HomeMy WebLinkAbout1999-01-11 City Council Summary Minutes Regular Meeting January 11, 1999 ORAL COMMUNICATIONS .......................................87-419 APPROVAL OF MINUTES .......................................87-419
2. Resolution 7824 entitled ΑResolution of the Council of the City of Palo Alto Establishing an Expense Allowance Schedule for Members of the Architectural Review Board, Human Relations Commission, and Planning Commission; Ratifying Past Payments; and Rescinding Resolution No. 4825"...................87-419
3. Resolution 7825 entitled ΑResolution of the Council of the City of Palo Alto Amending the Compensation Plan for Management and Confidential Personnel and Council Appointed Officers Adopted by Resolution No. 7811 to Amend the Salary
and Benefits for Council Appointed Officers≅ .......87-420
4. Resolution 7826 entitled ΑResolution of the Council of the City of Palo Alto Authorizing the City of Palo Alto to Join with Other Public Agencies as a Participant of the California Asset Management Trust and to Invest in Shares of the Trust
and in Individual Portfolios≅ .........................87-420 5. Annual Status Report on Developers' Fees..............87-420
6. Ordinance 4541 entitled ΑOrdinance of the Council of the City of Palo Alto Amending Section 18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Change the Classification of a Portion of Tract 1722 and a Portion of Tract 1977 Known
as ΑMeadow Park≅ from R-1 to R-1(S)≅ .................87-420 7. Conference with City Attorney--Existing Litigation....87-420 8. Audit Report of Purchase Orders ......................87-420 9. Mayor Rosenbaum re Council Oversight of the Electric Utility in the New Competitive Environment ...................87-422
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10. The Policy and Services and Finance Committees recommend to the City Council approval of the revised Emergency Management Plan..................................................87-428 11. Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1998-99 to Provide an Additional Appropriation of $149,500 for Preservation of a Below Market Rate Unit at 922 Bautista Court.......................87-430 12. Council Members Rosenbaum and Mossar re Investigation of Grade Crossing Alternatives to Reduce Train Whistle Noise...87-431 13. Council Comments, Questions, and Announcements........87-437 ADJOURNMENT: The meeting adjourned to a Closed Session at 9:50 p.m. .....................................................87-437 FINAL ADJOURNMENT: The meeting was adjourned at 10:20 p.m..87-437
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The City Council of the City of Palo Alto met on this date in the Palo Alto Art Center at 7:13 p.m. PRESENT: Eakins, Fazzino, Huber, Kniss, Mossar, Rosenbaum, Schneider, Wheeler ABSENT: Ojakian ORAL COMMUNICATIONS Alayne Greenwald, 532 Channing Avenue, #101, spoke regarding the Juana Briones House. Edmund R. Power, 2254 Dartmouth Street, spoke regarding civic responsibility. APPROVAL OF MINUTES MOTION: Council Member Kniss moved, seconded by Schneider, to approve the Minutes of November 9, 1998, as submitted. MOTION PASSED 7-0, Wheeler Αabstained,≅ Ojakian absent. MOTION: Council Member Kniss moved, seconded by Schneider, to approve the Minutes of November 16, 1998, as submitted. MOTION PASSED 8-0, Ojakian absent. CONSENT CALENDAR Council Member Wheeler moved, seconded by Kniss, to approve Consent Calendar Item Nos. 2 - 6, with Item No. 1 removed at the request of staff. 1. Application by Carrasco & Associates for Approval of a Final Subdivision Map to Subdivide the 10.26 Acre Cabana Hotel Property located at 4290 El Camino Real into 14 Single-Family Residential Lots and One Parcel for the Cabana Hotel Facilities, Tract No. 9071 (continued from 12/14/98)
2. Resolution 7824 entitled ΑResolution of the Council of the City of Palo Alto Establishing an Expense Allowance Schedule for Members of the Architectural Review Board, Human Relations Commission, and Planning Commission; Ratifying Past Payments; and Rescinding Resolution No. 4825"
3. Resolution 7825 entitled ΑResolution of the Council of the City of Palo Alto Amending the Compensation Plan for Management and Confidential Personnel and Council Appointed
01/11/99 87-419
Officers Adopted by Resolution No. 7811 to Amend the Salary
and Benefits for Council Appointed Officers≅
4. Resolution 7826 entitled ΑResolution of the Council of the City of Palo Alto Authorizing the City of Palo Alto to Join with Other Public Agencies as a Participant of the California Asset Management Trust and to Invest in Shares of the Trust
and in Individual Portfolios≅ 5. Annual Status Report on Developers' Fees
6. Ordinance 4541 entitled ΑOrdinance of the Council of the City of Palo Alto Amending Section 18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Change the Classification of a Portion of Tract 1722 and a Portion of Tract 1977 Known
as ΑMeadow Park≅ from R-1 to R-1(S)≅(1st Reading 12/07/98, PASSED 8-0, Fazzino absent) MOTION PASSED 8-0 for Item Nos. 2-6, Ojakian absent. CLOSED SESSION 7. Conference with City Attorney--Existing Litigation Subject: Fisher, et al. v. City of Palo Alto, SCC No. CV777977, Middlefield Road Homeowners Association v. City of Palo Alto, SCC No. CV778008, and Wang, et al. V. City of Palo Alto, SCC No. CV778019 Authority: Government Code section 54956.9(a) UNFINISHED BUSINESS 8. Audit Report of Purchase Orders (continued from 11/9/98) City Auditor William Vinson said the audit reported a lack of a competitive process, lack of proper approvals, and inadequate documentation surrounding purchasing decisions. The similarities and the findings painted a picture which reflected a larger, broader concern which was the control environment that surrounded
the City=s procurement function. The control environment included
management=s philosophy in attitudes, operating style, and monitoring and oversight of departmental activities. Since the issuance of the initial report in October 1995, changes in purchasing focused on improving process efficiency. While that was an appropriate objective for a reengineering process, efficiency must be balanced with the development and implementation of cost effective internal controls. The Purchasing Department, while seeking to reduce or minimize red tape, had the responsibility for ensuring that fundamental internal controls were established and departments complied with them. The management oversight issue was
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the underlying concern supporting the findings presented to the Council. The frequency and nature of the exceptions were important to note. While an individual exception such as the lack of a city manager approval on a purchase order might not seem to constitute a significant weakness, the Audit staff found that most purchases had more than one exception. Specifically, 121 of the 147, or 82 percent, of the purchases reviewed had more than one exception. For example, a $115,000 purchase order for computer consulting services was not sent out to bid, was not approved by the City Council and City Manager, and failed to describe the services to be provided. A $103,000 purchase order for chemicals was not sent out to bid, was not presented to the City Council for approval, and was approved by the City Manager after the designated delivery date. A $15,000 purchase order for the lease of computer peripherals was not supported with three price quotes and was approved after the delivery date. Most of the purchases, 96 percent, were approved by purchasing management. The recommendations of the Audit staff focused on increasing the monitoring and oversight by Administrative Services Division Management and were designed to help establish compliance with internal control procedures as prescribed by the Palo Alto Municipal Code (PAMC) and the Purchasing Manual. The findings in the report were broken down into general categories; for example, competition. Staff found that price quotes were not obtained. The Audit staff understood that obtaining three price quotes was not always practical, but 41 percent of the purchases reviewed lacked such price quotes. For example, the City purchased a Ford Aerostar Van for $19,000, and only two price quotes were obtained with no explanation as to why an additional price quote had not been obtained. The Audit staff found that 78 percent of the blanket purchase orders over $25,000 had not been competitively bid. In the area of approvals, the Audit staff found purchase orders were approved after the receipt of goods or services over 40 percent of the time. The Audit staff found that blanket orders were not submitted to the City Council for approval as required. For example, a $50,000 blanket for repair services was not presented to the Council for approval. In the area of documentation, the Audit staff found amounts and quantities were routinely without explanation. An order to upgrade
the City=s payroll system was increased $9,300 without explanation as to the additional goods and services that would be provided. Blanket orders were used when contracts would have been a more appropriate method. A blanket was used for computer consulting services which cost $71,000 and there was no description of the services to be provided or the related consultant deliverables. The control weaknesses presented a serious risk to the City. While the Audit staff found agreement with the City Manager on most of the operational effectiveness and efficiency issues, there was disagreement on many of the internal control issues. The Audit
staff requested the City Manager=s direct involvement in reconsideration of the staff recommendations in addressing the serious internal control issues presented in the report.
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Council Member Rosenbaum felt the issue was complex and worthy of serious discussion. He asked whether any thought had been given to referring the item to one of the Council committees. Mayor Fazzino said there were two alternatives: Finance and Audit Committees. He suggested the Audit Committee meet with Mr. Vinson and make recommendations to the Finance Committee, or use the Audit Committee to focus on procedural process types of issues and refer the item to the Finance Committee. Council Member Rosenbaum preferred a referral to the Finance Committee. MOTION: Council Member Rosenbaum moved, seconded by Kniss, to refer the Audit Report of Purchase Orders to the Finance Committee. MOTION PASSED 8-0, Ojakian absent.
9. Mayor Rosenbaum re Council Oversight of the Electric Utility in the New Competitive Environment (continued from 12/14/98) Council Member Rosenbaum said the electric utility business was more complicated under deregulation. The City once bought electricity through long-term contracts and sold it under rates once a year by the City Council, but the City was currently in the position of buying a portion of the electric supply under short-term contracts and entering into long-term contracts with purchasers. He prepared ten directions to staff plus three supplementary directions that resulted from discussion from staff. With respect to long-term contracts and short-term purchases, there were three elements that were required in order to provide the Council with information necessary for good oversight: 1) the establishment of guidelines for how the staff would operate in both areas; 2) management oversight; and 3) reporting to both the Council and Utility Advisory Commission (UAC). The steps were identical to what the City went through for investment of City funds. Once a year, the City received guidelines which were modified as necessary by the Finance Committee. There was an established chain of command as to who was monitoring that the guidelines were followed, and the Council received quarterly reports. Six of the directions to staff included three each for risk management and long-term purchases. One important item had to do with possible revision of the UAC charter because staff indicated to the UAC that the UAC did not believe its present charter enabled it to provide the Council with information. Staff felt no obligation to provide the UAC with information on the areas of risk management and long-term purchases. Staff was preparing to bring to the UAC the first two elements with respect to risk management which included guidelines and management oversight, but he had not seen any motion as to how the information was to be reported. The final three items which he included under miscellaneous legal items had to do with the question of access to long-term contracts, the compatibility of the charter with respect
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to the ability to enter into long-term sales contracts, and Αhedge≅ contracts under the risk management item. City Manager June Fleming did not question the wisdom and foresight of the issues addressed by Council Member Rosenbaum. The Council was aware that the City was in an area of deregulation with the electric utility which caused the City to look at a number of things, such as the environment and how the City would function into the future. Staff agreed with the severity of the issues and was currently working on recommendations. Staff was not prepared to bring forward the recommendations which would respond to what staff was doing internally. She and Council Member Rosenbaum agreed that until the issues were sought out, staff was not sure of the organizational structure and the charges to the various government pieces including possible changes to the charters of the City and UAC and changes to the operational and organizational structure of the utilities. Staff received complete support from
the City Attorney=s Office. She agreed with areas that were raised and emphasized that the areas were being addressed. A complex structure of committees and staff were working on the issues. Staff intended to return to the Council and the UAC with the issues. City Attorney Ariel Calonne was concerned that the memorandum from Council Member Rosenbaum, dated December 7, 1998, might implicitly suggest solutions that staff might want to alter. The balance point was between oversight and accountability publicly for the financial transactions and protection of proprietary operational information. He believed there was a significant issue for the
Council to focus on at some point regarding the Council=s relationship with the UAC and the appropriate role for an appointed commission in dealing with sensitive financial transactions. Mayor Fazzino asked the City Manager about the timetable for completion of utilities issues analysis, noting that Council Member Rosenbaum requested a response within 6 months. Ms. Fleming said staff was 4-6 months from completion. Council Member Mossar asked whether staff provided the Council with a list of projects or pursuits and timelines. She could not recall receiving such information. Ms. Fleming said the Council received the packet that went to the UAC, and staff responded to the UAC. Staff raised the issues and addressed the issues. Staff could give the Council in the future or as a part of the budget a status of where staff was on the issues. Council Member Mossar asked whether there was anything that prevented the Council from proceeding with the recommendation for staff to come back to the Council with information.
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Mayor Fazzino was concerned that the Council not be in a position of endorsing some of the policy implications proposed in Council
Member Rosenbaum=s memo. Council Member Rosenbaum said he would feel comfortable with regard to the subject of risk management and long-term purchasing. The issue of how the Council and UAC received information was one that staff should be directed to address. MOTION: Council Member Rosenbaum moved, seconded by Mossar, to direct staff and the City Attorney to 1) Submit guidelines for entering into long-term sales contracts to the Utilities Advisory Commission (UAC) and Council for review and approval; 2) Establish a procedure for senior management to provide oversight to ensure that long-term contract guidelines are being followed; 3) Provide the UAC and Council with a periodic review of the economics of existing long-term contracts; 4) Report on the issues involved in making long-term contracts available for examination by the
Council; 5) Submit guidelines for engaging in Αrisk management≅ transactions to the UAC and Council for review and approval; 6) Establish a procedure for senior management to provide oversight of
Αrisk management≅ activities to ensure that guidelines are being followed; 7) Provide the UAC and Council with a periodic review of
the success of Αrisk management≅ activities relative to an agreed-on standard; 8) Report on any legal issues related to entering into
Αhedge≅ transactions as part of Αrisk management≅ activities; 9) Recommend changes to the UAC ordinance to make clear that the duties of the UAC include advising the Council on both long-term
sales contracts and Αrisk management≅ activities; and 10) Address the apparent inconsistency between entering into long-term sales contracts and the Charter provision that the Council will set rates. Also, that the following suggestions from staff be included: a) Natural gas has also been deregulated and to the extent that the above issues apply to the gas utility, they should be addressed by staff; b) There may be other approaches to dealing with the potential problems associated with long-term contracts and
Αrisk management,≅ and staff should feel free to consider alternatives as long as they address guidelines, oversight, reporting, and keeping the Council and UAC in the loop; and c) There is a broader issue having to do with whether the existing structure for utility governance will enable us to complete and survive in a deregulated industry, which consists of cumbersome procedures and time-consuming processes that are a part of local government may seriously handicap a municipal utility in a competitive environment, and this is a long-range issue which staff should consider but not at the expense of addressing the more immediate issues mentioned above. Finally, that staff report back to the Council on these issues within six months.
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Council Member Mossar heard staff mention policy items which she was unable to clearly recognize. She did not see the list as proscriptive. Council Member Schneider said there were too many unknowns: the organizational structure, a Utilities Director not yet hired, and deregulation. The issue of competition in terms of long-range contracts concerned her.
Council Member Huber saw nothing in Council Member Rosenbaum=s memorandum that would cut back against what the staff was doing as suggested by the City Manager or the City Attorney. The Council needed direction in the policy area to revise what the UAC did. Council Member Eakins asked the City Manager to specify which policy directions were implicit and potentially bothersome. Ms. Fleming said staff did not alter the direction provided by Council, but there were options as to how staff operated, for instance, what information was made available, what was the role of the UAC, and how staff would deal with risk management, purchase issues, and long-term agreements. Those were items the staff was working on. Council Member Eakins asked about the wording in Council Member
Rosenbaum=s memo, Αperiodic review of the economics of existing
long-term contracts.≅ Council Member Rosenbaum responded that staff had entered into a number of short-term contracts and one long-term contract. As the Council heard during the interviews for the UAC, mention was made by one of the candidates about working on long-term contracts. The Council did not know what was in the contracts. The staff, as competition intensified, would be under increasing pressure to enter into the contracts in order not to lose customers. Contracts should be evaluated as to whether or not they were reasonable from the standpoint of the City. He reminded the Council that the UAC was a creation of the City Council and, to some degree, the UAC felt it was unable to properly advise the Council on the new activities being performed by the electric utility. The issue was important to address. Council Member Eakins supported the motion with emphasis on Item
(b) of Council Member Rosenbaum=s memo. She understood that the item did not provide for disclosure of sensitive negotiation items.
Council Member Kniss mentioned Council Member Rosenbaum=s statement that it was difficult for the UAC to provide oversight and asked whether he had discussed that matter with the UAC.
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Council Member Rosenbaum said that was the main topic during the
Council=s meeting with the UAC. He had enumerable conversations with members of the UAC. Council Member Kniss suggested that the Council stay cognizant of what was happening in the field because it was moving with rapidity and was seen as an obvious area in which money could easily be made. Ms. Fleming acknowledged that staff was working on the issue and wanted to maintain the continuity. If the work was not finished by the deadline, she would come back to the Council. Mr. Calonne said the memo from Council Member Rosenbaum appeared to assume that more oversight and information was the appropriate direction to take. Elected or appointed officials should have as much information as possible in order for decisions to be ventilated and the public to know what was happening with the precious resource the City had. He was concerned that in general, while that was the right way to go, staff might find that the direction was not completely appropriate, given the fact the environment was competitive. Staff was working at a competitive disadvantage to private investor-owned utilities. Two years prior when the Council approved a resolution seeking legislation to protect utility customer privacy, the Council also approved efforts to obtain legislation dealing with the protection of proprietary business information. His concern was that the Council be open, depending on the result of the work, to set the level of oversight that was appropriate. He was concerned with having the UAC involved in the particulars of financial transactions dealing with
the utilities. The utilities were Αcrown jewels≅ for the City, and management should not be taken in a casual manner. The comments he
heard regarding Council Member Rosenbaum=s reference to item (b) seemed to give staff flexibility to return with other management options. As to risk management, the Utilities staff were concerned that they had appropriate risk management systems in place. The traditional models might not necessarily be the right ones; the traditional model he referred to was the one staff used for investment policy. The Council would adopt a policy that outlined investments staff could and could not invest in. On a periodic
basis, someone would audit the staff=s conduct and tell the elected officials whether or not they complied with the guidelines. He was unsure whether that control mechanism was the right one or whether the staff had the expertise to tell the Council what was the right control mechanism. Council Member Kniss asked Council Member Rosenbaum whether he felt staying within the particular parameters outlined in his memorandum was important.
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Council Member Rosenbaum said item (b) provided the flexibility. The issue had been around for a year and a half. The discussions kept going, and the Council needed to give direction to staff to deal with the issues. Council Member Kniss clarified there was a six-month window. Council Member Rosenbaum said that was correct. Staff would inform the Council whether the six-month period was sufficient to obtain all the answers. Vice Mayor Wheeler felt comfortable with the referral and the motion if item (b) was controlling and appeared to be what she heard from staff and several of her colleagues. The issues needed to be addressed. Staff should be given as much flexibility as possible, and staff should not feel compelled to address items 1-10 as outlined in the colleagues memo. She questioned whether the Council would agree that the controlling factor in the motion, in the major guideline under which staff would operate in their report, would be item (b). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER that Item b be the controlling item to direct staff to report back to the Council in six months to address guidelines, oversight, reporting, and keeping the City Council and the Utilities Advisory Commission in the loop in dealing with the potential problems associated with long-term contracts and risk management. Ms. Fleming said staff would probably be able to get back to the Council in six months because staff had already begun working on the issue. Council Member Rosenbaum said 6 of his 10 items referred to risk management and long term-contracts, but there were 4 others that he felt more strongly about having specifically addressed. The charter of the UAC had to be changed, or staff should tell the Council why that would be inappropriate. The item with respect to the charter that said the Council would set rates should be addressed, as well as the item regarding legality of hedges. The item as to the issues involved in making the long-term contracts available had to be addressed. Mayor Fazzino sensed the Council wanted staff to move forward and respond to each of the issues. There was nervousness on the part of the Council about establishing policies in the areas at the current meeting. The Council should refer the items to staff who would deal with the risk management items at part of their report, and the Council would ask staff to respond to the other items as well. The Council would then have the opportunity to address them from a policy perspective. The future of the issues would depend upon whether or not they were enacted as policy priorities at the present meeting.
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Council Member Huber said all the suggestions made at the present meeting were good, but he was interested in seeing what staff recommended on the UAC ordinance because there had been staff resistance to change to the duties and responsibilities of the UAC. Changes had to be made or at least considered with the direction of the UAC. MOTION PASSED 8-0, Ojakian absent. REPORTS OF COMMITTEES AND COMMISSIONS 10. The Policy and Services and Finance Committees recommend to the City Council approval of the revised Emergency Management Plan Mayor Fazzino was impressed with the comprehensive nature of the Emergency Management Plan (Plan) which addressed all emergencies in the community. The Plan relied heavily on actions the City could take to anticipate and respond to problems and relied on citizen participation and the need for the City and neighborhoods to work closely together. He was particularly impressed with the ability of the Fire Department and other emergency personnel within the City to engage in a significant degree of self-criticism and self-
analysis associated with the prior year=s flood situation and adopt a new emergency plan which incorporated the lessons learned as a result of the natural disaster. Vice Mayor Wheeler said the Finance Committee had its discussions about the budget amendment ordinance (BAO) subsequent to the conclusion of the Policy and Services (P&S) Committee discussion of the contents of the plan. The plan was ambitious and a necessary program for the City. The Finance Committee unanimously supported the BAO that would add the necessary personnel in the Fire Department to carry on the program. Historically, there were, prior to some tough budget times in the City, several staff positions devoted to disaster and emergency preparedness. Those items were cut and not replaced. At the time of the 1998 flood,
the City had a quarter of a Battalion Chief=s time devoted to disaster preparedness and that was one of the factors that needed
fixing as the Committee critiqued the City=s response to the flood. The number of personnel, which was 3, who were requested fell within the range of cities in Santa Clara County and surrounding areas. The number related to the number and types of disasters to which a City was prone, rather than the size of the City. Palo Alto, because of its unique geography and geology, had exposure to a wide variety of potential disasters and emergency situations and required a significant contribution by permanent personnel to help address the wide range of issues. The Finance Committee recommended for Council approval the BAO in the amount of $308,500;
$200,000 was a place holder in the current year=s fiscal budget.
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Bob Moss, 4010 Orme Street, supported the recommendation to amend the budget and adopt the Plan. Many of the activities would involve coordination with neighborhoods and neighborhood groups. Not all neighborhoods in Palo Alto were equally active and effective. He suggested looking at other opportunities such as neighborhood watch and block captains. The City should establish a set of priorities and a schedule. The City listed for each department a set of annual goals; for example, an annual goal might be how many neighborhood associations actually were trained or how many emergency storage facilities were actually established. An obvious concern was the alternate water supplies used during emergencies because certain wells were sealed off. An alternative might be swimming pools as sources of water. Council Member Rosenbaum had concerns with the budget process. The City adopted a budget in June 1998 which indicated a surplus of $800,000; and since that time, $3 million was added to the budget. The one time expense of $1 million was not of concern to him, but the $2 million in ongoing expenses were. Those were composed of three items: increases in salary and benefits, personnel increases in the Planning Department, and new office space. The items were brought to the Council by staff but would not have been possible to bring the same budget to the Council if staff had anticipated spending $2 million more at the time of budget preparation. He assumed staff would not have brought the Council a budget with a deficit, and if there were another $2 million that had to be spent, it would have been necessary for staff and the Council to make choices. He questioned how the process would be explained. Ms. Fleming said where staff knew there were expenditures that would face the Council and staff had a reasonable hold on the cost, a contingency was planned in the budget. In prior years, everyone knew that at the end of the year, the projections staff made and the expenses that were made did not always come to fruition. Staff would inform the Council at midyear whether the budget was out of balance. Administrative Services Director Carl Yeats said the City adopted an $89 million budget in the prior year, and during the course of the year, budget amendment ordinances (BAO) were made. At the end of the year, $5.2 million was returned to reserves. Corrections were made at midyear and at the end of the year. Ms. Fleming said there was one area the City had not done as good a job as it should have. Staff had not been detailed when bringing reports to the Council asking for budget amendments about the status of BAOs and available moneys. The report corrected that process. The Council had made a decision about infrastructure that incorporated moneys available at the end of the year.
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Council Member Rosenbaum viewed the Council as losing the discipline of a budget; for instance, if staff had properly estimated what the increases for salary and benefits were and said five additional people were needed in Planning and three were needed in the Fire Department, the budget would not have been able to be produced in May 1998. He agreed that at the end of the current year, there would be a surplus due to vacancies and the difficulty in completing capital improvement programs (CIP). If the Council wanted to institutionalize a vacancy rate, the current form of budgeting was fine because there would be leeway in the budget since not all the positions were filled. His concern with the process was what would happen when the economy cooled, City jobs would look more attractive, and revenues would stop increasing. He predicted the Council would then talk about a structural deficit. He was not happy with the proposed form of budgeting. He said Fire Chief Ruben Grijalva did a good job with the emergency management plan, but he preferred to have the item considered in the next budget along with all the items the Council would talk about.
Council Member Mossar sympathized with her colleague=s statements, noting that the Finance Committee had a lengthy conversation about the process or lack of process the Council had gone through with BAOs. As a new Council Member, she was astounded at the way BAOs were approved by the Council with little information about the impact of the expenditure. She appreciated the fact that Attachment C of the staff report (CMR:379:98) began to address the issue of providing information to the Council so the Council knew the impacts of its decisions, and the Council would have a better way of prioritizing unanticipated expenditures. She hoped that over time the Finance Committee and the Council, working with staff, would come up with procedures that would enable the Council to weather tougher times. The Plan was important to the community and would have been a priority expenditure for the year. She supported the request to amend the budget. MOTION: Chairperson Fazzino for the Finance Committee recommends: 1) approval of the revised Emergency Management Plan, and 2) adoption of the Budget Amendment Ordinance.
ORDINANCE 4542 entitled ΑOrdinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1998-99 to Provide an Additional Appropriation of $308,500 for the Addition of Three Full-Time Positions and Associated Resources
for the Implementation of the Emergency Management Plan≅ MOTION PASSED 7-1, Rosenbaum Αno,≅ Ojakian absent. ORDINANCES
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11. Ordinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1998-99 to Provide an Additional Appropriation of $149,500 for Preservation of a Below Market Rate Unit at 922 Bautista Court MOTION: Council Member Huber moved, seconded by Kniss, to approve the staff recommendation that the Council adopt the Budget Amendment Ordinance to appropriate $149,500 in Residential Housing In-Lieu Funds for costs related to preserve the unit at 922 Bautista Court as Below Market Rate (BMR) housing.
ORDINANCE 4543 entitled ΑOrdinance of the Council of the City of Palo Alto Amending the Budget for the Fiscal Year 1998-99 to Provide an Additional Appropriation of $149,500 for Preservation of a Below Market Rate Unit at 922 Bautista
Court≅ MOTION PASSED 8-0, Ojakian Αabsent.≅ COUNCIL MATTERS 12. Council Members Rosenbaum and Mossar re Investigation of Grade Crossing Alternatives to Reduce Train Whistle Noise Council Member Rosenbaum said the issue of train whistle noise at the Charleston Road crossing came before the Council approximately four years prior. There seemed to have been improvement, but the subject was again before the Council. Staff arranged a meeting between some of the affected residents and railroad officials. The result of the meeting suggested there were possible alternatives, short of separating the grade crossings. The suggestion was made that staff be directed to look into the possibilities. He noted that the National League of Cities weekly publication contained an
article entitled, ΑLouisville creates 3-mile railroad quiet zone.≅ The article summarized what Louisville did in response to a similar problem. A quiet zone was a special situation which might not be applicable for Palo Alto. Train whistle noise was found to be a problem in many parts of the country, and the Federal Railroad Administration (FRA), which was the governing agency, worked with communities on a workable solution. Council Member Mossar said noise in general was an issue in Palo Alto, and some citizens were affected by noise from trains. Train noise was typically thought to have belonged to the federal government, but she believed that local government needed to be clear about its options and alternatives. The Colleagues Memorandum did not intend to transfer the burden of noise from one set of neighbors to another or reduce the safety of trains, but was intended to support an effective rail service on the peninsula.
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Frits Vander Linden, 4129 Park Blvd, representing Charleston
Meadows Neighborhood, said Caltrain=s and Amtrak=s stated objective of using horns was to warn a small number of reckless people who appeared to threaten the railroads right of way or bypass the gates in an attempt to outrun the trains. The irresponsible and reprehensible behavior was rare, but the neighbors were exposed to loud horns nearly 24 hours per day, 7 days per week, regardless of whether or not the right of way was threatened. Entire neighborhoods paid the price because homes near the tracks were devaluated. Long-term residents assured the neighbors that the horns were worse than in the prior 35 years, particularly between 5 and 7 a.m. The noise should not continue. During the prior six months, the decibel level of the train horns had increased considerably, partially because of new train engines with louder, shrieking horns which seemed to have little volume control. Warning bells at railroad crossings had frequently broken down resulting in loud and incessant noise whose repair took one or more
hours. Caltrain turned a deaf ear to the neighbors= pleas and was unwilling to listen to the frequent complaints. Residents felt that the more they complained, the louder the horns became. Operating a railroad through a community required a continuing responsibility for providing for public safety, health, and quality of life. At the present time, Caltrain and Amtrak were not living up to the responsibility. Compared to other cities that had introduced new measures to control train noise, the City of Palo Alto had fallen behind and compromised the safety and quality of entire neighborhoods who border the tracks. Other cities had curbed train noise by implementing a ban on use of train horns within the city, implementing noise limits, installing stationary horns on the crossings, building underpasses and overpasses, and installing median dividers to prevent people from going around the gates. Caltrain announced the prior week Project Ponderosa which promised state-of-the-art arms at crossings. He questioned whether that meant more noise and whether the City Planning Department was aware of Project Ponderosa. He also asked whether the City of Palo Alto, which had long enjoyed the reputation of being the most community-sensitive in the nation, would take steps to restore the quality of life and sanctity that Palo Alto treasured. He asked that the Council authorize the City Attorney to investigate ways to curb the excessive train horn and crossing noise that plagued his neighborhood day and night. He also requested that the City Attorney and City Planning Department carefully review Project Ponderosa. He presented a petition signed by over 115 residents and several letters from senior citizens unable to attend the meeting requesting City support. John K. Abraham, 736 Ellsworth Place, pointed out that the Comprehensive Plan stated that the City was committed to the location of higher density housing near transit stations and routes. He suggested that the current problem was a good reason to reconsider high density housing next to railroad tracks. During the May 21, 1997, Comprehensive Plan hearings before the Planning
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Commission, Commissioner Schink said, ΑI continue to be concerned about the situation where we want to build denser housing along the
railroad tracks.≅ He said 65 decibels did not work when a train went by and asked whether flexibility could be included in order to get past the railroad tracks problem for denser housing.
Commissioner Schink also said, ΑI think we could end up in the long run with a better design near the railroad tracks, etc., if you let people just tolerate the noise in the back yard as the trains go
by,≅ and ΑIf you set a standard, I would hope we would include some
language that accepted things like train whistles.≅ A train whistle was 110 decibels. He questioned what would be done if the decibel level was raised to 75 and there were still 110 decibels going off every few hours. He asked that the Council reconsider the idea that high density housing near a rail corridor was a solution. He suggested the Council consider offering the impacted residents the option of having triple paned windows for new development under the Comprehensive Plan. He saw no reason why regular residents should not have the same type of protection that potential new residences might have. If the Council believed in mitigation, the Council needed to consider the option of giving residents protection. Ernest W. Adams, 250 West Meadow Drive, said his house was approximately 100 feet from the West Meadow crossing. He was in possession of a report by the staff of the City Council of St. Paul, Minnesota, which investigated train noise problems. The report included statistics about safety of train whistle bans. Extreme or excessive noise was undesirable, but outright bans were highly undesirable. Studies in Florida showed that 511 level crossings had nighttime bans implemented and, over a period of five years, the number of accidents that occurred at the crossings increased 195 percent. Once the ban was lifted, the number of accidents dropped by 67 percent. The study noted that of the 2,000 crossings where train whistles were banned and not sounded, and based on groupings of similar crossings, the accident frequency averaged 84 percent greater than those where audible warning was provided by the train whistle. In a separate analysis of 12 case studies, crossing accidents fell by 38 percent over 831 affected crossings when the whistle bans were lifted. Nighttime train whistle banning was extremely dangerous. The railroad was present in the community long before most people at the current meeting were born. People who live near a level crossing chose to do so. Whistles were an effective, inexpensive, and longstanding safety measure. Efforts to curtail whistles on grounds of convenience would be foolhardy. David Schrom, 381 Oxford Avenue, spoke on behalf of the Evergreen Park Neighborhood Association, which consisted of about 1000 residents within a half mile of the tracks and close to the point where the trains sound the horn for the Churchill crossing. The train horn was more than a minor nuisance in the community. The
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federal regulations require 96 decibels of loudness. The Caltrain horn, measured at 25 feet, was 125-127 decibels. A jet plane taking off at a distance of 200 feet was 120 decibels. Hearing damage occurred in people at levels of more than 100 decibels. The loudest sound mentioned in the City code was 110 decibels, and 70 decibels was considered unacceptable under normal circumstances. The only times when that type of noise was tolerated according to Planning literature was after careful analysis of all possible mitigation measures and found that the measures could not be further reduced. The impacts of noise were far reaching. Every year, about 25,000 trains passed through Palo Alto. Palo Alto had 4 grade crossings which represented 100,000 horn soundings. If an average of 1,000 people heard that horn each time it sounded, that would mean 100,000 million people-horn interactions in the community every year. The interactions represented children standing by the tracks at a time when their hearing was vulnerable, people in classrooms at Palo Alto High School, elderly people homebound with illnesses, people who worked in emergency rooms, and people who work and play at home. All over the world, people had shown that train horns only needed to be sounded in emergencies. There were superior devices to keep people off the tracks. Council Member Rosenbaum mentioned some, and former Council Member Woollen presented photographs to the Council which showed types of crossing guards used in Europe. He and his neighbors would be grateful if the Council was diligent and insistent in pursuing an end to the nuisance. Hilary Hug, 381 Oxford Avenue, said the August 1994 Brady and Associates report to the Council, the noise technical and back ground report for the Palo Alto Comprehensive Plan, cited the train horn as the most egregious noise in the community which the City could easily address. She urged the Council to consider the impacts of train noise on people biking, walking, sleeping, and playing. She found no evidence in her research that train horns increased safety. There were communities throughout the United States that chose to ban the train horn. The Council was thanked for considering grade crossing improvements as an alternative to train horns. Jed Black, 1920 Park Blvd., favored limiting the train horns at the crossings. He was aware of literature that suggested if there were adequate crossing guards at train crossings, there was no increase in accident rates when horn sounding was eliminated. He was Director of the Stanford Sleep Disorders Clinic and said about 30 percent of the population had a low arousal threshold and were unable to adapt to sounds or stimuli at night. The majority of individuals would be able to adapt to sounds occurring at night if the sounds happened on a regular basis. He was told that the level of train activity would double over the next several years which would increase the sound interactions.
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Renee Hofer, 4111 Park Blvd., said the loudness of the train horns had increased substantially. Residents who called Caltrain found that the more they called and complained, the louder the noise became. She was present when a young girl was killed by a train and, at that time, the trains were not as loud as the present. The noise did not keep from killing the girl. The crossing guards and other avenues prevented injury. MOTION: Council Member Rosenbaum moved, seconded by Mossar, to direct staff to investigate and report back on the process, cost, and likelihood of success should the City seek approval of supplementary safety measures as a means of reducing train whistle noise. Council Member Huber recalled when former Chief Transportation Official Marvin Overway looked into the issue in 1994. His recollection was that there was little local jurisdictions had control over with regard to the noise. City Attorney Ariel Calonne said yes. There was a process that was identified in the Colleagues Memo that allowed the supplemental safety measures to be approved by the Secretary of Transportation. Council Member Huber asked who was responsible for determining what an effective substitute was. Mr. Calonne said the Secretary of Transportation was responsible. He believed a municipality could be an applicant. Council Member Huber asked whether a municipality was an applicant and the Secretary of Transportation determined that something would be as effective, would the railroad be compelled at its cost to provide the substitute. Mr. Calonne said he did not know. Council Member Mossar saw the direction as asking staff to look at what measures the City might pursue to qualify the City for exemption to the federal regulation that the whistles be sounded. There was a number of criteria that would have to be evaluated, such as applicability, shifting of noise elsewhere, safety, and cost prohibitive. Mr. Calonne said there was currently a federal environmental impact statement process on the regulations. The permanent regulations to implement the supplemental safety procedures were not in place yet. Council Member Kniss said actual measurement might be worthwhile to look at to find out whether or not the noise had increased. She was on the School Board when a young child was killed and on the City Council when another young girl was killed. She did not know whether the whistled deterred that, but noted that other children
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had been killed without the whistles. She could not believe that eliminating the whistles and putting in place other types of deterrents would get the appropriate reaction. Following the 1987 accident where a child was killed, the Council considered the issue extensively, looking at how many other ways young children could be deterred. Listening to David Schrom and thinking of the children whose ears might be hurt, she thought of the children who might be killed. She was willing to look at whether or not the loudness had increased, but she did not support trains not sounding horns. She could not support the Council looking again at how the City could otherwise deter people from crossing the tracks and was unwilling to eliminate the whistles in return for other types of safety devices. Council Member Rosenbaum said the minimum regulation for sound of horns was specified as 96 decibels at 100 feet. AMENDMENT: Council Member Kniss moved, seconded by Schneider, to direct staff to initiate a study to evaluate reducing the decibel level of the train whistles. Council Member Kniss recalled the School Board performed intensive investigation of areas throughout the country that eliminated or reduced the number of times the whistle sounded. Some areas had a whistle reduction between 12 and 6 a.m. in the morning. More information could be found on decibel levels and how trains had changed. Council Member Schneider did not believe there was any way the Council would compromise on safety. She clarified that the supplemental safety measures would be in addition to the train whistle. Mr. Calonne said that was not right. The City did not have authority to regulate volume of the trains. Mayor Fazzino said the problem for most people was the increased decibel level. He lived at 1960 Park Boulevard for 10 years and train noise was not an issue during most of the 80s and early 90s. Something had happened over the prior few years. He currently lived three blocks from the train and found the trains comforting. The noise was just as loud three blocks as one half block away. He would like to explore the possibility of reducing the decibel level. Council Member Rosenbaum suggested alternatives which were failsafe measures at crossings to prevent people from crossing the tracks. The train needed to continue to sound its whistle. He did not want to create greater problems for those who lived near the train crossings by increasing the decibel levels or number of bells that sounded at the crossings. The larger issue, which Council Member Mossar and a member of the public mentioned, was the fact that Caltrain service was going to increase significantly over the next few years. The City needed to have a plan in place to deal
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with that reality. For example, the City might need to discuss closing one or two streets and consider a grade crossing, and there was still discussion about a Bart-type service down the peninsula.
Council Member Kniss said the measures in the Colleague=s memo seemed to address reducing train whistle noise, and the safety measures mentioned seemed to indicate that the whistle would not be needed.
Council Member Rosenbaum=s impression was that the supplementary safety measures were designed to be sufficiently fail safe and would no longer be necessary to use the whistle.
Council Member Mossar said the Colleague=s memo indicated a problem rather than setting policy and asked staff for assistance to understand whether the Council had any alternatives to address. Measuring the sound of train whistles would be a waste of time and resources because the City did not have any regulatory authority over the decibel levels of the whistle. AMENDMENT FAILED 3-5, Fazzino, Kniss, Schneider Αyes,≅ Ojakian absent. MOTION PASSED 7-1, Kniss Αno,≅ Ojakian absent. 13. Council Comments, Questions, and Announcements Council Member Mossar asked when the Council might expect a report on the Juana Briones House. MOTION: Council Member Mossar moved, seconded by Eakins, to direct staff to agendize an item regarding the Juana Briones House on a future agenda. MOTION PASSED 8-0, Ojakian absent. ADJOURNMENT: The meeting adjourned to a Closed Session at 9:50 p.m. The City Council met in Closed Session to discuss matters involving Existing Litigation as described in Agenda Item No. 7. Mayor Fazzino announced that no reportable action was taken on Agenda Item No. 7. FINAL ADJOURNMENT: The meeting was adjourned at 10:20 p.m. in memory of: 1) Marie Green, a former teacher at Jordan Middle School, who passed away at age 100 and whose husband served on the Palo Alto City Council during the 1930s; 2) Council Member
Ojakian=s mother, Servart Ojakian, who passed away at age 89; and 3) Naomi Sparrow, a well-known pianist and a member of the Stanford faculty, who passed away December 16, 1998.
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ATTEST: APPROVED:
City Clerk Mayor NOTE: Sense minutes (synopsis) are prepared in accordance with Palo Alto Municipal Code Sections 2.04.180(a) and (b). The City Council and Standing Committee meeting tapes are made solely for the purpose of facilitating the preparation of the minutes of the meetings. City Council and Standing Committee meeting tapes are recycled 90 days from the date of the meeting. The tapes are available for members of the public to listen to during regular office hours.
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