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HomeMy WebLinkAbout1982-02-01 City Council Summary MinutesCITY COUNCIL MINUTES Regular Meeting Monday, February 1, 1982 Ii EN Oral Communications Approval of Minutes December 7, 1981 December 14, 1981 Resolution of Appreciation Recognizing the Volunteer• Community Organization "More Than Meets. The Eye" Resolution of Appreciation Recognizing the San Francisco 49ers Consent Calendar Referral Action Ordinance re Page Mill and Birch and the 400 Block of Sheridan (2nd Reading) Finance and Public Works Committee Recommendation re Pacific Telephone Contract that the Council approve an Agreement between the City of Palo Alto and Pacific Telephone and Telegraph for the City to become and "Agent," or Bill Collection Site Finance and Public Works Committee Recommendation re Cogeneration Eng i nee,7i ng that Council approve the Contract for $60,0,000 Finance and Public Works Committee further recommends that when the City Council considers Phase I.1 of the Cogeneration Contract, that it be considered as a Budget Amendment which would take a two; thi rds vote of the Council as would Phase I Architectural Review Board Recommendations re University Avenue and California Avenue Parking Issues CITY of PALO ALTO PAGE 1 6 5 2 1 6 5 2 1 6 5 2 1 6 5 2 1 6 5 3 1 6 5 3 1 6 5 4 1 6 5 4 1 6 5 4 1 6 5 4 1 6 5 4 1 6`5 5 PAGE 1 6 6 4 1 6 6 8 1 6 6 8 1 6 6 8 1 6 6 9 1 6 7 0 1 6 7 2 1 6 7 2 ITEM Parking Lot Acquisition California Avenue Assessment District - Estate of of Elenora f4cLure Council Adjourned to Executive Session Ordinance to Amend Palo Alto Municipal Code to provide for an extended filing period in filling vacancies on City Boards and Commissions Grant from California State Arts Council in Support of Palo Alto Cultural Center's Creation Location Program Request of Mayor Eyerly and Councilmember Fletcher re Dumbarton Bridge Bus Service Request of Vice Mayor Bechtel and Councilmember Fletcher re AB 256 (re Discrimination against Children in Rental Housing) Request of Councilmember Klein re Naming of Palo Alto's Delegates to 0axaca°s 450th Anniversary Celebration Adjournment 1 6 5 1 2/1/82 Regular Meeting Monday, February 1, 1982 The City Council of the City of Palo Alto met on this date in the Counci 1 Chambers at City dial i , 250 Hamilton Avenue, at 7:35 p.m, PRESENT: Bechtel, Cobb, Eyerly, Fazzino, Fletcher, Klein, Levy, Witherspoon arrived 1:35) ABSENT: Renzel Mayor Eyerly announced the need for an Executive Session regarding litigation to be held'during the Council recess. ORAL COMMUNICATIONS Sandra Eakins, 3493 Greer Road, presented a petition to ---the Council regarding late night drinking and driv-ing accidents in her neighborhood. The petition requested a report be done cov- ering the past five years, and that a plan be prepared to dis- cou.rage automobiles from traveling in that neighborhood. She said the neighborhood desired to work with the City to get some- thing done. MINUTES OF DECEMBER 7 1981 Vice Mayor Bechtel submitted the following corrections: Page 1494, last paragraph, first sentence, should read: "Counci�raenrber Bechtel said she thought the speakers were di v-i&led equally between those who strongly supported the proposed ordinance and those who strongly opposed it." Second sentence: Change the Word "difficult" to "different. Page 1505, last paragraph, first sentence: "Malloey" should be ,eMal1oy.re Councilmember Fazzino had the following correction: Page 1494, third paragraph, eighth line, the word "hassel" should be "hasTie." MOTION: Councilmember Fazzino moved, seconded by Fletcher, approval of the minutes of December 7, 1981 as corrected. MOTION PASSED unanimously, Renzel absent. MINUTES OF DECEMBER .14, 1981 Councilmember Witherspoon submitted the following corrections: Page 1519, last paragraph, last sentence, should read /'...ach eved with this project,.." Page 1520, top of the page, first sentence, should read, "She was sympathetic with the neighborhood who were _ concerned about their access in and -.out of :',their street when the barriers were installed, and the costof staff time.. and money to do .:it." Third sentence, delete entire sentence. Fourth sentence, should read, "...Alma to make it worthwhile in convenienciny the neighborhood." Page 1524, top of page, last sentence, should read, "...and she had no feel fur what criteria would be used." Councilmember Fletcher submitted the following correction Page 1529, fourth paragraph, third sentence, should read, "...that the barriers would be removed on Park Boulevard..." MOTION: Councilmember Fletcher moved, seconded by Fazzino, approval of ;the minutes of December 14, 1981 as corrected. MOTION PASSED unanimously, Renzel absent. RESOLUTION OF APPRECIATION RECOGNIZING THE VOLUNTEER COMMUNITY RE THAN MEETS THE EYE Councilmember Fletcher read the resolution of appreciation and urged everyone to yo by the California Avenue depot building and see how nice it looked. She was happy to recognize and thank the fine men who generously put in much effort and time to improve the train stations in Palo Alto, Mountain View and Sunnyvale. She presented the resolutions to Kenneth Lin, Mark Vernon, Steve Christensen, Mike Rairderi., Jim Replogel, Manny Febre, and Cecil Smith. Kenneth Lin thanked the City of Palo Alto for its cooperation, and said there h,.d been a lot of successful projects since they were able to cut through some of the red tape. He said that 1 i vi ng in Palo Alto there was a sense of community spirit that one did not yet living elsewhere. He presented some slides of the work "More Than Meets the Eye" had done. Councilmember Fletcher commented that each of the train stations was adopted by el member of the team and ,.hat particular member would inspect the depots weekly and touch up any blemishes which occurred. Mr. Lin said that having people adopt the station rather than some remote agency would hopefully help to have deficiencies corrected immediately. ,MOTION: Councilmember Fletcher moved, seconded by Levy, approval of the resolution of appreciation. RESOLUTION 5992 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION TO THE VOtUN1EFRS OF THE 'MORE THAN MEETS THE EYE' COMMUNITY ORGANIZATION FOR OUTSTANDING PUBLIC _ SERVICE IN TAKING RESPONSIBILITY FOR THE MAINTENANCE OF LOCAL RAILWAY DEPOTS" RESOLUTION OF APPRECIATION RECOGNIZING THE. SAN FRANCISCO 49ER5 Mayor Lyerly read the resolution of appreciation. Councilmember Levy commented that when he was a child living. `in San Francisco, he used to sell 49er programs at the Sunday games. He said that although he abstained from voting on the matter last week because he thought that City staff had many other things to. do, he recognized, in -tl":`e words of Ralph Waldo Emerson, that "a foolish consistency is the hobgoblin, of, small minds." He was inspired' and delighted by the success of the 49ers this year, and was pleased to vote in favor of the resolution. • :1 6 5 3 2/1/82 Mayor Eyerly commented that the drain on the staff's time was negligible because the City Attorney was a real football fan. MOTION: Counci inrernber Fazzino moved, seconded by Witherspoon, approval of the resolution of appreciation. RESOLUTION 5993 entitled "RESOLUTION', OF THE COUNCIL OF THE CITY OF PALO ALTO CONGRATULATING THE SAN FRANCISCO 49ers ON WINNING SUPER BOWL XVI" Mayor Eyerly introduced Jerry :Walker from the Administrative Offices of the 49ers, and presented the resolution to hi ni. Mr. Walker said that Councilrnember Levy had scared him and thought he was about to witness the 49ers first defeat since the Cleveland game. He said it --was a thrill for him to receive the resolution because he was a resident of Palo Alto. He said if Bill Walsh were not in Hawaii, he would have been at the meeting himself to receive the resolution, and thanked the City Council on behalf of the 49et organization. CONSENT CALENDAR Referral None Action MOTION: Councilrner>>ter Cobb moved, seconded by Levy, approval of the consent calendar. ORDINANCE RE PAGE MILL AND BIRCH AND THE 400 BLOCK OF SHERIDAN ea in ORI;INANCE 3328 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 18.08.040 OF THE PALO ALTO MUNICIPAL CODE (THE ZONING MAP) TO CHANGE THE CLASSIFICATION OF PROPERTY KNOWN AS THE NORTHWEST CORNER OF PAGE MILL ROAD/BIRCH STREET AND 400 BLOCK OF SHERIDAN FROM PF TO RM-5" (1st Reading 1/18/82, Passed 7-0, Fazzino .and Klein absent) MOTION PASSED unanimously, Renzel absent. FINANCE AND PUBLIC WORKS' COMMITTEE UNANIMOUSLY RECOMMENDS RE - -- W AGREEMENT TELEGRAPH FOR THE CITY iG BECOME AN "AGENT OR . BILL COLLECTION i SITE FOR THE .'H NE IC N N D. ND N T TH CASU THE