Loading...
HomeMy WebLinkAbout1981-08-10 City Council Summary MinutesCITY COUNCIL MINUTEs Regular Meeting Monday, August 10, 1981 CITY OF PALO ALTO ITEM PAGE Oral Communications 1 1 3 0 Approval of Minutes 1 1 3 0 Special Orders of the Day 1 1 3 1 Resolution of Appreciation to Michael Kass for Outstanding Public Service as a Member. of ..the Human Relations Commission Appointment• of a Human Relations Commission Member to Fill the Unexpired Term Ending December 31, 1983. Consent.Calendar - Referral Consultant Selections for 1981-82 - Referral to Finance and Public Works Committee (Continued from 7/27/81 Council meeting) Consultant Selection for Baylands Bicycle/ Pedestrian Path - Referral to Finance and Public Works Committee Consent Calendar. - Action Resolution to Amend the Municipal Fee Schedule to increase the fee for the . Palo Alto Munici- pal Code Ordinance Authorizing the Northern California Power Agency _ to issue Revenue Bonds Ordinance re 185 Bryant Street from RM-1. to RM- 2 Ordinance re Lucas Lane from PF to CC and CS Agenda Changes, Additions: and Deletions. Condominium Conversion Ordinance (2nd reading- continued from 7/27/81 Council meeting) Public Hearings Crescent Park II Underground Conversion Request of Vice Mayor Fletche Medfly Control Proposed Ramp Metering:. -on 101 1 1 3 1 1 1 3 1 1 1 3 2 1 1 3 2 1 1 3 2 1 1 3 2 1 1 3 2 1 1 3 2 1 1 3 2 1 1 3 2 1 1 3 3 1 1. 2 .8 8/10/81 ITEM PAGE Mayor Henderson re Date for Meeting with Korn - Ferry re City Attorney Recruitment Adjournment to Special Joint Session With Planning Commission - Arastra Property. Study Draft Report 1 4 7 1 1 4 8 Final Adjournment 1 1 5 7 ,. 1 1 2 9 8/10/81 Regular Meeting Monday, August 10, 1981 The City Council of the City of Palo Alto met on this date in the Council Chambers at City Hall, 250 Hamilton Avenue, at 7:40 p.m. PRESENT: Bechtel, Eyerly, Fazzino, Fletcher, Henderson, Klein Left at 9:00 p.m.), Levy, Renzel, Witherspoon Mayor Henderson announced that the Council would be forced to adjourn by about 11:30 p.m. due to the aerial spraying of.. Malathion which would commence shortly after midnight. ORAL COMMUNICATIONS 1. Albert Davis, Craig Hotel, Room 210, 164 Hamilton Avenue, re policy of Palo Alto hotels of not allowing a monthly rental rate to the disabled, elderly retired, retired military veterans, disabled military veterans, welfare recipients., and handicapped, and its possible relationship to involuntary slavery. He said that the hotels only allow daily/weekly rates which meant that one ended up paying far more than if one were paying on a monthly basis. 2. David Blumenthal, 1766 Willow Road, #210, Oak Creek, read a letter into the record which is on file in the City Clerk's office, re Oak Creek Conversion/lifetime lease. 3. Scott Carey, 180 University Avenue, said that the contents of the letter which Mr. Blumenthal read into the record were included as a condition to the tentative map granted by the Council. 4. Louis Fein, 1540 Oak Creek Drive, said .the Council had approved a tentative map for Oak Creek conversion which -included a condition of a lifetime lease to unmentioned Specifications. Mayor Henderson suggested that City Attorney Don Maynor prepare a brief report recapping the entire issue in the next week or two. MINUTES OF JUNE 1. 1981 Vice Mayor Fletcher submitted the following correction: Page 8511, 1st paragraph should. read: "Vice -Mayor Fletcher commented that the history of tare law, as she understood it, was that there was a legislator who received a speeding ticket which he claimed was a speed trap. Thereafter, the legislator set about e-liminating speed traps. Approximately 1-1/2 years ago amendments were made . to the law to exempt certain neighborhood streets..." MOTION: Councilmember Witherspoon' moved, seconded by Fletcher, approval of the June 1, 1981 minutes as corrected. MOTION PASSED unanimously., MINUTES OF JUNE 8, 1981 Councilmember RenZel had a correction on page 878, fourth para- graph from the bottom, second -,l line, should, read, "or such other roadway improvements as may be acceptable to Council..." MOTION: Councilmember Fletcher - moved, seconded by ' Klein, approval of the June 8, 1981 minutes as corrected. MOTION PASSED unanimously._ 1 1 3 0 8/10/81 SPECIAL ORDERS OF THE DAY MOTION: Vice Mayor Fletcher introduced the. following resolution and moved, seconded by Fazzino, its approval. RESOLUTION 5948 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO EXPRESSING APPRECIATION- TO MICHAEL KASS FOR OUTSTANDING PUBLIC SERVICE AS A MEMBER OF THE HUMAN RELATIONS COMMISSION" MOTION PASSED unanimously. Mayor Henderson presented a framed resolution to Michael Kass. APPOINTMENT OF A HUMAN RELATIONS COMMISSION MEMBER TO FILL THE Mayor Henderson read the list of applicants: Harry W. Anisgard, Sidney Blumenfeld, Mary H. Burns, Diana L. Diamond, William C. Empey, Maida Fong, Douglas A. Haslarn, Randal B. Hopwood, Iris S. Karol, Michael Kr onstadt, Mary Payton Minkus, Jules G. Moritz, dr., Agnes C. Robinson, Sylvia J. Smitham, Florence G. Sund. City Clerk Ann Tanner read the first round of voting results as follows: VOTING FOR KOROL: Bechtel, Fazzino, Klein, Eyerly VOTING FOR ROBINSON: Henderson, Fletcher , Renzel VOTING FOR MINKUS: Witherspoon, Levy Ms. Tanner read the second round of voting results as follows: VOTING FOR KOROL: Fazzino, Klein, Eyerly, Bechtel VOTING FOR ROBINSON: Henderson, Fletcher VOTING FOR MINKUS: Witherspoon, Levy, Renzel Ms. Tanner read the third round of voting results as fol 1 ows:. VOTING FOR KOROL: Eyerly, Klein, Bechtel VOTING FOR ROBINSON: Renzel, Fletcher, Henderson, Fazzino VOTING FOR MINKUS: Levy, Witherspoon Ms. Tanner read the fourth round of voting results as follows: VOTING FOR KOROL Eyerly, Witherspoon VOTINGVOTING FOR ROBINSON: Fletcher, Renzel, Klein, _ Henderson, Fazzino, Bechtel VOTING FOR MINKUS: Levy Ms. Tanner said that Ms. Robinson had six votes and was appointed. Mayor,; Henderson cong,atulated Ms. Robinson and welcomed her the )roman Relations Commission (HRC), 1 1 3 1 8/10/81 0 Councilmember Bechtel said she thought it was a difficult choice for the Council because there were 15 good applicants* and as a Councilmember she appreciated all of the applicants who were willing to volunteer their time to serve on the HRC. : Mayor Henderson thanked all the applicants. CONSENT CALENDAR Councilmember Renzel removed item 5, Proposed ramp metering an 101 by CalTrans. MOTION: Mayor Henderson moved, seconded by Fletcher, to remove item 10, Contracts for Health Resources Coordinators, and ,that it not be considered. MOTION PASSED unanimously. MOTION: Vice Mayor Fletcher moved, seconded by Fazzino, to approve the consent calendar as amended. Referral CONSULTANT SELECTIONS FOR 1981-82 PUBLIC WORKS COM1TTtE 'Continue REFERRAL TO FINANCE AND PATH CONSULTANT SELECTION FOR BAYLANDS BICYCLE/PEDESTRIAN ORAL TO FINANCE AND Action RESOLUTION TO AMEND. THE MUNICIPAL FEE SCHEDULE TO INCREASC. THE RESOLUTION 5949 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO. AMENDING THE MUNICIPAL FEE SCHEDULE TO INCREASE THE FEE FOR THE PALO ALTO MUNICIPAL CODE AND SUPPLEMENTS" ORDINANCE AUTHORIZING THE NORTHERN CALIFORNIA POWER AGENCY TO MIT -REVENUE . Bans (C RR :3134 :1) _ Staff recommends that the City Council approve the .ordinance, thereby giving NCPA the ability to issue revenue bonds for its Geothermal Generating Unit Project #3, ORDINANCE FOR FIRST READING entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AUTHORIZING THE NORTHERN CALIFORNIA POWER AGENCY TO ISSUE REVENUE BONDS (SHELL_EAST BLOCK PROJECT -SECOND PHASE BONDS)" ORDINANCE RE 185 BRYANT STREET FROM RM-1 TO RM-2 : '2nD READING ORDINANCE 3293 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 18.08.€140 OF THE PALO ALTO MUNICIPAL CODE (THE ZONING MAP) TO CHANGE THE CLASSIFICATION OF PROPERTY KNOWN' AS 185 BRYANT STREET FROM RM.-1 TO RM-2" (Ist reading 7/20/81, Passed 8-0, Fazzino absent) ORDINANCE RE ° LUCAS LANE FROM P-: ` TO CC and CS 2ND " READING) 1 1 3 2 8/10/81 ORDINANCE 3294 entitled "ORDINANCE OF THE COUNCIL OF ')TE- 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 LUCAS LANE FROM PF TO CC AND CS" (1st reading 7/20/81, Passed 8-0, Fazzino absent) MOTION PASSED unanimously. AGENDA CHANGES ADDITIONS AND DELETIONS City Manager 8i 1 1 Zaner said item 5, Proposed Ramp Metering, would become item 13-A. Mayoe Mender son said he. intended to discuss two other items, one concerning signatures on the, ballot arguments, and one to schedule a meeting with Korn -Ferry and Company. CONDOMINIUM CONVERSION ORDINANCE (2nd Readingg - continued from /81, C o u r3 c i 17 me _.`" - _ MOTION: Mayor Henderson moved, seconded by Renzel, second reading of the ordinance. ORDINANCE 3295 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING - CHAPTER 21.40 OF THE PALO ALTO MUNICIPAL CODE REGARDING CONVERSIONS TO CONDOMINIUM AND OTHER COMMUNITY HOUSING" (1st Reading 7/13/81 - Passed 5-4, Eyerly, Klein, Levy, Witherspoon voting 'no.") Louis Fein, 1540 Oak Creek Drive, urged the Council to add three items to the ordinance. 1) In the text of the lease, rent con- trol, as well as a particular statement which would be equivalent to Article 16, which was the subject of controversy on the Oak Creek matter. He did not think that what was happening at Oak Creek should be allowed to happen again. He felt the ordinance should include language making specific the conditions Under which a tenant could be displaced. He recommended that the text be substantially the same as that suggested by Mr. Blumenthal for Oak Creek, 2) The statement that the condition of consent must be that the landlord offers the apartment for a particular price before consents were given should be added. 3) A provision which would indicate how the consents, should be validatede sho,'ld also be included. He thought it should be that when consents were obtained from tenants that they should be notarized. AMENDMENT: Councilmember Bechtel moved, seconded by Fazzino, to amend Section.21.40.060(1)(d) to read: "(vi) In the event that a tenant or- tenants in a unit held by the City or its designee- as below market rate rental housing pursuant to Section 21.40.050 (2) is eligible to receive any available rental housing assise tance payments, such :tenant or tenants may --choose to enter into -a lease providing for such rental: housing assistance payments in_ lieuof the extended lease required by this section,".. Couneilmember "Witherspoon asked what the concerns were Mark Chandler, a member of the Palo Alto Housing Corporation, said that the problem was that in some cases some programs such a s_. Section 8 have various requirements for the- components of a lease that a person would have to maintain tenancy under in order to be eligt,ble and :one could not be a tenant with two leases. He said there was a fear that if people were - not underthe terns of 1 1 3 3 8/10/81 the Section 8 lease or another type lease which might be required by some other program they would be ineligible foi the payments. Assistant City Attorney Margaret Sloan added that the Section 8 leases, which were what they would probably be, were different in the two major aspects of a lease. First, they were yearly leases. Those eligible; would get the lease for one year and, if still eligible, would get the lease for another year. Secondly, the rents were different. Someone eligible for a Section 8 lease would undoubtedly pay less rent than under the extended lease. This provision was designed by the Housing Corporation to meet the probably few cases where a tenant who normally would receive an extended lease because of that tenant's income qualifies for a Section 8 lease. The tenant would have to weigh whether they would rather have lower rent under the Section 8 lease, but renew the lease annually, with a chance of losing the lease if they came into some money. Councilmember Witherspoon asked if the net effect would be to cancel most of the lifetime leases for anyone eligible for Section 8. Ms. Sloan said anyone eligible for Section 8 would .have a She did not think there would be many people eligible Section 8 was directed at low income not moderate or income. Councilmember Levy said he was not clear that this would the tenant with anything that the tenant would not possess because it said the tenant may choose to enter lease. choice. because middle provide al ready into a Ms. Sloan said technically Councilmember Levy was correct. She said the way the ordinance was written, it required the converter to offer al.1 tenants extended leases. If a tenant were eligible for a Section 8, technically the tenant could find that out if the Housing Corporation owned the unit and be explained the sire..,- cumstance.s, and then say "le terminate my tenancy under the extended lease," and then an lieur later enter into a Section 8 Tease. This would spell out that choice -a little more clearly. She felt it was a small detail that was fine to spell out because there was a chance that the tenant would say they could have a Section 8 lease so I terminate my extended lease . Then, maybe some fluke would come up in the next hour, and the tenant. would not get a Section 8 lease. This would just make it a little clearer. Councilmember Bechtel felt that Ms. Sloan had very adequately explained the provision, but clarified that several weeks ago, the Housing Corporation had asked the Council that for those sub- sidized units that it be conveyed to the Housing Corporation they were asking that there be no lease at all. She said this did not say that, this was giving the tenant a choice and making it very clear at the beginning and as part of the ordinance that the tenant could either choose a one-year lease, but reduce payments if they qualified under some form of housing subsidy, or a life- time lease or an extended ten-year lease de;.iending upon the age of the tenant. She thought "the choice was up to the tenant and it enabled the Housing Corporation to comply with the federal regulations which required that specific type of lease. AMENDMENT PASSED unanimously.. Councilmember Levy said in. ,paragraph 2(a) it said that, "one, below market rate unit must be 'provided." He thought the word. "rental" should be included because there was a below -market -rate program for purchase. AMENDMENT: Councilmember Levy moved, seconded by _Witherspoon, that the word "rental" be inserted in Paragraph 2-A and ii . AME )MENT PASSED unanimously. Councilmember Levy said regarding Mr. Fein's comments on notari- zation, he was uncomfortable th-roughout the entire process of the Oak Creek conversion that the -method of voting was subject to being tampered with. He thought that having the consents-notar- i zed would be a simple way of handling it , so that it world be known that the votes were coming from the units they were sup- posed to be coming from He asked if that would present a probe lemL Ms. Sloan did not think that would present a problem. AMENDMENT: Councilmember Levy, seconded by Renzel, moved that all tenant consents must be notarized. Councilmember Renzel said she did not want the notarization to substitute for the validation that tenants were the proper tenants of those units. Councilmember Klein said he would oppose the motion because he felt notarization _held out a lot .more pronise than it would deliver. He felt that if someone were going to cheat, notariza- tion would not atop that one bid. He felt most notaries only paid attention to whose signature they were notarizing, and did not have a significant obligation to verify thing.e, and ire was concerned that it might create a system in which the notarization would be relied upon. He said Councilmember Menzel mentioned that verification would still be needed and he was concerned that five years from now, a staff member would be checking the con- sents and see that they were notarized and feel nothing further was required, Mayor Henderson said he agreed with Councilmember. Klein in terms of what a notary meant. He said it was only witnessing a signa- ture. Councilmember tLevy said he was open to an alternative way of handling the problem, but felt some better system was needed of making sure the proper people voted. Counci.lrrember Renzel said she did not know the legal obligations of notaries public,- but, presumed that if they wholesale validated signatures that were not valid, they would be subject to loss of their certification and possible penalties and she felt that course of action should be omIrsued in order -to at least cause tenants to take their action seriously when they offered their consents. AMENDMENT FAILED by a vote of 7-2, Renzel and Levy voting "aye." Vice -Mayor Fletcher commented that itemizing specific conditions under which the tenancy could be terminated would be complex to add to the ordinance_. She said that a proposed just cause evic- tion ordinance would be coming to the . Council which she hoped would be successful in protecting all tenants not only those of conversions. Councilmember Renzel said that apparently rather .than having items notarized, people were now asking for declarations 1 1 3=5 8/10/81 under penalty of perjury and she wondered if the City Attorney's Office had thought of using that in the tenant consent forms. Ms. Sloan said she had not thought of a declaration under penalty of perjury, but perhaps it was. a good idea. It could cover both that the tenant was that tenant and that the tenant .lived in, that particular unit. Councilmember Renzel asked if the City would still do a spot check for validation. Associate Planner Bob Brown said staff would follow the precedent set on the Oak Creek conversion where they did a rent sampling. AMENDMENT: Councilmember Renzel Roved, seconded by Klein, to add the "penalty of per jury" cl ause to tenant consent farm. Mayor Henderson asked if that could be done without the services of an attorney, or would an attorney have to be involved to get the declaration, Councilmember Klein .:said a declaration undeTe penalty of perjury. meant that if Someone , were lying, they would run the risk of going to jail. City Attorney Don Maynor said it was a typical requirement i.n` some cities' condominium conversion ordinances. The City of, Mountain View had such a requirement. It was not unusual and was very easy to administer. AMENDMENT PASSED unanimously. MOTION TO ADOPT ORDINANCE, AS AMENDED. PASSED by a vote of -5-4 as follows: AYES: Renzel, Henderson, Fazzino, Fletcher, Bechtel NOES: Eyer ly, Klein, Levy, Witherspoon UNCILMEMB[R KLEIN LEFT AT 9;,O0 p.m. PUBLIC HEARING: CRESCENT PARK II UNDERGROUND CONVERSION Mayor Henderson read the following statement into the record "This is the time and place set for the public hearing on the matter of the formation of Underground Utility District No. 23. "The purpose of the public hearing is to. hear all pretests and receive evidence for and : against the proposed formation_ of the Underground Utility District. The ultimate _question to be deter- mined by the Council, based:. on the Public.hearing, is whether the public necessity, health and safety require the establishment of the district and the removal of poles, overhead wires and asso- ciated -overhead structures . and the underground installation of wires and facilities for supplying electric communication or. similar associated _Services in the proposed district. "To this end the Council is required to take ,evidence and cones sider the question .Of whether such under -grounding is • in the gen- eral public interest for one or More of the following -reasons "1. Such; 'undergrounding; will avoid :or eliminate an 'unusually - heavy.coneentration of .loverhead distribution facilities, =Or- the reconstruction of an existing pole line. .12. The streets within the proposed district are extensively used by the general public and carry a heavy volume of pedestrian and vehicular traffic; "3. Said streets t.r rights of way are scheduled for major new roadway construction, reconstruction, or realignment. "4. Said streets or roads or rights of way adjoin or pass through a civic center. "The reason apparently applicable in these proceedings is the elimination of reconstruction of existing pole lines. "The effect of the formation of the district would be that no person or utility would be allowed to erect or construct within said district any pole, overhead line or associated overhead structure used or useful in supplying electrical communication or similar or associated services. "Anyone interested is, therefore, invited:to present protests and to present evidence either for or against the formation of the proposed district, with particular emphasis on the- foregoing mat- ters." Mayor Henderson declired the public hearing open. Councilrrember Witherspoon said: she lived in the district proposed and, therefore, would not be participating in the matter. Ann Hicks, 557 L. Crescent Drive, said she assumed that public funds were used to build traffic barriers -to benefit one or two blocks. She asked why public funds could not be allocated to insure that those citizens on fixed incomes would -continue to have a utility seryirc. She was opposed to the undergrounding because the least expensive estimate she obtained to insure her- self of electricity and phone lines, which .she was being forced to change, • was $3,800, and she had obtained five estimates She thought that the fact that she was being told that for 21 years she had enjoyed the utilities, and because the City did not want poles lowered, o> to tr im trees, they would have to spend rrril-- lions of dollars and have residents take thirty years to pay it off for the visual enjoyment of some neighbors who opposed poles. She did not think that was fair because she was on a fixed income and could not afford it. Virginia G. Lenderking, 515 W. Crescent Drive, said she agreed with everything Ann Hicks had said. She said that the City had started the project in. what was supposed to be the most affluent area of -Palo Alto, and wondered what they .would do when they got to the less affluent areas. She said the financial burden being placed upon the residents was unreasonable. John Reiland, 1570 University Avenue, said he could not mrke cap his mind on the issue. He asked for some qualitative data con- cerning the need to replace the poles and the cost. He inquired as to the number of poles to be replaced over a given period of time, their locations, and why they wereso difficult to replace. He thought easements existed on the properties for the poles and access _ to them and he did not understand = why it was difficult to. replace them. He said the citizens affected had pa i a -their share of assessments, via utilities bills, over a period of many years to provide for ` maintenance of the system, and now they were told the system would no. longer be maintai bed - on -the basis of those contributions, but rather, in addition, they would have to 1 1 3 7 8/10/81 1 i contribute a sizable portion. He felt the economic period was difficult and a lot of budgetary requirements were being placed on the citizens and government and he said that if this continued everyone would be bankrupt. He said he had heard that the Council had already made its decision, and questioned whether it was a democratic process at all. W. L. Lewis, M.D., s'aid their professional building on California Avenue had had its lines under grounded in 1956. He said they * had trouble with the telephone lines, and put them overhead, and they had trouble with the plumbing and other things. He did not nec- essarily agree that these things would be cheaper in the long run. He said he was content to see the squirrels running along the lines with their nuts, his utilities had been fine, and he was not in favor of the undergrounding. Jean McHugh-Bodylski, 561 Center Drive, was in favor of the underground utilities, because he did not like the squirrel droppings. He asked how the City determined the location of the ut l i ty box. He also asked about doing the work himself. Glenna Violitte, 95 Crescent Drive, said she did not feel she had enough information tomake a decision of how she felt about it. She said she could not get a price on how much it would cost her. She did not think she should have to go to the telephone company to find out how she would be impacted, and felt the City should provide, that information to her She said the contractor had told x.. over the phone that if she dug the ditch herself, she. coule save $1,000, but he had no idea how much additional she would have to pay. She also wanted to know the mystery item that might someday go into the trench besides the telephone. Scott Carey, 155 island, said he was within the assessment dis- trict, and pointed out that a benefit of the undergrounding was the elimination of the safety hazard to children, which he felt in and of itself was sufficient to justify the undergrounding. Rolf Landshoff, 525 E. Crescent, was in favor of the under - grounding and agreed with Mr. Carey. He also asked if he could do it himself. Carol Munch,Taylor, 1771 University Avenue, was basically in favor of the undergrounding, but asked about the maintenance of the underground cables, and the cost to the homeowner. She asked if there were alternative sites in the homeowner's access to the pipes which could be entertained besides the one used for the estimate. She also felt nore information was needed before a good decision could be reached, Mayor Henderson declared the public hearing closed. Counci lmember Fuzzino recalled a similar problem occurring ;a couple of years ago. He said he would prefer to have staff answer all of the residents' concerns and then return to Council. for final judgment later. He felt that the information process that occurred two years . ago alleviated and resolved manyconcerns and oppostion on the part of .the neighbors and to the degree possible, he wieuld like. to see that achieved. 'Mayor Henderson asked why this matter had to be dealt with tonight. Principal Engineer for the Utilities Department, jack Taylor said it would simply deloy the joie and runs the project on into the_ _winter that much further. He said he might be able" to_ satisfy a. 1 1 3 8 8/10/81 lot of the questions tonight. -1{e said the reason the particular area was chosen was purely because of the age of the poles. Most of the poles were over 40 years old, and they•were getting unsafe to climb. It was like when a car wore out, there was a choice of fix the car, buy a new ,one, or find some other means of transpor- tation. He said in this case,.the poles supporting the electric system were wearing out, and if the lights were going to remain on, the system either had to be fixed or get a new system. He said that after examining the poles and costs, the best long -run solution to the problem, cost wise for the City and hopefully for the citizens, would be_ the undergrounding. The estimated savings on a \ preset t cost basis were calculated at about $86,000. Some of the poles in the backyards had taken a lot of damage, wood- peckers, shell rot, and some butt rot which could not be seen because it was below the ground, but iwhatever the, problem,- the poles were unsafe to climb. He said if someone's lights went out a 2:00 a.m. on a stormy morning, he could not send a lineman to repair it if the pole was unsafe. Regarding replacement -of the poles, he said the poles ranged from 50-60 feet tall, and Weighed about 2,000 pounds and; therefore, could not be carried -back on one's shoulders. He said that people had built enough obstacles in the past 40-50 years that because the poles were not hinged, new -poles could not be gotten in the yards. The only way one could be brought in the yards, would be to use a helicopter. - In order to use a helicopter, trees would have to trimmed to make a big enough hole to drop eit down through. He showed many slides to illustrate -his meaning. Mr. Taylor responded to how the service box locations were selected and said that an estimator was sent to ascertain that the box locations would be the best places from which to serve a hoarse. He said that some People might ;think it appeared to be on the wrong side of a home, and it was probably thought that it would ..be the easiest way to enter, briny the meter up front, and instead of worrying about running conduit clear around the house.Ie was crawl space under a house, cable strapped to the floor joist could be run across and under at much less expense than with the conduit. If a person still felt that the box was in the wrong place, and a contractor suggested he could save that person money if the box were elsewhere, the project engineer, Jack Taylor should be contacted; he would look at it, and if there were a better way, then that was his job, to do it the best way possible. Regarding doing the trenching from the street to the. `rouse your- self, Mr. Taylor said it could be done, but a homeowner's permit was required, he would give the specifications on how to do it, and when completed, if it passed inspection, it would be stif . He said a person could just do part if desired. Some electri- cians, were allergic to shovel and would be happy to have a person put. tine trench in the ground for them and they would then lay the conduit and put the pipe and wire in. He gave a number of,alter natives. Regardingthe cost to repair the cable, he said average costs of tree trimming and maintaining overhead, lines were compared with the average cost of maintaining underground cables. They used average costs with making the cost comparisons, and the under - grounding cost a bit less. He said that the digging' up of the underground should not be necessary because unlike some cities that put ..it in direct buried : so that it -would have to be dug up, Palo Alto put it all in conduit Hopefully, if the wire failed, you get on one end, of the pipe, pull it out, put in new wire, and it would be fixed. Regarding safety, he said_ the under gr oend method was not perfect," 1 1 1 but they we poles were. it cost the residents He said a figure out to the hou was in th figure on figure w seated wa the even 1 ower fi Councilm the box Mr . Ta why it dent c had no Counc re secured and were not the attractive nuisance that Cost wise, he said it would cost the City a lot, and residents quite a bit. The estimates obtained by the were not necessarily what a contractor would charge. man was hired to go out and look at each property, the easiest way to get from the proposed service point, se. In some cases, he suggested that the service point e wrong place and it was changed. He said he ,.gave a what he thought a contractor might bid to do ii. The s purposely made high because what the figure repre-_ s how much the City would be able to loan on that job in t the deferred payment options were elected. He said a guy a might be obtained from a contractor. ember Renzel asked if there was flexibility as to where es could be located. ylor said they could look at any one, and either explain was there to the resident's satisfaction, or if the resi- ould convince staff there was a better way of doing it, he objection to changing it. i lmember Renzel asked if there was one box per house. Mr. Taylor said there rrere three boxes --a power, telephone. and communicatians. Co un str do Mr gr we ea p a 1 d cilmember Eyeriy asked if the City assumed the cost of the et portion, or did the homeowner pay part of the street por- n. Taylor said that in Creenacres I and II jobs where under - ounding was requested by the :property owners, the residents re assessed 25% of the cost of the --work in the street, plus ch of therm paid for their own service conversion. In Crescent-. rk I and the -proposed Crescent Park II, the City Utilities epar tnent initiated undergrounding, and because the City nitiated the project, and not the homeowners, and the City was oing it for its own cost benefits -believing it would be cheaper ver the next 30 or 40 years to maintain the underground than the overhead, the City considered it as a_general benefit job because what benefitted the municipal utility should benefit the City generally. He said. it had been proposed on that basis so there would be no .assessment of homeowners for the work in the street The only cost to the homeowner was that ofa changin • service --- across their own private property. Counci lrnember Eyerly asked regaedi ng the work the homeowner was responsible for, if someone did not choose to dig their .own ditch or provide their own work, the City would assume 'that on whatever the estimated cost was. Mr. Taylor said no. He said the City did not have the manpower to do 168 homes or even a large fraction thereof within the time 1 imits set. Councilmember Eyerly said -that in the. California Avenue area situation, they were faced with the same problem and the City provided an outside contr actor to provide the connections to the street. If the homeowners did not do their own digging, he asked if the City would be prepared to hire a contractor to .do it. Mr. Taylor said .no. He said the City would prefer not to, because the wot.k was on' private proper tye He said what the City had derne on California Avenue in th. e two alleys - was arrange - to do. e;the 1 1 4 0 8/10/81 part of the work that a contractor would not do, i.e., the digging, the concrete and the repaving, and because it was a small project enough that the City could handle, the City took it on using its own forces. He said this involvedj a much larger area and the work was different enough that the City did not feel it could handle it. Councilrnember Eyerly said he was not clear how the City coordi- nated getting all the homeowners to have the trenching done and to make the connections to_ the house. He presumed there was a deadline by which it would have to be done --by the time the back lines were disconnected, etc. Mr. Taylor said there was a deadline and that the deadline was arrived at by the ordinance which would be passed by the Council, which said it would be a misdemeanor to maintain the overhead system ninety days after the underground was completed. He said that nas the underground neared completion, everyone would be notified that the expected completion would be on such and such a date, arid a request anade that the homeowner get his property con- nected to it within the next sixty days to allow the utility the remaining thirty in which to get the. things off the pole. Counci lrnember Eyerly asked regarding the estimates that. ini ght be the cost for the resident to provide the necessary work, if the City was willing to loan that money, what was the percentage cost on the carrying. Mr. Taylor replied that_the interest rate was fixed by thee ordi- nance at 3/4 of 1 percent above the New York Bond Buyer Index for the week preceding the date on which the job was ordered done. He said that in this case, if the ordinance were to be introduced tonight and have the second reading in two weeks, it would be the week ending in two weeks that world be the determining interest rate. He said the Bond Buyer Index for the past five months was averaged and the figure given to the homeowners in their notice that they had the option. He said the latest Bond Buyer Index was 11.63 or 11.73% for the week .that just ended. He did not know what it would be in twa,,weeks. Councilmember Eyerly agreed it was a pretty low percentage and asked if the homeowner provided sweat equity and did the work himself, would they still be eligible for the loan. Mr. Taylor'•, said yes. Counci lrnember Bechtel asked if the Council approved the under- grounding, when would the work begin; Mr. Taylor . said assuming final approval in two weeks' time, the work in the street world be out to bid and it would depend on how long the contractors took to get their bids back, evaluated and approved. He guessed it would begin in late September or during October. Councilmember Bechtel asked if staff was .attempting to get the work completed before the rainy season or ,'Mould that matter. Mr... Tay or said working out _ in the street would not be as critical, and the work across the lawns'. and so forth would not have to be dote until next Spring. The sixty, days gave a com- pressed impression of how much time onewould have in which to do 168 homes. The moment the boxes were in, place out in the street, they could commence getting them piped from the -house to the box In the ensuing period, the city would be : pulling, .I n primary -wire, 1 1.4 1 8/10/81 setting transformers, pulling in secondary wire, doing splicing, connecting, doing testing on the system to make sure it worked, and that would ail take about a month or two so that actually a person would have at least three or months in which to do it. Councilmember Bechtel said various people had asked about doing it yourself, and she asked whether the City would provide addi- tional information for those who wanted to do it themselves. In addition, she asked whether the City would consider buying con- duit or any other necessary supplies that could be purchased in bulk and, therefore, at a cheaper rate than if purchased indi- vidually. Mr. Taylor said the specifications would be readily available. He said he could give the same specifications that were given out to the contractor for bid in the Crescent Park I job. As far as buying conduit on the residents' behalf, there was probably a legal point involved, and he would defer to the City Attorney for response. City Attorney Don Maynor said he had concerns about the general rule of giving of public funds and it may be involved here. He said he would like to consider it closely before approving such a policy. Councilmember Bechtel said she did not mean the City to buy the conduit to give to the residents, but to buy the conduit at a wholesale rate. Mr. Maynor said there .was the gift issue, and anti -competitive issues tp cpmsoder and he wanted to look at it carefully. He said normally the City would not use City purchasing capabilities for the citizens. Mr. Taylor suggested that if a number of people wished to do it themselves, they could probably function as a group and purchase supplies through the homeowner's association. He suggested to let the University -Crescent ._park Association do the group purchase. Councilmember Bechtel said it seemed to her that the ultimate question was the cast. Two years ago it was considerably cheaper. She had received calls from people who were concerned about the interest rate and potential damage to their yards. She asked what if a homeowner just could not pay. Mr. Taylor said he did not have a good answer for that. He said the poles were getting to the point where they would be unsafe to climb and something had to be done. Councilmember Bechtel said the problem for many homeowners was that they had the service, it functioned, and it works now, and it was hard to envision that it might not. Councilmember Levy asked if the alternative was to replace the poles. He asked if that would result in cost to the homeowners. Mr. Taylor said there would be no , cost, but there would be an overall cost to the utility. Vice Mayor Fletcher thought the Council had a lot of information, and the project was definitely to the benefit of the utilities Department, the City as a whole, and to the , property owners. She said if the ordinance was passed, she assumed the details regarding the City providing a discount rate could .still be looked into. 1 1 4. 2 8/10/81 MOTION: Vice Mayor Fletcher introduced the following ordinance for first reading and moved, seconded by Eyerly, its approval. ORDINANCE FOR FIRST READING entit: f "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 12.16.020 OF CHAPTER 12.16 OF TITLE 12 OF THE PALO ALTO MUNICIPAL CODE BY ESTABLISHING UNDERGROUND. UTILITY DISTRICT NO. 23" Councilmember Eyerly asked what the total amount of objections to the assessment district were compared to the total amount of properties. Mr. Taylor said that 191 properties were involved; of those, 23 were underground and not affected, and 168 were faced with the underground service. Mayor Henderson said regarding numbers, the best the Council had was that there were 1 who spoke against it, and he said he received a sheet that had a list of people that supported it, and there were 3 who opposed it, 1 who had not spoken tonight, so he thou lht 8. Councilmember Eyerly urged approval of the ordinance. MOTION TO APPROVE CRESCENT PARK II UNDERGROUNDING PASSED unani- mously, Klein absent, Witherspoon "not participating Councilmember Levy mentioned that he hoped that when the Public Works Department repaved the street, they would pave it smoothly. REQUEST OF VICE MAYOR FLETCHER RE. BIOLOGICAL MEDFLY CONTROL Vice Mayor Fletcher said that the Entomological Sc?ences Department at U. C. Berkeley had a long history in pioneering biological pest control. She said they were working on a project whereby a worm ,night help eradicate the Medfly. Apparently worms were already being used for pest control in other countries in Europe. She said she was shocked to find out that the Medfly !}reject officials were totally uncooperative with the researchers who have tried to make use of their knowledge tO,. help eradicate the Medfly. MOTION: Vice Mayor Fletcher :roved, seconded by Renzel that the Mayor be authorized to write a very strong letter to Jerry Scribner, Project Director for Medfly Eradication Project, with a copy to Governor Jerry Brown, urging full cooperation with Dr. Poinar's efforts in the biological control .of the Medfly. Councilmember Levy said he felt uncomfortable specifically endorsing one person's research. He said he supported the con- cept, and supported the motion, but felt uncomfortable mentioning one particular person. AMENDMENT: Councilmember Levy moved, 'seconded by Witherspoon, that a 'strongly worded letter be sent urging that the State fully consider the use of nontoxic naturally occurring materials such as nematode worms in the Medfly Eradication Project, for example, Dr. Poinar's efforts with nematode worms. Councilmember Witherspoon agreed with Councilmember Levy because she thought there was also a research project in -Florida and in other parts of the United States', and she did not want to be a 1 1 4 3 8/10/81 1 party to endorsing it or encouraging the State to fund it. Ccuncilmember Eye:ly agreed with Counci members Levy and Witherspoon. He asked if Mr. Scribner's office had been con- tacted to ascertain why they had not been sympathetic. He said he wondered about the other side of the coin. Vice Mayor Fletcher said she spoke to Dr. Poinar, but did not speak with anyone :on the project. Councilmember Eyerly said he would like to see them given- a chance to respond. He said there may be specific reasons which they would like to express. Counci lmember Fazzino said his concerns about supporting indi- vidual research had been expressed. He said he was fearful that if the Council. supported Dr. Poinar, every researcher at Stanford and Cal and other places would approach them with their marvelous ideas for a Nobel Prize in, one area or another. He said he sup- ported nontoxic approaches` toward eradicating the Medfly. He would support that aspect of a letter, but was concerned about going ahead, not knowing very much about nemotode worms, and sending something to the State without additional information. He would prefer that staff obtain some information about this and whether it was a reasonable way to proceed. Short of having that information, no letter should be sent. Gouncilmember Renzel said that a citizen had called her and said that the Medfly had been successfully eradicated somewhere in Southeast Asia using some cubes laced with something. She sup- ported the main motion and the amendment so long as there was enough of a reference to let the State know what nematode they were talking about. Jean McHugh-Bodylski, 561 Center, said he had a lot of dead bees in front of the hive and all over the garden. He asked i_ f there was any recourse for losing hi.s bees. AMENDMENT PASSED by a vote of 7-1, Fazzino voting "no," Klein absent. Vice Mayor Fletcher said she understood that from here on out the spraying would; start at 9:00 rather than midnight, and she was horrified. She said the original pr .posal was to start at 2:00 a.rn., then they moved it to midnight,` and now to 9:00 p.m. She. said she would like staff to investigate this and do --whatever possible to'prevent the spraying from starting before midnight. MOTION, AS AMENDED, PASSED by a vote of 6-2, Fazzino, Witherspoon voting "no," Klein absent. PROPOSED RAMP METERING ON 101 BY CALiRANS (CMR:386:1)... Staff recommends that Council adopt a motion;requesting CalTrans to: 1. Conduct a detailed analysis to determine the specific adverse impacts of the proposed work on the Palo Alto street network and to pursue appropriate mitigation measures as part of -'the overall project. Hold a public hearing to assure that all elements of the community are informed and made familiar with the ` proposed scope of ,the work and the impacts involved. • 1 1 4 .4 8/10/81 Counci'member Renzel said she concurred with the' two recommenda- tions that staff made regarding the ramp metering on 101 pro- posal, but was conear ned as to whether the impacts could be suc- cessfully mitigated. She said she would like to have a third recommendation that if staff felt the mitigation measures would not be adequate regardless of who paid for them, that, the City should oppose proceeding with the ramp monitoring. She thought it was appropriate to conduct a detailed analysis, determine the impacts; and to pursue appropriate mitigation and hope the State would pay for it. If there was no appropriate mitigation, and if there would just be something that would make it a little less serious, but not solve the local problems which would be created on Embarcadero and Oregon and down by San Antonio, she thought the Council should be in a position to oppose proceeding with the ramp monitoring. Mayor Henderson asked Director of Planning Ken Schreiber about the intention to give CalTrans the direction and suppose the answers were not satisfactory, what did staff intend. Director of Planning and Community Environment Ken Schreiber said that when staff had obtained the additional information, staff intended to take the item to the Planning Commission and then back to Council for review of the response. Counc i lmember Renzel inquired if there would still be ample time for the City to comment to CalTrans prior to the adoption of the project if this went to the Planning Commission and back to Council. Mt. Schreiber said that was one reason that staff wanted CalTrans to schedule a public hearing was that it would set a process in motion which should give Palo Alto enough time. In any event, he said-- staff. would be reporting back to the Commission eel! Council. Vice Mayor Fletcher commented that the purpose of conducting a detailed analysis would be to determine the impacts in Palo Alto. Councilmember Renzel said that the suggestion in the staff report was that appropriate mitigations be determined and CalTrans be requested to pay for them. MOTION: Counci lmember Renzel moved, seconded by Eyer l y, to request CalTrans to: Conduct a detailed analysis to determine the specific adverse impacts of ,;the proposed work on the Palo Alto street network and to pursue appropriate mitigation measures as part of the overall project, and hold a public hearing to assure that all elements of the community are informed and made. faith tar with the proposed scope of the work and the impacts involved. MOTION PASSED: unanimously, Klein absent MAYOR HENDERSON RE SIGNATURES ON BALLOT ARGUMENTS Mayor Henderson said that the City Attorney had expressed: concern about Councilmember's who signed ballot ar'gwnents using titles such as councilmember, etc. He said if members appeared on only one side of an 'argument, then it appeared to be a Council endor sement. He said he found three paints which favored allowing titles on arguments for. Measures, such as in the sexual. orientation ordinance. He said, first, there were one or more Counci 'member s signing :on either side, second, a precedent would ba set if it were- not done. in the past, Councilmembers had used titles, and other signers were almost always identified. Since 1 1 4 5 8/10/81 Counci)members were not that well known individuals, there was a benefit to having the identification as long as it in no way indicated overall Council support. Councilmember Witherspoon agreed with Mayor Henderson and said she was a little surprised when it was stated that. Council.members were not to be allowed to use titles. She said she did not know where it left persons such as ;former mayors of the City. Mr., Maynor said it would not apply_ to persons with former titles. Heo said he was trying to give some meaning to a very poorly drafted State Elections Code provision, which stated that members of the City Council who wanted to file a ballot argument must be authorized by the City Council. He said he had ruled than an individual councilrnember did not have to be authorized by a majority of the Council if they wanted to file on their own , behalf but suggested if one was to do so as an individual voter, they should not do so using the designation of councilperson, so there would not be an implication that the entire -City Council was being represented. He said in this particular instance, where there were Cou:ncilmembers on both sides of the issue, he did not think there was an implication. Further, he said his ruling was not part of the State law, he was trying to give an ambiguous clause in the State law some meaning. He said if a Councilmember felt_ there was no implication that they were acting on' behalf of the entire City: Council when they signed a, ballot argument bearing their designation as City Councilmember, then he would not be opposed to making it a regular policy. Councilmember Renzel said that although she did not know the details of the state law, the language read to her suggested that basically the authorization from the Council was, since there were only five slots to sign and there were nine councilmembers, that if the Council were not signing as a body, they should designate who may sign for or against an issue so that there would be no ambiguity as to who from the council might have that priority above citizens _end official groups. She thought it was important that individual councilmembers supporting or opposing a Measure sign as individuals. Herb Borock, 3401 Ross Road, said it seemed to him that the statutes simply provide a priority that Ahe Clerk would choose among. If there were more a ."_than one ballot argument submitted, the purpose for the.. Counci 1 authorizing members to sign would be merely to place those signatures in a higher priority as the City Council or as certain members. Other than that, it seemed to him that if there was no authorization, then Councilmembers would _be treated the same as other citizens in terms of the priority in which their ballot arguments. are considered vis-aavis thee other ballot arguments,, and .that the identification was no problem at all. Councilmember Levy agreed with Mt: Borock that for councilmembers to be designated as councilmembers was satisfactory. He thought, the key question was the public perception of how the Council itself had acted. He thought the City Attorney analysis should state specifically that the .Council had endorsed the measureby a certain vote, or had taken no position .on the measure. He felt that if that were done, the total picture was complete, and indi- vidual 'councilmembers could present their arguments on either side ,and be so designated. Mr. Maynor felt it would be' helpful to ` develop a policy for : the future for consistency. He felt Councilmember Levy had a good suggestion about putting something- in: the impartial analysis about whether the City Council had taken a position. He said he 1 would amend his impartial analysis to reflect that. He thought that the Council could go ahead and vote on it. He said his understanding was that if the Council were to file a ballot argu- ment, they could do so in their capacity as a City Councilmember and be designated in that capacity whether they were receiving authorization or not. MOTION: Mayor Henderson movrod, seconded by Fazzino, that Co unc i l member s be allowed as a W i cy to sign ballot argument and to be designated as Councilmemb.:rs. Councilmember Renzel said she concurred with the intent of the motion, but was concerned that it was a general motion rather than one specific to the upcoming ballot issue. She said there may be a time when there would be seven councilmembers all desirous of signing a ballot argument, and only five could sign.,, She said at that point, the Council would have to designate the five individuals, therefore, she did not think a general state- ment could be made at this point allowing councilmembers to sign ballot arguments. She thought the Council should designate at some point if there happened to be more councilmembers than slots. Mr Maynor said that regarding Councilmember 'enzel's concerns, State law would prevail in that situation. He thought it would be helpful to have a policy, and when the issue comes up again in the future, it would be written. MOTION PASSED unanimously, Klein absent. MAYOR HENDERSON RE DATE FOR MEETING WITH KORN-FERRY RE CITY RNEY R RO Mayor Henderson said Director of Personnel Jay Rounds had sug- gested that September 3 and 4 would be available times, day.. or evening. Mayor Henderson suggested that the applications be available during the day so that councilmembers could look through the applications as well as noting Korn -Ferry's top list, and then perhaps meet in the afternoon. Councilmember Fazzino said he was concerned that it was right before Labor Day weekend. MOTION: Councilmember F.azzino moved, seconded by Levy, that Council meeting at 8:30 a.m., September 4 and that the material be available to Councilmembers during the day of September 3. Councilmember Witherspoon said she probably would not be in town, and asked about September 1 and 2. Councilmember Eyerly said he would be out of town on September 4. Councilmember Renzel said it had been suggested that the Council meeting the day after Labor Day would probably be cancelled, and she did nut think that if they caret on Tuesday it would cause a significant delay. She thought it would be more within the Council's regular habits to have a night meeting on Tuesday. evening since it would have been anticipated, had they not planned to cancel it. SUBSTITUTE MOTION: Councilmember Renzel moved, seconded by Fletcher,- to set a Special Executive Session for Tuesday, September 8, 7:30 .m. , to meet with Korn -Ferry, re City Attorney search, with applications to be available to Counci l member s on September 3 and 4 for perusal. MOTION PASSED unanimously, Klein absent. RECESS FROM 10:15 to 10:25 p.m. ADJOURNMENT TO SPECIAL JOINT SESSION WITH PLANNING COMMISSION - Mayor Henderson said that no action was to be taken. He said that the objective of the joint City Council/Planning Commission meeting was to assure that the final report included all the sub- ject matter and data that would ultimately be considered. He said the City Council said it could not make a decision on whether to develop any portion of the Ar astr a property without having further data. He said the Council had voted to provide that date, and the question now was whether there was sufficient data to eventually make the decision. Principal Planner, George Zimmerman said the following con- sultants were present: Richard Warren Smith from the joint venture team of Sedway/Cook - Richard Warren Smith Associates, Pat Smith from Sedway/Cook, Dick Recht, Economic Consultant of Recht iiousrath & Associates, and Herman Minch from the soils geological firm of Su loger, Long & Associates. Councilmember Fazzino asked for clarification that it was a study session, and no motions would be in order. Mayor Henderson said yes. Councilmember Renzel said on page 5.5, under "Residential Development Objectives," the very last objective (k) said to pro- vide a mechanism for ongoing modification and implementation of objectives and the develpment program and she asked for ampl ifi- cati on because she thought that if a development alternative was based on open space objectives, etce she wanted to know what type of mechanism would change those objectives. Mr� SO th said basically the "ongoing modification" meant was refinement. If a development option were selected, there would- be a refinement of the.design guidelines and a definition of the implementation procedures to be used to adopt it. Councilmember Renzel clarified that they were talking about a mechanism for modification and inplernentation of design rather than objectives 'bec,ause it seemed _to hee the objectives would remain the same throughout. Mr. Smith said yes, unless there was some reason fore modifying the objectives also. If the set of objectives could be accepted as being complete and something to be perpetuated, . then _ it would not be needed, but other objectives might be defined as they went along. Councilmember Renzel said on page ?-/, under financial arrange- ment fixed price option, it was suggested that the City could also lease the Arastra site, subject to a lease agreement that would call for the City to share in the development profits. She asked how the profit was measured because they all knew that developers could get certain discounts on purchasing materials and profits for themselves were built in before any subsequent profit was "measured. Mr. Smith said he thought she would find elsewhere =in the eval ua- Lion section that that was listed' as one of the crucial iifficul- ties with Implementation of any alternative Which called for profit sharing. He said presumably the City would try and 1 1.,4 8 8/10/81 improve its position by choosing the developer with the best reputation and insisting on independent accounting controls to give the best interpretation of what was actually going on and in essence sharing the benefits of favorable purchasing contracts, and identification of non -independent party contracts. Councilmember Renzel said on page 7-8, under permanent home mort- gages, she had read the first part of the paragrap!i, and at the bottom it said in other words the City .would ultimately accept and trade mortgages on homes as they were completed. She said she had not understood that from the beginning part of the language and she still did not understand if the City would become a mortgage lender on the homes or what the City's status would be. Mr. Recht said in some sense the City would become a mortgage lender and there were varieties of -how it could be implemented. He said in ,terms of process, .when the property was first sold, there would be an agreed upon price, arid using $5 million as an example, there would be a .contract situation to require that being paid up -front, or the contract would allow for some options or mandated requirements of it being spread over time. He- said that would be secured by whatever arrangements the City insisted upon for securing payment, which . would presumably include title for -.the land or maybe a letter of credit. He said one way to convert the value to long-term cash flow and enhance the value of the land would be to then allow it to be used for mortgages. Thus, when a house was sold that lot would no longer be secured for the land payments to the City, but the City would receive and become the beneficiary of a trust deed which would guarantee the payment of -the mortgage over time. He said there were a variety of arrangements that could be made. He said arrangements could be made with a savings and loan whereby:they would make the loan, provide .all the administrations, and accept all the risk. The proceeds from the land sale'cedld be deposited in the savings and loan, be left there at an agreed upon interest rate and be repaid when the people with the mortgage repaid their mortgage gradually over time or upon sale. He said there were various ways it could be =structured, but in essence, because the crucial ingredient in marketing homes and hence marketing the land on which --`homes would be built is the availability of permanent mortgages, a developer would pay a premium for knowing that mortgage loans would be available for at least some of the homes he would be attempting to sell. Mayor Henderson asked if the consultant saw other areas of the Arastra land which might be a better site for housing than the 77 acres in question. Mr. Smith said they did not, he said they had been on the Bressler property and had done analyses of policy and zoning on toe surrounding area, but had not done specific development analysis. Mayor Henderson said he realized that, but wondered if, when they were going around, being that they were experts, it struck them that there was a better area' for development. Mr. Smith said no, and- said he had no way to ar-rive at that con- clusion. He said there were some advantages'to- the 77 acre piece such as iv was more closely located to utilities and roads, etc. which were already in place, but the land characteristics seemed to be quite similar throughout the the Arastra property. Planning Commissioner . Pat Cullen said she .noticed that the value given to mast of the lots consisted primarily of their size and i i 1 1 1 their view sites. She wondered -why other elements were, not taken into consideration. For example, the pl oximity to the Club and pool, the distance from the noise from 280. She said there were other elements which she thought would affect the marketability besides the two principal ones identified, and she -asked if she was correct. Mr. Recht said he shared her views. He said they studied all the lots which had been sold in the last year in the area which were comparable to the property. He said they studied another two dozen developments in the 'Bay Area which were comparable in some ways, and -in particular, they studied another group of develop- ments that had a variety of lot sizes, views and any other.varia- tions which would enable them to deal with the differences in lots sizes. Hey said they found that, to a large extent the view and the size of the lot were the two considerations. He said it could also be expressed that the size of the lot gave a sense of privacy and control of their environment to people, and an unimpeded view gave' a sense of being spacious. He said the view ratings were given to all the lots in all .the design alternatives by Richard Smith and Tom- Gook, then he said they all met and incorporated the considerations Ms. Cullen mentioned. He said they made modifications to value where -there was a reasonably good views, or a noise problem from 280. There was a trade off. He said some places had more than one view in which case the value rate.was enhanced. In other cases, the value was enhanced because of a good setting. In general, the study did not show that accessibility to the Club facilities made a major differ- ence, in fact being very close to the facilities was a disadvan- tage because of the increased traffic, etc. Councilmember Witherspoon said she noticed a number of table., and said she would find it helpful if in the final report, they could also put a range of financial figures, i .e . as well as the risk, what would be the anticipated cash flow and/or return. She said that .would help her evaluate which way to go. Mr. Recht said he thought he would have some difficulties in trying to do that. He said if it were to be a partial role for the City, they would have to define what alternatives were- being considered. He said:;to suppose the City played developer -All- the way through, and the: he, would want to ask, what . was the City's primary concern, identification of and attempt to quantify the financial exposure, or the control of the project. Something like that would help him indicate where the focus was. He said that anyone who played developer, whether it be the City, a Cityerelated agency or --- a private developer, would minimize oy maximize their financial exposure based ors the type of financing agreement entered into. He would have to make arbitrary assunp- -t i ons i n any example he put together, and wi thout working out with the City what it was trying to achieve iy having the City undertake the development activities, he would have a hard time putting a- scenario together that he could,quantify. Councilmember Witherspoon said that the reason the City would be at all interested in, being a developer would be to maximize its return. She said she assumed a private developer would have to go through the same motions such as take an option of participa- tion, of which the consultant had=;'identified a number, and then give the City some rough ideas of Yti c i.oated return and;. what the necessary out-of-pocket cash flow would be. Mr. Recht said he tried to deal with that because he felt the potential, for profit would be something that .might influence City policy.' He said he was sceptical- that the City should undertake any development' activities for the sake of profit. He did not a think from an economic rational point of view that if the price were marketed at a competitive market price, that the developers, in their bidding, would leave any extra profit other than that justified by expertise and risk. He said the City would have to gain the expertise probably at the cost of profit sharing con- tracts with a co-partner or a joint venture partner and would have to accept financial risks if it wished to play developer. He felt they all knew that since 1974 or 1975, anyone who had been in the development game through 1980 had either made a large profit or had been extremely incompetent. However, he said if that period were looked at, housing prices and land prices went up tremendously. Anyone who was in the process of development profited extensively. He said if 1972-1974 or 1981 were looked at, there were a lot of developers struggling, and the rate of appreciation being what it was between 1975-1980 vs. now, was enough to make a huge profit or break a developer . He said he was hard put to say what assumptions he should put in to show what profit the City would make if it were the developer. Councilmember Witherspoon said the consultant would have to give some financial- figures or she could not determine between the options. She said; they were recommending a lease as a possible way, permanent mortgages on a certain percentage of the land using the City's title as leverage. She could not understand that the consultant would not put any dollar figures on any of the options. Mr. Becht said that roughly speaking, the biggest enhancement of value would come from providing mortgages. He said he had sug- vested that there would be a decrease in value if the City used leases. He said it would be substantial, and the factors he sug- gested for evaluation would lead most people to conclude that it would be preferable for the City nct to lease the property. He said soe people who put a high priority on possibility ;f future control of the rroperty might still want to lease, but he thought that should be done in anticipation of`taking away quite a bit of land value. He thought that if any alternatives were defined carefully, which would be based on the reason for which it was being undertaken,'' 'then they could attempt to quantify, He would be very hesitant when asked to project the City's profit for playing developer because he would. guess. that the profit would reflect the: risk taken and the expertise the 'City had to hire. Therefore, he 'said if the City paid for -someone else . to assume the risks and provide the expertise, it lould not end. up. with a profit. Mayor Henderson said he shared some of Councilmember Witherspoon's frustrations of not having specific examples. Councilmember Levy said he was also frustrated. He said he .found it useful to have the diagrams of possible development to work with. He said he:, knew that the examples were chosen from prob- ably 100 variations, but he felt that to choose one from each of the 100 variations was helpful. He said he would like to see the same thing with dollar signs attached to the various programs to be undertaken `so that the Council could see the net: cash flow to the City at perhaps five different methods aof dealing with the property. He felt the City "playing developer" was only one element of the many chfferent things the City could do. He felt they needed to : have numbers attached to a spectrum; otherwise, it would be very difficult to make the decision, Mr. Recht said that with regard to the (.most difficult problems' as far as financial analysis, he could illustrate by indicating what development costs would be, what construction costs would'. be, 1 1 5 1 8/10/81 what the sale value of the home would be, and under a couple of .market appreciation assumptions, he could show how the' city could either. end -up making a fair amount of profit, or end up with financial exposure. He said he thought the spectrum of results was a wide spectrum that would include those, examples as well as many others, but he thought i,t would give a good indication of hot: it could work out and how a developer would look at it. Councilmewber Levy thought perhaps that would be overdone. He said he was not as concerned with the developer element. He did not get a feeling for what the cash flow would be, for example, for 'an outright sale of the property and said -he needed some type of cash flow figures for all of the different alternatives or at least representations from all the different alternatives. He did not want to see the consultant spend an undue amount of time on the fine points of the developer option. He said that if the • City got to that, they could go back to- a consultant and ask specific questions. Mr. Smith said he thought he understood where the Council was coming from, Councilmernber Levy said he assumed all of the maps would he part of the finished document. He asked if- a portion of the.77 acres, under the different development schemes, would be dedicated as open space. Mr. Smith said that generally most of the schemes would permit a public open space corridor or -portion. However, he said in one of the options it might be a fairly narrow corridor. Rose Gray, 1235 Hamilton Avenue, represented Loma Prieta Chapter of the Sierra Club. She said she was concerned about the roads. She asked if there were options of bringing in the roads. Richard Warren Smith said there were two basic areas. Ms. Gray clarified that the road situation selected was due to the topography. She asked if there was a way to bring the roads around through the back. Mr. Smith said not without major grading and construction. Ms. Gray asked about the time element between the time of grading and the landscaping, roads and foundation. Mr. Smith said that for a project of this nature, construction would probably go ,for 18 months from beginning to end. Ms. Gray -asked if any of, the sites had been set so that it;would be advantageous to use solar heating and conserving uti 1 ities. Mr Smith said yes that it had been major factor in their guide- lines. He said they had defined a large area as an area with good so ar orientation because it was a south facing slope meaning that all units in that area if properly located would have unshadowed exposure to' the sun during the winter months. 'Larry Faber, 3127 ' David Avenue President of the Palo .Alto Horsemen for Trails preservation, invited everyone to attend a walk.tide.;through the Arastra property to: acquaint the citizetfry with the property so that when the issues came up they would be better informed as to what was being talked about. As a citizen, he said he :preferred that the property remain open _ space. He suggested another piece of property as being more suitable for housing because there were already houses and they would be 1 1 :5 2 8/1 i/81 bridging between existing houses and would not break the open space corridor that existed from Stanford to Palo Alto Park. He thought that was an important consideration. He said the report assumed that trees would be pruned and he said trees in that type of a neighborhood were not pruned unless they obstructed traffic. Further, he was concerned about the expansive soils which dis- tressed the foundation, utilities and pavement unless "mitigating measures" were taken. He wanted to know what "mitigating measures" would do to the profit to the City and he did not think it was addressed in the report. Scott Carey, 180 University Avenue, suggested that either the Council had more information than they needed to make a decision, or vastly insufficient in''ormation to make a recision. He recollected the inception. of the Arastra problem and said that when the City was involved with the property, it was all zoned 0-S which meant 10 -acre lots for roughly a total developrent potential of 54 or 55 homes. He said that had the property owner agreed to the zoning, there would have been about 55 homes throughout the 500 plus acres. He said it would riot have been confined to the north -section as the study was suggesting. Had the Council attempted to confine it, there would have been another lawsuit. The property owner chose not to accept the 0-S zone and sued the City. The City was faced with a tough decision having lost the trial. He said it could have appealed' the case, and had it won, it would have wen the preservation of the 0-S zone which would have allowed 55 houses spread throughout the entire 500 acres. He said that was where they were in 1976. Had the City gotten everything it wanted then would have had develop- ment spread throughout the property with perhaps a small caveat of cluster, but not a cluster of everything on the 77 acres. He said that had the City lost the lawsuit, it would have either lost millions of dollars and had no property or it would have paid millions of dollars and had some property. He said that the City chose to acquire the property at a far lesser sum so as to avoid the danger of losing the lawsuit and paying the conse- quences. He pointed 'Out the link ` between the Arastra property, the Mullen property and Foothills Park, and said that in 1976 when Arastra was acquired and in 1978 when Mullen was acquired, you could see a trail and stream link from Foothills Park all the way to Arastradero. The map shown was missing the development already there. He thought in order to understand the area, Council needed an aerial photograph of the entire area showing the contour and the development. There was a greater profit potential for development other than confinement to the 77 acres, and the open space advocates could also be accommodated when they saw what could be'done. He suggested that -members of the Sierra. Club, the Committee for Green _Foothills, developers, council-. members, and planning commission -members all tour the property and look at it, and have an aerial photograph taken before:. it. was decided what to do, He thought if that were done with an open mind, the pieces_ would come together differently from wh-at was presently before`them. Enid Pearson, representing the Peninsula Conservation Center, reiterated that -their position was still thate they wished the entire 515 acres would be dedicated ,to open. space. She thought it was depressing_ to realize that the Council had spent- a sub- stantial amount of money on a report to develop the Foothills when so many people had the position that they wanted open spate. She somewhat agreed with Mr, Carey that they`" had enough i nfor ma- tion to do what they knew they -should do, which in -her -opinion, was dedication. She thought it was precedent setting and- as 1 1 5 3 8/10/81 Arastra lands gu, so would the rest of the Foothills. She found it depressing to read that some of the money would be used to. build below market housing and she maintained that they might get the money, but she dared anyone or the Council, if they wanted to be re-elected, to go out and defy a neighborhood and put the below market housing in their neighborhood. She said she noted in the report that the land would be sold for an amount for which it could not; be purchased, and it looked to her that if the $8 million high rate development were eliminated and go for the lower development, it would be being sold for $60,000 to $75,000 per acre. She urged the Council to look and make sure they could get all the trail easements through all the property if it had to be developed and look into maintaining the common open space as public land. She felt if Council was really going to decide the issue on the basis of economics, an economic study should be done. Councilmefber Eyerly said on page 3-7, there were some land use plans given, and one of the maps. was labeled "land use plan ." He did not feel there was enough detail on the adjacent properties, particularly' on the 77 acres,- as to what type of development might take place. He said the Stanford land was mentioned as controlled by Palo Alto. He said he would be interested to know - what developments there were, and what, the acreage was, surrounding all the Arastra property. Further, regarding the 77 acre parcel, it was adjacent to Los Altos Hills and Liddicoat Drive, and he wondered whether there was any opportunity for a connection for access to the 77 acres through the Los Altos Hills property or whether it had been looked at. He said regarding the the scenic road of Arastradero Road, the 200 foot setback protec- tion.of the scenic ,road was mentioned. He said he did not get a feeling of the impact of the housing on that ridge on the 77 acres would 'be on the scenic road. He said that as -he looked at it driving by, it looked like a fairly heavy impact, Mr. Smith said that the land uses around the 77 acre site, the Stanford lands, were discussed with Stanford Planning in detail. He said the basic position was that the Powers labsite would remain a Powers lab use until the day they could build what they felt would be market rate housing at approximately one unit per acre, which was beyond the land use policy for the area,' which was open space, controlled development, and could yield only about 7 units instead of 77. In terms of the conversion of Powers lab site to residential, there was no pressure, they did not need it for housing for the University, it would simply be an investment return for Stanford. Regarding the larger open space areas around Felt .Lake . and the rest of the Stanford lands, he said their position was that they wanted to keep that open land for decades because it was used for large scale experimentation research activities such as the Linear Accellerator. They wanted to keep that open and had no intent to develop it. To the East, he said there was the Page Mill Estates which was fully defined as , a development and not fully built up. As far as getting a road across there, he said there seemed to be only one oppor- tunity because of the steepness of the land. By looking at the slope analysis, there was one ridge line coming down to the eastern border of the site. That was the only place where there could be a road along the ridgeline and it would lead into a steep slope as it cane down to Liddicoat Drive itself. He said across Arestradero, there was privately held land again in the open space, controlled development land use designation, a low density type development. Beyond that was .the 438 acres of the Arastra property. Planning Commissioner Connie Heneke said the illustrations were helpful, and she thought it would be extremely helpful to have a site tour along with the illustrations and include developers and the other informed people. Councilmember Bechtel said she thought a site tour was . an excel- lent suggestion. She asked how much the study had cost so far Principal Planner George Zimmerman said he thought around $60,000. Councilmember Bechtel asked if the drawings had been done spe- cifically for the study. Mr. Smith said that some of the drawings were from other previous studies and many of them, particularly in the back sections, were done for this study. Counci €member Bechtel said on page 2-8, a table was referred to describing prices of houses and an average price, size and price per foot, -etc, were brought up. She said she was bothered by the use of "average." She wondered if they really meant average or did they mean "median." She asked if it should be recalculated because it was being used on the basis of making assumptions abodi prices of houses., Mr. Recht said that certain information was conveyed in "average" and certain information was conveyed in "median." He said he would think that either one was relevant in the situation lie said all the individual data was looked at and they did not find that they had isolated extremely high values compared to what the situation would be if they had used medians. Councilmember Bechtel said she was bothered by the fact that Portola Valley's price range was quoted as from $230,000 to $1,050,000-, and -she did not know how many were in the million dollar range, and if there were a lot, it made a difference. Further, she said there were various assumptions made by the con- sultants in the report, and she said Council was using their expertise to make some critical decisions, and she did not know the basis �n which the consultants had made their assumptions. She thought it night be helpful for some amplification.` She Said the term "it was unlikely that" had been used many times in the report, and she thought some sort of substantiation was needed if Council was to really accept the concept.. Mr. Hecht said that he mi ght be told later of concerns about the logic or gaps in the logic, arid he asked if it would be helpful i f he added some discussion as to -why the results in this situa- tion were different from the results of Livingston and Blaney report. Vice Mayor Fletcher said she was concerned about the fire poten- tial of the retardant types of landscaping that should be con- sidered. She said there was a comment re minimizing paved sur- faces and then within the next few sentences it referred to 32 feet _wide roadways. Mr. Smith said that the Fire -Department required a 32 foot, cub to curb dimension for fire access. Vice Mayor,Fletcher said she would like the Council to consider whether that was necessary. Mr. Smith said they also felt 32. feet was too wide, . but safety requirement not a traffic requirement. it was a 1 1 5 5 8/10/81 Vice Mayor Fletcher suggested that a precedent be cited whereby Fire Departments had accepted narrower roadways. Planning Commissioner Lanie Wheeler said that on page 3-5, near the top of the page, it was- stated that if 9th grade classes were shifted from Gunn High School to Wilbur, and she stated that as a matter of fact there was no proposal to put 9th graders back to the -middle school, but rather to fill up the middle school by moving the .6th graders up from the elementary-school into the middle school. She suggested that if the proposal to move the 6th graders came about there would be additional elementary school closures and the impact of that should be examined. She said she was also bothered by the cost of information on page 8-30 and beyond because she felt that many of the cost considera- tions as far as the City was concerned, went to the point of a development and did not go .beyond the time when the horses would be in place. She thought that the costs associated with the road, etc. were dismissed, that the fact that the roads would probably be dedicated streets and,- therefore, subject to repair and maintenance costs by the citizens of Palo Alto. She felt the same was true for Police and Fire services. Generally, she thought the report went into great detail, but she felt that most of the detail spoke to physical things, i.e. the land, buildings, building site, .and there was not sufficient discussion of the people that would live there, and what their needs would be. Mr. Recht said that more than one person had -spoken about the conclusions drawn with regard to the public services and costs. He said his firm did about two dozen fiscal studies a year and said they were complex. He said it_was common to have,- a report go over 100 pages in describing the very careful assumptions that were made behind the projections of revenues and costs. He said the work program was not set up to: be, a major fiscal question, but if that was at issue, he thought perhaps some considerations of what could be done to satisfy people should be made. He reiterated that the findings they made, within the scope of the study, were to identify the fact that the revenues ---would clearly be above average for homes in Palo Alto from the alternatives recommended. Based on conver sa 4i ohs with; the people. that sup- plied all the services, the ongoing cost of services would not exceed the averages. Then they looked at the cost of connection of. the services to make sure that there were no .front end costs to be borne by the City to present a deficit situation. He said that in essence, the logic would be that .if something paid above average revenues and. did not incur above average costs, it would not need to be subsidized. He felt her needed some understanding of which assumptions created the problem. Councilmember Fazzino felt communication was lost somewhere between Council, staff and the consultants. Further, he said, he was against the idea of the study, and still did not feel the study was necessary. He thought the Council was wasting $100,000 for a lot of boiler plate -language. He felt there was unclear economic information which he thought was the entire purpose of the report. The Council should have made a decision two months. ago with respect: to developing or not developing. 0nce that decision was made, the Council should have moved ahead and put together the necessary economic information needed at that time. He thought ' a smaller scale, economic study and, housing alterna- tives could have been commissioned. The Council was finding out tonight that the financial data would not be .extensive and he could not support the idea of spending $100,000 for a delineation of choices which were already before the Council. If the Council agreed' to dedicate, they had better do so -and consider trails and parks systems on the property. He said he . would prefer to make a motion to table the entire issue, but could not do so when 1 $60,000 was already down the tubes. He said short of tabbing, the issue should be presented in an open space v$. housing con- text because that was the critical issue before the Council. He said he needed nece: nary financial information to deterAnine pos- sible rate of return to the. City with respect to various housing alternatives. He said he viewed Chapter 8, verse 4 to be the only critical element of the study, and if that information was not adequate, he felt the entire study was rendered obsolete. Further, he thought this type of study session was unnecessary. If specific suggestions and comments were needed, they could have been forwarded directly to staff_ . He did not sense any focus in the discussion, and felt it had been a waste of time. Planning Commissioner Mike Cobb also felt that the big issue was whether to build or not to build housing on the. property and that all of the trade offs and associated issues should be highlighted and made clear, but in this report, they tiad to be dug out piece by piece. He said that on page 526, there was an extraordinary level of detail about designing interiors of the homes, etc., which he thought was a total waste of time since there were big issues that were not clear. He thought that since the money had been spent, he wanted to see the report have an executive summary which would bring together all of the salient data which pre- sumably the report was supposed to highlight in the form of tables, gxaphs and short summaries, which would quickly compare things like cost benefit trade offs, social and environmental economic issues, etc. He thought the public would be better served with that type of short executive summary where they could understand what was going on. Planning Commissioner Pat Cullen said she :found: the statement of the wind patterns, with no data or reference as to where the data came from, contradicted other wind studies which had been done in the past. She was curious where the one school age child per unit information was found. She also said that the profit Margin, which had already been mentioned, was a critical item, and she had no way of assessing any of that from the report. Mayor Henderson said in his own mind he had moved in the direc- tion to have a consultant because he wanted some data on whether to consider building or not building. Re thought that required answers to three broad areas --was the 77 acres buildable to begin with,. what_ were the Visual Impacts, and what were the financial results, He agreed wi ter_. some of his colleagues that he. did not feel 'he had enough- information on the third area. He was con- vinced the area was buildable-, but was not sure that the 77 acres was the` best spot visually. FINAL AOLlO RNMCP1T Final adjournment- was at 113-40 p.m. ATTEST:' APPROVED: