HomeMy WebLinkAbout1985-03-11 City Council Summary Minutesa
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CITY
COUNCIL
M1MUTEt
Regular Meeting
March 11, 1985
CITY
OF
PALO
ALTO
ITEM PAGE
Oral Communications
Minutes of January 21, 1985
Minutes of January 28, 1985
Minutes of February 11, 1985
Consent Calendar
Referral
Action
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Item #3, Ordinance Re Underground Utility District 5 5 5 2
No. 26 (2nd Reading)
Item #4, 0rdinance Re 3801 East Bayshore Road (2nd 5 5 5 2
Reading)
Item #5, Ordinance Re 744 Ramona (2nd Reading) 5 5 5 2
Item #o, Amendment To Housing Mitigation Ordinance 5 5 5 2
Re Enforcement and Penalties (2nd Reading)
Item #7, Noise Ordinance (2nd Reading) 5 5 5 2
Agenda Changes, Additions and Deletions 5 5 5 2
Item #8, Visual Arts Jury Re Art in Public Places 5 5 5 2
Program
Item #8-A (Old Item 1), Agreement for Sale of 5 5 5 8
Surplus Capacity and Energy of Northfolk Stani sl aus
River Hydroelectric Development Project
Item #9, Park Boulevard/Park Avenue Traffic Circle
Item #10, Request for Support - Californians for.
Better Transportation
Item #10-A (Old item #2), Addendum to Basic Agree-
ment Between the Cities of Palo Alto, Mountain View
and Los Altos for Acquisition, Construction and
Maintenance of a Joint Sewer System
Item #11, Request of Mayor Levy Re Mid -Peninsula
Traffic and Transportation Concerns
Item #12, Request of Coun.ilMembers Sutorius and
Woolley Re Endorsement Letter ; for Palo, Leyte,.
oh1l l ipines/Relghbors Abroad Library Project
Adjournment: 10:55 p.m.
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3/11/85
Regular . Meeting
March 11, 1985
The City Council of the City of Palo Alto met on this date in the
Council Chambers, 250 Hamilton Avenue, at 7:38 p.m.
Mayor Levy announced that a Special Study Session re Architectural
Review Board Annual Report was held in the Council Conference Ro^rn
at 5:30 p.m. He also announced that a Closed Session re Employer/
Employee Relations would be held after the regular City Council
meeting.
PRESENT: Bechtel, Cobb, Fletcher, Klein, Levy,
Ren zel , Suto ri us , Witherspoon, Woolley
ORAL COMMUNICATIONS
1. Lee Spivack, 488 University Avenue, spoke on behalf of himself
and 72 other tenants of the President Apartments. .In 1973-74,
tenants wrote to the City about the inordinate amount of noise
at late hours emanating from the Varsity Theatre. In 1984,
the noise had not abated. Innumerable complaints to the
Police Department and City fathers were unavailing. Last
year, 25 of the senior citizens in the building submitted a
petition to the Zoning Administrator requesting relief. A
meeting was held and the Zoning Administrator promised the
noise would be cut in half. The theatre people promised to
cover the outside gallery. In the interim, the City approved
the construction of a hotel in back of the President Apart-
ments. He went to see the Zoning Administrator and was
advised he would have to make an appointment. Meanwhile,
there was a ten-day notice and i f no appeal was filed within
that time, the Zoning Administrator would make his decision.
He strongly objected to the arrogance if. the City and believed
it was illegal. He requested that Council abate the noise
from the Varsity Theatre. He suggested that Lieutenant Louie
from the Police Department could provide further information.
2. Rob Lev i tsky, 630 Lincoln Avenue, lived in Palo Alto for 27
years. One of Palo Alto's greatest assets were the rolling
foothills. The Stanford University Board of Trustees proposed
use of a 20 -acre parcel in the foothills for the Reagan
Library, access roads and parking lots. While he had nothing
against presidential libraries,-- he was concerned about any
building at the proposed location,: He was committed to work-
ing against the misuse of land and would involve himself in
Stanford's planning process. He .,asked about Palo Al to s ave-
nues in preventing the destruction of open space.
MINUTES OF JANUARY 21 , 19t15. JANUARY 28, 1985; AND FEBRUARY 11,
1985
NATION: CounCllmeeber Refuel moved, seconded by Cobb, . approved
of the City Council minutes of January 21, i.io6 January 28, 1986,
and February 11, 1986 as submitted.
NOTION PASSED enanialoesly•
CONSENT CALENDAR
Mayor Levy removed Item #2, Addendum to Basic Agreement re Joint
Sewer System, at the request of staff.
Counc ilaeaber Renzel removed .item 01, . Sunni sl aus River.. Hydro-
electric Development Project-.
NOTION: Coincilra_*ber Klein mgrved, seconded by Fletcher,
approval of Consent Calendar ite0S .1=4.
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Counc i-1 metaiber- Renzel asked to be recorded as voting "no," on Ito:;
#5, Ordinance re 744 Ramona.
Referral
None
Action
Item #3, ORDINANCE RE UNDERGROUND UTILITY DISTRICT NO. 26 (2nd
l eai°ng) IUT! I-81
ORDINANCE_ 3605 entitled 'ORDINANCE OF THE COUNCIL OF
TAE CITY OP 'PALO ALTO AMENDING SECTION 12.16.020 OF
CHAPTER 12.16 OF TITLE 12 OF THE PALO ALTO MUNICIPAL
CODE BY ESTABLISHING UNDERGROUND UTILITY DISTRICT NO.
266 (1st Reading 2/25/85, PASSED 9.0)
ITEM #4, ORDINANCE RE 3801 EAST BAYSHORE ROAD (2nd Reading)
(PLA 3-1)
ORDINANCE 3606 entitled 'ORDINANCE OF THE COUNCIL OF
7E CITY OF PALO ALTO AMENDING SECTION 18.08.040 OF THE
PALO ALTO MUNICIPAL CODE (THE ZONING MAP) TO CHANGE THE
ZONE CLASSIFICATION OF THE PROPERTY KNOWN AS 3801 EAST
BAYSHORE ROAD FROM PC TO LM(1)(D)6 (1st Reading 2/25/85,
PASSED 9-0)
ITEM #5, ORDINANCE RE 744 RAMONA (2nd Reading) (PLA 3-1)
ORDINANCE 3607 entitled "ORDINANCE OF THE COUNCIL OF
THE CITY OF PALO ALTO AMENDING SECTION 18.08.040 OF THE
PALO ALTO MUNICIPAL CODE (THE ZONING NAP) TO AMEND
PROVISIONS OF. PC DISTRICT 3182 FOR PROPERTY KNOWN AS 744
RAMONA STREET" (1st Rra4iag 2/25/85, PASSED 8-1, Renzel
°no')
ITEM #6, AMENDMENT TO HOUSING MITIGATION ORDINANCE RE ENFORCEMENT
TNT-PEW:TM (2nd Reading) IPLA 2-4)
ORDINANCE 3608 entitled 'ORDINANCE OF THE COUNCIL OF
THE CITY OF PALO ALTO AMENDING CHAPTER 16.47 REGARDING
APPROVAL OF PROJECTS WITH IMPACTS ON HOUSING TO ADD
PENALTIES FOR VIOLATIONS' (1st Reading 2/2S/85, PASSED
9-0)
ITEM #7, NOISE ORDINANCE (2nd Reading) (ENY 5)
ORDINANCE 3609 entitled "ORDINANCE OF THE COUNCIL OF
Ilrinrinnimr-mo ALTO AMENDING SECTION 9.10.020(c) OF
THE PAO ALTO MUNICIPAL CODE REGARDING THE DEFINITION OF
`NOISE LEVEL" (1st Reasling 2/25/85, PASSED 9-0)
MOTION. PASSED unanimously, 'teazel voting 'no' on Item 15, 744
Ramona.
