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HomeMy WebLinkAbout1989-04-10 City Council Summary MinutesCITY COUNCIL MINUTES PALO ALTO CITYCOUNCILMEETINGS ARE BROADCAST LIVE VIA KZSU-FREOUENCY90.i ON FM DIAL Regular Meeting April 10, 1989 L FAGS Oral Communications 61-258 Minutes of March 6 and March 13, 1989 61-258 Consent Calendar 1. Award of Conveyance Agreement - 1.776 Acre Former Bell Pwings and Loan and Park Boulevard Fire Station Sites to the Palo Alto Housing Corporation 2. Agreement with The Mark Group Engineers and Geologists for Engineering Services and Construction of a Leacnate Collection and Removal System at the Palo Alto Land- fill 3. Contract with Datamatic for Hand Held Meter Reading System 4. Contract with Musson Theatrical for Stage Rigging System Repairs at Children's Theatre 61-259 61-259 61-259 61-259 5. Agreement with Hardesty Associates for 61-259 Design Services for Repair and Reconstruction of Brick Walkways and Courtyard at Lucie Stern Community Center 6. Resoluticn re Support for Child Care Programs 61-259 and Adcepting, a Child Care Grant from the State of California 61-256 4/10/89 7. Ordinance Adopting a Plan for the Development 61-259 of Phase I of Byxbee Park 8. Policy and Procedures Committee Recommendation 61-259 re Skateboard Facility in Phase II of, Greer Park 9. Ordinance Establishing Underground Utility District Ho. 31. 10. Mayor Larry Klein re California Air and Space Center 11. PUBLIC HEARING: Planning Commission recom- mendation re Application of DES Architects for Zone Change for Property Located at 250, 262 and 266 University Avenue 12. 250 University Avenue Public Parking Project 61-267 13. Ordinance Amending Budget re Appropriation 61-268 for Catholic Social Services of Santa Clara County 61-260 61-261 61-261 14. Tennis Court Lighting and Resurfacing Project 61-269 at Rinconada and Mitchell Parks 15. Sand Hill Corridor Joint Policy Committee 61-269 Recommendation re Traffic Study 16. Council Member Gail Woolley re Appointments 61-276 to Centennial Steering Committee 17. Mayor Larry Klein re Request of Staff to 61-276 Provide Information Concerning Proposed Charter Amendment 18. Mayor Larry Klein re Emergency Support for Ballet Adjournment at 12:35 a.m. 61-277 61-286 61-257 4/10/89 Regular Meeting April 10, 1989 The City Council of the City of Palo Alto met on this date in the Council Chambers at 7:37 p.m. Mayor Klein announced that a Special Meeting to interview can- didates for the Centennial Staering Committee was held in the Council Conference Room at 6:20 p.m. PRESENT: Bechtel, Cobb (arrived at 7:59 p.m.) Fletcher, Klein, Levy, Patitucci, Renzel, Sutorius, Woolley (arrived at 7:38 p.m.) gRAL COMMUNICATIONS 1. Mayor Klein acknowledged National Library Week. 2. Mayor Klein read the "volunteer Recognition Week." proclamation and presented it to Beverly Balanis, Volunteer Coordinator. 3. Jeff Brown, 1216 Webster Street, spoke regarding concrete barriers that enclose benches on University Avenue posed hazards. 4. Greg Zilliac, 519 Everett, spoke regarding concrete barriers that enclose benches on University Avenue posed hazards arc' that cardboard boxes on University were annoying. 5. Edmund Power, 2254 Dartmouth Street, spoke regarding Palo Alto Harbor and Sea Scout Mariner Base. APPROVAL OF MIMES NOTIuN: Council Member~ Sutorius moved, seconded by Fletcher, approval of the Minutes of March 6, 1989, as ;orrected. NOTION PASSID 8-0, Cobb absent. NOTION: Council Member Fletcher moved, seconded by Sutorius; approval of the Minutes of March 13, 1989, as corrected. NOTION PROUD 7_0-2, Bechtel, Klein "abstaining." ORIUNT_CALMANDAR MOTION: Council Member Sutorius moved, seconded by Cobb., approvals of Consent Calendar Items 1 - 8, with Item 8 removed at the request of a member of the public. 61.258 4/10/89 1. Award of Conveyance Agreement -- 1.776 Acre Former Bell Savings and Loan and Park Boulevard Fire Station Sites to the Palo Alto Housing Corporation; Mayor is further authorized to sign any additional documents as required to comply with Conveyance Agreement (250-03) (CMR:220:9) 2. Agreement with The Nark Group Engineers and Geologists for Engineering Services and Construction of a Leachate Collection and Removal System at the Palo Alto Landfill; Project Manager is authorized to negotiate amendments to the agreement or additional services within the scope of work or incidental thereto, the aggregate value of which will not exceed $50,000 (1072-01) (CMR:212:9) 3. Contract with Datamatic for Hand Held Neter Reading System (1105) (CMR:192:9) 4. Contract with Musson Theatrical for Stage Rigging System Repairs at Children's Theatre (1304-01) (CMR:209:9) 5. Agreement with Hardesty Associates for Design Services for Repa.i,r and Reconstruction of Brick Walkways and Courtyard at icie Stern Community Center; Change Order not to exceed $3,885 (1312-02) (CMR:211:9) 6. RESOLUTION 6767 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO CERTIFYING ITS SUPPORT FOR CHILD CARE PROGRAMS AND AGREEING TO ACCEPT A CHILD CARE GRANT FROM THE STATE OF CALIFORNIA' (412-02-02) (CMR:222:9) 7. QJWINANCE 3862 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO APPROVING AND ADOPTING A PLAN FOR THE DEVELOPMENT OF PHASE I OF BYXBEE PARR" (1st Reading 3/27/89, PASSED 9-0) (1321-05) (NPG) *mimePBsZD 9-0. ?GEN A.GE NI TIONS . Ah[ DitLETIONS MOTION: Mayer Klein moved, seconded by Renzel, to consider Item 8 prior to Item 9. MOTION PABBBD 9-0, 8. Policy and Procedures Committee Recommendation re Skateboard Facility in Phase II of Greer Park (CMIR:132:9) (1167) Council Member Cobb asked how a skateboard facility would impact the other plans for Greer Park. 61-259 4/10/89 0 i Recreation Superintendent Dan Williams said impacts would be explored as part of the design phase. Council Member Cobb said there were specific plans for certain kinds of recreational facilities in Greer Park and he was concerned about the skateboard facility impacting those plans. Assistant City Manager June Fleming referred to the changes which were made in the master plan for Greer Park. Public Works advised the design could be incorporated into the present plan. Council Member Cobb asked about liability. Senior Assistant City Attorney Sue Case said the Risk Manager advised that a potential skateboard facility was a completely self - insured risk, Such risks needed to be considered by the Council. There were too many 'Jifs" in such a proposal and staff could not say it was safe especially in terns of insurance. Council Member Renzel said the P&P Committee discussed the liability issue. There were only two parks in existence and neither reported any liability experience. The liability issue would return to the Committee with the actual design phase along with numbers of users. Ms. Fleming said while the City's pool of insurance would not cover skateboard facilities, staff was directed to explore other means for providing such insurance. That information would return when the item returned to the Committee with the design phase., Charles Scott, 3136 Genevieve Court, was concerned about more changes and delays in the development of Greer Park. Chris Weeks, 503 Jackson Street, urged support for the skateboard facility in Greer Park. NOTION: Council Member Renzel for the Policy and Procedures Committee moved to incorporate a skateboard facility into the design of Phase I1 for Greer Park if feasible. MOTION PASSED 9-0. iWIWISHHD BUS ZES 9. PUBLIC HEARING: Ordinance Establishing Underground Utility District No. 31 (1130) (CMR:191:9) (Continued from 3/27/89) Council Member Sutorius advised he would not participate in the item due to a conflict of interest. 61-260 4/10/89 Council Member Patitucci referred to the previous undergrounding, and asked whether it was typical for the teleph -*+e poles to still be up. Director of Utilities Rich Young said the lag time was not uncommon between the time of the utilities undergrounding and the telephone pole removal. Mayor Klein declared the Public Hearing open. Receiving no requests from the public to speak, he declared the Public Hearing closed. LION: Council Member Fletcher moved, seconded by Renzel, to introduce the ordinance. ORDINANCE FOR FIRST READING entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 12.16.020 OF CHAPTER 12.16 OF TITLE 12 OF THE PALO ALTO MUNICIPAL CODE BY ESTABLISHING UNDERGROUND UTYLITY DISTRICT NO. 31" NOTION PASSED 8-0, Sutorius "not participating." 10. Mayor Larry Klein re California Air and Space Center (continued from 3/27/89) (725-02-02) NOTION: Mayor Klein moved, seconded by Cobb, that the Council support the proposed California Air and Space Center at NASA, and also support S.H. 69. Bunny Good, Founder, International Group Organization for the Dis- abled( P. O. Box 824, Menlo Park, opposed the expenditure of any funds on such a center. hO IOE PANS= 11-0. P5IBLIC KEARIHGS 11. PUBLIC HEARING: Planning Commission and Architectural Review Board Recommendation re Application of DES Architects for a Zone Change for Property Located at 2 50 , 262 and 266 University Avenue (237) (CM :217:9) Council Member Fletcher queried the project had more square footage, yet the report (0 :217:9) indicated less trips would be generated, especially during peak hours. Associate Transportation Engineer Carl Stoffel the previous use was a comaercial bank, and it generated considerably more trips compared to the 'proposed office and retail functions. 61-261 4/10/89 Council Member Renzel was concerned about the two-way ramp in the parking garage and that the access seemed tight. Mr. Stoffel said one of the conditions of approval was to ensure sufficient turning radius was incorporated into the design, Council Member Renzel referred to the parking garage in the building at the corner of Bryant and University Avenues. As ()lie went down that ramp, there were three parking spaces at the bottom and then if one made a right turn, it was blind for two-way traffic. If that represented minimum Aonfiguration, she hoped the proposed project would have a better radius. Chief Planning Official Carol Jansen said the turning radius was a strong concern expressed throughout the design of the project. The parking garage configuration was redesigned in order to not repeat some of the problems which occurred in public parking garages. Council Member Levy understood 84 parking spaces were required for the project. Ms. Jansen said the ordinance required 105 spaces, 23 of which would replace the existing parking spaces located on the adjacent vacant property which the City temporarily leased for public parking purposes. In 1986,, when the Crocker Bank Building was assessed for parking purposes, it was given credit for the existing parking spaces. If, however, the parcel had been separately -owned and an application for development was submitted, it would not be required to replace the 23 parking spaces. Council Member Levy clarified 84 spaces was the figure they were working with. He asked about the Planning Commission's recommenda- tion as to the appropriate number of parking spaces to be provided. Ms. Jansen said 84 spaces would be required if both the properties were developed independent of one another( but with the game square footage. Council Member Levy asked about the 69 spaces being provided by the developer. Ms. Jansen said 69 spaces were being provided on the private level of the garage. Regarding the, difference between the 84 and the 69, because of the assessment district funding, the project as presently proposed, would require the first level of parking to be all public. Consequently, there were 131 total spaces, 62 public, 69 private. 61-262 4/10/89 Council Member Levy asked if the developer could be asked to provide the assessment district with funding for the equivalent of the extra 15 spaces. Ms. Jansen said yes. Council Member Cobb referred to Condition C4, that public hearings for the Planning Commission and City Council should be scheduled one year after occupancy to allow review and consideration of the conditions. He queried what could happen then. Ms. Case said the ordinance would have to be amend3d. Mayor Klein declared the Public Rearing open, and asked whether any written objections had been received. City Clerk Gloria Young said no. Jim Baer, 532 Charming Avenue, referred to the anticipated amendment hours of alley closure after one year. It would not be difficult for the applicant to be asked to make a $250,000 contribution for lighting the opposite side of Ramona Street. The one-year review to modify conditions was not unlike what would happen under a conditional use permit, specifically on the issue of hours of alley opening. Regarding parking spaces, he supported the approach of allocating one level to an assessment district only, and one level to the applicant especially since the applicant was providing the fee to the land, and the interest carried during the course of construction. After the project was completed and an occupancy permit existed, the reimbursement from the assessment district would take place. The applicants' ambitions were to participate in the development of the downtown, as a community, and as developers who needed to make a financially viable project. Tom Gilman, project architect with DES Architects, Redwood City, noted that Ramona Street was recognized as an important example of urban design. The project was basically four stories at the corner and stepping down to three stories and then two stories terracing toward the existing two-story buildings on Ramona Street. The building was designed in a Spanish Colonial revival style of archi- tecture in keeping with the other buildings along the street. The design incorporated completely new paving in the alloy area added new landscape pockets, created a completely new drainage system, and provided a common area in the project itself. The coffin areas would be outdoor public spaces that might be used for businesses to spill onto, or a small coffee bar. Council Member Fletcher asked if the coon area could be used for public events like mall concerts or drama presentations. 61-263 4/10/89 As Corrected 5/15/89 1 Mr. Gilman said yes. There was a balcony portion with a cascading staircase. MOTION: Council Member Levy moved, seconded by Renzel, to allow the speaker an additional five minutes of testimony. Mayor Klein would not support the motion. The rules made sense, and an additional five minutes set a bad precedent. MOTION PA88M0 5.4, Bechtel, Klein, Patitucci, Woolley "no." Mr. Gilman referred to a common refuse area where all the existing dumpsters on the Bryant and Hamilton legs of the alley would be gathered. There would also be a common bicycle area to provide locked bicycle parking indoors, as well as excess bicycle parking outdoors. Council Member Renzel referred to the alleyway, and said while all of the pictures looked good, she queried whether any studies had been done regarding how much sun would be in the outdoor areas. Mr. Gilman said given the orientation of the building, the studies showed that the Ramona Street side would have sun in the latter half of the day, and the courtyard itself would have sun in the early part of the day. The sun would be in the plaza or in the alleyway in the morning. In the afternoon the shadow would begin to travel across the plaza. Council Member Sutorius said in the renderings, the archway lcoked like it was an arch with stone. In the elevations, the archway was identified as "stone accents," both at the University Avenue end end at the garage entrance. Be. asked for clarification. Mr. Gilman said the material would be real stone; probably a sand- stone type of materials two centieeters in thickness, and adhered to the building as a part of the construction method. The building skin would be cement plaster. Bob Moss, 4010 Orme, commented on the 50 -foot height limit. The intent of the height limit was to allow buildings of approximately four to five stories, ten feet per floor, or 12-1/2 feet, restric- ting buildings so they did not overwhelm properties. In the proposed building, the tower went above the limit, and Council needed to decide whether it met the intent of the limit. He hoped the project could be scaled down. Be was concerned about whether the alleyway would be successful. He suggested the developer work with City staff any:. the businesses that fronted along the alley in order for events in the alley, such as concerts, performances, etc. to work. 61-264 4/10/89 NOTION: Counc i 1 Member Cobb moved. seconded by Bechtel, to approve the Planning Commission and Architectural Review Board recommenda- tions adopting a negative declaration and introduced the ordinance based on the findings and conditions described in the staff report (CMR:217:9), as follows: ORDINANCE FOR rIRST READING entitled "ORDINANCE 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 PROPERTY KNOWN AS 250, 262 AND 266 UNIVERSITY AVENUE FROM CD --C (GF) (P) TO PC" Mayor Klein said 94 conditions were extraordinary. AJ ZNDKENT: Council Member Woolley moved, seconded by Renzel, to add Condition B17 under Public Works as follows: B17. Provisions for the separate collection of recyclable materials shall be included within the area of the two trash enclosures. As a minimum there shall be a bin for glass and stacking space for the future recycling of corrugated cardboard. Council Member Woolley said the commercial portion of the community had a greater need for recycling than the residential areas. One of the largest portions of the commercial waste products was cardboard. Small businesses had a problem with handling cardboard, so she felt there was a good opportunity to recycle cardboard in the community trash collection area of the project. Shy: conferred with the Public Works and the Planning Department staffs to determine the feasibility, and everyone seemed to think it was reasonable.- In the future, she suggested the system of recyclable materials be included in all commercial. projects. Vice Mayor Bechtel concurred. ANNIDNNNT INCORPORATED INTO MAIN MOTION NY MAKER AND SKCOND Council Member Renzel was relieved to see an attractive project which would replace the existing parking and provide a project which waa compatible with the historic area of Ramona Street. While she was not overly anxious to have 41,000 square feet of addd it iona l space downtown, given it would happen anyway, the proposed project was one of the nicer applications to have been received. The hoped the project would be successful. Counc a 1 Member Cobb complimented Roxy Rapp and Jim Baer on their creative pro j ect . He wanted to see more similar projects for down- town. Re was excited to see how the project beautified, 61-265 4/10/89 1 1 complimented and preserved the present architecture, and hoped it would give the community an economic shot in the arm. Council Member Patitucci was encouraged the proposed project was a result of the downtown study where a percentage ofthe remaining square footage to be developed was allocated for such a project where the developers would meet the community's urban design needs. He supported the proposed project, and urged other developers to do the same. Council Member Levy concurred the with imaginative nature of the project and agreed it included the intent of the Council in terms of bringing needed amenities to the downtown area. He agreed with Bob Moss in terms of the 50 -foot height limitation and the degree to which the proposed project surpassed 50 feet was in line with the Council's intent. In terms of the alleyway, he was somewhat concerned about the view of City Hal/, but felt the alleyway would be used more more than other alleyways in the area. He was concerned about the parking provided for the new plaza. Sixty-nine parking spaces were too few and putting the bulk of 130 additional spaces on the assessmer` district was too many. He preferred at least 84 spaces in the new public garage. Z 1 z Council Member Levy moved an additional condition that the developer should provide funding for the assessment district for 15 parking spaces in the parking garage, resulting in a total of 84 project provided spaces, in agreement with the number called for in the existing underlying zone. ANZMDMIXT DIAD FOR LkE of A SECOND Council Member Sutorius was proud government was working with local businesses. He appreciated and commended the initiative, commit- ment and cooperation of Roxy Rapp, Jim Baer, the Planning Commission, Architectural Review Board (ARB) , staff, and all involved participants of the project. The ARB offered a sound recommendation in relation to the double -wide arches at the base of the building. The building at 499 Hamilton Avenue was an excellent example of attention to detailand what the ARB hoped for. Across Cowper Street was another building that might be categorized as an eclectic. Spanish/Roman/colonial where the attention to detail year lost. In regards to parking, there was no land costs to the assessment district and no carrying charges during construction. In addition, the private parking on the second level became public parking from 5:00 p.na. on weekdays and also Saturdays, Sundays and holidays. He was delighted about the project and wished all the persons involved much success. Vice Mayor Bechtel said the project was not an easy one. She asso- ciated herself with the commendations given by her colleagues, and 61-266 4/10/89 said the project would make an attractive addition to the downtown area. Council Member Fletcher endorsed the retail usage of the ground floor of the plaza. Mayor Klein asked why a variance was needed on the 50 -foot height limit. Ms. Jansen said a variance was specifically required in the Planned Community ordinance. A special study was being done to amend the Planned Community ordinance but there, was nothing Council could do to short-cut the ordinance. Mayor Klein associated himself with his colleagues. x0TIO1 PASSED 9-0. REPORTS OF OFFICIALS 12. ` 250 University Avenue Public Parking Project (410-03) (GMR:215:9) Council Member Levy asked about the exact form notification wculd take for members of the assessment district. Ms. Case introduced bond counsel, Stephen Casaleggio. Stephen Casaleggio, Vice President, Jones Hall Hill & White, a Professional Law Corporation, said the Palo Alto Municipal Code required each property owner be notified of the time, date and place of each public meeting, the amount of proposed annual assessments for the first year, and the description of the work to be done. Council Member Levy asked if Council could request the developer to include in the notification any iiformation it desired, to present positively the information about the parking. Mr. Casaleggio cautioned Council to remain inpartial, Council Member Cobb asked about the inequity of dealing with parking spaces for individual unique circumstances and addressing the inequities in the future. Mr. Casalegqio said staff looked ,Into the inequities of residential/commercial parking issues and changes had been made. Looking into the inequities was part of the hearing process, and the Council was free to consider eachcase as it occurred. 61.267 4/10/89 0 Director of Public Works Dave Adams that the Engineer's Report reflected preliminary figures which might be modified as refine- ments were made. MOTION: Vice Mayor Bechtel moved, seconded by Cobb, to approve the staff recommendation to: 1. Adopt the resolution of preliminary determination and intention to make acquisitions and improvements and levy reassessments. 2. Adopt the resolution requesting preliminary approval of the engineer's report and establishing a date, place and time for a public hearing. 3. Approve the agreement with Jones Hall Hill and White for bond counsel services. „S TIO 6168 entitled "RESOLUTION OF PRELIMINARY DETERMINATION AND OF INTENTION TO MAKE ACQUISITIONS AND IMPROVEMENTS" RESOLUTION 6769 entitled "RESOLUTION PRELIMINARILY APPROVING ENGINEER'S REPORT, APPOINTING TIME AND PLACE OF HEARING PROTESTS AND DIRECTING NOTICE THEREOF" Agreement with Jones Hall Hill & White for Legal Services MOTION PASSED 9-0. R 920.93; pAm 13. Ordinance to Provide An Appropriation for the Catholic Social Services of Santa Clara County (412-02) (CMR:201:9) Bunny Good, Founder, International Group Organization for the Disabled, P. O.Box 824, Menlo Park, CA 94026-0824, was concerned about public tax moneys going to specifically assist religious organisations; it did not allow for the separation of church and state. MOTION: Council Member Levy moved, seconded the staff recommendation to adopt the budget wing tunas from Unreserved Fund Equity of Fund to Community Development Block Grant Catholic Social Services. by Bechtel, to adopt amendment ordinance, the Federal Revenue Project No. 01025, 61-268 4/10/89 ORDIN4Nrg OF PALO TO EST AB RESURFA Contr NOTION ORDJNANCE 1863 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1988-89 TO PROVIDE FOR AN APPROPRIATION FOR THE CATHOLIC SOCIAL SERVICES OF SANTA CLARA COUNTY" NOTION PAMBED 9-0. 14. Tennis Court Lighting and Resurfacing Project at Rinconada and Mitchell Parks (810-06) ( lR:210:9) MOTIO1 s Council Member approve staff recommendat Sutorius moved, seconded by Cobb, to ion to: 1. Adopt a Budget Amendment Ordinance in the amount of $100,000 to establish CIP 18905, Tennis Court Lighting and Resurfacing Project. 2. Authorize the Mayor to execute a contract in the amount of $108,935 with General Lighting Service, Inc. for improvements of Mitchell Park and Rinconada Park Tennis Courts. 3. Authorize staff to negotiate and execute change orders to the contract for additional services with the scope of work inci- dental thereto, the aggregate value of which change orders will not exceed $16,500. entitled "ORDINANCE OF THE COUNCIL OF THE CITY ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1988-89 ABOLISH AND PROVIDE AN APPROPRIATION FOR CAPITAL r VEMENT PROJECT NUMBER 18905" (TENNIS COURT LIGHTING AND CING) act with General Lighting Service, Inc. for Improvements 83D 9-0. 15. Sand Hill Corridor Joint Policy Committee Recommendation to include a Traffic Study in the Sand Hill Corridor Procedural Framework (1168-02) (CMR:216:9) Mayor conf Klein advised he would not participate in the item due to a lict of interest. Council Mir Hensel clarified moving the study forward resulted in 6 $96,000 expenditure. She queried where • the additional $48,000 would come from. City Manager Bill Zaner said the $48,000 were presently unappropriated reserve funds. 61-269 4/10/89 Council Member Renzel asked if the same was true for the $250,000 the City would be obligated to pay if it opted out of the project. Mr. Zaner said that was correct. If the total study cost as much as $500,000, and if Palo Alto shared in the costs, there were no funds presently budgeted and the moneys would come from the reserve fund. Bill Peterson, 228 Fulton, Palo Alto was concerned about the Council approving a Willow Road expressway. The City should not agree to pay half of the cost of such an expressway because extending Sand Hill Road would worsen the situation. He urged Council to direct the Joint Policy Committee to consider the benefit of limiting the cost of the study, including the cost of an early morning study of the Willow to Stanford traffic patterns. Council Member Fletcher asked why Mr. Peterson assumed the potential growth in the morning was greater than in the afternoon. Mr. Peterson said the potential impact on residents was worse in the morning because children were out in the morning going to school. Tony Badger, 381 Hawthorne Street. said the major benefactor of the project would be Stanford University. The traffic flow would be increased through Palo Alto. He noted the lack of adequate public notice of the immediacy of the project, and felt Council's mind had already been made up, without adequate public input. He was upset that past meetings laid the ground work for the City being finan- cially responsible for backing out of the project. He was also concerned about the Council's objectivity and how strong Palo Alto residents' voices would be against the major investment that should be paid, in his opinion, entirely by Stanford University. Herb Borock, 2731 Byron Street, urged rejection of the proposal to move the traffic study task from the environmental review phase to the procedural framework and to reject the proposal to pay Stanford University thousands of dollars if no Environmental Impact Report (EIR) was produced or hundreds of thousands of dollars if either an inadequate EIR was prod, eed. or the no -project alternative was adopted, or City officials with a potential conflict of interest were to participate in the natter. The California Environmental Quality Act (CEQA) provided elaborate protection for public participation, yet the process previously adopted by the City Council already set the traffic study tasks outside of the EIR, and it was now suggested the traffic study be moved entirely outside the environmental review process. Last month the Council voted to request the Joint Policy Committee (JPC) to hold publicly noticed evening acoping meetings for the EIR, and the traffic study task was identified as one the most important elements of the Sand Hill 61-270 4/10/89. study. It was now suggested that such an important element begin immediately without the normal public process required by CEQA. The traffic study task included elements such as mitigation measures and a series of reports, drafts, and agency reviews which went far beyond the information collection activities which were categorically exempt from CEQA. The traffic study apparently expected to use previously collected data for the Sand Hill corridor intersections, and the City Council was cautioned last month against using old data. CEQA was clear that Stanford was responsible for paying the costs, incurred prior to disapproval of a project. It was proposed that \ Palo Alto pay 50 percent of the costs of the disapproved project because of "the history associated with the potential extension of Sand Hill Road." Ten years ago an extension project was terminated because two members of the City Council participated in deliberations despite potential conflicts of interest. More recently, the City Council was required to set aside an extension appzoval because of an inadequate EIR. To him, Palo Alto would most likely be paying for a project that was terminated through Stanford's actions. There was no dollar limit on what the City could pay for the project, and since Stanford University and the Stanford Medical Center would be the major beneficiaries of the proposed Sand Hill corridor project, they should bear the same risk as every other project applicant. He was concerned about subverting the EIR process. The last time the Council voted to approve a Sand Hill extension, the Mayor com- mented, "even with an extension, Sand Hill Road would ba a difficult road to use. Traffic would still be backed up and people would still spend a lot of time getting to Sharon Heights or Portola Valley at 5:30 or 6:00 p.m. That should be said many times because I believe if the road was built, people would complain to Palo Alto and Stanford that it did not do what was claimed for it in 1984." He urged rejection of the proposal. Council Member Renzel asked how the traffic study would relate to CEQA if it was done prior to the EIR process. Director of Planning and Community Mnviron cent Ken Schreiber said it was important to note that for most of the environmental reviews done by the City, heavily reliance was placed on data collected prior to the initiation of the environmental process. If questions were asked in the CEQA process that did not have the appropriate data for response, then the information would be researched. CEQA guidelines did not require the initiation of data collection fof low the initiation of the environmental review process. Council Member Rensel asked if the City had ever had such a cost - sharing arrangement for an EIR process. Mr. Schreiber said no. 61-271 4/10/89 As Corrected 5/15/89 Council Member Renzel asked who would bear the additional costs if additional costs were required for the traffic study. Mr. Schreiber said such costs would fall under the EIR process and the cooperative agreement. Council Member Fletcher asked about Mr. Peterson's concern over the limited area of the origin/destination study, and the increased morning traffic in north Palo Alto. Assistant Planning Official George Zimmerman said the corridor could be included in the traffic studies, including parts of University Avenue east of Middlefield and along Willow Road between Middlefield Road and Hzghway 101. The issue of morning peak traffic in north Palo ]alto would be reviewed in the study. Council Member Fletcher asked about the survey covering the concerns regarding the increased morning traffic in north Palo Alto areas. Mr. Patterson assured the Council that the concern about the morning peak hour traffic would be covered in the survey. Council Member Fletcher asked about the mail -back responses on the surveys. Mr. Patterson said the survey was difficult to measure in per- centages of sent out versus received. back. The license plate test was done in a tight area. The survey forms were handed out and the return rate was very high. They measured the daily traffic flow and tried to get a go;,statistical sample, so the results were considered valid. Council Member Fletcher inquired about the use of old data. Council understood old data would not be used for the study. Mr. Patterson said data studies done recently at Stanford intersec- tions could be considered valid. Traffic data had a 12 to 18 month life. Council Member Renzel believed the City's agree=ing for part of the study even if the project was turner down strongly biased the outcome of the decisions to be made. She queried whether the budget would clearly indicate me te the amounts and from w re the - money would from. City Manager Bill Zeiler said staff intended to budget the moneys and show them in the new budget so Council could see where they were coming from. 61-272 41/1V89 Vice Mayor Bechtel asked whether the origin and destination studies accurately reflected which trips began and ended in Palo Alto versus those just passing through. Mr. Patterson said the mail -in surveys would cover such information. They were dealing with individual travel behavior so there was some limit in terms of accuracy. They were trying to raise the level of available information so reasonable decisions could be made. He believed the data would be valid and would help create the added level of understanding. MOTION: Council Member Woolley moved, seconded by Levy, to approve the staff recommendation as follows: 1. Adopt a policy that the City enter into a cost -sharing formula with Stanford University such that the City would reimburse Stanford for one-half of the costs of preparing the Sand Hill Road extension EIR, including traffic studies and concel,tual roadway alternative design work, if the City terminates the Sand Hill Road extension project prior to authorization of the final design and construction phase of the project. 2. Direct staff to complete negotiation with Stanford University on a Cooperative Agreement implementing the cost -sharing policy under Recommendation 1, 3. Approve the budget amendment o, dinanc _ (see Attachment II), for the Sand Hill Corridor Procedural Framework to include these traffic studies. 4. Approve the amendment (see Attachment III) to the consulting services agreement fc.r the Sand Hill Corridor Procedural framework to include these traffic studies within the scope of work. ORDINANCE 1865 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1988-89 TO PROVIDE AN ADDI'T'IONAL APPROPRIATION FOR TRAFFIC STUDIES WITHIN THE SAND HILL CORRIDOR PROCEDURAL FRAMEWORK Amendment No. 2 to Contract No. C0000788 for Professional Consultant Services with CH2M Hill for Sand Hill Corridor Procedural Framework Council Member Woolley said the only change before the Council from what was presented last time was that the traffic study was moved to Part B instead of being part of the EIR. The task force believed the change was an improvement because it would provi0e. both Councils and Stanford more information before making the second "go" or "no go" vote. 61-273 4/10/89 1 Council Member Fletcher said to her the most significant change from what Council approved earlier was the agreement to pay half the coats of the studies, including the EIR. She could not understand how the process to determine whether to go ahead with the project could be objective with a price tag attached. The ordinance clearly stated that Stanford Univers:qty and the Stanford Medical Center would be the primary beneficiaries of the proposed Sand Hill Corridor project. She queried why Palo Alto should be responsible for a significant part of the costs. She opposed parts 1 and 2 of the motion. NOTION DIVIDED FOR PURPOSES OF VOTING Council Member Renzel concurred with Council Member Fletcher with respect to the cost sharing biasing the process. Somehow Stanford's project was now Palo Alto's and she queried why the City of Menlo Park was not paying a portion of the costs. It seemed contrary to an open process to have the City stand to lose $250,000 when Palo Alto was trying to figure out how to reduce its budget by $1,000,000. She noted the City Manager had polled all the Council Members in May, 1987, abou* whether they would support such a cost -sharing, and it was interesting that cost -sharing was the recommendation from the JPC two years later. ANINDNINTs Council Member Renzel moved, seconded by Fletcher, to delete Noe. 1 and 2 with respect to the cost -sharing agreements. Mr. Zaner urged Council to defeat the amendment. The project was commenced as a cooperative venture which was the reason for the Joint Cooperative Policy Council (JPC). The intent of the JPC was to find a way, between the three agencies, to build a highway and a roadway which everyone could support. Stanford would pay the full cost of the project or the project would not be built. Stanford had to come up with a sizable amount of money up front to perform a project that two public agencies were interested in and had defeated twice. Stanford was concerned about spending $250,000 to do technical studies for a project that two public agencies were interested in and had already turned down twice. The arrangement Palo Alto made with Stanford was that Stanford would pay for the entire EIR if the project was built. If for some reason the project was stopped before the construction drawings were done and after Stanford wade the large outlay of funds, then the City of Palo Alto would reimburse Stanford for one-half the costs to bring the item to that point. He could think of no project which received more public attention, information and notice than Sand Hill Road. If Palo Alto was not prepared to move forward with the project, then it should be stated. 61-274 4/10/89 As Corrected 5/15/89 Council Member Patitucci clarified the City would likely pay for an EIR if it wanted to make improvements on public land. He clarified the City just finished paying a lot of money for an EIR having to 'do with improvements all over the City some of which would be done and some of which would not be done as a result of the EIR. Mr. Zaner said that was correct. Council Member Patitucci did not believe the cost -sharing agreement had anything to do with the fact Council might make a decision for or against the project. Council Member Renzel asked who paid for the project if a referen- dum occurred or a lawsuit resulted in the project not being built. Mr. Zaner said the City withdrew from the project through whatever means, the costs would accrue to the City. Council Member Fletcher clarified the Sand Hill Road project had not gone through previously because of a lawsuit, not because Council turned it down. Mr. Zaner agreed. The fact that Council had approved it was one reason for the Joint Policy Council. Vice Mayor Bechtel opposed the amendment. It made sense to do the studies at that time in order to get the necessary information in a timely manner. The City previously committed to the joint powers agreement between the various agencies, and contrary to some public opinion, Pale Alto would benefit. The City received revenue from the Shopping Center and it was to Palo Alto's advantage to ensure that shoppers and others were able to get to their destination without going through residential areas. The required information would help determine how people got to and from the various locations. ANUIDNINNT FAIL= 2-6, Fletcher, Renzel "aye," Klein "not par- ticipating." NOTION $B= 6-2, Fletcher, Renzel "no," Klein "not participa- ting." POTION: Council I ber Cobb saved, seconded by Levy, to bring forward Item 16 ahead of Item 16. V ,"e Mayor Bechtel believed it was unfair to those people who were th ere foc items 16 and 17. 61-275 4/10/89 1 LOTION FAILAD 2-7, Cobb, Levy "aye." COU CIL MATTR5 16. Council Member Gail Woolley re Appointments to the Centennial Steering Committee (1307-02) NOTION: Council Member Woolley moved, seconded by Renzel, that the Mayor be authorized designate an ad hoc subcommittee of three Council Members to: 1. Propose the appropriate size of the initial Centennial Steering Committee; and 2. Nominate the members of the Centennial Steering Committee for the Council's consideration. Further, that the appointments to the Centennial Steering Committee be moved to the April 24, 1989, City Council Meeting. Council Member Cobb was concerned about changing the process mid- stream. MOTION PASSED 8-1, Cobb "no." 17. Mayor Larry Klein re Request of Staff to Provide Information Concerning Proposed Charter Amendment (701-02) Bob Moss, 4010 Orme, was disturbed about the proposed Charter amendment not addressing the interests of the general public. He proposed a community committee, with representation from various groups, including City staff, to do fact finding and present it to the Council and the community. lony Spitaleri, 1125 Merrimac Drive, Sunnyvale, President. Firefighters Union, raged the formation of a committee comprised of citizens of Palo Alto, police officer and firefighters to study the levels of public safety. The issue was public safety. The f ire f ighters and police officers laid it on the line each day for the safety of the citizens, and would continue to do so. The loss of equipment and people threatened public safety. The proponents of the amendment would abide by what the citizens wanted. NOTION: Council Member Levy moved, seconded by Cobb, that the City Manager be directed to prepare a report responding to the allega- tions in the circulated flier and analyzing the effect on City operations should such a measure be adopted by the voters. 61-276 4/10/89 Council Member Levy agreed with Mr. Moss in terns of the need for a committee to determine the facts about the safety of the community. He invited other groups to investigate the issue. Council Member Cobb suggested a public investigation include information related to the history of staffing levels, budget levels and budget cuts, and the budget level as a percentage of general fund expenditure over the years, the fire and police safety records, a summary of statistical data comparing the safety levels in Palo Alto to comparable communities, a summary of level of service data, and soae information regarding pay levels for the City's safety officers. Council Member Patitucci believed comparison information should be available annually for the past five years. He was also interested in the nature of the types of calls for emergency services. MOTION PASSED 9-0. 18. Mayor Larry Klein re Emergency Support for Western Ballet (1304) MOTION: Council Meter Patitucci moved, seconded by Renzel, to limit the speakers to three minutes each. Council Meter Cobb opposed the motion. Council Member Renzel would normally agree with Council Member Cobb. She had received many calls on the issue and the focus of the comments was fairly consistent. She expected most people could articulate in three minutes. MOTION MN= 6-3, Cobb, Levy, Sutorius ono."' Steven Kiiston, 651 Tennyson Avenue, felt other companies were paying more rent than Western Ballet and were able to survive. He hoped the financial need of the Western Ballet Theatre was not the only thing Council considered. Mayor Klein asked what would happen if Western Ballet Theatre did not survive in Palo Alto. Mr. Kiloton said it would not be crippling. ]gene Fife, 500 Railway, Campbell, looked at the financial situation of the Western Ballet Theatre and felt iS they could meet the challenge of overcoming their financial difficulties, they could main as a community cultural asset. 61-277 4/10/89 Randy Seiger, Board President of Zohar Dance Company, 320 California Avenue, said all dance companies exsted on small budgets. He suggested the City take an amount such as $25,000, and provide rehearsal halls for the companies to have recitals. He felt the funds should be used to benefit all the dance companies. John Prinz, Master and Teacher, Zohar Dance Company, 320 California Avenue, didnot want any company to go out of business; other companies were surviving, and he queried why Western was not. Ehud Krauss, Founder, Zohar Dance Company, 320 California Avenue, believed investing $25,000 in dance was wonderful. He wanted the money to be divided equally between the four or five dance groups in Palo Alto. Donna DeBenedetto, Acting Director, Western Ballet Theatre, 1305 Marshall Street, #406, Redwood City, thanked the Council for its suppert. She agreed all theaters should be supported, and the Council and City should oversee its financial investment. She suggested some Council Members sit on the Board for the Western Ballet Theatre. Council Member Sutorius referred to some inaccurate quotes that were in the news media. He asked Ms. DeBenedetto about her reaction to hearing about Mayor Klein's proposal, and about the ballet's current financial situation. Ms. DeBenedetto said the budget was $309,800. Seventy percent was earned from tuition, ticket sales, and sublet rental; 30 percent was raised through individual donations, City of Palo Alto's contract for services, and corporate donations. The Ballet Company had raised $5, 000 towards the $25,000 goal, and a grant was ,,ending at the Packard Foundation for $15,000. Council Member Fletcher asked about the Theatre Company's reaction to the money from the City being in the for of a loan with a pay back period of one year. Ms DeBenedetto said that was fine. Council Member Cobb asked about the internal management. problems. Ms. DeBenedetto noted the difficultiee of sustaining a director due to the Western Ballet being a nonprofit organization. Alison Lee, 1241 Harker Avenue, Past Chairman of the Standing Committee on the Arts, had followed the negotiations with the City/School Liaison Committee regarding the leases of the school surplus space. The arts were thriving in Palo Alto, with Theater 61-278 4/10/89 Works, West Bay Opera, and the Children's Theatre, due to the support received from the City and the citizenry. About 15 years ago, the City shifted to the contract system, which did not supply full production support but provided space and supervision. She supported the proposed plan. Council Member Cobb asked about the potential problem of supporting one group over another. Ms. Lee saw no problem of supporting one group over another. She felt the problem was an offset of the City/School lease timing problem. No one expected the lease to take two years to process. She believed anything that supported the dance community was good. Council Member Levy asked what standards should be set up for giving assistance to organizations. Ms. Lee felt no one was really totally satisfied with the proposal. The financial support needed to be tied in with encouraging the Western Ballet Company to solve its long-range financial planning. Council Member Renzel said the Council had heard that several dance companies were paying more rent than the Western Ballet Theatre and managing toy keep their cash flow. She asked how Ms. Lee could justify helping the Western Ballet when others were having to manage for themselves. Ms. Lee said classical ballet, in a subprofessional form, was not the most popular. 10 one in the arts expected the Children's Theatre to support itself in the full range of art forms needed. Many of the dance schools were privately owned. The Ballet Arts Center on Middlefield Road was driven out by the rezoning. Twenty years ago, they could have rented another place, but not now. That was why a center for the alts was greatly needed. Council Member Woolley asked if there was a dance school housed at Cubberley. Ms. Lee said yes, the L'Zcole de Dense. They paid rent to the Palo Alto Unified School District (PAUSD). It had been able to survive partly because it rented space by the hour. A school with a large company, such as the Western Ballet School, could not rent space by the hour. Jeri Lee, 1381 Forest Avenue, was skeptical about whether the situation with the Western Ballet Theatre was a real emergency because arts groups generally 1 ived in a hand-to-mouth existence. She suggested the $25,000 be divided equally among all of the 61.279 4/10/89 1 ballet schools in Palo Alto, many of which had company aspirations. Dividing the money equally would encourage cultural diversity. Gorda Ungerman, 74 Laburnum Road, Atherton, pointed out that the L'Ecole de Dense was thriving and well. She had a daughter that attended the school. The teacher was gifted and an excellent manager. Regarding Mayor Klein's proposal, she urged the funds be divided equally between all the ballet schools in Palo Alto. Margaret Vanloo, 1487 College Avenue, a volunteer at the Western Ballet Theatre, admired the Children's Theatre productio-T-, She believed the Theatre would be managed better under Ms. DeBera edetto . Tim Collins, 252 Everett Avenue, enjoyed the ballet classes. He attended the Western Ballet School after checking all of the local schools and received excellent instruction. He was concerned about relegating the Western Ballet to a better level than the other ballet organizations. Christine Morgan, 221 Arlington Way, Menlo Park, Director of L'Ecole de Dense, began her school in 1987. She taught all of the classes and worked hard to stay within the budget. In order to grow, she needed financial assistance. She felt all of the dance groups in Palo Alto should have an equal share of the money that was available for dance. Council Member Cobb asked Ms. Morgan how she would feel if Western Ballet ceased to exist because of a lack of immediate, short-term support. Ms. Morgan said when one door closed, others opened. She had mixed feelings. Council Member Cobb pointed out Mayor Klein's proposal suggested a form of matching funds, i.e., a dollar granted for a dollar raised. He asked if that sort of formula would be of value to Ms. Morgan in her operation. Ms. Morgan said yes. However, she wanted to make sure shi understood it. Andrea M. Jensen, 477 Matadero Avenue, applauded the Council for its support of arts in general, and dance, in particular. She also questioned the fairness of offering funds to only one dance group. She,: recommended Council follow some. evenhanded approach and not penalize dance organizations that stayed within their budgets. Since Western Ballet Theatre needed a cash flow solution, she suggested a loan. She urged -that Council do what it could to help solve the rental problems of the other dance companies. 61-280 4/10/89 Louise Bagley, 2295 Emerson Street, spoke against the emergency outlay of funds for the Western Ballet Theatre. She felt the City should offer a loan to the Theatre. She also questioned whether the loan would be repaid, since the problem was not a recent one. Lorna Afflect, 3830 May Court, was a dance representative on the Standing Committee, and on the subcommittee on dance. She thanked Council for considering the subject and asked that more time be spent on the proposal. Council Member Cobb said Western Ballet had received an eviction notice from the PAUSD, and any delay could place them in jeopardy of going out of business. Mrs. Afflect did not want to see that happen Council Member Cobb asked if Mrs. .Afflect felt the dance community in Palo Alto would survive if Western Ballet did not. Mrs. Afflect said yes historically. The Western Ballet Theatre might be without a home for a period of time, but they might be able to survive. Anna Jaklitsch, 1850 Hamilton Avenue. was a volunteer and parent of a 9 -year -old dancer in the Western Ballet Company, She thanked the Council for its interest and support of dance. She was willing to do whatever was necessary to keep the doors of the Ballet Theatre Company open. She urged the Council to consider the broader issue of space for artistic groups in the community. She understood one purpose of the utility tax was to support the arts. MOTION* Mayor Klein moved, seconded by Cobb, that if Western Ballet can raise $25,000 by June 30, the City and the PAUSD would match that by the PAUSD forgiving $12,500 of the rent which is presently owed by Western Ballet to the PAUSD and the City would contribute ballet space for the months following June 30. A further condition would be that between April 10, 1989 and June 30, 1989, the finances of the Western Ballet Company would be overseen by the City and the first priority of funds would be for payment of ongoing rent to the PAUSD. The PAUSD would also allow Western Ballet to stay at its present site while the fund-raising campaign was underway, but Western Ballet would agree that in the event it did not reach its $25,000 fund-raising goal by June 30, it would immediately vacate the premises. Mayor Klein did not believe any governmental organization achieved *fairness* by spreading money among various organizations. He believed the financial problem of the Western Ballet Theatre was an emergency situation and not a precedent. A similar situation had occurred when the Ice Skating Rink required bail -out moneys. 61-281 4/10/89 1 If a short-term commitment could save a useful members of the community, it should be done. While he recognized it might not seem totallj fair, he did not believe Council was favoring one organization over another but rather trying to keep them all alive. Council Member Cobb believed there was value in keeping Western Ballet alive until the negotiations were completed with the PAUSD. He envisioned the day when the utility tax would be used for what originally intended; e.g., to provide a location for art groups. He was concerned about equity. The difference with the ice skating issue was that there was no competing organizations. L'Ecole de Dense and Western Ballet were in direct competition as was Zohar. He wanted to delay action for two weeks and charge the arts community with returning with a solution that made sense and provided equity on the ballet arts community. Council Member Woolley felt the Council would be supporting the dance community via the back door approach. Normally, when any organization was supported, there was a deliberate, studied, decision -making process. Council first needed to decide to support dance generally, and secondarily to discuss in what way it would do so. She did not feel a bail -out or a loan was appropriate at the present time. Palo Alto was an expensive rent district, so possibly a solution would be not to locate in Palo Alto, which did not preclude the community from benefiting from the school even though it was outside the City limits. If the financial problems had existed for a long time, she would be wary of a loan which could likely turn into a gift. She was concerned with the portion of the motion which made the City staff oversee the Western Ballet Theatre's finances. The Finance Department staff workload was heavy, and she did not want to see its staff overseeing an organization outside of the City government. Council Member Sutorius concurred with Council Member Woolley. He referred to the Winter Club situation, and said a skilled private eetre ;reneur did an excellent job running the business. He wanted to retire, and the community interest groups wanted to see the Winter: Club continue, so ultimately a nonprofit organization was formed, with some support on a matching basis. There seemed to be a belief that the use of public funds might be applied to private enterprises, and some endeavors of the dance field were private enterprises. He was concerned if Council had encouraged a belief that it was prepared to enter into the support of private enter- prises. Clearly, the Council, preceding Councils, and the community supported the arts. When an appropriate manner in which to sustain or grow the level of support could be found, the Council responded. He did not want to plant the idea that pending negotiations with the PAUSD would result in an immediately available facility to answer everyone's needs. He opposed the motion. 61-282 4/10/89 Council Member Levy theaked Mayor Klein for bringing the issue before the Council. He had asked staff for a list of performing and visual arts associations in Palo Alto, and was astonished to receive a list of over 51 organizations. If the proposal before the Council passed, the community would view it as a precedent. He believed all of the arts organizations were entitled to clear standards from the City Council to be applied fairly and uniformly; therefore, he could not support the motion. However, the Council needed to ensure the standards were clearly laid out in the lease agreement w3.' n the PAUSD so that the leasable space would be awarded to the community in a fair and equitable manner. Council Member Fletcher asked how the loan would be made to the Western Ballet Theatre. Mr. Zaner reminded the Council of its existing loan policy which was adopted several years ago. The loan policy provided that in special cases, on a finding by the City Council of sufficient community benefit, a loan could be made at no interest. The policy also contained a provision to waive security or collateral if necessary, and since there was probably no security to be offered by the Western Ballet Theatre, there were probably two ways for the City to protect itself: 1) set up a loan repayment schedule that required the Western Ballet Theatre to make periodic payments; and 2) request Western Ballet Theatre to provide a business plan showing how it intended to operate its business for the next year, setting forth not only a repayment schedule, but the balance of its financial transactions. SUBSTITUTE KOTIO : Council Member Fletcher moved that staff 1) arrange for the City's contribution of $12,500 to be in the form of a loan; 2) a loan repayment schedule be established; 3) that a business plan be provided to the staff; and 4) the loan be in the form of a signed contract. SUBSTITUTE MOTION DIED FOR LACK OP k SECOND Vice Mayor Bechtel was sy*pathetic to Mayor Klein's proposal. She believed tae equity issue was a valid one. Alison Lee spoke about the Theatre Works having done very well. The Theatre Works was organized and had not tried to do everything at once. MOTION TO TI = Vice Mayor Bechtel moved, seconded by Cobb, to continue the item and request the Standing Committee for the Arts to return to the City Council within 30 days with a process for how all of the dance groups in the community might be equitably helped. 61-283 4/10/89 Council Member Renzel believed it was reasonable to continue the item to work on some kind of equitable process to support the dance. She pointed out Western Ballet Theatre's rent was $4,400 per month, which meant the $25,000 would cover about six months of rent. Since the proposal required the Western Ballet Theatre to raise its matching funds by June 30, before the City's or PAUSD's contribution kicked in, it seemed that by the time they raised the money, they would not need it. There was also no indication that the PAUSD would forgive the rent as a part of the agreement. If the PAUSD's commitment was,tied to the Utility User's Tax, the City was not following any kind of equitable process in allocating the proceeds that the PAUSD was providing the City as a quid pro quo for the utility tax. She did not understand how the PAUSD's contribution tied in unless it bought into the proposal. She preferred an equitable process. Council Member Patitucci queried the normal City processes for funding the arts, and asked where it was in that process to date. Mr. Zaner said the funding was part of the normal Finance and Public Works (F&PW) Committee budget hearings process. The budget hearings would occur frox May to June at which time all requests from the organizations were reviewed. Council.. Member Cobb said as Chair of the F&PW Committee, it was one thing to look at the fiscal implications of some additional support for the arts, but there were some policy questions which needed to be addressed in terms of whether the arts, particularly the dance community, deserved some form of additional City support or subsidy. He believed the Policy and Procedures (P&P) Committee needed to review the matter to provide some guidance to those who made the fiscal allocations. Be supported the notion to continue. Council Member Patitucci opposed the moti'n because postponing a decision on whether the City would spend money on the item sent the wrong signal. He did not believe the Council was prepared to spend $12,500 or to go through the hassle of lending the money to one single organization. All arts organizations needed to be dealt with as a group. Council Ker r Levy agreed. He preferred to determine how the City would lease the space it received as part of the City/School lease agreement to the various arts groups. NOTION To commit t1IL*D 4-5, Bechtel, Cobb, Fletcher, Klein voting "aye." MAIM MOIAi DITSD*AWM 61-284 4/10/89 NOTION TO REF=Rz Council Member Patitucci moved to refer the request for support by the Western Ballet Theatre to the staff and the Finance and Public Works Committee to be considered in the normal course of the budget process. MOTION TO REFER FAILED FOR LACE of A SECOND LOTION TO REFER: Council Member Levy coved, seconded by Woolley, to refer the question of support for the arts to the Policy and Procedures Committee to be considered after agreement was reached with the PAUSD for lease of school properties. Council Member Renzel said a well thought out policy for the allocation of space already existed. She would not support the referral. Mr. Zaner said it was a very long process to determine the usage of a site. Council should not assume making the referral would be the end of the matter. Council Member Cobb believed the referral shout, be more specific to dance. Council, Member Sutorius pointed out contracts were in force and would continue to be honored if the City took over as Lesser of a school facility. Council could make no commitments. SECOND DITEDRAW MOTION TO INFER DIED FOR LACE OF A SECOND MOTION TO REFER: Mayor Klein moved, seconded by Cobb, to refer the question of support for dance groups to the P&P Committee. Council Member Levy could not support the referral because dance was one of many kinds of arts on which Council should focus. The City was not asked for support by the dance groups, but rather support was requested by one organization with financial diffi- culty. Council Member Renzel said as Chairperson of the P&P Committee, she was concerned about what the Committee needed to do. If Council wanted to foes on financial support, then the issue should be referred to the F&PW Committee. If Council wanted to focus on the space issue, there was a procedure in place. Council needed to be more specific than referring support for the dance if the - P&P Committee was to come up with some sort of useful recommendation. Vice Mayor Bechtel oppose the notion. It was better for the Standing Committee on the Arts to consider the issue. 61-285 4/10/89 1 NOTION ?AILED 2-7, Klein, Cobb "aye." No Action Taken NOTION: Council Member Pat{tucci moved, seconded by Fletcher, to adjourn the meeting. NOTION PASSED 9-0. ADJOURNMENT: Adjourned at 12:35 p.m. ATTE APPROVED: Cit Clerk NOTE: Sense minutes (synopsis) are prepared in accordance with Palo Alto Municipal Code Section 2.04.200(b). The City Council meeting tapes are retained in the City Clerk's Office for two years from the date of the meeting, and the Finance and Public Works Committee and Policy and Procedures Committee meeting tapes are retained for six months. Members of the public may listen to the tapes during regular office hours. 61-286 4/10/89