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HomeMy WebLinkAbout1988-03-28 City Council Summary MinutesCITY COUNCIL MINUTES -------PALOAL.TOCITY COUNCILMEETINGSARE BROADCASTLWE VIA KM-FREOUENCY9O.1 ON FM DIAL Regular Meeting March 28, 1988 ITEM PAGE Oral Communications 59-325 Approval of Minutes of February 16, February 59-325 22, and March 6, 1988 1. Appointments of Three Human Relations Com- mission Memberss to Fill Three -Year Terms Ending March `31, 1991 2. Appointments of Two Human Relations Com- mission Members to Fill Unexpired Terms Ending March 31, 1990 59-325 59-327 Consent Calendar 59-327 3. Easement Agreement with Southern Pacific Transportation Company for Alma/Churchill Intersection improvements 4. Resolution 6678 Ordering the Summary Vaca- tion of an Alley Easement Adjacent to 490 California Avenue 5. _ Resolution 6679 Authorizing the Metropoli- tan Transportation Commission to Function as the Regional Service Authority for Freeway Emergencies (SAFE) 6. Ordinance 3798 Amending Title 18 (Zoning) by Adding. Conditional Uses to the Public Facilities (PF) Zone 7. Report from Council Legislative Committee: 1) Wildlife, Coastal', and Park Land Con- servation Bond Act,. (Prop. 70); 2) ACA 32; 3) Amendments to Cable Act of 1984; 4) AB 2802 59-327 59-327 59-328 59-328 59-328 59-323 3/28/88 ITEM P A G E 8. Ordinance 3799 Amending the Budget for the 59-328 Fiscal Year 1987-88 to Provide an Addi- tional Appropriation for the Gamble Prop- erty Capital Improvement Project 9. PUBLIC HEARING: Planning Commission Unani- 59.332 mous Recommendation in the Appeal by Lidia Reguerin from the Decision of the Zoning Administrator, that Council Not Revoke the Use Permit for a Day Care Center for Prop- erty Located at 450 W. Charleston Road 10. PUBLIC HEARING: Appeal of Robert Moss and 59-336 John Joynt, Representing the Barron Park Association; Marilyn Mayo, Representing the Palo Alto Civic League; and Julia Mayberry, of the Decision of the Architectural Review Board and the Director of Planning and Com- munity Environment to Approve the Design of a Seventeen -Unit Condominium Project at 2705 Ash Street known as Mayfield II Recess Council Member Levy re Bring Forward Item 12 12. Discussion of Cable Television Underground- i ne Pr_ o jram 13. Parking Citation Collection Services 59-343 59.344 59-344 59-364 14. Resolution 6681 Authorizing the .. Mayor to 59-365 Execute the Golden Triangle Task Force Implementation Agreement. and Supplement Thereto. 15. Lease and Amendment to Lease - Palo Alto Unified School District 16. 1987-88 Requirements for Jordan and Cubberley Schools 11. Report from Council Legislative Committee: I) Belch Hetchy Water Supply System; 2) Toll Bridge Revenue Adjournment at 1:05 a.m. 59-366 59-368 59-369 59-3.69 Regular Meeting Monday, March 28, 1988 The City. Council of the City of Palo Alto met on this date in the Council Chambers, 250 Hamilton Avenue, at 7:30 p.m. PRESENT: Bechtel (arrived at 7:32 p.m.), Cobb, Fletcher, Klein, Levy, Patitucci, Sutorius, Woolley ASSENT: Renzel Mayor Sutorius announced that a Closed Session re Litigation pursuant to Government Code Section 54956.9(a) to discuss 1) Reimer v. City of Palo Alto; and 2) Century �edera1 v._ City of of Palo Alto was held in the Council Conference Room prior to the meeting. ORAL COMMUNICATIONS 1. Ben Bailey, 171 Everett, spoke regarding complaints against the Police Department, open government, and the "Star Chamber." 2. Edmund Power, 2254 Dartmouth Street, spoke to the meaning of "greater public access" to the Palo Alto Yacht Harbor. 3. James Johnson, 1006 Ramona, shoved pictures of El Palo Alto's ,daughter tree in Mitchell Park, planted in 1968. El Palo Alto was showing signs of growth. ;He was concerned about the tree's leaning but believed something would be done to guy the tree back and to improve El Palo Alto Park. APPROVAL OF MINUTES MOTION: Council Member Bechtel moved, seconded by Levy, approval of t s Minutes of: rebruery 16 and 22, and March 6, 1988, as subbittsdm MOTION PASSED unanimously, Cobb "abstaining* from the Minutes of rebruary 16, 1988, Rama! absent. 1. APPOINTMENTS OF THREE . HUMAN RELATIONS COMMISION. EMBERS TO FILL THREE-YEAR TERMS ENDING MARCH 31, 9 0 Mayor Sutorius intended to vote for Robert Woods on the first ballot. His qualifications both at the federal and 59-325 3/28/88 local levels in the housing arena were eminently important and valuable. If Mr. Woods was elected, he intended to support Nancy Shipley and Roslyn Gray for three-year terms. Ms. Shipley had remarkable child-care . background, and had provided services in areas of mental health. Ma. Gray's background was pyschiatric nursing, and her service as a consultant to the Disability Task Force was valuable. Vice Mayor Klein agreed with the first two positions taken by Mayor Sutorius. For the third position he intended to vote for Trina Lovercheck. She was President of the Parent/Teachers' Association (PTA) Council and a devoted follower of the negotiations between the City and the Palo Alto Unified School District (PAUSD). She was previously a teacher in the Ravenswood School District and brought a different focus to the Human Relations Commission (HRC) . He believed Ms. Lovercheck had experience in community youth matters to share with the HRC and Youth Advisory Committee. Council Member Cobb concurred with Vice Mayor Klein's choices. In the past few months, he had been the represen- tative to the HRC and saw Mr. Woods in action. He would support Mr. Woods on the first ballot; Ms. Shipley on the second ballot; and Ms. Lovercheck on the third ballast. RESULTS OF THE FIRST ROUND OF VOTING: Deputy City Clerk Corene Avlakeotes announced the results of the first round of voting: VOTING FOR WOODS: Bechtel, Cobb, Fletcher, Klein, Levy, Patitucci, Sutorius, Woolley Ms. Avlakeotes announced that Robert Woods received eight votes and was appointed. RES+` VTa OF THE SECOND ROUND OF VOTING: ....qY=--•air - VOTING FOR SHIPLEY: Bechtel, Cobb, Fletcher, Klein, Levy, Patitucci, Sutorius, Woolley Ms. Avlakeotes announced that Nancy Shipley received eight votes and was appointed. RESULTS OF THE THIRD ROUND OF VOTING VOTING FOR LOVERCHECK: Bechtel, Cobb, Fletcher, Klein, Levy, Patitucci, Woolley VOTING FOR GRAY: Sutorius 59.326 3/28/88 Ms. Avlakeotes announced that Trine _ Lovercheck received seven votes and was appointed. 2. APPOINTMENTS OF TPJO HUMAN RELATIONS COMMISSION MEMBERS TO FILL UNEXPIRED TERMS ENDING MARCH 31, 1990 (702-04) Council Member Cobb said given the changes in the :�R`:, he believed it was appropriate to reappoint Commissioner Roe to provide continuity. His experience would also help the new members contribute more quickly and •positively. He would support Commissioner Roe on the first ballot, and would support. Teresa Roche on the second ballot.. RESULTS OF THE FIRST ROUND OF VOTING: VOTING FOR ROE: Bechtel, Cobb, Fletcher, Klein, Patitucci, Woolley VOTING FOR GRAY: Sutorius Ms. Avlakeotes announced that Richard Roe received seven votes and was appointed RESULTS OF THE SECOND ROUND OF VOTING: Mayor Sutorius said he wc'uid support Teresa Roche, VOTING FOR ROCHE: Bechtel,, Cobb, Fletcher, Klein, Patitucci, Sutorius, Woolley VOTING FOR GRAY: Levy Ms. Avlakeotes announced that Teresa Roche received seven votes and was appointed. CONSENT CALENDAR MOTION: Council Member Fletcher moved, seconded by Sutorius, approval of the Consent Calendar. 3. EASEMENT AGREEMENT WITH SOUTHERN PACIFIC TRANSPORTATION COMP: NY FOR ALMA CHURCHILL INTERS CTION .IMPROVEMENTS 0 / ' CMR: 6: 4. RESOLUTION 6678 entitled "owcnr r1TTO' OF THE COUNCIL OF THE CITY OF PALO ALTO ORDERING THE SUMMARY VACATION OF AN ALLEY EASEMENT ADJACENT TO 490 CALIFORNIA AVENUE" (701--04/720-03/3`00). (CMR:193:8) 59-327 3/28/88 5. RESOLUTION 6679 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING THE METROPOLITAN TRANSPORTATION COMMISSION TO FUNCTION AS THE REGIONAL SERVICE AUTHORITY FOR FREEWAY EMERGENCIES (SAFE)" .,(701-04/1163-02) (CMR:210:8) 6. ORDINANCE 3798 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING TITLE 18 (ZONING) BY ADDING CONDITIONAL USES TO THE PUBLIC FACILITIES (P F) ZONE" (1st Reading 3/7/88, PASSED 8-0, Woolley "not participating") (731-03) 7. REPORT FROM COUNCIL LEGISLATIVE COMMITTEE: 1) WILDLIFE COASTAL, AND PARK LAND CONSERVATION BOND ACT PROP. 0 ; ACA 32; 3 AMENDMENTS TO CABLE ACT OF 19841-71-0 2802) (702-06) (CMR:202:8) MOTION PASSED unanimously, Woolley "not participating" on Item 6, Renzel absent. 8. ORDINANCE AMENDING BUDGET RE GAMBLE PROPERTY CAPITAL IMPROVEMENT PROJECT (701-03/300) (CM 8:194:8) Council Member Woolley understood the criteria for evaluating the various items requested by the Gamble Garden Center was whether they protected the structural integrity of the buildings. She asked staff to expand upon their thinking that Items 4 and 5 in the letter from the Gamble Garden Center, of March 21, 1988 (on file in the City Clerk's office), did not protect the structural integrity. Real Property Manager William Fellman said Item 4 was for the gutter for the Carriage House. Staff bid out the roof project, and at the time the gutters were not on the Carriage House but stockpiled nearby. He believed the gutters were not needed to protect the structure of the house. Item 5 was the parking lot structure, which was going to be part of the lawn bowl area. He did not believe the parking lot protected the structure nor was it necessary because ;the Lawn Bowl Association currently parked on the street. The City had received no complaints from neighbors and had no intention of building a parking lot there.` The parking lot was strictly to serve the use of the Gamble property as a garden center. Karen Olson, 566 Washington, appreciated the staff support. A11 the terms of the 2.0 -year lease, with the City were met, and the Gamble Garden Center had controlled the property for about eight months. It raised $525,000 for the capital expenses of restoring the buildings and the gardens. Over 59-328 3/28/88 1`000 people contributed money for the project, and many others volunteered as gardeners, office workers, and class teachers or to help with fund raising. The Gamble Garden Center was excited about the enthusiasm of the community for the project. Jane Ulrich, 2160 Bryant Street, was excited about the Gamble Garden Center's upcoming public opening. Its third annual Spring Garden Tour was scheduled for May 6 and 7, with lunch being served at the gardens. Last October, the Garden Center hired a horticulturist -who, with other garden enthusiasts, prepared the property for the installation of the irrigation system and parking lot. One concern was the possible water shortage and the impact of water rationing. During the lease/ option period, the Garden Center ran two pilot programs. The Elder Walk Program brought house -bound seniors for a tour of the gardens, a short talk, and refreshments. The Intergenerational Roots and. Shoots Program wasin its third year, and it paired third grade students with senior citizens to learn about gardening. The program won awards two years in a row from the National Gardening Association, and an article about it would appear in the April issue of National Garden Magazine. The program was chosen from over 700 applicants rased on its outstanding leadership, programming, and high level of community sup- port. The project was judged to exemplify what youth gardening was about. .The operating budget of the Gamble Gardens Center was $81,000. It expected to raise funds through memberships, contributions, grants, rental fees, and special events. Jack Rominger, 10S7 Guinda, referred to the Gamble Garden Center's accomplishments, i.e., a new storage building, and new restroom facility with five fixtures for men, women, and handicapped. The Carriage House was renovated and would be used for meetings. The Tea lHouse and main house were also renovated. A handicapped lift was added and a toilet facility within the house was modified for the handicapped. A new parking area was being installed for joint use with the Lawn Bowling Green. The Gamble Center needed to install a heavier pavement section than - was originally planned pri- marily because the soil was not of sufficient quality. Decomposed granite was suggested for the Gamble Garden Center because of the environment. The Architectural Review Board (ARS) supported the use of the decomposed granite and would not back off if the Garden Center decided it might be too such money. He urged Council support for additional funds to help offset the Garden Center's additional costs for the particular area. It would cost about $247,000 for a full irrigation system and for fully landscaped gardens. 