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HomeMy WebLinkAbout1979-12-10 City Council Summary Minutesary COUNCIL MINUT€S 1 Regular Meeting December 10, 1979 ITEM Oral Communications Consent Calendar - Referral Items Preliminary Capital Improvement Program - 1980-85 Referral to Finance and Public Works Conr i ttee Consent Calendar .. Action Items Agree :nt with Community Association for Retarded Newspaper Recycling Revenues Crescent Park I Underground Utilities Project Service Conversions --Award of Contract Federally Mandates Amendment to Deferred Compensation Plan Public Hearing: 644 Maybes l Avenue - Application for Preliminary Parcel Map by C.D. and Valerie E. Robinson Human Relations Commission Reports to City Council re Rental Housing Issue Oral Communications - None Adjournment 1 CITY OF PALO 1LTO PACE 325 3 2 5 325 325 325 325 325 326 326 336 3 3 t 324 12/10/79 Regular Meeting December 10, 1979 The regular meeting of the City Council of Palo Alto met in the Councllchamber at 250 Hamilton, at 7:30 p.m., Mayor Henderson presiding. PRESENT: Brenner, Eyerly, Fazzino (arrived 7:35) Fletcher, Henderson, Levy, Renzel, Sher (arrived 7:35), Witherspoon ABSENT: None ORAL COMMUNICATIONS None CONSENT CALENDAR Referral Items PRELIMINARY CAPITAL IMPROVEMENT PROGRAM BLYC tKS DI IITTE ! (C : b:9) Staff recommends that the 1980-85 Preliminary Capital Improvement Program be referred to the Planning Commission and Finance and Public Works Committee. Action Items AGREEMENT WITH COMMUNITY ASSOCIATION FOR REiARDEii (CAR} Staff recommends that Council approve the proposed contract with C,A.R. for the promotion of newsprint recycling and adminrs;.ration of the contract with a newsprint broker, to become effective through June 30, 1981. AGREEMENT --NEWSPRINT RECYCLING PROGRAM Community Association for Retarded (C.A.R.) CRESCENT PARK I UNDERGRO 00 UTILITIES PROJECT 0:9) Staff recce that the proposal of Bay City Electric be accepted for the service conversion work in Crescent Pare: ! area, and that the Mayor be authorized to execute the accompanying contract on behalf of the City, and that the budget amendment be adopted to _ _cover the _ anti ct patod expenditures from City accounts. expected to total ,about $90000 as additional requests are r';ecei ved . !'DIME 3174 entitled "ORDINANCE OF THE COUNCi OF TH1 CITY OF PALO ALTO AMENDING THE BUDGET FOR FISCAL TEAR 1974-80 TO PROVIDE ADDITIONAL FUNDS FOR CRESCENT PARK I UNDERGROUND CCNVERS ION PROJECT. ° AGREEMENT --Bay Area Electric FEDERALLY NAMATED NIESONENT TO RESOLUTION 5755 entitled "RESOLUTION OF THE C UNCIL OF THE CITY OF PALO ALTO AMENDING RESOLUTION RELATING TO THE CITY'S DEFERRED CO ENSATI ON . " 325 12110/79 MOTION: Councilmember Witherspoon moved, seconded by Fazzino, that Council approve the Consent Calendar. The motion passed on a unanimous voice vote, Vice Mayor Sher and Councilmember Fazzino atsent. Vice Mayor Sher and Councilmember Fazzino arrived at 7:35 p.m. PUBLIC HEARING: 644 MAYBELL AVENUE rsruartirrormairrmNARy PARCEL 'KKAP 1 The Planning Commission unanimously recommends approval of the application of G. D. and Valerie E. Robinson for a preliminary parcel map located at 644 Maybell Avenue. Mayor Henderson opened the Public Hearing and having ascertained that no member of staff, Council or the public wished to be heard on the matter, he closed the Public Hearing. MOTION: Councilmember Wiherspoon revved, seconded by Eyerly, that Council approve the Planning Commission recommendation. The motion passed on a unanimous voice vote. HUMAN RELATIONS COMMISSION REPORTS rrterr t SSUE Don Way, vice chairman of the Human Relations Commission (HRC) retraced events that led up to submission of HRC`s report. In August FRC Commissioner Douglas Winslow had made a presentation on the rental situation 1r Palo Alto, and asked that Council draft an ordinance for rental housing arbitration. A public hearing had been held by HRC on Septem=ber 27. About 50 people had spoken about insufficient rental housing, increasing costs and related abuses, and effects on renters of owners refinancing properties. A special meeting on October 25 considered how best to report to Council, and the decision had been reached to report on oral and written presentations made during the study period. Many hours had been spent working out a solution for how best to call attention to and offer means on how HRC could help. Mr. Way continued. He saki that HRC, on a vote of 6=O, with Commissioner Trailer not participating, sends the report to Council for .its urgent consideration. Three shortter°m options suggested had been 1) adoption of an ordi Wince; 2) take no action; 3) the HRC would develop a...a more accurate evaluation of the problem. .' In the long term, Mr. Way said, attempts to control rising rental costs were a major, comity problem; if Council approved HRC would take more active steps in the community. Mr. Way said that Tim Trailer had disqualified himself because of conflict of interest; all other commissioners participates in the preparation of the report. Namur__ Hendersonthanked rig ers of .9he-flameen Relations cir p�aS.i 'l p for $r._work. He.advised -'embers if _t public wishing to -speak -on -the ---=-------- matter before Council that Counc11members had received detailed information on tiRCis deliberations and copies of the testimony. He asked for brevity. Roy Abrams, City Attorney, informed Council that in November, 1978, the Fair Employment Practises Commission (FEPC) had dealt with conflicts of interest as they related to rent control, and it had ruled that there would be no conflict of interest so long as any Councilmember owning four or more rental units disqualified theselves. Theodore M. Olson, 2360 Carmel Drive, said he was a landlord. He referred to a memo s i gad by HRC comoi s s i oner, Douglas Winslow. He said that paragraph 2.12, subparagraph (e) stated: "...that the legal owner of no more than two single-family residences within Palo Alto. . . ." raised e question In his mind as to limiting ownership to Palo Alto residences, and further, that such an owner could have his own dwelling and one 326 12/10/19 rental unit and be exempted from rent control. He questioned other restrictive stipulations. He said a rent freeze at present rent levels would hurt his income --he was retired. He thought that higher rents would help solve the jobs/housing imbalance, and also, since industry's jobs created the problem, industry should try to help, perhaps by building housing over industrial parking lots. Mayor Henderson informed listeners that no ordinance was before Council, and the Winslow ordinance had only, been a proposed ordinance. David Springman, 3232 K pling Street, said he thought rent control took income due to the investor as his rightful return on investment. He objected to an additional governmental control. Mignon McCarthy, 1180 College Avenue, said she was chairman for the Campaign for Economic Democracy (CED) and she represented Palo Altans for Affordable Housing at the meeting that night, who were trying to find solutions to rent increases and arbitrary evictions. There were lacks of both housing and of affordable housing. She gave statistics illustrating the intensity of the problem, and said it was caused by City and Federal Governments making hasty, imprudent decisions, leading to "...a housing disaster." She said her group called upon Council to enact a freeze on rental units in Palo Alto retroactive to December 1, 1979. She said that Councils in Los Gatos and Berkeley had taken similar actions recently; Council could then take steps to enact a rent stabilization ordinance. Fred Weiner, 2932 Emerson, represented Palo Altans for Affordable Housing. He said excessive rent increases and arbitrary evictions had been documented by tenants in Palo Alto. Proposition 13 tax savings had not been returned to tenants. He thought emergency rent stabilization should be imposed, while housing was being provided. He suggested other short terra ameliorations to the rental problem, saying that mediation did not work. He displayed a chart with a "Comprehensive Plan" to equalize rights between tenant and landlord retroactive to January, 1978, with registration of rents charged to be required, along with some regulation of anti -speculation in rental properties. He asked that a just -cause -for -eviction provision be matte. He said 100 people had signed a petition asking for a comprehensive rent stabilization ordinance. Renters had' no one to turn to but the City, he said. Councilmember Levy asked Mr. Weiner ghat percentage of return on a landlord's investment would be considered fair. Mr. Weiner replied that guidelines would have to be established on the basis of market value and amount of invent alone with amount needed for maintenance. Bill Cane, 636 Webster, said he worked with the Tenants' Union and Palo Altans for Affordable Housing. He said landlords were unable to resist charging high rents owing to an imbalance of power between landlords and tenants --there was no mechanism by which the landlords' power could be checked. Landlords' power was an archaic survival of feudal times. There was no free market in housing; the monopolistic situation had been created by government. He said evictions could be without notice, and rent increases requ i red only 30 days' notice. Unrest fool l owed upon hardship from excessive rents. Government should act to restore equity. Herb Borock, 3401 Ross Road, said his group, Palo Altans for Affordable Housing, were asking for a material change from the status quo, and such a change would not be supported by landlords. The 'landlords' ordinance" would never help tenants; rental mediation did not work. He listed some of the shortcomings of proposals to date. He asked who would be selected to sake up a mediation board, noting that any board's recommendation would not have the effect of law. He asked that Council "...set a price on a good (rent) that would preserve the unity,' by writing an ordinance that controlled rants_ in Palo Alto. 327 12/10/79 ' f Terri Owen, 3081 Emerson, observed that no savings had been passed on to tenants in the wake of Proposition 13; instead rents had been raised, She said skyrocketing rents were the equivalent of eviction notices. That demonstrated the ineffectiveness of so-called 'voluntary' rent decreases that had been predicted. She said she could not believe that the City would ask that tenants again approach landlords to ask for moderation of rents. i 1 Frederick U. Ross, 455 E. Charleston Road, read a resolution passed by the Social Concerns Committee of the Palo Alto Unitarian Church asking that the City Council pass a rent stabilization ordinance immediately. He stated that members of the Social Concerns Committee had been threatened with eviction if they raised their voices against escalation of rents. He was not so threatened, because, as a resident of Stevenson House, the federal government subsidized rent if it exceeded one-fourth of a tenant's income. He said such silent renters would remember, on next election day, how Council members voted on rent stabilization. Martin Gordon, 633 Channing, said he owned a house and a small apartment complex in Palo Alto. He said he had been appalled at over -dramatization and inaccuracy of renters' presentations at a recent HRC meeting. He thought the amenities offered by Palo Alto attracted renters to the community. He said that he knew some retired people who had been unable to maintain themselves with the high costs in the area and had moved where costs were lower; he thought that was reasonable —they had no assumption that the community should support them. He thought many renters' positions were unreasonably based. Richard Herndon, 1554 Walnut Drive, said he had managed and sold real estate for 15 years. He observed that rents had risen just as dramatically elsewhere. He noted that people chose not to live in such areas as East Menlo and East Palo Alto and Mountain View. He noted that Stanford University personnel and students made the rental market seasonal, because they left after the academic year. If Stanford built the number of units it proposed the rental market would be seriously affected. Horace Anderson, 1087 Embarcadero Road, said he was perhaps a sociologist and sensitive to the rights of the problem of human rights versus property rights. He said the young people in attendance should be heeded since they were Ammerica of the future. He told of 3 O1=yeas old woman renting at $225 per month, on social security of about $400. That rent had now been increased to $305.00. The person was his mother, he said. Hal Plotkin, 2015 Edgewood Drive, said he had been unable to get any vote for a resolution for rent control at the California Democratic rally. He listed some rights tenants should have, anti he said he hoped he would hear some reasons, for it had In - unreasonable up to now. Dale Denson} 1068 Universitv_Avenues_said -, - Grp@ € to rent conitroi; Palo Alto had a rental problem because of reflation and because it was a nice place to live. He said rent had not increased as much as many other necessities. He asked that more housing be built and fewer rules made. Richard Kmlablin, 461 Hawthorne, praised the City's innovations. He suggested that another innovation be rental units built without parking places to rent to non -automobile owners owner. He objected to destruction of housing for parking places, and conversion of housing into offices. He thought Peter Coutts Hill and proposed air rights housing would only benefit developers. He suggested housing on the Arastra property. He said not ire -lieu but actual housing should be paid by developers. Robert Moss, 4010 Orymee, read a quotation from the Wail Street Journal telling of the sense of betrayal felt by renters at not having any savings result to them, much less eny pass -through of savings, resulting 328 12/10/79 from the passage of Proposition 13. Moral suasion did not work with landlords, he said. He equated the market in housing in Palo Alto with the commodity market in the financial world. He cited figures showing rentals were few in number; he asked that there be legislation against arbitrary eviction of tenants. He said tenants were silent about complaints for fear of eviction. He said the City was the only hope of renters. Mabel Deer, 732 Sutter, read an article that likened the charges by landlords to the charges for oil wade by OPEC countries, and proposing communal ownership plans for housing. She praised the California lifestyle that induced people to mingle in their communities, and asked that such enlightened people work toward a solution of the problem of rising rents. Pete Waller, 3655 LaCalle Court, said he had owned a small apartment building for two and one-half years. He said he thought Palo alto was a cynosure of Peninsula activities because it was a well organizedcommunity, with amenities, He thought the housing shortage was peninsula -wide, and that high rents had to be obtainable to make it profitable for developers to build more apartment buildings. Costs for building public housing, it had been found in Britain, were higher than when done privately. He. thought depletion of the nation's resources, and a less productive workforce would lead to higher costs for housing; The traditional check on possible greed on the part of landlords had been an adequate supply of available housing, thus giving renters options. He thought the better -than -average economy of the country should lead to building more housing. He was sure that costs of such housing would be higher than people liked to think about paying. Ruben Abrica, 1228 Harker, acknowledged that these were difficult financial tires, and that st times landlords abused those circumstances; he thought a mediation board or the like could assess whether or not such abuses were being inflicted --there appeared to be substantial evidence that they were. He thought it was the responsibility of elected officials to prevent such abuse, perhaps with a rent freeze while further steps could be ascertained. Sharon Durga, 411 Grayson Court. which she said was an unincorporated area, where, as a single parent, she was raising two children. She said she had to live where there were bars on the windows. As a native Palo Al tan she thought she was enti tlet4 to live here, whether she could afford it or not. Judy Kalmar, 3351 Alma Street, said that if rents rose more she would not be able to afford food. Mayor Henderson spoke of receiving a phone message from Elmer Hawkins, president of the Palo Alto Board of Realtors, who said the board felt lack of housing lay at the heart ef_ _t! probl�.__. ,...a �._L_.1 _ that , -i - _ _.._ �..:.....w.., aea+w ��R�6i Lt�Q�, Council not set up a rent control board ,__or_ _a_rental_mediation group. Robert Herriot, 40 Churchill, spoke against rent control but asked if landlords or tenants should share inflation costs. He felt a board governing rentals could be as arbitrary as 'andlords. He noted that a 'landlord' who bought rentals at the present would have a negative cash flow for about seven years before he started getting a return. John Kl imp, 251 Ha+mi 1 ton Avenue, said he was a director of the Tri - County Apartment Association. He asked if other costs such as utilities would be frozen if rents were frozen. he added the costs of plumbers and the like, as well as dwelling insurance. had risen. He said inflation was the culprit. He cited the unfairness of the effect of the rent freeze in Los Gatos. He, felt that the present public hearing was intimidating with its confronting atmosphere, and he asked for a smaller forum in which to discuss problems. 329 .12/10179 Don Surath, 1930 Ivy Lane, asked how long half the population could be held in bondage and fear by a small number of people who happened to be fortunate enough to be in a position to own rental property. He said that if suppression of renters continued renters would support only those Councilmembers who voted for some rent control measure. Kermit Knopf, 930 Palo Alto Avenue, said he was with a management company that represented about 110 rental units in Palo Alto. He said he had heard both sides of the rental issue, and thought both sides experienced inequities. Current housing prices had forced younger and older purchasers out of the market, and by comparison rental housing was "...still a very good deal." Me thought a freeze would be unfair --he asked that there be further study. Bodil Gordon, 633 Channing, said she agreed with the foregoing speaker. She urged Council not to put in a rent freeze; that would mean people would not purchase further housing for rental. She listed some of the damage inflicted by renters on property, for which the landlord had to pay. She suggested that elderly who needed help paying their rents be subsidized. She felt that people did not have a 'right` to live where they chose, only where they could afford to live. Kathryn Der cat, 241 Seale, objected to unfair statements made against landlords; she said that charges to property owners had increased. She listed the ways in which she tried to be fair and reasonable: She spoke of sacrifices many made to acquire property, and she objected to renters asking that landlords subsidize them. Henry Spring, 332 Webster Street, said his landlord had called him an ideal tenant; he did the n.ainterance himself with the landlord paying for the materials. The landlord had doubled the rent this year, $450 for a one bedroom house. Mr. Spring said he was unemployed, and his landlord, on hearing that, had replied, "only rich people will be able to live in Palo Alto." Russ Haag, 159 Walter Hayes Drive, expressed surprise that the subject of rent control was being discussed in view of the fact that the issue had been turned down at the polls twice in the last several years. Mr. Haag said he thought the threat of rent control had done much to raise rents, so that they would he high if rents were frozen at a certain level. He said that landlords had earned the money to buy their rental errs# is; .he thought the aged and those who were otherwise handicapped should be helped. Zithers sheuld have to work to get theirs. He said he rented one half of his duplex at three -fifths of its market rental value. Beverly Schatzel, 4276 Wilkie Way, said she was both tenant and landlord. She thought rent control was the last resort of tenants who suffArdmi +ya+ti.aae t ri i i d C i onary rents. She said she rented where there was an absentee_ -landlord who had raised rents every six months. Renters needed someplace they could go to to appeal such increases. Michael Stogner, 4005 Farm ifiil Boulevard, said his real estate fins represented about 150 rental units throughout the peninsula and he was very concerned about rent control. He said that those wishing to buy property could borrow up to 80 and 90 percent of. the agreed -upon market price, and so much property was changing hands. He said that the proportion of the pr'opertya er' s i ncoane that went to purchase the property determined how much would be charged for the rent. He deplored speculation in real estate, and he differentiated been real estate speculators and real estate investors, the latter being those who saved to buy an income - producing property for their old age --he favored investors. 330 12/10/79 RECESS Council recessed from 9:50 to 10:10 p.m. Bernice DiGiovanni, 632 Chimalus Drive, said that government regulation arose from need of the people, "...from the bottom up, and only after there has been lots of injustice and much agitation for redress." She cited the EPA as a case in point, and others: FDA, SEC, and the like. Frances Dyer, 501 Forest Avenue, said that the tenant had the best of the deal, for he did not have to put up the money the owner did. She thought the attempt to regulate owner's negotiations with tenants would end that good deal to tenants. She thought the risk was high to landlords rent on a one -month basis. She did not think Proposition 13 was designed to pass through savings to tenants. Larry Chew, 204 waverley Street, said he thought a mediation board probably should be established. He thought some rent increases were justified by rising costs. Taxes, he said, were only about 60 percent of a landlord's expenses --increases in other expenses eroded other • savings. He noted that buyers of income property since 1975 paid taxes on the current market value of the property, with an additional 2 percent beyond the 1976 level. He spoke of the downturn of rental property in the East; he was proud of the beauty and other good qualities of Palo Alto, and he did not want to see the town dtteriorate because landlords could not afford to maintain their properties because their rents were frozen. He asked if anyone present would invest in anything on which no money could be made; the 'smart money' was going out of state, he said, where there was not the threat of a rent freeze. Mayor Henderson said he would begin the Council portion of the discussion by proposing some action; he thought some positive action should be taken. The rent situation, he said, was critical and there did not seem to be clear options. Mayor Henderson said he had helped to write Proposition H, that he thought fell far short of rent control, and even so it had failed at the polls. He said no rental construction had taken place in Palo Alto for five years --only condominiums had been built. He sensed that Council was unwilling to enact a rent control ordinance without majority support from the electorate. Mayor Henderson said he thought rent gougers should be brought to light, and the practise should be slowed dowry !MOTION: Mayer Henderson moved, seconded by Fazzino, that Council direct staff to prepare draft legislation within the following guidelines: 1) Establishment of a_review board, possibly consisting -o` ors of the iirrent Rental Housing Mediation Task force (RI TF); 2) recognition of the right of any tenant to obtain a hearing before such board if the tenant has experienced a 10 percent or greater increase in the past 12 Feret ray 3) f-.arelas u* jr eeeuhemeee for sir landlord to appear before the __- _ra is board if a-- hearing is- caul led; 4)- Ord hearing to b aped to the public, with .tie and location information provided in advance to the media; 5) Regeirement for review board members to make a recommendation at the close of the hearing; 6) Voluntary implementation of the board recommendation by Cie landlord; 7) Effective date of legislation to be retroactive to December 1, 1979; 8) Exclusions from legislation to include rental units in a building containing four or fewer dwelling units, one of which is oar -occupied, and sino1e-family residences when the legal owner owns ho more than three rental units in Palo Alto; 9 ) Legislation to include just -cause provisions for -.evictions, including prohibition of eviction for reason of tennt protests over rent increases or participation in actions to control rent increases. MOTION( continued) Part II --Staff to prepare draft ordinance within the guidelines of the proposed'state rent control initiative, and to review for Council significant differences_between such an ordinance and the ordinance currently in effect in San Jose. 331 12/10/79 (Mayor Henderson said that early polls indicated that the state rent control initiative would pass --he thought it would be good for Palo Alto to be among the first to put the rent control initiative to its voters.) Mayor Henderson said it was obvious that the housing problem was the City's biggest issue --new housing could not be produced in any short period of time in major quantity, and, with Palo Alto's limitations, perhaps not ever. MOTION (continued): Part III --that Council direct staff to report to Council on the feasibility Of establishing requirements for 10 percent of rental units in rental facilities of 10 or more units, to be set at moderate -income rates per federal income classifications. Reports en the three parts of his motion to return to Council by February 18, 1980. Councilor ember Fazzino said that though he had some questions on parts of Mayor Henderson's motion, he would second it for purposes of discussion. Councilmember Fazzino expressed surprise that the rent control issue was being discussed so soon after the majority of those who voted rejected for the second time what had probably been a mild form of rent control. He thought 'rent control' was a simplistic approach to a solution of a much nroader problem, that is, housing costs and housing supply. He said that he could consider rant control if housing prices were fixed. He referred to his own personal experience in dealing with the expensive housing situation. He thought Council's efforts were best directed to decreasing the area's jobs/housing imbalance, through supporting the combining of residential with industrial uses and the like, along with actual housing, rather than in -lieu housing money, to be provided by developers. He held that Palo Alto had supported condominium conversion protection P isures, and housing for seniors. He said that though he did not support rent control he did support rental mediatici, because he thought pressure on some landlords would be helpful. He thought voluntary cooperation on the part of landlords was adequate, and he would support RHMTF's dealing with 10 or more percentage increases in rents through the course of a year on non -owner -occupied properties of 5 or more units. Councilme ber Fletcher said that she thought the negative vote at the polls for rent control was perhaps only for that time, because rent increases then had not been so dramatic. Recent rant control measures that had passed in other communities were having the desired effect. She cited a study done by HUD showing that increased costs to landlords had not been passed on to renters in a fair way. She wanted a rent review board to be able to impose mandatory, not voluntary, _ control , c ause there would=be loss of interest _with_t3mA---A1 n_ it i,_ ,ei fficot to - - locate absents landlordso_and manaoement firmscarried sout-their--orders--- She thought it was the responsibility of this Council to enact protective legislation forrentersthat had been neglected by former Councils. Council ber Fletcher continued; she did not agree fully with the proposed state rent control initiative --she did not think that rent control used locally had an adverse effect; also, the state initiative would prat the local rent control ordinances now in effect. She did not approve of rent increases being set at the Consumer Price Index (CPI) because it was often highest* and also maintenance and capital improvements were included, thereby increasing the rent. SUBSTITUTE NOTION: Councilme ber Fletcher moved, seconded by Brenner, that a rent freeze be instituted immediately to stay in effect cntil a wore permanent rent stabilization ordinance is enacted, and ' that the City Attorney be directed to write a.rent stabilization ordinance based on the ordinance recently enacted in the City of San Jose, and that the_ Corrected See Pg. 388 1/21/80 332 12/10/19 Corrected See Pg.388 1/21/e0 matter of the makeup and function of a rental mediation and arbitration board be referred to the Policy and Procedures Committee. Councilmember Fletcher amplified that the San Jose ordinance permitted a 7 percent annual rent increase once a year only, or when a vacancy occurred. A rental mediation board would intermediate on proposed rental increases over the 7 percent. Councilmember Witherspoon ascertained that Councilmember Fletcher'_s motion was for residential units, and not commercial. She added that the 35 percent of residential rentals could be easily sold and taken off the rental market should property owners think Palo Alto did not have a goon rental climate. She noted that so many people wanted to live in Palo Alto that tenants, with rent control, could sublease to others and by-pass the rent controls. She deplored the lack of elasticity in the rentals charged, though savings could be made on other necessities. She did not favor the substitute motion. Councila-'e ber Brenner said that the rapid increases in rents over the past year made the rent situation abnormal. With the present jobs/housing disparity there was no defense against arbitrary rent raises. She invited the audience to return to the Councilchamber when Council grappled with that issue; "...in the meantime I feel we crust support rent stabilization," as so much need was felt by people on fixed incomes. Corrected Councilmember Renzel observed that 45 percent of the City's residents See Pg.3-S8were renters. She thought a balanced community would ideally include low - 1/21/80 income people who could not afford to buy. She thought some defining was needed of what "fair return on investment" might be to a landlord. Rents charged followed the amount asked were the residence to be sold. She thought the rental market would diminish as prices rose and qualifying buyers thus became fewer. She thought there should be Council intervention in the multi=family units. Councilmember levy ascertained that Councilmember Renzel thought that 7 percent plus costs was a reasonable rate of return on a rental; owners still received tax benefits and increased equity both of which were carried by the renter. Mayor Henderson differentiated between the 7 percent increase in rent that the motion spoke to, as compared with a 7 percent return on investment. Councilmember Levy said that in his experience with rent controlled apartments in New York City maintenance had sufferei as had the tax base for the city. He said that ministration on laws such as rent control were costly to administer. His research had indicated to hi* that the problem lay in inflation, rather than of just rents. He read figures on the increases in incomes, the CPI, food, and the like, with rents having risen only 67 percent, significantly less than the foreccine. _ He_said -.- -- i..hat" people on tied incomes received help on social security, and figure on goverment help on housing and medical costs. He noted that many students and others had adequate incomes and did not need help. He listed cities that had rent control but did not have jobs/housing imbalance. He thought the question of 'fair rate of return' had to be addressed first. Ceuncilmea ber Eyerly opposed the substitute motion hecause it proposed things he thought would aggravate the. problem; the acute Say Area housing problems was the basic cause, impacting both buyer and renter. Housing over parking lots might help the problem and he hoped Stanford would develop its Sand Hill Road proposed low-income housing, and there was discussion of building student housing near Lake Lagunita. He thought there might be some fairly high density housing along the Southern Pacific Railroad tracks. 333 12/10/79 1 1 Vice Mayor Sher said he thought Councilmember Fletcher's rent control mottoo permitted Councilmembers to demonstrate lack of or support of the idea of rent control. He was opposed to rent control --he feared it would create a black market, accelerate conversions to ownership units as in cooperatives; administrative costs were high, and lack of maintenance by the owners of rental units was a problem. He agreed that there was a crisis; he thought those who felt that should go on the ballot again. He thought that if the rent control measure passed there would be a great deal of pressure to examine the condominium conversion ordinance again, because apartment owners could not be expected to have rent control imposed and not have the option of converting. Councilmember Fletcher pointed out that study showed that the new generation had kept up maintenance when rent control had been put into effect. She added that she had learned through the City Attorney that the condominium conversion ordinance also precluded conversion to cooperatives. Councilmember Renzel recounted an episode involving an aged woman and the rent increases that woman was experiencing, and observed that 'r...there are serious problems for renters in this town. . . .° SUBSTITUTE MOTION FAILED: The motion that a rent freeze be instituted immediately to stay in effect until a more permanent rent stabilization ordinance is enacted, and that the City Attorney be directed to write a rent stabilization ordinance based on the ordinance recently enacted in San :Jose, and that the matter of makeup and function of a rental mediation and arbitration board be referred to the Policy and Procedures Committee, failed on the following vote: AYES: Brenner, Fletcher, Renzel NOES: Eyerly, Fazzino, Henderson, Levy, Sher, Witherspoon Mayor- Henderson reminded Councilmembers that his motion was simply a directive to staff to return to Council with data he had been presenting: it was not endorsing final action on any of the steps he had proposed. Councilmember Fazzino said he supported that sense of the motion; he had been concerned that enforcement of the motion's mandatory specifications would be difficult at present. Councilmember Witherspoon asked that Ccunc f 1 vote on each of the three parts of Mayor Henderson's motion separately; she did not agree with the mandatory aspects of his proposal, "...as you know I'm more Libertarian on this subject.' Councilmember Levy said the idea of a review board was only superficially attractive. Among its disadvantages were the tools available .to the landlordwith_laroe holdings such _At atteeeeys beekktepers end _th like. Councilmember Eyerly said he hoped the motion included some estimate by staff of the costs to the City of establishing a review board; he wanted to assure also that the City not duplicate the proposed state rent control machinery. He wondered what mechanism would bring about mandatory appearance of landlords at hearings. He wanted to hear staff's comments on the proposed volunteer effort at imposing rent control, and also, he wanted to hear what chid be legally done to set standards for what was to be just cause for eviction. He said he saw no reason to compare the San Jose ordinance with the proposed state initiative --he did not want to make extra work for the staff. He did not support the motion fully. Corrected See Pg. 388 1/21/80 .1-i2/t0/79 Vice Mayor Sher said he did not support the motion and would not unless he thought there was tenant support for a review board; if tenants thought it was just a gesture Vice Mayor Sher suggested that perhaps a panel of the Human Relations Commission could act as the proposed rental board. He suggested that one requirement of rent control might be that the landlord would have to get permission from a proposed rental board in order to impose a rent increase, rather than imposing on the tenant the burden of appealing to, the board if an increase were made. He acknowledged that such a change would encourage big -business ownership. He would support the first part of the motion. Councilmember Fletcher asked the City Attorney about the City's right to require that landlords appear. Mr. Abrams, City Attorney, said the Council has subpoena authority that could be delegated to an interior body through an ordinance. He did not know if Council had extraterritorial subpoena authority. "Another way is to make it a crime if you don't appear.". Councilmember Fletcher spoke of the difficulties encountered in even identifying landlords. Mr. Abrams replied, "We can only go to the assessor's rolls and see whose property is vested in the roll." Councilmember Renzel said she supported the first part of the motion. AMENDMENT: Councilmember Renzel moved, seconded by Levy, that Council request staff to report on the legality of requiring the availability of a one-year lease on rental units, and a 60 -day notice of a proposed raise in rents. Councilmember Brenner said she would vote for the main motion so that the subject would be kept under consideration and also she would favor the amendment. She suggested that a proposed review board might be appointed by Council --meetings that would be open to the public would be important. Councilmember Levy said he would like to have costs to the City of establishment of a rental board spelled out; he favored mandating that a one-year lease be offered to tenants. He observed that renters could not accommodate their life habits to rent costs, because they stayed inelastic, unlike food and clothing. AMENDMENT PASSED: The amendment, that Council request staff to report on the legality of +i r ng the availability of a one-year lease on rental units. and a 50 -day notice of a proposed raise in rents, passed oil a unanimous vote PART ONE OF MA1N MOTION PASSED: Part one of the main motion, that Council direct staff to prepare draft legislation, r#thin the following guidelines: 1) establishment of a review board (possibly consisting of members of the current Rental Housing Mediation Task Force /Rt iF/); 2) recognition of the right of any tenant to obtain a hearing before such board if the tenant has experienced a 10 or more percent increase in the past twelve months; 3) Mandatory requirement for the landlord to appear before the review board if a hearing is called;.4) board hearing to be open to the public —time and location 1 nforMatioo provided in advance to the media; 5) requirement for review board members to make a recommendation at close of hearing; 6) voluntary implementation of the board recommendation by the landlord; 7) effective date of legislation to be retroactive to 335 12/10/79 December 1, 1979; 8) Exclusions from legislation to include rental units in a building containing four or fewer dwelling units, one of which is owner -occupied, and single-family residences when legal owner owns no more than three rental units in Palo Alto; 9) Legislation to include just -cause provisions for evictions, including prohibition of eviction for reason of tenant protests over rent increases or participation in actions to control rent increases, with such draft legislation to be completed and returned to Council by February 18, 1980, passed on the following vote: AYES: Brenner, Fazzino, Fletcher, Henderson, Renzel, Sher NOES: Eyerly, Levy, Witherspoon PART TWO OF MAIN MOTION FAILED: Part two of the main motion, that staff prepare a draft ordinance within the guidelines of the proposed state rent control initiative, and to review for Council significant differences between such a proposed. ordinance and the ordinance currently in effect in San Jose, failed on the following vote: AYES: Brenner, Fletcher, Henderson, Renzel NOES: Eyerly, Fazzino, Levy, Sher, Witherspoon PART THREE OF THE MAIN MOTION FAILED: Part three, that Council direct staff to report to Council on the feasibility of establishing requirements for 10 percent of rental units in rental facilities of 10 or more units to be set at moderate -income rates per federal income classifications, failed on the following vote: AYES: Brenner, Fletcher, Henderson, Renzel NOES: Eyerly, Fazzino, Levy, Sher, Witherspoon MAIN MOTION AS AMENDED: The main motion, as amended, passed on a unanimous vote. Councilmember Fletcher said she would like an ordinance protecting renters from arbitrary evictions. MOTION: Cosncilmember Fletcher moved that the City Attorney draft an ordinance including the words as follows from the San Jose ordinance: Possession of a rental unit shell not be recovered by a landlord from a tenant who is not otherwise in default . as to the terms of occupancy of said unit, if either the landlord's dominant motive in seeking to recover possession of such rental unit is retaliation to the tenant for exercising his/her constitutional right of free speech." Mayor Henderson said that the thought in Councilmember Fletcher's motion was__nart_nf__ilif!_.35�►1�"�f9f1__�itet..pAS!ed__ t�}___l...4- .bw.rf___for_just_"cause free - �- -- . ... ,�,�:�.` r .r«�v. It � :mo.. pc_Rs.w for -just cause free evict1€oi+s :1 chiding pr* .h1hftio t of eviction for' -reason of tenant protest over rent increases or participation in action to control that increase. He thought that was First Amendment protection MOTION WITHDRAWN: Councilmember Fletcher withdrew her motion. Mayor Henderson announced that next week's Council meeting would include o presentation by Stanford University on some of its future plans. ORAL COMUNICATIQNS None ADJOURNMENT Mayor Henderson adjourned the greeting at 11:4a p.m. 336. 12/10/19 AFFIRM: _ ,� APPROVE: City- Crerk 337 12/10/79 Mayor CITY CO UN IL MNUTES REVISED - Pages 344 and 345 ITEM Oral Communi cati oars Consent Calendar - Action Items Regular Meeting December 17' 1979 Resolution Providing Authority to the City Manager to Effect Certain Changes In Gas Utility Rates bi thdrarral of Territory ry Des i gnated San Antonio 75-138 From Front Fire District CITY OF MMiO ALTO PARE 339 340 &tyiar%ds Master Plan - Feasibility Study To Excavate Refuse Material For Sanitary Landfill Cover Special Orders of the Day: Presentation to Council the Vice Presidents of Stanford University 344 Oral Communications - None Cancellation of Two Subsequent Meetinsa Nifk Adjournment Attachments - Stanford University Finanrcial Charts CITY COUNCIL MINUTES Regular Meeting December 17, 1979 CITY 1PALO ALTO The City Council of the City of Palo Alto met on this date in the Councilchamber at 250 Hamilton, at 7:30 p.m., Mayor Henderson presiding. PRESENT: Brenner, Eyerly, Fazzino (arrived 7:40 p.m.), Fletcher, Henderson, Levy, Renzel (arrived 7:45 p.m.), Witherspoon ABSENT: Sher MINUTES OF NOVEMBER 13, 1979 Council ber Fletcher asked that the last paragraph be deleted on page 267. Coueei lmea ber~ Brenner asked that on page 264, the third paragraph read instead "Council a er Brenner asked wheat a market test would cost." Councilor Brenner asked that on page 270, fourth paragraph, the first sentence read instead: "Councilr r+ber° Brenner seid she was pleased that the house across from City Hall would remain in housing stock, . . ." Councilmenber Brenner asked that on page 214, the first sentence of the sixth paragraph read instead: "Councilber Bremner said that there had been so much misunderstanding regarding Peter Coutts that no longer did she feel that the Policy and Procedures Committee would be able to deal effectively with giving full discussion to the subject of annexation at this t1m ." Counciimember Brenner asked that or. page 275 the sentence on the second line read instead: "Mt. Abrams said he thought that the intent of the motion would allow Councilwember Brenner to return the item to the Council agenda . on December 3, which was the date set on the original otion, without it going to committee, so lcog as the information is presented that week. MOTION: Couecilmember Eyerly moved, seconded by Witherspoon, that Council approve the winutes as corrected. The notion passed on a unanimous Voice vote, Vice M4yor Sher a# t. . ICATIC 1. John Walker, 19375 Greenwood Circle. Cupertino, referred to Council action taken in relation to dredging the Palo Alto Yacht Harbor in June, 1980, and he asked if that plan was still in effect. Nsyor Henderson replied ti at. he thought a motion had been made to study the feasibility of continued county dredging of the yacht harbor. 2. Herb Borock, 3401 Ross Road, said that last week Counzil had directed staff to prepare an ordinance preparatory to appointing a rental review board. He said that Palo Al tans for Affordable Housing had ate that a rental review board be elected at .the polls by the people. He said that his research indicated that the present method of appointing boards was not in conformance with the Ra11004. aro, -Act tuftdesit with open meetings, ai wing that City Councils and the like could not make appointments to boards by way of a secret ballot because the electorate's ability to make evaluations of candidates would be severely restricted. He noted that Douglas Winslow's replacement to the Human Relations Commission had been made by secret ballot. He expressed the hope that the matter of the manner of election could be worked out before the new Human Relations Commission appointees were seated. Mayor Henderson noted that the City Attorney had said that the new HRC appointments had been made within the strictures of the Brown Act. He said that William Zaner, City Manager, Would look into the matter further. Mr. Borock ascertained that the former, not the present City Attorney, had advised Council that its method of appointment was within the law. CONSENT CALENDAR Referral Items None Action Items CounciImember Eyerly asked that his vote on the matter of excavating refuse material for sanitary landfill be recorded as 'no.' RESOLUTION PROVIDING AUTHORITY TO THE CIT \t1AGER TO EFF'EC1' CtPtAIN OmtES Staff recommends that Council adopt the resolution authorizing the City Manager to adjust gas rates as required or a timely basis to avoid any loss in gas utility revenues to the City as a result of a ?CAE rate increase. RESOLUTION 5756 entitled "RESOLUTION OF THE C RU UF NI CITY OF PALO ALTO PROVIDING AUTHORITY TO THE CITY MANAGER TO EFFECT CERTAIN CHANGES IN GAS UTILITY RATES (SCHEDULE G -I) (AMENDING RESOLUTION 5735)." WIT DR MAE OF TERRITORY i E ATEti skif iarreartr /5-138 Staff relates that the property should be removed from the Fit Fire District within one year of the date of annexation, which was April 3, 1979. RESOLUTION 5757 entitled "RESOLUTION OF THE COL IL OF TNE CITY OF PALO M.TO PROVIDING --FOR-THE-WITHORAVAL OF CERTAIN UNINHABITED TERRITORY DESIGNATED AS SAN ANTONIO 75-138 FROG! THE F ONT FIRE DISTRICT." BAS MASTER PLAN --FEASIBILITY F S IT1 t�F1 t The City has contracted with Cooper -Clark Associates to coact a preliminary technic. 1 feasibility studyfor use of refuse material as cover for sanitary landfill. ORDINANCE 3175 entitled *ORDINANCE OF THE METE-anfirCITY OF PALO ALTO AMENDING THE BUDGET FOR FISCAL YEAR 1979-1900 TO PROVIDE FUNDS FOR A FEASIBILITY STUDY TO EXCAVATE REFUSE MATERIAL FOR SANITARY LANDFILL COVER.* Councilmember Witherspoon said she wanted her vote on the Baylands Master Plan feasibility study to be recorded as an abstention. MOTION: Councilmember Renzel moved, seconded by approve the Consent Calendar. The motion passed Councilmember Eyer'ly voting 'no' on the Baylands and Councilmember Witherspoon abstaining on that Mayor Sher absent. PRESENTaT Y4 TO .UN *RA THE .10 IVERSITY Levy, that Council ce a unanimous vote, excavation feasibility, same matter, with Vice Robert Rosensweig, 1462 Dana Avenue, Vice President of Public Affairs, Stanford Universityf said that it had been six years since Stanford had talked with Council in a body. He regretted that Council's discussion with Stanford in the intervening years had been on issues that usually generated controversy. He found that symptomatic of the way in which universities had come to be viewed within their communities. Heretofore universities had been seen as above everyday issues: but now it seemed as though the work of the world was too importa. t to permit the work of education to stand in its way, and now all colleges and universities were subject to the same legislation as businesses and commerce; Stanford's medical school and hospital increased legislative burdens. He thought such a development was unfortunate. He said that Stanford's holdings, concerns with which brought it before Council from time to time, existed to make the teaching and learning possible. He emphasized that point. He would like the people of Palo Alto to take some satisfaction from that. Dean Crowley, Vice President of Stanford Medical Center, said it „ad been thriving for the past five years in its pursuit of new medical knowledge and production of professional medical personnel. The annual budget was about $175 million. The hospital admitted about 25,000 patients per year, and It provided a full range of medical services. Inflation had slowed down growth, principally, he thought, because of rising health care costs and resultant resistance by the public. State and federal funding for education in health-care professionals had been leveling off; that led to a squeeze between rising expectations on the part of the public and diminished resources with which to provide such ° care. The Center undertook both medical education and research along with patient care. Students and the teaching staff were linked to the delivery of patient care --a delicate balance to maintain, he said, and it required a community of can interest. He spoke of research work leading to first indications of DNA, the discovery of Interferon, a potential anti -cancer agent. He noted that research was being done on the body's immune system -indications were that there might be some predisposition to many chronic diseases such as rhemaiktoi,d arthritis and diabetes; there .might be a way of altering a genetic cede to avoid such genetics predispositions. Dean Crowley referred_ to the work -with heart trateapiteete eleno "pita treatment of patients withHodgkin's Disease and lymphoma that had increased survival rate within the last ten years over 100 percent. He said that almost a11: the paramedics in Northern California were being trained in Stanford Hospital's emergency room. He spoke of the regional resource provided by -natal 'intensive care for premature infants. He noted that there would be closer cooperation with the Children's Hospital: to the advantage of the children. Dean Coley said that while gam: in the Medical Center los not anticipated: theY were striving for modernization. The budding had to be brought up to code and had to .meet crake standards. More space was needed for a cardiovascular . research unit, and possibly a basic science unit. Dean Crowley spoke about physicians in the community. He said that the committee that had been working sine last Iry would continue to meet --some questioms were gradWly begin more clear.- dialogue would continue about both 1 , a d short -ran .goals of .hospi tat »based vices. This had been the .J4,, analwousary,.of the move of :Oa hasPital to the Stamford Coasts ate.. Ust ild$ of the ilospit is aastversary los to be celebrated with a Wier t ii to Mauch. William Messy, Vice President of Business and Finance, Stanford University, said his major duties concerned land use and Stanford's finances, accounting and forecasting. One of the underlying principles governing use of Stanford's land, he said, was that it was the university's precious endowment; ft had contributed much to atanfard's growth, SLAC, and the like, along with the unparalleled fine environment of the area. Some developments such as Stanford Shopping Center also provided endowment income, although it was less than 20 percent. In 1974 Stanford's Board of Trustees had set the policy that further development of the land was to be academically related. That policy announced the slowing down of expansion and also that the land was to be put to its highest use. Stanford had of late resisted the idea of specific planning for land use --it was not known what directions education might take, but it could provide criteria for use of its land, such as explicit direction when wildlife and so on were to be considered. The university wanted to provide opportunity to neighbors to be heard in such planning. Mr. Massy continued and spoke of financial matters: the university's resources were strong but not unlimited. He projected some slides of charts on the Councilchamber wail. The left-hand indicated the university's consolidated budget, he said, for the entire university, including the hospital and SLAC, and, running through next August, the total was $435 e+iilion®-3O percent research, 20 percent construction, 32 percent auxiliary, such as housing, hospital and so on; with about 10 percent for libraries and the like. The right-hand column, the operating budget, totaled $128.9 million and represented the discretionary funds of the university --overhead recovery, contracts and grants, half of which was budgeted for construction. He displayed another chart: he said the rapid growth period from the 50's to the 60's had ended, and enrollment was on a more gradual curve, holding at about twelve thousand students since 1971. Present teaching staff numbered 1193; that number might rise as new disciplines such as computer science arose and were added to the curriculum. The university had about 9.2 million square feet of building stock; there were about 6000 staff members. The endowments, he said, had been well invested, raking Stanford a strong institution, and its goal was to use its resources to the best advantage with an eye to what skills students sought. He referred to a deficit that could result, but he said corrective action would be taken before that occurred, so that Stanford could take advantage of all the academic opportunities that can its way. (Charts referred to by Mr, Massy are attached.) Provost Don Kennedy, Vice President of Academic Affairs, said his duty was to set up the annual budget, and then others administrated it in a fashion aired at preserving academic excellence. He. said his work would be judo by how well Stanford stood in the year 2000. Like the rest of the world Stanford would experience financial constraints, he said; as academic interests increased in number there could be more demands on funds --he postulated that growth economics weld inevitably indicate rising costs of burgeoning academic information and interests; careful, selection would have to be made. He outlined the ambience that Stanford tried to set for junior faculty so that their intellectual irmnath_cryo1'i. be fostered, with results that amid send both to Stanford's and the faculty individual's reputation for excellence. He said that before spiraling housing costs Stanford had drawn easily from the academic pool, but now those choices were very limited —facilitated housing now had to precede faculty recruitment, and Stanford thought it very important to participate with local development and placating entities in this region. Nothing was more important, he said. He alluded to the pioneevisue worm Stanford had done in electronic engineering. There had been *stunning achi ts° as well in genetics and cell biology. He said he had comprehended more clearly in recent times the extraordinary importance of an institution 'Tike Stanford to the nation —he -wanted to point out that neighbors such as the City and county weight not b able to see that as clearly because they were so close at hand. He held that being a close neighbor perhaps resulted in certain 'costs' - but the benefits were incalculable, though somewhat diffuse. Provost Kennedy emphasized that point, adding that though the point was sit amorphous, its likelihood of being understood wes hilt at the Cif. Comm 11 level. Councilm er Fletcher asked about plans for the proposed Campus Drive extension, and if any expansion was planned for the Stanford Shopping Center. Mr. Massy replied that inflation had raised the costs of the extension of Campus Drive but it was likely to go ahead "...in the not -too -distant future." He said that still in the master plan for the shopping center were the addition of another department store and perhaps some theatres. Counci lsmeanber Witherspoon admired the renovation of some Stanford buildings. Mr. Massy agreed, saying the portion of the quad facing Palm Drive was renovated to uses other than those intended at the time they had been built. Such 'recycling' of buildings would continue, and there would not be much addition to actual square footage. Corrected Councilmember Dreener asked for copies of the charts Mr. Massy had See Pg. 412 shown. She continued, saying that though Stanford had given much thought 2/4/80 to faculty housing, the region was left with the problem of housing and transportation for supoort staff for academic and hospital matters. She noted a great divergence from Stanford's 1953 plan related to development of Industrial Park --Stanford at that tiro had proposed about 20,000 addtttonal jobs, and about 20,000 additional housing units. That housing had not been realized. Stanford was the largest land developer in the area, and each of its proposals should be related to need for concomitant match in housing, she thought. Particularly support personnel. Could Stanford supply the City with figures showing where the 5000 support people for the hospital lived? Provost Kennedy said the university had had faculty housing stock and had been adding to it for about 60 years. The numbers at Stanford would be held steady, he thought; the staff -faculty ratio was about eight -to - one. Ceuncilmembers were familiar with the problems and would be in- strumental in working those problems through. Mr. Rosenzweig interjected that he would try to get the figures Council- s Brenner had asked for; Stanford was anxious to contribute in many ways to the housing solution; one contribution was through its proposed student housing project for about 800 students. Councilmember Brenner explained that her prim concern was with development in Industrial Park; that appeared to have been undertaken without regard for where the people who worked there were to live. tar. Rosenzweig replied that Stanford asked only that no more stringent requirements be me* of it, as a developer, than, were mode of any other developer, by the City. Me thought that the uni versi ty had gone further toward meeting housing nos than had other developers in the area, Counci1mmeber Fa zzlno asked about Stanford's 10 and short-tarm plans for adding student housing. Mr. Massy replied that he hoped there would be approval by trustees in February, with hope of completion by 1984; details remained to be worked out. Councilmember Fazzino asked if Stanford had considered the possibility of combining residential and industrial uses in its Industrial Park. Mr. Massy relied that there was some housing near Cl Camino and Page Mill, in time Industrial Park --he hoped there would be other ways the dined use could be applied. $r. Rosenzweig said he did not favor the idea, but he thought Stanford would look closely and with a let of interest at such a proposal.. Couac13meeber Eyerly askad oboist Stanford' Wised wing on Sand Mill. 343 12/1 7/79 1 1 1 Mr. Massy replied that discussions with people interested in housing were going forward; basic data on transportation was being compiled and some plans were going forward on proposed housing. He wanted that project to go forward as soon as possible. Councilmember Fazzino averred his interest in the humanities discipline at Stanford and said he had been glad to hear it would not give way to studies in technology; was there any frdication of increased, or even steady, interest in the humanities? Provost Kennedy said music and languages, subsumed under Music/Literature, were thriving though sciences were undeniably growing faster. He thought expanded quarters and appointments to the faculty would foster growth of the humanities soon. Mr. Rosenzweig said that there was a need to have a library program to bring the library up to the quality of the faculty. He theught the new Green Library would help on that. Mr. Massy said there was some vacant land in the park not controlled by Stanford --it was now teased out. So far talks on the proposed combination had been informal, and with no specific project in mind -perhaps a model development could be engendered. Mayor Henderson said Dr. Crowley would understand that the questioning in his area might not be very heavy tonight because of the nature of the negotiations regarding the community physicians. Palo Alto's position has been fairly firm about the need for Stanford and the community physicians to work out are agreement before Palo Alto enters the picture. He asked when they might expect such an agreement coming forth. He said he had been assured that things were going well, but to another couple of months go by with no word. He asked how 1980 looked. Dr. Crowley replied that they needed to come up with something soon because everyone is exhausted. He thought that within six weeks or so after the first of the year they would have arrived at a point where they could come forth with a report. The outlines are clear and there have been several drafts; they are in the process of fine-tuning it. Mayor Henderson said he felt it was important to know that Stanford is moving on ft rapidly. He asked about the rumors of proposed housing on Coyote Hill. He said he was also concerned about the distinction between Stanford North and Stanford South. Mr. Massy replied that there are no plans for Stanford South, and no plans at all for Coyote Hills. With respect to Stanford North, he didn't anticipate that there would be anything soon; its just in the general planning stage. He felt it made more sense to get momentum going on the 46 acres and get the Peter foutts project going. Mayor Henderson asked about the uses proposed for the Mayfield School site. me. Massyreplied that he thought it might go to housing uses, and that Stanford would participate in that decision. iiayor Henderson asked if it had been enticipaated that since it was difficult for employers to get employees was there any threat that some might have to move out of the industrial Park? Provost Kennedy said that Stanford chose its staff from among those who lived nearby; faculty who were outstanding in their chosen disciplines tended to e spread out smong the many other universities and colleges throughout the nation; That was not the. use with Industrial Park employers. 