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HomeMy WebLinkAbout1980-01-07 City Council Summary Minutes1 CITY COUNCIL MIIiUT€S Regular Meeting January 7, 1.980 ITEM Minutes of November 19, 1979 Oral Communications 1, John F. Walker, 1937 Circle '2. R.W. Byxbee, 27 Dan Court 3. Jim Gregg, 2513 Anna 4. Terri Owen, 3081 Emerson Consent Calefdar - Action Items Pedestrian/Bicycle Undercrossing Maintenance --Award of Contract Driscoll Court --Final Subdivision Map 52C Maybe l Avenue --Final Subdivision Map Fence Improvements - Byxbee Park - Palo Alto Flood Basin - Application for Site and Design Review by City of Palo Alto 3400 Millview Avenue - Application for Site and Design Review by Clark, Stroaquist and Sandstrom Resolution of Appreciation to Douglas Winslow Elimination of Merged Lot Provision in Section 18.88.050(c) of Zoning Ordinance, and Section 21.04.040 of the Subdivision Ordinance Air Rights Developments over Parking Lots Cable Television Weed Abatement Programs Bicycle Mileage Reimbursement Policy Palo Alto Participation in California Solar Utility Development Authority (CSU€iA ) Oral Communications Adjournment to Executive Session re Personnel and Litigation Final Adjournment Clnv OF MIO I VO PAGE 354 354 354 354 355 3 5 5 355 355 355 355 355 356 356 356 357 362 3.6 +3 3 7 0 371 371 371 371 353 1/7/80 Regular Meeting January 7, 1980 The City Council of the City of Palo Alto met on this date in the Councilchamber at 250 Hamilton Avenue, at 7:42 p.m., Mayor Henderson presiding. PRESEdT: Brenner, Eyeriy, Fazzina, Fletcher, Henderson, Levy, Renzel, Sher, Witherspoon (arrived 8:40 p.m.) ABSENT: None MINUTES OF NOVEMBER 19i 1979 �rrrr.rnr�t�� so�rrrrrrr.r.o Y Councilmember Renzel asked that on page* 293, the second sentence in the first paragraph read instead, "Insofar as the separate residence/ commercial owners' association was concerned, she was curious how problems related to parking and the like would be worked out--" Councilmember Renzel asked that on page 295 the following sentence be added to the tenth paragraph: "Before the final map she would like the same information regarding the owners' association and the commercial division, as requested in the previous agenda item." Councilmember Witherspoon requested, by note, that on page 292 the following replace the present eighth paragraph: "Councilmember Witherspoon asked if the stores planned to be a part of the development would have a separate owners' association. Councilmember Fazzlno asked that on page 286 the first sentence of the last paragraph read instead: 'Councilmember Fazzina said that because of physical and emotional trauma associated with the problem of housing for battered women it aright be even more than necessary than low- to moderate -income housing in Palo Alto. He thought the proposal clearly met the HUD criteria for shelter. MOTION: Councilmember Fazzino moved, seconded by Fletcher, that Council approve the minutes of November 19, 1979, as corrected. The motion passed on a unanimous voice vote., Councilmember Witherspoon absent. Mayor Henderson announced that an executive session re personnel would be held at the conclusion of the regular meeting. ORAL CtI UN I CATI ONtS 1. John F. Walker, 1937 Greenwood Circle, Cupertino, esked what schedule of dredging would be operant for the Palo Alto Yacht Harbor --he had received no answer to his inquiry of some weeks back on that matter. He asked that the City Manager contact him at 408/987-3542. 2. R. W. Byxbee, 27 Dan Court, lauded the meeting concerning housing that Council had held with Stanford December 17, 1979; he said that Council could mitigate the housing problem by .using City - owned open space in the lower foothills on the Arastra property. He said the ITT property in the Baylands could also be used for housing —he thought that would be "...a higher and better use" of that land and also of some land in the flood control basin. He held that the developments he proposed would be peripheral to the City and would not affect neighborhoods now established in the City's interior. Moving to another topic,: he praised Councilmember Levy's suggestion that a bond be issued - for improve ent of the City's recreational program; he thought higher gas prices would lead to sore use by residents of local recreation facilities. 354 1/7/80... 3. Jim Gregg, 2513 Alma, asked how secure from theft the bicycle parking facility was on Level A of the City Hall. Councilmember Fletcher said that perhaps more secure parking could be provided. 4. Terri Owen, 3081 Emerson, spoke of having been interviewed by KPIX before Proposition H failed at the polls, because she was felt to be a typical renter; one week later, they interviewed her again when her rent had been raised $85 a month, a total of $150 a month increases since passage of Proposition 13. She thought that as a single parent she was "a typical renter" in Palo Alto, and she had been victimized by an uncontrolled "landlords' market." She feared that the proposed rental mediation board would not work; she said evasion of the rental cost issue by the majority of members of the Council was "virtually criminal." She noted that themanagement's letter implied that she could afford to live not either in "...a slum in San Jose" or in Palo Alto. She appealed for a workable solution to the renters' crisis. CONSENT CALENDAR Councilmember Eyerly asked that the matter concerning weed abatement be removed from the Consent Calendar. Councilmember Renzel requested that oft the matter concerning a fence for Corrected the Palo Alto Flood Basin the floodgate at the animal shelter should be See Pg. 412 left open. 2/4/80 The following matters remained on the Consent Calendar: Referral Items none Action Items PEDESTRIAN BICYCLE UNDERCROSSING -UMW CORMACT (CNR:525:9) Staff reds that Council authorize the Mayor to etecute a contract with Dimond & Penso*ti in the amount of $27,597 for the refinishing of four pedestrian/bicycle undercrossings. CONTRACT —Dimond and Pensotti, nc. DRISCOLL COURT —FINAL SUBDIVISION PAP (t 1:530:9) Staff recommends that Council approve the final map and street name for Driscoll Court, S20 MAYBELL AVENUE --FIB SU DIVISI0fl MAP (C14R:51b:9) Staff reco rds that Council approve the final . condominium subdivision map for 520 Maybell Avenue, and name the new cul-de-sac ' I nterdal a Way." FENCE IMPROVEMENTS - BYXBEE PARK DESIGN REVIEW The Planning Commission uru piimously recommends approval l'f the application _ of the City of Palo Alto for Site and Design review for a fence in the Palo Alto Flood Basin (Bye Park). Staff recommends that Council approve the site and design review as recommended by the Planning Commission and Architectural Review. Board, and adopt both a park improvement ordinance for construction of the split rail fence to limit vehicular access into the flood basin and a budget amendment ordinance which allocates $14,000 to Parks and Open Space Management Division's operating budget. ORD1V ICE 3176 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO APPROVING AND ADOPTING A PLAN FOR THE CONSTRUCTION OF FENCE IMPROVEMENTS IN BYXBEE PARK." ORDINANCE 3177 entitled "ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1979-80 TO PROVIDE FUNDS FOR FENCING AT THE PALO ALTO FLOOD BASIN." 