59-329 3/28/88 Since the lower floor of the main house would be used as a public space, a sprinkler system was required. While the gutters for the Carriage House were not needed, the siding would deteriorate much faster without them. It was decided that gutters were a necessity and the Garden Center requested assistance. Mayor Sutorius clarified that the gutters were not actually on the Carriage House prior to the reroofing but just laid aside somewhere. Mr. Rominger said there were no gutters on the Carriage House when t:he Garden Center took it over, and he was not aware there were gutters in the area. Fred Eyerly, 101 Alma Street, #1107, a member of the Gamble Garden Canter Board, ` passed around pictures showing the con- dition of the roof. He extended appreciation to staff for their help over the past three and one-half years and thanked the Council for the lease -option on the property. He referenced the Center's letters of September 4, 1987, and March 21, 1988, and said the staff report (CMR:194:8) recom- mended $53,000 -worth of work, fundable from the moneys collected from the Gamble property itself. Mr. Feliman's philosophy was similar to that of private real estate sales in which the roof, foundation, termite work, and dry rot were all items that generally had to be taken care of by the seller. He hoped the City Council would feel that way about their property and supportthe staff's recommendation. The Board requested Council fund the gutters. There would be charges for use of some facilities, but basically the prop- erty was open every day for the public to enter; therefore, it seemed logical that the City's General Fund could support some expense, such as the lawn bowling share of the parking lots of $17,500, the fees paid of $3,000, and the telephone pole removal from one of the parking lots for .$2,000. Council might also consider funding the development of irrigation wells of $15,000. There were many nonprofit organizations within the City that received funding from the City in various degrees on utilities. The Council else might support use of the City's compost for the gardens, and permanent dumping privileges. NOTION: Council Bomber Woolley moved. secohded by Bechtel, to adopt staff recommendation as follows: 1. Adopt Budget Amendment Ordinance making funds available for maintenance of the Gamble Property and . for the acquisition and development of senior housing. 59-330. 3/28/88 MOTION CONTINUZD 2. Authorize the expenditure of no more than $53,000 for Items 7 and 8 as outlined in the September_. 8 letter fros the Elizabeth F. Gamble Garden Center, and Items 1, 2, and 3 for the fence repair, reroofing, and asbestos removal as outlined in the March 22, 1988 letter fros the Elizabeth F. Gamble Center. Any remaining funds after the completion of the work as outlined will be transferred to the Housing In -Lieu Fund for use in the acquisition and/or development of senior housing, and the Gamble Garden CIP will be closed. 3. Authorize the .mediate transfer of $10,037 to the Housing In -Lieu Fund for use in the m cquisition and/or development of senior housing. ORDINANCE . 3799 entitled. "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1987-88 TO PROVIDE AN ADDITIONAL APPROPRIATION FOR THE GAMBLE PROPERTY CAPITAL IMPROVEMENT PROJECT" Co=uncil Member Woolley supported the staff recommendation. The project was supposed to be self-sufficient and not have ongoing support from the City's General Fund, and Council should hold to that precedent. The decision was made not to use a portion of the property for senior housing, and the .motion to put the ,remaining funds towards senior housing was probably a token, but she would still, like to see._ the Council put some of that funding towards senio.Y housing. AMENDMENT: Mayor Sutorius moved, seconded by Cobb, to increase the funding in the amount of $1,000 for the reinstallation of the gutters. Mayor Sutorius believed the protection that would .be provided by the gutters was important and a logical City expenditure. AMENDMENT PASSED by a vote of 7-1, Levy voting "no," Menzel l bsen t . Council Member Fletcher asked if staff would have any problems with use of the City's compost facility by the Gamble Garden Center. Assistant City Manager June Fleming said so far the Gamble Garden Center's use of the compost area had not posed a problem. However, it was mad a clear the use would end when the project was finished. 59-331 3/28/88 AMENDMENT: Council Member Fletcher moved, seconded by Cobb, for the City to authorize the Gamble Gardien__Conter to make use of the City's compost center. Council Member Levy preferred the item be agendized at a separate time. He was not familiar with the compost program and was not prepared to vote about it that evening. AMENDMENT WITHDRAWN BY MAKER AND SECOND MOTION AS AMENDED PASSED unanimously, Menzel absent. Mayor Sutorius added his appreciation and commendation to the Gamble Garden Center for the work underway and looked forward to its early completion. 9 k.. PUBLIC HEARING: PLANNING COMMISSION• UNANIMOUS RECOM- MENDATION RE APPEAL BY LIDIA REGUERIN FROM THE DECISION OF THE ZONING ADMINISTRATOR THAT COUNCIL NOT REVOKE THE USE PERMIT FOR A DAY CARE CENTER FOR PROPERTY LOCATED AT CHARLESTON ROAD WITH THE CONDITION THAT THE 450 W. PERMIT COME BACK TO IN Six MONTHS ( Continued from 12/21/87) _ (CMR:208:8) (300 ) THE PLANNING COMMISSION FOR REVIEW Planner Joanne Auerbach said the applicant's letter of March 21, 1988, requested that she be able to continue operating the day care center with 12 children until some of the occupancy change issues had been resolved, and then potentially go up to 16 children. Council Member Woolley referred to the conditions for 12 children or less and assumed the City did not know whether the applicant would be residing at the home. She asked which obligations for 12 children or less the applicant had fulfilled Ms. Auerbach said for 12 children or less with the director residing off -site, th3 best information she had available was that the applicant had not received a final State license, the parking was not in, the variance had expired, the fence permit had not been applied for nor issued, there had not been an Architectural Review Board (ARB) review of fence permit and landscaping, the conditional use permit was before the Council that evening, and the use and occupancy permit• had been applied forbut the deficiences noted had not been corrected. If the applicant resided on -site, the obligation* went into a totally different category and many of staff's abilities to regulate were preempted by State law. , If the operation was modified t.o a . family day- care 59-332 3/28/88 home with the director residing on site, the only thing the operator would have to do was get a license from the county and file for a fence permit. Other than that, the operation was treated the same as a single --family dwelling. The applicant did not have a license from the county at present. Council Member Levy asked if the applicant could continue to function if the Council revoked the use permit or whether the use stopped immediately. City Attorney Diane Northway replied the applicant would have to reside on the premises in order for the operation to be a family day-care home. If Council revoked the use permit that evening, the only uses allowed were the permitted uses: family day-care home; operator resides on the premises. Council Member Levy asked if the Council had the option of revoking the use permit in 30 days to give the applicant time to reside on the premises if she wished. Ms. Northway said yes, the Council could make its action effective in 30 days. Mayor Sutorius declared the Public Hearing open. William Spangler, 471 Carolina Lane, referenced his letter (on file in the City Clerk's office) to the Council prior to the December 21, 1987, meeting suggesting that if the use permit was upheld; it be conditioned on the installation of the normally -required semi -circular driveway and reduction to the one kitchen allowed in R-1. Since the business was for sale, imposition of ordinary day-care requirements should not increase the cost of day care. The minutes of the December 21, 1987, meeting reflected the applicant stated the property was no longer for sale. The semi- circular driveway was defeated, perhas in response to that.: statement. He was surprised to see the "For Sale" sign go up, and to see the operation advertised for sale as a licensed day-care center. in the January.. 13, 1988, Palo Alto Weekly. A real estate flier he received that day listed it as a pending sale. He was not sure the applicant was com- pletely frank in making statements to the Council. He sug- gested the City deny the use permit for ' any number of children. He realized the Council could not prevent use as a licensed day-care home for up to 12 childen, but he requested Council enforce the R-1 limit of one kitchen to avoid it becoming or remaining an honorary duple► in the R-1 district. 59-333 3/28/88 Lidia Reguerin, 575 Arastradero, referred to the licensing report that stated in the last paragraph, "If Ma. Ritzheimer's qualifications i:annot be verified by 1-29-88, evaluator to recommend license for capacity of 12, ages month -- 30 months." That showed she was recommended to get a license for 12 childrer, On the other items, she worked at the center from 8:00-a.m. to 6:30 p.m., and did not understand the procedure. She applied for a use permit but did not take into consideration the request that she needed a use and occupancy permit. She hired architect Bob Jenks, who was in charge of complying and telling her what she had to do. She did not plan to live on the premises, and the property was for sale. The person buying the property was also going to operate a child-care center with 12 children. Mayor Sutorius said Council had no indication of anything transpiring at the property for over a month nor any appli- cation to take care of the physical work previously identi- fied. He asked if anything was going on. Ms. Reguerin said she wanted to make the changes but only if she was going to stay there. Council Member Cobb said the Council saw evidence that the property was up for sale as a "licensed day-care center," which was in conflict with his understanding that Ms. Reguerin wanted to operate a day-care centers He asked for clarification. Pis. Reguerin clarified the property was not for sale as a day-care center, but one of the items on the real estate contract was that the use permit was pending. Mayor Sutorius declared the Public Hearing closed. Council Member Woolley believed staff had bent over backwards to explain the process and to help the applicant take the steps necessary in order to get the permit. In December, Ms. Reguerin was given extra time and some of the conditions were still not fulfilled. The hardest to under- stand was the fence permit, which was not difficult to accomplish. MOTION: Council Member Woolley moved, seconded by Cobb, to adopt staff reco zuation that the City Cecil_ revoke Use Permit 86 -UP -7 for the day care center at 450 Neat Charleston, based on the following findings' 1. The `operator has failed to comply with conditions imposed by Use Permit 86 -UP -7, in that the day care 59-334 3/28/8,8 MOTION CONTINUED center has been in operation. for over one year without implementation of the parking plan proposed by the applicant and approved by the Zoning Administrator for this site. In addition, a landscape plan ,to screen the proposed parking area which was required by Variance 86-V-15 has not been submitted or implemented. A fence permit application has not been submitted. The deficiencies noted in the Use and Occupancy Permit inspection of January 8, 1988, have not been corrected, and therefore._a Use and Occupancy Permit, required as a condition of the Use Permit 86 -UP -7, cannot be issued. 2. The day care use is being conducted in a manner detri- mental to the public health; safety, and welfare, in that the day care peration has been conducted for over one year without issuance of a State day care license. While an application for a license has been made, the State Community Care Licensing Division has not issued the permit after more than seven site inspections, due to violations of child supervision standards and lack of appropriate qualifications of the on -site manager. Vice Mayor Klein asked what the action meant, particularly with regard to people who might have childen at the day care center. Ms. Northway said the motion meant, for the operation to continue at all under the City's Zoning Ordinance, the applicant would have to reside on the premises so it would become a day care home, in which case the City would not have to issue a conditional use permit nor would the revocation affect the operation. Vice Mayor Klein recalled the applicant had said she would ►lot reside on the premises. Ms. Northway said then the applicant would be operating in violation of the Zoning Ordinances, because once the use permit was revoked, there was no authorization for a day-care center to be operated on the premises and the City would treat the matter as it did any other violation of the Palo Alto Municipal Code (PA?IC). Vice Mayor Klein asked if _ that. meant the City would shut down the child care center the next morning. 