plan; and 3) Life Insurance Company of North
America (CIGNA) for Underwriting of the City of Palo Alto’s Group Life,
Accidental Death and Dismemberment (AD&D), and Long Term
Disability Insurance (LTD) Plans for Three Years for Each Contract.
6. Approve and Authorize the City Manager or his Designee to Execute a
Contract With AECOM in the Railroad Grade Separation and Safety
Improvements Project (PL-17001) in an Amount Not-to-Exceed
$1,278,660 for Planning, Community Engagement, Engineering, and
Environmental Analysis Services Related to Railroad Grade Separations
FINAL SENSE MINUTES
Page 12 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
(the "Connecting Palo Alto" Program), Subject to Authorization of
Individual Task Orders When Funding is Available.
7. Park Improvement Ordinance 5434 Entitled, “Ordinance of the Council
of the City of Palo Alto for Replacement of the Baylands Boardwalk
(PE-14018) (FIRST READING: April 2, 2018 PASSED: 8-0 DuBois
Absent).”
8. Resolution 9752 Entitled, “Resolution of the Council of the City of Palo
Alto Opposing a Potential November 2018 Ballot Measure: The Tax
Fairness, Transparency, and Accountability Act of 2018.”
MOTION FOR AGENDA ITEM NUMBERS 4-5, 7 PASSED: 8-0 Filseth
absent
MOTION FOR AGENDA ITEM NUMBER 8 PASSED: 6-2 Kou, Tanaka no,
Filseth absent
Council Member Tanaka remarked that the ballot measure was intended to
create transparency and accountability of city government spending. The
Council opposing the measure without discussion was not right.
Council Member Kou felt the Council and community should understand
ballot measures through discussion of them, which was her intention in
supporting removal of the item from the Consent Calendar.
Mayor Kniss learned that the ramifications of the ballot measure for local
governments were extreme.
James Keene, City Manager reported the Resolution followed general
directives from the City Council. Two key points in the Resolution were the
ballot measure would allow businesses to escape from existing obligations to
pay the full cost of services they requested and received from local
government and the ballot measure could shift the burden of those uncovered costs to local General Funds. In addition, the proposed ballot
measure was not a measure of fairness but placed a minority of voters in
control of public decision-making, which negated the fundamental practice of
majority rule.
Council Member Tanaka reiterated the issue of the Council not discussing the
ballot measure.
Action Items
8A. (Former Agenda Item Number 6) Approve and Authorize the City
Manager or his Designee to Execute a Contract With AECOM in the
FINAL SENSE MINUTES
Page 13 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Railroad Grade Separation and Safety Improvements Project (PL-
17001) in an Amount Not-to-Exceed $1,278,660 for Planning,
Community Engagement, Engineering, and Environmental Analysis
Services Related to Railroad Grade Separations (the "Connecting Palo
Alto" Program), Subject to Authorization of Individual Task Orders
When Funding is Available.
Mayor Kniss asked if she could run the meeting even though she was
recused from the item.
Molly Stump, City Attorney responded no. When the item was a part of the
Consent Calendar, Mayor Kniss could run the meeting.
Mayor Kniss advised she would not participate in this Agenda Item because
she owned real property within 500 feet of the Caltrain Rail Corridor.
Council Member DuBois advised he would not participate in this Agenda Item
because he lived within 500 feet of the Caltrain Rail Corridor.
Mayor Kniss and Council Member DuBois left the meeting at 7:05 P.M.
James Keene, City Manager reported Staff was without consultant
assistance. The schedule was driving towards a recommendation before the
Council's break in July with two meetings at the City Council Rail Committee
(Committee) and two meetings at Council. Staff needed a positive Council
decision.
Council Member Holman voiced two concerns. Mr. Borock's email regarding
conflict of interest raised significant concerns. It seemed the engineering
firm would handle public presentation and outreach. From her observation,
the public meetings were not effective.
Mr. Keene advised that Circlepoint and Mott MacDonald previously worked
on community engagement. After their departure, Staff searched for a firm with proven experience in the environment and with very strong
communications and community-engagement experience in the Rail
Corridor. Staff specifically chose AECOM because of their experience.
Ms. Stump confirmed that retaining the firm was not a conflict of interest.
Council Member Holman wished to understand the rationale behind the
determination of no conflict of interest.
Ed Shikada, Assistant City Manager explained that the scope of work
contained in the Request for Proposals (RFP) stated the individuals involved
with the project would not be involved directly with California High Speed
FINAL SENSE MINUTES
Page 14 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Rail (HSR), effectively creating a firewall between parties supporting the City
of Palo Alto and those supporting HSR.
Council Member Holman was not comfortable with the firewall approach
because individuals within a firm would not work on the City's project, but
individuals of the firm would work on HSR's project.
Mr. Keene reiterated the lack of a legal conflict of interest. It was good to
know the nature of the conflict that was causing concern. Staff went an
extra step to ensure consultant staff who worked with the City would not
work on HSR issues. In addition, the number of firms in California with the
desired experience was small.
Mr. Shikada revealed that Mott MacDonald was the only firm that could fulfill
the criteria of the original RFP. As a result, Staff felt the more limited
separation complied with City goals and recognized the existing expertise
within the field.
Ms. Stump emphasized that ethical and legal considerations for a law firm
were nuanced and special. Merely having two clients interested in the same
issue was not typically grounds for a recusal of the entire firm. Often
representation of two clients was handled through the creation of a screen.
The situation was different if the two parties were in litigation, but the City
was not involved in litigation with HSR. The issues were disclosing and
managing the potential conflict and obtaining competent, professional work.
Council Member Holman inquired about the consequences if litigation
between the City and HSR evolved.
Ms. Stump advised that all City contracts contained a termination for
convenience clause, which allowed the City Manager at any time to end the
contract quickly. If the City and HSR were involved in a formal dispute and Staff felt the dispute compromised the work of the consultant, Staff would
end the consultant's work right away.
Council Member Kou wanted Staff to provide more updates regarding
Committee actions to the Council and asked about a schedule for updating
the Council.
Mr. Keene advised that the Committee could have some preliminary
thoughts and recommendations after its meeting during the week, which
was the reason for a discussion with Council in early May. Discussion of
grade separations was moving into a phase of Committee action and Council
review.
FINAL SENSE MINUTES
Page 15 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Council Member Kou believed more members of the public would hear an
update if it was presented at a Council meeting. She inquired whether
Circlepoint was the community engagement consultant.
Mr. Shikada responded no, Circlepoint was the prior contract. In the current
contract, Apex Strategies was the community engagement subcontractor.
Council Member Kou requested the names of other cities with which Apex
Strategies had worked.
Mr. Shikada responded with the City of Menlo Park, City of Burlingame, City
of Fremont and others. The team had been directly involved with cities
along the corridor in the type of work the City sought.