3400 HILLVIEE AVENUE AP)1ICATL €OR SITE AND DESIGN REVIEW :101:0) The Planning Commission unanimously recommends approval of the application of Clark, Strt quist and Sandstrom for Site and Design Review for property located at 3400 Hillview Avenue. Staff recommends that Council approve the site and design application as unanimously recommended by the Planning Commission and Architectural Review Board. MOTION: Councilmember Renzel moved, seconded by Fazz.ino, that Council approve the ordinances, authorize the contract,.and adopt the resolution in the Consent Calendar. The motion passed on a unanimous voice vote, £ouncilmber Witherspoon absent. RESOLUTION OF APPCCIA i i0N Mayor Henderson read the resolution commending Douglas Winslow's diligence and unselfish service to the Human Relations Commission from 1977 to 1979. Mr. Winslow expressed his thanks, and affirmed that he had been. true to his convictions during his tenure on the Commission. MOTION: Councilmember Renzel introduced the following resolution and, seconded by Sher. moved its adoption by Council: RESOLUTION 5758 entitled "RESOLUTION OF. THE Ct ML OF THE CITY OF PA/ Alm c NDin,__ DOUGLAS WINSLOW FOR _+OtSTANDi$G AND CONSCIENTIOUS SERVICE AS A HEWN OF THE HUMAN RELATIONS Ci ISSION." Courecilmemaber Renzel added her personal thanks for Douglas Winslow's contributions to the Haman Relations Commission. MOTION PASSED: The motion passed on a unanimous vote, C€uncilrmember Witherspoon absent. ELIMINATION OF MERGED LOT PROVISION 16.53.1151k4 Qt zthll din Steftw 2.b4.% :518:9) Mayor Henderson said that the Planning Commission, by a vote of b-1, reamerrds that all lots which were merged by the 1977 amendment of the subdivision map act, prior to the adoption of Chapters 2,_3, and 4, statutes of 1977. are hereby deemed unmerged. 355 1/7/80 Naphtali Knox, Director of Planning and Community Environment, said that the matter was quite complicated --the recommendation was that a law formerly adopted be rescinded. 1 Councilmember Renzel observed that there had been a stipulation that lots lass than 10 percent of the requirements for substandard lots not be merged; small substandard lots would not be merged, but large substandard lots would be merged. Was her understanding correct? George Zimmerman, Senior Planner, said that her statement was true; that stipulation reduced the number of lots subject to merger. Property owners had been notified, a hearing had been held, and a conclusion had been reached that setback and daylight plane regulations offered sufficient protection from improper developments proposed for substandard lots. Councilmember Renzel referred to three lots on Middlefield that had been gilt upon with what she thought were unhappy results; she was concerned about how the variance granting procedure could permit poor results. Pir. Knox said that the three lots, 25 feet wide, between Forest and Hamilton, had the required 5 -foot sideyard. Responding to a question by Councflmember Renzel on unusual -shaped lots, Mr. Zimmerman said that only one L-shaped lot was questionable. He said that about 40 substandard lots would be buildable, that is to say, the lots were now vacant. If a house was already on the property, perhaps straddling the property line, the lots would be considered already merged. MOTION Councilmerber Eyerly introduced the following ordinance, and, seconded by Fletcher, moved its adoption by Council for first reading: OROIHAHCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING SECTION 18.88.050(c) AND 21.04.040 OF THE PALO ALTO MUNICIPAL CODE The motion passed on the following vote: AYES: Brenner, Eyerly, Fazzino, Fletcher, Henderson, Levy, Sher NOES: Renzel ABSENT: Witherspoon Councilmember Renzel said she voted 'no* because she thought the earlier action about lots less than 10 percent of the reqoirements for substandard lots not being merged had been adequate to allow lots that almost qualified to be retained under *buildable loss.* AIR RIGHTS DEVELMENTS_ MEN PARKING LEITS 041001 9) The Policy and Procedures Committee recommends to Council re Air. Rights, by unanimous vote, 1 absent, the guidelines proposed by staff in the January 30, 1975 report, with modifications made by the Committee at the November 6, 1979, meeting. MOTION: Counci lamer Brenner, on behalf of the Policy and Procedures Committee, moved the Commi ttee recommendations as follows: a) that the City Attorney be directed to research the status, fees, air rights and revenues; b) that the subject of air rights be reta i rued in the Committee, and c) that staff be directed to explore the potential valve of housing on industrial parking lots together with representatives of industrial and the Santa Clara County Manufacturing Group in a joint meeting with the Policy and Procedures Copmi ttee . 3.57 1/7/80 Corrected See Pg. 412 2/4/80 Corrected See Pq. 412 2/4/80 ai Councilmember Brenner pointed out that predetermination of the density of the option, agreement had not been included in the Committee's recommendations and the agenda should be so amended. Mayor Henderson pointed out that Councilmember Fazzino had been unable to attend the Committee meeting at which the recommendations had been drawn up; Councilmember Witherspoon had chaired the meeting. Vice Mayor Sher said he supported the recommendations. He particularly liked the recommendation to explore the possibility of housing over industrial parking lots; he had long wished that ways would be found to utilize all that space given over to the exclusive use of the automobile. He said he thought Council was indebted to Councilmember Brenner for pursuing the idea and to the Committee for recommending the idea of building over parking lots financed by the City's assessment district. Councilmember Fazzino said the issue was to be explored at a luncheon meeting with the Santa Clara County Manufacturer's Group on February 5. A number of representatives from Palo Alto industry would be invited to attend. He said he thought that it would be fair to have competitive bidding for the air rights; that would require that there be identified sites. Was staff identifying such lots? Mr. Knox said that at present his department did not have staff or time to determine which sites would be appropriate for such development and also laws on the subject were still being formed —one matter to be determined was the proposed density. He thought that when the time was right developers would come forward. He favored the laissez faire approach at present. Jean Diaz, Real Property Administrator, said it was possible to follow up on the market approach and let developers come forward; also, developers could draw up ideas and then the City could put appropriate air rights for parking lots out to bid. Mayor Henderson asked how much work had to be done if a developer cane in with a specific plan for a specific parking list. Mr. Diaz said that the City had to have some certainty that any given parking lot was suitable for an air rights project. A signifiezet amount of staff time was needed to inventory the lots and make those kinds of assessments. Time was needed to package a parcel for a competitive bid process. Councilmember Fazzino said that it did not seem quite right that a developer could draw up a bid on a site, then have the City open it up for competitive bidding. He said one of the criteria was that the site snout o be visually compatible with the surrounding area. He found the tern "compatibility" somewhat open ended. If the definition that the air over the parcel was a part of the land under it the project should conform as much as possible to the zoning in the area --tradeoffs could be allowed through the variance procedure. He wanted_ recognition of the actual zoning requirements* rather than the less specific "compatibility." Corrected Councilmember Renzel said the Committee had discussed those criteria and See Pg.412 the zoning requirements would not be supersede*. She continued. Shy: 2/4/80 said that the Committee had thought it best to have a prototype project before going to competitive bidding. Councilmember Fazzino said that it would have to be made clear that zoning law still applied. Pat Cullen, 409 Melville, praised the City Attorney's report on air rights. She noted that the report clarified that any change of public use was toward public benefit also. She thought that should be emphasized* and the criteria for public benefit should be exam ned . 358 1/7/80 1 Mayor Henderson raised the question of whether or not an increase in the City's housing stock would be considered a public benefit. Bill Byxbee, chairman of the Traffic and Parking Committee of Downtown Palo Alto, Incorporated, noted that his committee was responding to City dictum that from 1500 to 2500 offstreet parking spaces be provided, perhaps 1500 with the improved public transportation and higher gas prices. He hoped that the public parking requirements were "compatible" with the push toward public housing. He hoped that his committee could meet with appropriate people at City Hall for round table discussion on those interests. Council rber Brenner ascertained that Mr. Byxbee's committee had made headway, perhaps having attained about half of the needed parking spaces thus far. Walter Sedriks, 325 Waverley, said he liked the idea of the air rights building, but he thought it would increase congestion where it was already overcrowded. He hypothesized numbers of car trips and the like resulting from the addition of numbers of units, noting that there were soon hazards concerned with additions to housing just as there were with jobs. He reviewed the history of the Downtown Perk north, need for which had been based on population, and he noted some ironies concerned with Downtown North population compared with population elsewhere in Palo Alto, and disproportionate City services. He thought that North Palo Alto served "...as a dumping ground for things to which the rest of Palo Alto might object.° Counci lrnember Witherspoon arrived at 8:40 p.m. Robert Moss, 4010 0rme, said he supported the idea of air rights in general and specifically over industrial parking lots; he thought it would be wise to lease, not sell, the air rights, and in that way the City could increase the rents from time to time thus recapturing some of the value of the land as it appreciated in value. Council tuber Brenner noted that the subject lots should first serve their r:'1mary purpose, that of providing parking. Parking could be increased were underground parking constructed. Parking needs were not yet satisfied, anti, not all the lots were capable of supporting an underground structure. She thought that zoning should be designated by the area surrounding the proposed site, and that for public benefit to be served the site should provide low to moderate -income housing. She did not favor putting the air rights projects out for bid --"...it's not a money - raising gimmick. It's a hope to create some attractive housing and at the saw time not unduly iaapatt the surrounding area." Councilmember Levy said that ` the problem was complex thought _the City should set some parameters and then- advertise for bids. He asked about present zoning and time for rezoning. Mr. box replied that the parking lot under discussion was now zoned P -f ( Public facility) and would be zoned P -C (planned cozy ni ty) . Zoning would occur when densities were determined. Councilmember Levy said be did not think the developer should determine how the air righte were pet to use --tit would pest be determined by the City, he thought, using its criteria' -that is, the City should pct, not react. He thought that after the City set the parameters the sites to be developed in the future, after Parking Lot i?, should be opened. to competitive bid, He _noted that an independent appraisal of air rights could not be made until the City had set see parameters. Mayor Henderson said he thought that: if the Kinney-Arutuniaf project uent forward some guidelines as to how air rights should be developed most advantageously could be eked out. 359 1/7/80 Councilmember Renzel said that bid criteria could possibly involve design as well as money concerns --the total benefit to the City. She thought such flexibility would encourage people to participate. Criteria for a money bid alone were too complex. - AMENDMENT: Councilmember Renzel moved, seconded by Sher, that an eighth criterion be added to those listed by the Policy and Procedures Committee to read: "Air rights projects over public parking lots should he evaluated on the basis of public benefits provided. The word "significant" is to be added to the third criterion. Vice Mayor Sher agreed that City -owned property should be open to competitive bidding —he noted that Kinney-Arutunian owned one of the lots adjacent to the City -owned parking lot, making Parking Lot Q somewhat special. !4e did not know where the initiative was to come from, since staff was too busy to develop criteria for other lots. Corredeted See Pg.412 2/4/80 Councilmember Brenner referred to Program Eleven in the Comprehensive Plan calling for facilitation toward construction of residential units over public and private parking lots, and so Council and staff had initiated the air rights matter. A developer did not get carte blanche, she said, and each project would come to Council. She thought problems concerning density should be referred to the Planning Commission first, though she did not want to do so at this time. City Attorney Abrams clarified footnote 2 on page 5 of the City Attorney's January 2, 1980 report, saying that it should read: "To the extent to which the funds are placed in the general fund for appropriation, the Gann Initiative limitation may apply. . . ." He said that at present the Gann Initiative was not clear on how proceeds from sale of city properties were to be characterized. If they were characterized as taxes they would be within the limitation of the City of Palo Alto; if they were not so characterized, they would be outside'that appropriations limitation. He said the City's position would be that since the lard over which the air rights were to be granted had not been paid for by taxes but by special assessments the proceeds would not be tax related. He noted that though he had referred on page 5 to "public interest" that was not synonymous with "public benefit." He noted that discussion that evening by Council indicated that sale of the air rights might be in the public interest, and he emphasized that the use of those air rights was planned, at the present, to go for public benefit. AMENDMENT PASSED: The amendment passed on a unanimous vote. Ed Wisc yer, 333 Kipling, said parking, services and neighborhoods were utters to consider in relation to geantine eir.-rlgh;te. He `bought the human needs created by additional residents would outstrip those: _,_. needs being served. He thought Downtown North residents would have some resentment about having their area's density being increase. He thought neighborhood feeling should be fostered, and not dispersed with increased population. Councilmember Levy said he thought it was unfortunate that Council ?ad eliminated the small open space that was in Downtown North. He observed that the goal of additional housing as a primary use for air rights had not been sped fi ca l l y stated. AMENDMENT: Councilmember Levy moved, seconded by Renee!, that as criterion 9 the following be added: "Air rights should be developed primarily for housing, parking and non-commercial recreational uses." 360 1/7180 Councilmember Witherspoon supported the portion of the amendment that spoke to housing; she did not support the others. She noted that a private owner, of industrial, for example, could develop his air rights as he chose, according to what zoning permitted. She thought the Comprehensive Plan was quite clear that housing was intended under Program Eleven. She preferred to have commercial with residential in downtown Palo Alto. Councilmember Eyerly said he thought some lots downtown were better suited for commercial, depending on how much underground parking could be structured. He thought commercial should not be precluded. Councilmember Renzel stressed that the Council was speaking only to public parking lots; private owners could develop commercially or with a mix. She thought housing only was suitable for publicly owned parking lots. Adding commercial would be counter to a City goal, she said, which was to alleviate the jobs/housing imbalance. Vice Mayor Sher said he could support the motion though it was perhaps too restrictive for this first project. It seemed logical in the proposed site to have commercial at the ground level, and that might make the project more viable, and could lead to providing more below -market -rate housing. He thought the Comprehensive Plan did not restrict to housing only; he thought the Plan encouraged mixed uses on the same parcel. He did not want to rule out commercial if it would lead to having a better project. Councilmember Fletcher said provision of underground parking was very expensive --if commercial were ruled out that might raise the cost of the housing that was planned. She did think the primary use of air rights should be for housing, but she did nct want to rule out others. Mayor Henderson said he foresaw a proposal being made for mostly residential with a shall aunt of commercial to permit some below -market housing. He was not willing to eliminate that possibility. The primary goal was to increase housing in Palo Alto, however. Councilmember Brenner said she thought underground parking, though expensive, could prove in time to be a 'bargain.' She said she favored the Comprehensive Plan program, and she read, 'Facilitate development of residential units on air rights over public and private parkin lots in commercial and industrial zones." She said that emphasized provision of residential units as the prime reason for even discussing air rights leases, but it does not preclude consideration of other things. She thought the amendment before Council was unnecessary. Councilmember Levy said he would be willing to change the wording _to rights should be developed primarily for housing. . Councilmember Renzel suggested adding the words, "...in conformance with the Comprehensive Plan fps i ng Program Eleven.' Councilmember ber Levy agreed Councilor Renzel added that she noted in criterion 3 that the price of the rights depended on the public benefit to be provided. AMEN PASSED: The amendment that criterion 9 read: "Air rights should be developed primarily for using, parking And non-commercial recreational uses in conformance witft Comprehensive Plan Housing Program Eleven," pessed on a unanimous vote. say ANT: Councilmember Levy moved, seconded by fazzino, that the parenthetical statement in criterion 1, now reeding "(in same cases the *vetted See Fs, 412 2/4,80 3 . 1 177/80 City should seek competitive bids)" be changed to read, "(Except in unusual circumstances, the City should seek competitive bids.)" The amendment passed on the following vote: AYES: Brenner, Eyerly, Fazzino, Henderson, Levy, Renzel, Sher, Witherspoon NOES: Fletcher MAIN MOTION AS AMENDED PASSED: The main motion, that Council approve the following recommendations by the Policy and Procedures Committee: a) that the City Attorney be directed to research the status, fees, air rights and revenues; b) that the subject of air rights be retained in Committee, and c) that staff be directed to explore the potential value of housing on industrial parking lots together with representatives of industrial and the Santa Clara County Manufacturing Group in a joint meeting with the Policy and Procedures Committee, as amended, passed on a unanimous vote. RECESS: Council recessed from 9:30 la 9:42 p.m. Mayor Henderson reminded Councilmembers that an executive session en personnel and litigation was to be held following the main meeting. CABLE TELEVISION (CMR:527:9, 465:9) MOTION: Councilmerber Witherspoon moved recommendation, made by a unanimous vote, 1 absent, of the Policy and Procedures Committee ttee regarding cable television as follows: that an informal survey be taken, perhaps through the utility mailer, with an easy -answer form that can come back with the City utility bill, and if the response shows interest that the Council go ahead and hire a consultant to provide cost data and do a more detailed and accurate market sampling as outlined in the consultant's series of steps in the November 1, 1979, staff report. Councilmember Witherspoon added that the January 3, 1980, staff report by Charles McNeely gave much additional information on the subject. Staff pointed out that Council could learn more if it contracted for a professional survey; that would cos¢ about WOO. Charles McNeely, Assistant to City Manager, introduced Howard Gan, a representative from the Cable Television Information Center. Mr. Gan was consulting at present with Menlo Park, East Palo Alto, and County of San Mateo. Mr. Gan would be availaS a for Council's questions. Councilaember Renzel noted that at the November 6, 1979 meeting, the Policy and Procedures Committee did not have the January 3, 19110 report, and since that report contained so mach more information she tight it might be appropriate for the matter to return to Committee; that would save Council a lengthy debate. Council nber Fazzino said that he thought he had enough information to make a decision as to whether or not to adopt the staff recommendation and proceed with some kind of market analysis. Councilmember Renzel said that the new information would have been valuable at the Committee meeting, when representatives from various companies were present. Vice Mayor Sher said he would like to know what the Urban Institute Cable Television Information Center wasp and also about the Pacific Consulting Group. 362 1/7/80 1 1 Howard Gan said Cable Television Information Center (CTIC) is a private, non-profit organization set up in 1972 to help cities in the franchising process for cable television, along with serving as an objective source of information for them. CTIC had been formed as part of the Urban Institute which was a research organization in Washington; it was funded by the Ford Foundation and the John and Mary Markel Foundation for eight years; now the Institute was self-supporting from consulting fees received from cities and counties. Councilmember Brenner asked where all the information in the staff report had been drawn. Mr. McNeely said the information had been taken from a survey of California cities, taken from a stet book compiled by the Cable TV industry. Councilmember Levy had requested the information. Councilmember Brenner observed that costs had been deregulated in the industry; she asked how current the figures in the report were. Mr. McNeely replied that they were 1978 figures. Councilmember Brenner noted that the firm seemed to act as a consultant while selling to cities. Mr. Gan replied that CTIC, while supported by the foundations, had given its services to cities; the foundations had realized that CTIC could sell its services. Councilmember Eyerly asked about the quality of reception on cable TV. Mr. Gan replied that in the past many had subscribed to cable to improve reception on their sets; now television reception had improved generally, and people subscribed for better entertainment offerings. Councilmember Witherspoon asked if there was advertising on cable TV. Mr. Gan replied that with Home Box Office there were no commercials but when about 30 percent of homes subscribed nationally, it would perhaps become a medium for national advertising. One sports network on cable TV, backed by Getty Oil Corporation, did have commercials. He thought there would always be some networks that did not have advertising, and the pay for that service would be according to that. Councilmember Renzel said that the sample survey for prospective cable TV subscribers included in Councilmembers' packets had the kind of questions she had thought'the City might ask of prospective subscribers in Palo. Alto. ad _thosa__qu ctlnns been erM .r visas as:aia t lys Fir. Gan replied that the questionnai ne . had been drawn up by the New York State Cable CCission, for whom one of CTIC's staff members formerly worked. CTIC itself did not do surveys of that kind, he said; they did not find it necessary. The survey questionnaire had been professionally designed. It was designed to determine whether or not there was interest in Cable TV, and he said that was a redundant question --the interest was always there because people ranted new and improved entertainments offered on TV and not obtainable on conventional existing channels. He said he thought money spent on a surrey would be best spent to determine what kinds of programming the community wanted, rather that if the community wanted it- "I can assure you the answer will be yes'." Mayor Henderson observed that Tom Passel l , chaff ran of the former Citizens Advisory Committee on Cable TV was present; he i nv i toad hire to add comments if .he saw fit. 363 1/7/80 Peter Webb, 2326 Columbia Street, Palo Alto, said he represented the Pacific Consulting Group, a private consulting group specializing in public sector work, based in Menlo Park. His firm was experienced in surveys in general and survey conduct and analysis in particular. His firm supported staff's recommendation, that instead of a utilities department mailer survey a market analysis should be conducted by an independent consultant to determine precise levels of penetration for alternative combinations of services and prices. Palo Alto would then hold a public hearing to design the survey. The issue of ownership should be treated together with the question of marketing; citizen input should be sought. Mr. Webb said that in surveys such as the one proposed to be taken through a utilities mailer, only about 5 or 10 percent response could be expected. He said it was likely that bias would result from whatever those 5 or 10 percent responses might be, and the interest of the general population was not represented. Mr. Webb said his firm proposed a scientifically•5ased telephone survey contacting about 500 respondents --though the sample was numerically smaller than possible from the proposed utilities mailer, the results were more valid. Councilmember Eyerly wondered why Mr. Webb's firm did not recommend a firm that wanted to provide cable TY to the City conduct the survey. Mr. Webb said he thought such a survey might not be objective nor would it explore the full range of services. Mr. Webb added that Palo Alto had wanted to explore the differing merits of a municipally owned versus a franchised system. . Councilrnember Eyerly said he himself was not interested in a municipally owned system --he was not convinced that the City should pay for the study. David Greene, 3144 David Avenue, said he had attended that evening's Council meeting because he was concerned about tt2 way in which questions might be asked in a survey and responses were received from those questions. He and his colleagues at his workplace, Stanford Research Institute (SRI) had discussed what kinds of inferences could result relating to both entertainment and also a telecommunications system, with two-way function, fur being in touch with police, fire, and the like. He wanted to raise the question about whether or not there would be a capacity for a different level of system in cable TV. Tom Passel), 3825 Louis, said the Palo Alto Citizens Advisory Committee had met about 6 years back holding about 70 meetings over a three-year period, on the subject of cable TV. He noted that the consensus of the City had been that it did not want just better reception, but instead wanted a set of services not now available: the City wanted two-way capability, if it WAS to have cable TV. He noted that each cable had from 30-60 channels; existing televisiongave 15 or so channels_ He tight other channels available on cable TV could be used for many purposes other than for programs going to mass audiences. That meant that if a few hundred people wanted to see that evening's Council meeting they Could receive it over their TV sets, There could be other services as well. His committee would have liked to see it become a reality, and he hoped it would "...begin to move." He thought the conduit for the cable should be large enough to be capable o? expansion. He thought that the public might view cable TV capabilities swat as a second telephoner he did not know how any company could lose money by supplying the City. Councilmember Renzel said she was quite impressed with the survey CTIC had provided. She thought that kind of questionnaire, ma i, e4`, with utility bills, would provide information that would be usefei to Council as it decided whether or not to go any further with cable U. She would support the Policy and Procedures Committee recommendation. 364 1/7/80 Councilnember Brenrer said she supported the Committee recommendation also. She said she had not heard of people who wanted cable TV, and she thought that now that the price of it had been deregulated the price could be higher than the estimate of $10 a month. Though it was to be a private franchise she thought the Council would be criticised if it were too high. She thought the first page of the sample survey in the packet would give Council the information it wanted by way of a utilities mailer. She thought the question relating to estimated cost per month, ranging froe about $1S to $30, would also give useful information. AMENDMENT: Councilmember Brenner moved, seconded by Renee!, that Council reject the questionnaire drawn up by staff and instead substitute the first page of the sample questionnaire and the tine concerning probable costs be used as a utilities mailer questionnaire. Mayor Henderson said he thought the total questionnaire should be sent out. Councilraewber Brenner ascertained that Councilmeatber Renzel, the second of her amendment was agreeable to sending the full questionnaire, and she changed her amendment accordingly. William Laver, City Manager, said he could offer another approach; his. two to Council had given some concerns, one of them being the survey. °I think we know what the answer to the survey is going to bee -anyone who receives a simple mailer...is going to fill it out and say 'yes, 1 want cable TV' and those persons who don't want it will not fill out the survey and simply wont return it." He thought that if Council was concerned about costs of a survey his office could contact a number of cable TV companies in this area and see if, on a non -committed basis, any of them mould be willing to fund a market analysis with its content and quality to be controlled by Council. He said he was concerned about cable TV because results in other cities did not provide a good record; cable TV companies offered a range of attractive services, then, when the city had signed, the company did not deliver the package it had sold. He emphasized that cable TV was not a utility; it had to be sold. Companies, until they learned whether or not their venture in a city would prove profitable, that is, enough subscribers had been sold, did not provide the full range of services; delay of full services could extend for *any years. Councilor fazzino said he had been interested in cable TV because he thought increased educational opportunities and improved entertainments would be attractive to Palo Rltans. Citizens had expressed interest in cable TV also. He thought there might bee tendency to become elitist in discussing TV, and he thought there was a _real interest _in_- sporting eve -fits anti current ov es . e also thought opportunies to televise local events -would -he attractive to many. He praised Mr. Passell's committee. and noted that sore information on cable TV was available now; he thought the C'ou c : l wed precise information. He did not favor the proposed utilities mailer survey at all --he feared a poor survey would give incorrect answers. Fie thought a thoughtful and expert survey would more than pay for its costs. He would oppose the amendment. He did not think was too much to pay for a study in view of the possible ensuing financial investment. Councilamemmmber Fletcher said she thought it would be a good idea to have a public hearing on the matter, spread some information on the subject, then take a marketing survey. She thought Mr. Zaner's suggestion was worthwhile; the City had nothing to lose by following it. mr. Gaga said he did not know what information was to be gathered through a survey. He said he thought Council should educate its members and the. public as to the technology. People did not know what was available 365:, 1fliag Corrected See pg. 412 2/4/80 yet. Conciousnesses had to be raised, information on technology had to be spread, issues such as municipal ownership should also be discussed. He thought Council might be thinking about settling such policies as whether or not the City should provide more educational channels, or should have a channel for police and fire personnel training, or home security systems. He did not think the public was equipped to answer those kinds of questions. Councilmember Levy asked Mr. Gan what steps Council should take. Mr. Gan said he could say what procedure his firm had found successful and what other cities had done--i.e., Minneapolis, St. Louis, Cincinnati, Gallas. His firm, in working with those cities, had set up a series of educational meetings on such questions as what public policy issues might be raised along with technology available and then questions such as who should receive service? should there be rate regulation? were considered. With that sense, an approach was developed as to what a city such as Palo Alto might want in a telecommunications system. A minimum base of services would be draw tip, and using that base, proposals from cable TV suppliers would be sought. The request for proposals might read something like the following: "The City of Palo Alto is particularly interested in educational access programming, local origination programming produced by the comity for local purposes, in health services, in social services to the elderly. . ." and the like. Mr. Gan continued. He said the companies were very competitive; they would be in tune with the City's wishes and needs, and "...they would just love to get their hands on the Palo Alto franchise...and it will be done in a cost effective way." An evaluation process would be set in motion to then compare proposals submitted by the applicants. The process might take from six to nine months; it was a thorough process and that was fitting since a monopoly franchise was being granted. Such a system should serve not just commercial interest --ft should serve public interest as well. Councilmember levy asked 1r. Gan what his best guess was for figures on possible gross for Palo Alto's 2:,000 homes, calculating monthly service costs and pay TV, then what the profits would be before tax. Mr. Gan said he could not calculate that in his head; he thought there might be a 50-x5 percent penetration (about 12,000 subscribers), with from about 70 percent of these cable subscribers to be about $9.00 monthly. He added that companies were projecting higher percentage of penetration that he had estimated. Councilmember Levy calculated that a potential of about i2 million gross annually existed. TM r.ity would get about 3 percent of that _as -a _ franchise fee. He asked if the cable TV company might make about 30 percent. Mr. Gan said the company's capital investment had to be figured in. Companies wanted about 15 to 20 percent return, usually. In a market where there was good reception it took about seven years for a company to reach a break-even point, that is, to make back the money it had spent. A company might spend upwards of $5 million, depending on the sophistication of the system. A cable system constructed in Fargo, North Dakota, a city about the size of Palo Alto, had a system installed at a cost of about $3 million; Fargo had had a 35 -channel capacity installed. Mr. Gan said the state of the art was increasing and cable systems were costing more. 366 1/7/80 1 Councilmember Levy ascertained with Mr. Zaner, City Manager, that there had been a 1 or 2 percent return on one utility -mailer questionnaire concerning the fire department; another utility -mailer questionnaire related to energy had been 5 to 10 percent return. He said he wanted to keep the option open for ownership by the City --since passage of Proposition 13 such ownership might be peofitable. The procedure suggested by Mr. Gan duplicated that process the Citizen's Advisory Committee on cable TV had gone through a number of years ago, but tittle had core from it; he did not favor having some non -committed company do a study when he ultimately wanted a municipally owned system --he was willing to have the City pay the $8000 costs for a study. He favored a scientifically constructed questionnaire. He wanted Council to adopt staff's suggestion that Council cocrmies1on a professional cable TV market analysis and based upon results from that analysis Council could decide whether or not to proceed with a study. He emphasized that he did not think City ownership should be excluded. SUBSTITUTE MOTION: Council ember Levy moved, seconded by Fazzino, that Council approve the staff recommendation to commission a professional cable TV market study at a cost of about $8000. Mr. Gan pointed out that East Palo Alto, Menlo Park and San Mateo were starting the process he had outlined. A mobile televising unit and other such equipment would be possible with a large community: perhaps Palo Alto would be interested in discussing the possibility of joining them. Councilmember Witherspoon noted that the City Attorney's report had carefully spelled out differences between the tens "licensing" and "franchising." To franchise the City had to obtain the signatures of 12 percent of the Llectorate of voters regi:;tered at the most recent municipal election, then the measure could go on the ba1ot, and it had to pass by a majority vote. Cauncilmenber Witherspoon said she thought that would constitute a surveys assuming the City wanted to franchise. Mr. Abrams said that according to the municipal charter the City could install cable TV without going to voters and without issuing a contract or a license. Mr. Gan said he thought the City would do well to spend WOO on a municipal ownership study. Councilmenber Brenner raised the question of how the Cit would finance the installation of cable TV without bonding, and bonding could not be entered into without a toot thirds vote of the electorate. Mr. Zaner agreed with Council/ember Brenner's premise. Councilmember Brenner returned to point that only a residents' uuryey was _a anted from the proposed utility mailer. She said she old not support - a phone -survey; vey;i she -thought that particular use of the telephone was ac invasion of privacy. She said that Mr. Gan had indicated that he did not think Council was convinced that the City wanted cable TV. She said that as right --she, for one, did not yet want it, and so perhaps Council should be given a soft -sell on the subject. In view of Sunnyvale's current problems with its ten-year old franchise she thought Palo Alto might do well to bide its time; she raised the point of differences between *need' and °demand." She did not think Palo Alto needed cable TV, and she had not heard a demand for it. She thought that citizens o ld indicate whether or not they wanted it at the ballot box. She did not wish to block cable TV - if .it was wanted. She would vote against the erosions made on the matter so far. 357 1/7/80 Councilmember Eyerly said that all speakers had stated the need for a market analysis; he said he was reluctant to have the City spend $8000. He did not approve of municipal ownership. He wanted to table the motion that Council approve the Policy and Procedures Committee recommendation. That would give Councilmembers a chance to think over the merits of the options of licensing, franchising, municipal ownership. Vice Mayor Sher said the discussion thus far had seemed amorphous to him; he did not know what the City was going to find out in a proposed survey, regardless of how the survey was conducted. He reviewed the possible questions and t;e said he would vote against both motions --he thought Council had first to decide if it wanted to request a proposed analysis and if so under what specified conditions. Mayor Henderson said he had been deeply involved in the 1974 study on cable TV, ant emphasis then had been on a municipally owned system in order to forestall the kinds of problems Sunnyvale had been having. Since then many communities had obtained cable TV, and he thought the City might be missing something. He did not think a utility bill mailer questionnaire would give much information. He said the two-way communication capability of cable TV had much to recommend it. He did not want to close off the possibility of municipal ownership, but he observed that private companies had moved forward quite a bit. He thought the City should move forward on the project too --he thought a system could be in place within a year or two. Councilmember Fletcher said she opposes+, the ration. She would like staff to gather information an other communities' experiences with licensing as opposed to franchising, and the issue of municipal ownership and quality of private ownership service. She would like information on the various kinds and levels of service disseminated, then Council could decide where to go from there. She did not think this was yet the time for a market survey. Councilmember Renzel said that according to reports of cable TV companies a very high penetration of Palo Alto was anticipated. She had not herself received any phone calls on the topic, nor had anyone she met asked !r about it. She did not think there was a great demand and yet the penetration was a large factor so far as programming and access was concerned; if assumed penetration did not occur there would be problems accruing to the next Council. She noted Ghat Palo Alto had many cultural amenities not obtainable in other communities to the same extent, and with so much going stn the penetration might not be so high. She thought the survey world provide an idea of how many users there might be. Councilmember Levy asked if problems in other communities unities with cable TV were on a broad sca'e. Curios McNeely, Assistant to Cityi Faftager, said that about four out of twenty cit#es'he had contacted were having problems: Sunnyvale, Brisbane, Daly City and Redwood City. The first three were seeeciated with one cable TV company. Councilmember Levy noted that the information Councilmembers had, tallied 302 California communities with cable TV, with a penetration of about 59 percent. He thtuaght c i ti tens should be able to have cable TV if they chose, and perhaps Council had the responsibility to offer them that freedom to choose. He did not insist on municipal ownership and would go with popular demand on that. Mr, Gan said he'did not understand what those who favored a survey hoped to gain. If the City decided it wanted a municipally owned system a survey would help the City decide how much money it might make, but that information was not relevant if a private company was to be licensed or 368 1/7/80 franchised. He repeated that Councilmembers needed more informations in order to make those decisions --he did not mean that remark to be critical. He thought information should be gathered from other cities and then Council could perhaps start the process by discussing municipal ownership. SUBSTITUTE MOTION FAILED: The substitute motion that Council approve the staff recommendation to commission a professionaal cable TV market study at a cost of about $8000 failed on the following vote: AYES: Fazzino, Henderson, Levy NOES: Brenner, Eyerly, Fletcher, Renzel, Sher, Witherspoon MOTION TO TABLE: Councilmember Eyerly moved that Council table the recommendations of the Policy and Procedures Committee. The motion failed on the following vote: AYES: Eyerly, Renzel, Witherspoon NOES: Brenner, Fazzino, Fletcher, Henderson, Levy, Sher SUBSTITUTE MOTION: Councilmember Eyerly moved, seconded by Levy, that Council direct staff to gather further information and place the matter of Cable TV on the agenda at a later date. Councilmember Eyerly said that the substance of the City Manager's remarks made him think Council could have more information before it when deciding whether or not to have a survey. MOTION PASSED: The motion passed on the following vote: AYES: Eyerly, Fazzino, Fletcher, Henderson, Levy, Renzel NOES: Brenner, Sher ABSTAIN: Witherspoon Councilmember Renzel observed that the discussion on the topic of cable TV might have been less amorphous had more information care to the Policy and Procedures Committee in time for its discussion. WEED ABATEMENT PROS (CMR:520:9) Countilmember Eyerly said he had moved this matter from the consent calendar to find out about fire control measures in the Foothills. He said that measures to reduce brush and l` the like that would fuel fires hadnot been taken; he wanted rg -- o ho _ 67sH7 -_ fi-�ltrt�stlrne r ftpi u P.who- resided in the Foothills to trytoprotect .-themselves through reduction of underbrush. He wanted staff to concern itself with the problem, MOTION: Councilmember Eyeriy introduced the following resolution and, seconded by Fletcher, moved its adoption by Council: RESOLUTItN! 5759 entitled "RESOLUTION OF THE 1CiL OF THE CITY OF PALO ALTO DECLARING WEEDS TO BE A IW I SANNCE AND SETT I IG , % HEARING." Councilmember Eyerly asked if the staff taruld be able to draw up a Foothills plan that would be in conjunction with the weed abatement resolution public hearing. City Manager Zaner said he did not think staff could get,the material before the hearing was scheduled, but he thought a plea could be drawn for fire control in the Foothills and be submitted at another time. 369 1/1/84 The motion passed on a unanimous vote. BICYCLE MILEAGE REIMBURSEMENT POLICY (CMR:529:9) Mayor Henderson asked that in Section I item 4 the words "...to attend local or Bay Area activities outside of the City of Palo Alto," be added. He said that would make the mileage conform to that charged for automobiles. Councilmember Levy said he thought bicycle use should be reimbursed at the same rate as automobile use. That would encourage bike usage and categorize bicycles as another kind of motor vehicle. MOTION: Councilmember Levy moved, seconded by Fletcher, that, in accordance with automobile mileage reimbursement policy, Counciimembers may be reimbursed for use of a private bicycle to attend local or bay area affairs outside the City of Palo Alto, at the motor vehicle rate. Mayor Henderson asked if perhaps "provable costs" would be difficult to show. City Attorney Abrams said that some costs did occur, of course. Councilmember Fletcher said she did spend more than 4« a mile -replacement of a light generator end so on. She wanted the Levy motion to state "...for private vehicle use.' Councilmember Eyerly said he thought the 2Ct a mile charge for bicycle use would be discriminatory, he would vote against the motion. Councilmember Witherspoon said she could justify the 4it charge; the 2Ut charge was more like incentive pay. MOTION FAILED: The motion failed on the following vote: AYES: Brenner, Fletcher, Levy, Renzel HOES: Eyerly, Fauz1no, Henderson, Sher, Witherspoon MOTION: Council s Fletcher introduced the following resolution, and seconded y Levy, moved its adoption by Council: RESOLUTION 5760 entitled "RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING RESOLUTION 5656 TO PROVIDE FOR REIMBURSEMENT OF BICYCLE EXPENSES INCURRED IM THE PERFORMANCE OF A NC i MUeR`5 DUTIES OUTSWE TIE Ci l Y --OF PALO -ALTO. Councilmember Renzel said she thought it would be worthwhile to explore what some other costs of bicycling might be, for examples a person might have to stop and have a seal because it took longer to get someplace. Mayor Henderson noted that meals out of town were reimbursed. Corrected AMENDMENT: Mayor Henderson moved, seconded by Eyerly, that reimbursement See Pg.412 for automobile traffic be raised from 15f to 20t a mile. The motion 2/4/80 passed on a unanimous vote. MAIN MOTION AS AMENDED PASSED: The main motion adopting the resolution passed on a unanimous vote. 370 1/7/80 PALO ALTO PARTICIPATION IN �ALI Kii� tOLAR UTMi TT s� rrrrwwir.rn.�A..�r.� UDA (CMR:524:9) Vice Mayor Sher said he supported the staff recommendation that Palo Alto participate in grant honey to develop implementation plans for municipal solar utilities. He said he had attended several workshops held by the League of California Cities (LCC) to promote solar application. He thought the matter had statewide relevance. MOTION: Vice Mayor Sher moved, seconded by Fazzino, that Council authorize the mayor to sign the CSUDA Agreement (Attachment 1) and designate a Council representative to perform such duties as are set forth in the Agreement on behalf of the City. Councilmember Fletcher asked if the project was limited to hot water use only. Connie $myser, Manager of Conservation, said that the grant gooney would not be limited to use with hot water but at present it looked like the best use of funds. Councilmember Fletcher said that she preferred the reference to hot water solar be deleted, so that the agreement would not be limited to that. Vice Mayor Sher agreed to make that change. Councilmember Brenner asked if the agreement bore any relation to a proposed solar block program —what was the status of that proposal? Ms. Smyser said that this grant did not affect that proposed solar block program, which, at present, was still in limbo, awaiting the possible funding for that particular applscat`ono The CSUDA grant was for individual heating systems. MOTION PASSED: The motion passed on a unanimous vote. ORAL CONNUNI CATI tNiS Name AOJOURNIENT TO EXECUTIVE Council adjourned to executive session concerning personnel and litigation, _► l --mow __.._.. _ _ . -fib oi� p.bi�. The Executive Session and the meeting adjourned at 12:30 a.m. AFFIRM. ) f APPROVE: C`ty er Syr 3 7 1 1/7/80