59-335 3/28/88 Ms. Northway said it would not be that immediate. Staff would have to confer with the enforcing department to deter- mine how to proceed. The City Attorney's office would prob- ably adhere to 60 days.... AMENDMENT: Vice Mayor Klein moved, seconded by Levy, that the revocation of the Use Pewit be effeetive 30 days from March 28, 1988. Vice Mayor Klein assumed, if .the amendment passed, that the staff wouldprepare appropriate notification to the parents involved. Ms. Northway did not believe staff had the names of all the parents, but to the extent they were known from the past meeting, staff would notify them. Council Member Fletcher believed even if an operator moved into the building and, operated the center, there was an illegal kitchen. Ms. Auerbach said, as far kitchen for the dwelling floor and additions made legal kitchen. One of completely removed. as staff could tell, the original unit was located on the second to the first floor constituted a the kitchens would have to be MAKER AND SECOND INCORPORATED THE AMENDMENT INTO THE MAIN MOTION MOTION PASSED unanimously, Renzel absent. Council Member Woolley asked if the Council needed to take action with regard to the illegal kitchen. Mr. Auerbach replied no Council action was necessary. 10. PUBLIC HEARING: APPEAL OF ROBERT MOSS AND JOHN JOYNT, REPRESENTING THE BARRON PARK ASSOCIATION; MARILYN MAYO& REPRESENTING THE PALO ALTO CIVIC LEAGUE; AND JULIA AYBERRY ( OF THE DECISION OF THE ARCHITECTURAL REVIEW BOARD AND THE DIRECTOR OF PLANNING AND COMMUNITY ENVIRONMENT TO APPROVE THE DESIGN OF A SEVENTEEN --UNIT CONDOMINIUM PROJECT AT 2i ASH STREET KNOWN •AS ;0319116-11-1751R: 903---1-6-1-600) ; Chairman of the Architectural Review Board (ARB) Aiflc Vieira-da-Rosa said the ARB supported the staff report (CMR:209:8) 59-336 3/28/88 Council Member Levy asked the City Attorney the significance of State Government Code 655095 in relation to the appeal. City Attorney Diane Northway clarifiedthe significance was that the ability of the Council to deny a project involving a housing developmentproject or to reduce the density was very limited. Council would have to make specific findings relating to health and safety concerns to justify any denial. In addition, if there was litigation challenging such a denial or reduction in density, the burden would be on the City to Austify those findings, which was not the usual situation. Usually, the City was presumed to have followed the law when it acted. and in the subject case it was not. Council Member Levy referenced the request for preferential treatment for the Below -Market -Rate (BMR) units to apply to the residents presently on site and asked how that would be applied. Ms. Northway said the request was to the Palo Alto Housing Corporation (PAHC). She did not see it as a problem, but if the City made it a requirement of the project, that would be something the PAHC, not the applicant, had control over. The PAHC was not before the Council for the particularly action. They had their own policies_ in terms of how their preferences worked. Council Member Levy asked if the City Attorey had any problem with Council's request of the PAHC. Ms. Northway said no. Council Member Fletcher was confused about 16 units versus 17 units. Planner James Gilliland said the question was whether the land was considered as one or two parcels. If it.. was one parcel, the particular project was only allowed 16 units. If, however, the parcel was merged with the original Phase I project, the calculations allowed a total of 83 units, which would be 17 ' for the site in question. Council . Meleber Fletcher asked whether the applicants would build 17 units and follow up on the merging if Council denied the appeal or if that was left up in the air. Mr. Gilliland said it was really either/or. Mayor Sutorius declared the Public Hearing open. 59-337 3/28/88 Bob Moss, 4010 Orrne, said the ARB did not unanimously approve the quality and adequacy of the Environmental Impact Report (EIR). There was no comment during the EIR process about the toxic pollutant plumes which existed in the area, and the staff report (CMR:209:8) continued to ignore that fact, .He referred to known toxic pollutant plumes, and said it was not necessary for the excavation to penetrate to the ground aquifer to stir up and spread pollutants. The Environmental Impact Assessment .(EIR) prepared by the Santa Clara Valley Water District for the Barron and Matadero Creek bypasses presupposed construction in the Watkins - Johnson parking lot. Stanford University sent a letter to the Water District saying even though the toxic spill was above the water table, it wanted to have monitoring wells drilled . and personnel on site during the excavation to ensure the toxic plumes were not excavated and the toxic was not scattered or liberated to the area. In the August, 1986, Consultants' Report from the Citywide Land Use and Traffic Study (on file in the City. Clerk's office) , in the intersections at Level F, El Camino Real and Page Mill Road were at 1.09. Traffic had not improved in the last two years, so any increase in traffic would exacerbate an already unacceptable situation. That intersection already had a three-hour congestion period in the afternoon, and the morning peak -hour congestion began at 7:45 a.m. a'nd extended to about 9:15 a.m. In regard to the loss of existing, affordable housing, for every Comprehensive Plan element that supported the project, he could find one or two that opposed it. Fans of Mayfield I would love Mayfield II, although it was not as big. At the time the project began, the applicant relied on existing zoning; but as soon as Mayfield I was approved, the Council wondered if it really wanted RM-5 density anywhere in the Palo Alto, and the consensus seemed to be that it was Inappropriate, If Mayfield I was overbearing and excessive, Mayfield II would be equally so. He asked how a project at that density and bulk could be a harmonious transition. Nearby and harmoni- ous projects which included the Court House and Birch Court were almost three blocks away. Most of the nearby apartment houses were either two or three stories. The developer had not been the most cooperative or responsive. He recalled the office building at Page Mill Road and Park Boulevard where the Council approveda slightly larger development than would normally have been allowed. One reason was because the developer promised to construct a good-looking building with a fountain in the lobby to hide the parking lot from people passing by on the street. There was, no fountain..: The March 3, 1988, ARB minutes reflected frustra- tion and irritation by the entire ARB with the history of Mayfield I, and the fact the applicant seemed not to have 59-338 3/28/88 good faith regarding the need for large tress to screen the massive project, and the changes made without ARB approval. ARB members were not satisfied with deciduous trees and could not support the phasing. The ARB again stressed the importance of the applicant checking with and working with staff before returning. Finally, he heard comments by Council Members when Mayfield I went through that it was done at the staff level and by the ARB. If the Council had been apprised of the scale and mass of the project, it would not have approved it. He appealed the project to give the Council an opportunity to review it and decide whether it found the density and bulk to be appropriate. He urged Council to uphold the appeal and deny the project.. Michael .Lyzwa, 193 Waverley Street, said the applicants first approached the ?IRB with the project in November, _1986, before there was discussion about the RM-5 zones and other high --density housing. The applicants carefully studied the project with the ARB and City staff, removed dormers, chim- neys, and a perimeter wall; added trellises, extensive landscaping, and a copper roof; and preserved all the trees. The issue between 16 and 17 units had already been explained, and the project before the Council was for 16 units. There was unanimous approval from the ARB with one abstaining vote. Harold Hohbach, 29 Lowery Drive, Athe :•ton, believed Mr. Moss had brought in issues That were not a part of the project, such as 200 Page Mill Road as a pollutant site. . The issue involved a filling station that was abandoned at least. ten years before he started the office building project. There was a fountain in the building. All the work was done within the existing zoning, and they did not expect to seek any variances now. The only difficulty Mr. Moss mentioned was the effect of the large trees which were supposed to have been planted for Mayfield I. With the setbacks required by the Citye there was room to plant big trees without actually enveloping the balconies for the buildings. Applicants were proposing to the ARB to plant the Ponderosa Pear, which was a City tree.. Sam Sparck, 565 Arestradero, believed the Council had sev- eral reasons for upholding the appeal to reject the project: thepresence of polluted aquifers, the question of traffic, and the appropriateness of the RM-5 zoning. In the 20 years he lived in Palo Alto, he had seen parking problems grow and traffic approach gridlock in most of the main- intersections, due largely tO City Council's decisions to grant variances, density bonuses, and reduce parking requirements, 59-339 3/28/88 John Mock, 736 Barron Avenue, was concerned that the report did not indicate Mr. Hohbach's affiliation. Council denied the proposal to close Ash Street and sent strong signals to the developer that such a large project was a bad idea. He referred to the adverse pressure on the surrounding rental properties from being overshadowed by the current project on Page Mill Road. Some small -to medium -size rental complexes were being bulldozed to be replaced by huge structures. Low- to moderate -income rental housing was being replaced with condominiums which most of the current occupants, and many Palo Al tans, could not afford. He supported the appeals of the Barron Park Association (BPA), and Civic League, and specifically the remarks in their letter of February 14, 1988. He challenged Finding 8 in the EIA on the grounds that the early City Planners never envisioned a full build -out of RM zoning in general, and specifically RM-5. He urged denial of design approval on the basis that the project was too large and imposing. If a project of that floor area ratio (FAR) was approved at the site, an open-air parking lot, and maybe the preservation of a few trees was feeble compensation for such an imposing structure. He urged the structure be a transition to less -imposing structures. More importantly, the design should not .put further pressure on those remaining small -to medium -size rental- properties to go to condominiums. He urged the Council to do all within•: its power to prevent the project.. Mr. Moss was also disturbed that the project replaced -rental housing. Rental housing stock in Palo Alto was not easy to come by, and there was a lot of negative comment throughout the years from the residents about the condominiums. People preferred rental housing be retained. He was also surprised that the subject property was owned by a woman in Los Altos and that official documents did not mention Harold Hohbach's name. With the lack of affordable rental housing, tonics and traffic problems in the area, Council would be justified in rejecting the project and asking it be scaled back to be more in keeping with the new proposed RM-40 zone. Approving the project would send the wrong message to developers and the public. Mr. Hohbach believed the project would reduce rather than increase traffic because people would be living where they were working. The project would be mapped as a condominium, but the Mayfield I project was cuing to be a rental project tor the foreseeable future. Mayor Sutorius declared the Public Hearing closed. 59.340 3/28/88. Council Member suggested the tenants of the BMR units in suggestion was Woolley said the Council recommend existing apartment the new project. feasible. staff report (CMR:209:8) the PAHC give displaced priority for renting the She asked whether the Chief Planning Official Carol Jansen said she was unable to get in touch with Silvia Seman, but the Director of Planning and Community Development believed the PAHC did have the flexibility and Council could make such a recommendation. Eight units were being eliminated by the proposed project but she was unable. to say how many of those tenants would qualify for BMR units. NOTION: Council Member Bechtel moved, seconded by Fletcher, to adopt the staff recommendation to uphold the decision of the Architectural Review Board and the Director of Planning and Communit Environment, and approve the Negative Declaration and the design of the 16- or 17 -unit addition to the previously approved 66 -unit condominium/apartment project including the following findings and conditions: 1. The project, as proposed, will not have a significant impact on the physical environment since the project has been designed to decrease the visual. impact, minimize energy consumption and reduce parking and ay.tomnbile impacts, as reflected in the attached negative declara- tions. 2. The design of the.project is consistent with the City's Comprehensive Plan objectives and compatible with the immediate environment, including approved improvements on the site, in that it promotes orderly and harmonious development of the . site in consideration of adjacent commercial uses and residential uses, and provides for the addition of multi -family residential units its conformance with the Comprehensive Plan. 3. The site design prdotes a harmonious transition in scale and character between the adjacent commercial properties, the nearby office uses and the residential uses in that the underground garage, tae user areas of the complex, and too - landscaping .plane • including plant material and preservation of *slating troths. ere designed to minimize _visual and parking impacts on = the adjacent land uses, 4. The building designand amount of open space is appro- priate for the function of the building and site in that the project design provides .for immediate identification 59-341 3/28/88 MOTION CONTINUED of the building function and orientation as to access` and egress for pedestrian and vehicular traffic. 5. The planning and location of the various functions on the site create an internal sense of order and provide a desirable environment for occupants, visitors and the general community in that landscaping, vehicular parking, bicycle parking, and user amenities have been designed to create a safe and convenient environment f A pedestrians, cyclists and vehicles. Staff recommends the following condition as required by the Architectural Review Board (ARB) a 1. Final landscape and irrigation plans that address the following staff concerns shall be.. submitted . for ARB., review and approval prior to issuance of a building permit: a. The design and landscaping adjacent to the pad mount transformer. b,. The design and external appearance of the garage exhaust. c. Details of the design of the elevated planting boxes at the bass of the building. Materials and color samples for the building and paving neteria1s. Substitution of street trees as required by the City star bor i s t . i. Detail design of the three proposed painted steel tube arches in the surface parking lot. 2. Details of the exteriorlighting, including fixtures, sixes and locations shall be s aitted for APB .approval prior to issuance of a building permit. 3. Replacement of all sidewalks and construction of a handicap ramp at the corner of. Ash and. Sheridan. 4. Prior to issuance of the building permit either: ;i) a parking end access agreement a s /or easement (i f 16 units) shell be prepared and submitted to the City Attorney for review and recordation: or, 2) the parcels Abel l be merged (if 17 units) . 59-342 3/28/88 Council Member Fletcher believed the Mayfield I and II proj- ects were too dense and out of place, but since the proposed projects were within the permitted zoning Council did not have the authority to deny the project. She agreed that the addition of eight or nine residential units would not make a signi firanf difference inthe traffic. Council Member Cobb had a problem with the bulk, size, and mass of the project. He did not support Mayfield I and he would vote to uphold the appeal because he could not find that the project did not have a significant adverse , environ- mental impact. Council Member Levy said the basis of the appeal .was that the project was too dense. RM-5 was an inappropriate zone in Palo Alto and the bulk allowed thereby was in the process of being eliminated. Since RM-5 existed, he did not find a basis for rejecting the project. The project did away with affordable housing. Any new project was likely to be more expensive housing, but he did not believe on that basis Council could say it would not allow any new housing. Regarding the increase in traffic, he agreed with Council Member Fletcher. Council needed to move ahead as quickly as possible to reduce the larger zones, but the process in effect said the applicant began and moved forward under the existing zoning. MOTION PASSED by a vote of ?;-1, Cobb voting 'no,' Renzel absent. MOTION: Council Member Bechtel moved, seconded by Fletcher, that the Palo Alto Housing Corporation give preferential treatment for the BMR units in the new project to those parsons displaced by removal of the apartment buildings. Council. Member Fletcher wanted the BMR units located in Mayfield I also available to the displaced tenants. Council Member Levy did not believe the tenants displaced by the proposed project should be treated any differently than other displaced tenants. Council should review with the PAHC its general policies and make suggestions if neces- sary. MOTION PASSED by a vote of 5-2, Klein, Levy voting 'ono,' Renzel absent. COUNCIL RECESSED FROM 9:45 p.m. TO 10:00 p.m.. 59-343 3/28/88 COUNCIL MEMBER LEVY RE BRING FORWARD ITEM 12 MOTIO1s Council Member Levy moved, seconded by Cobb, to bring forward item 12 and place Item 13 at end. of _ agenda. MOTION PASSED unanimously, Bechtel, Patitucci, Renzel absent. ITEM 12, CABLE TELEVISION UNDERGROUNDING PROGRAM (CMR:213 :8 ) (i1 1) Council Member Cobb asked if there was any reason why indi- vidual neighborhoods could not be given the option of having the system aboveground or underground. City Manager Bill Zaner said there was no problem except for the time involved. He was advised that PacBell could accom- modate a neighborhood -by -neighborhood change. Council Member Cobb asked to what extent the particular problems of a particular home could be addressed in terms of where boxes were placed. Mr. Zaner said there was some flexibility in moving the ped- estals along the line but it was relatively limited. The design of the system was such that the pedestals could not be moved a great deal. Council Member Cobb asked about the costs of,obtaioing ease- ments in areas where boxes were to be aboveground and the resident opted to have them in the sideyard since there was. no appropriate place, in the front yard, Mr. Zaner said easements were obtained in the normal course of City operations, especially in the Utilities Department. An average cost of an easement was around $250 to $300 just for processing. He assumed the easement referred to by Council Member Cobb would not he in favor of the City and PacBell would need the easement. He was concerned about the City's costs being assigned to Pac!e11. City Attorney Diane Northway said in addition to the proces- sing costs was the actual survey forthe property descrip- tion. Council Member Cobb asked about .the feasibility of putting underground boxes in the sidewalk. Mr. Zaner said in some cases a.cable television box might be placed in the sidewalk. It would depend upon what else was in the sidewalk.. If utilities were already there, it would 59-344 3/28/88 be difficult to place the cable television box there. It would have to be on a location -by -location basis. Ms. Northway deferred response as to the legal problems. Council Member Woolley was confused about the tuning issue in terms of individual neighborhoods deciding whether they wanted cable television boxes above- or below -ground. Mr. Zaner clarified that it was feasible to consider a neighborhood -by -neighborhood question of undergrounding. PacBell could deal with the issue on a neighborhood -by - neighborhood basis but not on a house -by- house by basis. One of the problems would be timing. He did not want Council to think staff could start that evening going neighborhood -by -neighborhood and PacBell would have no problems with timing. It would be a lengthy process --not impeseible--and it would cause delay: P cBel1 was prepared to move into the underground areas quickly and such a delay would cost money. Council Member Woolley understood undereroundina had tempo- rarily stopped and she queried what was done with PacBell's crews. Director of Information Resources Dianah Neff said the crews were working on completing the commercial and multiple dwelling areas. It was estimated that by April 6, 1988, all commercial areas other than downtown and all other non R-1 residential areas would be completed. Cot.,*cil Member Woolley clarified Council had until April 6 to decide what would be done in the next R-1 area. Ms. Neff said that was correct. Vice Mayor Klein was glad to hear Council had some flexi- bility but was upset to hear Council had the same flexibil- ity six or eight weeks ago. He queried the logistics of the neighborhood -by -neighborhood question. Mr. Zaner said it would be the best. for the City to put together a team to go out into the neighborhoods using PacBeli as the technical resource. A neighborhood wcuid probably be leafleted and a meeting would be called. The City and PacBell would explain what was being donee and the process would be repeated in each neighborhood. There were about eight or nine neighborhoods or about 1,500 residents involved. Some would say they did not hear about the meet- ings. The process would be imperfect and there was no guarantee of consensus. City staff would , be augmented by casuals and part time people. but it would not cost a great deal. He estimated it would take 60 days. 59-345 3/28/88 Vice Mayor Klein clarified it was a rolling process and staff only needed to complete the first neighborhood by April 6, 1988. Ms. Neff said while all neighborhoods were not cabled simul- taneously, it would not take 60 days to complete the remaining R-1 area. Vice Mayor Klein asked whether enough time existed. Mr. Zaner said it would he extremely difficult to complete unless the city was willir to pay delay costs. Vice Mayor Klein was somewhat bitter because if the poll Legan six weeks ago, it would have bean done. Council Member. Levy was also frustrated because everytime Council discussed the issue, the developer was ready to go next week. He asked what would happen if the City just said it wanted extra time. Ms. Northway believed there could be disagreements about rights and responsibilities and the usual outlet was in the court system. Cc'uncil Member Patitucci said one problem was Council did not get cooperation from the Cable Cooperative or PacBell in coming up with an alternative when there was time to deal with it. The first citizens in November or December wanted to know what it would cost to have their choices. If the City went with the special assessment approach, it could not just pay estimated annual costs. The costs needed to be actual, which set in motion a secondary cost of monitoring and determining the actual costs. The estimated costs, according to the present value of additional servicing and maintenance costs on an annualized basis, worked out to be between $30,000 and $40,000, which PacBell said it would take if the City settled on that number. The most reoent report (CMR:213:8) saiJ it would cost about $30,000 per year to Calculate the costs to determine if additional maintee nance and servicing costs were $30,000 per year. "If the City agreed to pay a stipulated amount, for the special assessment districts it would have to go through the addi- tional cost of obtaining actual costs. If the City just paid, it could agree on a 'dollar amount settlement annually and not incur the costs of measuring the costs.- The City could say it would pay $30,000 annually; it -wanted the system underground and that would be it., Mr. Zaner said that was corri.ct, and it was the staff recom- mendation if Council made the decision, to go underground. 59-346 3/28/88 Council Member Woolley asked . which residential areas had been undergrounded and which were remaining. Ms. Neff said to date, 195 vaults out of the estimated 600 vaults were placed in the residential areas. She believed vaults were placed in Crescent Park III, Grennacres which included the Donald, Wilmer, and Maybeli areas off of Arastradero; and in the Holly Oak and Cork Oak areas. Council Member Woolley was concerned about having accurate information because it would make a big difference if Cour,.il knew whether the neighbors in the areas not yet undergrounded wanted to have vaults or pedestals. Council Member Fletcher referred to the smaller tap pedes- tal, and said only the top 11 inches were aboveground, and there were several color options. She clarified Council was not referring to the 22 -inch high pedestals but rather the 11 inches. Paul Walker, 1423 Hamilton Avenue, complimented PacBel1 for the cable installation in the Edgewood area. He thanked the Council for being sensitive to the artistic needs of Palo Alto and encouraged continued sensitivity. Irene Hesemans, 660 Arastradero Road, was concerned that the roads were continually being dui up. She believed she already had the cable connection. Elizabeth Paschal, 569 Patricia Lane, lived in the Crescent Park III neighborhood which was already undergrounded. After everything was done, their neighborhood was told of the possibility of having to pay an extra assessment for a considerable period of time. She referred to a letter which she received on January 26, addressed to the property owners, which said "the cost of building the new underground distribution system, electric, telephone, and cable televi- sion, in the public right-of-way will be borne by the respective utilities. The only cost to you as.a property owner would be that of putting a new underground service across your property from an underground service box located outside your property»' She supported the idea of con- sulting neighborhoods because if her neighborhood was consulted in the beginning, she believed many were not interested in cable television and did not want to pay for something it would not use. She did not see why individuals who did not want to have cable television should be asked to pay the costs of undergrounding when they were told at the beginning that the underground costs would be borne by the respective utilities. 59-347 3/28/88 Council Member Levy asked what the individuals she surveyed expected to pay. - Ms. Paschal said they used figures obtained in the news- paper. It could be anywhere from $1.50 to $3 per month to be paid. over 15 years. People knew the alternative was to have a pedestal in front of their house. The preference was not to have pedestals and not to pay if they did not want cable television. Al Kartchner, 577 Patricia Lane, did not want cable televi- sion. Most of the vaults in his area were in place, flush with the ground. Five out of six homes in his area surveyed did not intend to subscribe to cable television. With the technology available in Silicon Valley it was conceivable to make a little casket which was impervious to moisture. Ken Schulz,,, 4x50 Willmar Drive, asked his neighbors to rate a properly screened pedestal and the $150 offered for screening and no assessment versus a tap pedestal. His neighbors were running about 15 to 1 opposed to vaults with assessments. After polling his neighborhood, it was too late to stop installation. He also polled the Los Arboles neighborhood and got about the same response. Based upon his polls and surveys, close to 100 percent of the solicited households were opposed to further assessment for cable installation or maintenance. The vault solution for mini- mizing landscape damage or impact was fine for some loca- tions but had an opposite effect in others. He believed the pass through approach on assessments was a poor business practice. There was little incentive on the part of PacBeil or the Cable Co-op, who did not want to do the under- grounding anyway, to minimize their expenses. He could not think of any way to separate expenses arising out of mis- takes or poor workmanship from those which were intrinsic to an underground system. He believed the residents would pay for it all. Pedestals required screening and there were some places where they did not fit in. Credibility was low; the biggest error was in delegating authority or granting a franchise or hiring a subcontractor and failing to institute proper checks and balances of the feedback procedure to ensure everything was being done properly, and that people were informed of the choices. If nothing was done, to improve credibility, regardless of what was done that eve- ning, it would not go well. He suggested the neighborhoods not be assessed; and that Council institute a notification_ procedure as quickly as possible. Council Member Woolley asked whether his neighborhood was completed. 59--348 3/28/88 Mr. Schulz lived in Greenacres II and his vaults were in. He believed the vaults at Greenacre 1 were also completed, In Los Arboles, the trenches were dug but the vaults were not installed. Council Member Cobb asked how the installers interfaced with homeowners in terms of picking the location for the vaults. Mr. Schulz said homeowners received a leaflet on the door- step saying what would happen, and it providing a few phone numbers to call with questions. The external dimension box, which was 22 by 35 inches, was labeled as being a 17 by 30 inch unit., Council Member Patitucci clarified Mr. Schulz' surveys had to do with the assessments. Mr( Schulz said before the installation in his neighborhood and in Los Arboles he asked people whether they preferred to have a tap pedestal aboveground, properly screened, without an assessment versus a vault which would be flush in the ground. Council Member Patitucci asked whether people had the choice of a vault without having to pay for it. Mr. Schulz said no. Mayor Sutorius sensed earlier that Mr. Schulz had an aware- ness of the potential of the service degradation of an underground tap pedestal. He asked whether the subject arose in any of his surveys. Mr. Schulz said he mentioned to people the feeling of both t ,e Cable Co-op and PacBeil that service would not be as good with underground vaults and that there would be corro- sion developments. Vice Mayor Klein was intrigued by the disparity in results of surveys between Crescent Park III and Greenacres. He asked Mr. Schulz if he knew of any reason why the results should be so different. Mr. Schulz said people generally expected the vaults would be out of sight and there would be no impact on the land- scaping. when they saw the piece of cardboard which he used as an example sitting on their lawn or near their bushes, they had a different view. He also believed the landscaping varied in different parts of town. About six of the vaults in his neighborhood resulted in the removal of a whole juniper bush, a corner of a hedge, and the end of another 59-349 3/28/88 hedge. One of his neighbor's bushes was killed, and another was removed. were impacts. The same things might not have happened in Crescent Park. Installers might have been more careful or perhaps landscaping was di:ferent. Irving Sunshine, 4173 Arastradero Road, concurred with all but the first speaker's presentation. Aesthetics were one thing and finances were another. He heard the figure of $3 a month as a possible assessment. The cost of the enter- prise was a significant factor to many people who did not want to subscribe to cable. Sid Owen, 246 Walter Hayes Drive, queried why such large vaults were needed belowground if connections couldbe made in such a small pedestal as that which was on display. He saw vaults in neighboring towns which he could cover with his feet. Cable was supposed to service Palo Alto not the other way around. IJndergrounding was not yet started in his area and it was possible they would pull out altogether if, it turned out that PacBell was running the City. They pre- ferred to keep their poles and their uncluttered front yards. Elliott Bolter, 286 Walter Hayes Drive, surveyed the areas and understood the frustration of residents. TCI Cable - vision had been undergrounded in San Carlos for 23 years. He was told that City's managing team insisted on an under- ground`; system since the area did not get a .good television signal and cable television was imperative. Some problems existed but the differential cost was nominal, which was not what the Palo Alto City Council was told. The boxes in San Carlos were 11-1/2 inches by 15 inches. Palo Alto's pro- posed vaults were 23 inches by 35 inches. He queried why the the vault had to be so big, and whether it could go in the sidewalk. He was advised that work crews usually went in and put in the vaults on a per installation basis. Jim Dinkel,* 3380 Cork Oak Way, referred to his letter of March 22,. 1988 .(on file in the City Clerk's office) and added an item "j" to force, require, or request that PacBell put the boxes in the sidwalk. There was no technical. reason why it could not be done. In Los,Arobles, a section of sidewalk had been removed and barriers with lights had been up for three weeks. The project was now on hold, and cable was not yet in. He would have a big box because the little tap boxes were already installed on the other side of the street. There was no reasonwhy a water department size box could not be placed in the sidewalk.. Out of the 100 boxes surveyed, perhaps two or three needed to be reset in the sidewalk.` In his case, putting the box where PacBell wanted would wipe out a tree because the root system was there. 59-350 3/28/88 Jack Pines, 4109 Donald Drive, said television was a luxury entertainment service. People who were going to use the service should pay for it. Harry Ratchford, 4177 Hubbard, said his street was above the former Terman High School on Arastradero. The people along Arastradero were assessed to death. Oregon was paved on a bond issue, but for some reason a bond issue could not be done for Arastradero and it was paid for by a graded assess- ment. .He lived in the fourth house off of Arastradero. When Arastradero was paved, the man on the corner of Hubbard and Arastradero was assessed $1,500, and he lost 15 feet of his property when they widened the street. .The second household was assessed $750; his assessment was over $400; Mr. Sunshine's assessment was only $70; the fifth house was zero and it was zero or, down the street. Then there were assessments to underground utilities. It cost him $450 to move the street light from one side of his property to a light standard on the other side. All he got out of it was moving the light. As part of the assessment, there was a cable system built in the utility underground. He now heard that cable system could not be used. In essence they bought a dead horse. When Terman Junior High School was to be sold, the assessment arose again. Since it would only serve to ,make the residents on Arastradero mad, it was withdrawn. Now Council was discussing an assessment for undergrounding cable when some people did not want it. Bob Moss, 4010 Ormne, said on February 8, 1988, Council voted 7-1 to make the survey being discussed. Several hours into the meeting, ` Vice Mayor Klein made a motion to reconsider the vote. It" was reconsidered and failed by a vote of 4-4. He resented any suggestion that the Cable Co-op was urging an assessment district or that it was delaying things or that the problems were the. fault of the people installing the system The system was designed for pedestals. The City was warned there would be controversy. Council should stop any undergrounding of vaults Without a positive response on a community -by- community, -.underground district - by -underground district basis that they wanted vaults. and understood there would be costs borne by the people in the district. He was assessed for undergrounding on his street even though he still got his utility service from a tele- phone pole. It was established that the mere fact the utilities were underground and that he did not have tele- phone lines in_ front of his house was an aesthetic benefit and, therefore, he benefited. The pedestal was approxi- mately 10 inches in diameter by about 20 to 22 inches high, and half of it would be underground,-which.most people would accept.: In terMs of carrying the costs of the -existing underground vaults, the suggestions of Council Member 3/28/88 59-351 Patitucci that the first come from the upper Page Mill give back and second from concessions in the franchise fee were the way to go. He surveyed his neighborhood and 7 out of the 22 households preferred to have the pedestals sight unseen, as long they did not have to pay anything. He was. confident, particularly inhis neighborhood where there were a lot of seniors on fixed incomes, that the majority of the people would want to have the pedestals rather than the underground vaults. The baseline should be pedestals unless people specifically requested vaults and said they would pay for it. Jim Dobbie, 586 Center Drive, spoke to about 20 of his neighbors. No one was very interested in cable and did not, want aboveground pedestals. They would probably pay $2 to $3 per month for undergrounding if it was the only alterna- tive and it was forced on them by the City. They were happy with the undergrounding of the utilities. The City did such a large job relatively well in undergrounding the utilities, and people wondered why it was such a big deal to under- ground the cable especially when many of his neighbors were technically -oriented and knew there was no real tecnical problem in putting the system underground. He was advised to resist undergrounding until the City Council told him there was no alternative. He was not concerned about the maintenance or performance of underground cable and believed the only difference was a slightly added cost in the instal- lation. It was clear to him that the Cable Co-op and PacBell did not want to underground the system. The older systems provided good cable for many years and some of the tap pedestals were less than one foot square and were located in the sidewalks. Council Member Bechtel asked about the size of the flush - mounted vaults. Chris Salkeld, Project Manager, PacBell, said there were vaults in neighboring communities that had tap pedestals undergrounded in a size that would be 11-1/2 by 15 .inches. He pointed out that Palo Alto requested a duel cable system --not a single cable system that would require just a single tap --to be someday used for data transport. To place that type of facility underground, there needed to be enough space for two taps. PacBell could place two underground vaults that were both 11-1/2 by 15 inches as a gentleman earlier mentioned. There were two taps in Palo Alto's system. Mr. Zaner said vaults could be placed in the sidewalks depending on the particular location. In some instances? utilities were already in the sidewalk and in some instances 53-352. 