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HomeMy WebLinkAbout1982-01-25 City Council Summary MinutesCITY COUNCIL MIF1UTEs ITEM Oral Communications Approval of Minutes November 9, 1981 November 16, 1981 November 23, 1981 Special Orders of the Day Resolution of Appreciation - Alan Henderson Regular Meeting Monday, January 25, 1982 CITY PALO ALTO PAGE 1 6 2 8 1 6 2 8 1 6 2 8 1 6 2 8 1 6 2 8 1 6 2 9 1 6 2 9 Resolution of Appreciation - 1 6 3. 1 Joseph J. Gosza Appointment of Three Human Relations Commissioners for Three Year Terms Ending 12/31/84 Consent Calendar Referral Action Adoption of the 1981 Edition of the National. Electric Code Gas Rate Change Rear Easement Power Line Clearing Palo Alto Theaters, Phase I Improvements, CIP Project 80-01 Agenda Changes, Additions and Deletions Finance and Public Works Committee Unanimous ; Recommendation re Lease Purchase Agreement with the Palo Alto Unified School District for the Lease Purchase of Terman School Site Planning :Commission Recommendation re 77 Acre Arastra Site (Continued from 12/7/81) PUBLIC HEARING: Weed Abatement 1 6 3 2 1 6 3 3 1 6 3 3 1 6 3 3 1 6 3 3 1 6 3 3 1 6 3 3 1 6 3 4 1 6 3 4 1 6 3 4 1 6 4 0 1 6 4 5 1 6'.2 6 1/25/82 Finance and Public Works Committee Unanimous Recommendation re Lytton Gardens III that the City of Palo Alto Guarantee a $300,000 Loan to Lytton Gardens, If They Can Provide Collateral Extension for Six Months of Joint Exercise of Powers Agreement - North Santa Clara County Municipal Solid Waste Management Request of Counci-lmennber Fletcher re of Appreciation for "More Than Meets Volunteers Requestof Mayor. Eyerly re Resolution of Appreciation Congratulating the 49`ers on Superbowl Win Regular Meeting Monday, January 25, 1982 The City. Council of the City of Palm' Alto met on this date in the Council Chambers at City Hall, 250 Hamilton Avenue, at 7:35 p.m. 1 PRESENT: Bechtel, Cobb, Eyerly, Fazzino, Fletcher, Klein, Levy ABSENT: Renzel, Witherspoon ORAL COMMUNICATIONS None MINUTES OF NOVEMBER 9. 1981 Due to technical problem, the City Clerk's Office had no tape of the November 9, 1981 meeting. -MOTION: Vice Mayor Bechtel moved, seconded by Fazzino, approval of the minutes of November 9, 1981. MOTION PASSED. unanimously, Renzei and Witherspoon absent. MINUTES OF NOVEMBER 16 1981 -Vice Mayor Bechtel had the following correction: Page 1422, first paragraph,.should read as follows: "Councilmember Bechtel said she agreed with the Planning Commis- sion's recommendation. She said that regarding Mr. Thompson's testimony, Commissioner Christensen, during the Planning Commis- sion discussion,- had .said that Cambridge should be a transition street between the residential and commercial area and that there should be be a maintenance of the 35 foot height limit. -Council- member Bechtel said she understood that presently 35 feet was the limit an Cambridge except if there were a mixed•use project." • Councilmember Fletcher had, the following correction: Page 1439, fifth from the last paragraph, second l ne, delete the words "and force it," so that the sentence :reads, "Vice Mayor Fletcher said the intent was to improve the retail vitality down- town." MOT10Ne Councilmember Klein moved, seconded by-Fazzino, approval of the minutes of November 15, 1981 as corrected. MJTIO►NeV SSED unanimously. MINUTES OF NOVEMBER 23; 1981 Vice Mayor Bechtel had the following correction: Page 1473, sixth paragraph, eleventh line from the bottom, . the word "perspectus" should read "prospectus.". MOTION: Councilmember Klein moved, seconded by Levy, approval of the minutes of November 23, 1981 as corrected. MOTION PASSED unanimously, Renzel and Witherspoon absent. RESOLUTION OF APPRECIATION - ALAN HENDERSON Mayor Eyerly read the resolution the public. MOTION: Councilmember Fazzino moved, seconded by Fletcher, approval of the resolution of appreciation. RESOLUTION 5988 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO COMMENDING THE OUTSTANDING PUBLIC SERVICE OF ALAN HENDERSON AS `OUNCILMEMBER, VICE MAYOR AND MAYOR" MOTION PASSED unanimously, Renzel and Witherspoon absent. Mayor Eyerly said the City was very fortunate to have had Alan Henderson's service as portrayed in the resolution. Councilmember Fazzino said he thought the council realized what outstanding leadership they were losing after such a long period of time. When the Council defined political and civic leadership in Pale Alto in the future, it would be measured in terms. of the many years of outstanding service that Alan. Henderson provided. He said that when Mr, Henderson was elected to the City Council in 1971, it was a period of great political turbulence which con- tinued through the 1970's and which involved a couple of. politi- cal groups. He thought Mr, Henderson was a major reason why the political acrimony and debate in Palo Alto had lowered to a rea- sonable level over the past four years, and why people,'who many times before could not get along, now came together on many important issues for the City of Palo Alto. Councilmember Fazzino said he would miss Alan Henderson during the years ahead. Councilmember Levy was particularly appreciative of Alan Henderson`s leadership, and said when he was first elected to the Council, his initial action was to join in electing Mr. Henderson as Mayor. He voted for Alan because he admired his stands par- ticularly on environmental and neighborhood issues and he appre- ciated his experience, moderation, willingness to listen to every point of view, and his desire to reconcile differences. He said Alan's terms as Mayor were marked by progress: without Palo Alto's traditional acrimony. Alan's administration boasted a host of accomplishments, which included the acquisition of Terman and Ventura Schools, dedication of Arastra lands, the beginnings of the development of Downtown Park North, formation of the Historic Resources Board, significant improvements in the- Baylands Master Plan, appointment s►f --an outstanding Ci.ty., Manager and City - Attorney, and' substantial improvements in fiscal .matters. He said Alan's leadership worked to deal bitterness =and break 'down factionalism, he respected all Counc lmembers regardless of dif- ferences on individual -issues. Alan's. years as Mayor had marked a turtling point in Palo Alto political. life. Councilmember Levy said he believed that the -City Council was more united. than ever before on their goals far the, community. Vice- Mayor Bechtel said the Council would miss Alan Henderson's jokes and puns that sometimes livened a long meeting, would miss his -lead rship when facing difficult.a decisions, and would : miss his interest in everything from baseball and football scores o clotheslines. The Council knew that even though Alan was not -up there with them, he -.would be listen ng on..the radio- sometimes, and,.even though:he would not be voting with -the Council,_he'would' share the same commitment. . Alan would remind_ _the Gounci.lmembe_rs if they got out —of line, and would 'prod them to vote ,the -`way he _felt they should vote - She. thanked him for serving Palo Alto. 1 b2 9_ 1/25/82 Councilmember Fletcher said she personally felt extremely grate- ful and appreciative of Alan Henderson, the long hours, hard work, and willingness to be available to listen and discuss issues on a rational level. She said' the majority of Palo Alto agreed with her sentiments, they were all indebted to' him and would miss him. Councilmember Cobb said Mr. Henderson left some very hard shoes to fill and left a superb standard fore a new Councilmember to follow. He hoped he would do nearly as well as Alan, and if so, would be very proud of himself. Councilmember Klein said that as a Councilmernber, he had learned to appreciate Alan's judgment and wisdom, particularly from the numerous discussions they had on various issues during the eleven plus months they served together. He- first got to know Alan Henderson during the 1975 campaign and remembered the discussions they had after the lack of success in the 1915 election when they discussed where things should go in Palo Alto, Those discussions were useful to him and helped him have a better appreciation of what Palo Alto politics should be. He thought that Alan Henderson's contributions in making Palo Alto a better place had been very significant Mr. Henderson was an extremely fine mayor, but Mostly, he was a fine friend and Councilmember. Klein would miss having him on the Council. Joyce Leonard, on behalf of the American Association of University Women (AAUW), thanked Mr. Henderson for his exemplary service as a Councilmember and Mayor of the City of Palo Alto, and commended his efforts in leadership, especially in the pro- tection of the Baylands and Foothills, for his participation and cooperation with the other cities in Santa Clara County and focusing on the problems they had in common, his expertise in fiscal matters, and for his concern in providing equitable housing in Palo Alto. She said that on behalf of AAUW, a Redwood tree would be planted in Palo Alto Grove in Big Basin Redwood State Park in Alan Henderson's name. -Mayor Eyerly presented a gift, the resolution of appreciation, and a plaque expressing appreciation to Alan Henderson. Alan Henderson thanked the Councilmembers and Joyce Leenard for their kind words. He congratulated Mayor Eyerly on 'election as the Mayor and wished him good fortune in the r)st , ;' and also congratulated Vice Mayor Bechtel in her election as ViVife,e Mayor. He said ,if .he thanked every person that helped him it would take five hours rather than five minutes.. He offered special thanks to City Clerk Ann Tanner and said she had been marvelous in hand- ling all of his questions and .requests since July 1 1971 and was always pleasant and efficient. Her unselfish assistance during the 2-1/2 year mayor's term made it possible for him to undertake that task while holding down a full time job. He knew everyone appreciated her and would take good care of her. He thanked City Manager' Bill Zaner for himself and as the representative of All of the City- staff,.." he said when Mr. Zan-er was interviewed, he felt a great sense of comfort.