AGENDA CHANGES, ADDITIONS AND DELETIONS
City Manager Bill Zaner advised that Item #1, Stanislaos River
Hydroelectric Development Project would become Item 8-A4 and Item..
#2,: Basic Agreement for Joint Sewer System would become* Item
10-A.
ITEM #€1 VISUAL ARTS JURY RE ART , IN PUBLIC PLACES PROGRAM
(CAR:204:5) Nu 2-3-1T
Orlando Malone, Chair=.:an of the Visual Arts Jury (YAJ), said the.
Municipal Arts Plan was intended as a planning guideline for the
ac ui si t1on and placement of art in public' places. It was a five
to ten-year. plan : and four 'of the principal items were already in
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effect. Policy I was intended to develop and upgrade the City's
permanent collection. Its collection of two and throe dimensional
art dated back to the early 1960s, and wore acquired by purchase,
award, gifts, donations, bequests, etc. The VAJ intended to
professionally evaluate the collection not only for insurance
purposes, but because some might no longer belong in the collec-
tion. As part of that policy, the VAJ would develop a form of
de -accessioning and acquisitioning policies so people who wanted
to donate would know the procedures. when the City no longer
wanted a work of art for whatever reason, there would be a formal,
recognized method by which to do so. The VAJ wanted to diversify
the art collection. There were sculptures, murals, water colors
and some oils, and they were looking towards adding tapestry,
fiber sculpture and fiberwork, frescoes, stained and colored
glass, bas-reliefs, fountains, and monuments. The process started
by requesting artists who lived or worked in Palo Alto to donate.
one of their works and donations were being received. Policy 2
established a Master Plan for parks and sites. Program 1 of
Policy 2 provided for reviewing the present inventory to identify
those parks ideally suited for works of art. Program 2 referred
to the Baylands Master Plan, and the YAJ requested Council direc-
tion to the planning units of the Byxbee Park and the Baylands
Master Plan to include the VAJ for a possible sculpture park. The
VAJ also asked to be Included on the planning of parks and advised
of pubic meetings. It worked with the Planning Department on the
Ash -Mini Park, worked well with City departments and requested
inclusion more often. Policy 3 would educate the public regarding
the role, activities and accomplishments of Palo Alto's Art in
Public Places programs and goals. There would be a concentrated
effort of the VAJ's money to prepare a brochure for use by the
Chamber of Commerce, and a slide sound show. Policy 4 was for
continued City funding, development and seeking additional funding
sources to support the Art in Public Places Program, The VAJ
received budget support from the Council and was grateful. Pro-
gram .2 of Policy 4 requested a one percent Art in Public Places
levy/guideline for all public and private construction. When the
mechanics of that program were developed, it would eliminate pri-
vate homes and residences and small construction projects under
500,000 square feet. The VAJ proposed that those developers mak-
ing an impact in Palo Alto contribute to the cultural aspect. Be
requested approval of the VAJ's Municipal Arts Plan.
Counci lrnember Bechtel commended the VAJ for its work. She asked
about the meaning of "de -accessioning."
Mr. Malone responded that it was terminology used in museums and
galleries. When something us not wanted, you "de -accession"
it --get rid of it.
Counci !member Bechtel asked what was meant by a sculpture park at
Byxbee Park and whether itwasa present dump area. -
Mr. Malone said any portion could be developed to a sculpture park
where the sculpture became the item for bringing the public and
tourists to the area. There was also the natural beauty of the
Baylands. It was a casual walk, part of the landscaping, but
designed for the use of large scale sculptures, fountains, and art
objects. .
Counci l member Klein asked what the YAJ had in mind with Program 3
under Policy 2 to include the VAJ in planning of parks, public
buildings, or study committees, etc. He understood it to mean
that a.:. new building would have an additional . step in the process,
and asked if his understanding was correct.
Mr. Malone said the VAJ was not looking for a review process, but
rather inclusion in' the discussion and design process. He re,
ferred to the Ash Mini Park in south Palo Alto, which was designed
for a specific piece of sculpture.
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Councilmember Klein asked how the VAJ got into the process, and
how much it would be involved.
Mr. Malone referred to Downtown Park North and said if the VAJ had
been part of the planning process, it would have had input to the
planning staff, and one of that park's uses could be appreciation
of art.
Vice Mayor Cobb asked what authority would be attached to the VAJ
i nvol yr ent.
Mr. Malone believed it would be direction from the Council that
when planning for an area to be used by the public, that the VAJ
be included as part of the make up of the study committee.
Vice Mayor Cobb clarified that the VAJ would not have the power to
"veto" a project.
Mr. Malone said no. The VAJ was not looking for power --it was
looking for input.
Vice Mayor Cobb referred to the one percent figure and asked if it
was an arbitrary figure.
Mr. Malone said one percent was what most municipalities used and
it worked. It could be one and one-half or one-half percent, and
the VAJ picked a number with which to start.
Director of Arts & Sciences Leon Kaplan said there were some two
percent cities which might also be interesting for the VAJ.
City Manager Bill Zaner said regarding the one percent Arts in
Public Places guideline, some issues might need to be reviewed.
They were talking about all public buildings, and the City might
not have the right to levy those types of fees on other jurisdic-
tions who built public buildings, and in some instances it might
constitute a special tax which might require going on the ballot
or doing something special. Unless Council wanted to take action
that evening, it was recommended that the one percent levy/guide-
line item be referred to a Council committee.
Councilmember Renzel believed the Baylands Sculpture Park was an
idea to be included in Program 3 in terms of input with respect to
planning of parks, but she understood they were talking about
major sculptures that might dominate their location. She was con-
cerned about sending a message with respect to the Baylands Master
Plan without having more detailed information about what was pro-
posed. The current policy was more or less a natural landscape
and simple passive use of the park, and the refuse area was the
only undevelope area. The first part of it to be mailable with-
in the near future would be close to the waters edge and not par-
ticularly a place where they would want man-made things to be
dominating.
Mr. Malone said they were not looking to converting the entire
8ayl ands into a sculpture park. 'A .portion, or resting areas might
be a site for a sculpture or a sculpture walk. They did not want
to dominate the natural beauty of the Baylands or the park when
developed* They appreciated how it could be, and there was not
that much land at the waters edge to waste. They proposed that in
the planning .of the . park, i f the VAJ was included in the early.
stages, perhaps a.portion, section or item might be art.
Councilmember Renzel said with respect to the scale described, the
refuse area appeared to be the only place where it could be accom-
modated. The first ,part of that to be available was the part
closest to the waters edge and it might be ten years before they.
even contemplated finishing the second part which would offer a
more sheltered, less ostentatious place for the art.
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Mr. Malone agreed. Art and sculpture did not have to doir1 note the
site. There was a piece in place in Greer Park, which was low to
the grass. A couple of years ago there was a piece in Mitchell
Park that was on a berm, which was unobtrusive until one stumbled
on it, and then it brightened the area. They were not looking for
40 foot monuments to dominate, and appreciated the Council's con-
cern for the beauty.
Councilmember Sutorius quoted Program 4 under Policy 2, "to ident-
ify a location for a 'fountain' and concentrate energy..." He
asked if the fountain was a water related piece of art.
Mr. Malone said yes.
Ionia MacNeil, 234 Ramona, was a member of the VAJ. Regarding YAJ
involvement in things like Byxbee Park or a design process early
on, she believed artists' involvement in public projects and parks
was a more subtle way of involvement than everyone was used to.
She believed artists wade subtle changes in ones perception of the
water or sound around them, and dealt with subtle visual changes
that made people more aware of their environment, rather than
overwhelmingly taking over the environment with an object. She
spoke of a piece in Seattle which was a series of tall, thin rods
which vibrated in the wind so when one was in the area there was a
soft humming sound going through the area and then it drifted in
and out as one moved into a different area. They were not talking
about overwhelming the environment, but rather artists who worked
with the sunshine, wind or water to enhance the understanding of
those things. She believed in terms of working with a building,
and what it ,i ght be by becoming involved in the design process,
so that instead of a wall being brick or concrete, it had a built-
in mural treatment from the beginning, designed into the process
to become an integral part of the building, rather than layered on
the top. That was the direction they saw the VAJ taking in the
beginning process of a park or a building structure.
Councilmember Bechtel supported the VAJ's policies, and believed
the recommendation was fairly generalized. If Council adopted it,
as some concern was raised about Byxbee Park, she. hoped the inter-
pretation would not be that it was totally black and white; that
some of the programs would be worked out; and that it was a gen-
eral guildeiine to be worked on over the next five to ten years.
Mr. Malone agreed.
Councilmember Bechtel clarified regarding VAJ involvement in pub-
lic buildings, that the VAJ wanted to be more involved at some
point. The alternative was to adopt the four policies, but the
specific programs could be subheadings and -not formally adopted by
Council. She believed the policies were broad enough and there
was room for movement and change.
MOTION: Coaacilamarber Bechtel routed* seconded by Witherspoon,
to approve the Nemicipal Arts Plea Pe11 aitir the exception of
Pregraar 2 of Peflcy 4 °Establish a •*I-._ ertei*t ` Lit is Public
Places 1 e,rlgp i de1 l ae for all public a*d: private construction. °
Mayor Levy assumed_ that approving the plan was analogous to
Council approval of the Comprehensive Plan, and that if Council
wanted to specifically implement .any of theprograms or policies
that were part of the plan, i t would take seperate action. By
approving the overall Plan, Council was not approving any specific
program or taking any specific action.
City Attorney Diane Lee said generally.. that was correct, but with
respect to the one percent Art . in Public Places levy/guideline,
the City Attorney's Office had not reviewed it and she suggested
that be accomplished before putting it in something as formal as a
ltan. The things usually put in plans were determined as being
egally possible and could be carried out in due course.
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Zoner said there were some items fisted in the Municipal Arts
Plan which, 1t adopted by Council that evening, staff would take
as instructions to carry out. For example, one of the programs
provided that the VAJ was to be included in the planning of parks,
public buildings, study committees, etc. Staff would take that as
Council instruction and would follow through. Other parts of the
plan simply urged the City to consider certain actions, which
would a1 ee be done, From staff's point of view, adoption of the
program, where policy was set 'forward in an adopted program, would
signal staff to carry it out to the best cef its ability.
AMENDMENT; Councilarember Bechtel moved, seconded by Klein, to
amend Program 3 under Policy 2 to state *Have the Y1 saaal Arts
Jury provide input into the planning of parks sad public build-
ings, etc.*
Councilmemher Bechtel believed Program 3 under Policy 2 was too
strong as pointed out by the City Manager.
Councilmember Fletcher believed the wording of the amendment would
do the trick. She was thinking of the manner in which the Palo
Alto Bicycle Advisory Committee (PABAC) was involved. It was not
a formal structure, but whenever there was a modification in the
traffic area, such as a new traffic light, etc., the staff con-
currently referred it to PABAC for input. She saw the VAJ refer-
rals being done in the same manner.
AMENDMENT PASSED by a vote of 8-1, Woolley voting *no.*
Councilmenber Klein was concerned about Program 2 under Policy 2,
possible modification of Baylands Master Plan. The City Manager
pointed out some items which, if passed, would be considered
action items for the staff. The motion was serious, and he did
not believe Program 2 under Policy 2 should receive Council
endorsement at that time because enough was not known.
AMENDMENT: Councilmember Klein moved, seconded by Bechtel, to
delete Program 2 'fader Policy 2 from the motion for the purposes
of referral to the Planning Commission and Policy and Procedures
Committee for consideration.
Council*ember Woolley asked how the referral to the Planning
Commission and P&P Committee would work. She did not imagine that
the VAJ had a concrete plan in mind and it was hard to ref,n. it to
someone. She asked if it was possible to construe that inclusion
in the planning process, which Program 3 under Policy 2 gave the
YAJ, would be sufficient to be included in the planning process
also for Byxbee Park.
Mr. Zaner believed it would. With Program 3, there was no ques-
tion that the VAJ would be included in the discussion of the
Byxbee Park as it developed. He believed Program 2 was designed
to single out the particular park and talk about it specifically
with regard to permanent works of art. Regarding referral, the
matter would first be referred to the Planning Commission for its
consideration and then straight to the :P&P Co mmlttee for consid-
eration.
Councllmeaber Woolley said she preferred to see the policy elimi-
nated rather than referred and taken up by the YAJ Under Program 3
in some more advisory way --not necessarily with Council approval
at that time.
Counci lmeober Renzel concurred with Counci lmember Wo01 Yey She
believed VAJ input was welcomed under Program 3 as modified, and
it was unclear, even with :the words *consider ":modifying,*.who was
supposed to consider. She preferred to take the input with regard
to specific concepts that might be incorporated _ as various ' parts
of the perks were planned, but to not have a specific endorsement
of something without knowing exactly what it entailed.
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Councilmember Klein said Councilmembers Woolley and Renzel per-
suaded him that their approach was better.
AMENDMENT WITHDRAWN
AMENDMENT: Councilmember Klein moved, seconded by Bechtel, to
delete Program 2 of Policy 2.
Councilmember Fletcher said her interpretation of Program 2 was
that the VAJ hoped Council would endorse the concept of an arts
park whether it be the Baylands or wherever. She asked if Program
3 as presently worded would accomplish that goal.
Mr: Malone said yes. With Program 3, the VAJ would be included
and could probably use its force of persuasion to try to get the
area or a portion of it to be an art park.
AMENDMENT PASSED unmoimeusiy.
Councilmember Woolley said regarding Program 2 of Policy 4, to
establish a .one percent Art in Public Places levy/guideline for
all public and private construction, that she was glad to see the
idea included in the plan. It came out of the Public Arts Forum
which was held by the VAJ last October, when it was learned that
Berkeley was considering such a plan and Mountain View had already
put such a plan into practice:. She believed Palo Alto should also
work along that line. She suggested changing the wording to see
if Council was willing to include it in the Municipal Arts Plan.
AMENDMENT: Councilmember Woolley moved, seconded by Levy, to
change the wording of Program 2 of Policy 4 to read Explore a
percent far Art in Public Pisces'' levy/guideline.
Mayor Levy asked staff whether Council was premature in consider-
ing the entire subject.
Mr. 'Laver did not believe there was any problem with the wording
to explore a percent as long as it was clear that Council was not
establishing the principle that it would have some percent pro-
gram. There were some legal and practical questions to be checked
out first.
Councilmember Sutorius preferred the one percent issue either be
referred as originally proposed or modified. The Downtown Study
might evolve considering participation by property owners in the
design process and the layout of new construction that would
incorporate art .in .its broadest sense. Therefore, he did not
believe Council should explore just a percent guideline or levy as
suggested, but rather means by which to establish an Art in Public
Places guideline and a participation process for all public and
private construction which allowed for exploration of the levy
concept, but did not limit exploration to just that levy concepts
He bet ieved that when the levy concept was explored, it had to
consider what other "levies" already existed --for instance the
housing mitigation processes, and he did not want to exclude some
creative ideas that aright come forward through the Downtown
Study.
AMENDMENT REWORDED TO READ: Explore mechanisms for acwi evi eo as
Art in Pob1ic Places levy/gs1deliaefor all public or private con-
structions.*
Councilmember Renzel clarified that the amendment contained no
percent language. It was vague, but provided the opening to look
at the subject.
Councilmember Fletcher said Concord recently adopted a one percent
levy on new construction for traffic mitigations, and she sent
away for the particular guideline. The subject was not unheard
of and it looked as if it did not need a two-thirds vote of the
public.
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Mayor Levy was satisfied with the revised language because he
believed Palo Alto should get to the consideration of a one per-
cent guideline or some other percentage guideline or some other
mechanism. One percent was in effect in many communities through-
out the country and had been for some years such, that Palo Alto
could see by looking at their history what the effect had been
both on those communities and on the individual developers within
those communities. He understood that the effect was positive on.
both and that the developers generally were willing to set aside
one percent for art in public places because it enhanced the value
of their property by more than their contribution.
AMENDMENT PASSED uaaaimomsly.
Councilmember Renzel believed the VAJ did an outstanding job in
putting together the policies and programs despite her concerns.
It was nice to see the VAJ taking such an active role and she
appreciated it.
MOTION AS AMENDED PASSED unanimously.
Mayor Levy expressed his appreciation to the members of the Visual
Arts Jury and believed the City took a significant step forward
that evening.
ITEM #8-A (OLD ITEM #1), AGREEMENT FOR SALE OF SURPLUS CAPACITY
AND E la
I JEC ) WI 3-1)
Director of Utilities Richard Young said the resolution form
attached to the staff report was that of Northern California Power
Agency (NCPA) and was modified appropriately by the City's legal
staff. It required ghat the Mayor and City Manager be inserted in
the blanks and the City of Palo Alto be inserted in the last
blank
Councilmember Renzel removed the item from the Consent Calendar
because she was concerned about how it affected the City's ability
to sell any surplus power. It appeared that if the City had about
45 - megawatts, and the Redding capacity was around 22 or '23 mega-
watts, that had to be sold before Palo Alto could sell, which
seemed like an additional impediment to Palo Alto being able to
sell power. She asked why It was -not brought up as part of the
di scussi on ' 1 arst week and what it might mean for Palo Al to' s• abi l--
i ty to sell.
Mr. Young said the situation with Redding boiled down to where
they had approximately 2A or 21 arrgewatts which was distributed to
four utilities within NCPA. Those four utilities, three of which
spoke up prior to the last go rdund, said they needed and wanted
more of that capacity. Redding sari d that unless it could dis-
tribute all the power within 1CPA, it wanted . to keep it all to-
gether in one package for an outside sale. The time lines got
down to the end and Santa Clara picked up the last piece.e Palo
Alto spoke with all four of the utilities send asked at.out their
intentions and the feedback was that they were principally
interested in keeping the power, but wanted the protection. for
themselves i f there came a time where they believed it wdu1 d be
Appropriate .to lay it off for some period of time.- .Basically, it
went _to a negotiated agreement where all the members _agre d that
if they desired to sell, they wool d have a one- time first right of
refusal to have that sale be incltided for themselves. That
obviously placed an impediment In Palo Alto's way i f there should
only be that much of -a sale. Staff bel#eved there, were enough'
utilities out there who showed an, i nterest who, if anything, would
ask for more than what was avaliable.
Councilmember Renzel said a one-time_ chance was provided, and she
asked if that meant if they had eight megawatts of Redding power,
and they were offered a chance to sell four, they could still sell
the other four. She clarified there was more than a one -tire
chance, but if part was refused, the opportunity was lost.
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Mr. Young said that was correct. Once a ;ale was refused, they
were out of .the running in tarns of the "fir=st -ire -line" type
provision.
Councilmember Renzel said contracts normally placed on the Consent
Calendar represented policy decisions`that were already made by
the Council. In the subject case, a policy decision was not yet
made by the Council, and she was concerned about having something
like that on the Consent Calendar before the policy discussion and
decision took place, .especially when they were talking about $150
million.
Councilmember Bechtel presumed the agreement was between NCPA and
its members, which included Palo Alto. If Palo Alto did not sign
the agreement, she asked what happened.
Mr. Bennetti said the third phase agreement which Palo Alto exe-
cuted concerning Calaveras allowed NCPA to approve a sale of
another project participant's share prior to the _issuance of
bonds, but thee third phase agreement did not allow the first-time
refusal of the Redding share from the other project participants.
If Palo Alto did not approve the agreement, there would not be the
right of first refusal, and what the other agencies would do was
unknown. It was unknown whether Redding's share would be taken by
the other project participants who at least outwardly advised that
they relied on the right of first refusal in order to pick up the
excess power.
Councilmember Bechtel said essentially, the participation made it
more difficult for Palo Alto to sell its excess portion. She
asked if it would help if Palo Alto did not participate.
Mr. Young said it would help in terms of the difficultly factor.
The matter was discussed by the Commission and it was • decided that
all members would agree to allow the four to have the protection
for whatever the benefit might be to them. If Palo Alto did not
participate in the particular aspect, he believed it could go all
the way to the point of someone backing out of their commitment to
take on the Redding share.
Councilmember Fletcher clarified that the shares were permanent
and it had nothing to do with seasonal demands.
Mr. Young said the sale was designed around permanent sale, and
the conditions that arose for such an offering had to be accepted
by the parties who proposed to have the first: right of refusal.
They had to agree to the terms and conditions proposed, and if it
was a permanent sale, that was what had to be agreed to,
Vice Mayor Cobb believed the step was taken because of the time
lines involved, particularly the NCPA management changes forced
onto the Calaveras situation. He clarified that if Santa Clara
took on five more megawatts than they originally scheduled* and
found they only needed four, it would give them the option of
selling off ore of the megawatts, He believed the reason for the
first right of refusal: was because, given the time lines, they
were not given a chance to analyze the full impact. He recalled
that all four cities were willing takers of additional power, but
were not absolutely sure that they took on exactly the right
amount.
Mr. Young believed that was correct* It was a matter of whether
to sell small slices to some people and still have a small slice
le.t. or whether to keep it all together. It went to the final
time pressure and the agreement was made that Santa Clara, partic-
ularly, would step up and take an additional amount, which was
without time to analyze the overall situation. A statement . was
made by members of the Santa Clara staff that it was a valuable
project to them and represented an excellent future. They were.
happy to get whatever they could in terms of the final analysis
and putt3 n+g the dollars down on _ paper.
Council riewber Sutorius said he spoke that day with the Director of
the Bureau of Electricity of the City of Alameda, who was also a
member of the NCPA Commission, who saw no likelihood, based on
their forecast, that they would be exercising the right. He
believed it was an appropriate protection and was a party to the
revision d He emphasized that he saw no situation as they fore-
casted their requirements that would cause them to sell off and
would not be surprised if they were among a line of people who
were purchasing in the future.
Councllmember f;echtel clarified that Palo Alto did not get the
same type of assurance when it increased its share from 10 percent
to 22 percent.
Mr. Young said that was correct.
John Shaefer, 2140 Harvard, opposed the resolution because he saw
no benefit for Palo Alto, and believed there was much to lose.
Sale or transfer of Calaveras power was essential if Palo Alto's
participation was not to turn into a financial disaster. Esti-
mates of the size of the financial disaster were in excess of
about $40 million. There were two ways to escape the financial
disaster. First, sell the output from the project capacity and
energy as buyers might be found in the future after the project
was underway. He believed that option was already foreclosed by
the fact that the cost of the power from Calaveras was well in
excess of the costs of power from any other source in California.
He believed the cost of production for PG&E in 1984 was 3.5 cents
per kilowatt hour, and the cost from Calaveras would be about 13
cents per kilowatt' hour. The other option was to sell off or
transfer shares of the Calaveras project. The proposed resolution
would foreclose that option by placing Palo Alto behind those
other four cities who had what was once Redding's share. He
believed if the project was as good as those who supported it said
it was, there was no need to pass the resolution. He believed the
resolution was clearly against the best interests of the City of
Palo Alto.