3/28/88, there were none. Staff would need to go into each indivi- dual area and see what was there. If utilities were i.n the sidewalk and there was room for cable television, then the vaults could be put in the sidewalk. If there was no room in the sidewalk, then the vaults needed to go back in the easement. Council Member Cobb queried whether PacBell krew of any aboveground pedestals for the extenders and the amplifiers that were smaller than the ones Council had seen :o far. Mr. Salkeld said on the basis of size only, Pa.Be11 dis- tributed to staff and Council a package put together by Channel Corporation which had pedestals that were similar to the size of the pedestals currently being used except they were horizontal rather than vertical. He believed there were tap pedestals as well as line extender pedestals on the market that would be smaller in size. Council Member `'Cobb said his impression was that relatively little effort was made by the installation crews to find out where the underground vaults or the pedestals could be installed where they would cause the least problem to the homeowner. Mr. Salkeld said the installation crews talked tohomeowners on a number of occasions it the attempt to relocate pede- stals. Council Member Cobb asked about the flexibility of locating aboveground pedestals either in the easement or on the side - yard assuming the question of obtaining additional easements was resolved. Mr. Salkeld said such flexibility could be provided. PacBell previously stated that generally, it would look at ten feet to be the average for a relocation for pedestals without severely affecting the engineering design for the tap. Beyond ten feet, PacBell would want .to look at the area to see whether there would be a problem. Council Member Cobb referred to the statement that except at the end of the chain where the degradation might become a problem, it was not likely to be that difficult of a situa- tion, Mr. Salkeld disagreed. Looking at the basic design of the trunk cable itself,. he would agree. However, looking at the design of where the Cable Co-op .had to place its service drops, the further the pedestal was placed from the custo- mer's home, there was a limitation on the length the cable drop could be located which was the problem. 59-353 3/28/88 Council Member Cobb asked, assuming the question of ease- ments in the sideyards could be resolved, whether there was a technical problem with installation. Mr. Saikeld said yes. The staff recommendation at one point was to move the pedestal 20 feet, as an average, down the homeowner's side easement, which would add a ,40 -foot loop to each pedestal. Council Member Cobb said if something like that had to be pursued, he queried whether the solution was more tap pede- stals or an entire system redesign. I►Mr. Saikeld said there would be no need for an increase in the number of tap pedestals, but there would be a redesign of the cable plants to get to the tap pedestals. It would be the system leading up to the particular pedestals. It. would not have any impact on the additional trunks through- out the serving area of the franchise. Council Member Cobb clarified it had to do with all the different kind of boxes in the loop. Mr. salkeld said yes. Council Member Levy clarified PacBeli's flexibility was that tap pedestals could be moved ten feet to either direction. Mr. Salkeld said PacBell did not necessarily havetheflexi- bility but suggested it would like to limit relocation to a ten -foot increment on one side or the other. With that, PacBeii believed it had relative security in the knowledge that it might not have to add to the additional line extenders or cable of the facilities. Council Member Levy said if the average lot was 60 feet in width, it meant PacBell had the flexibility over 20 of the 60 feet. Mr. Salkeld said generally that was correct. On more than one occasion that evening he heard that the delays were being caused by PacBell. He reminded Council on more than one occasion PacBellwas there to build a cable system for Palo Alto's needs and would like tohave resolution to the matter as soon as possible. When PacBell first appeared before the Council, it was told a. solution. would . be reached within 60 days. He believed PacBell as well as the Cable Co-op did all it could to answer the questions. Council Member Cobb was frustrated. Council made its share of mistakes . but was aided by the way the system went in. 59-394. 3/28/99 Previous remarks notwithstanding, to some degree Palo Alto was set up to fail because a lot of people were upset with the way the installations were made originally and now Council heard from yet another neighborhood who was also upset with the way the installations went in. Some other people said the installations went well in their neighbor- hoods. At best, it had not been a consistent application of consideration. If Council had been more careful about asking people where to put the various boxes and vaults, the City would not have the problems it was having. He person- ally liked the idea of asking neighborhoods before going above or below -ground. If the taps were undergrounded, he also liked the idea of putting them in the • sidewalk. It seemed to make more sense and be better for the`'system. The dilemma was that no one wanted pedestals in their yards, everyone wanted them underground, and no one wanted to pay for it. Payment was a serious problem because there needed to be equity. Two-thirds of the people were not using cable and yet there was the aesthetics' issue of the boxes above- ground. Many people said they would not support an assessment. Council Member Patitucci said the question was who would pay for the undergrounding. Unfortunately, the Cable Co-op flatly refused to consider any alternative of passing along the cost to users, which he believed was the appropriate place for the costs to gee._ Because Cable Co-op would not cooperate in trying to set up a system whereby the benefici- aries paid, he believed Council had to consider whether the City should pay. He liked the idea of choices and would have liked to have gone through the neighborhoods and laid out reasonable choices and let people select their alterna- tives, but each time Council considered the issue, it never had the time to give people choices. In listening to PacBell, it sounded like the flexibility of moving the pede- stals around was not quite as great as Council would like to expect. If it was going to cost an amount equal to the estimated costs to measure the cost, perhaps it would be easier for the City to settle with the Cable Co-op and PacBell and pay a number like $30,000 per ,year after the benefits of the concessions were used up, and underground the system. Council Member Woolley said according to what Council Member Patitucci proposed, the concessions would be made by the City in the franchise agreement and by the Cable Co-op con- tributions less marketing and administrative costs. She asked how long those two sources would pay for the cost of the underground vaults and the maintenance. 59-355. 3/28/88 Mr. Zaner believed it was something close to six or seven years. MOTION; Vice Mayor Klein moved, seconded by Sutorius, that when new funds are required for __future underground areas (if new utility underground areas are ._ever added), then these shall be paid for from one or a combination of the following (in order of preference): 1. Through additional concessions that the City and Cable Co-op may be able to negotiate at that time; 2. By reductions in the franchise fee; and 3. By assessment districts established to pay the costs that are known at that time. Further, staff is directed as follows: 1. To conduct surveys in every neighborhood yet to be undergrounded to determine whether they want: a) tap pedestals at no cost; and b) undergrounding with the understanding that ultimately they will have to pay some fee for the maintenance program. 2. To work together with Pac8.1I. on putting vaults in side- walks to the extent possible; and Treat the neighborhoods which already have underground pedestals the same way on a financial basis as those neighborhoods which elected to have underground vaults installed. 3. Council Member Bechtel said staff indicated it would be very difficult to accurately get any kind of a survey of a neigh- borhood considering the time frame. She asked how Vice Mayor Klein proposed it would be done. Vice Mayor Klein said he heard staff say it would be hard but it could be done. Council Member Bechtel clarified staff said it would take 60 days minimum and probably prior to that the contractor for the undergrounding area would be finished. Vice Mayor Klein said if PacBell had been up front with Council 90 days ago, the survey would have been done. Council Member Woolley said the three areas not yet under - grounded were Crescent Park I, Crescent .Park II, and Leland Manor. She believed the residents in these areas 59-356 3/28/8.8 consistently wanted undergrounding but it was the Greenacres I and II where Council heard the reverse and both of those areas were completed_ She did not see the value of survey- ing Crescent Park I, II, and Leland Manor unless Council wanted a commitment on their parts to go. along with the assessment district when and if that became necessary. Vice Mayor Klein had no intention of surveying the neighbor- hoods already done. His proposal was that if the neighbor- hoods yet to be surveyed voted for tap pedestals above- ground, then it would be only fair and appropriate for the City to absorb the costs. If everyone else voted to under- ground, then he believed the ones already undergrounded should share in the cost. Council --Member Woolley believed the only flaw in the argu- ment was that Council had abundant evidence that evening from Greenacres I and II that they -would have preferred the aboveground pedestals rather than the underground vaults. Vice Mayor Klein said the surveys taken showed him that surveys were significantly- biased by who the taker.of the survey was. He referred to election results historically in Palo Alto and the differences from neighborhood -to - neighborhood ran 10 to 15 percent --never 70\to 80 percent. Council Member Fletcher asked staff whether -the survey request was reasonable and practical. Mr. _Zaner believed staff could organize some quick meetings in neighborhoods and notify people to come. He could not guarantee who would show up nor could he guarantee, that after the work was done Council would not have another part of the neighborhood claiming they were not involved in the decision. In order to ensure that would not happen, staff would need a lot of time and multiple meetings and staff did not have that kind of time. Council Member Fletcher could not support the motion and the concept that the neighborhoods already undergrounded should have to pay when they had no choice. She believed it was a mistake to go underground. She also did not agree that once the financing was figured out, everything would be fine. Of all the cable operators with whom she spoke across the country, every one of them had negative things to say about undergrounding taps. She wasconcerned there would be cable subscribers before Council complaining about underground service until Council brought all the . equipment back above- ground. She urged Council defeat the motion in order to move forward with a uniform system with the smaller pede- stals which could be hidden by shrubbery in almost all cases. She visually surveyed the underground areas and believed it was so illogical the way shrubbery was cut down to put the vaults in whereas with an 11 inch pedestal the shrubbery could have hidden it. Council Member Patitucci tried to create some sort of incen- tive for the Cable Co-op's re-evaluating its position at some point and figuring out a way to pass costs along to the benefiting subscribers. If the City of Palo Alto was next in line to pay at the time when the benefits of the previous concessions ran out, then there might be somepressure, if Cable Co-op was financially healthy, to figure out a way that it might pay some of those additional costs. He also believed that putting the franchise fee ahead of the assess- ment was important although he was not opposed to some concept that ultimately Council might have to end up with an assessment district. Vice Mayor Klein said the City had no leverage on the Co-op at the present time. He did not rule out what might happen in the future and if they got to that point, he hoped the Council would use that leverage. _At the present time, he believed it was an unrealistic source of financing. If they went to the next two sources in Council Member Patitucc.'s original memo, reduction in the franchise fees and by the City of Palo Alto, either one made the last suggestion totally irrelevant because they would never get to it. They knew the City of Palo Alto would always have enough money so they would not have to go to the assessment district. The question was the fair means of payment --an assessment district or General Fund money. He believed there needed to be one or the other. Council. Member Patitucci said his memo implied the City would document actual costs. He asked whether that was being retained. If the costs did not materialize, then the assessment district might not be set up. If they did mate- rialize and they were higher than estimated, then the actual costs would be passed along to the assessment district. Vice Mayor Klein did not focus on that but was willing to go either way. The issue was important and should be decided. Council Member Patitucci believed the question of choice might be past. A uniform system with the pedestals being installed in sidewalks might be the way to go with the idea that the assessment district would be established in six or seven years to pay a specified amount. Council kewber Levy wanted to clarify the assessment dis- trict question.. If the Council signed a contract with Cable 59-358 3/28/88 Co --op and the actual amount as determined by the contract was $40,000 per year to be paid to Cable Co-op as the addi- tional cost connected with undergrounding, he asked if they could use that $40,000 contract as the basis for the assess- ment district, or whether the assessment district had to be based on the actual costs that the Co-op incurred. Ms. Northway believed the City had to pass on the actual costs incurred by the system by some reasonable method of computation. If some reasonable method bore relation to what the actual costs were, that might work; however, she heard that was not the case. Council Member Levy said if it would cost almost as much to verify the costs of the best estimates, it seemed imprudent to engage in the verification process. Ms. Northway said it might well be imprudent, but she believed the way the law looked at it was that the indivi- dual being assessed had a due process right not to have to pay for anything that was not actually incurred to benefit their property. They were protected by the fact that the expenses had to be actually incurred --or some close approxi- mation of that -..otherwise they would have no protection from someone setting the costs in a contract that was favorable to somebody else and saying those were the actual costs. Council Member Levy originally believed an assessment dis- trict was the way to pay because they were not talking about cable TV service but aesthetics for a neighborhood. The neighborhood could chose its aesthetics and ! willing to pay for it if there was an added cost. As the process pro- gressed, he realized it was an incredibly complex and mis- understood communications problem. Two-thirds of the people were not going to use cable an.d were asking why they should be assessed for the cable system. In fact, they were not being assessed for the cable system but the aesthetics of theirs neighborhood. If the City did not begin the assess- ment district for seven to eight years, it would be even more complex. By then, people who had been living with the status quo would suddenly be assessed for something they did not understand, and the assessment would not be .$2 or $3 a month but $5 or $6 a month due to inflation, and they would object even more. The answer might be to use the franchise fee or for the City to pay. The City could negotiate the figure now and save the verifice Lion costs, which would be $20,000 or $30,000. He did not believe the people with aboveground systems would object but would understand i t was part of the aesthetics of the whole community. On that basis, in terms of the motion, he agreed with Items 1 and 2 59-359 3/28/88 but would change Item 3. Instead of utilizing assessment districts, he would opt for using the franchise fee or the General Funds of the City. AMENDMENT: Council Member Levy moved, seconded by Bechtel, to amend Item 3 to use as needed a ither _ a reduction in the franchise fee or the General Funds of. the City instead of an assessment district. Council Member Levy said the concept of surveying made him uncomfortable, and the amendment would eliminate that. The already-undergrounded areas did not have the benefit of saying "yes or no" to a survey which could be another com- munications problem. He agreed with the concept of utiliz- ing sidewalks where possible. He noted that evening's surprisingly small complaint level among the areas that had been undergrounded contrasted with when Leland Manor first went aboveground. He was satisfied people seemed to like the undergrounding that had gone on. He agreed with Vice Mayor Klein's comment that surveys had a great deal of biae. built into them. Mr. Zaner said 60 percent of the people in the community and in the assessment districts would not even subscribe to the system. An assessment district hearing had to be held, and all those people would appear before the City Council and they would have a majority protest. In order to overrule a majority protest, two-thirds of . the Council had to override a majority of the community that did not want to pay for a service they had already had for five or six years. In effect, an assessment district would not happen. If Council decided it wanted the system undergrounded, it had to find another way to pay for it, i.e., either out of the General. Fund or some other source. The General Fund was ultimately the only source because the cable franchise fees went into the General Fund. Alternatively, the Council could decide it did not want any further undergrounding and stay above- ground. Council Member Bechtel agreed with Council Member Levy's and Mr. Zaner's comments that the assessment district had a poor chance of becoming a reality; therefore, the amendment was valid and valuable. Vice Mayor Klein was persuaded by Council Member Levy's and Mr. Zaner's comments that unfortunately the assessment dis- trict concept would .not work. He believed it would have worked if choices had been given to the neighborhoods right from the start. It would have been fairer because the neighborhoods could have been given the choice with the understanding that .voting forundergrounding was also voting 59-360 3/28/88 in favor of an assessment district. p.l t.nough it was not the fairest approach, he would suppr- t the money coming out of the General Fund. The publie relat:.ons' aspect of the installation of the system by CaL:le Cc' -op and PacBell left much to be desired. Council could not .:believe everything that was told to them in meetings and always had to be sen- sitive to installation of new services. Council Member Cobb still liked the idea of the survey. There was more to it than just how to pay but what people wanted to happen to th:ir neighborhood. If somebody else was goiag to pay, people would want the system under - grounded. He asked if it was possible to combine the amend- ment with a survey asking whether people were willing to put the pedestals underground if they knew the cost had to come out of the General Fund. Mayor Su4orius believed people would certainly say they were willing to have the money come out of the General Fund. He seconded Vice Mayor Klein's original motion because of the equity involved in having an assessment district play a part. It was not a matter exclusively of whether someone subscribed to cable TV at initial service -offering time. If the property was prepared'toereceive cable and the neighbor- hood had the undergrounding, there was value to the prop- erty. He also felt it was fair to look at all the districts as to whether they were presently undergrounded or pending and treat them the same. With the changes, he could not support the amendment; and if tae amendment went forward, he could not support the main motion, Council Member Patitucci hoped the amendment .contained implications that, if there was another way to keep costs down, the City would look for {ether forms of concessions before going to the General Fund. The implication did not need to be stated, and he could support the amendment as proposed. Council Member Woolley assocatee with the comments of Mayor Sutorius. The question of whether the General Fund should be used had bothered her from the beginning, and she had not supported the undergrcunding at the two meetings where she had an opportunity to vote. About 7 percent of the house- holds in the City were affected, and she could not see using the General Fund for something which benefited only a small portion of the total population. The whole matter had been handled poorly by the Council and everyone, but she could not support the amendment or the motion. ANUIDNEKT FAILED by a vote Of 4-4, . Levy, Bechtel, Klein, Patitucci voting "aye," Renz.l absent. 59-361 3/28/88 Council Member Bechtel believed the Council .Members who voted in opposition to the amendment might be opposed to the whole business. She had really wanted to reconsider the whole issue of the underground vaults, but as she listened to the speakers and considered all the options and what they had accomplished so far and in which neighborhoods, she felt they were stuck with the underground alternative. She was concerned about what it would do for the cable system and believed it would be a mistake if the main motion passed with assessment districts an assessment district would never happen. There were differences in vegetation from neighbor- hood to neighborhood, and some neighborhoods might be better served by the aboveground rather than the flush --mounted pedestals. Forgetting about the cost issue and who was paying, she believed Council needed to come up with a way to find out how people would be better served. The survey issue still needed to be pursued. She hoped one of her col- leagues who opposed the previous amendment would move to reconsider, Council Member Cobb said the problem he had withs the pre- vious amendment was taking the money out of the General Fund. He agreed it would be difficult to pass an assessment district, even if it was in the future. He still felt the survey was important. He queried whether there was some other way to survey whether people preferred the pedestals underground or aboveground, recognizing if they went under- ground there would be some additional cost passed onto the citizens of Palo Alto, either directly to the consumers or in some other way. If people were still willing for the system to go underground, they should be given the opportu- nity. If they did not want to deal with the cosh associ- ated with putting the system underground, the pedestals should go aboveground with the landscaping. Council needed some answers to understand how to deal with the cost issue so they could ask the right questions. Council Member Fletcher reitereated that the Cable Co-op offered to pay for vegetation. She believed the 11 -inch high pedestal with vegetation would fit everywhere. It was unconscionable to demand an assessment from the neighbor- hoods that had the undergrounding against their will. People complained about having the vaults on their lawns and having their shrubbery cut. She hoped the Council would go to the aboveground pedestals if the motion was defeated. Council -Member Patitucci clarified II the motion failed and the Council could not reach an agreement, the current, policy continued in effect the following day when PacBell returned to work. 59-362 3/28/88 3/28/88 Mayor Sutorius said that was correct. Councii. Member Patitucci had trouble with the assessment dietrict. If the question was whether not people who were having the underground vaults would want to pay for them out of the General Fund, he was not sure they would get an answer. People did not see the General Fund as coming out of their pockets. He also believed, contrary to Council Member Woolley's comments, the Council did spend lots of money in the General Fund to benefit just a few people, and he referred to the Youth Hostel situation. The General eund was used for the general community, and sometimes it had to be spent in specific areas, and $30,000 or $40,000 a year did not seem excessive if it got them past- the issue. Council Member Levy queried what would be found out from the survey, There was an incredible amount of misunderstanding. Some people did not understand the difference between the cable undergrounding and their electric utilities under - grounding. The results of the survey were by no means going to be conclusive and probably would result in as much acri- mony after the survey as before. Mayor Sutorius clarified the motion directed staff to con- duct a survey that would communicate the following choices within underground neighborhoods: A tap pedestal at no additional cost, or underground at some cost in seven to eight years. In addition, the source of payment for the initial costs would come by concessions in the franchise agreement; by the contributions from Cable Co-op and, when thoce ®cu ccii weave depleted, by additional concessions that the City and Cable Co-op might be able to negotiate; and assessment districts would be established to pay .any remaining costs that became known. The intent of the actual undergrounding would be that they be placed on sidewalks wherever feasible, and that all underground neighbors would, in effect, be treated the same. A survey would be made and a majority determination as to tap pedestal or underground would be a neighborhood assessment district decision. Vice Mayor Klein added the Council previously spoke to establishing a system by which they could determine actual costs and would go with whatever that figure was, i.e., $30,000 or $40,00.0 a year. NOTION PASSED by a vote of 5-3, Fletcher, Patitucci,. Woolley voting "no," Wenzel absent. Mr.. Zaner said staff might need to return to the Council if the surveys gave noconclusive results. 