TRIAL PERIOD MR:10 :2 MOTION: Councilmernber Fazzino for. the Finance and Public Works Committee, moved approval of the agreement , between the City of Palo Alto and Pacific Telephone and Telegraph for the City to become an "agent," for the phone cooeparry for a ninety -day i-vial period, and, that the City Council approve the budget amendment of $2,200 to cover- casual staff expenses and miscellaneous operating expenses during . the trial period. I1' • L ' i BUIu D E `T I F '• _24.200 TO COVER SES ANb. MISCELLANEOUS-OrERATI UG a ENSES #BUR Imo` AGREEMEU CITY OF PALO ALTO/ PACIFIC TELEPHONE AND TELEGRAPH AGREEMENT TO COLLECT PHONE BILL PAYMENTS RESOLUTION 5994 entitled "RESOLUTION .,OF. THE . COUNCIL OF THE CITY OF PALO ALTO, SPECIFYING CONDITIONAL APPROVAL OF. "PAYMENT AGENT AGREEMENT" WITH PACIFIC TELEPHONE AND TELEGRAPH COMPANY -1 6 5 4- 2/1/82 ORUINANCE 3329 entitled "ORDINANCE OF THE COUNCIL OF !lE CI PALO ALTO AMENDING THE BUDGET FOR FISCAL YEAR 1981-82 TO PROVIDE AN ADDITIONAL APPROPRIATION FOR REVENUE COLLECTIONS AND TO INCREASE REVENUE RECEIPTS FOR REIMBURSEMENT BY PACIFIC TELEPHONE AND TELEGRAPH" Councilmember Fazzino said he was previously concerned about pre- cedent setting, but felt that the City already provided utility services for the citizens of Palo Alto. He did not th-ink there would be any problem with the service, and thought it was a good idea for the citizens to have -a one stop bill payment service for all the utilities. He indicated some concern that if total divestiture of AT&T occurred within the next three of four years, and there are competing local telephone companies, that the Council might want to reconsider the approach. He thought it was reasonable to move ahead with the trial period, and encouraged support of the motion. Councilmember Witherspoon asked if the citizens would be able to use the deposit box as with the current utility bills. She thought it would be- a great benefit to citizens to be able to pay at least•two bills in one stop at City Ha l . City Treasurer Mark -Harris said that the two current drop stops in the:yaraye and outside the first floor lobby would take any envelopes which came in. He said that City Hall was currently getting some phone company envelopes and had been for years. The plan would be to drop both utility bills in the same slot and save 40 cents, and you're on your way. Mayor Eyerly commented that the action was for a 90 -day trial period to see how it would work out, and at the end of the trial period, staff would submit.a reanaiyzation for the Council. MOTION PASSED unanimously, Renzel absent. FINANCE AND PUBLIC WORKS G COMMITTEE UNANIMOUSLY RECOMMENDS RE COU ROPE THE CONTRACT F0T 600 000 WITH THE :IROCLl D GJ-ARN E , iRT- ST TTHA itt ' C UU T11Ti W FROM Tilt -CONTRACT W t TH NU L ffA'L R AM I F I SA - T IUNS WHATS EVER A_FTEn EYPENDING THE .1.1 5-R.1 15RASE I ; AN��� AT THAT POINT BOTH THE COUNCIL AND THE FINANCE AND PUBLIC WORKS ER K 717 MAKE A. DEC.L011 WF1EfHER To GO FORWARDOR NOT FINANCE AND PUBLIC WORKS COMMITTEE FURTHER RECOMMENDS THAT ,aEN THE CITY COUNCIL CONSIDERS PHASE II OF THE COGENERATION CONTRACT. E C NS D.:f;Lii H5 BUD E AMENDMENT WHICH WOULD TAKE A i"f iZDS HE COUNCIL AS WOULD PHASE I MOTION: Councilmember Fazzino for the Finance and Public Works Committee moved that the Council approve the contract for $600,000 with the ironclad guarantee from staff that the City could withdraw from the contract with no legal ramifications whatsoever after expending 540,000 (Phase I) ; .and, at that point both the Council and the Finance and Public Works Committee look at the project again and make a decision whether to go forward. FURTHER, when the Council considers Phase iI of the Cogeneration contract, that it be considered as a budget amendment which would take a two-thirds vote of the Council as would Phase I. AGREEMENT - CONSULTING ENGINEER SERVICES..,_ IN'CONNECTION WITH THE CITY OF PALO ALTO. - COGENERATION PROJECT AT THE REGIONAL WATER: QUALITY CONTROL PLANT - CH2M,. HILL, INC. RESOLUTION 5995 entitled "RESOLUTION OF THE COUNCIL OF THE CITY -OF PALO ALTO SPECIFYING CONDITIONAL APPROVAL OF ENGINEERING AGREEMENT WITH CH2M HILL, INC. 1 6 5 5 2/1/82 i 1 ORDINANCE 3330 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1961-82 TO PROVIDE AN APPROPRIATION FOR. DESIGN AND CONSTRUCTION MANAGEMENT SERVICES FOR A COGENERATION FACILITY AT THE WATER QUALITY CONTROL PLANT" Counci Imember~ Fazz in., deferred tc . Mr. Aghjayan for .discussion. Director of Utilities Edward Aghjayan said he thought that it was perhaps one of the most exciting projects that the City was involved in., It was a renewal resource heat recovery power gene eration project where the City hoped to use -both methane gas from the landfill .site as well as sludge fuel as a biomass. He knew of nowhere else nationally where a project using existing off - the -shelf technology, such as would be employed in this project, being used .in one composite project in such a cost effective man- ner. He said that while the entire engineering contract- would amount to over. $600,000, staff was interested in proceeding immediately with Phase I , . which was around $39,000. He said the intent of Phase -I was for conceptual design, preliminary design, optimization, review of options sand selection of final concept and design. Supervising Engineer and Project, Manager Frank Betley presented viewgraphs to show what the project was about. He said cogenera- tion could be defined as the generation of both mechanical and electrical energy such as steam and electricity from a single process thereby increasing the overall efficiency. He said that utilizing the waste heat of the present sludge incineration pro- cess generated steam and .subsequently electricity. The City presently incinerated its sludge and sold the ash, and would con- tinue to sell the ash, but intended to capture the waste heat presently being generated, cleaned and released into the atmos- phere, to generate steam and subsequently electricity. HP said natural gas would be saved by approximately 90% of ..what was cut- rently utilized, as well as generating a considerable amount of electricity. Mr. Betley said that this project was really three projects in one. He said one thrust of the project was to reduce natural gas fuel requirements for incineration. It was anticipated that the project, if irrrplemented, would reduce the consumption by approxi- mately 90 . He said that presently at the incineration plant there was sludge of 18% solids going into the City's incinerators Which was reasonable in the past when natural gas was relatively inexpensive. He said a.second thrust was to provide cogeneration by ut i l i z i ny the hot ,exhaust gases to generate steam and subse- quently electricity. eThe third thrust was to util.,ize.landfill methane for sludge combustion andJor electric power generation.` He said the City knew the least about that one, that preliminary. studies were done, but the first. phase of the engineering design. contract would address this in detail. Mr. Ayhjayan said that currently sludge was 18% solids and 82% water, and, under those conditions, as the plant was designed 10 years ago, the natural gas consumption which currently totaled $600,000 to $70.(,000 annually,' 90x= to 95% was used in drying off the water prior to the sludge burning. He said that by doing a , better job of dewateriny by putting in some equipment to do it, the sludge content would be effectively, raised from 18% to 25%. Then the sludge itself would become a fuel and would sustain the burning, and in effectwould become a biomass _fuel<. so that nearly all the consumption of natural gas could be. reduced. He thought there was a residual 8% or 9% use of._ natural gas and this was where the major savings from the project would result, bait, this was where the project was expanded to include a number of other things which would result in additional economic savings. Mr. Betley said that in the present incineration process, nat- ural gas was combined with sludge at 18% solids and poured into the incinerator. After combustion there was ash and hot gases which currently was -cleaned and sent into the atmosphere after it was cooled. He said the proposed system would decrease the natural gas consumption by 90% and the City would_ continue to have its ash output. The hot gases would go through a heat exchanger to generate steam, which would be put through a steam turbine thereby turning the generator and generating electricity. He said that at this time, no effect was seen on existing air quality. Regarding noise, it. was currently projected