Loading...
HomeMy WebLinkAbout1988-08-01 City Council Summary MinutesCITY COUNCIL MINUTES -PALO ALTO C'Ty COUNCILMEETINGS ARE BROADCAST LIVE VIA KZSU-FREOUENCY90.1 ON FM DIAL- Re3ular Meeting August 1, 1988 ITEM Oral Communications Approval of Minutes 1. Resolution Welcoming Representa'-ives of Oaxaca, Oaxaca, Mexico 2. Appointments to the Planning Commission Consent Calendar 3. Stop Sign System - Refer to Policy and Procedures Committee 4. PUBLIC HEARING: Adoption of the Budget as mended tor Fiscal Year 1988-89, including the 1988-93 Capital Improvement Program, and Changes to the Municipal Fee Schedule for Fiscal Year 1988--39 5. Finance and Public Works Committee Recommendation re Statement of Investment Policy (Continued to August 8, 1988) 6. Contract with Empire Tractor & Equipment Company for Eguitment Repair Service Continued to August 8, 1988) 7. Contract with Oa%land Fence Co., Inc. for Purchase mnd Installation of Perimeter Fence at Golf Course (Continued to August 8, 1988) 8. Contract with YMCA for Firefighter Physical Fitness Examinations/Evaluations (Continued to August 8, 1988) PAGE 60-202 60-202 60-202 60-203 60-205 60-205 60-205 60-221 60-221 60-221 60-221 60-200 8/01/88 ITEM PAGE 9. Contract with Peninsula Auto and Body Shop 60-221 for Vehicle Body Repair Services (Continued to August 8, 1988) 10. Contract with Marguerite Shuttle Service for Stanford University/City of Palo Alto Express Bus Demon€tration Project (Continued to August 8, 1988) 11. Contract with Susan Brain for Professional Services as Animal Services Volunteer Coordinator (Continued to August 8, 1988) 60-221 60-221 Adjournment at 12:47 p.m. 60-221 60-201 8/01/88 Regular Meeting Monday, Auguot 1, 1988 The City Council of the City of Palo Alto met on this date in the Council Chambers, 250 Hamilton Avenue, at 7:33 p.m. PRESENT: Bechtel, Cobb, Fletcher, Klein, Levy, Patitucci, Renzel, Sutorius, Woolley ORAL COMMUNICATIONS 1. Ben Bailey, 171 Everett, spoke regarding his right to know how many complaints received by the Police Department resulted in disciplinary actions. 2. Edmund Power, 2254 Dartmouth Street, spoke regarding the destruction of the Yacht Harbor, Palo Alto City Council accountAbility, and the. Police Department complaint processes. 3. Dolores Furman, 1074 Cambridge Avenue, Menlo Park, spoke regarding the dumping of hazardous materials in San Francisquito Creek. APPROVAL OF MINUTES OF JUNE 27, 1988 MOTION: Council Member Woolley moved, seconded Fletcher, approval of the Minutes of June 27, 1988, submitted. by as MOTIOt4 PASSED by a vote of 7-0-2, Sutorius and Levy "abstaining. • 1. Resolution Mexico Welcoming Representatives of Oaxaca, Oaxaca, Mayor Sutorius introduced Arden Anderson, President of the Neighbors Abroad Progtaa. Mr. Anderson spoke regarding the history of the Sister City Program with Oaxaca, Oaxaca, Mexico and its ongoing re7!a- tionship. NOTION: Mayor Sutorius moved, seconded by Levy, approval of the resolution. RESOLUTION 6724 entitled "RESOLUTION PP THE 015"111CIL i°`. TSg CYTT OF PALO ALTO RECOGNIZING THE PRESCNCE OF AND WELCOMING TO THE CITY OF PALO ALTO REPRCSENTATIVES OF OAXACA, OAXACA, MEXICO° 64.2"" 8/1/3u NOTION PASSED unanimously. Mayor Sutorius read the resolution. Mr. Anderson announced that Neighbors Abroad recently, received Readers Digest and Sister Cities International awards. Council Member Woolley commended the members of Neighbors Abroad regarding the Palo Project. 2. Appointments to the Planring Commission (702-03) Mayor Sutorius announced the app:icants were: Bernard J. Beecham Ellen L. Christensen William G. Glazier Joseph H. Huber Council Member Woolley would not vete for Ellen Christensen because she had already served for eight years and was seeking a third term. When Council discussed the need to limit its terms to two years, she believed it should also be done on the Boards and Commissions. She would support Joe Huber on the first ballot and Bern Beecham on the second ballot. Council Member Patitucci had the same sentiments as Council Member Woolley, but given that Council voted against the idea of a limit for its own members, he did noc believe it was appropriate after the fact to apply it to Commission members. He would support Joe Huber on the first ballot and Ellen Christensen on the second. Council Memher Levy associated himself with the comments of Council Member Woolley. He agreed Ms. Christensen had done an excellent job in her eight years on the Planning Commission; but, if members served on Boards or Commissions or on th4: Council too long, it tended to put a damper on the service of other members of the public who would also like to contribute to City govenment. Bern Beecham represented an excellent choice. Council Member Pletcher would support Joe Huber on the first ballot and Ellen Christensen on the second. She liked to have the flexibility of choosing an incumbent for reappoint- ment if there was good reason �o do so as was the case in the subject .'_ nstance. 60-203 8/1/8s Vice Mayor Klein would also support Joe Huber on the first ballot and Ellen Christensen on the second. When an Incumbent Planning Commissioner did as superb a job as Ellen Christensen and still had the enthusiasm and interest to continue, he found it hard to understand why anyone would want to replace her with what was inevitably an unknown person. Council Member Renzel associated herself with the comments of Council Members Patitucci, Fletcher and Vice Mayor Klein. The Planning Commission had many weighty subjects before it and having two competent incumbents reapply offered the opportunity for continuity in the important planning matters. She would support both incumbents. Council Member Cobb originally intended to support Mr. Beecham. After listening to the discussion, he believed it was important that an outstanding incumbent like Ellen Christensen be reappointed because of the ongoing work. He did not like the reason of term limits being used as a reason to not vote for someone. He would support Mr. Huber on the first ballot and Ms. Christensen on the second. Mayor Sutorius would support Mr. Huber on the first ballot. He agreed Ellen Christensen had done an excellent job on the Planning Commission and it was difficult for him to consider not voting for her. However, he would support William Glazier on the second ballot. RESULTS OF THE FIRST ROUND OF VOTING: Voting for Hubet: Renzel, Levy, Bechtel, Klein, Sutorius, Wdclley, Cobb, Fletcher, Patitucci City Clerk Gloria Young announced that Mr. Huber received nine votes and was appointed. RESULTS OF THE SECOND ROUND OF VOTING: Voting for Christensen: Renzel, Bechtel, Klein, Cobb, Fletcher* Patitucci Voting for Glazier: Sutorius Voting for Beecham: ‘Levy, Woolley Ma. Young announced that Ms. Christensen received six votes and was appointed. 60-204 8/1/88 CONSENT CALENDAR MOTION: Council Member Woolley .cued, seconded by Bechtel, approval of the Consent; Calendar. Referral 3. Stop Sign System - Refer to Policy and Procedures Committee (CMR:380:8) (701-16/1064) NOTION PASSED unanimously. 4. PUBLIC HEARING: Adoption of the Budget AS Amended for Fiscal Year 1988-89, including the 1988-9:'- Capital Improvement Program, and Changes to the Municipal Fee Schedule for Fiscal Year 1988-69 (CMR:393:8) City Manager Bill Zaner noted changes to be made on Exhibit A, Attachment 3, Page 3-1, of staff report (CMR:393:8). The "Department/Divis+on, Object Account. Expenditure Summary" listed all departments and divisions with expenditures. Corrections to the City Council line way as follows: "Actual 1986-87' -should be changed from $108,648 to $164,130; "Adopted 1987-88" should be changed from $70,000 to $95,441; "Adjusted 1987-88" should be changed from $73,074 to $99,716; "Proposed 1988-89" should stay the same at $91,485; "adopted Budget" should be changed from 30.5 percent to minus ,'.1 percent. Council Member Patitucci believed the proposed budget was fair to the taxpayers, residents and those who benefited from the programs of the City, although the budget would decrease for the next two years. The beget would be short between $3 million to $5 million annually if programs con- tinued status quo. After several meetings with Council and the City Manager, the recommendations were: 1) to reduce the staff levels of the City over a two-year period by using attrition and any other means possible, rather than lay-- offs; 2) reductions in one-time expenditures and some recurring costs? and 3) look for new revenues. The document (Exhibit A, Attachment 4) outlined different services pro- vided b' the City, the associated staffing levels, staff's recommendations for reductions, and the impacts for each recommendation. The need to reduce --not eliminate --services was apparent and the staff cooperated in their ef"orts by preparing a workable budget. The proposal exceeded the F&PW Committee's goals by: 1) increasing rents to the City'u Utility Department; 2) increasing fees to increase revenues; and 3) reducing 26.7 positions over a two-year period. _The Committee tried to serve the public well and hoped the recommendations would be'accepted in that light. 60-205 8/1/88 MOTION: Vice Mayor Klein moved, seconded by Fletcher, to limit each public speaker to two and one-half minutes. C*)TION PASSED unanimously. MOTION: Council Member Patitucci for the Finance and Pixblic Works Committee moved to adopt for Fiscal Year 1988-89, including the 1988-93 Capital Improvement Program, and Charges to the Municipal Fee Schedule for Fiscal Year 1988-89. ORDINANCE FOR FIRST READING entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING CHAPTER 6.16 OF THE PALO ALTO MUNICIPAL CODE TO EXEMPT LICERSURE FEES FOR CERTAIN DOGS RESOLUTION 6727 entitled 'RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO APPROVING FEES FOR THE PALO ALTO MUNICI- PAL GOLF COURSE" ORDINANCE 3823 entitled °ORDINAiNCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR FISCAL YEAR 1988-89 TO PPOVIDE AN AMENDED BUDGET' Council Member Bechtel asked whether programs, such as early retirement were envisioned for the employees whose positions were being terminated. City Manager Bill Zaner said staff was considering all suggestions, including bumping rights, made by SEIU. Council Member Wooley said there was still a potential cut of a position to be maoe, and she asked where it would be. City Manager Bill Zaner laic. the recommendation would be the remaining half-time Office Specialist position. The proposed document before the Council already reduced the position by one-half and the proposed additional one-half person reduction would eliminate the position entirely. Further recommendations were a quarter person of an Office Assistant; and another quarter person in a Volunteer Coordinator posi ion. In terms of impacts, the half-time Office Specialist was a clerical position, and the duties would be redistributed to the remaining staff. There would be some loss of time on fund-raising and public programs would be reduced. The Office Assistant position would be reduced t3 three quarters. The front office, which was covered by that position, would be closed Tuesday through Friday until 1:00 p.m.; the Volunteer Coordinator would.. be rduced to half-time, thereby reducing the volunteer pro- gram, the number of volunteers recruited and trained, and the program would be absorbed by the remaining one-half position. 6e-206 8/1/88 Council Member Cobb wanted to discuss funding of the Civic Center Plaza, reduction of certain positions, and the fire station modifications. Council Member Renzel wanted to discuss the Naturalist positions in the Tnterrretive Center, and the Spay and Neuter Clinic. Vice Mayor Klein wanted to discuss the Ranger position issue, Police Volunteer Coordinator and the Downtown Traffic Coordinator. Mayor Sutorius declared the Public Hearing open. Rose Green, 344 Creekside Drive, spoke regarding cutting the naturalist program to one position. She was concerned about the expenditure of $50,000 towards improvement of the Civic Plaza in light of the deficit. She also reminded the City Council of the monies invested in the creation of Byxbee Park. Mayor Sutorius clarified the Naturalist position was part of the proposal for the 1989-1990 fiscal year, which was not before the Council tha}. evening. Council Member Woolley suggested confining subject matters to budget for current fiscal year only. Council Member Renzel questioned whether the position of naturalist would be considered in next year's budget in view of the freeze. Mayor Sutorius said no position would be eliminated without going through Council and the F&PW Committee process. City Manager Bill Zaner clarified some positions were now vacant and some would become vacant. The intention was not to fill the positions because it would pre-empt the opportunity in the second year for the Council to make a decision one way or another. John Wofford, 845 Tamarack Lane, Sunnyvale, identified himself as a City of Palo Alto employee for 28 years. He was there as a representative Local 715 and other employees regarding the budget and elimination of positions. He felt the employees and their dedication were what kept the City going and would continue to give their support in spite of any cuts in budget that may be necessary. John Nock, 736 Barron Avenue, protested the process of handling V&PW minutes and limit of less than five minutes to address Council without any prior notice. He also .objected to the possible elimination of the Naturalist position, as *ell as the inadequacies of the computer byste ms. 60-207 8/1/88 Bob Britton, 777 San Antonio Road, Local 715, said the layoffs were human issues. He was concerned that attrition was not being adhered to. He referred to Council Member Cobb's comments about the soccer fields' condition. He noted the decrease of the Volunteer Coordinator position and the speakers who spoke in favor of the position. Stephanie Smith, 886 Colorado Avenue, cor..rerned about cut- ting lower level employees and not more management posi- tions. She felt it was essential to retain Fred Wells as the Performing Arts Director because of his unique qualifi- cations, as well as to retain those who assure safety to the participants and guests of the performing arts functions. Bob doss, 4010 Orme, indicated the figures shown in, the staff report (CMR:393:8) were wrong, i.e.. sales tar was $12 million and property tax was $6.7 million. The report indi- cated sales taxes had gone up to $13.1 million in Fiscal Year. 1987-88 eld would drop next year. He believed the sales taxes woul go up. Also, the staff report showed prop- erty taxes dropped 2.2 percent. He believed property taxes would go up 2 percent even if nothing were built in Palo Alto. Utility Users Tax amounted to $6 million, $3.5 million was being transferred to the schools, and $2.8 million would be spent on street and sidewalk repairs. He suggested management should be cut instead of police, fire, publ:.c works and library staffing. He ne.ted the increase of three people in Finance. Council Member Patitucci asked how many people out of the 26.5 positions to be reduced would be accommodated due to attrition rather than layoffs. City Manager Bill Zaner responded all but about nine would be accommodated. He noted the proposed management reduc- tions were proportionately greater than non -management reductions on a percentage basis. Council Member Cobb asked for a response to the comments regarding sales and property tax projections. Mr. Zaner disagreed with Mr. Moss' figures. Many hours were spent with the County Assessor, and staff was very careful to make sure the estimates were correct. Sales tax . data was hard to predict since it depended on what the general economy did, especially during Christmas, due to th'I City's dependence on retail sales. Based on knowledge of the State and Bay Area, he believed the figures were quite close. Rick Fnb.erg, 120 Byron Street, addressed the issue of an adult crossing gurtrd at Addison Avenue and Middlefield Road since there were many children who used the crossing. from Addison Elementary 'school. He was a member of th3 Addison 1 Parent Teachers Association (PTA) and requested the of Palo Alto consider this request. 60-208 8/1/88 Ron Lee, 1119 Harker Avenue, represented associates of the ?alo Alto Junior Museum who were concerned about the Naturalist position and hoped the City Council would continue to keep the lines of communication open to them in order to discuss the matter further. Gordon Baillie, Baylands Park Ranger, referred to the pro- posal to cut the permanent position of Park Ranger. Reducing City expenditures was recognized by all, but cut- ting the Temporary Park Ranger budget might be wiser due to costs of training. If there was no alternative but to cut a permanent position, he asked it be done through attrition. Roy Edginton, 1331 Stoc:. 711 Place, a police volunteer, referred to the proposed reduction of the Police Volunteer Coordinator position and urged reconsideration. He called attention to the petition which was signed by a significant number of police volunteers and noted a more recent number of signatures have been added to the list. Virginia C. Williams, 835 Thornwood Drive, was an active volunteer for the Police Department. She urged Council to restere the funds for a full-time coordinator for the volunteer program. She believed volunteers donated about $66,000 a year in work, and,a half-time coordinator would not be able to maintain the high level of work and partici- pation. COUNCIL RECESSED FROM 9:40 p.m. to 10:13 p.m. Alice Beach, 938 Boyce Avenue, had marfy graphs and overheads for Council to study. She urged Council to reconsider any cuts in the Community Theater. Richard Damian, 870 College Avenue, felt the Cultural Center should be maintained. Judith Kays, 108 Peter Coutts Circle, Stanford, was sur- prised the City reallocated $50,000 to "sprucing up" the Civic Center while cutting $50,000 from the Cultural Center and other worthwhile programs. Alison Lee, 1241 Harker Avenue, was concerned about the polarization in the cultural and visual arts. She asked the Council not to let the short-term deficit have long-term effects by cuts in the arts. Barbara Baxter -Berman, 464 Churchill Avenue, agreed with the previous speaker. The arts programs were important and the evening drawing group at the Cultural Center was es!oecially important to the local artists. Jean Raeacciotti, 959 Waverley, ^ommended Council Member Patitucci on how he conducted the F&PW. Committee h meetings. She. agreed with many of the cuts but no% i 6O 8/1/ arts. She requested Council to continue its support to a community who placed a high priority in the arts. Randi Alues, 500 Melville, Lucie Stern Box Office Manager, echoed the comments of Allison Lee, Jean Ramacciotti and Stephanie Smith. She felt strongly the theater needed continued support from the staff. Anne Taylor, 1415 Hamilton Avenue, Board Member of the Palo Alto Cultural Center Guild, objected to the budget cuts of the arts programs. Such cuts would severely damage the Visual Arts Program which served 75,000 people over the past year. Phillip Kirkeleyi 257 El it Place, a 30 -year resident of Palo Alto, supported the City's art program and was proud of the services to the people of Palo Alto, even if they needed to be maintained through a tax increase. Lise Giraud, 2200 Byron Street, was concerned about the fiscal impact of increasing the fees at the Spay and Neuter Clinic while spending $50,000 to beautify the Civic Center Plaza. She b '_ieved a low cost spay and neuter, clinic was very cost-effective. She urged the rates be lowered for all comers, whether or not they were City residents, to enable the clinic to operate at its capacity. Kay Bushnell, 775 Northampton, said all of her suggestions were deeply rooted in a preventive approach to animal control. She suggested the City publicize the Spay and Neuter Clinic; make arrangements to receive referrals from Peninsula and Santa Clara Humane Society's overflow; lower rates for a certain period of time and see how much addi- tional volume was generated; and license cats, as well as dogs. She urged the fees not be raised. Tania D. Hanks, 230 Arriba Court, 16, Sunnyvale, spoke with the Sunnyvale City Manager re the possibility of subsidizing Falo Alto's Spay and Neuter Clinic. Sunnyvale was looking into a contract with the Santa Clara Humane Society to utilize its services. Sunnyvale did not have funds for animal services at that time, but hoped to in the future. The clinic cost the County of Santa Clara over $1 million for FY 1988-89, and since costs were escalating, the County planned to build its own shelter within the next two years, so surrounding communities would be unlikely to subsidize Palo Alto's clinic as well. She suggested the rates be maintained or lowered. Clay Fox, 1642 Mlramonte, Mountain View, felt most people did not favor increased fees at the Spay and Neuter Clinic. Other cities' budgets were set for the coming year so they would not be able to ei>ppert the program for the coming yea. . He urged Council not increase fees. 60-210 8/1/88 Kate Ashley, 1141 Granada, Belmont, suggested Council Members visit the Shelter to see first-hand the consequences of pet overpopulation. She referred to Council Member Frank Patitucci's comment in the Peninsula Times Tribune and noted that a number of the budgets were a ray adopted in the surrounding communities. Jennifer Raymond, 284 Margarita Avenue, urged Council to rethink its deciiion to increase the fees at the Spay and Neuter Clinic. Non-residents' use of the Clinic had subsidized the Palo Alto residents. She was willing to go to the surrounding communities to get support for the program. January, 1989 was too soon for people to get input into the process. Stella Zamvil, 821 Thornwood Drive, felt the deficit of $20,000 was not too bad at the Shelter. She agreed with Jennifer Raymond and encouraged Council to retain the present fees in the interim. Golf was a pleasure and the City did not charge non-resident fees on the golf course. Mayor Sutorius noted there are various categories in the yolf fee arrangements and it provided for a '`otal cost recovery of golf course operations. Andrew Michael, 323 Metzger Street, Half Moon Bay, was a former Palo Alto -resident and a former volunteer at the Spay and Neuter Clinic. The City did - not have a choice but to take on the responsibility of the Clinic whethe' that be by subsidizing it or increasing the number of animal control officers and other personnel. Kimberley Fanner, 3733 Middiefie d Road, was concerned .bout the morality of raising the fees at the Clinic. She urged Council not to raise the fees because Palo Alto needed to protect its animals. N. Armond Ross, 2265 Reimer, East Palo Alto, said East Palo Alto could not afford its own Clinic or contribute to the Palo Alto Clinic. He noted East Palo Alto's support when Palo Alto had requested their services and encouraged the Council not to raise the fees. Andrew Gach, 1621 Christina Drive, Los Altos, questioned whether raising fees at the Spay and Neuter Clinic would increase revenues because ! eop a would not want to use it. He requested Council reconsider end not raise the tees. Ruth Chriss, 282 Carolina Lane, urged that Council reconsider eaising the fees at the Spay and Neuter Clinic. Lester Hudgins, 565 Arastradero Road, #103, was one of seven permanent City park rangers. He reinforced the letter of Annette Coleman,, Sen j or Ranger, and comments of Gordon Bailey and emphasized seasonal positions could not replace 60-211 8/1/88 permanent staff since permanent rangers were sworn peace officers, responded to emergency medical and fire situations in both the foothills and baylands areas, and were involved in interpretive programs in the foothills and baylands areas. He requested Council to retain permanent positions and take budget cuts of $96,000 from the seasonal employees' aosiount. 3*net Cook, representing the Palo Alto/Mid-Peninsula National Organization for Women (NOW), requested funds for separate bathroom, shower, locker and sleeping quarters for the gender -mix staff of the Palo Alto Fire Department. It would improve equity in the work place and encourage a balanced work force. Marion Odell, 482 Everett Avenue, was concerned about the privacy situation in the Fire Department. She wanted to encourage young women to become firefighters in the City of Palo Alto, and urged the Council to pass the CIP for the Fire Department as presented by the F&PW Committee. Maria Rugani, 656-E Cedar Street, San Carlos, stated she worked in Palo Alto and continuance of the City's programs and services were of concern to her. She urged Council to approve the CIP for the modification of the fire stations and support it in the budget. Sue Skelton, 292 Waverley, favored the three-year CIP to enable the Fire Department to provide separate facilities for both mea and women. Fey;n Braun, 24 Arent, Menlo Park, encouraged the Council to approve the CIP for the fire stations. Leila Selk, Palo Alto Firefighter, supported the plan for the City to provide separate facilities in the Fire Department within the year. Co:anci1 Member Woolley understood the Spay and Neuter Clinic currently performed about 3,700 surgeries a year, and she queried how many surgeries could be realistically performed without any increase in staff or fixed costs. Superintendent of Animal Services and Placement Greg Betts said cage space could accommodate about 35 surgeries per day with the same amount of staffing. There would not be 35 surgeries per day but volume could increase to approximately 5,700 or 5,800 surgeries per year, based en 220 days of surgeries per year. Council Member Woolley queried how many surgeries would ba needed to break even. Mr. Betts believed there would need to be about 4,100 or 4,200 surgeries per year, using current figures. 60-212 8/1/88 Council Member Woolley asked how much revenue would be raised by the proposed increase in fees over the current fees for Spay and Neuter? Greg Betts aid the increase in fees would result in an additional $5,000. AMENDMERT: Council Member Woolley roved, seconded of Renasl, that staff be directed to work with the staffs other user cities to increase the City's volume in the Clinic. Further, to ar rove the staff recommendations for the fee increases, with two exceptions: 1) maintain the current Spay and Router fees; and 2) raise the surrender fees to $20 for dogs and $15 for cats. Council Member Woolley believed rather than trying to get other cities to participate in some kind of a subsidy to make up the differential, it was more feasible for staff to work with other cities to get commitments to publicize to people that Palo Alto had the Spay and Neuter Clinic available. If the situation were explained to other cities, it was a low cost activity for cities, then they might be more able to agree. If the surgeries only had to be increased by 400 to 500, it seemed feasible since the '_?eninsula Humane Society was turning away 200 animals per month as was Santa Clara. If fees could be kept status quo, the City was more likely to accomplish its goals4 She suggested raising the surrender fee instead because the City could have about $9,500 more dollars and the City woud probably lose about $5,000 by not increasing the Spay and Neuter fees. Staff's recommendation was for surrender fees to be $15 for dogs and $10 for cats. Council Member Cobb asked about the feasibility of the Spay and Neuter Clinic program paying for itself. Mr. Betts said the Clinic staff was willing to do as many surgeries as could be attracted to the Clinic. The biggest limitation in full cost recovery was getting more surgeries. If other cities advertised Palo Alto's Clinic, lower fees could be attached on a trial basis to determine whether a break even could be "ccospl i shed at lower fees. Council Member Cobb asked about Palo Alto's fee structure as compared to other agencies. Mr. 'netts said while the Santa Clara Humane Society referred people to the Palo Alto Clinic, it charged $25 for cat spay and the Palo Alto non-resident fee was $28. When people called, sometimes they did not go beyond asking what PAlo Alto's fee was. He believed the Clinic would be in a better position of getting the excess 200 aeiaai referrals if its fees were either the present costs or reduced in order to be comparable to Santa Clara. S nta Clare's fee for a cat neuter was $15, compared to $16.75 for Pelo Alto. 60-213 8/1/88 Vice Mayor Klein did not believe the $1.75 differential in a cat neuter would be a determining factor in why people Cid not use Palo Alto's Clinic. He suggested travel time was a factor for people outside of Palo Alto. Council Member Cobb asked whether it was feasible to consider increased surrender fees, a license fees for cats,", etc. as a package which would snake the Clinic low cost but still self-supporting. He queried how long an aggressive marketing approach would take to show some results. Mr. Betts said the approach was feasible. He preferred to try an aggressive program for a period of a year, but believed there would be results after six months. Council Member. Cobb asked Council Member Woolley if she would put a deadline in the motion so the Clinic would be at cost recovery if other options did not work. Council Member Woolley felt it would be appropriate to review the situation again at the next budget session. Many members of the public stated they would wore to help the Clinic, and Council should assume they would. Council Member Fenzel commended Council Member Woolley's creative solution regarding the dilemma of staff in pro- viding a full coat recovery objective as well as maintaining a low-cost Spay and Neuter Clinic. She did not believe the F&PW Committee recommendation was as feasible since most other communities had adopted their budgets. There was a better chance of success by requesting neighboring communities to provide some publicity for the low-cost Spay and Neuter Clinic using whatever means were used to communicate with their residents. She urged support of the motion. Council Member Fletcher supported the motion except for raising the surrender fee. The present surrender fees were $ 5 for dogs or cats, and she was concerned that such e sig- nificant increase might result in more animal abandonment. She believed there was a desire on the part of the community to join in in an effort to make the Clinic work finan- cially. Council Member Bechtel supported the motion and believed Council should take advantage ot all the people who wanted to work on the issue. The Spay and Neuter Clinic was unique to Palo Alto and there was io question it provided a service to =people in surrounding communities. Those people could help by bringing in enough revenue to cover the fixed costs. Council !!ember Levy aked how rainy r :e dogs would have to be brought in for surgeries under Council Member Woolley's pro - 0 -214 8/1/88 posal than under staff's proposal in order for both pro- posals to generate the same revenue. Mr. Betts deferred response. Council Member Patitucci asked whether such a plan would work. City Manager Bill Zaner was concerned about the kind of out- reach effort that would be made in other communities. It was difficult for him to see an incentive for other communi- ties to participate in alerting their citizens that Palo Alto's Clinic was available when those communities appar- ently believed the service they received was adequate. No move was being made to try and improve their own levels of service. He was not confident about seeing the increased volume, but believed the effort of other cities would be seen in five or six months. Council Member Levy queried how Council Member Woolley envisioned getting more cats in the Clinic. Council Member Woolley believed the Spay and Neuter Clinic had only been previously advertised through Palo Alto's utility bill. If other cities helped to advertise through their in-house mechanisms, it should make a significant difference. Council Member Levy asked whether the yellow pages were used for advertising. Mr. Betts said the Clinic had a line advertisement under both the headings ":pay and Neuter Clinic'° and °'Palo Alto Spay and Neuter Clinic.' Vice Mayor Klein commended Council Member Patitucci `s sum- mary of the budget hearings and for making Council aware that it was subsidizing people in other communities. If 200 people were being turned away from the Santa Clara facility, the lack of supply should enable someone to charge more money. Be was prepared for Palo Alto to run a "regional" facility, but it should be supported by all regions. AMERDOEIT TO ANSMOMSNTI Fine Mayor Klein moved, seconded by Cobb, that the Spay and Neuter Clinic be on a break even basis by the end of the first quarter of the 1919-1'30 fiscal year. If not, the fees charged to non-residents woule be increased to a point where 100 percent cost recovery was achieved. Faie increase in fees to commence January 1, 1990. Vice Mayor Klein deliberately did not state how the Clinic should be placed on a break-even basis p but preferred to leave that to management's. discretion. 60-215 8/1/88 Council Member Cobb clarified Mr. Betts had full authority to return to the Council with an appropriate recommendation to make the program succeed as described. If that was the case, Council Member Woolley's specific recommendation with regard to surrender fees would wait until Mr. Betts' recommendation. Vice Mayor Klein ::ad no problem with the surrender fees proposed by Council Member Woolley. If Mr. Betts believed some other design of fees would work better to achieve the stated goal, he was open to receiving those recommendations in a month or so. Coi;ncil Member Cobb asked whether it was feasible for Mr. Betts to return with an entire set of fees and charges consistent with a proposal in 30 days. Mr. Betts said yes. Council Member Woolley clarified her motion included an increase in the surrender fee so spay and neuter fees could be left as they were. She saw it as a package deal even though the surrender fee was not part of the Spay and Neuter Clinic. Mr. Betts understood the thrust of the amendment was to try and make the fees from the clinic in donations and increase in volume cost recovery separate from fees from dog license fees or surrender fees or impoundment fees as a different type of subsidy. Vice Mayor Klein opposed Pglo Alto's subsidizing people who lived in affluent communities. He was not talking so much about licensing and surrender fees, but rather surgical procedures. AMENDMENT WITHDRAWN 8Y !MAKER AND SECO V ARENDMERT TO AMMDMENT WITHDRAWN 8Y MAKER AND SECOND AMENDMENT: Council Member Wooley moved, seconded by nein, as follows: 1. That the Spay aad Neuter Clinic fees remain at the current levels and 2. That the Spay and Neuter Clinic shall be on a break -oven basis over the period of the firstquarter of F! 1989-90 budget year: and If not, the Finance and Public Works Committee recommendation of 100 percent recovery of non-resident fees goes into effect January 1, 1990. Council Member Woolley clarified staff could return with another proposal for fees if necessary. 60-216 8/1/88 Council Member Fletcher wanted to see the Spay and Neuter Clinic self-supporting, but she did not support increased fees. She hoped to see the volume increased but if the break-even level was not reached and the rates were increased to the horrendous levels as recommended by the F&PW Committee, people would not use the facility because they could go to a veterinarian near their home and pay the same rates or less. It would result in the volume of non- resident surgeries being reduced significantly. Council already knew it was the non-residents who provided the necessary income to keep the r te1.- terr low for Palo Alto residents. She would not support the motion. Council Member Levy did not see any hope in achieving the break-even situation at the Clinic with the present plan to keep the rates at their current level; not appropriate any money for marketing; and hope the volume increased enough to break even. As pointed out, there was no incentive for any neighboring community to do the marketing job for Palo Alto. He would not support the motion. Council Member Patitucci believed for the $40, 00 paid to subsidize the operation, Council could reduce the cost of spay and neuter services for Palo Alto residents by telling a resident to get the service from a veterinarian and the City would pay 50 or 60 percent. The net cost to the resident would be less than what the City charged in the Clinic. The question was whether the City wanted some period of time to see whether the operation could be made to operate on a break-even basis and how much time to give. He did not believe changing the fee structure would generate the volume nor would marketing. He clarified if the Clinic did not break even in the first quarter, there would be a mandatory implementation of rates on January 1, 1990 without any additional action by the Council. Mayor Sutorius said the rate change would have to be approved by Council by ordinance,. Under the motion, staff was obligated to return with the material, including the prepared ordinance, for Council action. Council Member Patitucci wanted to approve the ordinance as part of the budget process. He did not want to have to agendize establishment of the rates in January 1990. City Attorney Diane Nnrthway said Council could adopt a cur- rent rate and another rate effective as of January 1990. Council could make the determination that its conditions had or had not bean met and that could be the test of whether to rescind the action. Council Member Patitucci clarified Council would adopt the 1990 rates that would conditionally go into eff.,.ct. 60-217 8/1/88 fl Mr. Zaner said Council would still need to adopt the fee schedule at the end of the process. Staff would provide a fee schedule with a proposed immediate rate and a rate to be effective January 1, 1990. Vice Mayor Klein was looking for ail automatic formula that would go into effect. Ms. Northway said it could be done that way. Council Member Levy said the P&PW Committee recommended the 100 percent cost recovery take place January 1989, and the motion said January 1990. He did not see that anything was being done to achieve the 100 percent cost recovery goal it the extra year. Since the end result was to go to .a 100 percent recovery, he could support the motion. He agreed with Vice Mayor Klein that those who could afford to pay full value should. Mayor Sutorius believed it was remarkable that staff could accept the challenge without any additional support. He wished staff well. He hoped the offers made by advocates of holding the line on rates would materialize and volume would increase - MOTION PASSED by a vote of 8-1, Fletcher voting 'no.' Mr. Zaner said staff would return to Council with thn appropriate language . to deal with the 1990 fee increa s formula. Capital Improvement Program AMENDMENT: Council Member Bechtel moved, seconded by Fletcher, to amend the Capital Improvement Project (CIP) 1988-16 re fire station dormitories to accommodate female firefighters to set aside $100,000 to modify two stations, and direct staff to return identifying the stationer AMENDMENT PASSED unanimously. AMENDMENT: Council Member Bechtel moved, seconded by Menzel, approval of the balance of the Capital Improvement Project 19$8--93, as modified. Vice Mayor Klein asked for clarification regarding the present Civic Center Plaza project. Mr. Zaner said funds were appropriated in 1987-88 for a Civic Center Project. Until staff was directed to. do something, nothing would happen. AM P$ INT PASSED unanimously. 60-218 8/1/88 AMENDMENT: Vice Mayor Klein moved, seconded by Patitucci, that staff be directed to use $50,000 for Civic Center Plaza and the remainder of the funds to be returned to Reserves. Council Member Levy queried whether Council should appropri- ate any funds to a new and untried concept considering the current state of its finances. He wanted to see the Civic Center Plaza project implemented, but suggested it be postponed. Council Member Patitucci said approximately $350,000 was previously appropriated for the project. While it was desirable to deappropriate the remainder of the money, Council should finish what it started as a one-time expenditure. He would support the motion. Council Member Cobb agreed with Council. Member Levy. Council Member Woolley said Council was trying to cut things that occurred every year. The Civic Center Plaza project was funded out of Capital expenditures. It was not some- thing which would by funded year after year, and she did not believe it was comparable to include it with the operating budget. Council authorized an Urban Design Study and requested advice from the Urban Design Committee in terms of what should be done regarding the Plaza. The recommendation of the Urban Design Committee was an integral part of the total plan for the Downtown. She suggested all but $80,000 be returned to Reserves. AMENDMENT TO AMENDMENT: Council Member Woolley moved, seconded by Sutorius, that all but $80,000 be returned to reserves. Council Member Menzel agreed that since it was a year of aiJsterity and the money coeld go back into the reserve for other use, Council should postpone updating the plaza until a future date. Mayor Sutot iva said the amendment responded to the fact that the Urban Design Committee had made a concerted effort to scale back the project. Council determined not to try and rebuild City Hall but a reasonable one-time effort et a greatly scaled _down cost would be appropriate. Members of the business community were shaping their plans in concert with the minimal design cost of $78,000 Vice Mayor Klein would support the amendment and the main motion. He associated himself with the coements of Council Member Woolley that the CI.P money was different from the General Fund. It was a one-time expenditure and a good investment for the City to try and attract business to the Downtown, and thereby generate sales tax revenue. 60-219 8/1/88 Mayor Sutorius said the amendment would limit the deappro- priation to $260,000. AMENDMENT TO AMENDMENT FAILED by a vote of 4-5, Bechtel, Klein, Sutorius, $oolley voting 'aye." AMENDMENT PASSED by a vote of 5-4, Rensel , Levy, Cobb, Fletcher voting "no." MOTION TO CONTINUE: Council Member Levy moved, seconded by Menzel, to continue the remaining portion of Item 4, and continue Items 5-11 to the regular City Council meeting of August 8, 1988. MOTION PASSED unanimously. ADJOURNMENT Council adjourned at 12:47 p.m. ATTEST: APPROVED: NOTE Sense minutes (synopsis) are prepared in accordance with Palo Alto Municipal Code Section 2.04.200tb). The City Council meeting tapes are retained in the City Clerk's Office for two years from the date of the meeting, and the Finance and Public Works Committee and Policy and Procedures Committee meetings tapes are retained for six months. Members of the public may listen to the tapes during regular office hours. b0-220 8/1/88