MOTION: Vice Mayor Cobb mewed, seconded by Witherspoon, to
adopt the resolution approving and authorizing execution of the
Agreement for Sale of Surplus Capacity and Energy of the North
Fork Stan i sl aos River Kydroel ectrf c Development Project between
the Northern California Power Agency end the City of Palo Alto.
AGREEMENT FOR SALE OF SURPLUS CAPACITY AND
ENERGY OF THE NORTH FORK STANISLAUS RIPER
HYDROELECTRIC DEVELOPMENT PROJECT
RESOLUTION 6358 entitled "RESOLUTION OF THE COUNCIL OF
THE CITY OF PALO ALTO APPROVING THE AGREEMENT FOR SALE
OF SURPLUS CAPACITY AND ENERGY OF THE NORTH FORK
STANISLAUS RIVER NYDROELECTRIC DEVELOPMENT PROJECT'
Vice Mayor Cobb said from his conversations with those involved,
it was clear that those people not only wanted the shares, they
intended to keep them and perhaps have them grow in the future.
He believed Palo Alto would be able to sell the project off, which
was the focus of the discussions over the past few weeks. All of
the critical anaaly4es stopped at the year 2005, which was also
when the City's _ NAPA allocation was up for renewal . Among the
things Palo Alto had to think about in the future was whether the
City would get the same allocation at the same favorable price
The answer was probably no on both points. Another pointwas what
would happen to PG&E's rate base when it started loading in the
cost of Diablo Canyon. He believed the rate base would go up
considerably. There were many factors to consider,_ and they. were
not juste looking at the next 15 years, but at 30 or 50 yeirs in
the future. In the long run, the project had enormous benefits.
He agreed it must be sold off in the short run and . believed it
could be done.
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3/11/85
Council member Renzel said if she were on the Alameda City Council
and represented them at NCPA, she would take advantage of the
opportunity for a larger participation with a good hedge, and
would not say that hedge was not important in her willingness to
have the extra share. In .that respect, she did not believe Palo
Alto could necessarily rely on the statements made by the other
jurisdictions which were getting to carry a little extra capacity
with a priority right to get rid of it over the City of Palo Alto,
among others, who took a share twice as large as what its staff
recommended. She believed the numbers given to the Council in
recent weeks were serious, and to further erode whatever position
the City might hold with respect to the project was not a sensible
thing to do. It was a gamble when talking about what would happen
past the year 2005, and all the projections within the interim
period were not particularly good and whatever losses were in-
curred could be significant and would be spread over Palo Al to' s
ratepayers. She was not prepared to give the other communities
the chance to have the extra bonus of getting more or less a free
ride on their surplus capacity.
Council member Klein supported , the motion. He believed the atti-
tude expressed by the critics of the motion exhibited a "dog in a
manger" attitude. NCPA and other activities where Palo Al to was a
participant, a member of a team, had many negotiations to be car-
ried out and there were al ways trade-offs. He believed Pal o
Alto's staff, i n carrying out the Council's general direction to
be a participant in the project, made an appropriate trade-off.
It was necessary, .in their judgment in order to bring the project
forward as an NCPA, tc have Redding' s share bought out. Had it
been bought up within the group, a right of first sale was pro-
posed and granted to the four cities, which he believed was appro-
priate. He believed the attack on the motion was an adoption of
the critique of one citizen, a new member of the City staff, and
reflected a buyer's remorse type attitude which he believed was
inappropriate without a lot of additional study. They should
remember the analysf s of Pal o Al to' s staff, the staff of other
cities, and the staff of NCPA indicated it was a viable project,
not only for Palo Alto but for others as well . Me suggested the
control of energy from that type of resource, if you looked at it
in' the long run as must be done with energy projects, was that
those who had the good fortune to have ownership rights to hydro-
electric projects made out extremely well economically. Regarding
gambling, if Palo Alto did not assure, in the long term, a supply
of electric power to the City, they were gambling with its future
in a way that could not be made up, except at extraordinary costs
from sources such as Diablo Canyon. Rather than adopt the atti --
tude of unfair sniping , he believed Council should endorse the
recommendation and move forward. It was appropriate for the
Council to pass the motion.
Counc11member Bechtel said when she asked staff what would happen
if Council did not pass the resolution, she did not hear any con-
cerrs that the whole project would fall apart, or that Palo Alto
would endanger its relationship with NCPA participants. She would
not want to do that because she hoped the project would turn out
as optimistically as some of her colleagues believed it might.
She believed adopting the resolution would be to Alameda,
Rosev111 e, Heal dsburg, and Santa Clara' s benefit, but she did not
see It :es being a benefit necessarily for Palo Alto, She believed
it was important to work as a tear, but on the other hand, i t was
also important to protect the interests of the citizens of Palo
Alto. -She would riot support the motion.
Councilmearber Witherspoon agreed with Vice Mayor Cobb and Council -
member Klein. She pointed out that when Palo Alto opted to take
the chance to go with the large Cal averas Project, the only other
renewal source available was nuclear power, which was politically
unacceptable in ' Palo Al to, or wind or geothermal and they were
prohibitably expensive. Wind, especially, seemed technologically
unfeasjbl e. What she found attractive about. Cal averas, even
5 5 6 I
3/11/R5
though the price seemed high, was they knew the price. They would
know the. price almost fmmediately, and they did not know what the
price of other power would be past 2005-- which was the gamble.
She believed the City must plan to have a mix of power of all
different sources and prices past the year 2005. She believed
peopl e woul d beg to buy the power between now and 2005 and Pal o
Alto might decide it did not need to sell it.
Mr. Lefler said staff tried not to say that 'CPA or another member
city might withdraw from the project should the resolution not
pass because it seemed somewhat unfair to say what another juris-
diction might do. If the Palo Alto Council , or any City Counc f 1 ,
decided not to pass the agreement, staffs of many of the cities
indicated they might withdraw from the Redding agreement. Redding
indicated it would take whatever action was necessary which might
cause considerable delay on the project, which could affect fi nan-
cing and u1 timately the project cost. itsel f, or it might resul t in
the project not moving ahead. Many Council members spoke to the
fact that the project was a long - term energy asset for the City of
Palo Alto. They were not talking about a 20 -year project; hydro
projects went for 50 years and some went for 100 years. People
who sat in the Council Chambers _ in 50 years would thank their
predecessors for snaking the WAPA decision. It was a good project
and made a lot of sense. Staff believed they should move ahead.
When working with 'CPA, there were 15 other cities, and you tried
to get the best deal possible and work out the best possible
arrangements. You did not always get everything you wanted, but
you got a project everyone could live with. That was. the case
with Calaveras, and it was important to move ahead.
Vice Mayor Cobb said steps were taken quickly to accommodate
Redding because the alternative was to have an unwilling partner
in the project which could affect the financing. If the cost of
financing went up, it impacted Palo Alto and the other partici-
pati ng cities. With regard to the sales, if Palo Alto went out
and had its first sale available in six months, set up some terms
and conditions fo" that sal e and Santa Cl ara took a look at those
terms and conditions and said it was not interested, they essen-
tially passed on their opportunity. Palo Alto could go out, find
a buyer, set up some terms and conditions, and ask a participant
with the Redding share, if they wanted to buy in on those terms,
and if their answer was no, then Palo Alto proceed with the sale.
Councilmember Sutorius said Palo Alto was currently resisting a
change in procedure within NCPA because of its potential of reduc-
ing its WAPA allocation. The City's allocation would not be
reduced by much, but because the change opened up a subject that
might portend further change, it resisted. Fortunately, within
the 'CPA organization, Palo Alto could continue to resist and
explore alternatives that were :More satisfactory. He believed it
indicated how sister organizations worked with the City to allow
it to continue to have latitude to explore something it believed
was important without jeopardizing the organization. Further, the
questions of municipal preference in re1.icensing and market pric-
ing versus cost pricing were issues which would have . a dramatic
effect on the energy resource availability and/or its costs.
There was at least one bill in the House of Representatives .al-
ready introduced that _r ul d end municipal preference in rel icens-
ing; one was about to be introduced in the Senate; and in the last
session of Congress, there were similar bi11 s with much support in
terms of cosponsors. He waS convinced that municipal preference
and cost pricing as a duo would not survive in its present form.
From the standpoint of impacts on Palo Alto, he hoped the market.
rate pricing would not be invoked because that effect would be
more dramatic on Palo Alto and other municipalities and . therefore
the ratepayers and taxpayers. He believed if they were to fore-
ca#t out, they world see that having the resource in a percentage
close to what the City now had would be something: that people in
the future would :look at and wonder_ how Palo Alto was fortunate
enough to acquire it. He supported the motion
5 5 6 2
3/11/85
Councilmember Renzel said Turlock Irrigation District and all of
the other parties who expressed interest in acquiring Palo Alto's
share of the project had absolutely nothing to lose by expressing
that interest. For them, Palo Alto took all the risks, and if
they did not like the price, they did not have to buy it. They
wanted to see the project get built because ,it was one more alter-
native for them, but they were not taking the risks. Palo Alto
stood to: lose a lot and Palo Alto's industrial base was heavily
into power. Ten users' used 50 percent of the Gity's electricity,
and they should be concerned about what the price would be and
chose their locations because of cheap pe'wer. - She was not sure
that Palo Alto was guaranteed to have cheap power when everything
was said and done. With respect to the staff information, Council
Was told in 1982 that it should only go into the project at a ten
percent level. Staff recognized there were risks inherent in
every new source of power and that it should not put all its eggs
in one basket. There was no dispute with respect to the facts
presented last week. There was some dispute with respect to some
of the assumptions and there was some dispute with respect to
whether it should go to the Council, but there was no dispute with
respect to the projected prices, costs, etc. that came out in the
report.
Mr. Zaner said the presentation made last week was made under Oral
Communications, which normally did not allow for a response.
Staff spoke to the matter briefly at the end of the agenda, and he
agreed that staff woal d analyze the letter submitted by Mr.
Shaefer. Staff had not had an opportunity to respond t.o that
letter and he had difficulty when Councilmembers kept reminding
him that staff had not responded to the allegations of last week.
That analysis would be in Council's hands shortly, and it would
also be covered in the scheduled work session,
MOTION PASSED by a vete of 6-3, Bechtel, Fletcher, Reezel voting
moo."
ITEM #9. PARK BOULEVARD/PARK AVENUE TRAFFIC CIRCLE (PLA 4-1-7)
(CMR:215: rai
Bob Moss, 4010 Orme, suggested the Council ask staff to combine
the Park Boulevard/Park Avenue Traffic Circle with the Visual Arts
Jury re Art in Public Places Program under Policy 2, Program I, 3
and 4 to look at ehether they would be appropriate for the traffic
circle. A 40 -foot diameter circle in that location might be
amenable to a small piece of sculpture to brighten up th 4 area.
It was an entrance to a neighborhood and might make it more cheer-
ful. He believed the neighborhood would appreciate the added
attention since they fel t kind of imposed upon for several years.
With regard to the consul tant contract, he was :disturbed to see
there would be a $10,000 fee for a project which would have a
total cost of somewhere between $32,000 and $39,000. The City had
engineers who did cost estimating on a number of projects before
they went out to bid so obviously staff could do it. For compari-
son, during the Te.raian Working Group deliberations, Tad Coty, an
architect, was hired and prepared 18 different designs for the
site including three dimensional models, sketches, and schematics,
and his total fee for all of it, including attendance at a number
of .Terman Working Group, Council and Planning Commission meetings
was $10,000. That was a few years ago, but the scope of Mr.
Cody' s services was so far in excess of anything he could conceive
of, it raised the issue in his mind.
Audrey Pout ter, 1731 Park Boulevard, supported the traffic circle
size to remain unchanged on Park Boulevard. Speeding was a con-
stant problem, and the circle soul d discourage through traffic and
slow drivers down.
David Schro®, 302 College Avenue, thanked the Council for imple-
menting the traffic circle. He believed._ the various proposed
designs were big enough to justi fy -a consul tant study to see
5 5 6 3
3/11/85
whether something other than a straight traffic circle would best
serve the neighborhood. When he thought about how much pavement
was out there and how much might conceivably be landscaped and
used to improve the appearance of that piece of Palo Alto, he
figured it was just about the size of a single family p-1 lot.
That left an opportunity to substantially improve the appearance
of that part of the neighborhood and to create the kind of visual
disincentive to drivers who might otherwise disregard the neigh-
borhood character of the street which was sought for a long time.
Councilmember Woolley opposed execution of the contract at -;that
time. She realized that Council approved the project back in
September, 1983, but subsequently, Council asked staff to include
traffic diverters in the plan, which formerly was only a speed
reduction plan, and staff was still evaluating what to do about
the traffic diverters. She believed until that decision was in,
they were putting the cart before the horse. By partially closing
ParI Boulevard, the traffic was cut from approximately 2,900 cars
per day to 1,400. She observed that neither the number of cars
nor the speed of the cars were anywhere near the problem they were
when Park Boulevard was fully open. She used Park Boulevard in
the morning and at noon, and sometimes she got almost the whole
length without meeting a cur. At that point, there were not that
many cars on Park Boulevard. It would cost $11,000, which was not
a large sum of money in the City's budget, but she believed it was
possible that the City might decide not to spend it at all. She
understood from staff that the evaluation of the present barrier
plan was set for the Council agenda of May 20, which was about a
two -month delay. All that would happen by delaying the item for
two months was that staff would have to renegotiate the contract
with the designer, but the consultant process was completed.
NOTION TO CONTINUE: Councilmember Woolley moved, seconded by
Witherspoon, that the authorization of the agreement for the
design of the park Boulevard truffle circle be continued until
Council determines whether Park Boulevard world be fully open or
partially open.
Councilmember Renzel was opposed to the continuance` When the
decision to include a traffic island was made, it was done in con-
junction with, and independent of, the results of the traffic
diversion, and was intended to tell people entering the neighbor-
hood that it was a residential neighborhood. It was also to
change the character of the traffic that went through there. She
believed it was a good idea, would enhance the neighborhood and
would help with the traffic problems.
Councilmember Bechtel opposed the continuance. Council had the
same discussion six months to one year ago, when it discussed the
various trial plans. It was decided that no matter what, the
traffic island would be permanent and staff was instructed to
return with a permanent plan. She was concerned about why it
would cost so much for a design project. Usually a landscape
architect received about ten percent of the total cost, and in the
subject case it was about 25 to 30 percent,
Councilmember Fletcher asked for clarification about whether speed
had decreased as a result of the initial traffic barrier.
Assistant Traffic Engineer Carl Stoffel said speed on that part of
Park Boulevard was not ,measured, but it was not expected to
change. It was expected that the volume of traffic would go down,
and the incidence of speeding would decrease.
Councilmember Fletcher used the route frequently, and saw cars
come through from El Camino at Park Avenue and fishtail around the
curb and then have to ' regain . control ,after having negotiated the
curve, Anything the City did to slowdown the traffic would bene-
fit the neighborhood and general safety. She was also concerned
about the cost of the consultant contract and asked staff to
responds
5 5-54
3/11/85
Stoffel had limited knowledge of the public works aspect of
the contract, but understood that in small contracts, the design
fee was usually a higher proportion of the entire project as com-
pared to a larger project where it might be the smaller percentage
range mentioned by Councilmember Bechtel. Staff obtained three
proposals for the project and they were all roughly the same.
Vice Mayor Cobb bei feved the traffic circle was independent of the
other barrier measures that might not be impl emented.
Mr. Stoffel said that was correct.
Councilmenber Klein appreciated that the project was regarded as a
stand-alone, and fully expected to ul timately support it. He sup-
ported the motion to continue since they were only talking about a
two -month period. So much time was spent considering Evergreen
Park, and taking one 1 ast shot at reviewing the whole thing to-
gether appealed to him to ensure they were putting together the
correct package: Mr. Overway was now on board, and while he did
not know whether to expect a magic solution, he wanted to give him
a chance without having any prior constraints on his visions He
shared the concerns about the costs, and would support the
motion.
Counci imember Witherspoon supported the traffic circle, but if
Council decided to make the traffic barriers or some combination
thereof permanent, that would be when to put the entire design of
the barrier and circle out to bid and perhaps get a better price
at least in the design aspect. She asked if that was possible.
Mr. Stoffel did not know.
Mayor Levy supported the motion to continue because • he agreed that
Council should look at the total Evergreen Park Plan as one entity
and coordinate the design at that time.
MOTION TO CONTINUE PASSED by a vote of 5-4, Bechtel, Fletcher,
Cobb, Refuel vetinq 'nes"
ITEM f10, REQUEST FOR SUPPORT - CALIFORNIANS FOR BETTER
TtANSPORTATIOI( (PRE 2) (CAR:1
City Manager Bill Zaner said Council expressed its interest in
infrastructure projects, especially in streets and highways. • The
City now spent about $800,000 to $900,000 a year in gas tax funds
which was not nearly adequate to keep up with the backlog in
streets. They talked about the need ;for a cooperative effort on
the part of business, government, and industry to deal with the
infrastructure problem, especially the streets and highways prob-
lem, and the organization, Californians for Better Transportation,
consisted of just that group. Companies like Hewlett-Packard,
TRW, and public organizations 1 ike the League of California
Cities, County Transportation Agency, the the County Supervisors
Association all joined the effort to try and bring the matter to
the public's attention in order to obtain adequate funds to do
highway projects. He recommended that Palo Alto join in the
effort and that Council lend its support to the work the organiza-
tion was attempting to do. 5g 290, a bill by Senator Foran was
having some difficultly and he received a call from the League
indicating that all was not lost. They were trying to revive it,
and it appeared to have some possibility of making it thi'ough..
They were working with the Governor's staff to see if it might be
worked out. He spoke with State Senator Morgan to see if the
issue might proceed with a favorable vote from her when it went
before the Committee on parch 19, and she was looking at the
issue. He provided her with some data with respect to Palo Alto.
Californians for Better Transportation was working on SB 290,
along with the League and other organizations.. Palo Alto would
benefit from it to the extent .of approximately another $500,000
each year for gas tax and it was worthwhile to support it.
5 5 6 5
3/11/85
Councilmember Fletcher urged that no diction be taken. The group
was primarily responsible for drafting SB 290 on which the City
Council took no position. Senator I oran sponsored the bill in the
California legislature and said it was primarily to permit
California to claim the interstate highway funds from the federal
government. With the current level of tax on gasoline, the state
had insufficient funds to claim all that was authorized from the
federal government for freeways past the year 1987. Originally,
the group wanted to increase the highways in the state. The par-
ticular letter addressed to the city managers stressed what was
attractive to the cities, and she believed the letters that went
to .the construction industry stressed the freeway aspect. Among
the membership roster Was AAA in southern California, many asphalt
and cement companies, five oil companies eager to sell more gaso-
line, construction companies, etc. She saw that the League of
California Cities was persuaded to join, but it was not examined
in the transportation committee on which she served. Evidently, a
letter stressing the infrastructure was also sent to the
California League and was adopted by the board without much exami-
nation into the background. She nad trouble supporting the group
without any bylews, statement of goals or objectives. If Council
supported the .particular group, and :she agreed it was a small
sum, she would return with a request to authorize support for a
new group being formed called 'the California Transit League, which
promoted the development and use of al ternatives to the, private
automobile to establish a more equitable balance between highway
and transit funding along with various.. other goals. The objec-
tives were far more in keeping with the objectives as listed in
Palo Alto's Comprehensive Plan. She would al so return with a
request that Council support a group already in existence called
Bicyclists for California which worked to promote support for
bicycle legislation in the state legislature.
Councilmember Renzel did not see enough information to know exact-
ly what point of view the organization represented. Words were
mumbled about public transit, but nothing was said about where
they stood with respect to it. They said they were a nonprofit,
tax exempt corporation, and not a lobbyist, yet their- object
seemed to be lobby. She had trouble understanding what Council
would be joining, she was not prepared to do so.
NO ACTION TAKEN
ITEM #10-A (OLD ITEM #2 ), ADDENDUM TO BAS4C AGREEMENT BETWEEN THE
f b
CDMSTgOCTION AND MAI _ 1' (UTI 7-4)
(Ca: 21 ii b'Y
Councilmember Renzel said in reading the report, she understood
why the City was obliged to make some capacity expansion con-
sidering the present situation. As the lead agency for the plant
for many cities, if those cities began to exceed their capacity,
she asked whether Palo Alto was obliged to crake expansions which
those cities were obliged to pay for or whether Palo Alto could
say if they wanted more capacity. they should build it themselves
somewhere else.
Assistant Director of Utilities Operations Stephen Hayashi re-
ferred Council to Exhibit "8s" In 1968 when Palo Alto entered
into the basic agreement with the cities of Mountain View and Los
Altos, the original design cal-led for a build -out capacity', total
treatment capacity at the plant, of 53 million gallons per day.
At that time, the intent- of . Los Altos and Mountain. Y.iew was to
purchase~ six million gallons per day and 24 million gallons -per
day respectively. They indicated they wanted to - reserve that
right for that amount of capacity at the treatment plant.
Councilmember Renzel looked at Exhibit "B" and had trouble fol-
lowing what was meant. She clarified by that agreement, the City
was obliged to accommodate them up to that capacity.
5 5 6 6
3/11/85
Mr. Hayashi believed that was correct.
Councilmember Renzel said Palo Alto was currently going up to 38
million gallons per day (mgd) which meant they almost had to
double the current capacity if the City was also required to meet
the growth needs of the other communities.
Mr. Hayashi said that was correct.
Counciimember Renzel asked if the particular expansion to 38 mgd
would be sutject to site and design review or whether it was part
of a previous approval
Mr. Hayashi said the site and design review process would occur
for the review of the physical structures at the facilities.
After the design contract was awarded, staff woul d proceed with
the design consultant and go through the normal site and design
review process which would include an environmental impact assess-
ment for the site.
Councilmenaber. Renzel was not sure when the initial contract was
entered into, that the City had the environmental impact proce-
dures, and she asked if there were any provisions for reassessing
environmental impacts of major expansions when they were contrac-
tual l.y obl igated in years before.
City Attorney Diane Lee said the environmental impact process was
available to review what was being added to the pl ant currently.
It would not go back and look at what was previously approved, but
to the extent there were cumulative impacts of what was being
done, it would review that. The impact report itself would only
be addressed to whatever square footage was being added and what-
ever pl acereent there was of the new facility.
Councilmember Renzel asked what would happen if they went to build
out of 53 mgd, and any of those communities began to exceed their
capacity.
Director of Utilities Richard Young believed the Regional Water
Quality Control Board (RWQCB) had a clear set of l isai tations about
how far one could go before capacity and future plans must be
reconsidered. That was experienced and led to the present expan-
sion. When one got to 75 percent of the use, then the projected
plan was necessary.
Councilmember Renzel clarified the City would have to continue
doing that until it reached 53 mgd. When the City reached that
point, she asked if it was obligated to continue expanding to meet
the capacity needs of other communities that were approving high-
rise buildings.
Ms. Lee said once the contractual capacity was reached, then the
City was no longer obligated for other jurisdictions --it would
only be obligated to itself. The RWQCB would require the other
two .jurisdictions to make their plants and provide for, their own
excess.
Councilmember Renzel said presumably when the City reached 75 per-
cent of capacity\\of the 53 mgd, they would stop and. assess where
they were before they got past it.
Ms. Lee said that was correct.
Couhcilmember Sutorius asked regarding Section 1(a) of the con-
tract, if it was the City's interfund process being described.
Mr. Hayashi said that was correct.
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Councilmember Sutori us asked for c1 ari ficetion of paragraph 34.
He asked how they proceeded through the, steps of determining
whether to issue and sell revenue bonds for the full amount and
whether the 90 -day period was after the financing was secured . or
after the decision was made to go after that type of financing.
Senior Assistant City Attorney Anthony Bennetti said it was only
when the decision was made to use revenue bonds. Some other
source of financing might be used, but if revenue bonds were used,
at some point before the bonds were issued, the other jurisdic-
tions would be allowed a 90 -day opportunity to utilize Palo Alto' s
method of financing.
Councilmember Sutori us clarified that it was a window from the
time that Palo Alto made its decision, but prior to going after
it. The other jurisdictions' responses within that 90 -day period
rout d determine the sizing of the issue.
Mr. Bennetti said Palo Alto would build not only its share, but if
the other jurisdictions wanted revenue bonds issued for them, the
City would issue bonds for any amount up to what they wanted.
Councilmember Renzel assumed that since the staff worked with the
staffs of the other communities, they were apprised of the caste
to them of future capacity increases and the ramifications of
their continued demand for capacity in terms of dollars.
Mr. Hayeshi said they were. In dealing with the staffs of the
other agencies, based on Mountain View's General Plan, Palo Alto' s
Comprehensive Pl an and Los Altos' Major P1 an, Pal o Al to looked at
the present expansion to meet the build out condition for all the
agencies in the area. The next expansion to occur would mean a
modular expansion, but at that time, if a small increment of capa-
city was added for any one agency, then the unit cost would be
very high so each agency looked critically at their future needs.
From all indications at the staff level , it should be the build
out condition for the service area.
Councilmember Renzel was nervous at being obliged to make a 40
percent increase over what the City was presently doing. If
everyone agreed that it was apt to be the bui 1 de out condition, she
asked if, either in the course of the proposed agreement or a
subsequent one, it was possible to try and modify Exhibit "B" and
reach agreement with respect to capacities beyond 40 mgd. It
appeared there was a point at which one had to add an increment,
but everything would have to be duplicated and then it got expen-
sive and everyone would end lip having to pay for it.
Mr. Hayashi said the basic agreement was written in such a way
that when the expansion was made, those agencies that request ed
the capacity would have to pay for it. For example, beyond the 38
mgd capacity, which was being proposed, if Palo Alto requested an
additional one mgd, the likelihood of just adding one mgd capacity
to the plant was infeasible so something close to a Hem mgd
increment would be added. The unit cost would be approximately
five times what was presently being paid which itself,, made the
staffs look at the expense of going beyond what they presently
had.
Councilmember Renzel asked how it was decided how much capacity
each new development added or took and how it was known what was
approved.
Mr. Hayashi said information was provided by the Planning Depart-
ment and the criteria in terms •of per capita a day of residential
use and waste water flow per square foot of commercial or indus-
trial area was utilized to determine what the flows would be at
the pl ant.
Count ilmember Renzel clarified that industrial customers were
charged by water usage.
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Mr. Hayashi said industrial customers were charged not only by the
quantity, but also the strength of. the industrial waste.
Councilmember Renzel clarified the City had some measure at the
source of what was being produced.
Mr. Hayashi said yes.
$OTION z Vic* Mayor Cobb moved, seconded by Woolley, that the
Mayor be anthorl=ed to sign Addendum #3 to the Basic Agreement
between the Cities of Pal • Alto, $ uatain View,- and Los. Altos for
Atgui si tiers, Csnstructian, and Maintenance of a Joint Sewer
System.
ADDENDUM NO. 3 TO AN AGREEMENT BY AND BETWEEN
THE CITIES OF PALO ALTO, MOUNTAIN VIEW AND
LOS ALTOS FOR ACQUISITION, CONSTRUCTION AND
MAINTENANCE OF A JOINT SEVER SYSTEM
Councilmember Renzel believed it was another example of infra-
structure where Palo Alto had major costs that accommodated
growth. They were public costs split among everyone and many
people were innocent bystanders who added to the capacity need.
She was concerned that on the one hand the City address its proj-
ected growth needs, but that it continue to maintain a close cor-
relation with planning so as to understand what types of costs
were being passed on to future generations.
MOTION PASSED unanimously.
ITEM X11, REQUEST OF MAYOR LEVY RE MID -PENINSULA TRAFFIC AND
Mayor Levy said a couple of months ago, Mayor Jack Morris of Menlo
Park convened a meeting of the representatives from Mountain View
on the south to Redwood City on the north, the purpose of which
was to consider the transportation problems that were of concern
to all the communities. They met twice to explore the common con-
cerns which crossed the county lines and which were otherwise not
really coherently represented. It was agreed that there were two
subjects of significant concern --the flow of traffic on El Camino
Real and the impact of the Dumbarton Bridge. It was recognized by
all that land use and development were the ultimate determinants
of the traffic flows and as a next step it would be appropriate
and worthwhile for the various jurisdictions to collect and coord-
inate the data, plans, and policies from each jurisdiction regard-
ing the two transportation subjects and the relevant land use
policies. That data would be the focus of a third meeting to take
place in mid -April. He wanted to ensure that Council was aware of
the meetings and to solicit support and ideas to include in the
process. He believed it was worthwhile for the jurisdictions to
get together and discuss concerns that were common to a11. He
recommended that Council direct staff to work with the other com-
munity representatives to address the common transportation con-
cerns. Staff advised that no additional staff or budget would be
required.
MOTION: Coaecllseseber Klein moved, seconded by Cobb, that staff
be directed t o work with ether cssseei ty. representatives to
address common transportation ceicerms.
Councilmember Fletcher believed it was a step in the right direc-
tion and it was refreshing to see some cooperative effort to look
at the issue of traffic as it related to land use. She wished the
project and ongoing meetings well and hoped that formal agendas
and minutes would be included in the Council packets.
NOTION PASSED ■saalsautly.
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3/11 /85
ITEM #12, REQUEST OF COUNCILMEMBERS Sit T ORIUS AND WOOLLEY RE
ENDORSEMENT LETTER FOR PALO, LEYTE, PHILLIPPINES/NEIGHBORS ABROAD
LIBRARY PROJ CCT
Councilmember Woolley worked with the Palo Community in the
Philippines and found their project to be exciting because they
were thinking big and because they were involving several profes-
sionals as advisors in the various aspects of the project. One
goal of the project was that the Palo Library become a model for
other rural communities in the Philippines.
MOTION: Coonci lssaber Woolley coved, seconded by Sitori es, that
the Mayor write a letter endersieg the Palo -Neighbors Abroad
Library Project.
Councilmember Sutorius said although the committee was thinking
big, it was thinking responsibly and carefully. It would be big
in Palo's impact and he encouraged Council support.
Councilme ber Renzel believed it sounded like an excellent proj-
ect. She worried when people thought big and talked about secur-
ing funding. She assumed that Council was not making any commit-
ment or implication of commitment for funding.
Councilmember Woolley said that was correct.
Councilmember Renzel believed it was a good idea.
Mayor Levy commended Councilmembers Sutorius and Woolley for their
work as the representatives to Neighbors Abroad.
MOTION PASSED eeaaiaoesly.
ADJOURNMENT TO CLOSED SESSION RE EMPLOYER/EMPLOYEE RELATIONS
Council adjourned to closed session re Employer/Employee Relations
at 10:00 p.m.
FINAL ADJOURNMENT
Final adjournment at 10:55 p.m.
ATTEST:
APPROVED;