that it would be considerably lower than the existing noise levels during the present plant operation. Mr. Betley said that in the current incineration process approxi- mately 500,000 annual kilowatt hours were being used, : combusti rig was approximately 986,000 therms of natural gas (which included the sludge combustion as well as the drying of the sludge). He said there was no generation currently at the treatment.. plan. Under this project, staff projected that the City would use only 300,000 kilowatt hours of electricity which reflected the higher efficiency of the new equipment which would be installed, and natural gas consumption would be reduced to 95,000 therms --e approximately 90%. Further, he- said 5.6 to 12.5 million kilowatt hours of electricity would be generated annually, which' would equate to about 700 to 1,500 kilowatts of power dependent upon the scheme developed and how the landfill gas .alternative was utilized. Mr. Aghjayan said it was important to look at the economics in terms of a number of options including the no -project alternative. He said that to decide not to go ahead with the project .was a decision by itself because it would mean not building the facility and having to replace the centrifuges, which entailed costs. He said that if nothing was done, staff believed that over a 20 -year Tife the facility would run the City between $18 million and $19 million. He said there was a savings of about $15 million over a 20 -year life in the project. It was economically viable by the best estimates that staff could make today with the numbers they had, an.d staff would get better numbers as they went into Phase 1 of the engineeri:ig study, which was the reason for going forward at this stage. Mr. Aghjayan said that the Western Area Power Administration (WAPA) had reviewed the project, and had given the City an addi- tional one megawatt of energy as an allocation contingent upon going ahead with- the project. Their intent was to. encourage renewable resource projects and purchase the_ electric output from the particular project, which was what staff was .planning in this case. Mr. Batley said that the proposed contract called for estimated construction costs to be about $5 million, and with the contin- gencies and engineering fees, legal advice, financial and other construction, the total price was about $7.25 million, which was the basis of the tot:?l project cost. Ce;rnci lmember Levy said the first year savings - was shown to e $1,300,000, and elsewhere' t was shown at $118,000, and asked kir clarification. Mr. Betley responded that the $118,000 was .over and above the costs of amortization: of the total construction costs and, operating costs which were different from the no -action project. 1 6 5 7 2/1/82 1 1 Mr. Betley said that when the cost of the capital to construct the items (the amortization of the $7.25 million) were subtracted out from the $1.3 million, as well as the first year operating costs, the answer was $188,000. Counciliember Levy said the cost of the project was $7.25 million, which was for belt presses with cogeneration.' He asked what the annual savings would be from the $.7.25 million expendi- ture, and if an average savings would be about $500,000. Mr. Betley said that was correct. He estimated that the belt presses alone would save, in the first year, roughly $405,000. That savings would increase year to year as the cost of natural gas went up. He said that that savings was basically a reduction in natural yas costs. Mro fyhjayan said that he was uneasy about looking at the numbers as finite because they were only estimates. He said they were the result of everything staff had .done to date, but actually staff had no idea what the project would cost. It was unknown what the conceptual design would be because that was why they were proceeding on this contract. _ He said Phase 1 would put it in conceptual design, would optimize the design criteria, and select a design and come up with a .new project _estimate. At that time, they would yo over the entire project one more time, take a look at the alternatives, and how to proceed. .He said that based on all the numbers they had to date, the project was cost effec- t i ve from the first year out. He- commented that he had a lot of_ experience in looking at other kinds of generation projects from nuclear to coal to hydro, and that it was the most cost effective project he had seen- at this stage of study. Counciluernber Levy said he thought that they had two alterna- tives --one, to replace the belt presses with cogeneration; and, 2) to just replace the belt presses without cogeneration. He was not clear at this stage on the cost of each, or to the "annual savings of each. Mr. Ayhjayan said the best estimates of the life cycle cost of just plain belt presses showed that there were significant savings in just going to belt presses and doing nothing else. He said that if the City went to cogeneration, not including; the economics associated with the landfill gas option, there would be an additional savings of $3 million. He said they were talking about cash discounted present value numbers. He said the cost must be compared to savings when compared to the no -project alternative of $18,600,000 because that was the do-nothing approach. He said that was what it would cost the City to run that facility over -the 20 -year life cycle. He said that about $11' million would be saved by going to belt presses, and an addi- tional $3.1 million would;.be saved by going to belt presses with cogeneration, ,and another increment hopefully would be saved from going to the landfill gas option. He reiterated that all the numbers were guestimates at this stage. He was uneasy about making significant decisions and opinions about ,the project until the next stage was looked at. Mr. Betley said that the belt press with cogeneration with land- fill gas would be $7.25 million. He said the initial capital costs would be less than $7 million for this phase. Mr. Aghjayan said the economics were known with the landfill gas costs with:respect to the capital costs "because the City already had the contract with Getty, and the terms and conditions were known for delivering that gas. What was unknown was .how much 1 6 5 8 2/1/82 they had, or how it would have to be generated, the cost of gen- erating the energy from it, and what it would cost in the long run. Councilmember Levy said he was trying to get at a return on the investment.. He said the investment on belt presses with cogen- eration was something under $7.25 million, and he asked what the return would be on that $7.25;.million. Mr. betley said it would be the difference between the total over the 20 years between $18.6 million and $3.9 million. Councilmember Levy clarified -that if $7.25 million were spent, over 20 years, roughly- $15 million would be saved. For belt Presses_ alone', the- initial capital 'cost would be something less than $3 million, and roughly $11 Million would be saved. Councilmember Fazzino said that as he recalled, Phase I included an economic: feasibility component as well as. a cogeneration feasibility. Mr. betley said that basically all the numbers would be reviewed and revised. He anticipated they would all change --he did not know how sizably, but hopefully they would just get better. Councilmember Fletcher said she understood that if the City went ahead with the cogeneration aspect and the power generated was sold to WAPA, and the City received an allocation increase, there was a sum of money which could be attached which couldn't be pinned down because the City would need alternate power soon. The City would be getting inexpensive electricity from the Federal government in return for the cogeneration project for a longer period of time than would otherwise be recei ved'. She said it would save the City's investing in other power. Mr. Aghjayan said the City's current peak demand was 166 mega- watts. The City had contractual rights to 175 megawatts, which was two to three years of growth dependent upon how the City con- served. He said the additional one megawatt did not sound like a lot of power, but staff had already done an economic analysis of what one megawatt of WAPA power was worth. It wes estimated at a miniinuw t� be worth $2.2 million, and maybe :as much as $4.5 million. He said with the City's current growth pattern, one megawatt would probably take the .City to Marche . Councilmember Witherspoon noticed that staff would request the bond sale for sometime after Phase II; however, staff wanted as much flexibility as possible in the sale of the bonds. She' asked when staff would come back for authorization on the bond sale. Mr. Betlele responded that staff would like to sell bonds during the latter part of Phase I I . . He said- staff would have to come back to i,oundil with appropriate bond ordinances frame.bond counsel and other approvals which Were needed before they could ever sell bonds. Councilmember Fazzino commended Frank Betley for the outstanding job he had done on the project. He thoughtthetwo presentations were both outstanding and he deserved good thanks. He said there were many lingering questions ahead, and no one should think they were making final decisions tonight. He thought the proper approach was to Move ahead with _ Phase I, authorize the feasi;- b i l:Ry study, and tnen come back at the end of that time and evaluate the study, and make a decision whether to proceed, He 1 1 said the Committee was concerned that the previous contract would have the Council approve the entire contract, but with the power to veto the project once Phase I was completed. He said the Committee members were concerned that it -was an inappropriate way to proceed, and that the Committee would prefer to authorize. the $40,000 first, and theh evaluate the entire issue and approve Phase. II' and. III. He Said the Committee compromised with Mr. Ayhjayan and decided to move ahead with the entire project, but allow for a twoethi rds Council vote when the -issue was before them after Phase I. He said that despite all the compromises, the Council had a report before them from the City Attorney that said the Council could not do that. He said that the report stated that the Charter provided that no ordinance or resolution shall be passed or awarded without the affirmative vote of the majority of the Council, He said the Council had two options before them --either approve the entire budget amendment by a two-thirds 'vote and l inmit staff's authority to proceed beyond Phase I of the contract without Council approval by a majority votes or direct staff to. prepare a separate contract and budget amendment for the scope and cost of Phase I which would require an additional two-thirds vote on the remainder of the contract and funding when Phase I was completed. City Attorney Diane lee said. that it was the City Attorney's office analysis that a contract was a contract and a budget amendment was a budget amendment. The required votes for passage of a budget amendment were different than for the votes required to pass a contract, and the requirements were set by the Charter. She said the Attorney's office provided a sample resolution should the Council choose to go ahead with the entire contract whereby the Council would bind the staff to the resolution to return to- Council prior to authorizing any work beyond Phase I. Councilmember Fazzino felt that the concept was fascinating and exciting and thought that everyone wanted it to work. He did not think the City had begun to evaluate the engineering and economic considerations involved with development and completion of the project. at ANEiZDMENT: Councilmember Fazzino moved, seconded by Levy, that Council only.approve Phase le and that staff redo the contract for consideration of the entire project again by the Council at the completion, of Phase I. Vice Mayor Bechtel disagreed with 'Counci lrnember Fazzino's amend- ment and said it was discussed at some length during the Committee meeting. She believed that the Council had the control it : needed by adopting the proposed resolution that staff could not direct the consultants to continue -further unless they -had the express approval of the City :Council after Phase I . She did not support'the proposed amendment because -she thought the costs could go up substantially, and there was a great deal of staff time involved in negotiating a contract of this-_ magnitude. Councilmember Klein said :.he thought the- amendment would produce a waste -of effort ors staff's part, and did not see the gains as bei'ny very significant. He did not see 'the protection to ttlie __Council of a two-thirds vote. Mayor Fyer l y _ said the F&P.4 Commi ttee was split down the middle on the issue as to whether there should be six votes before Phase '-1I should yoahead. He pointed ,oat that if.: the contract attached to the report there were .two sections=which addressed, controls -staff had.: on-the.:contractor before they could go ahead- with Pnase- II. He said :that' on _:page 13,` the' contract said . that: the eCity Manager could terminate the contract upon 10 days' notice to -the consultant for any reason, and another section said that the con- sultant had to be in possession of written authorization from the City to proceed on any phase. He said there were two protecting clauses in . the project, and he hoped that the Council would vote against the amendment. Councilmember Levy supported the amendment because a tw.-thirds- vote was six people, and a majority vote was five people.'_ He had considerable reservations as- he analyzed the- project ---he would like to yo ahead, but wanted to make it clear that the Council -was talking about an ultimate commitment which right be $7 million. He thought the commitment -was substantial and did not want staff or Council to yet t -he feeling that .because they were satisfied to go ahead with an expenditure of $40,000 at this time, that-ln essence they. were saying to open the door to a' much more substantial expenditure. He waSe used to analyzing projects of this nature in terms of what the investment was now, and what the savings was now. Although the presentation was excellent, the numbers seemed to be hidden.- He was hearing that if the City simply added belt presses, the estimate was a $3- aril lion invest- ment and the savings were $11 million. If you go beyond that and added the cogeneration element-, then you spent another $4.2 million and the savings over 20 years was an extra $4 million. He thought the cogeneration element was quite marginal, and the belt press -element -was quite worthwhile. Mr. Ayhaayan said that the present value methods assumed costs with everything rolled into it. The savings of $11 million was -after the $3 million had been spent, and the savings .of $14 or $15 million was after the $7 million was spent. -- He said they did not subtract that out. Councilrnember Levy said he was happy to spend the $40,000, but wanted to make it clear that he did not —want -to go beyond that, without re-examing the project with a very critical eye. . .He would just as soon see the -Council have a two-thirds -vote rather than the normal majority vote. AMENDMENT FAILED by a vote of 6-2, Fazzino and Levy voting "aye," Renzel absent. AMENDMENT: Vice Mayor Bechtel moved, seconded by Witherspoon, the original Finance and Public Works Committee recommendation (second recommendation of Finance ano Public Works Committee replaced by Resolution). MOTION PASSED unanimously, R.enzel absent. ARCHITECTURAL REVIEW BOARD RECOMMENDATIONS RE UNIVERSITY AVENUE AND CALIFORNIA AVENUE PARKING ISSUES (CMR:132:2) Counci hnernber Fazzino said staff had recommended that they be allowed to prepare an outline of, a study for developing and analyzing new assessment formulas, a buy -in approach. to new. development and modifications to the zoning 'ordinance parking requi resents. He wanted the item to. return to Council,__ but wanted to see the Policy and,Procedures Committee spend some time with th.e issue. MOTION: Counci l member Fazzino moved, seconded , by Klein, that staff prepare a study analyzing new assessment formula and refer. to the Policy and Procedures Committee. 1- 6 6 1 2/1/82 Councilmember Fletcher asked from where the funding for the study would come. 1 Director of Planning and Community Environment Ken Schreiber said that most of the expenses incurred would be staff time; and, as such, he assumed it would come out of the Planning Department's budget. He said there would be need ` for some assistance from bona counsel, and some additional expertise perhaps in the assessment formula analysis area. He said the comments in the staff report were made prior to the receipt of the letter from CAADA, which presented a formula they wished to have pursued. If that formula appeared to be a feasible one, staff might be able to avoid much or al1 of that expense. He said staff wanted to return to the Council with at least an informational report indi- cating the general scope of work and what resources would be needed. At this point, he did not think an extensive amount of outside assistance would be needed. Councilmember Cobb asked if Mr. Schreiber envisioned that the study would include. any estimate of the total development poten- tial of the areas in question, and how the recommended assessment districts might be able to deal with the -total- development poten- tial. .if not, he wanted to see it included in the motion. Mr. Schreiber responded that he• thought the report wou-1d need to include those factors from the beginning, 'and did not think it was necessary to include it fn the motion. He said staff would need to look at the size of the properties, development poten- tial, which properties had a possibility for parking on -site, and how to- handle the properties without that possibility. Councilmember Cobb clarified with Mr. Schreiber that his state- ment "the full development- potential,". meant that staff would take a look at the existing zoning developed to 100% of its potential, and measure that against potential- parking -improve- ments. • -Mayor -Eyerly askew if the study would include the impact, if any, on current assessment district bond holders. He wondered if there was a new assessment formula would there be any impact on the buyers of the bonds in the original district in view of the charge in. formula= Also, within the•study, under. the old assess- ment district he asked if. it would be possible to include a com- . parison of assessment costs borne by owners of vacant property in the old assessment district versus the -Owners of developed prop- erty. Ms. Lee responded with respect -to Mayor Eyerly's first question, that any legal analysis t4 be done would have to address that question because all bonds had covenants wherein the obligations of existing bonds could not be impaired. She said that would be looked at very carefully. Mr. Schreiber said regarding the second question, that would go well beyond ,_:the scope of the study he was envisioning. He said if that was,to be included, it could be done, but right well take -staff beyond the point of in-house resources, pity Manager Bill Zaner said that if the assignment became as broad as it might, they might well have to ,dip into Assessment District funds in order to -find the resources to do - the study. Once staff went outside to bring people in to help, there were not sufficient resources in the General Fund. 1 6 6-2 2/1/82" Mayor Eyer]y-said he thouyht that on comparing the old formula, Mr. Schreiber had the assessment on valuation of a vacant lot. He said it would vary as to where it was on the property, but staff would have some idea how it :would generally run in the area. He was looking for some feeling as to what percentage of the money collected in the old assessment district had been borne by vacant lots versus developed properties, and had those people paid enough money that there were some reasons to preclude a -new type of assessment district. He was uneasy about people having paid on the old assessment and then being told .they could not use the old formula for parking, etc. He was not asking for a study that tried to tie it down to the last dollar, but he thought staff should be able to give some comments. Councilwember Cobb asked how long the study would take. Mr. Schreiber said that without the depth- or level of detail which may eventually be required -by the comriiunity, versus the full in depth study, it would probably take about three months for the non in depth study. He pointed out that in trying to sort how much time the study would take, there would be other projects which would not get.done in that time. ` Ellis Jacobs, 447 Cambridge, said he thought the empty properties on the California Avenue district had never paid a _penny for parking. He said all parking costs were borne by the occupied, built upon lots. Richard Bassin, 2300 Byron Street, said at the last meeting of the Downtown Palo Alto, Inc., it came to his attention that there was a dispute about whether there was enough parking in the down- town sector and California Avenue. He said obviously -there was not enough parking in downtown Palo Alto. Sorne of the proposal s brought to their attention were negative with regard to future development. He said that what had already happened was .that the marketplace was beginning to make its impact felt also in that stipulations and regulations for the developer to provide more parking were no longer needed because if you could build a building and' provide parking, higher rent would be received. He said that as a developer, he would be motivated if there was a provision that a developer put money into a fund that would pro- vide additional parking close to the bpilding, they would be more than willing to pay for some parking allocated for that par- ticular lot. He said it made economic sense to be able to_ premise his tenants some plate -next door where they could park. Councilraember Fletcher read a sentence- from a letter from the Architectural Review Board (ARB) which said,. "The types of developments Ooccerring are predominantly general business office/financial services which- had 'occupant intensity and day tuiie duration -characteristics most of the year and _then usually associated with retail area." She wanted the study to look. at the. passibility_ of a weighted assessment -dependent upon the building use. AMENDMENT: Counci lmember. Fletcher moved that the study explore the concept that office/financial service structures pay a pro- portionately higher fee into the assessment district than retail use. AMENDMENT FAILED FOR LAS: K OF A SECOND. Counci lmemi er Fletcher said she was concerned because the ARB pointed out that when there was development of office .buildings, there was a tendency for commuters to park in the area for the entire business day. 1 6 6 3 2/1/82 1 1 1 Councilrrrember Fletcher said that retail establishments did not have that characteristic. They had people coming and going all the time. She said another problem was that in the commercial areas, the Council said they encouraged residential structures, but yet residential developments were not included in assessment districts, and they had to provide parking on site, -and there- fore, was a much greater expense for them. She thought it was a disincentive to provide residential developments. -AMENDMENT: Councilrnember Fletcher moved, seconded by Levy-, that the study. consider the possibility of including residential structures in the Assessment District. AMFNDMErT PASSED by a vote of 7-1, Fazzino. voting "no," Renzel absent. Councilnrember Fletcher said that in the past when she had sug- yested that the.Assessment Districts fund bicycle parking facili- ties, she was told that the formulas did not allow it, and public funding was, looked for to fund bicycle racks and lockers. AMENDMENT: Councilmember Fletcher moved, seconded by Levy, to include funding for bicycle parking facilities in the assessment formula. AMENDMENT PASSED unanimously, Renzel absent. MOTION AS AMENDED PASSED unanimously, Renzel absent. PARKING LOT ACQUISITION - CALIFORNIA AVENUE ASSESSMENT DISTRICT - i4UKI MCL URL i [.MK :'1 Lb : Real Property Administrator Jean Diaz commented that the California Avenue Assessment District's situation, because of the particular acquisition, was of particular importance to resolve. He recommended delaying acquisition until the problems could be resolved with the particular situation on California Avenue. He said it was important to proceed expeditiously because the property was unencumbered now, the property owners or developer could sell it or develop ifi subject to existing con- straints. He said there was a sublease which currently ran until September, 1983, which provided some protection against develop- ment or possible sale although it was still a possibility that something could happen to change the use of that existing parking lot. touncilrner:rber Witherspoon said she noticed that staff had recom- mended against trying to obtain an option because it would take so :much staff time, but she did not understand why it would take so "much staff time to write a simple "option. Mr. Diaz responded that if the City automatically came to terms of agreement upon the sale, then working out an option might not. be that much of a problem. Drafting the document eras not .time- consurniny--negotiating. the terms of that document could be. Counciluremoer Witherspoon asked if the City could tie up the property with an option, and negotiate the sales price later. Mr Diaz said that usually it went hand -in -hand. He said the City would have to pay for the option --there Was no way around that --and that provision would have to be negotiated. Further, the City had to ascertain from where that money would come before the Assessment District financing questions. were answered. ,;-He said it would require some non Assessment District_ financing to purchase that option. Councilmember Witherspoon said she could not believe that an option for a six-month period would be that expensive and/or would require the price to be negotiated. She was concerned that if this was as -key a lot as everyone:on California Avenue seemed to believe, it was foolish not to tie it up if possible for a Imrinimurn of money and time. Counciimernber Cobb said that if the study would take three r+ -months, it would take as long as six months before the Council really had anything to act. upon,- or was in a position to deal with the property. He asked how likely it was that the property could be sold for development in the next six months; arid, if it was sold for development, how many __other options did the City have for an appropriate parking structure in' that area. He said that if the City's options got too narrow, he thought Council - member Witherspoon's point was all the more important, Mr. Diaz said that the existing•lease which affected the property which ran until September, 1983, from his review looked to be a favorable lease for the tenant. Therefore, it was rrot 1i.kely that the tenant, without some significant buy-out provision from the lessor, would,be willing to a modification to terminate that lease .early. He said that added some protection for the City ayainst sale and/or development of that particular property although there was no guarantee: Something could happen to change the economics and some development orr sale could take place. Mike Col ich, 366 California Avenue, member of the Board of Directors of the California Avenue Area Development Association, and Chairman of the Parking Committee, said that some 30 years ago, the Chamber of Commerce appointed a Citizens Committee, and several months later, Mayor Mitchell reappointed that particular Citizens Committee to act for the City. He said that after sev- eral years of study, their parking district was formed, and in 1955 they acquired their first off-street parking. He said they had been diligently working year after year pursuing additional parking. He said they had purchased property on an E -Bond, which was based on the assessed value of the property. He said that covered all properties -.-vacant properties, improved properties,. and nonprofit properties. .Then, when they were to develop the parking garage, they encountered a legal snag which said that the E -Bona would not function any longer, and that they must go to a G -Bond. He said they worked very closely with Ken Jones and devised the ti -Hord, whicn eliminated the necessity 'of vacant property paying or unimproved property paying or nonprofit prop- erties paying. He said they paid as much as $3 per $100 assessed value at one tinge, and paid dearly for. gfling on 28 years, and are now approaching a new idea which` had been talked about for 'five or six years. He said the ti -Bond was not the bond they desired because of the` i negi i ty for those who had been ° paying for 27 year's. When the CC zone: was on gi sated about two years -ago, it allowed a -.person to. build up to 50 feet,- _ and allowed that comrner- vial, such as- stores and offices, oapartMents or condominiums, could;, be Combined. He said that consequently in --the last two years, the price had jumped 500%4- He _said that when CAADA first tried. to, acquire the 'lcLure property,:it was worth $165,000 and now it was appraised at $886,-000. He said a: new system ..was needed to purchase the property. CAADA -recommended that the G -Bond' should now _be` spread 50% on 'all land, and the other 50% on conunercYa1_ property because ;vacant and underdeveloped properties had an advantage for many ,years and paid very ti -tale_ into the parking district while the developed properties had been paying and carrying the load. He said CAADA thought the first floor should be eliminated from the parking. district from any addi- tional parking requirements; however, the second and third floors should be about 50% to be acquired either on -site or in -lieu . payments into the parking district. The fourth and fifth floors,, - should require a developer to provide 100%. He said CAADA felt that would be equitable, _and if a developer was unable to provide the parking aon the lot site,- then the money should' go into a central fund, interest bearing, which would provide future development of the properties plus any parking structure. He said the McLure property was the last one to be bought in the parking district, and the reason for, buying it was that they had a 100 foot lot adjacent to the post Office, and this was 150 feet and would allow a parking structure to be built. Without the lot, a parking structure could not be -developed in that -'par- ticular lot. He .said CAADA had made Co -Op a promise that they would buy the property and had endeavored for five years to obtain it. CAADA wanted the property, but wanted it on a fair and equitable basis. Regarding the option, CAADA did not feel an option was necessary at this time because they did not feel the lot would be developed --trey felt the tenant -had a long enough lease to afford protection. He said that if a purchaser or developer should come in at $886,000, God bless him, but he did not think it would happen. - If so, it could be condemned. Counci imember Levy said he was confused because he thought there were two issues. One, whether the $800,000 was a fair price for the property; and two, how should the California Avenue area properties be assessed in order to pay for the purchase. He asked if they were two separate issues. Mr. Diaz responded that they were two separate issues, but not necessarily two separate problems. He said there was a concern about the high .price tag on the property, and there had been recent changes in zoning which increased the development poten- tial. When that happened, the value of the property increased as well. He thought it was clear that $800,000 was the value, but didn't think the people in the Assessment D-istrict, although they were concerned about the high f.i eure, disagreed with the figure. As he understood the correspondence and discussions, the concern was how it would be paid. In the past, the feeiihy was that applying the East traditional assessment district financing would be inequitable to the existing people within the Assessment District and they were searching for .a more equitable way of sharing the costfor the acquisition. Councilinember Levy asked if it was possible to buy the property without determining finally what the assessment formula would be for the district. Mr. Diaz said that would require some commitment on the part of the City that should tae Assessment District not go through, the City was willing to absorb that cost. Councr lmendber Levy said he didn't understand clearly the issue about the $800,000. If that was the fair value of the property, did the City have any alternative but to pay the price if it wanted the property. Mr. Diaz said that was why he didn't think it was an _ issue. He seic; the fact that it was very valuable was a concern, but didn't think that was the problem at issue now. The problem was how to equitably pay .for it-. Councilmember Levy said he thought the city was taking a risk in waiting 1-1/2 years or._ whatever to. resolve the other questions. He didn't understand how the existing 1-1/2 year lease provided much of a safeguard because any buyer _could come in, accept the lease for 1-1/2 years, and buy the property, and after 1-1/2 years, the buyer had it free and clear. He thought that if the City wanted the property, if it was indispensable to the City, and if $800,000 was the price, either.`the City could fish or cut bait at that price. Mr. Diaz said he thought the problem was that the Assessment District did not want to proceed and commit for that acquisition under the traditional Assessment District financing. The Assess- ment District was searching for a more equitable way of sharing the cost as part of development of the Assessment District. Without the new formula in new Assessment District for the acqui- sition, the support for the acquisition was somewhat less. than with an equitable spread. He said that presumably in the 1-1/2 years, the City would be going through the analysis and have the conclusions and a chance to develop the new Assessment District to tweet the needs of those within the Assessment District, pro- ceed with the acquisition, and tie up the property before the existing lease expired. Counci lmember Levy said that brought them.back to the concept of an option while the City was going through the process. Mr. Schreiber said that —the CAADA representatives had indicated very clearly that they wanted an alternative to the traditional U -bond approach. He was concerned that while the City had a proposal from CAADA as to a new Assessment District formula, there might be all sorts of problems which arose in working out the details of it. He did not think the City could count on the fact that the Assessment District would accept the new formula. MOTION: Vice Mayor Bechtel moved, seconded by Fazzino, to adopt the staff recommendation: 1) Rescind the November 3, 1980 direc- tion to staff to acquire parcels 124-28-37 and 124-28-38; 2) Direct staff to return to the Council with an .outline of a staff study of the issues identified in this report along with an indi cation of the time needed for the study, the impacts on other staff assignments, and an -estimate of the costs of obtaining the services of an assessment formula expert, and.. referral to Policy and Procedures Committee. Ellis Jacobs, 433/447 Cambridge, commented that the "pres€nt payers of the parking district of which he was one would abso- lutely refuse to pay $886,000 in a new assessment on .the old line. He" said it would be impossible for -them to do it; -there- fore, if there was not a new formula, they would not buy the lot. 1 f so, they -would buy it at any price. Richard Bassin, 2300 Byron, asked if the lot was purchased, was there any guarantee a parking structure would be built. Mr. Diaz responded that the project as contemplated to date involved acquisition and only very minor improvements to what existed. If there was to be a future project for a parking structure, that financing would have to be discussed separately. Mr. Bassin asked if it could be used for a parking lot now in its present condition. Mr. Diaz responded that it was. Councilmeinber Cobb commented that he would support the motion because he thouyht that unless the people :who were in the Assessment District were willing to back up the alternative, he didn't think the Council had any choice but -to go down that road. He hoped that the Council would initiate the staff studies and whatever else had to be done as expeditiously as possible. He didn't want to see the option lost if it was a danger. Mr. Schreiber noted that the study in the second part of the :notion was the .same study as in the previous item. He understood that this item would be referred to -the Policy and Procedures Committee, Councilmember Levy said he would _oppose the motion because he thought nothing had -been done over the past couple of years but talk about the short fall in parking. He said this was the last lot--available--to acquire in the California Avenue area, and there was a .double whammy because if it was not acquired and it was developed; it would create more of a parking problem. . He thought it was important to acquire it, and if it was done at its fair market value, and for some reason which he could not foresee, it was found to be impossible to come eup with a formula that people would buy into; he thought it -could be sold out on. the open market and the chance of loss would not be great. He thought the Council was taking a very great risk in procrastinating because. it would, take a number of months to approve the -study and the new formula, and he.did not want to lose the property which he understood to be a very significant aspect of the California Avenue development. MOTION PASSED 7-1, Levy voting "no," Renzel absent. COUNCIL ADJOURNED TO EXECUTIVE SESSION RE LITIGATION - 9:40.1.m, to 0:20 p.m. ORDINANCE TO AMEND PALO ALTO MUNICIPAL CODE TO PROVIDE FOR AN EXTLNDED FILING PERIOD IN FILLING VACANCIES ON CITY BOARDS AND th MtISSIGNS MOTION: Councilmember Cobb moved, seconded by Klein, approval of the following ordinance for first reading. ORDINANCE FOR FIRST READING entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING CHAPTER 2.18, CHAPTER 2.2.0, CHAPTER 2.22, CHAPTER 16.48 AND CHAPTER 16.49 OF THE PALO ALTO MUNICIPAL CODE TO PROVIDE FOR AN EXTENDED FILING PERIOD IN FILLING VACANCIES ON CITY BOARDS AND COMMISSIONS AND TO PROVIDE A PROCEDURE FOR FILLING VACANCIES ON THE HISTORIC RESOURCES BOARD" MOTION PASSED unanimously{, Ren±el absent. GRANT FROM CALIFORNIA STATE ARTS COUNCIL IN SUPPORT OF PALO ALTO 4 . N i . I . Mr. Zaner said that as was indicated to the press, there were. some questions raised with regard to financial propriety, and_. staff found no impropriety 0 any kind --no funds were misused or misallocated. Staff thougght the project was a good one and one which would benefit the community, and recommended its adoption. ;MOTION: Counci lmembcr Fazzino moved, seconded by Fletcher, to 1) adopt the resolution - acrepti ng the State Arts Council Grant of 4,49t for the Creation Location program; a,nd 2) adopt the budget. _. amendment incorporating -the State Arts Council Grant funds into the 1981-82 Arts and Sciences Division budget. 1 6 6 8 2/1/82 RESOLUTION 5996 entitled "RESOLUTION OF THE COUNCIL OF THE CITY ()F PALO ALTO ACCEPTING GRANT FROM CALIFORNIA ARTS COUNCIL FOR 'CREATION LOCATION' PROJECT OF THE PALO ALTO CULTURAL CENTER" ORDINANCE 3331 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALL ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1981-82 TO PROVIDE ADDITIONAL FUNDING FOR VISUAL ARTS AND 10 PROVIDE FOR RECEIPT OF REVENUE FROM THE CALIFORNIA ARTS COUNCIL" MOTION PASSLU unanimously, Renzel absent. REQUEST OF MAYOR EYERLY AND COUNCILMEMBER FLETCHER RE DUMBARTON Councilmember Fletcher .said that the Dumbarton Bridge was ' just about to be put into operation, and with its opening, the City could expect more traffic. She said 'that one mitigating factor might be to have some good service supplied on the bridge. MOTION: Councilmember Fletcher moved, seconded 1py Eyerly, to direct staff to consult with Santa Clara County Trans i t District staff and urge County Transit to commence immediate' planning for bus service across the Dumbarton Bridge. Staff might suggest that County Transit staff consult with SamTrans, AC Transit and the Santa Clara County Manufacturing Group and large industrial companies in Palo Alto on how to best serve the transit needs of cross -bay commuters. Councilmember Cobb said- he thought that either, the City or the Transit District should work directly with specific large indus- tries in the area because he nought the demand could be created and have it happen a lot faster. Councilmember Fletcher responded that Santa Clara County routinely worked with the industries to promote their bus ser- vice. She was hoping for some initiative on the part of the industries to set up shuttle services and van pools to the bridge itself. Counci1m'mber Witherspoon asked why Councilmember Fletcher did. not suggest going first through MTC. Councilmember Fletcher responded that MTC did not do . the actual planning. She said MTC was the body through which the fuiding` was allocated. Councilmember Councilinember Witherspoort thought that politically if the City was going to ask for State funding or an "ok" from MTC, it world not hurt to go to therm at the same time. Councilmember Levy asked staff.:what they were going to do, and how much tirrie.it would take. Mr. Zanier said staff's initial step would be to touch bases with those agencies listed in the memorandum and to try and devise a plan of action which made sense in terms of putting a program together. He thought that MTC, while they , were not directly involved, in the process, was the financing mechanism and they would be kept advised. He said he thought -staff would return to Council with some brief outline of how they would approach the project and how much time it` would' take. Councilmember Levy said he thought that was fine, and on that basis would approve the -motion. He felt this was not something the City of Palo Alto should be lead agency for, and assumed it was -not looked upon that way. He thought the Mayor could send a letter urging that Santa Clara County Transit District be certain to consult the agencies listed, and urging them to cover all bases and letting them know of Palo Alto's grave concern on the Dumbarton bridge's total traffic picture. He thought that asking City staff to do much more than that was not a good use of their energies. Mayor Eyerly .said it was apparent to him and Councilmember Fletcher, in meeting with East Palo Alto and discussing the Dumbarton Bridge,; that there was a minimum of service- planned at this time ,by Santa Clara County Transit across the Bridge, and nothing planned by SamTrans at all. He said some approach had to be arranged to see that proper public transportation took place. The bridge would be open this year with only the current off ramps. He .said the other off rariips were a couple of years down the road, but it was now necessary to have some pressures put on the agencies so that the planning was started and proper trans- portation given. He thought staff would look at the assignment and analyze where they could help and how they could do it with out trying to get into the main part of the act. Mr. elaner said he thought that simply contacting the County and urging theft; to move would not result in the service desired. He said the County had a number of priorities in transportation, and the Dumbarton Bridge was not one of them at the moment in his opinion. He said that if this City Council was serious about bus traffic across the bridge, it would take some additional effort. He believed it was a worthy goal, and thought staff could make a contribution, but it would not occur simply by an exchange of letters. MOTION PASSED unanimously, Renzel absent. R 'VEST OF VICE MAYOR BECHTEL AND COUNCILMEMBER FLETCHER RE AB ub R_ S �� �1" s 1 �' L!* IN -RENAL HOUSING) Councilmember Bechtel said that the Mid -Peninsula Citizens for Fair Housing polled apartment. complexes to determine how many would accept children under 15 years of age. She said they were alarmed at the reduction in the number of units that would allow children. Last year, 25% allowed children under 15 years --this year only- 14% allowed children under, 15 years. She said both fiyures were bad, but 14% was much worse, and with an apartment vacancy rate of less than one percent in Palo Alto, it made it almost impossible for families with children to find apartment housing. She said AB 256, which would make' it illegal to dis- criminate against children in rental housing, would be heard by the State Senate soon MOTION: Vice Mayor Bechtel moved, seconded by Fletcher, that Council reaffirm support for AB 256 and authorize the. Mayor to send a letter to the State Senate and area legislators indicating this strong support. This letter should be turned to -arrive shortly before the bill is to be heard. Mayor Eyerly asked about any cases which -might pre-empt the bi 1 l at this time. City Attorney Diane Lee said she did not think there was any litigation which would affect the particular bill. She thought the courts were hoping that the legislature would resolve the problem for them because there were inconsistent court decisions all . over the map on the issue of pre-emption. Obviously, a bi l l such as this would address the issue on a statewide' basis and obviate any questions on pre-emption. . She said there was a case. in Santa Clara County, Sail Jose Country Club Apartments vs. Santa Clara Countj in which .a ,local. judge` enjoined enforcement of the County of Santa Cl ara's ordinance based on pre-emption under the Rumford and Unruh Acts. She said there was;, also - the Wilson case in which the court found against Mr. Wilson who argued that he carne within ._,the provisions of those -acts _ and, the-refore, the acts of the landlord in evicting him because he had a child violated 1 6 7 0 2/1/82 those acts. She said that case was presently at the Supreme Court, and the San'Jose Country Club Apartment case was currently at the Court of Appeals. There was a real , inconsistent web of iitiyation all over the State on.that issue, and legislation like this would help clear up the tangle. She said the Courts were sort of holding these things right now .hoping that the legisla- ture would do -something. Councilirrenber Levy commented that Program 2b under the Housing Section of the Comprehensive Plan says "To adopt an ordinance prohibiting age discrimination in rental housing specifically including discrimination -against households with children." He said the City had -sort of suspended action on that program awaiting the untangling, and this was probably the most direct way to accomplish it. Ms. Lee suggested that particularly ein this County, when, the judge who would hear this ruled against the County's ordinance, it would not be prudent ,for the City to do anything and hope that the State would act and pass the legislation. Counci lmember Cobb. asked if AB 256 made any_- exclusions such as -owner-occupied dinits. Ms. Lee said she thought it did --exclusions which came to mind were senior citizen complexes and mobile home parks. She said it just included rental housing so it would not apply to owner -- occupied. Counci imember Cobb gave examples of exclusions he would include if he were drafting the ordinance on the City level. 1) Owner - occupied when the owners rented out a portion of their house, which was something that was happening more and more. 2) Tem- porary rentals where the owners would be returning; and 3) duplexes where the families you rented to would be your next door neighbor. Ms. Lee said she did not see anything which related to Council member .Cobb's concerns. Lucy Tyler, 55 Newell Road, represented Mid -Peninsula Citizens for Fair }lousing, and said that 83% of the apartments said they would not accept children 9.2% would accept some; and 7.8% would accept all children. Counc t l r;.ember Fletcher commented that in Palo Alto , -there were no apartments that would take children on any unrestricted basis. They had to be a certain aye or could not be more than one. Bob Moss, 4010 {lure, said he strongly supported the motion. He thought that the discrimination against children in not only rental housing, but all housing in the County and in Palo Alto was completely out of hand. He said his oldest daughter had a difficult time finding housing that would rent to, her with children,- and with the average house in .the County selling for over $100,000 an income of $40,000 or more was' needed to afford, thee, which mean, that most young couples were essentially out of the market. He did not know what kind of a community Palo Alto would be i f children were prevented from living here'. He thought it was weird that people with dogs and cats had less trouble finding housing than people with 'children. He .thought that f any governmental body which -allowed people with children to be dis= criminated against at a greater level than people with pets was way -off bane. He --'urged that the :Counci f adopt the housing policy and prohibit discrimination against jaMilles Oth children. F urther', he disagreed with -Counci lmernber Cobb and saw no point 1n exempting single-family ho.mes- where the owner was not in resi.- dence. If that` -were true, when he' first moved to Palo Alto, he rai oht not have been .-able to rent the house he did._. . - 1 6 7 1 2/1/82 Counciirnember Fazzino reiterated that it was incredible to him that Palo Alto spent so much time crying about school closures and reduced services for children and loss of families while at the same time allowing discrimination against children__ to continue in such a widespread manner. He would not support any exemption from anti -discrimination laws in Palo Alto. He was disturbed that the Council was getting to the point where they simply would allow those people between 21-50 to live in the community because the.)e caused fewer problems than those who were younger and those who were_ older. Any thought- of di scri,mi nati on was incidious and he strongly urged support of the motion. Cuuncilmember Fletcher said she thought a 44% reduction in the school population over the past few years was incredible, and it was rising every year. She related a story of a young man who had gone through a di vorce and that during the summer he -had had hi s child visit hir'fare two weeks, and the landlord told him he was evicted. She said she had a - friend who was divorced and even though she did not have her child living with her, when she went to look for a place to rent, the manager would automatically say do you have any children because they did not want children even visiting. She thought it was outrageous that people cold not find places to live purely because they happened to be a family person. MOTION PASSED unanimously, Renzel absent. REQUEST OF COUNCILMEMOER KLEIN RE NAMING OF PALO ALTO'S DELEGATES • t L. _ R. • I N _ • MOTION -t - Counci lmernber Klein moved, seconded by Witherspoon, to nave the Mayor and Vice Mayor as official representatives to the 450th Anniversary Celebration. MOTION PASSED unanimously, Renzel absent. ADJOLOOMENT Council adjourned at 10:45 ATTEST: p.m. APPROVED: