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HomeMy WebLinkAbout1989-11-27 City Council Summary MinutesS CITY COUNCIL MINUTES PALOALTOCITYCOUNCILMEETINGSARE BROADCAST LIVE VIA KZSU- FREQUENCY 90.1 ON FM DIAL Regular Meeting November 27, 1989 ITEM PAGE Special Orders of the Day 62-347 1. Presentation by East Palo Alto City Manager 62-347 Stanley Hall re Regional Patrol Task Force 62-347 Consent Calendar 62-348 2. Amendment No. 2 to Agreement C-4769 with 62-348 Cyprus Miami Mining Corporation re Removal and Recycling of Incinerator Ash Ordinance Amending the Budget for Fiscal Year 62-348 1989-90 to Fund Ash Removal at the Palo Alto Landfill Oral Communications 3. Contract with Stone and Youngberg for Financial 62-348 Advisory Services for Storm Drainage Enterprise Fund 4. Contract with Norman Roberts & Associates, Inc. 62-348 for Executive Search Services 5. Resolution Authorizing Execution of Supplement 62-348 No. 2 to the Northern California Power Agency Joint Powers Agreement Adding Truckee Donner Public Utilities District as a Member 11. Coapostable Debris Program Update PALO aro CITY COUNCIL. NEETIN$ *Ri AL83 COMMIT ON OOVERANENY CHANNEL 55 62-348 62-345 11/27/89 PAGE 7. PUBLIC HEARING: Storm Drainage Fund 62-349 8. F&PW Committee Recommendation Regarding the 62-353 Concept of the Two Year -Budget Process and the Implementation Timetable, and Directing Staff to Provide a Tentative Five -Year Work Plan of the In -Depth Analyses 9. F&PW Committee Recommendation Regarding the Closing of the 1988-89 Budget 10. Ordinance Regarding Contracts and Purchasing Procedures - (Property Control) 12. Resolution Relating to the University Avenue Off -Street Parking Assessment District 1989 Refunding and laprovement Bonds (Lot J Refund- ing and 250 University Avenue Acquisition) 12A (Old Item 6) City of Palo Alto Water Utility Plan Adjournment at 9:50 p.m. 62-355 62-357 62-359 62-360 62-362 62-346 11/20/89 1 Regular Meeting November 27, 1989 The City Council of the City of Palo Alto met on this date in the Council Chambers at 7:44 p.m. PRESENT: Bechtel, Cobb, Klein, Patitucci (arrived at 7:45 p.m.) , Renzel (arriv ld at 9:16 p.m.) , Sutorius, Woolley ABSENT: Fletcher, Levy SPECIAL ORDERS OF Tu D*Y 1. Presentation by East Palo Alto City Manager Stanley Hall re Regional Patrol Task Force (MPG) East Palo Alto City Manager Stanley Hall and East Palo Alto Police r'hiet Dan Nelson made a presentation on the success of the Regional Patrol Task Force and presented a Resolution of Appreciation to the City of Palo Alto City Manager Bill Zaner. Council Member S�atorius expressed his appreciation of the close association with both the City Manager and the Police Chief of East Palo Alto and looked forward to a continuation of the relationship. gEhk_gptiNUNI CATIONS Ben Bailey, 305 Cotton, Menlo Park, spoke regarding concern about the Police Department's citizen complaint summaries. Edmund Power, 2254 Dartmouth, spoke regarding Liz Kniss' comments on the Palo Alto Weekly editorial of November 14, 1989 and criticized Fa AJ.to Wei 'Rs position of not printing his comments. Joe Simitian, 532 Rhodes Drive, thanked the Palo Alto City Council for its forethought and participation in development of the Lease Agreement with the Palo Alto Unified School District. MIMUTE6 OF 0CTODEi 16, 1989 MOTION: Council Member Woolley moved, seconded by Klein, approval of the Minutes of October 16, 1989, as submitted. NOTION PA,SSAD 6-0, Fletcher, Levy, Renzel absent. 62-347 11/27/89 CONSENT CALENDAR (MOTION: Council Member Cobb moved, seconded by Su Arius, to approve Consent Calendar Items 2 - 5. Vice Mayor Bechtel removed Item 6 on behalf of Council Member Renzel. 2. Amendment No. 2 to Agreement C-4769 with Cyprus Miami Mining Corporation re Removal and Recycling of Incinerator Ash (1072-01) (CMR:557:9) ORDINANCE 3916 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1989-90 TO PROVIDE AN ADDITIONAL APPROPRIATION FOR ASh REMOVAL AT THE PALO ALTO LANDFILL" 3. Contract with Stone and Youngberg for Financial Advisory Services for Storm Drainage Enterprise Fund (1073) (CMR:548:9) 4. Contract with Norman Roberts 6 Associates, Inc. for Executive Search Services (502) (CMR:559:9) 5. RESOLUTION 6838 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORI Z ING EXECUTION OF SUPPLEMENT NO. 2 TO TE'E NORTHERN CALIFORNIA POWER AGENCY JOINT POWERS AGREEMENT ADDING TRUCKEE DONNER PUBLIC UTILITIES DISTRICT AS A MEMBER" (1101) ( R:556:9) MOTION PASOND 6-0, Fletcher, Levy, Renzel absent. IGENDA C13ANG S, _l ?DITIONS . AND QEL TI9NS City Manager William Zaner announced that Item 6 would become Item 12A. NOTION: Council Member Woolley moved, seconded by Cobb, to bring forward Item 11 for purposes. of a continuance. NOTION PABBED 6-0, Fletcher, Levy, Renzel absent. 11. Compostable Debris Program Update (1074) (CMR:554:9) LION TO c0 TINONs Council Member Woolley moved, seconded by Cobb, to continue the Compostab1e Debris Program. Update to the December 4, 1989, City Council meeting. Council Member Woolley said the War on Waste (WOW) Committee needed time to review the staff report, meet and discuss the compost item, end .compose a letter to the City Council concerning degradable plastic nags. She recommended Council receives input from the Committee . before taking action on the item. 62-348 11/27/89 i NOTION PASSIM 6-0, Fletcher, Levy, Renzel absent. PUBLIC HEARINGS 7. PUBLIC HEARING: Storm Drainage Fund (1073) (CMR:553:9) Mayor Klein declared the Public Hearing open. George Prime, 3557 Bryant Street, checked the drainage facilities in the area and found them adequate before buying the home 35 years ago. The flood of 1955 was created by an overflow from the San Francisquito and Matadero Creeks. Some facilities had been improved since that time, but flooding could still occur during a heavy downpour. Staff was right in recommending a 10 -year flood criteria for the proposed storm drainage facilities. He checked with the U.S. Geological Survey, did a reconnaissance check in the field, and found the drainage facilities downtown to be inadequate. He recommended zones of benefit, setting up the main storm trunks first, then the laterals. He supported the Storm Drainage Fund, but believed an additional $20 to $30 a month was too ?such for a family to pay for the improvement. A Storm Drainage Assessment District should be set up to pay for main stoma trunks or facili- ties. He requested Council delay action until February or March of 1990, so the public could be adequately informed. Bob Moss, 4010 Orme, had concerns regarding the methods used to propose the Storm Drainage Fund. Council was amending the budget to receive $650,000, but expenditures were not discussed in the staff report. The report discussed repairs at Cubberley as a reason for not using the Utility Users Tax instead of a special assessment. Council had already spent almost that amount of money for consultants. He believed if the residents were to be assessed, they needed to know what they were getting. He was concerned about the cost of utilities. The average rental in the Stanford Research Park was higher than the County average, but the low utility costs brought the actual cost of occupancy down; however, if user taxes continued to be added, companies would go elsewhere and the City would lose out in sales tax moneys. He believed Council should look carefully at expenditures, how people were taxed, and how to maintain fiscal responsibility. Mayor Klein declared the Public Hearing closed. NOTION: Council Member Sutorius moved, seconded by Cobb, to approve the staff recommendation as follows with an amendment to the Utility Rule and Regulation No. 25 under Definition A, Number 2, "Equivalent Residential Unit (ERU)" to revise the last sentence to read "No 4201/41Wed pareet shall have an ERU less than 1.0" rather. then "No single family residential property...": 62-349 11/27/89 ,116 1. Adopt the Resolution establishing regulations and rates for the Storm and Surface Water Management Enterprise and Utility. 2. Adopt the Budget Amendment Ordinance to receive revenue in the amount of $650,000 for the Storm Water and Surface Water Management Enterprise and Utility for the remainder of FY 1989-90. SOLUTION 68)9 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO ESTABLISHING RATES AND REGULATIONS FOR THE STORM AND SURFACE WATER MANAGEMENT SYSTEM ENTERPRISE AND UTILITY" ORDINANCE 39,x,_7 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1989-90 TO PROVIDE FOR THE STORM AND SURFACE WATER MANAGEMENT ENTERPRISE AND UTILITY" Council Member Patitucci asked whether there would be various assessments throughout the City dependent upon benefit, and the City's exposure if people who bought into a subdivision were assured the storm drainage was adequate, but then were taxed. He was concerned about the equity involved in balancing the costs. Senior Assistant City Attorney Tony Bennetti said Council made the determination that benefits were of a general nature and not benefiting a particular property. The primary budget function for the first few years of the project would be to operate and maintain the existing system, and to complete the general improvements necessary to make the entire system operate more effectively. Later, zones of benefit, special assessments, or other methods of spreading the fee could be created if there were particular improvements needed for particular properties. The initial major plan was for general improvements to benefit the entire system. Council Member Patitucci said Council approved Item 3 on the Consent Calendar which was for a contract with Stone and Youngberg for Financial Advisory Services to provide consultant services to initiate a bond issue. In the past, if a consultant was approved to study an item, Council usually went ahead with it, so he believed soae type cf bond i.se .3 would be conducted. He queried if 60 percent of the revenues was not needed for ongoing main- tenance but . for capital, which would be used to pay off the $14 million in bonds for the first phase of the improvements. Assistant Director of Pub' is Works George Bagdon said of the $1.56 million received froa annu.11 revenue, approximately $540,000 would go towards capital improvements; the remainder would go towards operations. 62-350 11/27/89 a Council Member Patitucci clarified that approximately 40 percent of the total costs would be for capital improvements or servicing a bond. He queried what would happen in the future and were the higher ranges of monthly costs going to be assessed. At the level of charges, Council had taken reasonable and responsible action, but if rates went to $10 or $15 per month, per household, then the question of who was benefitting the most from the service should be raised and changes made. Council Member Cobb was concerned about overloading utility costs and the ability to keep the City an attractive place for business to locate. In a recent staff study of utility costs in neighboring cities, the City of Palo Alto was substantially below what other cities costs in the delivery of utilities. The $3.25 fee was reasonable and would not overload the cost of utilities in Palo Alto. Eight years ago, a 21 percent rate of return came from the Electric Utility Fund into the General Fund. In the interest of being responsible, Council cut the rate to less than half that amount. Vice Mayor Bechtel concurred with comments made by other Council Members and believed the storm drain system item had been deferred too long, and the system benefited all citizens at the level currently being assessed. Streets and intersections were flooded in many parts of Palo Alto, there were costly long-term and frequent road repairs. She commended staff for the work on the project. Council Member Woolley queried what the fee would be for a large business in the Stanford Industrial Park. Mr. Bagdon said the fee would be between $3 to $4 thousand per month for a large business such as Hewlett Packard or Syntex. The average for small businesses would be $25 to $50 per month. Council Member Woolsey queried how that compared with a company's total utility bill. Mr. Bagdon said the utilities were significant for companies, but he did not have the exact figures. Council Member Woolley was concerned about the burden bus inesses . the large placed upon Mr. Bagdon said the story drainage portion of the total utility bill for a company would be small compared to other utilities 62-351 11/27/89 Council Member Woolley clarified the fee would be small compared to the total utility bill, a situation similar to the residential fee. Council Member Sutorius said reference was made to the cap feature on large users such as Hewlett Packard during the utility users tax discussions. He appreciated the cautions expressed by members of the public and the Palo Alto Weekly. He disagreed with the Weekly's judgments on the Storm Drain Fund, but believed the paper served as a thoughtful, investigative watchdog on the City. He was proud of past Council decisions relating to the health, viability, and responsiveness of Palo Alto and believed the decision to set up a storm drainage utility would be just as important. Electric energy was purchased on an hourly basis with any sending party in the Northwest. Council raised the authority of the City Manager to recognize routine, spot market purchases in the gas utility to lower gas costs and achieve significant savings in acquisitions of gas supplies. He believed Council was making the right move for the long term. Mayor Klein agreed with the comments of his colleagues; the motion to establish the storm drainage fund was the right decision. He believed money spent on infrastructure was the right way to go. The Council had done a lot towards improving and building upon the City's essential infrastructure during the past ten years. Other cities had expressed the concern of under funding of infrastruc- tures. America was failing to keep roads in good condition or sewer systems and water quality control plants operating properly. The City of Palo Alto was a leader in improving and maintaining its infrastructures, but was in the minority. He had originally believed the Utility User Tax should be used to fund the storm drain utility. The commitment to the public was to spend $1 million per year on streets and sidewalks. Since the money was not spent on schools, the amount was increased to $2 million for a two year period which was now coming to an end, the next fiscal year amount would be back down to $1 millioli; that was not a reduction, it was a return to the original appropriation. Surplus money would eventually be available in the Utility User Tax Fund. By 1997- 98, the fund would have a $6 million surplus which might be increased to $8 million. Most of the surplus would come toward the end of the period and would only take into consideration minimum repairs for the Cubberley site; money spent at Cubberley should not consume the surplus from the fund. Other costs, particularly in the environmental area, would need funding. The surplus would have a number of demands placed upon it that would rule out using the fund to meet costs of the surface water storm drain system. After studying the Utility User Tax Fund, he concluded it would not be wise to use the fund to support the storm drain system; the Storm Drainage Fund was a better alternative. The store' drain system was needed and he supported the motion 62-352 11/27/89 because the money spent for the service would properly benefit the community. NOTION ACED 6-0, Fletcher, Levy, Renzel absent. REPORTS OF COMMITTEES COMMIS$IQNS 8. Finance and Public Works Committee Recommendation Regarding the Concept of the Two Year --Budget Process and the Implementa- tion Timetable, and Directing Staff to Provide a Tentative Five -Year Work Plan of the In -Depth Analyses (280-06) (CMR:492:9) MOTION: Council Member Cobb for Finance and Public Works Commit- tee, to approve the concept of the two year -budget process and the timetable to implement the two-year budget as outlined in staff report cMR:492:9, and direct staff to provide a tentative five- year work plan of the in-depth analyses. Counc{.1 Member Woolley supported the concept of a two-year budget, but questioned the scheduling of in-depth department reviews. She preferred that tha F&PW Committee review half of the departments one year and half the other year. She did not support the idea of an on -year and an off-year cycle as recommended in the staff report. The F&PW Committee would only be able to study one department in depth every other year, and with eight major departments, the coverage would not be sufficient. She would like Council to give direction to staff to study more than one large department a year. At the end of the F&PW hearing, the Committee added an amendment asking staff to return to Council with a five- year work plan. She believed all departments should be reviewed within an eight year period. SLEET: Council Member Woolley moved, seconded by Klein, to amend the motion to add to the two-year budget process, the goal that all of the departments have an in-depth review and evaluation at least once during an eight -year cycle. Council Member Patitucci supported the amendment, but believed Council might decide to review one or two departments in-depth, and it might take more than one year to achieve the type of goals and efficiencies for the highlighted department. Council Member Cobb queried the implications interns of staff time required to conduct an in-depth review of a couple of departments a year. He anticipated the Utilities Department would present a sore difficult challenge than some of the other departments. City Manager William Zaner clarified the ter a of the amendment would be that every department would be reviewed in depth within 62-353 11/27/89 the eight -year period, and did not believe it would be a problem. There would be four opportunities within the eight -year period to review the departments. Council Member Cobb said that if scheduling the reviews within the suggested timeframe of the amendment caused no problems for staff, he supported the amendment. He believed moving through the staff reviews more quickly was a good idea and that as the two-year budget cycle progressed, the in-depth reviews would become easier to conduct. Council Member Sutorius believed the amendment was supportable and looked at the motion as one from which Council would gain benefit. He believed the six -months of staff time available for analyses functions and the byproducts of operational reviews would allow Council to conduct significant departmental reviews and provide more supportive work in respect to departmental operations. He supported the amendment and anticipated the goal would be ac- complished if all major functions, such as co -lateral inter- departmental operations, be examined at least once every eight years. AMEMDMISMT PASSIM 6-0, Fletcher, Levy, Renzel absent. Council Member Patitucci was concerned about the budget advance reserve process; some flexibility was needed in moving from a one- year accounting to a two-year accounting. He queried why the process was structured in that manner. Director of Finance Emily Harrison said the movement of moneys would be to take advantage of cost savings. The second year appropriation would be decreased by any amount moved forward, so no overall spending increases would occur. Council Member Patitucci was concerned that money pulled forward during the seventh or eighth month of the first year, would be spent by the lath month, and then more money would be needed. The process seemed to create an opportunity for staff to return to Council often during the lasts six months of the second year for budget amendments. He proposed Council establish guidelines for using the process at the time of budget approval rather than having an open-ended policy. Some items might require more flexibility, but many items should be fixed at the time of adoption. Mr. Saner said the constraints or checks Council had was the budget amendment process. Budgets were living documents and had to be justified when brought to Council. Departments would be required to be prudent in managing budgets and would be required to justify any additional requests during the second year. The proposed procest gave the City Manager the authority to make a two-year 62-354 11/27/89 1 budget, allowed departments sufficient time to make the transition, and kept the appropriation responsibility with the Council through .:the budget amendment process. AMINDMIVTs Council Member Patitucci moved, that at the time the two-year budget is adopted, guidelines also be adopted for the City Manager's decision -making authority regarding the budget reserve policy during the second year. MOTION FAILED POR LACK of A SECOND AMENDMENT: Council Member Woolley coved, seconded try Sutorius, to amend the motion to add at the time the two-year budget is adopted, the City Council consider the City Manager's discretionary authority as outlined in the process. Council Member Sutorius supported the amendment because it would provide ample opportunities in the in -year and off-year cycle to keep staff, Council and the community apprised of the review authorities and options. Mayor Klein opposed the amendment. The guidelines for the use of the City Manager's discretion were well laid out and Council would not know how applicable they were until the budget was adopted and the City Manager exercised his discretion. Revisiting the guidelines was unnecessary because any budget policies could be reconsidered. ANENDMENL PASSED 4-2, Bechtel, Klein "no," Fletcher, Levy, Renzel absent. MOTION AS ABED PASSED 6-0, Fletcher, Levy, Renzel absent. 9. Finance and Public Works Committee Recommendation Regarding the Closing of the 1988-89 Budget (280-04) (CMR:515:9 ) MOTION: Council Member Cobb for Finance and Public Works Committee, to adopt the ordinance author i z ing: 1) closing of the 1988-89 Budget; 2) establishing reserves; 3) reappropriating $1,212,520 into the 1989-90 Budget; 4) increasing enterprise capital projects by funds to the enterprise capital funds; 5) transferring $182,000 from the Electric Fund's system improvement reserve for the Electric Maybell Project; 6) transferring $271,431 from the Refuse Fund system improvement reserve to provide sufficient funding to cover the increased purchases; and 7) increasing various enterprise capital projects (Exhibit D) by a net of $846,378 to include sufficient salaries and benefits as budgeted in the Acquisition and Construction program. 62-355 11/27/89 ORDINANg$ 3918 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING CLOSING OF THE BUDGET FOR FISCAL YEAR 1988-89" Mayor Klein was concerned -about reserves/transfer as indicated (CMR:515:9) with $3.041 million for Capital Improvement Project reserves of $2.746 minion. He went. the $6.378 million available for on Page 6 of the staff report being transferred to the reserve (CIP) Fund, and an increase to could not locate where the money Mr. Zaner said on Page 9, the chart marked Reserves showed where the $2.746 million was spent. Mayor Klein clarified the bulk of the amount went to the Self Insurance Fund, but he thought the amount was taken from the CIP account as of July 1, 1988. Ms. Harrison said staff anticipaeed the need to draw down from the CIP reserves to fund the Self Insurance Fund needs, but because of the over -budgeting for personnel payroll costs, the money in the CIP reserve could be replaced. Mayor Klein queried if the amount was being taken from two places because at the bottom of Page 9, the Preliminary Balance of the CIP Fund was shown as $1.899 million, which showed a subtraction of $2.5 million for the Self Insurance Reserve. Ms. Harrison said that was correct. The $3.04 million was replaced into the CIP Reserve as part of the savings from excess revenues over expenditures. The $2.5 million was drawn down for Self Insurance costs. Mayor Klein said on Page 6, $2.7 million out of 1988-89 money went to Other Reserves. It appeared part of the money was going into the Self Insurance Fund, but on Page 9, the $2.5 million was taken out of the fixed balance sheet CIP Fund as it existed on July 1, 1988, whereas the $2.76 on Page 6, was an income item. Ms. Harrison believed part of the confusion was because there was no separate accounting for claims paid out from the Self Insurance Fund; there was no separate fund statement for the Fund. The 1987-88 Actual showed the Self Insurance Reserves at $2.76 million, but the 1988-89 Actual showed $5.19 million; the difference was the increase or decrease in reserves from claims paid for Self Insurance in addition to funds transferred from the CIP Reserve. The ending balance of the Self Insurance Fund was $5.19 million. Mayor Klein believed the report should have shown the amount of claims paid out of the fund during the year to clarify the 62-356 11/27/89 questions regarding the account. He queried if approximately $2.5 million was paid in claims during 1988-89 and if it included the Cable TV settlement and if the payment was spread over two years. Me. Harrison said the second payment was made early in the fiscal year 1989-90, and for accounting reasons was accrued back into the prior fiscal year. The entire amount showed in the 1988-89 expenditure, although it was paid in cash in the next fiscal year; it was accrued back under generally accepted accounting principles. Mayor Klein desired a report -card type statement and requested staff to help determine the grade. He compared the amount Available for Reserves Transfer $6.2 million in FY 1989-90 to $2.3 million in FY 1988-89. It appeared that FY 1988-89 was a far better year and deserved a better grade. He queried if staff would agree. Mr. Zaner said FY 1988-89 was better because of staff reductions and staff was more careful not to overexpend. He could not remember a year the City had not overexpended and savings had not been realized, due in large part because salaries were fully budgeted but not all vacancies were filled. He believed staff did a better job of calculating needs than before, and hoped staff would continue to do as well. MOTION PASSED 6-0-1, Renzel "not participating," Fletcher, Levy absent. OPDIIJAMZS 10. Ordinance Regarding Contracts and Purchasing Procedures - (Property Control) (601-02) (CMR:475:9) City Manager William Zaner said the staff report (CMR:475:9) included an analysis and summary of the manner in which purchases were made. For the past 20 years, Council had authorized the City Manager to approve items costing under $10,000. The purchasing power had eroded through the years and needed to be increased. The State Legislature had raised the limit to $50,000; neighboring cities hadincreased the limit from a $25,000 to $30,000 range; and he was recommending a change from a $10,000 limit to a $35,000 limit. Council Member Sutorius queried if what was being proposed included equipment, or was there any distinction between supplies and equipment. Senior Assistant City, Attorney Tony Bennetti said under the current code there was no distinction between supplies and equipment. The City Manager's discretion to purchase supplies remained unlimited 62-357 11/27/89 as to the dollar amount, unless combined with services. In that event, the purchase would be subjected to the $35,000 limit. Council Member Sutorius asked Mr. Zaner to indicate why the reporting of real estate transactions should change from quarterly to annually. Mr. Zaner said the volume of transactions were relatively small, so reports were being generated for information that was not changed; eliminating the extra reports would reduce costs. Council Member Sutorius solicited Mr. Zaner's response to the process followed by the City of Menlo Park as referenced on Page 5 of the City Manager's Survey of Surrounding Cities, including charter cities. Menlo Park required Council approval for all traffic related items, or for lease/purchase situations. Mr. Zaner did not know what led to Menlo Park's decision. He assumed it had some experience where the City Council needed to exercise closer control over the funds. Most of Palo Alto's lease/purchases were of significant size; over the $10,000 limit, so they had required Council approval. Any equipment purchases over $35,000 would be brought to Council for approval. Council Member Sutorius queried if the lease/purchase amounted to $34,000 per year, would the item come to Council. Mr. Sennetti said lease/purchases that were a true lease, if under $35,000 per year, would not come to Council unless the term was over three years. If a lease/purchase was used as a financing vehicle, it would come to Council by the specific terms of the ordinance. The City Manager did not have the authority to enter the City into debt. Council Member Sutorius queried if the equipment ended up being the property of the City through a lease/purchase, would it come to Council, regardless of the cost. Director of Public Works David Adams said it would come to Council. NOTION: Council Member Cobb moved, seconded by Klein, to approve the staff recommendation to adopt the Ordinance. r 1nance 1st Read„in entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 2.08.180, REPEALING CHAPTER 2.30 (CONTRACTS AND PURCHASING PROCEDURE -PROPERTY CONTROL) AND ENACTING A NEW CHAPTER 2.30 (CONTRACTS AND PURCHASING ING PROCEDURES) AND ADDiNG CHAPTER 2.31 (PROPERTY CONTROL)" 62-358 11/27/89 1 AMEMDNINts Mayor Klein moved, seconded by Bechtel, to cnange the increased authority of the City Manager from $35,000 to $25,000. AXEMDNIMMT PABBED 7-0, Fletcher, Levy absent. AMINDMINT: Council Member Patitucci moved, seconded by Council Member Renzel, that the $10,000 limit for the Purchasing Manager authority be reduced to $5,000. Council Member Sutorius said the Purchasing Manager had superiors who had to answer to Council, so he did not believe the amount was so significant. He requested information from staff regarding the procedure for appropriate controls. Ms. Harrison said an internal review took place regarding all transactions, but it was not a problem if Council wanted to reduce the authority to $5,000. MONDKENT FAILED 3-4, Patitucci, Renzel, Woolley "aye." MOTION AB AMENDED PARSED 7-0, Fletcher, Levy absent. tEPO►RTS OF.. OFFICIALS 12, Resolution Relating to the University Avenue Off -Street Parking Assessment District 1989 Refunding and Improvement Bonds (Lot J Refunding and 250 University Avenue Acquisition) (410-03) (CMR:560:9) Council Member Sutorius queried if the parking assessment bonds for 250 University Avenue project were handled separately, would the authority be to go ahead at a rate not to exceed 9 percent. With California Municipals going at 6.9 percent to 7.3 percent he queried if 9 percent was high for the current and the foreseeable future. Treasury Manager Gordon Ford said he did not anticipate selling the bonds at 9 percent. In today's market, they would sell substan- tially below that. Staff wanted to give a high enough authority to allow the Finarre Director to sell the bonds at a reasonable rate during the pror.: 3d timmefraaae. He believed it was necessary to include a reasonable cap in the documents for Council's protection. Council Member Sutorius queried what Mr. Ford's feeling would be if the cap were 8.5 or 8.0 percent. Mr. Ford did not believe lowering the cap to 8.5 or 8.0 percent would sake much difference at this point in time. 62-359 11/27/89 MOTION: Council Member Sutorius moved, seconded by Cobb, to approve the staff recommendation to adopt the resolution providing for the issuance of City of Palo Alto University Avenue Area Off - Street Parking Assessment District 1989 Refunding and Improvement Bonds, and albs; the Mayor and staff to sign all documents required to complete the financing, with'. the exception that the cap on the new bonds be reduced from 9 percent to 8 percent for 250 University Avenue. RL ION 6Qj entitled "A RESOLUTION PROVIDING FOR THE ISSUANCE OF CITY OF PALO ALTO UNIVERSITY AVENUE AREA OFF- STREET PARKING ASSESSMENT DISTRICT 1989 REFUNDING AND IMPROVEMENT BONDS (LOT J REFUNDING AND 250 UNIVERSITY AVENUE ACQUISITION)" Form of Bond - CITY OF PALO ALTO UNIVERSITY AVENUE AREA OFF- STREET PARKING ASSESSMENT DISTRICT 1989 REFUNDING AND IMPROVEMENT BONDS (LOT J REFUNDING AND 250 UNIVERSITY AVENUE ACQUISITION) MOTION PASSED 7-0, Fletcher, Levy absent. 12A. (Old Item 6) City of Palo Alto Water Utility Plan (10111-02) (CMR:555:9) MOTION: Council Member Renzel moved, seconded by Bechtel, to adopt the City of Palo Alto Utility Plan. Council Member Renzel said the staff report indicated all comments had been incorporated; however, she was concerned whether comments from the study session were taken into account. On Page 3, under Recommendations, she was concerned about Number 6, "Monitor and participate in the Bay -Delta hearing process." She believed Palo Alto was in a difficult position because it discharged into the Bay and City regulations affecting its discharge related to how much water flowed through the Bay from the Delta; at the same time, the City was taking water from Hetch-Hetcny which normally would flow through the Delta. Her concern was that staff would have the authority to participate in the Bay -Delta process, and to lobby for maintenance and expansion of the City's diversions from the Delta, while the Water Sewage Plant was gearing up to deal with pollution problems which were the direct result of lack of flushing -flows. She recommended that staff authority wth respect to the Bay -Delta recommendation be confined to maintenance of assisting allocations from Hetch-Hatchy, and that any other authority come from Council. The issue was serious; the citizens of Palo Alto were concerned about flushing -flows in the Bay, and the Council in the past had opposed items such as the Peripheral Canal. Unfortunately, many water users associations lumped together for diversions and the City . * effort for Retch-Hetchy could be lumped in with the other 62-360 11/27/89 water districts trying to obtain water flows from the Delta. She was uneasy about having a policy document approved without discussion and limits on staff participation in the Bay -Delta hearing without returning to Council for guidance with respect to flow issues. ANINDK Ts Council Member Renzel moved, seconded by Bechtel, to amend the Water Utility Plan to direct that staff participation in the Bay Delta Hearing Process be limited to the maintenance of the existing \Hetch Hetchy supply rather than augmenting the water supply through some other means. Council Member Patitucci queried what the amendment would mean to the document as a total plan. City Manager William Zaner said the Recommendations on Page 3 were not meant to be directions to the staff to take positions without Council authority. He could not remember when staff testified in a Public Heai ing on behalf of the City and comm.tted the City to a policy or action without Council clearance. He did not see any problem in the amendment because it stated what was a long- standing policy in which staff recognized Council as the policy - making body, reported back with recommendations regarding policies, and represented Council's position when appearing before other policy -making bodies as clearly as possible. Council Member Patitucci opposed the amendment because it was not warranted. He believed the amendment was a redundancy and did not want to set a precedent for going over every policy document to find such areas of conflict which might need clarification. Council Member Sutorius opposed the amendment because the wording might lead to misunderstandings. Many important goals were interrelated; maintaining a leadership role in the Bay Area Water Users Association was important and had proved beneficial in actions over the past several years and led to a strengthened relationshipas a user of Hetch-Hetchy, and it would be inconsis- tent to exercise the leadership role and live within the amendment. Recommendation Number 9 was to continue working with the Santa Clara Valley Water District (SCVWD) staff and examine the feasibil- ity of intereoi sting with the SCVWD for future treated water deliveries, so the sources of supply to SCVWD and the impact to the Delta needed to be identified. The amendment was too limiting and at odds with the City's leadership role. Council Member Renzel was concerned that future staff might not view an item as controversial because the policy was approved by Council. Policy direction needed to be given before staff could appear before other decision -making bodies regarding water allocations and present the City's stand. The issue should come 62-361 11/27/89 before Council if it went beyond maintenance of existing Hetch- Hetchy supply. The SCVWD did take water from the Delta and had lobbied hard for the Peripheral Canal which the present Council opposed. She did not want the City lumped -in with districts who lobbied for major diversion projects which could harm the Bay without Council being able to step in and take direct action. She did not want staff to negotiate agreements with SCVWD without coming to Council for approval because of environmental concerns within the City. Vice Mayor Bechtel supported the amendment. Staff had indicated it would not be a problem, and had been coming to the Council for guidance on such issues as a matter of courtesy. In view of the Council's long-standing policy opposing the Peripheral Canal, and SCVWD's support, she believed the amendment would help clarify the issue. 1'NDMEMT PARSED 4-3, Klein, Patitucci, Sutorius "no," Fletcher, Levy absent MOTION AS AMENDED PASSED 7-0, Fletcher, Levy absent, ADJOURNMENT: The meeting adjourned at 9:i0 p.m. ATTEST: APPROVED: Mayor • 1/14A - 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 year; 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. 62-362 11/27/89