Council Member Tanaka requested the number of proposals submitted in
response to the RFP.
Mr. Shikada answered one.
Council Member Tanaka asked if there were deficiencies in Mott MacDonald's
work.
Mr. Shikada indicated, based upon Council direction and community
feedback, Staff reviewed the scope of work and issued a second RFP.
Council Member Tanaka inquired about the difference in cost between Mott
MacDonald's contract and AECOM's contract.
Mr. Shikada did not have a direct comparison given that the scopes of work
were different.
Council Member Tanaka requested the amount of Mott MacDonald's contract.
Mr. Keene seemed to recall the original Mott MacDonald contract was around
$1 million.
Council Member Tanaka suggested Staff provide the cost of original
contracts and the delta and changes in scope of work in future Staff Reports. He disputed the proposed cost for building a website. The Council did not
have sufficient information to determine whether the contract was
appropriate.
Mr. Keene reported the Mott MacDonald contract was $1.2 million with
$800,000 left in the contract. The cost of the current contract was similar to
the original contract cost.
FINAL SENSE MINUTES
Page 16 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Council Member Tanaka clarified that the total cost was $400,000 for Mott
MacDonald and $1.3 million for AECOM.
Mr. Keene noted the Council had not considered the experiential quality of
what the City was getting. The scope of work in and of itself did not
necessarily capture outcome and performance.
Council Member Tanaka understood the need to change vendors in order to
improve the quality of work. He reiterated the Council's need for complete
information in order to make responsible decisions for expending funds
wisely.
Mr. Keene suggested there could be qualitative differences as well as
quantitative differences between contracts. Council Member Tanaka's point
was well taken.
Council Member Fine remarked that finding a solution to grade separation
issues was a top priority. Due to public discontent with community
engagement, Staff decided to change consultants, which was approved by
the Committee. The Council had an obligation to engage the community,
obtain valid feedback, and incorporate it into decision-making. AECOM was
preeminent in this type of work. The schedule to complete the project by
2028 was aggressive; each delay would negatively affect traffic and the
experience of Palo Alto residents. Soon Caltrain would begin doubling and
tripling the number of trains passing through Palo Alto. The City needed to
spend funds for engineering, engagement, and design work to find solutions.
MOTION: Council Member Fine moved, seconded by Council Member
Wolbach to approve and authorize the City Manager or his designee to
execute a contract in the Railroad Grade Separation and Safety
Improvements Project (PL-17001) in an amount not to exceed $1,278,660 for planning, community engagement, engineering, and environmental
review services associated with the Connecting Palo Alto project to grade-
separate Caltrain crossings in Palo Alto subject to authorization of individual
task orders when there is funding available.
Council Member Fine encouraged the Council to support the Motion. The
Committee had reviewed the information and recommended it to Council.
Council Member Wolbach disclosed that the Committee had not eliminated
any options. Continued community engagement about the severity of traffic
congestion was important. Delaying the schedule would be disastrous; but
getting the decision right was critical. Having consultant assistance was
imperative. Council Members' concerns were valid and had been adequately
addressed.
FINAL SENSE MINUTES
Page 17 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Council Member Holman requested Staff's thoughts about receiving only one
response to the RFP.
Mr. Shikada clarified that the scope of work pertained to the Caltrain
Corridor specifically. The consultant team had been involved with the
majority of active projects along the Caltrain Corridor. He had no idea why
the City received only one response to the RFP. Perhaps other firms were
more heavily engaged with HSR.
Council Member Holman inquired whether there was sufficient Staff and Staff
expertise to manage this project.
Mr. Keene noted the number of vacant positions in the Transportation
Division. Managing this contract was not an issue; the issue was the range
of projects under Transportation's supervision. This firm's expertise and
capacity dramatically enhanced Staff's ability to support the Council's
Priority. Staff was not able to meet the Council's schedule without the
consultant's assistance. The schedule anticipated constructing the actual
grade separation improvements by 2028.
Council Member Holman stated the firm's work with Menlo Park was a point
in its favor. The Council needed to give serious thought about Staff who had
experience working with rail. Having this done by the end of the year was
impossible. She supported the Motion with her stated caveats.
Council Member Kou felt community engagement was important because of
the schedule. She hoped Apex Strategies had the necessary experience to
guide the community.
Council Member Tanaka requested the name of the contractor working with
Mountain View and Sunnyvale.
Mr. Shikada did not know.
Council Member Tanaka suggested Staff could have asked the contractor for
Mountain View or Sunnyvale to bid if it was not Apex.
Mr. Shikada articulated that the appropriate Staff would have been present if
the City Manager had known the item was going to be removed from the
Consent Calendar.
Council Member Tanaka inquired about the rationale for not retaining Mott
MacDonald and obtaining a new subcontractor for community engagement
only.
FINAL SENSE MINUTES
Page 18 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Mr. Keene reported Staff felt it was important to move in a new direction in
order to support the Council's policy direction and goals. The City was not
going to achieve the desired level of communication, understanding, and
partnership with Mott MacDonald.
Council Member Tanaka commented that Council Members not on the
Committee had no input on changing firms. Reasons for changing firms
should have been contained in the Staff Report. He asked if tasks were
performed sequentially or in parallel.
Mr. Shikada explained that the Committee was in the process of narrowing
the list of alternatives. In parallel, a number of technical studies were to be
conducted.
Council Member Tanaka had heard from the community the need to
minimize eminent domain. He inquired whether the financing plan included
the impact of taking homes.
Mr. Shikada indicated the financing plan was more a product of civil
engineering design that would identify the range of various alternatives and
the likely impact on adjacent properties.
Mr. Keene noted criteria had been established for evaluating alternatives. A
key one was feedback from the community with respect to eminent domain.
Once the Council selected four to eight alternatives in June, the consultant
needed to conduct in-depth studies over the next six months to provide
more information about the specific impacts of the projects.
Council Member Tanaka reiterated the need to understand the financial
impacts in such a big decision. Trying to take 80-100 homes near
intersections was going to result in litigation, which would cost money. The
City had to pay fair market value, if not more, for properties, which would cost money. The total cost of the different options had to be more than just
the digging and pouring concrete. He asked if the estimate included all
costs.
Mr. Shikada clarified that the civil engineering cost covered the work needed
to define which properties might be impacted by different alternatives. That
work needed to happen in order to know whether there were property
impacts, which would inform the Council's decision-making in consultation
with the community.
Council Member Tanaka asked if the cost analysis would include the eminent
domain cost.
FINAL SENSE MINUTES
Page 19 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Mr. Shikada stated Staff understood and agreed with the desire to minimize
property acquisition overall much less by eminent domain. He said Staff
would work with the professional team to present alternatives that
minimized eminent domain.
Council Member Tanaka inquired whether the Council would receive the total
cost of options at the end.