344 12/17/79 Councilmember Brenner acknowledged that Stanford has 'ade the area attractive and it was only in land use questions that problems arose. She requested that the City be able to view Stanford's proposed land uses before they were sub- mitted to the county for approval. Mr. Massy replied that Stanford would do that. The maps were available; that evening if there were time to show there. Councilmember Brenner asked to what extend Stanford might support innovative housing, such as building over parking lots. She added that Welch Road had been zoned R-4 for years, and it was a likely area to permit housing. Mr. Massy said Stanford would certainly study any residentially oriented uses Councilmember Brenner underscored. Councilmember Brenner asked about method of payment for leases in Stanford Industrial Park. Mr. Massy replied that in most cases there had been a one- time payment in full, in the fashion of prepaid rent. He said it was possible that the method would be changed --if anyone had anticipated the present-day inflation the prices would have been higher. Councilmember Brenner asked if the industrial Park lands had been reassessed to the same extent that land in Palo Alto had been reassessed? Mr. Massy replied that he did not know. Councilmember Benner asked what tax savings resulted from Proposition 13 for the Industrial Park. Mr. Massy replied that tenants paid taxes; he did not know what savings had resulted --he supposed there had been significant savings. Councilmember Brenner said she thought perhaps some of those savings might go toward housing. A discussion ensued on insistence regionally that Palo Alto build by way of in- fifling, that is, two houses per lot, and that the same pressure was applicable to Stanford land as well. Mr. Rozenzweig said Stanford had plans to build about 1600 units on a portion of its land fronting on Page Mill Road, "...and we would appreciate some help in moving forward in those plans, particularly in finding ways to get people in and out of that site." Dan dement a member of the audience, asked about Stanford's present program for treatment of mentally disadvantaged; he differentiated between the 'clinical approach' using synthetic drugs vis-a-vis individual treatments that did not create drug dependence. Provost Kennedy agreed that people in whom drug dependence had been engendered could be helped by personal therapy. Dr. Crowley confirmed that Stanford's psychiatry department treated clients using all modalities, selecting those that promised most salubrious effects. Research was disclosing new insights into causes and prevention of mental illness. Mee ,Hy n, 546 Washington, ascertained that the cps of proposed land use were not transparencies and so could not be viewed at that time. Mr. Massy would be showing them at a forum scheduled for February. Curtis. Van V l i et, 455 Forest, asked how sites for housing were selected. Mr. Massy said that sites were chosen according to where prospective residents for those sites will be traveling, that is, their work and shopping needs, along with most advantageous siting for access to existing travel routes and City services. Mayor Henderson summed up: he said he had never questioned that Palo Alto enjoyed its fine ambiance much as a result of its nearness to Stanford. He said he thought Stanford and Palo Alto's relationship had profited through- out the last ten years with improve and open communication. He expressed appreciation to the men who had taken the time and come before the Council that evening to outline some of Stanford's goals, and plans to tmplement those goals. He would like for it to be an annual event. ORAL COMMUNICATIONS None CANCELLATION OF TWO STIMMTICIMMT MOTION: Mayor Henderson moved, seconded by Fazzino, that Council cancel the meetings of December 24 and December 31, 1979. The motion passed on a unanimous voice vote, Vice Mayor Sher absent. ADJOURNMENT MOTION: Councilme ber Fazzlna adjourn. The motion passed on absent. The meetin adjourned AFFI f C ty C l er, moved, seconded by Fletcher, that Council a unanimous voice vote, Vice Mayor Sher at 9:45 p.m, General S7.1 S.S% Administration 510.8 11. 47E 1979-80 Operating Budget $128. 9 M illio n Operatio n & Maintenance 319.0 14.8% Research S1,7 1.3% LIbrarki $13. 8 10.7% Student hid S7.2 Student S.69i; Ste/ic or S83 6.4% 1979-80 Consolidated Budget $435.0 Millio n Ubraries 514.7 3.4% Studar;t 517.9 Aid 4,6% Student SF11 Se*'riets 1. Operation dC Maintenance Admin. S19.0 510.8 4.^,% 83 STANFORD UNIVERSITY Autumn Quarter Enrollment 1966-67 to 1978-79 Earokaent 13,000 - 12,'000 11,000 10,000 9,000 8.000 7,000 6.000 111 5,000 4.000 3,000! 2,000 1.000 12.429 -. 11,E 12,374 6.303 Total Uaderpaas tate 6,359 5.813 Graduate and TGR. 196647 196149 1970.71 1972-73 197475 1976.77 1978.7 Woe 1967.61 1969.70 1971-72 1973-74 1973.76 1977.78 lower Tim Went forollostot • 0 348 1VI 7 STANFORD UNiirERSiTY ProiessosisA Faculty 1%749 to i97R79 Number 600 SOO 400 39Q 200 109 267 207 Assistaat Professors 21i Associate 1 74$ 1+3 !-70 /971.72 1973-74 1973-76 1977-79 Year 1%049 1970.71 1 7313 197415 1976.77 1978-79 Smarm: Aadesie Pleashig Oda UNIVERSITY PHYSICAL FACILITIES BY AGE COHORT $ SPACE TYPE (GROSS SQa FT. R- 0004S) ORIGINAL SLOG. CONSTRUCTION OR MAJOR RECONSTRUCTION 1891 — 1895 1896 - 1900 1901 1905 19O61910 1911 - 1915 1916 , - 1920 1921 - 1925 1926 - 1930 1931 - 1935. 1936 - 1940 1941. M ` 1945 1946.- 1950 1951 .,. 1955 1956 - 1960 1961 M . 965 1966 - 1910 1971 1975 1976 PRESENT TOTAL RE— TEACH— OFFICES/ SEARCH ING CLASS — LABS LABS ROOMS ATH— RESI— PATIENT LIBRARY OTHER LETICS DENCES CARE TOTAL 50 15 270 5 65 55 4 15 1 27 6 4 1 1 23 7 105 8 70 3 3 4 9 38 0 23 0 1 0 0 7 0 1 44 11 7 11 54 200 59 3 235 0: 0 19 0 9 1 120 2 1 44 0 12 9 1 0 0 2 0 0 0 117 4 20 150 106 5 0 29 0 0 0 0 0 0 0 45 20 100 18 2 5 95 123 2 23 7 0 2 .10 320 ' 3.6 420. 52 46 13 630 84 24 186 20 110 5 990 300 75 700 350 56 92 580 36 7, 127 0 2 18 460 7.7 32 320 105 65 3 75 1 090 260 2,592 0 464 0 55 0 219 0 75 0 63 4 573 0 149 0 69 0 119 0 314 0 0 0 285 0 167 160 1,677 0 1,419 16 2,169 0 650 45 722 877 529 254 3,362 225 9,189 RJR! 2 1980-81 THROUGH 1984-85 ON THOUSANDS OF DOLLARS) 1980.8,1 1'81-82 1982-83 1983-84 1984-85 NCOME TUITION $ FEES $ 57,E $ 64,664 1 71,777 $ 78,955. $ 86,850 $ 94,667 SENT UNRESTRICTED 7,411 8,728 9,723 10,701 11,765 12,782 RESTRICTED 4 ,869 5,496 6,165 6,865 7,558 8,280 GIFTS UNRESTRICTED 2,652 2,754 2,905 3,063 3,231 _ 3,408 RESTRICTED 2,495 2,780 3,045 3,305 3,587 3 ,857 RAE I MRURE ED INDIRECT COSTSB 22,746 25,215 27,688 30,440 33,329 36,182 OTHER 6,822 7,427 8,014 8,646 9,324 9,992 TRANSFER TO PLANT (1,853) (2,335) (2,879) (3,492) (4,,203) (4,982) TOTAL INCOME $102,918 $114,729 $?26 38 x.138,483 $151,441 $164,186 XPENSE TEACHING SALARIES $ 21,179 $ 23,460 $ 25,636 $ 28,041 $ 30,669 $ 33,233 ALL OTHER SALARIES' .. 35,295 39,018 42,549 46,445 50,698 54,833 TOTAL SALARIES - 56,474 62,478 68,185 74,486 81,367 88,066 STAFF BENEFITS 11,012 12,808 14,387 16,164 18,145 20,167 TOTAL SALARIES i BENEFITS 67,486 75,286 82,572 90,650 99,512 108,233 LIBRARY ACQUISITIONS 3,564 4,079 4,608 5,211 : 5,893 6,605 FINANCIAL AID UNDERGRADUATE 4,314 5,016 5,802 6,579 7,482 8 ,348 GRADUATE 2,801 3,125 3,449 3,772 4,128 4,476 STUDENT HEALTH 1,428 1,606 1,782 1,979 2,198 2,420 BUILDING MAINTENANCE 4,847 5,399 5,951 6,546 7,237 7,905 UTILITIES 5,832 6,880 8,065 9,472 10,662 11,897 OTHER 18,312 20.055 21,666 23,547 25,594 27,562 cPARGEOUTs (5,666) (6,317) (6,940) (7,642) (8 ,395) (9,138) TOTAL EXPENSE $102,918 $115,129 $126,955 $140,114 $154,311 $168,308 RA TO (FROM) OPERATING RESERVZ 0 NIKE (517) (1,631) (2,870) ,122) 1 STANFORD UNIVERSITY NUMBER OF 1-TtAcI NG EMPLOYEES Excite Nespital and Ned#cal Center Financial Administration.