59-363 3/28/88 13. ORDINANCE AMENDING THE BUDGET FOR THE FISCAL YEAR 1987-88 TO PROVIDE ADDITIONAL APPROPRIATIONS FOR PARKING FINE COLLECTION SERVICES (CMR:195:8) ( 761-�3/ 701--04/105 ' Police Chief Chris Durkin said page 3 of the staff report (CMR:195:8) under County Surcharge, should read "...which totals approximately $120,000 annually," instead of "...which totals approximately $20,000 annually." He introduced Mr. •Ron Henry, Deputy Director of Operations for Datacom. Council Member Levy asked for clarification of how the item was budgeted. • The City would decrease the revenues by $167,000 and there also appeared to be $60,000 more that they were being asked to pay out; therefore, the City appeared to be losing $227,000 by the contract. He assumed the City was getting that back in some way. Mr. Zaner clarified in the budget the Council adopted in July, 1987, the City anticipated revenue of $728,000 from parking citations. They were now revising teat estimate to $167,000 less. The second part of the budget amendment now set up funds for the City to pay the company that would be doing the work. In the past, the previous company collected the money and simply remitted the net to the City. Council Member Levy asked why the estimate was revised down by $167,000. Purchasing Director/Systems Manager Lynne Johnson replied the original projection was based on an issuance of 6,000 citations a month and the City averaged a little over 5,600 for the last eight months.. Additionally, since doing the internal processing, staff had not pursued those who were not paying off the windshield. The initial pay off the windshield would be those people who paid once they ini- tially received the citation. t-_ Mr. Zaner clarified under the City's normal practice, when they had a. company working for them, people paid the fine as noon as they received the ticket on the windshield. If they failed to do so, the company went after then and collected the delinquent fines. As long as City staff had been doing the project, they had just gone after the windshield fines and not the delinquencies because of a staffing problem. That would cause soee' of the revenue to be slightly lower until they could catch up with some of the delinquent viola- tions» Council Member Levy asked if there was a reason why the estimated citations dropped from 6,000 to 5,000. 59-364 3/28/88 Ms. Johnson said the City had only four parking monitors during the past eight months instead of five due to turnover in personnel. MOTION: Vice Mayor Klein moved, seconded by Woolley, to adopt the staff recommendation as followsx 1. Authorize the Mayor to execute the agreement in the amount of $119,000 with Datacom Systems Corporation to provide processing for parking citations for a one. -year period beginning April 1, 1988. 2. Approve. the Budget Amendment Ordinance in the amount of $60,000 to cover costs associated with the agreement for the remainder of the 1987-88 fiscal year, including authorization for $6,000 in change orders, and a reduc- tion of $167,000 in parking citation revenue. 3. Approve the resolution authorizing William Zaner, June Fleming, Emily Harrison, Gordon Ford, and Ron Garrett as signators on the Parking Citation Revenue account. ORDINANCE 3800 entitled 'ORDINANCE OF THE COUNCIL OP THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1987.88 TO PROVIDE ADDITIONAL APPROPRIATIONS FOR PARKING FINE COLLECTION SER- VICES' AGREEMENT WITH DATACON SYSTEMS CORPORATION TO PRO- VIDE PROCESSING FOR PARKING CITATIONS RESOLUTION 6680 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING THE OPENING AND/OR MAINTAINING OF A PARKING, BAIL, PENALTY, AND FINE BANK ACCOUNT FOR THE CITY OF PALO ALTO AND AUTHORIZING CERTAIN SIGNATURES AND PROCEDURES' MOTION PASSED by a vote of 7-0-1, Levy l"abstaining," Rensel absent. 14. RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE THE GOLDEN TRIANGLE TASK FORCE IMPLEMENTATION AGREEMENT AND SUPPLEMENT THERETO (CMR:199 :8 ) (701-04/1045-01) NOTION: Vie. Mayor Klein moved, second*d by $ichtel, to approti the r.aclution RESOLUTION 66$1 entitled 'RESOLUTION OF THE COUNCIL OF. THE CITY or PALO ALTO AUTHORIZING TSB MAYOR TO EXECUTE THE GOLDEN TRIANGLE TASK FORCE IMPLEMENTA- TION AGREEMENT AND SUPPLEMENT THERETO' 59-365 3/28/88 MOTION CONT'D GOLDEN TRIANGLE IMPLEMENTATION AGREEMENT SUPPLEMENT TO THE GOLDEN TRIANGLE IMPLEMENTATION AGREE- MENT Vice Mayor Klein said the Council had previously considered all the policy elements included in the Golden Triangle Task Force agreement. The motion formalized those agreements and provided for a budget for Phase III of the Golden Triangle process, which actually was already underway. The Other cities had either passed it, passed it in concept, or were in the process of doing so and there was no known opposition at present since it reflected all the compromises which were worked out among the various cities. MOTION PASSED unanimously, Renzel absent. 15. LEASES AND AMENDMENT TO LEASE - PALO ALTO UNIFIED SCHOOL DISTRICT (CMR:2QO:t) (CMR: I1:8) (l341-61) Council Member Woolley did not participate due to a conflict of interest. Alison Lee, 1241 Harker Avenue, understood the lease was the result of the passage of the Utility Users Tax. Several groups in the community worked hard for the tax and saw it as a way of benefiting education and, particularly, the arts and community groups . The interim agreement did not go far enough. When the utility tax and Gann initiative came around again to be reaffirmed, people would remember the interim .agreement with dissatisfaction. She believed the Council could have been more creative in meeting the needs of both the Palo Alto Unified: School District (PAUSD) and some of the community groups who suffered from the fact there was no interim lease agreement. They would continue to work for that goal. James White, 435 E. Charleston Road, represented the Western Ballet Theatre, and understood the school .complex they occupied was not represented in any .of the City/School liai- son committee meeting literature he gathered. In the February 16, 1988, Minutes, Amendments to the Lease, Council Member Klein explained the City had a policy with regard to how it le`eed property which it controlled; that the City was required to use ti.e competitive bid process, and that he did not want community groups to got the impression that the committee could make the decision as to which space would be earmarked for a particular group. He understood that had 59-366 3/28/88 already been done. In speaking with the personnel at Lucie Stern, he understood there had been more -or -less some sort of affirmation that, due to the fact Lucie Stern would be going through a revitalization process, some_of. the space in the Jordan complex would be dedicated to them. The Western Ballet Theatre and others requested the City Council con- sider the Ohlone School site as part of the interim agree- ment so their organization could continue to function and they could derive some benefit from the Utility Users Tax which they worked to support. Mayor Sutorius clarified that a portion of Lucie Stern was undergoing seismic rehabilitation. It had been identified as proper to use the Jordan site on an interim basis to relocate staff from Lucie Stern. The idea had been actively discussed by both Vice Mayor Klein and Council Member Cobb at the public meetings. Jeanne Loomis, 445 E. Charleston Road, Executive Director of the Western Ballet- Theatre, asked Council to consider that the Ohlone School site multipurpose room and. library build- ing were currently being used by the Western Ballet Theatre. None of the other sites offered in the interim agreement were suitable to their needs. They needed unobstructed space with a high ceiling. Since the interim agreement was piecemeal, she recommended the Council consider their two buildings as part of the piecemeal plan. When she heard figures like $190,000 being spent to refurbish football fields and $19f,000 being used to convert a boys' locker room to accommodate both men and women, she wondered why the Council did not consider $24,000 a year to help subsidize their rent. She knew the Council was opposed to subsidy, bgt.renting facilities to arts groups at below -market prices was a subsidy. They would like the same consideration. They could not survive With a $4,000 per month rent, and the Council could make a large difference to their future. Council Member Fletcher said during the last discussion of the itr e she expressed her disappointment that there was no credit for purchase arrangement in the lease amendments. She since learned there was some interest on the part of at least one PAUSD board member, and perhaps a second, in con- sidering such an arrangement. She would vote against future lease agreements if those arrangements were not made. 59-•367 3/28/88 MOTION: Vice !Mayor Klein moved, seconded by Patitucci, to adopt the staff recommendation approving the negative decla- ration and authorizing the M.yor to sign the . following: 1) Amendment ° 41 to the Lease' -and Covenant . Not '..to .Develop; 2) The Jordan Interim Lease Agreement; and 3j, Mks C zbberley Lease Agreement. LEASE WITH PALO ALTO UNIFIED SCHOOL DISTRICT FOR JORDAN INTERIM LEASE LEASE WITH PALO ALTO UNIFIED SCHOOL DISTRICT FOR CUBBERLEY GYMNASIUM AMENDMENT NO. 1 TO LEASE AND COVENANT NOT TO DEVELOP NOTION PASSED unanimously, Woolley 'not participating,' Renzel absent. 16. 1987-88 REQI UREMENTS FOR JORDAN AND CUBBERLEY SCHOOLS (CMR :200:8) 701-03/1341-01 MOTION: Council Member Cobb moved; seconded by Bechtel, to adopt staff recommendation to: Approve the Budget Amendment Ordinance in the amount of $79,000 to establish School Site Improvements, CIP 87-30, which funds the following actions for the remainder of FY 1987-88: a) a consultant agreement for assessment of the condi- tion of irrigation systems at the 11 elementary school sites and Jane Lathrop Stanford (J.L.S). b) one contract engineer technician in the Public Works Facilities Management Division. c) one hel.f-time contract clerk in the Public Works Facilities Management Division. 4) An amendment to contract No. C-4733 with CSS Associates, for professional architectural/. engineering consultant services. 2. Approve the Amendment No. 1 to >existing consultant con-. tract NO. C-4733, not to emceed $44,900, with CSS Associates for professional architectural/engineering cousultant services. 3. Authorize staff to. execute change orders to Contract Mo. C-4733 of up to $7,100. 59--368 3/28/88 MOTION COAT' D ORDINANCE 3801 entitled 'ORDIMANCE OF THE COUNCIL F PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1987-88 TO ESTABLISH AND PROVIDE FUNDING FOR CAPITAL IMPROVEMENT PROJECT 87-30, 'SCHOOL SITE IRPROVERENTS' " AMEND E$T MO. 1 TO AGREEMENT NO. 4733 WITH CSS ASSOCIATES FOR PROFESSIONAL ENGINEERING CONSULTANT SERVICES MOTION PASSED unanimously, Woolley not participating, Rsnz 1 ' absent. 11. REPORT FROM : COUNCIL LEGISLATIVE COMMITTEE: HETCHY WATER SUPPLY SYSTEM: 2) TOLL BRIDGE REVENUE ( CMR: 2Q1: €) (702-06) 1) RETCH POTION: Council Member Levy moved, seconded by Klein, continue the item to date to be determined by staff. MOTION PASSED unanimously, Renzel, Woolley absent. ADJOURNMENT Council adjourned at 1:05 a.m. ATTEST: APPROVED: 59-369 3/28/88