- that the ideal candidate for City Manager had been': uncovered, and he had : proven 'that feel ing to be correct. -He said Palo Alto was._ extremely. fortunate that Fir. Zaner was interested An coming to the City,- and that the City had Council with enough 'good .sense to realize he was the ide0 choice. He -_asked Mr. Zaner :to relay his appreciation toe all -staff members, and said, the City had- a' remarkably able and dedi- ,caned staff' which ,was equal to or superior- to .:any staff in the private business world: Palo Alto's staff members tried very hard too give pro mot service- and to cut through red tape. They were Intelligent and dedicated public servants _ and dealt with the public .efficiently and etopiateously. He also thanked Myrer,e 1 6:3 0 s,1/25/82 Henderson, and said if one was acquainted with their story, they would know that the entire time they had been together, he was deeply involved as a Councilmember. Myrene had had to adjust her schedules and desires to his demands and time requirements. Not only had she made the tremendpM ► sacrifice, Ant had taken an interest in what he was doing, hay served unselfishly as a sound- ing board, had offered advice when -asked, and had dealt' beauti- ful ly on the telephone with citizens who called during his ab- sence. He said Myrene was always perfect in the role as the City's First Lady when they attended official functions. Mr. Henderson said that while he was on the Council he always found it necessary to keep in mind who put him there and why. It was easy to get carried away with the job and oneself because suddenly you had power and people came to you for help, and news- paper people called you for quotes. He . sa l d Counci lmembers need to remind themselves continually that they're there to. serve their community and the individual members of the community. He found himself tested often in practicing tolerance for the views of others. He said it was pretty upsetting at times to feel strongly that there was only one proper direction to take -ton a 'natter and find that members of the public, or worse yet, your own colleagues, disagreed with you. He said it must be remem- bered that parsons with opposing views are sincere too, they must be respected, and -differences must hot be personalized. Palo Alto was fortunate to have elected officials with the current intelligence, dedication. and good will. He felt fortunate to have worked with the Councilmembers and their predecessors over the past 10-1/2 years, to have lived in Palo. Alto, and to have had the opportunity to serve it and its citizens. Nothing in his working life had brought him the satisfaction he received while serving the community. He said if he were asked in what country in this world he would choose to live, his answer would be the United States of America, and if asked in what State he preferred to live, his answer would be California, and if asked in what City he would chose in California, it woui\1 be Palo Alto. -To have been given the opportunity to serve as Mayor for :this com- munity was an honor almost beyond his'. comprehension and he thanked everyone for giving him that opportunity. Mayor Eyerly thanked Mr. Henderson, and added a vote of thanks on behalf of the Council and the City staff, to Myrene for the time taken froth her and given to the City. He said` everyone knew how much a spouse had to cooperate in order -for Alan to have done everything he did. RESOLUTION OF APPRECIATION - JOSEPH J. BOSZA Mayor Eyerly read the resolution of appreciation. MOTION: Councilmember Fazzino moved, seconded by Levy, approval of the resolution of appreciation. RESOLUTION 5989 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO JOSEPH J. bOSZA FOR OUTSTANDING PUBLIC SERVICE" Mayor Eyerly said he had. known Joe since he came on the City Council, .. and found him to be a cornerstone of the electric utility. He would miss Joe after all the years of service. 1 6 3-1 1/25/82 Director of Utilities Edward Aghjayan said the resolution Was an impressive tribute to Joe's contribution to the City, -and noted that.Joe graduated from the University of Michigan in 1942, and played on the University football team that year. Joe Bosza. -joined the U. S. Navy in 1942 and .was an Officer on the subma- rine, U.S.S. Archerfish, He said he recently read an article about the Archerfi sh , which was a submarine on lone patrol out- side of Tokyo Harbor that encountered a freshly commissioned carrier converted from.a battleship. The crew sunk the carrier, after being barraged by half the enemy fleet, having to dive a depth of 600 feet, which was twice what was tested, and thinking. they would never get out alive-. Somehow they escaped, and Lt. J. G. bosza's name was prominent in that article. Upon leaving the Navy in 1946, Joe spent two or three years working for PG&E before joining the City in 1949. At that time, the electric utility consisted of a Chief Engineer, 'Jack Taylor; Margaret Roberts, who was a secretary in the department; and a drafting table crammed into one room in City Hall, then on Ramona Street -- two City Halls ago. Mr. Aghjayan said that if you asked Joe about his greatest accomplishment while at the City, he would probably say the orderly growth of the electric system to meet the needs of the community. Mr. Aghjayan said that when he came to the City in 1974, Joe was a tremendous asset to him and had provided hirii with a _great sense of support, as had Mayor Eyerly. He said he would miss Joe Bosza. Mayor Eyerly read a Plaque of Appreciation, and presented the Plaque of Appreciation and Resolution of Appreciation to Mr. Bosza. Mr. bosza thanked everyone and said the only advice he coin'' give at this point was to quit while you're ahead, and that was exact- ly what he would do. APPOINTMENT OF THREE HUMAN RELATIONS COMMISSIONERS FOR THREE YEAR Mayor Eyerly said that the City was fortunate to have the quality of applicants it had for this Commission and for the three vacan- cies. He regretted that the City did not have ten positions to offer everyone that applied. Regarding those candidates who were unsuccessful, he hoped they would continue to apply. The appli- cants were: Harry W. Anisgard Diane M. Buehler Diana L. Diamond. Irene D. Gilbert Douglas A. Has l am Iris S. Korol Virginia M. Lee Jean M. Ramacciotti Richard R. Roe Teresa L. Yoonf City Clerk Ann Tannerannounced th,e results of the first round of voting for the first position: VOTING FOR LEE: Fazzino, Bechtel, Eyerly, Fletcher, Cobb, Klein VOTING FOR KOROL : Levy She said Ms. Lee received six votes, Ms. Korol received one vote, and, therefore, Virginia Lee was appointed for a further three year term ending December 31, 1984. 1 6 3 2 1/25/82 Ms. Tanner read the results of the first round of voting for the second position: VOTING FOR ROE: Levy, Fazzino, Eyerly, Fletcher, Cobb, Klein VOTING FOR KOROL: Bechtel Ms. Tanner announced that Richard Roe had six votes, Ms. Korol had one vote, and Richard Roe was appointed for a three year term ending December 31, 1984. Ms. Tanner read the results of the first round of voting for the third position: VOTING FOR KOROL: Klein, Cobb, Eyerly, Bechtel, Levy, Fazzino VOTING FOR GILBERT: Fletcher Ms. Tanner annouced that Iris Korol had six votes, Ms. Gilbert had one vote, and Iris Korol was appointed for a three year term ending December 31, 1984. Mayor Eyerly congratulated Virginia Lee, Richard Roe, and Iris Korol as the new members of the Human Relations Commission. CONSENT CALENDAR Councilmember Klein removed Item No. 6, Extension of Joint Powers Agreement for North Santa Clara County Municipal Solid Waste Management Program. MOTION: Councilmember Fletcher moved, seconded by Fazzino, approval of the Consent Calendar as amended. Referral None Action ADOPTION OF THE 1981 EDITION OF THE NATIONAL ELECTRIC CODE GAS ORDINANCE FOR FIRST READING entitled "ORDINANCE OF THE COUNCIL OF THE. CITY OF PALO ALTO AMENDING CHAPTER 16.16 OF THE PALO ALTO MUNICIPAL CODE TO ADOPT THE 1981 EDITION OF THE NATIONAL ELECTRIC CODE, AND TO MAKE CHANGES THERETO" RATE CHANGE (CMR:122:2) Staff recommends that. Council approve the resolution confirming the action taken by the City Manager adjusting ,gas rates in accordance with Resolution No. 5982, RESOLUTION 5990 entitled "RESOLUTION OF. THE. COUNCIL OF THE CITY OF PALLS ALTO AMENDING UTILITY RATE SCHEDULES G-1 AND G-50 AS A RESULT OF TRACKING PG&E GAS RATE CHANGES".. - REAR EASEMENT POWER LINE CLEARING (CMR.:117:2) Staff recommends that the Mayor be authorized to execute a contract with Pied Piper Exterminators, Inc. in the . amount of $99,970 for providing rear line clearing services. 1 6 3 3 1/25/82 1 AWARD OF CONTRACT . Pied Piper Exterminators, Inc. PALO ALTO THEATERS, PHASE I IMPROVEMENTS. CIP PROJECT 8O-01 Staff recommends that Coenci l : 1. Award the construction contract for the Palo Alto Theaters and Cultural Center Auditorium Improvements to S. J. Amoroso Construction Co., Inc., and Verrett Construction Co,,,a joint venture for $622,882 including Alternate 1 and K-1 and authorize the Mayor to sign the contract, Exhibit B. 2. Authorize staff to execute change orders to the construction contract of up to the amount of $98,000. AWARD OF CONSTRUCTION CONTRACT- S,. J. Amoroso Construction Company, Inc. _ Verrett Construction Company, a Joint Venture MOTION PASSED unanimously, Renzel and Witherspoon absent. `GENOA CHANGES ADDITIONS AND DELETIONS City Manager, Bill Loner announced that item 6, the Extension of the Joint Exercise of Powers Agreement would become Item 12-A. Councilrnernber Fletcher added Item 13, Resolution of Appreciation for Volunteers at Southern Pacific depot. Mayor Eyerly added Item 14, Resolution of Appreciation to the San Francisco- 49'ers. MOTION: Counc i l member Cobb moved, seconded by Klein, to bring• forward Item 11, Lease Perchase of Terman School, aheed of Item 9, Arastra Lands. MOTION PASSED unanimously, Renzel and Witherspoon absent. Counci lraember Klein said it was not clear to him what the procedures were to add new items to the agenda. City Attorney Diane Lee said final action on an item could not be taken if the item was not placed on the agenda before 12:00 noon on the Wednesday preceding the meeting, and printed on the agenda. Councilmember Klein asked if the two -items to be added were for final action. Mayor Eyerly said no --the items were directions to staff, asking them to prepare resolutions. Ms. Lee said exceptions would. be if an item were urgent or an emergency. She said there was a distinction between "urgent" and an "emergency" in . that an emergency ordinance required a two-thirds vete. She interpreted that directing staff to do something which would go back to Council was not; final action. FINANCE AND PUBLIC WORKS. COMMITTEE UNANIMOUSLY RECOMMENDS TO TH Chairperson of the Finance and Public Works. Committee Council- member Fazzino said the Committee had a ,spirited discussion of the issue, and the charter for the Committee was to come up with a financial plan for purchase of - the Terman Site. He reiterated 1 6 3 4 1/25/82 1 1 1 that. staff, Council and the Committee members were very positive and thanked Jean Diaz for all the work he had done to bring the matter of development of the Terman Plan before the Council which was not only put together by City staff, but with the tremendous help and support of the Terman Working Group. MOTION: Councilmember Fazzino for the Finance and Public Works Committee moved that the City Council finance the Lease Purchase Agreement with the Palo Alto Unified School District -for the lease purchase of Terman School Site, using $2 million from the Jewish Community Center, $2 million from the Housing Land Bank Fund, and $5 million from the City's Capital Reserves for a total of $9 million. - Councilmember Fazzino -said that the Committee felt strongly that the issue needed to be separated completely from the discussion of Arastra. Vice Mayor Bechtel said the motion which passed the Committee did not go in to listing where the money would come from. Councilmember Fazzino said he recalled that the Committee members agreed about the allocation of the money along the lines of the three figures listed on this agenda. The concern on the part of Coun i lmember Levy who made the motion was how this would appear in the budget on an annual basis and would it be separated com- pletely as a project, or would it be included ein the Capital Reserve Funds. He deferred to Mr•. Zaner for concurrence. Mr. Zaner said Councilmember Fazzino was correct, - that the Finance and Public Works Committee discussed at some length the derivation of the funds. He thought it was fairly well under- stood that in line with the staff recommendation, a portion of the money- would come from the JCC lease, - from Housing Land Bank Fund, and the balance from some other source. The Committee recommended that that source be a pay-as-you-go basis from the general fund reserves. Vice Mayor Bechtel wanted to clarify that the unanimous recom- mendation from the finance and Public Works Committee was to lease purchase the Terman Site on a pay-as-you-go .basis. The sp.eci f i c dollar amounts were correct, but they were not included, because they were not tied down to specific amounts. Mr. Zaner said that was also correct and it was his recollection as ►yell. Mayor Eyerly clarified from where the wording of the motion came. The motion the Finance and Public Works Committee put forth was to go forward with the payment for the properties as stated on the _agenda4 . Councilmember Levy asked for clarification from staff exactly what the Council was committing to at this point by way of acqui- sition costs, program costs, and improvement costs... Real Property Administrator, Jean Diaz said that under the Lease Purchase Agreement the City was committing to acquisition ofthe site for a total principal payment of $9 million. He said it would be spread over the next 20 years --the initial $1 million payment having already been made, the balance being due in 19 equal principal installments over the next 19 years with inter- est.'' He said the amount would actually be more than the $9. million if the interest the City was to pay was included. He said previously reports had outlined the program costs and the initial constructiin costs. 1 b.' 3 5- 1/25/82 1 1 e Mr. Laner said staff's estimate was that in the first year, the start up costs for operations would be approximately $111,000. Staff estimated that annually thereafter those costs would be approximately $195,000, and the improvement costs on the site for park improvements would be approximately $1.4 million; for the Community Center facilities, approximately $1.6 million; and for parking and landscaping, approximately $300,000 for a total of $3.4 million for improvements over the life of the project. Counci lmernber Levy wanted to clarify that this eveni rig the City was committing to the acquisition of the site, and -that further commitments for programming, development, etc., would take subse- quent actions on the part of the Council. Mr. Laner said that was correct, and not only= would the Council take subsequent action, the Terman Working Plan Document, which the Council had adopted, specifically included language that made it clear that the operation and improvement- of the property was subject to Council approval during the budget process so that those irnprovemente and operations would be inserted in the budget and would compete with all .other budget recommendations for Council action. AMENDMENT: Mayor Eyerly moved, seconded' by Levy, that the Council set aside.fund`s out- of the capital projects reserve -and the Housing Land Bank Funds sufficient so that the principal and interest together with the lease payments from the ()CC would be sufficient to meet the total cost of servicing the acquisition. Couricilmember Klein said that as he understood the -amendment, its purpose was for the City'.s financial reporting purposes. If ethe amendment was successful, the- City would have an item on its financial reports which would indicate that there was a fund of roughly $9 million which was encumbered to meet the obligations of acquiring the Terman Site. Mayor Eyerly said that was correct, but it would al so gather the interest from that money into that same fund so that the monies would be available for the yearly payments. Councilmember Klein clarified that if the City had some other emergency or a future Council decided to make some other use of the money, it would be legally permissible. Mr. Loner said that was .correct. If the money were placed in a reserve, it would take six votes of the Council at some subse- quent session to move the money from that account, and the Cou-ecil would be permitted to do so at any time. Counci lmernber Klein said that regardilig the main motion, he could not let what he considered a very momeMous action by the Council pass without saying that he was: extremely proud of the way the matter turned out. He thought -that Council's action last year to approve the acquisition of Terman was one of the Council's most significant acts, and the fact that Palo Alto was fortunate enough to have sufficient reserves, and_ upon deeper analysis, to finance the acquisition on a more or less pay -as -you; -go' basis, was attributable to the fine financial; management in Palo Alto. He was enthusiastic about the mainmotion and felt good about it. He thought the amendment was appropriate because` the City - had this commitment and its financial records should properly and adequately disclose i t. It would not : be proper for the City to have a listing on its financial record which stated that the City had a reserve of $8 million- when, in fact, it was not so much a reserve of $8 million, when at least $5 million was committed to 1 6 3 6 1/25/82- a particular project; namely, Terman. He thought the amendment was for an accurate and honest financial accounting and supported the amendment. Counci.laiember Levy seconded:Councilmember Klein's comments. He said it was a momentous occasion, and he believed it was the largest expenditure of community funds for.an acquisition in the history of the City, a total involvement of $9 million, and a specific commitment of reserves of $5 million. He said the Terman acquisition concluded four years of intensive community involvement, There was a great desire throughout the community that the City safeguard the open space which was presently endangered as school sites. were lost. He said this Council had acquired the Ventura Site, and would acquire the Terman Site tonight, and he was' delighted. Regarding the importance of specifically earmarking --the funds, he said it was fiscally irresponsible not to do so. -The Council was making a 20 -year .commitment; and, although ,the commitment was in the form of a lease, there was an unalterable commitment to make it permanent and Ultimately to go through with the purchasen He said it was, therefore, important for the Council to set aside the funds and let the community know that the funds were earmarkethe Because it was a 20- year commitment; it would go through many Councils, City administrations, and staff personnel, and because of the community's interest in the matter, they would constantly be looking over the Council's shoulder. He said the amendment was wise and prudent fiscal management and he urged Council support. Mr. Zaner argued the case in the other direction, as he had at the Finance and Public Works Committee meeting. He did not think for one moment that this City Council nor their successors would renege on the promise to purchase the Terman property. Once the commitment was made, he believed the community could expect the Council to keep it. He said the guarantee to the community was the fact that the Council will have put a substantial amount of money into the property --some $3 million in capital improvements alone. Tying the money up in a reserve fund would severely reduce the Council's flexibility for. other kinds of projects. The trick for municipal finances was to be flexible, if possible,- -and make the best euse of money as opportunities present themselves, He said that by tying the money -up in a reserve, even though the Council could legally reach the reserve and reverse the previous decision, he believed it would be difficult to do so. He felt the Council would be better served to leave the funds in the reserve as they were now. While the flexibility issue appeared not to be too difficult at the moment, he believed it -would -become More critical as the years go on. He said that as availability of money from the State and Federal governments becomes more difficult, the City would have to look - to its own resources niore fully, .and he believed the Council would be well serVett not to have the Oney in a reserve, and to leave the money -in the General Operating Reserves in order that it could be reached whenever the Council wished. He thought that giving the community a guarantee was easily done by adopting the resolution which authorized the leaseepurchase progra€n'. _The motion that --,the Finance' an.d Public Works Corm:ittee made vas to design a pay -as you -go program.- He Said. a payeas-you-go progra►i was precisely that., the funds ewere..appropriated , annually,- and paid ebf current revenues. Consequently, he recommended, that. the Cvunc i l not set up such ea reserve and that the funds" be left in ,the Genera? Reserve. Vice Mayor Bechtel thanked M_r.- Zaner four his statement. As a •Counci lmember,- she voted t� support the contract-,, to pay. Over A; 2O -year. period the mon-ey `.to the School . District. She said she voted 'strongly,: along with the` rest of the Council, to support 1 6 3 7 1/25/82' 1 1 1 1 1 the plan. If the Council wanted to pay for the property in one lump sum and_ avoid the interest payments, it could have been done. The City agreed, in its negotiations with the School Board, to pay it Over a period of time which helped in negotia- ting the -price down somewhat from what they had originally. wanted. She said that by setting the money aside in a reserve, the Council was essentially taking that money away from the very 'capital improvement projects the Terman community, wanted to see happen on that piece of property. The.City needed approximately $1.2 million each year, --which would decrease toward the end of the 20 -year period. She said the City needed -- that flexibility, and she urged the Councilmembers to vote against the amendment. Councilmember Cobb asked if the amendment passed and a future Council decided it needed the money for something else, what conditions went along with that to repay the fund et some later date. Mr. Zaner said there were 'no requirements. The only requirement incumbent on the Council was to make the annual lease payments assuming it wanted the lease continued. Councilmernber Fletcher said she failed to see the urgency of setting aside the total amount needed. She said the City's corn- mitment was contained in the contract, in the Council's approval of the Terman Plan, and in the action to approve the agreement -as recommended by the Finance and Public Works Committee, and if an individual sought to purchase a property and went to the bank for a loan, the bank did not expect that individual to have the entire purchase price in a bank account. She saw the same parallel in this case that the City was committing the annual payments, and there was no overriding need of why the entire amount should be set aside. Mayor Eyerly noted that former City Manager, George Sipel was in the audi-ence. He read comments made by Mr. Sipel in his State of the City'`budget message in 1977-1978. "The 1977-1978 budget pro- poses the establishment of a $2 million General Fund Contingency Reserve. . This reserve would be created from the existing unappropriated balance of the Capital Improvement Fund and would be used to provide for unforeseen financial events during the year. . The reserve would be created, but not appropriated, so that any use of the reserve would require the approval of a budget amendment by the Council. The unappropriated balance of the Capital Improvement Fund is estimated to be approximately $2.5 million at the end of 1976-77. Establishing the General Fund Contginency Reserve at $2 million wi l l leave a balance of $.5 million in the Capital Improvement Fund, and the 1977-7d budget recommends a transfer to the fund of approximately $1 million, With 1977-78 Capital Improvement Fund expenditures of $.9 million, the unallocated balance of the Capital Improvement Fund will be approximately_ $.6 million at the end of 1977-7d." Mayor Eyerly said he wanted the Council to be aware of where they were on reserves in 1977-78 compared to where they were . now. Since that time, as of January 1, 1980, the City had .set aside a $3 million contingency reserve, which Mr. Sipel had; proposed back for that: budget some years ago, and also a Capital Improvement Program Surplus of $8.376 million. He said the amendment- spoke to taking $5 million from'it and le& ing over a $3 million sur plus. Further.2 it spoke to taking $2 million from the Land Bank. Funds to encumber those two sets of figures, With interest, to pay for the Terman purchase on a pay-as-you-go method. He thought :it was; importante that;' the-. Council do that because the City would pay` substantial interest more than was paid on the principal, fur about the first 13 years. He did not think it was financially prudent to proceed on a purchase of this magnitude 1 6 3 8 1/2.5/82 without encumbering the funds so that the interest would be built .up within the same reserve and was available to spend. . He felt that staff was concerned about the size .of the Capital Improve-- ment Reserve, and pointed out that years ago it was much lower than that. With proper financial handling, the City had built it up again and was in a position to basically pay cash for the Terman property. He disagreed that the. School District would accept the cash in -one lump sum. The'Capital improvement spoken to by staff on the Terman site of some $3 million would have to come about sooner or later, but did not have to happen in the ,first year, He felt that those capital improvements had to be suggested in the Capital Improvement Program, scrutinized by the Finance and Public Works Committee, _and approved by the Council as it became evident that they could be done. Counciltiiember Levy said that the- issue was not reneging on a promise regarding Terman. The issue_ was clear reporting to the community. He said the budget was a complexe difficult to under- stand document, he worked with the budget -intensively :for 'the 2-1/2 years he -had been on the . Council and for a number of years prior to that. He knew that, with the .exception of Bob Moss, almost everyone in the community had ..a great deal. of difficulty getting the information ,they wanted out of the budget and understanding clearly what the position of the community was. He recollected Alan Henderson's statement that the Council needed to remember who put them up there and wh, He thought it was the Council's obligation to report to the community as clearly, openly and honestly as possible regarding the City's fiscal status. He was not concerned about Terman--the Council was making a commitment, and he was sure it would be, honored for 20 years and beyond, and was sure that the acquisition and development of, Terman would go through. He was .concerned with the overall fiscal policies of the City and other capital items, and that the Council would have to go to the community in the future and ask for a vote of approval on things they did, and if the community was confused, they would vote no. He thought it was: the Council's obligation to try and unconfuse as much. -as possible, and one way to do it was to simply earmark the reserve being considered to be called a "Terman Reserve. He said' it would not commit the- Council irrevocably to anything, that this and future Councils would always vote on emergencies on special items, but nonetheless, this. was the way to begin reporting clearly to the public. Councilmember Klein said that Councilmember Fletcher had compared this to an individual buying a --home. He said the City- was a dif- ferent kind of entity, and one obvious example was that the City was not allowed to have deficit financing. If individuals did not have deficit financing, the economy would be in total col lapse. He said individuals were not subject to the same type of reporting requirements as cities. He did not think the City's situation should be``compared with what an individual world do. He said Vice .Mayor Bechtel -had said that tying. up -the money would preclude the City from , engaginy in,; other _ capital improvements.. He `felt that was precisely what. the Council should be. doing, and thought it would be very unwise for ,the Council . to require some type of emergency to make $9 or. $10_ million in capital commitments when they only had $8 mil l ion. to use. The very -idea of the "set• aside" was -to say -loudly -:and clearly __to the citizenry that the City only had;so much__ money, and $5 million had_ been committed. If the City wanted to finance more than -the. total $€'.• million, sacrifices; would have to. be: made and _ oth.er sources of Money found. 1 6 3 9 1/25/82 s 1 1 N\. Councilmember Fazzino said he felt mach too much time was being spent fighting over something that could have been, resolved in a minute and_a half. Whethee the funds were set aside or -not, future Councilmembers .could come along and undo what had been done. He said the approval , of the ---motion was in no way any pro- tection. He recognized that Councilmember Levy had a problem with the way in which the budget presented the City's program, and he, thought it was a good point and wa.s one which the Finance and Public Works Committee agreed on last year. It- was his understanding that the Finance and Public Works Committee would look at revisions to the Budget during the 1.982-83 budget process so that all City programs and their total costs were represented in the budget. He applauded that approach, but to change horses in the middle of the stream in terms of how the budget Was looked at in present terms was an unwise move in his opinion. He was also concerned about loss o€ flexibility, and said the City had been very fiscally responsible in past years with capital improvement funds and had made major- commitments before to capital improvement programs. At the same time, flexibility was retained, which was -what Mr. Zaner was asking the Council to do. He encouraged the Council to vote against the amendment and support-the.nnain motion. Vice Mayor Bechtel commented that the City had a number of obli- gations. For example, the City spent money each year on road improvements --the Council knew they would spend money on road improvements each year, but did not have a separate reserve that said Road Improvement Fund. There was a line item in the budget and the City had an obligationea make some improvements to the roads. She believed that the City had an obligation, and the Council knew there was an obligation to pay the amount owed each year to the School District which could be listed fairly and accurately as a line item in the budget. Councilrrember"Klein said the difference was that the City did not have a contract, there was no one out there on the roads the City owed money to specifically. There was a contract here, and a specific amount was owed to the School District.. AMENDMENT PASSED by a vote of 4-3, Fazzino, Fletcher, Bechtel voting "no," Witherspoon and.Renzel absent. MOTION AS AMENDED passed unanimously, Witherspoon and Renzel absent. :PLANNING- COMMISSION BY i b.-0 VOTE l ABSENT RECOMMENDS-) THAT 177 U cyrtanD IN AN OPEN .SPACE H N E H `' RV VOTE ANO 3 BY A VOTE 0r 4 IK. AVOR, I OPPOSE ' , EN tr4 PL NNING OMMISS iN RECOMMENDS THAT IF DEVELOPMENT SHOULD BE CONSIDEREE E L _EN P NS b B A COMBINATION OF THESE W+ AR R C . M HD D CMR:12 ER` 1 Chairperson of the Planning Commission Jean McCown-Hawkes said the Commission's basic conclusion, after reviewing the study and after hearing from the public, was that..de\•eiopment or sale of the 77 acres was, premature particularly if the purpose of the possible sale or development was to generate funds for the purchase of school sites" or other properties for public use. She said the Commission believed that this option was one that should be taken only after- ver=y deliberate Consideration._and discussion. by the public . and after _ all other sources of _ revenue " were exhausted.. .The Commission -voted on dedication of the 77 acres, which failed to pass on a split vote.- She said the reason it failed was that members of"the'Commission believed that the maxi mum options for the use -of the land should be maintained and that dedication would affect the flexibility the City may have in the future. She said the -Commission desired that the community be given an -opportunity to fully express its views on the policy issues inherent in considering the sale of City property such as this land. She said that was the basis of .the Commission's recommendation that _there be some kind of advisory vote before this acreage were ever sold by. the City. She said that of the various development concepts presented in the Arastra report, the Commission's preference, if nevelopment were to occur, would be that options 1(b), 2, or 2(b)`be the ones pursued -because those Options were felt to be the best combination of environmentally sensitive- design, consistent with the policies of the Comprehensive Plan for Foothills development. Councilmember Klein asked Ms. McCown-Hawkes for a definition of the phrase "Open Space Reserve." Ms, McCowneHawkes Said the sequence of the -Commission's delibera- tions and vote was whether the land should be developed, which failed. Then the Commission discussed whether the land should he dedicated for park use by the City, which also failed to gget. a majority vote. She said that although the Commission did not discuss what the zoning should be, the concept was probably OS/ROS zoning, but that the City not pursue any development at this time. Linda Grandmaison, 2253 Park Boulevard, represented the Committee for Green Foothills, and said that on December 7, 1981 when the Tanning Commission's recommendation was first on the Council agenda, the Committee submitted a statement to each Councilmember in support of dedication to open space. She read a portion of that statement submitted on December 7, 1981, which is on file in the City Clerk's Office. She said the Committee for Green Foothills urged the Council to approve the Planning Commission recommendation and dedicate the 77 acre Arastra site as open space as an option 3 of the summary report. Irene Sampson, 3992 Bibbits Drive, represented the League of Women Voters (LWV) of Palo Alto, and reiterated what was sub- mitted by them on December 7, 1981, and which was also on file in the City Clerk's Office. She said the LWV recommended develop- ment of plan 1(b), 2, or 2(b), and although the LWV's position had been retention of maximum possible open space in the Foothills, they felt that 51 units, clustered on 77 or fewer acres of a 515 acre. site retained a lot of open space. She reminded the Council of the dangers of the recent extra amounts of rainfall and any development of the Foothills, and urged that the Council make sure that soil, landslide, earthquake and fire hazards were carefully taken into account in consideration of any development proposals in the Foothills. The LWV believed there were other methods for the City to use to raise money to meet its financial needs, but if sale for development of the 77 acres was one of the methods selected by the Council, the. LWV hoped proper use of the ;land, resource conservation,; and an innovative approach to its development would ,be urged. Rose Gray°, 1235 Hamilton Avenue, represented the Loma Prieto Chapter of the Sierra Club, and said they had closely followed the progress for the use of the Arastra lands. They were involved in the ;initial meetings fir the use of that land and contributed their input and views. She said the Sierra Club had consistently suggested that the entire 550 acres be dedicated as open space parkland, and firmly continued with that stand. The Sierra Club believed that the best use for that land, as an investment, would be to preserve it in its natural splendor for the people of Palo Alto and they were pleased when 438 acres of the Arastra land were set aside as dedicated parkland. The Sierra Club urged that the Council make a commitment tonight towards dedication of the 77 acre parcel of Arastra land as open space parkland, which would set a precedent by preventing unnec- essary expansion of development in the Foothills. The Sierra Club thought it was -a unique opportunity to take a stand for future generations. Bob Moss,:4010 Orme, 'said he disagreed with Rose Gray. He said he thought it was probable that after complete evaluation of the 77 acne site, the pros and cons of building, the problems of access, etc. versus return to- the City, it would be dedicated as parkland. He_supported the Plannipq Commission s three recom- mendations because the City owned the property and would not be faced with some developer coming around and asking for .4 subd ivi- eton map.. He said there was a real need to involve the commu- nity. He was disappointed at the lack of public input and corn- ment at. the Planning Commission, and thought it was unfortunate that the public did not come down and speak to the issue when it had the opportunity, He thought an advisory vote would be help- ful. Finally, he thought the public should be given the opportu- nity to balance off the possible return for selling off part of the land with the costs --was it worthwhile to get money back for things like other school site acquisitions. The public had to be convinced that the Council tooK due care and concern and used the public's assets wisely, and since there was no urgency,. the Council had time to think about it, get all the facts, get.. an updated Livingston and Blaney equivalent report, look at it again, and come back to the public with all the facts in hand to decide intelligently. Joe Hirsch, 4149 Georgia Avenue, said that as a member of the Terrnan Working Group, he app)auded the action the Council took,.on the Merman School Site. He thought it was a bold move and would be remembered for years in Palo Alto. He was also concerned with open space and enjoyed the open space in the Foothills., but thought it was important to retain open space in the urban area of Palo Alto. Accordingly, he thought- the action taken to date by the Council was good, but suggested that it would be premature to take any action on the remaining 77 acres at this time. He thought it was necessary to view that property as an economic asset that may have ,to be used in the future, and to retain the flexibility and preserve the status quo. He agreed with . I r. Zaner's recommendations that should income from that property, be needed to be available in the future; the Council should have the opportunity to consider its sale for possible funding. MOTION`: Councilmember Fletcher moved, seconded b;7 Eyerly, approval of the Planning Commission recommendation 1) that the 77 acre Arastra site remain undeveloped in an opera space reserve for the foreseeable future and that none of the development options. presented be pursued, 2) that before possible sale of the 77 acre, site, a citizen advisory vote be obtained; and 3) that if .devel- opment should be considered, then development options 18, 2 and 28, ora combination 'of these twobe used. Councilmember Fletcher said Palo Alto had taken. the lead in acquiring open space for the 'purpose_ -of dedication to a permanent state of open space, and she supported the acreage which had already been dedicated. She said that this particular, parcel had 1 6 4. 2 1/25/82 potential at some time if it was ever needed by the City, and she believed the Council should keep their options open. She Said Proposition 1.3 was slow and Uneven in catching'up with various jurisdictions. The State was ok for a while, and was now starting to feel the crunch, and the county had very suddenly felt the crunch this year, and Palo Alto could also feel the effects of Proposition 13 at some time. The City had some expen- sive long-range programs coming up which had to _be funded, such as --finding an alternative to the garbage dump, other school sites, and the Baylands Master Plan had to be developed. She said there were various aspects of- City government where the Council needed to keep all options open so that ways of dealing with them could ebe found. When the Council had 'ssets like this one, she wanted to keep them open as long as possible, and,maybe they would never _.be needed. She said it would have to be a very urgent need for her to approve building on that site. Regarding the recommendation that before the land was developed that there be an advisory hiote, -she was not sure.. the Council could' legally advise itself on such a matter. City Attorney Diane Lee said she thought the Council could establish a policy, but a policy was not necessarily binding. Councilmember Fletcher agreed with the remainder of the compo nents of the Planning Commission's recommendations. Counc lmember.Klein agreed with everything Councilmember Fletcher said. He felt strongly about open space in the Foothills, but thought the 77 acre site was in a different category. He thought the Council should preserve its options for the future because it might very well have to be sold He eras concerned about some of the Planning Commission's wording because of the actions the Council had already taken tonight. He thought it was premature to yet as specific as to state which options the Council pre- ferred now. He did not like the provision for the Citizens Advisory vote because it was rather gratuitous at this time. He was troubled by the phrase "open space reserve" when there was no definition of that within the City. MOTION: Councilmember Klein moved, seconded by Eyerly, for 1) that the 77 -acre Arastra site remain undeveloped at the present time. Vice Mayor Bechtel agreed that it was premature to discuss development options at this point, and would oppose items 2) and 3) of -the Planning Commission recommendation. She said she would support Councilmember Klein's motion. Councilmember Cobb said he would support dedication of the 77 acres at this time. Councilmember Levy agreed with Councilmembers Klein and Fletcher. He thought the point was ' that :the Council did : not have to take any action on the Planning Commission recommendations. He said recommendation #1 said to, maintain the. status 'quo, which was his desire. He said recommendations #2 and #3 were made by chi; Planning Commission after due consideration and they would hold when it ,came time to consider possible development. Since than. was not being considered, he thought it was pointless ,in voting on those recommendations. Mayor Eyerly asked how it was possible to move dedication of the entire property at this time with Councilmember Klein's motion already on the floor. City Attorney Diane tee said if he were to make the motion and obtain: a second, the substitute -motion would take precedence, but as Chairperson, Mayor Eyerly could arbitrate. She said the Counci-l's rules and procedures left it to him to arbitrate the confusing kinds of occurrences and deferred back to him, SUBS'T`ITUTE MOTION: Councilmember Cobb moved, seconded by Fazzino, to dedicate the 77 acre Arastra property as open space parkland. Councilmember lmember Fazzino said he would be restrained, but thought a perfect title' for all of the words, meetings and reports on this subject was "Paralysis Through Analysis." He was disappointed that the Council did not make the decision to dedicate or build a few months ago._ He was convinced that the Council would always possess the same data to make an informed decision it had now, and dish not need to waste $100,000. of taxpayers'. money for a con- sultant report. He thought holding off on the dedication- as recommended by the Planning Commission was to avoid dealing with the obvious facts. He said before the Council finally concluded the subject, it will probably. have spent the entire Arastra pure _ chase price on new consultant reports. The Councilmembers must decide whether potential development would contribute toward elimination of the City's housing problem, whether they wished to begin trading off one open space area to pay for another; with the establishment of a very poor precedent where political power was the most important ingredient for retention of park space in a. particular area of town, whether the financial return given probable development would help the City Purchase large numbers of school sites, and whether the: infrastructure would support housing development without taking away from the golden goose of financial revenue to pay for schoo' sites. He thought all answers were no, and asked that whether the Council supported dedication or not, a decision be made now to get on with this particular public policy issue, and move on to something else. SUBSTITUTE MOTION TO DEDICATE FAILED by a vote eof 4-3 as follows: • AYES: Fazzino, Bechtel, Cobb NOES: Eyerly, Fletcher, Klein, Levy ABSENT: . Witherspoon, Menzel Councilmember Cobb. commented regarding keeping the 7.7 acre Arastra site in open space at this time, when the motion was made at the Planning Commission, what they were trying to achieve was that a firm statement be made that the property should stay in open space and would only be -changed under very extraordinary circumstances. The Commission tried to put some protections in there so that the decision could not be made by some subsequent Council in any kind of a cavalier manner, but rather with consid- erable public control on i,t,: He asked if staff could advise him of a gray to put those kinds -of feelings and controls in that it would be more consistent with the City's zoning ordinance, and if so, he would be pleased to pursue them. The Planning Commission took a stab at it because they were trying to make it clear that it should stay in open space and Council should make it hard to change the decision. Director of Planning and Community Environment Ken Schreiber said. he thought the phrase "remain undeveloped" was a stronger state- ment thaN citing a zone which allowed a range of developments. 1 6 4 4 1/25/82 Councilmember Klein said he thought the language was pretty strong and he supported his motion. MOTION TO RETAIN 77 ACRE SITE UNDEVELOPED AT_ PRESENT passed unanimously, Witherspoon and Renzel absent. MOTION TO TABLE : _ Councilmember Klein moved, -:seconded by Bechtel, to table Items 2) and 3) of Planning Commission recommendations. MOTIOU"PASSED by a vote of 6-1, Cobb voting "no," Witherspoon and Renzel absent. Vice Mayor Bechtel commended the consultants for their effort. She knew they had spent a great deal of time, and reminded the Council that in spite of the fact that she commended them for a good report, she had not wanted to do the report in the _.first place, and she hoped it would be filed and not used for a long time. siECESS FROM 9:15 p.n TO 9:48 a.m. .... =..dam.. PUBLIC HEARING:' WEED ABATEMENT (CMR:118:2) Mayor Eyerly read the following into the record: "This is the time and . place set for a Public Hearing on Resolution 5991 declaring weeds to be a nuisance. Let the record show. that- notice of th-isa hearing has been given in the time, manner and form provided for in Chapter 8.08 of the Palo Alto Municipal Code. Ms. Tanner, have you received any written objections. Hearing none, the. public hearing is declared open." Receiving no requests to be heard, Mayor Eyerly declared the public hearing closed, and stated: "Let the record show that no one appeared or filed written objections against these weed abatement proceedings, and that any Resolution passed by the Council on this matter will reflect this finding.. . MOTION: Lounci lmember Fazzino moved, seconded ' by Klein, approval of the resolution: RESOLUTION 5991. entitled , "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO. ORDERING WEED NUISANCE ABATED"' MOTION PASSED. unanimously, Witherspoon and Renzel absent. FINANCE - AND PUBLIC WORKS COMMITTEE UNAN ImOUSL Y RECOMMENDS TO THE CITY` .CG(iNCT1 Rr 1.YTTtJN G THAT TFTF� CM OF PALO ALTO' HE CCi 1 Councilmember Fazzino said the Finance and Public Works Committee (F&PW) was hopelessly split on the issue of collateral and instead of moving ahead with a motion which would have been defeated, the Committee decided to give the issue to the Council. He said City staff felt the project was not acceptable under land bank ; funds, and he felt they were talking about an ancillary use to the housing, prpgram:_and indeed the money would be appropriate and. that the Council should move ahead with $300,0)OO in that way. MOTION: Councilmember Fazzino for the Finance and Public Works Committee moved that the City of Palo Alto re Lytton Gardens III guarantee a =$300,000 loan to Lytton Gardens if they can provide the collateral.,. 1 Mayor Lyerly reiterated there was a feeling within the Committee that the motion was fine, but there was a split as to whether the City should ask for collateral. Vice_ Mayor Bechtel asked the representatives from Lytton Gardens if they had managed to secure some form of collateral as dis- cussed in the Committee session? Horace Healey, 656 Lytton Avenue, representing Lytton Gardens, said since the time Lytton Gardens had met with the F&PW Committee, they had actively been involved in fund raising. He said they had not secured any further line of credit than the one- presented to the F&PW Committee. Lytton Gardens had raised about $35,000 in additional funds which were cash gifts, and which helped them as far as their fundraising was concerned and rein- stated some- of the items- which were deleted, but they still tad - quite a ways to go. Mayor 'Lyerly asked Mr.. healey for his comments on why Lytton Gardens had a $300,000 shortage, and how it affected their ability to go ahead with the building on Lytton Gardens 111. Mr. Healey said that when Lytton Gardens was initially prepared to build the project, they had contractors' bids which came in higher than their basic budget, and had to delete some items from. their plan. He said they were_almost in a position to finance the project, and then .received the restraining order which required a four -month delay In reapplying for the building permits, etc., which added another $150,000 to the construction bid which was already in. Since that time, Lytton Gardens received bids to ascertain how much it would cost to reinstate. the items which were deleted in May in order to make the project go. Lytton Gardens now estimated about another $1513-,000 of increased costs to reinstate the items. He thought a conserva- tive figure was that they needed at least $300,000 to reinstate several key items. He said specifically, those related to fin- ishing the adult health care center which was taken out of the contract. Mayor Eyerly commented that Lytton Gardens was on an ongoing fund raising program and had done well; but due to the delay in Phase 11!, their fund raising was set on the back burner pending the results of the restraining order.: He said Lytton Gardens' fund raising was starting up again and had raised some money. He said it was not easy, the program must be regenerated, and Lytton Gardens had to commit themselves to properly complete Phase III. He said Lytton Gardens could do it with a loan from the bank, and could borrow the money at a much lower interest rate with a guar- antee from the City than if they did it themselves. He said the F&PW Committee recommended approval of the. $300,000 loan guar- antee but had attached .the cont-i nyency, _.that. collateral must be obtained from Lytton Gardens- to obtain the loan guarantee from the' City.--- Mayor Eyerly 'thought that was. difficult, and 'it ewas -practically as hard to obtain the collateral as the money. He had no doubts- that. .Lytton Gardens would taste care of:enyeloaa guarantee given by the City and take care of their loans from the bank. Further, he s_a i d c.hey had done so with an $800,000 --loan a couple of years ago which.: they paid off. AMENDMENT: Mayor Eyerly moved, seconded by Levy, that the collateral contingency beremovedfrom the loan guarantee. Councilmember Fletcher said she would oppose the amendment with reluctance because it was a sad case where an individual stepped- in and hampered a project which was ready to go. Shethought the project was worthy, but thought it was irresponsible for the City to encumber itself with a. $300,000 budget amendment outside of 1 6 4 6 1/25/82 the budget process, and was precedent setting as Councilmember Levy had .said in the F&PW Committee meeting.' She said once the Council did that, there were numerous other groups who had very worthy causes and whose financial crunch was growing with the: trend and the federal priorities for fundings. She thought it was unwise for the City ,to come forth with a loan with, such a high risk. Councilmember Klein said it was with anguish that he felt restrained to vote against the amendment. He said he was proud of Lytton Gardens and hoped the project succeeded, but thoughte the precedent was bad for the City. The City had not been part of the project and it was beyond the Counci l's financial ability. Although the City had participated to some limited degrees, but here the Council was getting in the position where they were unsecured and he did not think the City could take that kind of a risk. He thought the Council had to draw the line and be tough. He said it was unfortunate because all the organizations were worthy, and it was hard to think of one that was more worthy than Lytton Gardens, but it was not the Council`s field. AMENDMENT FAILED by a vote of 5-2, Fazzino and Eyerly .voting. "aye," Witherspoon and Renzel absent. Mil; IOi4 PASSED unanimously, Witherspoon and Renzel absent. EXTENSION FOR SIX MONTHS OF JOINT EXERCISE- OF POWERS AGREEMEN1 ., NORTH SANTA CL RA COUNTY MUNICI AL S LID _WASTE MANAGEMENT Councilmember Klein asked why the extension was for only six. months rather than one year, and what financial impact would it have on the project if the City assumed that the County was out of the project on a permanent basis? Director of Public Works, David Adams said that several members of the Joint Powers Authority (JPA) Board felt it would be inappropriate to extend the present form of the JPA longer than six months. He said it was hoped that within the six-month period, the JPA would be restructured and come up with one that was. more suitable for continuing with whatever they decided to continue. He said there -was- some discussion by some of the mem- ber agencies .oft the JPA, concerning which direction they were going. This provided a six-month period to re-examine that direction-. He said if the City went with a project for consid- eration and power production, the project would still be approxi- mately the same cost and would come out of the garbage rates of those who participated. City Manager, Bill caner added that if the costs of the program were based on the amount of solid waste contributed ' by each agency into the refuse area or into a waste recovery plant, ,the County's contribution was -very small compared to the total can- tributiori--something on the order of six or seven percent. Even if the County were to totally withdraw, it would leave, the County with the problem .of what to do with their solid waste. He said the financial implications would not be too bad --the cost would be spread over the rest of the cities. Mr. Zaner regarded the six-month extension as positive because it would give the City a, chance to lobk'at what the JPA should look at in the future. He said the present JPA was 'designed to do the preliminary studies, not to operate and run a resource and recovery plant. He said they hoped to look at that in the next six months and decide what to do about restructuring it. He said it would have to come back to the City Councils involved. 1 1 1 Vice Mayor Bechtel said she understood that the County's portion was based only on the unincorporated population,' based on the 1975 census, in the area covered by the JPA. Because many of the areas that were included as unincorporated in 1975 were no longer unincorporated, i.e., many portions of Mountain View and -- Sunnyvale which were annexed during the island annexatidn move::,, she ethought the County's share would have decreased even more. She thought- that with the change and in six -months down the line, the basis upon which each entity made a contribution should be updated and based on more recent data. Mr. Adams said the contribution amount was a question to be addressed. He said the- census had been corrected to the latest one, which was presented to the Council last fail. He said a challenge had been made of whether it was fair to charge by .popu- lation versus the contribution to the garbage problem, which would be addressed separately. For the study period, the.popula- tion was felt to be a.fair''and equitable portion. MOTION: Vice Mayor Bechtel moved, seconded by Klein, approval of the agreement. AGREEMENT TO EXTEND UNTIL JULY 1, 1982, THE JOINT EXERCISE OF POWERS AGREEMENT - NORTH SANTA CLARA COUNTY MUNICIPAL SOLID WASTE MANAGEMENT City Attorney Diane Lee commented that many of the .MOROA island annexations referred to by Vice Mayor Bechtel had been challenged in court and, therefore, for the purposes of calculating- the contributions, they were still -included in the County. Mayor Eyeriy said he had expressed concerns to Mr. Zaner that the original JPA was signed on March 10, 1977, about five years ago, and at that time, the City Council was concerned as to what time parameters they were working. under for solid waste disposal and what would happen out at the refuse area. He said those time constraints had been narrowed down considerably, and he was con- cerned that the JPA accomplish what it was set out to do in time to preclude any raise in the dump. Knowing how difficult it was to get cities to agree on JPA agreements, Mayor Eyerly felt that if the JPA accomplished what they set out to do in six -months time, he would be happy. He asked Mr. Zaner to provide the Council with a short staff information sheet, so they would know where they were on the JPA and the waste disposal problem. Mr. Zaner said staff had put a note in the. Councilmembers' packets that the JPA would have a major one -day briefing to bring the Councilmembers up to date on what they had been doing. He said staff would take the briefing material received by the Councilmembers from the JPA and give them ,a Palo Al to view, so that they could see how what the JPA was "doing fit. Palo Alto's situation specifically. Mr. Zaner said a whole day would be. spent on February 24, 1982, and hopefully every Councilmember could attend. If a Councilmember could not spend a whole day, they hoped they would spend at -least part of the day. Councilmember Cobb asked if restructuring the JPA would get done soon enough so that there would not be a last minute action to take in May and June. He hoped the Council could anticipate time to take a look at it before action. Mr. Adams said he thought they would be = down_to the wire before any restructuri nq was., presented. He said the new general 1 6 4 8' 1/25/82 manager for the JPA, Tom Henderson, was working on it, and it was the last item on his work agenda. He, said the Council may face another extension while any details were ironed out, but they hope to meet the target date of July 1. JIOTiON PASSED unanimously, Witherspoon and Renzel absent. Rt (ZEST OF COUNCILMEMBER FLETCHER RE RESOLUTION OF APPRECIATION t: YE Councilmember Fletcher commended the volunteers who spent their Christmas holiday painting the Southern Pacific depot buildings along the peninsula. She urged that the ;cpu,ncilmembers go by the California Avenue depot, and -said it was incredibly improved from what it looked like before. MOTION: Councilmember Fletcher moved, seconded by Fa'zino, that staff be directed to prepare a resolution of appreciation for February 1, 1982 to the volunteers of the "More than Meets_ the Eye" Community Organization for outstanding public service in taking responsibility for maintenance of local railway depots. MOTION PASSED unanimously, Witherspoon and Renzel absent. RE VEST OF MAYOR EYERLY RE RESOLUTION . OF APPRECIATION u q I LRS U SUI'LKki'JWL wit Mayor . Eyerly felt that with Bill Walsh having been a Stanford coach and with the 49"ers practicing, in neighboring Redwood City and being a part of. the Bay Area community, a -resolution of appreciation would be appropriate. MOTION: Mayor- Eyerly moved, seconded by Klein, that, staff pre- pare Resolution of Appreciation congratulating 49"er.s on Super - bowl win. Councilmember Levy said he had long held to a policy of not voting on resolutions which did not affect Palo Alto-, and this one did not. He felt staff had better things to do with their time. MOTION PASSED by a vote of €-O, Levy Witherspoon and Renzel absent. ADJOURNMENT T Council adjourned at -10:20 .m. ATTEST: APPROVED Mayor. participating," 1 1