Mr. Keene disclosed that the scope of work that Staff was charged to support
would have to provide all the information Council needed under the different
criteria.
Mr. Shikada added that real estate appraisal costs were not part of the scope
of work.
Council Member Tanaka wanted to know how the total cost would be done.
Mr. Keene advised that the Committee had been very clear that cost was a
defining criterion because different people emphasized different criteria;
Staff could not present the cost only.
Council Member Tanaka related that a financial analysis would reveal
feasible and infeasible alternatives. A comparison of alternatives, he
thought, may not be accurate if the true cost was unknown.
Mr. Keene suggested those discussions could be more effective when Council
reviewed alternatives in detail and Staff and consultants were available to
answer questions.
Council Member Tanaka asked if the Council would have the total cost for
those discussions.
Mr. Keene reported the total cost would not be known because the process
to narrow the options was iterative. Council was able to narrow the options
without having the level of detail needed to select the final option. The Council needed to direct Staff as to information needed to move to the next
level of decision-making.
Council Member Tanaka questioned whether the Council should provide
additional funds now so that Staff could determine the full cost of each
alternative.
Ms. Stump reported the contract included right-of-way research, which could
require real estate appraisals. She thought that could be done as an add-on
service contract through another means. Staff was prepared to provide an
FINAL SENSE MINUTES
Page 20 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
estimate of the legal cost as she had eminent domain counsel under
contract.
Council Member Tanaka proposed an Amendment to minimize the amount of
eminent domain.
Ms. Stump stated that must be noticed to the public as a policy issue.
Council Member Fine reiterated that the Committee had selected minimizing
eminent domain as a top priority and said this contract and the process to
switch to AECOM was approved by the Committee. Getting contract
proposals early and including the contract delta was helpful.
Ms. Stump related Council rules regarding pulling an item from the Consent
Calendar.
MOTION PASSED: 6-0 DuBois, Filseth, Kniss absent
Council took a break from 8:01 P.M. to 8:11 P.M.
Council Member DuBois and Mayor Kniss returned to the meeting at 8:11 P.M.
9. PUBLIC HEARING: Adoption of an Ordinance (1) Amending Chapter
4.64 (Permits for Retailers of Tobacco Products) of the Municipal Code
to Allow Fees to be set by Ordinance; and (2) Amending the Fiscal
Year 2018 Municipal Fee Schedule to add an Application and Permit
Fee for the Tobacco Retailer Permit Program.
Tim Shimizu, Deputy City Attorney requested Council approval of the
Ordinance to allow fees for the Tobacco Retailer Permit Program (Program)
to be set by Ordinance and of the application and permit fees that would
implement the Program. The County of Santa Clara (County) would
implement and staff the Program.
Public Hearing opened at 8:14 P.M.
Ken Horowitz inquired about the number of tobacco retailers in Palo Alto and whether the City or the County would receive revenues from the Program.
Public Hearing closed at 8:15 P.M.
Molly Stump, City Attorney did not have information regarding the number
of tobacco retailers but said Mr. Bobel could provide the information if Mr.
Horowitz would contact him.
FINAL SENSE MINUTES
Page 21 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Mr. Shimizu explained that fees would be used to pay for County staffing of
the Program.
Council Member Scharff noted the Council made the policy decision for this
action earlier.
MOTION: Council Member Scharff moved, seconded by Council Member
Fine to adopt an Ordinance approving amendments to:
A. Chapter 4.64 of the Municipal Code (Permits for Retailers of Tobacco
Products) to allow fees for the tobacco retailer program to be set by
Ordinance; and
B. The Public Works section of the Municipal Fee Schedule for Fiscal Year
2018 to add fees related to the City’s tobacco retailer permit program.
MOTION PASSED: 8-0 Filseth absent
10. PUBLIC HEARING: Staff Requests Council: (1) Approve a Golf
Management Agreement and Restaurant License Agreement With OB
Sports for 39 Months in an Amount Not-to-Exceed $9,008,000; (2)
Approve a Budget Amendment in the General Fund; (3) Adopt an
Ordinance Amending the Fiscal Year 2018 Municipal Fee Schedule to
Amend Golf Fees; (4) Amend the Management Agreement and a Lease
With Brad Lozares to Increase the Not-to-Exceed Amount by $40,000
and Amend Both Terms to end April 17, 2018; (5) Amend the Lease
With Hee King Bistro to Waive Lease and Utilities Payments of $45,633
and Authorize Buy-Back of Inventory/Liquor License Not-to-Exceed
$48,311.
Rob de Geus, Deputy City Manager announced the golf course was ready to
reopen as the Palo Alto Baylands Golf Links. Supporting documents for
Number 5 of the Staff recommendation were not ready; therefore, Staff requested the Council agree to the terms as written and authorize the City
Manager to execute the Amendment. The golf course was an important
recreational asset for the City since it opened in 1956. The new design
transformed the course from a flat and straight parkland course to a link-
style course more in keeping with the Baylands environment. Major
construction began in August 2016 and included a new restroom facility.
The challenges of a link-style golf course included more natural areas,
uneven fairways and thick rough and windy conditions. The golf course was
more environmentally sensitive. With the new design, potable water use
was reduced by approximately 35 percent, and 55 acres of new wetlands
were created. The new turf withstood a significantly higher percentage of
recycled water. OB Sports was an innovative and comprehensive golf
FINAL SENSE MINUTES
Page 22 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
operator with a boutique management approach. Staff selected OB Sports
for its experience, highly skilled golf management approach, passion and
Operating Plan. If approved, OB Sports was going to manage all services at
the golf course. Staff received five bids, interviewed each bidder, and
preferred OB Sports based on its experience, proposal, interview and
references.
Jazmin LeBlanc, Senior Management Analyst reported Staff structured the
agreement with OB Sports as two contracts: one for course operations and
one for the restaurant. Terms of both contracts minimized costs for the City
and encouraged risk sharing. The management agreement for golf
operations set fixed expenses. If revenues did not meet expectations, costs
could be reduced through the Fiscal Year 2020 budget. The operations
contract included a revenue-sharing component. OB Sports' revenue target
was $3.2 million for Fiscal Year 2019. For every dollar that OB Sports
exceeded the revenue target, OB Sports retained 20¢. The restaurant lease
agreement reduced City risk. Both contracts had terms of three years. With
one contractor, Staff expected booking tee times to be easier, receipt of
daily, weekly and monthly data about customers, 70,000 golf rounds,
dynamic pricing and implementation of a loyalty card program. In Fiscal
Year (FY) 2019, Staff anticipated revenues would exceed costs. Staff
proposed a reduction of the Fiscal Year 2018 revenue target of $1.3 million.
She relayed that Golf course fees varied by residency, time of day, day of
the week, length of advance reservation and course availability.
Mr. de Geus recognized Brad Lozares' loyalty to the City and exceptional job
managing the golf course for more than 30 years. The contract with Mr.
Lozares terminated April 30, 2018 but it contained provisions to purchase pro shop inventory at 90 percent of value and to exchange furniture, fixtures
and equipment for outstanding gift cards and customer credits. Staff
proposed the purchase of Hee King Bistro's liquor license and furniture,
fixtures, and equipment and a waiver of past-due utility payments in the
amount of $45,000. Pre-opening activities occurred over the next month
with a tentative opening day planned for the weekend of Memorial Day.
Public Hearing opened at 8:41 P.M.
Allyson Lozares shared Mr. Lozares' gratitude for the opportunity to work
with the City and to manage the golf course for 36 years. Mr. Lozares
served 5 million customers and mentored 18 golf professionals.
Andrea Gung, speaking for Cecelia of Bay Café requested approval of the
provisions for Hee King Bistro. She appreciated City Staff's working with
her.
FINAL SENSE MINUTES
Page 23 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Craig Allen urged Council Members to walk the course before play began and
to be vigilant in reviewing the budget and maintenance for the golf course.
Public Hearing closed at 8:49 P.M.
Council Member Holman inquired about the maintenance item on Packet
Page 250.
Mr. de Geus explained that the maintenance item was the amount contained
in the budget for Fiscal Year 2017. The prior page contained the Fiscal Year
2018 Budget as adjusted. In the middle of the chart were the expenses of
operating the golf course.
Council Member Holman requested Staff break down the expenses.
Mr. de Geus understood the line item included approximately $1.2 million for
maintenance.
Council Member Holman expressed interest in the calculation of 70,000
rounds of play, including anticipated play time and wait time.
Mr. de Geus indicated Staff felt a four-hour round of golf was possible;
however, much would be learned during the first six months of play.
Council Member Holman asked how many hours of play the total rounds
were based on.
Mr. de Geus did not believe total rounds were based on hours of play. The
estimate was conservative but certainly achievable.
Council Member Holman noted the lack of a greens fee for a senior without a
reward card.
Mr. de Geus indicated a fee was not proposed, but Staff would add one if
necessary.
Phil Green, OB Sports Chief Executive Officer deliberately did not include a
fee for a senior without a reward card. He anticipated most seniors would hold a reward card. With a reward card, seniors had the lowest fee of
anyone. Initially the cost of the reward card was prorated to $49, and the
subsequent cost would be $99. Perks associated with the card would have a
total value greater than $99. In his experience, residents migrated to the
card because of its value.
Council Member Holman expounded on the need for a breakdown of each
category for the public to understand options.
FINAL SENSE MINUTES
Page 24 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Mr. Green advised that the proposed rate structure was very similar to the
existing rate structure. The biggest difference was for the nonresident golfer
and the Bay Area resident golfer. He hoped to get the biggest increase in
revenue from those two groups.
Council Member Holman did not wish to price out golf groups because not all
members of a group were residents.
Mr. Green was familiar with golf groups and assured the Council OB Sports
would take care of them.
Council Member Holman inquired about features that could inspire golfers to
appreciate and respect the natural environment and wildlife while on the
course.
Mr. de Geus envisioned the environmental friendliness setting the golf
course apart from other golf courses. There could be interpretive
opportunities.
Council Member Holman suggested the course be opened at regular intervals
for the public to walk the course and observe nature.
Council Member Scharff inquired whether the golf course would be open to
walking without playing golf.
Mr. de Geus understood Council Member Holman's request as an opportunity
for individuals to walk the course and appreciate the wetlands and native
areas. That would certainly happen prior to the golf course opening.
Council Member Scharff asked if individuals could walk the course at the
current time.
Mr. de Geus replied yes.
Council Member Scharff inquired about hours of operation.
Mr. de Geus answered sun up to sundown. The driving range remained open longer because it had lights.
Council Member Scharff requested the date on which OB Sports would
assume control of the restaurant.
Mr. Green responded May 1 with a tentative open date of May 26.
Council Member Scharff inquired about plans for the restaurant.
FINAL SENSE MINUTES
Page 25 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Mr. Green had plans to replace flooring, to paint, and to introduce new
menus for the restaurant, catering, and banquets. In addition, they were
planning to host small weddings.
Council Member Scharff inquired about the reason for OB Sports not
assuming control of the restaurant on April 17.
Mr. de Geus explained that the current restaurant had banquets and events
scheduled through April. The contract with the current restaurant ended
April 30.
Council Member Scharff inquired whether the City could transfer the liquor
license to a new operator in the event OB Sports no longer operated the
restaurant.
Hamid Ghaemmaghami, Real Estate Manager reported the liquor license
could not be transferred to another location. The City purchased the license
from the current restaurant owner and transferred it to OB Sports. The
proposed contract with OB Sports did not address transfer of the liquor
license back to the City, but Staff could amend the contract for such a
provision.
Mr. de Geus agreed that the City should receive the liquor license and
transfer it to a new operator. Mr. de Geus noted OB Sports' nonverbal
agreement to a contract Amendment.
Council Member Scharff inquired about payment of the utilities waived in the
proposed contract.
Mr. de Geus advised that the General Fund would reimburse the Utilities
Department.
Council Member Scharff requested the amount of the utilities owed.
Mr. Ghaemmaghami indicated the amount was $1,500 a month beginning May 2017 and including April 2018.
Council Member Scharff asked about the consequences for the liquor license
if the City did not purchase it from the current restaurant owner.
Mr. Ghaemmaghami reiterated that the liquor license remained with the site.
If the owner did not work with the City to transfer the license, then the City
would have to apply for another liquor license. The license process required
four to six weeks.
FINAL SENSE MINUTES
Page 26 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Council Member Scharff inquired whether the furniture, fixtures and
equipment would be used and if the content of the liquor inventory was
known.
Mr. Ghaemmaghami responded yes. The items being purchased were based
on an appraisal and a dollar number.
Council Member Scharff requested the amount of the appraisal.
Mr. Ghaemmaghami replied a little more than $38,000.
Council Member Scharff asked if OB Sports would utilize the furniture,
fixtures and equipment.
Mr. Green replied yes.
Council Member Scharff inquired about down time for the restaurant.
Mr. de Geus indicated there would be some time to paint and replace
flooring.
Council Member Scharff did not believe the proposed contract was a good
deal for the City.
Mr. Ghaemmaghami clarified that Staff proposed the terms in order to avoid
any dispute.
Molly Stump, City Attorney reported the proposed contract finalized all
outstanding issues in a situation where the City and the vendors had
financial issues. Staff believed that the proposed terms demonstrated the
City's commercial reasonableness, enhanced the City's reputation and
resolved issues without disputes.
Council Member Scharff asked if the City would receive a general release.
Mr. Ghaemmaghami answered yes.
Council Member Scharff asked if Hee King Bistro was amenable to signing a
general release.
Ms. Stump advised that the final language had not been prepared; therefore,
Staff requested approval of the business terms. The details of the
agreement were delegated to the City Manager. Staff understood Council
direction for the agreement to include a release of any claims.
FINAL SENSE MINUTES
Page 27 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
MOTION: Council Member Scharff moved, seconded by Council Member
DuBois to:
A. Approve and authorize the City Manager or his designee to execute an
Agreement with OB Sports in an amount not to exceed $9,008,000 for
golf management services on course, at the driving range, at the Golf
Shop, and surrounding areas of the Palo Alto Baylands Golf Links
(formerly the Palo Alto Municipal Golf Course) for the term of April 16,
2018 through June 30, 2021;
B. Approve and authorize the City Manager or his designee to execute an
Agreement with OB Sports for OB Sports to provide food and beverage
services under a license arrangement for the term of April 16, 2018
through June 30, 2021 and OB Sports to pay a minimum of $132,013
which is subject to mutual increase based on net revenue
expectations, including language that the associated liquor license be
transferred to an operator of the City’s choice at no charge to the City,
upon contract termination;
C. Amend the Fiscal Year 2018 Budget Appropriation Ordinance for the
General Fund budget by:
i. Decreasing the estimate for revenue from Charges for Service in
the Community Services Department by $1,334,642;
ii. Decreasing the General Fund Budget Stabilization Reserve by
$1,344,642;
D. Adopt an Ordinance amending the FY2018 Municipal Fee Schedule to
change the Community Services Division’s Fees for golf;
E. Amend Professional Services Agreement C3151541A with Brad Lozares
Golf Shop for a change in compensation for an additional $40,000 and amend the term to end on April 17, 2018;
F. Amend Lease Number 211 with Brad Lozares for the Golf Shop to end
on April 17, 2018; and
G. Authorize the City Manager to enter into an agreement to purchase the
Furniture, Fixtures, and Equipment (FF&E) and operating liquor license
from Hee King Bistro in an amount not to exceed $48,311 and absolve
Hee King Bistro of past due lease and utilities payments in an amount
not to exceed $45,633, including a general release.
FINAL SENSE MINUTES
Page 28 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Council Member Scharff remarked that he was pleased with OB Sports as a
contractor.
Council Member DuBois requested Staff provide details of their review of the
proposals.
Mr. de Geus reported Staff received five fee-for-service proposals. OB
Sports was not the highest or the lowest; Troon was the highest. One
proposal was extremely low and appeared to reduce maintenance that Staff
felt was necessary.
Council Member DuBois requested Staff comment regarding increased
expenses during the golf course's first year.
Mr. de Geus indicated there were many setup costs. One of the major costs
was growing the turf, which had been planted as sprigs. In addition, the
City was purchasing the inventory of the pro shop, which Staff did not
anticipate.
Council Member DuBois asked if buying the inventory was typical.
Mr. de Geus responded yes. The City purchased all inventory for the pro
shop and receive all revenue from the sale of inventory. The Council
reviewed the Golf Course Budget each year as part of the budget cycle.
Council Member DuBois asked Staff to comment on ways to fund future
maintenance.
Mr. de Geus recommended setting aside a percentage of net revenues for a
capital reserve as a prudent action. The golf course needed to reimburse
the General Fund for expenditures made during the startup period before
funds were set aside for future capital work.
Council Member DuBois inquired whether the City paid the Utilities
Department for water usage.
Mr. de Geus indicated the golf course paid for water usage and would
continue to do so. In the first year, Staff learned the amount of recyclable
water that could be used for the golf course.
Council Member DuBois questioned whether Hetch Hetchy water or recycled
water with a salinity level equal to potable water could be utilized for the golf
course.
FINAL SENSE MINUTES
Page 29 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Mr. de Geus reported potable water was used for the greens and the practice
facility and a blend of water for the fairways. Hopefully the blend was close
to 100 percent recycled water.
Council Member DuBois clarified that he wanted to know if the City was
contractually bound to use potable water.
Mr. de Geus replied no.
Lam Do, Parks and Golf Superintendent articulated that the fairways could
tolerate a high salinity level. Staff anticipated continued use of potable
water on the greens and the practice areas. Should the quality of recycled
water improve, Staff was able to investigate use of recycled water in place of
potable water.
Council Member DuBois referred to comments in a letter about water costs
and Staff's comments about saving 40 percent. The messages were mixed.
Mr. Do explained that the rates charged for potable water at the golf course
were high compared to other areas throughout the Country. The $200,000
amount was not a reflection of high consumption but of high rates.
Approximately 3.1 acres of turf had to be irrigated with potable water. Palo
Alto rates for irrigation were two to three times the rate of other areas.
Council Member DuBois inquired about the disposition of the equipment the
City purchased.
Mr. de Geus advised that Staff and OB Sports determined which pieces of
equipment could be used and negotiated the contract based on those
thoughts.
Council Member DuBois inquired about golf shop inventory specifically.
Mr. de Geus clarified that all equipment would be used or sold.
Council Member DuBois interpreted the Golf Convergence letter as positive. The letter seemed to imply proposed fees were too low. He asked if Staff
considered higher fees.
Mr. de Geus remarked that Staff would adjust fees within the range
recommended, but the golf course should be accessible to a variety of
people. The fees were comparable to the local market.
Council Member DuBois requested OB Sports comment on the level of
greens fees.
FINAL SENSE MINUTES
Page 30 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Mr. Green supported the rate proposal based on his experience of bringing
new courses into the market. There was plenty of room to meet or exceed
the suggestion that rates were low.
Council Member DuBois inquired whether fees could increase higher than
those shown in the Report.
Mr. Green explained that the highest rate was a not-to-exceed rate.
Council Member DuBois asked if OB Sports would request a higher rate in a
year if demand justified a higher rate.
Mr. Green advised that rates could increase in much less than a year if
demand was at that level while maintaining an affordable rate for residents.
Council Member DuBois inquired about ownership of data obtained through
tracking golfers and information.
Mr. Green indicated the City owned the data.
Council Member Holman inquired about current Staff remaining at the golf
course under OB Sports.
Mr. de Geus had encouraged OB Sports to retain staff, but the City could not
dictate retention of staff. OB Sports was interviewing current staff.
Council Member Holman asked if OB Sports intended to hire current staff.
Mr. Green answered absolutely. All maintenance, food and beverage, and
golf Staff with the exception of one would be offered employment the
following day. The Golf Superintendent chose not to accept employment.
Council Member Holman suggested the golf course be open for the public to
walk four days a year.
Council Member Fine shared Council Member Scharff's concerns regarding
end-of-contract payments. He agreed with the terms, but they should have
been contracted proactively rather than retroactively. Dynamic pricing was a nice way to utilize a scarce resource. He requested an estimate of the
length of time for the golf course to retire debt.
Mr. de Geus replied approximately four years.
Council Member Kou requested the sources of revenue, if any, from the
restaurant.
FINAL SENSE MINUTES
Page 31 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Mr. de Geus reported the operator would manage the restaurant, costs, and
revenues. No rent payment was due in the first year. In the second year,
rent going to be $4,000 a month, and utilities would be paid. After two
years, Staff and the operator could renegotiate contract terms.
Council Member Kou asked if golf programs for low-income youth would be
offered at the golf course.
Mr. Do advised that prior to closure the golf course supported youth
programs through First Tee of Silicon Valley, and OB Sports had agreed to
continue the program. First Tee of Silicon Valley worked with youth from the
region.
Mr. de Geus added that Staff would work closely with Palo Alto high school
golf teams and middle school athletics.
Council Member Tanaka requested the Page number in the Staff Report on
which the five bids were printed.
Mr. de Geus did not believe the bids were included in the report.
Council Member Tanaka asked why the bids were not included in the report.
Mr. de Geus explained that the bids were more than 100 pages each.
Council Member Tanaka did not believe that was relevant in relation to a $9
million contract. He questioned the Council's ability to award a $9 million
contract without knowing all the bid amounts.
Mr. de Geus suggested Staff's role was to evaluate bids and to present the
best to the Council.
James Keene, City Manager asked if he wanted to know the bid amounts or
the whole bids.
Council Member Tanaka felt the amount was sufficient. He questioned how
the Council could award a bid without knowing all the bid amounts.
Mr. de Geus could provide the amounts.
Council Member Tanaka stated this was not fiscally prudent.
Mr. Keene advised that the Council typically did not get involved in the
details of awarding a bid.
FINAL SENSE MINUTES
Page 32 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Council Member Tanaka noted a contradiction among the numbers on Page
10 and Slide 15 and requested the correct numbers. He asked if the chart
included all expenses and all revenues.
Ms. LeBlanc clarified that the amounts in the Slide had been updated more
recently than the Staff Report.
Council Member Tanaka inquired about warranties for the condition of the
golf course contained in the contract and about vendors' claims that required
payment to them.
Ms. Stump elucidated the primary reason for the City forgiving vendors'
payments. The payments did not resolve legal claims.
Council Member Tanaka interpreted the situation as the City giving taxpayer
dollars to vendors even though the City had no legal obligation to do so.
Ms. Stump reiterated Staff's belief that the action was commercially
reasonable and appropriate and enhanced the City's reputation as a business
partner in an industry where reputation mattered.
Council Member Tanaka felt they were bonus payments for good will.
Ms. Stump described it as an enhancement of the City's reputation as a
landlord and business counterparty.
Council Member Tanaka inquired whether the $1.8 million had been
accounted in the City's budget.
Mr. de Geus replied no. It was before the Council for decision.
Council Member Tanaka asked if the $1.8 million loss would be in addition to
the $2.3 million forecast deficit, which would be a total deficit of roughly $4
million.
Mr. de Geus responded yes. The total deficit, if any, would not be known
until all accounts had been finalized for the Fiscal Year.
Paul Harper, Principal Management Analyst reported Staff as of the midyear
Report anticipated a $2 million surplus at the end of Fiscal Year 2018. The
golf course impact would reduce the Budget Stabilization Reserve (BSR) to
approximately 19 percent.
Mr. de Geus returned to the question of the range of bids. The lowest
amount was $3.2 million annually, and the highest bid was $6.8 million
FINAL SENSE MINUTES
Page 33 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
annually. OB Sports' original bid was higher than the amount presented for
approval due to Staff's negotiations.
Council Member Tanaka noted the golf course netted a profit of
approximately 10 percent per year and requested a comparison to other
municipal golf courses.
Mr. de Geus indicated profits varied, but 10 percent was very good.
Council Member Tanaka requested Shoreline Golf Course's net profit or loss.
Mr. de Geus did not know.
Council Member Tanaka requested the rationale for the complex structure of
the contract.
Mr. de Geus reported none of the bids proposed a lease arrangement
because the vendors did not want to assume the risk of a new golf course.
Lease agreements were not typical in the industry.
Council Member Tanaka felt the City was assuming all risk under the
contract.
Mr. de Geus agreed the City was taking on risk, but the contract term was
short, the style of the golf course was different for the area, and multiple
courses were located in the area. OB Sports operates 55 golf courses
around the Country and had a good reputation. OB Sports wanted to
operate the golf course for more than three years.
Council Member Tanaka observed that the City would net approximately 10
percent profit beginning in Fiscal Year 2022. The contract called for giving
OB Sports 20¢ on each dollar over the revenue target.
Mr. de Geus emphasized that the City would receive 80¢ of each dollar. The
City of Mountain View had a 4.2 percent return on its golf course.
Mr. Keene noted the 10:00 P.M. check-in and inquired whether the Council wished to take up or continue the remaining Agenda Items. Staff and
outside counsel were present and awaiting Item Number 11.
Mayor Kniss asked if Item Number 12 was time sensitive.
Ms. Stump advised that the temporary Ordinance expired at the end of June.
There was some time sensitivity but also flexibility to continue it.
FINAL SENSE MINUTES
Page 34 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Mr. Keene recommended the Council decide at the current time whether to
continue Agenda Item Number 12.
Mayor Kniss suggested the Council continue Item Number 12.
Ms. Stump advised that Staff anticipated the Council continuing the item,
and it could be rescheduled to a date in early May.
Council Member Tanaka hoped the revenues increased as projected since the
City was bearing all the risk.
Mr. de Geus disagreed that the City was bearing all the risk. OB Sports
would be operating a golf course where expenses could only be estimated.
Council Member Tanaka stated there was no revenue risk for OB Sports.
Mr. de Geus clarified that OB Sports had to make the high maintenance cost
work given the high expectations for the golf course.
Council Member Tanaka stated OB Sports was not penalized if it failed to
reach $4 million a year in revenue. For the three-year contract, OB Sports
had no revenue risk.
Mr. de Geus explained that every bidder wanted to operate in the same
manner.
Council Member Tanaka inquired about the contract with Mr. Lozares.
Mr. de Geus indicated the previous arrangements were even more
complicated because there was more than one operator. There were
different arrangements for maintenance, the restaurant, the golf
professional, the pro shop and the driving range.
Council Member Tanaka requested reasons the City could terminate the
contract with OB Sports.
Mr. de Geus understood the contract contained standard language for
termination.
Council Member Tanaka reiterated that OB Sports had no real incentive to
meet or exceed the target revenue amount. If OB Sports did not make the
revenue target, the City would lose money, but OB Sports would not.
Mayor Kniss inquired whether Council Member Tanaka could vote on the
Motion without completing his questions.
FINAL SENSE MINUTES
Page 35 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Council Member Tanaka reiterated concerns about the structure of the
agreement.
Mayor Kniss suggested Council Member Tanaka not support the Motion as
the Council would not rewrite the contract during the meeting.
Council Member Tanaka requested the number of municipal courses which
OB Sports operated.
Mr. Green responded eight municipal courses.
Council Member Tanaka asked how many of the eight were making a profit.
Mr. Green stated seven of the eight. A lease agreement for a municipal golf
course typically was a win/lose situation. The proposed contract would be a
win/win situation. If OB Sports could not contain expenses, then it would
lose money. The $9.8 million amount was a maximum amount and could be
reduced.
Mr. de Geus noted play on the golf course decreased dramatically in 2013
when soil was stockpiled on the golf course. In 2011, golf rounds numbered
74,000 and revenues totaled more than $3 million.
Mayor Kniss presumed detailed amounts for expenses were included in the
contract.
Mr. de Geus answered yes. Condition and maintenance of the golf course
was the number one concern of golfers.
Mayor Kniss hoped the course played as beautifully as it looked. She
requested Staff describe the course for someone who wished to walk it.
Mr. de Geus reported the course offered four tee options. The longest
distance was slightly more than 6,000 yards. The shortest distance was
slightly more than 4,000 yards.
Mayor Kniss suggested walking during play could be counted toward Healthy City Healthy Community.
Council Member Scharff voiced concern about funding for the restaurant
being too low such that it would not draw patrons. Restaurants often were a
draw for golfers.
Council Member Kou hoped events would be a component of restaurant
business.
FINAL SENSE MINUTES
Page 36 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Council Member Wolbach suggested opening the golf course monthly or
weekly for residents to walk the course.
MOTION PASSED: 8-0 Filseth absent
Mayor Kniss requested Council Members submit additional questions or
comments in writing to Mr. de Geus.
Mr. de Geus offered to host tours of the golf course for Council Members.
Mayor Kniss requested a date for continuing Agenda Item Number 12.
Mr. Keene replied April 30.
MOTION: Council Member Holman moved, seconded by Council Member
Scharff to continue Agenda Item Number 12- PUBLIC HEARING: Adoption of
an Ordinance Amending Palo Alto Municipal Code (PAMC) Chapter 18.40
(General Standards and Exceptions) of Title 18 (Zoning) to add a new
Section Imposing an Annual Office Limit … to April 30, 2018.
MOTION PASSED: 8-0 Filseth absent
11. Resolution 9753 Entitled, “Resolution of the Council of the City of Palo
Alto Authorizing the Issuance and Sale of Taxable Certificate of
Participation (COP) Bonds Not-to-Exceed $9.8 Million to: (1) Finance
the Golf Course Reconstruction; and (2) Refinance the 2002 Downtown
Parking Improvement COP Bonds; Approving, Authorizing and
Directing the Execution of Certain Lease Financing Documents;
Approving a Preliminary Official Statement; and Authorizing and
Directing Certain Actions With Respect Thereto.”
Lalo Perez, Chief Financial Officer and Director of Administrative Services
reported the bond revenue would reimburse the City, and the funds would
then be used for other infrastructure projects.
David Ramberg, Assistant Director of Administrative Services advised that Raymond James & Associates was selected as the underwriter.
Tarun Narayan, Treasury Manager expected to issue $9 million in taxable
bonds. The authorization was slightly higher in case market conditions
changed. The Infrastructure Reserve would receive $8.4 million as
reimbursement for construction of the golf course. Refinancing the 2002
taxable Certificates of Participation (COP) required $0.6 million. Bonds were
marketed as green bonds, and the sale was negotiated. Staff expected a
Standard and Poor's credit rating in the next week. Benefits of refinancing
the 2002 COP Bonds included a cash savings of approximately $282,000
FINAL SENSE MINUTES
Page 37 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
with a net present value of $40,000. Fire Station Number 1 would be the
collateral for the bonds. With the release of City Hall as collateral, it was
possible to be used as collateral for future infrastructure financing. He
thought the golf course's debt service would be reduced by $163,000 in the
first five years, would be $541,000 annually thereafter, and would be paid
through golf course operations. The General Fund guaranteed debt service
payment. The true interest cost was estimated at 4.2 percent. The updated
finance charge for the bond issuance was $237,000. The proceeds for the
net amount was approximately $9 million. The total maturity amount with
interest costs was expected to be $15.9 million. The Community Services
Department (CSD) requested taxable bonds because they allowed use of a
variety of management agreement types. Under the tax-exempt bonds,
only half of the operator's contract compensation was fixed. Over the life of
the bonds, a future incentive-based agreement was likely to offset additional
taxable interest costs. The taxable bond issuance provided additional
flexibility for future operating contracts and incurred additional interest costs
of approximately $23,000 annually. Due to the expected high credit rating,
no Debt Service Reserve Fund was required. No capitalized interest was
needed because the golf course construction was complete. The bond
closing and receipt of proceeds was to occur at the end of May.
Stephanie Muñoz noted that the City Council operated for 50 years under the
principle of making money. The City did not like having to provide a whole
school system for East Palo Alto because Palo Alto had the money from the
industry.
Council Member DuBois remarked that as long as the City made more than
$23,000 annually in incentives over 30 years, then the flexibility of taxable bonds was worthwhile.
Mr. Perez reported that taxable bonds provided an opportunity for flexibility
in contracts and was worth the additional $600,000 expense over a 30-year
period.
Council Member DuBois hoped residents received priority for the bonds and
asked if Staff assumed all bonds were bought.
Mr. Perez advised that more Palo Alto residents sought to purchase the
bonds than the number of bonds for sale in the prior bond issuance.
MOTION: Council Member DuBois moved, seconded by Council Member
Scharff to:
A. Adopt a Resolution approving, authorizing, and directing execution of
certain lease financing documents, approving a preliminary official
FINAL SENSE MINUTES
Page 38 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
statement, and authorizing and directing certain actions with respect
thereto; and
B. Authorize execution and delivery of taxable Certificates of Participation
(COPs) in an amount not to exceed $9.8 million to:
i. Finance Golf Course Reconstruction; and
ii. Provide funds for the refinancing of the City’s lease payment
obligation related to the 2002 Downtown Parking Improvements
Certificates of Participation (COPs).
Council Member Scharff stated the City could have obtained a lower interest
rate if it issued tax-exempt bonds, but Staff thought the City could get
$23,000 in incentives.
Mr. Perez concurred, on an annual basis.
Council Member Scharff inquired about the difference in the interest rate.
Robert Gamble, PFM explained that the underwriter took orders for
subscriptions from institutions, individuals and retail. That whole process
was aimed at capturing the best possible price of the bonds for the City.
The market determined the right pricing level.
Council Member Scharff questioned whether that was true. He suggested
residents be willing to pay something over the Treasury rate because they
knew Palo Alto would not default. On a small offering, the City paid too
much interest.
Mr. Perez indicated this was an estimate.
Council Member Scharff requested the current 30-year Treasury Bill rate.
Mr. Gamble related that the Treasury rate was typically much lower than
municipal bonds because they were not tax exempt and the highest form of
credit. The 30-year Treasury was running about 280 now.
Council Member Scharff preferred tax-exempt bonds but deferred to the
experts.
Council Member Holman commented that the City should return to the
original designs for the accessory buildings at the golf course.
Council Member Tanaka inquired regarding the consequences of not issuing
bonds.
FINAL SENSE MINUTES
Page 39 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Mr. Perez stated the City would have to find $9 million for infrastructure
projects.
Council Member Tanaka requested the amount of fees and the interest rate.
Mr. Narayan replied that fees would be about $237,000. Staff estimated the
true interest cost as 4.20 percent.
Council Member Tanaka felt that was high.
Mr. Narayan advised that the difference between taxable and tax-exempt
bonds was about 59 basis points.
Council Member Tanaka inquired whether Staff shopped the proposal.
Mr. Perez reported that the Request for Proposals (RFP) received four
responses. The fees for three of the proposals were within the range. Staff
considered experience, ability to sell bonds, the green factor and distribution
of bonds. PFM assisted Staff in reviewing the responses.
Council Member Tanaka requested the range.
Mr. Narayan revealed that fees ranged around $42,000.
Council Member Tanaka asked why Staff did not take the proposal with the
lowest fee.
Mr. Perez needed to ensure the underwriter could sell the bonds.
Council Member Tanaka asked why the bonds were not sold as part of the
Infrastructure Bond.
Mr. Perez was attempting to maintain a constant cash flow to avoid deferring
other projects.
Council Member Tanaka inquired about use of the funds from the bond
issuance.
Mr. Perez responded that revenue would reduce the funding gap for
infrastructure projects.
Mayor Kniss inquired whether the City could sell the bonds to residents
without using an underwriter.
Mr. Perez had considered private placements, but banks were not
comfortable with a period of more than ten years. Another agency that
FINAL SENSE MINUTES
Page 40 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
specialized in the direct-to-retail market expressed interest but decided not
to submit a proposal.
Mayor Kniss remarked that Staff proposed a safe route for the sale of bonds.
Chris Lynch, Johns Hall Law Firm reported there was no process for cities to
sell bonds to the public in small increments. The one firm in that business
declined to submit a proposal. The traditional method of selling bonds
through an underwriter was the best and most effective method for the City
at the current time.
Council Member Scharff asked if any City had sold bonds directly.
Mr. Gamble advised that Neighborly had participated in other transactions
where they were not solely responsible for the sale of all bonds. Neighborly
said they did not believe they could sell all the bonds.
Council Member Scharff inquired whether Neighborly could provide a better
rate.
Mr. Perez indicated Neighborly's fees were lower than a typical underwriter.
Mr. Gamble reiterated that the market determined the price on the day of
the sale. Part of his job was to ensure the City's bonds were priced at least
as good as the market, if not better. It was not clear that Neighborly's fees
were lower than other underwriters. The City was able to save money on
fees but cost itself money on the price of the bonds.
MOTION PASSED: 8-0 Filseth absent
MOTION: Council Member Wolbach moved, seconded by Council Member
Scharff to temporarily adjourn the City Council meeting to allow the
members of the City Council, in their capacity as the members of the Board
of Directors of the Palo Alto Public Improvement Corporation, to consider
approval of the proposed financing.
MOTION PASSED: 8-0 Filseth absent
Council Meeting temporarily adjourned at 10:54 P.M.
Palo Alto Public Improvement Corporation meeting convened at 10:54 P.M.
Council Meeting reconvened at 10:58 P.M.
12. PUBLIC HEARING: Adoption of an Ordinance Amending Palo Alto
Municipal Code (PAMC) Chapter 18.40 (General Standards and
FINAL SENSE MINUTES
Page 41 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
Exceptions) of Title 18 (Zoning) to add a new Section Imposing an
Annual Office Limit and Setting Forth Related Regulations, and to
Repeal the Respective Regulations From Chapter 18.85 (Interim
Zoning Ordinances). The Proposed Ordinance Will Perpetuate the
Existing Annual Limit of 50,000 Square Feet of new Office/R&D
Development per Year With Modifications Regarding; the Review
Process, Unallocated Area Rollover Provisions, and Exemptions. The
Planning & Transportation Commission Recommended Approval of the
Ordinance on February 14, 2018. This Ordinance is Within the Scope of
the Comprehensive Plan Environmental Impact Report (EIR) Certified
and Adopted on November 13, 2017 by Council Resolution No. 9720.
This Item continued to April 30, 2018.
State/Federal Legislation Update/Action
None.
Council Member Questions, Comments and Announcements
Council Member Wolbach reported Earth Day events were great.
Council Member Holman noted brochures for the California Preservation
Foundation conference and encouraged attendance. She requested the
volume of radio and television broadcasts be increased in response to
complaints from the public.
Mayor Kniss had heard the same complaints.
Council Member Kou remarked that Mayor Kniss and Vice Mayor Filseth had
met with a recruiter regarding the City Manager position and asked when the
Council Appointed Officers Committee (CAO) or Council would discuss
recruiting. She wished to ensure the public was aware of the process.
Mayor Kniss advised that there had been casual conversations with potential recruiters. The CAO discussed it first and then the Council. The process for
recruiting a City Manager was not determined at the current time.
Council Member Tanaka disclosed that the San Jose City Council recently
broadcast its meeting through Facebook Live and received five times the
average number of viewers and spent $1,500. Staff needed to consider
modern streaming technology for upgrading the system in Council
Chambers.
Mayor Kniss reported attendance at the League of California Cities Revenue
and Taxation Committee meeting, where proposed legislation was discussed.
FINAL SENSE MINUTES
Page 42 of 42
City Council Meeting
Final Sense Minutes: 4/16/18
The City Council needed to review Senator Weiner's housing bill as he had
amended it substantially.
Council Member Scharff learned at the Metropolitan Transportation
Commission (MTC) meeting that the bill applied to R-1 zoning. He requested
an update of action regarding the bill.
James Keene, City Manager reported the bill was in the Senate
Transportation and Housing Committee and the Governance and Finance
Committee.
Council Member Scharff stated one of the committees was meeting the
following day to take action on the bill.
Mr. Keene had prepared a letter to the chairmen of both committees for
Council review. The Council previously authorized Staff to oppose the bill.
Council Member Holman reiterated her request for Council meetings with
State legislators and the City's lobbyists.
Adjournment: The meeting was adjourned at 11:08 P.M.